Reward Management And Practice: Ensure The Company Growth Essay


Discuss about the Reward Management and Practice for Ensure The Company Growth?



This detailed assessment is about the discussion of reward allocation process, which will be meaningful and beneficial to achieve the objectives of the company. Micklethwaite Brewery is a medium sized brewery based on Manchester. The company trading is mainly limited to the north of England and the Midlands. A considerable number of public houses and managed houses are maintained by the enterprise, where the annual turnover from the managed house estate is estimated 237 million pounds based on the most recent statistics. A licensed house manager is both appointed by and directly employed by the company, where its own self uses a tenant. The company is tending to take new steps to implement a new business strategy. The proper way of reward allocation is to be advised by the researcher to design the new corporate strategy (Watson 2013). The allocation process should be majorly based on the basic salary structure of the company. Critical evaluation of the present pay structure of the licensed house managers is needed. If there is any alternative process that may help better in implementing the new business plan in the corporate sector, it should be suggested here too. Potential changes in the schemes of incentives for the managers are also examined. The process of allocating rewards should be fair when the underlying aim of it is to reach business goals well and help to attract highly qualified individuals in retaining in the organization, as required (Njanja et al 2013).

Critical evaluation of the salary structures of the house managers of Micklethwaite Brewery needs the overview of the process. Each of the licensed houses is dealt a grade based annual turnover. There is a gradation system, depending on the amount of annual turnover. Increase in sales over a period makes the manager responsible for rising the grading of his/ her own house. The movement from minimum and maximum in each grade depends on the length of the service of the workers to reach to the top of the class. Usually, the individual is taking five years. The bands of turnover are enhanced in line with the consumer price index in the month of February each year. The company supplies an annual turnover and salary level based gradation overview where both the variables are tabled in descending to ascending order. Highest salary is ranging from 40777 pounds to 42530 pounds, whereas the minimum ranges from 19157 pounds to 20443 pounds

The wages of labor cost consists some bonus and income measures (Baumann and Stieglitz 2014). They are as follows:-

Profit bonus

Each house has an individual account where profit and loss both are calculated. The manager of the house is paid a profit bonus annually in a proportion of 3.5% depending on the net profit for the managed outlet. This payment is pensionable and the average bonus at the most recent time is calculated as 1840 pounds.

Machine income

Every year there is a considerable amount of revenue by selling pool tables, fruit machines, video games machines, etc. A commission of 10% of the net takings is paid on all machine income. This amount of money is obtained by deducting the value added tax.

Catering income

The catering rights are a valuable source of revenue for the manager because licensed premises have turned into increasingly popular places for eating. In return for catering rights, the company charges a franchise fee based on weekly gross takings of 5%. The mean net profit from catering for each managed house is estimated at 6000 pounds.

Mileage allowance

Though all the managers live on the company premises, a small amount of traveling has consisted on the business of the enterprise. For this reason, an allowance of 35p for each mile, is paid to the managers.


In most cases for the directors, housing is free of rent. Additional free services are rent free lighting, heating and water supply. The company is responsible for the repair and decoration of the living accommodation (Klingebiel and Rammer 2014).


The company provides 30 working days vacation in each year to the managers. They receive double time for each day of statutory holiday worked.

Hours of employment

Managers are required to work six working days in any one week. The total hours are not formally defined due to the unique circumstances of the trade. Sometimes, the managers have to keep the premises open for business during all hours. These issues maximize the trade for their particular situation. Therefore, some discretion is allowed in these arrangements.

Company pension

In the company pension scheme of Micklethwaite Brewery, all the licensed house managers are included as members. The pension plan is recognized to be good which allows for the retirements at the age of 60. This scheme is non-contributory for employees and pays 1/80th of the final salary at retirement for every year of pensionable service.

The above bonus and income strategies are the kinds of rewards the brewery company provides to their licensed house managers (Massingha and Tam 2015). There are some several approaches to the policy of rewarding, which is more correctly applicable to the country of United Kingdom. The strategy has the following characteristics

Acknowledging that a reasonable approach is one that acts in practice and then aiming at the exertion programs

Any planning should be framed keeping the appropriate implementation and relevance. Admitting during the process of design that plans must be transformed into reality and following steps to assume the problems involved.

Lining up the strategy of rewarding with the business and human resource strategies

Confirming that the policy of paying fits the ambiance and innate of the company, reconciles business needs and counts every individual needs and preference

Putting more effort to implementing strategic reward initiatives to boost the engagement and responsibility of people so that they are instigated and constructive, rather than putting attention on the machines of new reward craze

Keeping in mind that the advancement and application of the strategy of paying is a metamorphic process, it is about performing the things better at a reasonable pace than phenomenal new advancements

Supplying elasticity within a working framework, which means advancing an adaptable approach to reward of several people but regularly in a set up that provides for continuous treatment

Acknowledging that setting of the strategy of rewarding will need an extensive change in governing body program

Admitting the relevance of the part used by the line managers in setting the rewarding strategy and the requirement to confirm that they are instigated and have the required skills

Putting in depth and constant attention to interacting with employees and including them in the advancement as well as the implementation of the strategy of rewarding

Being totally confident and definite about the aspirations of the plan and determined about appraising its effectiveness (Armstrong and Stephens 2005)

All these listed points above provides sufficient framework to design a new rewarding strategy. Based on the annual turnover statistics for each graded licensed house, it can be said that the salary structure framed by the company is relatively fair.

The brewery is going to take a new corporate strategy to implement. The Chairman of the company Micklethwaite Brewery described the approach in a statement. Constant maintenance and looking after in the used approach is needed to cope up with the highly competitive market. Requirements of the customers have also changed with time. A decision has been taken at Board level by the management body to restructure the organization. The reason for it is to focus on the more profitable market segments and withdraw from less profitable areas. The decision will be implemented regarding the locations of the pubs and the products of all types supplied by the company (Awadh and Alyahya 2013).

