Management 2 Essay Example | Topics and Well Written Essays - 1250 words

Management 2 - Essay Example The Chairman outlines the activities and financial conditions of the firm in the previous year followed by his/her discussion on hopes and future plans for the firm. In this part of the annual report, the Chairman attempts to explain why the company’s operations resulted in the results mentioned and why it chooses to advance with new projects or policies. In a nutshell, the statement or report is mainly a promise or explanation for company activities by the Chairman and its Board of Directors to the stockholders. However, the questions are: Why do they need the reports? What do the stockholders do with them? And more importantly, what do they do to deserve an explanation? To answer these questions, one has to firstly understand the concept of stockholder’s equity. When an individual goes to the market and buys stocks, he/she basically buys ownership! A corporation is basically a public-owned enterprise. By declaring itself a corporation, the company or enterprise is selling itself to the public. This is done by the company to essentially generate more money and finances. When it becomes a corporation, the company is actually giving the stockholders a right or privilege to vote for the Board of Directors. The elected Board of Directors is then responsible to make decisions about the company and see where and how the company can maximize the profits. The stockholders then gain from the profits. The stockholders do not directly earn the profit but are given dividends instead. These dividends are paid annually, every year except when the company is going in loss to an extent that it even fails to pay back the liabilities it has borrowed. At such times, the liabilities are preferred and paid first and the remaining is given as dividends to the stockholders. To further understand the relationship between the company and the stockholders, Walt Disney Corporation will be used as a case for analysis and descriptive explanation. But, before

Some HR managers assume that money is the most effective reward Essay

Some HR managers assume that money is the most effective reward strategy for increasing the motivation and productivity of all their employees. To what extent do you agree or disagree with this statement - Essay Example The companies must be offering their employees a positive reward experience and include them in the growth process of the company to be in a win-win situation. The reward structures may be monetary or may be intrinsic. The monetary rewards are one of the most important parts of the reward structure. Assigning values to each employee is one of the most significant jobs of the HR department. The company determines an employee’s value primarily by three ways- according to the skills, performance and their relative value in the job market. The companies have to fix the basic pay of labor and assign the suitable person for the profession. The base pay should compensate the individual with the ongoing value and incentives may be offered as rewards for their performance. (Zingheim & Schuster, March, 2000; Optimizing reward spend, n.d.). In addition to the monetary benefits, the employees look for other benefits from the company. The benefits may range from training & development of e mployees to offering good working conditions. These benefits have acquired importance in the modern business parlance with more and more individuals looking for other benefits than just the payment rewards. The reward structure of a company to a large extent depends upon the corporate goals of the companies. (Reward Strategy, n.d.) The paper presents a debate upon the type of reward strategies of the companies to motivate their employees and concludes upon the most effective one. In this modern era, money alone is not the motivating factor and non-monetary benefits are equally important. In fact, it can be said that non-monetary benefits is the most important strategy followed by companies to motivate their employees. Giving rewards to the employees has assumed great importance because companies all over the world have understood that the employees are the reason for their existence. The reward structure of the company is primarily dominated