5HR03 Assessment – Associate Diploma in People Management

5HR03 Assessment – Associate Diploma in People Management [December 2021-2023] Page 1 of 5






Unit Title Reward for Performance and Contribution
Unit Code 5HR03
Level 5
Credit value 6
Assessment method Written report
Period December 2021 – December 2023
Learning outcomes: 1. Understand the impact of reward approaches and packages.2. Be able to develop insight from benchmarking data to informreward approaches.3. Be able to develop insight from benchmarking data to informreward approaches.
Assessment Criteria Assessment briefThe management of your organization seeks to improve performance through reward systems that are appropriate and motivating for all staff. In this regard they have asked for your opinion on effective practices, while considering market trends and workforce planning processes. For relating the reward systems with examples, specific job positions can be selected.Present a report on the following:
1.1 a. Consider the reward practices in place within your organization.Categorize the rewards based on their impact, whethershort-term or long-term.Make a note on how effective you think the rewards are interms of motivating staff, improving productivity, andincreasing job satisfaction.b. Analyse the fairness of reward systems within your organisationfor two selected job positions. Compare the rewards with thoseof similar jobs within competitor organizations in the industry.c. How does your organization’s reward strategies connect withthe company’s vision and business objectives? Discuss.


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d. Evaluate the importance of reward strategies to develop a positive organizational culture and improve performance management.
1.2 e. Outlines the main characteristics of strategic and total reward.Discuss the different phases of Implementing a Total RewardsProgram.Click on the link below for reference:https://www.cipd.co.uk/knowledge/strategy/reward/strategictotal-factsheet#greff. Balancing rewards between internal equality and externalcompetitiveness in today’s volatile environment is challengingfor organizations. Provide suggestions on how this balance canbe maintained.
1.3 g. Evaluate the reward systems that have been applied in yourorganization over the past few years. Include your views on thefollowing questions:Do the rewards support achievement of organizationalobjectives?What updates have taken place during this period?How has the external environment impacted the updates(or constancy) of rewards?Are the rewards distributed fairly while consideringequality, working hours and skill levels?


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1.4 h. Compare types of rewards and provide examples of how these might be attractive to employees of each gender as well as staff from different age groups, personalities, and culture.i. Research the type of benefits provided by any renowned multinational corporation. Analyze the merits of each benefit for the company and its employees.j. Given the opportunity to start with a clean sheet, what would you include in a benefits system for your organization? Discuss with suitable justification for each type of benefit that you have chosen (for example, performance-related pay, bonus schemes, flight tickets etc.). You may also give examples of reward benefits that you might prefer for your own job-profile.k. To what extent do you think employees still value an occupational pension? Based on your discussion with colleagues and friends, evaluate whether millennial employees prefer to have larger disposable income or a smaller income with a guaranteed pension on retirement.
1.5 l. Assume that you are the team-leader for two staff who arehighly determined to perform to their full potential. However,one of them is motivated by the financial and career benefits ofthe job while the other is motivated by a determination tocreate value for customers and develop own skills. How wouldyou apply extrinsic and intrinsic rewards for improving theircontribution to the organization?m. Do you think performance-related pay has a place in not-forprofit organizations? Discuss the differences in effective rewardsbased on the type of organization, including businesses, NGOs,Governmental organizations, charities etc.
2.1, 2.2, 2.3 a. Evaluate key factors affecting your organization’s rewardsystems. Include the effect of both external and internal factorsand provide suitable examples of how they impact the pay for aselected job.b. Discuss how the environment of your organization impacts itsrewards. Include points related to the type of industry, the GCCregion or location, economic outlook of Bahrain and standardsof living available here. How does this compare withinternational firms?c. Conduct a research of intelligence sources to develop thereward package of your organization by benchmarking with anindustry leader.


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d. Conduct interviews with some of your colleagues to identifytheir grade-structure and how it relates to the overall jobevaluation scheme. Summarize the differences in pay andbenefits based on each grade.
2.4 Reflect on the legal and ethical requirements of setting up a reward system and answer the following:e. Is it right that the law should play such an important role in thedesign of pay systems?f. Would you agree that there is a gender-based pay gap in somejob positions and organizations?g. The ratio of pay between the lower grade jobs within multinational corporations and the top management positions aregreatly multiplied in many cases. What is your opinion on theethics of such a disparity?h. In your organization, is there any consultation with employeesabout either the pay system or increases in pay before they arefinalized? How does this impact performance?
3.1 a. What are the differences and similarities between coaching andmentoring? Discuss how you could utilize these approacheseither together or separately in helping managers to makereward decisions.b. Evaluate the pros and cons of common performancemanagement approaches and summarize the processes usedwithin your own organization.
3.2, 3.3 c. Discuss the trends relating to the role of line managers and HRprofessionals in reward decisions.You may study the report available in the below link for support:https://www.cipd.co.uk/Images/reward-management-report- 2019-2_tcm18-68009.pdfd. Reflect on the ways in which managers within your organization contribute to reward decision makinge. Provide recommendations for the HR within your organization to better support line managers to make effective use of new and


