The Link Between Motivational Theory and Reward
Encourage or influence someone to behave in a certain way is known as motivation. In this article, our focus is to evaluate the Reward and Motivation Procedure of Harrods. Motivated and dedicated employees are the assets of an organization. The success of motivation depends on the uniqueness and diversity of involved groups of people. It is very important for the performance development of the employees to bring out the best outcome from them.
Reward and Motivation Procedure of Harrods in UK
Reward means a gift or achievement of workers for their outstanding performance. It can be both financial and non-financial such as promotion, achievement praise, etc. The reward can be given at any time employers feel satisfied with their employees’ performance.
There is a direct and positive relationship between motivation and reward. Because of motivation employees feel the urge to work hard and reward comes for outcomes of their hard work. It can be said that reward is the positive achievement of employees for their sincere motivation. Better rewards increase the motivation and performance of the employees (Saul, 1996). In another way, motivated employees managed to get higher rewards. However, reward and motivational theories are interrelated.
The process of job evaluation and other factors determining pay in Harrods
Job evaluation is the systematic process of defining job size, worth and responsibilities within an organization. The process of job evaluation in Harrods has some steps and they are:
- Acquiring job acceptance
- The forming job evaluation committee
- Finding the jobs for evaluation
- Analyze and prepare the job description
- Selecting the method of evaluation
- Classifying jobs
There are two factors that generally determine employees’ payment. They are external and internal factors. External factors include government policies, rules, and regulations, labor market, labor union, social and economic conditions, etc. Internal factors include the company’s strategy, job evaluation, and employee performance, etc. (Nelson, 1994) . Without out these common factors, Harrods also get affected by some other factors like:
- Organization’s size
- Seniority
- Skills and experience
- Industry sector
- Profitability
- Performance of the employees
- The economic and social condition of the organization etc.
The effectiveness of the reward system in two different work contexts
Rewards are given for appreciation to the employees to motivate them and give their best outcome for any particular organization. It depends on the employers how they want to provide their employee’s reward.
The reward can be provided in two ways:
- Extrinsic rewards
- Intrinsic rewards
Extrinsic reward includes various financial incentives like a bonus, salary increments, gifts, commissions, and target bonus. Intrinsic rewards are non-financial rewards like good feedback, praise, recognition, promotion, trust, seniority, authority or more responsibilities. Both of the rewards are beneficial in different work contexts and perspectives.
Harrods employees prefer more intrinsic rewards rather than extrinsic rewards. They feel happy and motivated to work for rewards. So their professional recognitions are most important than personal.
On the other hand, Pizza hut employees prefer extrinsic reward and they feel that bonuses, salary increments or gifts are more important than anything.
So the reward processes vary from different workplaces and contexts for various reasons. The organizations analyze their employees to know about their preference for rewards too for future needs.
Methods that are being used by business to monitor employee performance in Harrods
There are various methods are being used by businesses to monitor employee performance in Harrods. Mostly Harrods use observation and feedback to monitor their employee’s behavior and performance. In this regard the hire some people to monitor their employees all the time and provide feedback about them to the HR department or top-level management (Saul,1996). By monitoring and analyzing their employees they prepare a suitable process to improve employees’ performance and outcome.
- Performance Evaluation: It is another process of Harrods to monitor employees and evaluate their performance and compare it with the standard.
- Performance Standard: Harrods sets a performance standard as a benchmark for the employees to compare with their current performance after monitoring. They also provide them with feedback to improve or encourage employees individually.
- 360 Degree Performance Appraisal: In case of 360-degree performance appraisal employees performances evaluate by stakeholders and give proper feedback to the HR department of Harrods.
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