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The performance of the employees is rewarded by the organization or firm for motivating other employees and the rewarded employee. This ensures loyalty and generates an erg to do better for the organization. Appraisal or incentives are proficient to particular employees after noticing for an extended period. This is also known as the annual review and is provided to those employees who perform extraordinarily in their working area for the organization's benefit. The appraisal rates the performance of the employees and it gives an evaluation of the skills, growth, and achievement of employees. According to CIPD companies are providing great relief to their employees by fulfilling various criteria and providing bonuses in various terms such as cost-of-living bonuses. According to CIPD15% of companies have paid or plan to pay the employees. Private sectors have paid 18% bonus to their employees. This aspect of the companies will surely benefit the employees who will welcome the gesture.
Policy framework regarding reword and pay practice in an organization
Work ethics are recognized as a heart of professionalism that contributes to managing working practice through creating trust, transparency, and collaborative working culture in an organization. Poor treatment toward workers is associated with scandal, harassment, discrimination, and diversification and provides them less appreciation for an employee can be mitigated through developing ethical practices in an organization. Considering those factors in an organization and requirements of ethical practice, human resource management emphasizes developing policies and frameworks for delivering a secure and satisfactory professional life for employees. The total reward framework involves three primary elements for influencing employees to perform, join, and stay in an organization for the long term. Those three elements are benefits, pay, and intangible rewards.
Incorporating rewards framework employee management practice refers to a significant and useful recognition program focusing on increasing employee engagement and individual performance. Adopting the reword framework helps to increase awareness of employees toward work for encouraging employee engagement that is associated with showing value for the workforce and developing trust among them for organizational policies and employers (Compliancequest.com, 2018). Increased productivity and retention is the main objective of rewording facilities that can be recognized as performance measure and motivational ingredients in workplace practice.
Rewarding framework is associated with recognition initiatives in employee management practice that is effective because rewording focuses on sending a positive message to employees. Rewarding is considered to recognize great performers which includes providing incentives, opportunities for future career growth, learning facility as well, and physical gifts. Rework is a key initiative for encouraging organizational success by stimulating productivity and profitability with the quality involvement of employees (Murayama et al.2019). Providing learning and career opportunities concerning the reword framework helps to encourage employee skill-sets and knowledge base that is associated with better employee performance with quality assurance. Apart from that, it can be analyzed that, aligning reward framework in working practice is important for reaching organizational objectives and goals with effective employee involvement because it contributes to providing employee motivation with growth opportunities.
Reward facility includes several beneficial factors concerning workplace performance namely increasing productivity, encouraging profit margin, improving employee engagement, and reducing working-related issues without the application of the supervision process in the workplace. The rewording facility is advantageous for efficient workers because it provides an opportunity for them to explore their effectiveness and capability with identical recognition (Fan et al.2020). Incentive facility in the workplace is important for encouraging employee turnover at low-cost investments that lead to increasing cost-effectiveness with a high rate of profitability.
Aligning the reward framework helps to increase employee satisfaction due to remarkable opportunities for career growth and earning more with incentives. Employees might not be dissatisfied due to organizational policies and opportunities that lead to reducing governance-related compliance in the workforce (Shneor and Munim, 2019). Hence, reword facilities with incentives contributes to increasing employee satisfaction, reducing governance-related complies and the possibility of employee conflict in the workplace.
On the other hand, a reward system leads to increasing employee-related expenditure due to providing incentives, couture, and physical gifts. A reward system is responsible for increasing the monetary value of an organization as well as creating misperceptions among the workforce. In this aspect, the reward framework has to include extravagant value to minimize widespread misperceptions among employees (Hossain et al.2018). Providing financial gifts is associated with overvaluing a potential employee who can de-motivate other employees due to a lack of faith. Using reward facilities for employees might dishearten the performance of other employees and affect their engagement in working practice. Constantly using a reword framework in employee recognition involves losing employee interest in work due to appreciating confident employees.
A preview of those aspects in the reward system and employee recognition indicated using a fair and proper reword framework is important in considering reword policies that help to minimize the possibility of employee de-motivation in workplace practice as well as provide employee-related conflicts and performance-related risks effectively.
