Human Resource Management is management of employees in an organization. Different managers would use different methods, ways and strategies in managing their employees to achieve goals and objectives of the companies. Besides that, human resource management is sometimes referred to an effective practice and a ‘soft’ management skill within an organization. Managers would have to focus on their employees to ensure different people who work under the same organization are effective to achieve the organization’s goals.
Therefore, effective human resource management is vital in an organization to keep up with globalization. Motivation of employees is one of the important factors to facilitate organization’s goals and to compete with other organizations in the world. This is because motivation of employees will affect the productivity of employees directly. For instance, an employee of ABC Company, John feels that he is not appreciated by his boss, so he feels upset and lacks motivation complete his work. In John’s case, he feels that he is not appreciated by his boss and this means his boss pays less attention on him and leads him to feeling upset and reduces his productivity.
From this circumstance, we can conclude that every manager must understand that each employee has his or her own characteristics and each employee has different motivational needs. Business of an organization can actually grow to higher level if the managers of the organization develop a sense of understanding about the feelings of their employees and ways to increase the motivation of the employees. A proper reward system should be enforced for every employee. An incentive scheme plays an important role in an organization in order to motive employees increasing their productivity. Advocator of Incentive Theory claims that employees contribute to organizations in response to the ‘incentives’ of the organization provided. According to words of