There is no doubt that organizations in the modern world have placed great importance in the development of the human resource management. This is because organizations seek to select, hire, retain and staff the best talent to the workforce. Rewards strategies are one of the main functions of human resource management. Indeed, these functions are set to increase the motivation of their workforce and avoid any dissatisfaction that may occur to the employees. Different theories of motivation were thought of to explain and analyze the behavior of employees. In addition, many reward strategies were practiced in order to increase the motivation of employees and allure them. The main aim of this paper is the chance to explore how multinational organization of Unilever in Pakistan increases the motivation of their employees and deal with any dissatisfaction through the use of reward systems as Unilever Pakistan facing HR problem of lack of proper reward system for the motivation of employees and supervisors.
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Since the constraints of the situation are demanding that the research is conducted through the HR managers of Unilever Pakistan to be included in the research it has been decided that Maslow’ Hierarchy of Needs is the most appropriate vehicle for testing the impact of rewards. In Unilever Pakistan HR managers are responsible for assessing levels of motivation in the workforce and this will normally be a subjective assessment of levels by groups and not by individuals we feel that this reinforces the choice of Maslow’s theory for the purpose of the research.
Background of Unilever Pakistan:
Unilever Pakistan Limited is a multinational organization. Unilever PLC London is its parent group. Unilever is a European based company with command center in London, and their shares are quoted at the stock substitute of several European countries. They deal in all kinds of harvest from animal foodstuff to foods and detergents plus other personal and consumer products.
The organizational structure of Unilever Pakistan consists that Unilever has its subsidiaries in over 80 countries of the world, to which it spreads its vast understanding and resources.Unilever has 500 working companies in 80 countries. It has 0.3 million employees and proceeds of sales in 23000 million pounds. Unilever has around 2000 employees in Pakistan.
The interventions relevant to the situation of reward system in Unilever are as follows:
LINK BETWEEN MOTIVATION AND REWARD:
To assess the link between motivation and reward of multinational organization of Unilever in Pakistan. The results indicate that there is an enormous link between motivation and reward. At Unilever Pakistan the best way to ensure continuous growth in people’s performance is to constituent a Reward system and the reward system must emphasis on positive reinforcement as it is the most successful mean to motivate preferred behavior. By positive reinforcement at Unilever Pakistan people put in more effort in work so that they may achieve a reward of their hard work and reward system ensure that their hard work doesn’t go uncompensated. So it clearly indicates that at Unilever Pakistan there is an enormous link between motivation and reward. A well planned and efficient reward system when managed effectively would result into smooth organization’s change process hence positive reinforcement of the desired behavior would enhance the performance which proves our research objective of extensive link between motivation and reward.
Whenever the word ‘Motivation’ is used, the first theory that hits the thought is the Abraham Maslow’s hierarchy of needs. He investigated the human behaviors and pointed out five basic needs of human psychology and existence in a hierarchy. These basic needs (physiological, safety, social, self esteem and self actualization or self fulfillment) can be considered basic goals for any human. These basic needs or goals have been prioritized into ranking and elaborate the pattern in which humans go for these in their lives (Goble, 2004).
Man’s foremost struggle arises for its existence and as per Maslow, physiological (hunger, sleep, sex etc.) and safety or protection needs reflect the same efforts. As first need is satisfied the demand for the next one arises and gradually the aim is shifted through these needs one by one and finally reaches self actualization. Although, virtually all of these five needs exist in every one, but the realization of the need only comes when the human fulfils the general criteria to get qualified for that specific need. In-fact, the real variable that builds the ground for the qualification is the satisfaction of previous needs.
According to the study, “Job satisfaction of Employees Horticulture Case studies in Michigan”, it has been proved that the supervisors and non supervisory employees differ regarding their satisfaction with job components. Supervisors see job security, attainment, interpersonal relations and supervision as the most satisfying factors at workplace. They perceive the job itself and the company as ambiguous factors while the compensation and working conditions as the hygiene factors. Supervisors are apt to be less displeased with their rewards (Sara , Barry & Kathleen, 2004).