Pay or Compensation
Pay is a significant element of employee reward that refers to mandatory compensation for employees on behalf of their work and efforts. Pay and compensation are different forms of payment. Here, cash compensation is defined as mandatory payments for employees as per their performance that can be provided in different forms such as base pay, and variable pay. As cited by Gulyani and Sharma (2018), pay means the salary of an employee considering hourly wages that can be recognized as the most common and observable rewords of a firm representing a simple response about a job. Variable pay involves a meaning sure of performance that can be provided as per performance and job involvements of an employee. Proving cash considering performance is considered as an equity reward that includes bonus, commission, and other rewards. Apart from that, it can be stated that compensation is mandatory direct payments that are provided regarding the exchange of work by an employee.
Employee Benefits
Total Rewards systems in organizations are concerned with providing employee benefits that include additional support and services such as medical insurance, education facilities, and accommodation. As opined by Mukwevho and Bussin (2021), considering the requirements of the labor market it can be understood that organizations have to offer employees additional benefits, support, and services to ensure job security and encourage them to do their work effectively. Employee benefits refer to additional rewards for employees with compensation packages that can be developed regarding compensation plans of central government signifies in employee acts and minimum wage acts of this region. Employee benefits in an organization have to develop considering mandated instruction of state, federal, and local governments that emphasize constructing policies regarding health, wellbeing, job security, and benefits of an employee as well as this organization.
Intangible Rewards
An intangible reward is associated with significant employee-related factors beyond cash that can be provided regarding the measure of employee engagement and employee performance. As argued by Rai et al., (2019), tangible rewards enable motivating employees toward work that helps to provide a positive working relationship between employee and employer, and meaningful work with effective working culture in an organization. Tangible reward means a non-cash reward that includes providing physical gifts, training facilities, and opportunities for future career growth for an employee.
Critical evaluation of the impact of organizational reward strategies
Aligning reward strategy in working practice helps to create healthy competition among employees to achieve recognition as the best performer with an opportunity for future career growth. Healthy competition in the workplace is associated with increased work performance and quality of work with effective engagement in the learning and development process due to the enthusiasm of employees for achieving recognition as the best performers. Therefore, rewording helps to attract employees to work effectively and deliver the best of their practice working to achieve desired goals regarding the organizational reward framework. On the other hand, employee retention can be recognized as a significant result of a rewording strategy that involves increasing job satisfaction and reducing the emotional exhaustion of employees regarding workload (Scales, 2021). An interest in achieving reword helps to encourage an employee to handle any type of work leads and stress without any obligation. Employee work effectively concerning opportunities for career growth is an outcome of a reward strategy that helps to influence employee retention in the workplace. Winning an alluring reward for effective work performance is enough to motivate an employee because reword is a recognition of employee performance that helps to create a notable image of this particular employee in the workplace (Lang and Kell, 2020). Apart from that, it can be stated that the reword strategy helps to create a motivating working environment that helps to encourage employee productivity, employee involvement, and employee satisfaction by providing them with potential value from an organization based on their work performance. Reword helps to make an employee dedicated in working practice concerning their performance involvements that are recognized as an identical part of employee motivation.
