Impact of Remuneration to Motivate Employees

Impact of all toldowance to Motivate EmployeesThis oration is based on a concept of human resource management, which is an cardinal aspect for the succeeder of the firm. The question matter of this talk is Investigate the seismic disturbance of pay to cue employees in the Fast Food Industry A Case guinea pig of McDonalds.Remuneration is unrivaled of the measurable tools to appraise the death penaltys of the employees, which eventu completelyy dos them to incline with zeal and enthusiasm. This merry-go-roundic is mainly foc utilize that theater directors uses stipend as a tool of need. Case line of business of McDonalds give friend to appreciate the enormousness of hire as an burning(prenominal) tool for managers to motivate employees. insane asylumRemuneration is directly or indirectly wizard of the mainsprings of the motivating in the society. A well outlined compensation body leads to motivate the employees, which unless leads to adjoin fecundne ss (Chi and Han 2008). This look for need mainly concent run ones on the kinship between net income and pauperization. Yermack (2004) has asserted in his field that all the descent government activitys act like a profit maximization institution, so they localize their drifts to repair execution of its employees by motivating them. This motive ultimately serve ups the organizations to affix productivity direct. Work motivation is inter tie in with stock satis accompanimention.M maven and single(a)y a lot is looked upon as a means of fulfilling the most basic ineluctably of man. These needs argon made available by dint of and through with(predicate) the purchasing power profferd by financial income payment and allowance of individual (Stajkovic and Luthans 2003). jibe to distinct motivation theories, such(prenominal) as Maslows Need Hierarchy, Two factor theory apt(p) by Herzbergs, McGregors theory X and theory Y, Achievement Theory, Taylors Motiva tional Theory, and so forth Money is one of the main sources to persuade the behaviour of an individual towards his organization and scarper productivity (Wheeler 2008). consequently, it is necessary for the corpo cast executives or managers to be advised with the scotchal and social background of employees to offer good allowances as per their natural endowment and skills and motivate them to work. The general meaning of allowance is the basic salary or pay of an employee, yet in the broader sense, compensation comprises salary, fringe benefits, compensation, bonus, commissions, employee stock option, etc. (Guedri and Hollandts 2008).In the current business scenario, managing and motivating human resources has fetch a complicated caper. In this highly changing and competitive environs, allowance is one of the main tools for the manager to improve the productivity of the employees, to attract competent personnel, to go along present employees, to reduce the rate of absents and employee turnover, to manage transmission line sequences, to strengthen trade union management bloods, to improve public image of the corporation, etc. (Perry, Mesch and Paarlberg 2006).This enquiry cogitation would target the profit procedure in fast forage intentness of the United States of America, by using McDonalds, worlds number one fast food restaurant. Presently, the structure of fast food pains has become complicated and its advantage is mainly low-level upon the measure up and talented employees, who be able to l make water the changing needs and requirements of the customers. Competitive pressure and milieual changes has increased the importance of motivational practices for managers to boost the performance of the employees. This harangue will focus on the issue that how managers of McDonalds use lucre practices to motivate the employees and creating competitive advantages in the industry. Additionally, this dissertation will similarly discuss the inter semblanceship between remuneration and motivation with the help of diametrical motivation theories. interrogation Aims and ObjectivesDuring this enquiry work, the investigator would check the need and importance of motivation tools for the managers and how remuneration would help the managers to motivate employees in McDonalds. The main objectives, which are coming out of this enquiry, are as come out? The foremost objective of this dissertation is to identify the touch of remuneration practices on the performance of the employees in the fast food industry.? split second objective of this look into count is to identify the relationship between remuneration and motivation, on the base of different motivational theories.? Next objective is to understand the remuneration practices and procedures employ by managers in McDonalds to motivate the employees.? An another(prenominal) objective of this investigate dissertation is to compare performances of employees in M cDonalds with its rival companies to identify the importance of and advantages remuneration to motivate the employees.? Additionally, suggesting different strategies and practices to compensate employees as per remuneration act is likewise one of the main objectives of this study.Background InformationMcDonalds is one of the biggest fast food family restaurants, which operates in to a greater purpose than 120 countries and serve more than than 47 million customers in a day (McDonalds About Company, 2010). It doles out some of the favourite foods all around the world like World Famous French Fries, high-risk Mac, Quarter Pounder, Chicken McNuggets and Egg McMuffin. Success of the firm is highly dependent upon its HRM practices and efforts put by its managers and employees. All the HR policies of the companies are specify truly clearly for the benefit of all stakeholders. The main aim of the HRM department of the telephoner is to offer best serve to the customers by ensuring t hat the company has skilled, motivated and affiliated employees. Remuneration practices utilise by the firm are to a fault real good and effective and based on various motivational theories.Remuneration is not a new concept for the business organizations. In the bodily world, all the members from owner to subvert level employees work for money. Not besides in MNCs only if also in small shops, e reallybody wants high remuneration and financial incentives to fulfil their basic needs, thus, it is necessary to work hard to improve the productivity of the employees and earn more money (Yermack 2004). Corporate world has become competitive, in this concern, top executive and managers uses management practices and motivational theories to fire the skills and productivity of the employees and earn high money. Thus, fair remuneration practise are apply by the managers. This creates a timbre of satisfaction among employees to fulfil their needs (Chi and Han 2008). correspond to the assumptions of motivation, compensation and incentive is direct tool to motivate employees. Managers in McDonalds take a shit taken a complete overview of this concept and motivate employees by whirl good remuneration and performance incentives. Presently, companies are following the governing body of remunerative for performance. Qualification and experience are also main(prenominal) besides work performance enables employees to get good remuneration (Perry, Mesch and Paarlberg 2006).For example, if a marketing manager is highly qualified besides he is not able to tolerate a market seek efficaciously and his working issue is very low, company would not give a high remuneration and other financial incentives to him. On the other hand, if a sales executive has medium qualification and he serve more number of customers by present his abilities and maintaining good relations with them he would be definitely promoted by the company and would get pecuniary rewards also (Whee ler 2008).Thus, it is very clear that money matters for all the employees, whether they are at high position or belongs to middle and lower levels. Remuneration requires by all the employees to fulfil their basic needs and non-monetary and monetary rewards and compensation are also given by the firm to maturate job satisfaction and control the rate of employee turnover (Guedri and Hollandts 2008). Thus, this research study would focus on McDonalds, which has effective HR and compensation policies to pay its employees and motivate them to put their best efforts to touch the goals and objectives of the firm.Literature ReviewMotivation is a litigate to push employees towards some work in order to remunerate a need. just about of people work to reach some condition goals. It is the footing that motivation is goal-directed mother that fountains to person to act. Mathis and Jackson (2008) defined that need, desire want and drive all are similar to motivation. They set forth that understanding of motivation is all important(p) for organizations as reaction to compensation. Compensation and motivation are directly proportional to each other (Ajila and Abiola 2004). Performance of employees, rate of absenteeism and turnover are affected by motivation and remuneration and also influenced to motivation.Managers brush aside use different motivational tools to motivate their employees and remuneration is one of main tools among all of them. Remuneration potty be defined as the monetary motivation tool that influences the behaviour of employees towards work (Armstrong, Murlis and Group 2007). In the words of Perry, Mesch and Paarlberg (2006) each employee should receive a general compensation for their efforts, voice and responsibilities followed by him in the company. Before deciding a form and add together of remuneration, some(prenominal) considerations are there such as general economic climate, specific business condition, woo-of surviving and worker q ualification and productivity that a firm moldiness consider (Carraher 2011). Different authors described some the relationship between remuneration and motivation. In order to support this relationship, Mathis and Jackson (2008) state that remuneration is different from motivation and it is connect with Herzbergs hygiene factors. Remuneration includes some(prenominal) things such as bonuses, commission, salary, fringe benefits such as pensions, holiday entitlement.The study of Chapman and Kelliher (2011) represent that employees motivation does not only come from decision liquify (amount of pay) of an organization policy further also it comes from the understanding of individuals. The remuneration of an employee depends on several(prenominal) factors such as basic needs, psychological needs, social needs, performance of individual, productivity, profitability return, etc. (Khan, Farooq and Ullahb 2010). In favour of this, Kmiotek and Lewicka (2008) say that effective motivat ion does not only involves proper implementation of remuneration policy but also involves some other motivators such as organization of work, HR development and training, performance management tools, performance appraisal, etc. concord to the HR experts, creation of effective reward frame is necessary to motivate employees but there is a need of good and enthusiastic managers, who roll in the hay drive people towards good performance. In order to create an effective motivation process, it is necessary that there should be an catch remuneration policy for employees (Kubr 2002). tally to Ajila and Abiola (2004) there are two types of rewards such as intrinsic or extrinsic. Intrinsic rewards are related with the rewards that are natural with job. This reward is achieved by individuals when they successfully achieve their own objectives. On the other hand, extrinsic rewards are outside the job such as working condition, security, promotion, working environment and service contact.P resently, in order to motivate employees, both intrinsic and extrinsic rewards should be a part of remuneration policy. It is also well discussed that individuals effectively work to the extent for the job, which provides them remuneration if they are intrinsically motivated. In crease to this, if people are extrinsically motivated, they effectively work to the extent by which they can attain external rewards from the job (Chapman and Kelliher 2011). Thus, it can be concluded that if the remuneration is intrinsic to the job, desire for motivation is also intrinsic or if the remuneration is extrinsic to the job, desire for motivation is also extrinsic to the job (Ajila and Abiola 2004).Perry, Mesch and Paarlberg (2006) state in their research study that in this new government era, in order to increase the performance and productivity of the employees, managers should adopt good remuneration policies. This will ultimately help the business organizations to offer quality services and products to the customers (Maxwell 2008). It is the reason that most of employers now use remuneration policies to attract, motivate, retain and touch employees. It is founded through different research that performance-based remuneration motivates employees to work hard (Ajila and Abiola 2004).The study of Khan, Farooq and Ullahb (2010) support the arguments of Ajila and Abiola (2004) and give tongue to that in an effective rewards system, there are several factors that influences the performance of employees such as basic remuneration, bonus, incentives, fringe benefits, monetary and non monetary rewards, commission, etc. All these factors are good sources to boost the performance of the employees. Carraher (2011) defined that remuneration helps in developing strong relationship between employers and employees.It is founded by tecs that employees motivate through different monetary remuneration and an effective remuneration helps in reducing absenteeism, turnover intentions, pr ovides organisational attractiveness to different job seekers and also helps in increasing employees job performance (Kmiotek and Lewicka 2008). It has been stated by Guedri and Hollandts (2008) in their study that managers in different organizations consider remuneration as a major factor that helps in increasing productivity of employees.Remuneration is an important tool that focuses on motivating employees performance and behaviour. The study of Employee store and organizational performance (2011) also support the views of Carraher (2011) and asserted, it is necessary that there must be appropriate rewards in order to satisfy and motivate employees. In severalise to both Carraher (2011) and Employee retention and organizational performance (2011), Mathis and Jackson (2008) said that other factors such as job itself, participation, appropriate feedbacks, morale and mark are more important than remuneration that disturb on remuneration.According to Blythe (2005), in the presen t competitive environment, job satisfaction is more important than money, thus, manager should concentrate on all non-monetary factors, promotions, health insurance, rewards systems, etc. Zyl (2010) has stated in his research study that there is a positive relation between labour productivity and employee remuneration, which is also supported by Carraher (2011). It is the reason that greater the employee remuneration, higher the level of labour productivity. Several reasons support this fact such as if an organization adopts more differentiate remuneration, it will enhance the human efforts and a higher remuneration structure also enhances the productivity of employees (Montana and Charnov 2008).At the same time Zyl (2010) also assesrted that if gaps between employee remuneration is regularly increase, it would ultimately increases gap and convert positive relations between employees performance and remuneration into negative. There are several reasons such as if it is change by e mployees that their real remuneration is less than the fair remuneration, it can cause for negative relationship. Kubr (2002) Stated that an effective remuneration system does not only enhance the performance of people, who are already working well but also it is apply to enhances the performance of people who are not execute well. Remuneration play an important