Reward

Rewards at Next

Foot & Hook (2008) defines reward as a payment system either as a monetary or non-monetary award, but it also implies something special is being rewarded. Payment systems try to motivate people to work harder and then reward them for their effort.

Reward is closely linked with McGregor’s Theory X management which assumes that the average individual is lazy, avoids responsibility and lacks ambition. Mullins (2010) In order to control individuals of this type, rewards are used to motivate and incentivise staff, therefore making rewards important in creating an efficient workforce to achieve the company’s objectives.

At Next the basic rate of pay for part time sales assistants is based on age, in line with the National Minimum Wage Act 1998 and The Equal Pay Act 1970, therefore making it fair for all of the employees. Mullins (2010) describes equity theory as the focus on people’s feelings of how fairly they have been treated in comparison with the treatment received by others. Legislation and contracts within Next ensure that all permanent employees have the same treatment and benefits based on a scale of responsibility. Foot & Hook (2008) suggests wages are based on an hourly rate of pay, with possible deductions for lateness or absence. A bonus is paid to employees when the company performs above average, and is based on the hours worked during the week of high performance. Another monetary reward as a Next employee is the 25% discount offered to all employees and a uniform allowance based on contracted hours with 75% off. In my opinion the most important non-monetary reward is the flexible working times, as a student it is important the hours work around my education as to earn money whilst studying. Although non-monetary rewards are intangible, it is important to understand I would not have a job at all if I could not fit it around my studies, and because of the flexible working hours I am able to receive both tangible and intangible rewards.

The pay at Next for all of the employees is based on a pay scale; this is based on many different factors including National pay rates, what the organisation can afford to pay and the level of responsibility. The more responsibility you have within Next, the more you are paid, for example my manager’s pay is higher than mine based on her responsibility and experience within the company. This ensures equity and fairness throughout the organisation.

There are many reasons why a company adopts a reward system, “the choice of payment scheme will depend on the wishes of the workforce as well as the culture of the organisation” Foot & Hook (2008) This payment scheme will ensure that qualified staff are employed, retained and motivated. It ensures the organisation is complying with legislation and supporting the corporate strategy. Therefore if the pay scheme is correct for the organisation, it takes them one step closer to success.

Chief Executives usually receive large bonuses from the companies that they run, however if the company underperforms, is it right for them still receive these bonuses?

For:

• ·       The chief executive holds a lot of responsibility makes important decisions for the daily running of the business.
• ·       CEO’s are usually highly qualified and experienced and must be rewarded as a result.
• ·       The underperformance of the organisation may not be down to the Chief Executive; therefore the bonus should be paid to motivate them to improve the situation of the company.

Against:

·       A bonus should be a reward of good performance; therefore if the organisation underperforms a bonus should not be paid.

·       If a bonus is paid even though a company has underperformed, this may lead the Chief Executive to become lazy as they know they will be rewarded and paid their bonus whether the company performs well or not.

·       May be unfair on other employees and cause conflict if bonuses are not given to other members of staff under these circumstances. 

Foot, M & Hook, C. (2008) Introducing human resource management. 5^th ed. Essex: Pearson education limited.

Mullins, LJ. (2010) Management and organisational behaviour. 9^th ed. Essex: Pearson education limited.

Team Work

Team-working

The business dictionary (2007) defines teamwork as the process of working collaboratively with a group of people, in order to achieve a goal.   

The most successful team I have been in was the tag rugby team at school. It was made up of all girls with the same goal in mind, winning matches. At first the members of the team had to get to know each other and begin to trust each other, just like the forming stage in Tuckman’s model. Fortunately as we were still at school, we had a dedicated leader whom was an ex Wasp’s player, so there were no disagreements as Tuckman suggests at the storming stage. Mullins (2010) describes a team role as a pattern of behaviour, characteristic of the way in which one team members interacts with another whose performance facilitates the progress of the team as a whole. Similar to Belbin’s team roles, we were assigned roles (positions) suited to our skills so the team would work effectively to win matches, then we trained weekly to ensure we were ready for any upcoming matches. As a team we worked hard to win all of our matches, and were put forward to compete at the Thames Valley Youth Games. After a lot of hard work and dedication we were at our most effective and we won the Thames Valley Youth Games, this reflects Tuckman’s performing stage. The success would not have come without effective teamwork and hard work. After we had won the competition, the task had come to an end, and we went our separate ways, similar to the ‘adjourning stage’ in Tuckman’s model. In reflection, our passion and team work were most important in aiding our success, furthermore it was essential that each team member was working towards the same objective to reduce conflict and improve motivation, as this was the case we were able to beat the competition and be at our most effective.  Tuckman’s model reflects the stages we went through as a group to achieve and complete the tasks ahead of us.

Bruce Tuckman developed a team working model in 1965; it identifies five stages of group development and relationships. These are: forming, storming, norming, performing and adjourning. Mullins (2010)

Forming: This is the first stage where the members of the team start getting to know each other and committing to the achievement of the task. (Team building solutions, 2009)  Individual team roles and leadership would also be worked out at this stage.

