Importance of Reward Management for Company's Growth and Development

This report discusses the importance of reward management in driving company's growth and development. It explores the principles and strategies of reward management and their impact on employee motivation and performance. The report also highlights the role of line managers in making reward decisions.

Reward
Management

Executive Summary
The above report states the reward management is very essential for company's growth
and development. The various principles and reward strategy are helpful for company in gaining
the competitive advantage for company and motivating employees. The various reward policies
and practices are helpful for encouraging employees to work for the betterment of company for
achieving the organizational goal and objectives.

Table of Contents
Executive Summary ........................................................................................................................2
INTRODUCTION...........................................................................................................................4
UNIT-6.............................................................................................................................................4
Asses in the context of environment of reward and the key perspectives that inform reward
decisions......................................................................................................................................4
Demonstrate the understanding of the key reward principles and the implementation of the
reward polices and practices.......................................................................................................8
Role of line manager in making the rewards decision..............................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Reward management is concern with implementation and formulation of policies and strategies
which aim to reward individuals equitably, fairly and consistently as per the organization's value
and recommendations (Ahmed, U and et.al., 2016). It is the motivational practice which is used
by businesses for rewarding workers for their success and achievements. It is also helpful for
retaining employees for long term.
Marks and Spencer Group Plc is major British multinational retailing company. It had its
headquarter in Westminster, London. The company had its specialization in selling high quality
home products, clothing and food products. It was established by Thomas Spencer and Michael
Marks in 1884. The above report includes analysation of internal and external factors for the
company. Drivers which impacts business and related factors. Examples of various ways of
presenting and gathering reward (Bussin, M., 2016). Evaluating principles of the total rewards
and its importance to reward strategy. Identifying and explaining importance of fairness, equity
and consistency. Assessing contribution of intrinsic and extrinsic rewards for improving,
employee contribution and sustained company's performance. The report further carried forward
with the explanation of reward policy practices and initiatives. Report ends by demonstrating
different ways line manage contribute for the reward decision-making.
UNIT-6
Asses in the context of environment of reward and the key perspectives that inform reward
decisions.
1. Internal and external factors of the company
There are two different factors which helps to identify internal and external factors of the
Marks & Spencer, so they can understand their weakness and their strength. They can also know
that this all factors are affecting them negatively or positively.
PESTEL analysis of M&S
Political factor
Political Factors such as Brexit affect on the company's probability because M&S was
purchasing most of the row material from European countries but after Brexit relation between
UK and Europe countries become bad so now they are purchase row material from other country,
and they have to give more cost.
Economical Factor

competitor or the Marks & Spencer providing products in low prices, so they can
overtake this companies positioning. It is affecting on the company, and they also have to reduce
their product prices.
Social Factor
They are getting good response and revenue from their ready meal scheme. People can
take ready meal from the M&S stores (Collings, D. G., Wood, G. T. and Szamosi, L. T., 2018), it
saves their time and people just have to fry or put boil water.
Technological Factor
M&S is a multinational brand, and they also provide online shopping which can be
possible through their website. Prole can order their product, and they will deliver their product
to their home.
Environmental Factor
Fair trade which is developed to create better compensate with the another country's
product, and the fair trade has huge impact on the environment as well. M&S take decision to
sell the Fair trade products (Festing, M. and Tekieli, M., 2018).
Legal Factor
M&S is international brand, and they are having all the legal license and order to expand
their business in other countries.
SWOT analysis of M&S
Strength
 M&S has huge reputation in the all over the world, and they have build their image as a
emerging brand.
 Marks & Spencer have most sustainable supply chain network in this industry.
 In this industry most of the time M&S have get rewards.
Weakness
 In the clothing department of the M&S has increasing the pressure because of their poor
performance in fashion and clothing.
 They are selling their product in high cost and there are other retailers who are selling
same quality product in less price.
Opportunities
 M&S have high scope in online shopping side

