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Substantiate your answer by discussing the advantages

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Substantiate your answer by discussing the advantages and disadvantages of broad banding. (12) Use study unit 7 as a point of departure for answering this question. To focus your mind, give a brief definition or description of the term “broad banding”. Then discuss the advantages and disadvantages. You should give a yes or no answer only AFTER you have discussed the disadvantages and then substantiate your “yes” or “no” answer. QUESTION 3.3 Differentiate between gain sharing and profit sharing as incentive systems. Explain what Denis Spry should do to ensure that the results sharing programme will continue to motivate both managers and non-management e m p l o y e e s . ( 1 8 ) Use study unit 8 as the point of departure for answering this question. To focus your mind, give a brief description of the results sharing programme – remember that it consists of a profit sharing and a gain sharing component. Discuss the differences between these two incentive schemes. Discuss the key elements in the design of a gain sharing programme. TOTAL [ 50]
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18 ASSIGNMENT 04 4.1 A compensation system must not only contain labour costs, but should also aim at achieving other goals. Identify and briefly discuss these goals. (10) Use study unit 1 as your starting point for answering this question. According to the compensation model, a company’s compensation system should aim at achieving the following goals: Effectiveness by: Improving performance Improving quality Delighting customers and shareholders Controlling labour costs Fairness (justice) Fair treatment of all employees by acknowledging both employee contributions and employee needs Procedural fairness (justice) – a fair process for making compensation decisions Legal compliance Complying with legal requirements and rules 4.2 Which of these goals are not addressed by the negotiated compensation strategy? Substantiate your answer. ( 5 ) Here you must think carefully. Look at the goals that are achieved – controlling labour costs. What about fairness (justice), quality, satisfaction of customers and legal compliance? We cannot discuss legal compliance because we do not have sufficient information. Nor can we discuss improving quality and customer satisfaction because, again, we do not have sufficient information. We can, however, assume that shareholders will be satisfied, because the new compensation structure will lead to an increase in profits. Also, it is clear from the case study that employees are dissatisfied with the new structure and we can therefore say that the goal of fairness has not been achieved. Fairness consists of two components – fair treatment and the perceived fairness of the process that is used to make compensation decisions. 4.3 Explain how the policies and techniques in the pay model can assist the company in the case study to achieve all the goals of a compensation system. (35) Use study unit 1 as your starting point when answering this question. The compensation model discusses four policies and four techniques to achieve the goals of the system. You must identify and discuss the policies and the techniques. The policies: Alignment Competitiveness Contributions Management Briefly discuss each of these goals.
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MNH306-K/101 19 The techniques Internal structure External structure Incentive plans Evaluation Discuss each briefly. T o t a l [ 5 0 ]
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Substantiate your answer by discussing the advantages and...

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