Project Management: Employee Compensation Impact on Stability

This report investigates the impact of employee assistance and compensation expenses on the financial stability of an organization, focusing on how these programs influence long-term sustainability. It uses a conceptual framework linking employee compensations like gratuity, bonuses, and leave ...Read More

Project Management
Impact of employee assistance and compensation expenses on financial stability of the
organization

Contents
Introduction................................................................................................................................2
Conceptual Framework..............................................................................................................2
Literature Review.......................................................................................................................4
Methodology..............................................................................................................................4
Gantt chart..................................................................................................................................6
References..................................................................................................................................7
Appendix....................................................................................................................................9

Introduction
Economy of the enterprise depends on the work and efforts of the employees put together to
achieve the mission and objectives of the firm. Quality of service and facilities provided to
the customers is the basic requirement so that long term sustainability can be retrieved within
the expected time. Competitive environment and recognition provided to the employees helps
in improving their capabilities and stability (Ajose, 2017). Turnover of the enterprise can be
accelerated by initializing the employee compensations. In this paper, we are going to deliver
our report on identifying the impact of employee compensation expenses on financial
stability of the organisation. Financial stability of the organization depends on the cumulative
work done of employees which can be improved by providing recognition and compensations
to them. Revolution in the working curriculum of the enterprise depends on the good and
healthy relationship between the workers.
Research Aim
The aim of the research design is to evaluate the consequences of the employee assistance
and compensation program on the financial stability of the enterprise. It helps in finding out
the impact on sustainability with respect to the team efforts in achieving the goal of the
enterprise.
Research Question:
What are the impacts of employee assistance and compensation expenses on financial
stability of the organisation?
Conceptual Framework
Compensation and compensations provided to the employees helps in adding values to the
contribution in achieving goals and objectives of the enterprise. Positive impact on the
working environment can be seen by having active participation of the employees in the
designing of the project plan and providing different compensations to them such as gratuity,
bonus, maternity and Paternity leave, compensation, award and reward for the good work,
and payment for overtime. It helps in motivating them positively and overcoming the
challenges by enhancing their skills and expertise through the arrangement of training and
development program (Hallowell, 2017). Satisfaction of the customers depends on the
contribution of the employees in satisfying the need and requirement of them by giving
privilege to the quality of services and facilities provided to them. Financial growth of the

enterprise is getting affected by the social imbalance and chaotic environment at work place
because it had a direct impact on the productivity process of the enterprise. The economic
stability can be driven by identifying the flaws and risks associated with the working process
and operational schemes of the firm (Jehanzeb, and Bashir, 2013). New employee
compensation plans should be developed so that connectivity, communication, and
relationship can be improved by filling the hearts of the workers with the positive motivation.
Grievances of the workers are to be resolved at top priority. Effective grievance handling
program plays a vital role in enhancing the stability and minimizing the risks associated with
the product development life cycle due to misunderstanding and chaotic environment at work
place (Ekere, and Amah, 2014). The diagram given below shows the conceptual framework
between the employees’ compensation program and their impact on the financial stability of
the enterprise.
(
Gratuity
Bonus
Provident Fund
Maternity /
Paternity Leave
Accidents
compensation
Participation of
Workers in
project design
Award and
Reward System
Employee
Compensations
Better
communication
and dedication
to achieve goals
and objectives
Improvement in
the financial
performance
Financial
Stability
Long term
sustainability
Payment of
Overtime
Improved
productivity
Quality of
services and
facilities
provided to the
customers

