Explain How Line Managers Make Reward Judgements Based on Organisational Approaches to Reward

Organisational approaches to reward vary but tend to focus on the overall goals and objectives of the organisation, such as increasing productivity, developing employee skills and providing recognition for their hard work. Line managers must consider these objectives when making decisions about rewards (Hana, 2022). For example, a line manager may reward employees with a financial bonus based on their performance. This reward could be linked to the employee’s specific objectives, such as meeting a sales target or completing a project within a set timeframe. The line manager may also decide to award a one-off bonus for outstanding performance or to recognise the efforts of a whole team. Alternatively, the line manager could reward employees with non-financial rewards such as additional training or career development opportunities. This could involve offering employees the chance to attend conferences or seminars to learn new skills or enabling them to participate in a mentoring programme. These rewards are designed to recognise employees’ value and help them develop their skills and knowledge to become more effective in their roles.

Organisations typically have a range of different approaches to reward, and these may include financial and non-financial rewards. Line managers need to be aware of the organisation’s reward strategy and the range of rewards available to make reward judgements that align with the organisation’s approach (Hana, 2022). For example, an organisation may have a reward philosophy emphasising job satisfaction and engagement. The line manager in this organisation is likely to reward employees based on their performance and commitment to the organisation rather than simply focusing on financial rewards. This could include providing additional benefits such as flexible working, personal development opportunities or promotion.

Another example of an organisational reward approach could be focusing on financial rewards. In this case, the line manager may be required to consider the organisation’s budget before making any decisions about rewards. This could mean deciding which financial rewards are appropriate for each employee, considering their performance, contribution and value to the organisation. Line managers need to be aware of the organisation’s reward philosophy to ensure that decisions about reward judgements align with the organisation’s approaches (NHS, 2020). Line managers also need to understand the range of rewards available and assess the appropriateness of each reward in the organisation’s context. For example, if the organisation’s reward philosophy emphasises job satisfaction, line managers may need to consider non-financial rewards such as flexible working, personal development opportunities or promotion rather than simply focusing on financial rewards.

References

Hana, A. (2022) Supporting line managers to make reward decisions – the role of people professionals, LinkedIn. Available at: https://www.linkedin.com/pulse/supporting-line-managers-make-reward-decisions-role-hana-al-khalidi/?trk=pulse-article.

NHS (2020) The role of line managers and total reward, NHS Employers. Available at: https://www.nhsemployers.org/articles/role-line-managers-and-total-reward.