Reference no: EM133636885

Part A. The question is compulsory and should be answered in report form.

In answering examination questions, students are required to address the following criteria:

- Understands the topic under examination.

- Able to demonstrate critical analysis skills.

- Able to construct and sustained line of argument.

Case study

HFA Australia (HFAA) commenced operations nine years ago and sells a range of commercial and household products and services based on energy efficient technologies. HFAA is committed to playing a role in achieving carbon neutrality and to fostering a culture of trust and integrity, extending to all of its stakeholders. Consistent with these commitments, HFAA seeks to make a positive contribution to society through its energy efficient products and services. HFAA acknowledges that the contribution of its employees is paramount to its success in realising these commitments.

Over the last two years HFAA has experienced significant growth in sales but a notable increase in employee turnover, particularly in its sales support and trade employees.

HFAA employs approximately 450 employees in a range of occupations including; sales, administration and trade. To date, with the exception of sales representatives, employees have been paid in accordance with relevant minimum award rates. Sales representatives are paid a base salary and monthly commission on the basis of sales results. All employees including sales representatives benefit from an annual profit-sharing plan that provides for a small cash payment bonus calculated on the basis of HFAA's profit for the relevant period.

Apart from sales representative positions, all work is allocated and carried out on a team basis.

Exit surveys indicate dissatisfaction with the link between employee earnings and HFAA's financial performance.

Despite its success, HFAA has not developed a cohesive performance and reward management system.

Question A

You are a consultant that specialises in performance and reward systems. You have been engaged to design a Performance and Reward Management System for employees of HFAA.

Executive summary

This report will investigate the appropriate solution that HFAA should adopt to reward and manage employee performance. Firstly, the report will evaluate what type of award will be suited to HFAA, such as collective or individual and the reason why the award is suitable for HFAA. Secondly, the report will assess the recommended performance appraisal technique and what techniques suit HFAA, whether it results from a competency-based system. Thirdly the report will go into the type of appraisal of what type of appraisal will be suitable for each role at HFAA and the reason why performance appraisal will suit that role. Lastly, the report will discuss the appropriate rewards, such as monetary and non-monetary roles, for each role at HFAA and specifies the reason for selecting this reason.

Introduction

Having an effective performance and reward system is crucial as this impact the employee's motivation. Performance management techniques are essential for the organisation as they measure employee performance and whether they align with its goals. Measuring employee performance is crucial as this tells the organisation whether the employee is performing or underperforming. A way to measure employee appraisal is where the employee and their supervisor comment on and assess the performance, giving their perspective of employee performance(Shields et al. 2020).. Having a reward for employees is crucial as this will impact their motivation positively and encourage them to be more productive. Rewards can be provided individually, where the employee is awarded for performing individually or collectively, where the team is awarded for their achievement (Shields et al. 2020).. The measurement of the performance appraisal will be different to each role as some role will require to work to achieve their goal while other roles will require to have some skills, knowledge and attribute to work effectively. The performance appraisal system will be either competency-based, where the employee is assessed on their skills, knowledge and attribute.

In contrast, the result-based appraisal will assess the employee's action to achieve that goal and the goal. An appropriate award system is essential for organisations as this will enhance employee motivation. The reward system can be distributed as monetary, where financial recognition is involved or non-monitory, where the award is non-financial recognition

Should HFAA introduce a system of rewarding individual and collective effort? Should the reward system be the same for all employee groups of HFAA? Explain your reasoning.
what are the recommendations

2- Should HFAA adopt a competency based or results based system of performance measurement? Why?

what are the recommondations

3- In addition to base pay, what reward components should be included in the performance and reward system?

what are the recommendations

4- What type of performance appraisal method would be most effective at HFAA?