Strategic Plan Assignment Sample

Introduction - Key Principles of Reward Management and Employee Motivation

TASK 1

Organizational success depend the quality of work its employees is performing and the efficiency with which they are taken out all the operation. For improving the performance of the employees company should provide regular compensation and rewards to them. This will help in maintaining their motivation level which will lead to increase the interest of the employees in achieving the organizational goals. Reward and package strategy of HR help line mangers in taking out the decision while preparing polices.

AC1.1 Two principle of reward and importance of the performance management on reward.

Two principles of the rewards are transparency and fairness. This help in determining the appropriate rewards for the employees. Under transparency principle it has been defined that employees should be made aware of the reward policy and the criteria which they need to satisfy for becoming applicable for the reward. This will help in reducing the confusion and help in motivate the employees to work according to set standard. Fairness refers to as deciding appropriate reward according to the level of difficulty in the task. For motivating the employees reward should be decided on the basis of the level of complications involved in task. If the reward is not optimum then the expected result will not be occurred (Heninger, Smith and Wood, 2019). Organizational culture and Performance management helps in improving the relation between superior and sub ordinate by establish an effective communication channels.

Performance management helps in reviewing the performance of the individual overtime and help in define the growth particular individual had attained. This will help in decide time of rewarding employees which will help in increase the level of motivation. This will also help in attracting and retaining the employees in the organization leading to reducing the turnover (CIPD Maximizing the Value of Reward, 2019). There are different factors which motivate one individual and the same factors do not motivate other individual in the equal measurement. So performance management helps in determine the individual factor which could motivate them and enhance organizational culture.

Organizational culture helps in determining appropriate reward strategies for the employees. Management aims at establishing culture in organization which promotes healthy competition within employees. Company could focus on providing financial incentives or non monetary reward to employees based on their performances. This will help in increasing motivation of other employees to increase their productivity. Sometime competition may lead to increase in stress level of employees which can have negative impact on their work.

AC1.2 Implementation of new policy initiatives by the Home international

Brexit has brought change in the reward policy in the UK which will eventually lead to decrees in the productivity and wages of the employees. This is because there are changes in the rules and regulation related to the trading rules. To compete with these the Home international focus on implementing new policy initiatives and practice related to reward.

• The company should focus on conducting the survey which will help in identify the factors which are motivating the employees (Rohim and Budhiasa, 2019). This will in better understanding of the needs of the employees and how this could be useful foe the company in achieving its goals.
• The company will focus on reward very individual who has improved his performance form the past. If the company only reward to the one who attain maximum sales then the other will feel like a loser. So company will reward every individual who have achieved their milestone.
• Home furnishing will also focus on providing reward on the basis of the appropriate behavior like punctuality, better collaboration with the team members, and reduction in mistakes which can help in improving the performance of the average employees.

In the context of Home International, reward policy will prove to be more beneficial. Rewards will be provided on the basis of the team performance and contribution. This will help in improving the performance of the overall team. Further, it will also enhance the level of coordination and cooperation among the team members.

Following steps will be followed by company in successfully implementing policy:

• Plan: Under this step appropriate planning will be carried out in relation to setting criteria’s regarding reward policy.
• Analyses: The entire factors which are impacting the decision will be identified and analyzed.
• Diagnose: All alternatives will be evaluation on certain basis.
• Action plan: actual implementation of policy will be done.
• Monitoring: The result obtained from the policy will be determined by doing comparison of current team performance in against to the past.
• Evaluation: The viability of policy will be determined and suitable actions will be taken for the performance enhancement.

AC1.3 Positive and negative rewards strategy

To motivate the employees in achieving the organizational goals both positive and negative type of reward system should be used.

People performance: It is referred as the performance of the individual accomplishes the standards (Jaegle, Mehrpourand Rust, 2019). Rewarding individual will impact the performance of other in both positive and negative manner. For example if the individual is provided with the bonus then other may get motivated from this and try to improve their performance. However, some may fell it in the way of competition with the individual and try to find ways to improve performance.

