Managing and Developing Human Resources

Deliverable#2
Deadline: May 18 , 2022 (Wednesday), 11:59 PM

Name : Alexander Cordova Jr.

Section : MBA 1

Task 1: The rationale behind this set of activities is for you to gain an understanding of how high
stakeholders in the field of human resources (VP HR, CHRO) strategize its bundle of HR activities.
Assuming you are just the highest ranked HR personnel in your current organization. Kindly answer the HR
Rewards toolkits below.

A. Analysis of reward strategy

The reward strategy: In full Mostly Partly Not at all

Is aligned to business strategy. ✔

Has clearly defined goals based on business ✔
objectives.

Well-articulated guiding principles exist. ✔

Provides a framework for reward decisions. ✔
Is long term. ✔
Is flexible enough to change when ✔
circumstances require.

B. Analysis of current reward practices

Statement Fully Partly Partly Fully Comments
agree agree disagree disagree

1. We have well-defined and

understood reward guiding
principles.
✔
2. Our reward system effectively
enhances the engagement of
people.
✔
3. We implement our policy on
levels of pay compared with
market rates.
✔
4. We pay insufficient attention ✔
to non-financial rewards.

5. We are satisfied with our

methods of deciding on
internal relativities.
✔
Statement Fully Partly Partly Fully Comments
agree agree disagree disagree

7. We are vulnerable to an ✔
equal pay claim.

8. Our rates of pay are ✔

uncompetitive.

9. We do not have adequate ✔

data on market rates.

10. We have too many grades in ✔

our pay structure.

11. Our grade structure is ✔

too complex.

12. People are fairly rewarded ✔

according to their contribution.

13. Our reward system does not ✔

succeed in motivating people.

14. Our reward system helps to

attract and retain high-quality
people.
✔
15. We get value for money from ✔
our reward system.

16. Our performance management ✔

processes work well.

17. We have an excellent

and competitive range of
employee benefits.
✔
18. There is room for more choice ✔
by employees on benefits.

19. We spend too much on ✔

employee benefits.
 C. Reward attitude survey
Please state the extent to which you agree or disagree with the following statements by placing a circle
around the number that most closely matches your opinion.

Strongly Agree Disagree Strongly

agree disagree

1. My contribution is adequately rewarded. 1 2 3 4

2. Pay increases are handled fairly. 1 2 3 4
3. I feel that my pay does not reflect 1 2 3 4
my performance.
4. My pay compares favourably with what I 1 2 3 4
could get elsewhere.
5. I am not paid fairly in comparison with other 1 2 3 4
people doing similar work in the
organization.
1 2 3 4
6. I think the organization’s pay policy is
overdue for a review.
1 2 3 4
7. Grading decisions are made fairly.
1 2 3 4
8. I am not clear how decisions about my
pay are made.
1 2 3 4
9. I understand how my job has been graded.
1 2 3 4
10. I get good feedback on my performance.
1 2 3 4
11. I am clear about what I am expected to achieve.
1 2 3 4
12. I like my job.
1 2 3 4
13. The performance pay scheme encourages
better performance.
1 2 3 4
14. I am proud to work for the organization.
1 2 3 4
15. I understand how my pay can progress.
1 2 3 4
16. The job evaluation scheme works fairly.
1 2 3 4
17. The benefits package compares well with those
in other organizations.
1 2 3 4
18. I would like more choice about the
benefits I receive.
1 2 3 4
19. I feel motivated after my performance
review meeting.
20. I do not understand the pay policies of 1 2 3 4
the organization.
 D. Implications for reward of business strategy

Possible elements Actual elements Implications for

reward strategy

Business Growth – revenue/profit

●  Growth – Profit Quarterly incentives
strategy if there is growth in
Maximize shareholder value  Growth in
servicing facilities quarter profit
Growth through acquisitions/
mergers  Market
Additional
Growth in production/servicing development
incentives for
facilities  Price/cost recruiting other
Product development leadership people to be part of
Market development team
Price/cost leadership

Business Innovation
●  Maximize added Incentives provided
drivers Maximize added value value if positive feedback
 Productivity from customer
Productivity
Customer service  Customer service Additional
Quality  Quality incentives for all for
Satisfy stakeholders – investors,  Price/cost productivity and
employees, elected representatives leadership Maximize added
Price/cost leadership value
 E.Integration of HR and reward strategies

HR strategy area Possible reward strategy Proposed action

contribution

Resourcing Assess the reward system

● Total reward approaches that
and pay structure to other
help to make the organization a
organization of the same
great place in which to work.
industry or needs to
● Competitive pay structures that competitive
help to attract and retain high-
quality people.

