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The 60-strong adjusting workforce is distributed across the country, with only a small team in the Victoria St office. They are a very mobile workforce, most of them don’t have a desk or an office, instead working from cars and home offices. The adjusting workforce also an issue identified by the consultant. Contemporary insurance practice was to have a very small team of adjusters who handled long-term cases, and contract independent adjusters for everything else. In contrast, JI’s adjusting workforce did nearly all adjusting activities. There were two reasons where external adjusters are used;

1) Were in outlying areas and in west Malaysia, where it was unfeasible for JI staff to travel for hours to investigate a single case, and

2) Where serious fraud was suspected or highly technical specialist investigations were needed.

Your task is to form a plan for achieving the Board’s strategy of splitting the company in two, preparing one half for sale, and the other half to start focussing on their new business niche. This assignment is formed so you can complete one part of it each week immediately following class, and we strongly recommend this.

As a minimum, your report must cover the following items. These are covered in the order they appear in the session guide.

Please note, these topics are a minimum, and not an exhaustive list. You need to use your best judgement to form a remuneration plan that meets the need of the changing organisation:

1 Introduction to unit. Human resources strategy and organisational strategy.

  • Alignment of HRM activities and strategy with corporate strategy.

2 HRM’s role in change management – principles and models.

  • Using HRM activities and structures to prompt, actualise, and re-freeze change.
  • Minimising staff loss at times of change.

3 Principles and practice of HRM Ethics, Corporate Social Responsibility, Occupational Health and Safety.

  • Applying the principles of CSR, OHS, and HR ethics to the change project.

4 Organisation and job design for high performance and staff engagement.

  • Using the period of change to reorganise and redesign jobs for satisfaction, performance, and commitment. At least one redesigned job role to be explained.

5 Advanced staff selection and/or staff promotion.

  • Selection processes for moving internal staff around the redesigned organisation, while observing the practices of CSR and Ethics

6 Human resources development.

  • Using HRD activities to prepare staff for effective performance in the changed environment.

7 Workforce planning – upsizing, downsizing, reallocation.

  • Show a method for choosing which positions are redundant, how to offer Voluntary Redundancies, how to reallocate.

8 Strategic remuneration models and costing.

  • Argue a case for position-based remuneration or skills based remuneration, or a combination of both. Use an example position to demonstrate your model.

9 Strategic rewards and incentives.

  • Choose one position and design an incentive scheme.

10 Industrial relations strategies and practices.

  • Argue a case for either staying with, or disengaging from the TAFEP and the NWC.

11 HR evaluation

  • Create an HRM evaluation plan, and advise how data will be collected and used.

Basic remuneration

Remuneration is regarded as the compensation for employment services and it takes into consideration salary compensation, fringe benefits, hourly wages and other sort of benefits. Remuneration strategies differ from across firms and industries. The concept of remuneration strategy is very broad and its key elements involve basic remuneration, performance based incentives, profit sharing policy, non financial incentives, sales commission structure etc (Bertone & Witter, 2015). Remuneration strategy of the Johor Insurance serves as a basis for planning along with addressing the challenges throughout the enterprise. Further, in case if effective strategies are developed then it acts as motivation tool for the staff members.

One of the most basic types of remuneration is periodic one. As per basic remuneration workers are paid as per the time spent by them on work. It must involve both long and short term incentives so that employee can actively participate in the business affairs.

It is considered as one of the most appropriate technique where staff members are provided compensation on the basis of their performance (Rees and Smith eds., 2017). Further, they prefer to apply larger efforts in business operations so that more incentive can be gained through performance improvement.

This type of policy encourages staff members to consider goals of the firm. Profit sharing can be earned in the form of cash, stock options, shares of company stock etc (Stachová, Stacho & Bartáková, 2015). The main idea behind this type of policy is on enhancing performance of staff members along with the organization.

Employees are also benefitted from non financial compensation which is in the form of favorable working environment, advancement opportunities, fringe benefits and awards for recognition.

Staff members are provided performance based incentives as part of their compensation. In case of many firms they have developed policy to offer sales people as a percentage of the selling price of the product which is sold (Bertone & Witter, 2015).

In order to operate efficiently it is necessary for every organization to bring possible change in the existing reward strategy. Through this it is possible to maintain motivation level of the staff members and in turn acts as development tool for the company. Reward strategy must be based on performance of the employee working in Johor Insurance so that it can encourage individual to take active participation in all the activities. Further, it must be ensured that incentive plan is equal in case of both men and women so that equal participation in the business affairs can be attained from them (Stachová, Stacho & Bartáková, 2015).

Involvement of employees at the time of developing incentive plan can prove to be successful for business as through this staff members will receive more monetary benefits. In many cases it is required for firm to bring change in the reward practice such as in case if staff members are highly demotivated then combination of both monetary and non monetary reward is needed. So, this allows maintaining productivity level of the business and brings favorable results in every possible manner.

Performance based incentives

Different models of strategic remuneration are present with the help of which it is possible to deliver effective compensation to the employees in Johor Insurance as per their real expectation. Below are some of the models of strategic remuneration:

Resource package fees: It relies on detailed scope of work along with resource plan for a defined period which helps in knowing about the workforce requirement of company. It is one of the most common model in the market. It is based on salary cost of the required number of individuals at a % of their annual billable hours (Rees and Smith eds., 2017). The key benefits associated with this model are that company can know its income and can allocate resource accordingly.

