Reward and Performance Report - CIPD R104-5C001, May 2022 Assessment

This report, submitted as part of a CIPD assessment, explores the multifaceted aspects of reward and performance management within organizations. Task One delves into the impact of reward approaches and packages, examining principles such as fairness, consistency, equity, and transparency. It analyzes the implementation of reward policies, the influence of people and organizational performance on reward strategies, and the merits of various benefits, including extrinsic and intrinsic rewards. The report further investigates benchmarking data to inform reward approaches, covering business context, data gathering, and legislative requirements. Task Two focuses on performance management approaches, the role of people practices in supporting line managers, and how managers make reward judgments. The report incorporates figures and references to support its findings, demonstrating a comprehensive understanding of reward systems and their contribution to organizational culture and performance.

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Table of Contents
Task One – Guidance Document.....................................................................................................5
Section One - The Impact of Reward Approaches and Packages...................................................5
AC 1.1: Reward Principles and Its Importance to Organisational Culture and Performance
Management................................................................................................................................5
Fairness....................................................................................................................................5
Consistency..............................................................................................................................5
Equity.......................................................................................................................................6
Transparency............................................................................................................................6
AC 1.2: How Reward Policy Initiatives and Practices Implemented..........................................8
AC 1.3: Impact of People and Organisational Performance on Approach to Reward..............10
AC 1.4: Different Types of Benefits Offered by Organisations and The Merits of Each.........11
AC 1.5: Extrinsic and Intrinsic Rewards to Improve Employee Contribution and Sustained
Organisational Performance..........................................................................................................12
Section 2 – Benchmarking Data to Inform Reward Approaches..................................................14
AC 2.1: Assess the business context of the reward environment..............................................14
AC 2.2: Appropriate ways to gather benchmarking data and measured to develop insight......15
Employee Survey...................................................................................................................15
Industry Analysis...................................................................................................................15
AC 2.3: Organisational reward packages and approaches based on insight..............................16
AC 2.4: legislative requirements that impact reward practice...................................................17
References......................................................................................................................................19
Task Two – Blog Article...............................................................................................................21
AC: 3.1 Different Approaches to Performance Management...................................................21
1. Reward exemplary performance.................................................................................21
2. Introduce mentorship programs in the workplace.......................................................21

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3. 360-Dregree Appraisal................................................................................................22
AC 3.2: role of people practices in supporting line managers to make consistent and
appropriate reward judgements..................................................................................................22
AC 3.3: how line managers make reward judgements based on organisational approaches to
reward........................................................................................................................................23
References......................................................................................................................................24
List of Figures
Figure 1 Principles of Reward.........................................................................................................6
Figure 2 Reward Policies and Practices Implementation................................................................8
Figure 3 Narrow-Graded Structure................................................................................................16
Figure 4 Broad-graded Structure...................................................................................................17
Figure 5Narrow and broad-banded structures...............................................................................17

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Task One – Guidance Document
Section One - The Impact of Reward Approaches and Packages
AC 1.1: Reward Principles and Its Importance to Organisational Culture and Performance
Management
In the context of an organisation, "reward strategy" refers to the process of formulating and
carrying out reward policies and procedures that contribute to and advance the organization's
goals. When it comes to how they should be rewarded, every organisation has options. Others
prefer to vary pay according to individual or team performance in order to motivate employees to
behave or perform in ways that are desirable for the company. Some choose to provide stable
basic salaries with predictable annual increases in order to increase retention and commitment,
while others choose to do so because it is easier. Some companies use what is known as a Total
Reward strategy, which incorporates not just monetary compensation but also benefits, chances
for professional growth, and the conditions under which employees are required to do their jobs.
The term "strategic reward" might be used to characterise any of these different techniques.
Following are the principles of reward strategy, which are important to organisational culture and
performance management:
Fairness
Fairness is the first and one of the most important principle of reward system. Fairness means
appropriate incentives. However, implementing this particular principle can be hard. When one
person gets paid less than another for the same task, the underpaid worker may be upset. Though
one employee performs better than another, even if they do the same task and get the same pay,
the superior performer may consider the incentive structure unfair. Different people put different
emphasis on different criteria when judging fairness. Highly rewarded employees are more likely
to contribute to corporate goals. Pay fairness seems to have little benefits when seen in isolation.
As a result, employee performance improves, leading to a healthy organisational culture where
each person strives to offer his/her best and raise profit margins.
Consistency
Consistency is another principle of reward system that has an influence on the culture of an
organisation as well as performance. It is far more probable that workers will increase their
productivity and contribute to the goals of their organisation if they are consistently
acknowledged and rewarded for their efforts.

