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human resources management
Managing Employee Performance And Reward Systems, Practices And Prospects 3rd Edition John Shields, Jim Rooney - Solutions
5 How should these recommendations be implemented?What advice would you offer Amy? Three weeks into her new job as Chief Human Resources Officer at Wealth Bank Corporation (WBC) things have yet to start looking up for 30-something high-flyer Amy Wang. The enormity of the challenge she faces in
4 What are the main shortcomings of the existing approach to performance-related rewards and what changes would you recommend? Three weeks into her new job as Chief Human Resources Officer at Wealth Bank Corporation (WBC) things have yet to start looking up for 30-something high-flyer Amy Wang. The
3 What are the main shortcomings of the existing approach to employee benefits and what changes would you recommend? Three weeks into her new job as Chief Human Resources Officer at Wealth Bank Corporation (WBC) things have yet to start looking up for 30-something high-flyer Amy Wang. The enormity
2 What are the main shortcomings of the existing approach to base pay and what changes would you recommend? Three weeks into her new job as Chief Human Resources Officer at Wealth Bank Corporation (WBC) things have yet to start looking up for 30-something high-flyer Amy Wang. The enormity of the
1 What are the main shortcomings of the existing approach to performance management and what changes would you recommend? Three weeks into her new job as Chief Human Resources Officer at Wealth Bank Corporation (WBC) things have yet to start looking up for 30-something high-flyer Amy Wang. The
5 Which performance and reward practices are most compatible with a ‘transactional’ employee value proposition? Which practices are least compatible with an employment ‘deal’ of this type? Which, if any practices, might be compatible with either of these value propositions?
4 ‘A good strategy well applied will always outdo a brilliant strategy badly applied.’ What are the implications of this statement for performance management practitioners?
3 ‘Total reward management’ requires a balanced mix of reward types, but how can we know what mix to aim for?
2 ‘The strategic alignment model looks good on paper but is impossible to achieve in practice.’ How would you respond to such a comment in the workplace?
1 What are the tell-tale signs of performance and reward system failure?
3 Can the relative measure of ‘a fair day’s pay for a fair day’s work’ really be ‘objective’? Read the following articles and reflect on the aspects of organisational justice below.Letts, S. (2018), ‘No relief for workers as new enterprise agreements drive down wages growth’, ABC
2 Are organisational justice problems restricted to low paid work? How might these problems be different from high pay workplaces? Read the following articles and reflect on the aspects of organisational justice below.Letts, S. (2018), ‘No relief for workers as new enterprise agreements drive
1 What performance and review characteristics would you expect to see in any organisational providing a relatively low but fair pay system? Read the following articles and reflect on the aspects of organisational justice below.Letts, S. (2018), ‘No relief for workers as new enterprise agreements
2 How can the organisation’s performance and reward practices be configured so as to optimise alignment with these expectations while also optimising organisational outcomes? Review and reflect on the findings reported in The Deloitte Global Millennial Survey 2019, available at
1 How might the performance and reward expectations of Gen Z differ from those of older generations? Review and reflect on the findings reported in The Deloitte Global Millennial Survey 2019, available at https://www2.deloitte.com/global/en/pages/about-deloitte/articles/millennialsurvey.html.Taking
3 What does the information in the Deloitte report suggest regarding the relative advantages of results-based and behaviourally-based performance management? Review the following report from Deloitte Insight:Agarwal, D., Bersin, J., Lahiri, G., Schwartz, J. & Volini, E. (2018), The Rise of the
2 What should an organisation do to stay ahead of the competition in terms of effective employee performance and reward management? Review the following report from Deloitte Insight:Agarwal, D., Bersin, J., Lahiri, G., Schwartz, J. & Volini, E. (2018), The Rise of the Social Enterprise: 2018
1 What does the information in the Deloitte report suggest regarding the role of contextual developments – sometimes termed ‘mega-trends’ – in decisions regarding the design of strategically appropriate and aligned performance and reward practices? Review the following report from Deloitte
3 What, if anything, do the results of the studies identified in the Forbes article tell you about how companies can align performance and reward systems with employee needs and organisational performance?
2 What role does employee engagement play in determining the effectiveness of an organisation’s approach to individual employee rewards?
1 How would you consider the influence of employee wellness in evaluating the effectiveness of individual employee performance appraisal?
