Reward Management - Assignment

Reward Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK1.............................................................................................................................................1
1.1 Internal and external factor of the company that impacts its reward policy.........................1
1.2 Various kind of Reward........................................................................................................1
TASK2.............................................................................................................................................1
2.1 Importance and principles of a total reward approach..........................................................1
2.2 Significance of fairness, equity, transparency and consistency affect reward policies.........1
3.2 Assessment of the contributions of extrinsic and intrinsic reward.......................................1
2.3 Reward policies and practices are implemented in organisation .........................................1
TASK3.............................................................................................................................................1
3.1 Different ways in which line managers can contribute to reward decision-making.............1
CONCLUSION ...............................................................................................................................1
REFERENCES................................................................................................................................3
.........................................................................................................................................................5

INTRODUCTION
Reward management is the best term that is concerned with the implementation and
formulation of policies and strategies, motive this management to reward people consistently,
equitably and fairly as per their value to the enterprise (Reward Management, 2018). Main aim
and objectives of reward management is to develop and efficiently activate a reward arrangement
for a business entity. In simple words, it is adaptation of plan and policies that recompense
workers on equitable, fair and consistency basis in relate with the value of organisation
(Armstrong and Taylor, 2014). It is an essential part of business development and success. It
comprises of different aspects such as challenging work, praise and avenue for progress and
development.
This report is based on KMG Kashagan B.V. which is an offshore oil and gas company in
Kazakhstan. This assignment has shown about SWOT or PESTEL analysis that affects the
business reward policy. Different types of rewards are also determined in this study. Principles
and significance of total reward approach are described here. Assessment of the contribution of
intrinsic and extrinsic rewards has also been analysed in this project. There are various ways in
which line manager of company can participate in the decision making process or reward
systematically.
TASK 1
1.1 Internal and external factor of the company that impacts its reward policy
KMG Kashagan B.V. is a private organisation with sufficient liability. It is one of the
biggest and most multifaceted offshore oil companies in all over the world. It was incorporated
and assimilated by the joint stock company in October 2005. Main interest and motive of KMG
is to monitor the Kazakhstan contributing awareness in the invention allocation contract in
regards of the North Caspian Sea (Arulrajah, Opatha and Nawaratne, 2015). This business
provides gas and oil production as well as exploration services to the audience. In company,
there are different number of employees that work together. Main aim of workers is to
accomplish the predetermined goals and objectives of organisation in limited time period. In
order to achieve hire growth and success in competitive marketplace, staff members are required
better policy of reward.
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There are two factors that affect the reward policy such as SWOT and PESTLE analysis.
These are determined as below:
SWOT Analysis: It is an important and essential tool for each and every organisation
because it analyses business strengths, weakness, threats and opportunities (Birasnav, 2014).
SWOT analysis of KMG Kashagan BV are given as below:
Strengths Weakness
 Main strength of company is strong
economic development and growth.
 Maximise the demand for gas and oil
 Higher consideration of portfolio
 Alternate options
 Scope of maintenance or conservation
 Import dependence of very high
 Late start in the procurement or
acquisition
 Geo-political uproar and disturbance
 Self-defeating plan and policy
Threats Opportunities
 Maximising competition
 Ever maximising demand
 Production stagnation
 Sufficient regional institutions
 Environment concerns
 Terrorism
 One of the main opportunities is supply
chain.
 Advanced technology
 New sources and growing market
 Interdependence nations
 Frontier markets
 Collaborations
PESTEL Analysis: It is also beneficial and the foremost tool for each and every
organisation. There are some points which are covered in this approach such as political,
economic, social, technological, environmental and legal (Brewster and et. al., 2016). All these
highly impact on reward policy of company in a direct and indirect way. PESTEL analysis of
KMG Kashagan BV are described as below:
PESTEL Analysis Description
Political It is a part of factors which show the control of
political unit on a venture of business. In this,
political decision or judgement have influence
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