Reward management, compensation, pay systems

Résumé du document

According to Jean-Jacques-Rousseau "a human being is by nature lazy? and he will always search for the easy way out. For instance thousands years ago, men were hunting to protect their own life and to survive: it was their only motivation. To deal with that attitude, men at the top of the hierarchy had to find a way to make them work and be motivated. That purpose starts to be more important nowadays in the daily business for companies. Companies invest money in HRM to find a way to motivate their staff and thanks to that increase their profits. The personnel must suit the job, perform well at it, and feel comfortable in their position. Many theories have been made, to understand the way a human being behaves at work and how he can be motivated. Besides, the HRM responses consist in different principles and procedures for monitoring and rewarding the employees and make them feel happy at work. Through incentives which are indirect advantages from the company, and salaries the HRM department is looking for the happiness of the employee in the company which led to limit the turn over, attract him and make him perform. To understand the overall process we have to look at the job evaluation and the factors determining pay, and then define the range or reward systems and the motivational theory and reward, to finally zoom on the organizational approaches performance monitoring.

Extraits

[...] In that exchange relationship between the company and the employee the compensation has to be fair for both. By offering that compensation the employer -in that case the headhunters- hopes that he will attract the best employees in the organization and motivate them to be performant in the company. The financial compensation are separated into two types the direct and so called incentive or indirect compensation and another type the psychological. Firstly, in the direct one you will find the wages for workers or salaries for the employees, the bonuses, the commissions, the car, and fringe benefits. [...]

[...] If you do not change your rewards they will take it for granted and will loss their motivation in the same time. People are different and have different needs, it is the same for the staff in companies, that is why different rewards have to be offered to match the personnel's needs. For instance some people will need some medical care or some big cars for their families and other single will need a sport car or some extra money to spend. [...]

[...] Personally I was working on a little shop of newspapers in the big train station of Paris and my boss was calling me everyday to have a report of day sales. If I was doing well on some specific newspapers my boss will higher me for the next year to do the same job. By monitoring people the companies are taking care of their employees like a mother with her children and its in that way that they will make their employees feel important at work, concerned by what they are doing and will be performing and make the overall company increase its profits. [...]

[...] Different methods have been made to classify the jobs and achieve that purpose. With respect to the value of jobs in the companies that practical techniques could help a company to determine the direct financial compensation of one job. In that process we are not making the process of one's peer but the position of the job in the overall company. The physical, personal and cognitive abilities required for the job in question are analyzed and gave a numerical result upon the total job. [...]

[...] That theory is not available anymore because of the rise of the employees and white collar : people are not looking for the same motivation as yesterday. Some decades after a revolutionary theory came out with Maslow in 1943 followed by his book Motivation and Personality. The pyramid of Maslow is classified into 5 levels the needs of the human being with the evidence that a need will contribute to the motivation of one's peer if the first level bellow have been satisfied before. [...]