HRM ASSIGNMENT 2: Individual work (Compensating Human Resources)

Due date: Sunday, 15th December 2019 at 10:00 AM

Name: Aysha Saleh - 201600767

Class:004

Tutor name: Khawla Zowayed

Purpose:

I have been chosen as a HR Consultant by “Hoşgeldiniz” restaurant to discuss the five elements of the
total reward model and total reward package. Also, in this report I will propose and recommend a
reward package for a position of a Graphic Designer at “Hoşgeldiniz” restaurant to the Director of HR.
This is to make sure that the reward package is aligned to the relevant external and internal factors that
the restaurant must take it into consideration while choosing and designing reward packages.

Company overview:

“Hoşgeldiniz” is a Turkish restaurant that offers a numerous type of Turkish food. The restaurant was
established in 2016 and it is located in Four-season hotel in Manama area in Bahrain, “Hoşgeldiniz”
means "Welcome" which makes clients fell welcomed while vesting the restaurant. The atmosphere of
the restaurant shows the Turkish culture, therefore, customers can try Turkish food and also feel that
they are in Turkey. BD 500,000 was invested to create the restaurant, over 55 employees were
recruited, the yearly turnover is BD10,0000 million.

Company strategy:

The restaurant strategy is to combine between providing customers an excellent and interesting
environment and food and to provide first class facilities and services. As well as, it concentrates on
maintaining quality and create a strong identity in the society. The main focus will be in marketing to
raise clients awareness in the community. the restaurant will direct all of It is tactics and programs to
the aim of explaining to people what the restaurant provide. the restaurant will provide attractive and
enjoyable environment with a very high quality and at expectation price. This restaurant will be the best
and famous restaurant in the country because of it’s exciting and friendly environment . so, the
fulfillment of the idea is the most important element of the plan. The restaurant aims to be the value
leader. The restaurants also aiming to expand to GCC and other countries.

Job purpose:

The graphic designer is responsible for corporate communications and corporate identity, give
organizations visual brand. For example, works on different type products and activities, like creating
website, advertising, posters, exhibitions. A graphic designer usually develops visual concept through
computer software or by hand. Also, they create the overall layout and product designing. Furthermore,
it important to have a graphic designer because every restaurant needs a logo that helps in expressing
the restaurant’s style. Also, creating a website is very important for any restaurant, because it provides
information about the restaurant. More importantly, menu design and developing a social media pages
which help in attracting customers and make it easier to keep contacting with the clients and promote
the business.

Total rewards approach:

According to WorldAtWork (2019), total rewards model shows the relationship between employers and
employees. it shows how strategic elements exchange has been developed between employer and
employee. Also, reflect how internal or external factors affect the elements that help any business to
attract, motivate, retain and engage employees. It is every single investment that any company make in
their workers.
Figure 1.1 shows external factors that influence rewards strategy (
WorldAtWork, 2019).

Recommendation of the total reward packages:

According to (Michael Armstrong and Tina Stephens, 2005), the elements of total rewards packages is
Transactional rewards which is tangible (financial) rewards is the outcome of transaction between
employers and employees. For instance, Base pay, Contingent pay and Employee benefit, all these are
external. The second element is Relational rewards, these rewards are intangible (non-financial) rewards
it is about the business environment. For example, “ the work itself, work-life balance, quality of
working life” (Armstrong & Brown, 2005). The work environment must provide essential rewards such
as training, learning and development, performance management and recognition which will increase
the company growth.

1.2 illustrate the two major elements of Total Rewards (Armstrong & Brown 2005,14).

Total rewards packages for Graphic Designer:

Recommendation Justification

Internal factor:

“Hoşgeldiniz” restaurant pays

the wages within the average
-salary salary in Bahrain. Therefore, the
company pays their employees
The average salary (BHD) (per 450BD monthly, taking into
month) consideration the employee
experience in work and his or
-minimum wages: start up from her certificate. The average
Based pay (fixed pay) 414BHD to 1553 BHD. salary for graphical designer in
(SalaryExplorer, 2018) Bahrain is 414BHD
(SalaryExplorer, 2018).
-Hourly
 Normal working hours - if the job required extra work

from 7:00 am until during doing new project for

3:00pm example.

 Of the job required,

from 7:00am to
6:00pm.
External factor:

Article (38):

According to article 38 in Bahrain

law, employees salary should be
calculated by the hour, day,
week month production or
piece-rate. According to Ministry
of Labour and Social
Development (2019), the
minimum wages in Bahrain for
Bachelor holders is 400BHD.

Article (53):

Based on article 53 in Bahrain

law, employees must not
work more than eight
hours daily, and if
required there must be
an agreement between
 employers and
employees, but it must
not exceed ten hours
daily. Article (51) (a)
-Article (54):

Article 54 state that ,If the

employer want the employee to
work extra hours, the employee
must receive money for each
extra hour by twenty five
percent (25%) for working during
the day and by minimum of 50%
for hours worked at night.

Internal factors:
-Performance rewards
Contingent pay Based on  Cornell University
-incentive study (2018), workers who were
rewarded directly and frequently
100BHD to 400BHD are more willing and encouraged
to do the small tasks during work
-Annual bonuses time. On the other hand, non-
monetary incentives and cash
incentives can increase
employee motivation which
might significantly rise the
opportunity of increasing both
productivity and profits.
Performance will be measured
by the number of customers
vesting the restaurant and based
on their feedback on the
designing for example.
-Annual bonuses, this type of
compensation will increase
employees productivity and
creativity .

External factors:

There are many competitors to

“Hoşgeldiniz” restaurant such as
” Guzel restaurant” and ” Mado
restaurant” these restaurants
provide more incentive which
might affect “Hoşgeldiniz”
restaurant because they might
lose their employees. As well as,
since Bahrain is facing problems
with inflation “Hoşgeldiniz”
restaurant will balance between
the compensation and the
market price.
Recommendation Justification

Internal factors:
At work:
Offering employees an
- Break appropriate benefits package
 lunch break and rewards during the work
Mandatory (one hours daily) time and outside the work
environment , will help workers
- Celebration feel valued and increase
 charismas and employees loyalty. Moreover, it
employees birthday will help the company to retain
their staff (StaffSquared, 2018).
Figure 1.2 https://books.google.com.bh/books

Based on Towers Perrin (2012), the upper quadrants are financial such as (pay and
Not at work: External factors:
benefits) is transactional rewards. These are essential because it helps in recruit and
Thelower
retain the employee, but it is easy to imitate by competitors. The labour law in Bahrain
quadrants show
relational (non-financial) rewards.
-AnnualThese are important to increase
vacation the value
enforce of the restaurant
“Hoşgeldiniz”
upper two quadrants (financial) and it is hard to be copied by competitors.
 (30 days paid) to provide this benefit to their
employees. For example, article
-Holidays 63 state that, the employee
must have up to three days leave
-Sick leave fully paid if in the event of first

 Fifteen days yearly. Full time his marriage. Death of

pay his/her spouse or one of his

-Bereavement Leave families to the fourth or second

 three days degree of relationship.

- Article (64):
According to article 64, an
employee can leave the work in
any official occasion specified by
 an Edict to be issued by the
Council of Ministers such as Eid
and it must be fully paid.

-Based on Article 65, the

employees have the right in case
of sickness to have sick leaves
every year, 15 days full pay, 20
days half pay and 20 days
without pay.
Non-mandatory
-Medical insurance and dental Internal factors:
insurance
 Covers 30% of the fees This unique features such as
for the employee and his medical insurance, school fees
or her family. for high position employees
children such as graphic designer
- School fees manager and discount on gym
 20,000BHD yearly will encourage workers to work
for high position harder. Also, it will help in
employees. attracting quality candidates by
providing the right incentives
- on-sit gym (four season gym). (StaffSquared, 2018).
 Discount 20%.

External factors:

Since these factors are hard to

imitate by competitors because
every company provide different
type of benefits to their
employees. “Hoşgeldiniz”
 restaurant provides benefits that
are unique and meets workers
expectation and satisfaction.

Work experience:

Recommendation Justification
Employee voice Internal factor:
“Hoşgeldiniz” restaurant gives their
employees the opportunities to have effective
voice at workplace is an essential factor to
ensure job quality (CIPD, 2019). For employers,
effective voice might increase the creation of
innovation and increase productivity. For
employees, it might enhance job satisfaction
Creating workplace and influence the opportunities for
flexibility(flex-time) development, this will increase the profit
(CIPD, 2015). As well as, giving employees the
opportunity to choose their working hours will
help them to make balance between their
individual life and work life.

