Solution
Task 1: Report
1.0 Background
In modern business sector, the demand to invest in strategic rewards has increased significantly. As evidenced in Fisher (2015), reward strategy entail an embrace of long-term development, reward policies, practice and process for an entity goals achievement aligned with all stakeholders needs. This generate a sense of purpose, good direction and strategy for developing the reward policies, practice and process. The outcome of this is aligning the organisation strategies and requirements for achieving the employees satisfaction. Considering the Alinma Bank which is the focus organisation, the reward strategy is guided by the necessity for developing values of an organisation and how individuals are rewarded. This is while formulating relevant guide principles for ensuring successful value implementation. The strategy adopted by Alinma Bank, their strategy adopt the insights by Victor Vroom’s Expectancy Theory of Rewards. According to Rehman et al. (2019), this module is based on the assumption that people have varying insights on rewards, expectations for particular actions which are alternatives and decision on subjective comparison approach.
1.1 Report Purpose
This report is provided to the board of directors. It include an in-depth evaluation of the existing strategies in Alinma Bank reward approach. To identify this, an in-depth investigation, details and justification of the different change recommendation. This is achieved through prioritising on the need to align reward framework with the larger context and strategy. This is with organisational reward strategy used to attracting, motivating and talents retention. In this report, the importance of total rewards approach both financial and non-financial has been evaluated, advantage and disadvantages for Alinma Bank. This is with the benefits and challenges incurred in performance appraisal evaluated in line with pay progress decisions.
1.2 Organisation Background
Alinma Bank is a licensed organisation to operate in the Saudi Financial Sector core for every sector by entire standards. As evidenced in Alina (2022) the organisation has growing effectively and contribute immensely for the national economy growth. To evidence its success in operations, the organisation represent the largest developed established Saudi-based banks in regard to the capital used. This ensure the bank is implementing its promising business plans with an intention for advancing their activities and to achieve aspiration of their clients and staff on top of attainment of appropriate returns for future stakeholders values.
2.0 Alignment of Reward Framework to Broader Organisational Context and Strategy
By referencing on Goal-Oriented Theory, Cuevas- Rodriguez et al. (2012), the reward framework harness attraction and retention of best talents and stakeholders perceptions in embrace of quality, competitiveness and relevance. Similarly, the employees are motivated to integrate the most appropriate input and to target strategic attainment of the organisation objectives. Further, in Chipunza and Mupani (2019) prioritising on evaluating the various sectors and organisations, a finding was obtained which hypothesised that in contemporary labour sector, 90% of entities encounter immense challenges for getting, keeping and motivating appropriate talents. In particular, Rahman et al. (2020) highlighted that the COVID-19 pandemic had elicited a lot of impacts in holistic reward management. This is at the same time ensuring labour shortages increase with entities encountering issues with brand in a manner that attract the best people and offer them with value proposition to appeal to al.
2.1 Organisational Strategy
As defined in Laurett and Ferreira (2018), organisation strategy is relevant to create a roadmap to be followed to leverage on competitive advantage. For example, in Alinma Bank based in the highly competitive healthcare sector in Saudi Arabia, for leveraging on competitive advantage, they are found investing in appropriate organisation strategy. Organisation strategy include ensuring effective growth of the sector, appropriate standards achieved to contribute to the country national economy. The elaborately developed strategy lead to an entity identified as an employer of choice. It is by attaining the process an entity strategy guide Alinma Bank is appropriately positioned to reward their staff. Hence organisation strategy alignment is instrumental. Besides, for Alinma Bank operations, the reward framework used is insufficient in regard to attracting employees practices through a holistic recognition. This is affirmed in Carvalho et al. (2019) which recommend on the need to influence employees roles to execute efforts and resources in various situations which act as a guidance to align their approximately 200 staff in KSA.
2.2 Reward Strategy
In contemporary entities, working in the enormously competitive business sector, clear definition for performance measurements and rewards are interlinked. This is supported by Sethunga and Perera (2018) which identify the process as relevant to evaluate overall values of organisation and most appropriate approach to execute their strategy. In Alinma Bank organisation, most of their staff tend to pursue the organisation operations after noting the performance-based pay as relevant to promote their satisfaction and wellbeing. However, a major practice is what Alinma Bank organisation in past years is to rely on automatic time-based step success in pay administration. As evidenced in Khan (2020), there is a necessity for changing this since COVID-19 pandemic was recorded, lacking appropriate pay structure affecting employees motivation in their operations. The Alinma Bank time-oriented practice is misaligned with their business profile as performance is the priority. A case example is operations in General Electric (GE) which has made an appropriate decision on appealing process for effectively and directing pay strategy to appeal to appropriate people. Further, GE operates by offering equity participation to their staff as a major factor of their reward approach in employees earlier stages of employment lifecycle. The outcome of this is effective association and as such performance improvement to execute their functions.
3.0 Organisation Reward Strategies in Attracting, Motivating and Retaining Talents
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