Thomas Cook – Human Resource Management

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HR Management

3b: Importance of Line Managers:

Line managers are very important in Thomas Cook because they are directly involved with the company’s employees, and clients. They drive the daily operations of the company including sales, servicing, etc., while managing the staff to optimize performance. They are crucial to seamless running of the company’s store operations because they are the ones who overlook the entire business process.

4: Laws & Legislations

Name of the Law	Date First Implemented	Date Latest Version
Equality Act	2010	2013
National Minimum Wage Act	1998	2014
Disability Discrimination Act	1995	2005
Health and Safety at Work etc. Act	1974	2015
Equal Pay Act	1970	2011
Data Protection Act	1998	2015
The Immigration (Restrictions on Employment) Order	1996	2014
Work and Families Act	2006	2015
Race Relations Act	1968	2012
Employment Relations Act	1999	2005
Employment Act	2002	2008

1. Section 3: Reward and Motivation

1: Reward System and Motivation Theory

1a: Rewards:

Rewards refer to monetary or non-monetary incentives that are given to employees in response to a particular favorable behavior that is to be reinforced. This is based on the premises that behavior is a function of its consequences (Dessler, 2000).

1b: Components of a Reward System:

According to Armstrong (2002) the reward system comprises of financial as well as non-financial rewards that contribute towards the total remuneration. Financial reward are those that include fixed pay, variable pay, and other benefits. Non-financial rewards are those that involve an employee’s personal growth, achievement, autonomy, and the like.Human Resource Management

Armstrong (2002) identifies the following as the main components of a reward system:

1. Processes: The processes allow for measurement of the value of jobs, individual contributions, and the various ranges and levels of benefits to be given to employees. The processes comprise of concepts such as job evaluation, performance management, and so on.
2. Practices: Practices include use of financial and non-financial rewards in order to motivate employees. Financial rewards include base salary, variable pay, allowances, graduity, pension, annuity, and other similar financial perquisites. On the other hand, non-financial rewards are concerned with individual employee engagement, effective management, autonomy, recognition, and opportunities for growth.
3. Structures: Structures link pay and benefits to specific position’s relative value in the company. For example, a good performance evaluation leads to a greater compensation level.
4. Schemes: Schemes define how individuals are rewarded, that is, individually or as part of a group or team, and so on.
5. Procedures: Procedures ensure operational efficiency, and agility in terms of maximizing value.

1c: Reward System at Thomas Cook:

Human Resource Management Thomas Cook is known to reward its customers generously. It offers quite a lot of perquisites to its employees which comes in the form of discounted trips, holiday allowances, and exclusive deals. Apart from holiday packages, the company also rewards its employees based on their role. Some examples of the rewards include bonuses, life insurance coverage, medical insurance coverage, and vehicle allowance.

If the employees perform exceptionally well at their job the company also rewards their hard work through “From The Heart” which is a group-based recognition program that aims at thanking employees for their contribution (Benefits, 2015). The company offers many benefits to its employees who have worked for the company for long. The contributory pension scheme is for such employees. In this scheme, a figure equal to 9 percent of an employee’s base salary is matched to their pension by the employer. Under “My Choice” benefit scheme the employees can trade (buy or sell) holidays or purchase retail or vouchers (Benefits, 2015). Employees are rewarded generously for their performance and contributions. This lets them know that they are valuable part of the company and that their services are recognized.Human Resource Management

1d: Motivation:   

Motivation is derived from motive. Motive means a reason for doing a particular thing. Therefore motivation refers to the factors that influence a certain behavior (Armstrong, 2006). Motivation consists of three elements: (1) direction, (2) effort, and (3) persistence. Motivation can be understood as a behavior that is directed towards a goal.

1e: Motivation Theories that apply to Tesco:

The two-factor theory of motivation applies very well to the work environment of Thomas Cook. According to the two-factor model, job satisfaction is influenced by two factors, namely hygiene factors and motivator factors that relate to intrinsic and extrinsic motivators. At Thomas Cook each employee has a great level of autonomy in their operations.

The company values orient employees towards the core ideology of the business which is to deliver customers the highest level of service and a great experience. As such, employees at Thomas Cook are highly engaged and intrinsically motivated by the work itself rather than monetary rewards such as pay raises, etc. (Armstrong, 2006).

Reinforcement theory also applies to Thomas Cook because the compensation plans like bonuses and “From The Heart” programs act as a reinforcer to strengthen positive behavior. Bonuses are generally awarded when an employee reaches a particular objective or target such as sales target or does something outstandingly. As such, the bonus acts to reinforce the positive behavior.  The bonus acts as a reward for exhibiting an outstanding performance and employees feel recognized for their contributions which motivates them to do better at their jobs.

Linking Reward System and Motivational Theories at Thomas Cook:

Thomas Cook links motivational theories with reward systems to keep its employees motivated. Its compensation plans such as raises and bonuses apply reinforcement in order to strengthen favorable behavior such as achievement of sales targets, etc. In addition its workplace practices such as job design is such that it provides intrinsic motivation to its employees by allowing a great level of autonomy and an enriching experience while on the job. “Energizing” and “inspiring” employees are some of its core values and the company’s culture strongly supports and rewards employees’ creativity.

Approach:

The approach to linking reward and motivation is that reward schemes should translate towards greater employee performance. This is only possible if the employees are intrinsically motivated to perform better at the workplace.

2: Job Evaluation

2a: Job Evaluation:

Job evaluation, according to Armstrong (2006) refers to assessment of relative worth or value of a job within an organization. Job evaluation is carried out either analytically or non-analytically to determine the relative worth or size of a job.

2b: Job Evaluation Methods:

• Point factor rating: Point factor rating literally involves division of a job into factors that are understood as contributing to the value of the job. Each factor is then divided into various levels after which a score is allocated to the factors. Jobs are assigned a score based on the factors.
• Analytical job matching: This method also looks at jobs based on different factors however the assessment is made according to role profiles that are matched with level profiles so as to determine the best job.
• Non-analytical method: In this method, a job is compared to another job so as to rank and benchmark the jobs relative to each other.

2c: Job Evaluation for Thomas Cook:

I will follow non-analytical job evaluation method to determine the relative value of a job. In this way, a role will be compared to another within the organization identifying classifications and their appropriate pay scales. In addition, the jobs will be compared with other such jobs in the hierarchy to assess the importance of a job as part of the entire business…