Human resource management Essay Example | Topics and Well Written Essays - 1250 words - 2

Human resource management - Essay Example In short, employee’s effort (F) towards an action is the valence (V), i.e., value attached to the outcome multiplied by the probability/expectancy (E) attached to their action that will lead to the desired outcome (Koontz, 2010). Considering this theory in McDonald’s context provides some very interesting findings. For instance, McDonald’s motivation and recognition schemes include bonuses for high performers, recognition as employer, team and manager of the term, champion awards, promotions etc (Lovewell, 2013). Considering that the motivation factors are varied among employees, most of the factors fall into either monetary, or non-monetary categories; and, McDonald’s attempts to provide opportunities for earning both types of rewards, thereby considering both extrinsic and intrinsic motivating factors. Employees that depend on intrinsic motivation look for recognition of their efforts and will thus strive to achieve the same by putting in more efforts; c onversely, extrinsically motivated staff is satisfied by the bonuses and other compensations such as company-sponsored dinner outings. Job evaluation is the process of systematic and relative comparison of roles to assess their net worth in order to derive a rational pay structure. Job analysis is the precursor for job evaluation and involves the decisions of many people that may be analytical and also subjective (Cole, 2002). For instance, Tesco has adopted a simple, clear and transparent job evaluation system that is based on subjective evaluation and divides its roles into six bands of work-levels. Work and responsibilities are also divided proportionately, with the lowest level being level-1 and highest at level-6. (Level pegging, 2009). Their pay bands are relative to the market standards for the same levels in other companies. This banding has resulted in flat organizational structure, thus reducing bureaucratic levels that were slowing down decision-making and implementing activities as well as increasing costs for the company. Other factors include providing competitive pay packages for their employees compa red to competitors in order to motivate and retain their experienced staff; providing greater flexibility to its managers to identify critical leadership talent and to promote internal candidates for higher roles; thirdly, to improve teamwork and thus productivity; facilitating job rotation and lateral movements of staff members etc. Rewards are meant to motivate employees at all levels, and companies design complex reward systems that include a variety of rewards. For example, monetary rewards such as bonuses, incentives, compensation benefits, and non-monetary rewards such as recognition, promotions, appreciation, additional responsibilities, special training and skill development programs are a few reward systems that contemporary organizations use. As Lovewell (2013) points out, McDonald’s uses service awards to recognize employees’ commitment and loyalty; it rewards high performance with rewards such as restaurant of the quarter, month, and year. To recognize thei r support staffs’ outstanding contribution, they give the President’s award. To appreciate individual performance, they have