In a fast-moving economy, the organization has a management strategy that undertakes talented and well-developed skills employees. The organization has an approach of taking the best candidates who can flourish in the organization with the skills and show loyalty towards the organization. Rewards will reinforce the firm's values which have a lot of importance for the employees. Rewards have much usefulness in terms of the development of individual employees and attracting candidates for their development and retention. The behavior of employees is as important as the results, not the target that is met (Employeebenefits.co.uk, 2022). According to the rewards structure of CIPD, the organization must clarify the objectives and rely on the rewards by the objectives so that the organization motivates the employees to achieve objectives. Some companies have discretionary behavior and reward every individual in the organization as the company gets benefits or it gets profits. This is also known as a typical bonus scheme. The next is the reward provided by the organization on an individual basis for performance. CIPD (Chartered Institute of Personnel and Development) provides a detailed description of the reward facilities by giving a better description of employees' recognition and demonstrating the performance and skill to fulfill the requirement of the organization's objective. Recruit rewards and retaining is a process that is followed in the organization as a basic benefit of employees as well as the organization. The organization gets benefits by understanding the employee's privileged remuneration advantages in specific expertise employees as shock skills require a certain retention strategy (Bussin and Brigman, 2019). Once the employee is recruited dint the organisation the rewards have a great influence on the employment. The reward at the time of recruitment will have a greater impact whereas the reward during the workflow has less impact. The employees don't know the objective of working in the organization as they are newcomers to the organization. The nature of paying plays risk mitigation in the decision-making points. The risk-mitigating has no direction as the organization has no idea of the risk but it attracts the newcomer and generates loyalty towards the organization. The rewards can be managed in two different ways one by focusing on talent management and the other by focusing on high-performing quality and high-potential staff. Both the ways approach is clear in attaining the objective of the organization. Employees must have consistency and alignment among the talent management and the reward messages provided to the organization. Employees are recruited by the organization and the organization has to take some necessary steps to restrain the employees for a long time by providing or sharing the result of business profit with the employees. Profit sharing not only makes the employees happy but also generates loyalty towards the organization. The organization has to take certain steps to improve the financial management of employees and it must reduce stress and provide mental support to its employees (Community.cipd.co.uk, 2022). It will support boosting the income of employees and has a considerable immediate impact. The organization must speak to its people to solve the issues regarding the workspace and find the best for the company's workforce. The CIPD has a developed reward strategy and according to that the pay and reward structure the employees are suggested for their recommended undertakes.
Evaluate in regards of monetary and non-monetary incentives
Non-monetary and monetary incentives both have different impacts on the employees. The non-monetary policy has a good impact in comparison to that of monetary incentives as it gives recognition in the workplace and has various effects on other employees. The non-monetary incentives cast their effect on other employees by motivating them and inspiring them to put more effort into providing better revenue to the organization (Lefebvre and Stenger, 2020). Non-monetary incentives have a good impact on the relationship between employees and management. The monetary incentive also has a good impact on the employees but recognition is less as compared to a non-monetary incentive. It also provides. The strategic approach has a long-term approach to the organization's reward policy and provides balance and support to both the employees as well as the employees. The next is the total reward which covers tangible as well as intangible aspects of tasks and values people and can form an effective portion of a reward strategy. The factsheet gives a proper description of rewards and guides consideration principles (Cipd.co.uk, 2022). Pay as well as benefits both is important and getting this concept wrong can have a bad impact on the organization and employees. Non-monetary incentives can have a better impact on employees it could give rise to generate opportunities for personal as well as career development. The non-monetary incentives include independence in flexible working, and involvement in decision making an important aspect for providing recognition this also includes rewarding the employee of the month for team performance or team events (Cipd.co.uk, 2022). Management of rewards by the CIPD is done according to employees' behavior. Every employee has an attachment, retention, and engagement of rewards in financial and non-financial ways. These may change according to the time and also depend on individual circumstances. In some situations, people or employees may not be interested in financial packages whereas interested in gaining knowledge and accessing training for career development (López et al.2021). Employees to acquire better benefits for the organization and themselves need to develop better skills and pursue training for personal career development. This will not only benefit the organization in fulfilling its objectives but also develop better skills and knowledge of the organization and self. Behavioral science is a better way of responding to rewards (Rajapaksa et al. 2019). It also gives details on designing, communicating, and implementing employees' reward packages. There are various ways of rewards including ways of the base includes variable pay, financial and non-financial incentives, and fixed to flexible benefit these meets the objective of the organization and self. Monetary rewards or incentives demonstrate a trivial on employees' work the work engagement converts to work happiness. The relationship between the employees and management becomes significant by casting a better physiological effect on the workers (Gulyani and Sharma, 2018). The total reward is also based on the human resource management system. It is an initiative for understanding the benefits and relation between work happiness and total reward elements. It also focuses on the social exchange theory, self-dependant theory, and vrooms expectancy theory. It also focuses on investigating the employee's perspective as an entrepreneur. The program or project objective needs to be identified by the worker for the benefit of the organization. The monetary, as well as non-monetary incentives, provide a better experience for a company in terms of motivating and generating confidence as well as loyalty.