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Equity
The principle of equity refers to the situation in which all employees are rewarded in the same
manner for doing quality work. When it comes to deciding compensation, managers are tasked
with ensuring that the concept of fairness is adhered to the utmost diligence. Maintaining
employee morale, minimising the impact of bias, and discouraging sexism and other forms of
discrimination in the workplace are all important reasons why businesses should be fair in their
recruiting and remuneration practises.
Transparency
Lastly, any incentive plan should conform to the concept of transparency. This not only allows
employers to get insight into the money they give, but also the functioning of any reward system
that may be in place. In addition, transparency may aid companies and employees in putting to
rest any concerns about unfair treatment, so eliminating wage discrimination claims.
Figure 1 Principles of Reward
Leia Technologies might use an effective compensation approach to instil the culture's values
and standards in new recruits and retain them among long-term workers. Leia Technologies
wants long-term workers to share its values and standards. The incentive system acts as a
component of acculturation and control since participants are required to adhere to established
values and ideas. If researchers could understand the underlying principles that govern incentive
cultures, they would know more about company similarities and differences.
If the incentive system is well-managed, it may improve performance by increasing cooperation,
minimising employee displeasure, enhancing morale, and decreasing service running costs.
These are some possible impacts. The previous paragraph described all implications. Leia Firm
may provide monetary incentives to employees who obtain information that may boost profits
since it can connect the data with the proper business. As a result, the corporation may exchange
jobs, cross-train personnel, and form self-governing employee teams. Few firms acknowledge
FairnessConsistencyEquityTransparency

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great performance with financial incentives or commemorative plaques for loyal staff who have
contributed to the company's long-term success. Since recognising employees' successes
promotes their loyalty, the company does so.

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AC 1.2: How Reward Policy Initiatives and Practices Implemented
Managers can implement reward policy initiatives and practices with the help of various methods
such as; employee survey, informing the team, and asking for feedback from employees
regarding the rewards.
Figure 2 Reward Policies and Practices Implementation
Survey can be viewedas method for implementing a reward initiative and policy among the team.
In addition, managers may build a reward policy or practise by asking workers to take a survey
with predefined award possibilities or by leaving the survey open to recommendations. Either
way, the managers can use the results of the survey to develop a reward policy or practise. It is
easier for workers to share their ideas when they are able to do so anonymously, as in online
surveys. If managers want to make the survey more convenient for the team members, they may
want to consider giving it to them in an online format. It is possible that managers may find it
advantageous to utilise online surveys as a quick and easy technique for gathering responses and
assessing which ideas resonate the most with their workforce.
Secondly, managers can implement a reward policy and practice by informing the team by
organizing a meeting to go through the programme in person if the team works in the same
building. It is acceptable to send an email that provides a description of the program's operational
procedures; however, employees will probably benefit more from learning about the system in a
setting where they can ask questions and acquire additional information about the system and
how they may earn rewards. Include a schedule for the implementation as well as an explanation
of the incentive structure.
Lastly, managers can solicit the feedback of workers after the system has been operational for a
certain period of time, such as one month or three months, so that they can more accurately
gauge the level of satisfaction that workers feel while implementing reward policies and
practices. For example, managers could ask for their feedback after the system has been in place
EmployeeSurveyInformingTeamAskingforFeedback

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for one month. It will be essential to the development of the experience that the participants
provide feedback about the awards and the programme in its current state.