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improved reward systems that maintain fairness, transparency and complies with Bahrain labor laws.
Evidence required from trainee:A written formal report of up to approximately 3900 words.Preferred Font: Arial 12, black, double spacing.Trainee should relate academic concepts, theories and professional practice to the wayorganizations operate, in a critical and informed way, and with reference to key texts,articles and other publications and by using examples relating to both local andinternational organizations for illustration.All reference sources should be acknowledged correctly, and a bibliography providedwhere appropriate (these should be excluded from the word count).


Reward for Performance and Contribution

1.1 a

Some of the reward practices in my company include individual performance reward scheme, profit related pay and job promotions. The first practice is the most impactful while job profit related pay comes second and job promotion comes third. These three reward schemes are long term as they are executed mostly annually.

Individual performance reward scheme is highly effective as employees know that when they perform well and according to expectations, they will be rewarded (Takash, 2008). Employees feel appreciated that their performance does not go unnoticed. Profit related pay is not very effective at times. The performance of the company is sometimes affected by other factors apart from employees efforts. When the company does not perform well, employees are not rewarded and this sometimes acts as a discouragement especially when they feel they have given their all. Job promotion is highly effective and motivating since employees know that good performance will make them be rewarded with a higher position in the company.

1 b

Job promotion is not fair for auditors in our company compared to operation officers. All auditors have the same level of job capacity other than their manager. It therefore means that it is very hard to promote an auditor since there can only be one manager at a time. Operations officers however enjoy several hierarchies of promotion. There is senior operations officer, head of operations and director of operations. Therefore, a junior officer knows he can be promoted through this hierarchy unlike an auditor.

One of our competitors does not generalize their auditors in one level. He has introduced titles in between like head of audit, prime auditor and director of audit. These titles come with good perks and recognition besides pay which motivates auditors to work hard and rise through the ranks. The company’s operations officers are more so like those of our company in terms of titles and pay.

1 c

            One of the visions of our company is employee and customer development. When employees are rewarded when they perform according to expectations, they get empowered (Anderson, 2017). Higher pay through promotions and rewards bring ‘safety’ to employees. It also introduces the aspect of high need of belonging, esteem and self-actualization which is what the company encourages employees to have. The company has ensured that the various forms of rewards it gives go beyond cash. The rewards encourage personal development and training. When employees are empowered through training, they get skills that they can share with others which helps the company to grow. When other employees see their counterparts being rewarded, they get the notion that excellence is possible by any employee. This makes them believe in themselves and give their best which is what the company encourages.

1 d

            Reward strategies help in retaining talent at a company. Having employees remain in the company is crucial for the success of the business. When employees feel unappreciated, they will most likely leave for competitors. Rewards also help in contributing to having a strong positive company culture. The employees get good influence on how to talk to each other even to people outside the business. Rewards also contribute to employee well-being. They feel appreciated, engaged and accepted. It therefore becomes easier for them to push the company to greater heights. The strategy also helps enhance productivity as employees feel the urge to produce quality work as they know meaningful rewards lie around the corner. It also helps in building a good reputation for the company as customers trust companies that treat employees well. A reward strategy also help create true loyalty where employees get to form meaningful bond with the business.

1.2 e

A strategic and total reward should provide a monetary benefit and personal development towards an employee who attains certain business goals. Strategic and total reward should combine compensation and benefits with personal growth opportunities in a work environment. The first phase of implementing a total rewards program begins with assessing what one already has in place. This is especially the financial muscle one has in implementing the reward scheme. The second phase involves getting feedback from employees so that one does not roll out a reward scheme that does not excite employees. The third phase should include informing the leadership concerning the scheme so that they give their input. The fourth phase includes identifying the goals and priorities of the reward scheme while the last phase incorporates aligning the reward strategy with the values and culture of the company.

1.2 f

To maintain a balance between internal equality and external competitiveness in rewards, one should put in place a robust approach to measure jobs and salaries to diagnose, understand and address salary variance in the workplace. One should also be transparent about pay policies and changing demands of the workforce. It is also good to have a compensation strategy that incorporates a risk management plan. One should map out all the internal and external pressures that have historically affected salary levels. Solutions to mitigate the risks should also be rolled out. The employees should be assisted to move up the ladder so that their wages improve as well as their skills.

1.3 g

Some of the reward systems in my company include individual performance reward scheme, profit related pay and job promotion. These reward schemes support the achievement of organizational objectives. These rewards help support achievement of institutional objectives. They are able to retain staff since employees feel motivated. The company is able to benefit from innovation that is brought by employees. It is also able to benefit by realizing operational objectives, financial and customer objectives as employees are motivated to work towards a certain goal.

Some of the updates that have taken place in the company as a result of the reward system include that the performance of the company has improved. Employee flight has also gone down as employees feel more appreciated. The external environment of the company has made the company be able to maintain the reward system in the long haul. The rewards have been fairly distributed and take cognizance of equality, working hours and skills. Employees are normally asked to fill in the balanced scorecard which helps balance these parameters during rewarding.

1.4 h

The reward in our company can be categorized into monetary, non-monetary, assistance and recognition. These forms of rewards appeal differently to gender, age, personalities and culture. The female gender is more attracted to non-monetary rewards. This form of reward system makes a job attractive. Monetary rewards look too basic compared non-monetary ones. People are used to monetary rewards and therefore giving them something different will always stand out. Non-monetary rewards also appeal to the young age and personalities that are adventurous and people from cultures where giving of gifts is prevalent (Mohapatra & Dhir, 2021). Recognition is good but not appealing especially to the male gender. It only appeals to the older people.  Assistance depends on how it is availed to an employee.



1.4 i

Apple Incorporation offers several forms of benefits. First, they offer health insurance. The employees are given access to health specialists and gym facilities at their offices. This makes employees feel appreciated that the company values their health. They are also given 30 days for vacation. For women they are given four weeks of paid leave before they give birth and 14 weeks of maternity after giving birth. There is also an unpaid leave of six weeks which is optional. Men take six weeks paternity leave. This form of benefit also makes employees feel appreciated since this is not offered in many workplaces.

Apple offers shuttle services for its employees free. In addition it offers a stipend of $100 to use on other transport costs. These benefits do not come easy in other companies and where they are given, it is only for top executives. The company offers tuition and self-improvement as it has its own ‘university’. This equips employees with values that they will use in life.

1.4 j

In my place of work, I would include disability insurance. This is for the purpose of protecting employees and the employer from unforeseen circumstances that may prevent the employee from working for an extended period. I would also include student loan repayment options since most employees face student loan crisis to combat the problem. This would help them to have less financial burden and encourage them to pursue higher education.

I would also consider giving them housing options when they want to relocate by partnering with local housing agencies to help them out. I would also give them working from home options whenever possible. This would be accompanied by flexible working hours so that they work in a manner that accommodates their lifestyle. The other thing I would include is having free lunches, fruit and coffee as an added bonus. This would be a good way of promoting healthy eating habits.

1.4 k

Employees still value occupational pension even today. This is because it offers them a chance of benefiting from contributions from the employer and a tax relief from the government. Over time, this money adds up and can grow. A larger disposable income may be a good deal but in the long run, it might turn out disadvantageous especially if the investments one has made do not turn up to thrive as expected (Park, Stańko & McShane, 2019). When people retire, they get to experience a reduction in income and pensions makes up for this loss of income in retirement. Pension also provides protection in form of lumpsum and pension to dependants when the member dies. Most millenials understand these advantages and are always willing to have occupational pension. They see it as another way of saving.

1.5 l

I would begin by explaining the goals that I want realized. This will make the two employees have an understanding of what is required in the job. I would also set ground rules. This would incorporate the guidelines that would need to be followed so that there is a balance between what employees want and what is expected of them. I would also strive at having a conversation with both employees. The one that is motivated by monetary gains I would implore to him that personal growth is also important. The one that is motivated by developing his skills and creating value I would urge him to keep and let him know that the monetary aspect will also be considered.  I would strive at giving positive feedback always and pinpoint the areas that I feel they need to improve. This would motivate them to be all round. I would never use a one-size-fits-all approach since employees are always different from one another. In some cases I will consider intrinsic motivation while in others I will consider extrinsic motivation depending on what works the best for all.

1.5 m

I think performance related pay has a place in NGOs. Like other entities, NGO employees are supposed to meet set targets and certain expectations. The only thing that they do not observe is making profits. Employees should know that certain expectations will be expected of them as they work and performance related pay is one of the ways of ensuring that this is realized. Different types of organization have different types of reward scheme. NGOs mostly prefer promotions for rewarding staff. They work mainly with non-monetary means of rewarding employees as they are not mainly about money making ventures where they can coup money and pay employees. Charities mainly are less focused with giving rewards as it assumed that employees are contented with their main pay. Whenever there is some extra money, they opt to reward based on profit related pay. The government and business largely opt for performance related pay.

