Final answer:
An organization that adopts a total rewards approach creates an incentive package that goes beyond salary, including various benefits, growth opportunities, and a supportive work environment, aiming to align employee efforts with the organization's success.
Step-by-step explanation:
When an organization adopts a total rewards approach, it creates an incentive package for current and prospective employees that considers what they receive for contributing their time and energy to the company. This approach often entails a comprehensive package that includes not just salary and benefits, but also encompasses personal growth opportunities, training, education, career advancement potential, and a supportive work environment that includes recognition and fairness.
Such a strategy acknowledges that employees are more motivated and productive when they share in the success of the business, linking their efforts directly to profits and earnings. It also reflects a shift from traditional hierarchical manager/employee relationships towards a more cooperative partnership, where both work towards the organization's broader goals, fostering a positive organizational culture where people join to pursue shared interests.