Monetary incentives play a crucial role in boosting motivation in the workplace which is associated with encouraging employees with rewards and recognition regarding their performance. On the other hand, non-monetary incentives are recognized as an intrinsic motivation for employees concerning their effectiveness motivation due to increasing job satisfaction of employees through providing flexibility in working hours. Monetary incentives are concerned with encouraging the performance of workers through cuisines as a performance measure that is associated with increased compliance of employees regarding fairness and non-fairness (Lefebvre and Stenger, 2020). However, non-monetary incentives act as an amplifier of innovation concerning the implication of the working process and culture for the betterment of employees. Concerning the risk-taking attributes, the management group has to make workforce-related decisions. Offering rewards refers to the common approach of monetary incentives because it helps to improve employee engagement, performance and retention process based on individual assessments of employee performance but non-monetary rewards thrive the community and whole workforce through offering flexibility in working hours and other employee benefits (Mweemba et al. 2020). Therefore, it can be stated that a non-monetary reward system is important for encouraging innovation and enhancing overall performance with remarkable employee satisfaction.
Analyze of advantages and disadvantages of using incremental pay scales
Incremental pay can be recognized as an appraisal facility that signifies the increasing salary range of an employee based on experience and responsibility. The incremental pay scale mainly decided between a range of minimum and maximum salaries for this particular job role as well as employee performance (Rajapaksa et al.2019). Ideally, employees are appointed in work concerning salary at the bottom of the decided pay scale, and progress towards the top is associated with incremental pay scale and appraisal system depending on experienced role and performance. Seniority, performance, and skill acquisition are key measure that helps to decide the scale of incremental pay for an employee. Appraisal system in the incremental approach is based on a specific tenure such as six months and one year (Mainert et al.2019). In that aspect, the increasing pay scale of employees is associated with completing a working life of nearly six months or above and organizations create a revised pay structure for a particular employee.
Therefore, incremental pay scale of employee contributions to structuring employee salary based on experience and job role as well as its emphasis on providing grant incentives to an employee. Incremental facilities are not only concerned with increasing earning opportunities for employees, but they also encourage departmental developments with measures of appraisal (López et al.2021). Employees are using incremental pay scales as a reference point in their earning and negotiating which leads to raising pay scales comparing their starting salary regarding payroll-related rules of a particular organization. The advantages of the incremental pay scale are helpful in long-term strategic fulfillment and can be used or implemented in two different terms such as individual performance, team performance, or both in a combined form. Incentive schemes help to motivate workers and encourage them to earn more for their needs and fulfill their desires. It helps contribute in an effective way to the betterment of Unilever and encourages the team to receive an incentive.
It results in unequal performance and results in extra payment. The benefits related to incentives are monetary as well as non-monetary incentives which motivate employees in various ways. A few benefits are non-contributory pension plans, company transportation facilities, assistance towards child care, good balance between work and life. It also contributes to achieving personal benefits such as achieving qualifications (Nibusinessinfo.co.uk, 2022). The right system must be chosen to lead the business on the right path and wait for the pros and cons of the business rules so that the impact leads to the sustainable development of Unilever as an organizational example. This gives a transparent system flow and this gives an acknowledgement of the pay calculation in the organization and how the enhancement can be done with a better workflow. The increase in pay scale creates competition among the employees and increases the productivity of Unilever. The competition encourages an effective and competitive workforce. It connects pay and performance as employees focus on the incentives they will also react to the performance towards to task (Laundon et al. 2019). It will cast an effective shadow on the newcomers and lead them to perform better from the first day. It also encourages to development of new innovative ideas to generate a special technique for more efficient production. Qualifying worker praise develops the morale of the employees and increases the revenue of Unilever as it is a good organizational example. This technique helps in identifying the top performer and gives merit pay to employees.
The disadvantage of theincremental pay scales is self-determination which leads to unhealthy motivation and focuses on the self by underestimating and disturbing other employees. Unhealthy competition is also a disadvantage within the organization as it disrupts the working culture and relationships between colleagues (Rai et al.2019). Tension is created between colleagues and destroys the team's performance as many tasks need better performance which is only possible with the help of a team. A better performer is rewarded whereas a poor performer is detained or terminated. This is a major disadvantage that leads to job insecurity and underestimates the knowledge of individuals. The terminated employee may improve the work performed in a specific time interval because there are different characteristics of every human. This hurts the newcomers and they don't feel like pursuing future career growth in the organization and face loyalty issues.
