Question 1 5 marks

Mr Grayson wants to implement a pay programme where his employees compensation will be determined by differences in job performance. Under this pay programme employees get permanent increases to their base pay based on their performance. He intends to use performance appraisals to ensure that the pay programme is successful. He wants to ensure that employees are able to see the link between their performance and their pay increases.

1A. Identify the type of pay programme in the above scenario. 1 Mark

1B. Explain why performance appraisal would be crucial to this type of pay programme. 4 Marks

Question 2 7 marks

Two Jamaican firms are engaged in the manufacture of sweets and other confections for the local and export markets. They were both finalists in the Up and Coming New Businesses competition run by a local TV station. Both have strategic objectives of developing new products and expanding their production with the prize money. One has decided to position itself as a cost leader, while the other has chosen a differentiation strategy.

Explain each competitive strategy AND assess which strategy would best facilitate the achievement of the stated strategic objectives.

Question 3 7 marks

INSTRUCTIONS: In no more than a page discuss the following.

Based on your studies in the module what do you think is the role of money as a determinant of a persons satisfaction at work and with life in general? Should organizations worry about this issue? Discuss

Question 4 6 marks

L.W. Skinner & Associates is a company well known for its SKIN-PRO fabric for fire retardant protective outerwear. One of SKIN-PROs hallmarks is innovation. Rather than job titles, bosses, and organization charts, SKIN-PRO uses a team approach, with leaders, sponsors, and team members.

The goals of SKIN-PROs compensation plan are internal fairness and external competitiveness. The company uses two approaches to achieve these goals. The first is straightforward and typically used by companies: comparing pay at their company with pay for comparable jobs at other companies. That takes care of the external competitiveness part. The company does not use Job descriptions. For the internal competitiveness the process works like this: Associates (co-workers) on the same team rank each other based on contributions to the company for the year. Team members can provide comments to support their rankings and identify strengths or areas for improvement of the associates they rank. This information is then used for determining raises.

Assess SKIN-PROs methodologies for achieving its goals of internal fairness and external competitiveness.