UNISA
HRM3705 Exam
2025 S1
Example of exam answers
, 1.1 Executive bonuses that are performance-based, are intended to compensate
executives for reaching financial and operational goals set by the organization, the
focus is on increased market share, maximization of profits and short-term
business results (Erasmus et al, 2019). These bonus structures could conflict with
ethical standards based on Ubuntu principles which emphasize shared
responsibility, community, human dignity and respect (Mbigi & Maree, 2005).
Fairness and transparency
Ethical reward under Ubuntu states that there must be fair treatment and
transparency for all stakeholders (Bussin & Diez, 2017). In this case, the
performance bonuses might have viewed us unfair when the organization is facing
a decline in store-level performance and job cuts that are affecting non-executive
employees. This could lead to a decline in trust which is in contradiction with the
Ubuntu principles.
Collectivism conflict versus individualism
Usually, performance bonuses are focused on individual performance or
achievement that encourages competition rather than collaboration amongst
executive employees (Newman, Gerhard & Milkovich, 2017). Under Ubuntu
principles, collective well-being is prioritized and therefore this conflict may cause
divided leadership and discourage teamwork which is in contradiction with
Ubuntu’s focus on unity.
Long term responsibility versus short term gains
By paying bonuses that are linked to short term financial gains, executives may be
encouraged to rather focus on immediate financial gains or profits rather than
focusing on long term practices such as employee wellness and community
engagement (Balnaves James, 2015). Under Ubuntu principles, dignity, respect,
fairness and social justice is valued and this requires the organization to find a
balance between economic or financial goals, with the welfare of employees and
1
HRM3705 Exam
2025 S1
Example of exam answers
, 1.1 Executive bonuses that are performance-based, are intended to compensate
executives for reaching financial and operational goals set by the organization, the
focus is on increased market share, maximization of profits and short-term
business results (Erasmus et al, 2019). These bonus structures could conflict with
ethical standards based on Ubuntu principles which emphasize shared
responsibility, community, human dignity and respect (Mbigi & Maree, 2005).
Fairness and transparency
Ethical reward under Ubuntu states that there must be fair treatment and
transparency for all stakeholders (Bussin & Diez, 2017). In this case, the
performance bonuses might have viewed us unfair when the organization is facing
a decline in store-level performance and job cuts that are affecting non-executive
employees. This could lead to a decline in trust which is in contradiction with the
Ubuntu principles.
Collectivism conflict versus individualism
Usually, performance bonuses are focused on individual performance or
achievement that encourages competition rather than collaboration amongst
executive employees (Newman, Gerhard & Milkovich, 2017). Under Ubuntu
principles, collective well-being is prioritized and therefore this conflict may cause
divided leadership and discourage teamwork which is in contradiction with
Ubuntu’s focus on unity.
Long term responsibility versus short term gains
By paying bonuses that are linked to short term financial gains, executives may be
encouraged to rather focus on immediate financial gains or profits rather than
focusing on long term practices such as employee wellness and community
engagement (Balnaves James, 2015). Under Ubuntu principles, dignity, respect,
fairness and social justice is valued and this requires the organization to find a
balance between economic or financial goals, with the welfare of employees and
1
