Remuneration On Productivity Case Study

3269 Words7 Pages
bulb-icon

Recommended: Research about the impact of motivation on employee performance

The Effect of Remuneration on Productivity Case Study at PT. PAL INDONESIA - Gresik Abstract Low Productivity is the main cause of a company losing their income and position in the market. As a government-owned business, PT. PAL Gresik is also risked their income by having a low productivity. This research’s main goal is to understand what drive the people that is working in the government sector. The main variable used here is the remuneration effect toward productivity. Many suggested that the problem of government owned business is the lack of incentive and the ability of its people to go into higher level in the company. In this research, not all of the company will be examined however only the loading section of the company which is …show more content…

surpassing some sales targets. When the employee surpasses their target, he or she can be given an additional amount to their salary; this will make them strive to achieve more (Maund, 2001). Research has proven that when human being are appreciated and praised they tend to improve their performance. This is another way an organization can apply as a reward so as to improve performance. Praise could be shown in the organization newsletter or in meetings. When managers take time to meet and recognize employees who have performed well, it plays a big role in enhancing employees’ performance (Torrington & Hall, 2006). Organizations should reward employees more often. This greatly improves performance compared to having the rewards maybe only once a year. This is because frequent rewards are easily linked to the performance. (Thomson & Rampton, 2003).Measuring performance is of great importance to an incentive plan because it communicates the importance of established organizational goals. “What gets measured and rewarded gets attention” (Bohlander et al, 2001).In discipline of human resource management, different writers suggest the following indicators for measuring employee performance and they include: quality that can be measured by percentage of work output that must be redone or is rejected; Customer satisfaction that can be measured by the number of royal customers and customer feedback. Also, timeliness, measured in terms of how fast work is performed by the employee when given a certain task; absenteeism/tardiness observed when employees absent themselves from work; and achievement of objectives measured when an employee has surpassed his/her set targets, he/she is then considered to have performed well to achieve objectives (Hakala, 2008; Armstrong,

Show More
Related

  • Goal Setting

    1621 Words  | 4 Pages

    While businesses are looking to get more from their employees, employees are also looking to get more from them. Through employee reward and recognition programs, employers can motivate employees to change work habits and key behaviors to increase the business’ profit. Employee reward system refers to programs set up by companies to reward performance and motivate employees on group or individual levels. They tend to be separate from employee salary but are some form of monetary rewards. Previously reward systems were considered the domain of large companies and businesses, but now even small businesses are offering them to lure top employees in a competitive job market or to simply increase employee job performance.

    Read More

  • Engstrom Auto Mirror Case Study Summary

    1153 Words  | 3 Pages

    The absence of appropriate motivation, fairness, and communication are recognized as the root causes of the issues at the Engstrom Auto Mirror Plant. These are the real issues that added to the decrease in efficiency and product quality. Workers who are affected in an organization might be a result of de-motivation, poor communication, and personal conflict. The presence of these components is the thing that could result in a decline of workers’ productivity, since workers feel they have no control over their work and what they produce. “The success of any Analysis Organization depends on the ability of managers to provide a motivating environment for its employees” (Osabiya, p. 63).

    Read More

  • Incentive Scheme Case Study

    1193 Words  | 3 Pages

    An incentive or reward system refers to a program designed by an organisation to reward high performance and motivate workers on an individual and group basis (Corby et al. 2009, p. 2). Rewards are useful to a company operating in a competitive market. Although used interchangeably, rewards and recognition where the former can be monetary or non-monetary but has a cost to the company, while the latter is meant to offer psychological reward, for instance, oral public recognition or end of the year award. While the company does not provide financial incentive, it provides non-financial in the form of cars for its Sales Division consultants. This improves the working condition of the employees, but it does not improve their financial stance. Wright (2004) notes that some employees are more concerned with status, for instance, an executive desk, attractive office or business card (p. 76). Such incentive make the jobs and company attractive.

    Read More

  • Diversity Management

    940 Words  | 2 Pages

    Reward and recognition has to be promoted for small and large achievements. An effective reward’s program keeps employees engaged, dedicated, and committed to the organization.

