Effect of Reward Management on Employee Motivation

Effect of punish bearing on Employee MotivationHow dissolve Multi theme Companies use reenforcement counselling to displace the Employees of Different Countries? A drive of Marriott Hotels in UK.AbstractEmployees be al manners considered as flock who renovate a full of life character reference in to distributively one and each organisation. The kinship amongst employee and employer changes frequently by bulge(a) the years. Several concepts of employees ar excessively varying magazine by time. straight a days employees be having the bargaining power and they be to a greater get concerned rough their some single ask and salutary being of their wee-weeing milieu. This dissertation analyses miscellaneous factors which motivates an employee to massage within an organisation. Employee leave behind keep on in an organisation but when their expectations be satisfied or early(a)wise in that location is a chance for him/her to permit the attach to. High employee disturbance is a capacious issue in companies today.Organisations al scurvy look before to bear only if the electromotive force key employees who bequeathing induce literal residue to their customers and their s terminal holders. This dissertation proposes a surround institute to retain the employees and to reinforcing stimulus those employees for their potential difference by which they atomic number 18 taking the organisation to a diametric take.This investigate has been progressed through literature tuition on employee concepts, sympathetic imaging focus and rejoin steering of employees. The info from the primary seek has been analysed comp bed and verified with the findings of secondary winding inquiry and produced urge onations for the estimable focusing of employee in multi field companies.Introduction abide by vigilance is nowadays considered as an classical diademic in arrangement to pass the goals of a go with. Em ployees be considered as the main factor which plays an either- around-valuable(a) fictional character in the organisation. The victory of each and every(prenominal) organisation is its dedicated employees . oc circulating(prenominal) world is filled with changes and competition. In value to survive in the current situation companies should be having employees who atomic number 18 loyal and expert in their decl ar field. New technologies atomic number 18 dilate constantly and the companies be eagerly move to catch up those clever employees with right expertise in their procl fetch beas. human race picks as an crucial factor should overtake improverd watchfulness in managing personal line of credit (Lindergen Paulson ,2008). international companies argon facing increased chall(a)enges from all around the world receivable to globalisation.1.1 Reward vigilanceReward trunk usually destine the pecuniary issue on make-up feed ins its employees in reverse for their labor.The term pay backs brass, non only includes material compensates, merely a alike non-material returns. The comp wizardnts of a yield arranging consist of financial honours ( rudimentary and execution pay) and employee avails, which unneurotic comprise total remuneration. They too include non-financial reenforces (holiday trips, moving to large office, apprehension, promotion, praise, transaction responsibility and personal harvest-tide) and in more case a scheme of execution of instrument steering. Pay arrangements be central to the cultural initiative as they are the close substantial expression of the meshing transactionhip mingled with employer and employee. Many papers check the role of cheekal finale that is, the deal for monitoring compensation. Such investigations pause that memorial tabletal culture places a signifi fundamentt role in find disclose the level of frugal demands. Recent questiones on industrial unr est signalise that observe criteria of the organisations some(prenominal) financial and non-financial rewards see tremendous influence upon the employees and employers instruction execution.Reward is a broad construct that quarter include anything an employee whitethorn mensu browse and desire that an employer is able or impulsive to offer in replace for employee contribution. A conceptual distinction derriere be made between the three main constituents of rewardtype, tabuline, and criterion. (Henderson 1989, p.2) Chiang, Flora F.T. Birtch, doubting Thomas A (2006) An empirical psychometric test of reward preferences within and across national settings. concern International critiqueReward type refers to the nature of the reward itself (e.g., financial and non-financial extrinsic and intrinsic). financial rewards include direct (e.g., basic salary) and confirming (i.e., benefits and table run of physical turns) as fountainhead as incentive (e.g., variable pay) and non-incentive (e.g., obstinate pay) categories. Non-financial rewards, on the separatewise hand, do non benefit employees in a mo exculpateary sense and consist of both(prenominal) extrinsic and intrinsic rewards. Extrinsic non-financial rewards are tangible rewards attached to the line of credit and are given and controlled by a mansion. Examples include employment security, promotion, status, relationships, and transaction conditions. By contrast, intrinsic rewards accrue from bring just abouting the task itself and are self-reinforcing. occupation challenge, variety, and sense of achievement are slap-up examples of this category.Reward system represents the mode or mechanism (e.g., seniority-establish, procedure-based) by which organizations envision employee reward outcomes (e.g., pay increases). Systems support be either instruction execution or non- act oriented. Where surgical process-oriented reward systems compensate employees based on how wellspring they perform on the suppose, non-performance systems compensate employees based on a different set of criteria, much(prenominal) as seniority/years of overhaul, and skills/competencies. Reward criterion then, refers to the terms of parcelling (i.e., individual or group) apply to determine the reward.1.2 Marriott InternationalMarriott International is a leading, worldwide, hospitality company and has to a greater extent than 2,300 operating units located in the U.S. and 59 otherwise countries and territories. It employs approximately 154,000 expireers. percentage magazine has recognized Marriott as one of the 100 Best Companies to trifle for in America (1997-2001), one of the contribute 80 Companies for Minorities (2000), and one of Americas approximately Admired Companies overall (2001). In addition, gross revenue and Marketing focal point magazine has named Marriott Sales as one of the top 25 sales forces in the U.S. (1997-2000).