HRM3705_Exam_Sept_2021
HRM3705
OCT/NOV 2021 EXAM MEMO
SPECIFIC FOR JAN/FEB SUPP EXAMS
FOR FURTHER ASSISTANCE CONTACT:
THE BOOK FOUNDATION
+27 63 980 7442
, HRM3705_Exam_Sept_2021
QUESTION 1
The objectives of compensation management are to attract, engage, and retain employees
through competitive compensation plans that align with the company budget, corresponding
job-market, and government regulations. These objectives can be summed up as:
Attract and recruit talent (Employee attraction)
Employee retention
Motivate employees (Employee motivation)
Ensuring equity
Adhere to government regulations (labour legislation)
Cost efficiency
Mashaba Manufacturing can achieve these objectives by offering attractive salaries, useful
benefits, bonuses, incentives, and programs to improve employee wellbeing. They can also
include retirement savings and insurance, which from the case study, these are already part of
the total rewards at the company, since the employees are the most paid in the market. It
therefore means that the objective of attracting and recruiting employees is being attained.
However, from my understanding of the case study, Mashaba Manufacturing is not
complying with the following:
Employee retention
Employee motivation
Employee equity
Cost efficiency
Once employees have been hired, it is important to ensure they remain within the
organisation. While attraction of human resources represents the stage that starts with one or
more job postings and it ends with new engagements for the organization, retention is an
effort made by the employer to keep employees willing to work for and achieve
organizational goals. Mashaba Manufacturing is failing to retain the employees that they
would have successfully attracted by their huge salaries. The case study states that Mashaba
Manufacturing’s remuneration structure is seriously out of date. They are paying the highest
wages in the industry, but steadily losing employees, because they don't think they are being
paid fairly. This shows an utter failure to use the advantages they have to retain their
HRM3705
OCT/NOV 2021 EXAM MEMO
SPECIFIC FOR JAN/FEB SUPP EXAMS
FOR FURTHER ASSISTANCE CONTACT:
THE BOOK FOUNDATION
+27 63 980 7442
, HRM3705_Exam_Sept_2021
QUESTION 1
The objectives of compensation management are to attract, engage, and retain employees
through competitive compensation plans that align with the company budget, corresponding
job-market, and government regulations. These objectives can be summed up as:
Attract and recruit talent (Employee attraction)
Employee retention
Motivate employees (Employee motivation)
Ensuring equity
Adhere to government regulations (labour legislation)
Cost efficiency
Mashaba Manufacturing can achieve these objectives by offering attractive salaries, useful
benefits, bonuses, incentives, and programs to improve employee wellbeing. They can also
include retirement savings and insurance, which from the case study, these are already part of
the total rewards at the company, since the employees are the most paid in the market. It
therefore means that the objective of attracting and recruiting employees is being attained.
However, from my understanding of the case study, Mashaba Manufacturing is not
complying with the following:
Employee retention
Employee motivation
Employee equity
Cost efficiency
Once employees have been hired, it is important to ensure they remain within the
organisation. While attraction of human resources represents the stage that starts with one or
more job postings and it ends with new engagements for the organization, retention is an
effort made by the employer to keep employees willing to work for and achieve
organizational goals. Mashaba Manufacturing is failing to retain the employees that they
would have successfully attracted by their huge salaries. The case study states that Mashaba
Manufacturing’s remuneration structure is seriously out of date. They are paying the highest
wages in the industry, but steadily losing employees, because they don't think they are being
paid fairly. This shows an utter failure to use the advantages they have to retain their
