HRM3705 COMPENSATION MANAGEMENT
ELITE REVIEW STUDY GUIDE FULLY SOLVED
QUESTIONS AND DETAILED ANSWERS 2026
◉Total Rewards. Answer: See image on moodle slides, important to
understand context
◉Compensation policy. Answer: is the decision-making basis for
determining wage levels, taking into account multiple stakeholders, with
the aim of increasing labour productivity and enhancing
competitiveness.
The compensation policy regulates who gets how much pay in which
case.
◉Factors to be considered for salary statement. Answer: Internal factors
External factors
justice
◉Fair Pay. Answer: Distributive justice
Procedural Justice
, Interactional justice
◉Procedural Justice. Answer: the process of decision making is
perceived as fair
◉Distributive justice. Answer: the amount/distribution of the wage is
perceived as fair
◉Interactional justice. Answer: the behaviour of decisionmakers is
perceived as fair
◉Principles of distributive pay justice. Answer: Requirements justice
(Difficulty of work)
Performance justice
Social justice (Child allowances..)
Profit equity (Success of company)
Market justice
◉Function evaluation procedure. Answer: Job analysis -> Job
descriptions -> Job evaluation -> Job structure
◉Job evaluation:. Answer: systematic identification and recognition of
differences in the relative value among a set of jobs and setting of pay
differentials accordingly
ELITE REVIEW STUDY GUIDE FULLY SOLVED
QUESTIONS AND DETAILED ANSWERS 2026
◉Total Rewards. Answer: See image on moodle slides, important to
understand context
◉Compensation policy. Answer: is the decision-making basis for
determining wage levels, taking into account multiple stakeholders, with
the aim of increasing labour productivity and enhancing
competitiveness.
The compensation policy regulates who gets how much pay in which
case.
◉Factors to be considered for salary statement. Answer: Internal factors
External factors
justice
◉Fair Pay. Answer: Distributive justice
Procedural Justice
, Interactional justice
◉Procedural Justice. Answer: the process of decision making is
perceived as fair
◉Distributive justice. Answer: the amount/distribution of the wage is
perceived as fair
◉Interactional justice. Answer: the behaviour of decisionmakers is
perceived as fair
◉Principles of distributive pay justice. Answer: Requirements justice
(Difficulty of work)
Performance justice
Social justice (Child allowances..)
Profit equity (Success of company)
Market justice
◉Function evaluation procedure. Answer: Job analysis -> Job
descriptions -> Job evaluation -> Job structure
◉Job evaluation:. Answer: systematic identification and recognition of
differences in the relative value among a set of jobs and setting of pay
differentials accordingly
