MEMORANDUM

TO: Linda Naylor, Chief Executive Officer

CC: Haroon Khan, HR Manager

FROM: Julianne Celine Bayaua, HR Assistant

DATE: 20 August 2019

SUBJECT: Proposal on Incentives

This memorandum presents the proposal of incentives for the Citistores’ employees.

Purpose of this Proposal

The objective of this proposal is to give the Citistores’ employees recognition for their work and
accomplishments. Also, to increase their morale and have a positive workplace attitudes through giving
them incentives.

Student ID: 20037552 BSBHRM403 Support performance management

processes
Bayaua, Julianne Celine P. Assessment 1 Part
B
Assessment 1: Part B

Activity 1

1.      An outline of the various rewards and incentive schemes used by at least two alternate
organizations.
 
 City Beach Australia
City Beach is an Australian lifestyle retailer that started in 1985 with one shop in Brisbane, Queensland.
Today, with more than 60 stores across Australia as well as an online store, the retailer has become a
part of many people's lives. However, being in a highly competitive retail space meant that the company
also needs to evolve constantly. (City Beach Australia, n.d.). As a result, City Beach recognizes the
opportunity to introduce a full end-to-end talent management suite to automate processes throughout
the entire employee lifecycle. Moreover, that's why the company sought a platform that could meet its
changing hiring and talent management needs today and into the future as the company expands, which
they believe that adding value and making a difference throughout the employee experience.
 
City Beach gives importance to every employee by providing various rewards and incentives. Moreover,
with these, they believe that it will increase their employees' productivity and encourage them. These
are the following rewards and incentives (City Beach, n.d.):
 
·        Stock up on your favorite brands with a 35% discount for full-time crew members and a 20%
discount for casual crew members. (monetary)
·        Access to corporate rates for banking, health insurance, and gym memberships. (monetary)
·        Take part in staff competitions and sales incentives for the chance to win overseas holidays, festival
tickets, iPads, GoPro Cameras, and more! You can also score monthly bonuses as a Store Manager if
your store performs well. (monetary)
·        Receive comprehensive internal training and education opportunities. (non-monetary)
·        Get invited to great parties thrown by City Beach and their brands/suppliers. (non-monetary)
·        Dress up themed "Beach Party" days for the chance to score epic prizes. (monetary)
 
 ALDI Australia
With over 10,000 store locations around the world and 60 years' experience to go with it, ALDI's story is
a tale of unrivaled success. Since opening its first store in 1913, it has established itself as one of the
most reputable and awarded retailers in the international business market. Today, the ALDI name is
synonymous with high quality and exceptional value. We offer our customers a smarter way to shop. All
our exclusively branded products are of market leading quality and available at highly competitive
prices. They are continually run through in-house testing and independent laboratory analysis for quality
assurance. Also, to ensure we keep our prices low, we don't use expensive merchandising or loyalty
programs. By employing this simple model, millions of consumers across the world have been able to
embrace ALDI continuously (ALDI, n.d.).

Aldi gives importance to each employee by giving various rewards and incentives. And with
these, they believe that it will increase their employees’ productivity and give them
encouragement. These are the following rewards and incentives:

 Market leading remuneration. (monetary)

 Comprehensive training. (non-monetary)
 Being part of a growing organization. (monetary)

1. Whether Citistores performance management system includes procedures to acknowledge

good performance in its current system.

Reviewing the Citistores performance management system, I observed that they do not have
the procedures to acknowledge good performance in their system. However, Citistores needs to
organize a reward system because it will not only be beneficial to the employees but also to the
organisation. The employee will feel more motivated to work harder.by having a reward system
in place the employee will feel more committed to their work and their productivity will
increase. An increase in productivity will then benefit the organisation. Therefore, a reward
system is mutually beneficial to the employee and the organisation.

2. Recommendations to include or improve the policies and procedures to reward and

acknowledge good performance.

The incentive program is intended to address our retention issues, by making our employees
stay with the company. The program is proposed to recognize our employees’ efforts and
contribution to the Citistores. We expect that the program will improve employee morale and
make them more productive.

