REPORT

Reward Management Report: The case of Harding Trust

Summary

The Harding Trust is non-profit organisation, which arranges employment for the disabled individuals of the community. The trust gets the profiles of the disabled from the local authorities or charity foundations. The company has case officers, who place individuals at suitable positions. Also, the trust has to seek contracts from different organisations (besides local authorities) to obtain necessary finances.

The current pay system is based on the traditional model of contingent pay, which means it has the characteristics of service-based incentives. The organisation grants 2.5% increment with progression on each of the 12 grades. This report presents suggestions for modifying the conventional service based system into a performance-based reward system. The main commitment is to facilitate the organisation into transitioning the desired change. Also, the report makes recommendations for improving the reward system. Galbraith's Star Model represents the framework for initiating the system implementation. The Harding Trust can identify the potential issues, which the company is likely to face. The implementation plan is outlined for assisting the organisation with successful implementation.Reward Management Report: The case of Harding Trust

Introduction

Strategic Context

An organisation articulates its strategic goals in its mission & vision statement. It is noted that a company evolves its strategic goals with the passage of time. In other words, strategic goals are revised on timely basis; these can be found in the yearly reports of the management. The strategic aims can have a diverse nature including revenue generation or accomplishing the mission. The reports may set strategic objectives for a particular year or duration. In case of Harding Trust, the company has a strong commitment for placing & settling the disabled individuals in appropriate job descriptions. The company has a strategic objective of achieving the most successful placements for the disabled individuals. People, working for non-profit organisations, have a passion for the cause. They are motivated by the cause, in order to execute the cause. However, additional incentives can bolster their commitment; at the same time, it rewards their good will and efforts.

Human Resource Management plays a significant role in aligning the employees' performance against the strategic objectives of a company. In this regard, the HR professionals introduce a number of strategies for rewarding the employees. The best way to motivate an individual, to contribute towards organisational performance, is to identify rewards against the strategic activities.

Ludwig (2004) conducted a study for examining the impact of performance-related pay in non-profit organisations. The study highlighted that non-profit organisations have been able to meet their strategic objectives similar to for-profit organisations, through implementing the same principles of HRM and strategic planning. Ludwig (2004) indicated that non-profit organisations can use incentives and other contingent pay strctures to motivate workers. It benefits them in two ways; firstly, it serves to motivate people working for the cause. Secondly, it aligns the organisations' revenue to be utilised for rewarding the strategic efforts. The research concluded that performance related pay benefits non-profit organisations in the same way like it benefits for-profit ...