Options 1 3 and 4 are therefore incorrect 5 which of

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Options 1, 3 and 4 are therefore incorrect. 5 Which of the following statements describe the concept “incentives”? (a) pay increases are tied to cost of living (b) include pension fund, medical aid and leave (c) increasing salary on the basis of performance (d) do not increase the basic salary (base wage) (e) performance objectives are known ahead of time The correct alternative is: 1 a, c, and d 2 b, c, and d 3 c, d, and e 4 b, d, and e The correct answer is 4. See chapter 1, “Forms of pay” in the prescribed book, figure 1.1 in the study guide and the information in the paragraph. What kind of rewards do top performers prefer? Their choices include a mix of short-term, immediate, long-term, nonmonetary and intrinsic rewards. They also prefer their compensation to be tailored to reflect their individual contribution. Bonuses are short-term, immediate rewards. Stock options are long-term incentives. Reserved parking and job freedom are intrinsic rewards and vacation leave is a non-monetary reward. Options 1, 2 and 3 are therefore all correct.
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5 MNH306K/201 6 Any initiative involving a reward immediately draws the attention and, in most cases also the commitment of management. The reasons for this are as follows: (a) Management usually understands the detrimental effect a negative change in compensation can have on staff. (b) It enables management to take appropriate and fair compensation decisions. (c) Rewards equal money – vast sums of it. (d) It allows management to take speedy decisions. (e) Changes in compensation also have an effect on managers. They are therefore also interested in any changes. The correct alternative is: 1 a, b, and d 2 b, c, and e 3 c, d, and e 4 a, c, and e The correct answer is 4. See “What does a strategic compensation approach entail”, study unit 2, in the study guide. Options 1, 2 and 3 are therefore incorrect. 7 Internal alignment is _______________________. 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 The correct answer is 2. See chapter 3, “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 and 4 are therefore incorrect. 8 An important cornerstone of a compensation system is a compensation philosophy. The contributions of a compensation philosophy are to _________________________. (a) motivate employees (b) allow for speedy decision making by management (c) achieve employee commitment (d) serve as a departure point during negotiations (e) enable management to take appropriate and fair compensation decisions The correct alternative is: 1 b, d, and e 2 a, d, and e 3 b, c, and e 4 d, and e The correct answer is 1. See “What are the building blocks of a compensation system?” in the study guide (study unit 2). Options 2, 3 and 4 are therefore incorrect.
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