So, our proposal are the following:

- Implement an Incentive Program as part of our Annual Performance Review.

o Every year, each manager reviews the performance of the employees against the job
expectations and targets set at the start of the year.
o They are then given a rating from 1-5, with 5 as the highest.
- If an employee reaches their performance target they become eligible to receive an incentive, as
follows:
o Rating of 5 or Excellent – 15% of their annual salary
o Rating of 4 or Above Expectations – 10% of their annual salary

Student ID: 20037552 BSBHRM403 Support performance management

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Bayaua, Julianne Celine P. Assessment 1 Part
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 o Rating of 3 of Meets Expectations – 5% of their annual salary
- Those getting a rating of 2 or below expectations and 1 or needs improvement, will not receive
any incentives.

This proposal is according to market standards and will make us competitive.

3. An explanation on how the HR team will monitor and ensure that the procedures are being
followed.

It can be incredibly time-consuming trying to get all of the employees compliant with policies and
procedures. Also, we need to know how your staff is staying compliant, how easy it is for them to
stay compliant, and this can be different for each department within the business. We need to make
sure processes are carried out effectively to ensure you are 100% compliant if they aren’t being
done properly you need to figure out the reasons why your processes are failing. Because non-
compliance can lead to large financial penalties, inspections, and audits, imprisonment, destroy a
brand’s value and market reputation, or your company could be shut down completely (Oplift, n.d.).
So how can you ensure compliance in the easiest way possible?

Oplift is a multi-award winning employee empowerment platform for organizations looking to give
their staff the tools and knowledge they need to do the best job they can. It improves customer
service, employee knowledge, compliance, data security, and employee engagement. Forget about
your clunky, outdated learning management system, intranet, excel spreadsheets, emails, folders,
and paper checklists (Oplift, n.d.). Using Oplift, it is one simple digital platform that has what your
staff needs all in one place. These are the following functions of Oplift (Oplift, n.d.):
 
·        With Oplift, you can publish policies as a single item or break them down into several stages.
This makes it easier for navigation and simple for users to follow.
·        For some policies, a number of reviews must be carried out and recorded to make sure
employees understand the policy and are following it. This can be achieved via Oplift’s Checklist
feature, the completion of which is automatically logged and can be reported on.
·        With Oplift, you can add articles to specific categories to keep them organized (e.g., safety,
compliance, loss prevention). And these can then all be kept under a parent category of ‘Health and
safety’ which can show as a tile on the dashboard. This means that your employees can get to your
policies within three taps; it doesn’t get much easier than that.
·        Oplift search capability in the top left means employees can search for any policy or procedure
with immediate results.
·        The acknowledgments feature on Oplift means you can be notified when a staff has read
certain articles. To ensure the whole team is compliant, you need clarification that they have read
certain policies and procedures. However, one acknowledgment is not always enough; sometimes,
you need policies to be re-acknowledged. For example, a health and safety policy may need to be
read once per year, but a code of conduct policy will need to be read once per month. Oplift’s
 frequency feature on acknowledgments means you can set how often you would like your policies
and procedures to be read.
·        With Oplift, you can send notifications directly to your employee’s mobile devices even if the
app is closed. These can notify employees of when the article needs to be acknowledged.
·        Oplift review allows your staff to report people, locations, and objects. They can do this at the
moment, wherever they are, and results will be sent straight to the head office for a complete
overview of compliance in your business.

Activity 2

a) Your comments on whether the appropriate procedure was followed in addressing under-
performance or acknowledging good performance in each of the above cases, with supporting
examples.

Based on my observation, the appropriate procedures were being followed in addressing both under-
performance issues of Sandra and Alan. In their action plan and performance appraisal, the appraiser
identified the problem that cause of their under-performance and what actions are they going to
conduct to improve the skills of the employees. After that, they are going to discuss these with the
employees and will help the employees to amend their performances.

b) The errors or weaknesses that you found in the documentation relating to Alan and Sandra’s
appraisals.

