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 300 words |
| Principles of rewards are strategies which can be used by GA pensions in dealing with reward practices and initiatives. They represent the foundation for appropriate reward policies and offer entities with support for making rewards-based decisions (CIPD, 2023). These principles are; Functioning consistently– The reward decisions are not varying arbitrarily and would be provided at all times in the same way to different employees. Transparency– The reward strategies and approaches need to be shared with their different stakeholders impacted (Personnel Today, 2022). For GA pensions, they can engage all staff in integrating their views on rewards. Fair implementation– GA Pensions people practice professionals and their line managers would need to be fully compliance with the equal pay legislation in rewards distribution. All the employees are supposed to assume a feeling of being handled with just. Alignment with Organisation Objectives– According to Cornelius du Preez and Folinas (2019), rewards are drivers of organisations performance and productivity. In this regard, the rewards types must mirror the objectives/short and long-term goals. Importance to Culture The identified reward principles have an impact on organisation culture by putting in place appropriate behaviours, norms and attitudes defining their practice. For GA Pensions, for their innovative culture, there would be a need for offering rewards which attract the employees to share creative ideas. This would lead to positive culture developed critical for maintaining he employees. The rewards are set in a manner that they are lined with the purpose since they assist in integrating values and ethos in their culture. Besides, failure of designing rewards in line with the principles has a negative impact to the culture by eliciting dissatisfaction and feel of unfair treatment. Importance to performance management Issuing fair-based and transparent rewards improve the level of motivation and satisfaction of the employees essential for achieving their set goals (Saether, 2020). The rewards are relevant in performance since they offer an encouragement to the employees to progressively work hard. The performance management similarly assists in tracking the progress and rewarding input of the staff. For negative impact, this can be event in an event managers are not in a position of rewarding employees for doing good. Hence, performance can end up decreasing with immense absenteeism levels recorded. |
| 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 |
| According to CIPD (2023a), reward policy initiatives represent guidelines which assist an entity in designing and implementing fairly, transparency and equal rewards. The examples of the reward policies which GA pensions could adopt include total reward policy or maintaining an equal pay policy. An implementation of the policies would follow below steps; Assessment of policy initiatives– At the start, the reward policy implementation include assessing reward policy for starting the assessment of all the policies for GA pensions. GA pensions people practice professionals could be engaged in identifying what is required for all. Assessing what was successful or unsuccessful after the process is implemented is put into account. Sourcing for ideas from Staff– This entail actively engaging all the members of an organisation in the implementation. This is by two-way communication process to create awareness on the relevance of reward policies and to encourage various teams in providing their input and idea. Engaging employees input in driving designing of rewards– The ideas sourced from the different teams is used for driving the designing strategy. The reward policy designing is done equally, fairly and consistently. According to Roszkowska and Melé (2021), the reward policies need to be encouraging and reinforcing appropriate behaviours and cultural practices. Integrating and monitoring policies– This include ensuring that the reward policy is actioned and communicated with entire changes for staff put in place. Evaluation and measuring rewards success– This last phase entail the people practices are understanding the success of new policies initiatives inclusive of successful and non-successful areas. According to Asaari et al. (2019), monitoring of the rewards success entail the adoption of success and non-success metrics. These are staff turnover mitigation, satisfaction level, performance increase and productivity. |
| 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 |
| People performance can be defined as the employees capacity of managing their roles and assigned responsibilities in line with organisation/employer expectations. Conversely, organisation performance is the capacity of achieving their set goals short and long-term (Anwar & Abdullah, 2021). Measurement In order to measure people performance, the best practice is evaluating the amount of time used in competing a project and capacity of producing high-level quality of goods and services (Asgari et al., 2020). Conversely, organisational performance is measured by use of different metrics which include profits, gross margin and liquidity ratio. For GA pensions, the organisation adopts a set of principles including transparency and fair-based practice. All individuals are supposed to appreciate these measures as they define their reward process with fairness and transparency. Impacts The impact of people performance on reward strategy include