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Question 1
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.
1b. Explain why performance appraisal would be crucial to this type of pay programme.
Question 2
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.
2a. Explain each competitive strategy AND assess which strategy would best facilitate the achievement of the stated strategic objectives.
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