Frans Buthelezi is the owner and managing director of Spicoly Plastics, a manufacturing company situated in Cape Town in
Posted: Sun Jun 05, 2022 9:41 pm
Frans Buthelezi is the owner and managing director of Spicoly
Plastics, a manufacturing company situated in Cape Town in the
Western Cape. Although the company is in a growth phase, it is
expanding faster than Frans thought it would. The company currently
employs two administrators and three engineers. Owing to the
expansion, Frans needs to employ another engineer to keep up with
demand. The administrator positions were easy to fill, and Frans
could remunerate them on the same level as the company’s
competitors. However, it took him almost six months to find three
suitable engineers who were willing to work in Cape Town. Moreover,
Frans had to offer the engineers higher salaries due to a shortage
of engineers in the Western Cape. After months of searching, Frans
has finally found the perfect candidate for the engineering
position. The engineer, Thulani, who is from Gauteng, requests a
higher salary than that of the other engineers since he does not
want to settle for anything less than his current salary. In
addition, he must relocate to another province. Given that Frans’
company is in a growth phase, he knows that he cannot afford the
salary Thulani wants. Before Frans makes a final decision, he
realises that he will have to conduct a salary survey to determine
what the going pay rate is for engineers in the Western Cape.
QUESTION 1 1.1 Identify and discuss [9 marks] the external factors,
specifically relevant to the case study, that would have an impact
on Spicoly Plastics’ remuneration decisions. Provide examples from
the case study to support your answer [4 marks]. (13) 1.2 Discuss
the data elements that Frans needs to consider in determining the
remuneration survey sample of the pay rate for engineers in the
Western Cape [8 marks]. Apply your answer to the case study [4
marks]. (12) Total [25]
Plastics, a manufacturing company situated in Cape Town in the
Western Cape. Although the company is in a growth phase, it is
expanding faster than Frans thought it would. The company currently
employs two administrators and three engineers. Owing to the
expansion, Frans needs to employ another engineer to keep up with
demand. The administrator positions were easy to fill, and Frans
could remunerate them on the same level as the company’s
competitors. However, it took him almost six months to find three
suitable engineers who were willing to work in Cape Town. Moreover,
Frans had to offer the engineers higher salaries due to a shortage
of engineers in the Western Cape. After months of searching, Frans
has finally found the perfect candidate for the engineering
position. The engineer, Thulani, who is from Gauteng, requests a
higher salary than that of the other engineers since he does not
want to settle for anything less than his current salary. In
addition, he must relocate to another province. Given that Frans’
company is in a growth phase, he knows that he cannot afford the
salary Thulani wants. Before Frans makes a final decision, he
realises that he will have to conduct a salary survey to determine
what the going pay rate is for engineers in the Western Cape.
QUESTION 1 1.1 Identify and discuss [9 marks] the external factors,
specifically relevant to the case study, that would have an impact
on Spicoly Plastics’ remuneration decisions. Provide examples from
the case study to support your answer [4 marks]. (13) 1.2 Discuss
the data elements that Frans needs to consider in determining the
remuneration survey sample of the pay rate for engineers in the
Western Cape [8 marks]. Apply your answer to the case study [4
marks]. (12) Total [25]