Reward for performance and contribution
Reward for performance and contribution
- This document will help you to answer all Learning Outcomes.
- The AC points, command words and indicative content are provided in the grey boxes for information only, whereas the righthand column provides you with more definitive aspects we would expect to see in your answers.
- Always apply/use current workplace examples to demonstrate your knowledge or alternatively discuss a suitable case study with your advisor.
- 3900 Words – Allow more wordcount for the higher-level command verbs such as: Evaluate, Assess, Compare and Develop. Lower-level command verbs are Explain and Review.
| Use this column to help structure your submission answers | Make sure you cover these points in each section | |||||||||||||||
| Learning Outcome 1: Understand the impact of reward approaches and packages. | ||||||||||||||||
| 1.1 Evaluate the principles of reward and its importance to organisational culture and performance management.
Key word – Evaluate to judge or determine the significance, worth, or quality of something
Indicative content: Principles of reward: the total reward approach, intrinsic and extrinsic rewards; fairness, consistency and transparency, promoting a culture of trust, balancing internal fairness with external market rates; integrating reward with business objectives; implementing reward policies and practices; role of reward in good work; related legislation and its application. Importance to organisational culture and performance management: reward strategies that support the organisational culture and values; recognising and rewarding performance; stimulating performance by rewarding for value created; engaging employees to drive performance. |
Explain three principles of reward.
State the importance of each to; – organisational culture and – performance management.
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| 1.2 Explain how policy initiatives and practices are implemented.
Key word – Explain make something clear or easy to understand, by describing or giving information about it
Indicative content: Policy initiatives and practices: definitions of fair, equitable and consistent; felt-fair principle; challenges of providing external competitiveness vs internal equality; assimilation policies; protection policies; role of line managers. Implementation processes ranging from collaboration and involvement to requirement and imposition. |
Explain three issues that must be considered when implementing reward initiatives and policies.
A tabular format may be used:
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| 1.3 Explain how people and organisational performance can impact on the approach to reward.
Key word – Explain make something clear or easy to understand, by describing or giving information about it
Indicative content: Definition and measurement of performance; effectiveness of performance; external pressures and competition; historical expectations; financial standing of departments and organisation; contribution to organisational objectives; legislation; fairness and equality; working hours; level of skills achievement.
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Provide a definition of performance.
Explain ways to measure and reward performance using two headings: 1) People performance 2) Organisational performance Explain 1 or 2 approaches under each that will have an impact on reward strategies. Relate to your own organisation or one you know well. Examples could be; 1) Bonus’s, individual contribution to organisational objectives, level of skills achieved. 2) Profit related pay, historical expectations, external pressures and competition, legislation requirements; fairness/equality/ working hours.
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| 1.4 Compare the different
types of benefits offered by organisations and the merits of each.
Key word – Compare looking for similarities and differences between things
Indicative content: Types of benefits offered and merits of each: types of benefits such as performance-related pay; profit-sharing; gainsharing; share ownership; payment by results; bonus schemes; commission, pensions, healthcare, insurance cover, sick pay, enhanced redundancy pay, career counselling, company loans, season ticket loans, company cars, concierge services, fees to professional bodies, enhanced maternity, paternity and adoption leave and pay, childcare, sports and social facilities, etc; flexible benefits; impact of reward costs and ability of organisation to resource these costs; development of budgets and resource recommendations. Individual differences in what is important in their reward; merits of each type of benefit: general merits include increased employee engagement, motivation and commitment to the organisation, reduced churn, helps to attract employees to the organisation.
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Choose four different types of benefits offered by your organisation or one that you know well and comment on the merits of each benefit. You then need to compare the similarities and differences between these benefits. You might want to use a table to do this.
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| 1.5 Assess the contribution
of extrinsic and intrinsic rewards to improving employee contribution and sustained organisational performance.
Key word – Assess Judge the importance of.
Indicative content: Measurement, equity, expectancy, teamworking, intrinsic orientation, senior management support, impact on motivation and results; linking behaviours and achievement measures directly to rewards.
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Explain the concepts of extrinsic and intrinsic rewards citing some examples. You must then assess how these can improve employee performance and help in sustaining organisational performance.
Assess – provide a summary statement to judge their value and importance towards improving employee contribution and sustained organisational performance. You are required to make a reasoned judgement. Suggested format;
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| Learning Outcome 2: Be able to develop insight from benchmarking data to inform reward approaches. | ||||||||||||||||
| 2.1 Assess the business context of the reward environment.
Key word – Assess Judge the importance of.
Indicative content: Context of the reward environment: levels of business activity and confidence; economic outlook; industrial trends and sector profiles including common reward packages – private, public and voluntary; equality legislation; regional differences in pay; occupational classification, labour force trends, pay reviews and pay trends; international comparisons, legal frameworks and cultural drivers. Internal and external factors: for example labour market, human capital, efficiency wage and agency; the psychological contract, expectancy and equity; collective bargaining and pay determination; development of pay determination, the increasing regulation of pay, competitiveness, external and internal equity.
