Strategic Reward Management: An Analysis of Apple Inc.'s Practices

This report offers a detailed analysis of Apple Inc.'s reward management system. It begins with an introduction to the topic, followed by a SWOT analysis of the company, examining its strengths, weaknesses, opportunities, and threats. The report then explores the impact of various business drivers, providing examples to illustrate key points. The core of the analysis focuses on the principles of total rewards, emphasizing equity, fairness, consistency, and transparency. It assesses both extrinsic and intrinsic contributions to rewards, along with the implementation of reward policies. Finally, the report examines the role of line managers in contributing to reward decision-making. The report aims to provide a comprehensive understanding of Apple Inc.'s approach to reward management, offering insights into its strategies and practices.

Reward Management

Table of Contents
Introduction......................................................................................................................................2
1.1....................................................................................................................................................2
SWOT analysis................................................................................................................................2
1.2....................................................................................................................................................4
Impact of business drivers...............................................................................................................4
Examples..........................................................................................................................................5
2.1....................................................................................................................................................5
Principle of total reward & its importance......................................................................................5
Importance of total rewards approach.............................................................................................6
Benefits of encompassing cutting edge training..............................................................................6
Flexible working with traditional pay..............................................................................................6
2.2....................................................................................................................................................7
Significance:....................................................................................................................................7
Equity...............................................................................................................................................7
Fairness............................................................................................................................................7
Consistency......................................................................................................................................7
Transparency....................................................................................................................................7
3.2....................................................................................................................................................8
Assessment of extrinsic contribution and reward............................................................................8
2.3....................................................................................................................................................8
Implementation of reward policy.....................................................................................................8
3.1....................................................................................................................................................9
Different ways in which line managers contribute to reward decision making..............................9
References......................................................................................................................................10

Introduction
In this present paper, we will discuss the reward system of Apple Inc. The paper also describes
the reward environment and key perspective by using the SWOT analysis tool for analyzing the
internal and external environment then the impact of business drivers is analyzed with the given
an example. In the second section, the principle of total rewards is evaluated, and the importance
of equity, fairness, transparency and is explained, then the contribution of intrinsic and extrinsic
awards are analyzed with the implementation system of reward policy initiatives in the
organization. In the third section, different ways are explained in which the line manager can
contribute towards the decision making of rewards.
The reward management is defined as the development and implementation of strategies in order
to reward the employees with the equitable, fair and consistency with the organizational values.
It consists of an examination and controlling of employees compensation, benefits and
remuneration (Armstrong et al., 2007).
1.1
SWOT analysis
The Apple has multiple features and unique brand image in the eyes of the customers. The
company is known for its innovation and operating system which acts as an advantage for the
company. The strength, weakness, opportunities and threats are explained below:
Strengths in SWOT analysis of Apple iPhone

Brand equity – It is one of the best companies which is known for its brand promise and the
previous days of McIntosh computers.
Innovation – Apple is known for innovation from iPod to iPhone. The innovated technology is
the strength of the company.
Consumer loyalty – The Company can proudly announce its loyalty of customers and the brand
loyalty of the company can be compared with the brand loyalty of Harley-Davidson. Similarly,
the HOGS are famous for its furious Harley enthusiast so as the iPhones owners.
Amazing software and IOS – The operating system of Apple is providing high speed and
flexible which provides a respectable mobile platform for the users. The user interface of the
phone is very comfortable due to which the customers get addicted from its usage.
Wide developer support / control in the hands of users – The developer network of Apple
comes before Google play, and it provides lakhs of applications to the users by its developer
network. It is the strongest online community till today.
Design consistency – The mobile phones are consistent in the looks, and the company is
providing innovation on the phone with the similar which helps to attract a large number of
consumers (Tar et al., 2013).
Weakness in SWOT analysis of Apple iPhone
High price – The Company is providing distinct and innovative technology among the mobile
industry but still the prices are very high as compared to the competitors within the same
industry.

Restrictions on the phone – The consumers are expecting more features in the contest of the
price, but the product is not having the capability to the extent the memory, the battery is non-
removable, and there is no Bluetooth due to which product is not widely accepted by the
consumers.
Opportunities in SWOT analysis of Apple iPhone
Market potential of smartphones – The market of smartphones is at the high rate due to which
the company has opportunity to attract a large number of potential consumers through innovating
the product with the average pricing strategy.
Continued technological advancement – The company is providing excellent innovation in its
products from the past five-year due to which the expectations from the company is increased so
the company can attract a large number of consumers from maintaining the brand image with the
continued improvement in the products.
Accessories – The market of accessories is never ending due to which the company can generate
higher profit by providing accessories of apple in the market. The accessories have a high margin
which enables to generate high profit within the particular time period.
Threats in SWOT analysis of Apple iPhone
Android – The Android is the only threat which impacts on the customer base and sales of
Apple because the android is free for all due to which a large number of customers prefer
android operating system. The Google has taken a large number of customer's attention due to its
mobile operating system (Rachet et al., 2014).

Samsung – Another biggest threat for the company is Samsung because the company is
providing high storage with all the size and shapes. The Samsung has revealed that the android
phones are very powerful and the camera is also very better. Thus it is one of the major threat to
the company.
1.2
Impact of business drivers
Alignment – The organizational objectives and goals of the company need to be communicated
with the human resource in order to align the goals and purpose of each department with the
company. The awareness among the employees enables to align the employees towards the
strategic goals and objectives which motivate them to work in an effective manner towards the
achievement of mission and vision of the company and it helps in taking the decision of reward
system(Armstrong et al., 1993).
Efficiency – The efficiency is achieved through the recruiting the right people for the right job
which results into achieving the organizational goals with the individuals. It impacts on the
reward decision by judging the individual contribution towards goals of the company.
Therefore, organizations that excel are the ones who invest the most on employees and quality
talent as they will be the most valuable to the organization in the long run.
Scalability – Businesses need to be flexible in order to shift their strategies around according to
market trends. When organisations are scalable, they rely on their effective systems to locate and

deploy resources as and when needed. In an aggressive business market, reallocating internal
resources efficiently is also categorized as scalability.
Productivity – The productivity is defined as the gap between the desire and achievement of the
company within the particular period of time. The employees are responsible for achieving the
goals and objectives of the company. The performance of human resource is evaluated which
helps in the decision making of reward system.
Sustainability – The goals of the company is to achieve the strategic goals and objectives of the
company but the unplanned losses which are beard by the organization not being able to sustain
the key talent so the company must develop the system, in order to control and manage the
turnover of employees. The sustainable performance of the employees towards the organizational
goals helps to take a decision regarding the rewards system.
Governance –
The governance is defined as the process which is used to guarantee the employee inclusion in
the organizational opportunities and it prevents the employee to gain from the unethical, unsafe
and unfair behaviour of the employees. The good corporate governance helps to watch the legal
changes in the rules and obligations of the company. So the governance helps to determine the
reward system decision through checking the behaviour of employees.
Examples
The reward intelligence can be collected from the line manager, business data, human resource,
performance records and others.

2.1
Principle of total reward & its importance
Following is the evaluation of total rewards principles:
1. Develop a positive and natural experience of reward
The communication must be done by the leaders in order to educate the people regarding
the changing rewards and advantage to the company as well as the workforce. It involves
people in the change process by clearing the understanding and commitment towards the
organizational goals and objectives.
2. Develop win-win situation by aligning rewards with business goals
The principle of total reward is to create the win-win situation which motivates the
employee to work towards the vision and mission of the company. This principal clears
the direction of the company which enables the employees to add value to an
organization, and the value must be acknowledged with the rewards which motivate the
employees to work in an efficient and effective manner.
3. Extension of people line of sight
The third principle of total reward is to extend the line of sight of people by engaging the
employee in understanding their roles and responsibilities which help to motivate the
employee by understanding their importance in the organizational success. The principal
acknowledges the stakeholders towards the vision of the company. For example, Apple

