What Is Your Understanding of the Concept of Total Reward Management? Discuss Its Merits and Demerits as a Useful Tool for Managing Rewards to Achieve Organizational Goals and Objectives.
The paper below will start by explaining the notion the discussion will look in detail at the four elements that are deliberately intergrated in creating the total reward concept which are namely compensation, benefits, learning and development and work environment. The benefits of using the Total Rewards concept that will be discussed are that there will be improvement in the employment relationship, is there is more flexibility to meet individual employee needs, there will be more expense containment and also it assists in creating a good company reputation. The discussion will also look at the demerits of using the total rewards such as it only works in flexible and contemporary organisations, it requires buy in from all managerial staff and it is not easy to customize it to suit a specific organisation will be explained in detail.
THE TOTAL REWARD CONCEPT
Total reward concept is an approach to reward management which combines financial and non financial rewards into one concept. There is no reliance placed on one mechanism operating separately but on the two that is the financial and non financial operating as one. Armstrong (2010:275) highlights that Total Rewards encompasses not only traditional, quantifiable elements like salary, variable pay and benefits, but also more intangible non-cash elements such as scope to achieve, learning and development, the intrinsic motivation provided by the work itself and the quality of working life provided by the organization.
The financial and non financial rewards are combined to create the Total Reward Concept. Williams, (2001) explains that total rewards strategy is the art of combining the four elements into tailored packages designed to achieve optimal motivation. The financial rewards which are tangible in nature are namely compensation and benefits whilst the non financial rewards which are intangible are namely learning and development and work environment all of which will be discussed below.
THE TOTAL REWARD CONCEPT
Total reward concept is an approach to reward management which combines financial and non financial rewards into one concept. There is no reliance placed on one mechanism operating separately but on the two that is the financial and non financial operating as one. Armstrong (2010:275) highlights that Total Rewards encompasses not only traditional, quantifiable elements like salary, variable pay and benefits, but also more intangible non-cash elements such as scope to achieve, learning and development, the intrinsic motivation provided by the work itself and the quality of working life provided by the organization.
The financial and non financial rewards are combined to create the Total Reward Concept. Williams, (2001) explains that total rewards strategy is the art of combining the four elements into tailored packages designed to achieve optimal motivation. The financial rewards which are tangible in nature are namely compensation and benefits whilst the non financial rewards which are intangible are namely learning and development and work environment all of which will be discussed below.