5hr03 Assignment Example
Assessment Questions
Task One
Evaluate the principles of reward and its importance to organisational culture and performance management. (AC 1.1)
Key Principles of Reward
Fairness
This makes sure that the employees view their salaries as equitable and just relative to their responsibilities, skills, and contributions (REBA, 2021).
Equity
Equity deals with giving all employees the same rewards non-discriminatorily based on their performance (REBA, 2021).
Transparency
This involves disclosing the reward system to staff members to understand the standards of good performance and how compensation will be provided (REBA, 2021).
Importance to GA Pensions’ Organisational Culture
The parameters on which the reward systems of GA Pensions should be based are fairness, equity, and transparency, which should be taken into consideration for building the organisational culture of GA Pensions. Such a set of principles ensures a working atmosphere where one can be cordial and trustworthy towards each other, positively affecting the employees’ morale and dedication level (Cotton, 2023). If an employee sees that their rewards are just and reasonable, they will feel appreciated and motivated more, resulting in more job satisfaction and stronger loyalty ().
Importance to GA Pensions’ Performance Management
Adherence to the concepts of fairness, justice, and openness is inevitable at the outset of GA Pensions’ performance management system. Appropriate and balanced contracts among employees stimulate employees to work at their best, making their personal goals and objectives coincide with those of the organisation (Cotton, 2023).GA pensions should value employees by giving them awards and recognitions for their efforts and achievements. This makes employees work hard and improves the firm’s performance. Furthermore, rewards need to be transparent to eliminate confusion and boost accountability, which aids managers in giving advice and helping employees become more skilled (Cotton, 2023). Hence, sticking to these parameters makes performance management strong, thereby driving productivity, efficiency and competencies. Consequently, GA Pensions will perform well consistently.
Explain how policy initiatives and practices are implemented. (AC 1.2)
Example of a Reward Policy
An example of a reward policy that GA can embrace is providing a performance-based bonus scheme, under which a monetary reward is paid to individual and team achievement contributors.
Implementation at GA Pensions
To implement a performance-based bonus scheme at GA Pensions, the following steps could be taken:
Design Phase
This stage involves professionals working together with senior management to develop performance-related executive incentives. It requires that professionals pinpoint the precise KPIs, design achievable goals, and identify the reward scheme (Matthews, 2019).
Communication and Training
Here, HR communicates policy to employees by detailing the objectives of the new policy along with criteria for eligibility (Herrity. 2022). Empowering training sessions are a tool to help employees visualise themselves in the bonus pool once they learn how their performance is eligible.
Involvement of Line Manager
In this stage, the direct managers are charged with the successful implementation of the policy in the organisation by setting up measurable performance expectations, giving regular feedback and evaluating employees’ performance (Matthews, 2019). These assessments are made against upfront documented requirements. Besides, the appraisal committee gives additional pay to the candidates based on their efficiency reports.
Consultation with Employees
GA Pensions could use employee surveys or focus groups to learn from their prospective employees and to be ready for the needs they have recovered from the design process and implementation of the reward policy (Herrity. 2022). There will be no mismatch in employee opinions and perspectives, and the policy will soon align well with employee goals and organisational objectives.
Integration with Other People Practices
The compensation policy will go along with the other HR practices, such as a job evaluation system, and career advancement is done continually. This alignment indicates a similarity in the approach of HR functions as well as consistency in implementation, which, in return, enables the organisation’s general strategic goals to succeed (Matthews, 2019).
Evaluation and Review
In this phase, HR constantly evaluates the usability of the performance-based bonus system by using factors like employee motivation, performance, and business outcomes as indicators (Herrity. 2022). Employee and line managers’ opinions are collected, and the spots with potential for amendment are determined. Consequently, following this evaluation, the policy needs to be adjusted or modified to improve the current situation, getting closer to the ever-changing needs of the organisation and its staff.
Explain how people and organisational performance can impact on the approach to reward. (AC 1.3)
People and Organisational Performance Impact on Reward Approaches
People Performance
People performance denotes individual or team productivity and efficiency in an entity (Indeed Editorial Team, 2023). Measurement can be done through an array of metrics like KPI, performance appraisal, and feedback from peers managers, and subordinates.
Organisational Performance
The term organisational performance implies the organisation’s impact on the achievement of missions in due course (Indeed Editorial Team, 2023). It can be captured by depicting financial metrics (like revenues and profits) and operational efficiencies, like customers’ satisfaction or market share.
