The board at GA Pensions has decided to undertake a review of its reward strategies across the whole company. It is aware that the way reward is currently being implemented is fragmen

Version 1- September 2022, the last moderation window for results for this

assessment brief is September 2024

5HR03

Reward for performance and

contribution

Learner Guidance

Assessment ID / CIPD_5HR03_22_01

Level 5 Associate Diploma in

▪ People Management

Level 5 Associate Diploma

PGB Edits Jan 2023

Remember the following points:

Task Format Word Count

1 Report Section 1 2340 – 2860 words

2 Report Section 2 1170 – 1430 words

Scenario

The board at GA Pensions has decided to undertake a review of its reward strategies across the

whole company. It is aware that the way reward is currently being implemented is fragmented and is

causing elements of dissatisfaction amongst employees which is affecting business as well as

employee performance outcomes. In your role as Reward Advisor, the board has asked you to

provide it with a report that gives it an understanding of the context and approaches to reward and

how these might influence a range of organisational and psychological factors. It also needs you to

clarify the role that people professionals have in supporting line managers to make reward decisions.

Task One –Report Section One

To complete the task, you should provide a written response to each of the points below, making

appropriate use of academic theory and practical examples to expand your response and illustrate

key points.

Complete the cover sheet

Include wet signature + date

Include word count

Clearly mark the AC for each

section

Understand the command verbs

for AC

Use workplace examples where

possible

Show wider reading with

Harvard Style references

Include all parts in ONE MS word

file

Don't exceed word count limit.

Level 5 Associate Diploma

PGB Edits Jan 2023

Assignment Question Tutor & Learner Guidance Explanation of the command verb Indicative content provided by CIPD

Evaluate the principles of reward and its importance to organisational culture and performance management. (AC 1.1)

There are four parts to answer:

1) describe the principles of

rewards.

This means the key rules or

features that underpin rewards.

2) evaluate these principles to

show how they either support

or hinder the organisation.

3) state how rewards are

important to the organisational

culture.

4) state how rewards are

important to performance

management

Evaluate: to give your own

conclusion on the reward principles.

The conclusion is reached by

evaluating the benefits and

challenges associated with this for

culture and performance

management.

Principles of reward: the total reward approach,

intrinsic and extrinsic rewards; fairness,

consistency and transparency, promoting a

culture of trust, balancing internal fairness with

external market rates; integrating reward with

business objectives; implementing reward

policies and practices; role of reward in good

work; related legislation and its application.

Importance to organisational culture and

performance management: reward strategies

that support the organisational culture and

values; recognising and rewarding

performance; stimulating performance by

rewarding for value created; engaging

employees to drive performance

Explain how policy initiatives and practices are implemented. (AC 1.2)

Thinking specifically about the

reward policy initiatives,

explain how these policies and

practices are implemented in an

organisation.

Tip: do not discuss how rewards

policy are DEVELOPED…. Make

sure you focus on how they are

IMPLEMENTED.

Explain: Write this in sufficient detail

with descriptions. It is not a short

bullet list.

Policy initiatives and practices: definitions of

fair, equitable and consistent; felt-fair principle;

challenges of providing external

competitiveness vs internal equality;

assimilation policies; protection policies; role of

line managers. Implementation processes

ranging from collaboration and involvement to

requirement and imposition

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Explain how people and organisational performance can impact on the approach to reward. (AC 1.3)

There are two parts to this

answer.

1) Explain how the EMPLOYEE

PERFORMANCE can impact

on the reward approach.

2) Explain how the

ORGANISATION’s

PERFORMANCE can impact

on the rewards.

Explain: Write this in sufficient detail

with descriptions. It is not a short

bullet list.

Definition and measurement of performance;

effectiveness of performance; external

pressures and competition; historical

expectations; financial standing of departments

and organisation; contribution to organisational

objectives; legislation; fairness and equality;

working hours; level of skills achievement.

Compare two different types of benefits offered by organisations and the merits of each. (AC 1.4)

There are two parts to this

answer.

1) 1) Choose two benefits and give

a merit of EACH one.

2)

3) 2) Compare the two benefits

across different criteria like time,

cost, impact.

Compare: the similarities and

differences between two benefits

offered by an organisation.

Types of benefits offered and merits of each:

types of benefits such as performance-related

pay; profit-sharing; gainsharing; share

ownership; payment by results; bonus

schemes; commission, pensions, healthcare,

insurance cover, sick pay, enhanced

redundancy pay, career counselling, company

loans, season ticket loans, company cars,

concierge services, fees to professional bodies,

enhanced maternity, paternity and adoption

leave and pay, childcare, sports and social

facilities, etc; flexible benefits; impact of reward

costs and ability of organisation to resource

these costs; development of budgets and

resource recommendations. Individual

differences in what is important in their reward;

merits of each type of benefit: general merits

include increased employee engagement,

motivation and commitment to the organisation,

reduced churn, helps to attract employees to

the organisation.