External factor:

Flexible working hours might increase works

engagement in the work. As well as, if the
employee needs flexible work time he can ask
for it when required. Based on Bahrain labour
law, a worker must not work for more than 48
hours in the week (Article 57).

Learning and development:

Recommendation Justification

Internal factor:

“Hoşgeldiniz” restaurant cares about their

employees learning and development growth.
Therefore, the restaurant will focus on training
-New technology training (training courses) their employees to use the newest technology to
 After one year of working develop the restaurant by improving their skills
and knowledge. Also they will have more
experience in using new programs and techniques.
-job promotion As graphic designer this will help the employee to
use new programs to create logo or any other
things that this job requires.

-“Hoşgeldiniz” restaurant send their employees

emails and post offers in the venue of a new
position or job. This will increase employees
satisfactions and will raise employees willingness
to work better to get higher position.

External factor:

Due to high market competition in Bahrain,

sending employees to training course will increase
the workers skills and improve theme in using new
tactics which aligned with the restaurant strategy
to be the best restaurant in Bahrain.

ACHIEVEMENT, RECOGNITION, GROWTH:

Recommendation Justification
Internal factor:
-If the workers feel valued their productivity will
Employee of the month increase and they will improve their work .
 Recognitions are important in the workplace
because employees will fell that they are
Meeting at the end of the month respected by their employers and their
contribution are valued and appreciated. Harvard
Business School, (2018).

Overseas assignment -Meeting at the end of each month will help

employees to recognize what is required from
them to do and avoid doing mistakes by discussing
their ideas with others.

-To make the restaurant a competitive player in

the international market, sending some workers to
other countries will be a right move. By having a
high skilled employees , it will support the
restaurant as the restaurant strategy is to expand
to other countries, and will increase the revenue.
Global Mobility Survey,( 2012).

Reference:

1- Ali, M. (2019). Total Rewards. Retrieved 17 December 2019, from

https://www.academia.edu/4228703/Total_Rewards
2-Graphic Designer Average Salary in Bahrain (2019). Retrieved from

http://www.salaryexplorer.com/salary-survey.php?loc=17&loctype=1&job=54&jobtype=3

https://www.bahrain.bh/wps/portal/!
ut/p/a1/rZLBb4IwFMb_FXbgiK0FKu7GwemMyWJcpvSyFCilC22hljH316_qLkumZsl6ey_f-97vyysgYAeIou-
CUyu0os2xJvh18QTxGCVoOY9nIVzP55vVGq1mjy8R2AICSKFsa2uQSd34EGEf5rQ2VCjhdT1tRCWKk59HVek
ZVpheWMmU9VqjuaFSMtflYm_NWWZY17O9PTq3hShBRmGCkhJFQYnjSRBNYxxMJyUOIAqrqoowno6pQ
80cKrzwUngryYapc5orsof4W3BlTeY4Jpcc0igEmz8GW94id8nFW9eR1F1CK8s-
LNj98ykcA290fvoRWaryMOGAGFYxw8yoN65dW9vu733ow2EYRlxr3rBRoaUPfxuptTPd_VSCVsokPATLxed
zJbcByQ_D3RfabdMF/dl5/d5/L2dBISEvZ0FBIS9nQSEh/

3-https://books.google.com.bh/books?
id=ju4HDgAAQBAJ&pg=PA426&lpg=PA426&dq=Based+on+Towers+Perrin+
+the+upper+quadrants+are+financial&source=bl&ots=QIvs7VXZ2u&sig=ACfU3U0LkgE7LCRr73HOIO3Dr1
vQ0MCSEA&hl=en&sa=X&ved=2ahUKEwjNvfmQwbzmAhVp16YKHZyjAIIQ6AEwB3oECAcQAQ#v=onepag
e&q=Based%20on%20Towers%20Perrin%20%20the%20upper%20quadrants%20are
%20financial&f=false

4- https://cuttingedgepr.com/free-articles/employee-recognition-important/

5- https://www.businessnewsdaily.com/9240-engaging-employee-incentives.html

6- http://lmra.bh/portal/en/page/show/280

7- https://www.cipd.co.uk/knowledge/fundamentals/relations/communication/voice-factsheet