BSBHRM505 MANAGE

REMUNERATION AND
EMPLOYEE BENEFITS

INDIVIDUAL
ASSESSMENT
ASSESSMENT: 40%

Peni Qativi
20190001139
Semester 2
2019
QUESTION 1 (10mks)
i. How can you ensure that employees are paid fairly and at a competitive rate?
(3mks)
Employee pays are calculated in many ways and with regards to many factors.
The HR department may consider the following to ensure that employees are paid
fair and competitive rates:
* External Competitiveness- putting together some policy lines and putting
together a page structure, which is a series of salary ranges with a minimum,
midpoint, and a maximum.
*Employee Contributions- Some organizations will also use things like merit
guidelines to distribute their pay increases versus their results and where they’re
paid and their salary ranges. Businesses or employers would want to utilize
incentive plans, like short-term incentive plans, long-term incentive plans, and
bonus plans to reward people’s results for the objectives that they’ve achieved.
*Pay System- Administering a pay system using tools like salary planning, where
you plan out where people are going to be paid over the next year, and salary budgeting.
This helps to really look at what’s going on in the external marketplace and
deciding how much you’re willing to spend. Then you’ll want to communicate
openly to employees how you’re implementing Program Evaluation.

Finally, evaluating the entire program, looking at each component and deciding if
it’s working. Once all of these things are done, then HR shall have a sound
compensation system and ensure that employees are paid fairly.

ii. What are the consequences of having a poor pay and remunerations
structure within the organization? (3mks)
An employee’s behavior adds expected value to the organization – that is, an
employee’s behaviors may be distinguished as helping or hindering an
organization, but the outcomes of employee behaviors are rarely measured so their
value is merely expected.
Some consequences of poor pay and remuneration structure within the
organization can be:
1. Employees may not utilize their potential to the maximum
In our ever-changing business world today, there are only so many people with the
necessary skills to excel in certain roles. One of the most effective ways to attract
these people is through high pay. Offering an above-average salary will help lure
A players who can significantly impact the productivity.
2. It creates a lower level of output.

By paying employees below-average salaries, employees would essentially create

below-average work. While pay and benefits may not always be the biggest
motivators for employees, they certainly help.
The truth is that higher salaries tend to incentivize a culture of high output. When
people perceive that they are getting paid more than their counterparts at other
 companies, it often compels them to expend extra effort. They will work harder to
demonstrate that they deserve that money.

3. Employers may need more employees to accomplish necessary tasks.

When employees are not paid well, they tend to reduce productivity levels and as
a result, employers may be compelled to hire more workers to get tasks
completed.

4. Employer of Choice
Word-of-mouth recruiting may not improve. Highly compensated employees in a
high-output environment may be happier with their job, especially if they enjoy
the work. Assuming that you work hard to engage these employees meaningfully,
they may be thrilled to be at your company and if poorly paid would seek greener
pastures.

iii. You have been given the following tasks by your manager to streamline the
remunerations and benefits process in your company. These tasks are:
 Maximizing employee productivity
Encourage employees to turn off their mobiles but take regular breaks during which they can
be free to check their phones. This will ensure that the time spent at their desk is more
productive.
Providing employees with the right tools and equipment is important so they can perform
their duties efficiently and on time.
 Improved employee engagement
Encourage flexibility
Promote taking breaks
Asking for feedback from employees
 Greater achievement of business and strategic goals

Ensure every goal ties back to mission and vision of the organization.

 Ensuring continuous improvements to the business processes

Reduce costs by cutting down on expenses
Improve customer experience and revenue (4mks)
QUESTION 2
(6mks)
Explain the following in context of understanding your organization with relevant examples.
 Strategic and operational plans
A strategic plan is developed to help the organization achieve its long-term vision.
Conversely, operating plans involve the process of deciding what needs to be done to achieve
the tactical objectives of the business. Operational planning is done to support strategic
planning efforts.

