Microsoft Excel 20072010 What-If Analysis © Martin Green

Microsoft Excel 2007/2010 What-If Analysis
© Martin Green www.fontstuff.com 1
Excel’s Business Tools: What-If Analysis
Introduction
What-If Analysis is an important aspect of planning and
managing any business. Understanding the
implications of changes in the factors that influence your
business is crucial when it comes to
making important business decisions. What would be the effect
of an increase in your costs, or if
turnover rose or fell by a certain amount? How would a change
in interest rates or exchange rates
affect your profits? Excel offers some easy-to-use tools to save
time doing your calculations and
help you make more accurate forecasts.
This tutorial uses the simple example of a cash loan to
demonstrate some of these tools. It makes
use of Excel's PMT Function to calculate repayments on a loan,
then shows how you can use the
Goal Seek tool to manipulate variables such as the amount
borrowed, repayment period and
interest rate to arrive at a desired result. You will see how to
use Data Tables to display a large
number of calculations employing one or two variables and
finally use Conditional Formatting to
present the results in an easily understandable way.

The screenshots in this document were taken in Excel 2010 and
apply equally to Excel 2007. Most
features also apply to Excel 2003.
The PMT Function
The PMT function is used to calculate the repayments on a loan
based on a constant interest rate.
It can accept up to five arguments. The first three are required
and often only these are used:
Rate – The interest rate expressed as a percentage (you use the
percent sign when entering the
rate into the cell). When entering this argument you need to
take account of the frequency of the
payments. For example, if the payments are monthly this value
should be divided by 12 when
entered into the function.
Nper – The total number of payments for the loan. For example,
for a loan repaid monthly over a
period of 3 years this value would be 36 (i.e. 36 months).
Pv – The present value. This represents what the total value of
the loan is worth now (i.e. how
much is to be borrowed). Enter this as a minus value so that the
function returns a positive value
for the repayments.
There are two additional optional arguments:
Fv – The future value. Enter a value here if you want to end the
loan period with a cash balance
(i.e. it is not being paid off completely to zero). Omit this value
if the entire amount borrowed is to
be repaid.
Type – Usually repayments are made at the end of each period,
in which case this argument is

omitted. Enter 1 if the repayment is made at the beginning of
the period.
An example of the function is illustrated below (Fig.1).
Fig.1 Using the Insert Function tool to enter a PMT function.
The Goal Seek Tool
The Goal Seek tool allows you to determine what value a
particular argument needs to hold so that
that a function will return a specified value. In this example the
PMT function has calculated that a
loan of £20,000 over 60 months at an interest rate of 6.8% per
annum will require a monthly
repayment of £394.14. Using the Goal Seek tool you can find
out, for example, how much money
you could borrow if the repayments were only £350 per month.
Essentially, you tell Excel what you
want the answer to be and which value it can change to achieve
that.
1. Open the Goal Seek tool by going to the Data tab then
choosing What-If Analysis and
Goal Seek.
2. In the Goal Seek dialog box specify which cell will display
the desired value. To do this click
in the Set cell: textbox then click on the cell that displays the

result of your calculation.
This cell must contain a calculation (a formula or function).
3. Type the value that you want the calculation to return in the
To value: textbox.
4. Specify which cell contains a value that Excel can change in
order to arrive at the desired
result. Do this by clicking in the By changing cell: textbox then
clicking on the cell that
contains the value that you are allowing Excel to change. This
cell must be one of the
values used, directly or indirectly, in the calculation.
5. Click the OK button to perform the Goal Seek.
When you click OK Excel calculates the required value and
opens a new dialog box to display the
result. It also inserts a new value into the specified cell so that
the calculation now displays the
required result (Fig.2). Click OK to accept the new value or
Cancel to restore the original value on
the worksheet.
Fig.2 Using the Goal Seek tool to arrive at a specified value.
The Goal Seek tool is very useful and saves a lot of “trial and
error” when trying to forecast the
result of changes to your calculations, but it is limited to
changing only one variable at a time. To
see the result of a changing input over a range of values would
require you to run Goal Seek many
times and record the input values and results for each. (Excel’s
Solver Add-In can be used for
working with more than one variable but is a very much more

complex tool to use.) Fortunately,
Excel has another tool to help simplify that job, the Data Table.
Data Tables
Excel's Data Table tool provides a quick and easy way to
perform "what if" analysis. It is used to
create a range of cells called the data table. The values
displayed in the data table represent the
result of changing certain input variables in your calculation.
You can specify what those changing
variables are and the range of input values that is used to create
the table. Calculations can
contain many input variables. The data table tool can be used to
represent changes in one or two
of them.
As with the Goal Seek example, this example also uses the PMT
function to demonstrate data
tables. Although this is a simple example remember that data
tables can be used with any
calculation that has a variable input.
You might want to vary any of the values used by the PMT
function. The length of the repayment
period can be changed to suit your budget. Perhaps you want to
compare the interest rates of
different lenders. Or maybe you would consider changing the

amount of the loan so that you could
determine the optimum term and monthly payment. To examine
the effect of changing one of
these variables use a Single Variable Data Table. To compare
the effect of changing two of the
variables use a Two Variable Data Table.
The Single Variable Data Table
First create your initial function. If you wish to locate your data
table elsewhere on the worksheet
simply place a copy of the original function where you want it
to start. In this example the function
is situated in cell C7. You should position the function on the
worksheet so that there is space in
the column below it and also to the left. Suppose you want to
see the effect of different loan
amounts (e.g. from £15,000 to £30,000). Enter the list of values
in the column that is to the left of
the initial function, and starting in the row below it (in this
example cell A8) remembering to
express the values in the same way as in the initial function.
Now select the block of data that contains the original function
and the column of values you just
entered, on the Data tab of the ribbon choose What-If Analysis
then Data Table to open the
Data Table tool. Click in the textbox marked Column input cell
then click on the cell in that
supplied the value in the initial function that corresponds to the
column of values you entered
(Fig.3). In this example it is cell B1 (the Loan Amount).
Finally, click OK to dismiss the dialog and
create the table (Fig.4). Here the result cells have been
formatted to show only two decimal places.

Fig.3 Creating a single variable data table.
Fig.4 A single variable data table
The Two-Variable Data Table
When comparing two different variables you need to provide a
column and a row of variable
values. This time enter the column of values directly beneath
the initial function (here starting in
cell B8) and the row immediately to the right of the initial
function (here starting in cell C7). In this
example the second variable is the duration of the loan or Term
in months (e.g. from 3 to 12 years
expressed as 36 to 144 months). Select the block of cells to
include the initial function and the row
and column of variable values and open the data table tool. In
this example the Row input cell is
the one containing the Term in the initial function (cell B3)
(Fig.5). The Column input cell,
representing the Loan Amount, is the same as before (cell B1).
Fig.5 Creating a two-variable data table.
As before, click OK to dismiss the dialog and create the table
(Fig.6).

