QUESTION 1 (20 MARKS)

Your staff will typically value their salary above the other outputs. And so, salary concerns count for many examples of inequity among employees everywhere. If one of your team feels like their contributions, time, and effort are not earning the rewards they should beespecially when they think that colleague X, who earns a higher salary despite doing a similar job, does less workyou can expect a reaction. Your employee might begin to perform their work at a lower level. They might become unfriendly, even hostile, towards their co-workers or your management team. They might start looking for other jobs. Remember, your staff can experience a feeling of inequity without you changing their terms or their working conditions, and without you changing how you interact with themif they think youre treating their colleagues better than them.

Based on the scenario,

1. How would you design a fair compensation for your employees? Justify your reasons with appropriate example.

(10 marks)

2. Explain the role of employee participation in compensation decision-making. What led you to that belief?

(10 marks)