 Performance management systems and processes

Performance management is a shared understanding about how individuals contribute to an
organization's goals. An effective performance management and appraisals process focuses
on aligning your workforce, building competencies, improving employee performance and
development, and driving better business results.

 Organizational culture
Organizational culture is a system of shared assumptions, values, and beliefs, which governs
how people behave in organizations. These shared values have a strong influence on the
people in the organization and dictate how they dress, act, and perform their jobs.

 Employee value proposition

An employee value proposition is the unique set of benefits which an employee receives in
return for the skills, capabilities and experience they bring to a company. An employee value
proposition is about defining the essence of your company - how it is unique and what it
stands for.

 Employee engagement
Employee engagement is the extent to which employees feel passionate about their jobs, are
committed to the organization, and put discretionary effort into their work.

 Relevant organizational policies and procedures

Policies and procedures are designed to influence and determine all major decisions and
actions, and all activities take place within the boundaries set by them. Procedures are the
specific methods employed to express policies in action in day-to-day operations of the
organization.
QUESTION 3
(4mks)
Select an organization of your choice. Identify at least four practices and characteristic which
make the company and employer of choice. Make sure your examples and explanations are
specifically for the organization chosen.

An employer of choicer is an organization that recognizes and which have developed leading
workplaces that maximize the full potential of their workforce through practices that
demonstrate effective employee recruitment, engagement and retention.

Some characteristics of an employer of choice may include the following:

• Allowing staff to work more flexible work hours
• Enabling employees to gain additional annual leave by trading some of their
salary
• Encouraging long service leaves at an earlier time than required by legislation
• Providing job swap arrangements
• Assisting in establishing cadetship, graduate programs, funding of trainees, etc
• Providing improved career subsidies, such as care’s leaves
• Maintaining relationships with retired employees by using their knowledge for
mentoring, training and development.
• Encouraging the development of new nearby childcare centers, or to provide
their own child monitoring services.

An employer of choice that I would discuss about would be Fiji Airways:

It has many employees from managing director, CEO, to general manager, managers, and
front desk agents to air hosts / hostess.
The employees are well covered under the policies provided by the company related to health
and safety.

Additionally, it provides for flexible work hours and also rewards its employees at the end of
the financial year with free tours and destination holiday packages depending on the
productivity level of the employee. Feedback from customers and employees play a vital role
in the improvement process.

For an airline that was started by an acclaimed air navigator, inventor, airline manager,
plantation baron and legislator, Fiji Airways has grown into Fiji’s proud flag carrier.  From
flying De Havilland Dragon Rapide in those days to the new Airbus 330-200 jets of today,
the airline has truly come of age. It boasts a strong position within the region, and is often
ranked among the region’s top carriers.
 QUESTION 4 (5mks)
Develop a model of an organization’s performance review cycle and discuss the components
in detail.
Performance Development Planning

*Includes objectives and indicators

* Discuss expectations and development needs

Rewards and recognition Ongoing Discussions

*Feedback and discuss progress

* Update objectives

Performance Development
review
*Review past performance
* Discuss development opportunities and career aspirations

The planning stage of the performance management cycle involves both the employees and
managers. On this stage, the manager and employee agree what the employee must
accomplish, to what standard (for example, the sales goals), and identify how results will be
measured. So, the first stage of the performance management cycle is dedicated to identifying
the employee’s job description and work plan and the company's goals and objectives, and
strategic plan.

Employee performance and progress should be continuously monitored. Managers focus their
attention on the achieved results, individual and team dynamics affecting the work
environment. In the second stage of the performance management cycle, the employee and
manager track the employee’s development and performance. If it is necessary, the
employee’s performance plan is corrected to meet the changed circumstances.