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AC 1.3: Impact of People and Organisational Performance on Approach to Reward
The findings of Sihombing et al. (2018) indicated that there is a possibility that the incentive
package will affect people's performance. Any business that is serious about improving the
performance of its workers and achieving its objectives should unquestionably put into action
various incentive programmes. This is an essential must. Research emanating from a broad range
of academic subfields has converged on the conclusion that monetary incentives lead to
improvements in employee performance. On the other hand, the success of a firm would be
significantly hindered if its workers were not valued and rewarded, which would have an adverse
effect on the performance of the organisation. An inefficient incentive system may operate as a
demotivation for employees, which may result in decreased production, internal arguments,
absenteeism, high turnover, a lack of commitment and loyalty, tardiness, and the airing of
complaints. A productive reward programme has the potential to be an excellent motivator for
employees. In order for a company to be successful in both recruiting and retaining skilled
workers, it must have a compensation strategy that has been well considered.
Another study by Armstrong, and Brown (2017) stated that incentive and reward programmes
led to higher performance outcomes. In spite of the fact that incentive systems are of critical
importance to management, throughout the vast majority of human history, there has been
neither formalisation nor the establishment of clearly defined rules that govern how incentive
systems work (Brink, and Myhr, 2014). The application of Herzberg's theory of motivation,
which led to its development in the first place, resulted in the widespread acceptance of incentive
programmes that are based on high levels of performance. These incentive programmes have
been developed with the objective of "recruiting and keeping great personnel for competitive
advantage," which is their declared goal as the motivation for their creation. A kind of incentive
that is presented in the workplace is an incentive for employees, and the hope is that better levels
of job satisfaction will result in higher levels of performance. The phrase "reward system" refers
to all of the financial and non-financial benefits that an employee gets from their organisation,
regardless of whether or not such perks are paid for. These advantages may be either monetary or
non-monetary in nature. Brown(2014) asserted that one of the most important tools for achieving
optimal levels of employee performance is a well-designed incentives programme. These
frameworks provide provisions for any and all forms of salary and compensation that may be
received by an employee.

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AC 1.4: Different Types of Benefits Offered by Organisations and The Merits of Each
As noted by Calnan(2015), there are several distinct kinds of advantages provided by a company
or organisation. Employees are encouraged to retain or improve upon their current levels of merit
by receiving a variety of benefits, each of which gives a distinct advantage. Medical, disability,
and retirement benefits are in first, second, and third place, respectively, among the most
prevalent kinds of compensation received. If employees have health insurance, they may face
deduction on their monthly premium payments, which might be several hundred dollars
depending on the plan. This is one of the benefits of having health insurance. This is a
considerable merit from a financial standpoint. As a result, the bonuses need to be taken into
consideration when calculating the overall income. It is standard practise for companies to foot
the whole price for their employees' health insurance coverage or a sizeable portion of the
expenditures associated with such coverage. It is customary for employers to require their
employees to pay a recurring monthly contribution to the total amount. In the event that an
employee has an injury that prevents them from returning to work due to a sickness or an
accident, disability insurance may be able to assist them in recouping some or all of the income
that they have lost as a result of the injury.
One of the most important advantages of having disability insurance is that it enables employers
to offer financial assistance to their employees in the event that they become temporarily or
permanently unable to perform their jobs as a result of an illness, accident, or disability. This is
one of the most significant benefits of having disability insurance. For example, a person who
suffers an injury to their spinal cord may be eligible for long-term disability payments that
continue all the way up until they reach the age of retirement. These benefits may continue for as
long as the individual is disabled. Last but not least, retirement benefits are financial resources
that will be utilised to continue paying retirees a salary or pension after they have left their
previous positions in the working. In preparation for their return to the workforce, retirees put
aside these assets. When calculating the overall value of the benefit, it is necessary to take into
consideration not only the yearly salary of the worker but also the length of time that they have
been working by the firm in question. Regarding these programmes, the corporation is the one
who will be responsible for any possible loss on investment.

