Benefits to her and advise her by indicating the

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benefits to her and advise her by indicating the advantages and disadvantages for both employers and employees. (30) Total [50] Assessmen criteria You must do the following to complete this assignment successfully: carefully study the relevant study units identify and briefly describe the advantages and disadvantages of individualised incentive plans use the information in the case study to advise Katie the advice must be logical, taking into account the information in the case study and the theoretical discussion comprehensively explain the concept “flexible benefits”
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30 discuss the advantages and disadvantages of flexible benefits for both employers and employees use the information to advise Katie about the implementation of flexible benefits the advise must be logical, based on the theoretical discussion and the information in the case study
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MNH306-K/101 31 APPENDIX C- GUIDELINES FOR ANSWERING ASSIGNMENTS 03 & 04 ASSIGNMENT 03 3.1 A compensation system must not only contain labour costs, but should also aim at achieving other goals. Identify and briefly discuss these goals. (10) Use study unit 1 as the starting point for answering this question. According to the compensation model, a company’s compensation system should aim at achieving the following goals: Effectiveness by: Improving performance Improving quality Delighting customers and shareholders Controlling labour costs Fairness (justice) Fair treatment of all employees by acknowledging both employee contributions and employee needs Procedural fairness (justice) – a fair process for making compensation decisions Legal compliance Complying with legal requirements and rules 3.2 Which of these goals are not addressed by the negotiated compensation strategy? Substantiate your answer. (5) This answer requires careful thinking. Based on the information available in the case study, only one goal is achieved: That of controlling labour costs. We are unsure about the following goals, namely fairness (justice), quality, satisfaction of customers and legal compliance. The case study does not provide sufficient information for us to discuss legal compliance, improving quality or customer satisfaction because. (We can, however, assume that shareholders will be satisfied, because the new compensation structure will lead to an increase in profits.) It is clear stated in the case study that employees are dissatisfied with the new structure and thus the goal of fairness has not been achieved. Fairness consists of two components – fair treatment and the perceived fairness of the process that is used to make compensation decisions. 3.3 Explain how the policies and techniques in the pay model can assist the company in the case study to achieve all the goals of a compensation system.
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