The Association of Business Executives

QCF

Human Resource Development Examiner’s Report

Unit Title: Human Resource Development

Unit Code: 5HRD

QCF Level: 5

Date of Examination:

6th December 2013

Structure of paper: Answer all three sections

Section A: Answer all four questions Q1 Q2 Q3 Q4

16 marks 16 marks 16 marks 16 marks

Section B: Answer one question Either Q5 or Q6 18 marks

Section C: Answer one question Either Q7 or Q8 18 marks

Total marks available for the paper 100 marks

Introduction

The overall pass rate for this paper was disappointing. Many candidates who achieved a

pass had a result that was at the lower end of the 40-49% range. The proportion of

candidates that received a merit grade or above was small in comparison. In several of the

centres there were too many candidates who seemed to show very little knowledge and

understanding of all the learning outcomes and were very ill-prepared. One can only

speculate why this should be; these centres might want to investigate the possible reasons

that this is occurring in order to determine whether the situation can be remedied for the

future. Other centres had clearly worked hard to guide and prepare their candidates and

enjoyed a more positive result. A surprising number of candidates were unable to provide

adequate responses to Questions 1 and 3 — these are the foundation and framework for the

entire subject and should be learned thoroughly. Questions 4 and 5 were based on concepts

that seemed unfamiliar to the majority of candidates and most of the answers offered were of

poor standard. Many candidates also had difficulty answering Question 7.

A number of candidates wrote very long, convoluted and complex sentences with no

punctuation. This sometimes undermined the impact of such answers and made assessing

such answers very difficult because the intended meaning was unclear. Similarly, there were

instances in which the structure of sentences failed to clearly convey the intended meaning.

Unfortunately, for these candidates the only remedy to overcome such barriers is more

concerted guidance and practice in writing English. As in previous sessions, the common

error of producing comments for which no marks were available at the expense of comments

for which marks were available was once again apparent. Candidates need to be aware that

some questions will require a definition or description of a concept in part (a) and application

of the concept in part (b). Students need practice doing this and think about each issue in

more depth. They must attempt to provide answers that are more than just descriptive to

earn good marks.

Section A

Question 1:

“An organisation that invests in its human resources is usually engaged in the

processes of ‘training’ and ‘development’. To the HR practitioner these terms convey

different meanings.

(a) Compare and contrast ‘training’ and ‘development’, giving an example of each.

Suggested Answer:

Essentially, training tends to be short term, trainer-centred and operational in its focus, whilst development is more trainee-centred and strategic in focus. Training usually refers to the use of planned and systematic processes that are aimed at enhancing the skill, knowledge and attitude of an individual in a particular task or job. These processes are generally focused therefore, on the current demands of specific work roles.

They are usually short term in nature; the underlying objective being that the learning can be immediately applied to the work role. Examples might be demonstrations or courses on health and safety issues. Development generally refers to formal and informal processes that are not job-specific, but

refer more to an individual’s personal growth and fulfilment of their potential to take on

responsible and demanding roles in the future. The definition can also apply to work groups.

Some examples might be long-term courses, professional development logs, mentoring, etc.

(b) Discuss why some organisations are more concerned with training.

Suggested Answer:

Points discussed might include:

Downsizing in organisations and changes in technology have created operational circumstances which now require new skill sets. Regular training sessions to update skills in advances in the technology used may be required. Equally, downsizing has perhaps enhanced the need for a multi-skilled workforce.

Production in some firms may be capital-intensive and staff employed are semi-skilled and easily replaced with minimal learning and training required.

The focus may be based upon management philosophy. Some firms see labour as a resource and a cost and only to be invested in as and when the need arises. The structure of the organisation may be bureaucratic and employees are confined to specific job roles.

Smaller organisations may have limited budgets, expertise and facilities and cannot afford expensive and sophisticated development opportunities.

Many organisations adopt a short-term view of operations and profitability and argue that training contributes more to organisation success and profits than development because the outcomes are measureable.