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AC 1.5: Extrinsic and Intrinsic Rewards to Improve Employee Contribution and Sustained
Organisational Performance
The reward system management is divided into two types of rewards namely; extrinsic and
intrinsic rewards for improving employees’ contribution and sustaining their performances.
Extrinsic rewards are defined as tangible rewards that employees can see and use such as; car,
bonus, gift vouchers, and payments. On the other side, intrinsic rewards are intangible rewards
that employees can only sense such as motivation, appreciation, and encouragement.When it
comes to encouraging workers to contribute to the overall success of the business, managers
often resort to a combination of both intrinsic and extrinsic benefits in order to achieve their
desired results. When it comes to increasing levels of work satisfaction, the great majority of
writers were of the view that intrinsic incentives are much more essential than extrinsic rewards,
which in turn may raise the performance of a corporation. Whether or not one of these incentives
might produce problems that are damaging to the person and inhibit performance is based on the
processes that organisations have put in place to effectively manage the environment in which
they operate. According toFarrand(2016), the thing that motivates workers the most is their
contribution to the organisation. This is as a result of the fact that exceptional performance by an
employee results in benefits for the organisation. Intrinsic rewards are more concerned with the
employee's sense of purpose and contribution to the organisation, whereas extrinsic incentives
are more concerned with the employee's actions and performance toward a goal. Both types of
rewards are intended to motivate workers to work harder and achieve more. Both kinds of
awards have the purpose of incentivizing workers to put in more effort and accomplish more in
their jobs.
In addition, Giancola(2014) stated that praise and recognition are the two types of intrinsic
reward that are the most successful in boosting organisational performance. According to
Johnson, McMullen, and Royal(2015), "intrinsic reward is a tool that pushes individuals to
achieve expectations" (intrinsic rewards are tools that inspire employees). Intrinsic rewards are
"personally experienced psychological incentives by an employee." On the other hand, Godar,
and Frey(2014) stated that in order to keep star performers, an effective extrinsic incentive
structure must be in place, with incentives that are appropriate to individuals' levels of
performance. This is necessary in order to keep star performers. The previous conversation and
examples have shed light on significant intriguing truths, one of which being the reality that the

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vast majority of intrinsic benefits are qualitative in nature and cannot be measured. This includes
things like improved respect, recognition, and other similar things.

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Section 2 – Benchmarking Data to Inform Reward Approaches
AC 2.1: Assess the business context of the reward environment
According to Johnson, McMullen, and Royal (2015), business context can be divided into two
aspects such as internal and external features that shape a reward system. Internal features
include organisational culture, employers, and structure. Whereas, external features include
labour market, regional price levels, and economic environment. According to Armstrong
(2010), the rewardsystemof a company is largely controlled by the elements of the company that
are located within the company itself, i.e. internal features. These internal features include the
company's culture, business or industry, work environment, workers, business strategy, and
political and social climate. The relative emphasis that the firm places on these concerns will
play a role in determining the nature of its incentive system. A distinct assortment of these
qualities will be shown by each individual company. Secondly, incentive structures may be
influenced by a variety of external factors, including globalisation, market remuneration rates,
the economy, social and regulatory elements, and labour unions (2010). It is possible that it will
be required to rethink the remuneration structure that is already in place inside companies in
order to ensure that employees will be motivated to maintain their current levels of performance
and productivity.

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AC 2.2: Appropriate ways to gather benchmarking data and measured to develop insight
Benchmarking data is divided into two categories namely; internal benchmarking, and external
benchmarking to develop insights.
Following are the two appropriate ways gather benchmarking data and measures to develop
insights:
Employee Survey
Employee surveys are one of the most appropriate ways to gather benchmark data. The majority
of businesses make an attempt to improve these indicators over time and conduct comparative
employee satisfaction surveys on a regular basis in order to evaluate the effectiveness of different
activities meant to promote morale and overall pleasure at work. Another kind of internal
benchmarking used to uncover outliers who might benefit from further support or special
recognition is to compare the staff turnover rates of each division or management level against
one another.
Industry Analysis
The performance of one organisation may be compared to that of others by using this standard as
a benchmark. It is a reliable indicator that can tell managers if a firm is functioning at a level that
is above or at the average for its sector. When developing the human resources plan for the next
year, these guiding concepts are very helpful. This cutting-edge approach helps managers
tounderstandhowdepartments,teams,andgroupswithinanorganizationcomparetoeachother.tounderstandwhichteamsarethemostengagedInternalBenchmarkinghowyourorganizationstacksupagainstotherorganizations.providesgoodcontextfortheindustrynormExternalBenchmarking

