Management development review Essay
It is the intention of this paragraph to critically analyse how Long term non-monetary remuneration strategies are used to reward managers and employees in the achievement of pre determined performance targets. McDonalds should apply remuneration strategy linked to performance and it must be for both managerial level and for the lower level.
Long term non-monetary benefits and rewards are career advancement , status , Increased responsibility and self esteem , more complex and responsible activities , promotional opportunities , training and development and mentoring opportunities, relocation and job enrichment and enlargement opportunities, the provision of child care(Day care centres – ) facilities on the job. These benefits and rewards really work well for a company. Chances of Career advancement work good for those employees who want to go ahead in life and they take use of this opportunity by showing their calibre to company.
Promotional opportunities also motivate employees to perform their best. The provision for child care facilities on the job give employees more carefree environment to work which turn out into good results, these all benefits and rewards in long time term motivates employees and make them loyal toward company. Bolger (2004) argues that companies are not able to pay
Need essay sample on "Management development review"? We will write a custom essay sample specifically for you for only $ 13.90/page
In quest of knowledge and some experience sometime employees work hard for it. It is the intention of this essay to critically analyse whether manager’s and employees have a same salary packaging remuneration strategy or it must be different. If it should be same then why and if not, then why? McDonald’s should adopt different salary packaging strategy for managers and employees. Di cieri (2005) says that pay the person for his skills, knowledge and competency. It is of no use to give the same salary package to the employees and to the managers, the roles and job structure of both are different and they can’t be put at same end.
In any organisation the role of a employee is to just simply follow the strategies made by manager’s but manager’s first have to research for that and then after taking calculation of every risk and benefit they decide to implement it or not. It is clear from above that there is a vast difference between the working of manager and employee and it is best to pay according to work. Di cieri (2005) says that manager’s have a disproportionate ability to influence organisation performance. They help to set the tone or culture of the organisation.
Advantages of this strategy are first it maintain a gap between the working ability of both managers and employees. Second it give support to the thinking, high job status means high salary, thirdly it motivates manager’s because they get reward for their extra efforts, fourthly higher salary to managers give recognition of their works because profits and loses of a company depends upon their strategies and they are directly responsible for that. Disadvantages are, first sometime time it widen the gap of lower salary people and higher income group which gives birth to division of working team in two parts.
Secondly it brings hesitation in mind of employees in talking to managers which harm the business because employees are the one who work on the strategies made by managers. Third sometime it brings the feeling of inferiority complex in mind of employees. Feliniak (2005) argues that recognition of higher job status and big responsibilities is necessary and it must be rewarded according to the job status of an individual. In contrast Hunter (2002) argues that pay adjustments vary between managers and employees on the basis of subjective judgements of performance. Employees may feel they are treated unfairly.
At McDonalds’ the company has different salary packages for its employees and managers. The benefits which they give to their managers are International Fitness Club Network, company car, house allowance, telephone facility at home, international travel plans for whole family. These all benefits don’t appear in the salary package of employees which clearly states company policy toward salary package. Conclusion – Finally this essay concludes that McDonalds implements diverse remuneration strategies for its lower level employees and senior level managers, thereby creating a link between pay and performance.
It further recognises that by offering high wages and attractive work conditions with both short and long term monetary and non monetary incentives it will be able to attract and retain highly talented and motivated candidates. Performance based pay method is good and effective but before implementing it, is necessary that management should check some basics like what they have to give to their employees and what they have to give their managers because it will be very tough for any company to equally distribute incentives and rewards to their managerial and lower level employees.
Salery and perks must be fixed according to his skills, knowledge and competency. Company has to keep in mind the advantages and disadvantages of every short and long term monetary and non monetary incentives and rewards so that they don’t face any problem in place of benefit in near future. For motivating employees these remuneration strategies are highly effective.