For Clarkson, the date of appraisal is blank. Moreover, there is a possibility that the manager might not
have discussed it yet since there is no sign of Clarkson in the given form. This can be corroborated with
the employee action plan file of the employee where the date of task completion will be still blank.
However, the filenote on Clarkson which is dated on April 27, is still questionable if this is even related
to the appraisal.

For Howell, she was able to put her signature on the performance appraisal form, which could mean
that this was already discussed with her. However, there is no date as to when the appraisal was done.
Besides, the goal set during the previous evaluation is “more training on leadership skills,” but the
“training and development initiatives” and “career planning” is blank. It seems that actions were not
taken or programs were not presented for this goal.

c) Your advice and recommendations on how to improve the quality of the documentation when
completing same.

According to (“Bullet Documentation”, n.d.) these are the process to improve quality of
documentation:

1. Describe company expectations. Clearly state what the job description or the company policies
require. 

Student ID: 20037552 BSBHRM403 Support performance management

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Bayaua, Julianne Celine P. Assessment 1 Part
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 2. Describe the behavior or performance that must change (or that you want to continue).
Describe the conduct, not the individual. Avoid making broad judgments using words such as
“always” and “never,” which can be easily disputed by the employee’s attorney.  Describe how
the worker’s behavior impacts others trying to do their jobs. Don’t forget to include positive
comments as well. 
3. Include the employee’s explanation for why expectations aren’t being met. Having a two-way
conversation shows the manager’s attempt to be fair and learn how to help the individual.
Rushing to judgment can backfire on a manager.
4.  Prepare a detailed action plan that the employee should use to improve performance. This isn’t
a performance improvement plan, but more like coaching the employee to do better.
5. Set deadlines for correcting the behavior or performance. Don’t say, “We expect you to turn
things around immediately.” That can mean different things to different people, she said.
Rather,
say, “We expect your report will be turned in by 5 p.m. tomorrow.”
Follow up at the specified deadline. 

6. Describe the consequences if the behavior or poor performance continues. Obviously, you don’t
want to discuss consequences in early coaching sessions, she said. However, after repeated
attempts to help the employee meet expectations have been unsuccessful, or in the case of
serious policy violations, disciplinary action may be needed. 
7. Avoid vague phrases that could provide grounds for discrimination lawsuits. Those are red flags
that could cause the employee to believe the firing is attributable to his or her gender, race or
national origin—or to his or her membership in another group protected under federal civil
rights laws.

d) Steps to be taken, in line with Citistores policies and procedures, to resolve Alan’s dissent on
his performance appraisal.

In cases when an employee feels that they are unfairly treated during a performance review or appraisal
process, Citistores' Grievance and Disputes Policy provides the following procedures:

Step 1. Parties involved should make it an effort to resolve the issues amongst themselves first through
establishing mutual trust and respect.

Step 2. Should the first step be ineffective, the immediate manager should mediate between the parties.
The manager must adequately document the dispute and record minutes of meetings. The minutes of
the meeting must include the following, and parties involved are to be given copies thereof.
• date, time, and place of meeting
• attendees
• summary of discussion
• exact details of any resolutions and agreements reached, rejected offers, claims
  or counterclaims undertaken
• acknowledgment of all parties through signature
Examination of the issues by the employees themselves is encouraged as this may help lessen the
tension of the situation. Moreover, a third-party may represent the employee or the employer at any
time and must be expressed in writing.
Step 3. In case the issue is still not resolved at the step 2 level, the matter shall be discussed with the
relevant Director or the CEO. "The outcome of this resolution, from an internal perspective, will be
final."

Step 4. "The Employee will be advised of his/her rights to pursue the matter with external authorities
should any issue/s not be resolved to their satisfaction."

e) Steps to be followed in addressing Alan’s under-performance, in line with Citistores policies

and procedures on managing under-performance.

