IOP3706 ASSIGNMENT 1 SEMESTER 2 2025 – FULLY ANSWERED (DUE 25 AUGUST 2025)

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IOP3706 Assignment 1 Semester 2 Memo | Due August 2025. All questions fully answered. SCENARIO 1
You are the HR Officer at a South African engineering firm facing high voluntary turnover. Recent
exit interviews show a pattern: skilled employees cite dissatisfaction with development
opportunities, a lack of supervisory support, and burnout. One engineer shared that leaving was
difficult due to the strong social bonds in the company, but she felt unsupported by management.
Your director tasks you with proposing strategies to improve retention among skilled employees.
QUESTION 1
1.1 Identify and briefly explain two psychological factors that may have influenced the
employee’s decision to leave the organisation. (6)
1.2 Define and explain the concept of “job embeddedness” as applicable to this scenario. (2)
1.3 Recommend two retention strategies to address the identified challenges. (2)
SCENARIO 2
A Johannesburg-based company is experiencing employee dissatisfaction despite offering
competitive salaries. A recent survey found that while employees appreciate their pay, they feel
undervalued and perceive the reward system as unfair. There is confusion around bonuses and
unclear communication about promotion-related increases.
QUESTION 2
2.1 Differentiate between the concepts of reward, remuneration and compensation.
(3)
2.2 Explain the importance of fairness (distributive and procedural justice) in reward systems.
(4)
2.3 Recommend three improvement criteria for an effective reward system to increase
employee satisfaction. (3)
SCENARIO 3
A fast-growing marketing company in Cape Town has no structured performance management
system. Managers rate employees based on gut feeling and personal preference, causing
frustration among staff. One employee said, “I work hard, but my performance review felt unfair
and biased.” The HR manager plans to design a new performance appraisal system and train all
managers.
QUESTION 3
3.1 Name and briefly explain three performance appraisal methods suitable for this company.
(3)
3.2 Suggest two best approaches for conducting performance appraisal interviews. (2)
TOTAL: [25 Marks]