-67%
Solution
Task One – Report Section Once
| Evaluate the principles of reward and its importance to organisational culture and performance management. (AC 1.1)
Short references should be added into your narrative below. Please remember to only list your long references in the reference box provided at the end of this section.Word count: Approximately 300words
|
| GA Pensions can approach reward methods and processes by using the principles of rewards. They serve as the foundation for efficient reward strategies and give organizations direction for decisions involving rewards.
Consistency in rewards provision – No employee is given a different reward without justification or at random. According to CIPD (2022), this is with the rewards being offered with consistency and informed by demand. Transparency –Stakeholders affected by reward methods and processes should be informed (Glassdoor Team, 2019). Employees’ opinions should be considered when making award decisions, according to GA Pensions. Fairness- Sense of self when delivering awards, HR professionals and line managers must adhere to the equal pay rules. Employees must believe they are being treated fairly. Aligned with organizational Objectives/goals – Employees should be encouraged by rewards to accomplish organizational goals and objectives.
The importance of culture By promoting positive attitudes and behaviors inside the organization, the principles of incentives have an impact on organizational culture as evidenced by Ohio University (2022). GA Pensions must recognize and appreciate people for their original thinking if it hopes to foster an innovative culture. Positive company culture is essential for retaining personnel. Because they aid in integrating beliefs and ethos into culture, awards that are built around reward principles can help employees feel more connected to the organization’s mission. However, neglecting to base rewards on reward principles can have a detrimental effect on culture by fostering employee discontent and unfairness views. Importance of performance management According to Pascasilla et al (2020), in order to fulfill organizational goals and objectives, employees need to feel motivated and satisfied at work. Rewards are crucial to performance because they motivate workers to put in more effort. Monitoring progress and honoring individual contributions are two additional benefits of performance management. When supervisors do not recognize employees for their hard work, a negative effect may result. As a result, performance may suffer and absence rates may be high.
|
| Explain how policy initiatives and practices are implemented. (AC 1.2)
Short references should be added into your narrative below. Please remember to only list your long references in the reference box provided at the end of this section.Word count: Approximately 300 words
|
| Initiatives for reward policies provide as recommendations for designing and implementing equitable, open, and transparent rewards as evidenced by REBA (2021). Total reward policies and achieving equitable compensation are two instances of reward policies in the context of GA Pensions. The following measures must be taken in order to implement these policies:
Assessing the current policy initiatives – Assessing the existing policies at GA Pensions is the first step towards setting up a reward program. GA Pensions HR can expand on the incentives being provided to create something valuable for everyone. Analyze the pros and cons of the current policies. Asking for ideas from employees – Include team members from the organization in the implementation process. Participation includes highlighting the significance of the new award policies and inviting teams to share their opinions. According to CIPD (2023), the line manager’s and HR’s responsibility is to speak with and meet with the affected stakeholders. Using employee ideas to drive design – The design process should be led by the team’s ideas. Create a reward system that is equitable, consistent, and equal. Think about the particular benchmarks that teams must achieve to receive awards. Integrate and monitor the policy – Implement the incentive policy and let staff know about any modifications. Evaluate and measure reward effectiveness – The efficiency of the newly implemented effort, including its successes and failures, must be understood by HR professionals. Employee retention, contentment, improved performance, and productivity are some measures to track (Holliday, 2022).
|
| Explain how people and organisational performance can impact on the approach to reward. (AC 1.3)
Short references should be added into your narrative below. Please remember to only list your long references in the reference box provided at the end of this section.Word count: Approximately 250 words
|
| The capacity of employees to carry out their tasks and obligations in accordance with their employer’s requirements is known as people performance. The capacity of an organization to accomplish its goals and objectives is known as organisational performance (Ibrahim & Daniel, 2019). The amount of time it takes a project to be completed successfully and the capacity to produce high-quality goods and services can be used to gauge a person’s performance. On the other hand, critical measures including profitability, gross margin, and liquidity ratios are used to gauge organizational performance. GA Pensions should consider different aspects during performance management, including openness and justice. Everybody should be made aware of the procedures utilized to reward staff, and these procedures should be equitable to all.
