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CMA812S - COMPESATION MANAGEMENT - 1ST OPP - NOV 2024 |
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nAmlBIA UnlVERSITY
OF SCIEn CE Ano TECHn OLOGY
FACULTY OF COMMERCE, HUMAN SCIENCESAND EDUCATION
DEPARTMENT OF GOVERNANCE AND MANAGEMENT SCIENCES
QUALIFICATION: BACHELOR OF HUMAN RESOURCESMANAGEMENT HONOURS
QUALIFICATION CODE: 08HRM
LEVEL: 8
COURSE CODE: CMA812S
SESSION: November 2024
COURSE NAME: COMPENSTION MANAGEMENT
PAPER: THEORY
DURATION: 3 HOURS
MARKS: 100
FIRST OPPORTUNITY EXAMINATION QUESTION PAPER
EXAMINER(S) Mr Elias Kandjinga
MODERATOR: Dr S. Amunkete
1. Answer ALL the questions.
INSTRUCTIONS
2. Question 1 &2 case studies is.an Annexure from pages 4-5 (these pages may be
removed for easier reading).
3. You are expected to apply your subject knowledge to the questions.
4. Write clearly and neatly.
5. Number your answers clearly.
PERMISSIBLE MATERIALS
1. Pen
2. Ruler
THIS QUESTION PAPER CONSISTS OF 5 PAGES (Including this front page)
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Section A (Answer all the questions)
Questionl
[50 marks]
Analyse the case study on pages 4-5 and answer all the following questions.
1.1. Discuss the significance of a TCTC remuneration strategy at Natives Oil and
Gas (NOG) PTY LTD
(10)
1.2. According to PWC (2022), "the Namibian Income Tax Act does not in principle
address the use and application of a Total-Cost-To-Company ("TCTC"}
package, but only the tax treatment of employment income and benefits".
Explain why it is a popular remuneration practice in Namibia despite statutory
inadequacies.
(10)
1.3. PWC (2022) argues that while the Namibian Income Tax Act prohibits basic
pay reductions because they may be considered salary sacrifices, the TCTC
approach perpetuates the salary sacrifice bottleneck. Describe the salary
sacrifice concept and demonstrate how it works in an example case with a
NOG employee.
(15)
1.4. NOG agreed to a Recognition and Procedural Agreement with the Mine
Workers Union (MUN) last year. The Union urged that NOG management
consider converting bargaining unit employees to a Basic plus benefits
remuneration model. The union claims that the TCTC strategy benefits the
business and those in management more and that industry norms support this
belief. You are an independent consultant hired by NOG to investigate the
possibility of a basic plus remuneration model. Provide management with a
summary report detailing your findings and recommendations for adoption.
(15)
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Section B (Answer all the questions}
[50 marks]
Analyse the case study on pages 4-5 and answer all the following questions.
Question 1
1.1. The case study above signposted the significance of some discretionary
benefits. In relation to the case study, discuss in detail the significance of
various discretionary & legal benefits offered and could be offered by Superior
Software Services and how the application of those benefits can enhance the
work and life experiences of Superior Software Services employees.
(15}
1.2. According to the case study, 'Joan believes that changing the time off policies
could reduce the number of unscheduled absences, but she is not sure if her
idea will address her concerns'. Why is Joan uncertain whether her idea to
change the paid off time will address the problem?
(8)
1.3. As a compensation professional you have observed that Joan company is
offering below markets benefits and pay in turn threatening their market share
in a highly competitive market. Recommend and justify to Joan the types of
incentives and benefits she can introduce to attract and retain executives and
below executive employees.
(12}
1.3. In a short summary, how did the Compensation Management course shape
your understanding of the compensation structure in the world of work? How
do you foresee applying what you have learned thus far? Here, you must
express your understanding in your own words and not list topics or themes
appearing in your prescribed course materials. Also, please note that this
question is twofold, the latter requiring you to relate theory to practice. {15)
End of Paper!
Total Marks: 100
Good Luck!
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Annexure 1: Questions 1 &2 Case Studies
Question 1 Case study
Natives Oil and Gas PTY LTD Remuneration Approach
Natives Oil and Gas (NOG) PTY LTD is a Namibian-owned firm that drills and explores crude
oil and natural gas in the Orange basin. It has also obtained an exploration license in the
Okavango Delta and found large oil discoveries awaiting economic viability confirmation. The
new discovery will significantly impact this young but competitive company's future growth
and operations. Given that the company has been operating for nearly three years, the
embryonic stage suggests that offering substantial salary packages to recruit local and
international talent is difficult. To achieve the strategic goal of expanding and diversifying
markets with multi-talented workforce, NOG adopted a Total Cost To Company (TCTC)
remuneration strategy tied to the early stages of the organisation's life cycle model.
Source: Assessor's own
Question 2: Case Study
Time off at Superior Software Services
As she hangs up the telephone, Joan Jackson realises that she needs to consider changing her
company's time-off policies. She just received a call from an employee reporting off work
because he is sick. This is the second employee on the same project team to call of this week
and the unscheduled absence will likely cause a delay in meeting the project deadline. Joan,
the president of Superior Software Services, is proud that her company has earned a
reputation for providing high-quality software solutions. Superior recruits and retains top
software engineers and also an impressive administrative staff. However, even with a
talented staff, Joan is concerned about the company's ongoing ability to meet project
deadlines.
Over the past few months, unscheduled absences have caused Superior to delay the delivery
of software products to a few clients. When a staff member calls in to take a sick day without
prior notice, shifting employees to cover the work to meet a deadline is difficult. Joan believes
Superior's time off policies may be causing some of their problems. Superior employees offer
7 vacation days and 5 sick days each year. The company has a policy that employees may use
sick days only for illness or emergencies. Employees may not schedule sick days in advance.
Vacation days are scheduled at the beginning of the year. Employees receive approval of their
requested vacation days on a seniority basis, so most employees designate the days they will
take their vacation leave within the first few weeks of a new year so they are able to plan
vacation travel effectively.
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'r
Joan believes Superior's current time off policy incentivizes employees to call off at the last
minute. She has learned from supervisors that many employees use their sick days to care for
personal business, such as attending parent-teacher conferences or running errands. These
events could often be pre-scheduled time off, but employees do not feel they have a time off
option to address such needs. Sick days can't be prescheduled, and vacation days are already
committed at the beginning of the year. Joan believes that changing the time off policies could
reduce the number of unscheduled absences, but she is unsure if her idea will address her
concerns. She is considering replacing the current vacation/sick day allowance with a paid
time off bank. Employees would receive 12 paid time off days each year. They would be
permitted to schedule preferred days off at the beginning of the year so that they can make
vacation travel plans. But the remaining days could be scheduled ahead of time to take care
of personal business. Joan believes this change will encourage employees to schedule their
time off in advance when possible. With advance notice of absences, supervisors can plan
projects and meet deadlines.
Martocchio (2011)
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