External Environmental Factors: Disadvantages And Cons Of Advantage

According to education portal.com external environmental factors are events that take place outside of the organization and are harder to predict and control

‘Discipline provided by debt is more valuable for profitable firms as these firms are likely to have severe free cash problems’ (Jensen cited in Frank and Goyal 2009:7). In relevance to this the mathematical formula of calculating corporate tax will lure Cavendish Hotel on a bad side as they would have to pay more tax due to a peak on revenue which is boosted by high performance thus they should try to come up with strategic ways in which they can reduce taxation such as giving back to the community.

The market pay movement will also distress the pay that employees get in relation to their

This also encourage employees to uphold a tournament theory as they are driven mainly to deliver to meet organisational culture and strategy. Refer to appendix 1.

2.2.2 DISADVANTAGES OF PERFOMANCE RELATED PAY

Lawler (1994) believes that variable pay which he delineates as a crucial mechanism for communicating desired effort levels being subject to individual or organisational performance argues that sometimes employees work beyond and above their job description by working as a team, thus paying individuals on how competent they deliver their work may not be as fair as the system is perceived as different factors such as group or team work, team building and on-job training may not be considered leading to other team members dragging their feet hence excessively reducing productivity.

It is therefore on such a foundational factor to also denote that this system entirely does not consider the costs that are incurred. Often for managers to be fairly sure of the grading they may need external auditors to aid in the process and such skilled manpower needs to be paid deducting from the company’s account. Printing marking review sheets may also be resources that may bring costs for the

In many organisation benefits or reward packages are often used to attract, motivate or improve performance of employees but some companies’ structures and objectives do not cater for such incentives that is why benefits would at times motivate other employees in one company and not in the other. Managers should first consider their company’s strategy before implementing reward strategies to see if it would be fit for not only the employee as normally alleged but also for the organisation.

Its high time organisations consider training and developing their line managers, this would assist them to be equipped with beneficial knowledge and strategically analyse when it comes to dealing with employees of different attributes or traits, to know on which grounds organisations ought to reward employees and how what the home affair’s judicial law perception and penalties concerning reward systems used in