2.1 (a)

Some of the factors that affect an organization’s reward system include government rules, economic conditions in the country and competition in the industry. Others include the organizational culture, the business and human resource strategy. External factors include government rules and economic situation. Internal factors include the business strategy and human resource (Harrington, 2018).

In our organization, there is a culture where employees are given double salaries if they meet the targets that are set in the beginning of the year. The employees work hard all year round to ensure that they realize these targets so that they get the double salary. The human resource department of the company has set individual performance targets that if an employee meets them, they are rewarded. The economic situation is usually utilized to govern when to increase pay of employees. Government rule is used in the company in setting the minimum wage that the lowest employee should be paid.

2.2 (b)

In our organization, all employees are treated equally including the CEO. As a result, every employee knows that they have to work hard in order to meet the targets set regardless of their level. It is therefore not surprising to see a junior employee being rewarded and the CEO not being rewarded. Being the banking industry, performance is key for employees including the top management.  Bahrain mainly relies on oil to sustain the economy and the recent fluctuation of global oil prices has not made things look better. The standards of living have been largely good for the common person.

The banking industry in Bahrain has largely reaped from the oil business and this has seen them make a killing from the trade. Bank employees have also reaped from benefits that come as a result of oil trade. The average life of the ordinary citizen in Bahrain is generally better than in those of other countries.

2.3 (c)

            Based on research I have established that our company should adopt vacation and perks and social clubs that are based on grade criteria as well as stock ownership. This is what one of competitors has been doing and it has rewarded the company handsomely. Vacations will be rewarded to all top employees in all departments. This will make employees work hard so that they top their respective departments and get the offer of the vacation. The employees will be given the option of choosing where they want to go for the vacation. Allowing the employees access social clubs will help them interact with other people of influence where they will get a chance of learning other information that will help them handle life and also acquire knowledge that they can use at the workplace. Stock ownership will be beneficial in that employees will work with the mind that when the company performs better, they have a slice of that profit as they will own a certain shareholding. When the company performs poorly, they will miss out on shareholder dividends.

2.3 (d)

            Most of my colleagues are under various departments in the bank. They report to a head of department. The heads set out targets for every employee, which they are the expected to meet. Those in the high ranks like the CEO have their targets set by the board. The junior employees have their individual targets as well as those of the entire department. The employees in low cadre grade structure do not have a thorough job evaluation scheme since their impact is not considered  to have far reaching effects like  that of the top management. Therefore, those in the top management have a very elaborate job evaluation process. In the company, those who are in the top grade structure are taken through a very rigorous job evaluation scheme as their job impact is considered to affect the lifeline of the company.

2.4 (e)

It is important that reward systems follow the law of the land (Fitch, 2014). The country has the Wages and the Fair Labor Standards Act that spells out the minimum wage, child labor, overtime, independent contractors, equal pay and others. It is always important that the law is always followed so that the company employment policy aligns with those of the country. Not abiding to the law when designing the pay systems may result in employees’ rights being infringed since labor laws are formulated after an elaborate process that involves all labor and other necessary stakeholders. The labor laws therefore act as good pillar for fairness in a country and therefore companies should follow them to the latter when designing their pay systems.  Following the law also saves the company from lawsuits that could come from aggrieved employees. The laws generally help ensure that there is fairness to both the employee and the worker.

2.4 (f)

            I agree that there is gender pay gap in some jobs and organizations. Recent statistics show that women are paid 79 cents for every dollar paid to men despite the fact that there has been numerous affirmative action steps taken to address this issue. This has been occasioned by the fact that women continue to face discrimination in the workplace. Most employers operate under norms that do not work to favor women in the workplace. Women also face the problem of having to balance their work and family unlike their male counterparts. Women face societal norms and other forces beyond their control that do not give them a level playing field with men in the workplace. Some institutions also do not favor women especially for those tasks that are considered too physical for women.

2.4 (g)

            Top management positions normally come with big credentials and therefore huge pay is normally a reward for the education that these individuals have. These positions also come with top experience and skill. The longer one has held a job the higher the experience and productive they are. The top management also happens to have an in-demand skills that are rare and as result they have to be paid more. The tasks of the job also determine how much an individual should be paid. The senior positions come with more complexity and a greater responsibility, and therefore has to attract a huge pay. It also happens that some top management skills have to be sourced from elsewhere unlike low cadre position and thus top managers by default have to earn more. The top positions happen to be competitive and the few number of employees who succeed in getting them have to be compensated by being given high earnings. Therefore this disparity will be evident for a long time and is completely understood.

