Download GTU (Gujarat Technological University) MBA (Master of Business Administration) 2018 Winter 3rs Sem 3539233 Compensation Management Previous Question Paper
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 3 ? EXAMINATION ? WINTER 2018
Subject Code: 3539233 Date:11/12/2018
Subject Name: Compensation Management
Time: 10:30 am to 01:30 pm Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.1 Explain the following terms:
(a) Financial Reward
(b) Convergence and Divergence Policy
(c) Intrinsic and Extrinsic reward
(d) Flexible Benefits and Fringe Benefits
(e) Total Reward
(f) Bonus
(g) Team Pay
14
Q.2 (a) What do you understand by reward management? Briefly explain components
of reward system and its interrelationship.
07
(b) Write a note on Towers and Perrin Model of Total Reward Management 07
OR
(b) Define Strategic Reward. Discuss its characteristics and guideline principles. 07
Q.3 (a) ?Rewarding sales and customer service staff would be different as compared to
rewarding manual and knowledgeable workers? ? Justify.
07
(b) What are the criteria for effectiveness of financial rewards? Enlist the Dos and
Don?ts of using financial incentives.
07
OR
Q.3 (a) ?Arogyam?, a retail medicine chain got a license to sell medicines of various
pharma companies. It gives weightage to the competencies of Medical
Representatives. Design a competency based pay plan for them.
07
(b) Write a brief note on various types of employee benefits HR department choose to
offer these days to the employees.
07
Q.4 (a) Explain provisions related to Maternity Benefit Act, 1981 07
(b) Discuss payment of wages act 1936, for rules of deduction and enforcement of
the act.
07
OR
Q.4 (a) What did you understand from Mediclaim policy? Briefly discuss salient
features of it.
07
(b) Explain the various elements of directors and senior executives pay with
examples and also mention the various reasons for tremendous growth of
executive pay.
07
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Page 1 of 2
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 3 ? EXAMINATION ? WINTER 2018
Subject Code: 3539233 Date:11/12/2018
Subject Name: Compensation Management
Time: 10:30 am to 01:30 pm Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.1 Explain the following terms:
(a) Financial Reward
(b) Convergence and Divergence Policy
(c) Intrinsic and Extrinsic reward
(d) Flexible Benefits and Fringe Benefits
(e) Total Reward
(f) Bonus
(g) Team Pay
14
Q.2 (a) What do you understand by reward management? Briefly explain components
of reward system and its interrelationship.
07
(b) Write a note on Towers and Perrin Model of Total Reward Management 07
OR
(b) Define Strategic Reward. Discuss its characteristics and guideline principles. 07
Q.3 (a) ?Rewarding sales and customer service staff would be different as compared to
rewarding manual and knowledgeable workers? ? Justify.
07
(b) What are the criteria for effectiveness of financial rewards? Enlist the Dos and
Don?ts of using financial incentives.
07
OR
Q.3 (a) ?Arogyam?, a retail medicine chain got a license to sell medicines of various
pharma companies. It gives weightage to the competencies of Medical
Representatives. Design a competency based pay plan for them.
07
(b) Write a brief note on various types of employee benefits HR department choose to
offer these days to the employees.
07
Q.4 (a) Explain provisions related to Maternity Benefit Act, 1981 07
(b) Discuss payment of wages act 1936, for rules of deduction and enforcement of
the act.
07
OR
Q.4 (a) What did you understand from Mediclaim policy? Briefly discuss salient
features of it.
07
(b) Explain the various elements of directors and senior executives pay with
examples and also mention the various reasons for tremendous growth of
executive pay.
07
Page 2 of 2
Q.5
CASE STUDY:
Pareek Laboratories came into existence in 1989 as a medium sized pharmaceutical
company with just two generic products and 34 employees. In a span of 30 years, it
has grown astonishingly and now emerged as the second best in the country. The
company?s staff list comprises 8200 talented employees. It is marketing nearly 625
branded products in 58 countries. It has also been successful in introducing 20
products in a year on an average, which itself is an indicator of strength of its human
resources.
The company has a full-fledged HR department under the stewardship of HR Director
Mr Nikesh Verma. HR department, through sustained measures and a meticulous
approach, has fostered loyalty and job involvement among the members of the
company. Since its inception, the labour turnover rate of the company has been far
less than the industry average, except for the past two years, including the current
year particularly at the executive levels. Company is much concerned about it and
wants to reduce the executive turnover at the earliest before too much damage is
done.
Many of the serving executives have blamed the pay revision conducted two years
back as responsible for this trend. In the last pay revision, the company moved from a
narrow-graded pay structure to a broad-graded one. Consequently, the number of pay
grades were reduced and kept to a minimum in the revised pay structure. Junior-level
executives complained that they got a raw deal in the new pay grade fixation and the
pay difference between their level and the higher level (middle-level executives)
became unacceptably large. The executives also found fault with the job evaluation
techniques followed for determining the internal worth of the jobs. They felt that the
ranking method adopted in job evaluation was highly subjective and functionally
erratic. The junior-level executives also alleged that the job evaluation committee had
evaluated persons instead of positions at executive levels and that was responsible for
the anomalies in the pay grade allocation. They wanted the HR department to
undertake a fresh and objective evaluation of jobs and reallocate pay grades on the
basis of the result of a new job evaluation.
However, the HR department, which takes overall responsibility for job evaluation
and pay revisions, resolutely rejected the accusations made by junior level executives.
It maintained that the job evaluations were conducted in the most objective manner.
The HR people also stated that the large differences between the pay scales of junior
executives and those of the middle-level ones were due to the recent increase in the
duties and responsibilities of the middle-level managerial jobs and not due to any flaw
in the job evaluation or pay revision process. But the junior-level managers were not
prepared to accept the explanation of the HR people and kept asking for a fresh
exercise to fix the worth of each job in the managerial levels and reallocate pay
grades.
Now, the management is in an acute dilemma. If it concedes the request of the junior-
level managers and orders a fresh job evaluation and pay grade fixation for them, it
might send wrong signals to other sections of the employees and they also might seek
revisions. If it does not concede their request; it may not be possible to reduce the
high executive turnover. Finally, the management has instructed the HR department to
come out with some plausible solutions to this serious issue.
(a)
Do you agree with the contention of the junior-level executives that flawed job
evaluation and pay grade fixation are responsible for the labour turnover problems of
the company? Justify your answer.
07
(b)
According to you, who is to be blamed for the high level of executive attritions
prevailing in the company? Why?
07
OR
Q.5 (a)
If you were to be the HR director, how would you have responded to the criticisms of
the executives?
07
(b)
What will be your suggestions to solve the present imbroglio faced by the
management?
07
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This post was last modified on 19 February 2020