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Improving Organisational Performance in Alliance Boots

Role of Human resource management to Employee

Study of Improving Organisational Performance in Alliance Boots

Human resource management program mainly aims towards planning, structuring, and organizing all the useful and valuable resource that is human capital in organization. Aligning the goals of business, managing the talent and improving the working conditions are some of the factors which this department needs to focus on the goals of business, manages the talent, improves the engagement of employee with work and works together with the leadership are some of the key components to manage the human resource.

The human resource department enables to develop the short and long term organizational needs on the basis of which various plans could be aligned, and manpower requirements could be filled up. The business environment is changing on a fast pace so it becomes crucial for the management to develop plans in which the expectations of employees and employer both could be meet out. Performance management programs include various types of strategies and factors within itself, i.e. recruitment, selection, training, development, performance appraisal, wage and compensation and providing other rewards. These factors motivate the people in the workplace to perform in an efficient manner and give their best to the organization if their due care has been taken by the management.

This research report is conducted to achieve an in-depth knowledge in the area of human resource management especially in analyzing the significance of pay and other rewards in organization. In this context, a research is being performed in one of the pharmacy company of UK that is Alliance Boots. In this a primary research is accomplished, to know the employees thoughts on receiving pay and other benefits similarly secondary research is being performed in which journals and books of various authors have been reviewed to know about the significance of pay and other benefits in organization.

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1.1. Introduction

In today’s intense competitive global world, organizations do not obligate their success individually to market realities and sustainable competitive advantages. Those firms are considered successful who consider their human capital as their most significant asset and value their people. The facts and figures ascertained by a company are the quantitative elements of powerful management, whereas, the qualitative aspects includes the management of people. In this context one of the key components in every organization is the human resource management department. Human resource management is the planned way of management of employees, who individually and jointly contribute in the attainment of the strategic aims and objectives of the organization (Pinnington, Macklin and Campbell, 2007). People in the workplace have their own personal ideas and perceptions, individual goals and distinguished personalities; it is the duty of the HRM of the organization to employ both individual and group psychology to consign employees in the achievement of organizational aims, human resource functions acts as a link between the firm and the employees (Performance Management—The Key to Outperforming Your Competition, n.d).

An organization should firstly get acquainted with the needs and demands of employees and further should understand and assess those needs to make the employees see their job as a part of their personal life and not as a daily responsibility. Human resource management is vital for the entire functioning of any organization as it helps the company to build in faithful employees and who are ready to provide their best services (Storey, 1995). Human resource department in every organization manages the employee relations, hire and provide benefits to all workers and shapes the policies of the company and recruit the best talent in the firm.
Human resource management explains the set of associated activities that are linked with planning, recruitment, selection, training and development, compensation and performance appraisal systems of an organization. It is considered as one of the most significant practice of business in a firm as a well designed and measured practice of HRM helps companies to manage the changing workforce requirements, deal with organizational objectives and attain the goals of business (Price, 2011).

1.2. Literature Review

Human resource management defines the set of interconnected activities associated with people of an organization and ultimately refers to the management of human capital- mainly employees who contribute in the attainment of company’s goals. Numerous human resource practices and functions help in managers to draw the attention and recruit new employees, operate within the specified boundaries of state and federal laws, and plan for further companies needs. Many of the organizations have a dedicated department of human resource while in some firms they rely on people to carry out their own responsibilities (Werner, Schuler and Jackson, 2011).
Various researches have proved that people in any of the organization are motivated towards work if they receive equal remuneration and other rewards from the employer. Human resource management consists of several diverse attributes which are required in the firm, i.e. recruitment and selection, training and development, management and compensation development, performance appraisal, pay and other rewards etc. All these factors contribute a lot in the development and motivating the employees to work in an effective manner and enhance their level of productivity (Martin, 2008). One of the significant factor from these HRM strategies are the pay and other different rewards that helps in to enhance the organizational performance.

