Flashcards
Reward Management System
Cards in this deck (10)
- 1Define Reward Management (Armstrong 2013:6)“ strategies, policies and processes required to ensure that the value of people and the contribution they make to achieving organisational, departmental and teams goals is recognised and rewarded”
- 2Which factors may affect the delivery of reward systems- Environment
HR strategies
Business strategies
External factors: globalisation, market value rates of pay, economy - recession, society, UK law, trade unions
Internal factors: culture, sector, work environment, people, business strategy, political and social climate - 3What are the purpose of Reward ManagementSupports achievement of business goals through sustained high performance
Develops, supports and sustains organisation’s performance culture
Helps define performance behaviours and outcomes.
Rewards people according to the value they create through high performance
Rewards according to company’s performance values (exceeding customer expectations). this is a disadvantage
Links reward practices to employee needs (job satisfaction; development expectations; employee benefits).
Attracts and retains high-quality people (instrumental in sustaining performance)
Facilitates employee engagement (to monitor effectiveness of reward systems)
Note : Ghoshal and Bartlett argue that reward management is about adding value to people rather than only attaching value to them. - 4List factors of a good reward systemFairness , Clear process, Consistent
Transparency ( helps employees to trust that the reward system is fair.)
Strategic alignment – linking performance behaviours to core values of PM strategy
Performance related reward
Segmentation - 5What two questions does reward management address ?(1) How do we value people
(2) How do we reward people according to their value. - 6List various types of reward system(1) Formal ( grade and pay structures)
(2) Informal (individual rates, ad hoc decisions on pay progression) - 7What are the 6 elements of a formal reward system.(1) Base pay management
(2) Contingent pay (related to individual merit or length of service)
(3) Employee benefits
(4)non-financial rewards
(5) Performance management ( defines individuals performance and contribution against expectations.Provides instructive feedback that can be used for non-financial reward and contingent pay)
(6) Total Reward - 8Define Job evaluation and explain how it is relevant to reward systems.A systematic and formal process of defining the worth or size of a job in an organisation based on fair and consistent judgement. It is relevant to reward system as they are allocate according the findings of job evaluation which helps place value on a job task.
- 9Factors that need to be considered when designing a new reward system.Clear objectives not ambiguous or subject to interpretation.
What is the business case for it. ( A new scheme should not e introduced without without assessing the effect it will have on engagement and performance of people .
Assessment should be evidence based.
A Cost-Benefit analysis needs to be done.
Implementation plan needs to account for the barriers to reward changes. (Brown and Purcell 2007)
Involvement of stakeholders from the beginning.
Effective Communication. - 10Six tips to developing reward systems(1) Be Clear on what has to be achieved and why.
(2) Make sure your plan fits the strategy and culture of the organisation.
(3) Don't follow fashion- do what is best for your organisation.
(4) Keep it simple
(5) Don't rush
(6) Communicate ,Involve and train.
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- undergrad human resource management Flashcards on Reward Management System, created by Tilly Akinwamide on 22/03/2016.
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- Tilly Akinwamide
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