Strategic HR Perspectives: Johor Insurance and CUAP Case Study Report

This report provides an in-depth analysis of human resource management practices, focusing on the Singaporean companies Johor Insurance and CUAP. It explores crucial aspects such as workforce planning, including upsizing, downsizing, and reallocation strategies, and delves into strategic remuneration models, emphasizing the importance of equity payment. The report examines the concept of equity between men and women in the workplace, assesses strategic rewards and incentives for employee motivation, and discusses the implications of adhering to the TAFEP and NWC guidelines. Furthermore, it evaluates the HR system, offering insights into its effectiveness. The report highlights the challenges faced by Johor Insurance, particularly its declining market value, and the role of CUAP in revitalizing the company. The analysis underscores the need for strategic HR practices to enhance organizational performance and employee satisfaction, offering recommendations for optimizing workforce management, compensation structures, and incentive programs.

Running head: ADVANCE HUMAN RESOURCE PERSPECTIVES
Advance Human Resource Perspectives
Name of the Student:
Name of the University:
Author’s Note:

1ADVANCE HUMAN RESOURCE PERSPECTIVES
Executive Summary
This report intends to shed light on the various aspects of the effective management of the
present day business organizations or companies. The report intends to study the various
aspects of management through the Singaporean company Johor Insurance and CUAP. The
report will also provide an overview of the various concepts like workforce planning,
strategic remuneration model and costing along with the concept of equity payment. The
report will also provide an analysis of strategic rewards and incentives and will argue whether
the company Johor Insurance should stay with the TAFEP and NWC. Finally the report will
conclude with an analysis of the HR system.

2ADVANCE HUMAN RESOURCE PERSPECTIVES
Table of Contents
Introduction................................................................................................................................3
Workforce planning – upsizing, downsizing, reallocation.........................................................3
Strategic remuneration models and costing...............................................................................4
Equity between men and women...............................................................................................5
Strategic rewards and incentives................................................................................................5
TAFEP and NWC......................................................................................................................6
HR evaluation.............................................................................................................................7
Conclusion..................................................................................................................................8
References..................................................................................................................................9

3ADVANCE HUMAN RESOURCE PERSPECTIVES
Introduction
The advent of globalization has revolutionized the way the various companies as well
as the business organizations conduct their overall business (Wright 2016). Therefore, in the
modern context strategy and effective planning form an important part of the overall business
program. It is commonly seen that the various companies as well as the business
organizations develop their strategies and overall business plan taking into consideration the
needs and the requirements of the business and also the customers. It is seen that with this
particular view in mind the various companies as well as the business organizations spend
considerable amount of time and resources on workforce planning, “strategic remuneration
models and costing”, “strategic rewards and incentives”, “industrial relations strategies and
practices” and HR evaluation (Daley 2012, pp.120-125). This report will take into
consideration these aspects of the company Johor Insurance and its partner company CUAP.
It is to be noted that the company Johor Insurance was at one point of time one of the largest
insurance companies of Singapore however with the advent of the latest technologies and the
rise of other competitors the company has lost much of its market value and is now on the
point of bankruptcy. A new lease of life was infused in the company with the creation of a
separate branch of organization which is called by the name of CUAP.
Workforce planning – upsizing, downsizing, reallocation
It is to be noted that in view of the diminishing business of the Johor Insurance the
“workforce planning – upsizing, downsizing, reallocation” has become an important aspect of
the entire business plan of the insurance company (Williams 2013). Therefore, the company
should try to focus on the effective utilization of the workforce at their disposal. It is
normally seen that there are several sections in the company were the work required of the
employees is very less and the employees therefore just while away their time. The company

4ADVANCE HUMAN RESOURCE PERSPECTIVES
can minimize the amount of staffs in these sections to mitigate the amount of economic
expenditure incurred by it (Beach 2014). One particular segment of the Johor Insurance deals
with the adjusters as well as the claims section. It is to be noted that the company sends the
employees who are unable to perform better to the claims sections as well as the customer
care section where the work pressure is minimum ("JOHOR 1980" 2018). It is often seen that
the work pressure at the claims as well as customer sections is minimum and the night staff of
the company receives less than three calls every night. However, the company shells out a
significant amount of extra capital to make the employees work night. Therefore, if the
company reduces the number of staff in this particular section it will be able to save
significant amount capital. Another segment is the adjuster. It is to be noted that the company
employees full time adjusters to deal with the adjustment of the claims ("JOHOR 1980"
2018). However, if the company employs freelancers then instead of paying them regular
salary it can just pay incentives depending on the amount of work which they complete.
Strategic remuneration models and costing
Another factor which the company needs to take into consideration is the “strategic
remuneration models and costing”. It is to be noted that the company Johor Insurances pays a
higher salary to the employees in order to retain them ("JOHOR 1980" 2018). However, in
the light of the current financial crisis which the company is facing at the moment the
company really needs to start taking into consideration the kind of work which the particular
employee under consideration is doing and then pay him or her salary as per that (Al-
Zawahreh, Abdelghafour, and Faisal Al-Madi. 2012, pp.158-170). It is here that the concept
of equity payment comes into significance. It is to be noted that the present day companies
use the concept of equity payment to determine the salary of the employees on the basis of
the amount as well as the kind of work which they perform (Bell, Reginald, and Jeanette

