Reward Management Research Articles

IT Competency Model for IT People

Speed of innovation in Information Technology will not aligned with speed of capability human resource in theorganization, if there is no strategy in human resource development especially in information technology.Information Technology and Human Resource need a framework that can link both as key success factor oforganization in implementation information technology. Framework will defined competency based on jobdescription IT people in organization, competency standard as reference in mapping with job description we can get from The European e-Competence Framework (e-CF) or SFIA (Skills Framework for the Information Age). After we get list of competency aligned with job description from IT people, we can mapping competency to job roles in organization structure. From this we already have a competency framework based on job description and related to job roles. We can use this framework for Human Resource Development in Information Technology, through assessment IT people based on competency framework, we can found gap competency of IT people and fulfill gap competency with training. Or we can use this competency framework for reward management of IT People, Career management of IT People, Training development of IT People and recruitment/selection of IT People.

Management compensation systems in Central and Eastern Europe: a comparative analysis

Drawing upon a large scale comparative data-set we explore the preferred approaches to managerial compensation pursued by organizations operating in the Central and Eastern European (CEE) transition economies of Bulgaria, the Czech Republic, Estonia, Lithuania, Hungary, Slovenia, Slovakia and Serbia. In order to generate insights on the state of management compensation and the extent to which these transition economies are characterized by idiosyncratic elements, relative to their Western European counterparts, we compare management compensation practices in these CEE economies (N = 1147) with approaches pursued in more developed western European economies (N = 2698). Overall, our results suggest that organizations in the CEE region share some similarities with their western counterparts, most especially in terms of the individual level of determination of pay for managers. Within the CEE region, we find that financial participation is less common than performance-related pay in the composition of the overall managerial reward package, though there are some variations between countries. National culture does appear significant as a determinant of variations in the preferred approach to management compensation.

Attention to nurses' rewarding - an interview study of registered nurses working in primary and private healthcare in Finland.

To identify meaningful types of rewards and the consequences of rewards as expressed by Finnish registered nurses working in primary and private healthcare. Previous studies have found significant associations between nurses' rewards and both their commitment and job satisfaction. Furthermore, appropriate rewards can have beneficial effects on factors including workforce stability and occupational satisfaction that are highly important in times of nurse shortages. A cross-sectional, qualitative interview study. Data were collected via individual semi-structured interviews (n=20) with registered nurses working in Finland's primary and private healthcare, and subjected to qualitative content analysis. Six meaningful types of rewards were identified by the registered nurses: Financial compensation and benefits, Work-Life balance, Work content, Professional development, Recognition, and Supportive leadership. Rewards encouraged respondents to perform their work correctly and reinforced occupational satisfaction, but also caused feelings of envy and stress. It is essential to pay attention to nurses' preferences for particular rewards and to reward management. When designing effective reward systems for registered nurses, it is not sufficient to provide financial rewards alone, as various kinds of non-financial rewards are both meaningful and necessary. When trying to improve registered nurses' commitment and job satisfaction through reward management, it is important to listen to nurses' opinions to create a reward system that integrates financial and non-financial rewards and is fair from their perspective. Healthcare organisations that offer registered nurses a holistic reward system are more likely to retain satisfied and committed nurses at a time of increasing nursing shortages.

