Ms-27 Question bank (12)
Ms-27 Question bank
Ms-27 june 2011
Written by sales@mbaonlinepapers.com sales@mbaonlinepapers.comMS-27 june-2011
MS-27 : WAGE AND SALARY ADMINISTRATION
1. Explain the Role of Compensation. Critically evaluate the current trends in compensation with suitable example.
2. Discuss the need, object, scope and coverage of the minimum wages Act, 1948. Describe the procedure for fixation and revision of minimum wages under the Act.
3. Explain the concept of job evaluation. Discuss any two methods of job evaluation and their merits and demerits.
4. Discuss what do you mean by performance linked reward system. Explain various steps involved in designing a performance linked reward system.
5. Write short notes on any three of the following
(a) Tax planning
(b) Time and piece rate system of wage payment.
(c) Downsizing
(d) Stock option
(e) Managerial compensation.
6. Read the following case and answer the questions given at the end.
The Indian Electric Company is a city based manufacturer of welding machines and motors. When Mr. Nirad Shah established the company in 1970, he was keenly aware of the importance of a highly motivated workforce, and how the company's success, in fact, depended on it. Therefore, Mr. Shah had to ensure that each employee would work as diligently as possible for the good of the organisation. Mr. Shah realised that the best way to motivate employees would be to link the company's reward and recognition system to its goals. To establish this nexus, Shah developed and implemented an incentive system. Its aim was to improve the company's overall performance by allowing contributing workers to share in the proceeds. The plan rewards employees for turning out quality products efficiently while controlling costs. The system includes the following components :
Paying by the Piece Rate : Production workers are paid according to the number of "pieces" or product units they produce that are not defective. If a customer sends a defective part back to the company, the employee who produced it must repair it on his or her own time.
Providing year - end Bonus : To reward workers further for their efforts, Shah introduced a year-end bonus system that gives all workers opportunity to nearly double their base wages. Workers get the bonus if the company's annual profit increases.
Providing Stock Options : Shah also provided his employees with the option of buying company's stock at a low cost. Employees are also given shares of the company's stock based on annual profits.
All the above financial incentive payments enabled the employees to earn more and helped to improve their morale and motivation.
Questions :
(a) Identify the salient issues of this case in general.
(b) What are the additional financial incentive schemes you suggest for sustaining the morale and motivation of the employees ?
(c) Suggest suitable non-financial incentives (informal rewards) for further improving the morale and motivation of the employees of Indian Electric Company.
Ms-27 dec 2007
Written by sales@mbaonlinepapers.com sales@mbaonlinepapers.comMS-27 Dec-2007
MS-27 : WAGE AND SALARY ADMINISTRATION
Mr. C.S. Sharma joined in 1970 in Indian Institute of Technology a premier educational institution in the country, imparting higher level education in technology. His job demands higher level and latest knowledge, higher level teaching skill, and other skills in introducing and practicing different teaching methods and bringing
coordination between the institute and industry. The institute implemented the pay scales in 1976 recommended by the University Grants Commission which were at par with the pay scales of teachers in Universities and Colleges. The demands of the jobs in Universities and Colleges are quite low compared to those of the Institute.
The pay of Mr. Sharma. has been fixed at that level of Mr. Singh, who joined the Institute 1n 1974 as the University Grants Commission did not recommend any weightages for the teachers who put up less than five year's experience. Mr. Sharma was quite unhappy over the parity of salary of the teachers of the institute with the teachers from Universities and Colleges; and also with those having less than five year's experience. Hence he decides to quit
Questions :
(a) Do you justify the decision made by Mr. Sharma ?
(b) Do you suggest any measures to stop Mr. Sharma from quitting the job ?
(c) Do you think that there is something wrong with the Institute pay ptactices and the University Grants Commission's reconunendations ? If yes, what are they ? How do you rectify them ?
Ms-27 dec 2008
Written by sales@mbaonlinepapers.com sales@mbaonlinepapers.comMS-27 Dec-2008
MS-27 : WAGE AND SALARY ADMINISTRATION
1. Enumerate wage theories. Explain any two of them with suitable examples. Briefly discuss limitations of economic theories.
2. What are the micro level considerations for evolving a compensation policy ? Explain with suitable example.
3. What are the objectives of Allowances and benefits ? Briefly describe various fringe benefits.
4. Discuss the types of performance linked reward schemes. Critically analyse the steps in designing a performance linked reward scheme.
5. Write short notes on any three of the following :
(a) Tax planning
(b) Equal pay for equal work
(c) Compensation policy
(d) Collective bargaining as a method of wage fixation
G) Voluntary Retirement Scheme (VRS)
6. Read both Case 1 and Case 2 giaen below and answer the questions given at the end of each ease.
CASE 1
A financial institution has just decided to open a branch at Bhimunipatnam, an exclusive resort located about 20 miles from Waltair, a large city. There is no bank at present in Bhimunipatnam. The financial institution is anxious to determine the appropriate wage for the clerical staff it expects to hire. Clerks in the city office at Waltair receive a starting wage of Rs. 1,000 per month. As a matter of company policy these wages rates have been set at mid point of the range
for financial institutions in Waltair.
A survey at local business at Bhimunipatnam indicates that the'going rate' for
qualified clerical personnel varies between Rs.1200 - Rs.1,400 a month. This higher rate in Bhimunipatnam may be attributed, in par! to the substantially higher cost of living in this resort town the limited number of young people seeking employment and the fact that there are no other financial institutions in Bhimunipatnam. Banks in Waltair have traditionally paid lower wages than other businesses, on the ground that banks offer better working conditions and higher prestige.
Questions :
(a) What amount, should the financial institution fix as personnel ?
b) What factors should be considered in making the decision ?
Ms-27 Question bank