Remuneration as perceived by the employees of a banking institution

Abstract

This study contains the results of an investigation that was undertaken to monitor the performance of the implementation of broadbanding and the flexible, performance-based remuneration strategy of a banking institution in South Africa. In the chapters dealing with the theoretical aspects, the author has defined the concept remuneration management. The author has also theorised a basic understanding and checklist of areas of importance and considered the intricacies pertaining to rewards. The psychology of remuneration, posing answers into aspects of employee motivation, expectations and attitude towards work and money with deliberations relating to the psychological contract between employer and employee, have been discussed. The principles pertaining to remuneration management, in system design as well as economic and market principles have been closely examined in order to illustrate the link with business strategy and goals. Finally, the author presents an overview of wage bargaining and the impact thereof for business. Subsequently the implementation of the new remuneration strategy was analysed critically as a tool for institutionalising change in the organisation. The main hypothesis was set that the employees in the Logistics and Properties Division of ABSA Bank will experience the implementation of the new remuneration strategy as positively influencing and assisting in the establishing of a culture in the Division in terms of the strategic focus on business, learning and legitimacy.