managing challenges including absenteeism and the products and services. Lacking the rewards and recognition could be a significant determinant of increased absenteeism in GA pensions. This could be managed through managing pay increase and competitive staff gains. The goods and services quality similarly impact the approach of reward. GA Pensions can offer their staff with intrinsic rewards for their motivation in focusing on production of high-level quality goods and services (CIPD, 2022). For organisation performance, a set of issues are associated with reward approach. The noted issues are competitiveness fort talents and change in laws (Rehman et al., 2019). In a labour market where talents are being competed for, this lead to GA pensions providing improved pay and benefits for attracting and retaining best talents. The changes in National Minimum Wage requirements could contribute to GA Pensions altering their remuneration structure with national minimum wages appropriately updated. |
| 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 |
| Car Allowances The advantages of the allowance entail employees being saved of their travel costs, fuelling their vehicles and mechanic costs. All these costs are incurred by the organisation as opposed to an employee. Also, the merits of car allowances include motivating staff for working hard with happiness increased (Kadir et al., 2019). The cons include immense costs incurred in its implementation. Also, the costs would incurred affecting the productivity of the employees. Profit Sharing This is a type of a benefit where GA Pensions could make an agreement with their employees to offer them with an opportunity to share profits when a particular milestone is achieved (Kalogiannidis, 2020). The main strength of this is ensuring employees are understanding entity role, purposes, goals and objective. Another strength of this is increasing retention levels of the employees. For disadvantages, the employees could fail to note when the organisation incur profits. Also, when profits are not achieved in an organisation, employees end up demotivated. Pension Schemes GA Pensions could make a decision of paying their employees with pension schemes after retiring from their work. The advantage of this include guaranteeing the employees of a good future after they retire. Also, it is a form of offering staff financial safety. The disadvantage of this entail the employees lacking a direct control on the resources put in place (Abruquah et al., 2019). Also, another con is that they cannot be transferred to beneficiaries. Considering similarities, all the three benefits are important to attract, retain, motivate and improve the employees wellbeing level. GA Pensions could provide their employees with broad range of benefits for attracting ad retention of talents in a long-term basis (Werner & Balkin, 2021). The distinction of the benefits include car allowances harness the travelling capability of the employees. Pension schemes offer finance support from retirement. The profit sharing improve staff current financial wellbeing during their work time. |
| Assess the contribution of extrinsic and intrinsic rewards to improving employee contribution and sustained organisational performance. (AC 1.5) 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 |
| Extrinsic Rewards Extrinsic rewards are identified as being offered after successfully executing their functions such as pay, job promotion and bonus. According to CIPD (2019) the rewards can be noted as being tangible and lead to staff assisting them in meeting their physiological needs and being motivated. A common consideration amongst the employees is the money which are provided to represent motivation for their input. These are core for staff living and standards. Considering Maslow Hierarchy of needs Theory, employees require improved remuneration for achieving their basic needs including food, shelter, clothing and water. By promising the employees a good pay and bonuses, their motivation is increased for achieving organisation goals and objectives (Sidhu & Nizam, 2020). This could contribute to an increase in profits acquisition and revenues gained. Besides, extrinsic rewards also include short-term based organisation performance. A pay cut or getting the bonuses lead to an improved staff performance. By having a pay cut or bonus being issued, this is demotivating to their performance. Intrinsic Rewards Intrinsic rewards occur in an internal manner and are long-term oriented. They are not linked to monetary value albeit staff feeling after appreciation to complete their roles with success (Manzoor et al., 2021). The outcome of this is employees assuming a feeling of satisfied in their roles, motivated, achieving their functions and appropriate emotion. Similarly, a positive impact is incurred on staff attainment of their self-actualisation. They are important to ensure an organisation achieve sustainable performance. In an event the staff manage completing their job roles with success and experiencing a high-level of satisfaction, they continue to put immense efforts in achieving similar feel and emotions future based. In line with McGregor Theory Y (Tudor & Petre, 2021), the staff driven by intrinsic motivation enjoying to work for an entity. This is core to achieve mission and vision of such an entity. |
| Assess the business context of the reward environment. (AC 2.1) 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 400 words |
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