 they are having opportunity to expand their business in other market where they can get
better profit.
Threats
 There are many strong compositors of this company in the market (Ingram, T. N and
et.al., 2015).
 Economy of the countries are recovering very slowly.
2. Impact of business drivers and related factors on the reward decision
Business driver are the activities and the key inputs of the business which drives the
financial and operational result of the business, there are some factors which is related to the
internal and external factors such as governmental factors have huge impact on the business and
internal factors such as internal environment of the company can impact on the reward decision-
making.
Governmental factors has huge impact on the decision-making of the reward system, this
effect can be seen when government change the policies for the employees of the company, so
they have to change their polices too (Jani, S. S and et.al., 2015). Company have to change their
rewards polices and make new reward polices for the company after making the polices for the
employees they have to understand that tit will affect negatively or positively on the employees.
This can demotivates to the employees if they cannot take advantages of the new reward polices
of the company. After making the new polices for the reward and understand their effect they
have to implement for the employees.
Company have huge impact on the reward system when social issue effect on the
company and create conflicts between the employees. Sometime when some employees cannot
able to achieve company ies reward then this thing affect on their work efficiency, and they can
get will not give their best toward their task and this can create conflicts on the workplace
between employees and employees in this situation social issue affect on the decision-making of
the reward system, and they have to change their reward system which can provide equal
opportunities for the people (Judah, J., 2017), and they can give their best to achieve the
companies objectives and business goals, so they can get rewards from the company.
3. Give employees of the different ways of gathering and presetting reward intelligence
A rewards strategies are impotent for the M&S, so they can take competitive advantages
and make their workforce more efficient and strong. Reward system help employees to motivate

them and help them to achieve those rewards which is implemented by the company. They give
their best and it effects on the companies growth and Marks & Spencer can increase their
reputation in the market by employee's performance in the task (Kang, H. and Shen, J., 2017).
Usually this is a combination of the process polices and companies practices of how employees
are in the order so employees can achieve the companies goals. There are some strategies for the
rewards which can help Marks & Spencer to achieve their business goals.
Performance Related Pay
Marks & Spencer can give rewards to the employees according to their performance, if
any individual employee is doing good in their job then they should give them reward for their
performance so employee can continue their performance and help company top achieve growth
in the industry by their performance (Kelmendi, M., 2017). If employees are performing and
Marks & Spencer company is not giving reward for their performance then their employees can
be demotivated, and they can lose their performance because other employees who are not give
afferts in the task they are also getting equal pay, so they will also stop give best for the task and
it can affect the company's profitability.
Skill based pay
Superiors of the Marks & Spencer should pay according to the employees skills and their
potential, so they can use those employees skills to9 achieve the companies objectives and goals.
It will also effect the employees, and they will give their 100 percent in the task and try to
achieve companies objectives (Kornelakis, A., 2018). If company is paying same on to the
skillful workers who have experience in the workplace and other workers who are new and do
have any kind of experience. If they all getting same then it will effect their mentality and
employees will stop trusting in the companies polices.
Team pay
Team work is the best way to produce outcome for the company, if company is paying
reweds to the employees individual then some of them will get the reweds but other employees
will not able to take advantages of the reward system then it will effect their mind, and they will
be demotivated so it will be better Marks & Spencer should make groups in their workplace, and
they all group can give their best to archive those rewed. Every employee can get equal rewards,
and they all will be motivated. It will be beneficial for the company if they use this strategy.

Demonstrate the understanding of the key reward principles and the implementation of the
reward polices and practices
1. Principles of reward system and their impotence to the reward strategy
Total reward is a just a term which describe the reweds strategies bringing together all
the companies invest they have made I their workplace For example- pensions, development, pay
and learning.
In order to define what to do with the Marks & Spencer company total reward strategy
they need to ensure their business aims and objectives for the reweds (Martono, S., Khoiruddin,
M. and Wulansari, N.A., 2018). It is impotent for the Marks & Spencer create better reward
system for the employees. There are some total reweds principles which can help to implement a
reward practices and polices for the company.
Create a positive and natural reward experience
Leaders and mangers of the Marks & Spencer should communicate with the employees
and educate them on the basis of changing the reweds and polices to the companies workplace
they should involve prole to help them in the change process to gain their understanding,
commitment and acceptance.
Align rewards with the business goals to create a wining partnership
both the employees and Marks & Spencer company need to gain from the relationships.
Employees who give their best to achieve the companies objectives and goals share in the
success. To insure the winning partnerships (Md, M. I., Sun, Z. and Dagli, C., 2017), Marks &
Spencer manger should provide clear directions to the employees, prole must continue to add
value, and the company must acknowledge their values with the rewards
Extend people's line of sight
It is impotent for Marks & Spencer Involve people in increase their line of sight to how
they influence the better results of their employees team, business unit, group and company.
They should Engage employees of the company in understanding how what they do affects the
customer and how they can adapt to evolving buyers needs and their demands from the company,
to Ensure that everyone is a knowledgeable stakeholder in overall success.
2. Importance of Consistency, equity, fairness and transparency in rewards polices and
practices and principle of reward management
Consistency

