Reward Management in Ikea Literature review Example | Topics and Well Written Essays - 1000 words

Reward Management in Ikea - Literature review ExampleMost organizations go for return management to motivate employees and enhance their productivity thereby contributing to improvement of overall organisational performance. Reward management is further aimed at ensuring internal, as well as external equity. More importantly, it strengthens mental contract and also for organization to comply with legislation that require organizations to have reward management brass (Phil and Cole, 2011, p. 101). Further much, reward management provides an organization with a system that enables it to efficiently administer rewards among employees. There are fundamentally two types of rewards extrinsic rewards and intrinsic rewards. Extrinsic rewards satisfy basic man needs such as security and survival and include raise in pay, fracture working conditions, and bonuses among others (Wright, 2004, p. 17). Intrinsic rewards aim at satisfying higher human needs such as development and esteem. The vision of IKEA is creation of better everyday life for many people including its employees. Its human vision ism is that employees can be more productive and committed when the company is victorious care of their needs. Like many Swedish companies, IKEA adopted a paternalistic stance towards the needs of employees and employees themselves that seeks to empower employees (IBS cracker bonbon for Management Research, 2012). The application of its human imagery philosophy is more or less standardized and reward policies are applied to all employees uniformly. Its human resource policies are aimed at making relationships between employees open and strong, and employees are encouraged to excel by taking care and supporting each other. In a nutshell, IKEAs human resource policies seek to batten uniform and high quality standards in order to support its future developmental and business challenges (IBS Center for Management Research 2012). IKEAs reward management system is designed to reward employees more or less equally and is informed by the need to make relationships between employees open and strong. Equity surmise is relevant to IKEAs reward management system. Armstrong and Stephens (2005, p. 92) note that this conjecture suggests that employees will be motivated to fetter in actions that they perceive that the conditions of the situation are just and fair and which will ultimately benefit them. In addition, this conjecture holds that a person will be motivated towards organizational goals if they feel that the amount of stew being put forth commensurate the outcomes or the benefits being received (Byron and Khazanchi, 2010, p. 3). Considering that IKEAs human resource policies are aimed at creating open and strong relationships among employees and empowering them, equity theory are more relevant to their reward management system. This is because it requires that this system regulates equity and help employees to maximize their outcomes as a whole. Lo oking into IKEAs human resource policies also shows that the organization is keen to avoid distress among employees which might hamper its efforts towards attaining its goals. Equity theory will therefore be relevant to creating equal relationships among parties in the workplace thus avoiding distress. Equity theory recognizes commonly contributed inputs in organizations to include labor, personal investment, time, dedication, and skill (White and Druker, 2000, p. 81). Application of this