Strategy and Employee Part1

ACCA P5 Advance Performance Management



Men/Women, Machine and Money are primary resources of any organisation and within them men/women are the mighty resource that control all three resource. Therefore, the role of people within organisation is vital for its existence and growth. ‘People within organisation’ refers to all those human resource directly (employer and full/part time employees) or indirectly (contract workers, agents and vendors) connected with achieving organisational goal.
Traditionally, employees were seen as expense to company. It is still relevant. They cost substantial amount of money to an organisation. There is give and take relationship between employees and organisation. This relationship is regulated by need, expectation, motive, ethics, rules, culture and practice. Now we consider reviewing reward structure (employees’ cost to company) and how they address the need of employers.

Ø  Reward structure:

o   Monetary benefits:

§  During job period

·         Basic pay – Salary, wage, contract price, piece rate payment

·         Performance related pay – bonus, share option, commission

§  After retirement

·         Pension – Defined contribution, Defined benefit

o   Non-monetary benefits

§  Job enrichment - promotion

§  Canteen facility, car benefit, residency and education facility

Ø  Addressing the need:

o   Maslow need theory,

§  Physiological – basic need – food, cloth and shelter

§  Safety – Physical - workplace safety, Economic safety - pension

§  Social – familiarity, friendly, love – associated with the position within a group

§  Esteem – respect, recognizing personal strength, training and development, self-realization

§  Self-Actualization – Experience, creativity and ethical behaviour related to position

o   Herzberg (motivation-hygiene theory) two factor theory

§  Hygiene factor: input job satisfaction to employees but may not motivate to meet required performance standard– e.g. pay, work condition, relationship development

§  Motivation factor: motivates employees to meet and beat performance standard – e.g. responsibility, nature of job, promotion

ACCA article: Reward schemes for employees and management

Motivation