Variable fees based on actual hours: Fees are directly associated with the actual time spent using an hourly charge out rate for every employee. Charge out rates are determined with the motive  to cover agreed profit margin, staff salary and overhead factor. The key  advantage of this model is that it is easy to administer, flexibility is present as per the work changes.

So, these are the two effective models of remuneration which are undertaken with the motive to deliver effective compensation to the staff members so that they can contribute maximum in the business affairs.

Below shown is the checklist which can be used as sales incentive plan (1=Best, 4 Worst)

Effectiveness Measure






Accomplishing m marketing goals

Internally equitable

Complies with the marketing cycle


Match between sales incentive ROI


Highlights individual effort

Simple and easy to understand

Satisfies career income  needs

This method is considered to be effective in understanding about the underlying cost structure. As per this costing method all the major activities are segregated and cost of production is assigned to every activity in Johor Insurance. It is possible that cost per activity is linked with the services that are rendered. Activity based costing can be beneficial to understand the level of costing and accordingly different activities of business can be managed.  

Position based remuneration or job based remuneration is considered as a traditional structure of pay. Furthermore, it is completely different from knowledge based pay system which is more commonly used now (Shields et al. 2015). For the purpose of developing a remuneration plan for marketing manager of Johor Insurance, position based remuneration model has been taken into consideration. The rationale behind this is that the above mentioned model helps companies in eliminating all form of discrimination practices in the process of remuneration.

It can be stated that in a country like Singapore, the basic pay of marketing manager is around 67,782 SD per year. Furthermore, the remuneration plan is affected by factors such as experience and skills of the marketing manager. Apart from this, a team of personnel’s will be developed and the team will be responsible to carry out the evaluation of marketing manager’s performance over a particular period of time.

A transparent and fair policy of performance evaluation will be taken into consideration with a purpose of developing sense of satisfaction among the manager. The social exchange theory also lays emphasis on the fact that interactions of an individual mostly relies on the kind of punishment and rewards he/she receives or expect from other (Botha, 2016). Furthermore, the assessment of reward punishment is carried out with the help of methods such as cost benefits analysis.

Profit-sharing policy

The team will be setting up certain parameters of performance and the manager will be required to meet those parameters in order to become eligible for getting remuneration. Skilled based pay; commission and award based pay will be the basic components of the marketing manager remuneration plan.

Johor Insurance will need to consider wide range of factors to ensure pay equality between men and women. In the new position based remuneration plan, the pay will be based on factors such as position hold, knowledge and skills required. Along with this, the HR manager will ensure that no disparities between pay of male and female candidates exists in the company. Value of the position will be taken into consideration at the time of defined the remuneration for the manager. The HR manager and few people from top management will also monitor the raises and promotions at regular intervals in order to ensure that remuneration practices are fair from all kind of biasness (Boston & O'Grady 2015).

Apart from this, equal opportunities for growth and development will be offered to all staff member working in the organization. At the same time, the marketing manager will need to ensure that revenue targets, organization sales goals and profits are accomplished in the best possible manner.    

In order to boost the motivational level and performance of marketing manager, an effective incentive scheme is very essential. For the position of marketing manager in Johor Insurance, sales commission of SD 100 will be used. However, it can be argued that the mentioned commission will not be based on revenues generated by the manager and it will rely on profitability of overall sales. Sales commission will be also provided to marketing manager on acquisition of new insurance orders.

On the other side of this, monetary bonus will be also offered to the manager in situations if the response rate of a particular marketing campaign goes above expectation figures. Monetary bonus to sales manager will be also offered in case if the manager brings and implement ideas which are highly innovative. It can be also expressed that the pay of incentive will be entirely depending upon performance of the marketing manager. Such strategy will help the manager to give best of his/her efforts towards success and growth of selected business enterprise.

Strategies such as employee recognition will be also taken into consideration as majority of the time the work carried out by mid level manager such as marketing manager is not visible to top level of management. The existing scheme will also provide high incentive if the manager is able to carry out complex task and contributes in long term growth of Johor Insurance.


Bertone, M. P., & Witter, S. (2015). The complex remuneration of human resources for health in low-income settings: policy implications and a research agenda for designing effective financial incentives. Human resources for health, 13(1), 62.

Boston, S., & O'Grady, F. (2015). Women workers and the trade unions. Lawrence & Wishart.

Botha, J., 2016. Tax and National Treasury update: asset-based HR-remuneration. HR Future, 2(Feb 2016), pp.36-37.

Rees, G. and Smith, P. eds., 2017. Strategic human resource management: An international perspective. Sage.

Shields, J., Brown, M., Kaine, S., Dolle-Samuel, C., North-Samardzic, A., McLean, P., & Plimmer, G. (2015). Managing Employee Performance & Reward: Concepts, Practices, Strategies. Cambridge University Press.

Stachová, K., Stacho, Z., & Bartáková, G. P. (2015). Influencing organisational culture by means of employee remuneration. Business: Theory and Practice/Verslas: Teorija ir Praktika, 16(3), 264-270.

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