Management in some organisations continue to fear that offering extensive learning opportunities will make staff more marketable and able to demand better terms and conditions, or encourage them leave to secure better terms with competing organisations. Entire sectors in an industry may collectively take the view that development only serves to raise the level of competition and the rewards for labour.

(c) Discuss why some organisations are more concerned with development.”

Suggested Answer:

Points discussed might include:

Some take the view that every experience is a learning experience, particularly at work, so learning should be nurtured and encouraged. As a consequence, there will be longer-term benefits for employees and the organisation as a whole.

The longer-term view of organisation growth and development inevitably encompasses individual growth and development. Development processes are therefore more strategic and assist in producing a highly competent workforce that provides a competitive edge.

By encouraging development, individuals are more prepared to take ownership of their

learning and learn how best they learn. Learning becomes more trainee and less trainer-centred. Employees will find ways of enhancing their skills within the job and possibly through indirect means. This may reduce the need for formal training sessions off the job.

Specific job training has become more the responsibility of line managers and can be conducted on an informal and daily basis within a formal environment of development and opportunistic learning. Some training requirements can also be satisfied using e-learning methods, which allow for more investment in development processes.

A culture of development, it is argued, promotes creativity and innovation, enhanced customer service and quality, improved cooperation and working relationships.

Development encourages workforce planning and objective setting and promotes the integration of employee and organisation development.

Learning Outcome 1: Understand the role of human resource development within organisations.

Examiner’s Comments:

For part (a), some of the answers submitted were weak. Future candidates are advised to

develop a thorough understanding of the terms ‘training’, ‘development’ and ‘learning’; as

knowledge of these concepts is essential because they are fundamental to the subject and

are the foundation for other concepts across the syllabus. Some candidates provided very

good answers and earned full marks, mainly because they had accounted for the

requirements of the question. The need to compare and contrast training and development

was often ignored, as was the need to provide examples of each. As a result, these answers

were awarded fewer marks. Both processes attempt to provide employees with knowledge

and skills; however, ‘training’ is more job specific, generally short term, with detailed

objectives and prescribed outcomes; while ‘development’ refers to processes that involve

broader and personalised learning and are generally continuous. Some examination of these

issues was needed for a distinctive answer.

For part (b), the reasons for organisations preferring to concentrate solely on training were

sometimes lacking credibility. Statements such as, “The organisation wants to motivate the

employee”, needed some justification. In such instances, candidates should ask questions

such as: “Does the employee require motivation?”, “How can the organisation be sure the

training will be motivational?”. More holistic reasoning was required for better answers based

primarily on the likelihood that such organisations are mainly concerned with operations and

will train only as a matter of necessity. Many organisations are too small to adopt a

development approach, because, for example, the HRD budget and expertise may be

limited, and the benefits of development may be of little value.

For part (c), once again, the reasons given often lacked credibility and needed to be based

upon the size of the organisation, the nature of its markets, the resources it has available

and the perceived benefits from having a highly developed workforce. On the other hand,

organisations that are large, but whose operations are technological and capital intensive,

may have little need for employee development processes. Statements such as,

‘development is less expensive’ needed some justification (i.e. less expensive than what?).

The scale of development processes will involve considerable expenditure, but hopefully will

be outweighed by higher profits and market share. The fact that employees can learn

incidentally, any time anywhere does not make the process cheap. As some correctly

argued; however, organisations facing intense global competition, may achieve competitive

advantage by having a highly developed workforce who is engaged, creative and innovative.

Question 2:

(a) “Determine two ways in which an individual employee may benefit from being

involved in a professional development programme.”

Suggested Answer:

The individual should be able to look forward to better future prospects in terms of income and status and become more marketable so that such prospects can be sought in other organisations if necessary.

A benefit of a professional development is that the individual becomes more disciplined and organised, ethically minded, taking ownership of their learning and learning how to learn.

Some of the learning is likely to come from association with other experienced professionals through lectures, networking, mentoring and other development processes.

