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HRM3705 Assignment 3 (DETAILED ANSWERS) Semester 2 2025 - DISTINCTION GUARANTEED

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HRM3705 Assignment 3 (DETAILED ANSWERS) Semester 2 2025 - DISTINCTION GUARANTEED - DISTINCTION GUARANTEED - DISTINCTION GUARANTEED Answers, guidelines, workings and references ,... Question 1 [15 marks] Complete the question by following the steps below. Step 1: Search the internet using any search engine (e.g., Google) to find information about current challenges in remuneration management that organisations are encountering in the 21st-century world of work. Step 2: Identify the most significant challenge (only one) organisations currently face regarding remuneration management. Step 3: Summarise the information you found in your own words by addressing the following: (a) Identify the remuneration management challenge (1 mark). (b) Discuss the challenge in your own words (2 marks). (c) Link this challenge to one of the factors influencing remuneration (3 marks). (d) Explain the potential implications of this challenge on an organisation's remuneration strategy (2 marks). [8] Step 4: Provide suggestions from an HR perspective on how organisations can mitigate or reduce this remuneration management challenge. [3] HRM3705: Assessment 03 Semester 02 (2024) 8 © UNISA 2024 Step 5: In this step, you need to provide the following as proof of your search: • A screenshot, snippet or photo of the website you consulted (1 mark) and the date you accessed the website (1 mark). [2] • The URL (link) to the website. [1] • Reference your sources and include them in a reference list. [1]Mpofu Cleaning Centre is a medium-sized commercial cleaning company operating across urban centres in South Africa. It employs over 400 staff, the majority of whom are unionised under the General Services Workers Union (GSWU). Recently, the company introduced a new performance-based reward system aimed at increasing productivity and reducing absenteeism. However, the GSWU has raised concerns that the system promotes individual competition, lacks transparency, and undermines fairness. Union representatives argue that such a system may negatively affect teamwork and morale. The HR Director has now sought the guidance of a remuneration consultant to advise on the implications of union influence on the organisation’s remuneration system and structure. This case study was developed using OpenAI's ChatGPT (2025) as an AI-assisted instructional resource. 1.1 Critically analyse how union involvement is likely to influence the design and structure of the remuneration system at Mpofu Cleaning Centre [6 marks], considering the nature of its workforce and operational context [2 marks]. (8) 1.2 Evaluate the strategic role of the union in shaping the level of remuneration and bargaining outcomes at Mpofu Cleaning Centre, with reference to collective bargaining, labour market dynamics, and demand-side strategies. Question 2 [15 marks] Mpofu Cleaning Centre is a medium-sized commercial cleaning company operating across urban centres in South Africa. It employs over 400 staff, the majority of whom are unionised under the General Services Workers Union (GSWU). Recently, the company introduced a new performance-based reward system aimed at increasing productivity and reducing absenteeism. However, the GSWU has raised concerns that the system promotes individual competition, lacks transparency, and undermines fairness. Union representatives argue that such a system may negatively affect teamwork and morale. The HR Director has now sought the guidance of a remuneration consultant to advise on the implications of union influence on the organisation’s remuneration system and structure. This case study was developed using OpenAI's ChatGPT (2025) as an AI-assisted instructional resource. 1.1 Critically analyse how union involvement is likely to influence the design and structure of the remuneration system at Mpofu Cleaning Centre [6 marks], considering the nature of its workforce and operational context [2 marks]. (8) 1.2 Evaluate the strategic role of the union in shaping the level of remuneration and bargaining outcomes at Mpofu Cleaning Centre, with reference to collective bargaining, labour market dynamics, and demand-side strategies. This question was based on the following case study: Remuneration Inequities at ProTech Industries Jabu Mokoena was contemplating addressing a significant salary issue at ProTech Industries. Mokoena recently assumed the role of CEO, taking over from the founder, Sipho Mahlangu, who led ProTech for 20 years. ProTech Industries, a family-owned business in a small rural town in Eastern Cape, employed around 250 people and was the town's largest employer. Although Mokoena was part of the family and one of the owners, he had not worked at ProTech before becoming CEO. His background included an MBA, a law degree, and five years of management experience in a large manufacturing firm, where he had served as the Human Resources Director. Critically analyse the strategic and operational consequences of [Show less]

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HRM3705
Assignment 3 Semester 2 2025
Unique #

Due Date: 12 September 2025

Detailed solutions, explanations, workings
and references.

+27 81 278 3372

, QUESTION 1

1.1 Union influence on remuneration system design at Mpofu Cleaning Centre

At Mpofu Cleaning Centre, the role of the General Services Workers Union (GSWU)
is likely to have a strong effect on how the remuneration system is structured. Since
most employees are unionised, the organisation cannot ignore collective concerns
when introducing pay models. Unions emphasise fairness, equity, and transparency,
which means that any system viewed as undermining teamwork or rewarding
individuals unfairly will face resistance. A performance-based system may clash with
union values if it promotes competition over cooperation, especially in a labour-
intensive service industry where teamwork is critical (Coetzee et al, 2020).

The union will also push for collective rewards, such as across-the-board increases,
cost-of-living adjustments, and benefits that support workers’ wellbeing. This
pressure could lead management to blend individual incentives with group-based
rewards, ensuring that productivity goals align with equity and fairness. In addition,
unions may insist on transparent evaluation criteria, grievance procedures, and
consultation rights before remuneration policies are finalised.

In the context of Mpofu Cleaning Centre, where employees perform relatively low-
paid, manual work, unions will be especially sensitive to systems that risk widening
income gaps or discouraging solidarity. The design of the remuneration structure will
therefore need to combine fair base wages, transparent bonus criteria, and non-
monetary benefits such as medical aid or leave provisions. Ultimately, union
involvement forces management to balance efficiency goals with equity and morale,
ensuring that the system gains legitimacy among the workforce while avoiding
industrial conflict (Coetzee et al, 2020).




1.2 Strategic role of unions in shaping remuneration outcomes

The General Services Workers Union (GSWU) plays a strategic role in influencing
pay levels and bargaining outcomes at Mpofu Cleaning Centre. Through collective
bargaining, the union negotiates with management to secure minimum wages,



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