This dissertation is being submitted in partial fulfillment of the requirements for the Master of Business Administration (MBA) degree. ;\]) J. Recommendations are made using a strategy formulation and implementation model that ensures participation at all levels of the organization.
INTRODUCTION
BACKGROUND OF THE RESEARCH
Chemplex Marketing is the marketing arm of Chemplex Corporation Limited and markets some of the products manufactured by ZimPhos such as acids. This in turn will help with the nature of the program that the company chooses to embrace.
OBJECTIVES OF THE STUDY
The study will analyze the current reward system at Chemplex, and see how the organization can best motivate its employees and at the same time achieve the company's goals.
RESEARCH METHODOLOGY
Sampling Design
Data Collection Method and Instrument
Data Analysis
LIMIT ATIONS OF THE PROJECT
STRUCTURE OF THE STUDY
SUMMARY
This is more if the results of the measures will be used to do. The balanced scorecard is one way an organization can use a reward system to align with the organization's goals. In case the company performs well at the end of the financial period, a performance bonus is given.
It is no wonder why there are a large number of non-management employees who are unaware of the company's strategy. All the respondents who were not aware of the company's strategy said that they felt that they should know it. 100% of respondents said they would like to see changes made to the current reward system.
GM also feels that the current reward system largely supports the company's strategy. The assumption here is that more could be done to make the reward system support the company's strategy. He also finds that the reward system in this way does not support the company's strategy.
It changes in line with the company's changing strategy as well as the changing situational constraints that can hamper employee performance. It is advisable for the company to choose a combination of one of the above approaches. This is important, especially if all employees are to buy into the strategy.
The current reward system at Chemplex Corporation is not driven by the company's strategic plan.
STRATEGY F()RMULATION
THEORIES OF MOTIVATION
Maslow's Hierarchy of Needs
If this does not change, there will be little impact on the success of the organization's goals. A major criticism of the Comparative Approach was the lack of strategic congruence between the techniques and the company's strategy. The corporate strategy is then reviewed throughout the year in line with the changing environment.
The objective was to gather information to answer the research question of whether Chemplex Corporation's reward system was supportive of the company's strategy. The objective of this part of the questionnaire was to investigate whether the employees at Chemplex Corporation were aware of the strategy that the company was pursuing. A high response rate of 74% was obtained from those who were advised on company performance.
The rest of the respondents, who were not familiar with the company's strategy, held mostly lower middle management positions. Individuals must be responsible for the implementation of the assigned parts of the strategic plan.
Herzberg's Two-Factor Motivadon Theory
The Job Characteristic Model
Autonomy - the extent to which a job allows a person to experience freedom and discretion in planning, designing and carrying out a task. Feedback - the extent to which a person receives actual information about how well a job is done.
Expectancy Theories
- Vroom's Expectancy Theory
- Porter and Lawler's Expectancy Theory
The key performance areas themselves must be aligned with the organization's overall goals and strategies. The response was commendable as it showed that the company felt there was a need for employees to recognize the company's performance. If every area of the organization does not contribute to the company's desired outcomes and results, then the company's objectives are unlikely to be achieved.
The role of Goal Setting in Motivadon
MOTrVATfNGMANAGERS
P ERFORMANCE MANAGEMENT
Purposes of Petformance Management
- Administrative Purpose
- Developmental Purpose
- Strategic Purpose
Petformance Measures Criteria
- Validity
- Reliability
- Acceptability
- Specificity
Approaches to Measuring Petformance
- The Comparative Approach
- The Attribute Approach
- The Behavioral Approach
- The Results Approach
- The Quality Approach
COMPENSATION AND BENEFITS PROGRAMMES
- Reinforcement Theory
- Expectancy Theory
- Agency Theory
- Compensation Programmes
- Merit Pay
- Individual Incentives
- Profit Sharing and Ownership
- Gainsharing, Group Incentives, and Team Awards
- Balanced Scorecard
Advantages of profit sharing include the fact that employees tend to think more like business owners and thus have a broad view of what needs to be done to make the company successful. Additionally, because the payments do not become part of base salary, labor costs are automatically reduced during tough economic times and wealth is shared when the company performs well. In this case, employees are rewarded when the company performs well and are not penalized if the company performs poorly.
Employee ownership is similar to profit sharing in that it encourages employees to take a broader view of the organization. The sales reps weren't excited about the new program, not just because of the inventory or the money, but because they felt they belonged and were part of the company. Employee stock ownership plans (ESOPs) provide employees with shares in the company and are the most common type of employee ownership plan.
The balanced scorecard allows managers to look at the company from the perspective of internal and external customers, employees and shareholders. It differs from traditional measures of company performance by emphasizing that the critical indicators selected are based on the company's business strategy and competitive requirements. The balanced scorecard must thus be used to link HR management activities to the company's business strategy and to evaluate the extent to which the HR function helps the company achieve its strategic goals.
STRATEGY-SUPPORTIVE REWARD SYSTEMS
Make non-monetary rewards an integral part of the reward system Source (htpp:llpersonal.ecu.edulbellotlBuspoIlO.htm).
SUMMARY AND C ONCLUSION
- INTRODUCTION
- T HE ZIMBABWE E CONOMY
- STRATEGY FORMULATION AND IMPLEMENTATION AT C HEMPLEX CORPORATION
- P ERFORMANCE M EASUREMENT
- COMMUNICATING ORGANISATIONAL P ERFORMANCE
- REWARD SYSTEM
- Non-managerial Employees
- Managerial Employees
- TOTAL QUALITY MANAGEMENT
- S UMMARY AND CONCLUSION
The division manager and his direct reports are involved in formulating the strategy for each division at Chemplex. Each department, whether production, engineering, finance, sales, purchasing or customer service, has input into the strategy. Revisions of the strategy are carried out as major changes are estimated in the operating environment.
They are signed by the acting employee as a sign of agreement with the content of the job description and are kept as records in the personnel department. In some cases, non-managers learn about important changes in the company before their managers do. In the event that the performance is rated as good and the manager has achieved his goals for the period, he is congratulated.
This also puts the manager in good stead for promotion if a vacancy arises. Salary negotiations are either based on market research where Chemplex compares the salaries of its managers with those of the top 10 companies in the sector. This is a widely applied management philosophy in the company and is embraced by all employees, from the shop floor to top management.
INTRODUCTION
The thinking was that if employees are not aware of the company's strategy, there is no way the company can use its reward system as a means to achieve the company's strategic drive. 70% of the respondents were not aware of the strategy followed by either the corporation or their respective divisions. Therefore, although they were aware of the chosen strategy, they did not set any goals that were aligned with that strategy.
From the results gathered from the questionnaire, the current system does not adhere to any of the above criteria. The higher response than non-managerial employees is due to the fact that most managers participate in strategy formulation for their respective divisions, and thus would know about the company's strategy. All responding managers also said they were aware of the type of performance expected of them in their jobs.
When asked if this performance was measured, 93% of managers said their performance was measured. Communicating the strategy and pushing it through to lower levels of the organization is critical. Are there any bonuses awarded to you during the year (YES/NO) 9.
RESEARCH METHOOOLOOY
- Target Population and Sample
- Questionnaire Design
S UMMARY
This chapter looked at the research plan for the study, starting with the research methodology, then the target population and sample, and finally the research instrument and its design. The next chapter presents the research results based on the information collected from the questionnaires and interviews.
Out of the 30% of respondents who were aware of the company's strategy, none of them had any goals that were in line with the company's strategy that they were set to achieve during the year. Other questions asked were whether feedback was given to employees about how they were performing, and the nature of the feedback. 21% of the respondents did not qualify for any of the benefits and this was because they were in low grades.
This is likely as a result of the high costs of buying or renting a home due to inflationary pressures in the economy. By not directly rewarding this performance, there is a high chance that managers will become disillusioned and there will be no repetition of good performance. Of the respondents who were not satisfied with their benefits, 75% were lower middle managers and felt that the difference between the grades for the benefits provided was too great.
Some managers also felt that their benefits were lower than those of their colleagues in similar organizations. The higher percentage of managers who are aware of the company's strategy and that they have set goals that they want to achieve in the workplace is commendable and therefore a good start for Chemplex. The response to the CEO's views on the reward system indicates some dissatisfaction with the system, as he believes there is room for improvement, especially by taking into account individual needs.
I INTRODUCTION
- STRATEGY FORMULATION AND IMPLEMENTATION
- Developing strategic vision
- Establishing objectives
- Crafting a strategy
- PERFORMANCE MANAGEMENT
- APPRO ACHES TO MEAS URING PERFORMANCE
- STRATEGY-SUPPORTIVE REWARD Sy STEM
- B ALANCED SCORECARD (BSC)
- G UIDEL INES FOR DESIGNIN G STRATEGY- SUPPORTIVE REWARD SYSTEMS
- S UMMARY AND C ONCLUSION S
- OPPORT UNlTrES FO R FURTHER RESEARCH
