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HRM Assignment: Employee Motivation within Premadasas


Task: Develop a HRM assignment presenting the compensation, motivation and benefit plan for employees within the Premadasas.


The concept of employee motivation considered herein HRM assignment is the necessary requirement for any business organization. In the case of Premadasas, there is a high need for employee motivation that comes with proper HR management. Present report focuses on the development of compensation, motivation and benefit plan for employees within the Premadasas.

Plan about the offers going to be given
In order to motivate employees, the organization needs to provide a certain form of benefit to their employees. They need to focus on providing health insurance and life insurance facilities specially in this COVID 19 pandemic situation. According to Spisakova (2019), employment benefits help employees not only to raise their interest but also helps in increasing their engagement with business. Premadasas should provide educational loan and retirement benefits, so that employees can feel secure working with the Premadasas. The organization can provide Paid time off (PTO), vacation days and seek days opportunity to people so that they can find interest and motivation working with Premadasas. Providing opportunities like loan and long-term disability insurance would also help employees within the Premadasas to get high end motivation after all. In this pandemic period, the organization can offer benefits like pandemic recovery, financial and health support.

Reason behind the offers
All the benefits apart from the company already may require some form of budget. As opined by Stoyanova&Iliev (2017), employees' benefits are strongly associated with their engagement process within business. If the organization is able to provide all the necessary benefits mentioned, then employees within the Premadasas would feel appreciated and focus on the work process more concisely. It has been identified that Premadasas provide great cultural value to its employees in order to drive success (, 2021). It will help Premadasas not only to increase their productivity but also help them to achieve high end satisfaction from customers. Interesting benefit program will make employees within the Premadasa's feel valued. The basic two reason of offering the benefits are as follows:

  • COVID 19 health care opportunity will be effective for securing the health of employees under the policies of National Institute for Occupational Safety and Health
  • Interest free loan provided to employees in order to achieve sustainability and secure future generation

Cost budget planning

Benefit that can be provided 

Budget needs to be followed 

Long term interest free loan facilities for employees 

Up to 2 LKR loan can be provided to employees depending upon the type of needs and loan requirements 

Special health care opportunity in the covid 19 pandemic situation 

Up to 1 LKR financial benefit can be offered depending upon the heath condition and situation affected by pandemic crisis 

Educational loan for children of employees and its repayment facilities 

Near about 1 LKR for per employee per year if they need loan for their children's education 

Table 1: Budget plan for benefits need to be provided to employees
(Source: Possessed by author)

Overall cost allocated to provide benefits to employees is well justified. This is because overall per capita income of employees in Sri Lanka is USD 3,852 (, 2019). In this regard allocation of up to 2 LKR loans to employees can be effective. In addition to this, upto 1 LKR financial benefit is also justified because health care expenses in Srilanka is 3.76% of countries GDP. 1 LKR per employee per year loan for the education of children of employees is well justified enough. In this regard it can be said that salary will be deducted from employees' yearly income after the pandemic is recovered.

Impact of offer on employee’s motivation
When they are well appreciated then they will work more prominent and manage the quality of jewellery manufacturing after all. As mentioned by Jaworski et al. (2018), employees' benefit and work motivation are beneficial for achievement of organizational innovation. As most of the students in Sri Lanka are getting admitted to UK universities. They are taking on from banks. It creates pressure upon students to manage the loan after they completed their graduation. In this regard loan repayment not only helps to increase employees' motivation and dedication towards Premadasas. Employees can get support for educating their children and manage the loan pressure. COVID 19 has affected the operation process of Premadasas to some extent by creating labour availability (, 2021). In this situation, offers going to be provided will help employees to feel valued by the organization and help them to dedicatedly engage with the operation process of Premadasas and improve their motivation level.

