Literature Review - Term Paper Example

And, for the multinational companies, who operate more than one country and have become trans-national firms, the understanding of this chemistry is highly important as it enables them to hire and retain best talent which will reap higher and attractive performance for them. And for this purpose, the multinational companies have developed reward management policies and have implemented them in their global and regional offices. In the following parts of this literature review, the reward management has been defined and it is followed by the discussion and analysis of the reward management policies of those trans-national firms.

Reward management is a comprehensive strategic human resource aspect. “Reward management is concerned with the formulation and implementation of strategies and policies that aim to reward people fairly, equitably and consistently in accordance with their value to the organization” (Armstrong and Murlis, 2007, p. 3). Based on this definition, it can be highlighted that reward management initially requires performance appraisal of employees and this is what has been mentioned in the last line of the reward management definition.

In other words, it can be deduced that the reward management policies are not mainly determined and implemented by taking into account the employer’s perspective or understanding about employee’s performance instead it is more related to the actual performance side of the employees. It is the result of the performance that affects the understanding of employer for judging and measuring the performance of employees. American multi-national companies are known for offering and providing attractive rewards to employees.

Gooderham et al. (2006) explain that the American multinational firms are highly innovative as they have constructed and implemented numerous reward