Rio Tinto Executive Summary

Rio Tinto is a global leader of mining and metals, focused on the discovery and processing of Earth’s mineral resources (Rio Tinto 2014). Operating for 140 years, Rio Tinto boasts a large human capital, employing over 66,000 people across 40 countries and six continents (Rio Tinto 2014). Values of ‘accountability, respect, teamwork and integrity’ (Rio Tinto 2014) guide the company to its mission of producing a successful long-term financial performance for all stakeholders. To translate Rio Tinto’s mission into action, the company has adopted a multi-perspective SPMS using a Balanced Scorecard (BSC) method (Elijido-Ten & Tjan 2011). As a performance measurement system, the BSC method is discussed as producing a positive correlation between …show more content…
Rio Tinto’s motivational reward system fits the requirements of the expectancy theory, with profitable outcomes successfully driving and motivating employee behaviour (Langfield et al. 2012). Rio Tinto (2012b) states that there is a clear link between strategies, performance and motivational reward outcomes for executives, with a stronger focus on the executive directors. Bonuses and remuneration payments are rewarded through short term and long-term incentive plans, which include financial and non-financial measurements (Rio Tinto 2012b). Most individual senior executives objectives are detailed, and some are linked to sustainability performance (Rio Tinto 2012b). Key objectives highlighted by Rio Tinto (2012b) are; the improvement of employee engagement though agreed action delivery, the delivery of new and improved technologies to product groups at a commercial scale, the continued reduction of the company’s carbon footprint and engaged support of strategic projects and investment opportunities. These deliverables successfully guide and motivate productivity and aid in achieving the company’s objectives and long-term