Improving performance increasing quality delighting

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improving performance increasing quality delighting customers and stockholders controlling labour costs Option e is therefore incorrect.
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4 MNH306K/201 4 Internal alignment involves _______________________. 1 being fair when making compensation decisions 2 comparing different jobs in a single organisation 3 comparing similar jobs in a single organisation 4 comparing similar jobs between different organisations 5 comparing different jobs between different organisations The correct answer is 2. See “Compensation strategy: internal alignment” in the prescribed book. Internal alignment refers to the pay relationships between different jobs/skills/competencies in a single organisation. Options 1, 3, 4 and 5 are therefore incorrect. 5 Which of the following steps establish external competitiveness? (a) Conduct pay surveys. (b) Generate a pay structure. (c) Ensure internal alignment. (d) Make pay policy decisions. (e) Define relevant labour markets. The correct alternative is 1 a, b, c 2 c, d, e 3 a, b, c, d 4 b, c, d, e 5 a, b, d, e The correct answer is 5. See Exhibit 8.1 in the prescribed book (9 th edition) “External competitiveness: pay relationships among organisations”. Specify the policy Select the market Design the survey Draw policy lines Merge internal and external pressures Set competitive pay levels, mix and structures Hence option c is incorrect.
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5 MNH306K/201 Read the following and then answer questions 6 to 10 Incentives and top performers Companies that recognise and reward top performers are financially more successful than companies who do not. Focusing on the reward of top performers can be a means of achieving desired business results. The question is: How can top performers be recognised and rewarded for their contribution to organisational success? The answer seems to be incentive pay policies. Incentive pay is discretionary and can be more quickly and easily adjusted to organisational needs. It has a greater influence on employee behaviour than do base salary and benefits and can be used to differentiate the compensation system. Incentive programmes are a universally accepted, standard form of recognition. What kind of rewards do top performers prefer? Their choices include a mix of short-term, immediate rewards, long-term rewards, non- monetary and intrinsic rewards. They also prefer that their compensation should be tailored to reflect their individual contribution. Interestingly, research has shown that when compensation is tailored to the preferences of top performers, this does not adversely affect the compensation for other employees. Managing compensation systems that are tailor made may be more difficult and time consuming. 6 If your organisation decided to implement incentive pay, what would be the requirements for this policy to differentiate your company’s compensation system from that of its competitors?
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