The essay aims at providing an insight into the fact as to how remuneration has been one of the factors for motivation within society. A distinct system for compensation ensures in employee motivation that further results in the increase of the productivity. The essay focuses on relationship between motivation and the level of the pay. Bolman and Deal (2017) put across in the study that most business acts like an institution of profit maximization such that they place the efforts for improving performance of the employees through motivation. This finally enables the organization in increasing the level of productivity. Thus, work motivation remains interrelated with the job satisfaction.
Money is often considered as the means of rewarding the basic needs of the individuals. These needs depend on the purchasing power determined by the level of pay or the salary of the individuals. The various motivation theory including the Maslow’s Hierarchy of Needs, Achievement Theory, McGregor’s theory of X and Y, Two Factor Theory by Hertzberg and the Taylor’s motivational theory money acts as one of the key sources in persuading individual behavior towards the work productivity and the organization. Therefore, it is vital for corporate executives or the managers in remaining aware with the social and the economic background of the employees and offer good remuneration according to the skills and talent thereby motivating to work. The level of pay refers to the basic salary of the employees.
In the present scenario, motivation and management of the human resource have become a complex task. In the highly competitive and the changing environment remuneration acts as one of the key tools for managers for improving productivity of employees, attracting the competent personnel, retaining the present employees and at the same time reduce rates of employee turnover and the rate of the absentees, for managing sequences of the job, strengthening the relationship with the union management and improvement of the public image of the organization.
The essay tries to portray the process of remuneration with the fast food industry sector like McDonalds, one of the most renowned fast food outlets across the world. In recent times, structure of the fast food industry became complicated and the success is primarily dependent upon the talented and the qualified employees who remain capable of understanding the requirements and the ever changing needs of customers. Environmental changes and competitive pressure have resulted in the importance of the motivational practices for the managers for boosting the employee performance. The essay primarily focuses on how the managers of the McDonalds will use the level of the pay for motivating employees thereby creating competitive advantage within industry.
McDonalds represents the most renonwned chain of fast food restaurants that has operation in over 120 countries serving close to 47 million customers in a particular day. This fast food chain doles out some common and favorite food stuffs across the world such as Big Mac, French Fries, Chicken Nuggets, Egg McMuffin and Quarter Pounder. The firm’s success depends on the HRM practices and the efforts made by the employees and the managers. The HR policies of the company are defined in clear manner for benefitting the stakeholders (Bratton and Gold 2017). The key aim HRM department lies in offering the best services to customers through ensuring the fact that company comprises of motivated, committed and skilled employees. Besides, the remuneration practices followed by company are not only good but designed as per the theories of motivation.
Remuneration does not represent a newer concept for business organizations. In corporate world, all members ranging from the owners to the employees belonging to lower level works for the need of money (Bryant and Allen 2013). Irrespective of the fact of whether it is an MNC or small shop everyone works for higher level of pay as well as financial needs for the fulfillment of the basic needs. In the highly competitive corporate world managers and executives uses motivational theory and the management practice for enhancing productivity and skills of employees thereby earning higher level of money. Managers therefore make use of the practice of fair remuneration that leads to satisfaction amongst the employees in fulfilling the needs.
As per the assumptions put forward by the theories of motivation, the level of pay as well as the incentive acts as the direct tool in motivating the employees (Cheng 2014). In McDonalds, managers have taken complete overview of the concept and ensured motivating the employees by paying good performance incentive and remuneration. In present times, companies follow the level of the pay for determining performance. It is also the experience and qualification that allows the employee in earning a better pay package.
For instance, a highly qualified marketing manager would not receive higher level of pay if he is unable in carrying out an effective market research thereby resulting in lower pay. While a particular sales executive with average qualification and serving more customers through portraying the abilities and maintaining good relations would not get promoted but also receive a higher level of pay.
Therefore, it is a clear fact that the level of pay matters for employees irrespective of the positions they hold. The level of pay or remuneration is required by employees in fulfilling the basic needs. A firm also provides non-monetary rewards and compensation for the development of the job satisfaction and control rate of the employee turnover. The essay would focus on the McDonald that has efficient human resource (HR) and the compensation policies for paying the employees and thereby motivating them in putting best efforts for achieving the objectives and goals of the company.
The essay focuses on the importance and the need of the motivation tools for managers and how the level of the pay helps managers in motivating the employees in McDonalds. The key objective remains in identification of relationship between the level of pay and motivation
According to Cohen (2015), motivation represents a procedure for pushing the employees towards work for satisfying a need. Most people works for reaching certain specified goals. Hence, motivation acts as the goal-directed drive causing an individual to act. Dalkir (2013) stated that want, desire and need holds similarity with motivation. The aspects portrayed the importance of understanding motivation within organizations as the reaction towards compensation. Thus, it can be said that, motivation and compensation remains directly proportional to one other. Employee performance, rate of the absenteeism and the turnover are influenced by the level of pay or remuneration that the employee receives.
Managers use varied tools for motivation for motivating the employees of which remuneration acts as one of the key tools. Remuneration is defined as a tool for monetary motivation that has the power to influence the employee behavior towards work. Davis et al. (2016) put across that each employee should be compensated for the role, responsibilities and the efforts made by him towards the company. Before deciding on the amount and the form of remuneration a firm must take into account various considerations which include a particular business condition, economic climate, qualification of workers, cost of living and productivity. Various authors have described regarding the relationship that exists between motivation and the level of the pay. However, for supporting the relationship, Farndale and Kelliher (2013) put across that the aspect of remuneration is is related to the Herzberg’s hygiene factors. The level of pay includes various factors like commission, bonuses and the fringe benefits including holiday entitlement and pensions.