5ADVANCE HUMAN RESOURCE PERSPECTIVES
Martin 2012). In the context of the company Johor Insurance for example, the employees
belonging to the sales section should be getting more salary than the ones belonging to the
claims or the adjusters section as the amount of work which they are required to do is much
more significant as well as difficult in comparison to the ones which the claims and the
adjusters section does (Bell, Reginald, and Jeanette Martin 2012). It is to be noted that the
company provides almost equal amount of salary to all these sections. However, this should
not be case as the person or the section of the company which is doing more work or giving
more productivity should be given a higher amount of salary.
Equity between men and women
It is to be noted that equity between men and women in terms of salary which they get
also forms an important aspect that the various companies need to take into consideration
(Daley 2012, pp.120-125). The company Johor Insurance pays almost equal amount of salary
to all its employees irrespective of the kind as well as the amount of which they do in the
company. As already mentioned earlier the company needs to introduce equity payment for
the employees and at the same time the company also needs to take into consideration the fact
of the gender equity payment for the process. Here also, the company can take into
consideration the amount as well as the kind of work which the female and the male
employees of the company are doing and if the contribution of both of them is similar then
the company should pay them equal salary irrespective of gender and other factors.
Strategic rewards and incentives
“Strategic rewards and incentives” are another aspect which the company needs to
take into consideration for the retention of the skilled employees. This section of the paper
will take into the one employee from the Johor insurance and one employee from the CUAP
section. The employee selected from the Johor insurance sector is the sales personnels or the

6ADVANCE HUMAN RESOURCE PERSPECTIVES
members of the sales team. It is to be noted that the sales personnels do the most siginificant
amount of work in the company in comparison to the other employees of the company as they
are imbued with the responsibility of sale of the insurance packages ("JOHOR 1980" 2018).
However, it is to be noted that they a salary package which is on par with the salary of the
other employees of the company. Therefore, the company needs to come up with rewards as
well as incentives in order to motivate the sales personnels and also to reward the extra hard
work which they put in for their work. In case of the CUAP, the sales personnels are again
the most important employees of the company as they are imbued with the responsibility to
bring in more customers as well as clients ("JOHOR 1980" 2018). Therefore, they should be
getting a higher salary as well as incentive package in comparison to the other employees of
the company keeping in view the kind as well as the amount of work which they need to do.
In short, the company basically needs to follow the concept of equity payment for the rewards
as well as incentives which are provided to the employees. It is to be noted that according to
the precepts of the equity payment a person is doing lesser amount of work and is less
productive to the company should not be a salary which is almost equal to the salary which a
person who is doing more amount of work and is more productive to the company (Al-
Zawahreh, Abdelghafour, and Faisal Al-Madi. 2012, pp.158-170). However, it is to be noted
that the amount of work which the employees of the Johor insurance need to perform is
comparatively lesser in amount to the work which the employees of the CUAP need to do
since the company CUAP works on a global basis and the kinds of insurance which they offer
to the customers is much more varied than the ones offered by the company Johor Insurance.
Therefore, as the precepts of the equity payment system the salary of the employees of the
CUAP should be higher in comparison to the employees of the Johor Insurance. The
organization should try to provide team incentives in addition to the individual incentives to
the various employees of the organization on the basis of the kind of performance they give.

7ADVANCE HUMAN RESOURCE PERSPECTIVES
TAFEP and NWC
It is to be noted that the various companies as well as the business organizations of the
country of Singapore need to follow the precepts of “Tripartite Alliance for Fair and
Progressive Employment Practices (TAFEP)”, “National Wages Council (NWC)” and others
for providing the equal wages as well as incentives to the employees (Poole 2013). The
company Johor Insurance and CUAP also follows these stipulations of the government of
Singapore for the wages which they provide to the employees. However, it is to be noted that
these stipulations calls for equal amount of wages to almost all the equal and if the company
Johor Insurance and CUAP follows these stipulations then are likely to incur a considerable
amount of economic loss as all the employees belonging to the company do not perform the
same kind of work or give equal amount of productivity to the company (Kelly 2012).
Therefore, the company needs to break away from these legislative norms and introduce
equity payment norms which states that the employees should be given salary based on the
amount of productivity or work which they are providing to the company. It is significant to
note that the major contributors in the company are the employees belonging to the sales
team and the other teams just perform the background jobs or the follow. Therefore, if the
company goes on to follow the equity pay system then that would not only be unfair to the
employees belonging to the sales team but would also be a huge loss to the company as it
would be paying salaries to the employees not on the basis of their performance. It is
significant to note that the CUAP is a new company and therefore it needs to take into
consideration the minimum wages rates offered by it. It is often seen that the companies offer
a higher lower wage to the employees in a bid to retain them and also to attract more
employees. However, if the company CUAP follows a higher low wage policy of NWC then
the company is likely to incur a significant loss.