Organizational performance: Rewards helps in attaining the organizational goals as the individual who has been awarded act as motivators for the other and each one try to improve their performance (Malek, Sarin and Haon, 2020). For example: Employees of Home International will be encouraged to deliver high quality products or services to the customers. This in turn helps organization in maximizing both productivity and profitability. Nevertheless, irrespective of reward policy some employees do not take interest in improving own performance which in turn further impacts organizational goals. In such situation the company is going to implement the negative reward where his responsibility will be withdrawal or he will be degraded on the basis of his authority.

AC1.4 various benefits provided by the companies and its advantage on the performance of the employees

AC1.5 Advantages and disadvantages of intrinsic and extrinsic reward

AC3.1 Various approaches of performance managements

There are various effective approaches to performance monument which help in increasing efficiency and effectiveness at the workplaces. Some of the effective approaches area s follows:

Continuous performance Management: This is the approach which aims at evaluating the performance of the employees on the basis of the organization goals, skill development and career goals. This help manager and employees to track their performance on the basis of the achieving these goals.

Advantages:

• This help manager and employees to track their performance on the basis of the achieving these goals.
• This help in providing continuous feedback to employees.

Disadvantages:

• It is time consuming process.
• It requires specialist employees to carry out process which increase cost for organization.

360 feedbacks: In this approach of performance management a review process has been established through which the performance of an individual is evaluated (Evaluation of 360 degree feedback on performance management, 2023). In this method, the mangers and the employees who are in regular contact with the individual are asked to provide feedback on his performance. Through this method the actual potential and ability of the individual are determined.

Advantages:

• In this method, the mangers and the employees who are in regular contact with the individual are asked to provide feedback on his performance.
• Through this method the actual potential and ability of the individual are determined.

Disadvantages:

• It leads to reduction in confidentiality in organization.
• This feedback is not always accurate and reliable.

AC3.2 Role of people practice professional in supporting line managers

For the supporting the decision of the line manger, people practices plays an important role. The human resource management can help the line managements in taking appropriate and effective decision as they have plenty of knowledge and experience regarding the standards in the industry. The Hr department focus on conducting support and training session for the line managers which help in gaining more knowledge and skills in taking decision related to the rewards. This help in ensuring the consistent, fair and transparency in the reward decision of the organization. HR plays an important role by educating the line manger regarding the all the financial and non financial incentive the company could offer. The HR department help in solving any conflict or the confusion arise at the time of carry out the process by proving appropriate information and the relevant data. For taking decision the line manger should have the completely understood the strategy and the resources which are needed for effective completion of the process are arranged by them

AC3.3Reward judgment made by the line managers based on performance management approaches

The HR department clearifies the approaches that they have implementing in the evaluation of the performance. This help in providing the base for the line manager upon which the decision could be taken (Vaishnavi, Suresh and Dutta, 2019). BY evaluating the performance of the employees the line manager could understand the role of the individual in attaining the organizational goals. This help in deciding what reward should be appropriate for the particular person and the impact of such reward on his performances. This helps in creating a framework for the line manager by evaluating their performance and the taking decision which are compile with organsiational code of ethics and values.

Through performance review approach a line manger is able to identify the factors which can improve the performance of the individual. Through this they conduct where session of the training and development and coaching which could help in achieving organization goals. By continuous approach of performance management the manager is unable to identify the capability of an individual and the employees which will help in indentify the critical person for long term growth for the business. This help manger in deciding the reward according to their needs and focus on providing rewards which could satisfy them and help in retaining such employees. Line manger are well aware of the legislation prevail in the industry which help in taking decision which did not create risk on the company.

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TASK 2

AC2.1 Internal and external factors impact the reward management

Internal factors refer to as the internal factors which are impacting the reward decision of the line mangers. The internal factors are as follows:

Organizational culture and values: The decision of the reward is taken by analysis the organizational values and couture. All organization decides the reward on different criteria that are on the behavior of the individual or the result they obtain. For Home international they focus on the providing reward on the basis of the improving the sales of the company.

Performance management: It include evaluate the Performance of the individual and identify the positive and negative changes that had occur in the performance of the employees. Home international use this system which help its manager to decide on the time and type of reward they should provide to their employees on completion n of the specific goals.

Financial resources: the company with more financial stability generally announces a high reward for the individual which help in improving their performance by motivating them. In the company with no stability of the finance they do not prefer the financial reward for the employees as this increasing the cost of the company (Jamal et al, 2021). Home furnishing is having regular cash inflow so the company could allot financial incentive to the employees.