2.4 (h)

In my organization there is no consultation with employees concerning their pay or increases. Employees other than the top management are under a union which normally negotiates the basic pay as well as other benefits of employees. I find this good as it helps ensure that employees do not get victimized for agitating for better pay. Employees are also left to undertake their main work while the union handles their affairs. However the company does not rely entirely on union terms in increasing salaries. It has its own structure of rewarding employees which is even better than what the union recommends. The union terms are only used as a guidance mechanism. The employees performance therefore remains optimum and even better even though they do not participate in stating their own salaries.

3.1 (a)

Mentorship goes deep while coaching is just a formal relationship that takes place just for a short time (Siew, 2012). Mentorship is more beneficial as it comes with lots of advice, help and guidance from the mentor. Coaching on the other hand involves learning about a particular subject and gaining from whatever the coach may have. A mentor acts as a role model, offers guidance and support and offers advice on career and personal growth. In coaching, the relationship is formal and is based on particular issues of development. Coaching also involves use of structures and is solid.

Mentorship comes out as being better than coaching. It therefore means that managers should rewards those employees that mentor others handsomely. Those who coach their colleagues should also be rewarded. The managers should exploit these two by rewarding employees who mentor and coach others so that the company can benefit from skill sharing.

3.1 (b)

            The pros of performance management approaches include that it provides employees with valuable feedback which assists in employees knowing if they are doing wrong or right (Anderson, 2017). It also opens the door of communication between employees and their employer. It can also be used for providing support and encouragement where successes and accomplishments of an employee are celebrated. It also helps in identifying underperformers and thus giving an opportunity for appropriate action to be taken. The cons of this system is that it is time consuming and can largely discourage employees and at times it is normally difficult to remember everything an employee has done. It is also difficult to remain unbiased.

Our company mainly uses performance appraisals. The employees are given targets at the start of the year which are noted down in a balanced scorecard. The scorecard is the reviewed after every three months to check how the employee is fairing.

3.2 (c)

Line managers communicate reward benefits to staff and help them in developing the reward strategy. This way, there is an improvement in employee engagement, retention and a reinforcement of the institution’s values. The line managers also receive feedback from the employees and from the information, they are able to know where they should offer more support. They also determine if the employee has attained the set goals that will make him receive the reward besides determining how the rewarding will be done. The HR professionals work with the line managers in helping them understand the wide range of options that are open to them when it comes to rewarding the performance of employees.  These include base salary increases, promotions, career development, training and public recognition.

3.2 (d)

Managers are involved in the planning process of how the decisions will be made. They also organize by putting resources ready and rolling out the action plan. The managers command the employees to ensure that they are working effectively and they also coordinate to ensure various departments work together to realize the end goal or the laid out objectives besides getting the awards. They also participate in controlling the process as well as delegating various tasks or responsibilities involved and motivating the staff so that they realize the awards set.

3.3 (e)

            The HR should ensure that the HR strategy that they roll out aligns with the external and internal factors. The strategy should be in line with the labor laws of Bahrain. The HR personell should regularly visit employees at their workplaces and get to learn from the employees themselves the flaws that they see in the current reward systems and how they can be improved. The HR personel should also do benchmarking at other companies and see what they can borrow and implement in the company’s reward system. They should make sure that the company is always ahead of the competitors. They should be ready to adopt new trends and move quickly to tap into new and emerging opportunities concerning reward systems.

The HR should also assess the type of training that is essential and go ahead and execute it well. They should be on the lookout for the key areas that need training so that the reward systems can thrive.



Reward for Performance and Contribution

5HR03 – Assignment Guide – FOR STUDENTS (1)
















Anderson J. (2017). Employee reward structures (Sixth). Spiramus Press.

Fitch B. D. (2014). Law enforcement ethics : classic and contemporary issues. SAGE.

Harrington H. J. (2018). Innovative change management (icm) : preparing your organization for         the new innovative culture. CRC Press.

Mohapatra M. & Dhir S. (2021). Talent management : a contemporary perspective. Sage             Publications.

Park K. G. Stańko D. & McShane D. (2019). Supervision of lost pension accounts and unclaimed       benefits. Journal of Financial Regulation and Compliance 266–279.

Siew E. (2012). Mentorship and coaching a workplace mentorship and coaching guide. Crown             Publications.

Takash J. (2008). Results through relationships : building trust performance and profit through           people. Wiley.