On the third stage of the performance management cycle, the employee’s accomplishments
and standards that have been agreed at the first stage are analyzed by the manager and
employee. They also consider what new the employee has studied and how his/her
knowledge can be effectively used within the employee’s current position and in the future
company's jobs. They come to terms about how well the employee performed during the last
period and what he/she needs to consider for achieving the future work standards and goals.
The manager conducts the evaluation of the employee’s performance, especially if decisions
about the employee’s employment, compensation, or rewards must be made.

The final step is improving employee performance, and to do that effectively is possible only
through understanding reasons why employees are not performing at the optimal level. It
could be valid reasons, removal of which is a key for fixing the issue without employee
replacements. Managers should keep an open mind to discuss concerns without jumping to
conclusions. Clear direction about the responsibilities, job priorities, and expectations of
employee achievement as well as keeping clear accountabilities in every activity are
necessary.
QUESTION 5
(5mks)
Complete the following salary packaging table:

WITH SALARY PACKAGING WITHOUT SALARY

PACKAGING

Gross Monthly Salary $4,200.00 Gross Monthly Salary $4,200.00

Car Parking $200.00
Taxable Salary $4200 Taxable Salary $4000

Less: Less:
Tax Payable $745.00 Tax Payable $1270.00
Car Parking $200.00

Net Salary $39060 Net Salary $32760

(3255*12) (2730 * 12)

Monthly Earnings – $4199.00

With tax free threshold - $745

Without tax free threshold - $1270

QUESTION 6 (10mks)
 Use the information given below to answer the questions that follow.
Weekly Wage budget - $2500.00
RESOURCES

EMPLOYEE HOURLY RATE

MIKE $15.60
JANICE $14.80
KEN $12.40
ADAM $13.90

WEEKLY ROSTER
EMPLOYEE MON TUE WED THUR FRI SAT SUN
MIKE 4-10PM 4-10PM 4-11PM 4-11PM 4-8PM
JANICE 4-10PM 4-10PM 4-11PM 4-11PM 4-11PM
KEN 4-10PM 4-10PM 4-11PM 4-11PM 4-11PM
ADAM 4-10PM 4-10PM 4-11PM 4-11PM 4-11PM

FILL IN THE COSTING TABLE BELOW

Employee Hourl MON TUE WED THU FRI SAT SUN TOTAL
y
Rate
MIKE Hours 6 6 7 7 4 30
Gross $93.6 $93.60 $109.20 $109.20 $62.40 $468
Wage 0
JANICE Hours 6 6 7 7 7 33
Gross $88.80 $88.80 $103.60 $103.60 $103.60 $488.40
Wage
KEN Hours 6 6 7 7 7 33
Gross $74.40 $74.40 $86.80 $86.80 $86.80 $409.20
Wage
ADAM Hours 6 6 7 7 7 33
Gross $83.4 $83.40 $97.30 $97.30 $97.30 $458.7
Wage 0
Total 12 12 6 18 28 28 25 129
Hours
 Total $177 $163.20 $83.40 $256.80 $396.90 $396.90 $350.10 $1824.30
Wages

Is the weekly wage budget manageable?

Yes.
Why?
Because the company only spends $1824.30 per week which is less than the weekly wage
budget of $2500. So the Company saves $675.70 per week ($2500 - $1824.30).
 REFRENCING

Douglas, S. (2010). The Different Faces of Diversity: The Professional Principles of

Recruiting and Retaining a Diverse Work force.

Hanson, D., Dowling, P., Hitt, M. A., Ireland, R. D. and Hoskisson, R.E. (2008) Strategic
Management: Competitiveness and Globalisation , Pacifi c Rim Third Edition , Melbourne,
Thomson, p. 23.

Patmore, G. (1994), ‘“American hustling methods” – the Lithgow Small Arms Factory 1912–
1922’, Labour History (67), pp. 42–56.
Labour History (67), pp. 42–56.
Patmore, G. (1994), ‘“American hustling methods” – the Lithgow Small Arms Factory 1912–1922’,
Labour History (67), pp. 42