Formal versus informal structures and types of formal grade structures
5HR03 – Reward for performance and contribution
This CIPD Level 5 learning video on formal versus informal structures and types of formal grade structures forms part of unit 5HR03 – Reward for performance and contribution. The video explores assessment criteria AC 2.1, which requires learners to explain differences between types of grade and pay structures used within organisations. You'll discover how formal structures such as multi-graded, broad-graded, broad-banded, and job families compare to informal approaches including spot rates and individual job grades. By completing this video, you'll gain the knowledge needed to analyse and distinguish between these reward structures, equipping you for CIPD assessments and practical HR decision-making.
Assessment Criteria 2.1
Explain differences between types of grade and pay structures.
Indicative Content
Formal and informal structures; types of formal structures such as multi-graded structure, broad-graded, broad-banded, job families; informal structures such as spot rates and individual job grades.
What You'll Learn
Video covering: Formal versus informal structures and types of formal grade structures
About 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 performance
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