Strategic rewards - a case based study

Talent has won ’The war for talent’. The war is caused by the continuously increasing demandsupply gap for skilled workforce. Consequently, organizations face difficulty in attracting and retaining talent. Talent market is highly dynamic, since new disciplines of knowledge and skills are continuously emerging due to explosive growth of knowledge. It is resulting in rapidly changing technology and preferences and priorities of workforce in the midst of shortages. This necessitates appropriate reward system but in practice very few organizations offer attractive value proposition to their workforce. Most organizations still adhere to the conventional reward system. The traditional Rewards Management assumes money, and cash components to be the strongest motivator and the best performance incentives for employees. Higher wages/rewards have a close association with efficiency/productivity and employee turnover rates. Neo-classicists postulate equality between wages and the marginal product of labor. Higher-wages help in facing short supply of talent. Neo-classicists argue that the ’Total Factor Productivity (TFP)/Multi-factor Productivity (MFP)’ depends on investment in human capital; education and skills are the drivers of productivity of labor. It implies that the companies, especially service providers, which use manpower as the pivot, should particularly invest in human capital. This study also considers rewards as the main driver of high performance; so the companies should focus on satisfying the needs of all the employees by balancing extrinsic and intrinsic values; which is based on strategic reward system. Further, the Rewards Strategy, Business Strategy and external environment should be aligned to ensure sustainable results. Outcomes tend to diverge from desired goals if business and rewards strategy are not well aligned. ’Strategic Rewards System’ does not emerge in one go it evolves if the above conditions are satisfied. Therefore, the study traces the historical evolution of ’Strategic Rewards System’ by review of literature. This furnishes the rationale for the case study based on a Small Medium Enterprise; it provides evidence for the choice of the “Strategic Rewards System” by the organization under study. The case study assesses the relation of reward strategy with the organizational performance. The study concludes that a well-designed and a well-executed Strategic Rewards System reverses employee turnover and improves performance without a lofty budget.

Applicability of economic instruments for protecting ecosystem services from cultural agrarian landscapes in Doñana, SW Spain

Abandonment and conversion of cultural agrarian landscapes are major drivers behind the loss of ecosystem services in Europe. One incentive for land-use conversion is the higher (private) economic return from industrial mono-functional crops relative to traditional multi-functional ones. However, conversion of cultural agrarian landscapes can involve high direct and indirect costs to society through the loss of ecosystem services. Using as a case study the traditional vineyards surrounding the Doñana National Park, South-West Spain, this research has three objectives: i) to measure soil erosion impacts from the conversion of traditional vineyards in biophysical and economic terms, (ii) to identify drivers of change behind the loss of traditional vineyards, and iii) to assess the applicability of economic instruments to protect traditional vineyards. Our results suggest that uprooting of traditional vineyards is an important driver behind the siltation of the marsh in the Doñana National Park, which in turns involve socio-environmental costs in terms of loss of ecosystem services and cultural values. Subsidy reform to reward management practices that sustain ecosystem services and eco-labelling of vine-derived products are pointed at as promising economic instruments to slow down or reverse abandonment or conversion of traditional vineyards.

Green human resource management practices: a review

The objective of this review is to explore green human resource management practices of organisations based on the existent literature. In this emerging field, it has been generally observed that the existent literature has to be extended further from the perspective of functions of Human Resource Management (HRM). It reveals that much of the past research focused on a few functions of HRM such as recruitment, training and development, performance evaluation and reward management in integrating environmental management with HRM though HRM has more potential and scope in improving organisation’s environmental performance. Hence, this review incorporates diverse functions of HRM to explore the respective green HRM practices under those functions. The findings of the review have identified and highlighted several green HRM practices under the 12 functions of HRM such as job design, job analysis, human resource planning, recruitment, selection, induction, performance evaluation, training and development, reward management, discipline management, health and safety management and employee relations. The contribution of this paper lies in extending the scope and depth of green HRM in materializing sustainable environmental performance of organisations.

How do changes in human resource management practices influence employee engagement? A longitudinal study in a hotel chain in the Philippines

ABSTRACTDrawing from social exchange theory, this study investigates how changes in human resource management practices influence and affect employee engagement in a hotel chain. Changes in human resource management practices were identified, and corresponding changes in the level of employee engagement were observed. One hundred forty-five employees from a hotel chain in the Philippines participated in a longitudinal study. Results show that improvements in human resource management practices, particularly in the areas of reward management and training and development, yielded positive and significant change in the level of employee engagement. Implications for human resource management, particularly in the hospitality and tourism context, are discussed.