• understand and apply approaches for effective change implementation and communication.
• consider issues associated with developing performance and reward systems that both align with the organisation’s strategic priorities, including its business strategy, employee value proposition and work design, and engage employees appropriately to elicit desired attitudes, competencies,
• identify and assess the sources of evidence and practice used in performance and reward system evaluation
• explain the processes and methods associated with reviewing current performance and reward practices, including accurately identifying areas of strength and weakness in existing practices, as well as opportunities and options for improvement
• understand and apply a systems thinking framework for developing and changing performance and reward systems that integrates and aligns strategic and psychological considerations
3 What can Axis do to ensure a majority of employees purchase shares in the ESP? Axis Bank is a retail bank with divisions in Australia, New Zealand and the United Kingdom. Axis has executive and senior executive remuneration packages which include share plans. The CEO has recently come back from a
2 Does the success of the broad-based scheme depend on a large proportion of employees purchasing shares? Why or why not? Axis Bank is a retail bank with divisions in Australia, New Zealand and the United Kingdom. Axis has executive and senior executive remuneration packages which include share
1 Can a stand-alone employee share ownership plan at Axis Bank help align the interests of employees with those of the organisation? What other HR practices should be in place to support the alignment of interests? Axis Bank is a retail bank with divisions in Australia, New Zealand and the United
5 ‘The organisational benefits of employee share ownership are more likely to be achieved when accompanied by options for employee voice and decision-making.’ Discuss.
4 What are the costs to an organisation of running an employee share ownership plan?
3 How can an organisation encourage its employees to take up shares in an employee share ownership plan?
2 Under what conditions is an employee share ownership plan most likely to be effective for an organisation?
1 ‘Employee share ownership is good for the organisation but not for employees.’ Discuss.
2 How do organisations effectively communicate with Millennials about employee share ownership? The generational composition of the workforce is changing. As the following article points out, the proportion of Millennials in the workforce is growing. Read article and then answer the following
1 Is employee share ownership important to Millennials? The generational composition of the workforce is changing. As the following article points out, the proportion of Millennials in the workforce is growing. Read article and then answer the following questions:myStockOptions (2016),
2 Does the number of shares owned by an employee matter? Why or why not? Corey Rosen and colleagues argue in this linked article that employee share ownership can generate benefits for both employees and organisations. Read the article and then answer the following questions:Rosen, C., Case, J. &
1 What role does employee share ownership play in generating an equity attitude? Corey Rosen and colleagues argue in this linked article that employee share ownership can generate benefits for both employees and organisations. Read the article and then answer the following questions:Rosen, C.,
2 What are the risks to Michael if he decides to buy shares in his company? The ASIC MoneySmart website provides a case study of a share purchase plan (ASIC 2018):Michael works for a large listed Australian company. Each year the company offers their permanent employees the opportunity to buy up to
1 Is it fair that only permanent employees are able to purchase shares in their organisation? Why or why not? The ASIC MoneySmart website provides a case study of a share purchase plan (ASIC 2018):Michael works for a large listed Australian company. Each year the company offers their permanent
2 How does employee share ownership assist with the alignment of employee and organisational values? Culture Amp has used employee share ownership to build their business: they believe that share ownership motivates employees to work towards goals that are valued by the organisation. And that
1 How does employee share ownership assist the performance of Culture Amp?Culture Amp has used employee share ownership to build their business: they believe that share ownership motivates employees to work towards goals that are valued by the organisation. And that employees are motivated to build
• appreciate the strategic considerations involved in deciding whether or not to use employee share ownership and which plan type to apply.
