Answer To: The essay requires you to critically assess reward management strategy with reference to an...
Dipali answered on Nov 24 2022
Table of contents
Reward management strategy 5
The organization that I have selected for this report is Amazon. In 1995, Jeff Bezos began Amazon as an online bookstore; now, it employs 224,000 people worldwide and is one of the largest electronic commerce businesses. Amazon became the second-largest company on the globe in 2018 with a market capitalization of nearly $900 billion (Shrestha and Nasoz, 2019). Amazon places a strong emphasis on effective business management, and its great commercial success is directly linked to its unique organizational structure and human management. The company has, however, also faced a lot of criticism for its rigid approach to personnel management. Employee satisfaction at Amazon is lower than it is at similar internet businesses, as per a survey published by Kansas University. To put it another way, there are still some issues with the organization's HRM procedures. This essay reviews a fast study of Amazon's essential commercial activities, corporate goals, and current rewards management system. Moreover, this article outlines Amazon's difficulties and aids in developing the association's rewards management plan. The administration of Amazon's organizational development depends heavily on global business strategy. The organization is renowned for using technology in its methodology of building a sustainable market for them. Merit Overall Rewards is the finest overall reward model for Merit at Amazon Corporation. The plan places a strong emphasis on creating the item, offering advisory-type assistance, and including training initiatives to improve staff capabilities. This method focuses on, among other things, market benchmarking, job appraisal, compensation planning, and performance evaluation. When it comes to rewarding employees, Amazon places a heavy emphasis on elements like worker engagement, effectiveness, creativity, originality, and productivity. They serve as the standards against which the organization's reward program is evaluated. Using the whole reward system is the most efficient method for ensuring the greatest benefits in reward management. Employees that help the business succeed are rewarded in a number of ways, including monetary remuneration and chances for career advancement. Assuming Amazon had a careful rewards program that established productivity goals for each department, employees would be more encouraged to perform their best work. Setting performance goals also limits how many resources might be employed to boost productivity (Souza-Rodrigues, 2019). The drawn-out reward cycles of this approach will also increase yield. Because of this, overall reward management offers Amazon a number of advantages that must be utilized to ensure enhanced performance and development. To achieve the Merit total rewards model, the best method for executing a total rewards strategy is to assess the current reward strategy and pinpoint areas for improvement. An essential step in meeting the demands of the Merit Total Rewards model is identifying and addressing the gaps in reward strategies. The association should seek employee agreement on the necessity of an intensive rewards plan and explain the change's goals and benefits to them as a component of the implementation process. This would allow for the smooth execution of the entire reward program, which encourages organizational development and concludes with employee purchases.
Amazon (2018)'s pay plan consists of a base salary, a signing bonus, and restricted stock units. Additionally, it provides a range of benefits to employees, including health insurance, a 401(k) plan, a system for supporting families, a reception subsidy, leave sharing and slope-back employee discounts, and time management. Amazon gives less benefit to recently hired coworkers but more to those who have worked for the company for around two years in order to save costs and maintain employees who are really invested in the business. Amazon has set up an exhaustive performance management system (Wu & Gereffi, 2018). Since the effectiveness of the group chief determines the group's success, there is no conventional evaluation of group performance. A simple mid-year survey is conducted by the company in September, and a...