Human resource management practice I also available by michael armstrong

Part 

6

  Performance and Reward

364

FIgure 

26.1

 

A reward system

Financial rewards

Non-financial

rewards

Pay determination

Recognition

Base pay

management

Job design

Contingent pay

Opportunity to

develop

Employee benefits

and pensions

Work environment

Business strategy

Reward strategy

Total rewards

Performance

management

Performance

in  supporting  non-financial  rewards  and  may  be 

used  to  inform  performance  or  contribution  pay 

decisions. All these components combine to influence 

levels of performance.

Financial rewards

Financial  rewards  consist  of  job-based  pay,  which 

provides  pay  related  to  the  value  of  the  job,  and 

person-based  pay,  which  provides  rewards  that 

recognize  the  individual’s  contribution.  They  also 

include employee benefits and pensions and finan-

cial  recognition  schemes. The  management  of  job 

and person-based pay involves:

 

●

Pay determination – making decisions on the 

value of jobs by means of market pricing and 

job evaluation.

 

●

Base pay management – developing and 

operating pay structures that group jobs into 

grades, bands or levels in accordance with 

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