Reference no: EM133181964

The Hotel Paris's competitive strategy is "To use the superior guest service to differentiate the Hotel Paris properties, and to thereby increase the length of stay and return rate of guests, and thus boosts revenue and profitability". HR manager Lisa Cruz must now formulate functional policies and activities that support this competitive strategy by eliciting the required employee behaviours and competencies. Like several other HR systems at the Hotel Paris, the compensation program was unplanned and unsophisticated. The company has a narrow target range for what it will pay employees in each job category. Each hotel manager decides where to start a new employee within that narrow pay range. The company has given little thought to tying general pay levels or individual employees' pay to the company's strategic goals. For example, the firm's policy is simply to its employees a "competitive salary," by which it means about an average for what other hotels in the city are paying for similar jobs. Lisa knows that pay policies like these may ruin what the company wants to achieve strategically, in terms of creating an extraordinary service-oriented workforce. How can you hire and retain a top workforce, and channel their behaviours towards high quality guest services, if you don't somehow link performance and pay? She and her team therefore turn to the task of assessing and redesigning the company's compensation plan. Even the most casual review by Lisa Cruz and the CFO made it clear that the company's compensation plan wasn't designed to support the firm's new strategic goals. For one thing, they knew that they should pay somewhat more on average than did their competitors if they expected employees to exceed expectations when it came to serving guests. Yet their review of a variety of metrics suggested that in virtually all job categories the Hotel Paris paid no more than average, and, occasionally paid somewhat less. The current compensation policies had also bred what one hotel manager called an "I don't care" attitude on the part of most employees. What she meant was that most Hotel Paris employees quickly learned that regardless of what their performance was, they always ended up getting paid same as employees who performed better and worse than they did. So, the firm's compensation plan actually created a disconnect between pay and performance: it was not challenging employees' behaviours towards those who required to achieve the company's goals. In some ways, it was doing the opposite. Lisa and the CFO knew they had to institute a new, strategic compensation plan. They wanted a plan that improved employee morale, contributed to employee engagement, reduced employee turnover, and rewarded the sorts of service-oriented behaviours that boosted guest satisfaction. After meeting with the company's CEO and the board, the CFO gave Lisa the go-ahead to redesign the company's compensation plan, with the overall aim of creating a new plan that would support the company's strategic aims. Lisa and her team set numerous new measurable compensation policies for the Hotel Paris and these new policies formed the heart of the new compensation plan.

QUESTIONS 1:  Employees' compensation serves a critical role in the employment relationship to both the employee and employer. Design a strategic compensation plan for the Hotel Paris that will align with the firm's new strategic goals.

QUESTIONS 2: South African Coal industry is the second biggest mining sector after gold, with sales contributing 16% of export revenue to South Africa mineral sales 4% to the GDP, South Africa is the world's largest coal exporter, after Australia, as well as the second-lowest lowest cost producer. As a gold industry, the second sector has undergone similar mergers, acquisitions and name changes over the past few years. The financial service shared service centre got established in 2004, the plan was to incorporate New Vaal and New Denmark into the shared services by the end of 2005. Their basic financial accounting and payroll functions were consolidated into the shared services. Anglo Coal is a perfect candidates for the implementation of the shared services centre. This new innovation will pave the way for other mining industries to share similar characteristics of having several business units with decentralised functions located around a potential epicentre (Ramjattan, 2006 cited in Adler and Peer, 2019). After reading the above abstract, outline some of the main factors the HR department at Anglo coal need to consider when designing an effective payroll system which will suit their shared services.

QUESTIONS 3: Construction is one of the fundamental sectors that have an impact on the growth of infrastructure and the economy of the country. Construction business opens up many job opportunities for the community both in the urban and rural areas. It requires a lot of resources such as capital, human and non-human resources. Human resource is one of the main resources that is required in any organisation. A study was conducted in a Nigerian construction company called Pecolo-Brunelli Engineering Limited. This study indicated that the compensation system is the major issues for personnel management. It has an impact on the performance and the sustainability of the organisation. Any company that fails to identify the worth of compensation to its employees usually faces the dire penalties of that negligence. The study further indicated that any organisation that fails to understand the significance of the compensation in the lives of its employees is at high risk failing. The organisation needs to pay attention to the personnel resources inside the organisation to ensure a smooth functioning of the organisation.

Several pertinent pieces of legislation dictate the compensation package that must be offered to employees both in the private and public sector. Identify the South African legislations that governs the minimum employment standards