Part 1

Describe about the Human Resource Management for Perspective of Organisation.

Exclusive Foods Pty Ltd is a known retail brand having 17 stores operating in New South Wales, Australia. The company has created a brand image for itself by providing high customer service to the customers. Customers are offered with the finest quality food products along cookware, cookbooks, utensils and wine. However, the statistic data of the company indicates that the employees are dissatisfied with the remuneration and benefit structure that increases the turnover rate. This imposes a threat to the business of Exclusive Foods Pty Ltd and therefore the managers of the company decides to undertake new remuneration benefits in order to deal with the issues of high turnover rate. The new remuneration and benefits initiative helps the company to increase the satisfaction level of the employees that is further beneficial in decreasing the turnover rate of the company.

Exclusive Food Pty. Ltd employs remuneration strategy in which the employees are paid equally. The employees who have high performance are paid the similar salary package as that of the under-perform employees. The managers need to improve this area, as the employees are de-motivated and dissatisfied by the remuneration structure (Coginand Williamson2014).

Moreover, there is less opportunity for the employees to develop their career as the company focuses only on the profit and not on its people. The flexibility is limited and there is no increase in the pay. The employees are not provided clear instruction about their allowance, penalties and leave. These factors create the opportunity for new remuneration and benefit initiatives. The operational expenses of the company are high that acts a hindrance for high remuneration packages (Grahamet al. 2013).

The managers of Exclusive Food Pty. Ltd needs to allocate the remuneration structure as per the performance of the employees or the company can keep the pay scalesame and offer incentives as per the performance level. The incentive benefits will motivate the employees to improve the productivity of the employees and thus help to retain more employees. The company needs to pay attention towards the employee needs and training opportunities need to be developed (Shieldset al. 2015). The link between the effort of the employees, their performance and the monetary rewards should exist in the company.

The remuneration and the benefit plan of Exclusive Food Pty. Ltd is compared with its competitors in order to ensure that the company is able to attract and retain the employees suitable for accepting the challenges of future remuneration and benefits offered by the company (Rees and Smith2014).

Part 2

From the analysis of the salary survey of the competitors of Exclusive Food Pty. Ltd, it can be inferred that the companies offer better and attractive salary packages to its employees. The incentives offered to the employees are higher in number that provides job satisfaction to the employees. However, Exclusive Food Pty. Ltd does not offer the employees any such incentives for their performance that can help to increase the motivation level (Brattonand Gold 2012). Furthermore, the organisational policies of Exclusive Food Pty. Ltd is almost related to the profit enhancement of the company and pays less concern towards the policies related to the staffs.

The two positions withinExclusive Food Pty. Ltd that is chosen are the managers and the employees. The industrial agreement for the managers includes the consultation process, procedures for resolving the disputes and deducting the wages in case of any purpose authorised by an employee (Baconet al. 2013). The industrial agreement of Exclusive Food Pty. Ltd includes the wage rates and the employment conditions of the company such as overtime, meal breaks and working hour of the employees. The awards of the company deal with minimum wage rate, annual leave, the hour of work, overtime and casual rates, allowance etcetera (Hendry2012).

The market rate survey of Exclusive Food Pty. Ltd infers that the company operate offers in a high competitive market. The managers of the company face competition from its rival organisations as the management system of the competitors are more developed from Exclusive Food Pty. Ltd. this causes a threat on the company’s performance level. The employees of Exclusive Food Pty. Ltd has higher level of competition as the employees in the rival company are more motivated and productive that increases their performance level than that of Exclusive Food Pty. Ltd (Zareen, Razzaq and Ramzan 2013). Thus, Exclusive Food Pty. Ltd has the high level of competition in order to gain higher market share. The company needs to provide better remuneration structures to the employees to increase the employee productivity and the performance level of the company as a whole.

The remuneration plan of Exclusive Food Pty. Ltd is to increase the incentive percentage offered to the employees. The current remuneration process of Exclusive Food Pty. Ltd is not effective in providing satisfaction to the employees. Thus, the remuneration plan helps the company to develop better remuneration and benefit structure that helps to satisfy the employees and retain those employees (Young2016).

Part 3

Aligning the remuneration and benefit plan with the performance management system of Exclusive Food Pty. Ltd helps to increase the performance and productivity of the company. The managers of the company are able to decide the exact percentile of incentive to be allowed to the employees and adjust the plan according to the need of the company.

