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CMA812S - COMPENSATION MANAGEMENT - 1ST OPP - NOV 2025 |
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nAmlBIA UnlVERSITY
OF SCI En CE Ano TECH n OLOGY
FACULTY OF COMMERCE, HUMAN SCIENCES AND EDUCATION
DEPARTMENT OF GOVERNANCE AND MANAGEMENT SCIENCES
QUALIFICATION: BACHELOR OF HUMAN RESOURCES MANAGEMENT HONOURS
QUALIFICATION CODE: 08HRM
LEVEL: 8
COURSE CODE: CMA812S
SESSION: November 2025
COURSE NAME: COMPENSTION MANAGEMENT
PAPER: THEORY
DURATION: 3 HOURS
MARKS: 100
FIRST OPPORTUNITY EXAMINATION QUESTION PAPER
EXAMINER(S) Dr S. Amunkete
MODERATOR: Ms C. Kasuto
1. Answer ALL the questions.
INSTRUCTIONS
2. You are expected to apply your subject knowledge to the questions.
3. Write clearly and neatly.
4. Number your answers clearly.
1. Pen
2. Ruler
PERMISSIBLE MATERIALS
THIS QUESTION PAPER CONSISTS OF 6 PAGES (Including this front page)
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Section A (Answer all the questions)
Question 1
[45 marks]
Read the following case study and answer all the following questions.
Green Energy is a public enterprise that operates in a highly competitive market characterised
by the war for talent. The enterprise took the decision to introduce a salary grading and the
performance management system . The company contracted a renowned driver of business
& HR strategy globally to oversee the implementation of the two systems albeit the company
having a fully-fledged HR department including a Remuneration Specialist. The decision to
use an external consultant was criticised by many, including employees citing that the
company wasted resources by hiring an external consultant to implement the two systems
while the company has experts on its establishment idling.
The Remuneration Specialist also had a negative view of the decision, believing that their role
has been relegated to that of bystander at a time when their expertise is required. After
establishing the practitioner-client relationship, the consultant hit the ground-running. First,
they started with the review of job descriptions, interviewed job incumbents before grading
each position. This phase was welcomed by employees as they felt they had been underpaid
for a long time.
After completing phase 1, the next phase was the performance management system . This
phase was not as smooth as the previous phase due to resistance from employees including
some managers. They viewed the system to control and micromanage them although they
are performing and meeting their targets daily. Performance wise, the company has not been
doing well and has been receiving government bailouts since. The external consultant roped
in the internal Remuneration Specialist sometime later in the project to play an administrative
role, assist in project meeting briefings and to champion the change as a role model.
Source: Assessor's own
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Questions
1.1. Discuss the significance of job evaluation at Green Energy and justify why the
company embarked upon the job evaluation project even after an outcry from key
stakeholders that the project is very expensive and thus not necessary. (10)
1.2. Demonstrate the relationship between Job evaluation and performance
management and how the two concepts can improve Green Energy employee value
proposition.
(10)
1.3. Why do you think Green Energy employees favoured a job grading exercise over a
performance management system?
(10)
1.4. Assuming you are Green Energy Remuneration Specialist, you later observed that
the external consultant recommended a traditional pay structure to be adopted.
Advise the consultant why the suggested pay structure is not suitable. Equally,
suggest a suitable pay structure with a clear justification.
(15)
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Section B (Answer all the questions)
Question 1
[55 marks]
Read the following case study and answer all questions that follows
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 in order 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 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 effectively plan vacation travel.
Joan believes Superior's current time off policy creates an incentive for employees to call off
at the last minute. She has learned from supervisors that many employees use their sick days
to take care of personal business such as attending parent-teacher conferences or running
personal errands. These are often events that could 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
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changing the time off policies could reduce the number of unscheduled absences, but she is
not sure 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 will be able to plan projects and meet deadlines.
Martocchio {2011)
Questions
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 work and life experiences of Superior
Software Services employees.
(20}
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's 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? Do you foresee
applying what you have learned thus far, how? Here, you are required to express your
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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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