HUMAN RESOURCE MANAGEMENT PRACTICE - Fichier PDF

656 ❚ Rewarding peopleOther examplesOther examples are given in Table 43.1 of the ways in which organizations haveresponded to the needs established by their business strategy and the business andreward issues they are facing. In each case the organizations started with broad-brushstatements about their intentions and proceeded from there to prepare action plansand implementation programmes for specific innovations that had been fully justifiedby a cost/benefit analysis.Table 43.1Examples of reward strategies and their derivationOrganization Business strategy Business/reward Reward strategyissuesFood distribution Increase efficiency Poor team work Broad-bandingInnovate Inflexible Team payCost reduction Narrow focus Gain-sharingEngineering Maintain market share Skill-based pay not Link operating planmanufacturing Increase competitive working and performanceedge PRP only for managers managementDevelop more Performance Replace skill-basedsophisticated planning appraisal ineffective payprocessesIntroduce PRP for allInternational bank International growth Transactional rather Replace incrementalEnhance customer than relational approach scalesservice Incremental scales IntroduceMaintain market Pay for jobs not people contribution-relatedleadershippayRevise performancemanagementCare provider, Growth by improving Flexibility Competence-relatedvoluntary sector service delivery Cost of people payDevelop new projects Competence of people Broad-bandingWin more contractsIMPLEMENTING REWARD STRATEGYFormulation is easy, implementation is hard. In the UK more attention is now beinggiven to how organizations can make things happen. It is recognized that a pragmatic