To be competitive, organisations need to ensure that all their resources are functioning at optimal level. The most important of these resources being its employees. This is because their commitment can guarantee the attainment of organisational goals. Commitment can be attained by an organisation through the payment of internally and externally competitive remuneration and reward packages, that communicate the value of the employees to the organisation. Remuneration and reward strategies are a critical tool for organisations, as they can motivate, attract and retain high performing employees. The theories of motivation, such as, the equity theory, state that employees compare their compensation with that of others and that if they perceive inequity, can be de-motivated or leave an organisation. Therefore, it is imperative for an organisation to ensure that its remuneration and reward strategy is aligned with its business strategy, to ensure clear communication of goals. In order to prevent labour turnover and to ensure commitment and retention, the employer needs to offer total rewards, which include base pay, benefits, variable performance pay, recognition and an enabling work environment. These can be effective as they meet all employee needs as in Maslow‟s hierarchy of needs and ensure the satisfaction of the organisation‟s need for goal attainment. To gain more insight, an empirical study was conducted at the Nelson Mandela Metropolitan University. The results of the survey indicated that the NMMU‟s remuneration and reward strategy contained certain elements of the total rewards strategy. These are variable pay in the form of a service bonus and benefits plus based pay. This strategy seems to be ineffective to motivate and retain employees due to lack of clear communication and recognition. To motivate and retain its employees, the NMMU should improve its communication and engage employees and unions in defining remuneration and reward strategies through collaboration.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:nmmu/vital:9393 |
| Date | January 2011 |
| Creators | Bobi, Lungiswa |
| Publisher | Nelson Mandela Metropolitan University, Faculty of Business and Economic Sciences |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis, Masters, MBA |
| Format | xi, 124 leaves, pdf |
| Rights | Nelson Mandela Metropolitan University |
Page generated in 0.0022 seconds