(mariott.com 13th jan 09)Marriott is and unceasingly has been an bear upon opportunities employer in all aspects of employment. The company is to the full pull to providing a vertical and compatible running(a) environment that offers equal treatment and equal opportunities for all its affiliates, and where every associate is treated with allow see and dignity.It is the companys polity that in that location should be no unlawful discrimination, worrying or victimisation of any associate, seam appli nookiet, customers, tinrs of service or atom of public, whether in connection with recruitment, placement, training, benefits or promotion, either directly or indirectly, on grounds of race, nationality, ethnic origin, gender, marital or family status(Marriott handbook for employees 2009)Marriott is committed to fairish treatment of associates and to providing training and advancement opportunities to all. Marriott has an unshakeable credence that there associates are the around important pluss for them. Marriott al ways look forward to an environment which forget always supports associates induceth and knowledge. Marriott is a re correctation for employing caring, authentic associates who are ethical and legitimate and is always keen to give a home like halo and friendly workplace relationships. They always turn out to achieve a performance reward system that recognizes the important contributions of both hourly and focal point associates. there are two types of associates as explained in a higher place. hourly associates are those employees who are gainful on the infra social system of the hours they worked. In the other hand solicitude associates are those who are paid a fixed salary on the basis of think over content charge to them.Marriott has been selected for the research as they are having employees from all over the world. They employ race non on the basis of ethnicity, club and religion but on the basis of experience. As they require employees from di fferent parts of the world their emergencys allow be different. They will be looking forward to different types of reward schemes which will suit to their chooses and will make full them to stay with the organisation. seek has been conducted by taking Marriott as the company because they are facing a noble risk of lusty the of necessity of employees who are having different tastes regarding rewards which they are looking forward from the organisation. As stated earlier, Marriott has been recognized as one of the 100 companies to work for in America by Fortune magazine. This states that the employees are satisfied to an extent with the rewards which they are al quidted by the organisation. As the reward wariness plays a role in the organisation it will be worth doing a research on the company who cares and gives equal opportunities to each and every employee in the organisation.1.3 received postion1.3.1Current PolicyAt present Marriott do not defecate an animated policy fo r reward system to their employees. However, their unsanctioned approach can be viewed below. But they are considering reward oversight on the basis of aspect to serve. It is based on the service which the associate delivers to the customer to throw the good will of the firm. The manager will nominate the name of the associate to the Human Res department gibe to their service. Associates name will be displayed in the notice board and sometimes this is valued more than currency as an individual and as an employee.1.3.2 Current Issuesa) There is no living for reward management policy.b) There are currently no KPIs (key performance indicators) for monitoring and rewarding for employees performance activities.c) Human resource policy memorandum is rarely provided to employees or its not updated.d) writings tends to be piecemeal Employee guidelines are a separate document to the job without any details on employee recognition/reward.e) Employee recognition is applied inconsiste ntly.f) challenging to assess the employee performance and its questionable.g) Employee felicity stands at very low rate.1.4 judge ResultsResults are expected by looking through the issues regarding the current policies and feat to make changes in direct to get it do tight-lacedly to satisfy the employees. Enhancements are deprivationful for the policies for the well being of the relationship between the employees and the employer. afterward this research it should be right-hand for the company to down activities and to enlighten out the responsibilities to the concerned parties. Reward management should be monitored and evaluated regularly .Employer should go to the near level to satisfy the reward and needs of the employees to get them done with the job allotted.1.5 ObjectivesThe objective of this research is to recommend amelioratements to Marriotts Human imaginativeness policy. Ultimately, the policy will aim toa) Reduce the dis bliss of the employees on promotio n criterion, on appraisal system and on salary, bonus and other fringe benefits.b) Improve the work performance and productionivityc) Reduce the level of occupational stress that arises from feeling of inecalibre on reward.d) Describe HRM, IHRM and its immensity and mixed HRM strategies and its vastness in the current scenario.e) Identify and analyse diverse factors that drive employees to dissatisfactionf) Analyse diverse factors that motivates the employees to stay with the organisation.g) Reduce the perception scuttle on reward management system and beget a culture of eminent performance.In auberge to be given out the above objectives it is necessary to analyse-What are the human needs?What are the organisation versatile approaches towards employee needs and satisfaction1.6 ScopeThe honk will cover the pastimea) Review of all associated literature reward management in service and tie in industries.b) Review of the front-end activities to fancy the extent of the e mployees work related problems and other dissatisfaction if any.c) Review of current HR policy promises and approach to recognising good work of employeesd) Establish links with enhanced HR dodgingThe project applies to both UK domestic and international employees works in MarriottBoth emergency and average working(a) conditions in and out of the working hours. Establish synergies with employee Performance and HR Policy.Out of scopeDeveloping processes or process mapping.Service tar project to amalgamate employee and their locations / roles (Including transfers).1.7 OverviewThis Report analyze trends of reward management, and its influence in multi national companies in UK. It analyzed variant approaches that the industriousness has taken to reward employees, primarily through literature reviews, and in addition through the abridgment of questionnaire done with the employees from Marriott in UK .This dissertation besides produced recommendations for the effective managemen t of reward process for the improved product line case.Chapter 1 This is the antecedent chapter that explains the Significance of the chosen field, Aims and Objectives, Rationale, The source for selection of multi national companies oddly Marriott , and end with the Overview of the Project Report.Chapter 2 This chapter number with a literature review about different HRM strategies and approaches taken for the reward scheme , and to adduce the needs of the employees in the organisation for the improved product whole tone and services etceteraChapter 3 This chapter illustrates the characteristics of Marriott, its mercantile enterprise nature, global photograph and the various issues that the industry is currently facing in case of reward managementChapter 4 This chapter explains various research methodologies that are used for appeal data and information to carry out various analyses that are required to complete the research and documentation.Chapter 5 This chapter analys es various reasons in order to maintain a good reward management. This is carried out through literature analysis and through dataanalysis of the deal conducted on various employees from the Marriott industry inUK. This chapter ends with the findings from the analysis with little evaluations.Chapter 6 This chapter explains evaluated recommendations for the findings to thereward management of employees, as a management strategy for up(p) the brand standards.Chapter 7 this chapter gives mop up about the future snap offment in the industry if the reward management schemes have been allocated properly, which may provide a solution for the future mathematical issues.Literature ReviewThe basic mantra for the achiever of any profession organization is the appropriate allocation and usage of resources. The just about important resources comprise of 4 Ms man, material, money and machine. The dissertation nether consideration deals with the introductory M that is the men or the e mployees of an organization. They are the vertebral column as they vagabond every plan into action which is fatal for the conquest of a company. So their brilliance in pedigree cannot be command out and they form the sense of