There are some pubs or ‘drinking dens' which are located in the inner city. Sometimes they are inconvenient in transportation and suffer from a low attendance of the customers. They are, thus, expensive to maintain. Products of low-profit margins are sold and so in return, the company cannot receive expected benefits from these outlets. The management body has decided to close these dens, which make minimal profits. The property is determined to be sold off on whatever basis maximizes capital return.

In the region, different types of customers come throughout the day. Other pubs, which will not be sold to a third party but located in the inner of the city, shall be refurbished so as to attract business workers and shoppers over the lunchtime period. Customers who come in the pubs range from the early evening to work, and late evening social groups. Restructuring and furnishing are required to attract all these types of customer to maximize the profit margin of the brewery.

There are some country pubs, which are located out of the town. The management body has decided to modernize in a comprehensive manner to attract business people and their families. Middle-class customers are likely to come in the out of town premises. They demand that these buildings should offer good quality food, and it is beneficial for the company to create discreetly located play station facilities for children. In the country, there are harsh penalties for the drivers who drive their car after consuming alcohol (Bidwell et al 2013). This drink-drive legislation is strongly followed by the people. Some families are not particularly interested in drinking mainly for this reason. If the out of country pubs are redesigned and can offer better quality food, likely visiting to such pubs will be part of the day out for these families. Business people appear to find them suitable for the free lunch time, or evening meetings.

The above steps mentioned are to be taken by the company. The types of treatment are to be made will be based on the location of the sites, costs of maintenance and the cost of refurbishments. The operation needs a detailed analysis, and the marketing and finance personnel are performing the analysis task. However, it is evident that the contribution to net profitability from the sales of foods is notable. This is, therefore, a primary factor in determining the future of each site. The plan has also had some personnel perspective. It needs to keep the increased costs of labors to an acceptable minimum. The body decided not to alienate their pub managers. The managers are required to retain as much revenue as possible to fund refurbishments. The company, at the same time, encourages their managers to maximize the profit and income margin (Pruce 2014).

The company Micklethwaite Brewery points a significant difficulty with their apparent inability. This is at present related to assessing the capability of any particular manager. The company's current financial procedures only help the company to monitor the overall income and related expenditures for any different pub, but this provides a little indication of evaluating the manager's unerring ability. The revenue and popularity of a pub majorly depend on the pub's location and the condition it is going through. This reflects the business process considerably.

In connection with the proposed changes, the brewery's fundamental interest lies on to evaluate all the managers’ exact capability. The ablest and accurate managers will be selected and they will be retained, or will be located to the prime sites of business. The closures of some locations will solely crave the ways to verbosities, and naturally, the company's least able managers will be terminated. The management body does not wish to incur increased redundancy costs for this group through unjustifiably increasing their basic pay structure.

The company thinks food is a primary source of income and will become so more in new future. That is why they need the managers to be highly skilled in this area. The important part thus is considered the trainability and motivation of the manager to run this section of the business (Joseph, de Veciana and Arapostathis 2012). A primary task for individual is to adopt systems for assessing exclusive competence, trainability and ensuring the retention of their more able managers.

There is a technological aspect too. In this point of view, the company's new tills are linked to a central computer. This enables the company to individual product sales per site as the enterprise evolves the till and trigger reorders of shock automatically. It allows the company, therefore, to look for wastage rates as a part of stock control procedures and contribution per product as well as identifying when the pub is crowded or quiet. Undeniably, it is the manager's duty to ensure that the bar is crowded at all times. It also enables the company to calculate consumption rates accurately, which is used to introduce a range of specialist real ales. Apparent demand for this product is observed, and company can charge the premium price for that. This marketing strategy also introduces a wider range of wines to compliment new food offerings (Shields et al 2015).

This policy could not be made public, as skilled managers will find alternative employment first. The company wishes to neither trigger a response from our competitors nor incur speculation on the stock exchange. The pace of restructuring is dependent on the availability of capital from selling the properties, position on the stock exchange, cooperation of banking sector and the cost associated with the refurbishment program. The company intends to complete the program as swiftly as possible following the announcement.

It is expected that income to the company will be substantially increased as a result of these initiatives (Datta 2012). The increase in borrowing will be recovered over a six years period and that the net contribution to the company Micklethwaite Brewery will enable the company to continue reinvesting in the company to secure its future growth.


All these plans discussed above are to be implemented by the Corporation To Ensure The Company Growth. Potential incentive schemes will be applicable for licensed house managers. In a rapidly changing environment of the business cycle, customers have some choices in financial services industry in recent times. The company, thus, tends to improve quality, reduce the time of processing to meet customers' expectation, keep a lid on costs, and maintain the brewery quite ahead of the competition. The licensed house managers' salary structure along with the bonus and incentive schemes has been analyzed. The system of total rewarding has some benefits because a fair, rewarding system always puts impacts on company success. It enables a strong impression on the motivation and commitment issues of the workers. Rewarding also enhances the intimate relationship between the employees. Transactional rewards are, therefore, appealing to the individuals more (Armstrong and Taylor 2014). The fruits, which are the relational support to deliver an active intellectual contract and it, can work as a differentiator in the market of employment. The brewery can become an ‘employer of choice' and a considerably well platform to work, thus to attract and to retain the talented and skilled people they need. The brewery's revised pay structure and the new corporate strategy they are trying to implement, will lead the factory to retain truly efficient managers and employees. The researcher can conclude, the procedure is fair, scientific, and modern and will try to enhance the company's profitable income vastly.


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