Fig.6 A two-variable data table.
Conditional Formatting
The mass of figures in a large data table can make it difficult to
read but this can be made a lot
easier with the aid of Conditional Formatting. Unlike regular
formatting, conditional formatting can
change the appearance of a cell according to the value displayed
in it. Consider the example of a
two-variable table shown in the section on Data Tables. Suppose
your criteria for a loan were that
the monthly repayment was between £300 and £350. There are
numerous cells in the table whose
values fall in that range but it is difficult to find them, and the
table will change if any of the other
variables in the calculation are changed. It’s an ideal candidate
for conditional formatting.
In this example (Fig.7) three different conditional formats have
been applied to the data table.
Cells displaying values greater than £350 are shown in red
(these are beyond the upper end of my
price range – I can’t afford them); cells displaying values less
that £300 are shown in yellow (these

are below the lower end of my price range – I can afford a
higher payment); and cells whose
values fall between £300 and £350 are shown in green (these are
the ones I am interested in).
Fig.7 Three level conditional formatting applied to a data table.
To apply this kind of conditional formatting:
1. Select the cells to be formatted.
2. Go to the Data tab and click the Conditional Formatting
button then choose Highlight
Cells Rules then Greater Than…
3. In the Greater Than dialog box enter a value above which the
cells should display a certain
format, in this example 350. Notice that as you do so Excel
displays a preview of the
chosen format on your data (Fig.8).
4. Choose a preset format from the drop-down list (in this
example Light Red Fill with Dark
Red Text was chosen) or choose Custom Format and devise your
own format.
5. Click OK to apply the first format rule and close the dialog
box. Leave the cells selected.
6. Repeat the procedure on the same range of cells, this time
choose Conditional
Formatting > Highlight Cells Rules > Less Than… and in the
Less Than dialog box
enter 300 and choose Yellow Fill with Dark Yellow Text.

7. Click OK to apply the second format rule and close the dialog
box. Leave the cells selected.
8. Repeat the procedure on the same range of cells and choose
Conditional Formatting >
Highlight Cells Rules > Between… and in the Between dialog
box enter 300 and 350
and choose Green Fill with Dark Green Text.
9. Finally, click OK to apply the third format rule and close the
dialog box.
10. When you deselect the cells you should now have a
formatted range of cells looking
something like that shown here (Fig.7).
You don’t have to apply several different formats. You may just
want to highlight cells that satisfy a
particular condition.
When applying multiple conditional formats you are not limited
to just three conditions as in this
example. You can add as many as you need but remember to
apply all your formats to the same
range of cells. Make sure that your format rules do not conflict.
For example, if you choose Greater
than 100 as one rule and Greater Than 200 as another rule,
which of the rules should apply to a
cell showing a value of 250 since both rules apply? (You can in
fact specify a rule for this dilemma

using the Manage Rules tool but if you are new to conditional
formatting it is best to avoid conflicts
in the first place!)
Fig.8 Applying conditional formatting.
In addition to using regular formatting tools such as cell fill
colours and font colours as in the
previous example, Excel offers a range of Icon Sets, Data Bars
and Colour Scales to denote
specified cell values. You can apply these directly to your data
but it is more likely that you will
want to specify your own particular conditions. Excel allows
you to do this using the Manage Rules
tool.
Using Custom Conditional Formats
Using the previous example, you might choose to apply the
Traffic Light icon set instead of fill and
font formatting. To do this first apply your chosen icon set by
going to Conditional Formatting >
Icon Sets and choose an icon set from the list, in this case the
three-colour traffic light set. Excel
applies the icon set to the data but at the same time applies its
own rule for which value range
each colour represents (Fig.9).
NOTE: When you apply an icon set you might find that your
cell values are replaced by hash marks
(#####). This simply means that in order to make room for the
icon the number cannot be
properly displayed. Simply widen each column to allow the
values to be shown.

To specify your own rules go to Conditional Formatting >
Manage Rules. In the Conditional
Formatting Rules Manager select your chosen rule and click
Edit Rule (Fig.9).
Fig.9 Editing an Icon Set rule.
Because there are three icon colours in this set Excel has
created its own rule dividing the range of
values into three by percent (>=67% green, <67% and >=33%
yellow, <33% red) but I want the
colours to apply to specific numerical ranges and in a different
order with red representing the
highest values.
In the Edit Formatting Rule dialog I could simply click the
Reverse Icon Order button but this
would make the middle range yellow and I want that one to be
green, the same as I had in the
previous example. Fortunately Excel lets me specify which icon
applies to each range. Making sure
that Format all cells based on their values is selected, all I have
to do is select the appropriate
icon from the Icon dropdown, choose my operator (>= or >) and
enter a value in the Value box
and choose Number from the Type dropdown (Fig.10).

Fig.10 Creating a custom conditional formatting rule.
After clicking OK to dismiss the dialogs and apply the modified
rule the data appears with the same
colours as before but using traffic light icons instead of fill and
font colours (Fig.11).
Fig.11 Data displayed using a custom Icon Set rule.
NOTE: If you know that you are going to need to customize
your formatting rules you can go
straight to the Edit Formatting Rule dialog by choosing
Conditional Formatting > New Rule.
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3PRM
Unit Title: Supporting Good Practice in Performance and
Reward Management
Unit Code: 3PRM
Credit Value: 6
3
Purpose and Aim
An introduction to the purpose and processes of Performance
and Reward Management and the role of the Human Resources
in promoting and supporting good practice.
Develop the trainees’ understanding of how motivational
theories and associated tools can be used within the context of
Performance and Reward Management
4
Purpose and Aim (Cont…)
Provide an overview of the appropriate skills and good practices
associated with performance management reviews and follow -up
and the data management aspects.
Understand the role of financial and non-financial benefits and
important determinates of reward decisions.

5
Learning Outcome 1
6The learners will:
The learners can:AC1.1 Describe the purpose of performance
management and its relationship to business objectives
AC1.2 Explain the components of performance management
system
AC1.3 Explain the relationship between motivation and
performance management LO1 Explain the link between
organisational success, performance management and
motivation
Defining Performance
Is it:
Loyalty?
Longevity?
Competence?
Potential?
Results?
Behavior?
7
7
Performance
8

Performance Management
According to Armstrong and Baron (2004) Performance
Management is “ a process which contributes to the effective
management of individuals and team in order to achieve high
levels of organizational performance. As such is established
shared understanding about what is to be achieved and an
approach to leading and developing people which will ensure
that it is achieved.”
9
The Purpose of Performance Management
To align people with organisational goals – to communicate
organisational goals and strategy, to ensure individual/team
contribution is linked to the organisational objectives and
business plan
To improve the performance of the individual employees – to
provide support and guidance of what needs to be achieved, to
help the individual understand their strengths and weakness and
identify areas for improvement, to motivate
To improve the overall performance of the organisation
10
Activity
Discuss: is the context of performance important (such as
environment, sector, culture) and in what way.
Please provide practical examples.
11
Components of Performance Management (PM)
The components of a Performance Management process may

include:
Appraisal
Assessment of competence
Objective-setting and review
Learning and development activities
Performance-related pay
Coaching and mentoring
Succession planning
Personal development planning
12
Activity
What are the most important parties / sources that effects
employee performance?
13
Activity answer
What are the most important parties / sources that effects
employee performance?
The employee him self
Direct manager
The organization (Culture/Policy & Procedure)
14
Activity
Please discuss: what is the difference between performance
management and performance appraisal?
15

Performance Appraisal
A performance appraisal is a regular review of an employee's
job performance and overall contribution to a company.
Performance appraisal is often conducted by the line manager at
specific times of the year. Its purposes are:
To review the performance of the individual against set
objectives for the specific role
To discuss career and development desires and how these can be
achieved
Reward reviews
16
Performance Appraisal Benefits
Please discuss what are the benefits to the individual and to the
organisation? Work in groups
17
PA - Individual Benefits
Better understanding of strategic aims and own role in
organisational success
Increased motivation
Increased job satisfaction
Development of potential
Informed career planning
Ability to meet own objectives as well as broader organisational
and team objectives
Opportunity to publicize ambition
Better understanding of the link between effort, performance
and reward
18
PA – Organisational Benefits
Improved communication on business goals

Improvements in performance
Identification of potential to aid succession planning
Targeted training and development activities
Evaluation of selection practices
More objective distribution of reward
Improved retention
19
The Performance Review Cycle
Identifying factors relevant to performance in the job
Collecting information on performance
Organising the information
Discussing or reviewing the information
Agreeing outcomes
20
Components of Performance Appraisal Schemes
Who is to be appraised
Who appraises - the HR? The line?
What is being appraised – the criteria – traits vs results vs
competencies – and the achievement of objectives
What are the assessment methods – checklist, ratings, gradings,
comparison, competencies, critical incidents?
21
Steps for Conducting
Productive Performance Reviews
Identify what the employee has done well and poorly
Ask for feedback and understand any issues
Discuss the implications of changing behaviors
Explain how skills used in past achievements can help overcome
any performance problems
Agree on an action plan

Set a follow-up meeting and agree on behaviors, actions,
attitudes to be evaluated
22
Performance Appraisal process
Good Practice in Performance Appraisal
Support from top management
Systems that are open and participative
Agreement at all levels about the purpose (S) of the scheme
Clear, specific and well-communicated (SMARTS) objectives
that are jointly agreed
Line managers’ recognition of their critical role in this process
– i.e. it is not seen as an HR function
Clear links to the disciplinary and/or capability procedure when
handling conduct or poor performance issues so that the
messages to the employee are the same.
Training for appraisers and appraises, including giving and
receiving feedback.
24
Trends in Performance Appraisal
From traits to result-based assessment
From effort to result focus
From judgmental to joint problem-solving
From managerial to all jobs
From a top-down to 360 degree feedback
From competencies to achievements
25

Assessment of Competencies
Necessary to ensure that staff are both confident and competent
in their work. Individuals are considered competent when they
are able to consistently apply their knowledge and skills to the
standard of performance required in the workplace.
Organisations are increasingly assessing not only what the job
holder achieves, but also how it is achieved. This trend has
resulted in targeting the behaviours of the employees as these
have impact on colleagues and customers.
The competencies based approach is also used in other areas of
HR. Please provide examples?
26
Objective Setting and Review
Business objectives
Team/ division/ departmental objectives linking with business
objectives
Individual objectives linking with the above
As well as:
Individual objectives resulting from development needs
Project objective
Training and development objectives
27
Objective Setting and Review (Cont…)
Objectives should be set by using the SMART framework:
Specific
Measurable
Agreed

Realistic
Time-bound
28
Smart Goals
29
Smart Goals
SMART targets
Specific: should have a focus and not be vague.
Measurable: should include something that can be measured.
Achievable: can be attainable, otherwise it will be de-
motivating.
Realistic: could be done with the resources and skills available.
Time-bound: must have a time frame so that success can be
measured.
30
Activity
Identify if these are SMART goals or not:
To achieve last year profits within nine months of this year.
To learn two new skills within one year.
To achieve an excellent results this semester.
To reduce our cost by 12% at the end of this year.
To raise our product B price 20%.
This year our financial result will be better than last year.
31
Learning and development activities
An organisation is responsible for ensuring that its employees
have the appropriate skills, knowledge and Attitude to fulfill the

organisation's strategic and operational objectives.
This has obvious implications for recruitment, but it also entails
a commitment to learning and development by the organisation
to ensure that skills and knowledge are maintained and
developed to ensure ongoing competitiveness and adaptability.
32
Coaching and mentoring
Coaching is a training or development process via which an
individual is supported while achieving a specific personal or
professional competence result or goal. Mentoring is an ongoing
relationship that is developed between a senior and junior
employee.
Mentoring provides guidance and clear understanding of how
the organization goes to achieve its vision and mission to the
junior employee. A mentor is similar to a coach, he is often
teaching by example, by demonstration of the skills that the
learner can then model.
33
Succession planning
Succession planning refers to a group of activities that aim to
ensure that at any time an organization has sufficient number of
people with the ability, knowledge, personal attributes and
experience to step into roles at the next level when they become
vacant.
The aim is to develop pools of talent from which replacement
can be selected once the vacancy becomes available.
34
Job Description and Performance Review
Clearly identify and spell out the responsibilities of a specific
job

Provide an opportunity to clearly communicate your company
direction and they tell the employee where he or she fits inside
of the big picture.
Set clear expectations for what you expect from people.
Helps other employees, who work with the person hired,
understand the boundaries of the person's responsibilities
35
Activity
Discuss: what is the role of the HR in performance
management?
36
The Role of HR Practitioners
Identifying the need for a new or revised scheme
Designing the scheme
Implementing and communicating the scheme
Designing and organising training for appraisers and appraisees
Administering the scheme
Monitoring the scheme
Maintaining the scheme (i.e. is it working efficiently?)
Evaluating the scheme (i.e. is it working effectively and does it
meet its objectives?).
37
HR Practices for High Performance
The high performance work practices is a set of HR practices
that are considered to have a positive impact on organisational
performance. Although research confirms that there is a clear
link between specific HR practices and organisational
performance, the causality is difficult to explain.

