Strategic People Management Answer

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QUESTION 1

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Analysing the elements of reward strategy with the organizational strategy

Organizational strategy is a long-term strategic plan that roadmaps the routes towards the organizational visions and goals. Effective organizational strategies help organizations to create the road map to gain competitive advantages over the competitive advantages. Effective organizational strategy is one of the significant tools that assist organizations in structuring their resources in an effective method that supports business activities. If the company use the organizational strategy effectively then it helps in enhance the process of decision-making and provide proper direction to team members towards common goals and objectives (Hanelt et al, 2021). Additionally, the business must have an effective organizational strategy it helps in offer proper guidance to employees in order to accomplish common goals and objectives. Specific, measurable, realistic and limited are considered as significant elements of effective organizational strategy. The companies need to have an effective organizational strategy because it aids in enhance decision-making, management, better resource allocation, align business goals, boost organizational value, facilities progress measurement and make adjustment.

On the other hand, reward strategy is a long-term approach that is related to how companies balances the reward practices and policies as well as support the requirements of both company and its employees. In other words, reward strategy is an effort of companies that possess an employee’s struggling for excellence and assisting the organization to develop and grow. Having the effective reward strategy is crucial for the organization because it helps in increase staff motivation and assists to drive the team members towards the target goals and objectives (Heide et al, 2020). Effective reward strategy also helps the organization to motivate the employees that ultimately positively impact employee turnover, increases productivity, higher profit margins and reduce the number of complaints and grievances. Additionally, reward strategy has significant components of reward strategy include benefits, compensation, recognition, well-being and development. The other people's practices include contracts of employment, holidays, pensions, health and safety etc. For example, recognition is one of the significant components of the reward strategy and it is vertically aligned with the organizational strategy. In the context of recognition, the employees receive praise for their work from the employers which results in increase motivation and efficiency of the business.

Compensation is another significant component of the reward strategy and it has significant alignment with the organizational strategy. The business must create a competitive, fair and attractive compensation plan to ensure future success. For example, if the compensational plan carried out effectively then it enhances the business effectiveness, support the requirements of human capital and encourages and rewards the achievement of key corporate financial and strategic goals and objectives (Yong et al, 2020). Effective reward strategy is horizontally and vertically aligns with the organizational strategy and other people practices. Effective reward strategies help the business to attract and retain the talented peoples with the business. It is significant for companies to conduct the reward programs for the workforce from that they feel influence and focusing on accomplishing the goals and objectives.

 It is significant to align the reward strategy components with the organizational strategy to make sure the workers are sufficiently rewarded for contributing to the business. However, if the reward strategy is not align with the organizational strategy then the workforces become disillusioned and frustrated and may be less motivate in order to contribute towards the target goals and objectives. It is crucial for the companies to bring into line their strategy of reward with the organizational strategy or other people practices to accomplish the business objectives and objectives effectively (Noorazem, Md Sabri and Mat Nazir, 2021). On the other hand, if the reward strategy of company is not aligning with the organizational strategy then it is challenging for them to measure the performance of employees. This non-alignment leads to frustration and confusion among the workforces which ultimately hinders the capability of the business to accomplish the goals and objectives.

Employees are regard as lifeblood of any company and their engagement and motivation are crucial for achieving the success. A well-designed reward strategy plays a significant role in supporting the organizational strategy and objectives. By aligning the reward strategy towards organizational strategy then the workforces are more likely to see the connection between efforts and success. This leads to greater motivation and commitment of the employees which positively impacts on their efficiency and performance (Alassaf et al, 2020). Moreover, the effective reward strategy assists the organization in attracting and retaining the high quality and skilled employees. In today’s competitive marketing environment it is essential for the business to attract and retain the workforces for its success. By providing the reward package that is aligned with the business strategy companies will be better positioned to attract and retain the qualified workforces.

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The reward strategies are also aligning with the other people practices in the organizations. For example, well-being is another crucial component of reward strategy and it is vertically and horizontally aligns with the organizational strategy and other people practices. Company that provide well-being programs to the workers the n they are more inclined to retain with their job which increase employee retention rates. It is crucial for the organization to provide well-being programs to the employees then feel healthier and capable to maintain work-life balance effectively which helps in boosting business performance (Okocha, Emeyazia and Osakwe, 2022). For example, development is also support with the organizational strategy. Development is when the organizations invest in their workforces by providing career advancement workshops and training programs. If the organization offer training and development to the employees then they feel influence to give their best performance and likely to retain with the business for long duration which results in improve performance and increase productivity. The development programs involve the mentorship opportunities that help the team members to advance the qualification and skills. The companies are engage in developing the reward strategies that align to the organizational goals, values and culture (Manzoor, Wei and Asif, 2021).

