Compensation & Benefits
April 2022 Examination
NMIMS Global Access
School for Continuing Education (NGA-SCE)
Course: Compensation & Benefits
Internal Assignment Applicable for April 2022 Examination
1. Describe what compensation is and give at least three examples of core compensation
practices followed in organizations. (10 Marks)
2. Explain how internally consistent compensation systems and competitive strategy relate to
each other. Explain the basic building blocks of compensation system. (10 Marks)
3. As the Office Manager at Custom Carpet Cleaning, Bob Huffman must handle a wide range
of responsibilities. As the company has grown to over fifty employees, the human resource
management practices of the company have become a more significant part of his role. Bob
has had little formal education or training in human resources management, but works hard
to ensure that the company manages its’ staff effectively. With a new fiscal year
approaching, Bob is examining many aspects of the company’s budget. As he reviewed the
payroll budget, he noted some wide variations in pay rates of the carpet cleaners across the
company’s seven locations. He also noted that some of the pay rates seemed to be higher
than what the competition pays. Pay rates and pay increases are determined at each location
by the local supervisor and as a result, there is not consistency in the company’s pay
practices. Some of the pay differences may be justified. Different locations work on different
types of assignments and the jobs the carpet cleaners do may be different. For example,
some locations work primarily at residential clients. Cleaners at these locations work
directly with the clients and need strong sales and customer service skills in addition to
carpet cleaning skills. Whereas locations that work primarily on commercial property have
very little client contact, but they face tougher cleaning challenges and must have stronger
technical skills. However, Bob does not have a good understanding of which locations have
which kinds of responsibilities. He has done some research online and believes that a good
starting point for examining the company’s compensation practice would be to conduct a
job analysis and create written job descriptions. Based on what he learned through his
research, he has decided to create a questionnaire to complete the job analysis process and
he will ask one cleaner from each location to complete it. The questionnaire asks the
employee to explain the tasks they complete and how they complete them. It also asks the
employee to describe any equipment used. Bob plans to use the information collected in the
questionnaires to create written job descriptions. Once he has the job descriptions complete,
he will use them to help determine if internal pay rates are consistent and if the company is
paying competitively in the market.
a. Which job evaluation technique do you think Bob should use when he gets to that step?
Why? (5 Marks)
b. Make a final recommendation. What should Bob’s approach be (market meet, market
lag, market lead)? (5 Marks)
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