Nando
3. (a) As defined by Armstrong (2006) Reward Management is concerned with the formulation and implementation of strategies and policies, the purpose of which are to reward people fairly, equitably and consistently in accordance with their value to the organization and thus help the organization to achieve its strategic goals.
Flippo (1961) define as the adequate and equitable remuneration of resources to organizational objectives.
These two terms covers the same aspect of human resources which looks at the payment systems and all other related factors. The individual’s responsibility to the organization is emphasized considering that employees should be paid for they have something to contribute to the organization to achieve its strategic goals.
However reward management goes a step further and ensures that rewards are linked to contribution.
(b) Though considerable amount of guesswork and negotiation are involved in salary determination, certain factors have been extracted as having an important bearing upon the final dollar decision. These factors are identified and described bellow and a realization of these complexities will lead to greater appreciation and acceptance of job evaluation despite its arbitrariness and scientific failings
The individual’s worth
The contribution made by each employee to the organization should be determined in relation to rewards. An organization can achieve productivity through staff by paying for performance and this not to be only in basic salary but in other ways like profit sharing and productivity bonuses. Individual performance thus will determine the individual’s worth to the organization thus determining how much individuals will receive in wages and salaries.
Market rate.
The market rate for a position has a bearing on how on the demand and supply factor of the job. The more the market have people of the same profession then their salaries will be low and the fewer they become their salaries will be higher. For example
Flippo (1961) define as the adequate and equitable remuneration of resources to organizational objectives.
These two terms covers the same aspect of human resources which looks at the payment systems and all other related factors. The individual’s responsibility to the organization is emphasized considering that employees should be paid for they have something to contribute to the organization to achieve its strategic goals.
However reward management goes a step further and ensures that rewards are linked to contribution.
(b) Though considerable amount of guesswork and negotiation are involved in salary determination, certain factors have been extracted as having an important bearing upon the final dollar decision. These factors are identified and described bellow and a realization of these complexities will lead to greater appreciation and acceptance of job evaluation despite its arbitrariness and scientific failings
The individual’s worth
The contribution made by each employee to the organization should be determined in relation to rewards. An organization can achieve productivity through staff by paying for performance and this not to be only in basic salary but in other ways like profit sharing and productivity bonuses. Individual performance thus will determine the individual’s worth to the organization thus determining how much individuals will receive in wages and salaries.
Market rate.
The market rate for a position has a bearing on how on the demand and supply factor of the job. The more the market have people of the same profession then their salaries will be low and the fewer they become their salaries will be higher. For example