5. Recommendations and Rationale on Motivational and Reward Systems
Two features are observed relative to the motivation and reward system at Alliance and Leicester. First of all, the motivational strategies do not include training programs within the incentives offered to the employees, but treat it as a different category. This approach should be addressed in the meaning that training ought to be presented as an incentive, as an opportunity to gain professional knowledge and set the path for future professional formation. In contrast with being offered training as an exclusive means of promoting organizational goals, this new approach would offer the employee a sense of belonging to the organization, being cherished, while also increasing his sense of stability for his future.
The second recommendation refers to increasing the levels of transparency relative to the reward system. Premiums and bonuses are generally scarce at Alliance & Leicester and even when they are awarded, the criteria used in setting them in undisclosed. This often generates employee frustration, lack of motivation, low morale and, as such, low performances. Additionally, it could easily materialize in high levels of employee turnover rates, which would in turn metamorphose into increased costs with replacing and retaining the employees.
6. Budget and Evaluation Methods
The greatest part about the previously made recommendations is that they stand increased chances of success, while requiring minimal financial investments. In both cases, change comes not as an investment, but as a new approach, a new mentality and a new way of treating the human resource. Specialized assistance could be brought in with the aim of sustaining the company make its transition to higher levels of transparency and a new approach to organizational behavior.
In terms of the methods used to evaluate the efficiency of the proposed measures, it would be advisable to issue questionnaires to inquire about the levels of employee on-the-job satisfaction, their future prospects, the sense of future stability or the levels of appreciation they feel on the part of the employer. Additionally, it would also be useful to assess the HR figures relative to absenteeism and employee turnover rates. Lower levels on these indicators reveal the success of the enhanced rewarding and motivation strategies.
Appendix -- Background Information on Alliance & Leicester
Alliance and Leicester has been a constant presence within the English financial sector starting with middle nineteenth century. The organization has undergone a series of changes, but has managed to maintain its position as an undisputable leader of the national market. The financial services organization can trace its roots back to 1852, with the foundation of the Leicester Permanent Benefit Society. The following century, namely in 1985, the company merged with the Alliance Building Society to form a new entity called Alliance & Leicester. The headquarters of the financial organization were set in Narborough, Leicestershire. Five years into this merger, the new organization acquired Girobank, a subsidiary of the United Kingdom Post Office. In more recent times, Alliance & Leicester was itself purchased by the Spanish financial group Santander. The endeavor led to the delisting of the UK organization from the London Stock Exchange. This year, on the 27th of May, Alliance & Leicester announced it would change its name to Santander -- this would be completed starting with 2010 (Official Website of the Alliance & Leicester Group, 2009).
Today, Alliance & Leicester offers its customers a wide array of financial products and services, including loans, mortgages, savings, investments and insurance and employs little fewer than 10,000 individuals. Despite the company's strong commitment to satisfying its vast palette of stakeholders, 2008 has proven a difficult year, due to two elements -- the internationalized economic crisis and the acquisition by the Santander Group. As a result, the financial outcomes of the UK-based company suffered drastic reductions. For instance, the total operating income decreased from £1,426 million in 2007 to £824 million in 2008. Fiscal year 2008 ended with a net loss of £918 million, as opposed to profits of £296 million in 2007 (Alliance & Leicester 2008 Annual Report).
Kanawaty, G., 1992, Introduction to Work Study, 4th Edition, International Labor Organization, ISBN 9221071081
2004, Alliance & Leicester Selects QA for Management Training Service, Training Press Release, http://www.trainingpressreleases.com/newsstory.asp?NewsID=945 last accessed on September 7, 2009
2009, Alliance & Leicester Salaries in United Kingdom, Glass Door, http://www.glassdoor.com/Salary/Alliance-and-Leicester-Salaries-E7754.htm last accessed on September 8, 2009
2009, Leicester Recruitment / HR Jobs, Gumtree, http://leicester.gumtree.com/leicester/54/44436054.html last accessed on September 7, 2009
2009, Official Website of the Alliance & Leicester Group, http://www.alliance-leicester-group.co.uk last accessed on September 7, 2009
Alliance & Leicester 2008 Annual Report, Retrieved from http://www.alliance-leicester-group.co.uk/html/investor/annual_report.asp# on September 7, 2009
Alliance and Leicester Jobs -- Alliance and Leicester Recruitment, Your…