Performance management is an integral corporate tool that ensures managers attract and retain talents through total rewards. This strategy involves the provision of monetary or developmental rewards in a motivating work environment to promote talent management. Managers must understand the total reward framework to ensure that justice is observed during the appreciation process to promote equity (Cote, 2017). The application of the total reward strategic framework, my experience in performance management, and essential lessons from the venture are discussed.
Total Reward Strategic Framework
Different leadership competencies determine the type of organizational culture adopted. For example, a corrupt leader who takes credit for other people’s work and compensates non-deserving employees either because of kickbacks or other personal gains interferes with fairness which may taint the organizational justice system (Anlesinya and Amponsah-Tawiah, 2020). Total reward systems aim to promote employee motivation, and if the process is weakened, primary company objectives are endangered. Therefore, managers should apply the strategic framework to ensure that the process is non-discriminatory. The total reward strategic framework ensures managers base their compensation strategy on competitive edge, differentiation, sustainability, and pay equity.
Effective leadership aligns with the organizational goals to ensure better work systems are maintained and objectives are met. An analytical thinker will determine the company’s competitive edge in total reward systems before incorporating this motivational strategy (Dvorsky et al., 2020). I intend to apply this skill to choose when to provide total rewards as a future Human Resource Manager. Proper timing is essential in employee motivation because it ensures that organizations allocate enough money to undertake the project. Better financial capacity enables employees and the organization because when employees are motivated, they become productive, promoting better business performance (Hoole and Hotz, 2016). For instance, businesses have been affected during this COVID-19 season, resulting in unprecedented market trends. This market shift indicates that before investing in any business venture, it is essential to accurately project the outcome to ensure that the company is not negatively affected in case of any changes.
The projection can be made by considering a company’s competitive aspect, including affordability and brand equity. As a leader managing a profit business during this season, I would ask myself, “How much money can the business afford to lose?” or “What will be the outcome of this investment?” These questions are steered by the concept of competitiveness and the need to align the business for success (Gulyani and Sharma, 2018). For example, the money the company can afford to lose and not be bankrupt may be invested in employees’ total reward. The impact or outcome of this investment will be improved employee motivation, creativity, and innovation, which promotes productivity and profitability.
Differentiation is another reward alignment system that ensures organizations honor only distinguished performers depending on their creativity and performance rating. This strategy may sound like an obvious concept, but it is a sophisticated mechanism that ensures the top talents are absorbed in the company (Mone and London, 2018, p.51). I would apply the concept of differentiation, such as force calibration, to determine who is fit for the reward. This strategy would ensure that selecting the best is done through an evidence-based system that detects quality service. In addition, this system ensures that managers are not biased when rewarding employees, promoting better work ethics.
Another reward tool is sustainability and pays equity, an essential concept in employee appreciation processes. The idea of sustainability enables a manager to assess the organization’s capacity to maintain a specific investment. For instance, the total reward can be done each year if enough funds are allocated for the exercise. Pay equity must also be considered to ensure justice is served (Bryson, 2017). These two concepts are intertwined with competitiveness, which analyzes the organization’s capacity to fund and maintain its reward processes (Bento et al., 2019). I will apply these two concepts in my leadership to ensure that the reward system in my organization is sustained and that all the deserving employees are rewarded with diligence and fairness.
My Rationale on the Reward Framework
As a business expert, the reward framework may work outside my jurisdiction in daily interactions with stakeholders. For instance, diversity competence, transparency, and commitment to objectives are principles that can be learned through the reward framework (Um, 2017). Diversity competence is a relational skill whereby I can socialize with members beyond their institutional, cultural, religious, and political boundaries. This skill is vital in identifying their competencies to ensure better talent management processes are applied.
The traditional compensation methods, such as the base pay, relied on specific set pay levels that would sometimes not match the employee’s input. For instance, loyalty and creativity would be compensated by salary or wage increments (Mone and London, 2018). Currently, specific methods can assess an individual’s commitment and performance in the contemporary world, such as the organizational commitment questionnaire that provides information on valuable individual contributions. This system can help support fair compensation procedures that align with the organization’s capacity and consider the employees’ welfare.
Important Lessons
Digital advancement has paved the way for proper talent management because they ensure that organizations tap into the best talents, appreciate unique skills, and maintain the best players in the organization. In addition, this system ensures that equity is maintained, which is an essential factor in promoting healthy competition within the organization (Cote, 2017). For instance, if both women and men are compensated equally on specific merits, each can give their best, knowing their commitment will be fairly rewarded.
The total reward frameworks are an integral leadership tool that should be adopted in every organization. This framework promotes justice, better organizational culture, and enhances productivity. For instance, competitiveness ensures an organization stays active in achieving its competitive edge. The sustainability rule requires leaders to analyze their organization’s ability and capacity to accommodate specific ventures before actualizing them to ensure that the processes work for the benefit of their company (Zhang et al., 2019). This statement is a life skill because it reminds us that we should trade within our limits to avoid losing. It is like investing in a business without proper research on its logistics. The venture may turn out to be a bad investment costing the company its entire fortune.
Lastly, I have discovered that the concept of differentiation can be interpreted in many ways. In business, it is considered as branding a company through specific elements such as unique products or subsidized prices to help distinguish the company in the marketplace. Differentiation can be applied in personal leadership by adopting excellent practices such as social responsibility and quick decision-making to ensure that I exceed the standards set for the ordinary competencies set for resource managers. Change is made when people push beyond the ordinary limits because they uncover obscure things.
Reference List
Anlesinya, A. and Amponsah-Tawiah, K., 2020. Towards a responsible talent management model. European Journal of Training and Development.
Bento, R.F., Mertins, L. and White, L.F., 2019. Do sustainability measures matter in managerial appraisal and rewards? In Beyond Perceptions, Crafting Meaning. Emerald Publishing Limited.
Bryson, A., 2017. Pay equity after the Equality Act 2010: does sexual orientation still matter?Work, employment and society, 31(3), pp.483-500.
Cote, R., 2017. The vision of effective leadership.International Journal of Business Administration, 8(6), pp.1-10.
Dvorsky, J. et al., 2020. The influence of some factors of competitiveness on business risks.Journal of Business Economics and Management, 21(5), 1451-1465.
Hoole, C. and Hotz, G., 2016. The impact of a total reward system of work engagement.SA Journal of Industrial Psychology, 42(1), pp.1-14.
Gulyani, G. and Sharma, T., 2018. Total rewards components and work happiness in new ventures: The mediating role of work engagement. In Evidence-based HRM: a Global Forum for Empirical Scholarship. Emerald Publishing Limited.
Mone, E.M. and London, M., 2018. Employee engagement through effective performance management: A practical guide for managers. (2nd ed.). Routledge.
Um, J., 2017. The impact of supply chain agility on business performance in a high-level customization environment. Operations management research, 10(1-2), pp.10-19.
Zhang, J. et al., 2016. The different relations of extrinsic, introjected, identified regulation and intrinsic motivation on employees’ performance: Empirical studies following self-determination theory.Management Decision.