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no more than a piece of paper that can be torn up when needs change as they will not a tablet of stone.

EFFECTIVE REWARD STRATEGIES

Components of an effective reward strategy
Duncan Brown (2001) has suggested that effective reward strategies have three components: 1. They have to have clearly defined goals and a well-defined link to business objectives. 2. There have to be well-designed pay and reward programmes, tailored to the needs of the organization and its people, and consistent and integrated with one another. 3. Perhaps most important and most neglected, there need to be effective and supportive HR and reward processes in place.

Criteria for effectiveness

The questions to be answered when assessing the effectiveness of a reward strategy are: 1. Does it support the achievement of the organizations business and HR strategies? 2. Will it reinforce organizational values? 3. Is there a convincing statement of how the business needs of the organization will be met and how the needs of stakeholders will be catered for? 4. Is it based on a thorough analysis and diagnosis of the reward situation in the organization? 5. Has a realistic assessment been made of the resources required to implement the strategy and the costs involved? 6. Is it affordable in the sense that the benefits will exceed any costs? 7. Have steps been taken to ensure that supporting processes such as performance management, communication and training are in place? 8. Is the programme for implementation realistic? 9. Have steps been taken to ensure that it is supported and understood by line managers and staff? 10. Will HR and line managers be capable of implementing and managing the strategy in practice?