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Reward Management Principles - PDF

   

Added on  2021-02-19

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REWARDMANAGEMENT

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK...............................................................................................................................................11.1 The context of Rewards environment and key perspectives that inform reward decisions..11.2 Appropriate ways in which reward intelligence can be gathered and presented..................42.1 The principles of total rewards system and its importance to reward strategy.....................42.2 The significance of equity, fairness, consistency and transparency as they affect rewardpolicies and practices..................................................................................................................72.3 Ways to implement policy initiatives and practices..............................................................83.1 Various ways in which line managers contribute to rewards decision making....................93.2 The contribution of intrinsic and extrinsic rewards to improve the employee contributionand manage performance of the company................................................................................10CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................12

INTRODUCTIONReward management is adaption of policies that reward employee on consistency, fairand equitable basis in line with the vales of organisation. Rewards comprises of praise,challenging work, avenues for growth and development. Praise can be simple cognition for workin presence of other employees (Al Marzouqi, Khan and Hussain, 2019). In simple words, theachievements as well as benefits received by the employee for there performance in job in acompany is called as rewards. Rewards are best for motivating the employees withinorganisation as the main purpose of reward is to create value for the people and it also helps ondeveloping the culture of performance in the organisation. This preset report is context to Etihad Airways of United Arab Emirates. It is the secondlargest airlines in the country which was founded in 2003. Its head office is located in AbuDhabi. This airlines operates more than 1000 flights per week to over 120 passengers and cargodestination in the Middle East, Asia, Europe, Australia, America. Company is also operating inEtihad Cargo and Etihad Holidays. This preset report will provide clear and depth understanding of how the business contextdrives strategies and policies of rewards including industrial trends, labour markets, regionaldifferences. Financial drives of the company and the impact of balance sheet will also discuss inthis assignment. TASK1.1 The context of Rewards environment and key perspectives that inform reward decisions.In the modern-day world, rewards for finer performance as well as success matter morethan the effective achievements itself. It is very important to have the best rewards system andstrategies so that organisation can obtain productive work from the employees. Rewardmanagement of the company is influenced by the external and internal forced in both positiveand negative way (Adeniran, Egwuonwu and Egwuonwu, 2016). The reward system EtihadAirways is also influenced by the macro and micro environmental forces. In order to track theimpact of external and internal factors on the reward system of the organisation, Pestle analysisand SWOT analysis is one tool PESTLE ANALYSISPestle Analysis is an instrument that is used by the organisation to track the externalforces which the influencing operations and function in both positive and negative way. Etihad1

Airways has also used to this tool to identify the macro environmental forces affecting thereward policies and strategies of the company. Political Factors: Political factors comprises of all the level of government intervenes in the country orbusinesses as it included all the government laws, policies, legislations made by the parliamentof the nation. Etihad Airways is operating on international routes and the airlines is mostlyexposed to global political development. With the emergence of threat of terrorist attacks, Trumphad bad to restrict travel for the movement of six Muslim counties and this political decision haslimit the growth of Etihad Airways business that ultimately put on negative impact on rewardpolicies of the company (Holston and Kleiner, 2017). On the flip side, the political stability inUAE has risen the growth of the company that has resulted in positive impact on the company. Economic Factors: Economic Factors comprises of the economic conditions of the country that includesGDP, inflation rates, interest rates, foreign exchange rates, unemployment rates etc. Theseelements of economic factors has direct or indirect impact on the performance of Etihad Airwaysthat ultimately affect the rewards strategies of the company. The Dirham is strongly high relatedto the US dollars so expenses of the people living in UAE is also high, it is important thatcompany should pay that able to fulfil their expenses (External Analysis of Etihad Airways,2016). On the flip side, Etihad Airways is providing services at cheaper cost to develop thebusiness through high customer base. This cost strategies of Etihad Airways is leading positiveimpact of reward policies.Social Factors: This factors is comprises of the trends of society which is important for organisations toconsider in there operations and functions. The economic recovery after the crises of 2007/08, ithas been identified that the growth of middle classes that has contributed to the optimistic changein the demand of Etihad Airways (Aygün, Yılmaz and Gülseçen, 2017). Now, people can affordto travel in emerging nations that has ultimately leads to positive impact on the reward policiesand strategies. Technological Factors:This the factors that is comprises innovation and automation in the industry and it leadsto effective growth in the airline industry. It has been witnesses that airline sector has seen rapid2

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