Icon College Unit 24 Human Resources Development-Btechnd


LO3 how to reward employees in order to motivate and retain them

P3.1 Assess the link between motivation theory and its reward with an application on Harrods Case study.

Rewards are way in which the company can motivate and keep the employee satisfied within the organization. They may be of majorly two kinds: Financial Rewards and Non-Financial Rewards. They enable the employee in understanding the link or gap that exist between his performance and the kind of potential that he can input for performance.

They help in developing a clear, transparent and concise system for the motivation, performance and personal development of all the employees equally within an organization. Rewards determine the level of performance that has been achieved by employees and their seniors.

The four Ps achieved with rewards are:

  • Punishment – It decides on the action plan that has to be followed for the non-performers.
  • Pay – It pays the financial and non-financial rewards and recognition to all employees.
  • Praise – Based on the performance feedback, rewarding and awarding the employees.
  • Promotion – Giving a path and chart for success and growth of the employees.

P3.2- Research and Evaluate the process of job evaluation and other factors determining pay with special reference to Harrods as your scenario.

Job evaluation is the technique where in the experience; qualification and the profile with the pay are matched for the various categories of people. The major objective is fulfilling a gap and providing equal opportunity to all the employees so that they could apply their full potential and convert it into performance.

The analysis of job evaluation helps in describing a job in all aspects. It makes a useful comparison of the various jobs. There are various steps involved in job evaluation:

  • Description of Job in terms of the kind of person required with qualification and the experience in him.
  • Factors of relation are used in making the comparisons among the various positions.
  • The process of decision making and inclusion of the job involves structure of the job
  • Determination of the correct salary and wage.

Methods of Job evaluation

Quantitative Methods

  • Schedule for assessment.
  • Comparing the various factors.

Qualitative Methods

  • Comparison (Gould, 1998).
  • Ranking
  • Classification & Grading and of job.

P3.3 – Assess the effectiveness of reward systems in different contexts with your references to Harrods

The effectiveness of reward systems with references to Harrods are as follows

  • The level of achievement of the organizational objectives.
  • The level at which strategies and processes have been successful and developed.
  • The Recruitment of right fit for right profile at a right salary.
  • Retention and the attrition rate of the company.
  • Level at which the employees are motivated and encouraged to perform.
  • Strong processes and systems.
  • Growth and development of the financials of the company.
  • Legislative processes and regulations for the company.

Advantages of Job evaluation

Job evaluation is beneficial to an organization in following ways:

  • Removing the inequalities within the organization.
  • Benchmarking the company strategies with that of its competitors.
  • Introduction of technological and manpower development within the organization.
  • Introducing satisfaction and motivation among the employees thereby increasing the retention rate.
  • Developing cordial relation between employee and management.

P3.4 – Examine the methods adopted by Harrods to monitor employee performance. Comment with any suggestions

Various methods by which a mapping could be done on employee performance are:

  • The growth and success of the organization.
  • The level and extent of the customer loyalty that is observed for the products of the company.
  • The extent at which the deadline and timelines are achieved by the employees.
  • Passion, encouragement and motivational levels among the various employees.
  • Creativity, innovation and development seen in employees.


LO4 Know the mechanisms for the cessation of employment

P4.1 Identify the reasons for cessation of employment with special reference to Harrods in General.

There are various reasons that are responsible for the cessation of employment with special reference to Harrods:

  • The performance of the employees in terms of their targets and the objectives that are being met.
  • The gap that is seen in the potential and performance which is not getting fulfilled for a longer time. In case the employee is not performing then he will not be kept within the organization.
  • Voluntary Cessation by asking for retirement before the stipulated time period. This may be done at the wishes of the employee himself.
  • Involuntary as per the rules and policies of the organization. This may be layoff when the company may not be operating in profits and running into loses (Huselid, 1995).

P4.2 – Research and Describe the employment exit procedures used by Harrods and compare it with any other organisation of your choice.

HR department at Harrods takes a special care of the people in terms of the exit procedures. It formulates the plan and strategies whereby it develops the formats and takes the physical interviews of the people in order to know the reasons that they have been leaving the organizations. The various phases in cessation process are:

  • Determination of the objectives and strategies of an organization – This way the correct policies, strategies and the objectives of the company are planned, designed and evaluated with the correct implementation and enforcement.
  • Analysis of the situation in terms of the needs, their fulfilment, demand and supply of the manpower.
  • Assessment of the external and internal human resources – It helps in the correct determination of the various internal and external processes and the procedures that have to be followed by the company.
  • Determination of the action plan – There will be planning and designing of the action plan that has to be followed for the process.
  • Elimination of gaps between supply and demand – When the gaps would be met then the needs and requirements of the organization would be surely met.

