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Human Resource Management: Role Of Assessment Answer



The objective of the proposal is to highlight on how different employees get motivated by applying different kinds of rewards system and performance measure in the organization. The selected organization operates its business in the food and beverage industry. The Liquor land is the selected organization in the study. Irrespective of the nature as well as size of the business there are certain organizational goals and activities, which majority of the organizations tries to achieve. However, out of all the resources, the most important resources of the organization are the human resource. If the employees in the organizations gets motivated in a proper manner it will automatically increase boost the performance of the management.

The research paper will summarize how the employee of the organizations gets motivated while getting different kinds of award system in the organization.

Background of the company

Liquor land is one of the common beverage companies, which operates its business in different major cities of New Zealand. Liquor land was founded in the year 1981 as a wholesale liquor chain in New Zealand, which operates its business in 18 stores of New Zealand in its first year of business. On the other hand, in the year 2000, liquor land changed its entire business models and managed stores to a total franchise chain called liquor land limited. As compared with nationwide liquor, land operates almost 80 stores. Liquor land has grown to be a household name in the country and is a market leader in New Zealand which sales close to over $300 million per year.

Rationale of the Study

The primary issue in Liquor land related to their reward system is lack of transparency. Most of the times, rewards are awarded to the employees who do not deserve it. Employees who are working hard for the shop get nothing in return. Besides, the management of the shop does not exhibit reasons of providing rewards to the employees. As a result, staffs of liquor land are getting frustrated that is causing high turnover rate. This research will focus to find out proper solutions that will eliminate any biasness that exists in the shop’s reward system so that only deserving employees can receive rewards for their efforts.

Research hypothesis

H1= Rewarding people and performance of the employees helps the organization to achieve the organizational goals and objectives.

H2= Rewarding people and performance of the employees do not help the organization to achieve the organizational goals and objectives.

Literature Review

Human Resource Management is the function, which is performed in different organizations, which facilitates the most effective use of the people in the organization towards achieving both the organizational as well as individual goals (Dessler, 2013). In order to evaluate a proper human resource management, there are certain applications of different kinds of models and theories. The following part of the study will analyze all the important factors, which will focus on the application of different models (Dowling, Festing and Engle, 2013). All the models will highlight the different kinds of rewards system, which will analyze the performance of the employees in a proper manner.

Extrinsic and intrinsic reward systems are the two most popular modes of rewards that are vastly used in most of the business organizations. Extrinsic rewards are usually financial rewards such as pay hike, bonuses and benefits (Gupta and Shaw, 2014). These are the common factors of basic HRM.

Extrinsic reward system

This reward system is directly related to job performance of an employee. However, it is also important that an employee receive rewards every time they accomplish a task. Some extrinsic reward systems are,

Bonus or commission: An individual employee or a group of employees receives bonus payments if their organization earns profit due to their efforts and hard work. In the liquor shop, the management can implement this strategy (Gupta and Shaw, 2014). If their staff can increase the amount of profit by providing superior customer services, then the management of liquor land can share some of that profit with their employees.

Promotion: It is obvious that liquor land will have some employees who are average performing while some will be extremely hard working (Hayton, 2011). Those hard working employees will make a huge difference on the shop’s status. Therefore, the management of liquor shop must encourage those employees by promoting them to higher ranks (Ivancevich and Konopaske, 2013).

Salary raise: Employees can achieve Salary raise after their hard work efforts. This type of rewards motivates the workers in developing their skills and competence. It also offers long-term fulfillment to employees (Ma and Ye, 2015). However, managers must remember that they will have to be fair and identical with the workers who are serving in his comoany.

Intrinsic reward system

Recognition: According to Martin (2012), everyone wants to be praised in the organization they work. When an employee is recognized for their job by his co-workers or senior management, then it creates effect that is more positive than financial rewards.

Extra benefits: Every employee likes to have extra benefits from where they work. Like restaurant, staffs would love it if the management allows them to have a free meal in the restaurant once a week.

Transportation: In hospitality industry, especially in restaurants or liquor shops most of the times employees have to work even after their shift time. Therefore, for female employees or for all employees transportation system can be arranged for security purpose. It will show that the company is thinking about its employees, which will make the employees more motivated than ever.

Empowerment: Employee empowerment is another thing that is counted as reward for the employees. This happens when managers allocate delegate tasks to their employees. This adds importance to an employee where his decisions and actions are reflected.

Intrinsic rewards make the employees feel comfortable in an organization where extrinsic rewards mostly focus on the performance and activities of the employees. However, it is not an easy task to develop a balance between intrinsic and extrinsic rewards. Based on individual or team, rewards vary such as, individuals can achieve base pay, incentives and extra benefits. Teams can get team bonus and profit sharing (Mello, 2015).

