Human resource management is a vital process in an organization as it contributes a lot toward the growth and achievement of the company’s goals. It involves hiring and awarding jobs to workers, managing the welfare of the employees, and rewarding them in terms of remuneration (Alabdulla et al., 2022). Qatar National Bank is one of the most prominent organizations hence the need to embrace the role of HRM. Through human resource management, the bank can make effective strategies for hiring new employees, assigning duties, and paying salaries to workers (Salman & Olawale, 2021). This report will focus on the reward system as one of the critical roles played by the HR team when hiring. With the recent changes in the human resource environment, Qatar National Bank needs to improve its reward system (Supriyatni, 2020). An improved reward system will motivate the employees to work hard. The reward system is central to the human resource management function involving attracting talented individuals, motivating them, and retaining those that best fit the organization (Pereira et al., 2020). An analysis of the best reward packages, such as the HR audit in this report, can be used by the bank to upgrade its reward system.
People and organizational impact on the approach to the reward system
The reward system involves attracting talented people to an organization and formulating strategies to maintain them. Actions taken by people and organizational performance significantly impact the reward system in HRM. In Qatar National Bank, the reward system is affected by the employees, the bank manager, and the human resource team, and this can impact the organization either positively or negatively. A well-structured reward system can be reflected in the organization when there is high labor turnover high level of production attitude of the stakeholders towards work (Kalyani, 2021). Human resource officers can impact the reward system by increasing labor turnover and treating the employees fairly. The approaches of reward systems that an organization can adopt are comprised of intrinsic versus extrinsic rewards, financial versus non-financial, and membership versus performance-based rewards (Alabdulla et al., 2022). The reward system of Qatar National Bank can improve when the right approaches to HRM are put in place.
Through intrinsic reward, an organization can positively impact the reward system by providing impressive job titles to employees and creating a better environment for career growth. Employees can feel the value of working at Qatar National Bank when motivated by the management based on their performances. Non-financial rewards are essential in an organization as it helps employees feel the value of working with the company (Kalyani, 2021). Qatar National Bank, therefore, can impact its reward system by offering gyms to members, gift cards, and parking spaces. The employees are motivated by being paid good financial incentives (Paais & Pattiruhu, 2020). The performance of the employees at QNB can also be improved when the bank provides benefits to the reward system through the upgrade of the bank’s office furnishing.
The business context of the reward environment
A rewarding environment motivates people to work extra hard and delivers the best to the organization. The HR manager must link the salary payments to employees and work performance to execute an excellent businesses-based reward environment effectively. In the business environment, a reward system can be explained in monetary, non-monetary, and psychological payments, which the organization provides in exchange for the services/ work performed (Miao et al., 2021). The reward environment that is well linked up with the business needs to have components of both the internal and external environment hence the concept of SWOT and PESTEL analysis.
Strengths of the organization in terms of generating good profits/ returns and having a good employee relationship will create a conducive environment for the reward system. When the employees are motivated by the work environment at Qatar National Bank, it will be easier for the people to meet their targets, which acts as a driver of the reward system. Furthermore, the opportunities presented by the business environment, such as technology, act as a driver of the reward system. With the advanced technology, the Qatar National Bank will be better positioned to create a good reward system environment for their employees. Advanced technology promotes communication alongside improving employees’ work efficiency (Jamal et al., 2021). However, technology can present itself as a threat when the business and HRM team of Qatar National Bank cannot meet the new technological advancements in the work environment. Good leadership in the organization will also create a sound reward system for the employees. People would like to work in an environment where they have confidence in their leaders. A good leader will promote effective communication and assignment of duties to employees hence minimizing confusion at the place of work.
Other external factors that can affect the HRM system of Qatar national bank comprise the economic, social, political, legal, and environmental factors. The economic factors contribute a lot to how much the bank must pay the employees. When the country’s economy is undergoing inflation, the human resource must work with the economist to determine the amount which can be paid. The social lives of the community affect the management of workers in many institutions. Therefore, the QNB HRM has a responsibility to ensure that all the social values, culture, ethics, and religion are respected at the institution, and no one is discriminated against based on their social values. The human resource team of the bank must also benefit society by hiring employees who live in Qatar, which will serve as a corporate social responsibility. The political and legal factors highly affect the HR systems of many organizations. Any strategy used by the human resource team of an organization must comply with the legalized HR rules provided by the Qatar Government.
Ways in which benchmarking data can be gathered and measured to develop insight
Benchmarking involves the aspect of an organization comparing its reward system standards against the external criteria. Through benchmarking, organizations can get new HRM skills that are effective in promoting the reward system. Therefore, Qatar National Bank can study the work environment of other commercial banks globally to know how the employees are handled and paid and the conducive work environment for the employees (Govender, 2021). When conducting benchmarking, the data is collected by first selecting the subject to benchmark. In this case, the subject will be creating a good reward system/ working environment for the QNB’s employees. Therefore, the management will select other commercial banks that outshine QNB as the target for data collection.
Qatar national bank’s human resource management team needs to analyze its current status in terms of employees’ satisfaction. Therefore, the team will collect from the targeted company and compare it against their operations. Data from the benchmark will be measured using key business metrics and practices by comparing the HR performance of Qatar National bank against other commercial banks. The marketing team conducting benchmarking will create a report structure comprising fundamental reward system mechanisms, which will be used as a comparison with other banks. The existing gaps and weaknesses are highlighted in the consolidated report to determine effective ways to be used in making a better working environment for the employees (Rostamzadeh et al., 2021). The benchmarking data relating to the reward system can be collected through questionnaires, intensive interviews with other companies, and casual conversations with the HR team from other commercial banks. Effective data analysis and measurement tools can be adapted to analyze the collected data.
