5 the company has lost track of trends in the market

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5 The company has lost track of trends in the market with regard to compensation and as a result, labour turnover has increased by 15%. 6 An earnings gap exists with regard to gender and ethnicity. QUESTIONS 1 Critically evaluate the pay system at Leisure Life by indicating how each of the various issues should be addressed. (15) 2 An organisation is confronted with an array of pay rates for its different jobs. This does not pose a problem, as long as the employees judge the pay structure to be fair and equitable. For a pay structure to be fair and equitable, internal alignment (consistency) is essential. What does internal alignment mean and why is it essential within an organisation? (5) 3 Discuss the role of job analysis, job evaluation and performance evaluation in the establishment of a pay structure. (5) Total [25] ASSIGNMENT 03 This assignment must NOT be sent to the University. QUESTIONS “Women are generally being paid less than men.” 1 Critically evaluate this statement by discussing the factors that are responsible for pay differences between men and women. (15) 2 How can an organisation prevent the development of an earnings gap between men and women? (4) 3 Discuss the role of the Employment Equity Act and the Basic Conditions of Employment Act in the fair treatment of male and female employees in respect of their pay. (Refer to South African Legislation.) (6) Total [25]
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MNH306-K/101 10 APPENDIX C- ANSWERS TO ASSIGNMENTS 01 & 03 ASSIGNMENT 01 For the completion of this assignment you had to study chapters 1, 2 and 12 of the prescribed book as well as study units 1, 2 and 10 of the study guide. 1 What is compensation? Under which circumstances can compensation be a source of competitive advantage? Compensation refers to all forms of financial renumeration and tangible services and benefits that employees receive as part of the employment relationship. Employees usually receive direct compensation (cash) and indirect compensation (benefits) in return for work done, but intangible psychological returns, such as status, employment security and learning opportunities can also be part of the compensation package. Compensation can contribute to the competitive advantage of the organisation in two ways: # Adding value by enabling the organisation to attract and retain critical talent, control costs and motivate staff to continue to learn and improve performance. # Creating a compensation plan that is difficultfor competitors to imitate. This can be achieved by integrating the compensation system with the business strategy, creating a fit between compensation and other HR practices, and implementing the system in such a way that personnel, management and shareholders benefit by the compensation system. (7) 2 From a strategic perspective, why is it important for the organisation to reconsider the compensation of professional staff? Professional staff usually contribute more to the competitive edge of the organisation, through their unique skills and abilities and also through their ability to quickly gain new skills and abilities than lower level personnel. If the compensation of professional staff starts lagging behind that of competitors, staff my look for employment elsewhere and this could cost the organisation its competitive advantage.
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