7HR03 Strategic Reward Management CIPD Level 7 Assignment

7HR03 Strategic Reward Management CIPD Level 7 Module 7 Assignment Sample UAE

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In this specialist unit, you will learn how to plan, implement and evaluate consistent reward structures in order to support any strategic business goals. It focuses on the role of rewarding people for their efforts so they can be attracted with motivation at work towards achieving company objectives as well as an individual success within teams or organizations overall.


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The learning experience is designed around three key pillars – planning strategies; implementing effective programs that are aligned strategically across team members’ needs structure-wise while also being customized based on feedback loops from that involved-and finally evaluating these initiatives against one another over time.

Different financial and non-financial benefits will be applicable depending on the organizational context, but these must always a fair. The unit contains all of the elements required to design an introduction that is equitable in nature while also being beneficial for employees as well other people who work within or around your company’s policies & practices associated with rewards strategies.

CIPD Level 7 Module 7 Assignment Task 1: Learn the key factors that influence the design of reward policy.

There are three main key factors that influence the design of reward policy.

  • The company’s need and expectations: how much it’s willing to pay, and the variety of rewards employees will want and be satisfied with. 
  • The employee psychology or personal preferences: what they prioritize when it comes to incentives for not just themselves but their families. 
  • Organizational culture: how different organizations work together and pull together in times of stress.

With the economy at its best, some business owners are opting to reward their employees with lavish gifts. However, this strategy may not be productive in the long run. Studies show that while cost-effective rewards reap more satisfied customers, if they are too generous some employees may find themselves deeply dissatisfied or feel undeserving of any pay raise.

Understand what you want your company’s culture to represent and decide if luxurious rewards work within it. Brainstorm for potential ideas on consistent visuals you can use to enhance employee satisfaction with an amount of money versus promos they could get elsewhere. 

CIPD Level 7 Module 7 Assignment Task 2:  Critically justify the value of benchmarking and reward strategy choices.

Benchmarking can be a very valuable tool for assessing risks and determining priorities. Benchmarking helps us to know how much priority we should assign to different elements of a system by looking at what other systems need, the necessary level of operations that are required, and whether or not there is room in the budget to cover those needs. This information is very valuable because it tells us where our weak points are so that we can work on them proactively before they create future problems. 

The value of benchmarking and reward strategy choices is it gives a clear picture on what your organization is doing and why. This allows an organization to make informed decisions and fix any issues they are having. Benchmarking also helps find different strategies to use for reward, so future rewards can be higher quality with fewer flaws. The proper research will ensure the organization has the best options available for their goals which may have been unclear before being researched or before taking advantage of all the opportunities available to them. With this understanding, decision-makers at the company will be able to continue achieving their goals well into the future without any hiccups in their plan that could have been avoided with better information at hand.

CIPD Level 7 Module 7 Assignment Task 3: Develop a depth understanding of the total rewards approach and the impact of base and incremental pay and benefits in attracting and motivating employees.

The total rewards approach is more than just salaries and benefits – it also includes the motivation an employee receives throughout their careers. With this approach, employees will not feel like they are working for a company full-time with no intention of improving mobility within the company. Employees want to feel valued by the organization they work for, so companies need to adapt to meet what employees desire.

This comprehensive approach aims to enhance organizational performance, in part by addressing an employee’s need for a rewarding job in a compelling organizational culture. Total rewards refer to the full spectrum of what employees receive from their employer in addition to cash compensation – from expensing massages and meals when business permits, to asking staff members how they’re doing when they walk into work each morning.

Unfortunately, it is often too simplistic or even misleading to add up the costs of various elements of reward programs and then add on some sort of predetermined cost-of-living adjustment.


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CIPD Level 7 Module 7 Assignment Task 4: Assess the benefits and challenges of performance appraisal and its links to pay progression.

A performance appraisal should never be seen as something that only takes place once per year, but rather should occur continually throughout the year so there are ongoing conversations about where each individual can improve or excel in different areas of their work. This ongoing conversation could very well lead to increased responsibilities and acknowledgment of personal contribution which would ideally increase one’s pay. However, even if an annual review is necessary for legal purposes, it doesn’t have to revolve around finances at all but could focus on professional development opportunities available within the organization that might help one grow. A bonus could very well follow from this recognition-based appraisal process, too.

Performance appraisals are an effective means of assessing an employee’s performance and identifying various developmental needs, and they allow employees the opportunity to discuss their growth with their manager.

A challenge with appraisals is that workers may be uncomfortable conducting self-assessments. Workers carry emotions such as low self-esteem or fear of appearing less competent than they believe themselves to be, and these emotions can lead even the most performance natural person to show signs of low confidence or defensiveness during a performance appraisal meaning they will not receive meaningful feedback for their development. 

CIPD Level 7 Module 7Assignment Task 5: Examine the ethical issues that may arise from forms of reward and how the principles of transparency and equity are the cornerstones of responsible and effective approaches to reward.

Human beings are conditioned to react positively to rewards. When this motivation is not properly leveraged, it can introduce power imbalances that produce inequitable situations in which people are rewarded or disciplined based on arbitrary differences. While extrinsic forms of reward should be used judiciously, they should not be avoided altogether because intrinsic desires for recognition are often driving to engage in rule-breaking behavior. Instead, an intuitive method of using extrinsic rewards is the development of systematized principles that balance transparency and equity so there remains a realistic hope for success while discouraging abuse.


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Rewards and incentives are often used in the workplace. It’s important to note that rewards and incentives may not produce great results; they can be either beneficial or detrimental depending on the people who receive them and how they’re used.

Transparency is a necessary ingredient for any rewarding system to achieve desired outcomes because employees need to know what their organization’s values and expectations are in order to feel properly motivated by it. When we don’t know what causes our reward or when we receive our reward arbitrarily or well before its anticipated time, this undermines trust which in turn undermines motivation to work well.

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