Develop organizational reward packages and approaches based on insight
The advancement in technology creates a gap for organizations to develop techniques that they can use in management. Some of the recent human resource software can be installed by Qatar National Bank to boost the reward system. One of the best HR software which the bank can adopt is Bitrix 24. This is one of the leading HR software, which contains a number of packages that help in boosting the reward system (Volik & Kovaleva, 2021). Bitrix 24 provides a platform whereby an organization can store data in the cloud, which helps reduce paperwork in an organization. Some of the packages offered by the software comprise the HR audit, advisory services, policies and documentation, and crisis management.
The human resource team in the bank will make use of the software to audit data relating to HR, such as payroll and the hiring process. The advisory services provided by the package help in the process of training, educating, empowering, and rewarding all stakeholders in the bank hence contributing positively to the reward system (Tavares, 2021). The software will also provide a package that helps provide the information concerning hiring, firing, and managing the present employees in an organization. Therefore, when hiring, the candidates will have to key in their data in the system, which helps keep the data in order.
There are several types of pay structures that can be used as reward structures in an organization. The Qatar National Bank can incorporate its HR software, Bitrix, with a broadband salary structure. Broadband salary packages are much more flexible as an organization consolidates pay grades into fewer structures with wider payment ranges. Qatar National Bank has many workers, and the broadband salary package will help pay the employees. The flexibility of the broadband salary payment structure will help the HR team of QNB to plan and manage their time effectively and easily. Workers will also get motivated to be paid on time hence working harder to achieve the best for the bank.
Different approaches to performance management
Performance management is the corporate management tool that the HRM can use to evaluate and monitor the employee’s work in the bank. The reward system of Qatar National Bank can be improved by adopting the best approaches which are used in evaluating our employees. The first approach is determining the goals of the workers and aligning them with the bank’s objectives. Through this, people will be working towards achieving the same goal hence improving the reward system of QNB (Zabeu et al., 2022). The HR manager should clarify the timeframe and output for different employees based on their job descriptions and roles.
The second approach is developing a plan to execute the set objectives. The HRM team will have to discuss the long-term and short-term needs of the bank with respect to the SMART objectives’ guidelines. The needs of the company should be prioritized based on the business needs and trends affecting the microfinance and commercial banks in the world. Thirdly, the HR managing personnel will take action by providing information on how the employees are responding to the reward system. The manager will then assess the performance of the employees by comparing them with the existing work schedule to find whether they have reached the target. Lastly, the employees can be rewarded using monetary or non-monetary rewards. Through this, the reward system of the bank will improve hence creating a good working environment for the employees. Furthermore, this will also create a conducive environment for the HRM team to practice their roles.
References
Alabdulla, M., Reagu, S. M., Kader, N., & Gad, E. (2022). Developing a gender sensitive women’s mental health service in Qatar: A rewarding challenge. Asian Journal of Psychiatry, 68, 102969. Web.
Govender, N. (2021). Hedge fund factorisation and benchmarking: Understanding hedge fund performance, benchmarking and the reward system for hedge fund managers. Open.uct.ac.za. Web.
Jamal, T., Zahid, M., Martins, J. M., Mata, M. N., Rahman, H. U., & Mata, P. N. (2021). Perceived green human resource management practices and corporate sustainability: Multigroup Analysis and Major Industries Perspectives. Sustainability, 13(6), 3045. Web.
Kalyani, V. (2021). EasyChair Preprint The Employee Engagement on Human Resources Information System Practice Through E-Learning Training. Web.
Miao, M., Saide, S., & Muwardi, D. (2021). Positioning the Knowledge Creation and Business Strategy on Banking Industry in a Developing Country. IEEE Transactions on Engineering Management, 1–9. Web.
Paais, M., & Pattirhu, J. R. (2020). Effect of Motivation, Leadership, and Organizational Culture on Satisfaction and Employee Performance. The Journal of Asian Finance, Economics and Business, 7(8), 577–588. Web.
Pereira, V., Neal, M., Temouri, Y., & Qureshi, W. (2020). Human Capital in the Middle East: A UAE Perspective. In Google Books. Springer Nature. Web.
Rostamzadeh, R., Akbarian, O., Banaitis, A., & Soltani, Z. (2021). APPLICATION OF DEA IN BENCHMARKING: A SYSTEMATIC LITERATURE REVIEW FROM 2003–2020. Technological and Economic Development of Economy, 27(1), 175–222. Web.
Salman, A., & Olawale, Y. A. (2021). Effect of Reward System on Employees’ Productivity: A Study of Guaranty Trust Bank, Ilorin Metropolis. Journal of Management and Social Sciences, 10(3). Web.
Supriyatni, R. (2020). Legal Perspective on the Supporting Role of Human Resource in the Islamic Banking Industry in Indonesia. International Journal of Criminology and Sociology, 10, 299–304. Web.
Tavares, C. (2021). Digital Lab Strategy: Enterprise Approach. Digital Transformation of the Laboratory, 265–273. Web.
