Developing A Global Reward Strategy Business Essay

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Employees contributions to growth, development and recognition are now inevitable, making them an essential part of the business organisations. Business owners are now today are recognising important role that employees play in their businesses, employers now believes that one of many ways to keep employees motivated is by using robust reward programs can will help the business organisations to deliver the right amount of productivity.

Strategic Rewards study reveals that companies can improve the execution of their total rewards strategy (both financially and non-financially) especially, planning reward expenses on a total rewards basis by increasing cooperation among HR functions and enhancing their reward plans and keeping employees engaged and motivated.

Table of Contents

Introduction………………………………………………………………

Tibbett & Britten Organisational Background………………………..

Tibbett & Britten's Development Strategy…………………………….

Ten Principles Reward…………………………………………………..

Evaluation of strategic objectives and elements of the reward project…………

Organisation Business Strategy…………………………………………………….

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Overall HR strategy……………………………………………………………………

Reward Strategy……………………………………………………………………….

Cultural Strategy……………………………………………………………………….

Structural strategy………………………………………………………………………

Other HR Strategies……………………………………………………………………

Employee's behaviours………………………………………………………….

Recommendation…………………………………………………………………….

Conclusions…………………………………………………………………………..

References……………………………………………….…….…………......................

Introduction

Every business organisation can only achieve success because of the people that build the business together; it's a crucial principle that entrepreneurs cannot ignore regardless of the business environment or where they operate. The reason is that business organisations depend on the skill, expertise and performance of their employees. Business can only thrive when employees develop a new product or a more efficient process. One of many ways to achieve this is to develop a robust effective talent and reward programs, processes and technology to deliver results; including talent and reward strategy that supports the business strategy.

According to Armstrong (2009), strategic human resource management (SHRM) stresses the need for the HR plans and strategies to be articulated within the framework of overall organisational strategies and objectives and to be reactive to the changing nature of the organisation's external environment. This type of approach requires explanation and adaptation by business organisation to ensure the most appropriate fit between HR business strategies and plans. Therefore, the overall themes of SHRM are the incorporation of all HRM tasks, devotion to broad organisation goals and awareness to the external environment (Armstrong, 2009).

Tibbett & Britten Organisational Background

Tibbett & Britten is a leading logistics business organisation with huge experience across geographical and product sector boundaries with annual revenues of £1,634 million (US$2.9 billion). (2003).

Tibbett & Britten has a unique reputation for its exclusive focus on logistics and allied services operating in some key markets including Europe and North America parts of Africa, Asia and Latin/South America. Tibbett & Britten has substantial logistics operations in 35 countries and employs 35,000 people.

Tibbett & Britten main area of specialisation is in the provision of logistics and related support services which includes food, beverage, technology products, clothing, merchandise and e-commerce sectors. Tibbett & Britten also provides pre-retailing, co-packing and deferred product completion services.

Tibbett & Britten's Development Strategy

One of many Tibbett & Britten objectives is to develop a long-lasting partnership with its clients and consolidate its position as a leading contract logistics and supply chain management .Tibbett & Britten place great emphasis on quality and robust reward strategy which will enhance its operations and achieve its aims and objectives.

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Ten Principles Reward

Think global, act global: it is important for business organisations to think global and act global also to but also to 'share and network totally, this will create a good avenue, best practices and requirement for employees and broader experience both local and international. Companies such as Toyota and Honda are successful in the global market with their products tailored to the requirements of each country where they operate.

Establishing a competitive position for total compensation in the market place: "A competitive advantage exists when the firm is able to deliver the same benefits as competitors but at a lower cost (cost advantage), or deliver benefits that exceed those of competing products (differentiation advantage). Michael Porter. This is importance for the organisation to compete effectively with its rivals in the market which as a result will create a sustained competitive advantage.

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Competitive position for total compensation: A robust and suitable HR strategies are important factors for every business organisation in order to be to meet organisational needs necessary to promote competitive advantage in the marketplace. When business organisations use a proper process of recruiting, selecting, deploying and rewarding their employees in the organisation, it will create necessary conditions for organisational effectiveness, efficiency and business success putting the organisation in a competitive position for total compensation.

Paying for performance: Many employers believe that by linking pay to employee or company performance will help the organisation to eradicate workplace inefficiencies and raise productivity. They also believe that it will motivate individual workers to be more effective at work improve interpersonal relationships, raise job satisfaction, lower non-attendance.

Excellent communication: Communication skills are a core competencies expected in practically any position within the workplace. Managers and supervisors must be able to communicate with employees at every level in the organisation.

Exciting incentive programmes: More and more business organisations keep increasing the resources needed for various incentive programs to motivate employees in order to improve customer satisfaction. This includes non-cash awards for all employees. Employers believe that by using incentive programs it will:

Boost employees morale

Improve customer service

Improve quality and productivity

Some of the incentive programs include:

Training and certification

Product or service quality initiatives

Productivity improvement programs

Reward implementation: Having a reward program is one thing but to implement it successfully and tactically another thing. When implementing rewards plan, business organisation need to carry everyone in the organisation along and consider so many factors including:

Who will design the plan

The type of rewards

Under what business conditions the plan is intended to operate.

