The paper 'Reward Environment in Farah Company" is a good example of a management case study. Reward management is an overall strategy taken up by companies and businesses to make its payment and reward system more effective and efficient. In this case, the rewards apply for either monetary or non-monetary items. A proper reward system focuses on recruiting and retaining talented employees. 1 Analysis tool for reward management SWOT and PESTLE are the most reliable tools that can be used in analyzing the reward environment and context in an organisation such as Farah Company.
There is varied context on the entertainment industry business environment this is evident due to the Contingency theory taken up in the entertainment industry where Farah Company falls in (Thorpe and Homan 2000). The reward practice adopted by Farah is determined by the appropriate issues in different circumstances. Thus, the company’ s reward management is dependent on the ‘ structural factors’ of the company. Different organisation structures, in this case, influence the way the organisation reward system is carried out. This issue is backed up by Poole and Jenkins (1998) who embassies on the huge impact that structural factors have on an organisations reward system. Farah company reward management system also embraces convergence consequently ensuring that the reward system works perfectly for the organisation despite it either being a private or public company. Organization size is another crucial context in reward management; therefore, Farah being a relatively medium-size company, its reward management system depends on convergence.
Farah company reward management hence works perfectly whether the organisation is in the public or the private sector. The organisation's employee’ s skills levels and competencies are the other major influencers of Farah on it taking up reward management. Context of reward environment in Farah Company PESTLE and SWOT analysis of the Farah company can, therefore, be used in effect as an audit tool for the organization’ s reward environment.
These analyzing tools can be used to deduce information that is used strategically in the organisation’ s strategic decision-making process. With the assumption that if Farah can be able to audit its current environment and assess potential changes, it will be better placed than its competitors to respond to changes. Farah embraces the internal and external factors in improving the company’ s reward management.
In this cased the company conducts an internal company survey to come up with essential data and feedback especially on compensation, benefits, engagement activities. On the other hand, the company also has a bi-monthly strategy meeting which focuses on listening to the employee’ s feedback and opinions. In this meeting, the employees are given a chance to raise their concerns which are addressed in the second meeting in that month. The other internal factor considered by the company in order to foster its reward management is carrying out of turnover reports and exit interviews. These measures are taken up to point put at the reason behind their exit from the company and the reason why they have chosen to shift to another competitor company. Farah has also used the external factors in fostering its reward management system.
In this case, the company frequently uses the services of external consultants such as Mercer and Hays in the collection of compensation and benefits data. On the other hand, the company bi-annually uses the services of another external party that is an expert in the collection of compensation and benefits data of competitors companies which are compared to Farah’ s. The evident context in Farah company’ s reward management entails; regional variation, legislation, occupational classification and work-life balance.
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