5HR03 Reward for performance and contribution

• Version 1 – Released June 2024
• Expires June 2026
• Study Centre information only: Last moderation window is September 2026

5HR03
Reward for performance and
contribution
Learner Resit Assessment Brief

Level 5 Associate Diploma in
•
People Management

Level 5 Associate Diploma
2

5HR03
Reward for performance
and contribution
This unit focuses on how internal and external business factors influence reward strategies and
policies, the financial drivers of the organisation and the impact of reward costs and rewarding
performances.
CIPD’s insight
Strategic reward and total reward (February 2024)
‘Strategic reward’ takes a long-term approach to how an organisation’s reward policies and
practices balance and support the needs of both the organisation and its employees. The concept
of ‘total reward’ covers the tangible and intangible aspects of work that people value and may
form part of a reward strategy.

https://www.cipd.co.uk/knowledge/strategy/reward/strategic-total-factsheet

Performance management
Performance management is about creating a culture which encourages the continuous
improvement of individuals’ skills, behaviours and contributions to the organisation. It’s a key part
of the relationship between staff and managers. Views on how it should be carried out to the
benefit of employees and the business have changed in recent years. Here you’ll find resources on
managing performance, appraisal and reviews, feedback and using competency frameworks.

https://www.cipd.co.uk/knowledge/fundamentals/people/performance

Making reward more accessible and performance management fairer (January 2022)
Making reward more accessible and performance management fairer
How can technology be used to allow better access to pay and a fairer assessment of employee
performance and potential?

https://www.cipd.co.uk/knowledge/work/technology/digital-transformation-insights/reward
performance-management

Please note that the purpose of this insight is to link you to CIPD’s research and evidence within the subject
area, so that you can engage with the latest thinking. It is not provided to replace the study required as
part of the learning or as formative assessment material.

Level 5 Associate Diploma
Preparation for the Tasks:
• Refer to the indicative content in the unit to guide and support your evidence.
• Pay attention to how your evidence is presented.
• Ensure that the evidence generated for this assessment remains your own work.
You will also benefit from:
• Completing and acting on draft feedback from your assessor.
• Reflecting on your own experiences of learning opportunities and continuous professional
development.
• Reading the CIPD Insight, Fact Sheets and related online material on these topics as well as
key research authors on the subject.
3
Scenario
Level 5 Associate Diploma
You work in the people practice team at a RJ Logistics. The organisation has experienced
significant growth in recent years and now has a much larger workforce. The senior management
team are aware that the current reward package, which has been in place for some time, is no
longer suitable for the organisation based on their current position. The SMT have asked your
manager to give a presentation to help them understand the reward context and the benefits.
Your manager has requested that you create an FAQ document to accompany the presentation.
This should provide the SMT with an understanding of the context and approaches to reward and
how these might influence a range of organisational and psychological factors. It also needs you to
clarify the role that people professionals have in supporting line managers to make reward
decisions.
You should make appropriate use of academic theory and practical examples to expand your
responses and illustrate key points. Please ensure that any references and sources drawn upon are
acknowledged correctly and supported by a bibliography.
To help the reader, please make use of headings and assessment criteria references to signpost
the assessment criteria being addressed.
You should provide written responses to each of the questions below:
1) What are the key principles of reward and why is it important to organisational culture and
performance management? (AC 1.1)
2) How does extrinsic and intrinsic rewards contribute to improving sustained organisational
performance and employee contribution? (AC 1.2)
3) Can you explain the differences between types of grade and pay structures? (AC 2.1)
4) Can you explain how contingent rewards can impact individual, team and organisational
performance? (AC 2.2)
5) Can you explain the merits of different types of benefits offered by organisations? (AC 2.3)
6) Can you explain the merits of different types of recognition schemes offered by
organisations? (AC 2.4)
7) Can you assess the business context of the reward environment? (AC 3.1)
8) Can you evaluate the most appropriate ways in which benchmarking data can be gathered
and measured to develop insight? (AC 3.2)
9) Can you explain approaches to job evaluation? (AC 3.3)
10) Can you explain the legislative requirements that impact reward practice? (AC 3.4)
4
Level 5 Associate Diploma
Your evidence must consist of:
• Written responses to each of the 10 questions above.
• Approximately 3900 words in total, refer to CIPD word count policy.
5
Level 5 Associate Diploma
6

Assessment Criteria Evidence Checklist
You may find the following checklist helpful to make sure that you have included the required
evidence to meet the task. This is not a mandatory requirement as long as it is clear in your
submission where the assessment criteria have been met.