(Source: Made by Author)
Literature Review
Review of the literature study helps in evaluating the role played by the employee’s
contribution in improving the financial status and productivity of the enterprise. Employees
are the integral part of the business because the satisfaction of the customers and operational
plan of the enterprise depends on their contribution and willingness to complete the given
tasks within the given time-frame, cost, and quality (Jacobson, and Mizik, 2009). Employees
are getting positively motivated and connected with the firm by providing them short term
and long term compensations such as on-time delivery of wages and salaries, providing
relevant overtime, gratuity, compensation on the occurrence of accidents, reward and award
for their outstanding stability, contribution and participation in the designing phase of the
project, taking suggestions for solving the operational complexity of the enterprise, and
others. Periodic arrangement of training and development program helps in enhancing skills
and expertise of the workers which increases their contribution and productivity of the
enterprise. Financial stability can be achieved by enabling the strong and healthy relationship
with the customers which can be done by providing product with the required features and
improved quality of services (Yaghoobi, Moradi., Nooghabi, 2015).
Economy of the enterprise depends on three factors which are classified as interest and
willingness of the employees in completing their given tasks, control over the policies and
processes undertaken to achieve goal and objectives, and motivating the employees positively
by providing relevant compensations to them periodically (Yamamoto, 2011). Harmonious
balance should be managed between the employees, management, and productivity
(Tessema, Ready, and Embaye, 2017). Alignment of control measures and constraints
associated with the employees stability is to be handled at top priority which helps in
completing the product development life cycle within the given timeframe and cost (Brown,
S., and et.al., 2015). It helps in increasing the level of satisfaction in customers and yields the
cash flow for accelerating financial stability of the enterprise (Zhang, and Pan, 2013). The
economic stability can be driven by identifying the flaws and risks associated with the
working process and operational schemes of the firm (Ton, 2013).

Methodology
Research methodology is used for collecting relevant data from different sources. In this we
are going to investigate the Macquaire group limited of Australia. Headquarter of the
organization is located in Sydney. We have focus on analysing the financial statement and
annual report of the enterprise to gather some relevant and accurate data for analysing the
role played by the employee compensations in improving the financial stability of the
enterprise. Interview and questionnaire sessions are organized with the top executives and
senior employees to present their viewpoints on the employee’s capabilities and their
contribution in managing financial stability to attain long term sustainability. Most of the data
is collected through web surfing because it helps in collecting the official data presented by
the organization on their company websites. Information gathers from the internet is reliable
and accurate. Financial condition and cash flow investigation is done directly from the data
available in the annual and financial report of the enterprise. In our research, we have taken
two variables one is dependent and other is independent variable. Here, employee
compensation program is an independent variable and financial stability is the dependent
variable because the growth of the enterprise depends on the contribution given by the
employees in accelerating the productivity and customer satisfaction. Study of literature
papers presented by various authors helps in designing the research question for our research
since it focuses on the research gaps and impact of employee’s compensation plan to enhance
the financial stability of the enterprise.
Interview:
The interview session was organized with two participants who are holding the position of
Project Manager and Financial Accountant. They reveals the company’s policies developed
for improving the employees compensation program and changes seen in the attitude and
working capabilities of the employees. Growth of the enterprise can be measured by
evaluating the contribution and willingness of the employees in completing their given task.
Questionnaire:
Questions for the research is written in pre-defined format which is sent to the participants
directly on their e-mail ID so that they can easily filled the given form as their convenience.
Questionnaire document is sent to 42 participants and their responses are collected in a
synchronised format. It helps in evaluating the viewpoint of the employees on the
compensations given to them by the company and how their stability get affected to improve
the productivity and quality of services and facilities provided to the consumers which had a
direct impact on increasing the profitability ratio of the enterprise.

Web-surfing:
Web-surfing is the most useful data collection technique for collecting secondary data for our
research. Investigation of the official website of the undertaken company can be relevantly
done by analysing the annual report and financial report of the company. It helps in
evaluating the contribution of the employees in increasing stability and productivity and thus
retrieving the financial stability of the Macquaire enterprise. Most of the data is collected
through web surfing because it helps in collecting the official data presented by the
organization on their company websites. Information gathers from the internet is reliable and
accurate. Financial condition and cash flow investigation is done directly from the data
available in the annual and financial report of the enterprise. In our research, we have taken
two variables one is dependent and other is independent variable. Here, employee
compensation program is an independent variable and financial stability is the dependent
variable. The data for the dependent variable and independent variable is collected from the
annual report of the organization so we can easily compare their stability and relationship
which exist between the employees compensation and financial stability of the enterprise.
Literature Study:
Study of literature papers presented by various authors helps in designing the research
question for our research since it focuses on the research gaps and impact of employee’s
compensation plan to enhance the financial stability of the enterprise.
Gantt chart
Task Name Duration Start Finish
Research Paradigm 60 days Mon 02-09-19 Fri 22-11-19
Proposal of the research topic 5 days Mon 02-09-19 Fri 06-09-19
Topic selection and approval 5 days Mon 09-09-19 Fri 13-09-19
Identifying data collection techniques 4 days Mon 16-09-19 Thu 19-09-19
Managing Interview 3 days Fri 20-09-19 Tue 24-09-19
Managing questionnaire 3 days Wed 25-09-19 Fri 27-09-19
Web surfing 2 days Mon 30-09-19 Tue 01-10-19
Data from official website of company 5 days Wed 02-10-19 Tue 08-10-19
Literature Study 5 days Wed 09-10-19 Tue 15-10-19

