Introduction to 5RMT Reward Management
Reward Management is a level 5 optional CIPD unit that has been developed with the sole purpose of teaching on reward strategies and policies. The module requires the learners to have adequate knowledge of reward data and its implications in the business decision-making process. Students of this unit will be equipped with theoretical and strategic knowledge of principles and perspectives relating to rewards in an organisation. Additionally, the learners will have an opportunity to assess the importance of rewards in an organisation and offer advice to managers on the best rewarding techniques and approaches to improving performance. An effective reward management system is critical in the positive performance of a given organisation.
As the term reward implies, reward management refers to the process through which monetary and non-monetary rewards are given to employees to align them to the organisational goals and objectives. The reward management system is essential for attracting prospective job applicants, retaining the most valuable employees, facilitating motivation among employees and meeting the legal requirements in a given workplace. In some organisations, reward management can give the company a competitive advantage. Rewards are categorized into two primary categories. The first category of rewards is known as extrinsic rewards such as salaries, bonuses and other incentives. The second is known as intrinsic rewards such as job satisfaction and simply well-being in the workplace. The unit will cover some critical elements of reward management and its application in human resource management.
The unit covers several lessons, all of which will be guided by the unit objectives. The objectives include:
- To define and illustrate understanding of reward in a business context and the use of reward intelligence.
- To discuss the primary reward principles and the implementation of policies and practices.
- To describe the role of line managers and managers in the rewarding decision-making process.
The unit requires students to conduct study research on the concept of reward in different settings such as public and private businesses, industrial sector, and labour force trends among others. This research marks the first lesson on reward intelligence. Students are further taught on how to analyse the impacts of both internal and external factors on the rewarding process. Some of the factors influencing reward management include collective bargaining agreement, expectancy, human capital and efficiency wage among others. Rewards in terms of earnings are mostly controlled by governments or by the collective bargaining document. Learners of this unit will be taught on how to gather reward intelligence from various sources. Knowledge is essential as it applies to existing organisations and businesses.
Various principles of reward such as fairness, intrinsic and extrinsic rewards are also going to be detailed in the lessons. Learners will discuss different reward principles and give relevant examples to enhance their understanding. The unit will give an explanation and different definition of terms that will be used in reward management. Additionally, policy initiatives that guide rewarding in business will be critically discussed. The policies are mostly formulated by the government, but each employer has to ensure that they are applied in the workplace. At the end of the lesson, students will explain different policy initiatives and their implementation in workplaces. Moreover, the unit is keen to cover the basic organisation practices that influence reward management. The practices include the development of budgets, effects of reward costs, market rates, boundaries and controls, financial metrics, impacts of rewards costs and performance-related pay.
The last lessons of the unit will cover the role of the human resource manager in reward management. Learners will understand the role of human resource manager in involving other line managers in the rewards decision-making process. The impacts of intrinsic and extrinsic rewards will also be evaluated through measurements, equity and intrinsic orientation. The link between motivation and results, behaviours and achievements will be compared to the role of rewards in given organisations. Conclusively, the unit covers all elements of fair payments, pay progression and rewards management. The unit is covered in a total of 60 hours split into 30 guided learning hours and 30 self-directed learning hours. The self-directed hours are inclusive of the time spent preparing for assessments.
The unit is suitable for:
- All individuals who are interested in pursuing a career in human resource management and development.
- All human resource management and development practitioners who wish to improve their knowledge and skills in the area of reward management are also eligible for the unit.
- The people in charge of implementing HR policies in wider organisational environments and contexts can pursue the module to become more effective in their duties.
- Anybody who is interested in understanding the reward management process in the organisational and environmental context can pursue the unit.
Expected learning outcome
At the end of the unit, students are expected to:
- Demonstrate a clear understanding of the organisational context for reward and the use of reward intelligence
- Explain the primary reward principles and the implementation of practices and policies.
- Illustrate a clear understanding of the duties and responsibilities of managers and line managers in the rewarding process.
Summary and Assessment
The unit reward management is essential for all HR practitioners and those pursuing a career in human resource management and development. Students gain an understanding of the reward concept and its importance in organisational performance. At the end of the lessons, learners are assessed on their understanding of the unit using a 4000 words assignment. It is important to understand that the assessment seeks to tests the students’ analytical skills and critical thing. Learners will be expected to relate academic concepts, theories and professional practices to organisational operations. The answers should demonstrate an understanding of the primary concepts and illustrated using viable examples. Therefore learners should use their theoretical knowledge as learnt in class, and practical skills to answer the questions. All referenced sources should be cited and listed in the bibliography. The references can be obtained during personal studies or when the students will be working on their assignments. They will be sourced from books, journals, online articles, and websites among other learning resources.