A pay structure that supports the organisational

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a pay structure that supports the organisational structure, supports work flow and is fair to employees The correct alternative is option 1. Refer to “Compensation strategy: Internal alignment” in the prescribed book. Internal alignment, often called internal equity, refers to the pay relationships among different jobs/skills/competencies within a single organisation. 5 A pay structure refers to the following: 1 the array of pay rates for similar work or skills among different organisations 2 the pay relationships among different jobs, skills or competencies among different organisations 3 the array of pay rates for different work or skills within a single organisation 4 the pay relationships in an organisation that are fair to the employees 5 the pay relationships in an organisation that motivate employee behaviour The correct alternative is option 3. See “Compensation strategy: Internal alignment” in the prescribed book. Pay structure refers to the array of pay rates for different work or skills within a single organisation. The number of levels, the differences in pay (pay differentials) between the levels, and the criteria used to determine those differences describe the structure.
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5 MNH306-K/201 6 The two critical uses of job analysis in compensation are the following: 1 to identify the type of job analysis data that is needed and to provide managers with a work-related rationale for pay differences 2 to collect information about specific tasks and work behaviours and to provide managers with a work-related rationale for pay differences 3 to collect information about specific tasks and work behaviours and to establish similarities and differences in the work contents of the jobs 4 to collect information about specific tasks and work behaviours and to establish an internally fair and aligned job structure 5 to establish similarities and differences in the work contents of the jobs and to establish an internally fair and aligned job structure The correct alternative is option 5. Refer to “Job-based approach: Most common” in the prescribed book. In compensation, job analysis has two critical uses: It establishes similarities and differences in the work contents of the jobs. It helps establish an internally fair and aligned job structure. 7 The following sources of fairness are important in compensation: (a) procedural justice/fairness (b) perceived justice (c) judgement fairness (d) substantive fairness The correct alternative is 1 a and c 2 b and c 3 a and b 4 a and d 5 b and d There is an error in this question and there is no correct alternative. You were all given credit for this question. See “Compensation strategy: Internal alignment” in the prescribed book. Two sources of fairness are important: the procedures for determining the pay structure (procedural fairness) the results of these procedures – they pay structure itself – called distributive justice 8 An internal pay structure may be defined by the following: (a) the number of levels of work (b)
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