ndividuals can contribute to the company aims. Both Appraisal and PMS bring the employees and firm together ensuring efficient effective communication between managers and staff, again helping staff retention. PMS/Appraisal give more faith to workers, which should lead to lower staff turnover. Jane Wibberley (M&S) stated “M&S still have a high turnover of Retail Staff Advisors, despite using Appraisal methods”. However, she believed this problem was only regional and that intrinsic appraisal, encouragement and reassurance motivators were still vital in retaining and recruiting new staff. Reward Management is vital to the Managerial/Employee relationship with ideas of New Pay creating a 21st` Century Taylorist model. Beer (1984) sees “the design and management of Reward Management constituting one of the most difficult tasks for the general manager”. Richard Smith (“Paris”) stated, “The manager must co-ordinate a fair Reward Management package towards staff avoiding tension and conflict.” Being a Partner, he shares annual profits whilst Associates take a share of excess targets. All firms /organisations visited believed the HRM cycle link between performance, rewards and development vital. Managers must recognise economic and social factors affect the reward structure. Richard Smith pointed to 1980/90`s recessions where “Paris” offered only negligible rewards. The manager must ensure the Reward Structure ties in with the Company objectives, employees needs, with realistically attainable rewards (as stressed by Vroom`s Valence Expectancy theory) or else frustration /de-motivation occurs. Today`s economic culture dictates many Blue Chip (e.g. Financial Sector) firms are moving away from Performance Related Pay (e.g. Scottish Widows and Standard Life). They believe key staff remains more committed by standard salaries and bonus schemes. Marks & Spencer recognise Reward Man...
