Responsibility Internal Employee Motivation -Myassignmenthelp.Com

Question: Discuss About The Responsibility Internal Employee Motivation? Answer: Introduction In todays competitive business world, corporations are facing fierce competition in industries, and they focus on implementing effective Human Resource Management (HRM) policies to increase their performance. Human Resource Management is referred to organisational policies, activities, and system that are implemented by an organisation to positively influence their employee behaviour, attitude, and satisfaction (Guest, 2011). Strategic Human Resource Management (SHRM) policies focus on strategically planning different human capital management in a corporation to direct them towards achieving organisational goals. This report will focus on analysing the issue of performance and rewards faced by Samsung as provided in the news story that was posted by Android Authority. Corporations use bonus and rewards in order to encourage their employees to increase their productive performance. It also assists in increasing employees job satisfaction which provides a competitive advantage to compa nies by increasing their profitability and performance (Kehoe Wright, 2013). The thesis statement of this report provides that organisations have to maintain equity in their reward program to avoid any dispute between employees and effectively motive them to improve their performance. The structure of this report will include analysis of the issue, evaluation of relevant theories and recommendation for Samsung. The purpose of this report is to link performance and rewards issues face by corporations with HR practices and analyse how SHRM policies can assist companies in addressing these issues. Further, the report will provide various recommendations that can assist Samsung in addressing the issue of performance and rewards. Identification of the Issue In January 2016, Android Authority posted a news story on Samsung which provides that the company distributed bonus to its employees even after performing relatively poorly in the financial year (Carlon, 2016). Samsung is one of the worlds largest conglomerate organisation which operations in a number of industries such as consumer electronics, software, computer hardware, defence machines and others. The corporation operates in 79 countries and it has employed more than 308,745 workers (Samsung, 2016). Generally, the company did not provide large annual bonuses to its employees, and they award such bonuses when each division exceed their internal profit targets. Despite their relatively poor performance in 2015, the firm awarded maximum bonuses to its employees for keeping the division running even after facing multiple challenges. The issue with this case is that the corporation has failed to implement effective bonus and rewards strategies for encouraging their employees. Providin g maximum bonuses to employees did not satisfy their demands; the employees have different needs, and HR department is requiring analysing and fulfilling such requirements to improve employees productivity (Cadwallader, Jarvis, Bitner Ostrom, 2010). Another issue, in this case, is that Samsungs HR department did not distribute bonus based on employees performance. The companys bonus structure did not distribute rewards based on the performance of each employee which might result in increasing conflicts between employees. Firstly, the statement made by the corporation provided that they distributed bonuses to employees for keeping the divisions running which did not encourage its employees. Through, Samsung reported 15 percent increase in its profits, but it is a relatively poor performance by the corporation (Triggs, 2016). The company distributes bonuses to encourage its employees even after the poor financial performance of the corporation, but the structure of bonus distribution was not effective. The distribution of 50 percent bonus to divisions that performed poorly might have discouraged employees of other divisions which may lead to increase in organisational disputes. For example, both mobile and battery division perform ed poorly, but mobile division employees receive 50 percent bonus whereas battery division received 3 percent. As per a statement of Samsungs official, the corporation distributed bonus even after a poor performance to motivate its employees (Carlon, 2016). But, the decision for distributing just 3 percent bonus to battery division can discourage employees and reduce their performance. Analysis of the Situation The Equity theory provides that people compare their situation with others to evaluate its fairness; they compare the ratio of perceived inputs and perceived outcomes with others. The theory provides that people are motivated by the level of fairness (The Economic Times, 2018). After recognising inequalities in input and output ratio between others and their own, they seek to adjust their inputs in order to reach their perceived outputs (Skudiene Auruskeviciene, 2012). John Stacey Adams gave the theory in 1963; it assists companies in maintaining equity between their employees which leads to a more productive and positive relationship between management and employees (Skiba Rosenberg, 2011). The theory provides that in order to motivate employees, corporations should give rewards to employees based on the inputs that they put in their work. An individual satisfaction level is directly linked to the efforts that he/she is putting in his/her work and what exactly are the outputs is h e/she is getting out of it. A persons inputs in the organisational setting mean hard work, motivation, enthusiasm, technical know-how, and skill set. The outputs define salary package, bonus, perks, incentives, and recognition from top-level management in terms of rewards (Parker, Bindl Strauss, 2010). An employee thinks that he/she is treated in a fair manner if the ratio of input and output is similar to his fellow workers. However, if employees think that they are getting fewer rewards and recognition than compare to other co-workers or employees from another division who are putting a similar amount of affords as him, it would lead to imbalance (Harell Daim, 2010). The dissatisfaction caused due to imbalance of rewards can demotivate employees that result in