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HRMA Level 4 Unit 5 Mar 2020

The document discusses the integral relationship between rewards and human resource strategy in multinational distribution businesses, emphasizing the importance of both financial and non-financial rewards in attracting and retaining a diverse workforce. It highlights how cultural and regional differences shape reward strategies and the influence of internal and external factors on remuneration. Additionally, it addresses the role of internal stakeholders in determining reward levels and the implications of reward legislation.

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Bright Kumwenda
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46 views3 pages

HRMA Level 4 Unit 5 Mar 2020

The document discusses the integral relationship between rewards and human resource strategy in multinational distribution businesses, emphasizing the importance of both financial and non-financial rewards in attracting and retaining a diverse workforce. It highlights how cultural and regional differences shape reward strategies and the influence of internal and external factors on remuneration. Additionally, it addresses the role of internal stakeholders in determining reward levels and the implications of reward legislation.

Uploaded by

Bright Kumwenda
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Question 1

Discuss the relationship between rewards and human resource strategy in a multinational distribution
business.
(20 marks)

The relationship between rewards and human resource strategy (HRS) in a multinational distribution
business is symbiotic, as rewards are instrumental in achieving strategic HR objectives like attracting,
retaining, and motivating a diverse workforce. Rewards align employee behaviors with organizational
goals, ensuring operational efficiency and productivity in a global, competitive landscape.

In such a business, financial rewards (e.g., competitive salaries, performance bonuses) ensure market
competitiveness, particularly in high-demand regions. Non-financial rewards (e.g., career development
opportunities, recognition programs) cater to intrinsic motivators, which are vital for fostering loyalty
and engagement.

Cultural and regional differences significantly influence reward strategies. For instance, flexible working
arrangements might be a priority in developed countries, while healthcare benefits may resonate more
in developing regions. A well-integrated reward system supports the HRS by addressing diverse
workforce needs, enabling global consistency while allowing for local customization.

Question 2

(a) Identify TWO non-financial rewards.


(8 marks)

1. Flexible working arrangements (e.g., remote work or flexible hours).

2. Opportunities for career development (e.g., training programs or mentorship initiatives).

(b) Suggest how non-financial rewards can drive employee engagement.


(12 marks)

Non-financial rewards contribute to employee engagement by addressing intrinsic motivators and


enhancing job satisfaction:

1. Flexible working arrangements: These improve work-life balance, reducing stress and boosting
morale. Employees who feel their personal needs are valued are more likely to remain
committed.

2. Career development opportunities: Investment in employee growth fosters a sense of purpose


and belonging. For example, offering training programs helps employees feel empowered and
aligned with organizational goals.

3. Recognition programs: Public acknowledgment of achievements reinforces a sense of value,


motivating employees to contribute further.

These rewards build an emotionally invested workforce, resulting in higher productivity and reduced
turnover.
Question 3

(a) Describe ONE internal factor and ONE external factor that could influence reward and
remuneration.
(8 marks)

 Internal factor: Organizational profitability – The financial health of a company determines its
ability to offer competitive salaries and benefits. For instance, a profitable company may
introduce performance-based bonuses.

 External factor: Labor market conditions – High demand for specific skills can drive wages
upward. For example, in a competitive financial sector, companies may increase pay for data
analysts to attract top talent.

(b) Discuss, with the use of examples, how internal stakeholders can determine levels of reward and
remuneration in the financial sector.
(12 marks)

Internal stakeholders like HR teams, executives, and finance departments influence reward strategies:

 HR teams analyze market trends and ensure alignment with industry standards. For instance,
benchmarking compensation ensures competitive packages for financial analysts.

 Executives set strategic priorities, linking rewards to performance metrics such as revenue
generation. For example, senior management may approve bonuses for meeting profitability
targets.

 Finance departments ensure budgets are adhered to while supporting reward competitiveness.

In the financial sector, this collaborative approach ensures rewards are attractive and sustainable,
enabling the retention of high-performing employees.

Question 4

(a) Describe TWO sources of reward data.


(8 marks)

1. Salary surveys: Industry reports from firms like Mercer or PayScale that provide benchmark data
for various roles and locations.

2. Internal organizational data: Historical records on employee pay, benefits, and performance
metrics.

(b) Discuss the relationship between salary surveys and budgets.


(12 marks)

Salary surveys provide external benchmarks for compensation, enabling organizations to remain
competitive in the job market. However, aligning these benchmarks with internal budgets is critical. For
instance, if a salary survey indicates a 10% industry-wide pay increase, the organization must evaluate
whether this aligns with its financial capacity.

Balancing external competitiveness with internal affordability prevents overspending while maintaining
employee satisfaction. Effective use of salary surveys ensures rewards align with market trends without
compromising organizational sustainability.

Question 5

(a) Explain ONE advantage and ONE disadvantage of introducing legislation relating to reward and
remuneration.
(8 marks)

 Advantage: Legislation ensures equity and fairness, such as narrowing the gender pay gap
through mandated transparency.

 Disadvantage: It reduces flexibility for organizations, potentially hindering their ability to adapt
rewards to specific business needs or regional circumstances.

(b) Suggest why no country has passed a law that ensures that all workers in a country are paid the
same whatever their job may be.
(12 marks)

Uniform pay disregards variations in skills, responsibilities, and market demand, leading to inefficiencies.
For instance, a surgeon’s specialized training and critical responsibilities justify higher pay than entry-
level roles. Equal pay laws would remove incentives for skill development and productivity, negatively
impacting innovation and economic growth.

Moreover, implementing such a system would be impractical, as it fails to account for economic diversity
across sectors and regions, creating further disparities and inefficiencies in resource allocation.

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