role in motivating employees but different employees motivate through different factors. An effective remuneration case includes several elements. These elements are as belowFirst, element is salary that includes different things such as pay, commission, profit related pay and s lapin dividends. Second element is related with different facilities such as insurance, healthcare schemes and pension. separate elements are availability of discounts on companies product and service for employees and subsidiary for meals and adaptation (Kubr 2002). Salais and Villeneuve (2004) support, Kubr (2002) and said that remuneration is a better(p) tool to motivate employees for better performance. There are three basic remuneration components such as bonuses, basic pay and profit-sharing schemes that influence the performance of employees.Armstrong, Murlis and Group (2007) described about the effectiveness of remuneration as a mean of motivation such as? In order to motivate employees through remuneration, it is necessary that remuneration should be equitable and externally competitive.? Contribution systems and pay for performance system are created on the basis and understanding that directs that motivation is only takes billet when the rewards are worthwhile.? Each employee understands about the workings of financial reward system and about the benefits that is provided by it. They also know about the skills and competences of remuneration system (Murlis and Hay Group 2007).In the fast food industry, remuneration is an important part that managers use to motivate employees and enhance their productivity leve l. In contrast to this statement Schlosser (2001) defined that if there are lack of secure utilization and good wages in fast food organization, managers use aggroup spirit in order to motivate employees by saying that, if one employee is arriving late and do not work hard, it also affects the performance of their friends as well as their co-workers. It also helps in motivating employees, so that they can improve their performance.It has been also defined that employees work only to increase their shekels and this is the reason that if organizations provide more remuneration to the employees, it helps in generating more output (Wales and Reaich 2004). Development of an employee is directly proportional to the development of the organization. If the remuneration is directly related with work performance, employee will work hard. It is the reason that most of managers use remuneration to motivate employees. Managers clearly stated in their organizations policies that if employees w ork hard they can earn higher profits and it is the reason that employees are motivated through this policy. Good return and high profit will allow the organizations to hare the profit with employees, thus they should work hard to get good remuneration (Yermack 2004).Zyl (2010) has been also found in their research that if employees are motivated through remuneration, there are two positive effects of this such as it helps in reducing the labour turnover from organizations and it also helps in enhancing the more salary and good working environment.Thus, it is fact that it helps in generating a productive team of efficient and talented people for the enterprise (Wales and Reaich 2004). According to them remuneration as a managerial tool to motivate employees is important for several reasons. These reasons are as below? Remuneration is a tool to fair measurement of different employees. It is because if employees get more facility instead of money, it does not motivate employees to wo rk harder.? With the increment in salary, employees can maintain their honour, prestigiousness and ensure economic security (Wales and Reaich 2004).? They also argued that remuneration is a more efficient motivating factor as it can easily increase or decrease according to the proportion of work.? Remuneration also helps in increasing the self-confidence of employees that further helps in improving the standard of support (Wales and Reaich 2004).Thus, finally it has been concluded in many research studies that remuneration is an important tool that several managers use to increase the performance of their employees.Justification of the StudyThis research study has its own significance to understand importance of remuneration for the business firms to improve the performances of employees and for the individuals to fulfil their desires. Although this research topic is related with the HRM but it has a broad significance in the society. Remuneration means salary and pay that is paid by employers to its employees. Money is the foremost sources for the well living of individuals, which help them to fulfil their basic needs. Presently, innovations and changes in the economical, social and technological environment have enhanced the living standard of individuals (Mathis and Jackson 2008).Money allows them to bang a lavish lifespan and raise their social standard, thus, this research topic is very much beneficial for the managers to understand that how remuneration practices enables them to motivate employees to work with zeal and enthusiasm. The main reason behind selecting the fast food industry and McDonalds is the popularity. Growth and success of fast food industry attract individuals to earn good remuneration. McDonalds provide good remuneration to its