Reward for performance and contribution
Case Study
Home International is a furniture manufacturer and online retailer. The organisation is a family-owned business that was started over 30 years ago, and currently employs 175 people on full-time or part-time contracts in the UK. They have offices based in Oxford, Munich, Santa Cruz, Suez, and Kuala Lumpur. The organisation is growing and reaching a wider market due to the growth of online furniture shopping.
The organisation has grown during the pandemic, as clients have decided to invest in their homes. More and more people are changing their habits and purchasing sustainable products, which is seen as a positive, because Home International specialise in this area.
However, the business is currently in the process of reviewing all its policies, as Brexit means there have been several changes to rules regarding importing and exporting. This review includes people management processes in areas such as performance and reward. The objective is to cut costs, improve profits and reduce turnover.
Each office has a factory where the furniture is made and distributed on a global scale. Recently, the organisation has seen a higher turnover among the factory operatives who are aged 18 – 32 years old, whereas the office employees stick around for longer, and have an age range from 48 to 68 years old.
Preparation for Tasks:
▪ Plan your assessment work with your assessor at the start of the assignment. Where appropriate, agree milestones so they can help you monitor your progress.
▪ Refer to the indicative content in the unit guide and support your evidence.
▪ Pay attention to how your evidence is presented. Remember you are working in the People Development Team for this task.
Task: A written response to the questions below
The HR director has asked you to create a written response which will be circulated to the key stakeholders in the business. It will focus on the approaches to reward and the role people professionals play in supporting line managers when developing reward packages. It will cover methods of performance management and how to support line management decisions. You will need to include research around the area of reward and performance management and link in business examples to support your research and show further depth.
You will also need to gather research which will provide the context for the different environments for reward, what should be included in a reward package, and the legal requirements, these will help you create and develop your own package.
Your evidence must consist of: |
Written responses of approximately 3600 words (+ or – 10%). Please use the assessment criteria as your headings. |
Your response must cover:
1) An evaluation of two principles of reward and an evaluation of why reward is important to culture and performance management. (AC1.1)
Confident evaluation of two principles of rewards, for example: transparency, fairness, consistency. Including an overall judgement as to their importance. Confident evaluation of why reward is important to organisational culture and performance management. Confident links to wider reading using a good variety of sources and examples used to support the answer. Presentation is of a high professional standard. |
2) An explanation of how organisations can implement new policy initiatives and practices in relation to reward. (AC1.2)
Confident explanation of how a policy should be implemented which includes the various stages involved. Confident explanation of best practice in managing the process eg needs to be fair and inclusive. Confident links to wider reading using a good variety of sources and examples used to support the answer. Presentation is of a high professional standard. |
3) An explanation of how both people and organisational performance can impact its approach to rewards. (AC1.3)
Confident explanation of how people performance can impact on the approach to reward.
Confident explanation of how organisational performance can impact on the approach to reward.
Confident links to wider reading using a good variety of sources and examples used to support the answer.
Presentation is of a high professional standard.
4) A comparison of the different types of benefits offered by different organisations and the merits of them. (AC1.4)
Confident comparison of two different types of benefits offered by two different organisations and the merits of them. In your comparison consider the similarities and differences between the two benefits in the two organisations.
Confident links to wider reading using a good variety of sources and examples used to support the answer.
Presentation is of a high professional standard.
5) An assessment of how extrinsic and intrinsic rewards contribute to improved employee contribution and sustained organisational performance. (AC1.5)
Confident assessment of how extrinsic and intrinsic rewards contribute to improved employee contribution and sustained organisational performance.
Consider both the positive and negative impacts of each type reward.
Confident links to wider reading using a good variety of sources and examples used to support the answer.
Presentation is of a high professional standard.
6) An assessment of the internal and external factors which influence the business context of the reward environment within Home International. (AC2.1)
Confident assessment of the business context of the reward environment.
This response must include links to internal and external factors. Factors should be assessed in the context of how they influence reward decisions and the development of reward packages.
Confident links to wider reading using a good variety of sources and examples used to support the answer.
Presentation is of a high professional standard.
Confident evidence of referencing, using a good variety of sources.
7) An evaluation of how unemployment and payroll data can be used to develop insight when developing reward packages. (AC2.2)
Confident evaluation of how unemployment data and payroll data can be used when developing reward packages.
Confident links to wider reading using a good variety of sources and examples used to support the answer.
Presentation is of a high professional standard.
8) An example of a reward package that you have created for Home International. This should include an appropriate reward package supported with benchmarking data and an insight into job evaluation and the market rates relevant to the roles within Home International for example:
Role 1: Manufacturing Operative
Role 2: HR Administrator (AC2.3)
Confident response to the development of the steps in the process of job evaluation.
This response must include the development of an appropriate reward package which includes information around salary (Currency does not need to be in GBP) and a range of benefits, which is supported by benchmarking data (reference to relevant websites/sources is fine as evidence of benchmarking) used to justify the reward package.
The focus on this package must be developed for two roles relevant to the case study organisation (HI) An evaluation of two principles of reward and an evaluation of why reward is important to culture and performance management, for example:
Role 1: Manufacturing operative
Role 2: HR Administrator
Confident links to wider reading using a good variety of sources and examples used to support the answer.
Presentation is of a high professional standard.
9) An explanation as to the legal requirements in relation to pay and working time that might impact reward practice. (AC2.4)
Confident explanation has been provided. This response must cover legislation in the areas of pay or working time and the impact they have on reward practice.
Two examples of legislation to support this answer must be provided. Examples that could be included: Equality Act (2010), Minimum Wage Act (1998), Working Time Regulation (1998) etc.
Confident links to wider reading using a good variety of sources and examples used to support the answer.
Presentation is of a high professional standard.
10) An assessment of the effectiveness of two different approaches to performance management. (AC3.1)
A confident assessment of two different approaches to performance management, (e.g., performance review meetings, 360 feedback etc).
The response must include two benefits and two drawbacks of each approach.
Confident links to wider reading using a good variety of sources and examples used to support the answer.
Presentation is of a high professional standard.
11) A review of the role that people practice professionals can take to support line managers, to ensure consistent and appropriate reward judgements are made. (AC3.2)
Confident review of two examples of the role of people practice in supporting line managers to make consistent and appropriate reward judgements.
Confident links to wider reading using a good variety of sources and examples used to support the answer.
Presentation is of a high professional standard.
12) An explanation as to how line managers can make reward judgements based on organisational approaches to reward. (AC3.3)
A confident explanation of two examples of how line managers can make judgements based on organisational approaches to reward, for example making decisions in line with policy and the values of the organisation.
Confident links to wider reading using a good variety of sources and examples used to support the answer.
Presentation is of a high professional standard
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