The company basically does this in two ways:

  • Circulation of the form and format for exit – This form mentions the reason for change, exit from job and what problems the employee faced during his employment within the organization. This form is analysed and determined to find out is it that employee has been living the organization under some pressure or problem (Davenport, 1998).
  • Physical interview with immediate superior and the HR department – This is the exit interview that all have to face so that a discussion could be carried out on the ways in which organization can improve its systems and processes as per the strategies and objectives of retaining and developing of talent within the organization.

P4.3 – Consider the impact of the legal and regulatory framework on employment cessation arrangements with special reference to Harrods.

There are a lot of rules, regulations and the legal framework that has been developed by the government and the labour authorities that set the rules and regulations that have to be followed during the cessation of an employee.

These regulations have a lot of impact:

  • Maintaining of the processes and practices of cessation – As per the various regulations and even the company policies, there should be adherence to the various systems, processes and the practices.
  • Planning for the strictness in the regulations so that employees get equal rights and opportunities after cessation. This helps in giving equal rights and the opportunities to all employees and its related stakeholders.
  • The company may not take benefit of the situation by paying lesser to the employees.
  • Ensuring Fair dismissal process – Cessation should always be followed by a reason rather than just terminating the employees without any reason (Boxall & Purcell, 2003).
  • There is no harassment of an employee – Employees have to be given enough notice as per the regulation and the legal laws. They should be paid for various components that are applicable on the tenure of job that they have been fulfilled within the organization.
  • There is no destruction to the Company’s property – Along with employee, the company should not suffer from any kind of problem in terms of the manpower and financial loses.
  • There is keeping of the timeframe of the employment – The amount of time or the period that is applicable as per law should be spent by the employee within the organization.


Human Resource is the most important asset for an organization. The companies in service sector have nothing to show except the talent, skills and competencies of their manpower. HR has a lot of functions like: recruitment, selection, training, engagement and learning and development of an employee. It has been able to fulfil all its functions with the help and support of the management at Harrods. The major components of the organization are: People, place and purpose. Harrods has developed its HR management and run it as a strategic partner rather than its functioning as a personnel management function. It has completely transformed its processes policies, and the systems to encourage the retention of the talent and the skilled manpower. Job Evaluation determines the value of job for the purpose of differentiating it and benchmarking the differentials that exist in salaries of various employees. Job Description and Specification determines the actual working and the kind of qualification, experience and attributes that are needed in an individual for a specific kind of job and its performance. Reward System is a way by which all the employees could be motivated, encouraged and asked to perform. It creates a culture of competition and performance. The rewards could be in form of financial rewards and recognition that may be given to the employees for the kind of performance that they have shown in their activities and tasks. There have been many strategies and techniques that are used by the company so that the right talent is recruited, selected and even retained within the organization. This is done because in the end if the company would be ending up in the recruitment of the wrong talent then the company may not be successful and growing at a rate that has been forecasted. In the nutshell it could be said that traditional PM has taken a new shape of modern HRM which is managed with the help of various new and advanced techniques, processes, procedures and policies. It has introduced the talent and even recognized the employees for showing their talent and performance for the company. HR has been working as one of the strong wings on which the company flies and performs well. HR has given a new design to the companies and they have been climbing the ladder of success (Schuler & Jackson, 1987).


Schuler, R. S., Jackson, S. E., & Storey, J. (2001). HRM and its link with strategic management.

Hansen, G. S., & Wernerfelt, B. 1989. Determinants of firm performance: The relative importance of economic and organizational factors. Strategic management journal, 10(5), 399-411.

Ferner, A. 1997. Country of origin effects and HRM in multinational companies. Human Resource Management Journal, 7(1), 19-37.

  1. Boxall, P. 1993. The significance of human resource management: a reconsideration of the evidence.International Journal of Human Resource Management,4(3), 645-664.

Legge, K. 1989. Human resource management: a critical analysis. New perspectives on human resource management, 19-40.

Gould, J. M. 1998. Understanding organizations as learning systems. The Strategic Management of Intellectual Capital, 121.Order Now

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