HRM human resources management Essay Example | Topics and Well Written Essays - 1750 words

HRM human resources management - Essay Example The introduction of the composite pay deal and performance bonus is the most important factor underlining BMW’s success. The performance bonus has been specifically linked to the generation of new ideas to harnass worker creativity. For instance workers are required to come up with three ideas to save 800 pounds each in order to qualify for an annual bonus of 260 pounds (Case). Vroom’s Expectancy Theory highlights the importance of rewards – including extrinsic rewards such as bonuses – in enhancing motivation of workers (Vroom, n.d). Linking increased pay and a bonus specifically geared to reward performance in terms of achieving production targets is conducive to improving employee performance. Moreover, harnassing worker creativity is also likely to provide the intrinsic rewards that help to achieve a high motivation and satisfaction quotient on the job according to Vroom’s theory. Workers will feel that they are making a useful contribution whic h helps to enhance motivation and interest on the job. The second most important feature of the HR package is the overhaul of the flexible working system. The HR practices in this aspect were such that they had to work their way around restrictive covenants and secure increased labor during peak production periods while paying salaries during off production periods. The rearrangement of the working schedule includes the following features: (a) scrapping of the contract in favor of a working time account (b) introducing a working time account (c) the facility to â€Å"bank† time during high production periods (d) overtime to be cashed later for extended holidays (Case). The system was started with every worker coming in with minus 200 hours each, however the reasons for the changes, as stated by Ernest Baumann, head of BMW’s Human resources Department is to â€Å"give associates a greater control over their time.†(O’Brien, 2002: Mar7). The flexible worker schedule and the facility to bank hours and control