Through important factors like absence rate and product and service quality, people performance can have an impact on incentive strategy. GA Pensions can respond by raising compensation and offering competitive employee benefits. Lack of recognition and appreciation may be a major factor in the higher absence rate. The method to reward is also impacted by the quality of the goods and services. GA Pensions would give workers external incentives to encourage them to concentrate on delivering high-quality products and services (Fatima, 2021). The way in which rewards are given might be connected to a number of concerns with organizational effectiveness. These concerns include talent competition and legislative changes. GA Pensions may decide to give greater compensation and perks to attract and keep talent as a result of increased competition for talent. GA Pensions will have to adapt its pay structure to reflect new minimum wage rates in the event that the National Minimum Wage changes.
|
| Compare two different types of benefits offered by organisations and the merits of each. (AC 1.4)
Short references should be added into your narrative below. Please remember to only list your long references in the reference box provided at the end of this section.Word count: Approximately 300 words
|
||||
| Employee rewards that aren’t paid out in cash are known as benefits. Since the employer is providing the funds, the organization will bear the costs (Cotton, 2022).
Car allowances – When necessary for the job or to acknowledge the employee’s position,GA Pensions may offer a car allowance (Cotton, 2022). The advantages of a car allowance include reduced employee travel, fuel, and maintenance expenses. These expenses can only be incurred by the employer, not by the employee. Employees may be inspired to work harder if they are happy. Profit sharing – According to Kagan (2019), when the business accomplishes a specified profit target, GA Pensions can agree with its employees to give them a profit share. It is a strategy for encouraging workers to concentrate on the goals and objectives of the company. Its main benefit is maintaining staff alignment with the organization’s mission, objectives, and goals. It may also serve as a long-term retention technique for GA Pensions. When the business and its personnel are functioning well, they are appropriate. For the similarities, car allowances and profit sharing are meant to boost the employees commitment to the organisation. This is by facilitating their operations to increase their level of satisfaction with the organisation for supporting their operations. Also, both car allowances and profit sharing are meant to offer a further motivation in executing their roles. This is with the organisation being regarded as an employer brand. Conversely, for differences, profit sharing is pegged at the employees achieving something. The employees can only be offered with an opportunity for profit sharing when they assisted the organisation. This is different from car allowances which is not pegged to any performance. Also, with profit sharing being less costly to the organisation, car allowances are coming from the employer revenue hence expensive.
Benefit CIPD (2023) defines benefit is an advantage or profit gained from something that helps or assists employees to improve their well-being, such as healthcare, paid time off, retirement funds, or financial perks. Financial benefit Performance bonuses GA Pensions could offer performance bonuses incentivise strong annual results by rewarding employees who exceed objectives with additional monetary rewards paying out immediately. Performance bonuses can drive higher productivity and motivate staff to surpass goals (Kagan, 2022). However, they also involve substantial financial cost and may increase political tensions between high and low performers if not structured equitably. Clear communication is needed regarding targets and payouts. Non-Financial benefit Flexible working arrangements Flexible working arrangements allow employees to balance work responsibilities with personal commitments, improving work-life integration and job satisfaction as reported by UN (2023). Flexible working appeals to work-life balance seekers and helps retention, but can be challenging to implement due to monitoring and communication issues. It may create perceptions of unfairness and lower in-office collaboration if not applied consistently (Minutedock, 2020). Clear policies are needed regarding availability and accountability. Similarities Both performance bonuses and flexible working arrangements aim to improve employee satisfaction and productivity. They reward high performance and accommodating personal needs respectively. When implemented effectively with transparent policies, goals and guidelines, they can motivate staff and enhance commitment to the organization. However, inconsistency in application may breed resentment and perceptions of unfair treatment requiring careful management and communication. Differences
|
Please click the following icon to access this assessment in full