The individual will also benefit from support from the organisation in terms of finance, study time and access to a wide range of learning materials.

There will also be support and encouragement from a professional institute where membership is required, which will promote continuous professional development and the means of keeping up-to-date with new developments in the field, particularly changes to legislation.

Membership of an institute and fulfilling its qualification requirements, should also establish a wider network of relationships in other organisations; it should also raise one’s standing and credibility in society generally and in the profession.

(b) “Determine two ways in which the organisation may benefit from encouraging its

employees to participate in a professional development programme.”

Suggested Answer:

The organisation should be able to benefit from a system of succession planning and continuity of high performance in management and other professions, such as Accounting.

The existence of a more professional workforce will provide up-to-date knowledge of external conditions and what other organisations are doing to cope with or overcome them.

A more knowledgeable workforce should also promote creativity and innovation, improved problem-solving and decision-making and preparedness to question the status quo and be responsive to change.

Development programmes should provide a pool of talent. Although not all of the participants perhaps, may be offered permanent positions, the organisation has the benefit of being able to select the best of them.

Equally, such programmes, particularly in management development, should provide more competent leaders that are nurtured and motivated to support the mission, values and goals of the organisation.

It may be argued that, in theory at least, all of the above factors should lead to gradual

development of the entire organisation.

Learning Outcome 2: Be able to critically analyse learning and development theory.

Examiner’s Comments:

Candidates needed to consider the marking structure for this question more carefully. It

asked for two individual benefits in part (a) and two organisational benefits in part (b); with 8

marks available for each part. This should have indicated that for 4 marks each benefit had

to be described in some depth; however, too often this was not the case. Candidates need to

be more mindful of the structure of the question and be guided as to the depth of answers by

the marks available. Single line statements such as, ‘the employee will become more

marketable’, were awarded just 1 mark. Although such comments were acceptable, they

needed elaboration. Firstly, what does ‘marketable’ mean? Secondly, this statement

presupposes that there is an external market that has plenty of career opportunities;

similarly, the argument that the individual will become more professional — this is true, but

candidates need to explain how and why. One reason is that the development of the

programme is likely to be designed around the nature of professional practices; equally

membership of a professional institution is likely to have a code of ethical and professional

conduct which has to be obeyed.

In part (b), the arguments offered were acceptable, but again needed further elaboration. A

frequent argument was that the organisation would benefit by maximising profits —

candidates needed to explain what that means. In reality, by encouraging career

development, organisations may improve their profit levels, but it is not inevitable and cannot

be guaranteed. Candidates must avoid such vague and unjustified statements. A notable

failing in part (b) was the description of further benefits to the employee deriving from a

career development programme. Clearly, these answers were not awarded marks because

the question asked for organisational benefits.

Question 3:

(a) “Explain four benefits to an organisation from having an effective system of

Human Resource Development.”

Suggested Answer:

The following are some examples of organisation benefits from an HRD system which could lead to improved organisation performance:

Most individuals regard learning and development as valued rewards which will raise their work performance and which in turn should increase an organisation’s productivity and quality of products and service.

Staff should become more versatile and flexible, which should hopefully raise the levels of individual motivation and workforce morale and reduce labour turnover and conflict.

Management development programmes should improve the effectiveness of line managers and their leadership skills. This should reduce levels of interpersonal and performance-related problems and develop greater trust and confidence in employment relations.

An effective system of HRD should also produce a reduction in operating costs, partly through increased efficiency and productivity by fulfilling targets and deadlines, but also by reducing wastage and re-work. In addition, it should lessen the need for close supervision.

Effective systems of recruitment, selection, induction and training in health and safety should also contribute to a reduction in operating costs mainly by avoiding premature resignations and fewer accidents and disruptions to work.

Effective HRD may contribute to a positive psychological contract by fulfilling its social obligations to employees by enhancing their employability, particularly when job security and career progression cannot be guaranteed.

