Abstract
This coursework examines the concept of total rewards in the context of today's competitive business environment. There are many different total rewards concept in the existing literature and therefore the primary focus must be to choose the most appropriate concept and to examine it and explain its benefits. Furthermore there are important questions whether the total rewards concept can easily be adopted by organizations in practice and to which extend this theory can be valuable for the organizations which are developing strategies to stay competitive in the globalizing business world of the 21st century. Critique against this model are hardly to be found in the literature, due to the reason that this is a very flexible model which can be adopted in many different facets balanced with the needs of each unique organization, the main reasons for its increasing level of prominence will be explained in the process of this essay.
Companies need to develop total rewards or reward packages that satisfy people to stay competitive or establish a competitive advantage. These total rewards include all the non monetary and monetary rewards allocated by a company to motivate, attract and retain employees. The success of total reward systems relies on connecting organizational strategies and objectives of compensation. The employees should be encouraged to work in a way that benefits the firm and its stakeholders. (Mathis R. and Jackson J., 2011,Human Resource Management, South-Western, USA, P. 359-361.)
