On Reward Management

{An Overview}
I. Objectives
1. Reward people according to the value they create
2. Align reward practices with business goals & with
employee values and needs
3. Reward the right things to convey the right message
reg. expectations
4. Help to attract 7 retain high quality talent.
5. Motivate people & obtain their engagement &
commitment
6. Develop a high performance culture

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 

II. The Reward Philosophy

A. Organizational values
B. Investment based on faith in & belief in HR
C. Expectation of a return on that investment
D. Long-term expectation related to strategies
E. The total reward approach, combining financial & non-financial rewards

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 III. Distributive Justice
(quantum related to contribution, need--How much? Why?)
IV. Procedural Justice
(concerned with decision making &implementation--How? When?
Consideration of employee views
avoiding bias-consistency-feedback
grievance redressal etc.)

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 IV. Fairness—the ‘Felt-fair’ principle
[Eliot Jacques]

V. Equity-[Internal & External]

VI. Consistency

VII. Transparency

VIII. Strategic Alignment

IX. Context & Culture[brand-image, work culture]

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 X. Developing a high performance culture

Importance in the service sector

Clarity of goals and & accountabilities
Skills & competencies
Recognition & rewards
Job & capability fit
Managers as coaches mentors, stressing on development
Pool of trained & talented manpower
Trust & team work, helping better customer service

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 XI. Factors affecting Reward Management
Internal Environment-[technology, culture, IR, Location-Structure etc.]
External Environment-[Economic, Political, legal, Market etc..]
Strategic Management—[elicit the present actions for the future—strategies are
evolving
Total Reward
Human capital Management [concerned with investment in people and how best
to manage it profitably
Factors affecting levels of pay
Motivation
Engagement & Commitment Effect
Psychological contract Of
 Employment trends LPG
 Demographic
 Cultural diversity
 Competition-for products & people
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