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Due to its scale and diverse range of businesses, RBS has lots of different career opportunities
to offer. These include bankers, traders, sales, customer service, investment analysts, and
business advisors. There are also business support roles such as IT, marketing, human
resources, finance, and legal. Careers can start directly after leaving school on an
apprenticeship programme or from university on a graduate development programme.
At RBS almost every role can be described in terms of specific job targets. This method of
performance management allows managers to measure each individual’s performance in a
specific way and reward them accordingly. RBS employees will agree job objectives and
targets with their line manager at the beginning of the year. Their performance is then
measured and reported on during the year. At the end of the year they will have a
performance review. Payments for results are an effective motivator for high performance.
Some jobs are paid according to the achievement of targeted results. This means that a
bonus is paid if the employee achieves agreed targets for the job. For example, a corporate
banker has responsibility for gaining a certain number of new business customers each year. If
the target is achieved or exceeded she/he will get a bonus payment. Particularly challenging or
difficult to achieve targets are known as 'stretch targets' and the reward for achieving these
will be greater.
What is motivation?
For many years, management theorists have tried to understand what makes some people
work harder than others. Some of the motivation factors identified by theorists can be seen
at work in RBS. Early theorists on staff motivation always looked at factors outside the
individual. Frederick W. Taylor (1911) was the creator of ‘scientific management’. He felt
that every job was measurable and each element of a job could be timed. All managers had to
do was pay for every item the workers produced and they would work harder to get more
money. This led to a long established pay scheme called the ‘piece rate’, where workers
received a fixed amount for every unit of output. Schemes like this are usually associated with
manufacturing industries and are not appropriate for a complex service-led organisation like
RBS.
Another theorist, Frederick Hertzberg (1959), carried out a large-scale survey into motivation
in American industry. The results of his survey led him to develop a 'two-factor' theory of
motivation. Firstly, he established that if an employee's basic needs (such as a suitable
working environment and a basic rate of pay) were not met, then this creates a source of
dissatisfaction. Hertzberg termed these 'hygiene factors'. On the other hand, the presence of
less tangible factors, such as the provision of challenging work and recognition for doing well,
can create or increase work motivation. Hertzberg termed these 'motivators'.
RBS has put in place several of Hertzberg’s ‘motivators’:
• Employees get recognition for good work
• They have a collective sense of achievement when the whole business does well
• They gain extra responsibility and advancement through regular performance reviews
• When RBS people do well in their work, the company rewards them.
The theory of Abraham H. Maslow (1943) on staff motivation is also evident at RBS. Maslow
referred to a ‘Hierarchy of Needs’ which is usually drawn as a pyramid. According to Maslow,
the most basic needs on this hierarchy had to be satisfied before workers could look to the
next level. Basic physical needs were things like shelter, food, warmth and bodily functions.
Next, people had to feel safe in their environment. RBS provides these basic needs wherever it
creates jobs.
Maslow’s higher levels of need are less obvious and less easy to describe but of great
importance. Social needs refer to the fact that we want to feel part of something we share in.
RBS creates the opportunity for its community of employees worldwide to share in its common
goals and vision for the group. It does this by rewarding the people who contribute to its
success through their commitment and hard work.
THE ROYAL BANK OF SCOTLAND GROUP
The next level – ‘esteem’ - refers to our need to feel valued, that what we do matters. The RBS
mindset is that employees can ‘make it happen’ for themselves. It provides opportunities for
all employees through promotion or training and then recognises their achievements. Through
this RBS employees can improve their self-esteem.
At the very top of Maslow’s hierarchy is our human need for ‘self actualisation’. This means we
work hard in order to be as good as we possibly can be. RBS meets this by offering recognition,
promotion opportunities and the chance to develop a lifelong career with the Group.