External Factors are the factors which are impacting the decision regarding the reward in all the organization in the industry. Some of the external factors are as follows:

Labor market condition: The reward of the employees in the home furnishing will be decided by following the rule which have been prepared for the minimum wages. The company needs to provide high rewards for the skilled employees which create financial burden. The company could not deduct the amount of the reward as they need to fulfill the guideline of the minimum wages.

Economic condition: The reward environment is impact by the economic condition of the country. The company could not change its reward policy as to stay competitive in the industry. The economic condition keeps on changing which create problem for the company as in unfavorable economic condition it create financial burden leading to increasing the cost and reducing the profit of the origination.

Competitors: there are various competitors of the company in the industry so to maintain the competitive edge the company should provide adequate reward to the employees. This will help in improving the performance of the employees leading to improving the profitability. The company should provide adequate reward as this will help in retaining the employees with the organization. There is the pressure from the competitor which makes the company decide the reward through which they can compete in the industry.

AC2.2 Uses of unemployment and payroll data while creating reward packages

Unemployment

Labor market of the country could be identified by the evaluation of the unemployment data. This will help in identify the level of education, the number of unemployed people in the city and the type of job which are available in the company. This will help in determine the compensation which the company should allot them. The unemployed data will help in retaining the employees as if the rate of unemployment is higher in the industry then the employees will ready to work under for less compensation (Ngwa et al, 2019). This data also provide information regarding the individual who are experienced but unable to get the job in such situation the company tries to attract them by preparing effective strategy. The Home furnishing is operating in the UK where the unemployed rate is not high so the company should provide attracting financial and non financial rewards to employees to retain them and satisfy them with the current job.

Payroll

The compensation of the employees is decided upon the number of hour the employees work and skills required to accomplish the work. Payroll helps us in determine the salary, benfits, paid leave and the overtime an individual is commencing which help in identify the reward package by the company. The evaluation of payroll data helps in determining the performance and the current compensation. This in turn helps in deciding whether the rewards should be provided in the financial or non-financial mode. Through payroll analysis the company is able to calculate the amount they are spending on the employees and the result there on. For example: Employee with average salary look for or encouraged through financial reward such as bonus, incentives etc. On the other side, managerial level personnel are encouraged through appreciation, promotion etc. Referring this, it can be stated that payroll assessment helps in setting suitable rewards. There is some limitation of payroll method as some employees may take more time in completing easy task which does not require high payments.

AC2.3 Reward packages for the Home international

After collecting the data regarding the payroll of the company, reward packages have been prepared to motivate the employees. Job evaluation will be used to determine the appropriate pay rate of all the roles in organization. This involves planning stage which will help in determining which job needs to be evaluated. Then proper research will be conducted to support planning and the result will be analyses. Various performance management approaches has been used to evaluate the performance of the employees. On the basis of this the reward packages has been prepared which are as follows:

Role 1 Manufacturing Operative: The reward for this role includes the basic salary for this role will be £2200 - £4500. For this the operator need to work 8 hours a day with 6 days in a weak. Along with the basic salary the operative will liable for the pension benefit, flexible working policy and the insurance benefits. The company will provide increment in the salary by 5% after the successful completion of the 9 months (Fleenor, 2019). The performance will evaluated on the basis of the total time for the productive operator work in relation to the standard time. The effective completion of the target will provide a benefit in the form of the voucher and the prizes.

Role 2 HR Administrator: There are various rewards which are provided for individual performing this role. This include basic salary amount to £2300- £3500. The company will motivate the HR to appoint and recruit the most suitable candidate by providing commission on each new entry and there consistence in the company. Pay for performance reward will be provided to them as this will help in improving their performance.

AC2.4 Legal requirement for the pay and working time

There are various regulations which have been prepared to maintain and improve the condition of the workforce; payment and the time of the work. All these factors have significant impact on the overall performance of individual. To protect the employees health and safety needed this regulations were made. The government has made “working time directive” or “Working Time Regulations” 1998, which create guidelines for the employer related to the working hours. If the employee is below the age of 18, than he cannot work for more than 40 hours in a week in the company. For an adult the time should not exceed 48 hours a week in the service industry. In this case, if employees work more than required hours then company is required to pay more in the form of bonus, incentive or overtime. This will help in improving satisfaction and productivity of employees.

