...for Human Resource Management, “The right total rewards system—a blend of monetary and nonmonetary rewards offered to employees—can generate valuable business results” (Heneman 1). This paper will explore how successful total rewards management systems and the correct implementation of it allowed two top companies achieve success. Total rewards management as we know it “encompasses not only compensation and benefits but also personal and professional growth opportunities and a motivating work environment” (Heneman 3). Hoovers.com states that internet search engine giant, Google, historically reports year-after-year revenue and net income growth. The total rewards management system is world renowned and the successful implementation of it is reflected in Google’s financial reports and consistent awards and recognition. The second company under the scope is US based retailer Costco which sells a variety of products from household appliances to bedding and groceries (Datamonitor.com). Costco Wholesale Corporation is often held up as a retailer that does it right, paying well and offering generous benefits according to Ann Zimmerman in her article Costco’s Dilemma: Is Treating Employees Well Unacceptable for a Public-Traded Corporation (Wall Street Journal). The conclusion will be drawn that both Google and Costco’s are leaders in both of their total reward management strategies and the implementation of it. But how? How did Google and Costco get to that point? People in the field...
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...According to Schermerhorn (2011, p. 364), Google Australia is one of the best places to work in Australia matching the performance of its US parent company. It uses a well-balanced strategy of extrinsic and intrinsic rewards and these have kept its employees highly motivated and continue to exert their best efforts for the company. Extrinsic rewards at Google Australia include unlimited sick leave, generous health insurance, flexible working hours, and reimbursement of up to $6000 per year for educational expenses. In addition, staff can also receive small bonus rewards on a day-to-day basis. Intrinsic rewards mostly depend on the individual, but such things as getting to work with creators of Google products such as Google Earth, Gmail, and Google News can bring a sense of satisfaction to the job. Google’s intention to create a sense of fun at work and to create a culture of information sharing and collaboration can be identified by its office environment such as an informal dress code, abundant leisure activities and free food at the staff cafeterias. With these small rewards, Google employees feel a sense of belonging to the company and feel that they are creating and contributing to something bigger than themselves. Gone are the days where companies rely solely on the loyalty and lifelong devotion of the employee. This paper will argue that modern day companies need to redesign on how a balanced strategy of extrinsic and intrinsic rewards for each individual employee will better...
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...amount to rewards or benefits. Employees will usually measure their effort in comparison to what they can get for it. One factor that tends to un motivate employees is their believe that personal preferences and non work related factors can cause a person to get better performance appraisal than persons who have a non relationship with managers, supervisors or evaluators. This is an important factory in determining from the beginning if an employee will start off working with a strong expectation regarding is current job.! ! In my personal experience working for Puerto Rico’s biggest bank and private company, It was a very firm belief that while many got promotions based on merit and years of service and some on effort, there was a clear connection between the most liked employees by managers and better performance appraisal. In my personal conversation with employees in other sectors I believe it is very common and only if the upper management makes a clear and solid communication and example that this will not happen and that all hires will be strictly related to performance or seniority then this could be prevented but it is a very common perception that can hinder performances on many employees. ! ! Page 2 Expectancy theory LET1 Task 1! ! The second part of the expectancy theory deals with what rewards can an employee expect if they get a great performance review. Employees that work towards a great performances often do so expecting a rewards, this reward can...
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...Positive impact According to the Merriam-Webster dictionary, motivation is one of the external and internal factors that stimulate desire and energy in people to be continually interested and committed to a job, role or subject or to make an effort attain a goal. Armstrong (2014), classifies motivation as strength and direction of behaviour and the factors that influence people to behave in certain ways. This section will illustrate the impact of non-monetary motivators on staff performance. Watson, (1994) admits that motivation is the number one problem that is facing modern business today. Non-monetary motivation is one of the most essential ways to motivate staff within an organisation. In many countries owners and top managers are using systems of motivation for staff. In the U.S.A. seventy five percent of organisations motivate staff with non-monetary motivators. This percentage reflects the importance and positive impact of motivation of employees.There are many types of non-monetary motivators and all of them have positive impacts on organisations. Douglas, E (2012) believes non-monetary awards may include: • Restaurant coupons • Relocation costs • Movie tickets • Recognition of birthdays • Free lunches, snacks, or beverages • Covered parking spaces • Outstanding employee plaques • Employee discounts • Tuition Reimbursement • Preferred office/classroom/team selection • Flex time • Job "swapping" • Personalized items (shirts, jackets, briefcases, planners, mugs...