Please give examples of such practices?
Please discuss the reasons why it is difficult to prove the HR
policies have a positive impact on performance
38
HR Practices Examples
Teamwork
Performance related pay
Training to perform multiple jobs
Annual appraisal
Mentoring
Workforce diversity
Formal assessment tools for recruitment
39
Activity
Discuss: what do you think are the reasons for someone
performing poorly? How can these be addressed?
40
Motivational Theories and Their Relevance to Performance
Management
Maslow’s hierarchy of needs.
ERG Theory
Motivational Hygiene Theory.
MCCLELLAND'S learned needs Theory.
Expectancy Theory
Equity Theory
Goal-setting Theory
Reinforcement Theory
41

Maslow’s hierarchy of needs
The needs of individuals can be ranked into a hierarchy.
The lowest ranking needs are the most basic, such as the need
for food, water and shelter, whilst the highest ranking needs
involve very complex issues relating to “self-actualization”
where the individual becomes all that they can possibly be.
All employees have a range of needs that need to be satisfied.
Any unsatisfied lower level needs will mean that employees
cannot be motivated.
42
Maslow’s hierarchy of needs
43
ERG Theory
Studies had shown that the middle levels of Maslow's hierarchy
overlap. Alderfer addressed this issue by reducing the number
of levels to three. The letters ERG represent these three levels
of needs:
Existence refers to our concern with basic material existence
motivators.
Relatedness refers to the motivation we have for maintaining
interpersonal relationships.
Growth refers to an intrinsic desire for personal development.
Like Maslow's model, the ERG motivation is hierarchical, and
creates a pyramid or triangle appearance. Existence needs
motivate at a more fundamental level than relatedness needs,
which, in turn supersedes growth needs.
44

ERG Theory
45
ERG Theory
46
McClelland Theory
There are three main types of motivational need:
The need for achievement
The need for authority and power
The need for affiliation
Each employee and manager has differencing levels of these
needs, and this influence their style and behavior as managers
or employees
McClelland (need for achievement)
People who are achievement-motivated typically prefer to
master a task or situation. They prefer working on tasks of
moderate difficulty, prefer work in which the results are based
on their effort rather than on luck, and prefer to receive
feedback on their work.
47
McClelland Theory
This is the best type for managers, they want to do well and will
therefore use results and people to achieve this.
McClelland (need for affiliation)
People who have a need for affiliation prefer to spend time
creating and maintaining social relationships, enjoy being a part
of groups, and have a desire to feel loved and accepted. People
in this group do not typically make effective managers because
they worry too much about how others will feel about them.

A manager who has strong affiliation motivation will want to be
liked and they may find it difficult to make unpopular decisions.
48
McClelland Theory
McClelland (need for authority and power)
This motivational need comes from a person's desire to
influence, teach, or encourage others. People in this category
enjoy work. and place a high value on discipline.
A manager from this type will take control and want to lead the
organization, but may not be good with people.
49
McClelland Theory
50
Motivational Hygiene Theory (Herzberg)
Like Maslow, believed that pay was not the only motivator and
came up with his theory which had two elements to it hygiene
factors and motivators.
For an employee to be motivated, all the hygiene factors need to
be met first and then the motivators could be used to make them
work harder.
Herzberg’s theory works in a similar way to Maslow’s in that
even if recognition and advancement are offered, if the working
conditions are unsafe an employee will remain de-motivate.
A culture that rewards safe working and pays well is likely to
have staff who are ready to be motivated.
51

Motivational Hygiene Theory (Herzberg)
52
Reinforcement theory is the process of shaping behavior by
controlling the consequences of the behavior.
In reinforcement theory a combination of rewards and/or
punishments is used to reinforce desired behavior or extinguish
unwanted behavior.
53
54
55
Expectancy Theory
M = E × I × V
Expectancy is the belief that increased effort will lead to
increased performance.
Instrumentality is the belief that if you perform well that a
valued outcome will be received.
Valence is the importance that the individual places upon the
expected outcome.
56
Expectancy Theory

57
Equity Theory
Equity theory, most popularly known as equity theory of
motivation, was first developed by John Adams, a workplace
and behavioral psychologist, in 1963.
John Adams proposed that an employee’s motivation is affected
by whether the employee believes that their employment
benefits/rewards are at least equal to the amount of the effort
that they put into their work.
58
Equity Theory
59
Activity
What are the most common mistakes that the supervisor do with
regards to the employee's appraisal?
60
Don't prepare for the appraisal meeting
Don’t listen enough to the employee
Don’t clarify the criteria/standards in advance
Evaluating the employee in the appraisal period only, and Not
given the him/her any feedback during the year
Evaluating the employee on his/her last month's performance
and not the whole year
Maximizing mistakes and minimizing achievements
Evaluating the personality of the employee and not his/her

performance
Not doing their correct role as a direct mangers (unclear
instructions/not providing training opportunities/not providing
suitable working environment or enough resources)
61
To Summarise
The purpose of performance manage ment and its relationship
with business objectives
Features of performance management
Difference between PM and PA
The role of the HR
The link between motivation and performance management
(Motivational Theories)
Dos and Don’ts in the performance appraisal
62
Learning Outcome 1 Review
63The learners will:
The learners can:AC1.1 Describe the purpose of performance
management and its relationship to business objectives
AC1.2 Explain the components of performance management
system
AC1.3 Explain the relationship between motivation and
performance management LO1 Explain the link between
organisational success, performance management and
motivation

Learning Outcome 2
The learners can:AC2.1 Explain the purpose of reward within
the performance management system
AC2.2 Identify and explain the components of an effective total
reward systemLO2 Contribute to effective performance and
reward management in the workplace
Reward
According to Armstrong (2002:4) reward consists of:
“Financial rewards (fixed and variable pay) and employee
benefits, which together comprise total remuneration. The
system also incorporates non-financial rewards (recognition,
praise, achievement, responsibility and personal growth) and in
many cases, performance management process. The combination
of financial rewards, employee benefits and non-financial
compensation comprises the total reward system”
65
Activity
Discuss: why do organisations reward employees?
66
Purpose of Reward
Required by the law
To attract talent