Benefits and challenges of performance appraisal to guide pay progression decisions
Performance appraisal facilities in organizations play a significant role in encouraging employees to improve their capability and involvement to achieve desired roles and salary scales that involve increasing knowledge and skill sets of a particular area in the workplace. The enthusiasm of employees to enhance expertise in a particular area through training comes from an interest in reaching the desired salary scale that can be recognized as a beneficial factor of appraisal facility in the workplace (Mweemba et al.2020). Opportunities for salary increments motivate employees and encourage job satisfaction with agreeableness to handling any kind of workload without any obligation. Fair performance assessments and increasing payment involve employee motivation in the employee management process that contributes to enhancing productivity and profitability with effective employee involvement. Apart from that, it can be analyzed that appraisal facilities in the workplace contribute to employee development concerning the promotion of candidates that helps to resolve governance policies actively.
Challenges in performance appraisal are associated with creating issues regarding the employee appraisal systems due to a lack of evaluation. In this aspect, organizations have to develop significant performance objectives to distribute incremental facilities among the workforce fairly. Comparing appraisal and salary increments with co-workers affects employee trust and beliefs regarding the appraisal systems due to variations in incremental scale and amount. Increasing the maximum amount of salary by confident and best performers is responsible for creating doubt for other employees regarding the fairness and accuracy of incremental policies (Laundon et al. 2019). Sometimes, an employee with low performance and a low rate of increments feels ignorant attribute of the organization regarding comparing their involvement and work performance. Apart from that, it can be stated that incremental attribute in the workplace plays a significant role in creating diversity and differentiation among the workforce leading to employee conflicts. Performance review for revising employee pay scales sometimes is unable to encourage employee involvement due to a lack of performance objectives and a lack of belief in fairness which contributes to affecting employee involvement concerning challenging factors for work performance and organizational effectiveness (Hossain et al. 2018). For example, the average managers spend maximum time in a particular post without any possibility of increments and departmental promotion due to unfairness as well as less concern of employee about increments.
The benefits of pay progression are that the company generates effective revenue and makes the well-being of employees the priority for it is the heart of workflow. It builds a milestone for the employees and reinforces positivity. Many of the sectors in Unliver are dependent on single employees to boost the productivity of the organization. For example, Unilever needs to develop good incentive criteria or guide a pay progression for the development of particular sectors. Pay progression is used in organizations to develop a greater market approach in the competitive world and maintain the position in the existing market. This encourages the employees to earn more and it leads to the potential growth of the organisation employees find a greater progression by attaching towards pay progression. It encourages suitable behavior and implementation of individuals (Cipd.co.uk, 2022). It encourages the pay structure to buy effective work from inside or outside of the income structure. This helps in identifying the good and the unsatisfied performer of the organization and can treat them according to their performance. This also gives a clear idea of the performance in particular sectors so that the company can work in that sector for overall development. This can also be termed a report analysis chart for the development of the organization. It improves individual performance and helps in developing a framework and setting a goal. It also improves focus in the work for the employees and rewards are provided according to the performance of individuals. It also highlights poor performers and encourages the employee to perform well and get rewarded (Croner.co.uk, 2022). The level of competition reaches the highest extent and employees have to work very hard and extend their limits to achieve the target this increases productivity and also benefits individuals. However, it also has to face many health challenges the employees.
The overarching challenge of performance appraisals entirely relies on accuracy. The appraisal may be counterproductive and it is necessary to develop all performance criteria based on predicting the overall performance of goods. According to Kaupa and Atiku (2020), organizations are institutional arrangements that always pursue one common goal to structure and monitor an identified goal systematically and continuously. Organizational readiness also plays a key role in the compensation of employees which is completely based on the documentation factor and for that reason, corporate strategy is one of the approaches that is expected for the mitigation of challenges. The “expectancy theory” can provide remuneration-driven performance management in an organization that delivers performance bonuses in terms of pay progression. In contrast according to Minasyan et al. (2017), in the case of tertiary institutions, stakeholders are classified as sponsors, employers, students, and welfare nations and they are responsible for performance-related pay such as output produced or not. The authors further argue that in most cases, when observing the success of the organizational performance, employer or employees always tends to look at “subjective quantitative issues instead of looking at the evidence in an in-depth qualitative manner”. Utilizing this model boosts employee management of performance appraisal to guide PPD.
