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6 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Definition of Reward Management |
Concerned with formulation & implementation of strategies & policies the purposes of which are to reward people fairly, equitably and consistently in accordance with their value to the organisation to achieve its strategic goals. |
Deals with the design, implementation and maintenance of Reward systems (reward processes, practices and procedures) which aim to meet the needs of both organisation & its stakeholders. |
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10 Aims of Reward Management |
- reward people according to what the organisation values & wants to pay for. - reward people for the value they create. - reward the right things to convey the right message about what is important in terms of outcomes & behaviours. - develop a performance culture. - motivate people & obtain their commitment & engagement. - help to attract & retain the high quality people the organisation needs. - create total reward processes which recognise the importance of both financial & non- financial rewards. - develop a positive employment relationship & psychological contract. - align reward practices with both business goals and employee values. - fair, equitable, consistent & transparent. |
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Fair reward system |
System in which people are treated justly in accordance with what is due to them- their value to the organisation. Operates in accordance with the principles of distributive & procedural justice. |
Distributive justice - how rewards are provided to People. The latter rewarded in accordance with the value of their contribution, that they receive what was promised to them & they get what they need. Procedural justice - Ways in which managerial decisions are made & HR Procedures are put into practice. |
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Equity |
Achieved when people are rewarded appropriately in relation to others within the organisation. |
Equitable reward processes ensure that relativities between jobs are measured as objectively as possible and equal pay is provided for work of equal value. |
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Consistent |
Decisions on pay should not vary arbitrarily and without due cause between people we or VB at different times. |
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Transparent |
People understand how reward processes operate and how they are affected by them. Employees have a voice in the development of reward policies & practices & have the right to be given explanations of decisions & to comment on how that are made. |
The reasons for pay decisions are explained to employees at the time they are made. |
