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Description
Flashcards by Tilly Akinwamide, updated more than 1 year ago
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Created by Tilly Akinwamide
about 8 years ago
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| Question | Answer |
| Define 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” |
| Which 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 |
| What are the purpose of Reward Management | Supports 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. |
| List factors of a good reward system | Fairness , 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 |
| What two questions does reward management address ? | (1) How do we value people (2) How do we reward people according to their value. |
| List various types of reward system | (1) Formal ( grade and pay structures) (2) Informal (individual rates, ad hoc decisions on pay progression) |
| What 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 |
| Define 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. |
| Factors 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. |
| Six 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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