Evidence-Based Management Presentation

This presentation focuses on evidence-based management and its relevance in the case of Woolworth Group, a leading Australian enterprise in the retail industry. It discusses the adoption of HRM practices, specifically compensation management, to address issues related to performance management and high turnover rate. The presentation explores the benefits of compensation management, such as attracting top talent, rewarding and retaining staff members, boosting employee motivation, ensuring compliance, and maximizing ROI. It also discusses various theories of compensation management, including reinforcement theory, equity theory, and agency theory. The presentation concludes with recommendations for Woolworth Group to reduce turnover rate and improve performance management.

PROJECT 2: EVIDENCE-BASED
MANAGEMENT PRESENTATION

DESCRIPTION OF THE
ORGANISATION
 Woolworth Group as a leading Australian enterprise
operating in the retail industry has been chosen.
 It is also remarked as the 2nd largest organisation in
Australia in terms of its generated revenue.
 With a foundation year of 93 years, it is operating with
more than 202, 000 number of employees at 3 major
locations namely Australia, New Zealand and India and
hence depicts to be a large scale company.

ADOPTION OF HRM PRACTICE
 Despite of it, the quoted entity is currently facing certain
number of issues related to the performance management
of their workers with a high rate of turnover as well.
 This in turn is declining the quality of their products and
services to a great extent by negatively affecting the
business.
 Considering this, the human resource management
(HRM) practice of compensation has been selected over
here to carry out this study.

RELEVANCY OF THE PRACTICE
 The present report is based on an Australian company
named Woolworth Group that is currently facing some
HR related issues due to an increasing turnover rate of
their employees.
 It has therefore led to a concerning circumstances where
the HRM of the cited entity is unable to retain their
workers.
 For this purpose, compensation management is referred
to be one of the most effective tool for retaining the
employees by keeping them motivated at work.

CONT…
 A general idea of compensation management in the mind
of HR’s is to recompense adequate sum of payments to
the workers in exchange of the work assigned to them.
 In which, the set salaries and wages should be decided
within the company’s set budget.
 However, they hereby fail to understand some additional
objectives of compensation management that in turn
impact upon the enterprise and leads to higher the rate of
employee turnovers at the workplace.

CONT…
Some such objectives are-
To attract top talent at the workplace
To reward and retain the staff members
To boost up the motivation level of the
employees
To stay complaint
To maximize the ROI

TO ATTRACT TOP TALENT AT THE
WORKPLACE
 This is on considering a principal goal of
compensation management that leads to hire a
qualified set of employees at work.
 It is thus important for the HRM of Woolworth
to design a contending plan of compensation for
their workers.

TO REWARD AND RETAIN THE
STAFF MEMBERS
 This is referred to be yet another benefit of an effective
compensation management where the HRM of the
quoted firm is required to determine the existing market
value and accordingly consider paying the workers.
 Applying pay for performance model is also evident to
bring effective results where it will also result in
acquiring exceptional performance from the personnel.
 This way, the employees will be encouraged to reach to
their new goals and objectives and get rewarded for the
same.

TO BOOST UP THE MOTIVATION
LEVEL OF THE EMPLOYEES
 It is also with a similar consideration of retaining a large
set of employees and get quality work from them.
 For which, the HRM of the cited company is required to
build up a well-structured plan of compensation as a way
of driving a sense of motivation in the workers.
 This will also raise the job satisfaction level of the
workers where they will operate with a much more
productive as well as committed outlook towards the
work.

TO STAY COMPLAINT
 It is basically to discourse upon the compliance
of the designed compensation management plan
where it must abide by the federal rules and
regulations like the Fair Labour Standards Act.
 This is proven to protect Woolworth against any
legal proceedings by assuring equality all across
the board.

TO MAXIMIZE THE ROI
 This being one of the hardest job of HR’s needs
determination to design such a compensation plan that
not only stays within the set budget of the company but
also leads to drive a greater sense of productivity in the
workers.
 This is for instance to make an effective use of pay for
performance with several other motivational strategies
that presents an equitable agenda for both the firm as
well as the diligent employees at the workplace.

CONT…
 Beside this, there together exist various theories of
compensation management that can be applied by
Woolworth for a proper structuring of their existent
plan.
 This involves-
Reinforcement theory.
Equity theory
Agency theory.

REINFORCEMENT AND
EXPECTANCY THEORY
 It states that a reward earning behaviour of worker is
expected to repeat.
 It is based on assumption where an employee who is
acknowledged once for a certain task is likely to repeat it
again.
 This relates with that to the expectancy theory of Vroom
where a worker is proven to attempt a specific thing for
which, he or she is assured of being recognised.

AGENCY THEORY
 This theory is based on a likely consideration of aligning
the interest of 2 main stakeholders in the organisation.
 This indicates a vital existence of both an employee and
an employer who are having a distinct set of thought
regarding payments and remunerations.
 It is on referring to the notion of this theory where the
salary paid to the employees is stated to be an agency
cost.

EQUITY THEORY
 This theory is intended to bring consistency in the
designed pay structure where the employees should be
remunerated sufficiently.
 It is on considering a fact where in case a worker is not
satisfied of his or her salary and thinks it to be
inadequate in exchange of his or her performance, then it
will directly lead to reduce his or her efficiency.
 Also, it will lead to an increased rate of absenteeism and
a high rate of turnover affecting the entire organisation to
a great extent.

RECOMMENDATION
 All of these theories suggests that the compensation should be
settled on the basis of an employee’s work performance as well as
his or her behavioural outcomes.
 Woolworth is hereby recommended to apply the reinforcement
theory of compensation with some additional strategic tools and
theoretical models of motivation to reduce the turnover rate at their
workplace.
 Also, in relation to their present performance management system,
they are advised to follow a structured procedure of performance
management.
 This is to ensure that their workers are meeting the set corporate
goals and objectives and should be assessed regularly.

REFERENCES
 Ratio, D.P., 2013. Key performance indicators. Policy. 40.
pp.60.
 Rothaermel, F.T., 2015. Strategic management. McGraw-
Hill.
 Booth, S.A., 2015. Crisis management strategy:
Competition and change in modern enterprises. Routledge.
 Humphreys, K.A., Gary, M.S. and Trotman, K.T., 2015.
Dynamic Decision Making Using the Balance Scorecard
Framework. The Accounting Review.

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