Storming: Disagreements will be expressed at this point, normally on the nature of the task and leadership patterns, this may lead to conflict. Mullins (2010) 

Norming: Agreement is reached on how the group operates at this point. (Wilderdom, 2004)

Performing: At this stage the purpose of the task and performance are the common task and the team are most effective at this point. Mullins (2010)

Adjourning: This is where the task comes to an end and the members go their separate ways.

Tuckman’s model suggests that groups go through different stages; these stages can aid or hinder their success. If they are able to resolve conflict early and a leader emerges to guide the group through the following stages, it is likely they will meet their goals/objectives. In my opinion Tuckman’s model relates to the norm of any group process.

For assignment one, in the people and organisations module, we were asked to get into groups of three or four to create a PowerPoint presentation and follow this up with a report on the subject of motivation or culture.

The forming stage was where two other members of the class and I decided to form a group, as a group we decided on the subject of motivation as we believed this would work to our strengths. We also divided the assignment into sections and shared them evenly between us.

In my own personal view, the group, I was part of, worked well together, although there were disagreements at times throughout the whole process. I personally believe this conflict was due to differences in our personality as member 2 and I were fighting for the leader position in the group. This links to the storming stage in Tuckman’s model as this is the point where disagreements are expressed and challenges offered. Mullins (2010)

Even though this was the case, we managed to put aside our differences and complete a piece of work which I was very happy with, and gained the best mark I have achieved in the year so far. It is clear that as a group we went into the norming stage as conflict and hostility started to be controlled and we all developed our own norms of behaviour. Mullins (2010) In my opinion, as we were able to pass through the norming stage successfully, it led the team to perform. “This only occurs once the group has settled and is more predictable and when rules of behaviour have been agreed.” Team building solutions (2009) after this had happened we were able to trust each other. “The evidence is that people who trust one another can work together productively and effectively.” (Dyer, 1995, pg.22) and as a result of this we were able to work together to complete the task to a high standard.

Once the task was completed we entered the adjourning stage where we all went our separate ways.

Human beings on the whole work better in groups, they respond to the stimulation of feedback on their achievements, and there are synergies in terms of improved ideas and methods of working to be gained from having people in work teams. (Foot & Hook, 2008, Pg.78)

In conclusion I believe the success of the task was down to us being able to work through the conflict at the beginning of the task successfully which led us to trust each other; reflecting the storming and norming stage of Tuckman’s model. As a result we were able to work together effectively and gain a high grade in the assignment.

Team work is seen as an essential part in many organisations of helping to aid in their success. After reviewing the websites of companies in the ‘The Sunday Times 100 Best Companies’, the Sewell Group and Denplan are two of which think team work is extremely important.

The Sewell Group state one of their behaviours to be: “Be a Team Player - We get there as a team, not individuals. We look out for each other, support each other, challenge each other.” This quote was taken straight from the Sewell group website and is an example that teamwork is one of the major contributory factors within their organisation.

  A second example of a company which sees team work as a major contributory factor within their organisation and very important is Denplan. One of their values is: Team player - Demonstrates a willingness to work cooperatively and collaboratively with others for the overall benefit of Denplan. This is another example of teamwork being an important behaviour within any organisation.

In conclusion teamwork is an essential part of any organisation to give us a sense of belonging. As a result employees feel more motivated and their key skills are improved through learning from others. It is clear that teamwork in any situation brings people together and success comes from people working coherently towards the same goal. Tuckman’s model is a good example of the stages groups go through in any team situation and what must be overcome for them to be successful and achieve. The success I have had personally would not have happened without effective teamwork and the whole team working towards the same objective. In my opinion team work helps you improve on your weaknesses and share your strengths with others as well as support each other to reach the goal.  

Denplan [online] Available from: http://www.denplan.co.uk/about-us/careers/working-at-denplan.aspx  [Accessed 17/4/2011]

Dyer, WG. (1995) Team building. 3^rd ed. USA: Addison-Wesley publishing company.

Foot, M & Hook, C. (2008) Introducing human resource management. 5^th ed. Essex: Pearson education limited.

Mullins, LJ. (2010) Management and organisational behaviour. 9^th ed. Essex: Pearson education limited.

Sewell Group [online] Available from: http://www.sewell-group.co.uk/people-vision.php [Accessed 17/4/2011]

Team Building Solutions (2009) [online] Available from: http://www.teambuildingsolutions.co.uk/Default.aspx?pagename=Tuckmans-Theory-of-Group-Development-Forming-Storming-Norming-Performing[Accessed 01/02/2011]

Wilderdom (2004) [online] Available from: http://wilderdom.com/group/StagesGroupDevelopment.html [Accessed from 01/02/2011]

Power and Conflict

Conflict is actual or perceived opposition between parties. It arises from disharmony between people, ideas or interests. 

