The Astro Malaysia Holdings Berhad Business Essay

Astro Malaysia Holdings Berhad is a respected integrated consumer advertising entertainment group in Malaysia and Southeast Asia with operations in 4 key regions of business, namely Pay-TV, Radio, Publications and Digital Advertising. Astro Holdings Sdn Bhd is a company contained in Malaysia with its principal place of business at the Supervision Building of the All Asia Broadcast Centre, located in Technology Recreation area Malaysia.

The company is dedicated and involved in content creation, aggregation and distribution activities, including the provision of direct-to-home membership television set, radio broadcasting services, library licensing, multimedia system interactive service, newspaper posting, Malaysian film production, expertise management, creation of computer animation, interactive content and tv content distribution. It is Malaysia's major pay television specialist.

With a customer basic of 3. 1 mil residential customers or 50% penetration of Malaysian Tv set homes, Astro offers 156 Television channels, including 68 Astro-created and top quality channels and 22 HD channels, delivered via Direct-To-Home satellite television, IPTV and OTT platforms. Astro provides HD, 3D, PVR, VOD and IPTV services through Astro B. yond and Astro On-The-Go. Rewarding its promise to bridge the digital divide for all of Malaysia, Astro presented Njoi as an entry-level DTH satellite television service which is the country's first non-subscription based satellite television, offering 18 Television and 20 radio channels.

Astro launched the first High Definition (HD) broadcast in Malaysia in December 2009 under the brand Astro B. yond. Following a introduction of HD, Astro B. yond PVR (Personal Video tutorial Recorder) was created in June 2010 and Astro B. yond IPTV (Internet Protocol Television) in April 2011.

On December 2011, the Best Minister declared that authorities will collaborate with Astro to provide free satellite tv set to customers. NJOI were launched on 18 February 2012. The People's Choice, Astro was awarded the "Make of the entire year" honor at Malaysia's Putra Brand Awards 2012. The honor is recognition of Astro's attempts to exemplify innovation, quality and strong commercial social duties.

3. 2 Review the human learning resource techniques related to your subject matter by talking about and speaking about the implementation, the activities involved, benefits and drawbacks of the tactics.

One of the reimbursement strategies employed by Astro is giving out stock option to employees. Employee stock option plan is a companywide incentives plan whereby the company contributes shares of its stock or cash to be used to purchase such stock to a trust established to purchase shares of the firm's stock for employees. The organization generally makes these contributions annually compared to total employee payment, with a limit of 15% of compensation. The trust holds the stock in individual staff accounts, and distributes it to employees after retirement, assuming the person spent some time working long enough to earn possession of the stock. Many companies use employee stock options designs to sustain and appeal to employees, the target being to give employees a motivation to behave with techniques that will boost the company's stock price.

By issuing worker stock options as payment, organizations can protect and generate cash flow. The cash move comes when the organizations issues new shares and receives the exercise price and will get a tax deduction equal to the reasonable market value of the shares that are copy to the trustee, and can also declare an duty deduction for dividends paid on ESO-owned stock. Employees aren't taxed until they get a distribution from the trust, usually at retirement living when their rate is lower. The Employee Retirement living Income Security Act (ERISA) allows a company to borrow on employee stock presented in trust and then repay the loan in pretax rather than after-tax us dollars, another tax incentive for using such plans.

Employees will have a motivation to work hard for the company as they end up being the owner of the show, so there is a good opportunity for the employee to have more responsibility and regarding performance they set up more work to obtain the upper hand. They'll want to place the goals of the business ahead of their own and will be prepared to work harder to make their commodity are more valuable. This sets employees within an ownership position, and they'll treat the business enterprise as if it were their own. This can also help the shareholders of directly held organization to diversify their assets by placing a few of the business's stock into the ESO trust and purchasing other marketable securities for themselves in their place.

Many companies discover that offering stock options to employees boosts morale. When employees receive a show of ownership in the business, they will enjoy arriving to work. They know that their attempts will directly impact their finances and will be more eager to interact. Instead of taking a look at the situation as the employees resistant to the employer, they will go through the situation as though everyone were working towards a common goal.

There are some drawbacks which may face by the business when using the employee stock options as a compensation strategy, such as insufficient diversification. An employee stock option often leads employees to count too heavily to them because of their financial success. A wise approach to making an investment would entail diversifying your available resources over several different types of ventures. Many employees who've access to stock options will put everything they have got into them. This puts a whole lot of pressure on the company to succeed. When employees are relying on the company for his or her pension, it changes the obligations for everyone.

Another disadvantage of offering the staff stock option is the fact employees may loss of focus. In some instances, when company offers stock options to employees prior to the company goes general public, they could potentially lose concentrate on the job at hand. Sometimes, the price tag on a company's stock rises significantly during an IPO. When this happens, the employees which have the stock options might be more concerned with the worthiness of the stock options than focusing on their job. This could possibly lead to lost revenue soon after the IPO is completed.

Moreover, the management motivates the employees to adopt high risk. So far as employees are concerned stock option in form of reimbursement can be an undue risk. In case of unstable company, if many employees make an effort to exercise the choice to get revenue in the market then there is a potential for collapse in the whole equity structure of any company. When company issues also new stocks to the other buyers, there is absolutely no opportunity for the other traders to obtain the upper hand as it increases the outstanding stocks. In such case the company must either repurchase stock or increase its income which may assist in forestalling the dilution of value.

Another compensation strategy that practices by Astro is performance-based repayment. Astro's meritocracy system allows merit rises, performance bonuses and advertising opportunities to be honored to high performers. Performance-related pay or pay for performance is money paid to someone associated with how well one works. Performance founded payment (PBP) has been thought as the 'transfer of money or materials goods conditional upon taking a measurable action or obtaining a predetermined performance focus on' (Eichler 2006).

