Business Performance Level: Fairness in Reward Allocation
Objectives This assessment item relates to course learning outcomes numbers, 1, 2, 3, 4 and 5 as stated in the course profile. Purpose The primary purpose of this assessment is to assist students develop skills in use of human resource management (HRM) principles, theories and models in the analysis of fairness/justice issues in reward management. The assignment task encourages exploration of the importance of organisational fairness/justice, various factors influencing (un)fairness and how fairness can be achieved in reward allocation.
The second purpose of this assignment is to give students the opportunity to enhance their research, analysis, critical thinking and written communications skills including the identification and development of an argument. Before starting this assessment, please read the marking criteria (at the end of this document and also available on the course profile) and refer to Academic Learning Centre and its Moodle site for the guidelines regarding writing academic essays. Description Assessment task 3 requires the writing of an academic essay.
The essay should be an ‘argumentative essay’, and must therefore contain an argument that is used as the structuring element of the paper. The assignment is based on a discussion piece that highlights a number of points such as the importance of fairness in reward allocation, factors leading to fairness, and the consequences of (un)fair reward distributions. The purpose of the essay is to identify the roles of fairness in reward allocation and related influences on employees’ work outcomes. Students are expected to engage in extensive research within the academic literature relating to human resource management. Details This assignment MUST be a properly constructed academic essay. It MUST NOT contain headings and sub-headings.
Refer to the university’s guide for writing. You are required to follow this guide to structure your essay. The assignment should contain a coherent, but necessarily restricted review of the academic literature on HRM topics in question. The literature review should be integrated into the assignment and not be a separate section. A reference list formatted in the prescribed Harvard style is compulsory. Further information regarding formatting of assignments and other information is available at This assessment item involves researching your assigned topic to enhance your understanding of and utilisation of academic literature. Whilst you should AVOID using only textbook, the prescribed textbook for the course should be cited in regard to broad HRM principles. You will be expected to present information and evidence from, and cite, at least fifteen (15) relevant peer reviewed journal articles (absolute minimum requirement). These do not include other academic references such as books, conference papers, and book chapters and so on. Although you can cite these other academic references in your essay, they will not be counted as part of the 15 journal articles. Refer to your recommended readings for examples of academic journals. While you can cite these recommended references, it is expected that you find fifteen (15) peer reviewed journal articles not listed in the course materials.
The quality and number of citations will demonstrate the breadth and depth of the literature used to support your arguments. Your marker is interested in the analysis that you have developed from YOUR review of the literature and how well you use the literature to discuss the topic. AVOID presenting a descriptive account ONLY of your readings. What is required in this assessment is a critical evaluation of the academic literature as it relates to the specific details of the case study. Your marker is also interested in the conclusions that you reach by evaluating the literature and the case scenario. Tasks Write an essay titled “Fairness in Reward Allocation” to critically discuss the following questions: How important is organisational fairness (or organisational justice) in compensation management? What roles does organisational fairness (or organisational justice) might play in reward allocation? What factors might influence the implementation of fair human resource management practices in reward allocation? What influences can fair reward distribution have on employees’ work outcomes (e.g., job attitudes and work behaviours)? Your essay should be a properly constructed academic essay. It should contain an effective introduction, body, and conclusion. The introduction should introduce the essay and include your argument. The body should present the evidence you have collected to support your argument, and the conclusion should restate your argument, summarise the evidence and make a conclusion regarding your argument. You are required to support your argument with appropriate theoretical discussion and references. The essay should contain a coherent, but necessarily restricted review of the academic literature on the Human Resource Management topic in question. The literature review should be integrated into the essay, not a separate section. Advice regarding formatting of the essay can be found at the link above.