Hislop, Bosua and Helms (2018) however represented that motivation of employees is not only determined by the level of the pay of the organization but also understanding of individuals. Thus, remuneration or the level of pay of the employee depends upon various factors like psychological needs, basic needs, individual performance, productivity, social needs and profitability. In support of this, Kearney (2018) put across that successful motivation depends not only on the proper implementation of the remuneration policy but involves other motivators like HR training and development organization of work, performance appraisal and the tools for performance management.
According to HR experts, construction of an effective system of rewards is vital for motivating the employees. However, there exists the need of some enthusiastic and good managers who are capable of driving the people towards better performance. Thus, for creation of an effective process of motivation process, it is vital for the organizations to have an effective remuneration policy for the employees. According to Kehoe and Wright (2013) there exists two different kinds of rewards which are intrinsic as well as extrinsic. Intrinsic rewards mostly relate to the rewards that come naturally with the job. This particular reward is received by the individuals when they remain successful in achieving own objectives while the extrinsic rewards represent rewards outside the job which includes security, working condition, promotion, service contact and work environment.
In recent times, for motivating the employees, both the intrinsic and extrinsic rewards should hold a portion in the remuneration policy. It is to be noted that the individuals effectively works towards the extent of job if they remain motivated intrinsically. In comparison to this, it can be said that if the employees are motivated extrinsically they work effectively in the manner that helps them in attaining the external rewards from job. Therefore, it can be said that if remuneration remains intrinsic then the desire for the motivation also remains intrinsic while it remains extrinsic in case of extrinsic remuneration.
Stredwick (2013) stated that in the new era of the government, to increase productivity and performance of employees, managers’ needs to adopt good policies for remuneration. This will aid business organizations in offering quality products and services and to its customers. It is also the reason why most managers use the policy of remuneration for attracting, retaining, motivating and satisfying employees. It has been found that remuneration based on the performance motivates the employees in working harder.
It is also found by the researchers that employees remain motivated by the varied monetary remuneration. Thus, an efficient pay structure helps in reducing the not only the turnover intentions and absenteeism but enhances the organizational attractiveness towards the various job seekers thereby contributing in enhancing the productivity of the employees. Muogbo (2013) put across that the managers in the different organizations consider the level of pay as the key factor helping in enhancing the productivity of employees.
Remuneration is thus a crucial tool focusing on performance motivation and behaviour of employees. Dobre (2013) asserted that an organization must have appropriate rewards for motivating and satisfying the employees. In contrast to this, Gupta and Shaw (2014) mentioned that other factors like the job, morale, participation, discipline and appropriate feedback are important as they have a direct impact on remuneration.
On a concluding note it can be said that, remuneration represents a tool that acts as the impartial measurement of employees since they would not be motivated to work if they receive more facility compared to the level of pay. The increment in salary enables the employees in maintaining their status and at the same time ensures financial security. Remuneration also enables in boosting the employees’ self-confidence thereby motivating them towards performance. Lastly, it can be said that remuneration is also responsible for enhancing employee productivity through motivation.
Bolman, L.G. and Deal, T.E., 2017. Reframing organizations: Artistry, choice, and leadership. John Wiley & Sons.
Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.
Bryant, P.C. and Allen, D.G., 2013. Compensation, benefits and employee turnover: HR strategies for retaining top talent. Compensation & Benefits Review, 45(3), pp.171-175.
Cheng, S.Y., 2014. The mediating role of organizational justice on the relationship between administrative performance appraisal practices and organizational commitment. The International Journal of Human Resource Management, 25(8), pp.1131-1148.
Cohen, D.J., 2015. HR past, present and future: A call for consistent practices and a focus on competencies. Human Resource Management Review, 25(2), pp.205-215.
Dalkir, K., 2013. Knowledge management in theory and practice. Routledge.
Davis, T., Cutt, M., Flynn, N. and Mowl, P., 2016. Talent assessment: A new strategy for talent management. Routledge.
Dobre, O.I., 2013. Employee motivation and organizational performance. Review of Applied Socio-Economic Research, 5(1).
Farndale, E. and Kelliher, C., 2013. Implementing performance appraisal: Exploring the employee experience. Human Resource Management, 52(6), pp.879-897.
Gupta, N. and Shaw, J.D., 2014. Employee compensation: The neglected area of HRM research. Human Resource Management Review, 24(1), pp.1-4.
Hislop, D., Bosua, R. and Helms, R., 2018. Knowledge management in organizations: A critical introduction. Oxford University Press.
Kearney, R., 2018. Public sector performance: management, motivation, and measurement. Routledge.
Kehoe, R.R. and Wright, P.M., 2013. The impact of high-performance human resource practices on employees’ attitudes and behaviors. Journal of management, 39(2), pp.366-391.
Muogbo, U.S., 2013. The impact of employee motivation on organisational performance (a study of some selected firms in anambra state nigeria). The international journal of engineering and science, 2(7), pp.70-80.
Stredwick, J., 2013. An introduction to human resource management. Routledge.
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