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By saima aftab
•Responsibility •Interesting work •Personal growth •Diversity of activities
REWARD STRATEGY .
LAWLER’S MODEL OF REWARD STRATEGY RESOURCES INDIVIDUAL & ORGANIZATIONAL BEHAVIUOR CORPORATE GOALS & OBJECTIVES ORGANIZATION DESIGN &MANAGEMENT STYLE REWARD SYSTEM ENVIRONMENT Reward system – An important means of communication .
RELATIONSHIP BETWEEN HR & REWARD PRACTICES & BUSINESS PERFORMANCE JOB SATISFACTION EMPLOYEE INVOLVEMENT / COMMUNICATION BUSINESS PERFORMANCE HR PRACTICES .
DYNAMIC REWARD STRATEGIES RESPONSIBLE. DYNAMIC AND FLEXIBLE HR PROFESSIONALS DYNAMIC REWARD STRATEGIES .
ALIGNING REWARD SYSTEM WITH STRATEGY BUSINESS STRATEGY PEOPLE REQUIREMENT PREVIOUS REWARD METHODS CHANGES TO REWARDS .
EFFECTIVE REWARD STRATEGY EFFECTIVE REWARD STRATEGY WELL DEFINED GOALS & OBJECTIVES WELL DESIGNED PAY & REWARD PROGRAMMES ACCORDING TO THE NEEDS EFFECTIVE & SUPPORTIVE HR .
BALANCED. PRACTICAL REWARD STRATEGY MODEL EMPLOYER’S PERSPECTIVE EMPLOYEE’S PERSPECTIVE ORGANIZATION CAPABILITIES BUSINESS STRATEGY ORGANIZATION STRUCTURE COMPETENCIES EMPLOYMENT DEAL DEMOGRAPHICS VALUES TOTAL REWARD STRATEGY PAY LEARNING & DEVELOPMENT BENEFITS WORK ENVIRONMENT IMPOROVED BUSINESS RESULTS & ALIGNED EMPLOYEE BEHAVIOURS .
CONFLICTS • Focus on individual performance in teams • Lack of customer service rewards • Lack of relationship between pay & performance • Absence of learning and development • Pay levels and benefits entitlement strongly related to the length of service • Lack of variable portion in pay .
targets) – Process excellence – Learn ‘n’ Grow .PERFORMANCE RELATED PAY • Score card driven bonus – Customer satisfaction (customer survey) – Shareholder returns (profitability vs.
Reward Policies .
Reward Policies Reward Policies provide guidelines for the implementation of reward strategies and the design and management of reward process. .
Considerations • The level of reward • The relative importance attached to market rates and equity • Attraction and retention • The relationship of rewards to business performance • Total reward policy .
• The role of line managers. • Involve employees in the design of reward systems • Communicate the reward policies to employees • Transparency. . • Assimilation policies • The degree of flexibility required. contribution or skills. competence.Considerations • The scope for the use of contingent rewards related to performance.
Average .Level of Reward • Organizations philosophy about Rewards: – High payer. Below Average • Policy depends on a number of factors: – Level of performance – Competition for good quality people – Tradition stance & organizational culture of the company – Affordability .
– Obtain and keep high quality staff – Response to market pressures • Market considerations will derive levels of pay in the organization. .Market Rate and Equity • Policy needs to be formulated on the extent to which rewards are market driven rather than equitable.
Attraction policies • • • • • Career prospects Training and development Intrinsic interest of the work Flexible working arrangements Work life balance .
Retention policies • Capelli says “market determines the movement of employees. not the company” • Talent management (attraction and retention of quality employees) • Talent management policies – – – – To attract employees To develop employees Retain employees Motivate employees .
Talent Management Policies • Talent Management Process: – – – – – Employer of Choice Recruitment procedures Designing jobs and roles Opportunities to develop skills Working environment .
Talent Management process – – – – Work life balance Leadership qualities of line managers Recognition Conducting talent audits .
Reward to Business Performance • Link between reward and business performance. • Profit sharing – A plan under which an employer pays to eligible employees. . additional sums in the form of cash or shares in the company related to the profits of the business. • Gain sharing – A commitment to employee involvement that ties additional pay to improvements in workforce performance. as an addition to their normal remuneration.
Total Rewards The total reward policy should state that although contingent rewards play an important part in the reward policies of the organization other forms of non financial reward are regarded as being equally important .
.Contingent Rewards Pay for individual that is related to performance. contribution or service. competence.
– Red circling (identifying and dealing with overpaid people) – Green circling (identifying and dealing with underpaid people) .Assimilation Policies • How existing employees should be assimilated into revised pay structure.
Flexibility • Flexing Company Cars – Trading up – Trading down – Trading out Flexible Holidays Flexible Pensions Flexible private medical Insurance .
Role of line Managers • Direct interaction with employees • Trained .
.Involving Employees • Employees should be given voice in the design and management of reward processes.
Communication to Employees • Reward processes are powerful media for conveying messages to employees about the organizations values and the contribution they are expected to make in upholding those values and achieving the organization’s goals. .
Transparency • Reward process should not be secret activity. – Pay progression – Lack of understanding breeds suspicion. .