Do not use headings or include an abstract. A reference list is compulsory. This assessment item involves researching your assigned topic to enhance your understanding of Human Resource Management (HRM) concepts and utilisation of academic literature. AVOID using only textbooks, however, the prescribed textbook for the course should be cited in regard to broad HRM principles. You will be expected to present information and evidence from, and cite, at LEAST fifteen (15) relevant peer-reviewed, academic journal articles (twelve relevant and well applied academic articles will gain a pass mark for this criterion). Refer to your recommended readings for examples of academic journals. While you can cite these you must find fifteen (15) journal articles not listed in the course materials. Your citations will show the breadth and depth of the literature used to answer the questions. Your marker is interested in the analysis that you have developed from YOUR review of the literature and how well you use the literature to respond to the topic. HRMT20024 – Managing Human Resources
Title: Fairness in Reward Allocation
Subject: Business and Marketing
Course Code:
Writing Level: Master
Name of Student:
Name of Lecturer:
Date:
The greatest desire of every employee in any Company is the concern of being rewarded. There are several ways of rewarding an employee. Some of the ways include; promotion, bonuses, tours and seminar attendance and so many more. Promotion of an employee impacts greatly on his or her life(MarÃn, 1985). All employees are guaranteed to be promoted. They always strive to attain higher levels. Therefore, great incentives are necessary to foster for this.
The method chosen to carry out this activity should be considerate, reasonable and fair in the sight of all employees. All employees are equal and deserve equity in rewards and resource allocation (Leung & Bond, 1984). When promotion and dealings with employees are not fairly done, the employees will be demoralized. As a result, their performance will be lowered. The Company will thus lose much due to this.
It is of great essence for every Company to put in place measures that govern all the incentives the Company intend to conduct. Just as codes of ethics are clearly outlined by almost all Companies, the modes of promotions and any other incentives must be well outlined. In this study, a deeper look into the idea of fairness in reward allocation is done. In the study, importance of conducting all Company incentives will be ventured into.
Companies in dealing with employees carry out various incentives. The incentives are meant to promote performance within the Company. When these incentives are successful, the Company will at long run make hefty benefits(Witt & Nye, 1992. Employees feel their worth to the Company and will, therefore, do their best to ensure that the business succeeds. It is, however, unexpected by any person that when it comes to the reward of their labor, the Company favors some employees. This idea is the burden that many employees face.
It is expected that after a Company has made profits, employees who were behind the success should be rewarded. When this is not the case, employees are demoralized. They feel devalued by the Company. There efforts and tireless commitment are taken for granted. Employees expect rewards such as bonuses, increase in salary based on performance, profit sharing, job promotion and even attending workshops and seminars. In other cases, employees are rewarded unfairly. It is this unfair reward that annoys employees the most.
When performance level is not used as a parameter in rewarding employees, they become demoralized. It becomes a problem particularly if a set of rules governing rewards of employees is not provided. Employers in such cases will prefer to reward unfairly those employees close to them. Unfair criteria such as favoring gender, tribe, race, color or even nationality are used while ignoring the employee who has the highest performance (Hui, Triandis &Yee, 1991).
Several researches have been done to show how employees and the Company at large are negatively affected by unfair rewards. In situations where unfair dealings were reported, the Company was found to have lost not only the revenue but also the talented employees. The main concern in terms of reward to employees that frustrate them is reported to be the unfair promotion. Unfair promotion violates the rights of deserving employees (Netemeyer, Boles, McKee & McMurrian, 1997).When their efforts are ignored, they undergo frustrations.
Fair rewards to employees is important. First, it affects the employees on personal levels. When fair reward is done, employees’ attitude will be positively enhanced. They will feel recognized. There works become pleasant to their sights. Once appreciated, they strive to go even extra miles. If possible, they search for modern technologies themselves, advance in knowledge and ensure they are up on peak for high performance. Furthermore, employees feel dignified and work to uphold their reputation to stay up for the game.
Secondly, when fair treatment in reward is conducted, the attitude of employees towards the Company changes (Greenberg, 1987). No negative thought is registered. Employees feel contented in the work place. They will tend to love their work, the Company and employers. As a result, employees work to realize the goals of the Company. Besides, they also understand the high reputation of the Company. Therefore, all efforts are put to uphold and protect the Company’s good reputation. As had been once stated, the Company’s brand rely heavily on the employees’ brand and attitude(Barrett-Howard & Tyler, 1986).
Level and nature of treatment of employees in a Company determines if the Company will retain the employees. All employees love working in places where their hard work is appreciated. Rewarding their labor boost their morale. Particularly if the method of rewarding used is viewed to be fair by the employees. For positive performance to be realized, something must be done in the minds of employees. Attitude must be changed to have a positive mind. The positive mind must be directed to the production of the Company.
It is important to note that when unfair ...