Middle East College HR Executives ?Compensation and Performance Management Questions Learning Outcomes
1. Assess the relative merits of compensation to be used as competitive advantage for the organisation.
2. Discuss the role of compensation management as part of the new mandate for HR executives.
a) Al Mazoon Establishment produces air conditioning ducts for its projects division. Salim is paid fixed monthly wage of 350 OMR on Time-Wage plan basis. However, the company is planning to introduce Piece-Wage plan wherein worker shall be paid on the basis of productivity of 1.500 OMR per duct. If Salim produces 170 pieces per month, does he benefit from Piece-wage plan and why?
b) Discuss any 3 differences between Time Rate and Piece Rate systems of compensation?
c) Write a short note on Minimum Wage Act in Sultanate of Oman.
Al Samail Trading & Contracting is in the business of selling ceramic tiles and bathroom fittings in the Al Batinah area. It has been facing high attrition in its sales department as the civil construction sector is doing very well and there is a demand for experienced sales staff with proven track record in the local market. Recently company lost its Asst Manager to a competitor and was forced to make an attractive offer to Mohammed Al Amri who has been a top performer at Al Nasr Ceramic Tiles. How-ever, the compensation offered to Mohammed is 20% higher (otherwise, Mohammed would not take the offer) than Imad Al Balushi- Manager Sales who looks after Dhofar region. Imad has been with the company for last 7 years and has been a good performer.
Based on the above case-let, answer the following:
a) Discuss the HR problem faced by Al Samail Trading & Contracting?
b) Elaborate on any 2 causes of the HR problem identified by you?
c) Discuss 2 solutions you would suggest to avoid the situation.
Abdullah Ali was recruited as an executive manager in Oman Construction LLC three years ago. His role included performing duties relating to administrative work in the company. He was performing very well. In the performance appraisal 2017, he scored 1 Excellent. The company has a rating scale of 1 to 5 (1 Excellent, 2-Outstanding, 3-Acceptable, 4-Poor, 5-Not acceptable). Only those in the outstanding and excellent category are eligible for a salary raise.
Due to increase of prices in 2018, total costs were increased and many job positions were terminated because of the economic problems. Those who stayed in the company were to handle different tasks to their usual workload. For Abdullah Ali, he was asked to add on other duties including procurement to his daily responsibilities. Because of his new responsibilities and work load, his performance reduced to 3 acceptable at the end of the year. On the other hand, Abdullah Ali expects an increase in his salary.
Suppose that you are the HR manager of Oman Construction LLC. How do you deal with the situation?
Please answer the following questions:
Q1. Discuss performance appraisal based on performance versus based on effort. How does that relate to this case?
Q2. Why does Abdullah Ali think he deserves a raise in salary? Do you think he has a right to do so, and why?
Q3. Being the HR manager, can you give Abdullah Ali the salary raises?
Q4. Discuss different reward options that you can use instead of the salary raise.
*** Words count = 1400 words.
*** In-Text Citations and References using Harvard style.
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