By Michael Armstrong
It is a sensible instruction manual designed to supply tips at the ways that may be followed in constructing and handling worker gift stategies, rules and strategies
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Additional resources for A Handbook of Employee Reward Management and Practice , Edition: 2nd
The aim of strategic reward is to create total reward processes that are based on beliefs about what the organization values and wants to achieve. It does this by aligning reward practices with both business goals and employee values. As Duncan Brown (2) emphasizes, the ‘alignment of your reward practices with employee values and needs is every bit as important as alignment with business goals, and critical to the realisation of the latter’. Strategic Reward 49 THE RATIONALE FOR STRATEGIC REWARD In the words of Duncan Brown (2), strategic reward ‘is ultimately a way of thinking that you can apply to any reward issue arising in your organization, to see how you can create value from it’.
Becoming an employer of choice starts with developing the image of the organization so that it is recognized as one that achieves results, delivers quality products and services, behaves ethically and provides good conditions of employment. Organizations with a clear vision and a set of integrated and enacted values are likely to project themselves as being rewarding to work for. DEVELOPING A TOTAL REWARD APPROACH The transactional and tangible elements of total reward (ﬁnancial rewards) are quite clear cut.
The company’s underlying thinking here is that the people strategy is not for the human resource function to own but is the responsibility of the whole organization, hence the title Organization and People Strategy. The employees’ point of view Reward management policies should take account of the aspirations, expectations and needs of employees as stakeholders in the organization. Consideration has also to be given to the needs or views of other stakeholders, especially owners in the private sector and governments, local authorities and trustees elsewhere.