Remuneration and Performance Measurement at MYOB Ltd

MANAGERIAL ACCOUNTING
2019

MYOB Ltd
Executive Summary
The current report is based on remuneration and measurement of performance measurement.
To conduct the study, MYOB Limited has been selected that is listed on the ASX. The report
critically observes the methods, policies and regulations followed by MYOB. The
measurement practices have been studied in the report together with a strong emphasis on the
remuneration report. The report initiates with an introduction followed by the effect of
performance on the ethical behaviour of the organization. Further, the performance measure
of the company has been adequately highlighted.
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MYOB Ltd
Contents
Introduction...........................................................................................................................................3
a) Effect of performance system on the ethical behaviour and culture of the organization................3
b) Performance measure that has the maximum motivational impact................................................5
c) Evaluation of financial & non-financial measures in achieving desired outcomes........................8
Conclusion...........................................................................................................................................11
References...........................................................................................................................................12
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MYOB Ltd
Introduction
The pay of the employee should be ascertained in tune with the performance, knowledge,
skills, as well as traits. Employees that are efficient and consist of better capabilities are
provided performance related pay job format. The formats are provided so that the
performance can be elevated to a greater height. It is noted that most of the organization
utilizes the concept of performance related pay job format so that the employees are
appraised and this leads to more incentives. The main participant of ethical culture is
employees’ perceptions of organizational justice. The following report will shed light on the
employees’ perceptions of organizational justice of a particular HR instrument and its impact
on employees’ ethical/unethical behavior.
a) Effect of performance system on the ethical behaviour and culture of the
organization
The employees of an organization must perform ethically. An interviewer must recruit
employees on the basis of their ethical behavior which can be assessed by means of various
aptitude and personality tests. The management of an organization must perform ethically in
the first place so that the employees get inspired and inculcate the essence of ethics (Peirson
et. al, 2015). The juniors draw huge inspiration from the senior management of an
organization and consider them their role models. Therefore, the activities of the management
are most likely to influence the activities of the team members. The senior management must
instil ethics in its employees by imparting frequent training on a code of conducts,
behavioural guidelines and essence of appropriate decision making so that they can
distinguish between right and wrong, fair and unfair, truth and lies, and so on. Health and
public safety domains are the ones where ethics play a very important role. These domains
run on a number of legally enforced ethical rules which can only work with the assistance of
the ethical culture of an organization (Phillip, Richardson & Michael, 2012). Ethical culture
is a bit complicated in nature and there are multiple factors that influence the same. The
employees must perform in a manner that assists an organization in achieving competitive
advantage and accomplish its long term goals. Performance management helps so as to
ensure that the employees are delivering in the best interest of an organization. The
performance of the juniors is managed by the managers of an organization. Therefore, this
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