Reward Management in the University Environment: Key Perspectives

Running Head: REWARD MANAGEMENT
REWARD MANAGEMENT
Name of the Student:
Name of University:
Author Note:

1REWARD MANAGEMENT
Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................3
Reward environment and key perspectives.................................................................................3
PESTLE analysis.....................................................................................................................3
SWOT analysis........................................................................................................................4
Ways gathering reward intelligence............................................................................................5
Hay reports...............................................................................................................................5
Mercer reports..........................................................................................................................5
Benchmarking..........................................................................................................................6
Principles of total rewards and importance.................................................................................6
Significance of equity, fairness, consistency and transparency...................................................9
Policy initiatives........................................................................................................................10
Extrinsic and intrinsic rewards on employee contribution........................................................12
Extrinsic rewards...................................................................................................................12
Intrinsic rewards....................................................................................................................12
Line managers' contribution......................................................................................................13
Conclusion.....................................................................................................................................14
Reference.......................................................................................................................................16

2REWARD MANAGEMENT
Introduction
The purpose of reward management in an organisation is to motivate and encourage the
employees so that they can feel more satisfied and dedicated enough to enhance their
performance. According to Aslam et al. (2015) the reward management has a close relation with
the profit orientation of the organisation in the form of encouraging the satisfying the
e3mployees and makes them more focused on enriching their performance. Therefore, the
deserving candidates will get the rewards based on their performances. As the purpose of the
reward management is to motivate the employees so that it seems a useful and significant tool for
the organisational development. Moreover, Lin and Lo (2015) opined that the reward
management helps the organisation to set a strong bond with the employees and procure better
workplace environment based on cooperation and mutual understanding. As a matter of fact, it
can be stated that the reward management has a sharp focus on the fair and transparency in
organisational culture where the best people can get privileges and recognition. In course of the
practice, the rest of the employees will feel encouraged and inspired by the rewarded workers
and also put more effort in the performance.
Based on this understanding, this report aims to deal with the reward management
process dedicatedly. For a proper and authentic discussion, Abu Dhabi National Oil Company
(ADNOC) has been chosen. In course of the discussion, the reward environment of ADNOC is
going to be evaluated at first. After that the report tries to develop an argument over the relevant
principles and other determinant factors like the role of equity, fairness and consistency and the
understanding regarding policy initiatives. Moreover, it can be stated that the report also

3REWARD MANAGEMENT
identifies the contribution of the line manager and the extrinsic and intrinsic contribution of
rewards in the organisational framework.
Discussion
Reward environment and key perspectives
PESTLE analysis
As far as the external environment of UAE market is concerned, there are number of
elements that can influence the reward practice of ADNOC dominantly. In the political
perspective, the UAE government is highly focused on improving the labour market situation.
Therefore, the economic vision 2030 of Abu Dhabi directly implies government initiatives to
develop the labour productivity. Moreover, this practice is also associated with the notion of
economic factors where the economy of UAE is primarily based on the oil production and
export. Therefore, it is important for ADNOC to initiate such a measure to encourage the
workers. It is also associated with the social and legal framework where the Abu Dhabi
government is trying to ensure the cultural expectation and the retirement pensions and benefits
for the employees effectively. Furthermore, introduction of cutting edge technologies requires
employee skills so that the workers deserve more financial benefits in terms of reward and
recognition. In fact, the hardship and dedication of the employees lead to further justification to
provide economic benefits to the workers.
In this regard, it can be stated that primarily the business environment and the ability of
the UAE employees creates a need to facilitate awards. It is further influenced by the government
initiatives in strategic and legal proceedings. For an instance, the UAE government wants more