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Using a recognised tool such at STEEPLE or SWOT Analysis complete an assessment of factors affecting the reward environment. (Include your STEEPLE or SWOT as a separate piece of evidence).
Choose two internal and two external factors that have an impact on the reward environment in an organisation from your STEEPLE or SWOT analysis and elaborate on how they are affecting your organisation or one that you know well.
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| 2.2 Evaluate the most appropriate ways in which benchmarking data can be gathered and measured to develop insight.
Key word – Evaluate to judge or determine the significance, worth, or quality of something
Indicative content: Sources of intelligence; evaluation, reliability and measurement of data; earnings, working hours, inflation, recruitment and vacancies; unemployment, pay settlements, bargaining and industrial disputes; reward and salary surveys, payroll data; government surveys, statistics and requirements. |
Evaluate the advantages and disadvantages of at least three different ways in which benchmarking data can be gathered and measured. You should also clarify how this insight can assist the business in determining reward decisions by commenting on the reliability and applicability for each method.
You could use a tabular format:
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| 2.3 Develop organisational reward packages and approaches based on insight.
Key word – Develop elaborate, expand or progress an idea from a starting point building upon given information.
Indicative content: Use of benchmarking data to develop appropriate reward package. Grade and pay structures; job evaluation schemes; systems and processes to manage job evaluation and levelling of jobs, boundaries and controls to maintain grade structure integrity and to avoid drift; market rates. |
Demonstrate how you have/would develop a reward package based on internal and or external insight for your organisation or one that you know well.
Evidence examples: a job evaluation, market pricing, controls to maintain grade structure integrity and to avoid drift; reward package you have contributed towards.
Insights: Use of benchmarking data to develop appropriate reward package, use of job evaluation schemes to manage job evaluation and levelling of jobs.
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| 2.4 Explain the legislative requirements that impact reward practice.
Key word – Explain make something clear or easy to understand, by describing or giving information about it including not only what but why or how.
Indicative content: Equal pay and reward, minimum pay, working hours, holiday and absence legislation, reporting requirements such as gender pay gap, CEO pay ratios, annual reports. |
Referring to current UK legislation, explain at least three different areas of law and regulation that impact on reward practices.
Examples could include; Ø Equal Pay Act Ø National Minimum Wage Ø National Living Wage Ø Working Time Directive Ø Statutory Leave Entitlements (Holiday/Absence) Ø Gender Pay Gap Ø CEO Pay Ratios Ø Annual Reports
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| Learning Outcome 3: Understand the role of people professionals in supporting line managers to make reward decisions.
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| 3.1 Assess different approaches to performance management.
Key word – Assess Judge the importance of.
Indicative content: Performance review meetings; developing capability through continuous professional development (CPD), models of facilitation, coaching and mentoring; objective-setting, appraisal process, 360-degree feedback, relationship between performance management and reward. Advantages and disadvantages of different approaches. |
Describe the relationship between performance management and reward.
Assess the strengths and weaknesses for at least three different approaches to performance management such as; Ø Performance review meetings Ø Developing capability through continuous professional development (CPD) Ø Coaching and mentoring Ø Objective-setting Ø Appraisal process Ø 360-degree feedback A tabular format can be used along with a conclusion to show your reasoned judgement on the different approaches you have assessed.
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| 3.2 Review the role of people practice in supporting line managers to make consistent and appropriate reward judgements.
Key word – Review Survey information, methods, outcomes, conclusions, after the event, deciding what was effective or not Indicative content: People professional’s role in supporting line managers in reward decisions and in maintaining equity, fairness, consistency and transparency; compliance with legislation; supporting line manager’s ownership of intrinsic and extrinsic rewards; training, job evaluation, promoting responsibility, opportunities to participate and other intrinsic and recognition rewards; providing reward insight data. |
Review three ways in which people practice can support line managers in making consistent and appropriate reward decisions. This should include your personal review of the effectiveness of each with supporting references and examples.
Three ways from the selection below: Ø Maintaining equity Ø Fairness, consistency and transparency Ø Compliance with legislation Ø Supporting line manager’s ownership of intrinsic and extrinsic rewards Ø Training Ø Job evaluation Ø Promoting responsibility Ø Opportunities to participate and other intrinsic and recognition rewards Ø Providing reward insight data.
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| 3.3 Explain how line managers make reward judgements based on organisational approaches to reward.
Key word – Explain make something clear or easy to understand, by describing or giving information about it including not only what but why or how
Indicative content: Use of policies; organisation values and beliefs; ethics; evidence-based judgements; performance data; decisions about financial rewards; decisions about non-financial rewards such as work-life balance, working conditions, work itself, job enrichment, development. |
Explain the considerations that line managers might use to make reward judgements based on your organisation or one that you know well’s approach to reward. You must refer to at least two approaches towards both financial and non-financial rewards.
You might want to have three headings: 1. Considerations Such as; use of policies; organisation values and beliefs; ethics; evidence-based judgements; performance data 2. Decisions about financial rewards 3. Decisions about non-financial rewards Such as; work-life balance, working conditions, work itself, job enrichment, development.
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