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Motivation and reward goes hand in hand. If employees are paid by what they produced - the harder they work, the more they are paid it is expected that the extra money reward would motivate them as suggested by Frederick Taylor in his motivation theory published in 19 11 that human being purely work for money. It is true to some extent however, they (employees) do not work just for money as described by Elton mayo in his theory presented in early thirties. He say s in his theory that it is the good communication, good team work, showing interest in team work, involving others in decision making, ensuring the well being of others and ensuring that work is interesting and non-repetitive that motivate employees.
Figure1.1 MASLOW'S HIERARCHY OF NEED
Positive and good effects come from good financial and non-financial rewards.
It is very important to have a well managed remuneration system in place. Just and reasonable reward is essential and very important for good morale. As we can see Maslow in his theory which is somewhat similar to the Mayo that first human need his basic needs satisfied. But then he believes that once that need is satisfied it lead to another level which is safety, social or sense of belonging, self esteem and then self actualisation.
Herzberg on the other hand states in his theory which he presented in 1959(two factor theory) that it is the conditions that need to developed in the business that he really motivate the employees he divide them into two section hygiene factors and satisfiers. First consist of job security working conditions and personal life. The later is mainly achievements, recognition, growth and promotion.
Motivational theory and rewards are interlinked. Good working condition, better pay, appreciation at work, promotion, understanding human psychology all these flexible working hours all these rewards were developed out of these motivational theories.
B: Understanding Expectations
To evaluate job performance, it must be understood what is expected from employee to be accomplished. It can be done by going through employee's job description or annual work plan. Informal interviews can be carried out with the employees or supervisors to understand better what tasks should have been done, how they should have been implemented and any expected results. There should be a conversation with the employee to discuss understanding of the job description as well as how he or she interprets the definition of success with his tasks' completion and her projects' implemented. Compare and contrast the responses received to gain a sense of whether everyone agrees about the purpose of the job and what satisfactory performance looks like.
The key element of this process is assessing the performance of employee. The basic questions to answer are did the employee complete the tasks and was he responsible for it, if so, how well?" After discussing it with the employee, colleague and supervisor about their understanding of the job's expectations, ask them to give feedback on the employee's performance against those expectations. If there were pre-planned targets for performance, discuss the employee's work based on those targets. Talk to the employee about his performance and what he did to accomplish her goals. All the elements of the strategy for accomplishing the projected goals should be recorded to make a final determination of how well he or she did her job.
Evaluation is not a one-way street. Once an assessment of the employee's performance has been done, recommendations on areas that are required to be improved should be made in a positive and practical way. If an employee is in need of any assistance or support to increase his success going forward, these options should be discussed with the employee. All feedback should be captured in writing and signed by the employee and evaluator. The employee, the supervisor and the Human Resources representative should all receive signed copies.
Employees remain loyal- The effective reward system can result in loyalty from Employees as they feel valued and respected. If they are promoted trained rewarded financially they appreciate that and result in working for company for a long time.
Performance improve-Reward system will improve employees' performance as it is a human nature that if one expects some reward at the completion of a task he or she will put in more effort to accomplish it.
Profit can increase- If employees work diligently and with complete sincerely it will definitely affect company's profits in a positive way
Skills and Knowledge - Just as pay systems can motivate performance they can motivate learning and development. The same motivational principles apply. Individuals are motivated to learn those changes which are rewarded. As will be discussed later, a relatively new approach to pay, skill based pay, has been developed to capitalize on just this point. It allows organizations to strategically target the learning its wants employees to engage in. This is in contrast to many job based systems which indirectly do this by tying increased pay and perquisites to obtaining higher level jobs.
D: 1. Manager Appraisal: A manager appraises the employee's performance and delivers the appraisal to the employee. Manager appraisal is by nature top-down and does not encourage the employee's active participation. It is often met with resistance, because the employee has no investment in its development.
2. Self-Appraisal: The employee appraises his or her own performance, in many cases comparing the self-appraisal to management's review. Often, self-appraisals can highlight discrepancies between what the employee and management think are important performance factors and provide mutual feedback for meaningful adjustment of expectations.
3. Peer Appraisal: Employees in similar positions appraise an employee's performance. This method is based on the assumption that co-workers are most familiar with an employee's performance. Peer appraisal has long been used successfully in manufacturing environments, where objective criteria such as units produced prevail. Recently, peer appraisal has expanded to white-collar professions, where soft criteria such as "works well with others" can lead to ambiguous appraisals. Peer appraisals are often effective at focusing an employee's attention on undesirable behaviours and motivating change.
4. Team Appraisal: Similar to peer appraisal in that members of a team, who may hold different positions, are asked to appraise each other's work and work styles. This approach assumes that the team's objectives and each member's expected contribution have been clearly defined. . Absenteeism/Tardiness: An employee is obviously not performing when he or she is not at work. Other employees' performance may be adversely impacted by absences, too.
