(Solution) Level 5 Avado 5HR03 Reward for performance and contribution

Task One:  Presentation to key stakeholders

The HR director has asked you to create a presentation which will be delivered to the key stakeholders in the business. This presentation will focus on the approaches to reward and the role people professionals play in supporting line managers when developing reward packages. This presentation will also link in methods of performance management to support line management decisions. You will need to include research around the area of reward and performance management and link in business examples to support your research and show further depth.

This presentation will need to be created in PowerPoint and have accompanying notes pages to expand on ideas and concepts.

Your presentation notes pages must include:

  • An evaluation of two of the principles of reward (intrinsic and extrinsic reward and integrating reward with business objectives) (1.1).
  • An evaluation as to why organisational culture and performance management are important to the principles of reward (1.1).
  • An explanation of how Home International can implement new policy initiatives and practices in relation to rewards across the organisation (1.2).
  • An explanation of how both people and organisational performance within Home International can impact its approach to rewards both positively and negatively (1.3).
  • Using Home International and a second business example, produce a comparison of performance-related pay and intrinsic rewards as examples of benefits offered by each different organisation (1.4).
  • An assessment of the benefits and drawbacks of how extrinsic and intrinsic rewards contribute to improved employee contribution and sustained organisational performance (1.5).
  • An assessment of the effectiveness of performance review meetings and 360 degree feedback as approaches to performance management, including a review of the role that the people practice professionals within Home International can take to support you as a line manager, to ensure consistent and appropriate reward judgements are made (3.1).
  • An explanation as to how line managers can make reward judgements based on organisational approaches to reward (3.3).
  • A review of how people practice professionals can support line managers to make consistent and appropriate reward judgements.  The CIPD have provided a document called ‘The People Profession: now and for the future’, which can help you with this. (3.2)
Your evidence must consist of:
A presentation with supporting notes of approximately 2000 words (+ or – 10%)

Task Two: Briefing paper to inform future reward approaches at home international

For this task you are required to create a briefing paper which will be used to inform future decisions around Home International’s approaches to rewards. This document must summarise the research you have carried out around rewards, which will then allow you to create your own reward policy for the organisation.

You will need to gather research for this task which will provide the context for the different environments for reward, what should be included in a reward policy, and the legal requirements, these will help you create and develop your own package.

Your briefing paper must include:

  • An assessment of industrial trends and sector profiles linked to common reward packages and levels of business activity relating to the context of reward environment within Home International (2.1).
  • An evaluation of how unemployment and payroll data can be used by Home International to develop insight into benchmarking reward data (2.2).
  • An example of a reward package that you have created for Home International. This should include:
    • An appropriate reward package supported with benchmarking data
    • A job evaluation scheme
    • The market rates relevant to the roles within Home International (2.3).
  • An explanation as to the legal requirements in relation to minimum pay and working hours that might impact Home International’s reward practice (2.4).
Your evidence must consist of:
A briefing paper of approximately 1600 words (+ or – 10%)

Table of Contents

Introduction. 2

1.1 Principles of Reward; Organisational Culture and Performance Management. 3

1.1 Organisational Culture and Performance Management to Principles of Rewards. 4

1.2 Policy Initiatives and Practices. 5

1.3 People and Organisational Performance Impact on Approach to Reward. 7

People Performance. 7

Organisational Performance. 7

1.4 Types of Benefits Offered by Organisations and Merits. 8

1.5 Extrinsic and Intrinsic rewards for improving employee contribution and sustained performance. 9

Employee contribution. 9

Sustained Organisation performance. 10

3.1 Performance Review Meetings and 360-degree feedback. 10

Performance review meetings. 10

360-Degree Feedback. 11

3.3 Line Managers Reward Judgments for Organisational Approaches to Reward. 12

Task 2: Briefing Paper. 13

2.1 Industrial trends and sector profiles to common reward packages. 13

Internal Reward Environment Analysis. 13

External Rewards Analysis. 14

2.2 Unemployment and Payroll Data in Home International 14

2.3 Reward Package Example. 15

Benchmarking Data. 15

Job Evaluation Scheme. 16

2.4 Legal Requirements in Relation to Minimum Pay and Working Hours. 17

References. 18

Task One: Presentation to Key Stakeholders



The title of this report is to evaluate the impact of reward approaches and packages and roles played by people professionals to support line managers in reward decisions making.