Antecedents, consequences and moderators of ambidextrous behaviours among frontline employees

PurposeThe demand for efficient and flexible workers is growing in the service industry, with the promise of enhanced revenue generation and customer retention. The purpose of this paper is to investigate the antecedents (i.e. intrinsic motivation (IM)) and consequences (i.e. service performance (SP)) of front line employees’ ambidextrous behaviours, as well as the moderating roles of a proactive personality (PP), emotional intelligence (EI) and extrinsic reward (ER) in the IM-individual ambidexterity (IA) relationship.Design/methodology/approachA self-administered questionnaire was designed to collect empirical data from 205 flight attendants working at a Taiwanese airline company. Hierarchical regression analysis is used to test the proposed relationships and estimate factor affecting employees’ SP.FindingsThe results confirm that IM is positively related to ambidextrous behaviour, which in turn improves SP. EI positively moderates the relationship between IM and IA, while a PP and ER negatively moderate it.Practical implicationsThis paper entails useful implications for service providers to better understand front line employees’ ambidextrous behaviours and determine effective recruitment and reward management strategies that reflect the differing employee characteristic.Originality/valueThis study addresses the important issue of ambidextrous behaviours in a service-oriented context by examining whether and how PP, EI and ER moderate the relationships among IM, IA and SP.

REWARD MANAGEMENT ON MOTIVATION TO PERFORM JOB

This study investigated the relationship between reward management and motivation to perform job. A quantitative survey method was employed to collect self-administered questionnaires from employees who work at government departments in Klang Valley, Peninsular Malaysia. The outcomes of linear regression analysis showed three important findings: first, communication was positively and significantly correlated with motivation to perform job. Second, participation was positively and significantly correlated with mo-tivation to perform job. Third, performance appraisal was positively and significantly correlated with motiva-tion to perform job. This result confirms that communication, participation and performance appraisal is im-portant determinants of motivation to perform job in the organizational sample. Further, discussion, implyca-tions and conclusions are elaborated.

HUMAN RESOURCE PRACTICES, SUPPORTIVE LEADERSHIP AND ORGANIZATIONAL PERFORMANCE

The objective of this paper is to find out the relationship that exists between the various human resource management practices and the performance of employees in the health sector. The study was guided by a number of theories including the implicit persons’ theory about motivation, the human capital theory which provides a perspective that value addition by people within an organization can contribute to better performance. Others are the Vroom’s expectancy theory, the Justice theory and the control theory. The empirical review reveals that there are varied relationships between performance appraisal and performance, reward management and performance as well as human resource development and performance. There is a role of the management as far as management intervention is concerned. They also agreed that there should be some input from the management to ensure a better effect of these practices to performance of the organization. The research was to determine how the management can play a role to ensure the best of performance in the health sector especially the public health sector.

Reward Type and Management Control: An Examination of Organizational Wellness Programs

We examine management control systems in the context of wellness programs — organizational initiatives designed to improve the physical and mental health of employees. In a field study setting, we examine the associations of three different types of incentives (cash, gift cards, and tangible rewards) with reward selection and wellness program performance. We find that employees choose to be rewarded most often with cash, followed by gift cards and tangible rewards, respectively. We find that program participants’ performance is greatest when their chosen reward is a gift card, despite cash rewards being selected more than twice as often. Tangible rewards are the least frequently selected and are associated with lower performance than gift cards but relatively similar performance as cash. These results support theories of individual choice and motivation, and suggest that employees’ incentive choices are not necessarily those with the strongest motivational power.

Perception of Employees Concerning Organizational Climate with reference to Manufacturing Industries, Uttarakhand

Organizational Climate means personality of an organization. Like personality of one person differs from other likewise the personality of one organization differs from other. There are several factors on the basis of which one organization can be differentiated with others. In this research the factors that are used to differentiate one organization from other are based on standard tool MAO-C developed by Pareek (2002). These factors consisted of dimensions like orientation, interpersonal relationships, supervision, problem management, management of mistakes, conflict management, communication, decision making, trust, management of rewards, risk taking, and innovation and change. The main aim of this study is to analyze perception of employees of their organization climate. The sample size was 252 and stratified random sampling was used. Descriptive statistics mean and SD were used. Inferential statistics ANOVA was used to reach conclusion. Employees were partitioned on the basis of demographic profile like gender, qualification, designation, and department. This is because the concept of organizational climate is a cognitive process and likely to be affected by employees of different groups. The main findings of the study were that except for employees partitioned on the basis of designation there was significant difference in the perception of employees categorized on the basis of qualification, age, and department concerning organizational climate. Beside, this several other conclusions were reached.

