{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Attracting and retaining employees 3 the

Info icon This preview shows pages 7–9. Sign up to view the full content.

View Full Document Right Arrow Icon
attracting and retaining employees 3 The effectiveness of a reward system depends on three factors: (a) efficiency (b) fairness (c) legal compliance (d) strategy (e) standards The correct alternative is 1 a, b and c 2 a, b and d 3 b, c and d 4 b, c and e 5 a, c and e The correct alternative is option 1. Refer to “Designing a pay-for-performance plan” in the prescribed book. As the pay model suggests, the effectiveness of pay-for-performance plans depends on three things: efficiency, equity (fairness) and legal compliance. 4 Which form of pay has the greatest motivational value for performance? 1 flexible benefits 2 employee stock ownership plans 3 gain sharing 4 merit increases 5 profit sharing The correct alternative is option 5. See the study guide, study unit 10: self-evaluation question 5.
Image of page 7

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
8 MNH306-K/201 5 The following incentive plans have better potential for delivering high productivity: 1 lump sum bonuses based on company performance 2 commission plans 3 profit sharing plans 4 gain sharing plans 5 employee stock ownership plans The correct alternative is option 3. Refer to “Does compensation motivate behaviour?” in the prescribed book. A review of 26 studies indicates that organisations with profit sharing plans had a 3.5 to 5 % annual performance. A further study of 200 companies indicates that profit sharing leads to a 1.5% increase in return on assets for every 10% increase in the bonus. The variable portion of the pay has a stronger impact on individual and corporate performance than the level of base pay. 6 The following are examples of cash benefits: (a) car allowance (b) travel abroad (c) housing loan (d) pension (e) group life cover The correct alternative is 1 a 2 b 3 a and b 4 c and c 5 c, d and e The correct alternative is option 1. See the study guide, section 10.2 in study unit 10. Cash benefits include bonuses, allowances, a housing subsidy (not a housing loan!) and a lump-sum award. Non-cash benefits include current benefits such as a company car, travel abroad, a housing loan, low-rental accommodation, educational assistance and medical insurance. Non-cash benefits can also be deferred, such as a pension plan, group life cover, accumulated leave and share/stock options. 7 In South Africa, organisations are legally required to provide the following benefits: (a) medical aid, pension fund and housing subsidy (b) vacation leave, sick leave and maternity leave (c) unemployment insurance and compensation for occupational injuries and diseases (d) medical aid, pension fund and vacation leave (e) maternity leave, medical aid and pension fund 1 a and d 2 b and c 3 a and c 4 b and d 5 a and b The correct alternative is option 2. Refer to the study guide, section 10.2 in study unit 10. In South Africa, organisations are legally required to provide the following employee benefits: unemployment insurance compensation for occupational injuries and diseases payment for time not worked (leave)
Image of page 8
9 MNH306-K/201 8 Mineworkers and domestic servants both do unskilled work, but mineworkers generally get higher salaries than domestic servants.
Image of page 9
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern