2025 – S1 – HRM3705 – ASSESSMENT 1 – Q&A
QUIZ
Assessment 1
Started on Saturday, 5 April 2025,
State Finished
Completed Saturday, 5 April 2025,
on
Time taken
Marks 20.00/20.00
Grade 100.00 out of 100.00
Question 1
This question is based on the following scenario: case study:
David Mahlangu is the owner and managing director of Mahlangu Plastics, a
manufacturing company situated in Port Alfred in the Eastern Cape. Although the
company is in a growth phase, the business is expanding faster than David
thought it would. The company currently employs two administrators and three
engineers. Owing to the company’s expansion, David needs to employ another
engineer to keep up with demand.
The administrators’ positions were easy to fill and David can remunerate them on
the same level as competitors. However, it took him almost six months to find three
suitable engineers who were willing to work in Port Alfred. On top of that, David
had to offer the engineers higher salaries because there is a shortage of engineers
in the Eastern Cape. After months of searching, David found the perfect candidate
for the new engineering position. However, Thulani, who is originally from
Gauteng, is requesting a higher salary than the other engineers since he does not
want to settle for anything less than his current salary and he has to relocate to
another province. Given that David’s company is only in the growth phase, he
knows that he cannot afford to offer the salary that Thulani is requesting. Before
David makes a final decision, he wants to conduct a salary survey to determine
what the going pay rates are for engineers in the Eastern Cape.
1
,2025 – S1 – HRM3705 – ASSESSMENT 1 – Q&A
David has to offer the engineers higher salaries because there is a shortage of
engineers in the Eastern Cape. Which external factor affects Mahlangu Plastics’
remuneration decisions?
Select one:
- People
- The economy
- Societal factors
- The labour market
Feedback
Your answer is correct.
The correct answer is the labour market. See Lesson 1, "Factors influencing
remuneration", as well as in chapter 1 of the prescribed book.
The supply and demand for labour affects remuneration levels in the labour market.
An oversupply of labour will most likely lower pay levels, and a demand for labour
will increase pay levels. The case study states that there is a lack of supply
(shortage) of engineers in the Eastern Cape, which results in an increase in their pay
levels.
People is an internal factor that affects the design of an organisation’s remuneration
system. Conditions in the economy, such as the general state of the economy, cost
of living, organisations’ competitiveness, and industry conditions, have an impact
on remuneration policies and practices. Societal factors such as the local culture,
values, norms, and attitudes also affect remuneration policies and practices. The
other options are therefore incorrect.
Question 2
This question is based on the following case study:
Nthondo Manufacturing is a large company that was founded in 1945 by Sello
Nthondo. This manufacturing company is located in Port Elizabeth and employs
1 500 people, ranging from cleaners to the corporate executive team. Nthondo
2
, 2025 – S1 – HRM3705 – ASSESSMENT 1 – Q&A
produces plastic bottles and containers, which it sells on to other businesses.
Robert Nthondo replaced his father as chief executive officer (CEO) five years ago.
Sello Nthondo, an entrepreneur with a high school education, was a traditional
manager who followed a hands-on approach in every phase of the operation. Sello
took pride in Nthondo Manufacturing’s reputation for fair pay and satisfied
employees. Sello was involved in all aspects of the remuneration plan and had the
final word on pay rates for all employees. He based pay on experience, potential
and how much each employee needed to support their family. As a result, Nthondo
Manufacturing had low absenteeism and staff turnover. After Sello Nthondo retired,
Robert took over.
Several economic factors have started to challenge the company founder’s
approach to remuneration. Several new competitors have entered the
marketplace. They pay lower wages than Nthondo, so they are more profitable.
Key business has been lost because Nthondo charges more for its products to
maintain the remuneration system's above-average pay strategy. At the same
time, staff turnover has increased because employees at Nthondo are of the
opinion that they are not paid fairly.
Rebotile Mahlare, the HR manager, makes a point of raising this at a staff meeting
and says, “Nthondo is paying the highest wages in the industry, but we are steadily
losing employees because they do not think they are being paid fairly and because
there are too many exceptions of the pay policy.”
Rebotile believes that the whole pay structure, remuneration policy and job
evaluation system need to be re-evaluated.
Adapted from: Ivancevich, J.M. 2003. Human resource management. 9th edition.
Asia: McGraw Hill Education, p 297.
The remuneration building block that Nthondo Manufacturing does not comply with is
...
