College of Business, Hospitality and Tourism Studies

Department of Management, IR &OHS

HRM703 - Human Resources Management and Development

Final Examination: Trimester II, 2015

QUESTION PAPER

This examination constitutes 50% of total assessment of this unit and students must score
50/100 in this examination in order to pass this unit.

INSTRUCTIONS

1. Time Allowed: 3 HOURS with additional 10 MINUTES reading time.

2. All answers are to be written in the Answer Booklet provided.
3. Write your ID Number on ALL pages of your Answer Booklet and any extra sheets that you use.
4. This is a closed book examination. You are not permitted to access any books, notes or other
forms of written or electronic materials.
5. Attach the extra sheets securely at appropriate place before handing-in the Answer Booklet to the
supervisor.

SECTIONS QUESTIONS MARKS

Section A: Short Answers 7 Questions. All compulsory 56

Section B: ESSAY 2 Questions. Answer only 1 24

Section C: Case Study 1 Question. Compulsory 20

TOTAL/WEIGHT 100/50%

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SECTION A SHORT ANSWER QUESTIONS (56 MARKS)

There are seven (7) questions in this section. You are required to ANSWER ALL SEVEN (7) questions.
Each question is worth 8 marks.

QUESTION 1

Analyze three challenges faced by Human Resources Managers in Fiji with respect to people, the most
important resource of any organization.

QUESTION 2

Identify and discuss two external environmental influences that impact Human Resources Planning.

QUESTION 3

Termination of employees is regulated by employment law. You are required to discuss an employees
right of review in the event of termination option exercised by the employer.

QUESTION 4

Employee selection process could contribute to achieving organizational outcomes and sustain its
competitive position in the market. Critically analyze the need to validate employee selection process.

QUESTION 5

Discuss the relationships between strategy, performance management and performance appraisal
and its implications for Human Resources Practices and Organizational Development.

QUESTION 6

Analyze and discuss the need to link remuneration policies and practices with an organizations
strategic business objectives.

QUESTION 7

Employee welfare and wellbeing is critical to sustaining a work culture that promotes employee
wellbeing, engagement and higher productivity. Identify and discuss the strategies and options that
management and employees must adopt to create a safe and healthy work environment.

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SECTION B: ESSAY QUESTION (20 MARKS)

There are TWO (2) questions for this section. You are required to answer ONLY ONE (1) from the given
choice. Each question is worth 20 Marks.

QUESTION 1

Successful Career Planning and Development has benefits for organization and employees. Discuss
some potential benefits of effective Career Management and Planning for employees and how this
approach could enhance organizations overall competitive position and effectiveness.

OR

QUESTION 2

Many Organizations HRM Policies and Practices give little consideration to the Diversity of workforce
and implications of Diversity for the effective and use of employees individually and in groups. Discuss
and analyze the importance of managing workforce Diversity for securing optimum results for the
organization.

SECTION C CASE STUDY (24 MARKS)

Refer to the Case Study given below and answer ALL the questions that follow.

FIJI AIRWAYS STAFF TO EARN A SHARE OF 2013 PROFITS

Staff and Management to benefit from Airlines Success

Monday, 14 April 2014: Fiji Airways, Fijis National Airline, today announced that the airlines staff and
management will earn over F$1.25m in profit-share and bonuses, as a result of the companys financial
performance in 2013 (nine-month period ended December 31st). This is the first profit share payout for
the National Airline since the plan was approved in principle by the Board in the last year.

Stefan Pichler, Managing Director and CEO comments: It was one of my key short term objectives to
get this great initiative activated for the last financial year. We want to become the employer of choice,
and an organisation which rewards its people for good performances. We all have to share good and
bad times together. And when we deliver on our key business objectives, everyone should benefit.

This profit share payout is testament to the teams commitment, culminating in a solid financial result
2013 for the Airline Group. I thank each and every one of our people for the achievements weve made
as a team, and I thank the Board of Directors for their approval of this payout. I have high hopes that
this is only the start of a journey of exceptional performances every year, so we can share in the success
even more in the future.

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He adds: It was not an easy decision to make as we need every dollar to fund our new and enlarged
fleet and also want to pay off our debts as quickly as possible. But, it is a commitment to our future as
the winning team of Fiji Airways!

A total number of 810 non-management employees will each receive F$1,400 each. This number
includes employees of Fiji Airways wholly owned subsidiary Pacific Sun (soon to be Fiji LINK). The total
profit-share payout amount for staff is F$1.04m. Fiji Airways and Pacific Suns 67 management staff will
receive a management bonus of F$4,000 each, subject to taxes and superannuation deductions as
required. Those management bonuses will total $0.258 m.

In addition, non-management staff for both airlines already stands to earn quarterly KPI-related bonuses
of up to $1,200 per year, on achievement of key business objectives. In 2013 alone, Fiji Airways paid
non-management staff a significant amount in KPI-related bonuses.

Mr. Pichler adds: Our quarterly KPI payouts and our now implemented profit-share program reward
people and focus on the basics of what makes a great airline safety, operational excellence and great
customer service. We firmly believe that these incentives will lift our game, so were able to serve our
customers better.

He continues: All stakeholders of Fiji Airways should be united in their efforts to make our company a
world class boutique airline, and to run safe and secure airline operations. We are all sitting in the same
boat and in order to get to our common destiny, we have to row in one direction, in a coordinated way.
Thats why we need to share our profits and reward target achievements!

The Air Pacific Group, which includes Fiji Airways, Pacific Sun and a stake in the Sofitel Denarau Resort
and Spa, recently reported a net profit after tax of $14.5 million for the nine month period ended 31
December 2013, compared to an operating profit before income tax of $17.8 million for the preceding
twelve month period ended 31 March 2013. The nine month performance was driven by an increase in
passenger numbers by 2.5% with additional revenue of 1.0%.

Source: http://www.fijiairways.com

Answers the following questions from the case study:

1. Discuss the rationale for this profit sharing and bonus program. (5 marks)
2. Discuss the potential benefits of gain sharing and its relationship with employee motivation
strategy. (7 marks)
3. Critically evaluate ways in which Fiji Airways is gaining competitive edge over its competitors
from the profit sharing program. (5 marks)
4. Analyze and discuss how reward strategy contributes to the achievement of corporate goals of
Fiji Airways and its impact on Performance and Productivity of the overall organization.
(7 marks)

THE END

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