Impact of People Performance on Reward Approaches
Discussing the situation of people’s performance in GA Pensions with frequent absenteeism may demonstrate the necessity of motivation for the workers concerning overcoming these issues (Vaidya, 2023). For instance, providing employees with flexible work schedules or giving them bonus paid time off if they achieve good attendance may realign employees more vigilantly in order to diminish their absenteeism.
Impact of Organisational Performance on Reward Approaches
Concerns such as low productivity at GA Pension could prompt the introduction of rewarding schemes focusing on enhancing efficiency and effectiveness. For example, introducing a scheme of bonuses that are based on employees’ productivity or implementing a recognition program that will celebrate and reward teams with great output are ways that motivate employees to have a favourable effect on the company (Indeed Editorial Team, 2023).
Compare (two) different types of benefits offered by organisations and the merits of each. (AC 1.4)
Benefits are additional perks that organisations provide to their employees as extras in addition to their salaries or wages (Cotton, 2022). These benefits are designed to increase employee satisfaction levels, drive their motivation level, and improve general well-being.
Financial Benefit (Bonus)
GA Pensions could serve as such a retribution tool by paying their workers bonuses that are performance-oriented. These are the extra bonuses employers give to employees as a reward in monetary terms based on individual or team performance achievements (Cotton, 2022).
Merits and demerits
The financial benefit increases motivation as it is an instant promotion for excellent performance, which improves the performance of the employee. Besides, performance-oriented bonuses align employees with the organisation’s goals and stimulate better performance, which in turn generates improved performance. However, GA Pensions could only use bonuses as an incentive for employees due to the high costs involved if these bonuses are budgeted for or the organisation has abundant resources for them (McWhinney, 2020).
Non-Financial Benefit (Flexible Work Arrangements)
In line with the rewards enjoyed by GA Pensions, non-financial benefits such as work-life balance can be included among the perks. These alternatives, which are crucial in work arrangement, provide options of remote work, flexible hours designation, or compressed working week. Hence, employees can easily balance their work lives and run their domestic lives (Cotton, 2022).
Merits and demerits
Benefits like job flexibility help enable work-life balance, which in turn results in a reduction of stress levels and improved employee retention (Heathfield, 2021). In addition, non-financial allowances can be more effective in visualising that the business respects employees’ health and their willingness, which will enhance engagement and contentment. Nevertheless, the power of individual time management for some employees might be misused which will eventually bring about issues related to productivity and accountability.
Comparison
Thus, financial and non-financial benefits are created to increase employee satisfaction. At the same time, financial incentives give a clear cutout of appreciation for employees for their efforts devoted to the company’s purpose and also put the company’s goals first. However, non-financial benefits prove to be beneficial when it comes to supporting work-life balance and making the employees feel taken care of.
However, financial benefits are related to a shallow approach and short-term target. On the other hand, non-financial benefits have a chance to be overused and have a chance to explore audiences with low incomes. It is ideal for GA Pensions to embrace both forms of employee benefits to ensure their engagement and satisfaction.
Assess the contribution of extrinsic and intrinsic rewards to improving employee contribution and sustained organisational performance. (AC 1.5)
Extrinsic Rewards
Extrinsic rewards are the forms of disposable or non-disposable material benefits provided to employees as incentives based on their performance or achievements. Usually, the most common awards are mainly monetary incentives, salary increases and similar benefits given by the organisation (Francis, 2024).
The link between Extrinsic Rewards and Employee Contributions:
Extrinsic rewards are essential in encouraging contributions from employees who identify with and feel pride in the organisation they are working for to achieve the goals and mission of the organisation (Francis, 2024). Employees get efficiency when they realise that their productive actions are going to be recognised and proposed with some material compensation. Several individuals’ motivations can be aroused through the provision of pecuniary incentives or promotion prospects (Francis, 2024).
Intrinsic Rewards
These are psychological types of gratification that come from doing work itself or adhering to what they, as people or employees, hold important (Perry, 2023). They include a sense of fulfilment, self-development and purposes received under doing such a meaningful job.
The link between Intrinsic Rewards and Employee Contributions
Intrinsic rewards bring about positive attitudes and effectiveness of employees in creating organisational success. Employees who find self-realisation and significance in their work purposes are assured of more commitment, involvement, and enthusiasm to serve to the highest level possible. When a worker derives satisfaction from their job, they can end up displaying a higher level of creativity, innovation, and dedication, which contribute to increased productivity of the organisation (Perry, 2023).
