Case Analysis Of Tobacco Company

2998 words - 12 pages

SYNOPSISA&A tobacco Group PLC is a leading tobacco public company in a high profile industry, its aim is to be a good corporate citizen. Participating in it local communities and minimizing its impact on the environment. Management of health, safety and the general welfare of its employees are important components of corporate responsibility and are high priorities for the group. A&A tobacco Group PLC is the world's third largest tobacco company which manufactures and markets a range of cigarettes, tobaccos, rolling papers and cigars. A&A's business strategy is to cerate sustainable shareholder value by growing its international operations. Both organically and through acquisition. While continuing to strengthen its home market positions in the Australia.INTORDUCTION:The purpose of this assignment is to determine the correlation between pay and performance for A&A TOBACCO COMPANY and how should the company plan and organize the remuneration strategy in order to achieve the company goals and objectives in order to meet the companies best interest and give the company shareholders the best of the profit and how to analyze whether the remuneration system should be trait based, result based or behavior based performance system linked to a remuneration strategy. In the assignment I am going to discuss all the facts and issues related the three strategies of remuneration.BACKGROUND OF Ada & Azee TOBACCO CONPANYHistoryA&A was established in 1901 with the merging of a couple of companies of British Raw Tobacco and cigarette companies who were being threatened by competition from the rest of the world the original merger was between philip Morris, lakson Tobacco company and Dunlop Raw tobacco companyEmployeesThe company has low level and upper level employees as in the upper level are the executives and the employees with post graduate educational background and the lower level employees are mostly undergraduate most of them laborers and marketing staff and other clerical workers and factory workers andmost of the employees fall into the age to 22 to 40 and less then a 25% of the employees are above 40's or in their mid 50's and the company retiring age is 65 or a golden hand shake policy for the employees retiring before 65 years of age.REMUNERATION E MANAGEMENT:All companies have strategies and policies whether they are written or unwritten, sound or unsound, followed or not followed, understood or not understood, complete or incomplete. It is nearly impossible to delegate authority without the existence of a policy. The purpose of this essay is to hold your attention about the issues and implications associated with strategically integrated remuneration system. The two different methods of remuneration systems are integrated remuneration system (Flat rate system) and performance related remuneration system. Remuneration and methods of payment should be fair and afford the maximum possible satisfaction to employees and employer....

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