(Solution) CIPD 5HR03 business context of the reward environment. (AC 2.1)
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Description
Solution
A PESTEL analysis is a framework used to analyse the macro-environmental factors that may have an impact on an organisation as evidenced by CIPD (2023a). PESTEL stands for Political, Economic, Social, Technological, Environmental and Legal.
Political factors:
Recent legislation on equal pay could impact GA Pensions’ reward strategy. The Equality Act of 2010 reinforced the need for equal pay for equal work regardless of gender (Supervisor & Malla, 2018). This means GA Pensions needs to ensure pay levels are objectively justified and there are no unexplained gender pay gaps. This could increase pay transparency and lead to adjustments in some roles to align with market rates.
Economic factors:
Fluctuations in the economy may influence reward decisions. During economic growth, organisations may have more flexibility to offer higher pay raises and bonuses to attract and retain talent (Tatenda & Moment, 2014).). In a recession, budgets are tighter so rewards may be limited to core benefits with a focus on non-monetary recognition. GA Pensions will need strategic reward packages that are sustainable through different economic cycles.
Social factors:
Changing social and family dynamics impact the reward environment as evidenced by Tomlin et al (2017). Younger generations increasingly value flexible working to balance career and personal life. Offering flexibility allows GA Pensions to attract and engage younger employees by catering to this social trend. It helps portray the company as family-friendly and modern in its employment practices. However, flexibility must be applied judiciously to avoid accusations of favoritism. a holistic consideration of the political, economic and social landscape through a PESTEL lens can help GA Pensions design reward strategies that are socially responsible, compliant with legal requirements, and responsive to macro-trends, thus strengthening their employer value proposition over the long run.
Evaluate the most appropriate ways in which benchmarking data can be gathered and measured to develop insight. (AC 2.2)
Short references should be added into your narrative below. Please remember to only list your long references in the reference box provided at the end of this section.Word count: Approximately 400 words
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(Solution) CIPS Advanced Level Contract & Category Management in P&S – APGM
- This business report has been used for evaluating the category and contract management in Eco2Solar Company.
- In particular, Eco2Solar operates to improve their project management (PM) and Cost Management (CM) as part of their category management has been evaluated.
- The areas of focus has included an evaluation of requirements for initiating and preparing category management, strategic and conventional sourcing process and role in contract management, tools and techniques for mapping categories of direct and indirect expenditure.
- From the findings obtained, innovative measures for improving the supply chain in light of categories and category management has been recommended.
- Further, in this business report, the contract administration and contract management in case of category management has similarly been evaluated in context of category management this is with assessment of risks and implementation of risk management techniques in contracts being reviewed in context of category management.
- In order to appreciate the best practice in category and contract management in the selected Eco2Solar construction spend area, use of quantitative and desk research has been pursued to obtain relevant data.
- Additionally, different tools have been applied such as Mendelow Stakeholders analysis, CIPS Category Management Cycle, CIPS Contract Management Cycle, Suppliers positioning, PESTLE analysis and SWOT analysis.
- Considering this business report findings, Eco2Solar need to improve their approach for risk management and efficiency and effectiveness of category and contract management.
- From these finding, the stakeholders collaboration in Eco2Solar need to be improved which can be done by embrace of blockchain technologies.
- Also, by identifying their PS&M teams training and capacity development, they would be able to improve on their category management. In the contemporary procurement environment, the training and capacity development has been noted as the best practice to manage gaps in their operations. Also, the findings indicate the need for Eco2Solar to improve their category management of their construction spend by coming up with appropriate SLA’s agreement and KPIs while ensuring they capitalise on innovativeness.
- For the project management and cost management, this being a long-term investment would require an improved auditing. This can entail embrace of analytics to analyse and present contract management data and appropriate management strategy.
- The importance of improved collaboration is ensuring stakeholders active involvement and awareness on core decisions made as this could harness their practice, contribution and suggestions noted.
- By successfully pursuing stakeholder analysis, it is important to maintain stakeholders relations which promote Eco2Solar organisation image and increase their market share.