Reward and Performance 17
develop favourable positions in the many marketplaces in which they compete so that they may
maximise their profits.
AC2.3: Organisational reward packages and approaches based on insight
According to Nscpolteksby.ac.id (2022), there are different grading structures of rewards
namely; narrow-graded structure, broad-branded, and job family. In narrow-graded structure, the
relative significance of the positions is comparable. In bigger, more established organisations,
especially those in the public sector, when 10 or more grades exist, there may be as many as 18
unique job levels. Possible grading criteria include a point system based on work performance
assessment. If this were the case, any work whose evaluation score came within the range
corresponding to a certain grade would get that grade.
Figure 3 Narrow-Graded Structure
Unlike narrow-graded structures, broad-graded structures generally have between six and nine
levels. They may take the form of "reference points" or "market anchors," which both indicate
the rate of pay for a fully competent worker in the grade and are connected to market rates in line
with the "market attitude" of the relevant administration. As with narrow-graded structures, the
grades and pay ranges are developed and maintained in the same manner, with the exception that
bigger grades often need the adoption of procedures to manage progress so that employees do
not automatically surpass the grade's maximum pay limit.

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Figure 4 Broad-graded Structure
In conclusion, broad-banded structures may reduce multi-graded systems to between four and
five "bands." A broad-banded structure may have up to five bands, with a typical variance
between bands of 70 to 100 percent. The bands lacked structure, and unlike a conventional
grading system, compensation was handled with a great deal of flexibility. In addition, market
pricing was given a great deal more importance, since it effectively determined the spot prices
for work inside the ranges.
Figure 5Narrow and broad-banded structures
AC 2.4: legislative requirements that impact reward practice
As noted inFell, and Dyban (2017), the UK legislation provides clear directions for employers to
ensure that employees are given equal rewards and pay. For instance, the Equal Pay Act 2010
states that if the employer's decision to pay a worker with fewer years of service a lower income
or to provide them with less benefits does not constitute direct age discrimination, the business is
not obligated to offer an explanation for the decision. If the employee in question got the benefit
at issue during their employment that was less than five years long, the employer has the option
of pleading the exemption as an absolute defence. If an employee has been with the company for
more than five years, the employer must demonstrate beyond a reasonable doubt that taking into

Reward and Performance 19
account the employee's length of service when determining remuneration or other benefits for the
employee is absolutely necessary to the operation of the business. It is possible that he may try to
inspire and encourage his workers by providing incentives such as increased salary or better
working conditions, or he may choose to award some or all of his employees for their many
years of service.For example, before an employee may become eligible to participate in a
benefits programme or advance one level on the pay scale, several companies demand that they
have worked for the company for a certain minimum number of years. There is also the
possibility of a compensation system in which an employee would have to work for a certain
period of time before being eligible for an employee benefits plan. This would be one kind of
compensation system. The pay spine or the length of time that is necessary to acquire the benefit
must not be unfair and the maximum number of years that it takes to get the benefit must not be
more than five.

