According to the 2014 ANZ annual report, there are two strategies, super regional strategy and Remuneration Strategy, that the ANZ Banking Group used to create its value during 2014. It is clear from the profitability of Appendix 1, compare with 2013. ANZ has increased 615 million in cash profit.
1. Super regional strategy (Differentiated strategy)
It aimed to accelerate ANZ becomes the best connected and most respected bank across the Asia Pacific region.
This strategy has three key elements, strong domestic markets, profitable Asian growth and an enterprise wide approach to operations and technology.
It expounds in three main aspects: Keeping the strengthen position in Australia and New Zealand; Trying to grow in Asia, focused on corporate
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Sustainable development integrating social and environmental considerations into business decisions, products and services to help customers and deliver long term value for stakeholders. Supporting ANZ’s institutional and commercial clients to manage their human rights, labour and environmental risks more effectively benefit customers, strengthens business relationships and reduces ANZ’s reputations and commercial risk.
Diversity and inclusion building the most diverse and inclusive workforce of any major bank in the region. ANZ employees come from all over the world who come different cultural backgrounds. Fostering diversity within the workforce, assists ANZ to innovate, identify new markets, connect with customers effectively and make more informed decisions for ANZ’s
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Variable reward outcomes reflect performance against a balanced scorecard of measures, both financial and non financial (including risk).
The reason of ANZ choose remuneration strategy is that differentiating rewards in line with ANZ’s culture of rewarding for out performance and demonstration of values led behaviours; and providing a competitive reward proposition to attract, motivate and retain the highest quality staffs in order to deliver ANZ’s business and growth strategies.
ANZ aims to find a balance between: fixed and at-risk remuneration; short term and long term incentives; and amounts paid in cash and deferred
Mujtaba, B. G., & Shuaib, S. (2010). An Equitable Total Rewards Approach to Pay for Performance Management. Journal of Management Policy and Practice vol. II (4), 111-121.
The fixed remuneration is set for attracting, motivating and retaining highly skilled people by Telstra, which provide basic salary and superannuation through cash payment. The payment is decided and influenced by the market, internal relativities, experience, qualifications and performance. It is the base level of reward in the bonding costs of Telstra but plays a significant role in competition with the market (Telstra Annual Report, 2013).
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.
After reviewing Holland’s organizational strategy and exit interviews from the last seven years it is certain that through the new and effective compensation and benefits program created for Holland Enterprises, it will decrease the turnover rate, increase employee satisfaction and engagement and benefit the organization’s overall profits. Through careful consideration of pay structures, incentive awards, internal and external equities and the organizations benefits package Holland Enterprises new compensation benefits package will provide an effective and competitive compensation program. Henderson (2010) writes, “To survive and be successful in a global economy, an organization must be competitive. A major factor underlying organizational competitiveness is labor costs. Not only must an organization pay its workforce a competitive wage within its geographic region, but it also must vary the kinds and amounts of rewards offered, recognizing differences in individual contributions.” (p. 13)
To accomplish the company’s long-term objectives the follow strategies have been put into place: forward/backward/horizontal integration,
Growing integration of international markets leads to growth of competition on a worldwide scale, which implies the adoption of a global perspective in business strategies. Due to this, companies seek a global strategy due to the benefits it provides. The four main benefits Yip mentions in his book are: cost reduction, more quality, more client preference, more competitive effectiveness.
After being corporatized and listed on the Australian Stock Exchange in 1984, Wesfarmers was considered to be one of the most elite organisations based on the returns it offered to its shareholders. A major contributor to the organisations success is strategic planning. But would the organisation achieve the same amount of growth without planning? The absence of planning can impact the organisation in the following ways:
Perkins, S.J. & White, G., 2011. Reward management: alternatives, consequences and contexts / Stephen J. Perkins and Geoff White., London: Chartered Institute of Personnel and Development.
How can that information be used to improve performances? They can expand to a global market with current products, but design them to fit the regions’ culture their deciding to market.
Business alignment - reward programmes take into account the common and business-specific skill/performance requirements across our various business units.
Summarize a minimum of 3 benefits a company might obtain from the globalization of markets.
Remuneration management is defined as the sum received for an employment or service delivered, this includes the money received on a monthly basis as well as benefits given as rewards (investopedia,para.1 ). Individualism need to be taken into account when implementing these remuneration structures or reward schemes, equal pay plays a role in balancing earnings among the diverse workforce (Shen, Chanda, D’Neetto and Monga,2009,p.241). The Woolworth’s Holdings uphold remuneration policies which have the purpose of making sure to attract and hold on to the best talent, that they are congruent with the strategies of the company and are the determinants of performance during the short and long phases. The policy considers the board members and the employees. This policy manages employees of the company by giving...
2). Looking at performance-related pay in the framework of reinforcement theory believe this system of payment and compensation “suggest that pay can be used to create consequences for desired behaviors such as high performance that will in turn reinforce the behaviors” (p. 2).
The total pay package has a direct impact on the successful recruitment, selection and the retention of staff within any organization. This pay package is critical for any business to remain competitive in today’s business world. Competitive compensation packages are vital to both large and small organizations as they encourage the retention of talented staff.
This case presents the financial challenges that faced Mark's company. It is a large hardware, furniture and building center. It had been negatively affected by the global downturn. There was no increase in wage since last two years. Mark faced a dilemma regarding how to manage the upcoming wage review process. Employees are unhappy about the reward process. The morale of many employees is very already low, and no wage increase this year will push them over the edge. Many internal employee problems have surface. Many employees are careless in the work. However, some employees are hard working with a good performance under the same financial challenges. Mark beliefs that a good reward system should be designed to attract, retain,