Reward Management notes – KNEC Diploma

Reward Management


This unit or subject is examined by KNEC on those taking the following courses:


This module unit is intended to equip the trainee with knowledge, skills and attitudes that will enable him/her manage a reward system for employees in an organization.

General Objectives
At the end of the module unit, the trainee should be able to:

  • Recognize the importance of reward management system in an organization
  • Carry out a job evaluation exercise
  • Design an employee compensation package
  • Determine an appropriate employee incentive scheme
  • Manage emerging issues and trends for employee reward management in an organization

The topics that need to be covered as required by KNEC in this unit/subject are as follows:

Topic 1: Introduction to Reward Management

  • Meaning of terms used in reward management
  • Importance of reward management
  • Objectives of reward management
  • Requirements of an appropriate reward management policy

Topic 2: Employee Compensation

  • Meaning of terms used in employee compensation
  • Components of an employee compensation package
  • Factors influencing employee compensation

Topic 3: Job Evaluation

  • Meaning of job evaluation
  • Objectives of job evaluation
  • Importance of job evaluation
  • Procedure of job evaluation
  • Methods of job evaluation

Topic 4: Employee Incentive and Benefits

  • Meaning of employee incentives
  • Meaning of employee benefits
  • Importance of employee incentives
  • Types of employee incentives
  • Importance of employee benefits
  • Types of employee benefits

Topic 5: Wage and Salary Administration

  • Meaning of a wage
  • Meaning of a salary
  • Wages and salary payment systems
  • Types of salary structures
  • Factors affecting wage and salary administration
  • Techniques of evaluating wage and salary systems

Topic 6: Performance Management

  • Meaning of performance management
  • Purpose of performance management
  • Principles of performance management
  • Performance management procedure
  • Relationship between performance management and pay

Topic 7: Emerging Issues and Trends

  • Emerging issues and trends
  • Challenges posed by emerging issues and trends
  • Ways of coping with challenges posed by emerging issues and trends

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