Contribution to Sustained Organisational Performance for GA Pensions
Both intrinsic and extrinsic methods of reward have utilities for sustaining high-performance levels at GA Pensions. Non-monetary rewards such as additional pay bonuses and promotions based on the outcome act as short-term goals and targets to boost the employees’ output. Similarly, whereas external rewards provide immediate satisfaction in terms of monetary gains, intrinsic rewards like a sense of direction, self-determination, and self-development encourage employees’ sustained job commitment and job loyalty. The opportunities of both monetary and non-monetary perks can bring the work environment to address the employee’s needs, both their motivation and self-growth, to eventually attain organisational success in the long run.
Assess the business context of the reward environment. (AC 2.1)
PESTLE Analysis
Legal Environment
The legal atmosphere refers to laws and regulations that influence work practices and participate in components of reward strategy. The latest laws introduced for pay equality, which include laws on parity of wages and the abolishment of discrimination, are directly responsible for any remuneration decision made by GA Pensions (Frue, 2019). Equalities Laws demand fairness in compensation policies, meaning that individuals should be compensated based on their competencies and not on the grounds of gender, race or other protected traits.
Economic Environment:
The economic tenet plays a crucial role in this process, representing the region’s pay differences; labour force trends and the economy are also incorporated. These include providing higher living allowances in areas with high living costs (Frue, 2019). This would be an effort to keep the pension services competitive with other employers in attracting and retaining qualified employees. Besides, changing dynamics of the labour market, like the labour of skills and ageing of the population, also impact the reward strategies with the required changes in compensation and benefits to keep in touch with the market.
Social Environment
The social environment includes societal attitudes and value systems that individuals in organisations believe must have certain rewards and recognition, but cultural norms also shape employee expectations (Frue, 2019). GA pension plans must reflect social transformations by considering the changes in the definition of work-life balance, the acceptance of diversity and inclusion, and the emphasis on employee welfare during their reward development. For example, job offerings that include strike work arrangements, wellness incentives, and regular reward packages speak of the company’s promise to support its employees’ social needs and wellness, fostering their joy and loyalty
Evaluate the most appropriate ways in which benchmarking data can be gathered and measured to develop insight. (AC 2.2)
Benchmarking
Benchmarking is the procedure of measuring against the benchmarks of the competitors or industry standards. It involves identifying how performance is carried out, where possible areas of improvement are identified, and where the industry best practices are adopted. As for the reward strategy development process, benchmarking implies comparing each GA Pension benefit practice of the organisation to that of the others to maintain all the high standards and competitiveness of the business compared to the other businesses in the industry.
Ways to Gather Benchmarking Data
Published Data:
Publications in company reports and surveys allow for well-organised and laid-out data that can be easily used when making comparisons. They come as a wide-range compass that helps hold a central market position and may vary with practices (Fallon, 2023). However, released data pools might need to be more accurate or appropriate to GA pension-specific situations. Certainly, the approach may need to include information directly related to specific jobs or organisational facets, which could be critical in the pay increase process.
Pay Clubs
Pay clubs involve interacting amongst adopted organisational members for similar sectors or industries and strictly sharing benchmark data issues. This allows for a more defined and relevant comparison to GA Pensions’ perspective (FasterCapital, 2024). Participating in a paid club might take up a lot of time and resources for an individual. It could be constrained by boundaries or data provided by the organisations one wants to access.
Reward Consultants
Reward experts will conduct a research project individualised for GA’s performances based on benchmarking that will be used further to evaluate the organisation’s effectiveness. They further apply their expertise and current awareness of sector standards by giving directions and recommendations (FasterCapital, 2024).
However, utilising and acknowledging reward consultancies is an expensive endeavour. Besides, they might not promise objectivity of information or comprehensiveness of the data sources. The companies giving out to the external involved parties may lead to the organisations needing more ownership of the benchmarking process (FasterCapital, 2024).
GA Pensions might adopt the most efficient approach according to the evaluation process results: working with reward consultants to gain relevant insight into their reward strategy. Consultant offers individual expertise and guides to facilitate the dispersion of the goals and challenges of GA Pensions. However, deep and personalised consultancy tends to have a higher price point, but this detail-oriented analysis can be helpful for strategic direction in reward management.