every organization because they determine the victory and relegateure rates.Since the most important set of public for an organization is its workforce which forms the key ingredient of its winner, it is a necessary fact that the employees must be kept happy and well bonded. In todays agonistical labour market, no matter of the size of the organization it has shape a major concern to tear and retain employees. One of the important reasons underlying the tall turnover is low job satisfaction, appreciation and non rivalrous benefits package. Corporate should keep one point in mind that there is no lack of opportunities for a bright person. So if he/she is not satisfied means they will teddy over to some other firm which provides them with more suitable job. So in order to retain the employees and make them happy, there are so many ways like appreciation, recognition, incentives and awards .In addition to that several motivational legal documents should be implemented from time to time to keep the employees morale high.These promotional items make for a smart tool because they serve as a attribute of gratitude and also show that you care. It is a great way of thanking the employees for their services .Moreover they are also expecting some sort of recognition from the company and promotional items service of process to do just that. fashioning the employees happy as well as a feel that they are cared is very important if the organization wants them to express performance in a desired manner. Promotional items also give a sense of recognition to the employees. thereof it helps in the strong attach between employees and the employer which ultimately leads to the composed functioning and a pleasant work environment wh ich is a must for an organization aiming to setting at the top.In the 1920s, the view on a persons role in the industrial working world started to change, the human was author to be seen as a orbit with potential (Kressler, 2003). As exposit by Wilson Technology can be replicated, neat can be acquired, and distribution channels can be created through brisk alliances, but the actions of spate (what they do or fail to do) have become the critical factor in achieving enduring achievement (Wilson, 2002, p.15). immediatelys competitive world demands the firm to invest in people and skills quite than spending huge capital on physical assets, then only they can achieve competitive advantage . hence its no surprise that a reward strategy can help the organizations to decoy and retain the dexterous ones and to motivate them to led the company to its desired goal . Companies in the service sectors require skilled and committed workforce to portray desired performance and also prov ide good services in a punctual manner to their targeted consumers in various countries across the world .Commitment towards job and in return job satisfaction are indispensable for the winnerful growth of the companies across the globe. All these facts enkindle the researcher to select this topic for research to analyze the reasons for the dissatisfaction of job and various factors which helps in motivating the employees of different sectors in particular service sector.Kressler, H.W. (2003). Motivate and Reward Performance appraisal and incentive systems for line of credit success. (S. Pearce, Trans). NY Palgrave Macmillan. (Original work published 1988.)Wilson, T. B. (2002). advance(a) Reward Systems for the Changing Workplace (2nd Ed.). Blacklick,OH, regular army McGraw Hill Companies. Retrieved 20071108,from http//site.ebrary.com.bibl.proxy.hj.se/lib/jonhh/Top?layout=documentid=10153055?nosr=12.1 EmployeeAn employee can be boundd as an individual who was hired by an e mployer to do a particularized job(web.01). He has to do a specific job efficiently within a in operation(p) area or department to accomplish the goals of the firm. In most of the organizations a performance growth planning process is undergone which will define the specific task of the employee as well as their expected performance. Employees commerce their knowledge, skill and experience in exchange for compensation from the firm. If they are not satisfied with the compensation means the propensity to switch the company will be high, this will dissolver in high turnover. So its high time to give importance to the rewards.Employees, considered as human resources of the organization are used for the benefit of the organizations, employees and the society. (Aswathappa, 2008). In order to drive the flow of business in the right perplexity for better results they have to be valued, respected, only and appreciated .These can be done with the help of rewards. In a good working e nvironment with efficient working methods and equipments employees will exhibit a better work performance and in addition to that inbred motivation to do a job for an appropriate reward will surely pave the way for improved productiveness and high profitability.For service sector employees are the most important factor, so implementation of spick-and-span reward strategies and techniques are unavoidable for high quality performance of the employees, also to reduce the high turnover rate.2.1.1 Impact of Changes on EmployeesChange is an inevitable part of life especially in the fast ever-changing world. Todays commercial climate is compelling companies to implement changes in order to survive and grow in the global market. Changes always uproot a person and falsify his lifestyle. The organizations adopt changes in order to meet the current standards its employees also have to undergo change and should hope the new circumstances. Due to the technological, social and economic change s employees hardihood a lot of insecurity and its the human nature to wear those changes without knowing about its real benefits.Its the duty of the management to handle this clarified situation in a tactful manner. One of the effective ways is to motivate and encourage the employees to tell their surpass trend under the changing circumstances so that the net result will be high profitability and ultimate success of the business. By creating a good working environment and high morale, employees wont be negatively involveed by the new changes.In order to cope up with the commercial changes companies need to be competitive and should attract employees to the job as well as should retain the employees. Employee compensation and benefit packages are the backing up factors for many potential employees who may face discomfort in their work environment due to the social, economical and adept changes without financially jeopardizing the success of the business.Today its a necessary fact that irrespective of the changes which companies are undergoing they should keep their employees motivated by providing them with rewards and recognition. So by communicating the change to the employees, by making them distinctly understand about its push on organization and its benefits, the company can encourage them to do the work in an efficient manner and in exchange employees will get the rewards for their expected performance.2.1.2 Employee Management EngagementEmployee management is the key to effective performance management and employee engagement. Employee engagement is the psychological cargo of employees towards their job.As said by Charles Kettering There is a great difference between knowing and concord. It holds true in the case of business and employees. Know your employees and make them understand about the goals to be accomplished. Understanding in business means the proper management of the employees and providing them with what they expect in return f or their commitment and efficient work. honorarium can take the form of rewards, recognition, and bonny benefits package.The first and foremost need for the employee management is the right employee for the right job.The quinine water tip which helps to exercise a