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References
Armstrong, M. and Brown, D. 2017. Job evaluation versus market pricing: competing or
combining methods of pay determination? Compensation and Benefits Review. Vol 49, No 3,
June. pp153-160.
Brink, S. and Myhr, M.E. 2014. Assessing competitive pay for executives in a global labor
market. Benefits and Compensation International. Vol 44, No 1, July/August. pp15-18.
Brown, D. 2014. The future of reward management: from total reward strategies to smart
rewards. Compensation and Benefits Review. Vol 46, No 3, May/June. pp147-151.
Calnan, M.M. 2015. Uncovering total reward. Employee Benefits. June. pp42-43.
Farrand, L. 2016. Put the scores up on the board: a total reward strategy will enable employees to
see the full value of their package. Employee Benefits. May. pp18-19.
Fell, E.V. and Dyban, M., 2017. Against discrimination: equality act 2010 (UK). The European
Proceedings of Social & Behavioural Sciences (EpSBS). Vol. 19: Lifelong Wellbeing in the
World (WELLSO 2016).—Nicosia, 2017., 192016, pp.188-194.
Giancola, F. 2014. What the research says about the effects of open pay policies on employees’
pay satisfaction and job performance. Compensation and Benefits Review. Vol 46, No 3,
May/June. pp161-168.
Godar, P. and Frey, R. 2014. 4 ways to transform your rewards strategy. Workspan. Vol 57, No
7, July. pp44-47.
Hu, B., Leopold-Wildburger, U. and Strohhecker, J., 2017. Strategy map concepts in a balanced
scorecard cockpit improve performance. European Journal of Operational Research, 258(2),
pp.664-676.
Johnson, P., McMullen, T. and Royal, M. 2015. Job evaluation: relevant, robust and
reimagined. Workspan. Vol 58, No 9, September. pp26-30, 32.
Jones, M., Makepeace, G. and Wass, V. 2018. The UK gender pay gap 1997–2015: what Is the
role of the public sector? Industrial Relations. Vol. 57 No 2, April. pp296-319. Available
at: https://onlinelibrary.wiley.com/doi/10.1111/irel.12208
Nscpolteksby.ac.id. 2022. Grade and pay structures Available at:
https://nscpolteksby.ac.id/ebook/files/Ebook/Business%20Administration/Human%20Resource
%20Management%20Practice%2010th%20(2006)/46%20-%20Grade%20and%20pay
%20structures.pdf (Accessed: 31 August 2022).

Reward and Performance 21
Sihombing, S., Astuti, E.S., Al Musadieq, M., Hamied, D. and Rahardjo, K., 2018. The effect of
servant leadership on rewards, organizational culture and its implication for employee’s
performance. International Journal of Law and Management.

Reward and Performance 22
Task Two – Blog Article
Title: “Supporting Line Managers to Make Reward Decisions - The Role of People Professionals
AC: 3.1 Different Approaches to Performance Management
The most fundamental aspects of performance management are among the needs for
management that are absolutely necessary for every organisation. The efficiency with which a
firm manages its employees' performance has a direct consequence on the amount of
advancement it is able to make in the particular economic area in which it operates. In this entry
of our company blog, we investigate a variety of impressive and actionable strategies for more
effectively controlling the performance of our staff members. These methods and procedures
focus on aspects of today's workplace that are generally acknowledged to be of the utmost
significance by a large majority of people. It is necessary to take part in a significant amount of
spectacular endeavours before one can hope to achieve really amazing success. The methods that
are being employed here are intended to make exactly this point in the audience's mind.
1. Reward exemplary performance
If workers believe their efforts are being recognised, they will be more motivated to explore their
professional limits and take calculated risks. Furthermore, when employees see their co-workers
earning prizes for exceptional productivity, they are motivated to work harder. Like everyone
else, they presumably fantasise of being the ideal employee in the eyes of their bosses. Having
programmes for physical health, mental health, telemedicine, and financial stability in place, as
well as demonstrating gratitude via things like paid time off and complementary food and drink,
are all indications of how thankful and kind these organisations are. This will provide workers a
compelling incentive to match their objectives with those of the organisation (Cotton, 2019).
Therefore, it is essential to express gratitude anytime an employee's accomplishments might
serve as an example for others. Everyone should be informed that their exceptional efforts will
be acknowledged. If this does not occur, disengagement in the job is just a matter of time.
2. Introduce mentorship programs in the workplace
To provide a fantastic performance, one must continually endeavour to bridge knowledge gaps
and strengthen inferior talents. Only then can one hope to achieve their full potential. Companies
who are able to successfully manage the learning of their workers within the framework of
performance management are in an excellent position to achieve commercial success.
Mentorship programmes in the workplace stand out as an innovative, outside-the-box method