Human Resource Management in Sports: A Critical Review of its Importance and Pertaining Issues

Abstract This paper will illustrate the meaning and importance of human resource management (HRM), human resource planning, and strategic human resource management, which are critically important for an organization’s effectiveness and must be effectively managed (Doherty, 1998). This study used the literature review method to acquire its final results. The relevant HRM literature review was done according to the purpose of the study. It used the purposive random sample method for selecting relevant literature. This study shows the current economic environment in the sports industry; the second part of the study critically analyzes the value of the strategic management of employees for the effective and efficient operation of sports organizations. It also critically evaluates human resource planning and other pertinent issues in terms of legislation, recruitment, selection, training, induction, and reward management from different international examples in sports management. Over the past few decades, increasing competition, globalization, and continuous changes in the market and in technology have emphasized the need to rethink the management of the organization and of human resources for the sake of overcoming significant challenges (Taylor et al., 2006). Therefore, managers should use strategic human resource management to overcome significant issues and to form well-planned strategies so that the organization may succeed.

Why are so Many COOs Promoted to CEO? Relative Firm Performance, Executive Rank, Tenure, and COO Promotion in CEO Selection

This paper emphasizes the background of senior management in the search for new CEOs since such executive positions would be populated by individuals with accumulated information, work experience, and managerial ability that may affect firm performance and therefore the board’s decision in the CEO selection. Analyzing a sample of 1185 new CEO appointments, I investigate the distribution of their prior positions: internal COO, internal CFO, external CEO, external CFO, and external COO. I find that internal COOs are most likely to become their firms’ new CEOs. More than 75 percent of the new Chief Executive Officers (CEOs) are former Chief Operating Officers (COO) within their companies, whereas only about 10 percent of the new CEOs are former Chief Financial Officers (CFO) within their companies. Only about 10 percent of the new CEOs are recruited externally. I explore why internal COOs are the dominant candidates for the CEO and evaluate the key determinants of candidate promotions. Good past industry-adjusted operating performance and stock returns increase the likelihood of internal COO promotion. Further, the likelihood of COO promotion increases when the former CEO retires and decreases when the former CEO resigns, revealing that potential performance-induced CEO turnover would affect internal COO promotion. In general, internal COOs are perceived to be superior to external executives in cases of better relative operating and market performance, and superior to internal CFOs based on closer executive rank to their CEO and longer tenure that represents accumulated management ability and work experience. This study essentially reconciles both CEO turnover and internal promotion through the analysis of the new CEO selection from the perspective of managerial heterogeneity. COO promotion decisions are specific to each firm and industry performance and they impact internal government mechanisms such as promotions as managerial rewards and CEO replacement decisions.

The Effect of Reward Management on Employees Commitment in the Universities in Nakuru County-Kenya

The aim of this study is to examine the effect of financial and non-financial rewards on organisational commitment of employees in Universities in Nakuru County. The specific objectives of the study were as follows: to determine the effect of financial reward on normative commitment of employees in universities in Nakuru County; to determine the effect of financial rewards on affective commitment of employees in universities in Nakuru County; to establish the effect of financial rewards on continuance commitment of employees in universities in Nakuru County; and finally, to determine the combined effect of rewards management on employees organisational commitment in universities in Nakuru County. The sample size of the study comprised 224 full-time lecturers working in 10 universities within Nakuru County. Data was collected using the questionnaire method. The data obtained was processed using the Statistical Package for Social Sciences (SPSS) and was analysed using both descriptive and inferential statistics. The analysed data was presented using graphs, charts and tables. Results indicated that there was a moderate significant positive relationship between financial rewards and affective commitment (r = 0.344, p < 0.000) and a weak significant positive relationship between financial rewards and normative commitment (r = 0.249, p < 0.008). The study found that financial reward management practices collectively have significant effect on organizational commitment. The study recommended that universities in Nakuru County should carry out salaries reviews in order to develop a reward management structure that is externally competitive, internally fair and consistent with the current acceptable international rates. It was also recommended that the top management in the Universities should encourage employees’ to participate in decision making and they should implement employee decision.