• evaluate the link between employee share ownership and other elements of HR policy in organisations
• comprehend why employees participate in an employee share ownership plan and the implications for employee attitudes and behaviours
• identify the implications of employee share ownership for organisations and measures of organisational performance
• be able to discuss the different types of employee ownership plans, including share grants/gifts, share purchase, and share option plans
• appreciate the theoretical rationale for an employee share ownership plan
• understand the definition and incidence of employee share ownership as the primary form of broadly-based long-term incentive plans (LTIs)
4 What role, if any, could/should collective incentives play here? If no role, why? Is so, which particular types of collective incentives considered in this chapter would be most appropriate, and why? Australia’s Royal Commission on Financial Services has uncovered multiple and deep shortcomings
3 How would you go about reorienting bank culture from one of selling to one of service? Australia’s Royal Commission on Financial Services has uncovered multiple and deep shortcomings in incentive plan design and administration in the country’s major retail banks. Fraudulent and unethical
2 Can you see any connection between the high reliance on incentives for ordinary bank employees and the incentives applied to bank executives? Australia’s Royal Commission on Financial Services has uncovered multiple and deep shortcomings in incentive plan design and administration in the
1 Why has there been such a heavy reliance on individual sales incentives in retail banking? Australia’s Royal Commission on Financial Services has uncovered multiple and deep shortcomings in incentive plan design and administration in the country’s major retail banks. Fraudulent and unethical
5 Should team members with different functional capabilities receive the same level of performance pay for the results achieved by the team?
4 ‘Collective incentives do not distinguish adequately between “performers” and “passengers”.’ Discuss.
3 Why and how should the incentives applied to project teams differ from those applied to process teams?
2 Why might an organisation choose goal-sharing over gainsharing and profit-sharing?
1 Explain with reasons whether profit-sharing would be better suited to traditional mechanistic firms or to those with high-involvement cultures.
3 How might unconscious bias influence performance and reward practices in such teams and how would you set about countering this risk? According to the following practitioner piece, the research shows that culturally diverse teams outperform teams that are culturally homogeneous:HRD (2018), ‘Do
2 What problems do you anticipate may arise in applying collective incentive plans to culturally diverse teams? According to the following practitioner piece, the research shows that culturally diverse teams outperform teams that are culturally homogeneous:HRD (2018), ‘Do diverse teams perform
1 What role, if any, should incentives play in leveraging the potential of culturally diverse teams? According to the following practitioner piece, the research shows that culturally diverse teams outperform teams that are culturally homogeneous:HRD (2018), ‘Do diverse teams perform better?’,
3 What is your overall assessment of the strengths and weaknesses of Lincoln Electric’s long-standing approach to employee engagement? Read the following favourable blog on Lincoln Electric’s apparent decades-long success with profit-sharing as an employee engagement device.Koller, F. (2016),
2 How do you account for the areas of discrepancy/disagreement? Read the following favourable blog on Lincoln Electric’s apparent decades-long success with profit-sharing as an employee engagement device.Koller, F. (2016), ‘2016 ends at Lincoln Electric, no layoffs for, now, 68 years and 83
1 How well do the remarks by Lincoln Electric’s current and ex-employees about the firm’s reward practices align with the claims made by the firm’s management?Read the following favourable blog on Lincoln Electric’s apparent decades-long success with profit-sharing as an employee engagement
3 Why might the issue of reward equity and reward cost become an issue for Huawei as it continues its path of global expansion? With some 170,000 staff worldwide, Chinese telco giant Huawei is undoubtedly one of the world’s most successful employee-owned businesses. Huawei also operates a
2 What are the challenges in applying profit-sharing in a multinational firm? With some 170,000 staff worldwide, Chinese telco giant Huawei is undoubtedly one of the world’s most successful employee-owned businesses. Huawei also operates a broadly-based profit-sharing and employee share ownership
Why did Huawei introduce its ‘Time-based Unit Plan’ and what maintenance challenges do you foresee for this plan? With some 170,000 staff worldwide, Chinese telco giant Huawei is undoubtedly one of the world’s most successful employee-owned businesses. Huawei also operates a broadly-based
• achieve a practical appreciation of the options, issues and challenges relating to the design, development, implementation and maintenance of collective incentive plans.