QUESTION 2

Defining individual and team/company-wide contingency-based pay scheme

Contingent pay is means of provide rewards to the employees and fostering the shared interest in productivity, customer satisfaction, higher output and other indicators of business success. It is a formal pay scheme that offers for payments on top of base rates which are directly associated to the competency, performance, skill and contribution of the individual. The contingency pay based scheme also called as variable pay. The objectives of providing the contingency pay to the employees because it acts as motivator encourages and support their desired behaviour. In this approach the companies provide incentives to the employees on the basis of their desired skills, knowledge and contribution from which they motivate and encourage to do better work which boots profitability and productivity of business (Grabner and Martin, 2021). The key objective of using contingency based scheme to provide compensation to the employees that it delivers the message that competence, performance, skills and contribution are important.

 In addition, the contingency pay assists in describing and agreeing the performance and competence expectations of employees. Contingency pay also helps in reinforce the value of business and accomplish cultural change by helping the development of performance culture. Adaption of contingency pay-based system is beneficial for the companies because it helps in increase productivity and customers satisfaction which ultimately positively impacts the profitability. In current times, contingent pay has become increasingly significant in order to encourage and motivate the workforce to perform productively at work. Contingent pay based demonstrates one of the key factors of human resource management that aim to accomplish sustainable competitive success for the business (Cui et al, 2020). Companies use various contingent based pay schemes for shaping the positive attitude of employee like job satisfaction, trust in management and organizational commitment. Along with this, contingent pay arrangements offer significant incentives that support the willingness of workforces to put their efforts in order to accomplish meaningful and higher level of work related goals and objectives. Organizations provide contingent pay to the employees who have more contribution towards the accomplishment goals and objectives.

Providing the contingent compensation to the employees is beneficial for the companies because it helps in motivate them by form of acceptance and recognition. This compensation method also helps the business to retain the employees with the firm for long period of time. Contingent plan positively impacts the staff dedication and staff commitment. On the other hand, if the contingent pays based scheme is inadequately, badly and unfairly managed then then it demotivates the employees. If the compensations measures are not properly designed it leads to staff demotivation (Kolev and McNamara, 2022). Apart from this, the contingent pay is of two types such as individual and group (team). Individual contingent pay is a type of financial reward that is additional to the base pay as cash bonus and it is relevant to individual’s contribution, performance, skills, competence or service. Individual contingent pay is also known as merit pay and it transforms pay relevant to performance, contribution, competence or skill. If the payments are related to service then it is called as service-related pay.

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Individual contingent pay is useful for the companies because it helps in increase the high level of production and employee efforts as well as lowered the costs. The individual contingent pay includes various schemes such as performance related pay, competence related pay, skills related pay and pay related to contribution (Jeeta, 2021). Performance related pay (PRP) is considered as one of the significant scheme of individual contingent plan. It is regard as one of the crucial method to manage the pay in effective manner. In this, the organizations manage the pay the connecting the salary progressions to the evaluation of individuals performance. PRP is advantageous for both employee and organization (Breugst, Patzelt and Shepherd, 2020). In PRP contingent based pay scheme the performance of the people is gauge against the pre-agreed objectives. PRP contingent pay based scheme is effective for both company and employee because it helps in incentivize the workforces to work harder and enhance their performance.

Moreover, adaption of this method is beneficial for the company because it can serve as a method to reward and recognize high performing employees and increase their job satisfaction and increase morale. This scheme of individual contingent plan is beneficial for the business because it helps in tailored its particular goals and requirements as well as allowing flexibility in its execution. It can be customized according to the employee’s motivation and requirements as well as allow for more personalized approach to compensation (Saether, 2020).

Additionally, team or companywide contingency-based pay scheme is also significant for the company to pay compensation and benefits. Group incentive plan is regard as one of the significant scheme of team contingent plan. This scheme includes incentivizing the whole group of team members. Implementation of this scheme is beneficial for the organization in the circumstances when the output of worker cannot be quantified. Execution of this scheme is useful for the organization because it helps in build comrade. In the team, the all people are working together towards the same goals and objectives so it helps in developing the strong relationships among them. This scheme is also beneficial for both employees and organization (Córdova, Imas and Schwartz, 2021). It also helps in creates a sense of ownership towards the goals and objectives in the business. This leads to enhancement in efficiency metrics as well as communication and collaboration which ultimately positively impacts the productivity and efficiency of the organization. Group incentive plan also help in boosting the morale of individuals and team as well as encourage them to give better performance. In turn it increase the employee retention which assist in develop strong team for the future (Fulmer and Li, 2022).