5. Creativity: It can be difficult to quantify creativity as a performance indicator, but in many white-collar jobs, it is vitally important. Supervisors and employees should keep track of creative work examples and attempt to quantify them.
6. Adherence to Policy: This may seem to be the opposite of creativity, but it is merely a boundary on creativity. Deviations from policy indicate an employee whose performance goals are not well aligned with those of the company.
www.ehow.co.uk accessed 30//11/2010
www.findarticles.com accessed 1/12/2010
Resignation: It can be described as when employee decides to end his employment with the company. There can be many other reasons for instance letter of employment from other company or an employee is not happy with the present company. Organisation will conduct an exit interview so that any improvements are made as a result of it.
Lay off: It is carried out when company is not making any business or in other words there is no work available. In such cases employer should give advance notice of the closing or redundancy so that employees look for another job in advance.
Merger/ buyout: when a company merges with another company or it is bought by another big company some structural changes are done. As a result of it jobs in some department are cut down. Company offer some severance packages to the employees' and there employment is terminated. For instance when Cadbury world was bought by American company craft. Some jobs were finished as result of this buyout.
For cause: Every company has its own set of rules. If they are not followed, an employee job may come to an end. For instance if someone behave in way that jeopardize company's reputation or someone attack his co worker or act in a deceitful way can lead to employment cessation. All the detail need to be thoroughly recorded in this case.
Poor Performance: If an employee persistently performing in a poor way he or she can be dismissed from his job. Every company has its set of standards which they fulfil through their employees and if an employee is not up to that standard his can be terminated.
B: Exit procedure: It is a procedure to determine why an employee is leaving the organisation and as a result of what need to be done to improve upon those factors that led to the resignation of the company.
Tower hamlet council London:
The Manager role: It is the responsibility of the line manager to inform the directorate of human resource as soon as possible when employee hand in his resignation. The manager then has to complete the "confirmation of leaving form" together with the departing employee. Form need to be completed accurately to get the following information correctly.
1) To get current contact information of the departing employee in case the council need to contact him once he left the job.
2) To obtain information about annual leave entitlement and annual leave taken to make sure that he is paid the remaining amount of money.
3) Reason for leaving need to be recorded as well. Such a feedback would enhance council performance for that particular job as it will be evaluated.
4) Any item belong to the organisation be handed in.
Line manager should ask for the exit questionnaire from the directorate of the human resource. Departing employee should be given a chance to fill this form with manager or a representative from DHR. Once this is done form be signed and questionnaire attached to the form be sent to the DHR. All parties should get copies of the form.
McDonald's restaurant Ltd exit procedure:
Employee should give two weeks' notice in advance to the store manager. Store manager inform human resource manager about employee's resignation.
Then a form is filled in which the date of employment cessation and any remaining money owed by company is recorded. Manager asks you about the reason of leaving. Employee is also asked to return any company property to the company. Managers accept his resignation and a it is sent to the human resource department.
www.mcdonald.co.uk accessed 2/12/2010
www.lgfl.net/lgfl/leas/tower-hamlet accessed 2/12/2010
C: Legal and regulatory frame work has a far reaching impact on the employment cessation.
1) Unfair and wrongful dismissal minimised: If an employee feels that he has been sacked unfairly or his job been finished without following proper procedure, he or she can take that matter to the employment appeal tribunal. Where his case will be heard and if he wins that case he will be duly compensated. For example Irani v Southampton and SW Hampshire Health Authority 1984 "irani was a part time ophthalmologist working in a clinic. Irreconcilable differences developed between irani and the consultant in charge of the clinic. The health authorities decided that one of the employees should leave. As a junior employee irani was dismissed. The health authority did not determine any particular fault with irani. Irani successfully obtained injunction against the dismissal because the correct procedures had not been followed, this mean that the dismissal was suspended until the issue had been correctly considered. Irani did not work during that period."
Kathy, d., "Employment Law For H R And Business Student" 1st edition,2004,page 145, cipd.co.uk
2) Job security enhanced: Legal and regulatory framework has given employee a job security and a piece of mind as they know if they are going to be removed from their job , there should be solid grounds for it. Employer just can not remove them without the proper procedure.
3) Financial aspect: when employment come to an end for any reason( resignation, merger, redundancy ) in all these cases any outstanding amount be paid to the employee as there are clear guidelines in these law to do so. Any employer, organisation can be heavily fined if they were found guilty of negligence.
Discrimination greatly reduced: No one can be removed from a job on the basis of his o her colour, race, religion and ethnicity. This framework has empowered weak segment of the the society as protect them and stop them from being exploited.