19 the purpose of compensation objectives is to 1

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19 The purpose of compensation objectives is to _____________________. 1 provide pay-for-performance systems 2 allow for annual across-the-board increases 3 guide the design of the compensation system 4 ensure that employees are paid more than competitors offer 5 allow for an increase in salaries when employees’ skills levels increase The correct answer is 3. See “A pay model” and “Objectives” in the prescribed book. Objectives guide the design of a pay system and serve as standards for judging the success of the pay system. Hence options 1, 2, 4 and 5 are incorrect.
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10 MNH306K/201 20 When formulating a total compensation strategy, the following must be investigated: (a) what employees prefer (b) the nature of the relationship with unions (c) how the strategy fits in with other HR systems (d) the culture and values that guide employer behaviour (e) the culture and values that guide employee behaviour The correct alternative is 1 a, b, c 2 a, b, d 3 a, b, c, d 4 a, b, d, e 5 a, b, c, d, e The correct answer is 2. See “ Developing a total compensation strategy: four steps ” and exhibit 2.5 in the prescribed book. According to step 1, the total compensation implications of the following must be investigated (assessed): competitive dynamics the organisation’s culture and values social and political context employee and trade union needs other HR systems A compensation system mirrors the values that guide an employee’s behaviour and underpin the treatment of employees. Option e is thus incorrect. 3 CONCLUDING REMARKS I trust that you have found these explanations helpful. You are welcome to contact me if you experience any problems with your studies. Wishing you every success with your studies! Kind regards Mrs J Botha Lecturer for MNH306K DEPARTMENT OF HUMAN RESOURCE MANAGEMENT Unisa
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