Consistency is impotent for the Marks & Spencer company rewards and polices so
employees of the company can achieve those rewards (Pepper, S., 2016). They should provide
the proper target and proper time so employees can achieve rewards by their task. It will
motivate them to reach to that target company has decided in their reward polices, and they can
achieve those target in the practices.
Equality
Marks & Spencer company should reward polices in which every employee of the
company can get the opportunities to achieve those rewards, and they can give their best to
achieve those rewards (Perkins, S. J. and Jones, S., 2020). They should provide minimum reweds
to the those employees who give their best ion the task but not able to achieve the target of the
company.
Fairness
Marks & Spencer company should change in their polices to provide individual reward
system they can practice group task, and they can give rewards to the group so it can create a
competition between the groups to achieve the target of the company. It will increase the
efficiency of the employees and it will also create the flow of communication between
employees in the groups.
Transparency
Marks & Spencer company make their polices and practices in a way they can create a
trust within employees (Rondeau, K. V., 2018). It is impotent for the company superiors to create
trust among the employees, so they can share their thought with them, and they can build the
relationships with them. This will increase companies reputation in the market and it is impotent
for the companies to build trust between employees, so they all can work together, and they give
their contribution to achieve companies goals and objectives.
Principle of Reward management
It is impotent for the Marks & Spencer companies to provide opportunities for the
employees by set target reweds, so employees can understand that if they will achieve this target
they will get this many rewards, company can increase the rewards according to the steps. In first
step they will get minimum reward and 2nd step employees will more rewards and for the last 32
stage they can select 2-3 employees, and they who achieve the highest target they will get extra

rewards and some gift hampers, so they all will get equal rewards and employees will give their
best toward the task.
3. Contribution of extrinsic and intrinsic rewards to improve performance of the employees
Intrinsic rewards
Intrinsic rewards are non-physical rewards (Rose, M., 2018). This rearwards does not
have physical presence, but they are connected with the employees felling and their emotions.
This feeling come when employees of the company achieve or complete the task. Reward system
is directly connected with the employee's performance in the job as successful task automatically
produce the rewards for them. Higher the success rate, higher will the rate of this reward system.
Every employee have its own different participation in the task so there are various form of
intrinsic reward system.
Sense of achievement
This category needs more skills, efforts and courage to perform any task in the workplace
and there is no better feelings than the joy one fells seeing their hard works pay off. For
example Prole who perform well in the task they get automatically get promotion in their job,
and they get higher responsibility ion the company and company increase their salaries too. This
rewards can get according to the performance and employees talent and their experience in the
company. Superiors of the company give them promotion in the company.
Reorganization
Every employees who are working in the company they want to be renowned. This work
as a reward for the employees when they recognized by their co-workers and other team
members of the organization (Shonhadji, N., 2018).
Extrinsic rewards
Extrinsic rewards are physical rewards which employees get by the company. This
rewards can be bonus, incentives, benefits, gifts. Most of the organizations use this system to
motivate their employees and increase their work performance in the task. Employees get money
in the rewards which they can spend for the personal use, and they can spend to fulfill their needs
and their demand of the daily life. Organizations give incentive to the employees if they able to
achieve the companies target and companies goals. According to the companies polices they will
get rewards such as money, bonus and incentives, and they can use it for buy things. Here are
the examples of Extrinsic rewards-

Bonus or commission
When company earn profit because their employees give their effort in the task then they
give bonus and commission to the employees as a reward and it is also important for the
company to provide them addition rewards for their performance, so they can give their best
towards the task they will keep motivated.
Fringe benefits
Fringe benefit are provided by the organization, it is extra benefits which is added in their
salaries. It is important for the company to provide Fringe benefits to their employees because
financial rewards always help them to motivate and this also built trust among the company.
4. (Rewards) polices and practices implemented by Marks & Spencer company
Marks & Spencer company always bring new reward polices and practices in their
workplace. Recently they launch new rewards polices in which employees have to achieve set
targets by selling the products of the company (Shortland, S., 2018). After reaching the target
employees getting bonus for each extra points. This was effective strategy by the company and it
helps to improve the performance of the employees in the task. Employees can use those points
for the shopping, and they can add those pints in their salaries, and they get extra money. This
was beneficial scheme by the Marks & Spencer company and this help company to grow, and
they achieve high growth in the market. Many employees company make extra benefits and
almost every employee of the company was getting profit in the reward policy. Company also
sees the competition by the employees to achieve extra points. Top scorer of the month get extra
gift hampers and in the end of the year employee who perform best in whole year they get bike
or something premium reward.
Before this reward system of the Marks & Spencer company. They were using normal
reward system which is used by every organization. Company give rewards to the employees
who performance well and there were some employees who were getting the advantage of this
reward system and there was no growth company superiors seen for the company (Ahmed, U and
et.al., 2016), so they carnage their all the reward polices and superiors of the company
implement new reward polices for the employees, and they see huge performance increment in
the employees, and they started giving their best for the company, and they are still using this
point system reward and this also help Marks & Spencer companies to increase their goodwill in
the market and their workforce also become strong as compare to the other organization. Now