The RBS Total Reward package also offers flexible pension funding, health and medical
benefits, paid holidays, and a confidential advice service. Employees have a generous holiday
allowance (between 25 and 30 days for full-time staff), with the option of buying or even
selling days. Employees may also choose from a wide range of lifestyle benefits, including
discounted shopping vouchers, childcare facilities and RBS financial products, such as
mortgages, currency exchange, personal loans and banking at special staff discounted rates.
In the last year, groups of RBS employees have supported many fundraising projects for local
communities and charities. These have included:
• a ‘pirate kidnap’ in South Wales for a youth charity
• taking part in the Microsoft UK Challenge for the NSPCC
• cycling across the Himalayas for British Wheelchair Sport.
The RBS Group also contributes to various projects throughout the UK to improve communities
and the lives of the people involved. For example, over the last two years it has provided
funding and advice to:
• The regeneration programme of a housing estate in Scotland. This won a national award for
including the local residents
• The development of a hospital in Portsmouth and four schools across the country
• The provision of free-access cash machines in deprived areas in Scotland
• The setting up of school banks where students manage the banks themselves to learn a
practical approach to numeracy and personal finance.
Work-Life Balance
To attract and retain the highest qualified and motivated employees, RBS enables its
employees to develop a work-life balance between work and non-work commitments. RBS
gives all employees the ‘right to work flexibly’. This can be through a range of flexible working
practices covering job sharing, part-time working, home working, variable working hours,
compressed hours and term-time working. These are adapted to suit the local needs of each
RBS centre. The policies and procedures for applying are easily available on the RBS website.
RBS provides a free advice service called 'HelpDirect'. Employees can call for advice on making
the most of their time at and away from work. It also offers counselling on a range of life
issues.
RBS recognises that in some circumstances, people may need time off from work for reasons
other than sickness. Some people have special family commitments or commitments in their
local community. In 2004, the RBS “Your time” programmes won the HR Excellence Award for
‘The Most Effective Use of Flexibility in the Workplace”. The policies of RBS in relation to work-
life balance help to create a working atmosphere that
relieves stress. They also help to create greater equality of opportunity for everyone. For
example, this flexibility enables employees to choose working patterns that fit with their
childcare arrangements or their personal lives.
Following these flexible practices allows RBS to attract more talented people. Theoretical work
on motivation by Elton Mayo in the 1920s showed that contented people, who are satisfied
with their working environment, were likely to be more productive. The distractions of home or
community pressures can be handled far more comfortably with the support of an employer
such as RBS. In return, RBS gains staff loyalty and commitment, which in turn drives higher
performance.
Conclusion
RBS operates an exciting and forward thinking Human Resources (HR) strategy. It provides a
world-class employment package for every employee, at every level, wherever they work. It
adopts an attitude that motivates its staff in both financial and personal ways. By doing this,
RBS is able to compete for the best people and attract them to its business. In a world where
local labour market conditions can fluctuate from region to region, RBS must be sensitive to
local conditions and individual needs.
In RBS, motivation theory comes to life. RBS employees at all levels can enjoy a work
environment where effort is seen to be valued, where achievement is recognised, where
individual progress is rewarded and where a long term career is available for those who are
able to grow with the business. Where individuals are made to feel a part of the bigger picture
and where the rewards available are varied, practical, personal and tailored to the individual,
there are motivators for all.
Points to be discussed:
1. Relating theories of motivation with the practices adopted in RBS.
2. Comparing various motivational theories (Maslow’s Need Hierarchy. Herzberg’s 2
Factor Theory, Alderfer’s ERG Theory and Mc Clelland’s Theory of Needs)
Pre-Reading:
1. Maslow’s Need Hierarchy
2. Herzberg’s 2 Factor Theory
3. Alderfer’s ERG Theory
4. Mc Clelland’s Theory of Needs
Books to be referred:
• “Organisational Behaviour” by Mirza S Saiyyadain – Tata McGraw Hill
• “Organizational Theory & Behaviour” - Rao & Narayan