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HRM3705 Assignment 3 Semester 1 2026 - Distinction - Due 21 April 2026

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HRM3705: Assessment 3 Semester 1 2026 Semester 01 (2026) Answer the following questions by applying and critically engaging with the subject matter contained in lessons 03 to 10. ASSESSMENT QUESTIONS Layout and technical presentation [2 marks] Up to two (2) marks will be awarded for the layout, technical presentation, and ethical use of AI in/of your assignment. Please ensure you follow the guidelines provided on pages 4 and 16 of this document. Question 1 [10 marks] Read the following scenario and answer question that follow. Remuneration system transformation at Synaptech Solutions Synaptech Solutions is a medium-sized information and communications technology (ICT) enterprise operating in Gauteng. In response to intensifying global competition and accelerated technological disruption, the organisation has embarked on a strategic realignment of its operating model. A central component of this transition is the reassessment of its remuneration architecture. At present, Synaptech Solutions applies a relatively uniform remuneration approach, characterised by across-the-board annual salary adjustments and standardised incentive payments. This model does not adequately differentiate between roles of varying organisational value, nor does it sufficiently recognise individual or team performance contributions. Senior leadership has highlighted two critical challenges: • Misalignment in internal pay structures, attributable to obsolete job data and indistinct pay relativities • Ongoing turnover among high-performing software engineers, despite sustained demand for specialised digital skills. In response, the Human Capital Executive has recommended implementing a performancecontingent reward system that incorporates both individual and collective performance metrics. However, employees have expressed reservations regarding procedural fairness, transparency, and the robustness of the current job evaluation processes. HRM3705: Assessment 3 Semester 01 (2026) 1.1 Discuss the role of job analysis and job evaluation in establishing and maintaining internal alignment within a remuneration structure. (2) 1.2 Identify and briefly explain two key principles that should guide the design of an effective performance-related pay (PFP) system within this organisation, based on the prescribed material. In your answer, ensure that you clearly identify each principle, explain each principle in the context of designing a PFP system and demonstrate how each principle contributes to an effective and credible pay-for-performance approach. (3) 1.3 Assess the potential advantages and inherent risks associated with the introduction of a performance-based remuneration system in Synaptech Solutions. (3) 1.4 Briefly examine how the integration of internal alignment and performance-based pay can enhance organisational effectiveness and employee commitment. (2) [10]

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HRM3705
ASSIGNMENT 3 2026
DUE: 21 APRIL 2026




SEMESTER 1 2026

,HRM3705: ASSIGNMENT 3 2026
DUE 23 APRIL 2026




1.1 Discuss the role of job analysis and job evaluation in establishing and
maintaining internal alignmentwithin a remuneration structure.


1.1 Role of job analysis and job evaluation in establishing internal alignment

Job analysis means carefully looking at a job to understand what people do in that job. It
looks at the tasks, duties, and skills needed. At Synaptech Solutions, this will help the
company get correct and updated information about each job. This information is written
down in job descriptions and job requirements so everyone knows what each job
involves (Coetzee et al., 2020, p. 19). Job evaluation means comparing different jobs to
see which ones are more important or need more skills. It uses the information from job
analysis to rank jobs from lowest to highest. At Synaptech Solutions, this will help the
company decide why some jobs are paid more than others. It will also make the pay
system fair and clear so employees understand it better (Coetzee et al., 2020, p. 20).




Job evaluation also helps the company treat workers fairly by making sure people who
do the same level of work get the same pay. It gives clear and fair reasons for salaries
and helps the company compare its pay with other companies (Bezuidenhout, 2021, p.
20).

, 1.2 Key principles guiding the design of an effective performance-related pay
system




Principle one: Line of sight
The concept of "line of sight" refers to the degree to which employees can see a
clear connection between their behaviour and the payout from an incentive system
(Bezuidenhout, 2021, p. 65). In designing a PFP system for Synaptech Solutions,
this principle requires that employees must clearly understand how their individual
actions and performance levels translate into tangible rewards. When employees at
Synaptech can perceive that their increased effort in software development or client
solutions directly influences their incentive payouts, the motivational effect of the
PFP system is substantially strengthened. This principle contributes to an effective
PFP approach by ensuring that the reward system does not become an abstract
entitlement but rather a meaningful tool for behavioural guidance and performance
reinforcement.


Principle two: Fairness and procedural justice
The design of any PFP plan must incorporate both distributive justice the fairness of
pay outcomes and procedural justice (the fairness of the processes used to
determine those outcomes) (Coetzee et al., 2020, p. 14). For Synaptech Solutions,
where employees have already expressed reservations regarding procedural
fairness, this principle demands that the organisation develops transparent
performance measurement criteria, ensures consistent application across all
employee categories, and establishes appeal mechanisms for perceived injustices.
This principle contributes to an effective PFP approach because, as the Equity
theory emphasises, employees need to experience a balance between their inputs

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