SCENARIO

You are working at the HR department of a private company. A new CEO arrived at the company with the task of saving it from a takeover that has been proposed by a competitor. Although the CEO only arrived recently, it was immediately apparent that morale was low, employee performance standards were not satisfactory and that the turnover rate was higher than the competitors. As a result of these and other challenges, the overall company performance has been poor. The CEO has summoned your team for a meeting, requesting explanations and possible proposals for changes.

Question $1\mathrm{.}1(25$ Marks$)$

In order to ascertain the extent to which Compensation Systems and Employee Benefits improve workplace morale, the CEO has asked for a report outlining the variations of Compensation Systems and Employee Benefits that are currently in place and further recommendations to enhance employee performance and in$-$turn, organisational performance in line with its objectives...GUIDELINE: $$ In the report provide an overview of your

understanding of compensation

systems, their purpose and what factors

to take it account when designing

compensation systems.

$$ Critically outline the current

compensation systems and benefits that

are in place at the organisation justifying

their importance in terms of labour law

requirements and also the extent to

which they enhance employee

performance.

$$ Make recommendations of other

compensation systems and employee

benefits that can be incorporated so as

to enhance employee performance.