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...Organizational Behavior Google Human Capital is a Companies Most Precious Resource Google now has the first position as the most desirable place to work for graduates. In less than a handful of years, Google has developed to be a family of talent people around the world as a “recruiting machine”. The most valuable resource of a company is its people. This is indeed the case when it comes to search engine industry. While Baidu, the Chinese search engine company, is facing a number of strikes this year, Google kept being the most valuable brand name in the world due to their successful recruiting strategy. This report aims at analyzing the elements of success of Google so as to help Baidu solve its problem combing organizational behavior theory with Google’s case. Job Satisfaction Job satisfaction has been defined as a pleasurable emotional state resulting from an attitude and reaction towards one’s job as an important index measured by organizations. Satisfied employees tend to be more productive, creative and committed to their employers, and recent studies have shown a direct correlation between staff and consumer satisfaction. There is a variety of external and internal influences on job satisfaction including culture, management style, employee involvement and employees’ own expectation to their jobs. As we know that Google provide the prefect working condition and flexible benefits for their employees to increase their job satisfaction. We will...
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...Incentive pay can be defined as a wage system that rewards a worker for productivity above an established standard. Incentive pay plans rely on being an important reward for the employees. Incentive pay, also known as pay for performance is generally given for specific performance results rather than simply for time worked. While incentives are not the answer to all personnel challenges, they can do much to increase worker performance. A good incentive pay scheme can motivate employees to work better, but, on the other hand, a badly thought out scheme can be divisive and demoralizing. Incentive pay shows appreciation and crates a sense of participation in the company’s well-being that salaries, no matter how large, don’t convey. A well designed incentive pay plan can also help pull people together and give that extra push that every company need in today’s competitive environment. One important aspect of a successful incentive program is a well-founded salary program with appropriate base pay. Effective incentive pay systems are based on three assumptions; Individual employees and work teams differ in how much they contribute to the company, both in what they do as well as in how well they do it. The company’s overall performance depends to a large degree on the performance of individuals and groups within the company, To attract, retain and motivate high performers and to be fair to all employees, a company needs to reward employees on the basis of their relative performance...
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...techniques? •What are some of the perks of working at Google? What are Google’s motivational techniques? In the year 2009, Google Inc. ranked first as the best company to work for according to the Fortune magazine (Cooks, 2012). The CEO, Erin Schmitt, subscribes to the school of thought founded upon the belief that “fun is good.” as much as the employees face challenging tasks in Google Inc., the management ensures that the challenge is fun. According to the article “How Google Motivates Their Employees With Rewards And Perks,” the company’s main motivational technique is providing creatively unique working workstations, fostering, celebrating and rewarding the employees from time to time. Schepp argued that a fascinating aspect of Google Inc.’s intrinsic motivational rewards is the fact the company allows for the employees to undertake their normal duties at their freedom (Schepp, 2012). Walker agrees by saying that the essence of freedom for the employees at the workplace is an important aspect that fosters business performance and overall organizational success (Walker, 2012). By granting freedom to its employees, Google Inc. allows them to control and manage their time, work together towards materializing a common goal, which consequently leads to the development of new ideas that have in the years helped to keep Google Inc. leading in the industry it operates. How Google reward their employees? To streamline the way...