• assess the suitability of such plans for particular organisational strategies and contexts and make appropriate recommendations for reward system configuration
• understand the nature of the following short-term collective incentive plan types and the general advantages and disadvantages of each: profit-sharing, gainsharing, goal-sharing and team pay
• describe and compare the main options for configuring short-term collective incentives
• appreciate how collective short-term incentive plans differ from both incentive payments for individual performance and long-term incentive plans, as well as the points of complementarity between these plans
• explain the general rationale for recognising and rewarding employees for their collective performance – that is, results achieved by a work group, team, business unit, division or the organisation as a whole – by means of short-term incentive payments
5 Will you use a rewards provider or develop a bespoke system and why? As discussed in this chapter non-cash recognition has gained popularity among organisations and human resource professionals as a means to motivate employees.You are a newly appointed remuneration and benefits manager of a chain
4 Are there other differences amongst the employees that should be taken into account? As discussed in this chapter non-cash recognition has gained popularity among organisations and human resource professionals as a means to motivate employees.You are a newly appointed remuneration and benefits
3 Will there be a difference in the rewards offered to clinical and non-clinical staff? If so, what would this difference be? As discussed in this chapter non-cash recognition has gained popularity among organisations and human resource professionals as a means to motivate employees.You are a newly
2 How frequently would rewards be distributed? As discussed in this chapter non-cash recognition has gained popularity among organisations and human resource professionals as a means to motivate employees.You are a newly appointed remuneration and benefits manager of a chain of private hospitals
1 Will the system include peer recognition? Will this be moderated and how? As discussed in this chapter non-cash recognition has gained popularity among organisations and human resource professionals as a means to motivate employees.You are a newly appointed remuneration and benefits manager of a
5 ‘A little praise can go a long way.’ Discuss.
4 Is non-cash recognition simply motivation on the cheap?
3 Has cash really lost its cachet as a motivational device?
2 What advantages do merit bonus plans have over merit increments?
1 ‘With results-based rewards, what does not get rewarded gets neglected.’ Discuss.
2 What possible risks and benefits might be associated with this approach? An emerging method of recognition utilises social media as a way to reinforce the values that the organisation seeks to reward. For example, Employsure, an Australian company that provides employment relations advice and
1 Consider other ways social media might be used as part of an employee recognition program. An emerging method of recognition utilises social media as a way to reinforce the values that the organisation seeks to reward. For example, Employsure, an Australian company that provides employment
3 What other methods might be considered in improving individual performance measured against organisational goals? On the 14th December 2017 the Australian Governor-General signed the Letters Patent to establish a Royal Commission into Misconduct in the Banking, Superannuation and Financial
2 How should organisations ensure that individual performance pay plans do not result in unexpected and undesirable behaviour? On the 14th December 2017 the Australian Governor-General signed the Letters Patent to establish a Royal Commission into Misconduct in the Banking, Superannuation and
1 Who are the stakeholders that should be considered in the construction of pay for performance schemes? On the 14th December 2017 the Australian Governor-General signed the Letters Patent to establish a Royal Commission into Misconduct in the Banking, Superannuation and Financial Services
3 Should attempts be made to ‘test’ the intrinsic motivation of executives before committing to expensive bonus plans? If so, what might these tests include? The highest paid CEO in Australia in 2017 was to the head of Domino’s Pizza – Don Miej – who earnt AU$36.8 million in the 2017
2 Within any organisation should performance pay only be available to those performing routine tasks? Why or why not? The highest paid CEO in Australia in 2017 was to the head of Domino’s Pizza – Don Miej – who earnt AU$36.8 million in the 2017 financial year. This represents around 435 times
1 What features of a bonus system might improve perceptions of distributional justice within an organisation? The highest paid CEO in Australia in 2017 was to the head of Domino’s Pizza – Don Miej – who earnt AU$36.8 million in the 2017 financial year. This represents around 435 times the
3 Given the comments prompted by the Financial Times tweet (cited above), what problems might be encountered in auditing existing bonus schemes to limit gendered outcomes? Performance loadings are synonymous with bonuses and are mostly granted following a performance review and in academia are
2 How might these factors be mitigated in an organisation attempting to harness the benefits of a diverse workforce? Performance loadings are synonymous with bonuses and are mostly granted following a performance review and in academia are often known as ‘market loadings’. These are an attempt
1 What factors contribute to the difference in the award of bonuses or performance loadings between men and women? Performance loadings are synonymous with bonuses and are mostly granted following a performance review and in academia are often known as ‘market loadings’. These are an attempt to
• identify the strategic contexts to which specific individual reward and recognition practices might be best suited.
• identify the ethical issues that may result from the form and structure of individual reward and recognition plans
• demonstrate awareness of the challenges of implementing non-cash recognition plans and the means to overcome these
• understand the effectiveness of merit pay in different contexts, including the public sector
• articulate the advantages and disadvantages of merit-based increments
• explain the main forms of individual recognition and reward – specifically meritbased pay increments, merit bonuses, results-based individual incentive methods and non-cash rewards
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