This business/management problem is solved step by step below, with detailed explanations to help you understand the method and arrive at the correct answer.
ScanSolve AI Answer
Step 1: Calculate the third quartile (Q3) salary. The ordered salaries are: R502 000, R525 000, R550 000, R650 000, R750 000, R800 000. There are n=6 data points. The position of the third quartile (Q3) is given by the formula: Position of Q3 = (3(n+1))/(4) Position of Q3 = (3(6+1))/(4) = (3 × 7)/(4) = (21)/(4) = 5.25 This means Q3 is located 25% of the way between the 5th and 6th values. The 5th value is R750 000. The 6th value is R800 000. Q3 = 5th value + 0.25 × (6th value - 5th value) Q3 = 750\,000 + 0.25 × (800\,000 - 750\,000) Q3 = 750\,000 + 0.25 × 50\,000 Q3 = 750\,000 + 12\,500 Q3 = R762\,500 Step 2: Explain what the Q3 position indicates about the market. The third quartile (Q3) of R762 500 indicates that 75% of HR Manager salaries in the external market are below this amount, and 25% are above it. It represents the upper end of typical market salaries. Step 3: Explain the implications for Nala Bank's remuneration strategy. • Positioning HR Manager salaries at the median (R600 000) would mean Nala Bank aims to pay its HR Managers at a competitive, middle-of-the-road level, aligning with the typical market rate without being a market leader or laggard. This is a cost-effective approach that still attracts a good pool of candidates. • Positioning HR Manager salaries at Q3 (R762 500) would mean Nala Bank aims to pay its HR Managers in the top 25% of the market. This is a market-leading strategy designed to attract and retain top-tier talent by offering significantly above-average compensation, but it comes with higher salary costs. The third quartile (Q3) salary is R762\,500. That's 2 down. 3 left today — send the next one.