Reward and Performance 23
that is more important than ever before for generating outstanding levels of performance (Cotton,
2019). You can undoubtedly learn something beneficial from them, and you can use that
knowledge to the development of some astute and strategic mentorship programmes in your own
companies by taking a page from their playbook. Your workforce has the opportunity to get
knowledge not just from you but also from other senior employees of the organisation if you
implement mentoring programmes. Participating in the education and development of your
workforce may be quite rewarding.
3. 360-Dregree Appraisal
An employee's performance may be evaluated using a process known as a 360-degree evaluation,
which takes into account all possible viewpoints. It comprises gathering the ideas and views of
one's peers, superiors, and subordinates in a way that is anonymous, and then using that
information to provide the recipient with feedback that is more thorough and relevant. Managers
and other company leaders can potentially gain a deeper understanding of their own capabilities
and limitations by taking part in 360-degree feedback surveys.
AC 3.2: role of people practices in supporting line managers to make consistent and
appropriate reward judgements
Line managers are the most effective communicators about the benefits of the rewards
programme your business offers to its employees. Line managers also play an important role in
the development of your firm's rewards plan. It is very necessary to provide line managers with
the resources they need in order for them to effectively communicate your incentive programme
to employees (nhsemployers.org, 2022). Your firm will reap the advantages of greater employee
engagement and retention, as well as the reinforcement of your fundamental organisational
values, if you take the time to explain the benefits package that you provide to your workers. The
responses make it very clear that businesses need further aid. In addition to providing training on
management and having difficult conversations, you should also give advice on how to
successfully convey your incentive offer to personnel.
Managers who are directly responsible for their employees' actions are in the greatest position to
identify stress and other issues related to mental health. To ensure that workers get a positive
experience at their place of employment, line managers need to be provided with support and
made aware of the obligation that falls on their shoulders to look out for the health and wellbeing
of their workforce. If an employee believes that their job positively contributes to their health

Reward and Performance 24
and happiness at work, they are more likely to continue with the company and provide patients
with exceptional treatment.
AC 3.3: how line managers make reward judgements based on organisational approaches
to reward
When it comes to training, developing, and establishing goals for their employees, line managers
are in an excellent position to take the initiative themselves. They decide whether or not
employees should be rewarded for their performance and how that reward should be given.
Employees are more likely to trust the comments made by their immediate superiors than they
are the ones made by senior management or human resources (E-reward.co.uk, 2022). If a line
manager is doing a good job of their job, the decision that they make regarding rewards will have
a positive impact on the company's ability to keep current employees and acquire new ones,
while also being fair within the organisation and competitive in the market. This is because the
decision that the line manager makes regarding rewards will be fair within the organisation and
competitive in the market. Recognizing the most essential employees and paying them in ways
that will keep them motivated to perform at a high level is another step in this process. In this
step, the workers are rewarded in ways that will keep them engaged. In order to avoid the
possibility of a financial penalty being levied against the company, the decision should always be
made in accordance with the regulations that are currently in place in the country and should be
based on actual data obtained from the other companies in the industry or the wage surveys that
are being provided.

Reward and Performance 25
References
Cotton, C. 2019. Bonuses and incentives. Factsheet. London: Chartered Institute of Personnel
and Development. Available at: www.cipd.co.uk/knowledge/fundamentals/people/pay/bonuses-
factsheet
Cotton, C. 2019. Reward and pay. Factsheet. London: Chartered Institute of Personnel and
Development. Available at: www.cipd.co.uk/knowledge/fundamentals/people/pay/reward-
factsheet
E-reward.co.uk. 2022. Role of line managers in reward management. Available at:
https://www.e-reward.co.uk/news/role-of-line-managers-in-reward-management (Accessed: 27
August 2022).
Nhsemployers.org. 2022. The role of line managers and total reward. Available at:
https://www.nhsemployers.org/articles/role-line-managers-and-total-reward#:~:text=Offer
%20training%20on%20the%20importance,the%20evolving%20needs%20of%20staff.
(Accessed: 27 August 2022).