    Read More

  • Theory Of Goal Setting

    1044 Words  | 3 Pages

    In addition to feedback, goals have been found to be more effective when they are tied to employee evaluations. The results of employee evaluations typically carry great weight when it comes to raises, bonuses, and potential advancement. Tying these types of rewards to successful goal completion also improves performance and increases goal commitment among employees (House, 1971). Incorporating deadlines to specific goals is also attributed to elevated performance levels. The motivation levels of the employee increase to meet goals within set deadlines and receive positive feedback (Lunenburg, 2011). As organizations focus on employee satisfaction and motivation, goal setting will remain an important aspect of management practices. In today’s economy, organizations are competing for top talent and ensuring employee satisfaction among job tasks is an important piece of talent retention.

    Read More

  • Office Space

    1547 Words  | 4 Pages

    An organization’s structure can affect its efficiency and productivity. The two main management theories are the Classic Theory and Theory X. Classical theory is defined as a management theory of a large organization in which management is led by intuition to motivate and control employees (Hamilton, 2008 p. 41). The Classic Theory can be divided into two large subgroups, scientific managers and bureaucratic theorists. Scientific manager’s focus is on reducing production costs while bureaucratic theorists focus is on administrative efficiency (Hamilton, 2008 p. 43). Although Theory X is not a large subgroup of the Classical Theory, it is under the classical theory and its crucial point is that workers are assumed lazy; therefore managers punish them to motivate them. Managers of Theory X believe that the average person; will avoid work because they do not like work, will not strive to achieve objectives, will avoid responsibilit...

    Read More

  • The Importance Of Job Evaluation

    1078 Words  | 3 Pages

    The foundation for effective job performance and compensation system can be traced to effective job analysis process. Fundamentally, a job analysis should consist of a thorough examination of the job 's duties and knowledge, skills, abilities, and qualities that are required in order to be successful in a specific position, upon which appropriate rewards or compensation can be determined. For many perspectives, jobs are usually made up of requirements and rewards, where rewards may be regarded as a major recruitment strategy for motivating potential employees in order to influence them to stay the organization for a longer period as well as enhance their performance. The most common or basic form of rewards which attracts employees is extrinsic

    Read More

  • Employee Recognition Benchmark

    1967 Words  | 4 Pages

    The Measure of Achievement to set Benchmark that Leads to Business Goal Employee recognition is important in the corporate environment as it will multiply the efforts they put to reach the goal of the organization. The allure of getting appreciated for the efforts will make the employees stick to the goal that can create positive results. Every organization has goals, action plans, and strategies that they need to implement to get desired results. An employee who follows the actions to get the accomplishment is a role model that can reinforce the work culture of the organization. It will set a benchmark that other employees will follow that will improve the overall productivity of the company.

    Read More

  • Impact of Acquisition on Employees Performance: A Case Study of RBS

    380 Words  | 1 Pages

    The present study addresses the influence and impact of acquisition on Employees performance particularly focusing employees on every level of the organization by different factors, which are related to acquisition. This change directly affects the employees. These impacts studied by the variables like job satisfaction, motivation and performance. According to different researcher there are many factors that could affect the job satisfaction of the employees and it turn could affect the organizational performance. It is also tried to prove that if employees are motivated and satisfied then they performed in better and efficient manners and if employees performed well, it means organization is performing well because Organization performance directly related to the employees performance. For this purpose, bank is selected as research organization because banks keep the largest human capital. The RBS is chosen so far because it is one of the largest banks, discussed earlier, and having number of employees working in its number of branches all over the world. This study first determines the impact of merger/acquisition on employees and then finds the variables, which are affected by acquisition. This study will determine the factors that are affected by this change mainly, the impact on employees.