To motivate employees
To retain talent
67
Total Reward System Components
Basic pay and contingent pay – financial reward (bonuses,
commission, share options, company share plan)
Non-pay (fringe) benefits – pension plan, training and
development, annual leave, on-site car parking, childcare and
food vouchers
Wider non-financial rewards – the work environment, corporate
culture, job security, employee recognition practices,
opportunities for personal development and growth, interesting
work, making a positive difference
68
Connection Between Reward and Resourcing
Recruitment – organisations choose to position themselves as an
employer based on the reward they can offer: pay vs culture;
employer of choice - the ultimate positioning where both
financial reward and culture are taken into consideration.
Please discuss why is it important for employers to be seen
as employers of a choice?
Retention – reward (both financial and non-financial) may be
used as a powerful tool to retain talent
Please give examples of how reward helps employee
retention.
69

Connection Between Reward and Motivation
Armstrong and Murlis (1992:282) argue that for reward systems
to act as real incentives they must satisfy three basic
requirements:
The reward should bear a direct relation to the effort
The payment should follow immediately or soon after the effort
The method of calculation should be simple and easily
understood
70
Connection Between Reward and Motivation (Cont…)
To be taken into consideration that different people are
motivated by different incentives (e.g. money, influence, career
growth, job security, work-life balance)
Not every organisation can afford all the components of the
Total Reward System
Some of the non-financial benefits may be invisible to employee
upon the beginning of the employment relationship or may not
be considered as such
Most visible parts remain the financial reward and benefits
71
Pay Systems
There are two main categories of pay system: basic rate schemes
and variable or incentive schemes.
The systems in use in some organisations include a combination
of the two.
Basic Rate Systems
- Here an employee will have fixed rate of basic pay set in
reference to a particular time period – for example, per hour,
per week or per year. There may be other payments in addition
to basic pay, such as overtime or additional pay for working
shifts or nights, for example, but the basic pay rate will not vary

according to individual contribution or performance.
72
Variable or Incentive Pay Systems
Here an employee’s pay – or more usually, part of their pay –
will vary dependent on their individual performance, the
performance of the team they are in or the whole company’s
performance.
The most common types of scheme relate to individual
performance and apply only to part of the employee’s wage or
salary.
Examples of variable or incentive pay systems include sales
commission, appraisal/performance-related pay, payment by
results.
73
Pay Structures
Purpose:
To create a framework for pay that is transparent and easy to
understand
To make sure that payment reflects what the organisation is
trying to achieve
To help ensure fairness and lawfulness
Types of pay structures – graded structures, broad banding,
individual pay rates, job families, pay spines
74
Linking Pay with Performance
Armstrong ( 2002:261) states that PRP:

- Provides individuals with financial rewards in the form of
increases to basic pay or cash bonuses which are linked to an
assessment of performance, usually in relation to agreed
objectives.
75
Non - Financial Rewards
Non-financial rewards unusually refers to those items that are
not pay or benefits but still have a role to play in recruiting,
retaining and motivating employees and generating loyalty and
commitment.
- achievement
- recognition
- responsibility/autonomy
- influence
- personal growth
76
Reward Systems
Rewards is the tool of the org that are used to make staff work
harder, some of them are:
Pay
Pension schemes
Profit sharing
Employee share options
Mortgage subsidies
Bonuses
77
Reward Systems
Loans/advances
Childcare

School fees
Staff discounts
Flexible working
Leave
Health care
Extended parental leave
Cafeteria incentive schemes
Salary sacrifice schemes
78
Reward Systems
Pay
Pay for many employees is the reason they go to work.
Many organizations uses pay to reward thier employees.
They do that by given thier staff one-off bonus or a pay rise
each year (pay scale) to reward them for loyalty or service .
Pay usual is linked to the qualifications and experiences.
79
Reward Systems
A way of giving workers extra money depending on their
performance in the previous period.
Its very common in manufacturing and sales jobs where the
more products employees make or sell, the more they are paid.
The performance targets being used to work out the pay reward
must be easily measurable and accessible to all employees.
80
Reward Systems
Pension schemes
Some org. offer pension schemes as rewards to staff.
Pension: a payment that is given to a person when they retire, it

could be self, company or state pension.
A contributory pension scheme is one that both the employee
and employer put money into.
A non-contributory pension scheme is one that only the
employer puts money into.
81
Reward Systems
Profit sharing
Profit sharing is when a business gives its employees a share of
the profits besed on how the business is doing .
The share of the profit is distributed between staff depending on
some factors such as the performance or/and service years in the
company.
Advantages are it allows staff to share in the business success
and benefit directly from thier own contribution.
The disadvantage is that profits may be linked to other factors,
such as world events or disasters over which employees have no
control.
82
82
Reward Systems
Share options
Like profit sharing, a way to reward employees based on
company performance.
Depending on the its performance, the company options may be
given to employees as free shares that they can sell after a set
period of time or as an option to buy shares at a fixed rate,
which is often lower than the current share value.
83

Reward Systems
Mortgage subsidies
Payments that are given to employees towards their mortgages.
This sort of reward system is more commonly used in areas
where housing is expensive.
Some firms such as banks offer mortgage subsidies as part of
their employee benefit packages.
84
Reward Systems
Bonuses
Giving employees extra money at the end of the year but not
necessary every year.
A good way for the org to reward employees without making it
part of a payment that has to be given every year.
Linked to the level of performance or as one-off bonus for the
completion of a project.
85
Reward Systems
Loans/advances
Some companies might give their employees part of their wages
in advance to pay some of their personal lives expenses.
Other employers may offer loans with low interest low.
86
Reward Systems
Childcare
Some employers offer childcare within their building
Other employers pay the fees of the nurseries or clubs fees for
older children
Some employers also offer childcare vouchers

87
Reward Systems
School fees
Some employers contribute towards school fees as a reward for
staff, particularly if the staff works for the school that the child
attends.
If an org. has a number of staff sending their children to a
particular school they may be able to gain discounts.
Staff discount
Many businesses offer staff discounts across their product
ranges or even have negotiated discounts on products offered by
other businesses they work with.
88
Reward Systems
Flexible working
Provide employees with special arrangements to help them in
balancing between their work and home life.
Work-life balance can be very important to some employees,
especially if they have children or relatives to look after.
Flexi-hours that allow the employee to choose the hours of
working.
89
Reward Systems
Leave
By law every staff in entitled to have a minimum leave every
year, if employers decide to offer more generous amounts of
paid leave they can use this as a staff reward system.
Extended parental leave
Extended leave that employees can take to look after their

children.
Usually this leave is unpaid but the employer will keep the
employees' job open for them to return to.
90
Reward Systems
Healthcare
Employers offer free or subsidized healthcare for their
employees and their families
Healthcare can be received in the organization premises or
outside clinic
This will motivate the employees and may reduce the sick
leaves
Salary sacrifice scheme
Employees will give up part of their gross salary to receive
some kind of benefits instead such as pension scheme.
91
Reward Systems
Cafeteria incentive scheme
Employees are offered a selection of different rewards and
benefits, and they choose which one that they want such as
holidays, company car, loans…
This will benefit the employees and the employers also
Employees will be happier and more motivated
The organization will avoid spending on rewards that are not
wanted
92
The Legal Aspects of Paying Employees
National Minimum Wage

