PLEASE ENSURE THAT YOU USE YOUR OWN WORDING ACCORDINGLY TO AVOID
PLAGIARISM. FAILING WHICH, YOU WILL EITHER GET 0 FOR YOUR ASSIGNMENT OR FACE
DISCIPLINARY ACTION.
COMPENSATION MANAGEMENT (HRM370-5)
ASSIGNMENT 2
SEMESTER 2 (2020)
TABLE OF CONTENTS PAGE NUMBER
DECLARATION .......................................................................................................................................... 1
QUESTION 1 .............................................................................................................................................. 2
QUESTION 2 .............................................................................................................................................. 7
QUESTION 3 ............................................................................................................................................ 10
BIBLIOGRAPHY ...................................................................................................................................... 14
i
,PLEASE ENSURE THAT YOU USE YOUR OWN WORDING ACCORDINGLY TO AVOID PLAGIARISM.
FAILING WHICH, YOU WILL EITHER GET 0 FOR YOUR ASSIGNMENT OR FACE DISCIPLINARY
ACTION.
DECLARATION
I know that plagiarism is wrong. Plagiarism is to use another’s work and pretend that it is one’s own.
I have used various citations and referencing. Each contribution and quotation in this assignment from
the works of other people has been attributed and has been cited and referenced, to the best of my
ability. I thus declare that this is my own work.
I have not allowed, and will not allow, anyone to copy my work with the intention of passing it off as
their own.
SIGNATURE DATE
DON’T FORGET TO ADD YOUR OWN BIBLIOGRAPHY USING THE HARVARD REFERENCING
METHOD, ENSURE THAT YOU INDICATE THE PAGE NUMBERS AS WELL.
PLEASE ENSURE THAT YOU CHANGE YOUR WORDING ACCORDINGLY TO AVOID PLAGIARISM.
FAILING WHICH, YOU WILL EITHER GET 0 FOR YOUR ASSIGNMENT OR FACE DISCIPLINARY
ACTION.
1
, PLEASE ENSURE THAT YOU USE YOUR OWN WORDING ACCORDINGLY TO AVOID PLAGIARISM.
FAILING WHICH, YOU WILL EITHER GET 0 FOR YOUR ASSIGNMENT OR FACE DISCIPLINARY
ACTION.
QUESTION 1
Distinguish between remuneration building blocks [6 marks] and the building blocks of a
remuneration strategy [5 marks]. In your answer, you need to briefly discuss each of these different
building blocks [14 marks]. (25)
Total for question 1: [25]
Remuneration Building Blocks
Refer to basic principles/components that remuneration systems should include. A remuneration system that
is not aligned internally and externally, does not recognise individual contributions and does not provide
employee benefits. It will also not enable the organisation to meet its remuneration objectives of fairness,
efficiency and compliance.
External competitiveness addresses pay relationships external to the organisation. The key to
competitiveness is its relative nature: comparisons with competitors. Although determining the pay level
versus competitors is a primary decision, competitiveness also includes choosing the most suitable mix of
pay. External competitiveness involves the comparison of the organisation’s pay levels with pay levels paid
by competitors in the same industry (Milkovich, Newman & Gerhart 2014). Comparisons are made with other
organisations that employ people with similar skills, responsibilities and education (Albornoz 2006). For
example, if the remuneration specialist is required to benchmark a salary for a plant engineer position,
he/she can compare the organisation’s initial offering to the remuneration offered to plant engineers by other
mines. Various factors, besides the salary, play a role in this comparison, as other forms of reward such as
employee benefits also influence the total amount offered as remuneration. External competitiveness
involves establishing what the market and similar industries are paying and deciding on a pay policy that
can set the scene as to how an organisation will remunerate its employees.
Internal alignment “refers to the pay relationships among different jobs/skills/competencies within a single
organisation”. It addresses the relationships among different jobs within a single organisation. The
relationships make up an internal structure. If focuses attention on the importance of designing a pay
structure that supports the workflow, is fair to employees and directs their behaviours toward organisation
objectives. Deciding how much to pay employees at different levels thus creates a pay structure. It is
important to understand that internal alignment is not only about pay differences for jobs in different
departments. Internal alignment applies to pay differences for employees doing equal work as well as to
those doing dissimilar work.
