Permaja Resources Corporation has the policy of promoting employees from within the organization on a company wide basis. Seniority is based on the length of service and the performance ratings.

Rod Santos was hired as mechanical engineer trainee on March 20,2017 and got a performance rating of very satisfactory. He was a trainee for six months before his promotion to Engineer I at Section A of the machine shop section.

Roger Santiago was hired in January 2018 as engineer trainee in Section B of the machine shop had a performance rating of very satisfactory for the last two years. Both Santos and Santiago are mechanical engineering graduates of a prestigious school.

The position of supervising engineer in Section B was left vacant with the promotion of Art Real to Plant Superintendent of both section A and B. Due to the seniority rule, Rod Santos was promoted to the post. While Art would like to recommend Roger Santiago to the post, the HR department policy on seniority rule had to be applied, hence the intention watered down when he talked to the HR manager. Art talked to Rod Santos about his case and Rod Santos understood that Roger Santiago was also interested in the position.

One month later, a major machine broke down and Roger Santiago single-handedly worked diligently on the machine and completed it in due time to meet the customers’ demand. During a break time after the successful repair of the machine, Rod Santos, in the presence of the other workers, complemented the efforts and expertise of Roger Santiago. “Roger, thanks for the excellent work you have done. You are the best engineer around here and I would like you to know that I appreciate your effort very much. You have the knowledge, skills and experience around here and you are the number one engineer along this line.”

With the compliment, Roger Santiago resorted a little sarcastically, “I know how all these things run here as I am one of those who installed that machine. I know more about this whole thing than you do. If only the HR department knew how to recognize people with potential, you would not be here in the first place.”

Write the answers in essay format. You may, however, use bullet points, diagrams, tables, or any graphs to support your arguments.
The essay should be well organized, that is, it has an introduction, body, and conclusion (1200 words).

Referencing : Use Harvard referencing style for in-text citation and make a table of references at the end.

Research: Use a minimum of two additional sources of information.

Question 1
An organization’s compensation scheme is key to its ability to attract, motivate and retain essential staff members. A number of different compensation systems exist; choose organizations that apply the merit pay plan in compensating its employees. Explain how is the Traditional Compensation Approach Different from the modern one you choose?

Question 2
Explain how a company can build an internally consistent compensation system. Support you answer using the same company you researched. Explain how internally consistent compensation systems and competitive strategy relate to each other.