The purpose of remuneration committee is to ensure that the strategic aims of the company and the remuneration arrangements go hand in hand and support the whole human resource management of top level executives while complying with the regulatory environment. With unfair remuneration and irresponsible acts of top management of companies in several sectors, the formation of remuneration committee became a necessity from regulatory point of view. Thus a remuneration committee by maintaining the proper level of remuneration to motivate the top level management of the quality necessary to run it effectively.
Performance evaluation are done to measure the contribution of individual employee to the company, and assist in the appraisal process to both the employer and the employee. It helps to achieve higher quantum of work while maintaining the quality by motivating the workforce, ensuring accountability of tasks handled, promoting growth and individual development, and inspiring the employees by acknowledging their contribution to the workforce.
Two possible negative consequences of performance evaluation are:
Value chain analysis helps an organization to understand the economic principle of advantage and how they can apply to gain competitive advantage. It helps the company to comprehend in which particular point is it good at in the whole value chain so that it could specialize in them and provide the greatest competitive advantage. For example, Walmart used it value chain analysis and used information to reduce inventory and became the biggest name in the low price domain.
Labor rate variance shall be calculated as follows:
Actual Hours = 27000 hours
Actual Cost = £30,000
Actual Rate = 30000/27000 = £ 1.11 per hour
Standard Cost of actual hours = Actual Hours x Standard Rate
= 27000 hours x £ 1.40 per hour = £ 37800
Labor Variance = Actual Cost - Standard Cost of the Actual Hours
= £30000 - £37800 = £7,800 Adverse
3 causes of the adverse labour variances identified are: