The company , with which I am familiar is AMRO Logistics. It is a company providing a wide range of transport options for oversized freights. AMRO owns special sets of trucks and trailers enabling to transport oversized freights and cooperates with other companies having abilities in similar services and also owns a service station with warehouse and paint shop , where the company's equipment is serviced. AMRO is separated into two departments. The first department is office , where office staff works on finances , customer services and other formal issues. The second department is service , where specialized mechanics , painters , engineers and suppliers work both physcially and mentally as they are responsible for the right preparation and maintenance of trucks , trailers and the rest of the company's equipment.
The rewarding system of the AMRO Logistics differs for different groups because members of different departments want different rewards. Office department members are being given money bonuses divided into three stages with different percentage depending on the task assessment. Service department members are being given salary bonuses depending on the effort they put in their work and also they are being given free qualification raising courses such as welding courses with the use of the newest machines , coordinating a work of digital milling machines etc. The rewards of AMRO employees are different. Office employees are being given money bonuses , whereas service employees are being given both money bonuses and free qualification raising courses. There are reasons why it is happening. Firstly , office employees don't want to go on courses , where they are able to learn how to weld or use the milling machine. The other reason of office employees being rewarded only with money is that most of them are working for the company from the beginning of it's existence and they have their own working systems that they developed themselves. They know how to react properly in their job and they prefer to be given more money than courses , on which they will be told how to work better mostly by younger and less experienced people than they are. On the other hand , there are also younger members of the office department but they also prefer to be given more money , because their process of raising qualifications is taking place when doing their job because they learn from the older employees. Thus fairness and equity in the AMRO Logistics is ensured as both of it's departments have been offered same rewarding options.
When interviewed , Mr.Rostowski explained also his previous working experience in transport company working within Poland and Germany , in which he has been working as the transport manager. He knew the chief executive personally and that way he was able to learn more about the senior management in a large company. That company doesn't exist anymore nowadays , but it's chief executive used to receive large bonuses when the performance level of the company was both lower and higher. However , when the performance level of the company was low because of his mistakes , he hasn't been rewarded.
Chief executives should receive large bonuses , even if the organisation that they have led has underperformed , but other factors have taken place.
If the decision about an action that is vital for the company has been forced by shareholders , and chief executive knew that he can not disagree with them , he should still receive a bonus because it wasn't his fault. He might have advised the shareholders that their ideas are not good for the organisation. He could have been told that the punishment is going to be given to him if not doing what shareholders want him to. For example , the chief executive that Mr. Rostowski has been working for , was told by his shareholders to change their standard way through the border for the longer one. They thought that going through the longer road will cost less than going through the standard one , because the permission paper costs were lower. However , many mistakes were made in their calculations , and the company has been fined by the transport agency for the wrong papers. Chief executive has been given the instruction to follow. He did. He also spend more time on carrying out the project , and although he knew what is going to happen , he could not disagree with shareholders. He has been given a reward for the time and effort , because the shareholders were clearly presented with the opinion of chief executive about their plan.
However , chief executives should not receive any bonuses if the low performance level of their companies resulted from their decisions. For example , if chief executive forced the junior managers to employ people disliked by the managers , which resulted in the lack of communication , effort or task understanding within the teams , chief executive should be blamed for it and not being rewarded. In the company described by Mr. Rostowski , chief executive knew people that used to work for the local small accounting firm. He forced the junior management of the company to employ them in the department responsible for ordering the proper permission papers for extra heavy freights. The managers predicted that they would fit better as accountants , but chief executive told them to put them in the department he chosen. Although they had teamworking experience , the tasks they were presented with were totally different from the tasks they used to have in their previous jobs , so they made many mistakes when ordering papers , which resulted in another fines for the company. Chief executive has been blamed for it , and he was not rewarded.
Another reason not to reward the chief executive with large bonuses is the undertaking the wrong actions on purpose by chief executive. The chief executive mentioned above , has been offered a better paid job position in a company being a competition to the one he worked for. Also , the shareholders changed. Chief executive didn't wanted the new shareholders to gain profits , and knowing that he will soon work for another company , put effort in undertaking the wrong decisions on purpose. He wanted to make the performance level as low as possible. However , it became to obvious for the shareholders after a single period of time , and he was fired , he was not rewarded and further investigation has been taken.
In conclusion , the rewarding system in AMRO Logistics differs for the different types of the employees and the rewards have to motivate the employees as well. They are chosen fairly for both office and service department employees. Chief executives should still receive large bonuses even if the organisation that they have led has underperformed , because they might have been forced by the shareholders but they still could have put much effort and time in their tasks. However , if the bad performance of the led company resulted from their mistakes , that have been proved to them , they shouldn't be rewarded.
Bibliography:
- Rostowski, K.B. Rewarding system in AMRO Logistics and previous working expierience. [Interview] Buckinghamshire New University with K. Rostowski. 24th February 2011.
The rewarding system of the AMRO Logistics differs for different groups because members of different departments want different rewards. Office department members are being given money bonuses divided into three stages with different percentage depending on the task assessment. Service department members are being given salary bonuses depending on the effort they put in their work and also they are being given free qualification raising courses such as welding courses with the use of the newest machines , coordinating a work of digital milling machines etc. The rewards of AMRO employees are different. Office employees are being given money bonuses , whereas service employees are being given both money bonuses and free qualification raising courses. There are reasons why it is happening. Firstly , office employees don't want to go on courses , where they are able to learn how to weld or use the milling machine. The other reason of office employees being rewarded only with money is that most of them are working for the company from the beginning of it's existence and they have their own working systems that they developed themselves. They know how to react properly in their job and they prefer to be given more money than courses , on which they will be told how to work better mostly by younger and less experienced people than they are. On the other hand , there are also younger members of the office department but they also prefer to be given more money , because their process of raising qualifications is taking place when doing their job because they learn from the older employees. Thus fairness and equity in the AMRO Logistics is ensured as both of it's departments have been offered same rewarding options.
When interviewed , Mr.Rostowski explained also his previous working experience in transport company working within Poland and Germany , in which he has been working as the transport manager. He knew the chief executive personally and that way he was able to learn more about the senior management in a large company. That company doesn't exist anymore nowadays , but it's chief executive used to receive large bonuses when the performance level of the company was both lower and higher. However , when the performance level of the company was low because of his mistakes , he hasn't been rewarded.
Chief executives should receive large bonuses , even if the organisation that they have led has underperformed , but other factors have taken place.
If the decision about an action that is vital for the company has been forced by shareholders , and chief executive knew that he can not disagree with them , he should still receive a bonus because it wasn't his fault. He might have advised the shareholders that their ideas are not good for the organisation. He could have been told that the punishment is going to be given to him if not doing what shareholders want him to. For example , the chief executive that Mr. Rostowski has been working for , was told by his shareholders to change their standard way through the border for the longer one. They thought that going through the longer road will cost less than going through the standard one , because the permission paper costs were lower. However , many mistakes were made in their calculations , and the company has been fined by the transport agency for the wrong papers. Chief executive has been given the instruction to follow. He did. He also spend more time on carrying out the project , and although he knew what is going to happen , he could not disagree with shareholders. He has been given a reward for the time and effort , because the shareholders were clearly presented with the opinion of chief executive about their plan.
However , chief executives should not receive any bonuses if the low performance level of their companies resulted from their decisions. For example , if chief executive forced the junior managers to employ people disliked by the managers , which resulted in the lack of communication , effort or task understanding within the teams , chief executive should be blamed for it and not being rewarded. In the company described by Mr. Rostowski , chief executive knew people that used to work for the local small accounting firm. He forced the junior management of the company to employ them in the department responsible for ordering the proper permission papers for extra heavy freights. The managers predicted that they would fit better as accountants , but chief executive told them to put them in the department he chosen. Although they had teamworking experience , the tasks they were presented with were totally different from the tasks they used to have in their previous jobs , so they made many mistakes when ordering papers , which resulted in another fines for the company. Chief executive has been blamed for it , and he was not rewarded.
Another reason not to reward the chief executive with large bonuses is the undertaking the wrong actions on purpose by chief executive. The chief executive mentioned above , has been offered a better paid job position in a company being a competition to the one he worked for. Also , the shareholders changed. Chief executive didn't wanted the new shareholders to gain profits , and knowing that he will soon work for another company , put effort in undertaking the wrong decisions on purpose. He wanted to make the performance level as low as possible. However , it became to obvious for the shareholders after a single period of time , and he was fired , he was not rewarded and further investigation has been taken.
In conclusion , the rewarding system in AMRO Logistics differs for the different types of the employees and the rewards have to motivate the employees as well. They are chosen fairly for both office and service department employees. Chief executives should still receive large bonuses even if the organisation that they have led has underperformed , because they might have been forced by the shareholders but they still could have put much effort and time in their tasks. However , if the bad performance of the led company resulted from their mistakes , that have been proved to them , they shouldn't be rewarded.
Bibliography:
- Rostowski, K.B. Rewarding system in AMRO Logistics and previous working expierience. [Interview] Buckinghamshire New University with K. Rostowski. 24th February 2011.
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