Managing Rewards Flashcards
(28 cards)
What are the objectives of reward systems?
Support the organization by designing policies aligned with organizational strategies and goals, attract and retain employees, motivate employees to perform effectively, integrate with other HR policies, and comply with legislation.
What are the components of the reward package?
The reward package includes monetary rewards, non-monetary rewards, and benefits.
How does money act as a motivator according to Rynes et al. (2004)?
Pay is an important motivator if there is performance-related pay, PRP is paid to people on low wages, and employees assess that they are being fairly paid in comparison to their colleagues.
What are the forms of performance-related pay?
Merit pay, piecework, commission, bonuses, team-based pay, profit-sharing schemes, employee share ownership plans (ESOPs), and gain-sharing schemes.
What are some criticisms of performance-related pay (PRP)?
Individuals are motivated differently, pay can be de-motivating, it may only reward the best performers, and it can increase responsibility for line management in pay decisions.
What is the concept of a fair day’s work for a fair day’s pay?
It was a guiding principle on how employees were rewarded for their efforts and commitment at work.
How has reward management evolved?
Reward management is now significantly more complex.
What is the role of the reward system in attracting applicants?
The reward system is used to attract the quality of applicants required to drive organizational performance.
How does the reward system retain employees?
It retains those employees who are contributing to organizational performance.
What is merit pay?
Merit pay rewards higher performing employees with additional pay linked to a performance appraisal conducted by a supervisor or line manager.
What is piecework?
Piecework is a payment given for each unit of production or ‘piece’ produced based on a standard developed to reflect the units of output a worker can complete per period of time.
What is commission?
Commission is where a percentage of sales are generally paid in addition to the base wage.
What are bonuses?
Bonuses can be paid to individuals, teams or divisions in return for achieving predetermined performance targets.
What is team-based pay?
Team-based pay is a payment given to members of a formally established team linked to their performance.
What are profit-sharing schemes?
Profit-sharing schemes are based on organizational performance and enable employees to share in the prosperity and success of the business.
What are employee share ownership plans (ESOPs)?
ESOPs are legally established plans used by companies to distribute shares to employees.
What are gain-sharing schemes?
Gain-sharing schemes operate where companies attempt to accrue savings by changing work practices.
What are some criticisms of PRP related to line managers?
Increased responsibility for line management in pay decisions, lack of skills in feedback or coaching, lack of transparency in appraisal and pay link.
What are indirect pay benefits?
Indirect pay benefits include health insurance, child care, provision of a company car.
What are non-financial rewards?
Non-financial rewards include job security, career development, recognition policies and practices, work-life balance policies.
What is pay secrecy?
Pay secrecy policies prevent workers from discussing wages and salaries and can lead to gender and ethnic pay gaps.
What is the gender pay gap in the EU and Ireland?
The gender pay gap is still at 13% in both the EU and Ireland as of 2023.
What are some reasons for the gender pay gap?
Reasons include breaks in career or part-time work due to childbearing, decisions favoring family life, gender differences in ability to negotiate pay.
What does the Gender Pay Gap Information Act 2021 require?
Organizations in Ireland with over 250 employees are required to report the gender pay gap.
