REMUNERATION MANAGEMENT
(HRM3705)
ASSIGNMENT 02
SEMESTER 01 -2022
1
, Introduction
For South African organisations to succeed both locally and internationally, highly skilled,
independent, and internationally marketable individuals must be retained. Having the appropriate
skill complement across a range of occupations and professions, as well as the ability to drive
leadership in organisations, is an important component that contributes to a country's
competitiveness. Before implementing these policies, each organisation must develop its own
policy regarding such types of benefits, as well as conduct its own cost and HR needs analysis.
From a macro perspective, the ability of South African organisations to retain talent within the
country remains a challenge. This essay will go over financial rewards, the business life cycle,
DMC pay policy, the mean, median, 4th percentile, and discrimination.
QUESTION 1
As you have learned in the prescribed book, remuneration consists of two main categories.
Discuss financial rewards [10 marks] and support your answer with appropriate examples from
the scenario
[15 marks]. (25)
Financial Rewards: Financial rewards are monetary forms of pay that an employer provides to
employees. These funds or rewards are spent by the employer. Financial rewards include all cash
payments made by the employer on behalf of its employees, such as base salary, pay-
forperformance, and employee benefits (Armstrong, 2012 as cited in Coetzee, Bezuidenhout,
Furtak and Lee, 2020). For a very long period of time, it was commonly thought that financial
rewards (incentive) was the most powerful motivator. People went to work and did a good job in
order to be paid a fair wage. If they work hard and long enough, that wage would increase,
giving them additional pay.
Direct remuneration:
The direct payment of employees for services rendered is referred to as direct compensation. It
consists of a base salary, overtime pay, commission, bonuses, and other incentive payments.
Salaries or wages, incentive payments such as bonuses and commissions, and other monetary
2
(HRM3705)
ASSIGNMENT 02
SEMESTER 01 -2022
1
, Introduction
For South African organisations to succeed both locally and internationally, highly skilled,
independent, and internationally marketable individuals must be retained. Having the appropriate
skill complement across a range of occupations and professions, as well as the ability to drive
leadership in organisations, is an important component that contributes to a country's
competitiveness. Before implementing these policies, each organisation must develop its own
policy regarding such types of benefits, as well as conduct its own cost and HR needs analysis.
From a macro perspective, the ability of South African organisations to retain talent within the
country remains a challenge. This essay will go over financial rewards, the business life cycle,
DMC pay policy, the mean, median, 4th percentile, and discrimination.
QUESTION 1
As you have learned in the prescribed book, remuneration consists of two main categories.
Discuss financial rewards [10 marks] and support your answer with appropriate examples from
the scenario
[15 marks]. (25)
Financial Rewards: Financial rewards are monetary forms of pay that an employer provides to
employees. These funds or rewards are spent by the employer. Financial rewards include all cash
payments made by the employer on behalf of its employees, such as base salary, pay-
forperformance, and employee benefits (Armstrong, 2012 as cited in Coetzee, Bezuidenhout,
Furtak and Lee, 2020). For a very long period of time, it was commonly thought that financial
rewards (incentive) was the most powerful motivator. People went to work and did a good job in
order to be paid a fair wage. If they work hard and long enough, that wage would increase,
giving them additional pay.
Direct remuneration:
The direct payment of employees for services rendered is referred to as direct compensation. It
consists of a base salary, overtime pay, commission, bonuses, and other incentive payments.
Salaries or wages, incentive payments such as bonuses and commissions, and other monetary
2