Balancing Reward Strategy

The idea of the balancing reward strategy will execute both financial as well as non-financial forms of the company. The financial forms of the company will be executed in the following way. Benefits, performances pay and grade and pay structure are the three important points, which needs to be followed in a proper manner. The non-financial part of the reward system will conclude about the anatomy, recognition, meaningful work and work environment. A proper balance needs to make between the financial reward system and between the non-financial reward systems (Mondy and Mondy, 2014).  There are certain characteristics in the normal financial system. Basic pay, contingent pay, variable pay, share ownership and benefits are some of the common features, which are included in the financial reward system. On the other hand, non-financial rewards system includes recognition, responsibility and meaningful work, anatomy and career opportunities are some of the important features, which need to analyze (Mondy and Mondy, 2012). A proper balance need to make between the financial reward system and the non-financial rewards system in order to develop a proper reward system.

Factors Influencing Job Values

There are certain factors, which needs to be analyzing for influencing job values. Intrinsic value, internal organizational relatives, external job market relatives, inflation and market movement and business or financial circumstances are some of the key factors, which influence the job values (Noe, 2014). Human capital is very much essential to any organization towards the development process of the long-term performance success. The performance of the organization is always better when they treat the employees in a better manner. Implementations of the human resource management in the organization are the key to different kinds of organizational success and failure (Prescott and Rothwell, 2012).

Development of a strategic Human resource management

Strategies are developed in different organizations, which will incorporate a smooth flow of work. There are three factors, which will conclude the effectiveness of the human resource management (Shen, 2015). Attracting a quality-working environment, developing a quality workforce and maintaining a quality workforce are the three important factors, which needs to analyze in the required manner (Stone and Deadrick, 2015).

However, there are certain steps, which need to perform in the process of development of a proper strategic human resource management planning (Stone et al., 2015). Employees value position, strategic workforce planning, recruitment and planning, training, performance management, 360 degree feedbacks, total rewards system, session planning, retention management and HR Audit are some of the important factors in the development process of a proper strategic human resources planning (Stone, 2014).

Advantages of the reward system

The ultimate objective of a proper human resource management is to get the work done by the people in a proper manner. Some of the key features include proper salary, bonuses, incentive pay, benefits of the employees, which includes proper growth opportunity such as proper professional development and additional tanning (Tharenou, 2015). This particular system includes a number of advantages to the companies. Some of the common advantages of the reward system include the following features:

Employee Retention

Employee retention is one of the most common features in the overall human resource management. Majority of the organization depending upon the nature and objectives of the business tries to maintain a strong employee retention policy (Werner, Schuler and Jackson, 2012). There are different kinds of activities which majority of the organization follows towards the development of the of a proper human resource management. Employee retention is one of the major challenges that majority of the organization faces. However, employees of the organizations are the once who are responsible for the achievement of the organizational goals and activities. If the old employees of the organization are retained the company will be benefited in certain ways (Dessler, 2013).

Employee Performance

There are several parameters, which will conclude about the performance of the employees. If the performances of the employees are good, the organization will be benefited in certain ways (Dowling, Festing and Engle, 2013). The overall objective of the organization is to achieve and to ensure that the profit and sales are always at a growing stage. There are different kinds of parameters, which measures the overall performance. Some of the key performance measures include production, sales, ranking and many more (Gupta and Shaw, 2014). The organization in the study need to analyze all the important factors which will focus on the improvement of the organizational plans and procedures.

Program Administration

Administration is one of the most important parts in the organizational development. Every employee wants a proper working environment. One of the most important points a proper working environment includes a proper job security (Ma and Ye, 2015). Job security includes the proper salary structure, proper incentive structure and many more. If the employees of the organization are boosted and confident about of their work, it will be certain positive impact in the organizational plans and development.

The above three point will ensure the implementation of a proper reward system which will focus on the betterment of the employees and for the betterment of the organization. There are different kinds resources present in the organization. Out of all the resources, the most important resource of the organization is the human resource management (Martin, 2012). It is one of the primary responsibilities of the organization to look after the needs and demand of the employees. On the other hand, it is the job of all the employees to accomplish the common organizational goals (Mello, 2015).

Reinforcement and Expectancy Theory

Noe (2014) has stated that the reinforcement theory postulated that a behavior, which has a rewarding experience, is likely to take place several times. The implication for remuneration is that high employee performance followed by a mandatory reward would motivate the employees performs best in the workplace. Like this reinforcement theory, another most effective theory in this regard is Vroom’s Expectancy theory. It can be seen that this theory concentrates on the link between the rewards and behaviors. However, it is required to mention that as per this theory, motivation is the product of valence along with instrumentality and expectancy. Therefore, it can be stated that remuneration systems in the organization differ as per the impact on these specific motivational components. These two are the most discussed theories in the field of reward system and it can be stated that the managers, leaders and the employees are required to be well acquainted with these theories.

Research Methodology

The outline of the investigation procedure, which the analyst develops in the overall research operations, is known as research methodology. Depending upon the nature of the research, the analyst decides the selection of the correct research methodology. However, there are several classifications of the research methodologies. The research paper will conclude about research philosophy, research approach and research designs (Mondy and Mondy, 2012). On the other hand, the most important part is the application of different kinds of data analysis and data collection procedure. The overall analysis procedure will ensure that all the requirements of the study are meet accordingly (Mondy and Mondy, 2014).