Conclusion
There are many benefits of providing rewards to employees in an organisation the benefit is in both aspects the employees as well as the organisation. The challenge created by the organization gives an advantage in providing better incentives to the top performers as well as it also motivates the employees to earn some extra from their general pay structure. The organisation has two ways of providing incentives one is a monetary incentive and the next is a non-monetary incentive both have an effective approach to the incentive of pay structure. The non-monetary incentive generates competition in the workplace because the incentive can be noticed by every employee and this generates a competitive environment. The monetary incentive has a good effect on the performer and boosts the working technique. The appraisal has a bad impact on the organization as well. It generates an unhealthy competitive environment in the organization and leads to disrupting the working culture of the organization. This not only disrupts the working culture but also creates an unhealthy environment in the team. This behavior will have a bad impact on the organizational development and lose the target by not attending to the objective of the organization.
Task 2 – Response to Information Request
Ethical practice refers to a valuable application to managing organizational behavior and working practice. In these aspects, ethical practice includes employee management practice, corporate governance, stakeholder relationships, sales technique, and managing social and corporate responsibility. According to Al-Tarawneh (2020), ethical practice emphasizes developing reward policies for employee benefits to deliver them a satisfied and encouraging job experience for motivating work performance and employee engagement in an organization. Employee reward management practice is associated with managing the decision-making and working process of employees in an organization d for promote transparency and trust between employer and employee. Transparency contributes to providing the ability for employees and stakeholder groups to make rational decisions considering issues and ethical requirements of the workplace.
Key legal requirements relating to pay and reward for implicating non-compliance in the workplace
Legal requirements related to payments and rewards are concerned with providing employee leaving wages, national minimum wages, and equal payments avoiding discrimination and diversity in the workplace. The economic variable pay and reward system focuses on impacting positively workplace culture by influencing employee engagement and loyalty to work and the workplace. Legal requirements regarding payments and rewards are associated with providing employee benefits and developing satisfactory pay structures. As researched by Salguero-Caparrós et al., (2020), employee management policy including health and safety measures can be recognized as a significant element in legal requirements relating to reword and pay of employees. Health and safety policy in an organizational employee management process is concerned with representing a course of action of employers regarding employee benefits that have been specified in health and safety acts and employment acts of a different nation (Badaoui and Walsh, 2022). This policing helps to ensure security for an employee and contributes to establishing trust between employee and employer with job security. Health and safety acts and employment acts help to encourage employees to stay and work effectively in the workplace.
Considering legal requirements for employee benefits and organizational policies Human resource management has to make a decision and guide actions related to the health and safety of the workplace. As cited by Hickland et al., (2020), considering minimum wage acts it can be stated that developing a pay structure is an important factor in creating and maintaining relationships between employees and employers that have to be mentioned in the employee contracts. The pay scale helps to determine wages regarding job roles, performance, experience, and qualifications of hired employees. Employees are generally focused on moving up in pay scale through improving performance and skill set in this significant area that contributes to motivating the involvement of an employee. As stated by Yen et al., (2022), legal obligations regarding base pay and reword help to avoid issues and mistakes in developing a pay structure that contributes to making a pay structure resolving job satisfaction-related issues. The National Minimum Wages Act is concerned with accommodation and educational facilities for the future career development of employees for that it has mentioned national living and educational facilities.
Legal requirements regarding pay and wages also specify individuals writing pay statements for employees, providing pay slips before the date of payments, pay incentives for overtime work, and signifying amounts with reason in case of deduction. As understood by Donia et al., (2020), legal pay requirements considering contractual agreements and part-time jobs have to mansion additional payment amounts and facilities, overtime payments, and employee benefits in contracts. "Equal Pay and the Equality Act 2010" is concerned with the mitigation of discrimination in the workplace regarding pay and reward policies for that it has particularised about providing wages and benefits for every employee without considering religion, gender, and marital status. This act focuses on giving importance to the talent and potentiality of each employee.
