Car allowance of between r50000 and r1 50000 per

Info icon This preview shows pages 8–10. Sign up to view the full content.

View Full Document Right Arrow Icon
Car allowance of between R500,00 and R1 500,00 per month. Cell-phone allowance of R300,00 per month. All staff receive the following benefits: Medical insurance, Group Life Insurance and Pension Benefits According to the results of a survey done recently, many of the younger professional staff indicated that they would prefer to provide for their own insurance, medical coverage and retirement through a professional organisation which offers them better coverage at less cost. Such a practice is however currently contrary to the rumuneration policy of the company. Please advise urgently on how we should approach the salary increases for professional staff. Kind regards P TSHOKE (Mrs) HUMAN RESOURCE DEPARTMENT: COMPENSATION QUESTIONS 1 What is compensation? Under which circumstances can compensation be a source of competitive advantage? (7) 2 From a strategic perspective, why is it important for the organisation to reconsider the compensation of professional staff? (3) 3 What should the organisation do to prevent the situation, as described in the memo, from recurring? (5) 4 Discuss the other compensation options the organisaion can consider to retain the services of professional staff while still remaining within the salary budget? (7) 5 Can the salary increases negotiated by the Union be ignored? Critically evaluate this negotiated agreement. Would you have agreed to such an agreement if you were involved in the negotiation process? Motivate your answer. (3) Total [25] ASSIGNMENT 02 DUE DATES: 30 March 2004 (if you are registered for the first semester) 30 August 2004 (if you are registered for the second semester) This assignment may be sent to the University. Read the following case study and then answer the questions.
Image of page 8

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
MNH306-K/101 9 REVIEWING LEISURE LIFE’S PAY STRUCTURE Sarah has been promoted to the position of Compensation Manager at Leisure Life. Her first major assignment is to examine the reward structure that has been in place for over ten years. The organisation makes use of a Hay job evaluation scheme to determine its pay level. There is no performance pay scheme and the only variable element in the pay is an annual Christmas bonus decided by the chief executive which has given an average of 3 per cent over the last three years. The following issues necessitate a review of the reward structure: 1 The across-the-board annual pay increase of 6 per cent awarded in the previous year has caused discontentment and a sense of unfairness among the staff. 2 The staff is generally dissatisfied with the criteria used in evaluating their jobs. 3 There is a strong view that there should be some sort of pay arrangement that differentiates between good, average and poor employees. 4 The employee benefits provided do not satisfy employees’ personal needs and the majority of employees are ignorant about the employee benefits provided and how much money is spent on them.
Image of page 9
Image of page 10
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern