REWARDS

REWARD MANAGEMENT

Reward Management is concerned with the

formulation and implementation of strategies
and policies that aim to reward people fairly,
equitably, and consistently in accordance with
their value to the organization.
OBJECTIVES OF REWARD MANAGEMENT
• Support the organization's strategy

• Maintain competitive advantage

• Reward people according to their value to the organization

• Develop a performance culture

•Motivate people and obtain their commitment and

engagement

• Align reward practices with employee needs

• Operate reward policies equitably, fairly, and consistently

 TYPES OF REWARDS
•Intrinsic Rewards: Satisfaction, higher needs, esteem,
development

• Extrinsic Rewards: Pay, conditions, treatment, benefits

• Individual Rewards: Base pay, incentives, benefits, recognition

• Team Rewards: Team bonuses, profit-sharing, group

cooperation rewards

• Organizational Rewards: Profit-sharing, shares, gain-sharing

 BASIC TYPES OF REWARD
• Intrinsic rewards satisfy higher needs: esteem,
development

• Extrinsic rewards satisfy basic needs: survival,

security
 TYPES OF REWARDS: INTRINSIC
Intrinsic rewards focus on satisfying higher-level needs such as
esteem and development. They provide a sense of achievement
and self-satisfaction, making employees feel valued.

Examples:
• Recognition and appreciation
• Personal growth opportunities
• Career development and promotions
• Autonomy and responsibility in work roles
 TYPES OF REWARDS: EXTRINSIC
Extrinsic rewards focus on basic needs such as survival and
security. They are tangible and usually provided in the form of
monetary benefits.

Examples:
• Salary and wages
• Bonuses and incentives
• Health benefits and retirement plans
• Workplace conditions and perks
 INTRINSIC REWARDS

• Recognition: Acknowledging employees' achievements can greatly

boost their motivation and self-worth.

• Feedback: Timely and constructive feedback helps employees grow

and understand their strengths and weaknesses.

• Autonomy: Giving employees control over their tasks empowers

them and increases their commitment.

• Responsibility: Assigning important roles provides a sense of

ownership and satisfaction in their work.
 INTRINSIC REWARDS (CONTUNUED)
• Promotions: Career growth opportunities provide motivation
for employees to excel and develop their skills.

• Trust: Trust established through consistent support and fair

treatment enhances intrinsic motivation.

• Personal Satisfaction: The fulfillment from accomplishing

tasks that align with personal values.

• Development Opportunities: Continuous learning and skill

development opportunities contribute to personal growth
and intrinsic satisfaction.
 EXTRINSIC REWARDS
• Bonuses: Typically awarded annually. These bonuses motivate
employees to exceed satisfactory levels and achieve more.

• Salary Raises: Increments given for hard work, achievements,

and skills acquired such as certifications or academic
excellence.

• Benefits: Includes health insurance, retirement benefits, and

other security measures offered by the organization.

• Gifts: Personalized gifts for achievements or special events

strengthen employee relations.
 EXTRINSIC REWARDS (CONTINUED)

• Promotions: Providing career growth opportunities

motivates employees to enhance their skills and
contribute effectively.

• Other Perks: Flexible work conditions, paid

vacations, and professional development allowances.

• Trust: Building trust through transparent reward

systems ensures employees feel valued and secure.
ROLE OF COMPENSATION AND REWARD
IN ORGANIZATION
• Among the four factors of production (Man, Material,
Machines, Money), Man has the most significant impact. It is
impossible to manage a business process without men.

• Labor, Capital, and Organization are major factors of

production.

• Every factor contributes to the process of

production/business. Men expect returns from business
operations, and organizations expect profits. The labor force
expects wages from the process.

• Managers need to align compensation and rewards fairly to

maintain a productive and motivated workforce.
 ADVANTAGES OF A FAIR
COMPENSATION SYSTEM
• Ensures fair and transparent compensation practices

• Motivates employees to achieve higher performance

• Helps retain skilled employees

• Enhances overall organizational efficiency

• Builds trust and improves employee relations

• Aligns employee objectives with organizational goals

 lOMoARcPSD|15891584

BA7204
www.rejinpaul.com
HUMAN RESOURCE MANAGEMENT

Job evaluation is closely related to reward management. It is important to understand and identify a
job's order of importance. Job evaluation is the process which job's are systematically assessed to
one another within an organization in order to define the worth and value of the job, to ensure the
principle of equal pay for equal work. In the United Kingdom, it is now illegal to discriminate
worker's pay levels and benefits, employment terms and conditions and promotion opportunities Job
Evaluation is one method that can be adopted by companies in order to make sure that
discrimination is eliminated and that the work performed is rewarded with fair pay scales. This
system carries crucial importance for managers to decide which rewards should be handed out by
what amount and to whom. Job evaluation provides the basis for grading, pay structure, grading jobs
in the structure and managing job and pay relativities.