Effective HRD can also ensure continuous compliance with legal and regulatory requirements and may also enhance the organisation’s ability to attract and retain high-calibre employees and develop a positive employer brand.

There is also the potential for improved communication and employee engagement throughout the organisation, enabling more proactive responses to changing external conditions.

(b) “Discuss two ways in which an improvement in the organisation’s performance

resulting from an effective HRD system may be measured.”

Suggested Answer:

Possible measures outlined could be:

Growth of the organisation in terms of market share, number of employees, share price.

Increases in profit sales revenue per period, reduction in total costs and contractual penalties, reductions in the volume of rework, rejects and customer returns.

Reductions in recruitment and selection costs, labour turnover, grievance and disciplinary events.

Benchmarking against the performance of competing organisations in the industry.

Improved measures in the functions contained in a Kaplan and Norton scorecard.

Learning Outcome 5: Understand the importance of human resource development.

Examiner’s Comments:

For part (a), apart from a small minority, candidates were able to demonstrate their

understanding of what is meant by an effective Human Resource Development system.

However, marks were again limited because many answers only gave one line statements

that were acceptable, but were not justified. Typical statements given were, ‘It helps the

organisation to achieve:

its goals”

profit maximisation”

high levels of productivity”

high morale and motivation”

effective communication”

competitive advantage”.

To attain higher marks candidates needed to go a little further with each point made by

explaining how HRD can bring about these benefits. For example, statements such as, ‘An

effective HRD system can increase the organisation’s productivity’ would be awarded more

than 1 mark if they were provided with some substantive reasoning regarding how the HRD

function can bring this about. Some candidates trotted out a longer list than four such

statements; however, the extra items in the list were generally disregarded because marks

were available for only four, as per the question.

For part (b), a few good answers were submitted by candidates. Weak answers identified

processes or functions that cannot be measured — at least not with any accuracy and

certainty. Typical examples were ‘effective communications’, ‘the degree of employee

engagement’, etc. The appraisal system was often quoted, but usually referred to setting

objectives for the individual and assessing whether they are achieved. Any improvement in

one person’s performance is not really a convincing measure of the effectiveness of HRD;

the system would need to gather measurable appraisal data on all employees to have any

credibility. Other answers offered Hamblin’s model for evaluating training events. Again, this

process lacks credibility unless it encompasses the evaluation of a series of events over

time. Candidates need to consider their arguments more carefully to assess their logicality

before writing them.

The best answers referred to measures, such as improvements to productivity, revenue and

profit; also labour turnover and retention rates. Similarly, there was reference to the

balanced scorecard and benchmarking — these, at least, are normally based on tangible

results. Candidates should note, however, that even these are proxy measures which may

not be very precise; other factors may contribute to improvements in productivity, turnover

and profit, whilst other variables may hinder the achievement of objectives, none of which

may have anything to do with HRD.

Question 4:

“Some organisations may choose their more talented management development

trainees to conduct special assignments. Experience has shown, however, that this

development process can produce some problems for the trainees.

(a) Explain what is meant by ‘special assignments’, as part of a management

development programme. Include an example of a special assignment in your answer.

Suggested Answer:

Special assignments - sometimes referred to as ‘special projects’ - usually refer to larger-

scale exercises or projects that involve researching and collecting data from which suitable

conclusions and recommendations may be presented. They provide a highly active

opportunity for applying knowledge and developing creative, problem-solving, decision-

making and reporting skills. The outcomes may well be assessed to determine the extent of

the individual’s learning and suitability for permanent employment. It could represent a final

test in a management development programme.

(b) Discuss why a manager might allocate special assignments to more talented

management trainees.

Suggested Answer:

A major purpose of special assignments is to provide trainees with further opportunity to develop particular skills and competences when opportunities on the job are limited. For example, like placements, they may involve becoming a member of a cross-functional team to broaden individual perspectives, as well as developing team working skills. Other purposes could be:

Some trainees may demonstrate a particular flair for a particular organisation function or department. For example, a trainee may show a leaning toward marketing; a special assignment in marketing may enable the individual to learn more about the function and demonstrate further potential for a permanent position in that department.

