1. TITLE
Manage the design, implementation and administration of compensation in an
organisation
RANGE: Compensation includes all those organisational and managerial
philosophies, policies, processes and practices which encourage, sustain
or reward the organisation’s human resources in accordance with their
contributions, performance, skill, competence and market value. It
includes reward, recognition and remuneration.
2. UNIT STANDARD NUMBER:
11905
3. NQF LEVEL:
5
4. CREDIT
3
5. FIELD:
Business, Commerce and Management Studies
SUB-FIELD:
Human Resources
6. ISSUE DATE:
7. REVIEW DATE:
8. PURPOSE:
This unit standard is intended for persons who are, or seek to be, responsible for managing
human resources management processes within an organisation. Persons credited with this unit
standard are able to manage the design and implementation of compensation strategies,
policies and plans, and to manage the administration of compensation processes.
9. LEARNING ASSUMED TO BE IN PLACE:
It is assumed that people starting to learn towards this standard are able to:

calculate, reconcile, balance and effect compensation using relevant payroll and benefit
systems, and provide advice and support in this regard (unit standard titled “Administer
data, systems, payments and provide advice related to compensation”)..
.
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10. SPECIFIC OUTCOMES AND ASSESSMENT CRITERIA:
Specific Outcome 1:
Manage the design of compensation strategies, policies and
plans.
RANGE: Compensation includes any amount that the
organisation expends to remunerate and reward a
person for services rendered or to be rendered,
adhering to current legislation.
Assessment Criteria
1.1 Compensation strategies, policies and plans are aligned to the organisation's policies
and plans, and are integrated with its human resources management.
1.2 Strategies policies and plans take into account external trends and influences, career
aspirations of employees and resources of the organisation
1.3 The design of compensation strategies, policies and plans are based on consultation
with relevant stakeholders
RANGE: Consultation includes aspects such as job evaluation, job profiling, salary
surveys, job grades etc.
1.4 The design of compensation strategies, policies and plans comply with legislation,
organisational policies and current best practices.
1.5 Strategies, policies and plans are supported by the documentation needed for effective
operation.
1.6 Strategies, policies and plans are reviewed and adapted annually.
Specific Outcome 2:
Manage the implementation of the compensation strategies,
policies and plans.
Assessment Criteria
2.1 Strategies, policies and plans are implemented in accordance with objectives and within
budgets, time frames and resources.
2.2 Implementation problems are identified as they occur during monitoring and rectified
immediately.
2.3 The influence of new external and internal trends are identified and reported with
recommendations for changes to decision-makers.
2.4 The implementation of policies, strategies and plans comply with legislation,
organisation policies and current best practices.
Specific Outcome 3:
Manage the administration of the compensation process.
.
Assessment Criteria
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3.1 Processes for the delivery of remuneration and rewards, which comply with
organisational strategies, legal requirements and needs of employees, are developed in
consultation with stakeholders.
3.2 Procedures for implementation, maintenance and assessment of the compensation
process are clearly documented.
3.3 Effective procedures are established to ensure that changes are implemented as and
when required.
RANGE: Changes include but are not limited to biographical data and taxation.
3.4 Effective procedures are established to ensure that information on compensation
provided to employees is accurate, forwarded immediately when available in
accordance with individual needs.
3.5 Effective procedures are established to ensure actual payments to employees are
accurate, on agreed dates and in accordance with individual needs.
3.6 The effectiveness of processes for the delivery of remuneration and rewards are
regularly assessed.
11. ACCREDITATION AND MODERATION:
1. Anyone assessing a learner against this unit standard must be registered as an assessor
with the relevant ETQA.
2. Any institution offering learning that will enable achievement of this unit standard or will
assess this unit standard must be accredited as a provider with the relevant ETQA.
3. Moderation of assessment will be overseen by the relevant ETQA according to the
moderation guidelines in the relevant qualification and the agreed ETQA procedures.
4. Therefore, anyone wishing to be assessed against this unit standard may apply to be
assessed by any assessment agency, assessor or provider institution that is accredited by
the relevant ETQA.
12. NOTES:
Embedded Knowledge
Knowledge considered to be critical evidence of competence is included in the assessment
criteria explicitly, or can be inferred by performance. This includes knowledge on






Theories/models of compensation and reward management
Global compensation trends
Basic financial management principles
Industry/organisation.
Industrial and organisational psychology
Legislation/policies, including principles of confidentiality.
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Critical Cross-field Outcomes
The following examples illustrate some of the ways in which this unit standard supports critical
cross-field outcomes:
1. Identify and solve problems by using critical and creative thinking by, e.g.,

designing compensation strategies, policies and plans according to the assessment
criteria set for specific outcome 1.
2. Work effectively with others by e.g.,

consulting relevant stakeholders when designing compensation strategies, policies
and plans according to criterion 1.3

identifying and rectifying implementation problems according to assessment criterion
2.2.
3. Collect, analyse, organise and critically evaluate information by, e.g.,

assessing the effectiveness of compensation processes according to assessment
criterion 3.6.
4. Communicate effectively by, e.g.,

providing information on compensation to employees according to assessment
criterion 3.4.
5. Use science and technology effectively and critically by, e.g.,

calculating remuneration according to assessment criterion 3.5.
Role cluster
The SGB: Human Resources Management and Practices has grouped unit standards into four
role clusters in its document “A Framework for Qualifications for Professionals and Practitioners
in People Management Processes”. This unit standard falls into the following cluster:
MAINTENANCE AND ADMINISTRATION RELATED TO HUMAN RESOURCES
MANAGEMENT
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