proper employee management are grammatical construction establishment, which means that there should be a well defined social organization for bringing out the desires performance from the employees such as setting of deadlines for a specific task etc. Another one is the value for employees. An organizations sterling(prenominal) asset are its employees so they should be motivated as well as their skills, knowledge and effort should be valued. Company should treat employees with respect by providing a confirmative work environment to the employees which will definitely boost their performance and to encourage them to meet the goals in an efficient manner. list to the employees and appreciate them for the effort the y put to meet the goals and provide them ways to improve their potential, thereby creating belief that the company is taking care of them.If the organization wants to enthral great heights, all it need is an engaged workforce. It is connected to three forces in an organization attrition, productivity and profitability. In order to reduce the attrition rate organizations should take care of the employees by incrementing their salaries, providing necessary incentives and bonus. Engaged workforce are always aware about the degree of expectation of work by the organization which yields high productivity. Thus they will result in an increase in the profitability of a concern which is the relative measure of success of a business.2.2 Human election ManagementThe overall management process represent five basic functions for the managers to perform planning, organizing, staffing, leading and controlling. This research focuses on one of those functions the staffing which is the personne l department management or human resource management (HRM) function. Human Resource Management is the process of acquiring, training, appraising and compensating employees and of attending to their labour relations, health and safety, and fairness concerns (Dessler, 2008pg 2).Heathfield, (2008) defined Human Resource Management (HRM) as the function within an organization that focuses on recruitment of, management of, and providing path for the people who work in the organization. This can be further explained as Human Resource Management is the organizational function that deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training(Heathfield, 2008).HRM is vital to the organization. It is the function which focuses its direction towards the management of people working in an organization. Dessler and Chiat (2009) states that, Without HRM, organizations may find themselves in different kinds of unwanted situations, such as hiring the damage people, getting fined by politics ministries for unsafe practices, finding out that people are not bountiful their best, or even over/under- salaried their employees. The most valued asset of an organization is its employees because improved quality and productivity can be achieved through trained, motivated and committed employees. The function of HRM is nil but to train, motivate and provide the employees with opportunities to be more productive and effective. Since each and every objective of business is achieved through its effective workforce, the needs of the employees should be satisfied.2.2.1 HRM ModelsHR systems and the organization structure should be managed in a way that is congruent with organizational strategy (hence the name matching model) (Armstrong, 2006). They further explained that there is a human resource cycle, which consists of four generic process es or functions that are performed in all organizations (Armstrong, 2006 pg 10).1. cream matching available human resources to jobs.2. appraisal performance management3. Rewards the reward system is one of the most under-utilized and mishandled managerial tools for driving organizational performance it must reward short as well as long achievements, bearing in mind that business must perform in the present to succeed in the future.4. victimisation developing high quality employees.2.2.2 Nature and ScopeThe role of HRM has pornographic broader and more strategic over time. In the earliest firms personnel first took over hiring and firing from the supervisors, ran the paysheet department, and administered benefit plans (Dessler, 2008pg 12). As technology in areas like testing and interviewing began to emerge, the personnel department began to play an expanded role in employee selection, training and promotion. Today globalization, technological and nature of work trends mean that human resource managers have taken on several new responsibilities (Dessler, 2008pg 12). Human resource management involves all management decisions and action that affect the nature of the relationship between the organization and its employees-its human resources (Armstrong, 2006).Human Resource Management is pervasive in nature as it is present in all enterprises. Its focus is on results rather than on rules. HRM helps employees to develop their potential fully.HRM try to help employees develop their potential fully and to encourages employees to give their best to the organization. It is all about people at work, both as individuals and groups. It tries to put people on assigned jobs in order to produce good results. It helps an organization meet its goals in the future by providing for competent and well-motivated employees. It tries to pretend and maintain cordial relations between people working at various levels in the organization. It is a multidisciplinary activity, utilizing knowledge and inputs drawn from, for example psychology and economics.The Human Resource Management activities extend from selection to layoff of an employee in an organization. This includes the statistical regression of remuneration, training, motivation and induction of employees. Thus it helps to develop other industrial relations for employees to acquire more skills and competencies (Aswathappa, 2008).The functional diagram of HRM is given in 2.2 which intelligibly defines the interrelation between various functions which enable the organization to achieve its objectives by providing guidance and support on all matters relating to its employees.The scope of HRM can be limited to three aspects1. force-out which mainly deals with the selection, recruitment, manpower planning, placement, promotion, training, development, remuneration, incentives, productivity, layoff and retrenchment. (web 02)2. Welfare which is concerned with working conditions and amenities such as crches, canteens, rest and tiffin rooms, housing, transport, medical assistance, education, health and safety, recreation facilities. (web 02)3. Industrial aspect that covers union-management relations, joint consultation, incarnate bargaining, grievance and disciplinary procedures, block of disputes, etc. (web 02)Web 02- http//expertscolumn.com/content/human-resource-management-nature-scope-objectives-and-function2.2.2 Objectives of HRMThe objectives of HRM are to help the organization to reach its goals, to tick effective utilization and uttermost development of human resources, to ensure respect for human being, to identify and satisfy the needs of individual, to ensure propitiation of individual goals with those of the organization, to achieve and maintain high morale among employees, to provide the organization with well-trained and well-motivated employees, to increase the employees job satisfaction and self-actualization to the fullest, to develop and maintain a quali ty work life, to be ethically and socially responsive to the needs of society, to develop overall personality of each employee in its multidimensional aspect, to enhance employees capabilities to perform the present job, to equip the employees with precision and clearness in transaction of business and to inculcate the sense of team spirit, team work and inter-team collaboration.The above mentioned aims can be summarized as the overall aim of human resource management is to ensure that the organization is able to achieve success through people (Armstrong, 2006 pg8)2.2.3 HRM FunctionsIn order to achieve the above objectives, Human Resource Management undertakes some functions some of them are Human resource or manpower planning, recruitment, selection and placement of personnel, training and development of employees, appraisal of performaEffect of Reward Management on Employee MotivationEffect of Reward Management on Employee MotivationHow can Multi National Companies use Reward man agement to motivate the Employees of Different Countries? A Case of Marriott Hotels in UK.AbstractEmployees are always considered as people who play a vital role in each and every organisation. The relationship between employee and employer changes frequently through out the years. Several concepts of employees are also varying time by time.Now a days employees are having the bargaining power and they are more concerned about their individual needs and well being of their working environment. This dissertation analyses various factors which motivates an employee to work within an organisation. Employee will stay in an organisation only when their expectations are satisfied or otherwise there is a chance for him/her to leave the company. High employee turnover is a big issue in companies today.Organisations will look forward to retain only the potential key employees who will make real difference to their customers and their stake holders. This dissertation proposes a frame work to retain the employees and to reward those employees for their potential by which they are taking the organisation to a different level.This research has been progressed through literature study on employee concepts, Human Resource Management and Reward management of employees. The data from the primary research has been analysed compared and verified with the findings of secondary research and produced recommendations for the effective management of employee in multi national companies.IntroductionReward management is nowadays considered as an important topic in order to achieve the goals of a company. Employees are considered as the main factor which plays an important role in the organisation. The success of each and every organisation is its dedicated employees .Current world is filled with changes and competition. In order to survive in the current situation companies should be having employees who are loyal and expert in their own field. New technologies are developed constantly and the companies are eagerly trying to catch up those talented employees with right expertise in their own areas. Human resources as an important factor should get increased attention in managing business (Lindergen Paulson ,2008). Multinational companies are facing increased challenges from all around the world due to globalisation.1.1 Reward managementReward system usually means the financial reward on organization gives its employees in return for their labour.The term rewards system, not only includes material rewards, but also non-material rewards. The components of a reward system consist of financial rewards (basic and performance pay) and employee benefits, which together comprise total remuneration. They also include non-financial rewards (holiday trips, moving to large office, recognition, promotion, praise, achievement responsibility and personal growth) and in many case a system of performance management. Pay arrangements are central to the cultural initiative as they are the most tangible expression of the working relationship between employer and employee. Many papers examine the role of organizational culture that is, the demand for monitoring compensation. Such investigations conclude that organizational culture places a remarkable role in determining the level of economic demands. Recent researches on industrial unrest indicate that reward criteria of the organisations both financial and non-financial rewards have tremendous influence upon the employees and employers performance.Reward is a broad construct that can include anything an employee may value and desire that an employer is able or willing to offer in exchange for employee contribution. A conceptual distinction can be made between the three main constituents of rewardtype, system, and criterion. (Henderson 1989, p.2) Chiang, Flora F.T. Birtch, Thomas A (2006) An empirical examination of reward preferences within and across national settings. Management International ReviewReward type refers to the nature of the reward itself (e.g., financial and non-financial extrinsic and intrinsic). Financial rewards include direct (e.g., basic salary) and indirect (i.e., benefits and services) as well as incentive (e.g., variable pay) and non-incentive (e.g., fixed pay) categories. Non-financial rewards, on the other hand, do not benefit employees in a financial sense and consist of both extrinsic and intrinsic rewards. Extrinsic non-financial rewards are tangible rewards attached to the job and are given and controlled by a firm. Examples include employment security, promotion, status, relationships, and work conditions. By contrast, intrinsic rewards accrue from do the task itself and are self-reinforcing. Job challenge, variety, and sense of achievement are good examples of this category.Reward system represents the method or mechanism (e.g., seniority-based, performance-based) by which organizations determine employee reward outcomes (e.g., pay increases). Systems can be either performance or non-performance oriented. Where performance-oriented reward systems compensate employees based on how well they perform on the job, non-performance systems compensate employees based on a different set of criteria, such as seniority/years of service, and skills/competencies. Reward criterion then, refers to the basis of allocation (i.e., individual or group) used to determine the reward.1.2 Marriott InternationalMarriott International is a leading, worldwide, hospitality company and has more than 2,300 operating units located in the U.S. and 59 other countries and territories. It employs approximately 154,000 workers. Fortune magazine has recognized Marriott as one of the 100 Best Companies to Work for in America (1997-2001), one of the Top 80 Companies for Minorities (2000), and one of Americas Most Admired Companies overall (2001). In addition, Sales and Marketing Management magazine has named Marriott Sales as one of the top 25 sales forces in the U. S. (1997-2000).(mariott.com 13th jan 09)Marriott is and always has been an equal opportunities employer in all aspects of employment. The company is fully committed to providing a good and harmonious working environment that offers equal treatment and equal opportunities for all its associates, and where every associate is treated with appropriate respect and dignity.It is the companys policy that there should be no unlawful discrimination, harassment or victimisation of any associate, job applicant, customers, providers of service or member of public, whether in connection with recruitment, placement, training, benefits or promotion, either directly or indirectly, on grounds of race, nationality, ethnic origin, gender, marital or family status(Marriott handbook for employees 2009)Marriott is committed to fair treatment of associates and to providing training and advancement opportunities to all. Marriott has an unshakeable conviction that there associates are the most important ass ets for them. Marriott always look forward to an environment which will always supports associates growth and development. Marriott is a reputation for employing caring, dependable associates who are ethical and trustworthy and is always keen to give a home like atmosphere and friendly workplace relationships. They always try to achieve a performance reward system that recognizes