Develop organisational reward packages and approaches based on insight. (AC 2.3)
Utilising Insight for Reward Package Development
Development of an Organisational Reward Package
When conducting a PESTLE analysis to collect useful information, companies such as GA Pensions can apply the obtained data to build an incentive system which will benefit employee retention. This involves several key steps:
Job Evaluation and Grading
Job evaluation and grading at (GA) Pensions will be conducted by conducting a complete job evaluation exercise to estimate the worth of various jobs within the organisation. Such evaluation involves analysis of aspects like abilities, needs, duties and activities that result in attaining the organisation’s goals (Van Vulpen, 2020). Job grading takes place by assessing the magnitude and essence of a task, including the job’s intricacy and importance. This forms the foundation of the wage structure.
Pay Structures
Based on the PESTLE analysis results, GA Pensions can determine the pay scales that will reflect the economic conditions of the day, earnings differences across the country, and industry standards. Pay components must be developed to ensure internal equity of employee compensation, generating a competitive income for all employees regardless of their position or job function (XpertHR, 2024).
Fairness and Levelling
GA Pensions has to guarantee equality of shareholding by promoting transparency and consistency in reward practices. Thus, in addition to job evaluation results, a company needs to match pay levels with employee’s value and market worth, which will prevent unequal earnings (XpertHR, 2024). Moreover, GA Pensions ought to be developed with credible standards and systems for evaluating salary levels and opportunities and eliminating external influences on this.
Considerations in Reward Strategy Development
Job Evaluation and Grading
To determine the worth of the personnel in terms of various positions, GA Pensions has to have the job evaluation process done precisely. This guarantees that the salary amounts are adequately commensurate with the tasks for which jobs are designated and the organisational objectives (Cawood, 2020).
Fairness of Reward
GA Pensions should place fairness in the distributions among all candidate’s first faith and engagement. This entails guaranteeing that remunerations are payable on a fair, transparent basis and that the criteria have been well set down, which dictate the standards for the employees` allocations and chances of promotion (XpertHR, 2024).
Conclusion
Through a PESTLE analysis and exploration of aspects including job grading, wage and pay structures, fair rewarding and levelling up of the jobs, GA Pensions should be able to come up with a working incentives package and approach for its staff that reflects a balanced between employees’ motivation and organisation’s objectives. A properly designed reward system ensures that each category receives justice internally and is competitive in the external environment. Besides, it fosters internal and external consistency and is compatible with the organisational values and strategic aims. Hence, by applying the aspects mentioned above to their reward system, the GA of employees could also see a rise in satisfaction levels, retention, and, later, organisational performance.
References
Cawood, S. (2019). Scott Cawood: Know the organisation before benchmarking total reward. [online] Employee Benefits. Available at: https://employeebenefits.co.uk/scott-cawood-benchmarking-total-reward/ [Accessed 2 Apr. 2024].
Cotton, C. (2022). CIPD | Bonus & Incentives Scheme | Factsheets. [online] CIPD. Available at: https://www.cipd.org/uk/knowledge/factsheets/bonuses-factsheet/ [Accessed 1 Apr. 2024].
Cotton, C. (2023). Strategic & Total Reward | Factsheets. [online] CIPD. Available at: https://www.cipd.org/uk/knowledge/factsheets/strategic-total-factsheet/ [Accessed 1 Apr. 2024].
Fallon, N. (2023). The Benefits of Benchmarking in Business Operations – businessnewsdaily.com. [online] Business News Daily. Available at: https://www.businessnewsdaily.com/15960-benchmarking-benefits-small-business.html [Accessed 2 Apr. 2024].
FasterCapital (2024). Gathering Data And Benchmarking. [online] Available at: https://fastercapital.com/topics/gathering-data-and-benchmarking.html [Accessed 2 Apr. 2024].
Francis, A. (2024). Extrinsic and Intrinsic Rewards – Impact on Individual and Organization Performance. [online] MBA Knowledge Base. Available at: https://www.mbaknol.com/human-resource-management/extrinsic-and-intrinsic-rewards/ [Accessed 1 Apr. 2024].
Frue, K. (2019). PESTLE Analysis for Human Resources: How PESTLE Affects HR. [online] PESTLE Analysis. Available at: https://pestleanalysis.com/pestle-analysis-for-human-resources-how-pestle-affects-hr/ [Accessed 1 Apr. 2024].
