UNIVERSITY OF CENTRAL PUNJAB

FALL-2023
Course Title: Compensation Management
Course Code: MGMT 4013

Assignment 3
Course Instructor: Sameia Farhat

Section: A Program: BBA Date: 10th Jan 2024

Submission Date: 22nd Jan 2024 Maximum Marks: 10

Program Objective: PO1, Course Objective: CO3, Course Learning Objective: CLO1, CLO2, &
PO2, & PO3 CO4, & CO5 CLO4, & CLO5

Instructions:
1. This assignment compliments your final project and demands teamwork.
2. Plagiarized work will not be accepted.

Task Details:

Select an organization as per the instructions given in the project file.

1. Briefly describe the chosen organization, its industry, and current compensation practices.
Highlight the importance of aligning compensation strategies with organizational goals.

2. Develop a questionnaire that aligns with the theoretical concepts discussed, covering key
areas of compensation management. Ensure the questions are designed to gather information
for practical application. The questions need to be at least related to the below mentioned
areas:
 Compensation components (core compensation etc.)
 Basis of pay: Seniority pay, longevity pay, merit pay, person-focused pay, etc.
 Discretionary and non-discretionary benefits
 Internal compensation system
 External compensation system
 Pay Structure
 Labor Laws related to compensation

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3. Search out questionnaire formats for a structured interview and compose it accordingly.

NOTE:

 The DEADLINE will be strictly followed.

 Submit the assignment on your student portal. Only one member from the group will
submit the assignment.
 Bring the Hardcopy of QUESTIONNAIRE in the class for approval.

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 Hyundai Nishat motor

Introduction:
Hyundai Nishat Motor is a prominent player in the automotive industry, operating as a joint
venture between Hyundai Motor Company and Nishat Group in Pakistan. The company is
engaged in the manufacturing and distribution of Hyundai vehicles, ranging from compact cars
to SUVs, contributing to the dynamic and rapidly growing automotive market in Pakistan.
Hyundai. This collaboration brings together Hyundai's global automotive expertise and Nishat
Group's extensive experience in various industries, creating a synergy for success in the Pakistani
automotive market.

Current Compensation Practices:

Hyundai Nishat Motor prioritizes a comprehensive and competitive compensation strategy. The
compensation package includes core elements such as base salary, bonuses, and benefits to
attract, motivate, and retain skilled professionals. The company is known for incorporating
performance-based incentives to reward employees for their contributions, fostering a culture of
excellence and achievement. Additionally, Hyundai Nishat Motor is committed to providing a
range of benefits, both discretionary and non-discretionary, to enhance the overall well-being of
its workforce.

Alignment with Organizational Goals:

Aligning compensation strategies with organizational goals is crucial for Hyundai Nishat Motor.
The automotive industry demands innovation, quality, and efficient operations. Therefore, the
company's compensation practices are designed to attract top talent, encourage employee
engagement, and align individual performance with overall business objectives. By offering
competitive and performance-driven compensation, Hyundai Nishat Motor aims to create a
motivated and committed workforce, contributing to the company's growth, customer
satisfaction, and long-term success in the Pakistani automotive market. A well-aligned
compensation strategy ensures that employees are invested in the organization's mission and
actively contribute to its strategic goals. This alignment is essential for maintaining a competitive
edge in the industry and sustaining long-term profitability and growth.

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Questionnaire:

1. Can you briefly describe Nishat Motors' overall compensation philosophy?

2. How does Nishat Motor conduct market analysis for compensation?
3. How are core compensation components like base salary, commissions, and benefits
determined for different employee groups?
4. Does Nishat Motors utilize any additional compensation elements like bonuses,
allowances, or recognition programs? If so, please elaborate.
5. To what extent do seniority/longevity play a role in determining employee compensation
at Nishat Motors?
6. Does Nishat Motors have a policy of rewarding employees with increased salaries based
on seniority?
7. If yes, how does the seniority pay system work (e.g., percentage increase per
year of service, maximum increase threshold)?
8. To what extent does individual performance impact base salary adjustments and bonus
awards
9. Can you describe the process of job evaluation used to determine compensation levels?
10. Does Nishat Motors offer any bonuses or rewards for employees who reach a certain
number of years of service?
11. If yes, what are the requirements and benefits of the longevity pay program?
12. How does Nishat Motors recognize and reward high performers through merit-based
systems?
13. Are there any person-focused pay elements in place, such as skill-based differentials or
knowledge premiums? If so, please explain
14. How are discretionary and non-discretionary benefits categorized and managed at Nishat
Motors?
15. How does Nishat Motors ensure its compensation packages remain competitive while
maintaining cost-effectiveness?
16. What is the policy on overtime pay at Nishat Motors?
17. How does Nishat Motors ensure compliance with all relevant labor laws pertaining to
compensation, including minimum wage, overtime pay, and social security contributions?
18. Does Nishat Motors face any challenges in adhering to labor laws related to
compensation? If so, what are they and how are they addressed?
19. What are your thoughts on the evolving trends in compensation management? Does
Nishat Motors have any plans to adapt its strategies or incorporate new elements in the
future?

20. What are the biggest challenges you face in managing compensation at Nishat Motors?
How do you plan to overcome them?

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