Offering employee’s rewards and other benefits are known as an excellent tool to evaluate the good performance and make people feel valued and cherished in the work place. There are several ways available in order to reward and respect employees; it includes both monetary and non-monetary benefits. The most important factor about the employees reward system is that it must be fair and equal for every employee and provide adequate solutions (Dransfield, 2000). The policy of organization on employee reward system should be precise and evenly defined, so that each of the individual could contribute their effort in the achievement of rewards and benefits.
Human resource management is never considered so much important as it is in the present environment, currently organizations want to attract, retain and inspire talented brains to meet the objectives (Qube, 2012). In today’s work environment humans are regarded as one of the firm’s assets and so they need to be effectively managed, one of the vital factors in it is the compensation benefits. Employees in the present era are not willing to work only for the cash but to attain additional benefits and these are known as employee benefits. In general form these benefits are mainly in the non-financial form of compensation and gives in accumulation to the basic cash salary to enhance the live of employees (Mathis and Jackson, 2011).

The system of employee rewarding could help in the companies to attain their goals efficiently and handle the adverse situations of workplace. The employer must firstly recognize the value of every objective and should then develop a reward system; the significant aims such as retention of employee, job satisfaction, motivation of employee and enhanced performance could be achieved by assessing the desired result of employee reward system. The pay and other benefits system should not be based on the level of seniority and at every level employees should be persuaded to participate in this type of programs (Noe, 2006). A well designed reward and benefit programs helps the employer in a lot of way and aids to assess the employees in an effective manner. Implementing the reward system the employer gets many of the benefits like job satisfaction of employees, higher level of motivation, and low rate of absenteeism and attrition. On the other hand the reward system gives employees peace of mind and increases their self-confidence (Roussaeau and Greller, 2006).

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1.3. Company Background

This research report focuses on assessing the benefits of pay and other reward system in the organization. Pay and reward system if well aligned with the organization it can bring in various advantages for the firm, for the enhancement of an organizational performance motivating employees with financial and non-financial benefits are necessary that could ultimately increase the employees routine work and could perform in a better way to achieve the organizational aims and objectives (Lucero and Allen, 2006).
In this respect one of the organizations has been chosen by the researcher to assess the effectiveness of the reward system in the company. The company selected to carry out the research is the Alliance Boots which was formed in the year 2006 by the pharmacy group Alliance UniChem. It is a multinational company which deals in three main areas i.e. Pharmacy, Beauty and Optician. Alliance Boots is present in more than 25 nations that include various associates and joint ventures. The company in the early period was formed in 1849 by Mr. John Boots a herbalist. The company is having around 1, 16,000 employees associated with it and operations are mainly carried out under the Boots and Alliance Healthcare Brands (Alliance Boots Press Releases, 2012). The executive chairman of the organization is Stefano Pessina who handles the entire work of this group.

Alliance Boots provide best services to their customers and regularly update its sales plan and verify its prices with other competitors so that customers can avail what they desire. The company always introduces numerous types of promotional tools which are having value for money for the customers. This organization has grown so much only with the help of its valuable and brilliant employees whom it considers as its original assets. In Alliance Boots priority is given to employees and are equally rewarded with the work, people in Boots are given equal opportunity to grow and nurture themselves in the organizational atmosphere. These programs are being designed by the company as it helps in enhancement of business performance and the reward system leads in the employees towards best performance and firm gets the competitive advantage from their faithful customers (Alliance Boots, n.d).
Alliance Boots focuses a lot on the betterment of its employees and consider its people as the heart of the organization. The company provides several benefits to its employees like health and safety, equal opportunity, respect, dignity and numerous benefits of employment. Alliance aims that its entire people will be treated with equal respect and dignity; people are fairly rewarded for the individual efforts and respects diversity. This organization aims to provide the required encouragement and a chance to develop their own careers with no discrimination on the basis of caste, color, age, gender, nationality and belief (Carraher, Gibson and Buckley, 2006). Every employee in this organization is accountable for maintaining and applies the policy of equal opportunity in the place of work.

1.4. Research Aims and Objectives

The main aim of the research is to analyze the impact of pay and other rewards on organizational performance in Alliance Boots. To achieve this aim some of the objectives that have been designed for research are as below;

  • To study about the organization under research ‘Alliance Boots’, its functions and processes.
  • To study the various factors which motivate employees to perform in a better way.
  • To identify various factors which cause employee attrition in Alliance Boots.
  • To evaluate the impact of pay and reward on company’s strategic goals.

