Human resource management practice I also available by michael armstrong

1 

Performance: rewards are developed that reflect 

team and individual achievements.

2 

Market: rewards reflect the market in which  

an employee is based, whether that be 

geographical or functional, and compare 

favourably with those of competitors.

3 

Communication: Diageo aims to explain to 

‘everyone the components and value of their 

reward package, the criteria that affect it,  

and how they can influence it’.

4 

Effectiveness: the company seeks ‘best practice’ 

and ensures its benefits programmes ‘remain 

effective for the business and our employees’.

Tesco

 

●

We will provide an innovative reward package that 

is valued by our staff and communicated brilliantly 

to reinforce the benefits of working  

for Tesco.

 

●

Reward investment will be linked to company 

performance so that staff share in the success  

they create and, by going the extra mile, receive 

above average reward compared to local 

competitors.

 

●

All parts of the total reward investment will  

add value to the business and reinforce our core 

purpose, goals and values.

reward policies, practices and processes. The strategy 

is  based  on  an  understanding  of  the  needs  of  the 

organization  and  its  employees  and  how  they  can 

best be satisfied.

Trevor  (2011:  8)  observed  that  strategic  re-

ward is:

... a means of enhancing company performance 

and securing competitive advantage, through the 

alignment of pay strategies, systems, practices and 

processes to the organizational strategy. As a 

management tool, pay is no longer purely a cost  

of hiring necessary labour, but a means of aligning 

a company’s unique and inimitable asset – their 

employees – to the strategic direction of the 

organization.

---