HRM313 TMA (Tutor-Marked Assignment) SUSS: July 2024- Total Reward Design and Management, Singapore

Instructions:

Question 1 [Total word limit of 2,500 words]

a) Provide a brief overview of Gerhart & Newman’s pay model; discuss what are the THREE (3) basic building blocks and its components within.

b) Company ABC is a small and medium enterprise in Singapore that provides IT infrastructure solutions, software & hardware products, and cloud services. The company’s business strategy focuses on innovation, quality, and customer satisfaction. The company currently uses a simple pay structure with minimal differential between job roles that resulted in dissatisfaction. While there are continuous responses to external market forces for staying competitive in the job market, the company’s compensation system has gaps to retain and attract talents. They include: –

•  Employees in the lower job grades are receiving more compensation in comparison to higher job grades.
• High turnover of top-performing employees in the company. They are leaving to join competitors for higher pay and benefits.
• Difficulty in attracting experienced job applicants to fill critical job roles. Prospective candidates are concerned with the compensation packages as they are largely below industry averages.
• Employees not contributing at work due to unfair distribution of bonuses and incentives.
• Employees not being informed adequately on how performance management plans work.

Examine and identify FIVE (5) challenges faced by Company ABC as a total rewards and compensation management specialist. Recommend FIVE (5) objectives and FIVE (5) approaches to redesign the compensation system using Gerhart & Newman’s (2023) Pay Model as a framework.

c) Analyse Company’s ABC business strategy and determine any FIVE (5) business performance indicators. Propose FOUR (4) pay-for-performance plans and justify your answers with a relevant motivation theory for each plan.

d) The pay-mix strategy adopted by the Company ABC’s industry is as follows: • Base Pay: 72% • Benefits: 20% • Bonus: 8%

As a total rewards and compensation management specialist, design and justify a paymix strategy to signal Performance Driven Culture, Work/Life Balance, Security (Commitment) and Market match each.

Question 2 [Total word limit of 1,500 words]

a) Provide an overview of how internal pay structure is defined by: –

• Number of levels of work;
• Pay differentials between the levels; and
• The criteria used to determine the number of levels of work and pay differentials. (10 marks)

b) The ministry of health had published salary guidelines for the community care sector to raise wages transparency in the sector with intentions to help organisations attract and retain talents in Feb 2024.