National Minimum Wage Act (1998): The working time in furniture industry will also include the training time and the time include in travelling for the searching for the client. The company should provide the minimum Wage which is £9.50 per hour (UK Minimum wage per hour for employee, 2023). Lower than this will lead to violation of national minimum wage rate and the company will not be able to retain their employees for the longer period of the time. In order to motivate personnel, along with the basic [pay, company sets incentive and bonus plan. This Act provides assistance to the organization in setting suitable reward policy for the employees. Hence, by providing employees with suitable monetary reward company can create highly motivated workforce.

References

Books and Journals

• Das, S. and Hassan, H.K., 2022. Impact of sustainable supply chain management and customer relationship management on organizational performance. International Journal of Productivity and Performance Management, 71(6), pp.2140-2160.
• Fleenor, J.W., 2019. 360 FEEDBACK PROCESSES. Handbook of Strategic 360 Feedback, p.237.
• Heninger, W.G., Smith, S.D. and Wood, D.A., 2019. Reward type and performance: An examination of organizational wellness programs. Management Accounting Research, 44, pp.1-11.
• Jaegle, A., Mehrpour, V. and Rust, N., 2019. Visual novelty, curiosity, and intrinsic reward in machine learning and the brain. Current opinion in neurobiology, 58, pp.167-174.
• Jamal, T., Zahid, M., Martins, J.M., Mata, M.N., Rahman, H.U. and Mata, P.N., 2021. Perceived green human resource management practices and corporate sustainability: Multigroup analysis and major industries perspectives. Sustainability, 13(6), p.3045.
• Jawaad, M., Amir, A., Bashir, A. and Hasan, T., 2019. Human resource practices and organizational commitment: The mediating role of job satisfaction in emerging economy. Cogent Business & Management.
• Jin, C., Krishnamurthy, A., Simchowitz, M. and Yu, T., 2020, November. Reward-free exploration for reinforcement learning. In International Conference on Machine Learning (pp. 4870-4879).
• Malek, S.L., Sarin, S. and Haon, C., 2020. Extrinsic rewards, intrinsic motivation, and new product development performance. Journal of product innovation management, 37(6), pp.528-551.
• Ngwa, W.T., Adeleke, B.S., Agbaeze, E.K., Ghasi, N.C. and Imhanrenialena, B.O., 2019. Effect of reward system on employee performance among selected manufacturing firms in the Litoral region of Cameroon. Academy of Strategic Management Journal, 18(3), pp.1-16.
• Rohim, A. and Budhiasa, I.G.S., 2019. Organizational culture as moderator in the relationship between organizational reward on knowledge sharing and employee performance. Journal of Management Development, 38(7), pp.538-560.
• Rosenthal-von der Pütten, A.M., Hastall, M.R., Köcher, S., Meske, C., Heinrich, T., Labrenz, F. and Ocklenburg, S., 2019. “Likes” as social rewards: Their role in online social comparison and decisions to like other People's selfies. Computers in Human Behavior, 92, pp.76-86.
• Vaishnavi, V., Suresh, M. and Dutta, P., 2019. A study on the influence of factors associated with organizational readiness for change in healthcare organizations using TISM. Benchmarking: An International Journal, 26(4), pp.1290-1313.

Online

• CIPD Maximising the Value of Reward. 2019. [Online]. Available through <www.cipd.co.uk/podcasts/maximising-value-of-reward-thinking-global-acting-local#gref.>. Accessed on 9th December 2023.
• Evaluation of 360 degree feedback on performance management. 2023. [Online] Available through: < https://emeritus.org/in/learn/360-degree-appraisal-definition-and-feedback/#:~:text=360%2Ddegree%20feedback%20is%20a,provide%20feedback%20to%20an%20employee.>. Accessed on 9th December 2023.
• SHRM Employee Benefits. 2018. [Online]. Available through < www.shrm.org/hr-today/trends-and-forecasting/research-and-surveys/pages/2018-employee-benefits.aspx.>. Accessed on 9th December 2023.
• UK Minimum wage per hour for employees. 2023. [Online] Available through: < https://leapscholar.com/blog/uk-minimum-wage-per-hour-know-about-salary/>. Accessed on 9th December 2023.