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...Organizational Climate Ashley Hoormann, Brandy Harris, Lisa Maligranda, Renee Lemus, Reena Byers MGT/312 August 10, 2015 Robert Muliero Organizational Climate The Fortune 100 is a compiled list of the top 100 companies to work for. According to "100 Best Companies To Work For" (2015), Google has been named number one for the sixth consecutive year. This paper discusses the research found by learning team B regarding amplifying effect, pro-social behavior, positive deviance, and conscious capitalism. Amplifying Effect Google has been recognized for its extraordinary organizational culture, which is designed to promote both loyalty and creativity (Thompson, 2015). Their informal slogan is "Don't Be Evil," and several of its policies and business decisions are founded on trying to live up to this motto (Topolsky, 2012, January 25). Although it may appear unconventional to practice such an approach in a company atmosphere where revenue is always the ultimate concern, employees state that they feel differently about being employed with Google as opposed to other businesses (Thompson, 2015). Google has still been able to maintain the small business feel that many employees love. Google uses a cross-functional organizational configuration mixed with a distinctive philosophy (Young Peoples Pavillion, 2013, November 10). Their cross-functional organizational structure is more of a group or team approach to administration and is structured horizontally (Young Peoples Pavillion...
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...organization and its consumers. The leadership style of any organization can affect its ability to effectively communication, both inside and outside the walls of the company itself. Leadership Styles In today’s business world, one can find several different modern leadership styles. Examples of these styles might include: charismatic, transformational, visionary, transactional, and servant leadership styles. (Nayab, 2011) Charismatic leaders seek out devotion in their workers in order to fulfill organizational goals. These leaders are constantly observing their environment to pick up the moods and concerns of individuals and larger audiences. Then, much like a predator to its prey, do they hone their actions and words to suit the situation. Leaders of this nature engender the trust of the people through visible self-sacrifice and take personal risks in the name of their beliefs. Transformational leadership is very popular in today’s business world, focusing on effecting revolutionary change in organizations through a commitment to the organization’s overall vision. These leaders sell the company’s defined vision, which is usually very radical in scope and nature. While some traits of these leaders are very similar to the charismatic leaders of an organization, transformational leaders have a much more global company focus: change. Today’s business is every evolving. In order to be successful, one must not only change but also embrace the future. A visionary leader does just...
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...Dynamics HOW GOOGLE CHOOSES EMPLOYEES Finding the best engineers, programmers, and sales representatives is a challenge for any company, but it's especially rough for a company growing as fast as Google. In recent years, the company has doubled its ranks every year and has no plans to slow its hiring. More than 100,000 job applications pour into Google every month, and staffers have to sort through them to fill as many as 200 positions a week. Early on, the company narrowed the pool of applicants by setting a very high bar on traditional measures such as academic success. For example, an engineer had to have made it through school with a 3.7 grade-point average. Such criteria helped the company find a manageable number to applicants to interview, but no one had really considered whether they were the most valid way to predict success at the company. More recently, the company has tried to apply its quantitative excellence to the problem of making better selection decisions. First, it set out to measure which selection criteria were important. It did this by conducting a survey of employees who had been with Google for at least five months. These questions addressed a wide variety of characteristics, such as areas of technical expertise, workplace behavior, personality, and even some nonworking habits that might uncover something important about candidates. For example, perhaps subscribing to a certain magazine or owning a dog could be related to success are Google by indirectly...
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...The purpose of this report is to discuss the issue of employee motivation and rewards, and recommend how a company can successfully motivate its employees and achieve high performance levels similar to Google Australia. Diverse methods/techniques and reward programs are used for successful employee motivation and the effectiveness of these are examined in this report. This report examines the two main arguments comprising extrinsic and intrinsic methods regarding effective employee motivation and job satisfaction and correlating it with high levels of work performance from employees. The arguments of extrinsic rewards for work achieving higher levels of motivation are stated by Victor H. Vroom’s Expectancy theory (1964). It is and also reinforced by Frederick Winslow Taylor Theory which claims employees are primarily motivated by pay. This is contrary to that of Frederick Herzberg’s Two-factor theory (also known as Motivator-Hygiene Theory) , which argues that intrinsic factors such as recognition increase motivation and job satisfaction, against that of extrinsic factors. Therefore in this report it is imperative to identify the most effective scheme in which employees achieve high levels of motivation and performance on a long term and consistent basis for a company. 2.0 - Problem Identification Google Australia Management has been able to effectively achieve success with their unique rewards scheme and sociable work environment. However a potential problem could occur if...