Whilst working for Barclays I assumed conflict in inequitable treatment. This unjust treatment was between management and cashiers. In this case most members of staff were on a flexible contract, for 35 hours a week, therefore 7 hours a day, 9:00 – 17:00. The purpose of the flexible contracts was to ensure that there were members of staff covering both sides of the day, employees coming in early and leaving early, and employees coming in late and leaving late but always fulfilling their hours for the day. However management expected staff to come in at 8:30 and work through till 18:00 every day without receiving overtime or time back in lieu. This created conflict between the management and I because I believed the management were taking advantage of the cashiers good will. Unfortunately the management refused to address the conflict in hand and improve the working conditions for the staff. “Perhaps our reluctance to identify, and then directly address, conflict within organisations is based upon the widely held belief that conflict is inevitable, negative and unmanageable.” In my opinion I believe the management saw me as a ‘difficult person’ and as a result were unwilling to resolve the conflict. Unfortunately for me I was educated enough to understand I was being treated badly and unfairly and the only solution was to leave.

There are three views of employer/employee relationships, these are: unitary, pluralistic and radical.

The unitary perspective is very traditional. Mullins (2010) suggests an organisation with this perspective is viewed as integrated, co-operative and harmonious. Everyone is striving to meet a common goal. Conflict is always resolved and sees the cause of conflict as communication failure.

The pluralistic perspective – Organisations are made up of competing sub groups with separate interests and this causes inevitable clashes. Managers understand it is there job to accept conflict and attempt to keep the balance within the organisation.

Radical perspective – “Conflict is an inherent feature of the unequal nature of organisational life and a means of bringing about change” Mullins (2010) this perspective believes conflict cannot be resolved and as a result workers can often be exploited.

Mullins (2010) proposes a recent view of conflict, the interactionist perspective which suggests that conflict is positive and necessary for effective performance. The approach encourages minimum conflict and helps employees with self-criticism, change and innovation.

Power and control is important in order to improve work behaviour and organisational behaviour. Mullins (2010) French and Raven identified five bases of power in 1959. These were: Coercive power, reward power, expert power, legitimate power and referent power. 

Coercive power: This type of power is based on threats and punishment. Minds tool (1996) For example the individual in power threatens an employee with being fired. This type of power can lead to demotivation in the workplace and should be avoided.

Reward power: This power is where an individual is able to give out rewards, raises, promotions and training opportunities. Mind tools (1996) For example a manager is able to compliment an individual on the work they have done and offer a reward for their hard work. However If the reward does not have a perceived value, the power of an individual weakens.

Expert power: An individual with expert power will have knowledge and skills in a particular field. The knowledge and skills they possess give them power as other employees will listen and respect them and look to them for leadership.  For example an individual with expert power will be able to demonstrate their expertise and as a result inspire and help the employees around them.  “Knowledge is power” Sir Francis Bacon

Legitimate power:  Individuals hold an official position or job title, which typically gives tem power. Social hierarchies, cultural norms and organisational structure are the basis for this type of power. Mind Tools (1996) An example of someone with legitimate power is a CEO, as they have the power to make decisions and influence others.

Reference power: An example of an individual with referent power is any celebrity, as they can have huge influences on people including what they purchase. Mind tools (1996) suggest this power is built on the thought of charisma, charm, admiration and appeal. A person, who can charm the others in the office, can make them feel good, so they tend to have a lot of influence on them.

All these types of power influence people in different ways. Some are stronger influences than others, and are based on more than just their basic personality. Those in power need to influence individuals in the right way and motivate them to achieve the goals and objectives of the company and improve work behaviour.

Organisations will see some conflict as inevitable; however the way in which they minimise conflict is extremely important to avoid any harm to the organisation.

Clarification of goals and objectives. Mullins (2010) suggest that the clarification of goals and objectives, role definitions and performance standards will help avoid misunderstandings. This will ensure everyone knows what is expected of them.

Non-monetary rewards. Non-monetary rewards can be offered where financial resources are restricted. These include flexible working hours, job rotation, relaxed working conditions and attendance at courses. These non-monetary rewards keep individuals motivated and help minimise conflict.

Human resource management policies and procedures. Mullins (2010) proposes that careful and detailed attention to HRM policies and procedures may help to reduce areas of conflict within the organisation. Grievance and disciplinary procedures are examples of these policies and procedures.

Group activities. “Attention to the composition of groups and to factors that affect group cohesiveness may reduce dysfunctional conflict.”  (Mullins, 2010, pg. 103)

Leadership and management. Individuals look up to and learn from management and leaders within the organisation. Supportive leadership and management is likely to assist in conflict management. Furthermore showing respect, creating a positive work environment and encouraging personal self-development will all help with minimising conflict. Mullins (2010)

In conclusion it is clear that some conflict is inevitable within any organisation. Conflict can be used to improve upon existing procedures and policies and help an organisation become more effective. Although conflict is inevitable, it must be controlled and minimised as to not harm the goals and objectives of the organisation.

Power and control is imperative in order to improve work behaviour and reach the goals of the organisation. Different types of power as discussed above have different effects on the employees working around them. Both power and control and conflict can have a negative effect upon an organisation and if managed correctly can lead to success.

Mullins, LJ (2010) Management & organisational behaviour. 9^th ed. Essex: Pitman publishing.

Mind Tools (1996) [online] Available from: http://www.mindtools.com/pages/article/newLDR_56.htm [Accessed on 8/4/2011]