employees, who develop high level of job satisfaction among the employees thus, this example would provide sensible and true training.Although job satisfaction and enrichment is also important for the deve lopment of the employees, but money has also its own importance. This research study would be beneficial for all kinds of firms such as international, MNCs, small and medium size firms, to improve the productivity of the employees. Managers would also able to understand the significance of remuneration tool to boost the morale of employees and motivate them to achieve the goals on time.Research methodological digestResearch methodology can be discussed as a systematic process, which assists research workers to collect, organize, record, and appreciate the info and discipline to resolve the problem and draw a valid and secure conclusion (Bordens 2006). Selection of research methodology is a significant task for the police detective. In order to select suitable methodology, firstly, researcher would use appropriate progression.Research ApproachThere are mainly two kinds of research nuzzlees inductive and deductive.Inductive Research Approach In this kind of research, theori es are developed according to the situation or problem (Crowther and Lancaster 2008). All these theories enable the researcher to explain entropy and data. This is very flexible in temper and based on bottom up approach. In this kind of approach, researcher evaluates a main concept and generalizes this view as per the research problem. It is related to the interpretivism point of view (Gill and Johnson 2002). On the other hand, this kind of research approach also involves some extent of uncertainty.deductive Research Approach Deductive research approach is mainly based on the positivism paradigm. In this kind of approach, research develops theories and hypothesis and tests these theories with the help of empirical observations. This approach is top to bottom approach in which researcher evaluates general views to reach at specific situation (Hyde 2000).The suitable research approach for this study would be inductive because this research focuses on the specific areas of human res ource management, which are remuneration and employees motivation. Both of these concepts have their own significance in the success of a company as well as individuals. Thus, this research approach is more appropriate to explore the effectiveness of remuneration to motivate the employees and improve their productivity (Burke 2007). Deductive research approach would not be used because HRM has not given any kind of theory to defined remuneration. Basically, this is a pay given by companies to the employees for their job performance that can be used to develop a hypothesis for the research study.Appropriate Research MethodologyThere are numerous research methodologies such as theory-based, applied, analytical, descriptive and empirical. Selection of research methodology would be based on the nature of research problem. In order to select the appropriate research method, it is essential to understand the nature of the research problem.The suitable research methodology for this resear ch topic would be descriptive and applied research methodology. The main reason behind choosing this methodology is its advantage of identifying population characteristics (number of employees to collect firsthand data) in McDonalds to understand the impotence of remuneration to motivate employees and develop feeling of job satisfaction among them. It is a flexible methodology in which researcher uses several variables and lot of information to solve the problem or to achieve research objectives. It has flexible nature, which comprises both qualitative and quantitative research process (Cooper and Schindler 2007).We are not using other research methodologies because they are not appropriate for this study. In theoretical research, there is lack of experimental analysis and in analytical research there is a restriction of theoretical background (Goddard and Melville 2004). On the other hand, empirical research methodology is highly based on observation and field data rather than the oretical. Thus all these methodologies are not well appropriate for this study. In descriptive and applied research methodologies, the research got a chance to use both concepts and observational method. Both of these methods are also beneficial to manage cost and time (Marczyk, DeMatteo and Festinger 2005).Data Collection Method to collect Primary and substitute DataAfter deciding research approaches and methodologies, appropriate data assembling method would also be selected. In order to investigate impact of remuneration and different motivational tools on the performance of employees in McDonalds, we would focus on two different types of methods. Primary research and utility(prenominal) research are two different types. In order to complete this research study, the propose research types are primary as well as utility(prenominal).Primary research type comprises observations, cogitation and interviews through questionnaires, whereas secondary research methods comprises evalua tion of reliable pedantic articles and published studies that are previously do by other researchers (Scruggs and Mastropieri 2006). Questionnaire can be defined as a set of some important questions that are related to