College of Business, Hospitality and Tourism Studies

School Of Management IR & OHS

Department of Management IR & OHS

HRM703 HUMAN RESOURCES MANAGEMENT AND DEVELOPMENT

Final Examination: Trimester 2, 2014

QUESTION PAPER

Instructions

Read the following instructions before writing

1. Time Allowed: 3 hours with additional 10 minutes reading time.

2. All answers are to be written in the Answer Booklet.

3. Write your ID Number on all the pages in your Answer Booklet that you use.

Sections Question Marks

Section A: Short Answer 8 Questions. Options 35

Section B: Essay 2 Questions. Options 40

Section C: Case Study 4 Questions. All compulsory 25

TOTAL/WEIGHT 100/50%
SECTION A - SHORT ANSWER QUESTIONS (35 MARKS)

There are nine (8) questions in this section. You are required to answer ONLY SEVEN (7).
Each question is worth 5 marks.

Question 1

A decision to hire or not to hire requires line managers and the HR Manager to clearly identify
the criteria that distinguish successful from unsuccessful job performance and to use only
predictive measures of job success that are valid and reliable. Critically evaluate the two basic
approaches that are used by HR Managers to determine the validity of criteria.

Question 2

Selection procedures vary from organization to organization. Describe the steps involved in a
selection process.

Question 3

Discuss the relationship between strategy, performance management and performance appraisal.

Question 4

McLagen has identified six key areas of organizational change that are impacting HRD.
Evaluation and analyze any five (5) key areas.

Question 5

Today employees know there are no life-long employment guarantees. Differentiate between
career plateau and dual career.

Question 6

Two perspectives have shaped the debate about trade unions and productivity, aligned with the
monopoly face of unions and the collective voice/institutional response face of unions.
Describe these two perspectives.

Question 7

Strategic remuneration involves remuneration practices being aligned with the achievement of
the organizations strategic business objectives. Examine and evaluate the components of a
systematic remuneration program.

Question 8

Discrimination is behavior that is prohibited by the anti-discrimination legislation. Define and

distinguish 3 different types of discrimination
SECTION B - ESSAY QUESTION - (40 MARKS)
There are three questions in this section. You are required to attempt ONLY TWO (2) questions.
Each question is worth 20 marks.

Question 1

The need to develop and maintain satisfying careers is both an employee and organizational
activity. Examine and analyze the process of career planning and development, and consider
factors that can impact upon its success.

Question 2

Managing diversity has become an increasingly important topic in todays business

organizations. Describe the concepts and ideas associated with ways of using and managing
diversity so that it enhances employee contributions to the organization.

Question 3

Human resource development (HRD) has come to prominence because organizations have to
improve their productivity and international competitiveness. Critically analyze this statement.
Do you agree or disagree? Support your answers with examples.

SECTION C - CASE STUDY - (25 MARKS)

You are required to read the case study and attempt the questions that follow. All FIVE (5)
questions are compulsory.

TO BONUS OR NOT TO BONUS

Maureen Brady, CEO of Red Star Fashions, pushed the thin pile of papers away and sighed. It
seems that we have a serious problem. Employee productivity is in decline. We are losing our
competitiveness. At this rate, we will make a financial loss by year end. Does anyone have
anything to say?

Yes, snapped Carolyn Simon, Finance Director. The problem is our people are not motivated.
Everyone gets paid the same irrespective of their performance. The best people became
demotivated everyone sinks to the lowest common denominator.

I agree, interjected Nick Dalmaris, Marketing Manager. We dont reward performance. We

ignore it. It is no wonder that our people arent motivated. Why should they be? What do they get
for doing a good job? Nothing. This place has become a safe haven for non-performers. They get
paid regardless and they know they cant or wont be sacked. It should come as no surprise that
we are losing our competitiveness.
What do you suggest then?, asked Maureen.

Pay people on the basis of their performance not on how long they have been with the
company, replied Nick.

Nick is right, Carolyn said enthusiastically. We need to get away from seniority and switch to
a system of performance-based rewards. We need a bonus system. People should get a bonus for
outstanding performance.

Stephanie, you have been silent so far, what are your thoughts?

Stephanie Magolis, HR manager paused, and then said, The culture of this company is built
around teamwork working together, sharing our knowledge and experiences. Individual
performance rewards will destroy the collegiality that exists. Individual rewards promote
competition. They will trash our cooperative culture. The present system is fair. Seniority-based
rewards recognize loyalty and promote harmony. Individual performance payments do not. All
that will happen is that people will spend all their time maneuvering themselves to gain favour
with their bosses. I am opposed to any change. I believe that the introduction of individual
performance bonuses would have a most negative effect on the moral fiber of this company.

For heavens sake, Stephanie, you must understand that if we wish to attract and retain talented
people, we have to reward them appropriately. Why would a top performer come here?

We want a champion team, not a team of champions, Stephanie shot back. Performance pay is
not about performance, it is about competition and the destruction of a cooperative corporate
culture.

Source: Stone, Raymond J. Human Resource Management, 8th Edition. John Wiley & Sons
Australia,, 08/2013. VitalBook file.

Case Study Questions

All questions are compulsory. Each question is worth 5 marks.

1. Discuss the issues highlighted in the above case?

2. Who do you agree with? Why?

3. What effect does a reward system have on the culture of an organization?

4. If you were the HR manager, what suggestions would you make to improve the
productivity and competitiveness of Red Star Fashions?

5. As a HR student, discuss what other ways you could use to motivate employees of Red
Star Fashions?
The end!!