It has been said that fairness and objectivity are the core principals using an assessment of the nature
and size of the job each is employed to carry out.

There also many different methods of job evaluation which can be used, but the three simplest
methods are ranking, classification and factor comparison. However, there are more complex
variations of methods such as the point method which uses scales to measure job factors. This
method does not not rank employees against one another but looks at the job as a whole. A
disadvantage of these methods of job evaluation are that they are very static and it would be very
difficult to perform a job evaluation quickly if it was needed.

An advisory company named ACAS stated that there were five main reasons why employers look at
performing a job evaluation. These include: When deciding on a pay scale: Making sure that the
current system is fair and equal for employees, Deciding on benefits such as bonuses,Comparing pay
against other companies and reviewing all jobs after a major company pay change . Employees need
to feel that they are being paid a fair wage compared to the same job with the competition. If this is
true it may help reduce staff turnover which is very beneficial for employers as it reduces the cost of
hiring new staff.

Research regarding job evaluation has mainly been conducted using qualitative data collection
methods such as interviews, large scale surveys and basic experimental methods. Therefore, there is
a large gap for research on job evaluation collecting quantitative data for a more statistical analysis.
A comparison between public and private sectors and the methods of job evaluation is another area
that should be considered for further research.

4.5 CAREER MANAGEMENT

Career development is an organized approach used to match employee goals with the business needs of
the agency in support of workforce development initiatives. The purpose of career development is to:
฀ Enhance each employee‘s current job performance.
฀ Enable individuals to take advantage of future job opportunities.
฀ Fulfil agencies‘ goals for a dynamic and effective workforce.

Career development involves managing your career either within or between organizations. It also includes
learning new skills, and making improvements to help you in your career. Career development is an
ongoing, lifelong process to help you learn and achieve more in your career. Whether you are looking at
making a career change, or moving up within a company, planning your own career development will help
you succeed. By creating a personal career development plan, you can set goals and objectives for your
own personal career growth. Don‘t make the mistake of leaving your career development future in the
hands of your employer, hoping that you will get the next promotion or pay raise. This misconception can
lead to job dissatisfaction and resentment. Career planning is a lifelong process, which includes choosing
an occupation, getting a job, growing in our job, possibly changing careers, and eventually retiring. The
Career Planning Site offers coverage of all these areas. This article will focus on career choice and the

Get useful study materials from www.rejinpaul.com

Downloaded by Nivashini Amirthappa ([email protected])
 lOMoARcPSD|15891584

BA7204
www.rejinpaul.com
HUMAN RESOURCE MANAGEMENT

process one goes through in selecting an occupation. This may happen once in our lifetimes, but it is more
likely to happen several times as we first define and then redefine ourselves and our goals.

Managers are responsible for linking the organization‘s needs to employee career goals, and can assist
employees in the career planning process. Human Resources is responsible for designing career paths and
employee development programs that help employees reach their goals. Each employee is responsible for
planning and managing his/her career.

4.5.1 Objective

Career Management is the combination of structured planning and the active management choice of one‘s
own professional career. The outcome of successful career management should include personal fulfillment,
work/life balance, goal achievement and financial assurance.

The word career refers to all types of employment ranging from semi-skilled through skilled, and semi
professional to professional. The term career has often been restricted to suggest an employment commitment
to a single trade skill, profession or business firm for the entire working life of a person. In recent years,
however, career now refers to changes or modifications in employment during the foreseeable future.
There are many definitions by management scholars of the stages in the managerial process. The following
classification system with minor variations is widely used:
1. Development of overall goals and objectives,

2. Development of a strategy (a general means to accomplish the selected goals/objectives),

3. Development of the specific means (policies, rules, procedures and activities) to implement the
strategy, and
4. Systematic evaluation of the progress toward the achievement of the selected goals/objectives to
modify the strategy, if necessary.
The career management process begins with setting goals/objectives. A relatively specific goal/objective
must be formulated. This task may be quite difficult when the individual lacks knowledge of career
opportunities and/or is not fully aware of their talents and abilities. However, the entire career management
process is based on the establishment of defined goals/objectives whether specific or general in nature.
Utilizing career assessments may be a critical step in identifying opportunities and career paths that most
resonate with someone. Career assessments can range from quick and informal like those on CareerBuilder
or may be more in depth like those such as Myers-Briggs and Career Leader supported assessments
found on My Path. Regardless of the ones you use, you will need to evaluate them. Most assessments
found today for free (although good) do not offer an in-depth evaluation.