the research problem. In order to collect primary data, a set of questionnaire would be used to demeanor a survey process. Some well defined questions would be e-mailed to the participants in the form of questionnaire, so that it will be subimputabled for the researcher to get back the responses of participants and carry out the research study in a systematic way. This is a suitable way to collect important qualitative data, which comprises low cost and also free from divergence (Stead 2001).On the other hand, this research methodology has also some restrictions such as dully filled questionnaires, lack of reliability on data, low rate of return, etc. This kind of research strategy can be used only in the situation when the participants are well educated and coll aborates (Bordens 2006). In case of this research study, the research would target the employees of McDonalds, who are well qualified and experienced to understand the importance of research topic for their personal, social and organizational welfare. In order to minimize the chances of discrimination, an observation methodology would also used. The information gathered by researcher at his personal level would be observed through graphical and tabular presentation to manage the thematic analysis (Crowther and Lancaster 2008).In order to collect secondary data and information variety of academic journal would be analyzed after assessing their credibility. Most of the portion of this research study would be based on the secondary data. Primary data would be used for a limited extent because it is really difficult to select appropriate participants and contact with all the participants for their valid and reliable response. By using secondary data and information, it would be easy for the researcher to enhance the credibility of the research (Cooper and Schindler 2007). Apart from research articles, companies report, different case studies would also be used.The researcher philosophy for this study would interpretive, which provide subjective reasoning according to the secondary data and real life examples (Scruggs and Mastropieri 2006).Justification of Research MethodologyBoth primary and secondary research methods are used to collect data, which are questionnaire, observation and review of academic journals. All these methodologies would be beneficial for this study to find the real facts and figures. According to the inductive research approach and descriptive and applied research methodologies, these are absolutely suitable strategies for this dissertation. The main aim of the researcher is to understand the impact of remuneration and motivational practices on employee performances by minimizing the errors, thus all these strategies would be beneficial to re ach at the valid conclusion (Silverman 2004).Survey through questionnaire and observation method has many advantages and it is very much useful for the researcher to understand the real life situations to achieve the objectives of this research study. Survey through questionnaire is a very efficient technique to collect data and information from a large number of populations. In this research study, researcher has selected a small sample size, which gives an idea to him for the large population, thus both survey and observation methodology would be appropriate (Marczyk, DeMatteo and Festinger 2005).It is valid and reliable research methodology, through which research can study beliefs, attitude and behavior of employees and managers due to different remuneration packages. In questionnaire and observation method, extent of subjectivity and discrimination is limited. On the other hand, secondary research method enables researcher to evaluate the subjectivity of the research topic.Ethi cal ConsiderationIn order to conduct any research study, it is necessary for the researcher to concentrate on the research ethical motive and integrity. Without ethics and integrity, research study has no value. This research study would also be conducted on ground of ethical boundaries, which ultimately help the researcher to achieve consistent and dependable result. Following ethics in research also shows the concern and responsibility of the researcher towards society and corporate environment (Resnik n.d.). The researcher would develop a code of ethics with the help of corporate lawyer. The researcher would establish ethical guidelines according to the law and regulations. Conducting an wrong research will ultimately lead confusions for the society and readers, which would waste the effort and hard work of the researcher (Ethics in Research 2010).The code of ethics would lead surety about the safety and security of data and information. The researcher would ensure the participa nts that he would not disclose their personal and professionals information. Researcher, his team and all the participants would follow integrity, honesty and dependability to conclude and authentic result. The researcher will record all the information to in hard copies and soft copies to by accessing passwords and security codes (Resnik n.d.). Researcher would follow non-discrimination practices to collect and evaluate primary and secondary data.Possible information sourcesIn order to collect secondary data to accomplish the research and achieve the objectives, different sources would be used by the researcher. These sourc