1.5. Research Methodology

Research methodology is the method that relies on the work performed and aims to enhance the skills and ability to develop and design new functions; it is mainly used to carry out any survey or research for a specified topic of research and uses the set facts and figures. Suitable selection of research methodology aids in the assessment of the research problem in a functional manner. In this report the researcher will be using both the primary and secondary method to collect the most suitable outcome of the issue. In order to have the secondary data different articles, journals, published annual reports of the organization to know about the different benefits of pay and other benefits in general and how the company Alliance Boots manages to derive the best from its employees through these reward systems (Jonker and Pennink, 2010).
Moving on further in this research the researcher will be using the primary data to collect the feedback from the employees whether they are satisfied with the organizational reward and pay benefits or not. To collect the primary data the researcher would conduct an interview among the employees of the organization and some of the respondents would be selected from the planning and human resource department of alliance Boots. For this a sample of 30 respondents will be taken through convenience sampling method and a questionnaire will be distributed among the respondents to attain their feedback. Data accumulated will be analyzed on the basis of qualitative and quantitative measures, attained results will be depicted through graphs and diagrams and discussions will be done to get the qualitative results (Kirsch and Sullivan, 1992).
This research will enable the researcher to get a vivid image of the area of research and the results could be attained in the desired manner. Further, the researcher will make an attempt to finish off the research within specified time period and all the responses that has been derived during the process of research would be kept confidential and will be issued in public in any case (Goddard and Melville, 2004).

1.6. Structure of the research

Every research work should be accomplished with a proper structure and format and should be depicted in a series of manner. This research report will be carried out in a sequence of chapters as mentioned below:

Chapter 1: Introduction – This chapter will provide a brief idea about the background of the research and the aims and objectives of the survey would be discussed in this section of the report. A short description of the research methodology would also be aligned in this section that will define the ultimate of process of research, rather than this a small discussion would be done in the area of research and a short description of the company wherein the survey would be performed.

Chapter 2: Literature Review – It will be the second chapter of the dissertation and will give in a detailed idea about the topic of the survey would be explained. In this research report the various benefits of pay and other reward systems would be analyzed in this section and in this context different article, scholarly journals and published authors work will be reviewed in this part of the report (Komoche, 2006). The literature review section in this report would also discuss about the company i.e. Alliance Boots different programs of pay and other benefits for its employees and how it manages the big workforce.

Chapter 3: Research Methodology - This section will represent the diverse research methods that are being used during the process of research and methods to assess the accumulated information. It will also provide the distinguished approaches and philosophies that will be used in the survey and the validity and reliability of the study. Other than all this diverse factors will also be taken into account like ethical issues, limitations of the research etc, all this will enable to maintain the accuracy of the collected data (Jonker and Pennink, 2010).

Chapter 4: Data Analysis and Findings – In this part of the report all the results derived from the surveyed results would be complied and discussed and for future sustainability of the results diverse concepts and approaches from the secondary data would be aligned to ascertain the most significant results.

Chapter 5: Conclusion and Recommendations – This will be the last section of the report and would explain about the overall topics covered in the research report and will also define about the results that have been attained from the assessment of the data. In addition to this some valuable suggestions and information will also be projected in front so that the data could be used in further research and will also enable the organization to get some useful information from the performed research, in order to implement future plans and policies of the survey. Hence, this chapter will provide in a detailed discussion of the entire report and some beneficial recommendations to avoid the contingency situations.

1.7. Conclusion

Employee reward and recognition are considered a powerful tool for motivation; the reward could be in the form of financial or non-financial benefits. The pay and other benefits could be given to employees in the form of financial benefits, appreciation, recognition and appraisals. By giving the employees a positive gratitude in the place of work the attrition rate could be lowered with this strategy and individuals will feel motivated to attain the higher level of performance (Storey, 1995). To conclude it can be said that in today’s era people are encouraged to work by various essential fundamental factors and will perform in a positive manner to attain the organizational aims and objectives.

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