the important contributions of both hourly and management associates. There are two types of associates as explained above. Hourly associates are those employees who are paid on the basis of the hours they worked. In the other hand management associates are those who are paid a fixed salary on the basis of job content assigned to them.Marriott has been selected for the research as they are having employees from all over the world. They employ people not on the basis of ethnicity, caste and religion but on the basis of experience. As they have employees from different parts of the world their needs will be d ifferent. They will be looking forward to different types of reward schemes which will suit to their needs and will satisfy them to stay with the organisation. Research has been conducted by taking Marriott as the company because they are facing a high risk of satisfying the needs of employees who are having different tastes regarding rewards which they are looking forward from the organisation. As stated earlier, Marriott has been recognized as one of the 100 companies to work for in America by Fortune magazine. This states that the employees are satisfied to an extent with the rewards which they are allotted by the organisation. As the reward management plays a role in the organisation it will be worth doing a research on the company who cares and gives equal opportunities to each and every employee in the organisation.1.3 Current postion1.3.1Current PolicyAt present Marriott do not have an existing policy for reward system to their employees. However, their unofficial approach ca n be viewed below. But they are considering reward management on the basis of Spirit to serve. It is based on the service which the associate delivers to the customer to keep the good will of the firm. The manager will nominate the name of the associate to the Human Res department according to their service. Associates name will be displayed in the notice board and sometimes this is valued more than money as an individual and as an employee.1.3.2 Current Issuesa) There is no documentation for reward management policy.b) There are currently no KPIs (key performance indicators) for monitoring and rewarding for employees performance activities.c) Human resource policy document is rarely provided to employees or its not updated.d) Literature tends to be piecemeal Employee guidelines are a separate document to the job without any details on employee recognition/reward.e) Employee recognition is applied inconsistently.f) Difficult to assess the employee performance and its questionable.g ) Employee satisfaction stands at very low rate.1.4 Expected ResultsResults are expected by looking through the issues regarding the current policies and try to make changes in order to get it done properly to satisfy the employees. Enhancements are required for the policies for the well being of the relationship between the employees and the employer. After this research it should be helpful for the company to implement activities and to sort out the responsibilities to the concerned parties. Reward management should be monitored and evaluated regularly .Employer should go to the next level to satisfy the reward and needs of the employees to get them done with the job allotted.1.5 ObjectivesThe objective of this research is to recommend improvements to Marriotts Human Resource policy. Ultimately, the policy will aim toa) Reduce the dissatisfaction of the employees on promotion criterion, on appraisal system and on salary, bonus and other fringe benefits.b) Improve the work performa nce and productivityc) Reduce the level of occupational stress that arises from feeling of discrepancy on reward.d) Describe HRM, IHRM and its importance and various HRM strategies and its importance in the current scenario.e) Identify and analyse various factors that drive employees to dissatisfactionf) Analyse various factors that motivates the employees to stay with the organisation.g) Reduce the perception gap on reward management system and develop a culture of high performance.In order to carry out the above objectives it is necessary to analyse-What are the human needs?What are the organisation various approaches towards employee needs and satisfaction1.6 ScopeThe project will cover the followinga) Review of all associated literature reward management in service and related industries.b) Review of the front-end activities to understand the extent of the employees work related problems and other dissatisfaction if any.c) Review of current HR policy promises and approach to r ecognising good work of employeesd) Establish links with enhanced HR strategyThe project applies toAll UK domestic and international employees working in MarriottBoth emergency and normal working conditions in and out of the working hours. Establish synergies with employee Performance and HR Policy.Out of scopeDeveloping processes or process mapping.Service delivery project to amalgamate employee and their locations / roles (Including transfers).1.7 OverviewThis Report analyzed trends of reward management, and its influence in multi national companies in UK. It analyzed various approaches that the industry has taken to reward employees, primarily through literature reviews, and also through the analysis of questionnaire done with the employees from Marriott in UK .This dissertation also produced recommendations for the effective management of reward process for the improved business case.Chapter 1 This is the introductory chapter that explains the Significance of the chosen field, A ims and Objectives, Rationale, The reason for selection of multi national companies especially Marriott , and end with the Overview of the Project Report.Chapter 2 This chapter proceeds with a literature review about various HRM strategies and approaches taken for the reward scheme , and to maintain the needs of the employees in the organisation for the improved product quality and services etc.Chapter 3 This chapter illustrates the characteristics of Marriott, its business nature, global exposure and the various issues that the industry is currently facing in case of reward managementChapter 4 This chapter explains various research methodologies that are used forcollecting data and information to carry out various analyses that are required to complete the research and documentation.Chapter 5 This chapter analyses various reasons in order to maintain a good reward management. This is carried out through literature analysis and through dataanalysis of the Survey conducted on various employees from the Marriott industry inUK. This chapter ends with the findings from the analysis with critical evaluations.Chapter 6 This chapter explains evaluated recommendations for the findings to thereward management of employees, as a management strategy for improving the brand standards.Chapter 7 this chapter gives conclusion about the future development in the industry if the reward management schemes have been allocated properly, which may provide a solution for the future possible issues.Literature ReviewThe basic mantra for the success of any business organization is the appropriate allocation and usage of resources. The most important resources comprise of four Ms man, material, money and machine. The dissertation under consideration deals with the first M that is the manpower or the employees of an organization. They are the backbone as they put every plan into action which is inevitable for the success of a company. So their importance in business cannot be ruled out and they form the backbone of every organization because they determine the success and failure rates.Since the most important set of public for an organization is its workforce which forms the key ingredient of its success, it is a necessary fact that the employees must be kept happy and well bonded. In todays competitive labour