One of the most rejoiced solution of this HR problem is that rewards by the employees at Unilever Pakistan can be awarding them with paid leave by their supervisors as the acknowledgement of their commendable performance. Along with that Supervisors must be rewarded with salary increment within the approved salary range of their positions.
Organization at Unilever Pakistan must facilitate their supervisor to have an authority to reward their employees with annual merit increment due to their praiseworthy work which has brought about considerable benefit to the organization or department.
Key words: Positive reinforcement, behavior, reward, motivation
REWARDS STRATEGIES TO INCREASE MOTIVATION:
To assess the extent to which organizations attempt to use their reward strategies to increase motivation of their supervisors at multinational organization of Unilever in Pakistan. Unilever Pakistan implementing performance management process must also not lose track of variables which are critical for its success and evaluate them at pre defines regular intervals. Feedbacks must be depicted in charts in timely manner; performers must be valued through some token of appreciation. Performers’ reviews must be use as an opportunity to reflect how winning can be possible in achieving goals and which practices must be adopted and these reviews must be as frequent as possible so that the learning is fortified. Always set many closely achievable milestones instead of quarterly achievable milestones and whenever those milestones are attained celebrate them. There must be some other source of feedback other than annual performance appraisals. Keep in mind while designing your organization’s program to be as original and unique as possible and avoid the design to just comprise of forms. (Reference: Pinder. C.:(1984) Work and motivation; University of brutish Columbia;, Foresman and company. )
Three assumptions formulate Adam’s equity theory. First, beliefs that are developed by people hold that the fair they receive is equitable to the contributions they made for their work. Secondly, the theory suggests that employee compare their input and output with and the benefit they received with other employees input and output. Finally, if an inequality is existed then this will lead to the dissatisfaction of the employees (Pinder 1984). Therefore, this theory gives HR manager some guidelines in to design a reward system that can be perceived as equable by employees and avoid any dissatisfaction (Richard, 2008).
Hertzberg provided five motivators in the workplace: recognition, achievement, advancement, responsibility and the work itself. He differentiated motivators and hygiene factors by suggesting that motivators aim achieving job satisfaction in the long run but hygiene factors are focused on short term satisfaction of the employees (Gómez & Crowther, 2007).
HR managers use different strategies to reward different class of employees depending upon their job nature, competencies, skills, knowledge, performance and their contribution in the productivity of the organization. In terms of best practice, different policies of HR are only suitable in different circumstances (thrope and Homan 2000). Following are some general practices in this regard: These rewards may be monetary as well as nonmonetary (Nelson, 2005).
Longevity pay plans
Pay for performance strategies
Pay work skills and knowledge
Team based pay packages to promote team efforts
Individual pay plans
Compensation plans for Executives
Profit sharing in terms of merit based bonuses or by giving ownership share through stocks
Offering perks and fringe benefits
Providing healthy job environment, flexible working hours, interpersonal and recreational activities etc.
Rewards are given to emphasize or reinforce the certain attributes like performance and loyalty etc. depending upon the strategic goals of the organizations. The nature of attributes and rewards varies from organization to organization.
Key words: Motivation, reward, physiology
RECOMMENDATIONS FOR POSSIBLE CHANGES: REWARDING AND MOTIVATION:
To make recommendations for possible changes to practice at multinational organization of Unilever in Pakistan. Certain sets of criteria are designed keeping in mind all the salient aspects which are needed to be catered in designing and evaluating programs.
- Specific: Ambiguity emerges when there are unclear instructions about the rewards and their required actions and this creates a negative sense for the organization in the heart and mind of the people. Keeping it simple, clear and specific helps remove ambiguity and hence strengthening the overall program.
- Meaningful: Rewarded achievements should carry a significant return over investment for both the performer and the organization. The rewards must be specified for an achievement which has any significant impact on organizational progress as well as performer’s personal or professional life.
- Achievable: If goals are unrealistically high to achieve then those propagates negative reinforcement within the employees so while setting the goal for any individual or group of employees it should be kept in mind that those goal must fall within the boundary of achievable.
- Reliable: The program designed must follow its rules and procedures accordingly. Any Exceptions must be dealt with certain pre-defined steps which are specified in the program’s design.
