Learning Outcome 1 The learner will: Understand the purposes and benefits of performance and reward management. Indicative Content

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1 Unit Title: Performance Management and Reward Unit Reference Number: M/505/7118 Guided Learning Hours: 210 Level: Level 6 Number of Credits: 25 Unit purpose and aim(s): This unit aims to give learners a critical understanding of: the purposes and benefits of performance and reward management how and reward fit with the contexts of the organisation how to design and implement and reward processes appraisal schemes the evaluation of and reward how to promote fair treatment the handling of performance issues through conduct and capability Learning Outcome 1 The learner will: Understand the purposes and benefits of performance and reward management. 1.1 Appraise the aims of an organisation s performance and reward management systems and People as an organisation s biggest source of competitive advantage The contribution of to the continuous development of employees, teams and the organisation The purposes of reward (recruitment, retention and motivation). 1.2 Recommend how to promote excellent performance in a range of different organisations Definition of discretionary behaviour and how it affects employee and organisational outcomes How the relationship between ability, motivation and opportunity can affect organisational performance and how this can be managed. 1.3 Critically examine the psychology of performance management and reward Reward psychology: The different mental approaches to employee reward taken by economists, psychologists and administrators. Motivation theories content and process models - expectancy theory, fairness, felt fairness and the line of sight. The Big Idea concept and its relevance to employee psychology The use of and reward to show people that they are valued.

2 1.4 Assess how to use an appropriate combination of hard and soft approaches to in order to achieve successful HR outcomes Hard HR systems (e.g. contribution based pay, business planning, etc.) and soft HR issues (e.g. values, motivation and behaviour). Learning Outcome 2 The learner will: Be able to evaluate how and reward fit with the internal and external contexts of the organisation. 2.1 Critically evaluate the influence of the external environment on and reward. 2.2 Assess how the internal context influences the choice of performance management and reward strategies The influence of the Political, Economic, Social, Technological, Environmental and Legal contexts on and reward The need to manage forces created by external environmental factors and how best to formulate appropriate policies procedures and practices The effect of mission, values, business plans, systems and organisational culture on and reward Human capacity as individual (the member of staff) and collective (team, department and organisation) Alignment of activities and behaviour of staff with the wider organisational mission, values strategy and business plans. 2.3 Assess how best to integrate performance management and reward processes with other personnel and development activities within the organisation Problems and issues associated with the integration of with reward Managing the horizontal integration of performance management and reward processes with other personnel and development activities especially resourcing and staff development Managing the tension between as a developmental process and as a basis for rewarding staff through performance related pay decisions.

3 Learning Outcome 3 The learner will: Know how to design and implement appropriate and related processes. 3.1 Recommend and justify appropriate best fit and reward systems and The different ways to manage performance by creating appropriate bundles of related and reward processes owned and understood by managers, teams and individuals Manage team and not just individual performance Define levels of competence/capability The use of to identify learning needs and to encourage and support self-managed learning Examination of the nature, advantages and disadvantages of pay-for-performance systems. 3.2 Critically evaluate and apply appropriate methods for measuring performance Methods for defining, measuring, recording and communicating about performance The case for and against rating performance and methods of rating Choosing an appropriate method to match individual and organisational needs. 3.3 Design and apply High Performance Working policies, procedures and practices The principles of High Performance Working (HPW) and their application to contemporary organisations. 3.4 Explain the nature and operation of team reward and evaluate its potential and drawbacks The choice and operation of team rewards compared with individual rewards Managing the Implementation of appropriate team reward systems. Learning Outcome 4 The learner will: Know how to design, implement, evaluate and maintain an appraisal scheme.

4 4.1 Design and critically evaluate effective appraisal processes for a range of different organisations The characteristics of an effective appraisal system The design, implementation, evaluation and maintenance of appraisal frameworks. 4.2 Determine the competencies required to undertake effective appraisals The characteristics of good performance and development review, and planning discussions Objective setting for performance and development Providing the resources necessary for good performance Measuring and evaluating performance Providing constructive feedback Drawing up and agreeing performance improvement and personal development plans. 4.3 Evaluate the benefits and limitations of 360- degree feedback mechanisms and recommend the design, implementation and evaluation of suitable systems and The benefits and pitfalls of 360-degree feedback The design, implementation and evaluation of 360-degree feedback mechanisms. Learning Outcome 5 The learner will: Know how to evaluate and introduce and reward policies, procedures and practices to ensure they promote fair treatment. 5.1 Evaluate the benefits of fair and ethical and reward processes and determine how best to implement these The benefits of applying fair and ethical performance management and reward processes that offer equal opportunity, manage diversity and avoid discrimination Different techniques of job evaluation, with their advantages and disadvantages Discrimination and Pay structures job families, bands, incremental progression Direct and indirect discrimination, particularly in appraisal and reward The causes of unfair treatment and remedies to

5 discourage discriminatory practice. Learning Outcome 6 The learner will: Be able to make appropriate recommendations to line managers on handling performance issues by means of conduct and capability 6.1 Compare and contrast ways of dealing with under-performers through appropriate disciplinary Assessment of underperformance and the design and use of systems and procedures to promote corrective action for a range of disciplinary issues. 6.2 Distinguish between capability and conduct and assess how best to ensure equity and fair treatment when managing disciplinary situations Determining reasons for underperformance including capability as a result of ill health Managing a range of disciplinary issues including capability and conduct through appropriate systems and procedures to ensure equity and fair treatment. Assessment: Assessment method: written examination (unless otherwise stated). Written examinations are of three hours duration. All learning outcomes will be assessed. Recommended Reading: Please refer to the Tuition Resources section of the Members Area of the ABE website ( for the recommended reading for this subject.