(Solution) line managers make reward judgements based on organisational approaches to reward. (AC 3.3)


Approaches to reward

Organisational approaches to reward include organisational culture, values, policies and ethical behaviours and non-financial rewards like career development and work-life balance (Cotton, 2022). These approaches influences how reward decisions are made and hence, line managers should first study them and rely on these approaches to make effective decisions.

Organisational culture comprise of values, policies and ethics. Line managers within Body Image can think about rewards as a system that recognises and appreciates people for how they behave and contribute to the organisation. If employees lives by policies, ethics and values which constitute to organisational culture, then they should be rewarded accordingly. When reward practices fails to align with organisational culture, people can feel dissatisfied and disillusioned. How line managers reward people plays a significant role in shaping corporate direction. For instance, if Body Image want its core value to be innovation, this element should be reflect in the reward judgements (Aboramadan et al., 2020). If ethical practice calls for fairness and equality, then reward decisions should demonstrate fairness and equality (Paais and Pattiruhu, 2020).

Non-financial rewards like career development and work-life balance also informs reward judgements. Some organisations have learning and development programmes designed to increase employee intrinsic motivation. These developmental programmes can serve as benefits for employees to continue working hard to achieve corporate objectives. Similarly, line managers can reward employees through work-life balance options such as paid holidays and leaves, rest breaks and working from home. Employees who have effective work-life balance are more likely to have less time off from work and more productive. Body Image will also have happier employees who feel that they can live their lives outside workplace.

Checking fairness and equity

Body Image can use equal pay audit and gender pay gap to check whether reward decisions are equal and fair to everyone. Equal pay audit are carried out to understand all forms of rewards such as bonuses, allowances and salary while gender pay gap determine the different in how men and women are paid. By assessing these areas, Body Image will be able to understand whether its reward decisions are fair and maintain equity.

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