The cost cutters not only went after r d they also

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The cost cutters not only went after R & D, they also forbade managers to get involved in any community activities because these activities would take them away from their business duties. They banned membership of industry organisations that had allowed managers to network with competitors. They also scrapped a yearly event at which Scott Paper met with its leading suppliers to improve relationships and thus get better prices. As a result of these policies, several communities lost generous corporate citizens, especially in the Cape Town area. More than 1 000 of Scott Paper’s employees lost their jobs during Munroe’s brief tenure. Scott Paper’s earnings more than doubled during Munroe’s tenure as CEO, but critics claim that Munroe engineered these illusory gains to maximise his pay and that of his close colleagues. They argue that Munroe cut plenty of muscle along with the fat, pumping up short-term results at the expense of long-term healthy growth and destroying employees’ commitment to the firm. To bolster their claim, Munroe’s critics point out that Scott Paper actually lost market share in the three major product markets (paper towels, bathroom tissue and facial tissue) during Munroe’s tenure. QUESTIONS 1 Does Scott Paper’s pay-for-performance plan support its corporate objectives of increasing profits and competitiveness in an increasingly competitive market? Substantiate your discussion with examples from the case study. (6) 2 Explain the steps Scott Paper must follow to ensure that the pay mix for executive managers is internally aligned . (19) 3 Briefly explain the organisational factors that may influence Scott Paper’s decisions about pay level and pay mix. (12) 4 Describe the concept “pay policy” and discuss the different pay policy alternatives that are available to Scott Paper. (13) Total [50]
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26 Assesment criteria You must do the following to complete this assignment successfully: carefully study the relevant study unit identify the step you should discuss in the design of a pay-for-performance plan comprehensively discuss the relevant step provide a logical answer that indicates whether the pay-for-performance plan supports the goal of increasing profits use the discussion and information in the case study as basis for your answer comprehensively define internal alignment define job analysis, job description and job evaluation logically discuss how a job structure is formulated identify and discuss the organisational factors that may influence the decision on pay level and pay mix provide a comprehensive definition of the concept “pay policy” comprehensively discuss the pay policy alternatives organisations can use ASSIGNMENT 02 (SECOND SEMESTER) This assignment is based on study units 2, 7 and 8.
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