    Read More

  • Employee Engagement And Disengagement

    1055 Words  | 3 Pages

    Incentive reward engagement offers a win-win situation for the employees and the company. Kelleher believes that incentive is a form of recognition and builds engagement through company’s and employee’s obligations towards a common goal (2014). The company has a “Growth Incentive Scheme” for the production workers. Special monetary incentives are provided should the workers achieve the monthly output target. Through the rewards, employees feel motivated towards their work and thus, contribute towards the company’s

    Read More

  • Pros And Cons Of Performance Pay

    1292 Words  | 3 Pages

    There is no more critical role in our current society than that of a teacher’s. Teachers help shape the minds of the future. Tomorrow 's engineers, scientists, politicians, and educators are all greatly influenced by today 's Instructors. Without teachers society would not be anywhere near where it is now, and only a select few would have access to learning. Sadly however important teachers are in human civilization, they are still drastically understated, unrecognized and under paid. Although some people may argue that performance pay is good, performance/merit pay is bad because it will result in teachers doing much less personalizing of the curriculum, and spending that time doing only what things need to teach in order to keep their student’s

    Read More

  • Improving Job Satisfaction and Productivity

    1402 Words  | 3 Pages

    ...n organisations of lack of job satisfaction and productivity amongst unmotivated employees, and related the problem to the risk of turnover. Conflict, absenteeism and stress were identified as major causes of loss of job satisfaction and productivity, potentially increasing the the loss of staff. The solution proposed was to implement additional training and performance pay. It was argued that training in the workplace improves an employee’s sense of worth and self-esteem, by increasing their skills and thus contribution to work efforts. This raises productivity, and in addition improves job satisfaction. Performance pay was advocated as a means of developing the organisation to support motivated and capable employees. Self-disciplined workers would receive recognition for output, improving job satisfaction; as well as financial incentive, keeping productivity high.

    Read More

  • New Public Management

    1928 Words  | 4 Pages

    The New Public Management plays a valuable role as a policy tool and as a means by which to advance rhetoric of efficiency, prudence and efficacy in state management, at a time when these values had re-emerged as a primary driving force behind mass-liberation of national economies and the international political economy in general . This new policy was implemented with a mind to change the old running of the public sector into a new form by imitating the business style of the private sector. This is because some of the politicians felt that the public servants lucked the drive and determination of the many citizens that worked outside of the public sector. So the idea was to become more like the private sector in terms of implementing better services to the citizens, as well as being more challenging when producing policies which conflict with others in the public sector. One of the major reasons why this policy gained more than enough support in earlier years was as a result of the Cold War.

    Read More

  • The Importance of Performance Appraisals

    1400 Words  | 3 Pages

    Organization is a group of people brought to gather to achieve specific goals. Goals can be achieved if team member are performing well. Performance is the results of activities given to the employees in an organization to be achieved within specific period of time. Evaluating the current performance of employees against past performances and organizational standards is known as Performance Appraisal (Dessler, 2005). Furthermore performance appraisal helps the company know how individual employees are performing and how to improve their performance thus improving the performance of the company (Grubb, 2007). A performance appraisal is propose in which the performance management system in an organizations set work goals, determine performance standards, provide performance feedback, determine training and development needs and distribute rewards as well as evaluating an employee’s job performance during a period of time. The performance of team member is much more than appraising individuals’ works, it is managing the business, so the performance of an employee is influences by the performance of an organization. It is target to achieve the best results for the planned strategic by managing activities of employees. There are many different opinions on the performance appraisals, some organizations do performance appraisals without any aim just follow others., where some organizations do performance appraisals to make sure they have a record of a piece of paper in the employee’s file – they are careless about do corrective action. But successful organizations understand the importance of combining performance appraisals into their performance management process and strategy plan as the success of any organizatio...

    Read More

  • The Importance Of Performance Evaluation

    896 Words  | 2 Pages

    Performance management is used for the basis of promotion, reduction in force purposes (talent management), gives transparency of what an organization is looking for, merit increases, and lastly it provides protection against lawsuits for unlawful termination by keeping written documentation. Performance evaluations are advantageous to both the organization and the employee. A leading advantage of performance evaluations is it gives the employee an opportunity to create and achieve smart goals. Although performance evaluations primary function is to measure whether an employee is a good fit or a bad fit for the organization, its function is so much a broader. Performance management is tool purposely used to motivate employees to examine themselves and determine if they have selected the profession that is best for them; consequently the feedback an employee receives from their superior supports them with increase their knowledge and

    Read More

More about Remuneration On Productivity Case Study

Open Document