2
PLAGIARISM. FAILING WHICH, YOU WILL EITHER GET 0 FOR YOUR ASSIGNMENT OR FACE
DISCIPLINARY ACTION.
COMPENSATION MANAGEMENT (HRM370-5)
ASSIGNMENT 2
SEMESTER 2 (2020)
TABLE OF CONTENTS PAGE NUMBER
DECLARATION .......................................................................................................................................... 1
QUESTION 1 .............................................................................................................................................. 2
QUESTION 2 .............................................................................................................................................. 7
QUESTION 3 ............................................................................................................................................ 10
BIBLIOGRAPHY ...................................................................................................................................... 14
i
,PLEASE ENSURE THAT YOU USE YOUR OWN WORDING ACCORDINGLY TO AVOID PLAGIARISM.
FAILING WHICH, YOU WILL EITHER GET 0 FOR YOUR ASSIGNMENT OR FACE DISCIPLINARY
ACTION.
DECLARATION
I know that plagiarism is wrong. Plagiarism is to use another’s work and pretend that it is one’s own.
I have used various citations and referencing. Each contribution and quotation in this assignment from
the works of other people has been attributed and has been cited and referenced, to the best of my
ability. I thus declare that this is my own work.
I have not allowed, and will not allow, anyone to copy my work with the intention of passing it off as
their own.
SIGNATURE DATE
DON’T FORGET TO ADD YOUR OWN BIBLIOGRAPHY USING THE HARVARD REFERENCING
METHOD, ENSURE THAT YOU INDICATE THE PAGE NUMBERS AS WELL.
PLEASE ENSURE THAT YOU CHANGE YOUR WORDING ACCORDINGLY TO AVOID PLAGIARISM.
FAILING WHICH, YOU WILL EITHER GET 0 FOR YOUR ASSIGNMENT OR FACE DISCIPLINARY
ACTION.
1
, PLEASE ENSURE THAT YOU USE YOUR OWN WORDING ACCORDINGLY TO AVOID PLAGIARISM.
FAILING WHICH, YOU WILL EITHER GET 0 FOR YOUR ASSIGNMENT OR FACE DISCIPLINARY
ACTION.
QUESTION 1
Distinguish between remuneration building blocks [6 marks] and the building blocks of a
remuneration strategy [5 marks]. In your answer, you need to briefly discuss each of these different
building blocks [14 marks]. (25)
Total for question 1: [25]
Remuneration Building Blocks
Refer to basic principles/components that remuneration systems should include. A remuneration system that
is not aligned internally and externally, does not recognise individual contributions and does not provide
employee benefits. It will also not enable the organisation to meet its remuneration objectives of fairness,
efficiency and compliance.
External competitiveness addresses pay relationships external to the organisation. The key to
competitiveness is its relative nature: comparisons with competitors. Although determining the pay level
versus competitors is a primary decision, competitiveness also includes choosing the most suitable mix of
pay. External competitiveness involves the comparison of the organisation’s pay levels with pay levels paid
by competitors in the same industry (Milkovich, Newman & Gerhart 2014). Comparisons are made with other
organisations that employ people with similar skills, responsibilities and education (Albornoz 2006). For
example, if the remuneration specialist is required to benchmark a salary for a plant engineer position,
he/she can compare the organisation’s initial offering to the remuneration offered to plant engineers by other
mines. Various factors, besides the salary, play a role in this comparison, as other forms of reward such as
employee benefits also influence the total amount offered as remuneration. External competitiveness
involves establishing what the market and similar industries are paying and deciding on a pay policy that
can set the scene as to how an organisation will remunerate its employees.
Internal alignment “refers to the pay relationships among different jobs/skills/competencies within a single
organisation”. It addresses the relationships among different jobs within a single organisation. The
relationships make up an internal structure. If focuses attention on the importance of designing a pay
structure that supports the workflow, is fair to employees and directs their behaviours toward organisation
objectives. Deciding how much to pay employees at different levels thus creates a pay structure. It is
important to understand that internal alignment is not only about pay differences for jobs in different
departments. Internal alignment applies to pay differences for employees doing equal work as well as to
those doing dissimilar work.
2
