Module Title Module Code Semester of Delivery Mandatory/Elective/Option Level Credit Points Reward Management 25-6051-00L See Module Information Table See Module Information Table 6 20 Assessment Mode Weighting CWEX100 Pre-requisites Co-requisites Managing People (L2) Class Contact Hours Average Weekly 1.5 Class Contact Hours Average Weekly 5 Module Leader Faculty Module Banding Approval Status Paul Banfield Organisation and Management A Validated Rationale This module is primarily aimed at students pursuing the Human Resource Management studies route at level 3 as an element of study required for Graduate Membership of the Institute of Personnel and Development. It also reflects the critical role played by rewards of all kinds in the management of employee performance. The module will cover the theory and practice of reward management as a specialist area of human resource management. It will enable students to analyse, design, implement and evaluate reward systems in the context of varying organisational needs. Summary of Aims 1 To develop a comprehensive understanding of theory and practice in rewarding people in organisations. 2 To evaluate the contribution of reward management to the achievement of business objectives. 3 To enable participants to design, implement and evaluate reward systems in different organisational environments. 4 To develop an ability to provide professional advice to managers on the operation of payment systems and associated rewards. Anticipated Learning Outcomes On completion of this module, students should be able to: 1 Explain the theoretical foundations of organisational reward strategies. 2 Recognise the issues involved in selecting and designing a reward system. 3 Review the methods and objectives of different forms of payment system. 4 Identify the contemporary issues and trends in reward techniques and philosophies. 5 Identify the international influences on reward management practice. 6 Research and prepare for an individual or collective pay negotiation. 7 Advise on the development of reward practices which avoid unfair discrimination, with particular reference to equal value and other issues associated with fairness and consistency. 8 Advise on the development of employee benefit programmes. 9 Distinguish between the contributions made by extrinsic and intrinsic motivators. 10 Contribute to the administration and control of an organisational reward system. Assessment and Feedback Strategy Students will be expected to deliver seminar papers, either individually or in small groups, and will receive feedback with regard to content and process. Assessed coursework will be on assignments, which may be individual of group based, which focus on the application of theory and research findings to the analysis of a reward management issue. The submission date for the coursework will be delayed sufficiently to allow for acquisition of necessary content but will be early enough to provide for feedback before the end of the taught programme. There will be a three hour examination. Module Assessment Criteria Learning Outcome All Outcomes Assessment Criterion Assignment and exam. Outcome 1 Assignment and exam. Outcome 2 Assignment and exam. Outcome 3 Level descriptors fail Writes all the candidate knows about the subject without addressing the question set. Confused, disorganised, little evidence of reading, poorly structured and contains enough inaccuracies to suggest only a superficial grasp of the area. Sketchy knowledge of motivation. Confuses different theories. No real argument. PASS Answers the question set, but descriptive with minimal analysis. Evidence of some reading, but more emphasis on the normative than research-based literature. Little personal reflection. 2.2 Presents a range of relevant information. Compares and contrasts, but without answering the “so what?” questions which arise. 2.1 Analytical and comprehensive in coverage. Evidence of wide reading and use of material drawn from journals with academic credibility. Personally insightful. First Able to synthesise material from a range of sources. Takes a generally critical stance and proposes innovative solutions and/or ways of looking at the issue. Convincing. Able to describe classical/human relations theories of relevance to question. Some evidence of reading. Shows knowledge of process theories. Evaluates, to a limited extent, contributions of various theories Applies theories analytically to the issue in the question. Uses research rather than anecdotallybased literature to provide evidence in support of arguments. Sees system choice as unproblematic. Little knowledge of alternatives. Describes, but does not compare, a limited range of alternatives. Depends heavily, perhaps, on systematic approaches. Breaks out of the three methods straitjacket and develops a more integrated approach. Assignment and exam. Poor knowledge of payment systems. Confusing presentation of limited range. Able to recognise time-based and contribution-based methods. Some understanding of issues associated with payment at different organisational levels. Gives due weight to systematic, contingent and participative approaches. Able to apply them to the issue, but without seeing some of the implications of each. Understands some of the problems associated with popular payment methods. Able to compare strengths of selected methods. Uses the theories in novel ways. Able to criticise, not just in a destructive way. Presents a set of arguments which capture the essence of the issue and produce an innovative answer. Extensive and critical consideration of the research. Original application of the ideas available with