The effect of the introduction of individual performance based remuneration within Alpha Cement

• Main Author: Swanepoel, Stephen David
• Published: 2012
• Subjects: Performance awards; Compensation management; Wages and labor productivity; Merit pay; Alpha (Pty.) Ltd.
• Online Access: http://hdl.handle.net/10210/5557

M.B.A. === Many organisations have approached employee remuneration in new ways in recent years. Most of these new approaches are based on the principles of aligning a portion of individual or team remuneration to achievement against specific goals. Such systems are most commonly referred to as performance based remuneration systems. Alpha (Pty) Ltd has very recently introduced a performance based remuneration system aimed at individuals within the organisation. It is evident that there is no single system that can be applied across the infinite number of organisations globally, and that developing any ideal performance related system requires careful consideration of many variables. To develop and implement an effective system within any organisation, requires custom tailoring the system to best suit that organisation. This research paper aims to analyse what impact the introduction of an individual performance based remuneration system has had within the cement business unit of Alpha (Pty) Ltd, how the findings of the research compare to the theoretical reference on the subject, and whether there is room for improvement to the existing system.