QUESTION 3

Presenting the utilization of performance appraisals in the formulation of pay progression decisions

Performance appraisal is a subjective assessment of strengths and weaknesses of workforce’s comparative worth to the business and potential growth in future. The performance appraisals are also known as performance evaluations, development discussions, employee appraisals and performance reviews. Performance appraisal also helps organizations to understand the capabilities of people for the further growth and development. Performance appraisal helps the organization to preserve the proceedings to regulate compensation packages, wage structure and salaries raises etc (Murphy, 2020). With the help of performance appraisal the employer can easily determine the strengths and weaknesses of the employees to right place, people on right job. Measuring the performance of employees through performance appraisal is beneficial for the organizations because it assists in maintain and evaluate their potential for growth and development. Through this, employer can provide feedback to the workers in relevant to their performance and related status.

Organizations can document employee’s performance to identify bonuses or terminations. Performance appraisals play a crucial role in formulating the pay progression decisions. Constantly completing the performance appraisals help the organization to keep their workers motivated and influenced to do work harder. Performance appraisals assist the workers to grow and develop their careers, definitely if they are looking too eventually advance with the business to higher role. A regular assessment of performance helps the workforce to create a plan for the professional growth (Sahay and Kaur, 2021). In addition, performance appraisal helps the employees to improve their performance. If the employers are provide regular feedback to the workforce then they feel motivate to do well. Companies use performance appraisal to determine the way of giving bonuses, rewards and incentives for their hard work. Performance appraisal also helps the employees in increase engagement. Constantly involvement of workforce in the performance review process lead to more engagement and desire to retain with the company for long-period.

By measuring the performance of employees through performance appraisal then the employer can decide their pay progression. Performance appraisal allows organization to see which workforce require more training and identify which areas require more training. During performance appraisal, leaders can repeat their expectations for employees. Performance appraisal aids to individuals to understand about their daily job responsibilities. Performance assessment helps in gauging the contribution of workers in context of job performance and increase revenue in comparison to employee return on investment and industry standards (Jishnu et al, 2020). Furthermore, performance appraisal helps in enhancing the relationships among the manager and employees. With the help of performance appraisal the employees can showcase their potentials. It helps in uncover the employee’s skills and talents that may be hidden within reclusive personalities. 

To formulate the pay progression decisions by measuring the employee’s performance the companies use several types of methods. As critically said by Soni and Bhandari (2021), 360 degree appraisal is considered as one of the significant method and in this the manager collect the information regarding the employee’s performance by questionnaire from co-workers, self-assessments, supervisors etc. This method is useful for the employer to decide their pay progression on their performance. In the negotiated performance assessment method the companies uses mediators to assess the workforce by putting the efforts on better parts. Additionally, in peer assessment the workgroup, team members and co-workers are accountable for rating the workforce’s performance (Grandou et al, 2020). Apart from this, performance appraisals are significant aspects of pay progressions decisions. It helps in determining the high-performing employees and facilitates the organizations to reward these employees consequently. The high performing employees are more capable to deliver the quality work, exceed expectations and meet deadlines.

Performance appraisals offer a platform for determining the high performing employees and rewarding them through salary increases, promotions and bonuses. On the other hand, without measuring the performance of employees the employers are unable to take the effective decisions regarding the pay progression. Performance appraisals assist in determining areas that require improvement. With the help of performance appraisal the employers can provide feedback on the significant areas where employees require enhancing knowledge and skills. The feedback is crucial in assisting employees to develop and grow their knowledge and skills (Rubin and Edwards, 2020). With the help of this, the companies ensures that the company’s goals are met or not and then take effective rewards decisions regarding compensation and benefits. Performance appraisal helps in determining the salary increases and promotions. It offers feedback on workforce’s performance which can use to identify whether they are eligible for salary increase and promotion or not. Performance appraisal is the significant aspects of the design of pay progression decisions. It helps in determining high-performing workforces, areas that require improvement and training as well as development needs. By employing the performance appraisal the companies ensures that their workforces are rewarded equally for their work and they goals are met (Speer, Tenbrink and Schwendeman, 2020).

 It is crucial for the organization to implement the several practices such as set clear performance goals, regular feedback, use objective criteria etc. for the performance appraisal and formulation of pay progression. Linking performance to the compensation is critical element of the process of performance appraisal. The workers are rewarded for their performance and contribution to the business. The pay progression system is designed to incentivize the top performers and encourage them to do work in effective way. Most of organizations are use performance appraisal to formulate the pay progression decisions because it assist in encouraging and rewarding the behaviour of the desired employees (Halid, Yusoff and Somu, 2020). Effective structure of pay progression helps the companies to maintain pay competitiveness at the time of controlling the costs. Effective formulation of pay progression decisions helps the companies to offer a transparent and fair process to identify employee salary increases.