- Timely: Time factor is very keen in positive reinforcement. The Reward system heavily relies on rewarding the performers at the right time for their hard work so that they can feel esteemed. Certain intervals must be specified onto which the performers would be rewarded.
At Unilever Pakistan supervisors’ appraisal are top of the list when it comes to positively reinforce and motivate the employees. Supervisors at Unilever Pakistan must acknowledge employees contribution both verbally and in written either personally or with an electronic aid although the personal interaction is much more effective and employees feel valued and recognized for their effort and contribution.
Another solution is that supervisors at Unilever Pakistan must be provided with opportunity to increase their professional expertise and skills by letting them participate in educational programs and workshops. It is very important for professional growth and development opportunities at Unilever Pakistan. As employees at Unilever Pakistan would develop new skills, organization can have additional benefit from it. (Reference: Bruce, Anne & Pepitone, James S.(1998) Motivating employees., McGraw-Hill Professional,.)
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Bruce and Pepitone (1998) provide that motivation is the inner drive that compels a person to behave in a particular pattern. People have different needs which they require to satisfy through different means. People are motivated when their needs are satisfied. When people are in need they seek opportunities which can satisfy them. The urge to get satisfaction drives a person to achieve something. Therefore, the existence of needs motivates individuals to work hard to achieve goals and objectives. Various theories of motivation explain the influence of rewards on the behavior of individuals and teams (Armstrong 2002). Motivation determines the performance of activities within the organization. The behavior of individuals is shaped by the motivators since people seek factors which improve their work conditions. Satisfaction of one need leads to the demand for another need according to Abraham Maslow (McClelland, 1987). There are both intrinsic and extrinsic factors which motivate an individual to behave in a particular manner. Intrinsic factors emanate from within the person and give a person the will to achieve more. Extrinsic factors originate from the environment in which a person lives (Goble, 2004).
Bruce and Pepitone (1998) were of the opinion that there are two categories of motivational factors: Intrinsic and extrinsic factors. Intrinsic factors refer to the inner feeling that a person has about the place of work. Extrinsic factors are the external factors which motivate an employee. Extrinsic factors include rewards, promotion, recognition and others. Employees work harder when their welfare is put into consideration by their managers. According to Bogardus (2009) employees are not only motivated by the wages they receive from the organizations but also motivated by many other factors within the environment of the organization. Therefore, in an organization the employees have different personalities, attitudes, responsibilities and views. Employees require different motivation strategies to ensure they improve their performance and work for a long duration of time (Gómez & Crowther, 2007). Finally, reward systems are developed to cater the requirements of any organization in a specific manner because it is considered that they directly affect the efficiency of employees by motivating or de-motivating them (Sara, Barry & Kathleen, 2004). Further to the discussion, the later part of the review will cover the various theories of motivation.
Key words: Motivation, reward, performance
Conclusion: I analyzed that to achieve Unilever Pakistan goals and to bring out the required results from the employees it is highly necessary that they are kept highly motivated and should be provided with such an environment in which their motivation is not only keep intact but also flourish. To attain this environment and to stimulate their motivation I figured out that positive reinforcement through rewards and performance appraisal system can prove very much beneficial. While above we discuss what kind of rewards could be employed and what criteria should performance appraisal system must abide to enhance motivational environment of the organization, here are list of few steps that a manager can take himself apart from all the organizational process and procedure to keep a clear check, balance and knowledge about the motivating factors of his employees.
- Don’t just stick to theory. Implement it practically because just reading the articles or research won’t help until it is put in practice.
- Analyze your own set of factors that keeps you motivated in the organizations. This would help you understand other employees’ factors as well.
- Identify the factors and then take input from the employees. It can also be done through a survey forms.
- Work with each employee to include their motivational factors into the reward system.
- Improve your interpersonal relationship with each employee and try to nurture the skill to delegate in every employee.
- Rewards must not be lingered for long. They must be awarded as soon as the desired behavior or the reward criteria is achieved by the employees. Late rewards have negative impact on motivation of the employees.
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