Research findings 3 days Wed 16-10-19 Fri 18-10-19
Designing of Research Question 3 days Mon 21-10-19 Wed 23-10-19
Development of conceptual framework 4 days Thu 24-10-19 Tue 29-10-19
Completion and submission of draft 1 5 days Wed 30-10-19 Tue 05-11-19
Completion and submission of draft 2 4 days Wed 06-11-19 Mon 11-11-19
Completion and submission of Report 3 days Tue 12-11-19 Thu 14-11-19
Completion of presentation 3 days Fri 15-11-19 Tue 19-11-19
Presentation of Report 2 days Wed 20-11-19 Thu 21-11-19
Close out 1 day Fri 22-11-19 Fri 22-11-19
References
Ajose, B. (2017). Employee compensation and its effect on employee productivity. Retrieved
from
https://www.academia.edu/25932687/employee_compensation_and_its_effect_on_e
mployee_productivity
Brown, S., Gray, D., McHardy, J., and Taylor, K. (2015). Employee trust and workplace
stability. Retrieved from
https://www.sciencedirect.com/science/article/pii/S0167268115001365
Ekere, A., and Amah, E. (2014). Staff compensations and organization stability: A study of
private hospitals in River state, Nigeria. International journal of business and

managmenet, 16(2), pp. 24-28. Retrieved from
http://iosrjournals.org/iosr-jbm/papers/Vol16-issue2/Version-3/D016232428.pdf
Hallowell, R. (2017). The relationship of customer satisfaction, customer loyalty, and
profitability, an empirical study. Retrieved from
https://pdfs.semanticscholar.org/f772/e831c1afbcf38371da9cad29a5eb4422636e.pdf
Jacobson, R., and Mizik, N. (2009). The financial markets and customer satisfaction: Re-
examining possible financial market mispricing of customer satisfaction. Retrieved
from https://www0.gsb.columbia.edu/mygsb/faculty/research/pubfiles/2816/
MktgSci_ACSI.pdf
Jehanzeb, K., and Bashir, N. (2013). Training and development program and its
compensations to employee and organization: A conceptual study. Retrieved from
https://www.dcvmn.org/IMG/pdf/3947-5999-1-pb.pdf
Mabaso, C., and Dlamini, B. (2017). The impact of compensation and compensations on job
satisfaction. Retrieved from https://scialert.net/fulltext/?doi=rjbm.2017.80.90
Tessema, M., Ready, K., and Embaye, A. (2017). The effects of employee recognition, pay,
and compensations on job satisfaction: Cross country evidences. Journal of business
and economics, 4(1). Retrieved from
https://pdfs.semanticscholar.org/d999/306d685a85cbe2232a844f8415a689e985f0.pd
f
Ton, Z. (2013). The effect of labor on profitability: The role of quality. Retrieved from
https://www.hbs.edu/faculty/Publication%20Files/09-040_146640ac-c502-4c2a-
9e97-f8370c7c6903.pdf
Yaghoobi, H., Moradi, M., Nooghabi, M. (2015). Effects of employee expenses on usefulness
of accounting information. Retrieved from
https://www.researchgate.net/publication/312412478_Effect_of_Employee_Expense
s_on_Usefulness_of_Accounting_Information
Yamamoto, H. (2011). The relationship between employee compensation management and
employee retention. Retrieved from
https://www.researchgate.net/publication/224285658_The_relationship_between_em
ployee_compensation_management_and_employee_retention
Zhang, C., and Pan, F. (2013). The impact of customer satisfaction on profitability: A study of
state owned enterprises in China. Retrieved from
https://www.researchgate.net/publication/228456961_The_impacts_of_customer_sat
isfaction_on_profitability_A_study_of_state-owned_enterprises_in_china

Appendix
Links for the raw data:
https://static.macquarie.com/dafiles/Internet/mgl/global/shared/about/investors/results/
2019/Macquarie-Bank-FY19-Annual-Report.pdf?v=5