QUESTION 4

Stating the benefits and limitations of different forms of job evaluation

Job evaluation is one of the systematic processes of evaluating the jobs values in the companies to identify the worth of individual jobs and compensations that are paid to the employees. In other words, job assessment is a method of contrasting the jobs to provide the basis for pay structure and grading. The organization must evaluate the job of the employees to measure their pays (Alidrisi, 2021). Without job evaluation the HR department of the company is unable to develop a coherent approach to pay. Generally, the job evaluation includes assessment of job requirements, responsibilities and complexities to identify the appropriate level of compensations and job classification. Usually, job evaluation is performing with the mixture of internal valuation of the role in the business and external market research.

The key goal of job evaluation is to assess the relative contribution that numerous positions contribute in order to accomplishment of organizational goals and objectives. The key objective of job evaluation by the employer is to fixing the wages and salaries of the employees. Job assessment help the employers to determine the pay and salary that cab be relied on the relative contribution of numerous tasks instead of identities of holders (Ismail et al, 2022). Conducting the job evaluation of employees is beneficial for the companies because it helps in reorganizing the job hierarchy. Along with this, job evaluation is beneficial for the organization because it helps them to establish objective, consistent and efficient approaches for managing career development, compensation and employee benefits.

Job evaluation helps the business in supporting pay equity by allowing them to contrast and assess the value of each job. By considering the external factors like competitive market for same roles, businesses ensure that they are paying fair compensation to the employees. By assessing the jobs in the business, the employers can easily determine the any discrepancies external market and internal equity rates. With the help of job evaluation can adjust the salaries according to make sure their workforces are compensated fairly as per to their qualifications, experiences and duties (Koziol and Mikos, 2020). Furtherer, job evaluation is advantageous for the organization because it helps in creating greater transparency by making clear structure of compensation. From this the workforces know what they are enabled to when it comes to benefits and salary that are based on their experience and background. By keeping the transparent pay, the organizations can make sure individual who perform similar tasks are paid equally irrespective of their race, age, gender and other qualifications.

Job assessment also supports the recruitment and retention efforts. It is regard as one of the powerful tool for keeping pay on par and competitive within the job market. By analysing the entire role within the business, employers can evaluate the industry averages and market trends for similar position. This preserve compensation up-to-date to attract the skilled and qualified people as well as retain the accessible workers by ensuring that are being paid competitively and fairly (Chordiya and Hubbell, 2023). Apart from this, companies can adapt the various forms of job evaluation to assist determine the reward decisions. Ranking is considered as one of the significant method of job evaluation that is adapt by most of organization to take the decisions related to pay and benefits. In this method, the jobs are ranked on the basis of their relative significance to other jobs in the business. To make the ranking easier and simpler the jobs are associated against benchmark job or compared based on their participation to accomplishment of business objectives and goals.

Moreover, adaption of this method of job evaluation is beneficial for the organization because it is relatively simple and endorsed by the worker unions. As per the view of Aulia et al (2021), Implementation of this method is simple and easy to take the decisions regarding pay and benefits. As critically argued by Shahari and Rasmani, (2020), the ranks are subjective and which are based on the committee of job evaluation. In this method the jobs are comparatively ranked which may be inaccurate and irrelevant. Another significant form of job evaluation is grading method that is useful for the organization to take the reward decisions. In this method, job of each employee is categorized based on “grade”. As contended by Alidrisi (2021), a job grade is recognized based on their description and jobs are categorized under the same grades which needs similar skills and responsibilities. Execution of this method is also advantageous for the organization because it is relatively easy to create and adapt. With the help of this method, the employer can create effective compensation structure to take appropriate reward decisions. As critically argued by Ismail et al (2022), in this method the dissimilar jobs of employee can be categorized under the similar class as well as personal bias may outcome in inconsistent classifications.

Point allocation is another significant form of job evaluation for the organization to take reward decisions. As said by Koziol and Mikos (2020), in this method, the employer divides jobs into various factors and each is presented with the points. The total of points of each element becomes a relative value of the job for the business. Additionally, contrasting these points for a particular job with the points of other jobs makes simpler to rank them and assess the jobs easily (Chordiya and Hubbell, 2023). Implementation of this method is useful for the organization for defining points to a job. This method assists the organization in developing the tangible relationships between jobs and understanding the relative relevance to the business goals and objectives. On a critical note Aulia et al (2021), the adaption of this job evaluation method is time-consuming process and the lists of elements forget to consider certain aspects of jobs. Apart from this, adaption of market analysis method is also beneficial for the organization to evaluate the job of its employees because it offers overall assessment of organizational value with the market trends. To motivate and encourage the employees the employer must adapt the group incentive plan. This pay scheme helps in building a strong relation of employees with their colleagues and employers.

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