Compensation Management Question Paper
Compensation Management
Course:Bachelor Of Commerce
Institution: Kca University question papers
Exam Year:2010
UNIVERSITY EXAMINATIONS: 2009/2010
SECOND YEAR EXAMINATION FOR THE DEGREE OF BACHELOR OF
COMMERCE
CAM 209-H: COMPENSATION MANAGEMENT
DATE: AUGUST 2010 TIME: 2 HOURS
INSTRUCTIONS: Answer question ONE and any other TWO questions
QUESTION ONE
You have just been appointed as the Human Resource Manager of a leading car manufacturing
company that is currently changing from the traditional assembly line to team-based
manufacturing. Each team is composed of six members headed by a supervisor and is responsible
for the assembly of a complete car. Currently, shop-floor workers are paid a weekly wage based
on age, job description and the number of years they have worked for the company. Managers are
paid a monthly salary and an annual bonus determined by an assessment of their individual
performance during the previous year.
(a) Discuss how and justify why you would develop a more effective compensation and
remuneration strategy for this company based on the concept of Harmonisation – a
scheme that will enhance the multi-skilling of team members besides increasing
productivity and quality. [20 Marks]
(b) Discuss the importance of performance appraisal in compensation management?
[10 Marks]
2
QUESTION TWO
(a) Explain the impact of performance related pay to workplace productivity and organisational
commitment on the basis of Adams Equity theory of motivation. [14 Marks]
(b) Describe three key motivational influences to the design of salary systems. [6 Marks]
QUESTION THREE
(a) Discuss the impact of Frederick Taylor’s Concept of Scientific Management and Porter and
Lawler’s Model of Motivation on the modern day Performance Related Pay mode of
compensation. [10 Marks]
(c) Employee benefits are a key component of the employee reward scheme. Discuss. [10 Marks]
QUESTION FOUR
(a) Describe and justify the various methods used in the evaluation of jobs. [10 Marks.]
(b) Pay is considered as one of the most critical means of motivating employees. State the
circumstances in which pay ceases to be a motivator. [10 Marks]
QUESTION FIVE
(a) With illustrations from a company well known to you, discuss the ten key factors that
influence payment systems. [10 Marks]
(b) Describe the components of a good compensation package (10 Marks)
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