Research Philosophy

Positivism is the selected research methodology, which the analyst in the study has adopted in the study. With the application of the positivism research methodology, the analyst in the study will be able to support the overall proceedings of the research work based on real facts and findings.

Research Approach

The role of the research approach is another important point, which needs to highlight in a proper manner. There are two kinds of research approach, which includes inductive approach and deductive approach. The applications of both inductive approaches as well as the application of deductive approach are the two kinds of research approach with different specifications. Sometimes it becomes very difficult for the analyst to choose whether to go for inductive approach or to go for deductive approach. Based on the requirements of the research, the analyst has decided to go for the deductive approach. With the help of the deductive approach, the analyst in the study will be able to support the research the research work based on existing theories and findings (Weathington, Cunningham and Pittenger, 2012).

Research Design

The final research methodology is the application of the research design. The analyst in the study has decided to use the notion of the descriptive research design. With the application of a proper research design, the analyst in the study has decided to go for the descriptive research design. With the application of the descriptive research design, the analyst in the study has decided to support the proceedings in an overall in depth analysis.

Data Collection and Analysis

The overall research proceeding is based on the application of the Primary data analysis. The application of the Primary data analysis includes the use of the both quantitative analysis as well as qualitative analysis (Werner, Schuler and Jackson, 2012). The overall analysis procedure will ensure in the process of supporting the research work based on real findings and analysis. The outline of the investigation procedure is developed in such a manner, which will focus on how rewarding employees and rewarding the performance will be positive for the organization. The application of a proper data analysis procedure will ensure the analyst to support the research proceedings based on real facts.  

Research Scope

The scope of the research will ensure in a proper application of the research philosophy, which will outline the limitations of the research, the specific data and the application of relevant theories. It is one of the most important part in the research proceedings.

Research Limitation

Limitation of the research work will influence that it cannot be controlled. The limitation of this particular research work is limited in this particular segment. Funds is one of the main source of limitation of any research proceedings.

Ethical Consideration

Ethics is one of the key parts in all the investigation procedure. It is the principle job of the analyst to follow all the rules and regulations in a proper manner.  


The concluding part of the study will summarize all the factors, which will ensure the effect and impact of rewarding people in the overall performance. The research process will ensure the proceedings of the organizational performance. The role of the employees in the organization contributes as one of the crucial parts. If the employees of the organization are motivated it will automatically allow the organization to achieve the common organizational goals and objectives. Liquor land is the selected organization in the study. It is one of the most common liquor shops in entire New Zealand, and it operates its business across the major cities of New Zealand. By using proper research methodology, the out of the study is prepared.

H1 hypothesis is accepted in the research, as motivating people in the organization will ensure the organization to achieve the common organizational goals and objectives.

References List

Dessler, G. (2013). Human resource management. Boston: Prentice Hall.

Dowling, P., Festing, M. and Engle, A. (2013). International human resource management. Andover: Cengage Learning.

Gupta, N. and Shaw, J. (2014). Employee compensation: The neglected area of HRM research. Human Resource Management Review, 24(1), pp.1-4.

Hayton, J. (2011). Global human resource management casebook. New York, NY: Routledge.

Ivancevich, J. and Konopaske, R. (2013). Human resource management. New York, NY: McGraw-Hill Irwin.

Ma, L. and Ye, M. (2015). The Role of Electronic Human Resource Management in Contemporary Human Resource Management. JSS, 03(04), pp.71-78.

Martin, A. (2012). Human resource performance management. Uxbridge: Koros.

Mello, J. (2015). Strategic human resource management. Stamford, Calif.: Cengage Learning.

Mondy, R. and Mondy, J. (2012). Human resource management. Boston: Prentice Hall.

Mondy, R. and Mondy, J. (2014). Human resource management. Boston: Pearson.

Noe, R. (2014). Fundamentals of human resource management. New York, NY: McGraw-Hill/Irwin.

Prescott, R. and Rothwell, W. (2012). The encyclopedia of human resource management. Hoboken: John Wiley & Sons.

Shen, J. (2015). Principles and Applications of Multilevel Modeling in Human Resource Management Research. Human Resource Management, p.n/a-n/a.

Stone, D. and Deadrick, D. (2015). Challenges and opportunities affecting the future of human resource management. Human Resource Management Review, 25(2), pp.139-145.

Stone, D., Deadrick, D., Lukaszewski, K. and Johnson, R. (2015). The influence of technology on the future of human resource management. Human Resource Management Review, 25(2), pp.216-231.

Stone, R. (2014). Human resource management. Milton, Qld.: John Wiley and Sons Australia.

Tharenou, P. (2015). Researching expatriate types: the quest for rigorous methodological approaches.Human Resource Management Journal, 25(2), pp.149-165.

Tijms, H. (2012). Understanding probability. New York: Cambridge University Press.

Weathington, B., Cunningham, C. and Pittenger, D. (2012). Understanding business research. Hoboken, N.J.: John Wiley & Sons.

Werner, S., Schuler, R. and Jackson, S. (2012). Human resource management. Australia: South-Western Cengage Learning.


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