explains the role of employees in innovation which is directed towards the organizational
goals and objectives (Armstrong et al., 2014).
4. Reward integration
The fourth principal is to consider all the perspective of total reward in order to provide
effective rewards. The customised deal must be developed from the total rewards. The
principle states that all the reward tools must be considered at the time of determining the
reward for people.
5. Reward ongoing value of individual with base pay
The base pay must be used in order to reward the individual within the particular time
period. The three dimensions include the competencies required by the company and
used by an individual in order to generate the results, the performance of individual
within the particular period of time with the contribution in the team and the value of
individual in relation to the labour market.
6. Rewarding of results with variable pay
The sixth principle is to build stakeholdership and the win-win situation in order to meet
the expectations of the shareholder by maximizing their shares through rewarding the
workforce in order to achieve the organizational goals and objectives within the particular
time period. This principal states that the variable pay in terms of equity and cash helps to
motivate the employees which enable to achieve the vision of the company.
The principles of reward system play an important role in developing the reward strategy by help
in creating an effective strategy which enables to achieve the organizational goals and objectives
by rewarding the employees in an appropriate manner.

Importance of total rewards approach
The approach of total reward explains the reward strategy by bringing the investment done by
the employee for its workforce and with everything employees value in the working
environment, for example, flexible working hours, various career opportunities and others
(Bonache et al., 2015). It goes beyond the pay of the employee by highlighting the benefits with
the base pay within the particular time period that underpins the organizational objectives and
culture. It explains the range of monetary and non-monetary benefits which enhance the
company as the great place to work by the employees.
Benefits of encompassing cutting edge training
The cutting edge training is provided by the employer to the employees who enable to provide
efficiency to work in an effective manner. It is the part of total reward which enhances the
employees by providing specialization for working, and it acts as a benefit which increases the
knowledge and capabilities to work in an appropriate manner.
Flexible working with traditional pay
The flexibility in the working hours is an additional benefit which motivates the employee, and it
is the total reward approach. It is the benefit which shows that the company has the great
working environment and it increase the retention rate of the employees within the particular
time period.

2.2
Significance:
Equity
The equity is defined as the sense of fundamental fairness in order to provide equal and fair
compensation to the employees within the particular time period. The perception of employees is
that they should be equally paid so the employer must pay equally in order to avoid the sense of
inequality among the employees at the workplace. There should be equal pay for the equal roles
and responsibilities in order to promote the equality among the employees. It is very important in
reward system because the equal compensation must be awarded in order to motivate the
employee to work in an effective manner. It promotes equality on the policies and practices of
reward system.
Fairness
The fairness in the reward system is very necessary which enables to retain the employees in an
organization and helps to build the relationship of trust between the employer and employees
(Massi et al., 2015). The reward is given on the basis of extra efforts by the employees towards
the achievement of organizational goals so it should be fairly done in order to retain and motivate
the employee.

Consistency
The consistency in the reward system is very significant in order to motivate the employee
towards the achievement of organizational goals and objectives within the particular time
framework. It enables to maximise the shareholders profits by retaining the employees. The
fairness impacts on the reward system which pertains to anti-discrimination at the workplace.
Transparency
The transparency in reward system is very necessary which motivate the employee to work in an
effective manner by providing reward according to its performance. It also impacts on the
policies and practices of the reward system (Massi et al., 2015).
3.2
Assessment of extrinsic contribution and reward
The total rewards include extrinsic and intrinsic rewards which comprise of financial and non-
financial rewards that directly impacts on the motivation and specialization of work for the
employees towards the achievement of organizational goals and objectives within the particular
time period. The intangible rewards include the learning and development of skills with the work
experience which provides specialization in performing the roles and responsibilities which
enable to contribute towards the organizational success and achievement of vision and mission of
the company (Khan et al., 2013). The financial rewards include contingent pay, base pay and
employee benefits which motivate the employee to contribute towards the maximization of
revenue within the particular time period.