Assess the contribution of extrinsic and intrinsic rewards to improving employee contribution and sustained organisational performance. (AC 1.5)

There are two parts to this

section:

1) Explain how extrinsic rewards

contribute to:

Assess: to explain how/ when

different types of rewards can be

used for improving individual and

organisational performance.

Measurement, equity, expectancy,

teamworking, intrinsic orientation, senior

management support, impact on motivation and

results; linking behaviours and achievement

measures directly to rewards

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a) Improving employee

contribution

b) Sustaining organisational

performance.

2) Explain how intrinsic rewards

contribute to:

a) Improving employee

contribution

b) Sustaining organisational

performance

Assess the business context of the reward environment. (AC 2.1)

There are two parts to this

section:

1) Choose a two internal and

two external factors from the

business context.

2) and then assess how it

impacts the rewards

environment.

Tip: presenting this in a table

would help clarify it.

Assess: to explain how different

factors can have an impact on the

reward decisions.

Context of the reward environment: levels of

business activity and confidence; economic

outlook; industrial trends and sector profiles

including common reward packages – private,

public and voluntary; equality legislation;

regional differences in pay; occupational

classification, labour force trends, pay reviews

and pay trends; international comparisons, legal

frameworks and cultural drivers. Internal and

external factors: for example labour market,

human capital, efficiency wage and agency; the

psychological contract, expectancy and equity;

collective bargaining and pay determination;

development of pay determination, the

increasing regulation of pay, competitiveness,

external and internal equity.

Evaluate the most appropriate ways in which benchmarking data can be gathered and measured to develop insight. (AC 2.2)

There are two parts to this

answer:

1) Explain two ways in which

benchmarking data can be

gathered and measured.

Evaluate: to give your own

conclusion on the benchmarking

techniques.

The conclusion is reached by

evaluating the benefits and

challenges associated with using

each method.

Sources of intelligence; evaluation, reliability

and measurement of data; earnings, working

hours, inflation, recruitment and vacancies;

unemployment, pay settlements, bargaining and

industrial disputes; reward and salary surveys,

payroll data; government surveys, statistics and

requirements.

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2) Evaluate the merit and

demerits of both these ways.

Explain how

organisations use insight

to develop reward

packages and

approaches. (AC 2.3)

This answer should be based on

the insight collected for rewards:

You must discuss how the insight

is used to design and develop the

reward package.

Explain: Write this in sufficient detail

with descriptions. It is not a short

bullet list.

Use of benchmarking data to develop

appropriate reward package. Grade and pay

structures; job evaluation schemes; systems

and processes to manage job evaluation and

levelling of jobs, boundaries and controls to

maintain grade structure integrity and to avo id

drift; market rates.

Task Two – Report Section Two This task requires you to provide understanding of the role that people professionals undertake in supporting line managers to make reward decisions.

Assignment Question Tutor & Learner Guidance Explanation of the command verb Indicative content provided by CIPD

Explain the legislative

requirements that impact

reward practice. (AC 2.4)

State any two laws/ legislations

that impact the reward practices.

Explain: Write this in sufficient detail

with descriptions. It is not a short

bullet list.

Equal pay and reward, minimum pay, working

hours, holiday and absence legislation,

reporting requirements such as gender pay gap,

CEO pay ratios, annual reports.

Assess different

approaches to

performance

management. (AC 3.1)

There are two parts to this

section:

1) Select any two approaches for

performance management.

Assess: to explain how/ when

different contracts can be used in

line with the needs of the workforce.

Performance review meetings; developing

capability through continuous professional

development (CPD), models of facilitation,

coaching and mentoring; objective-setting,

appraisal process, 360-degree feedback,

relationship between performance management

and reward. Advantages and disadvantages of

different approaches.

Level 5 Associate Diploma

PGB Edits Jan 2023

2) and assess the usability,

reliability and applicability of

these approaches.

This could refer to any informal or

formal performance management

approach

Review the role of people

practice in supporting

line managers to make

consistent and appropriate

reward judgements. (AC

3.2)

This can be rephrased to say how

does HR help line managers in

making consistent reward

judgements.

Focus on how people

practitioners support line

managers in decision making at

the various stages of the rewards

process appropriately.

Review: to examine, survey,

reconsider a subject, theory or item.

People professional’s role in supporting line

managers in reward decisions and in

maintaining equity, fairness, consistency and

transparency; compliance with legislation;

supporting line manager’s ownership of intrinsic

and extrinsic rewards; training, job evaluation,

promoting responsibility, opportunities to

participate and other intrinsic and recognition

rewards; providing reward insight data.

Explain how line

managers make reward

judgements based on

organisational approaches

to reward. (AC 3.3)

You need to discuss what the

organisations reward approach is

and then,

Explain how the reward

judgements are made based on

this.

Explain: Write this in sufficient detail

with descriptions. It is not a short

bullet list.

Use of policies; organisation values and beliefs;

ethics; evidence-based judgements;

performance data; decisions about financial

rewards; decisions about non-financial rewards

such as work-life balance, working conditions,

work itself, job enrichment, development.