2025 – S2 – HRM3705 – ASSESSMENT 2 – Q&A
QUIZ
Assessment 2
Started on Monday, 1 September 2025,
State Finished
Completed on Monday, 1 September 2025,
Time taken
Marks 20.00/20.00
Grade 100.00 out of 100.00
Question 1
You are an HR manager conducting a remuneration survey. What kind of data would
you gather?
Select one:
➢ Employee attendance records
➢ Employee job satisfaction ratings
➢ Company financial statements.
➢ Market salary ranges for various job roles
Feedback
Your answer is correct.
The correct answer is Market salary ranges for various job roles. See
“Remuneration survey,” in lesson 4, and section 3.4, table 3.2 in chapter 3 of the
prescribed book.
A remuneration survey entails collecting data on prevailing salary ranges for different
job roles within the industry. This data helps organisations determine if their
remuneration practices are competitive and align with market
standards. Remuneration surveys focus on collecting data related to remuneration
practices in the market, specifically salary ranges, rather than employee job
satisfaction ratings. While job satisfaction is important, it is not the primary focus of a
remuneration survey. Remuneration surveys do not typically involve gathering data
from company financial statements. The aim is to benchmark an organisation's
remuneration practices against industry standards, rather than internal financial
1
,2025 – S2 – HRM3705 – ASSESSMENT 2 – Q&A
information. Attendance records are not typically part of a remuneration survey.
While attendance is important, it is not a direct factor in comparing remuneration
practices with industry benchmarks. Market salary ranges for various job roles are
therefore the correct option because they align with the core purpose of a
remuneration survey—to gather data on compensation practices in the market and
compare an organisation's remuneration levels with prevailing industry standards.
The other options do not directly relate to the primary objective of a remuneration
survey.
The correct answer is:
Market salary ranges for various job roles
Question 2
Carefully read the case study below and answer the question that follows.
2
, 2025 – S2 – HRM3705 – ASSESSMENT 2 – Q&A
If Naledi is appointed at a Grade D level, despite chemists being classified under
Grade C, identify the pay anomaly that would arise and indicate how Abbvie
Pharmaceutical could effectively address it.
Select one:
➢ Pay overlap: Adjust the grading structure to accommodate Naledi's
appointment.
➢ Pay compression: Increase the salaries of other pharmacists to restore
internal equity.
➢ Red-circling: Limit Naledi’s salary until it falls back inside the updated range of
the pharmacist position.
➢ Green-cirle: Bring the pay rates in line with the normal pay range as soon as
possible.
Feedback
Your answer is incorrect.
The correct answer is option 1. See lesson 4, “Key issues in designing pay
structures” in Lesson 04, and “Key issues in designing pay structures” in Chapter 4
of the prescribed book.
Red-circling occurs when an employee’s pay exceeds the maximum salary for their
designated job grade. If Naledi is appointed at Grade D while other chemists remain
at Grade C, her salary would surpass the structured pay range for her role, creating
a red-circle rate situation. Abbvie Pharmaceutical should, therefore, limit Naledi’s
future salary increases until her salary aligns with the adjusted pay range for
pharmacists. This ensures that the integrity of the job evaluation system is
maintained without unfairly disadvantaging other pharmacists. Pay
compression refers to minimal pay differences between employees in different job
grades, often due to rapid market wage increases or internal inequities. While
increasing other pharmacists’ salaries may seem like a solution, it is not the correct
approach because it does not directly resolve the issue of Naledi being paid outside
her grade range. Green-circling happens when an employee’s salary falls below the
minimum range for their pay grade. The correct response to a green-circle rate
would be to increase salaries to meet the minimum range. Still, this scenario does
not apply to Naledi since her salary would be above the maximum for his grade. Pay
3
QUIZ
Assessment 2
Started on Monday, 1 September 2025,
State Finished
Completed on Monday, 1 September 2025,
Time taken
Marks 20.00/20.00
Grade 100.00 out of 100.00
Question 1
You are an HR manager conducting a remuneration survey. What kind of data would
you gather?
Select one:
➢ Employee attendance records
➢ Employee job satisfaction ratings
➢ Company financial statements.
➢ Market salary ranges for various job roles
Feedback
Your answer is correct.
The correct answer is Market salary ranges for various job roles. See
“Remuneration survey,” in lesson 4, and section 3.4, table 3.2 in chapter 3 of the
prescribed book.
A remuneration survey entails collecting data on prevailing salary ranges for different
job roles within the industry. This data helps organisations determine if their
remuneration practices are competitive and align with market
standards. Remuneration surveys focus on collecting data related to remuneration
practices in the market, specifically salary ranges, rather than employee job
satisfaction ratings. While job satisfaction is important, it is not the primary focus of a
remuneration survey. Remuneration surveys do not typically involve gathering data
from company financial statements. The aim is to benchmark an organisation's
remuneration practices against industry standards, rather than internal financial
1
,2025 – S2 – HRM3705 – ASSESSMENT 2 – Q&A
information. Attendance records are not typically part of a remuneration survey.
While attendance is important, it is not a direct factor in comparing remuneration
practices with industry benchmarks. Market salary ranges for various job roles are
therefore the correct option because they align with the core purpose of a
remuneration survey—to gather data on compensation practices in the market and
compare an organisation's remuneration levels with prevailing industry standards.
The other options do not directly relate to the primary objective of a remuneration
survey.
The correct answer is:
Market salary ranges for various job roles
Question 2
Carefully read the case study below and answer the question that follows.
2
, 2025 – S2 – HRM3705 – ASSESSMENT 2 – Q&A
If Naledi is appointed at a Grade D level, despite chemists being classified under
Grade C, identify the pay anomaly that would arise and indicate how Abbvie
Pharmaceutical could effectively address it.
Select one:
➢ Pay overlap: Adjust the grading structure to accommodate Naledi's
appointment.
➢ Pay compression: Increase the salaries of other pharmacists to restore
internal equity.
➢ Red-circling: Limit Naledi’s salary until it falls back inside the updated range of
the pharmacist position.
➢ Green-cirle: Bring the pay rates in line with the normal pay range as soon as
possible.
Feedback
Your answer is incorrect.
The correct answer is option 1. See lesson 4, “Key issues in designing pay
structures” in Lesson 04, and “Key issues in designing pay structures” in Chapter 4
of the prescribed book.
Red-circling occurs when an employee’s pay exceeds the maximum salary for their
designated job grade. If Naledi is appointed at Grade D while other chemists remain
at Grade C, her salary would surpass the structured pay range for her role, creating
a red-circle rate situation. Abbvie Pharmaceutical should, therefore, limit Naledi’s
future salary increases until her salary aligns with the adjusted pay range for
pharmacists. This ensures that the integrity of the job evaluation system is
maintained without unfairly disadvantaging other pharmacists. Pay
compression refers to minimal pay differences between employees in different job
grades, often due to rapid market wage increases or internal inequities. While
increasing other pharmacists’ salaries may seem like a solution, it is not the correct
approach because it does not directly resolve the issue of Naledi being paid outside
her grade range. Green-circling happens when an employee’s salary falls below the
minimum range for their pay grade. The correct response to a green-circle rate
would be to increase salaries to meet the minimum range. Still, this scenario does
not apply to Naledi since her salary would be above the maximum for his grade. Pay
3
