1
2026 – S1 – HRM2603 – ASSESSMENT 2 – Q&A
QUIZ
Assessment 2
Started on Tuesday, 7 April 2026,
State Finished
Completed on Tuesday, 7 April 2026,
Time taken
Marks 25.00/25.00
Grade 100.00 out of 100.00
Question 1
To control green-circling organisations should ...
Select one:
• bring the green-circle pay rate in line with the normal pay range as soon as possible
• limit any annual salary increases
• maintain the pay inequality
• promote the employee without a pay increase
Feedback
The correct answer is “bring the green-circle pay rate in line with the normal pay range
as soon as possible”. See “Understanding what a pay structure is and pay structure
terminology" in lesson 4 and the discussion on red circle and green circle rates on page 89 in
chapter 4 of the prescribed book.
Employees sometimes receive below-minimum pay rates within their pay ranges. These
below minimum pay range rates are known as green-circle rates. Green-circle rates can occur
if an employee receives a promotion without any pay increase. The pay rates of employees
who are paid at green-circle rates should be brought in line with the normal pay range as soon
as possible. Limiting annual salary increases can be used to control red-circling and red-
circling tends to maintain existing pay inequalities.
The correct answer is: bring the green-circle pay rate in line with the normal pay range as
soon as possible
,2
2026 – S1 – HRM2603 – ASSESSMENT 2 – Q&A
Question 2
What is the advantage of using a broad-band pay structure in an organisation?
Select one:
• It shifts the responsibility of administering employee remuneration to supervisors and
managers
• It is easily managed because a large number of grades enable fine distinctions to be
made between different levels of responsibility
• It clarifies career paths within and between families and facilitates career planning
• It links pay and grade management with career development in accordance with HRM
best practices
Feedback
The correct answer is "Shifts the responsibility of administering employee
remuneration to supervisors and managers". See "Different types of pay structures"
in lesson 4 and "Types of pay structures" in chapter 4 of the prescribed book.
The advantage of using a broad-band pay structure in an organisation is that it shifts greater
responsibility to supervisors and managers for administering each employee’s remuneration
within the confines of the broad bands.
The correct answer is: It shifts the responsibility of administering employee remuneration to
supervisors and managers
Question 3
From the list below, identify the different types of pay structures an organisation can
implement.
Select one:
• Narrow-grade, job family, career
• Green-circle, red-circle, pay anomaly
• Minimum, midpoint, maximum
• Pay range, pay scale, pay overlap
,3
2026 – S1 – HRM2603 – ASSESSMENT 2 – Q&A
Feedback
The correct answer is “Narrow-grade, job family, career”. See “Different types of pay
structures" in lesson 4 as well as “Types of pay structures” in chapter 4 of the prescribed
book.
The narrow-grade, job family and career pay structure are types of pay structures that
organisations can implement and use. The minimum, midpoint, maximum, pay range, pay
scale, pay overlap, a green-circle pay rate, red-circle pay rate, and pay anomaly are pay
concepts which can be found in a pay structure.
The correct answer is:
Narrow-grade, job family, career
Question 4
Which type of pay structure is based on mutual processes where each job family will consist
of jobs within similar occupations or functions?
Select one:
• Job family
• Pay spine
• Career family
• Broad-band
Feedback
The correct answer is "Job family". See "Different types of pay structures" in lesson 4 and
"Types of pay structures" in chapter 4 of the prescribed book.
A job family structure is based on mutual processes and each job family will consist of jobs
within similar occupations or functions. A pay spine comprises of a sequence of pay points
stretching from the lowest to the highest-paid job covered by the structure. A broad-band pay
structure has fewer wider pay grades and broader minimum and maximum spreads and each
band will include a wider range of jobs. A career family structure includes jobs in similar
, 4
2026 – S1 – HRM2603 – ASSESSMENT 2 – Q&A
functions or occupations such as HR, Finance, IT or Administration that are linked through
the activities carried out and the basic knowledge and skills required.
The correct answer is: Job family
Question 5
The pay slope refers to the steepness of the pay curve and is a direct result of the percentage
difference between the pay of different grades.
• True
• False
Feedback
The correct answer is "True". See "Understanding what a pay structure is and pay structure
terminology" in lesson 4 and "Pay structure terminology" in chapter 4 of the prescribed book.
The pay slope refers to the steepness of the pay curve and is a direct result of the percentage
difference between the pay of different grades.
The correct answer is 'True'.
Question 6
The _________ is related to the midpoint of a salary scale and expresses the relationship
between the incumbent’s salary and the market reference salary.
