PCM report

Topics: Reward system, Organizational studies and human resource management, Organizational studies Pages: 21 (4517 words) Published: February 25, 2015


Factors Influencing Reward Systems in the Insurance Industry: Manulife Hong Kong Case Study Name:
Institution:

Table of Contents
1.0 Introduction3
2.0 Background4
3.0 Manulife Reward Systems5
3.1 New Agents5
3.2 Normal Agents6
3.3 Agency Managers8
4.0 Factors Influencing the Manulife Reward System8
4.1 External Factors8
4.1.1 Market Competition8
4.1.2 Labor Market and Regulations9
4.2 Organizational Factors10
4.2.1 Human Capital Characteristics10
4.2.2 Operations Scale11
5.0 Pay Differences Impacts11
5.1 Equity Theory12
5.2 Reinforcement Theory13
5.3 Goal Setting Theory13
6.0 Recommendations14
6.1 Bonus Reward System14
6.2 Increased Agents Involvement15
7.0 Conclusion15
8.0 Peer Review16
8.1 Introduction16
8.2 Learnt Lessons16
8.3 Study Challenges17
References19

1.0 Introduction
The insurance industry has over the years evolved into its current form. As Borscheid and Haueter (2012, p. 415) notes, initially, the industry was a sub branch of pensions and other related funds. However, the increasing cases of job insecurity, employer-employee conflicts, and the subsequent losses, a resolution was inevitable. In this regard, the insurance industry evolved. While as the industry initially focused on business losses and profits as their cover basis, this has evolved to support and evaluation of business processes. Consequently, unlike in the past where the industry offered single general covers to organizations, today the industry offer process specific insurance covers to organizations (Feng, Rao & Law, 2010). With their increased expansion and influence in the market, insurance firms, require increased workforce to facilitate and execute their operations. As such, the insurance industry has both organizational corporate staff and agents. Consequently, the reward and compensation systems adopted for the two groups differ. This study evaluates the agents reward system in the insurance Industry. This is mainly based on the fact that the agents earn no basic salary and their rewards are based on commissions. Moreover, the commission value is hedged on a number of influencing factors that this study seeks to establish. For clarity purposes, the study adopts the Manulife Financial Company through interview sessions with the management and low-level employees.

2.0 Background
The Manulife financial Company was instituted in 1887 under the steward leadership of John A. McDonald in Canada. Over the decades, the company has grown beyond the initial imagined scope to cover areas in Europe, Asia, and USA. In this regard, the company has command bases in each of these regions. In this growth scheme, the company ventured in Hong Kong in 1930. Since then, the company has expanded and increased its market influence in the industry. This is evidenced by its projected increased growth rate forecasts for 2014.

Source: (“Manulife Financial”, 2013).
In its operations, the company uses two types of human resource management portfolios (McQueen, 2009). On one hand, it has its permanent employees who are rewarded on a pre-determined salary basis. On the other hand, the organization has agents. Unlike the employees, the agents are not part of the organizations workforce and are contracted on an independent status credentials. In this case, the company establishes varied contracts with the agents. In particular, the agents are remunerated based on commissions. Moreover, they receive compensations based on the sales volumes made. However, their compensation rates are dissimilar. In this regard, the study seeks to establish the factors influencing the value of rewards in the insurance industry for the organizational agents. Organizational Chart

3.0 Manulife Reward Systems
The Manulife Company rewards its agents differently under three distinct categories that include new agents, normal agents, and agency managers. Each of these three categories is rewarded under...

References: Amos, T. (2008). Human Resource Management. Wetton, Cape Town: Juta.
Armstrong, M. (2007). A Handbook of Employee Reward Management and Practice. Philadelphia: Kogan Page.
Asher, M., & Newman, D. (2001). Hong Kong and Singapore: Two Approaches to the Provision of Pensions in Asia. Journal of Pensions Management, 7(2), 155-166
Bolumole, Y
Borscheid, P., & Haueter, N. V. (2012). World Insurance: The Evolution of a Global Risk Network. Oxford: Oxford University Press.
Durai, P. (2010). Human Resource Management. Chennai: Pearson.
Feng, B., Rao, M., & Law, V. (2010). Enriching Lives: A History of Insurance in Hong Kong, 1841-2010. Hong Kong: Hong Kong University Press.
Flynn, S. M. (2010). Linking Human Resource Strategy and Operations: An Integrated Framework. Leicester: Matador.
Gitman, L. J., & McDaniel, C. D. (2008). The Future of Business: The Essentials. Mason, OH: Thomson South-Western.
Henry, A. (2008). Understanding Strategic Management. Oxford: Oxford University Press.
Ilic, M. (2012). An Analysis of the Relationship between Insurance Sector Activity and Economic Growth. Paper presented at the 480-493
Jain, H
Lunenburg, F. C., & Ornstein, A. C. (2012). Educational Administration: Concepts and Practices.
MacDonald, S. B., & Lemco, J. (2011). Asia 's Rise in the 21st Century. Santa Barbara, Calif: Praeger.
Manulife Financial, (2013). Company Financial Projections. Retrieved from
McQueen, R
Papatheodorou, A. (2006). Corporate Rivalry and Market Power: Competition Issues in the Tourism Industry. London: Tauris.
Phillips, J. M., & Gully, S. M. (2013). Human Resource Management. Mason, Ohio: South-Western Centage Learning.
Qu, R. (2007). Effects of Government Regulations, Market Orientation and Ownership Structure on Corporate Social Responsibility in China: An Empirical Study. International Journal of Management, 24(3), 582-591,620
Rao, V
Rauch, C. (2007). The Goal-Setting Theory: A Short Discussion. München: GRIN Verlag.
Siddiqui, M. H., & Sharma, T. G. (2010). Measuring The Customer Perceived Service Quality For Life Insurance Services: An Empirical Investigation. International Business Research, 3(3), 171-186.
Skiba, M., & Rosenberg, S. (2011). The Disutility of Equity Theory in Contemporary Management Practice. The Journal of Business and Economic Studies, 17(2), 1-19, 97-98
Tavitiyaman, P., Hanqin, Q
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Recommendation Report Essay
  • Report Writing Essay
  • short report Essay
  • How do I write a report Essay
  • Essay on incident report
  • Essay about Impormal Report
  • Incident Reports, Logs, and Narrative Reports Essay
  • Proposals and Report Essay

Become a StudyMode Member

Sign Up - It's Free