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UNIVERSITY OF COLOMBO, SRI LANKA

'

FACUL TY OF MANAGEMENT AND FINANCE

Postgraduate

& Mid-eareer Development Unit

Master of Business Administration (Semester II, First half) Examination - July 2012

MBA 537 - Human Resources Management

Three (03) HOllrs

Answer five (OS)questions in all selecting at least two question ftom each part
Answers for PART I alld PART n should be provided separately in two answer books.

PART I
1. i. "All training delivery methods can be classified under cognitive and behavioral
approaches". Explain.
(08 Marks)
ii. What are the components of assessment of training needs? Explain
(12 Marks)
(Total 20 marks)
2.

"Effective staffing decisions begin with human resource planning" (HRP). Elaborate
the statement by using HRP process of the business organization.
(20 marks)

3.

i. What are different types of compensation?

appropriate examples.

Explain your answer with the

(08 Marks)

ii. "Compensationis perceivedby employeesas fair if it is basedon equity". Explain. ..~

(12 Matks)
(20 marks)

PARTll
4.

i.

If you are the Dean of a Business SchoollUniversity, what recruitment and

selection methods would you use to identify and hire effective lecturers?
Rationalize each step and method you suggest. Provide examples where
necessary.
(10 marks)

ii. "Most testing tools for selection do not accurately assess the characteristics of the
job. In fact, most people would say that the testing had no impact on future job
performance." Do you agree or disagree? Explain reasons for your answer.
(10 marks)
(Total 20 marks)

5.

Mr. Amal Perera is the manager of Kaduwela 'Superior Super', a branch of a

supermarket chain. In the month of March each year, he must evaluate his staff in
order for the head office to decide salary increments and promotions. The company
employs forced distribution method to evaluate its employees' performance. Amal
dislikes this whole process of evaluation and always feels bad about himself when he
ultimately submits his staff evaluation to the head office. Amal knows that his staff
also considers the evaluation system to be a nuisance and does not really believe in it.
According to Amal the whole evaluation process is a utter failure.
Why do you think that Amal and the staff dislike the current evaluation system of
the company? Also explain what future problems you would foresee by the
continuation of this performance evaluation system in the company.

(05 marks)
jj

iii

Describe a performance evaluation system that you could recommend to the

company Head office for evaluating employees of Superior Super'. Give reasons
for your answer.

(10 marks)
What should be the pre-requisites for the development of an effective performance
appraisal system in a company? Explain with underlying reasons
(05 marks)
(Total 20 marks)

6.

Shanika, an executive officer of a manufacturing company, contacted her manager,

saying that a coworker was picking on her, and expressed fear that something serious
might happen. For several weeks, she said, a coworker has been making statements
such as, 'You actually took credit for my work and you're spreading rumors that I'm no
good. If you ever get credit for my work again, that will be the last time you take credit
for anybody's work. I'll make sure of that' .
She also said that her computer files have been altered on several occasions and she
suspects it's the same coworker. Her manager tried to convince her that there was no
real danger and that she's blowing things out of proportion. However, she continues to
2

worry. When Shanika confided with her mends about the situation they suggested the
following options:
a) to make a complaint in the police station
b) to make a complaint to the HR department on the grounds of sexual
harassment
c) to forward her issue to the company's grievance handling procedure
d) to go and speak to the company counselor
(Adapted from http://wwW.opm.gov/employment and benefits! worklifelofficialdocuments!
handbooksguideslworkplaceviolencelp2~ l3.asp)
i. Do you think that Shanika is blowing things out of proportion as her manager
suggests? What would be the repercussions of managers manner of handling this
situation?
(03 marks)
ii. I>9 you agree with fair suggestions made by Shanika's friends? Why or why not?
(08 marks)

iii. If you are Shanika's manager how would you handle this situation?
(05 marks)
iv. What should the company do in order to prevent and handle future occurrences of
similar nature?
(04 marks)
(Total to marks)
7. One day, during the night shift, Security Guard at the factory discovered that Bandara, a
minor employee, attempting to embezzle clothes produced in the factory. They also
detained a resident of the area, Ranil, who too was found to be helping Bandara embezzle
the stolen clothes from the factory. The Security Manager forwarded the complaint to the
HR manager. HR manager immediately suspended Bandara, and made a complaint in the
police station against Ranil.

Angered by this incident the residents of the area carried out a protest the following
morning in front of the factory. Ajith, an employee and also a resident of the area was
also among the protesters. He was supposed to have reported to work for the day. The
management was able to pacifY the protesters after some discussions with them
withdrawing the complaint made at the police against Ranil.
Next day Ajith applied for leave citing ill health. Since the management knew he was part
of the crowd of protesters the management asked him to submit a medical certificate,
which he did. But management knownig that it is a fraudulent medical certificate rejected
the certificate and warned him about being dishonest.

3
"

Bandara was later called in for a domestic inquiry and based on the decision of the
inquiring officer; the management terminated his services with the company. The
management also took action against Ajith for unauthorized leave and dishonesty and
demoted his to a lower position. In addition, the management took action against the
security guards on duty during the incident on negligence, for allowing an outsider to
enter the factory premises. The security guards were thus suspended without pay for two
weeks. While Ajith and the security guards went to their trade union claiming unfair
treatment by the management, Bandara went to Labour Tribunal, for unfair termination of
employment.

1.

Do you agree with the way that the HR had handled the situation with Bandara,
Ajith and the security guards? Why or why not?
(10 marks)

i1. If you were to handle this situation then how would you have acted?
(10 marks)
(Total 20 marks)

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