Select one:
• comparative-ratio
• mean
• mode
• median
Feedback
2026 – S1 – HRM2603 – ASSESSMENT 2 – Q&A
QUIZ
Assessment 2
Started on Tuesday, 7 April 2026,
State Finished
Completed on Tuesday, 7 April 2026,
Time taken
Marks 25.00/25.00
Grade 100.00 out of 100.00
Question 1
To control green-circling organisations should ...
Select one:
• bring the green-circle pay rate in line with the normal pay range as soon as possible
• limit any annual salary increases
• maintain the pay inequality
• promote the employee without a pay increase
Feedback
The correct answer is “bring the green-circle pay rate in line with the normal pay range
as soon as possible”. See “Understanding what a pay structure is and pay structure
terminology" in lesson 4 and the discussion on red circle and green circle rates on page 89 in
chapter 4 of the prescribed book.
Employees sometimes receive below-minimum pay rates within their pay ranges. These
below minimum pay range rates are known as green-circle rates. Green-circle rates can occur
if an employee receives a promotion without any pay increase. The pay rates of employees
who are paid at green-circle rates should be brought in line with the normal pay range as soon
as possible. Limiting annual salary increases can be used to control red-circling and red-
circling tends to maintain existing pay inequalities.
The correct answer is: bring the green-circle pay rate in line with the normal pay range as
soon as possible
,2
2026 – S1 – HRM2603 – ASSESSMENT 2 – Q&A
Question 2
What is the advantage of using a broad-band pay structure in an organisation?
Select one:
• It shifts the responsibility of administering employee remuneration to supervisors and
managers
• It is easily managed because a large number of grades enable fine distinctions to be
made between different levels of responsibility
• It clarifies career paths within and between families and facilitates career planning
• It links pay and grade management with career development in accordance with HRM
best practices
Feedback
The correct answer is "Shifts the responsibility of administering employee
remuneration to supervisors and managers". See "Different types of pay structures"
in lesson 4 and "Types of pay structures" in chapter 4 of the prescribed book.
The advantage of using a broad-band pay structure in an organisation is that it shifts greater
responsibility to supervisors and managers for administering each employee’s remuneration
within the confines of the broad bands.
The correct answer is: It shifts the responsibility of administering employee remuneration to
supervisors and managers
Question 3
From the list below, identify the different types of pay structures an organisation can
implement.
Select one:
• Narrow-grade, job family, career
• Green-circle, red-circle, pay anomaly
• Minimum, midpoint, maximum
• Pay range, pay scale, pay overlap
,3
2026 – S1 – HRM2603 – ASSESSMENT 2 – Q&A
Feedback
The correct answer is “Narrow-grade, job family, career”. See “Different types of pay
structures" in lesson 4 as well as “Types of pay structures” in chapter 4 of the prescribed
book.
The narrow-grade, job family and career pay structure are types of pay structures that
organisations can implement and use. The minimum, midpoint, maximum, pay range, pay
scale, pay overlap, a green-circle pay rate, red-circle pay rate, and pay anomaly are pay
concepts which can be found in a pay structure.
The correct answer is:
Narrow-grade, job family, career
Question 4
Which type of pay structure is based on mutual processes where each job family will consist
of jobs within similar occupations or functions?
Select one:
• Job family
• Pay spine
• Career family
• Broad-band
Feedback
The correct answer is "Job family". See "Different types of pay structures" in lesson 4 and
"Types of pay structures" in chapter 4 of the prescribed book.
A job family structure is based on mutual processes and each job family will consist of jobs
within similar occupations or functions. A pay spine comprises of a sequence of pay points
stretching from the lowest to the highest-paid job covered by the structure. A broad-band pay
structure has fewer wider pay grades and broader minimum and maximum spreads and each
band will include a wider range of jobs. A career family structure includes jobs in similar
, 4
2026 – S1 – HRM2603 – ASSESSMENT 2 – Q&A
functions or occupations such as HR, Finance, IT or Administration that are linked through
the activities carried out and the basic knowledge and skills required.
The correct answer is: Job family
Question 5
The pay slope refers to the steepness of the pay curve and is a direct result of the percentage
difference between the pay of different grades.
• True
• False
Feedback
The correct answer is "True". See "Understanding what a pay structure is and pay structure
terminology" in lesson 4 and "Pay structure terminology" in chapter 4 of the prescribed book.
The pay slope refers to the steepness of the pay curve and is a direct result of the percentage
difference between the pay of different grades.
The correct answer is 'True'.
Question 6
The _________ is related to the midpoint of a salary scale and expresses the relationship
between the incumbent’s salary and the market reference salary.
Select one:
• comparative-ratio
• mean
• mode
• median
Feedback