Following proper documentation concerning employee working experience, and work performance is important for minimizing employee doubt and complaints regarding the reward facilities (Shin et al. 2022). Concerning legal threats regarding the Equality Act 2010, organizations have to avoid discrimination by providing increments and rewards that can be recognized as a significant legal requirement in the reward framework and pay scale. Investing in automation for performance measurements such as AI technology helps to deliver a fair reward and payroll incremental policy of an organization that contributes to implementing non-compliance factors in reward. In this digital era, gamification technology developed by AI helps to make automation processes in performance measurements concerning fair judgments (crewhu.com, 2020). In this aspect, the gamification process provides an opportunity to overcome each level in an incremental process and achieve desired goals with individual contributions.
Merits and impact of fairness and transparency in practices to reward
Greater corporate governance can be introduced by developing human resource management policies in an organization that contribute to making aware employee about pay and reward practices. According to SimanTov-Nachlieli and Bamberger (2021), greater awareness about pay practices contributes to impacting employee morale by encouraging employees of this organization that influence pay fairly. Transparency about pay and rewards is associated with a proper framework that enables justifying each factor for making consistent decisions. The framework involves benchmarked level pay, issues, and its mitigation plan that is important to motivate the effectiveness of payment system and employment policies as well as employee awareness. Fairly payments enable the elimination of threats in workforce driving and planning with effective employee turnover. As observed by Prunkl et al., (2021), transparency provides the ability to offer competitive pay for overcoming challenges of requirements for attracting the right talent for making a potential workforce.
However, competitive pay might influence relevant-level employees to switch jobs to achieve high-level remuneration that can be recognized as an impact of transparency and fairly payments. Job design consisted of basic pay and a description of roles and responsibilities. Here, an equal pay audit is important for managing a union. As argued by Laundon et al., (2019), job evaluation is concerned with providing employee benefits with basic pay that contribute to influencing employee involvement with fairness in pay and reward practice. Job evaluation helps to ensure each point of the job compares another basis that is concerned about upholding fair pay. Upholding fair pay can help an employer to increase confidence in making decisions considering transparent objectives that enable minimizing bias culture across the organization. Job evaluation includes benchmarking of job criteria that acts as guide work with accurate comparison and draw of fair pay. As understood by O'Meara et al., (2019), job satisfaction is interrelated with payments regarding role and responsibility that has particularised in competitive pay with effective transparency. Competitive pay provides the capability to remit roles and responsibilities regarding requirements from employees by employers.
A remarkable benefit of transparency in workplace payments and reword practice is managing diversity and strengthening the working culture effectively. Corporate governance aims to promote fairness in the workplace by considering payments, rewards, and other employee-related policies (Prunkl et al.2021). Human resource departments play a significant role in reducing administrative burdens by making fair and useful employee-related policies in the workplace. Apart from that, it can be stated that transparency and fairness in the workplace are beneficial for both employees and employers which contribute to managing a workforce with protective policies developed by HRM.
Excessive transparency in employee management practice is associated with sharing unnecessary information regarding rewards and employee policies leading to creating issues regarding overloaded information in controversial working environments. Transparency in the workplace helps to encourage employees' controversial and gossiping nature and is responsible for decreasing employee involvement in working practice. Endless debate among employees affects working environments due to creating misconceptions and arguments among the workforce during working. A high rate of visibility due to excessive transparency plays a significant role in reducing creativity and innovation in the working process as well as executive decision-making (Rai et al.2019). Fear of people's controversies and arguments, employees are discouraged from sharing their perspectives in the decision-making process which affects ethical practice. Hence, transparency regarding rewording can create a chaotic situation in the workplace due to the controversial and argumentive behavior of employees. Getting information regarding the winner of the reward before the celebration discourages other performers and affects healthy competition in the workplace which is associated with unfair performance measurements and reward-providing processes (Prunkl et al.2021). Apart from that, it can be stated that excessive transparency regarding the reward framework leads to decreasing workflow, and employee engagement and affects healthy competition in the workplace contributing to exploring negative attributes to challenges to achieve organizational objectives and vision in reward reward-oriented workplace.
Reference list
Journals
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