Heathfield, S. (2021). The Pros and Cons of a Flexible Work Schedule. [online] The Balance. Available at: https://www.thebalancemoney.com/advantages-and-disadvantages-of-flexible-work-schedules-1917964 [Accessed 1 Apr. 2024].
Herrity, J. (2022). 4 Steps for Creating an Employee Rewards Program. [online] Indeed Career Guide. Available at: https://www.indeed.com/career-advice/career-development/employee-rewards [Accessed 1 Apr. 2024].
Indeed Editorial Team (2023a). A Guide To Organizational Performance. [online] Available at: https://sg.indeed.com/career-advice/career-development/performance-measurement [Accessed 1 Apr. 2024].
Indeed Editorial Team (2023b). What Is Performance Measurement? (With Benefits and Methods). [online] Available at: https://sg.indeed.com/career-advice/career-development/performance-measurement [Accessed 1 Apr. 2024].
Matthews, K. (2019). How to Create an Employee Rewards and Recognition Policy. [online] HR Daily Advisor. Available at: https://hrdailyadvisor.com/2019/06/28/how-to-create-an-employee-rewards-and-recognition-policy/ [Accessed 1 Apr. 2024].
McWhinney, J. (2020). Raises or Bonuses Better for Small Business Staff? [online] Investopedia. Available at: https://www.investopedia.com/articles/personal-finance/092915/raise-vs-bonus-your-small-business-employees.asp [Accessed 1 Apr. 2024].
Perry, E. (2023). Intrinsic Rewards: Examples & Effects on Team Performance. [online] www.betterup.com. Available at: https://www.betterup.com/blog/intrinsic-reward [Accessed 1 Apr. 2024].
REBA (2021). Why transparency and openness are critical to reward strategy – and how to achieve it. [online] reba.global. Available at: https://reba.global/resource/why-transparency-and-openness-are-critical-to-reward-strategy-and-how-to-achieve-it.html [Accessed 1 Apr. 2024].
Vaidya, D. (2023). Performance Measurement. [online] WallStreetMojo. Available at: https://www.wallstreetmojo.com/performance-measurement/ [Accessed 1 Apr. 2024].
Van Vulpen, E. (2020). A Full Guide to Job Evaluation for HR. [online] AIHR. Available at: https://www.aihr.com/blog/job-evaluation/ [Accessed 2 Apr. 2024].
XpertHR (2024). Benchmarking – HR Metrics | XpertHR.co.uk. [online] www.xperthr.co.uk. Available at: https://www.xperthr.co.uk/hr-benchmarking/ [Accessed 2 Apr. 2024].
Task Two
Explain the legislative requirements that impact reward practice. (AC 2.4)
Equality Act 2010: Ensuring Fair Treatment
The Equality Act 2010 prohibits discrimination against protected characteristics such as gender, race, age, disability, religion, or sexual orientation. Regarding reward practice, the Equal Opportunity Commission of ‘G.A. Pensions should ensure that the employees are treated equally regarding their payments, benefits, and chances for advancement (Davies, 2019). Also, lack of observance of the equality principles may tarnish the company’s image, leading to legal actions while employees’ morale is lowered.
National Minimum Wage Act 1998: Choosing an Appropriate Wage Rate
According to the National Minimum Wage Act 1998, there are minimum hourly wages that the law forces employers to pay to their staff. G.A. pensions must conform the perks of their workforce to the minimum wage requirements, as discordance may generate legal claims and unethical practices in the job sector (Tran et al., 2024). Besides, implementing the National Minimum Wage Act guarantees that the laborers are compensated fairly for their performance, ultimately improving their financial health and the fulfillment associated with the job.
Working Time Regulations (1998). Ensuring Leaf Forward On Employee Welfare
The Working Time Regulations 1998 set up various working time procedures, including maximum working hours, rest intervals, and the paid leave that should be given. G.A. Pension plans should consider these regulatory measures when designing the reward system (Glowacka, 2020). This is vital to keep job satisfaction levels high and reduce burnout rates.