Maternity and Paternity, Statutory Sick and Redundancy Pay
A Week’s Pay
The right to be paid
Lay-offs
Unlawful Deductions
The Equality Act 2010
93
The Role of HR Practitioner
An Advisory Role – you may need to provide both managers and
employees with advice about the reward package in your
organisation – how its works, what it includes, how decisions
are made.
A Research Role – This covers finding out about pay rates and
reward packages in competitor organisations and the labor
market you are operating in.
An Administrative Role - There will be different aspects of the
reward system in your organisations’ chosen pay system, some
involvement in paying wages and salaries, and administering
other aspects of the total reward package, such as holidays or
gymnasium memberships.
94
The Role of HR Practitioner
A Monitoring Role – There will be different aspects of the
reward system in your organisation that need monitoring.
A Training Role - You may be called upon from time to time to
train others (HR colleagues, line managers, trade union
representatives) in how various aspects of the reward system
work.
95
To Summarise

The connection between reward, resourcing and performance
The rationale behind the different reward systems
Role of reward in being an employer of a choice
Components of the total reward system and their role
96
Activity
Discuss: is transparency important? In what way?
97
The learners can:AC2.1 Explain the purpose of reward within
the performance management system
AC2.2 Identify and explain the components of an effective total
reward systemLO2 Contribute to effective performance and
reward management in the workplace
Learning Outcome 3
The learners can:AC3.1 Identify the factors that need to be
considered when managing performance
AC3.2 Describe the data required by individuals in performance
and reward management processLO3 Be able to contribute to
effective performance and reward management in the workplace

Activity
Work in 2 groups, discuss and then present on a flip-chart:
Group one: what factors can impact on individual performance?
Group two: what factors can impact on team performance?
How would you manage good and bad performers?
100
Factors Affecting Individual Performance
Internal/individual factors:
Capability to perform the job
Motivation
Clear understanding of what is required from them
Finding meaning and purpose of their role
External factors:
Have they received appropriate training or guidance
Are they provided with sufficient support
Is the working environment conducive to performance – can be
affected by colleagues/ customers/ physical environme nt
101
Factors Affecting Team Performance
Internal factors:
Management style and skill
Team dynamics
Number of members – is the team short – staffed?
Diversity
External factors:
Objectives set
Broader support from the organisation
102

Factors Affecting Organisational Performance
Internal factors:
Management style
Corporate culture
Individual and team performance
HR policies and practices
Diversity
External factors:
Economic, political, legislative environment
Competitors
Nature of products and services
103
Performance Management Data
Information from the formal Performance Appraisal
Learning records
Employee feedback
Job description
Record on additional achievements/ special projects
participation
Objectives/targets information
Previous performance reviews information both formal and
informal
Personal development plan
104
A Strategic Approach to Reward
Reward is one of the key levers available to an organisation to
influence the behavior, motivation and the commitment of its
staff. In fact the overall approach to reward sends strong
messages to all employees about what is important to the

business.
There is no one “best practice” in terms of reward, only a best
practice for the specific organisation given the variables
impacting on it. Some of these variables are specific to the
organisation, others relative to the industry while others are
national and even international initiatives
105
Critical Elements/Variables to Be Considered Before
Developing a Reward Strategy
Understanding the organisation, its position in its life cycle,
strategy, critical success factors and culture.
Understanding the workforce and its demographics.
Knowing the perceptions and values of stakeholders relative to
remuneration.
Understanding the market in which you compete for skills, the
areas of shortage and demand for scarce talent.
Understanding the environment in which the company operates.
106
Reward Strategy
An effective reward strategy, balances strategic and operational
goals, ensuring short term actions don’t negate long term
opportunities and that the organisation can attract, retain and
motivate the quality of people it needs – people with the
necessary skills, experience (and/or potential to develop these
skills) to achieve its goals.
107

Components of a Reward Strategy Includes:
Paying for Performance
Guaranteed pay
Short term incentives
Long term incentives
Performance Management
Personal Development
108
Three Main Ways of Reward Strategy
There are three main ways in which employer choice in reward
strategy is constrained:
1) By legal regulation of remuneration terms and
conditions.
2) By voluntary agreements to jointly regulate the
relationship via the process of consultation and negotiation
with the trade unions known as ‘ collective bargaining”.
3) By the reality of the external labour market.
109
Activity
Discuss: how do you make decisions on reward? What
information would you use?
110
Activity
Discuss: where would you find information and guidance on
performance standards in the organisation?

111
To Summarise
Performance and reward policies in the organization
Factors affecting performance
Good practice on managing both good and poor performance
Information sources
112
The learners can:AC3.1 Identify the factors that need to be
considered when managing performance
AC3.2 Describe the data required by individuals in performance
and reward management processLO3 Be able to contribute to
effective performance and reward management in the workplace
Learning Outcome 4
The learners can:AC4.1 - Conduct a performance review
meeting
AC4.2 - Reflect on the outcomes of the performance
review.LO4 Be able to conduct and reflect upon a performance
review

Performance Management Purpose
Performance Evaluation is a multi-purpose tool used to:
- Measure actual performance against expected performance
- Provide an opportunity for the employee and the supervisor to
exchange ideas and feelings about job performance
- Identify employee training and development needs, and
plan for career growth
- Identify skills and abilities for purposes of promotion,
transfer, and reduction in force
- Support alignment of organisation and employee goals
- Provide the basis for determining eligibility for
compensation adjustments based on merit
- Provide legal protection against lawsuits for wrongful
termination
115
Performance Management Purposes (Cont…)
The primary purpose of Performance Evaluation is to provide an
opportunity for open communication about performance
expectations and feedback.
Most employees want feedback to understand the expectations
of their employer and to improve their own performance for
personal satisfaction.
They prefer feedback that is timely and given in a manner that
is not threatening.
116
Activity
Work in groups and discuss: Dos and Don’ts for the
performance appraisal period. Flip-chart presentation
117

Dos and Don’ts for the performance appraisal
Do give concrete examples such as: “Your files are very
disorganized. Last week when you were sick, I could not find
the information I needed to respond to an urgent question from
a client. This reflected poorly on our company”.
Do allow the employee time to express him or herself and
provide an explanation if needed.
Do document any comments that are given, including any
explanation received from the employee and the corrective
action to be taken.
Do it at the right time and place.
118
Dos and Don’ts for the performance appraisal
Do explain what specific steps or actions the employee must
take to improve their performance, for example: “I expect all
client calls be responded to within 4 hours.”
Don’t sugarcoat negative feedback. The employee may not get
the message and the issue will seem less important. Get to the
point, be frank and honest.
Don’t use vague statements such as “your performance is poor”
or “great job!”
Don’t wait! Whether the feedback is positive or negative, giving
feedback on a timely basis increases its impact, and everyone’s
memory is still fresh on the details.
119
Performance Management Process
Performance Management Process

- An overall performance management process ensures that
performance feedback, accountability, performance results,
corrective action, and performance planning occur.
120
Skills for Performance Appraisal
Paraphrasing
Summarizing
Responding to non-verbal cues
Body language
Giving and receiving feedback
Range of effective questions
Difficult conversations
121
Potential Issues in Performance Review
The HALO effect
The HORN effect
Can be exacerbated by the ‘RECENCY’ effect
The CRONY effect
The ‘Veblen’ effect
The DOPPELGANGER effect
The IMPRESSION effect
122
Activity
List the 3 things supervisors most often do that have a
detrimental impact on subordinate performance
What is the best thing that supervisors do and has a positive

effect on the employee performance
123
360 Degree Feedback
Pioneered in the US Army in the 1970s . Now used by three
quarters of the Fortune 500 companies and by 40% of large UK
organisations.
Uses anonymous questionnaires focusing on competencies (for
example, leadership skills, teamwork ability).
Composite feedback is sought from: a) lower level staffs (90
degree appraisal); b) bosses (180 degree appraisal) and; c)
colleagues and customers (full 360 degree appraisal)
Mixed evidence of effectiveness of 360 degree appraisal.
Possible management hostility to change.
124
360 Degree Feedback
125
The Balanced Scorecard
Mapped across four quadrants: The financial perspective; the
customer perspective; the internal/business perspective; the
innovation and learning perspective
Provides a unique ‘theory of business’ for the organisation
Feeds down into department and individual targets

126
The Balanced Scorecard
127
Key Tensions Associated with Performance Review
Can create mistrust in management due to increased monitoring
For reward or for development?
Overly bureaucratic
Challenges of measurability…
What is meaningful may not be measureable
128
How should pay be determined?
Pay for time or pay for performance?
Pay by inputs or pay by output?
129
To Summarise
The purpose and process of PM
Key skills required by the appraiser
Good practice in conducting performance review
Possible issues
130

The learners can:AC4.1 - Conduct a performance review
meeting
AC4.2 - Reflect on the outcomes of the performance
review.LO4 Be able to conduct and reflect upon a performance
review
Q/A
Questions, Comments, and Feedback are welcome.
132
Surname 1
Student’s Name:
Instructor:
Course:
Date:
Supporting Good Practice in Performance and Reward
Management
Introduction

Performance management is a process created by a company to
assist them in meeting their goals and objectives by maximizing
the capabilities of its employees. It is a primary component of
an organization when it comes to the way it intends to manage
its employees. Some companies tend to support their
performance management systems by setting a reward system
that motivates workers towards meeting certain objectives. As a
result, both performance management and reward systems help a
company to facilitate employee’s growth and development that
in the end helps the company to meet its goals and targets.
Question 1
Performance management is accepted as a holistic process that
collectively ensures that a number of elements that make it
possible to effectively manage individuals in an organization
are working properly. Moreover, it helps to promote
development and learning in an organization. The main purpose
of performance management in an organization is to assist in
the development of the capacity of employees to realise and
exceed the expectations required to help them unlock their
potential in their areas of expertise (Chen and Jing-Wen Huang
101). In doing so, it helps to benefit both an individual and the
organization. Second, it also offers an origin for self-
development by ensuring that the direction and the support
required to audit the capabilities of employees is in place. Such
issues are instrumental in assisting the organization to plan for
its staff succession and recruitment.
Question 2
Performance management is made up of different components.
They include rewards, career development, performance
planning and testing. Through the component of career
development, the company has the responsibility of ensuring
that its employees develop and learn through coaching, training,

job enlargement or job rotation (Inkinen 230). In this case, the
company should explore any future opportunities in a particular
career path and set up a plan that will ensure that an employee
can realise and experience these opportunities. Rewards are
either non-financial or financial incentives that a company
offers to motivate or boost the morale of its employees (Chen
and Jing-Wen Huang 101). Performance Planning and Objective
setting permits an organization to offer a precise and clear
guidance of the company expectations. It ensures that the
employees comprehend their roles, goal objectives and the way
their contributions can ensure that the company’s performance
improves.
Question 3
It is imperative to note that, there is a direct connection
between performance management and employee motivation.
Employees require morale boosting and motivation to ensure
that they can achieve their goals and aims, hence performing
exemplarily in their positions. There are different factors that
can boost the morale of employees. Maslows theory on
motivation postulates that each individual is motivated by
demands and needs (Inkinen 230). There is a hierarchy of needs
that requires to be catered for in turn before fully boosting the
morale of individuals. One of the needs is basic survival that
occurs in the form of warmth, sex, sleep, food and air. They are
realised by allocating a satisfying salary to an employee for
their position, and providing proper working conditions along
with other benefits.
Second, safety needs such as security, shelter, and stability can
also boost employee morale. A precise organizational structure
and ensuring employees comprehend their roles and
responsibilities in the organization are paramount to meeting
this need (Chen and Jing-Wen Huang 101). Third, there are
social needs, which give individuals a sense of belonging,
affection, love and friendship. A company can ensure that these

