5HR03 Reward for performance and contribution
Introduction to 5HR03: Understanding Organisational Reward Strategies
Unit Overview:
The 5HR03 Reward for performance and contribution delves into the strategies influencing rewards within an organisation. People professionals play a crucial role in assisting managers in making sound reward decisions. The unit covers principles of rewards, the connection between performance and various types of rewards, the importance of data for benchmarking, and the legislative landscape influencing reward practices.
Learning Outcomes:
By the end of the unit, students should be able to:
- Understand reward packages and approaches.
- Grasp how benchmarking informs reward practices.
- Be aware of the roles of people professionals in supporting managers to make appropriate reward decisions.
5HR03 Assessment: Understanding Reward Strategies at Leia Technologies
The assessment focuses on the internal and external factors influencing reward strategies at Leia Technologies, a company in the savings and investment sector.
Section 1 – The Impact of Reward Approaches and Packages
AC 1.1 Evaluate the Principles of Reward:
Students are expected to explain principles such as intrinsic and extrinsic rewards, fairness, consistency, and alignment with organizational objectives. The importance of organizational culture and performance management will be emphasized by evaluating factors like recognizing performance, stimulating employee performance, and driving engagement.
AC 1.2 Explain How Policy Initiatives and Practices Are Implemented:
This section covers how reward policies and practices contribute to achieving organizational goals. Concepts include the felt-fair principles, challenges related to external competitiveness, protection policies, and collaboration in policy implementation.
AC 1.3 Explain How People and Organizational Performance Impact Reward Approach:
Students will define performance measurement and explore how external pressures, historical expectations, legislations, and reward based on working hours and achievements influence the approach to reward.
AC 1.4 Compare Different Types of Benefits:
Students will explain various organizational benefits, such as performance-related pay, share ownership, and bonus schemes. They will also provide recommendations for changes in budgets and resources based on individual considerations.
AC 1.5 Assess the Contribution of Extrinsic and Intrinsic Rewards:
This section evaluates how extrinsic and intrinsic rewards contribute to employee engagement, motivation, and sustained organizational performance.
Section 2 – Benchmarking Data to Inform Reward Approaches
AC 2.1 Assess the Business Context of the Reward Environment:
Students will explain the business context of the reward environment, considering factors like business activity, economy outlook, reward packages, legislations, and cultural drivers.
AC 2.2 Evaluate Ways to Gather Benchmarking Data:
Benchmarking is discussed as a comparison process. Students will learn how to gather and measure benchmarking data effectively, considering sources like salary surveys and government statistics.
AC 2.3 Develop Organizational Reward Packages and Approaches:
Students will explore significant aspects professionals should consider when developing reward packages, including pay grades, job evaluation schemes, and maintaining pay integrity.
AC 2.4 Explain Legislative Requirements Impacting Reward Practice:
This section covers legislations such as equal pay, minimum employee pay, working hours, and gender pay reporting requirements.
By successfully completing the assessment, students will gain a comprehensive understanding of organizational reward strategies and their impact on employee performance.
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