Under-performance occurs when an employee's actual performance is below the performance

standards that was established. In case this happens, Citistores' Performance Management
Policy shall take effect. It essential that line managers/supervisors shall follow the process for
performance improvement to rectify under-performance. Below are the steps:
1. Discuss with the employee in private which performance is poor, why it has to be
addressed, how to improve it, and when to reassess performance.
2. Give the employee the opportunity to express his/her side of the story.
3. Use the Performance Counselling Form to document the discussion.

f) A brief review of Sandra’s appraisal, to check whether there were improvements from the
previous year’s results, and your findings on same.

Seeing the performance appraisal of Sandra, the appraiser stated in her previous evaluation is
that she needs to improve her product knowledge, time management skills, and understanding
of Citistores policies and procedures so as to train team members. However, in her recent
performance the appraiser stated that she needs to improve her leadership skills and product
knowledge. So it means that her time management skills have already improved and her
understanding to the Citistores’ policies and procedures. But her product knowledge still needs
improvement and same as her leadership skills.

g) Patterns in skills or performance gaps you have identified in Sandra’s case.

The patterns that I have identified in Sandra’s case are she needs to improve her product
knowledge and her leadership skills. That means how can she lead her team when she doesn’t
even know the products that they are selling. Moreover, product knowledge ensures that sales
professionals can communicate effectively and enthusiastically, building trust and confidence in
customer relationships.

h) Options you can suggest to Paula to help with facilitating Sandra’s development.

1. Create Development Plan

The development plan should provide a roadmap for the employee that includes measurable
goals and a realistic timeframe for achieving each goal. Taking time to discuss and add detail to
Student ID: 20037552 BSBHRM403 Support performance management
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Bayaua, Julianne Celine P. Assessment 1 Part
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 the employee development plan or blueprint will increase the likelihood for a return-on-
investment for all involved.

       2. Provide Performance Metrics

Measuring progress also provides evidence of how these activities are working. Furthermore,
performance metrics help drive accountability when paired with effective leadership as taught
here.

   3. Provide Job opportunities Outside of Job function

The additional responsibility will put them in new situations, add challenges, expand skill sets,
and encourage them to think on their feet, which will also improve their chances for success in
any future roles they take on. This type of development also creates energy and excitement in
the workplace.

      4. Set as an example

By modeling this behavior, leaders build credibility and the trust necessary to encourage
employees to participate in development-building activities. It shows employees that
development is part of the organization’s culture. It sends the message that it’s important for,
and expected from, everyone in the organization to be part of a continual improvement process
that nurtures from within. 

i)        An explanation of coaching and mentoring as options for Sandra’s development.

Mentoring is a relationship between two people with the goal of professional and personal
development. The mentor is usually an experienced individual who shares knowledge, experience,
and advice with a less experienced person. On the other hand, coaching, is defined as partnering
with clients in a thought-provoking and creative process that inspires them to maximize their
personal and professional potential.

j)        An explanation of succession planning, which may be useful to consider in Sandra’s case.

1. Executive Coaching : Add significant business skills to a leader’s arsenal, helping employee to
lead at the highest level.

2. Stretch Assignments : Offer employees assignments either in or out of their current role that
challenges their current ability.

3. Mentoring programs: Increase employee motivation and engagement by implementing a high-

impact mentoring program.

4. Leadership Development: Citistores’ training and development recognises the importance of

employee training and continuous learning as an integral part of the success and efficiency of the
business. It is also seen as instrumental in the enhancement of the employees’ personal
development within their roles and in preparation for career advancement.
 REFERENCES

City Beach Australia Mission, Benefits, and Work Culture. (n.d.). Retrieved from
https://au.indeed.com/cmp/City-Beach-Australia/about

About ALDI - ALDI Australia. (n.d.) Retrieved from https://corporate.aldi.com.au/en/about-

aldi/

Oplift - Employee Engagement, Learning & Operations. (n.d.) Retrieved from.

https://ocasta.com/product/

How to Create Bulletproof Documentation. (n.d.) Retrieved from

https://www.shrm.org/ResourcesAndTools/hr-topics/employee-
relations/Pages/performance-documentation.aspx

Student ID: 20037552 BSBHRM403 Support performance management

processes
Bayaua, Julianne Celine P. Assessment 1 Part
B