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According to Mann, motivation is a key component of the development function in human resource management. Indeed, finding effective ways to motivate employees is an important and challenging role for any manager; regardless of the sector (2006). Kudlers total reward system is a type of reward system that comprises all aspect of the companys activities before compensations are paid. The reward system is so specific and narrowed that it gives employees all the information they need in order to get compensated and allow the company to focus their reward system to their stated mission and goals.
The total reward system ensures the retention of employees, motivate them and attract new employees to the company. According to Kudlers compensation philosophy, ” pay should be linked to performance, so that the base pay opportunities is indexed to the market median in each of the market Kudler serve” (2004). Compensation is given out to employees whose outstanding performance has been exhibited over-time in order to encourage them to keep increasing in performance.
Their compensation and pay grade are based on the responsibilities and requirements for each job position. Key position and hard-to-recruit position may receive higher compensations than other employees. Overall, the compensation system is based on a merit-pay system where employees who receive exceptional performance review ratings are eligible for higher increases in pay than those who are rated as satisfactory. Employees who received an unsatisfactory performance review will not be eligible for compensation.
Jaggi explained in his article that, there is evidence that team performance is a function of not only environmental conditions, but also internal conditions, such as communication, structure, and processing procedures (1979). Kudler recognize this condition and created a compensation program that recognizes team and overall store