The time horizon for the achievement of the selected goals or objectives - short term, medium term or long
term - will have a major influence on their formulation.
1. Short term goals (one or two years) are usually specific and limited in scope. Short term goals are
easier to formulate. Make sure they are achievable and relate to your longer term career goals.
2. Intermediate goals (3 to 20 years) tend to be less specific and more open ended than short term
goals. Both intermediate and long term goals are more difficult to formulate than short term goals
because there are so many unknowns about the future.
3. Long term goals (more than 100 years), of course, are the most fluid of all. Lack of life experience
and knowledge about potential opportunities and pitfalls make the formulation of long term goals/

Get useful study materials from www.rejinpaul.com

Downloaded by Nivashini Amirthappa ([email protected])
 lOMoARcPSD|15891584

BA7204
www.rejinpaul.com
HUMAN RESOURCE MANAGEMENT

objectives very difficult. Long range goals/objectives, however, may be easily modified as additional
information is received without a great loss of career efforts because of experience/knowledge
transfer from one career to another.
4. Making career choices and decisions – the traditional focus of careers interventions. The changed
nature of work means that individuals may now have to revisit this process more frequently now
and in the future, more than in the past.
5. Managing the organizational career – concerns the career management tasks of individuals within
the workplace, such as decision-making, life-stage transitions, dealing with stress etc.
6. Managing ‗boundary less‘ careers – refers to skills needed by workers whose employment is
beyond the boundaries of a single organization, a work style common among, for example, artists
and designers.
7. Taking control of one‘s personal development – as employers take less responsibility, employees
need to take control of their own development in order to maintain and enhance their employability.
Career development, as both a field of study and a practical form of training for workers, is primarily
concerned with producing better employees and maximizing employee potential. Career development
programs can help the unemployed find jobs or provide workers with the skills and tools they need to
advance within a government agency, corporation or organization.
Self-Awareness- One of the major objectives of any career development program is a heightened sense
of self-awareness for participants. Employees should be able to identify their strengths and weaknesses, in
order to apply their skills more effectively. Understanding shortcomings is also useful in teachingemployees
where to focus efforts toward improvements. Self-awareness is also related to understanding the difference
between real and perceived career advancement limitations. By examining available opportunities and
making an honest assessment of an employee‘s skills, career development seeks to give every employee a
realistic outlook on the future.
Flexibility- Career development also sets enhanced flexibility as a goal. Employees work in a changing
world and adaptation is an essential skill. This may mean abandoning practices that have worked in the
past, or devoting time to education and new training. Employees who find themselves unable to adapt in a
changing workplace may suffer from decreased productivity or be unable to compete with workers whose
skills are more flexible and easier to apply across a range of tasks.

Education- Education is among the more straightforward objectives of career development. Such programs
attempt to give employees, or prospective employees, access to information about job opportunities and
options for skills training. Following up with such employees is an important objective as well, since this
gives those who work in career development a way of measuring the program‘s effectiveness.

Sensitivity to Diversity- Many career development programs make sensitivity to diversity in the
workplace a top priority. With ever-increasing globalization, workers are frequently put into contact with
members of different backgrounds and cultures. Understanding the value of diverse work habits and
viewpoints can prevent this from becoming a point of confusion or misunderstanding. At the same time,
educating workers about the customs and concerns of others can help prevent social problems or
embarrassment in a diverse workplace.

4.5.2 Process

Get useful study materials from www.rejinpaul.com

Downloaded by Nivashini Amirthappa ([email protected])
 lOMoARcPSD|15891584

BA7204
www.rejinpaul.com
HUMAN RESOURCE MANAGEMENT

Career development and the career planning process include a number of specific steps that help to
identify personal skills and attributes. Finding out how those skills can be utilized in the job market is
accomplished by researching a number of career fields that are of interest to you and then by gaining
experience in those fields and/or speaking to people currently working in the field. Participating in some
form of experiential education will help you to identify if the field is the right choice for you.

