Processes Used by Scotia Learning: Reward Management

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The purpose of this essay is to critically examine the processes used by Scotia Learning and identify if their rewards are appropriate to those of the market. The report will begin by discussing the background of Scotia Learning and follow on to define reward management highlighting the objective and constraints within the reward strategy. We will then consider the legal framework and examine why there are variations in pay and how job evaluation can ensure equity and fairness is achieved. Finally we will discuss the concept of motivation and the implications of pay for performance within the reward strategy. The report ends with an analysis of the key issues of the topic. Scotia Learning is the case study for this essay and is one of a network of university-based study centres offering preparation for students wishing to study undergraduate and postgraduate degrees for progression into university degree courses. The company has joint venture partnerships with top universities throughout the United Kingdom, Ireland and United States of America. -------------------------------------------------

“Reward management is concerned with the formulation and implementation of strategies and policies that aim to reward people fairly, equitably and consistently in accordance with their value to the organisation” (Armstrong & Murlis, 2007, p3). Research by Redman & Wilkinson (2009) indicates that reward is an enormously complex issue and has to take account of three fundamental principles in determining systems and structures: internal equity, external equity and business strategy. In addition Thorpe & Homan (2000) state that the organisation should identify what objectives and behaviours the payment system should have for example, labour market competitiveness and management skills whilst Perkins & White (2009) highlight the importance of legal regulations that can put constraints on organisations, for example minimum wage (legal), collective bargaining (trade unions), and the external labour markets. Scotia Learning does not recognise a trade union however it does recognise that collective bargaining has been influential in discussing and setting pay arrangement due to internal and external rates of pay not being equal. Within the employment legislation pay has always been an area of controversy especially when one considers employee’s collective concerns (Brown et al., 2003). The introduction of The Equal Pay Act 1970 outlawing unequal pay for men and women having since evolved into equal pay for equal work and the Equal Pay (Amendment) Regulations 1983 after the UK joined the EU in 1973 (Perkins & White, 2009), now gives employees a certain degree of protection in their employment relationship. To strengthen current legislation The Equality Act 2010 was introduced highlighting human rights and discriminatory factors, such as equal pay, sex discrimination, race, disability and equality (religion, sexual orientation, and age) (Equality and Human Rights Commission, 2012). In response to this Scotia Learning are aware that they have a ‘duty of care’ to all employees and comply with the Equal Opportunities Policy by ensuring the relevant training is undertaken by managers and employees ensuring everyone understands the importance of and their responsibilities under this Policy. This is also promoted in all recruitment documents, ensuring that wording of job advertisements does not discriminate against any potential applicants. As part of this legislation, employers are legally required to ensure their pay structures are not discriminatory against men and women in terms of valuing work between them in their employment and in order to defend themselves against equal pay claims, organisations must be able to prove that the jobs within their grading system are valued according to the job rather than the gender of the person doing the job. Failure to adhere to these regulations can result in...
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