Human resource management practice I also available by michael armstrong

1 

business linkage;

2 

clarity and transparency;

3 

market competitiveness;

4 

performance differentiation;

5 

choice and flexibility;

6 

equal pay.

Broadly  speaking,  the  three  principal  elements  driving 

individual reward are:

1 

The individual’s performance and contribution in  

the role – what does it mean to have high individual 

performance?

2 

The competitiveness of the individual’s existing  

salary, together with the actual (and anticipated) 

salary movement in relevant local markets –  

how does salary align to the external market?

3 

The company’s business results and ability to pay – 

can the company afford to invest money in terms  

of additional reward?

Underpinning these pillars are the principles of clarity (a 

‘focus on roles’), equal pay and choice.

In a difficult economic environment DSG simplified its com-

plex mix of reward arrangements to establish a close align-

ment between rewards and the five components of a new 

business turnaround plan, primarily through the redesign 

of executive incentive plans. The change was designed to 

DSG International: aligning reward with the business plan

enhance the perception of line-of-sight between individual 

performance, group performance and reward. It illustrates 

the  vital  role  of  communications  to  explain  the  ‘why’  of 

reward change, what it means for the business and how 

each component of reward links to a business plan.

Total reward strategy at GlaxoSmithKline (GSK)

TotalReward, the name by which GSK refers to its approach 

to reward, consists of three elements:

 

●

total cash (base salary and bonus), plus long-term 

incentives for managers and executives;

 

●

lifestyle benefits (health care, employee assistance, 

family support, dental care);

 

●

savings choices (pension plan, ShareSave, 

ShareReward).

The complete package – the concept of which is based 

on  employees  understanding  the  total  value  of  all  the 

rewards they receive, not just the individual elements – 

is designed to attract, retain, motivate and develop the best 

talent. The proposition for employees is that TotalReward 

gives  them  the  opportunity  to  share  in  the  company’s 

success,  makes  it  easier  to  balance  home  and  working 

life, and helps them to take care of themselves and their 

families.