HRM3705 Exam Prep
Additional Workbook Discussions
23rd October 2018
Workbook 1
Read the following paragraph and answer the questions that follow.
ABSA - Becoming the 'Go-To' bank
Our goal looking forward is to build not only a sustainable, trustworthy
business, but also a business which customers and clients consider as the first
choice for answers and solutions - their 'Go-To' bank.
(a) Identify and discuss the business strategy that Absa have adopted
Absa followed a customer focused strategy which stresses delighting
customers and bases employee pay on how well they do this.
(b) Discuss ABSA's approach to remuneration based on the business
strategy you have identified in (a)
The remuneration practises absa will follow are incentives based on
customer satisfaction, value of job and skills based on customer
service requirements.
A local shop's business strategy includes the following: "low cost, the healthier
Dr ML
way through innovation".
BEZUIDENHOUT
(a) Identify and discuss the business strategy that the business follows.
Prospector
(b) Discuss the characteristics of an organisation that follows this type of
strategy.
An organisation the follows a prospector strategy is a highly
innovative firm that is constantly seeking out new markets and new
opportunities and is orientated toward growth and risk taking.
Prospector businesses are constantly busy developing new products
and ideas in a creative and entrepreneurial way
(c) Indicate the remuneration practices that would be appropriate for this
type of strategy.
A prospector strategy will focus on bonus payments, based on group
or organisational performance. Internal and external equity is very
important to keep the services of staff which is crucial for the growth
of the business. It is also associated with high pay because there is
, more risk in employment and the tasks are more complex
After studying workbook 1 (and the relevant chapters in the prescribed book),
Dr ML
answer the following questions:
BEZUIDENHOUT
(a) Define strategic remuneration
Strategic remuneration is an approach to the development and
implementation of compensation strategies and the guiding principles
that underpin them. The main objective of strategic remuneration is
to develop and implement the remuneration policies, processes and
practices required to support the achievement of the organizations
business goals and meet the needs of its stakeholder.
(b) Discuss the factors that would influence the alignment of the
organisation strategy with the remuneration strategy within an
organisation.
Organisation strategies include customer service, quality, innovation,
productivity, cost, human capital and a balanced scorecard.
Organisation strategies are often developed using sources such as the
vision/ mission and values, critical success factors and the operational
plans of the organisation. The remuneration strategy addresses
questions such as how much to pay, which form of pay, how pay
delivery will take place, which methods will be used to determine pay
and how should the pay plan be designed.
Workbook 3
Read the following paragraph and answer the questions that follows:
Dr ML
BEZUIDENHOUT
A local production shop wants to achieve internal alignment, whereby
employees are rewarded for what the accomplish at work, rather than
for acquisition of additional knowledge or skills.
(a) Identify the type of pay structure that would allow this production
shop to reward employees for their accomplishments.
A competency based structure rewards employees for what they
accomplish at work. This structure rewards competencies which are a
combination of characteristics such as the measurable and observable
skill, knowledge, behaviours and personal attitudes that enable the
job incumbents to perform their jobs thus leading to enhanced
performance and organisational success.
(b) Discuss this type of pay structure.
Per discussion above also, the process for developing a competency
based structure:
Competency Analysis: during the analysis phase there is a high degree
Additional Workbook Discussions
23rd October 2018
Workbook 1
Read the following paragraph and answer the questions that follow.
ABSA - Becoming the 'Go-To' bank
Our goal looking forward is to build not only a sustainable, trustworthy
business, but also a business which customers and clients consider as the first
choice for answers and solutions - their 'Go-To' bank.
(a) Identify and discuss the business strategy that Absa have adopted
Absa followed a customer focused strategy which stresses delighting
customers and bases employee pay on how well they do this.
(b) Discuss ABSA's approach to remuneration based on the business
strategy you have identified in (a)
The remuneration practises absa will follow are incentives based on
customer satisfaction, value of job and skills based on customer
service requirements.
A local shop's business strategy includes the following: "low cost, the healthier
Dr ML
way through innovation".
BEZUIDENHOUT
(a) Identify and discuss the business strategy that the business follows.
Prospector
(b) Discuss the characteristics of an organisation that follows this type of
strategy.
An organisation the follows a prospector strategy is a highly
innovative firm that is constantly seeking out new markets and new
opportunities and is orientated toward growth and risk taking.
Prospector businesses are constantly busy developing new products
and ideas in a creative and entrepreneurial way
(c) Indicate the remuneration practices that would be appropriate for this
type of strategy.
A prospector strategy will focus on bonus payments, based on group
or organisational performance. Internal and external equity is very
important to keep the services of staff which is crucial for the growth
of the business. It is also associated with high pay because there is
, more risk in employment and the tasks are more complex
After studying workbook 1 (and the relevant chapters in the prescribed book),
Dr ML
answer the following questions:
BEZUIDENHOUT
(a) Define strategic remuneration
Strategic remuneration is an approach to the development and
implementation of compensation strategies and the guiding principles
that underpin them. The main objective of strategic remuneration is
to develop and implement the remuneration policies, processes and
practices required to support the achievement of the organizations
business goals and meet the needs of its stakeholder.
(b) Discuss the factors that would influence the alignment of the
organisation strategy with the remuneration strategy within an
organisation.
Organisation strategies include customer service, quality, innovation,
productivity, cost, human capital and a balanced scorecard.
Organisation strategies are often developed using sources such as the
vision/ mission and values, critical success factors and the operational
plans of the organisation. The remuneration strategy addresses
questions such as how much to pay, which form of pay, how pay
delivery will take place, which methods will be used to determine pay
and how should the pay plan be designed.
Workbook 3
Read the following paragraph and answer the questions that follows:
Dr ML
BEZUIDENHOUT
A local production shop wants to achieve internal alignment, whereby
employees are rewarded for what the accomplish at work, rather than
for acquisition of additional knowledge or skills.
(a) Identify the type of pay structure that would allow this production
shop to reward employees for their accomplishments.
A competency based structure rewards employees for what they
accomplish at work. This structure rewards competencies which are a
combination of characteristics such as the measurable and observable
skill, knowledge, behaviours and personal attitudes that enable the
job incumbents to perform their jobs thus leading to enhanced
performance and organisational success.
(b) Discuss this type of pay structure.
Per discussion above also, the process for developing a competency
based structure:
Competency Analysis: during the analysis phase there is a high degree