Employment Rights Act 1996: Maintaining worker rights
The Employment Rights Act 1996 lays down multiple employment rights accompanied by specific responsibilities of employers, including issues concerning a contract, reasons for dismissal, and statutory leaves. G.A. should ensure that its welfare scheme measures that support employee rights cannot cause any disputes with the law (Gov.UK, 2023). The Employment Rights Act guideline is designed to safeguard employees against any forms of discriminative and deceptive practices by their employers
Assess different approaches to performance management. (AC 3.1)
Assessing Different Approaches to Performance Management
Understanding the Performance Management Cycle
The performance management cycle encompasses a system of components that are meant to be interlinked. These are key to the effective management of employee performance. Moreover, it commences with goal setting by which the objectives with which the company adheres set clear and attainable goals (Franco and Doherty, 2024). Additionally, monitoring and feedback are also necessary, as continuous tracking of members’ performance and essential suggestions are given for enhancing performance. In this sense, redesigning outlines the points for improvement and elaborates on the action plan for skill enhancement. Performance appraisal helps assess whether the employee performs the functions that align with the established goals and presents formal assessments.
Considering the Best Possible Solutions for On-Premises Pensions
Some suitable strategies for G.A. Pensions are regular review meetings when planners and workers participate in one-on-one meetings and can discuss problems; hence, on-time advice is given. Also, objective-setting and the appraisal process create a formal link between employee performance objectives and frequent critical appraisals (Tran et al., 2024). Thus providing a clear set of criteria for assessing the current performance and degree of achievement.
Balancing the Pluses and Minuses of Every Intention
Periodical meetings provide the occasions for dialog that includes timely intervention. However, they could be exhausting and more supervised than formal written documents. As the task of judging performance is set and appraisal continues, expectations are clear and rewards merit-based; however, these systems can feel bureaucratic, and factors beyond their scope may need to be evaluated. 360-degree feedback is 270 degrees of peer and self-feedback) reviews from supervisors and colleagues can help employees be more self-aware and better understand their value to organisations (Bianchi et al., 2019). Furthermore, it is challenging to manage feedback if it is not done relatively or accurately, and it can be very time-consuming to implement and analyze.
Considerations for G.A. Pensions
While choosing the best type of performance management strategy, there is need to carefully assess the organisational culture, resources, and objectives. Each method has pros and cons, and the G.A. Pensions team has to make sure that the approach they adopt is in line with the expected needs/priorities of their organisation and proves to be the most effective way to manage employee performance and achieve organisational success (Bianchi et al., 2019).
Review the role of people practice in supporting line managers to make consistent and appropriate reward judgements. (AC 3.2)
Supporting Line Managers in Reward Judgements
Importance of People Practice Support
H.R. practitioners and the line managers’ support to reward management’s success is based on continuous cooperation between them. Thus, this pose an advantage in that the job of a professional or a manager helps to achieve a proper and logical reward for all line managers (Ayi and Korang, 2024). Also, the departments of professional expertise often support various incentives structure, policies, and procedures to use that fit with the organisational values and objectives.
Examples Showing People’s Support Of The Pros And Cons Of The Job
a. Training and Education: Human resource personnel are likely to run workshops and training sessions for line managers, giving them detailed information regarding reward systems, policies, and procedures (Ayi and Korang, 2024). Through these sessions, line managers become knowledgeable and qualified to decide about rewards based on consistency and impartiality.
b. Consultation and Guidance: Human resources personnel consult consultants who give direct supervision to team members and make suggestions about personalized recommendations on reward-related problems or dilemmas (Ayi and Korang, 2024). Whether it is making incentive awards, salary matching benchmarks, or performance-related bonuses, people specialists offer professional tempering plus recommendations so that the reward choices can be fair, transparent, and aligned with organisational goals.
Need of the Unfailing and Correct Magnitude of Rewards
a. Fairness and Equity: Consistent reward procedures ensures that all employees are treated equally and fairly regardless of organisational position. When one sees transparent reward criteria and processes being adopted consistently, such employees believe in the systems’ fairness, which promotes trust, commitment, and dedication to the organisation.
b. Motivation and Performance: when utilized properly, individual contingencies related to receipt of reward are in line with the level of effort and the contribution of employees and teams; they will be motivated to achieve the best result possible (Ayi and Korang, 2024). The acknowledgment of employee contributions and awards for their success in reaching organisational goals is a signal to the workforce, which plants the seed for a favorable performance culture.
Retention and Engagement
Regular and timely awards reinforce the staff’s self-satisfaction, company loyalty, and involvement. When employees appreciate what they do and regard themselves as well-rewarded, they become more accustomed to remaining in the organisation and affirming its accomplishment (Tran et al., 2024).