8ADVANCE HUMAN RESOURCE PERSPECTIVES
HR evaluation
It is to be noted “HR evaluation” is another thing which the various modern
companies as well as business organizations take into consideration in their overall business
plan. It is to be noted that in the present times the HRs need to take into consideration the
“human performance that will enable effective decisions to be made regarding the function
and value creation in organizations” (Beach 2014). It is commonly seen that an effective HR
system is considered to be one which leads to the overall growth as well as the development
of the organization or the company considered. It is to be noted that there are several
measurement criteria for the evaluation of the HR system namely, “types of cost–benefit
analyses”, “HR Activity Index” and several others (Williams 2013). There are several
impediments to the effective evaluation of the HR system as well like time consumption,
resources, difficulty in the data collection and others. It is to be noted that the data required
for the effective evaluation of the HR system can be collected through various ways like
survey, interviews, questionnaires and others. Therefore, the companies Johor Insurance as
well as CUAP need to develop effective HR systems which will introduce the concept of
equity payment system in the company which forms an important part of the modern day
business organizations and companies. It is to be noted that for this particular evaluation
various information will be collected like the resignation and retention rates and others on a
periodical basis like after every three months. In addition to this, surveys will also be done to
get the opinion of the employees to about the performance of the HR. The HR will also be
required to manage the stress level of the employees in the best possible manner. The HRM
can conduct regular surveys with the employees in a bid not only to check the satisfaction
level of the employees but also to monitor the performance of the various HRs of the
company. Furthermore, the company can take the help of the various medical clinics to
monitor the level of stress faced by the employees in the workplace. This will help the HRM

9ADVANCE HUMAN RESOURCE PERSPECTIVES
to devise effective strategies for the mitigation of the level of stress faced by the employees.
The HRM can also collect the relevant amount of data regarding the MC rates of the
employees from the various contracted clinics. It is significant to note that the employees
with higher rate of MC will have lesser chances of promotion and therefore the HRM as well
as the employees will have to take this into consideration.
Conclusion
Therefore, from the above discussion it becomes clear that there are various aspects
which the modern day companies as well as business organizations need to take into
consideration. One of the major things which the present day companies need to take into
consideration is the concept of equity payment. As seen in the case of Johor Insurance and
CUAP the company provides equal payment to all the employees which should not be the
case. The company should provide salary to the employees on the basis of the kind as well as
the amount of work which do and the benefits which they provide to the company or the
organization concerned. It is to be noted that policy of equity payment will also help the
various companies as well as business organizations to retain their top performing employees.
The various companies in the nations of Singapore also need to follow the diverse precepts of
the TAFEP and NWC regarding the conduct of their business operations.

10ADVANCE HUMAN RESOURCE PERSPECTIVES
References
"JOHOR 1980". 2018. School of Business and Governance.
Al-Zawahreh, Abdelghafour, and Faisal Al-Madi. "The utility of equity theory in enhancing
organizational effectiveness." European journal of economics, finance and administrative
sciences 46 (2012): 158-170.
Beach, Lee Roy, ed. Decision making in the workplace: A unified perspective. Psychology
Press, 2014.
Bell, Reginald, and Jeanette Martin. "The relevance of scientific management and equity
theory in everyday managerial communication situations." (2012).
Daley, Dennis M. "Strategic human resources management." Public Personnel
Management (2012): 120-125.
Kelly, John. Rethinking industrial relations: Mobilisation, collectivism and long waves.
Routledge, 2012.
Miner, John B. Organizational behavior 1: Essential theories of motivation and leadership.
Routledge, 2015.
Nankervis, Alan R., Marian Baird, Jane Coffey, and John Shields. "Human resource
management: strategy and practice." (2013).
Poole, Michael. Industrial relations: origins and patterns of national diversity. Vol. 4.
Routledge, 2013.
Shields, John, Michelle Brown, Sarah Kaine, Catherine Dolle-Samuel, Andrea North-
Samardzic, Peter McLean, Robyn Johns, Patrick O'Leary, Jack Robinson, and Geoff

11ADVANCE HUMAN RESOURCE PERSPECTIVES
Plimmer. Managing Employee Performance & Reward: Concepts, Practices, Strategies.
Cambridge University Press, 2015.
Williams, Chuck. Principles of management. South-Western Cengage Learning, 2013.
Wright, Sue. Language policy and language planning: From nationalism to globalisation.
Springer, 2016.
Zavattaro, Staci M., Joshua J. Daspit, and Frank G. Adams. "Assessing managerial methods
for evaluating place brand equity: A qualitative investigation." Tourism Management 47
(2015): 11-21.