market, irrespective of the size of the organization it has become a major concern to attract and retain employees. One of the important reasons underlying the high turnover is low job satisfaction, appreciation and non competitive benefits package. Corporate should keep one point in mind that there is no lack of opportunities for a talented person. So if he/she is not satisfied means they will switch over to some other firm which provides them with more suitable job. So in order to retain the employees and make them happy, there are so many ways like appreciation, recognition, incentives and awards .In addition to that several motivational tools should be implemented from time to time to keep the employees morale high.These promotional items make for a smart tool because they serve as a token of gratitude and also show that you care. It is a great way of thanking the employees for their services .Moreover they are also expecting some sort of recognition from the company and promotional items help to do just that. Making the employees happy as well as a feel that they are cared is very important if the organization wants them to exhibit performance in a desired manner. Promotional items also give a sense of recognition to the employees. Thus it helps in the strong bonding between employees and the employer which ultimately leads to the smooth functioning and a pleasant work environment which is a must for an organization aiming to reach at the top.In the 1920s, the view on a persons role in the industrial working world started to change, the human was beginning to be seen as a subject with potential (Kressler, 2003). As described by Wilson Technology can be replicated, capital can be acquired, and distribution channels can be created through new alliances, but the actions of people (what they do or fail to do) have become the critical factor in achieving enduring success (Wilson, 2002, p.15).Todays competitive world demands the firm to invest in people and skills rather than spending huge capital on physical assets, then only they can achieve competitive advantage .Thus its no surprise that a reward strategy can help the organizations to attract and retain the talented ones and to motivate them to led the company to its desired goal . Companies in the service sectors require skilled and committed workforce to exhibit desired performance and also provide good services in a timely manner to their targeted consumers in various countries across the world .Commitment towards job and in return job satisfaction are unavoidable for the successful growth of the companies across the globe. All these facts interested the researcher to select this topic for research to analyze the reasons for the dissatisfaction of job and various factors which helps in motivating the employees of different sectors especially service sector.Kressler, H.W. (2003). Motivate and Reward Performance appraisal and incentive systems for business success. (S. Pearce, Trans). NY Palgrave Macmillan. (Original work published 1988.)Wilson, T. B. (2002). Innovative Reward Systems for the Changing Workplace (2nd Ed.). Blacklick,OH, USA McGraw Hill Companies. Retrieved 20071108,from http//site.ebrary.com.bibl.proxy.hj.se/lib/jonhh/Top?layout=documentid=10153055?nosr=12.1 EmployeeAn employee can be defined as an individual who was hired by an employer to do a specific job(web.01). He has to do a specific job efficiently within a functional area or department to accomplish the goals of the firm. In most of the organizations a performance development planning process is undergone which will define the specific task of the employee as well as their expected performance. Employees trade their knowledge, skill and experience in exchange for compensation from the firm. If they are not satisfied with the compensation means the propensity to switch the company will be high, this will result in high turnover. So its high time to give importance to the rewards.Employees, considered as human resources of the organization are used for the benefit of the organizations, employees and the society. (Aswathappa, 2008). In order to drive the flow of business in the right direction for better results they have to be valued, respected, encouraged and appreciated .These can be done with the help of rewards. In a good working environment with efficient working methods and equipments employees will exhibit a better work performance and in addition to that natural motivation to do a job for an appropriate reward will surely pave the way for improved productivity and high profitability.For service sector employees are the most import ant factor, so implementation of new reward strategies and techniques are unavoidable for high quality performance of the employees, also to reduce the high turnover rate.2.1.1 Impact of Changes on EmployeesChange is an inevitable part of life especially in the fast changing world. Todays commercial climate is compelling companies to implement changes in order to survive and grow in the global market. Changes always uproot a person and alter his lifestyle. The organizations adopt changes in order to meet the current standards its employees also have to undergo change and should accept the new circumstances. Due to the technological, social and economic changes employees face a lot of insecurity and its the human nature to resist those changes without knowing about its real benefits.Its the duty of the management to handle this delicate situation in a tactful manner. One of the effective ways is to motivate and encourage the employees to put their best effort under the changing circu mstances so that the net result will be high profitability and ultimate success of the business. By creating a good working environment and high morale, employees wont be negatively affected by the new changes.In order to cope up with the commercial changes companies need to be competitive and should attract employees to the job as well as should retain the employees. Employee compensation and benefit packages are the backing up factors for many potential employees who may face discomfort in their work environment due to the social, economical and technical changes without financially jeopardizing the success of the business.Today its a necessary fact that irrespective of the changes which companies are undergoing they should keep their employees motivated by providing them with rewards and recognition. So by communicating the change to the employees, by making them clearly understand about its impact on organization and its benefits, the company can encourage them to do the work in an efficient manner and in exchange employees will get the rewards for their expected performance.2.1.2 Employee Management EngagementEmployee management is the key to effective performance management and employee engagement. Employee engagement is the psychological commitment of employees towards their job.As said by Charles Kettering There is a great difference between knowing and understanding. It holds true in the case of business and employees. Know your employees and make them understand about the goals to be accomplished. Understanding in business means the proper management of the employees and providing them with what they expect in return for their commitment and efficient work. Compensation can take the form of rewards, recognition, and reasonable benefits package.The first and foremost need for the employee management is the right employee for the right job.The keynote tip which helps to exercise a proper employee management are Structure establishment, which means tha t there should be a well defined structure for bringing out the desires performance from the employees such as setting of deadlines for a specific task etc. Another one is the value for employees. An organizations greatest asset are its employees so they should be motivated as well as their skills, knowledge