reducing his productivity and performance and in some cases attrition or absenteeism. The equity theory also based on comparison with peer group other than input-to-output ratio. Organisations use this theory to understand why employees are happy one day and another they are giving a considerably low performance (Tang, 2014). In the case of Samsung, the corporation distributed bonuses without considering the theory of equity. The corporation distributed bonus in a poor performance to motivate its employees but distributing 50 percent, and 3 percent to mobile and battery division respectively can increase disputes between employees. Based on equity theory, the employees in battery division will think that they put similar effort as mobile division but receive lower bonuses which will result in reducing their productivity and performance. Samsungs HR department has failed to implement an effective performance management program in the organisation to ensure that employee activities and outputs are corresponding with its corporate objectives. The corporation is required to implement an effective performance appraisal program that helps the corporation in assessing whether it is progressing towards achieving its operations goals and overall performance standards (Leroy, Palanski Simons, 2012). The corporations also required providing performance feedback to their employees regarding their performance effectiveness. Employees behaviour has a substantial impact on the achievement of short and long-term objectives in an organisation and it also directly influences their performance. Organisations use motivation theories for increasing the performance of their employees which encourage them to increase their productive performance. The corporations are requiring assessing their employees needs and requirements in order to provide intrinsic or extrinsic rewards (Cherian Jacob, 2013). Organisations can implement different motivation theories to increase their employees performance such as Maslow Hierarchy of Needs, Herzberg Motivator-Hygiene theory, Expectancy theory, Reinforcement theory and others. Recommendations for Samsung Following are various recommendations for Samsung that can be used by the corporation as practical solutions for effectively managing their staff. The company should follow Equity theory while distributing bonuses. The firm should distribute bonus based on the performance of employees to ensure that employees increase their productivity to receive higher bonuses. The corporation should introduce Pay-policy line which describes the relationship between an employees salary and its job evaluation points. A pay grade should be introduced by the company which provides that jobs with similar content or worth grouped together for reward It should also define a range which provides the distance between maximum and minimum amounts in an employees pay grade (Geren, 2011). The enterprise should increase employee participation in compensation decision-making which assists recommending and designing of a pay program. Effective communication is necessary for the corporation; the manager must explain the pay structure to employees and resolve their quarries. HR managers should also clearly identify and communicate what good performance is like which assists employees in understanding the level of expected and actual performance (Zhang Bartol, 2010). Acknowledgement of employees good performance is also essential since it assists them in recognising that they are performing better. HR managers should also demonstrate clearly that the senior executives are continuously addressing the performance of employees. Samsung can introduce the concept of Skill-based pay in their manufacturing process which will motive employees since bonus will be distributed based on skills of employees which result in maintaining equity in the firm. Samsung is a multinational corporation and its market pay structure can be different across countries both in terms of the relative worth of jobs and their level. Global events, political influences, and geographic factors also influence pay structure in the organisation which creates a dilemma in the firm. Therefore, performance-based reward program is suitable for the company since it reduces disputes between employees. The company can use Maslow Hierarchy of Needs theory to assess its employees' requirements and needs. The rewards program of the enterprise can fulfil such needs which result in increasing employees productive performance (Taormina Gao, 2013). HR executives should maintain a positive relationship with employees to understand their issues and requirements which result in increasing the effectiveness of rewards programs. The performance-related pay programs of the enterprise can change based on different aspects such as frequency of pay-out, payment method, and the process of measuring performance. These factors assist HR department in increasing the effectiveness of reward program which improves employees productive performance. Conclusion In conclusion, Samsung distributed bonuses to its employees even after the relatively poor performance of the enterprise in order to motivate and improve their productivity. The company distributed high bonuses to its mobile division, whereas, it distributed only 3 percent to its battery division. Both of the division performance relatively poor but different in percent of bonuses can lead to increase in dispute between organisations. The HR department of the company failed to implement principles of equity theory which can result in increasing disputes between employees and reduce their performance. The company should implement policies for rewarding its employees based on their performance to ensure that they increase their productivity to achieve higher incentives. Organisation should increase employee engagement in compensation and rewards strategies to increase their effectiveness. HR department should clearly communicate with employees to ensure that they clearly understand the policies which result in increasing their performance. The firm can implement theories such as Maslow Hierarchy of Needs which assist them in assessing their employees needs and implement a program which improves their performance. 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