{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Organisation to reduce turnover but providing

Info iconThis preview shows pages 4–6. Sign up to view the full content.

View Full Document Right Arrow Icon
organisation to reduce turnover but providing benefits instead of cash will not necessarily reduce turnover. Option a is thus not a reason why benefits are preferred to cash. Question 4 - Employers’ biggest concern in administering a benefits programme This question was not formulated very well and we should rather have asked you to indicate which one of the options was NOT important for the administration of a benefits programme. The prescribed book refers to the three Cs, namely communication, claims processing and cost containment. Options 1, 2 and 4 are thus correct. The administration of a benefits programme has nothing to do with the justification of compensation decisions (option 3). Job evaluation and wage survey results are however used to justify compensation decisions. Question 5 - Contingent employees The correct answer is 1. One way of cutting costs is by appointing contingent workers. Contingent workers are paid to complete a specific task and are not entitled to the same employee benefits or privileges as permanent employees. Option 1 is thus correct. Option 2 is incorrect because contingent workers are usually experts in a specific field and enable the organisation to adapt to changing conditions. Option 3, which states that contingent workers are an expensive alternative to employment, is incorrect. Owing to the saving in costs, increasing numbers of organisations are making use of contingent employees and option 4 is therefore also incorrect. Question 6 - Compensation form that gives part ownership in the organisation The correct answer is 1. Employee stock ownership plans provide employees with shares and thus make them “owners” of the organisation. Pay-for-performance, gainsharing and profitsharing plans link employee performance to pay but employees are not entitled to any part of the organisation. Question 7 - Data to use to determine whether jobs are equal The correct answer is 1. Job descriptions are documents which describe the job but they do not provide enough
Background image of page 4

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

View Full Document Right Arrow Icon
MNH306-K/201 5 information to compare jobs with one another. The qualifications and training needs of employees are also not a reliable source of information on which the equality of jobs should be based. Data sources which give an indication of how difficult or important a job is, such as the actual work performed (option 1) are thus the only measure to determine whether jobs are equal. Question 8 - Aims of efficiency The correct answer is 4 (a, b, c, d). The compensation objectives of the strategic pay model includes efficiency, fairness and compliance. Efficiency refers to employees’ performance (option a), employees’ quality of life (option b), customers and stockholders needs, controlling costs (option c) and ultimately the business’s success (option d).
Background image of page 5
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}