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Armstrong's Handbook of Reward Management Practice, 7th Edition

Name: Armstrong's Handbook of Reward Management Practice, 7th Edition
ISBN: 9781398611139

by Michael Armstrong, Duncan Brown

November 2023

Intermediate to advanced

448 pages

12h 25m

English

Kogan Page

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Cover: Armstrong’s Handbook of Reward Management Practice
Praise for Armstrong’s Handbook of Reward Management Practice
Also available by Michael Armstrong
Title Page
Contents
List of Figures
List of Tables
Introduction
Reference
Part One Reward management: An overview
01 The essence of reward management
The meaning of reward managementThe aims of reward managementThe philosophy of reward managementThe practice of reward managementReward management as a formal systemInformal approaches to reward managementReferences

02 Total reward
The concept of total rewardTotal reward definedThe employee value propositionThe links with employee engagement and performanceCritical evaluation of the total reward conceptDeveloping an effective total rewards strategy and EVPReferences
03 Recognition
The nature and use of recognition schemesBenefits of recognition schemesTypes of recognitionDesigning a recognition schemeReferences
04 The changing context of reward management in the 2020s
The importance of contextThe impact of the Covid-19 pandemicLabour shortagesThe cost-of-living crisisThe overall impactReferences
05 Reward management responses, dilemmas and futures
Introduction: Challenges and questionsCommon reward management responsesReward management dilemmasResponses to the reward management dilemmasBuilding back betterCommon components of the people-investment-focused, employer reward management responseReferences
06 Ethical and social dimensions of reward management
The significance of the ethical and social dimensions of reward managementThe ethical dimensionEthical decisions in reward managementReward and social responsibilityThe ESG frameworkReferences
Part Two Reward management: Conceptual framework
07 The factors affecting pay levels
Factors affecting levels of pay generallyThe implications of these factorsFactors affecting pay levels within organizationsReferences
08 How rewards affect behaviour and performance
How people are motivated by rewardThe process of motivationMotivation theoriesFinancial rewardsNon-financial rewardsReward and engagementReward and performanceReferences
Part Three Reward strategy and policies
09 Strategic reward
The nature of strategic rewardReward strategyA critical evaluation of the concept of strategic rewardConclusionReferences
10 Developing reward strategy
Reward strategy development issuesA four-phased reward strategy review processReferences
11 Implementing reward strategy
The aim and nature of reward strategy implementationThe approach to implementationReferences
12 Reward policies
The purpose of reward policiesReward policy areas
Part Four Base pay management
13 The meaning of base pay management
Base pay management definedBase pay definedThe components of base pay managementFormal and informal approaches to base pay managementReference
14 Job evaluation
Job evaluation describedThe process of job evaluationAnalytical job evaluation schemesNon-analytical schemesJob analysis for job evaluationChoice of approach to job evaluationDeveloping a matching schemeAvoiding biasTrendsReferences
15 Market pricing
Market pricing definedApplications of market pricingRequirements for effective market rate analysisJob matchingThe process of market analysisLimitations of market pricingReferences
16 Pay structures
Pay structures definedPurpose of graded pay structuresTypes of graded pay structuresJob family structuresChoice of approachDeveloping a pay structureMinimizing bias in pay structure design and operationReferences
17 Base pay progression
Base pay progression definedHow base pay progression worksApproaches to progressing base payPerformance-related payCompetency-related payContribution-related paySkill-based payChoice of approachReferences
18 Pay determination and reward procedures
The meaning of pay determinationGeneral pay reviewsIndividual pay reviewsReward proceduresReferences
Part Five Bonuses for individual, team and organizational performance
19 Individual bonus schemes
Individual bonus and incentive schemes describedConsolidated and/or one-off rewards for individualsCriteria for a bonus schemeBonus scheme measuresIntroducing an individual bonus schemeReferences
20 Bonuses related to team performance (team pay)
Team pay definedHow team pay worksRequirements for team payAdvantages and disadvantages of team payDeveloping team payReference
21 Bonuses related to business performance
How and why rewards should be made for business performanceTypes of schemeReferences
Part Six Employee benefits and wellbeing
22 Employee benefits
Employee benefits: Definition, types and purposeThe current employee benefits scenePensionsOther types of employee benefitsFlexible benefitsCommunications and total reward statementsReferences
23 Financial wellbeing
The meaning and importance of financial wellbeingFinancial wellbeing benefits and supportWhat should employers do?Introducing financial wellbeingReferences
Part Seven Rewarding special groups
24 Rewarding chief executive officers and other executives
The remuneration packageRemuneration committeesCEO remuneration considerationsDetermining the remuneration of CEOs and directorsReferences
25 Rewarding sales and customer service staff
The role of sales and customer service staffRewarding sales representativesRewarding customer service staff 322References
26 Rewarding professional and specialist workers
Who is involved?What motivates professional and specialist workers?How should they be rewarded?References
27 Rewarding front-line workers
Factors affecting the pay of front-line workersMethods of paying front-line workersIncentive schemes for front-line workersReferences
28 International reward
The scope of international reward managementThe international sceneInternational reward strategyInternational reward management objectivesGlobal reward management concernsDesign of international reward systemsThe convergence or divergence of international reward management policy and practiceRewards for expatriatesReferences
Part Eight Managing reward
29 Evidence-based reward management
Evidence-based managementEvidence-based reward management describedReward analyticsReviewing reward system effectivenessEmployee surveysEvaluating the impact of rewardReferences
30 Managing reward systems
Controlling rewardReward forecastsReward budgetsCosting reward processesMonitoring rewardEvaluating rewardAssessing added valuePay reportingCommunicating reward information to employees
31 Managing pay gaps
Pay gaps explainedThe gender pay gapThe ethnicity pay gapThe disability pay gapReferences
32 Managing reward risk
The nature of reward risksHow to manage reward risksReferences
33 Roles, responsibilities and skills for reward professionals and line managers
The challenge for reward professionalsReward professionals: Roles and skillsLine managers’ responsibilities for rewardReward consultants: Why use them?References
Conclusions
The overall approach to reward managementSignificant changes in the approach to reward managementThe ESG frameworkThe employee value propositionThe role of the reward professionalThe role of line managers in reward managementReference
Index
Copyright Page

Content preview from Armstrong's Handbook of Reward Management Practice, 7th Edition

07 The factors affecting pay levels

Factors affecting levels of pay generally

The factors that influence pay levels and affect pay decisions generally are:

the nature of the external labour market;
classical economic theory (the economic ‘laws’ of supply and demand);
the labour theory of value;
human capital theory;
efficiency wage theory;
resource dependency theory;
the effort bargain;
agency theory;
tournament theory.

The external labour market

Markets consist of buyers and sellers. The efforts of the ...

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Armstrong's Handbook of Reward Management Practice, 7th Edition

by Michael Armstrong, Duncan Brown

07 The factors affecting pay levels