Design a motivational system (or carry out the reward management function of

HRM) 
Based on the motivational theories and reinforcement theories
Your arguments must demonstrate about different ways of motivating people,
and give reason of such a motivational system will be suitable for your chosen
company
What is a Motivational system ?

Basically, motivation is described as a need that causes a person to take some action.
Most of the times, this process comes from a desire which leads to behavior and then
is connected to a reward. There has been underlined a few theories about
motivation and its sources. The most common are:

Reward and punishment theory – very significant instruments which are

connected mostly with promotion perspectives for employees; they create
constant behaviors for reaching company's aims and also they eliminate
unwanted actions. Rules for these issues in particular are most often
executed by the management board.

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Needs theory – firstly combined by Maslow, these instruments assume that

every little action is being undertaken because of a need or a desire that
every human has, even not-knowing about them. The Maslow's hierarchy
consists of five levels in so-called ‘pyramid of Maslow’, where the most basic
needs are located at the bottom (order of the needs: physiological, safety,
belonging, esteem, self-actualization).

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Process theory – underlines psychological acts that affect motivation, which

are values, aims and justice.

H&M motivational system and problem of it

H&M motivates its employees in a variety of ways, including the implementation

of training and the fact that it enhances from within. They are employing the
Expectancy Theory, in which employees are motivated to exert a high level of
effort because it will lead to advancement. This is accomplished through regular
performance review sessions.
H&M's site shows that their goal is to be a good employer, including for those
nations whose regulations and guidelines miss the mark concerning their own
necessities. To cite the Head of HR "to live up to individuals' assumptions of H&M
as an alluring business, the organization creates worldwide rules on variety,
equivalent freedoms and against segregation" (AR1 2008).
At H&M, HR exercises are directed by an essential regard for the person. This
applies to each perspective from fair wages, working hours and opportunity of
relationship to the chance for development and improvement inside the
organization.
According to the representatives' perspective, its something to anticipate. The
information that they can develop into any position they want. Workers' are
consistently empowered by the Management group regarding this chance to
develop.
The structure is intended to facilitate achieving organizational goals and
considering the first chart H&M is a tall organization and has a relatively large
number of levels in its hierarchy of authority. If there is a web of the shops, there
should be a heart of all structure, its head office is in Stockholm where are the
main departments for design and buying, finance, accounts, expansion, interior
design and display, advertising, communications, logistics, security, IT and
environment are located. Even though employee satisfaction may be lower
because of the many layers of bureaucracy and because they have fewer
opportunities to take on responsibilities.

Although the functional goals can be put in front of the companies goals and the
result can be a sub-optimal performance, within H&M there wasn`t a visible
situation like this yet.

Motivational theories
There are a lot of motivational theories, but at H&M I will choose 2 main types to
talk about and why these theories are used to describe exactly how H&M
motivates its employees. 
Reinforcement theories: According to Hawthorne's thesis, the Human
Relations Movement is used to analyze the human aspect in the organization. It
emphasizes the importance of the character's individuality. The Scientific
Management Theory emphasizes the lack of human component in the
organization process. The assignment looked into the viability of this idea. Style
theories look into how a leader acts in various settings. It identifies what works
in theory but doesn't work in practice.

According to Herzberg's Two-factor Theory: people are motivated by a

variety of elements that make them feel good about their jobs. The idea
emphasizes the need of gratifying dissatisfaction elements before achieving
satisfaction. Different satisfaction criteria have been investigated.

Reinforcement theories
 It states that behaviour is a function of its consequences—an individual will
repeat behaviour that led to positive consequences and avoid behaviour that has
had negative effects. This phenomenon is also known as the 'law effect'.

The Reinforcement Theory ignores an individual’s internal motivations and

focuses on environmental factors instead. This is why many organisations
dedicate their time and effort to improve the workplace culture. A healthy work
environment has the power to motivate employees and boost their morale. In
many ways, the Reinforcement Theory becomes a tool for influencing individual
behaviour.

Managers shoulder the additional responsibility of motivating and inspiring their

teams to perform better. This is possible only when employees are willing to
make changes. Reinforcement is an effective way to guide employees and help
them differentiate between positive and negative behaviours.

The Reinforcement Theory tells you how someone learns certain behaviors. The
tools of reinforcement will help you motivate everyone to pursue their goals
with greater enthusiasm. Before you go ahead and influence anyone’s behavior,
you need to understand how your team functions.

You’ll learn to navigate different working styles through the Social Styles Model.
The Skill-Will Matrix will help you assess everyone’s willingness to do certain
tasks. After all, motivation is one of the key ingredients of successful leadership.

Which motivational systems are suitable for H&M (thiết kế phương pháp
tạo động lực cho nhân viên)
The pyramid that illustrates Maslow's hierarchy of needs, is a very used theory
within motivation and focuses on how needs should be fulfilled in the right
order, where you in the top have the self-actualization (Rollinson, Derek 2008).
For the company to have employees at this stage, would be optimal, because this
is where people release their full potential. The stage of self-actualization is also
the place where people "do things that have never been done before "(Rollinson,
Derek 2008). Therefore, if H&M wants to obtain the growth, H&M has been
having for the last couple of years, they must focus on motivation and make sure
that people have a lot of it. Motivation is a very crucial contribution to secure
financial growth and profit increase. An organisation like H&M has to be agile
and very adaptable to new ideas. They must also have the energy and surplus to
make the goals of profit, into real money.

Now that H&M has become a major company with 94,000 employees, 2600
stores on over 40 markets (according to website www.HM.com), it is still vital to
make sure that the employees have the necessary motivation. To make sure that
the organisation is capable of performing according to the goals within H&M, it is
necessary to fulfil the employees' needs they have. This is so that the employees'
focus on the goals of H&M, and not on other needs that first must be fulfilled.
From the employees point of view self-actualization is what they strive for. The
company must therefore make sure there is a match between the employees'
wish of self-actualization and the financial goal of growing 10-15% in the
number of stores per year.

Why these motivational systems are suitable for H&M

The aim of this project is to examine H&M's key goal and how motivation,
communication, organizational structure, culture, and authority impact their
ability to achieve it. Maslow's hierarchy of needs, the Human Relations
Movement (Hawthorne), scientific management (Taylorism), Herzberger's Two-
Factor Theory, and Style theories are utilized to demonstrate the company's
advantages and weaknesses. It will be highlighted how H&M supports self-
motivation in their employees, as well as how they educate and exchange
information and pass on the "H&M spirit." H&M appears to be focused on
treating people with respect, and their objective is for staff to be involved in day-
to-day activities. Physical condition has significantly less of an influence on
production than social variables.

Employees would receive more attention and be encouraged to be themselves if

the reward scheme focused on motivation (www.H&M.com). This might result in
more pleased consumers, who would therefore be more likely to purchase at
H&M in the future. H&M may thus aspire for long-term growth while focusing on
strong leadership rather than wasting money on management. H&M saves
money by making staff self-motivated and organized, allowing the firm to "give
the client unparalleled value by giving fashion and quality at the greatest price"
(www.hm.com). Internal employee motivation is also influenced by how persons
outside the business are treated.

H&M should think about reducing dangerous chemical emissions. Additionally, it

encourages buyers to purchase organic items rather than polluting the
environment. H&M's environmental initiative has been criticized in the past. The
company's efforts in this area could be improved. It is necessary to contemplate a
review of the organizational level.