1.1 Principles of Reward; Organisational Culture and Performance Management

Intrinsic rewards- These are defined by Manzoor et al. (2021) as including various incentives provided to an organisation employees. It is also noted as internal rewards provided to the employees from their success in executing a project. The strengths of this reward is its impact on emotional progress and motivating employees in improving and developing sustainable behavioural change informed by their needs. Considering Home International organisation, satisfaction would be achieved by venturing in Gig economy successful. The drawbacks of this reward is employees only putting their efforts towards rewards provision and not to the organisation gain.

Extrinsic rewards- As explained in CIPD (2022), the extrinsic rewards are grouped into financial or tangible rewards provided to employees inclusive of pay increase, bonus and benefit.

The advantage of this entail direct control to the engaged individuals and all organisation stakeholders. Further, albeit of extrinsic rewards not directly associated with employees success, they promote a feel of being appreciated, encouraged to progress with their functions. Their disadvantages are failing to harness passionate and this is a bad image. Considering Home International case, by offering their employees with extrinsic rewards, motivation are increased hence ending up embracing hard work. This is supported by Manganelli et al. (2018) note as developing a good culture of immensely talented workers. Home International as they are intending to work in Oxford, Munich, Santa Cruz, Suez AND Kuala Lumpur.

Rewards integration with business objectives- As evidenced in CIPD (2022a) report, organisations fail in prioritising on importance of integrating rewards to their core objectives. This is not supposed to be the case as there is a need of ensuring expectations of employees are prioritised and integrated to business objectives.

1.1 Organisational Culture and Performance Management to Principles of Rewards

Organisational Culture- In Forbes (2021), organisation culture and behaviours identify organisation progress. The foundation of this is evidencing how things ought to be pursued in an entity context. A case example is a globalisation culture in Home International defined by risk takers contrary to conformers.

The importance of embracing culture to reward management is guided by view that human relationships and scope of interacting are implemented. For Home International case, by offering their staff with total and strategic rewards, organisation culture is harnessed, employees needs prioritised and fairness and consistent support.

Performance Management- According to MSG (2022), by embracing good reward strategy, it is possible attracting outcome-based professionals. This is to thrive and succeed in the business sector. According to Dan Pink Theory, for the intrinsically motivated staff, drivers of motivation are important to succeed in performance management (Pink, 2018). For Home International, this is by setting priority to be on noting on value aspect and recognising rewards practices.

1.2 Policy Initiatives and Practices

A recent report has highlighted that upto 95% of all contemporary entities encounter issues when it comes to being able to implement rewards policies and practices (HRD Connect, 2021).

Considering Home International case, the importance and benefits are;

Monetary Reward Policy

In regard to the case of Home International, considering Brexit policy enormous implication on their policies, costs incurred and profits, rewards policy is core. The employees would be provided with good bonus and allowances for their roles implementation. This inform what Laplane and Mazzucato (2020) has identified as the best approach in consistent practices and prioritisation of the external competitiveness of different departments. Home International would also be successful here by making sure employees engagement guide their pay threshold.

Non-Monetary Reward Policies

In order to implement this policy, monetary rewards could be integrated to non-monetary rewards collaboratively and interlinked effectively. In Rajapaksa et al. (2019) study findings, positive adoption of motivation approaches and a feel of recognition is core. Considering Home International case, this can entail providing all specific employees groups with accommodation facilitation, transportation cost catered, L&D opportunities supported by line managers.

Considering relevant steps to be followed to implement, they are;

Identify issues and agendas for development- The prevalent issue in this regard include rewards management in a holistic manner. Considering Home International case, this entail recognising various policy gaps which ought to be established. In this first phase, stakeholders functions are evidenced and level of involvement noted.

Formulate and adopt- This phase entail to formulate and accept a policy. A case example is Home International which could prioritise on continuous change implementation for all incentives management. This can be attained by stakeholders being holistically satisfied.

Implement the policy- The various reward policies must be future-based (Zhen et al., 2018). This is at the same time following good measures and resources allocated well. For Home International, as a best practice, they could work with various specialists in guiding successful process implementation. The process is pursued to eliminate issues and challenges which arise from elimination of issues which arise from reward implemented.

Monitor and evaluate–  This phase entail examining all effects, process and cost-benefit analysis (MSG, 2021). To note the extent of total rewards policies provision, level of their suitability to the employees and entire stakeholders is evidenced. This is while targeting rewards assisting Home International improving organisation dominance and profitability.

1.3 People and Organisational Performance Impact on Approach to Reward

People Performance

Positive Impacts

One of the positive impact in rewards is highlighted in Lloyd and Mertens (2018) based on Expectancy Theory of Rewards as informed by total reward system. A case example is the Home International which has 175 staff being affected in full and part-time contracts where high performance is attained for total rewards.

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