The salary packaging of Exclusive Food Pty. Ltd helps to meet the organisational policy such as ensuring that the workers are not exploited. The salary structure is kept consistent with the long-term strategy of the company. The transparency in terms of the reward strategy of the company is obtained with the help of the remuneration plan of Exclusive Food Pty. Ltd (Plc 2013).

The incentive arrangement such as the bonus and the promotion of Exclusive Food Pty complies with the organisational policy and the legal requirement of the company as the incentives make the employees feel valued. The operational and the employee benefit cost of Exclusive Food Pty. Ltd is reduced with the help of the incentive arrangement.

The three pieces of legislation that Exclusive Food Pty. Ltd needs to make in order to make the regular monetary contribution are superannuation, concessional contribution and super guarantee contribution (SGC) threshold. The superannuation policy of Exclusive Food Pty. Ltd is designed for the welfare of the employees. The employees make the regular contribution in the fund for the future pension. The fund amount increases typically without the implication of tax until withdrawn or retired. The concessional contribution indicates that the employees of Exclusive Food Pty. Ltd takes before-tax contribution to the fund, which has low tax rate. The super guarantee contribution (SGC) scheme indicates the maximum amount that the employee can contribute to the fund is $4826.75 per quarter.

The three methods by which Exclusive Food Pty. Ltd can ensure that the minimum entitlement is offered to the employees are registering to NES, pay rates and leave. The National employment standards (NES) under the fair Work Act 2009, provides minimum entitlements such as flexible working arrangements, maximum weekly hours of work and much more (Oke 2016). The pay rate helps to measure the minimum wage, penalty rates, and overtime etcetera. The employees are entitled to certain limited leaves such as the annual leave, sick leave, public holidays, long service leave, maternity leave and other few leave.

The remuneration plan of Exclusive Food Pty can be effective in achieving an effective alignment between the action of the employees and the company’s objectives. The managers are able to retain the potential employees of the company and the employees are able to receive a stake in the success of the company. The remuneration plan of Exclusive Food Pty also acts as an effective cost-control mechanism which is an extra benefit (Purce 2014).

As per the feedback from the managers, the ratio of the salary and the incentive is changed and made into 60%-40% ratio. Along with the incentive benefits, the introduction of performance-based promotion is made that allows the employees to develop and grow by increasing their performance level.

In order to keep a constant track on whether the plan remains aligned with the organisational policy and legal requirement, it is necessary for the managers to receive and give proper feedback to the employees.

Conclusion

The above study highlights that the new remuneration strategy of Exclusive Food Pty will help the company to increase the satisfaction level of the employees and thereby decrease the turnover rate. The productivity of the employees can be increased with the introduction of the new remuneration plan. However, the organisational policies and the implementation impact needs to be looked over for the success of the plan.

References

Hendry, C., 2012. Human resource management. Routledge.

Bratton, J. and Gold, J., 2012. Human resource management: theory and practice. Palgrave Macmillan.

Purce, J., 2014. The impact of corporate strategy on human resource management. New Perspectives on Human Resource Management (Routledge Revivals), 67.

Oke, L., 2016. Human Resources Management. International Journal of Humanities and Cultural Studies (IJHCS)​ ISSN 2356-5926, 1(4), pp.376-387.

Zareen, M., Razzaq, K. and Ramzan, M., 2013. Impact of employee retention on performance: the moderating role of employee psychological perception towards retention plan. Interdisciplinary Journal of Contemporary Research In Business, 4(10), p.822.

Plc, D.P., 2013. Remuneration Policy and Practice. Policy.

Shields, J., Brown, M., Kaine, S., Dolle-Samuel, C., North-Samardzic, A., McLean, P., Johns, R., Robinson, J., O’Leary, P. and Plimmer, G., 2015.Managing Employee Performance & Reward: Concepts, Practices, Strategies. Cambridge University Press.

Graham, J.R., Hanlon, M., Shevlin, T. and Shroff, N., 2013. Incentives for tax planning and avoidance: Evidence from the field. The Accounting Review, 89(3), pp.991-1023.

Rees, G. and Smith, P. eds., 2014. Strategic human resource management: an international perspective. Sage.

Cogin, J.A. and Williamson, I.O., 2014. Standardize or customize: The interactive effects of HRM and environment uncertainty on MNC subsidiary performance. Human Resource Management, 53(5), pp.701-721.

Bacon, N., Wright, M., Ball, R. and Meuleman, M., 2013. Private equity, HRM, and employment. The Academy of Management Perspectives, 27(1), pp.7-21.

Young, J.D.A., 2016. Evaluating Key Factors of Innovation as a Corporate Strategy. The International Journal of Business & Management, 4(4), p.270.