Select one:
- external competitiveness
3
QUIZ
Assessment 1
Started on Saturday, 5 April 2025,
State Finished
Completed Saturday, 5 April 2025,
on
Time taken
Marks 20.00/20.00
Grade 100.00 out of 100.00
Question 1
This question is based on the following scenario: case study:
David Mahlangu is the owner and managing director of Mahlangu Plastics, a
manufacturing company situated in Port Alfred in the Eastern Cape. Although the
company is in a growth phase, the business is expanding faster than David
thought it would. The company currently employs two administrators and three
engineers. Owing to the company’s expansion, David needs to employ another
engineer to keep up with demand.
The administrators’ positions were easy to fill and David can remunerate them on
the same level as competitors. However, it took him almost six months to find three
suitable engineers who were willing to work in Port Alfred. On top of that, David
had to offer the engineers higher salaries because there is a shortage of engineers
in the Eastern Cape. After months of searching, David found the perfect candidate
for the new engineering position. However, Thulani, who is originally from
Gauteng, is requesting a higher salary than the other engineers since he does not
want to settle for anything less than his current salary and he has to relocate to
another province. Given that David’s company is only in the growth phase, he
knows that he cannot afford to offer the salary that Thulani is requesting. Before
David makes a final decision, he wants to conduct a salary survey to determine
what the going pay rates are for engineers in the Eastern Cape.
1
,2025 – S1 – HRM3705 – ASSESSMENT 1 – Q&A
David has to offer the engineers higher salaries because there is a shortage of
engineers in the Eastern Cape. Which external factor affects Mahlangu Plastics’
remuneration decisions?
Select one:
- People
- The economy
- Societal factors
- The labour market
Feedback
Your answer is correct.
The correct answer is the labour market. See Lesson 1, "Factors influencing
remuneration", as well as in chapter 1 of the prescribed book.
The supply and demand for labour affects remuneration levels in the labour market.
An oversupply of labour will most likely lower pay levels, and a demand for labour
will increase pay levels. The case study states that there is a lack of supply
(shortage) of engineers in the Eastern Cape, which results in an increase in their pay
levels.
People is an internal factor that affects the design of an organisation’s remuneration
system. Conditions in the economy, such as the general state of the economy, cost
of living, organisations’ competitiveness, and industry conditions, have an impact
on remuneration policies and practices. Societal factors such as the local culture,
values, norms, and attitudes also affect remuneration policies and practices. The
other options are therefore incorrect.
Question 2
This question is based on the following case study:
Nthondo Manufacturing is a large company that was founded in 1945 by Sello
Nthondo. This manufacturing company is located in Port Elizabeth and employs
1 500 people, ranging from cleaners to the corporate executive team. Nthondo
2
, 2025 – S1 – HRM3705 – ASSESSMENT 1 – Q&A
produces plastic bottles and containers, which it sells on to other businesses.
Robert Nthondo replaced his father as chief executive officer (CEO) five years ago.
Sello Nthondo, an entrepreneur with a high school education, was a traditional
manager who followed a hands-on approach in every phase of the operation. Sello
took pride in Nthondo Manufacturing’s reputation for fair pay and satisfied
employees. Sello was involved in all aspects of the remuneration plan and had the
final word on pay rates for all employees. He based pay on experience, potential
and how much each employee needed to support their family. As a result, Nthondo
Manufacturing had low absenteeism and staff turnover. After Sello Nthondo retired,
Robert took over.
Several economic factors have started to challenge the company founder’s
approach to remuneration. Several new competitors have entered the
marketplace. They pay lower wages than Nthondo, so they are more profitable.
Key business has been lost because Nthondo charges more for its products to
maintain the remuneration system's above-average pay strategy. At the same
time, staff turnover has increased because employees at Nthondo are of the
opinion that they are not paid fairly.
Rebotile Mahlare, the HR manager, makes a point of raising this at a staff meeting
and says, “Nthondo is paying the highest wages in the industry, but we are steadily
losing employees because they do not think they are being paid fairly and because
there are too many exceptions of the pay policy.”
Rebotile believes that the whole pay structure, remuneration policy and job
evaluation system need to be re-evaluated.
Adapted from: Ivancevich, J.M. 2003. Human resource management. 9th edition.
Asia: McGraw Hill Education, p 297.
The remuneration building block that Nthondo Manufacturing does not comply with is
...
Select one:
- external competitiveness
3
