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Compensation & Benefits
Dec 2025 Examination
Q1.
A mid-sized manufacturing company with over 100 employees has recently
undergone a system upgrade in its payroll department. Due to technical
glitches, the EPF contributions for April and May were not deposited by the due
dates. Employees have started raising concerns about their retirement savings
and the security of their funds. The company’s management is worried about
potential legal repercussions and damage to its reputation. As the HR Manager,
you are tasked with addressing the situation, ensuring legal compliance, and
communicating effectively with the workforce. As the HR Manager of a mid-sized
manufacturing company, you discover that several employees have not received
their Employee Provident Fund (EPF) contributions for the past two months due
to a delay in processing by the payroll department. The employees are concerned
about the impact on their future benefits and trust in the organization. How
would you apply the provisions of the Employee’s Provident Fund Act, 1952 to
resolve this issue, ensure compliance, and restore employee confidence? (10
Marks)
Q2.
A multinational manufacturing firm is undergoing restructuring to improve
competitiveness and reduce costs. Senior management is debating whether to
increase the proportion of variable pay (profit-sharing, gainsharing,
performance bonuses) and reduce fixed salaries. Some executives argue this will
align employee interests with company performance and control costs, while
others warn it may increase turnover and reduce morale, especially during
economic downturns. Employee representatives are concerned about income
stability. Evaluate the strategic implications of using variable pay components
(such as profit-sharing, gainsharing, and performance bonuses) versus fixed pay
in the context of organizational restructuring and cost control. Assess the
risks and benefits from both employer and employee perspectives, and justify an
optimal compensation mix. (10 Marks)
Q3(A).
A large service sector company is committed to diversity and inclusion,
employing women, persons with disabilities, and a significant number of
contract workers. The company must comply with statutory obligations for
maternity benefits, disability compensation, and Provident Fund contributions.
However, current compensation practices are fragmented, leading to perceptions
of unfairness and low morale among certain groups. The management seeks a
unified, equitable, and motivating compensation system. Design a compensation system
for a service organization that employs a diverse workforce, including women,
persons with disabilities, and contract workers. (5 Marks)
Q3(B).
A rapidly growing technology startup employs 50 permanent staff and 30 contract
workers, all engaged in various technical and support roles. The founders are
concerned about legal compliance and fairness in compensation, especially as
the company scales. They want to ensure that all eligible employees receive
statutory benefits, while also offering competitive packages to attract and
retain talent in a dynamic market. How would you structure the framework to
address the unique needs of both employee categories while supporting
organizational growth? (5 Marks)
Dear students, get fully
solved assignments by professionals
Do send your query at :
or call us at :
08263069601
(Plagiarism proofed
assignments available with 100% surety and refund)
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