By Michael Armstrong
It is a useful instruction manual designed to supply information at the methods that may be followed in constructing and dealing with worker gift stategies, rules and approaches
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Additional resources for A Handbook of Employee Reward Management and Practice
APPROACHES TO TOTAL REWARD Approaches to total reward adopted by a number of organizations are summarized below. See also Chapter 28 for a description of the total reward policies of BristolMyers Squibb, Elan Computers and GlaxoSmithKline. Camelot At Camelot total reward is an important element in the move to align people with the organization’s goals. Centrica As deﬁned for Centrica employees the total reward approach integrates many diverse elements: ﬁnancial rewards like base pay, contingent or variable pay, share ownership and employee beneﬁts; and non-ﬁnancial rewards such as the work environment, including recognition, quality of working life considerations, the opportunity to learn and develop skills and work/life policies.
Operating in a vastly different employment environment in which there is intense competition for a pool of increasingly skilled people, employees really are the primary sustainable source of competitive advantage in the modern servicebased economy. 5 billion per annum operating costs, but, for better or worse, it is people – their intellects, creativity, scarce skills, commitment and leadership – who are central to business success. A key question emerging from the new strategic orientation to reward at Lloyds TSB concerned the need to redeﬁne the organization’s performance culture.
Strategic Reward 49 THE RATIONALE FOR STRATEGIC REWARD In the words of Duncan Brown (2), strategic reward ‘is ultimately a way of thinking that you can apply to any reward issue arising in your organization, to see how you can create value from it’.