Question 1:

(a) Define the term ‘reward strategy' and describe the main phases of the formulation process of a reward strategy.
(b) Describe the ‘equity theory' motivation and explain the problems related with internal and external equity in compensation by supporting your answers with relevant example.

Question 2:

(a) Give FOUR contexts in which performance appraisal and performance management differ from each other.
(b) Elaborate on FIVE common errors with the performance appraisal process and suggest appropriate measures that can be taken to avoid similar problems.

Question 3:

Describe what a Pay Structure is and list down the key issues that are required when introducing or replacing pay structures.