Support, encouragement and designing flexible reward programmes: when designing Total Reward strategy business organisation need to highlight the benefits of all elements of the reward package by ensuring that managers are recognising the staff and enable them to deliver this vital element of total reward. There should be sufficient support and encouraging resources which should be aligned to developing the capabilities of various managers and performance management with adequate training which in return will deliver the intrinsic reward strategy.

Availability of financial and fiscal responsibilities: it is important in the broadest sense that a total reward strategy should include sustainable financial and fiscal responsibilities in order to meet future financial obligations. Such strategy should also entails the capacity to deliver its long term service and infrastructure commitments

Evaluation of strategic objectives and elements of the reward project

ORGANISATION BUSINESS STRATEGY

OVERALL HR STRATEGY

REWARD STRATEGY

CULTURAL STRATEGY

STRUCTURAL STRATEGY

OTHER HR STRATEGIES

(E.g. RECRUITMENT AND SELCTION, TRAINING, PERFORMANCE, MANAGEMENT, DIVERSITY)

EMPLOYEE BEHAVIOURS

Organisation business strategy

It is important to have a yardstick when setting business strategy objectives demand in order to measure the fulfilment of these objectives. We can measure this objective using SMART tools which states that:

Specific: Providing distinct information of the business organisation wants as to accomplish.

Measurable: An indicator that measures progress against fulfilling the objective for the business organisation.

Appropriate: Providing consistency in line with vision and mission of the business organisation.

Realistic: Achievable goals and objective for the organisation that will improve capabilities and opportunities in the environment

Timely: The time needed to complete the objective.

Overall HR strategy

An extensive HR strategy plays a crucial role in the accomplishment of an organisation's general strategic objectives including marketing, financial, operational and technology departments. Overall HR strategy will provide adequate support and direction in which the organisation is moving. Overall HR strategy can also help business organisation to achieve both short and long term objectives ensuring that:

The business organisation has the right people in place and right mix of skills

Employees exhibit the right attitudes and behaviours.

It provides employees development in the right way.

Reward Strategy

Reward strategy is a suitable and effective framework which enables business organisations to reward their employees accordingly based on their input to the organisation's achievement and overall business strategy. This will encourage employee's behaviour and performance with strong competitive edge.

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According to Armstrong (2006) every reward strategy development has to be in line with behaviours and actions that the business organisation values the most. Reward strategy main objective is to nurture and approve those behaviours and actions among employees. Armstrong (2006) also suggests that a reward idea should be planned in such a way that is that will address "longer-term issues relating to how employees should be valued".

Cultural strategy

Due to the slump in the global economy, there has been a short increase in the old-style rewards bonuses, such as merit pay, promotions in many business organisation, this is making various business organisations to develop a vigorous cultural strategy that will manage employee's needs including their goals and objectives (Barger,(Barger, 2007).

As a result of this, various business organisations are allocating huge amount of resources to the strategic planning process so as to develop reliable objectives with cultural opportunities. Kerr and Slocum (1987) identified organisational culture and rewards as important aspects to every business organisations which will inspire and drive employees to be more productive.

Structural strategy

Business organisations need unique structural strategy to manage day to day activities of the organisation including operation, and employee's performance. Findings suggest that business organisations need more traditional structural arrangements between a business strategy and a human resource strategy that can help preserve and encourage employees in the business organisation. It will also improve their performance and create a modest advantage for the business organisation.

Strategic structure is needed to ensure that people's interactions and efforts are well co-ordinated so that organisation activities and the efforts are directed and controlled towards achieving objectives.

Other HR strategies

Motivation and Performance: Performance measurement remains an essential factor in strategic management which estimate the results of resources utilization including non-financial measures on key business process such as product quality (Lakhal and Pasin, 2008), customer relationship management (Roger, 1996) and employee-oriented measures (Christina and Gursoy, 2009) are all indirect leading factors of performance.

Armstrong (2006) further mentioned that strategic reward practice will enhance motivation, commitment, increase job engagement and develop discretionary behaviour. Armstrong also defined motivation process as course of action that encourage the employees to establish goal, take action, and attain goal. The goal, in organisation aspect, can be defined as desirable performance both financially and non-financially such as increase in profit and increase in product quality.

Employee's behaviours

Building ethical standards into an incentive program will help the reward system to incorporate the concern of employees by building a teamwork and open communication.

Recommendation

It is clear that there is strong link between business strategy and reward strategy for business organisations to be successful which can be influenced by the external environment. It is important that employers need to be aware of this link particularly its importance to the business organisation. They also need to identify a set of guiding principles which define the approach and guidelines to reward strategy that an organisation has decided to take (Armstrong, 2006).

Conclusions

In conclusion, business organisations need a clear vision of what it takes to compete, including a global reward strategy aimed at keeping employees focused and motivated. Every organisation need to continually raise the bar on both company and individual performance. This in return will create a global framework for rewards, pay benefits, learning and development; paving the way for improved performance and better business results.