Reward and Compensation Management: Linkage with Strategy

Running head: HUMAN RESOURCE MANAGEMENT
Human Resource Management
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1HUMAN RESOURCE MANAGEMENT
Introduction:
The report provides an insight into reward and compensation management from the
point of a consultant. The report focuses on the link between the reward management and
strategy and the objectives and principles of reward management.
Discussion:
How Does Reward Management Link with Strategy
The linkage between the reward management and strategy can be described by the
identification of quantifiable business goals. Here linkage is drawn by dividing the vision of
the company into measurable goals. In this step the goals for the upcoming years are not only
identified but measures adopted in achieving the goals (Shields et al., 2015). Here the levers
to be pulled are also identified thereby creating a value for the company. In driving the
alignment across all organizational level the alignment takes place by involving employee
population towards the goals of the company. It is however necessary for the employees to
understand what they need to do differently. Here it is also necessary to innovate and create
value from same resources at the disposal. While determining the level of equity in target
setting the linkage is drawn by determining the acceptable performance levels with the
identification of the goals. This can be done through incorporation of structured system based
on data that helps in setting the targets at all the levels thereby establishing equity in the
target setting. The equity of targets acts as a crucial factors in maintaining optimum degree of
the stretch across organization while maintaining the focus of everyone towards the goals.
To draw the linkage it is also necessary to not underestimating the intangibles. Here
the link is drawn by paying attention towards the intangible part or the emotional part of the
reward management. The intangible part is much heavier compared to the tangible part or the
monetary part. Thus, it is important to view reward as total reward that not only includes the