needs are met by setting up a good communication network,
teamwork and provision of social clubs or outings for
employees. Fourth, there are esteem needs such as recognition,
status, respect, confidence and strengths (Ferner, and Phil, 241).
As such, promotions, job status, and positive feedback could be
crucial in motivating workers. The final need accordi ng to
Maslow’s theory is self-actualization which focuses on the
realisation of individuals full potential and a feeling of self-
fulfilment.
Another theory that can be employed in explaining motivation is
Frederick Herzberg’s motivational theory. It states that
individuals possess hygiene needs and they cannot function
effectively without them. However, this theory warns that as
soon as they realise these needs, they again lose their morale
once again (Chen and Jing-Wen Huang 101). Apparently, true
motivators are different, such that, work itself, achievement,
recognition, advancement and responsibility come in different
variations to people. For this reason, all fundamental factors
need to be in place always to allow different motivators to be
established at varying moments (Inkinen 230). In other words,
the level of motivation will depend on the personal goals of
employees and the issues or factors that boost their morale.
Question 4
A reward system for performance management can occur in two
forms, either through monetary or non-monetary benefits. It
plays an instrumental role in performance management since
most workers of an organization require reassurance that there
hard work and dedication will be valued. In other words, they
need proof that there effort and performance plays a vital role to
meeting their personal objectives and those of the organization.
Notably, it is crucial in maintaining the motivation and morale
of an employee (Chen and Jing-Wen Huang 103). The second

purpose of a reward system is to help in the retention and
recruitment of talent in the company. Provision of incentives
and rewards in exchange of great talent encourages new
employees especially those that possess unique talent (White
12). It is also instrumental in helping an organization hold onto
their best employees, develop and grow with them hence
benefiting the organization in the long run.
Question 5
One of the components of the reward system is the financial
package. It focuses on fringe benefits along with the basic pay.
Other benefits that are associated with this package include
private health care, car allowance, and performance related
bonuses. It forms a vital element of the reward system since it
is one of the direct motivators of most employees (Inkinen 230).
The second component is the individual growth. Any
organization that invests in their workers in terms of their
development, coaching, training and offering them career
enhancement opportunities boosts their morale. Another
component of the reward system is a conducive working
environment. Proper management and leadership is crucial
(Ferner and Phil 241). Employees need to comprehend what is
needed and expected of them. In this case, they need to have
support to meet their obligations and comprehend that they have
confidence and support from the company management. For this
reason, a pleasant and safe environment to work in is crucial so
that they feel that the organization values them and puts their
needs before anything
Question 6
When managing good and poor performance in any
organization, it is imperative to note that there are a number of
factors that need to be considered. First, is counselling/support.
The organization needs to take into account any support or

counselling services that are already existing and confirm
whether they are enough to cater for the needs of its employees.
Having guidance and support from both the management and
team members is vital (Perkins, Geoffrey, and Sarah 23).
Providing access to counselling for issues that may not be
related to work could also have a positive implication on the
performance of employees.
Second, is checking communication issues at work. The
company has the responsibility of ensuring that every employee
in the organization understands what the company expects them
to do and that their objectives and aims have been outlined
clearly. Moreover, the company must also confirm that the
employees agree with the manner in which their roles need to be
achieved. Furthermore, the company also has an obligation of
ensuring that all the workers of the organization can access
information with ease (Chen and Jing-Wen Huang 104).
Third, is offering rewards and incentives. They are necessary to
act as a sign that the organization recognizes and values the
efforts of its employees. In doing so, the employees leverage
their performances hence bringing positive returns to the
company. These factors also encourage employee loyalty since
they feel valued.
Question 7
One of the items of data that can be instrumental in performance
management is ACAS. ACAS offers free guidance and control
on the current information regarding some of the relevant
practices of employees especially whenever an organization
requires guidance. By consulting ACAS, the company can be
sure that it is accessing the best and reliable information that
can help it meet its objectives and goals (Perkins et al. 23). The

second source of data is the company’s disciplinary procedure.
It can be consulted to help the company establish the process
and steps that need to be considered to help in managing the
poor performance of an employee so as to realise the desired
objective.
Question 8
In most organizations, performance review is conducted
together with employees. It assists in giving feedback to
employees on some of the areas they performed exemplarily and
those that they need to improve and develop in their roles.
Moreover, it also offers a chance for the line manager to
motivate and congratulate those workers that are performing
well and discuss with them any areas of concern to identify and
pinpoint any factors behind their results. It also offers the
company a chance to ask the employees any training and
coaching needs they may require. Also, employees can relay
their feedback and opinion on the guidance and support the
company has accorded them.
The first step of performance review is to notify the staff of the
time and date when their assessment will be done since it will
help them make preparations for this activity. Second, in the
course of the review, it is important for the manager to explore
and point out some of the strengths and weaknesses of the
employees. Third, Immediately after this stage, it is advisable to
explore some of the objectives that were set for both the
company and the employee and the way they were achieved or
botched (Perkins et al. 23). Fourth, it is crucial to discuss any
development or training needs based on the results of the
employee. All the discussions will therefore be required to be
signed and filled on the performance review form. Training and
development plan along with the objectives for the following
year will need also to be discussed and agreed upon. In doing

so, this will ensure that the employees comprehend what is
required of them.
Conclusion
Performance management is an important element in business
operations since it helps the company in identifying areas of
weakness and the way the company can improve on its current
situation. Because of an increase in competition, there is a
growing demand for performance management. It helps the
company to maintain effectiveness and efficiency and function
within the company objectives and goals. Therefore, different
components such as training and development criteria, and
reward system can help to gauge the performance of employees
as well as improve their morale and motivation. A motivated
employee brings positive returns to the organization.
Works Cited
Chen, Chung-Jen, and Jing-Wen Huang. "Strategic human
resource practices and innovation
performance—The mediating role of knowledge management
capacity." Journal of
business research, vol. 62, no.1, 2009, pp. 104-114.
Ferner, Anthony, and Phil Almond. "Performance and reward
practices in foreign
multinationals in the UK." Human Resource Management
Journal, vol. 23, no. 3,
2013, pp. 241-261.
Inkinen, Henri. "Review of empirical research on knowledge
management practices and firm
performance." Journal of knowledge management, vol. 20, no.
2, 2016, pp. 230-257.

Perkins, Stephen J., Geoffrey White, and Sarah Jones. Reward
management: Alternatives,
consequences and contexts. Kogan Page Publishers, 2016.
White, Geoff. Reward management. Edward Elgar Publishing
Limited, 2016.
DocumentationDay Care WondersIncome Statement
Solution
AuthorStudent NameDate CreatedPurposeThis spreadsheet
provides What-If analysis based on the Income Statement of
Jane Morales. This What-If analysis will help Ms. Morales
determine whether it is viable for her to start this
business. ContentsIncome Statement with One and Two
Variable Data TablesScenario SummaryRecommendationThis is
a recommendation as to Ms. Morales ability to make ??? profit
from her Day Care Center.
Income StatementDay Care WondersIncome
StatementTeacher:Student Ratio RequiredStudentsTeachers

Microsoft Excel 20072010 What-If Analysis © Martin Green

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