Explain how line managers make reward judgements based on organisational approaches to reward. (AC 3.3)
Making Reward Judgements: Organisational Approaches
Ethics and Organisational Values and Specific Policies
GA Pensions monitors their activities to motivate management to make fair reward decisions based on the ethical standards and core values of the organisation. These values generally seek to put these principles first, which may give rise to such notions as justice, ethics, and relationships founded on respect. Managers guarantee control and equity by adapting the reward decisions according to these fundamental principles.
Potential rewards for G.A. Pensions may include the decision-making process of identifying the line managers. This policy refers to the standard of various types of rewards, such as bonuses, variable salary increases, or promotions. Compliance with standard rules enables line managers to guarantee that the parties are treated consistently and are not subject to discrimination (Hana, 2022). For instance, if G.A. Pensions has a policy on performance-based bonuses, line managers can use past performance metrics to decide who will be eligible for bonuses to carefully achieve transparency and fairness in reward decisions.
Line Management Approaches to Non-Financial Rewards
Along with monetary rewards, G.A. Pensions may, for instance, come up with an approach that involves non-financial rewards such as compatible working schedules, recognition programs, and the development of individual careers. Line managers can be used to make these evaluations for the awards that will not only be financial but will also improve productivity and inspire employees (Hana, 2022). Also, work-life balance could be achieved by letting people work flexibly or at home.
How These Approaches Promote Consistency and Fairness
Ethical models enable managers to implement a rule of straight decision-making and a consistent judgment of remuneration based on predefined parameters and standards (Hana, 2022). Ethics and organisational values guide the motivation based on which the rewards are distributed so that while acknowledging the appropriate efforts of the employees, and maintains the more significant principles of the company and creates a work culture of responsibility and fairness.
Checking for Fairness and Equity in Reward Decision-Making
To be fair and transparent, G.A. Pensions could undertake random verifications or calibration processes for line managers as they decide how to distribute bonuses. There is a need for more than one manager to scrutinise and converse the reward proposals with each other to iron out such irregularities and dissuade the role of personal bias (Hana, 2022). Thus, seeking and implementing diverse views and input from all the stakeholders in G.A.
References
Ayi, T.D. and Korang, D.V. (2024). Enhancing Organizational Performance: The Impact of Reward Management on Employee Behavior: The Impact of Reward Management on Employee Behavior. Convergence Chronicles, [online] 5(2), pp.1–14. doi:https://doi.org/10.53075/Ijmsirq/655446457564.
Bianchi, C., Bovaird, T. and Loeffler, E. (2019). Applying a Dynamic Performance Management Framework to Wicked Issues: How Coproduction Helps to Transform Young People’s Services in Surrey County Council, UK. International Journal of Public Administration, 40(10), pp.833–846. doi:https://doi.org/10.1080/01900692.2017.1280822. [Accessed 1 Apr. 2024].
Davies, C. (2019). Exploring positive action as a tool to address under-representation in apprenticeships. [online] Available at: https://www.equalityhumanrights.com/sites/default/files/research-report-123-positive-action-apprenticeships.pdf [Accessed 2 Apr. 2024].
Franco-Santos, M. and Doherty, N. (2024). Performance Management and Well-being: A Close Look at the Changing Nature of the UK Higher Education Workplace. The International Journal of Human Resource Management, 28(16), pp.2319–2350. doi:https://doi.org/10.1080/09585192.2017.1334148[Accessed 1 Apr. 2024].
Glowacka, M. (2020). A little less autonomy? The future of working time flexibility and its limits. European Labour Law Journal, 12(2), p.203195252092224. doi:https://doi.org/10.1177/2031952520922246.
Gov.UK (2023). Employment Rights Act 1996. [online] Legislation.gov.uk. Available at: https://www.legislation.gov.uk/ukpga/1996/18/contents [Accessed 1 Apr. 2024].
Hana, A. (2022) Supporting line managers to make reward decisions – the role of people professionals, LinkedIn. Available at: https://www.linkedin.com/pulse/supporting-line-managers-make-reward-decisions-role-hana-al-khalidi/?trk=pulse-article[Accessed 1 Apr. 2024].
Tran, C.T.H., Tran, H.T.M., Nguyen, H.T.N., Mach, D.N., Phan, H.S.P. and Mujtaba, B.G. (2024). Stress Management in the Modern Workplace and the Role of Human Resource Professionals. Business Ethics and Leadership, [online] 4(2), pp.26–40. doi:https://doi.org/10.21272/bel.4(2).26-40.2020. [Accessed 1 Apr. 2024].
Must Read: