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Performance measures likely to have greatest performance
impact on management behavior
Introduction
Performance targets is the main determinant of employee pay and if repeated
continuously the becomes like the character of the organization (Houldsworth, E. &
Jirasinghe, D., 2016). Failure to meet target may
demoralize the company owners and shareholders and inform their decision to
reduce pay. The vice versa is also true. The year 2019 was one of the best
years for Newcrest gold mining company as it saw its shares rise by 0.63 % in
the Australian Stock Exchange (ASX). The success and increase in revenue by Newcrest
gold mining company is accredited to its most valuable assets, the people
(human resources). This is according to its post professional linked in page.
When the working conditions for
management at Newcrest gold mining company are favorable for the top managers of the organization, then most
likely their performance will be favorable. The current Chief Executive Officer
(CEO) and Managing Director Dr. Sandeep Biswas in an article is quoted as
saying sharing how societal authorization is received by being honest and
acquiring conviction via activities.
Newcrest gold mining company is an unhedged fabricator
of gold endowed with a strong balance sheet and a strong cash flow. The company
is therefore capable to deliver a competitive salaries and wages to its
employees and motivational compensation to its shareholders and executive
management.
The mission of Newcrest gold mining company is to
yield bigger revenues to investors by discovering, developing and operating minerals
and more specifically copper mines and gold mines.
Executive
pay as an Incentive
Executive
compensation or executive pay Newcrest gold
mining company is composed of the financial compensation and other
non-financial awards received by an executive from their firm for their service to the
organization. Executive pay is
an important part of corporate governance, and is often determined by a
company's board of directors (Houldsworth, E.
& Jirasinghe, D., 2016). Executive pay includes executive salary,
executive benefits, executive perquisites (Perks), annual executive incentives
and bonuses and performance bonuses which entail long term incentives and short
term incentives.
Executive
compensation is a very vital issue
for investors of Newcrest mining company to think through when making
decisions. An incorrectly compensated executive can cost shareholders money and can yield an executive who lacks the incentive to increase profits and
boost the share price.
Remuneration
and Ethical Behavior
Ethical behavior- Ethical behavior requires that
there is equal work for equal pay. This is a moral principle that owes its
origin from the holy bible which says that give to Caesar what belongs to
Caesar and to God what belongs to God. It is backed up by another biblical
reference that says he who has not worked should not eat. At Newcrest mining
company, the management offer competitive remuneration and packages. There are
several incentive arrangement including short- term and long term incentives to
employees who are eligible to benefit from them. There are various development programs
which enhance the employee’s professional development opportunities across the
company (Landy, J.
& Farr, L., 2013).
At Newcrest company there’s is also relocation
assistance. For those employees who are moving from one state to another or
country, the company is in a position to do everything to ensure that workers
have smooth transition by giving relocation entitlements and support to them
and their family. There are also assistance study schemes to employees who
undergo part time study to further their careers. The company is in a position
to give assistance to such employees.
Paternal
leave
Newcrest Company provides meaningful financial and non- financial
support in all stages of parental process. The program differ in country, or
with support mechanisms and benefit that include paid leave.
Motivational theory- This concept recommends that there exists actually two incentive structures: intrinsic
and extrinsic which matches to the two kinds of motivators: intrinsic
motivators: Achievement, responsibility and competence. Motivators that are
derived from the actual performance of the task or job (Wautelet, T., 2017). The intrinsic
interest of the work.
The major content models are: Maslow's needs hierarchy,
Alderfer's ERG theory,
McClelland's achievement motivation and
Herzberg's two-factor theory.
The major process theories are:
Skinner's reinforcement theory,
Victor Vroom's expectancy theory,
Adam's equity theory and
Locke's goal setting theory.
Management
control theory
A management purpose which is aimed at achieving defined goals
and objectives within a given period of time, and usually understood to have three main components: (1) setting
standards, (2) measuring actual performance, and (3) taking corrective action (Wautelet, T.,
2017).
Management
control can is defined as a organized
effort by business management to
compare and contrast the performance to predetermined standards, plans, or
goals in order to determine whether performance is in line with these standards
and presumably in order for a company to take any remedial action required to
see that resources are put in place.
The 3 Types of management controls are Visual, Procedural, and Embedded
The four stages in the control process are creating set standards
and Methods for Measuring Performance, Determination of Whether the Performance
Matches the Standard, and Taking Corrective Action (Fargus, P. 2014).
Analyze how such results relate to reviewed company
Through the company’s remuneration system and
motivation of workers, Newcrest mining company was able to report a statutory
profit and an underlying profit of US 561 million, which was higher than the
other years. Newcrest limited achieved very good results in the stock market
for the financial year 2019. The company’s
strong operating and financial performance allowed it to reduce the debts they
had and strengthened the balance sheet as improved dividends to shareholders
with the year recording 19% higher than the previous years.
References
and Bibliography
Fargus, P. 2014. Measuring and Improving Employee
Motivation. Upper Saddle River, NJ: Financial Times/Prentice Hall.
Houldsworth, E., & Jirasinghe, D. 2016. Managing
and Measuring Employee Performance. London, England: Kogan Page Publishers.
Landy, F. J., & Farr, J. L. 2013. The
Measurement of Work Performance: Methods, Theory, and Applications. New
York. Routledge Publishing.
Wautelet, T. 2017. Work Motivation. Can the
Productivity Measurement and Enhancement System (ProMES) motivate employees?
Munich, Germany: GRIN Verlag.
Worsch, M. 2014. A better Employee Motivation
through the Application of Public Feedback Processes: Enhancing the
Effectiveness of Job Appraisals. diplom.de.