Task 1 – Report Section One
Assessment criteria
Evidenced
Y/N Evidence reference
1.1 Explain the principles of reward and
its importance to organisational
culture and performance
management.

1.2 Assess the contribution of extrinsic
and intrinsic rewards to improving
employee contribution and sustained
organisational performance.

2.1 Explain differences between types of
grade and pay structures.

2.2 Explain how contingent rewards can
impact individual, team and
organisational performance.

2.3 Explain the merits of different types
of benefits offered by organisations.

2.4

Explain the merits of different types
of recognition schemes offered by
organisations.

3.1 Assess the business context of the
reward environment.

3.2 Evaluate the most appropriate ways
in which benchmarking data can be
gathered and measured to develop
insight.

3.3 Explain approaches to job
evaluation.

3.4 Explain the legislative requirements
that impact reward practice

Level 5 Associate Diploma
5HR03
Reward for performance and
contribution
Assessment Criteria marking descriptors.
Assessors will mark in line with the following assessment criteria (AC) marking descriptors, and
will indicate where the learner sits within the marking band range for each AC.
Assessors must provide a mark from 1 to 4 for each assessment criteria within the unit. Assessors
should use the mark descriptor grid as guidance so they can provide comprehensive feedback that
is developmental for learners. Please be aware that not all the mark descriptors will be present in
every assessment criterion, so assessors must use their discretion in making grading decisions.
The grid below shows the range for each unit assessment result based on total number of marks
awarded across all assessment criteria.
To pass the unit assessment learners must achieve a 2 (Low Pass) or above for each of the
assessment criteria.
The overall result achieved will dictate the outcome the learner receives for the unit, provided
NONE of the assessment criteria have been failed or referred.
Please note that learners will receive a Pass or Fail result from the CIPD at unit level. Referral
grades can be used internally by the centre.
Overall mark
Unit result
0 to 19
Fail
20 to 25
Low Pass
26 to 32
Pass
33 to 40
High Pass
7
Level 5 Associate Diploma
8

Marking Descriptors

Mark Range Descriptor
1 Fail The response DOES NOT demonstrate sufficient knowledge,
understanding or skill (as appropriate) to meet the AC.
Insufficient examples included where required to support answer.
Insufficient or no evidence of the use of wider reading to help
inform answer.
Presentation or structure of response is not appropriate and does
not meet the requirement of the question/assessment brief.

2 Low Pass The response demonstrates an acceptable level of knowledge,
understanding or skill (as appropriate) to meet the AC.
Sufficient acceptable examples included where required to support
answer.
Sufficient evidence of appropriate wider reading to help inform
answer. Satisfactory in-text referencing.
Answer is acceptable but could be clearer in responding to the
question/task and presented in a more coherent way.
Required format adopted but some improvement required to the
structure and presentation of the response.

3 Pass

The response demonstrates a good level of knowledge,
understanding or skill (as appropriate) to meet the AC.
Includes confident use of examples, where required to support the
answer.
Good evidence of appropriate wider reading to help inform
answer. A good standard of in-text referencing.
Answer responds clearly to the question/task and is well expressed.
Presentation and structure of response is appropriate for the
question/task.

4 High Pass The response demonstrates a wide and confident level of
knowledge, understanding or skill (as appropriate) to meet the AC.
Includes strong examples that illustrate the points being made and
support the answer.
Considerable evidence of appropriate wider reading to inform
answer. An excellent standard of in-text referencing.
Answer responds clearly to the question/task and is particularly well
expressed or argued.
Presentation and structure of response is clear, coherent, and
responds directly to the requirements of the question/task.

5HR03 Assessment Brief Resit