Abstract
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.