The determinants of innovation and productivity of a nation

This paper synthesizes five determinants of innovation and productivity of a nation. They are: Human resources and their characteristics, Natural and physical resources and their characteristics, Systems and strategies and their characteristics, Interactions and relationships among above three aspects, and Changes in the above four aspects. Though this paper separately identifies the determinants of innovation and productivity, using them for creating innovation and productivity into a process is complex and dynamic. Hence, for instance, we suggest primarily investigate how the characteristics of human resources in a nation determine its innovation and productivity; or how national reward management of a nation can affect innovation potential of the nation, in consideration of complexity of the relationship among the variables. Further, this study proposes to explore how these five determinants influence each other and work together among them; and/or whether they work collaboratively or competitively. These studies can pave the ways for determining the actual level of innovation and productivity of a nation. This paper, as a base, contributes to that extent.

“Reward Management – Linking Employee Motivation and Organizational Performance”

“Reward Management – Linking Employee Motivation and Organizational Performance”

The Effects of Boards Composition, Rewards and Ownerships on Intellectual Capital Efficiency of Banks in Nigeria

This paper examines the impact of corporate governance mechanisms on intellectual capital efficiency (ICE) of Nigerian Banks. The data for the study were generated from the audited financial statements of the sample banks for the period of 11 year (2003 - 2013). The study adopted Value Added Intellectual Co-Efficient (VAIC) methodology which includes three ICE components: human capital efficiency, structural capital efficiency and capital employed efficiency. Corporate governance mechanisms considered in this study are Boards Composition, Managerial Rewards, and Ownership Structure. The study controls for the return on equity and leverage of banks. The regression results show that the corporate governance attributes considered in this study are good indicators of (ICE) because their impact are positively and significantly at less than 1% with R-square of 58% and adj R-square of 55%. Also the two control variables are significantly related with intellectual capital efficiency. This implies that corporate governance have significant impact on ICE of firms in the Nigerian banking industry. Therefore, the study recommends that board should acquire political skills which are necessary to effective governance. In order to improve ICE, board should make it as their responsibility to develop and sustain healthy relationships and maintain open, two-way communication with all constituencies of staff in order to incite their IC towards organization’s success.

DO HR PARTICES AFFECT SERVICE QUALITY OF FRONT LINE STAFF

The basic objective of this study was to examine the role of HR practices like recruitment and selection, training, performance appraisal and rewards management in enhancing overall service quality of the frontline staff in the hotel industry in Karachi, Pakistan. Hypothetic deductive approach was used for examining the relationship between independent and dependent variables. Customer service dimensions used in this study were derived from the SERVQUAL model that included frontline staff appearance, reliability of service, responsibility among the staff, assurance of job related knowledge and etiquette and empathy. For the purpose of study 15 hotels and restaurants of various sizes with minimum 30 frontline employees were chosen. Ten frontline employees from reception staff, waiters/waitresses, housekeeping employees were chosen using quota sampling for data collection. Opinion of the frontline staff was sought through structured questions as to how the four HR practices are likely to affect quality of five dimensions of the customer service quality. Data was collected through a structured questionnaire and integrated through SPSS. Results of study showed that the two HR practices; training and rewards management significantly affect the service quality of the frontline staff and this effect is far stronger than the effect of other HR practices. This research will not only bring significant practical implications for better human resource management in hospitality sector but also provide important indicators for future research. The future study may aim at identifying various internal and external factors that affect efficacy of various HR practices and policies and consequently their contribution in enhancing service quality of staff. Studies are also needed to identify further impediments obstructing the positive influence of recruitment and selection and appraisal practices on service behavior and quality of the staff. The role of various intervening or mediating variables such as employee collaboration, organization culture can also be probed further.

Mehanizmi rešavanja agencijskog problema u savremenoj korporaciji

Prevention of reduction in value of business assets or avoidance of yield losses for shareholders could be achieved by applying various mechanisms for solving agency problems. In order to reduce the management's deviation from shareholders' interests, shareholders could: 1) design compensation package for the management team, and 2) monitor the activities of management. Overcoming the agency's problems can be achieved: the division of responsibilities and control mechanisms between the management and the board of directors, increasing the level of transparency in defining the obligations and ways to reward management, increasing the ownership stake of shareholders with greater share in the equity and the replacement of inefficient management. The authors first present the agency problem and then analyze the ways of its resolving aimed at reducing or completely removing the conflict between shareholders and managers.