they come in the one of the best retailer in the world and more than 80000 employees are
working for this company.
Role of line manager in making the rewards decision
Contribution of line manager in reward decision
Line manager of the Marks & Spencer company have impotent role in the reward
decision-making. They help in the every process of the companies reward system, and they have
to monitor and help employees to perform and achieve the rewards of the company. Line
mangers are also refers to the management of the companies workers, and they are directly
involved in the production and delivery of the services and good of the company. Line manager
of the company represent the lowest level of the management in the company ans they get team
of the few members (Bussin, M., 2016), and they have to mage all the employees under them,
and they have to motive and give proper direction to them, so they can help company to achieve
their business objectives, and they can become successful in their industry.
Decision making for rewards polices
Leaders and manger of the Marks & Spencer company have to make reward polices for
the company but without line mangers of the company they cannot bring new polices and
without their contribution in this polices. Line manager of the company help superiors of the
company to make new reward polices they provide new suggestion to the leaders and mangers
about the reward and put their own opinion (Collings, D. G., Wood, G. T. and Szamosi, L. T.,
2018). If anything is wrong in those police and anythings need to change then line manager give
the suggestion to them to change in the reward polices. They manage low level of the
management in the company but superiors of the company need them in they decision-making of
the companies reward polices. Line manager of the Marks & Spencer company provide
information that what was the problem employees were facing in the previous reward system and
what company need to change in their reward system polices. According to the information
provided by the Line meager of the company, superiors take decisions in the companies polices
or otherwise they change some functions and guidelines which is creating problems for the
employees reward system.
Implementing polices
After making the polices by the superiors and line manager if the Marks & Spencer
company. Line manager implement the new polices in the workplace, and they explain which

changes they bring in the polices and how it will help them to achieve rewards. This is impotent
work to explain b the polices and new reward system which they are brought in the workplace.
Line manager have to explain it to the employees, and they have to take feedback from the
employees after the implantation the new polices in the workplace. They have make understand
to employees that what was the changes they have brought and what benefits employees have
prom the new reward system how what are the targets and how employees can achieve those
rewards. Everything will be explained by the Line manager of the Marks & Spencer company.
Monitoring
Line mangers impotent role in the monitoring of the employees, and they have to record
their performance before the reward system and after implementing the reward system in the
company employees performance increase or not and employees are putting their effort to
achieve rewards or not. Line manager have to monitor this all (Festing, M. and Tekieli, M.,
2018). This can help Marks & Spencer company to understand that rewards system they are
using in their workplace are beneficial for the company or employees both, so they can change
the reward system, and they can bring new reward system which can be more better and provide
success to the company.
Motivating employees
Line manger of the company motivate the employees to achieve the companies target, so
they can get reweds and extra benefits by the reward system of the company. Line manager is the
main motivation, and they encourage employees to give their best in the take and according to
their performance they help employees to provide them reward for their performance. They give
all the information to the employees how they can achieve the rewards and make them
understand how they can use this reward for their demand sand needs. Employees get motivated,
and they started giving best towards their task.
Issue solving
If employees of the company are facing any problem to get the rewards or some of the
employees do not get reward for their performance then line manager help employees to get their
reward, and they help superiors to take decision-making for the companies reward system.
CONCLUSION
From the above report it has been concluded that reward management is very essential for
a company to implement in their operation management. The company should avails rewards and

incentives to their employees so that their employees can be encouraged and motivated. If
employees are motivated and encouraged for keeping their quality work ahead it is profitable for
the company for gaining huge profit margins ahead. Company can retain employees for long
term if employees are rewarded and keep motivated by the employers. By these workers also feel
valued and thus they work further for the betterment of company. They can render high quality
goods and services to their consumers so that the consumer can gain huge loyalty base on
company's product and services. Healthy work environment can also be developed by effective
reward management so the employees can work with positive attitude. The costing of training
and hiring new employees can also be reduced if the existing employees are giving their vest for
the growth and development of company. Employees must be considered by company so that
they feel valued and encouraged by their employers. So the reward management is very
important for company in achieving their goals and objectives.

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