Employee recognition plan
Primary reason for the sustainability of Premadasas is the production of 6000 seaweeds per annum. In order to hold such production, employees need high motivation in terms of recognition. There are some ways by which the organization can provide recognition to their staffs are as follows:

  • Recruitment and engagement of intern for the operation process of business freshly graduated from, Sri Lankan university
  • Recognizing employees by taking them in dinner party can be another level of activities to recognize employees within Premadasas
  • Yearly recognition of employees by providing them suitable promotion and designation improvement
  • Incorporation of fun and gaming activities for younger employees to make them endangered with the production process

Compensation plan
As seaweeds cultivator plays the most effective role within the Premadasas, then compensation plan for them are as follows:


Earned commission 


Effort given by individual people 

Per year basis 



SLR 50000000 or above 

  • 80.5% to 16.5% commission split 
  • 0.08 cart weight 5 carat diamond stone
  • Opportunity for family tour in Japan 

Legendary level

SLR 10000000 or above 

  • 78% to 15% commission split 
  • Opportunity for family tour in Maldives with full paid option 
  • 0.08 cart weight 2 carat diamond stone

Master level 

SLR 300000 or above 

  • Opportunity for family tour in Colombo
  • Shopping voucher of SLR 10000 

Table 2: Compensation along with pay range plan
(Source: Possessed by author)

As the above plan is not justified for the cultivation of seaweeds, then an alternative and more practical plan can be developed. Appreciation and performance activities can be arranged for the incentives criteria for the cultivation of seaweeds. A well-prepared compensation structure of seaweed cultivation employee and SBU are as follows:

Position of employees 

Per annum earning as per SLR

Field employees




SBU manager


Store manager 




Quarter time 

Increase in compensation 









Table 3: Compensation plan
(Source: Possessed by author)

Extrinsic and intrinsic rewards
The organization can provide both intrinsic and extrinsic rewards to their staffs, these are as follows:

Intrinsic reward

  • Offering paid holiday trip for employees so that they can enjoy some leave time personally
  • Offering student loan opportunity to employees for their children's education Extrinsic reward
  • Providing opportunity to take part in organizational decision-making process and contribute their opinion
  • Offering opportunity to access relaxation room for employees

Incentive payment plan
Yes, it can be said that incentive facilities must be provided to employees in order to engage them with the work process. According to Ogbonnaya, Daniels & Nielsen (2017), incentive payment is the best way to make employees motivated and satisfied. Following are the ways by which a business organization can provide incentive payment to its employees.

  • In the peak operation seasonal employees will be given 50% additional salary in monthly basis if they work extra 2 hours
  • Employees in the seaweed cultivation department will be given extra incentive for their dedication. These facilities will be beneficial for improvement of interest of staffs towards Premadasas

The organization has always managed a suitable relationship with their employees. So even in a pandemic situation if they provide some facilities, it will be beneficial to create loyalty. Hence,

  • Necessary and additional medical and health care benefit will be given in the pandemic crisis situation
  • It will be provided on emergency basis irrespective of performance of employees Additional incentives can also be given to the SBU managers to carry out more return to the company.
  • Incentive should be provided based on the performance level of each manager
  • After the categorization of employees in the designation, incentive will be provided

From the overall discussion it can be concluded that employee benefit and compensation are effectiveenough to increase the motivation level of employeeswithinPremadasas Holding. Incentivefacilities not only help employees to raisetheirinterest but also help them to be stronglyassociatedwith the operation process of Premadasas.

Reference list
Jaworski, C., Ravichandran, S., Karpinski, A. C., & Singh, S. (2018). The effects of training satisfaction, employee benefits, and incentives on part-time employees’ commitment. International Journal of Hospitality Management, 74, 1-12.Retrieved from:

Ogbonnaya, C., Daniels, K., & Nielsen, K. (2017). How incentive pay affects employee engagement, satisfaction, and trust. Harvard Business Review.Retrieved from: and_Trust/links/5b106a69a6fdcc4611d9779b/How-Incentive-Pay-Affects- Employee-Engagement-Satisfaction-and-Trust.pdf, 2021. About us. Retrieved from: [Retrieved on 23rd June 2021]

Spisakova, E. D. (2019). Position of employee benefits in remuneration structure. Transformations in Business & Economics, 18(2), 47.Retrieved from: 5d108808299bf1547c795b64/Position-of-Employee-Benefits-in-Remuneration-Structure.pdf

Stoyanova, T., &Iliev, I. (2017). Employee engagement factor for organizational excellence. International Journal of Business and Economic Sciences Applied Research (IJBESAR), 10(1), 23-29.Retrieved from:, 2021. The World Bank In Sri Lanka. Retrieved from: [Retrieved on 23rd June 2021]


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