Incentives, Rewards, and Recognition

Subject: Employee Management
Pages: 2
Words: 373
Reading time:
5 min
Study level: College


The paper deals with four important issues of human resource management. The notion of “human resource management” is defined and its functions in the organization are stated. The meaning of HR law and its compliance are considered as an important part of doing business. The possible consequences of following and breaking HR law are suggested. The influence of a firm’s human resources on organization performance is studied. The role of strategic HRM is revealed as well. The factors that influence employees’ motivation, particularly those under managers’ control, are reviewed. They include payment, promotion, and recognition.

Definition of “human resource management”

The notions of ‘human resource management’ (HRM) and ‘human resources’ (HR) are used instead of the term ‘personnel management’ (Armstrong, 2014). They mean the ways the people in an organization are managed. It can be defined as “a strategic and coherent approach to the management of an organization’s most valued assets – the people working there who individually and collectively contribute to the achievement of its objectives” (Armstrong, 2014, p.3).

It has certain philosophies, strategies, policies, processes, practices, and programs. In a wider meaning, HRM includes managerial decisions and actions which influence the character of relations between the company and its workers (Zeuch, 2016). Thus, it can be concluded that the majority of organizational decisions are to a certain extent connected with human resources management. C.F.R. defines management as “activities such as hiring and training employees, appraising their work performance, assigning tasks, budgeting, and complying with legal requirements” (as cited in Shilling, 2015, p. 1-82).

Thus, it can be concluded that the functions of human resources management go beyond hiring or firing the employees. Apart from its primary role which is the guidance of people who start their work for the company, HRM is responsible for the training of the personnel, giving them the necessary knowledge, providing the tools for work, administrating the company work force, and other aspects crucial for the successful activity of the company. Their concern is also the relations among the staff members, the atmosphere in the company, and the motivation of the employees. HRM is responsible for human relations law compliance and the organization performance.


Armstrong, M. (2014). A handbook of human resource management practice. 10th ed. London, UK: Kogan Page Limited.

Shilling, D. (2015). The complete guide to human resources and the law. New York, NY: Walters Kluwer.

Zeuch, M. (Ed.). (2016). Handbook of human resources management. Berlin, DE: Springer.

Compliance with HR law as an important part of doing business

The compliance with the law is an integral part of any initiative. Acting within the approved legal norms and demands is particularly important when it comes to human resources. The legislation within HR is aimed at the protection of human rights and avoidance of discrimination on any basis. Following HR law is a crucial factor for doing business. A company that is honest and respectful to the employees is likely to act similarly with its partners.

The employees should feel safe and protected in the workplace. Thus, the laws and rules that regulate the work process safety should be followed accurately. Besides, applicants for various positions provide detailed personal information. Hence, personal information security has to be one of the major responsibilities of HR department. If employees know the information will not be used other than as intended, they will share it more eagerly.

Another aspect of HR law is salary and taxation. The payment conditions should be clearly set and fixed (Shilling, 2015). A clear payment plan and timely wages also add to the positive image of a company as a partner since they are the indicators of the company’s financial stability. A company which has problems with wages or taxes is not a desirable and reliable partner.

One of the important issues that have to be legally regulated is working time and scheduling. The concepts of working overtime, shifts, vacations and vacation pay should be included in the company’s documents. Moreover, every employee should be informed about these issues (Shilling, 2015). Another aspect that can be mentioned regarding HR legislation is pension law. This issue is regulated by the laws of the country where the company is registered.

Finally, HR laws should provide the protection from discrimination on race, gender, age or another basis. The diversity in the workplace is a normal policy of a contemporary company. The equal treatment of different employees also contributes to the positive image of a company in the market. At the same time, intolerance is not the way to success, in particular in international business.


Shilling, D. (2015). The complete guide to human resources and the law. New York, NY: Walters Kluwer.

The influence of a firm’s human resources on organization performance

In the context of improving organization performance, the concept of strategic human resources management should be considered. It deals with the opportunities of HR for “organizational performance and competitive advantage” (Mitchel, Obeidat, & Bray, 2013, p.899). Globalization processes intensify the development of business. The demand for competitiveness increases. This demand can be met by HR professionals whose core goal is to make the organizational value stronger.

HR has a number of practices which can positively influence the organization performance. For example, a company providing job security looks reliable; thus the employees value their positions and their personal performance grows. It results in the improvement of the general organization performance. The approach known as selective hiring provides the company with the selected employees whose achievements are high.

Another strategy that can be applied by company’s HRM to increase its performance is extensive training. A company which is interested in its growth has to be focused on the personal development of every employee. In conditions of a rapidly developing market, only a well-trained professional can meet its challenges and provide the high level of organization performance.

The tension of contemporary business sphere stimulates companies to the improvement of strategies and processes they use. The creation and introduction into practice of new strategies are the tasks of HR services and a step towards the upgrade of organization performance (Mitchel et al., 2013). The strategic steps that HRM undertakes for organization performance improvement should positively influence their motivation, contribute to their ability, and reinforce involvement, participation, and dedication to work. It should be a primary concern of the organization which wants to stay competitive on the market and escalate its performance.


Mitchel, R., Obeidat, S., & Bray, M. (2013). The effect of strategic human resource management on organizational performance: The mediating role of high performance human resource practices. Human Resource Management, 52(6), 899-921.

The factors influencing worker motivation under managers’ control

It is obvious that properly motivated employees provide better performance in a workplace. The choice of approaches to motivation is another task of human resources management (Armstrong, 2014). There are two types of motivation. The first one is personal when people motivate themselves for fulfilling the tasks. The second one depends on the management and can be influenced (Armstrong, 2014).

Among the factors that influence employees’ motivation and can be controlled by management are payment, promotion, and recognition. The factor of payment can have two aspects. It may have a negative context when workers get penalties for not fulfilling their duties or making serious mistakes. The other one has a positive connotation. It presupposes bonuses for good performance at work, extra bounces for some innovative suggestions or the implementation of creative approaches. The efficiency of both methods cannot be distinctly stated since it depends on every person. Some are better motivated by the fear of penalty; some demonstrate better work if they are promised a bonus. Often, companies combine both methods.

The factor of promotion can be efficient with ambitious employees. Some people who are interested in a career growth are well motivated with the perspective of promotion. As a rule, a higher position in an organization means the increase of salary and a higher status. Hence, some employees demonstrate better results, are engaged in self-development, visit training, and aim to obtain a leading position. Thus, for this type of workers, the obvious perspective of being promoted is the best motivation.

Finally, the factor of recognition can also be motivating. Some people are not so interested in high income or position. Their need is to be appreciated. Thus, the companies have competitions such as “Employee of the month” or similar. The results of the competition are placed on boards for everyone to read, and the photo of the winner is placed there for the following month. The big companies provide the extended versions of such competitions similar to Oscar Award where employees from different departments can be awarded in various nominations. Such activities are not only motivating. They also stimulate positive relations and competitiveness among the employees.


Armstrong, M. (2014). A handbook of human resource management practice. 10th ed. London, UK: Kogan Page Limited.