suggestions for new approaches. Outcome 4 Exam. Fails to recognise key trends in techniques. Does not understand the role of reward philosophies. Describes the distinction between old and new orthodoxies. Able to recognise the link with organisational strategy. Provides evidence of the existence of change. Identifies the areas of most and least significance. Places trends in the context of prescriptions from various “authorities”. Able to relate the models of change to evidence of researched organisational experience. Outcome 5 Not specifically assessed Rigorous analysis of wide range of methods. Methodical buildup of argument to select a particular system for specific circumstances. Sees reward system application in a holistic way. Able to suggest new ways in which existing methods can be used. Capable of designing hybrid systems to suit particular requirements. Recognises the non-linear nature of reward system trends. Assesses trends from different stakeholder viewpoints. Learning Outcome Outcome 6 Outcome 7 Outcome 8 Outcome 9 Outcome 10 Assessment Criterion Not specifically assessed Assignment and exam. Not specifically assessed Assignment and exam. Level descriptors fail PASS 2.2 2.1 First Sketchy and narrow understanding of the need for fairness and consistency. Knowledge of basic legal requirements. Can describe simple job evaluation methods. Understands the distinction between analytical and non-analytical job evaluation. Able to discuss the change in job evaluation methods involved in basing the process on competencies. Able to relate the techniques designed to provide consistency and fairness in reward to appropriate theories. Understands the perceived drawbacks with job evaluation. Discusses concepts of fairness and consistency in a philosophical and ethical framework. Simplistic view of cash as the only motivator; no conception of the role of work content. Describes typical extrinsic and intrinsic motivators. Able to point to some key features of each. Understands the concept of job redesign. Is able to identify the key elements in the design of work which are said to lead to high performance. Discusses the theoretical underpinnings of job design. Able to model the process. Locates job design as primarily a psychological concept and is able to offer a sociological critique. Integrates psychological, sociological and engineering approaches to job design. Not specifically assessed Assessment will be based on the degree to which: 1 2 3 4 5 6 7 Theory is used in the analysis of reward management issues. A critical stance is taken. Evidence is provided of understanding of alternative approaches to reward management. There is a recognition of the debates which underpin the area. Diagnostic skills are demonstrated. Arguments are supported by evidence. Innovative solutions are proposed to problems posed. The above criteria relate to both coursework and examination outcomes. However, it is recognised that the constraints associated with an unseen, time-constrained assessment mean that expectations about examination outcomes in terms of meeting the criteria will be less onerous. (As an example, students will be expected to identify the source of concepts used in answering an examination question but not required to reference their sources to the same standard as would be required in coursework). Teaching and Learning Strategy and Methods The module content will be delivered in a series of lectures linked to guided reading. Each lecture will be further developed in a seminar. Two learning methods will predominate in the seminars. In the early weeks of the programme, group exercises will be used primarily to explore issues associated with Anticipated Learning Outcomes 1, 2, 7 and 9. In later weeks, students will present short papers on other reward management topics selected for their topicality and/or their key position in terms of understanding the area. Indicative Content Extrinsic and intrinsic rewards; reward components and their inter-relationship. Psychological and economic theories relating to reward management practice. Selecting and designing pay systems; systematic, contingency and stakeholder approaches. Pay structures; the use of job evaluation. Performance management and performance-related pay. Competency-related and other contribution-related pay systems. Individual, group and organisation-wide pay arrangements. Pensions and other employee benefits; flexible benefits systems. Non-financial rewards. Work redesign and the role of intrinsic motivators; the psychological contract. Managing and controlling the reward system; the legal framework. Auditing the reward system; gathering internal and external labour market data; different views of the nature of reward management effectiveness. Indicative Reading List Armstrong M (1999), Employee Reward, IPD Armstrong M and Murlis H (1998), Reward Management: A Handbook of Remuneration Strategy and Practice, Kogan Page Kessler I (1995), Reward Systems, in Storey J, Human Resource Management: A Critical Text, Routledge Pendleton A (1997), Characteristics of workplaces with financial participation: evidence from the WIRS, Industrial Relations Journal, Vol 28, No 2, June Poole M and Jenkins G (1998), Human resource management and the theory of rewards: evidence from a national survey, British Journal of Industrial Relations, Vol 36, No 2 Thorpe R and Homan G, (2000), Strategic Reward Systems, Financial Times/ Prentice Hall Williams R (1998), Performance Management: Perspectives on Employee Performance, International Thompson Business Press Wood S (1996), High commitment management and payment systems, Journal of Management Studies, Vol 33