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1、The Remuneration systems of AG Bells ltdIntroduction: this report is all about the A G Bell ltd. First, it introduces the key objective and constraint of this organization. Then, it talks about the remuneration system and the difference between non-analytical job evaluation schemes and analytical jo
2、b evaluation schemes and able the non-analytical job evaluation. Last, it explains single status culture.Section1Remuneration refers to the total pay and benefits that are offered to an employee in exchange for their labor. In the organization the objective of remuneration system are related to the
3、objective of the whole organization. (1) To attract sufficient suitable employees; (2) To motivate employees to improve their performance, or deal with poor performers; (3) To reducing costs. When establish the objective of remuneration system, we should notice three point:(1) In the organization we
4、 can use excellence payment system and the level employer enjoy employee work hard for motivation staff.(2) For attract and retain excellence staff to finish the objective of the organization, the organization should have some competitiveness compare with other organization. (3) The remuneration sys
5、tem should reflect fair (include inside and outside) for avoid staff come dissatisfied.In the organization they also exist many constraints in remuneration system. An organizations approach to remuneration will be influenced by a variety of external and internal constraints.(1) The organizations fin
6、ances. When the organization prepare implement some plan, if they dont have enough money it will influence the plan implement. The organizations finance will also influence the remuneration system. If the finance situation is bad, the remuneration may be easily and simple(2) Labor market supply and
7、demand. If the market supply is shortage and the demand is increase. The remuneration system will more effectively and good for the employees to attract them.(3) Government pays regulations. If the governments increase the minimum salary standards, it will influence the organization remuneration sys
8、tem, the organization will increase the salary.Section 2Pay systems fall into two main categories: Basic rate systems and Performance relation system.(1) Basic rate systems are that the pay does not vary in relation to achievements or performance.Basic rate systems feature: - Easiest to operate, and
9、 apply to many workers in the UK. The worker receives a fixed rate per hour, week or month. Under basic rate systems a worker is paid in relation to a given period of time - an hourly rate, weekly wage or annual salary. -This rate is the established rate for all workers in one category, but there ar
10、e often incremental scales which allow for progression, perhaps as additional experience and skills are obtained. Advantages:- They are relatively simple and cheap to administer and allow labor costs to be forecast with accuracy. - They lead to stability in pay and are easily understood by the workf
11、orce, who will be able to more readily predict and check their pay. - There may be fewer disputes and individual grievances than under systems linking pay to performance or results.Disadvantage:- Basic rate systems do not by definition provide direct incentives to improve productivity or performance
12、. Nevertheless employers may prefer to operate simple basic rate systems and improve the design of jobs, so that the job provides the necessary interest, motivation and satisfaction. - Basic systems may be criticized by individual workers, who wish to see their own abilities specifically rewarded. -
13、 Basic rate systems can also lead to a rigid, hierarchical system of spot-rates or pay ranges. (2) Performance related pay (PRP) describes a payment system where the amounts being paid to an employee depend on specified outcomes being achieved. A PRP scheme is designed to motivate employees to work
14、in a purposeful and directed fashion in accordance with personal and organizational objectives.Performance related pay feature: - Performance related pay is generally used to link progression through a pay band to an assessment of an individuals work performance during a particular reference period,
15、 often a year. Alternatively, the reward may be an additional sum of money paid in the form of a bonus. - Assessments usually relate to an individuals achievements against agreed objectives relating to output and quality of work but may also include an element of evaluation of personal characteristi
16、cs, such as adaptability, initiative and so on Advantages:- It may provide a felt fair system of rewarding people according to their contribution. - Higher performance within the organization may result. - It provides a tangible means of recognizing achievements. - People understand the performance imperatives of the organization and the link between extra pay and extra performance is clear. Disadvantage:- Perf
