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HRM3705 ECP Asssignment 02 2021
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Assignment HRM3705 ECP Asssignment 02 2021
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HRM3705 ECP Assignment 2 Sem 1 20211.1 From the case study, Posh Shoes wants to reward employees for their skills and
knowledge. (a) Identify [ 1 mark] and discuss [2 marks] the type of pay-for-
performance plan that would allow Posh shoes to reward employees for their skills and
knowledge. (3)
Skills based pay. This is a remuneration system where employees are paid on the basis of the
number of job skills they have acquired and it also refers to a structured framework which
allows employees to paid in a way that encourages them to develop the skills and
competencies an organisation deems as important.
(b) Explain to the management of Posh Shoes the criteria that would be needed to
introduce the pay-for-performance plan as identified in 1.1 (a). (2)
Employees must be able to see the link between the work they are doing and the reward they
are receiving. If they cannot see this link, pay-for-performance plans will fail to motivate
them.
1.2 Explain to Thandi the internal factors that could affect the implementation of a new
remuneration programme within Posh Shoes [12 marks]. Apply your answer to the case
study [8 marks]. (20)
The internal factors that could affect implementation of new remuneration programs would
be organisational culture and values, organisation’s business, organisation strategy, people,
work environment or ability of the organisation to pay. I will explain the following internal
factors within posh shoes, which may affect implementation of remuneration programs:
Organisational culture and values
An organisation’s remuneration practice needs to reflect its culture and values. These values
and culture will indicate to employees what is expected of them. When starting a business,
one of the first things you need to do is decide on the type of organizational culture that you
use to make decisions about the way your business is structured and the way that people
interact with one another. Organizational culture includes an organization’s expectations,
experiences, philosophy, as well as the values that guide member behavior, and is expressed
in member self-image, inner workings, interactions with the outside world, and future
expectations. Culture also includes the organization’s vision, values, norms, systems,
, symbols, language, assumptions, beliefs, and habits. Hence if employees at Posch do not
understand the culture or if the culture is not communicated well the implementation of new
remuneration programmes may fail.
Work environment
The manner in which work is structured will influence the implementation of new
remuneration
programs. Working environment is a broad term and means all your surroundings when
working. Your physical working environment is, for example, your work tools as well as air,
noise and light. But your working environment also includes the psychological aspects of
how your work is organised and your wellbeing at work. Employees that are required to sell
products to customers are normally paid on a commission basis.
Ability of the organisation to pay
The financial resources that the organisation has will influence the new remuneration
program because the organisation needs to be in a position where they are able to pay. This
means that in coming up with the remuneration the organisation needs to consider if they will
be able to remunerate or not according to what the organisation affords. The economic
condition may affect the organisations ability to pay. The organisation’s financial resources
are a result of earned profits and the productivity of its employees.
Organisation’s business
I will further explain to Thandi that the business sector may also influence the new
remuneration program. The type of remuneration will differ based on the sector. Examples of
sectors are mining, construction, education, telecommunication and Healthcare. In cases of
employees who work for manufacturing companies the organisation needs to provide
overtime allowance to the employees. This means that Posh shoes have to also consider this
because according to the case study, It manufactures and sells athletic shoes for all types of
sports. Posh Shoes is situated in Polokwane, Limpopo.
People
Organisations consist of people with different needs. The older employees have their own
preferences and the younger ones have their own preferences too. Though it’s not possible to
meet every individual’s needs the organization can offer different remuneration packages for
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