MS-027: Compensation And Reward Management last 3 yrs paper
June, 2021
Section-A
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- Explain the corporate compensation policy and community concerns. Describe the issues and current trends of the compensation and rewards in an organization.
- Explain the corporate compensation policy and community concerns. Describe the issues and current trends of the compensation and rewards in an organization.
- Discuss the concept of internal and external equity. Briefly describe the methods and systems of job-evaluation
- Explain, what is performance-linked reward system. Discuss the various steps involved in designing a performance-linked reward system. Give an example
- Write short notes on any three of the following:(a) Profit sharing
(b) Stock options
(c) Bargaining theory
(d) Payment of Bonus Act, 1965
(e) Unilateral pay fixation
Section-A
- Read the case given below and answer the questions given at the end:The National Manufacturing Company reached an agreement with its Union on a production incentive scheme to increase production. The Company had an unprecedented demand for its goods and the Union agreed for the incentive scheme. The management was pleased with the assurance of the Union leader to personally undertake the task of implementing the scheme. The management promised to give him a free hand if he could increase the production.
The Union did increase production to almost double the original level. As a result, the Union gained importance. Any problem could be sorted out by the Union by its direct access to the chief executive. The management staff as a result became wary of its interaction with the Union. Non-members of the Union were discriminated by the Union. Its members could get special favours like disposal of their grievances, promotions, and so on.
The incentive scheme benefitted primarily the Union members. The scheme was inequitable as some workers got disproportionately large incentives, some low and some no incentive at all. The second feature was that as the incentive was linked to the Consumer Price Index (CPI) the distortion got further accentuated. However, when the Union tried to misuse its new found powers the management struck back one day by taking disciplinary actions against all the leaders and the Union found all of a sudden that it was without a leader.
Another Union arrived on the scene and the leader had established a rapport with the chief executive and this new Union faithfully followed the tenets of the management but as a price extracted some benefits for its members exclusively. It had a say on all aspects of the management function like recruitment, selection, transfers, job classification, and so on. In return the Union saw to it that production became its exclusive responsibility and it had a hot line with the chief executive for any problem resolution. Again the management became wary that their path should not cross the path of the Union resulting in a confrontation.
As the years passed, the Union started agitating for improvement in the wage scales. Because of the incentive scheme, the company found that any improvement in the basic wage would pose greater problems and the primary question before the management was to delink the CPI from the incentive scheme. The Union refused to delink the CPI from the incentive scheme as some of its members were earning an amount equal to, if not more than, the salary as an incentive itself. At the same time workmen with no incentive and being grade barred began to lose. And this resulted in discontentment amongst the workmen. But the dilemma could not be resolved and this led to an explosive situation.
A third Union emerged on the scene and this led to intense inter-Union rivalry resulting in indiscipline, loss of production, and violence within the factory premises, as a result of which the company declared a lockout.
When the plant reopened after four months, the Union in power lost its credibility and the new Union had the complete support of the workmen. In the meanwhile, the new HR Manager who joined the company during this period of strife found that a new approach to deal with the problem was very helpful. Normalcy in discipline and production seemed to return when a realistic approach of meeting the workmen for resolving problems and difficulties was made by the HR Manager and the Plant Manager. Simultaneously contact with workmen led to the formation of committees to look after various matters relating to the canteen, working conditions and welfare functions. The management also withdrew at the instance of the HR Manager, charge-sheets which were in force for over two to three years. The abuse of discretion by the old Union leaders was also rectified. This had an immediate effect and the workmen responded favourably and they even admitted that there was somebody to look into the problems of the workmen
The new Union leader was happy that the management could develop a rapport not only with the leader but even the workmen and hoped that it could expect the management to rectify the defect of not having revised the wage scales. But this was not an easy task as there were a lot of inequalities that the management wanted to set right.
The Union, though agreeing with the management, would not agree for a cut in the wages in any manner to set right the inequalities. The Union not only wanted to cling to the beneficial aspects of the incentive scheme but also insisted that the management somehow give an increase in the basic wages. The management was being drawn into a vicious circle of the incentive scheme being inequitable, but when the Union’s attention was being brought to the high incentive categories it reverted to the low basic wage theme. The management remained in a quandry as regards how to convince the workmen, to win over the constituency of workmen and make managers effective and regain supremacy in production.
Questions:
(a) Identify the problems and their causes in the case.
(b) Suggest various principles and strategies the management has to keep in mind while formulating a wage incentive scheme for the employees.
February, 2021
Section-A
- Explain the framework of compensation policy at macro and micro levels. Describe the issues and current trends in compensation.
- Explain the provisions relating to protection of wages from arbitrary deductions under the Payment of Wages Act, 1936. Discuss how claims are made under the Payment of Wages Act.
- Discuss various pre-requisites and considerations in wage surveys. Explain different methods for conducting wage surveys.
- Explain various implications of tax planning in compensation to employees. Discuss what type of allowances qualify for tax relief.
- Discuss whether and why stock options are becoming popular. What are their advantages and disadvantages?
- Explain the different types of incentive systems. Describe the various features of the incentive schemes followed in the Indian industries.
- Explain the significance of downsizing employee strength. Describe the Voluntary Retirement Schemes (VRS) in an organisation.
- Describe the various methods for fixation of minimum wages under the Minimum Wages Act, 1948. Discuss who may file an application in respect to non-payment of minimum rates of wages under the Act.
Section-B
- Explain the difference between a pay commission and a wage board. Describe the relative merits and demerits of different methods of wage determination.
- Discuss the concept of internal and external equity. Describe the methods and systems of job evaluation.
- Describe the different methods for conducting wage surveys. Discuss the recommendations of wage boards.
- Explain the concept of tax planning. Discuss how salary is defined under the current Income Tax Act. Describe what type of allowances qualify for tax relief.
- Explain what is performance-linked reward system. Describe the various ways in which performance can be linked to reward system
- Define incentive. Explain the different types of incentive systems. Briefly describe the various individual and group incentive plans and their respective merits and demerits.
- Discuss the concept of bonus, profit sharing and stock options. Describe how stock options are currently treated for tax purpose and how they should be treated.
- Discuss various approaches in designing compensation. Describe the merits and demerits of compensation systems based on competency performance. Cite examples.
June, 2020
Section-A
- Explain the concept_of-compensation. Describe the responsibilities of the management regarding the compensation programm
- Explain the need and purpose of allowances and fringe benefits given to the employees in an organization. Discuss with suitable examples.
- Describe different methods of wage determination. Discuss why collective bargaining is superior to other methods of wage determination.
- Explain, what is performance linked reward system. Discuss various steps involved in designing a performance linked reward system.
- Explain the concept of Tax Planning. Distinguish between Tax , Planning Tax Avoidance.
- Discuss the requirements of the Payment of Wages Act, 1936 in respect of payment of wages. Describe the various deductions under the Act.
- Explain the concept of job evaluation. Discuss any two methods of job evaluation.
- Write short notes on any two of the following:(a) Time and piece rate system of wage payment
(b) Downsizing
(c) Stock options
Section-B
- Discuss the role of compensation and rewards in an organization. Describe the management responsibilities regarding the compensation management programme.
- Describe the framework for compensation policy at macro and micro level. Discuss, why and how pay design should be linked to organization and job design.
- Explain the definition of wages under various labour legislations. Discuss, how minimum wage differs from need based minimum wage.
- Explain the International Labour Standards on wages. Briefly describe the norms for fixation of wages.
- Discuss, how claims are made under the Payment of Wages Act, 1936. Explain can the fine be deducted from wages of an employed person? If so, subject to what condition?
- Discuss the relevant provisions contained in the Minimum Wages Act, 1948. Describe the procedure for fixation of minimum wages.
- Discuss how the Provident Fund Scheme is administered under the Employees’ Provident • Funds and Miscellaneous Provisions Act, 1952? Explain the salient features of the pension scheme
- Describe the components of the traditional pay structure. Discuss the factors which have contributed for the emergence of new pay structure.
- Discuss the role of compensation and rewards in an organization. Describe the management responsibilities regarding the compensation management programme.
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- IGNOU Course details and sample paper link
- Sample paper of ignou for exam
- Solved Assignments of IGNOU courses