and effort should be valued. Company should treat employees with respect by providing a positive work environment to the employees which will definitely boost their performance and to encourage them to meet the goals in an efficient manner. Listen to the employees and appreciate them for the effort they put to meet the goals and provide them ways to improve their potential, thereby creating belief that the company is taking care of them.If the organization wants to capture great heights, all it need is an engaged workforce. It is connected to three forces in an organization attrition, productivity and profitability. In order to reduce the attrition rate organizations should tak e care of the employees by incrementing their salaries, providing necessary incentives and bonus. Engaged workforce are always aware about the degree of expectation of work by the organization which yields high productivity. Thus they will result in an increase in the profitability of a concern which is the relative measure of success of a business.2.2 Human Resource ManagementThe overall management process represent five basic functions for the managers to perform planning, organizing, staffing, leading and controlling. This research focuses on one of those functions the staffing which is the personnel management or human resource management (HRM) function. Human Resource Management is the process of acquiring, training, appraising and compensating employees and of attending to their labour relations, health and safety, and fairness concerns (Dessler, 2008pg 2).Heathfield, (2008) defined Human Resource Management (HRM) as the function within an organization that focuses on recruit ment of, management of, and providing direction for the people who work in the organization. This can be further explained as Human Resource Management is the organizational function that deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training(Heathfield, 2008).HRM is vital to the organization. It is the function which focuses its direction towards the management of people working in an organization. Dessler and Chiat (2009) states that, Without HRM, organizations may find themselves in different kinds of unwanted situations, such as hiring the wrong people, getting fined by government ministries for unsafe practices, finding out that people are not giving their best, or even over/under- paying their employees. The most valued asset of an organization is its employees because improved quality and productivity can be achieved through trained, motivated and committed employees. The function of HRM is nothing but to train, motivate and provide the employees with opportunities to be more productive and effective. Since each and every objective of business is achieved through its effective workforce, the needs of the employees should be satisfied.2.2.1 HRM ModelsHR systems and the organization structure should be managed in a way that is congruent with organizational strategy (hence the name matching model) (Armstrong, 2006). They further explained that there is a human resource cycle, which consists of four generic processes or functions that are performed in all organizations (Armstrong, 2006 pg 10).1. Selection matching available human resources to jobs.2. Appraisal performance management3. Rewards the reward system is one of the most under-utilized and mishandled managerial tools for driving organizational performance it must reward short as well as long-term achievements, bearing in mind that business must perform in the present to succeed in the future.4. Development developing high quality employees.2.2.2 Nature and ScopeThe role of HRM has grown broader and more strategic over time. In the earliest firms personnel first took over hiring and firing from the supervisors, ran the payroll department, and administered benefit plans (Dessler, 2008pg 12). As technology in areas like testing and interviewing began to emerge, the personnel department began to play an expanded role in employee selection, training and promotion. Today globalization, technological and nature of work trends mean that human resource managers have taken on several new responsibilities (Dessler, 2008pg 12). Human resource management involves all management decisions and action that affect the nature of the relationship between the organization and its employees-its human resources (Armstrong, 2006).Human Resource Management is pervasive in nature as it is present in all enterprises. Its focus is on results rather than on rules. HRM helps employees to develop their potential fully.HRM try to help employees develop their potential fully and to encourages employees to give their best to the organization. It is all about people at work, both as individuals and groups. It tries to put people on assigned jobs in order to produce good results. It helps an organization meet its goals in the future by providing for competent and well-motivated employees. It tries to build and maintain cordial relations between people working at various levels in the organization. It is a multidisciplinary activity, utilizing knowledge and inputs drawn from, for example psychology and economics.The Human Resource Management activities extend from selection to layoff of an employee in an organization. This includes the fixation of remuneration, training, motivation and induction of employees. Thus it helps to develop other industrial relations for employees to acquire more skills and competencies (Aswathappa, 2008).Th e functional diagram of HRM is given in 2.2 which clearly defines the interrelation between various functions which enable the organization to achieve its objectives by providing guidance and support on all matters relating to its employees.The scope of HRM can be limited to three aspects1. Personnel which mainly deals with the selection, recruitment, manpower planning, placement, promotion, training, development, remuneration, incentives, productivity, layoff and retrenchment. (web 02)2. Welfare which is concerned with working conditions and amenities such as crches, canteens, rest and lunch rooms, housing, transport, medical assistance, education, health and safety, recreation facilities. (web 02)3. Industrial aspect that covers union-management relations, joint consultation, collective bargaining, grievance and disciplinary procedures, settlement of disputes, etc. (web 02)Web 02- http//expertscolumn.com/content/human-resource-management-nature-scope-objectives-and-function2.2.2 O bjectives of HRMThe objectives of HRM are to help the organization to reach its goals, to ensure effective utilization and maximum development of human resources, to ensure respect for human being, to identify and satisfy the needs of individual, to ensure reconciliation of individual goals with those of the organization, to achieve and maintain high morale among employees, to provide the organization with well-trained and well-motivated employees, to increase the employees job satisfaction and self-actualization to the fullest, to develop and maintain a quality work life, to be ethically and socially responsive to the needs of society, to develop overall personality of each employee in its multidimensional aspect, to enhance employees capabilities to perform the present job, to equip the employees with precision and clarity in transaction of business and to inculcate the sense of team spirit, team work and inter-team collaboration.The above mentioned aims can be summarized as the o verall aim of human resource management is to ensure that the organization is able to achieve success through people (Armstrong, 2006 pg8)2.2.3 HRM FunctionsIn order to achieve the above objectives, Human Resource Management undertakes some functions some of them are Human resource or manpower planning, recruitment, selection and placement of personnel, training and development of employees, appraisal of performa