With performance-based repayment, the contract was created in a way that the targets of both principal and agent are totally aligned. Just like textile factory personnel may get paid per little bit of clothing that they sew, health care personnel or organizations should get paid for desirable benefits such as per child immunized or procedure performed successfully. It ought to be noted that the whole notion of PBP rests on the fact that the agents are motivated by financial gain and will seek ways to maximize income. The explanation for using PBP in health care is based on the visible success of such payment schemes in the business or private sector.

This standards-based system is used for evaluating employees and placing salaries by many employers. Standards-based methods have been in concerning truth use for years and years among commission-based sales staff: they are simply paid more for retailing more, and low performers do not earn enough to make keeping the work worthwhile even if they manage to keep carefully the job. Furthermore to motivating the rewarded behavior, standards-based methods can offer a level of standardization in employee evaluations, which can reduce worries of favoritism and make the employer's expectations clear. For example, an employer might set the very least standard of 12, 000 keystrokes per hour in a simple data-entry job, and reassign or replace employees who cannot perform at that level.

One of the key great things about performance-based pay is can motivates employees to put more effort to attain high performance. In addition they feel a sense of accomplishment in that the amount they can be being paid is a primary reflection of how hard they been employed by and their skill. There often isn't a cap on the quantity of income employees can earn, so their income is not tied to the total amount an workplace is eager to pay them. Enacting this type of program suggests to employees that the company cares and would like to prize good habit.

Besides, many performance based mostly employees have a great deal of freedom in their day-to-day work. There typically is not really a rigid agenda or constant guidance. Employees not behind a workplace or in a cube all day long, they are interacting with potential clients, sometimes in their homes or on a sales floor. If employees need to plan their day around a doctor's appointment or a child's sports game, you're typically free to do that.

As a pay-for-performance initiative is directly linked to the output of employees, it is almost always cost-efficient. The greater the staff produce, the more money the business makes. Therefore the company management can rest assured that whenever they purchase employees it straight benefits the firm. A pay-for-performance program can also help the business identify which employees can handle the best performance when given incentives.

One of the disadvantages of performance-based pay is the financial instability. Employees don't know from every month how much they are going to make and there typically isn't sick or getaway pay. Having some savings set aside really helps to alleviate a few of that tension, however, not knowing whether they are going to be paid, or how much, can create anxiety.

Another disadvantage of starting a pay-for-performance program is that it's difficult to improve or end the program in the future. If employees learn to get accustomed to the program and enjoy the benefits, it can negatively impact morale if they start making changes. Additionally it is hard to get the terms of an incentive pay program perfectly. Employees have to look for the amount of pay that will produce the utmost output from employees. Addressing that level may necessitate many trial goes.

3. 3 Critique and provide insight on the effect of the picked topic on the potency of the business.

Theories of compensation generally presume that higher performance requires better effort or that it's in some other way associated with disutility for workers. In order to provide incentives, these theories predict the living of compensation systems that structure payment so that a worker's expected electricity increases with noticed productivity. The actual benefits associated with tying pay to performance are clear, and it is surprising to experts that companies apparently resist producing bonus-based compensation programs with enough financial "action" to truly have a major motivational result. One reason for having less pay-for-performance ideas, offered mostly by psychologists and behaviorists, is the fact that monetary rewards are counter-productive. The costs of dealing with lots of the problems induced by merit systems simply outweigh the limited organizational benefits they offer.

Aggressive pay-for-performance systems in the end involve distinguishing employees based on their performance, and there is a huge behavioral books arguing that treating employees in a different way from one another is detrimental to employee morale. Large monetary incentives create unintended and sometimes counterproductive results because it is difficult to properly specify exactly what people should do and therefore how their performance should be measured. Moreover, merit-pay systems encourage employees to spend work lobbying about both specification and software of the machine to assess and evaluate end result. Compensations are also linked with job levels in the firm rather than to individuals; most of the average rises in an employee's settlement can be traced to campaigns rather than to continuing service in a particular position.

The incentives made by advertising opportunities, for example, rely upon the probability of promotion which depends on the identity and expected horizon of the incumbent superior. Campaign bonuses are reduced for employees who've been approved up for campaign recently and whose future promotion potential is doubtful, and bonuses will be absent for employees who evidently flunk of the advertising standard or who cannot conceivably gain a promotion. Another important problem with promotion-based reward systems is that they require organizational development to supply the reward system. This means such systems can work well in speedily growing organizations, but will probably create problems in gradually growing or shrinking companies.

Bonus-based incentives, transitory in the sense that this year's bonus depends on this year's performance, don't have the problems associated with promotion-based incentives. Bonus techniques can, in primary, provide incentives for any individuals in the business, regardless of their capability, position, and advertising opportunities. Bonus-based bonuses will be more important at higher levels in the business since the possibility of future promotion is leaner; the CEO is not promotable and therefore his or her financial incentives must result from bonuses. Promotion-based schemes will be utilized more in large organizations numerous hierarchical levels than in smaller organizations with fewer levels.

Other kinds of payment systems include Income Sharing, Gain Sharing. Under profit-sharing, payouts are based on organization-wide profits. The program has two potential advantages. First, it could provide an incentive for employees to act in the best interests of the organization, rather than pursuing narrower goals. Second, by making a portion of settlement vary with firm profits, a business can align its labor costs more directly with its potential to pay. Thus, during business downturns, it has fewer set labor costs.

In comparison to the normal profit-sharing plan, gain posting payouts are typically associated with group or seed somewhat than organization-wide performance, based on productivity rather than income, and distributed more often and not deferred. Taken collectively, these differences suggest a greater motivational impact for gain sharing just because a payout criterion like group or flower productivity may very well be viewed as more controllable by employees than something similar to organization-wide profits.

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