INTRODUCTION TO REWARD
MANAGEMENT
This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Reward Management Practice, 3rd edition, as part of their course. For more academic resources and
other FREE material, please visit www.koganpage.com/resources and then click on Academic Resources.
REWARD MANAGEMENT DEFINED
Ian
Could you add one more like this but with a woman rather than a man?
Thanks
Michael
Reward management deals with
the strategies, policies and
processes required to ensure
that the contribution of people to
the organization is recognized
by both financial and nonfinancial means.
This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Reward Management Practice, 3rd edition, as part of their course. For more academic resources and
other FREE material, please visit www.koganpage.com/resources and then click on Academic Resources.
THE REWARD MANAGEMENT FRAMEWORK
Fundamental concepts:
• Resource-based view
• Human capital management
• HR process advantage
• Motivation theory
• Principal–agent theory
• The psychological contract
Primary aims:
• Support achievement of
business goals
• Develop performance culture
• Reward people fairly
Engage people:
• job design
• work system
• leadership
• reward
Value jobs:
• internally
equitable
• externally
competitive
Pay level concepts:
• Economic theories of
pay
• Principal–agent theory
• Human capital theory
• The effort bargain
• Tournament theory
• Equitable pay
Total reward
Financial rewards:
• Contingent pay
• Benefits
Non-financial rewards:
• Recognition
• Learning and
development
• Work environment
High-performance
work system
• Job evaluation
• Market rate analysis
• Grade and pay structure
Performance management
Manage rewards:
• Plan
• Evaluate
• Control
Strategic integrated reward:
• vertical integration –
with business strategy
• horizontal integration –
with other HR strategies
• internal integration –
of reward practices
Contextual factors:
• Internal: culture, sector,
technology, people, social
and political pressures
• External: globalization,
market pay, unions,
legislation
This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Reward Management Practice, 3rd edition, as part of their course. For more academic resources and
other FREE material, please visit www.koganpage.com/resources and then click on Academic Resources.
THE REWARD SYSTEM
Non-financial rewards
Recognition, responsibility,
achievement, growth
Market rate analysis
Grade and pay
structure
Job evaluation
Business
strategy
Reward
strategy
Base pay
Total
remuneration
Total reward
Contingent pay
Employee benefits
Allowances
Performance
management
This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Reward Management Practice, 3rd edition, as part of their course. For more academic resources and
other FREE material, please visit www.koganpage.com/resources and then click on Academic Resources.