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...Management of Human Resources (MGT 522)Cohort 9January 29, 2011 Comprehensive Cases Google 5. What sorts of factors do you think Google will have to take into considerationas it tries transferring its culture and reward systems and way of doingbusiness to its operations abroad? As the company grows internationally, it also faces the considerable challenge of recruiting and building staff overseas.From my point of view, in Google trying to transfer its culture, reward systems and wayof doing business to its operation abroad, they have to take into consideration towcategories of employees.A. Employees or the members of abroad branch. A company like Google that has beneficiated for a great heterogeneity, cultural, racial,religious, etc., in its U.S. locations, and where the spirit of democracy is a constant, canbe surprising in dealing with the homogeneity presented in many countries, includingEurope and Asia. Even in EU countries members have different policies in terms of remuneration of employees, contracts of employment, vacation days, sick days, firing,laying, labor protection, work condition, work time, etc.- Cultural factors , the basic of values their citizens share, and in the ways these valuesmanifest themselves in the nation’s arts, social programs, politics and way to doingthings. S.Mayson & R. Barret afirm in 2007 that the cultural differences influencehuman resources policies and practices.- Legal and political factors. Legal factors...
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...employer. Organizations routinely focus on finances, production, and pleasing customers and neglect the impact their actions or lack of action has on employee satisfaction. The consequences may be seen in products or services that are not up to standards and an increase in turnover and increase in cost for employers. Hence, finding the right balance between employee satisfaction and its enhancement of employee motivation and performance is imperative as it will have positive effects on several aspects of an organization, including lowering turnover rates and increasing productivity and profit. The use of rewards has been found over the years to be one of the management tools in the organization to increase job performance. Besides, it is common to offer employees attractive, lucrative and competitive remuneration packages. For example, an attractive reward packages has been a norm of any employment contract. These have a direct link or inter-related to improving employees’ job competency, retaining high achievers and finally achieving the organizational performances and goals (Mansor, Borhannudin and Mohd Yusuf 2012). Besides,...
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...AN INSIDE LOOK AT GOOGLE An Inside Look at Google People Management 520 June 1, 2014 Abstract Being named the top company to work for, for the last four years is no easy feat. But Google has created a recipe for success in how they recruit, manage, evaluate and motivate their 33,100 employees. By utilizing their data analysis systems and empowering their employees, Google has been able to create a successful workforce that focuses on work/life balance and transparency for all of their employees. An Inside Look at Google Out of thousands of employees surveyed, Google has been named the Best Company to Work For by Fortune Magazine for the last four years (Surwood, 2013). The survey is based upon factors such as work life balance, pay, benefits and additional perks. Their streak of success comes from their creation of the Googleplex at their corporate headquarters, their reputation for their work environment and philosophy on developing their employees that makes it a great place to work. Google was founded by Larry Page and Sergey Brin in 1998. The basis of the company was to create a search engine that would return reputable sources of information, quickly and accurately (Blumenstein, 2002). Through the years the company has used data analysis and strategic positions to help them perfect their people management skills and culture. Google is a very transparent company to all of their employees; they are a very free company that encourages risk taking...
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...plan, but they need to receive support from the organization in doing so. Google’s approach as a corporation leaves it up to the employees to knows what what’s out there and available to them for a successful career path. Self-reliance and the urgency is the approach Google would like to see in its employees an opportunistic attitude that will drive an individual approach towards his or her successful career path. Some of the development tools that Google offers are GoogleEDU. GoogleEDU, “the search engine’s two-year-old learning and leadership development program, offers classes for new managers and executives to help them adjust to the Google culture and manage Google’s staff in a professional manner. This is a formalizing learning opportunity that teaches employees what they need to know to keep productive and allows creativity. The development tool also, enhances each employee's current performance and increases support in the overall business strategy. Google has also implemented Project Oxygen in an effort to analyze why people leave Google. People typically leave a google for one of four reasons, or a combination of them. The first is that they don’t feel a connection to the mission of the company, or sense that their work matters. The second is that they don’t really like or respect their co-workers. The third is they have a terrible boss — and this was the biggest variable. Lastly, poor career development environment. Google’s Project Oxygen found that what employees...
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