(solved) Business Report of LEGO
Added on 2020-10-05
23 Pages5897 Words231 Views
Business Report
Table of ContentsINTRODUCTION...........................................................................................................................1Overview and background of research........................................................................................1Research aim...............................................................................................................................1Research Objective......................................................................................................................1Research Questions.....................................................................................................................2Rationale of Study.......................................................................................................................2Literature Review.............................................................................................................................2Concept of reward system...........................................................................................................2Main issues that impacts upon employee’s performance level...................................................3Benefits of financial reward system on the performance of LEGO employees..........................4RESEARCH METHODOLOGY.....................................................................................................5RESEARCH OUTCOME..............................................................................................................18Alternative methods:......................................................................................................................19CONCLUSION..............................................................................................................................19REFEENCES.................................................................................................................................21
INTRODUCTIONOverview and background of researchReward systems are mainly used by business organisations in order to improveemployees performance. This system is mainly concerned with effective implementation ofstrategies and formative policies with the help of which performance of employees is enhanced.It is important for an organisation to frame strategies relating to reward system in theirmanagement in a highly equitable and fair manner (Zatorre, 2015). Reward system consistsevaluating and giving compensations, remuneration and benefits to employees that can be inmonetary and non monetary form. These system mainly include, practices, payrolladministration, executive pay, team reward and minimum wage. Present case study has beenconducted on, LEGO which is a construction set company in Denmark and patented in UnitedKingdom. Company expanded its business by producing plastic toys. Organisation is currentlylooking forward to expand their area of servicing for this it is essential for company to strengthentheir labour base. This objective of company can be easy be fulfilled with the formativeimplementation of reward system technology and strategies. In context with this, top levelmanagement team of company is planning to formulate and effective research on the concept ofreward system that will effectively benefit them to maximise their command on the operationalactivities in an international market. In context with this, aims and objectives of this present research is developed byresearcher. With help of this, researcher will effectively able to understand present trends,challenges and benefits of reward system that will benefit company to stimulate their growth.With references to this, mentioned below there aims and objectives of research of LEGO isdescribed below in descriptive way: Research aimThe research aim for present investigation is“Investigating the potential effect of rewardon employees' performance. A case on LEGO”Research ObjectiveTo identify the concept of reward system.To analyse the issues which occurs that impacts upon employee’s performance level.1
To examine the benefits of financial reward system on overall LEGO's performance levelof staff members.Research QuestionsWhat is the concept of reward system?What are main issues that impacts upon employee’s performance level?What are the benefits of financial reward system on overall LEGO's performance level ofstaff members?Rationale of StudyMain motive of this research for LEGO is to maximise company profitability through the processof improving its organisational activities in a global market along with having moderate amountof knowledge on the subject of reward system and its influence on business. Next purpose ofpresent company is to analyse estimated number of population having knowledge about company. In the section of academic sector, this research will benefit learner to expand future study scopeand enhance their skills and knowledge base. In addition to this, research will aid learner toidentify various opportunities along with developing professional skills. This will lead towardshigh end career growth for company. In relation with researcher, major purpose of investigator isto increase knowledge about LEGO and their activities and operations in internationalmarketplace. This will benefit researcher to work with same company in future as per accordanceto expertise zone. Literature ReviewConcept of reward systemAs per the thought given by Al-shaibah and Habtoor, 2015 reward system is formativeprocedure and regulation which is mainly associated with systematic allocation of compensationsand benefits to workers. This is one of the most important system as each and every organisationwants to extract best out of their employees. For this it is required to recognize employeeproductivity and effectiveness. Therefore, reward system acts as an one of the most affectivemotivating factor that will lead towards both organisational and workers high end growth. In this,LEGO which is an construction set company motivate their staff by giving them attractivereward base and rank them as per according to their efficiency and output. Reward system aidemployees to gain recognisance which ensure their high level of performance. This system can2
be in financial and non-financial way which is offered to employees who render their services inbest effective way. All these schemes that are provided to employees efficiently influence theirbehaviour and strengthen their engagement in organisational activities. Reward system is mainlya process in which effective formulation of strategies and policies are done with a aim to treatand reward employees in fair, equatable and constant way (Rolls, 2016). This system not onlyensure employee high growth but also strengthen organisation, individual and team performancelevel. Along with this, LEGO by taking advantage of different types of motivational tools caneffectively appreciate their employees and increase their contribution towards organisationfunctions. There are different types of reward system measure including, intrinsic and extrinsicwhich is used by company to appreciate performance level of their employees. This system ofreward and benefits generate feeling of respect among employees. In the section of intrinsicreward system there are certain basic things include that are, recognisance, achievement, jobsatisfaction, job enrichment, empowerment, job enlargement, personal growth and status andteam working. While in Extrinsic reward factors certain factors included in this are, workenvironment, social relationship, fringe, incentives, base wage, promotion and benefits. All theserewards system is effectively use by LEGO to increase productivity level of their employees. Main issues that impacts upon employee’s performance levelPerformance management is considered as bureaucratic process by HR which gives novalue or add little value to organisation (Anitha, 2014). If Lego do not have performancemanagement within their working structure then they need to improve their working structure.There are different issues which affect performance of employees are mentioned below:Lack of strategic focus: Goals and strategies of organisation must be merged inperformance management process for delivering real value business. Lego needs to befocused and should not have lots of goal as this create confusion, unalignment andinefficiency of employees. Performance management must focus on critical goals bywhich employees can understand day to day objectives of work.Lack of meaningful and timely feedback: Employees should not wait for feedback ofperformance review. As this will make employees of Lego blindsided which can lead todisengagement, frustration, confusion and disappointment. This will disengagement willdemotivate employees and they will be less productive. For this management of Lego3
must ensure that their employees are provided with timely and meaningful feedback bywhich they can review their performance.Lack of proper communication and training: Without effective training employees willnot understand working structure of Lego. For this it is essential for managers and leadersof Lego to provide their employees with necessary training. It is necessary thatemployees have good communication skills by which they can communicate effectivelywith their clients and other employees or management of Lego. This will also havesignificant and positive impact on their performance.All these issues affect LEGO in both positive and negative manner and hamper itsgrowth. This will also lead towards lowering down of employees performance whichautomatically create numerous obstacles in company developmental path. These issue impact oncompany performance and decrease their ratio of growth for this, it is important for company toframe effective strategies and policies to improve their reward management section. This will notonly aid employees to increase their performance but also help company to increase their overallrate of productivity and profitability. Benefits of financial reward system on the performance of LEGO employeesFinancial reward system is concerned with rewarding employees with monetaryincentives. This method is adopted by the organisation for the purpose of positively impactingperformance level of employees . It is one of the vital factor that helps in motivating individualto work more effectively (Bassous, 2015.). This system comprises of monetary factors such ascompensation, bonus, commissions etc. One of the psychological aspect of human's is attachedwith that, they feel the need to satisfy their Ego. Due to this reason they linked their success withtheir financial achievement hence this method helps in boosting self esteem. Awarding workerswith appropriate salary which is particular amount given at the end of particular period is veryimportant, as money is essential for the survival and every individual work for living. Providingeffective compensation for performing certain task has led to the improvement in theperformance level of LEGO's staff members. It can be seen from the fact that organisation hasachieved profits and growth and the employees are performing expectationally well. Due to thetime rate pay factor of Financial reward system, has provided benefits of getting paid forworking every hour. This has led to increased satisfaction level in the staff members of LEGOand as a result they have become more committed towards the company. When employees feel4
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