Performance management Pay should be in a

● Contingent pay schemes that
performance basis. Basis
contribute to the motivation
should be clear to all
and engagement of people.
employees. There will be a
● Performance management scorecard or similar to it to
processes that promote continuous assess the employee
improvement and encourage
people to uphold core values.

Talent management There should be annual or

● Non-financial rewards such as
recognition and opportunities for
growth and development.
● Policies that recognize talented
people for their contribution.
● Career-linked grade and pay
structure, for example a
career family structure.
monthly or regular
recognition of employees.
Like the monthly staff of the
month to be posted in the
wall for them to feel that
their hard work are
recognized

Learning and development Review the reward system

● Performance management
and relate it to the
processes that identify learning
employees. There should be
needs and how they can be
learning and development
satisfied.
in areas that employees are
● Career family structures that define considered weak.
career ladders in terms of
knowledge and skill requirements.

Work environment The work environment

● Total reward approaches that
should be a stress free
emphasize the importance of
environment. The benefits,
enhancing the work environment.
compensation and rewards
● Work–life balance policies. should be confidential
 F. Rating framework for reward strategy goals

Goals Importance* Effectiveness*

Reinforce the achievement of 8 7

organizational goals.

Recruit and retain staff of the 8 8

required calibre.

Facilitate staff mobility. 8 8

Strong relationship between pay and 9 9

performance.

Reinforce organizational values. 9 9

Motivating for employees. 10 7

Cost-effective. 9 8

Well communicated and understood 10 9

by employees.

Managed effectively in practice by 9 7

line managers.

Efficient to operate/maintain. 8 8

Flexible, to react to change. 9 6

Others (list).

* Scale: 10  high; 1  low

 G.Review reward options in relation to reward goals and practicality

Strategy area Examples of possible solutions Yes No Modify

√ √
✔
Total reward Introduce total reward approach
✔
Develop new analytical scheme
✔
Develop new non-analytical scheme
Job
evaluation ✔
Modify existing scheme
✔
Rely on analytical matching
✔
Reduce number of grades considerably
(broad-grading)
Grade and ✔
Introduce broad-banding
pay structure
✔
Develop job or career family structure
Financial
✔
Replace pay spine
✔
Introduce performance-related pay
(not pay spine)
Contingent
✔
pay Introduce contribution-related pay (not
pay spine)
✔
Introduce variable pay (bonus) scheme
✔
Revise benefits provision
Employee
benefits ✔
Introduce flexible benefits
✔
Pensions Change to defined contribution scheme
✔
Recognition Introduce formal recognition scheme
✔
Scope for Improve learning and
development development programmes
and growth
✔
Encourage, guide and train line
Non- Autonomy
managers to increase autonomy
financial
✔
Working Develop ‘great place to work’ policies
environment
✔
Work–life Introduce more comprehensive work–life
balance balance policies
 H.Guidelines for formulating reward strategies

To what extent does the reward strategy: Answer

Support the business strategy? Employees will be more productive, there will be more engagement
and improve retention

Support the HR strategy? This will help HR to assess what policy to create or implement

Have clearly defined goals, success criteria and Employee is after the reward. There will be more
deliverables? engagement

Provide a clear basis for future action? Reward system can improve retention

Demonstrate that it can readily be implemented? If there is positive feedback from the employees
Task 2: Kindly write a reflection of:
(1) Activities above in connection with your current practice in
organization and

In my work in NGO set-up, there is no reward/incentives

provided because all expenses are covered within the budget.
There is no retention especially a registered social work
because rates are not that competitive. This topic, reward
strategy is not relatable in my work because there is no
reward strategy. If you are an employee looking for greener
pasture, NGO work set-up is not ideal because service to
community is the most important in this industry. In BPO work
set-up, reward/incentives play a vital role in the organization.
Employees are expecting quarterly bonus. However, rates are
not that competitive compared to freelance work. There is
participation however retention is also low because aside
from rates, reward and incentives, there might be problem in
work environment due to night shift set-up.

(2) Given what we have discussed in class, kindly propose an

improvement plan in terms of your Total Rewards Strategy in
your organization.
In my NGO work setup, I would like to propose to include in
the budget an expense line item that would be related to
Reward Strategy. The rates at the NGO I work at is not
competitive compared to other NGO in Bacolod City. There
might be other NGO that has same rate as we have however,
they have a good compensation package or have a total
reward strategy. In my BPO work setup, the monetary reward
system they only have is the incentives every quarter.
However, some incentives are available only for staffing
department only. Incentives for the top staffers, incentives
for recruiting a caregiver and incentives for positive feedback
from customers. The rates should be reviewed and must be
competitive because there is no increase in the current year
but ECOLA existed. Rates as a freelance VA is has higher rate
than the company.