Step #1: Self-Assessment

Evaluating who you are as a person. This involves taking a personal inventory of who you are and identifying
your individual values, interests, skills, and personal qualities. What makes you tick as a person? You will
look at those personal attributes under a microscope and come up with key qualities you can identify and
use in your search for the perfect career. Career assessments may be required to promote a better
understanding of personal attributes and skills. Contact your Career Services Office at your college to
discuss if a career assessment may be right for you.

Self-Assessment Reality Check Goal Setting Action Planning

The Career Management Process

Step #2: Research (Career Exploration)
Obtain an insider‘s perspective about the career field you are considering. Conduct Informational Interviews in
person, phone, or by email. Professionals enjoy sharing their expertise with people interested in the
field. Perform informational interviews with alumni from your college to gain their perspective of the field
and to listen to what they have to say. This strategy provides firsthand knowledge from someone currently
working in the field and gives you an opportunity to ask about their experiences as well as potential jobs
and what one might expect if just entering the field. Gain experience through internships or by jobshadowing
for one to several days to see what a typical work day entails and to gain perspective of what the environment is
like and the typical job responsibilities of someone working in the field. Research what types ofjobs are
available in your area of interest by checking out Majors to Career Converter, The Occupational Outlook
Handbook and The Career Guide to Industries. The Occupational Outlook Handbook offers a wealth of
information for those currently just entering the job market and for those anticipating making a career
change.
Step #3: Decision-Making
Once you‘ve made a thorough self-assessment and have done some research of career options, it‘s time
to make a decision. This can be difficult since there may still be many unknowns and a fear of making the
wrong choice. One thing for sure is that although we can do all the necessary steps to making an informed
decision, there is no absolute certainty that we are unquestioninglymaking the right decision. Thisuncertainty is
easier for some people than others but a key point to remember is that you can always learn from any job
you have and take those skills and apply them at your next job.
Step#4: Search (Taking Action)
It‘s now time to look for prospective jobs and/or employers, send out cover letters and resumes, and
begin networking with people in the field. Keep in mind that cover letters and resumes are designed to
make a favorable impression on employers (if done properly) and the interview process is what will
ultimately land you the job. In other words, make sure your cover letter and resume highlight your skills

Get useful study materials from www.rejinpaul.com

Downloaded by Nivashini Amirthappa ([email protected])
 lOMoARcPSD|15891584

BA7204
www.rejinpaul.com
HUMAN RESOURCE MANAGEMENT

and strengths based on the employer‘s needs and that you are fully prepared to knock their socks off at
the interview. Take time to research the employer‘s website prior to the interview, and be prepared to ask
thoughtful questions based on your research.
Step #5: Acceptance
Wow! You‘ve completed all of the steps above and you‘ve been accepted into a new and exciting or
different job. Congratulations! According to the Bureau of Labor Statistics, 64.1% of people change jobs
between 5 and 14 times in their lifetime. Consequently, learning the skills above will increase your chances
of gaining meaningful and satisfactory work as well as help you to avoid many of the stresses that occur
with changing jobs. By recognizing that change is good (even advantageous), changing jobs can be viewed as
a positive experience and need not be as anxiety provoking as it may initially seem. You will continue the
process of self-assessment, research, decision-making, and job searching in order to make effective and
fulfilling career changes throughout your lifetime.
The impact of career development/ succession planning programmes can be seen through the productivity
indicator, engagement surveys and reduction in attrition rate. It is in fact a win-win situation for all.
4.6 MENTOR- PROTÉGÉ RELATIONSHIP

Developing Mentor-protégé relationship:

―The relationship between an experienced employer and a junior employee in which the
experienced person helps the junior person with effective socialization by sharing information
gained through experience with the organization.‖
4.6.1 Requirements for effective mentor-protégé relationship:

1. The status & characteristics of the mentor:

Mentors should be seniors in status, experience, age, skills, knowledge.

2. Protégé: Junior employees should have the zeal to learn from their senior
employees regarding their career, social and psychological aspect.

3. The relationship: It is based on mutual dependence & mutual trust.

4. The activities:

฀ Developing the potentials of the protégé.

฀ Improving protégés performance
฀ Interlinking formal learning & practices
฀ Guide, support, providing feedback
5. Developing higher skills:

It should encourage their juniors towards high task performance by reducing

weakness & strength of the protégés.

6. Response of the protégé:

Proteges should learn carefully regarding career opportunities, personal goals.

Get useful study materials from www.rejinpaul.com

Downloaded by Nivashini Amirthappa ([email protected])