The assignment may involve visiting a number of operations in various locations. The purpose may be to broaden the trainees’ experience of the entire organisation and to become more familiar with its entire operations. It may also permit an extension to their network of contacts and establish new relationships.

Trainees showing particular leadership talents may undertake a leadership or group development exercise to further enhance their leadership skills. It may also provide a means of validating the potential that a trainee is believed to possess.

Ideally, the assignment should relate to a real organisation problem. The process of researching it should provide the opportunity for trainees to demonstrate and enhance their problem-solving and decision-making skills.

Equally, trainees may be asked to undertake research into the possibility of establishing some new system, such as performance-related pay. The organisation should benefit from the outcome and the trainees should benefit from the experience.

The assignment may be a special test at the end of the training programme to enable the organisation to short-list possible candidates for permanent positions, or allow advancement to a more demanding or higher level.

(c) Discuss the possible problems a management trainee may experience whilst

carrying out a special assignment.”

Suggested Answer:

Possible problems encountered might include:

Poorly designed assignments with unclear objectives may be too demanding and far beyond the capabilities of most trainees, who may become frustrated and defensive, lose confidence in their abilities, thus undermining their longer-term prospects.

Those more technically oriented may have difficulty devising methods of gathering qualitative data and accounting for behavioural contingencies.

Alternatively, those who are more gregarious and socially oriented and, to date, have been involved in group development activities, may take some time adjusting to the need

to perform individually if they have not been prepared.

It may be perceived that interim appraisals of a trainee’s performance and final assessment criteria focus too much on failures rather than achievements. This may cause anxiety, resentment and even the possibility of a grievance on grounds of prejudice and discrimination.

Such assignments must be real in their context and requirements. Trainees must be assured that their performance and its assessment are relevant to possible positions they may hold. In fictitious scenarios, the trainee may resort to unrealistic pretence and play acting.

Any recommendations that are presented should be operationalised; otherwise trainees may feel their efforts were wasted and their recommendations undervalued. This outcome may lower their commitment to other assignments and the entire development programme.

Despite an effective performance in a final assignment, some trainees may not eventually achieve a permanent position which may lead them to feel disenchanted with the entire profession and pursue another career.

Learning Outcome 6: Understand the purposes, relevance and value of specific management

development initiatives and programmes.

Examiner’s Comments:

The concept of ‘special assignments’ or ‘projects’ seemed to be unfamiliar territory to all but

a minority of candidates. This needs to be remedied because candidates are learning

methods frequently used to assess trainee competences, particularly in the field of HRM.

Many might be more familiar with the term ‘special projects’ and might have done better had

this phrase been used instead. The best that the majority of candidates were able to offer is

that they are specific tasks that do not necessarily relate to a trainee’s normal duties. The

examples given were sometimes dubious; for example, a trainee being asked to a chair a

meeting. Some, however, were rather spurious. A special assignment usually requires the

nominee to investigate some issue, event, process or system; and gather relevant data,

draw conclusions and present recommendations to management. They are highly active

methods of developing problem-solving, decision-making and reporting skills.

A common weakness was highlighted in the answers to both parts (b) and (c). In part (b), a

reason often quoted was that the nominee possessed the abilities and potential to succeed

in the task. In part (c), it was then stated that a problem might be that they do not possess

these abilities. Both answers are unlikely to be the case, unless there is some appropriate

justification for it. For example, the superior may be incompetent and failed to evaluate the

suitability of the trainee to the task and allocates assignments on an ad-hoc basis;

alternatively, the superior is ruthless and chose the trainee for personal reasons and

anticipated failure. These reasons, however, are improbable and the superior’s

incompetence would soon be noticed.

Other reasons for assigning such projects were: to motivate the trainee; to stretch and

challenge individuals; to allow them to demonstrate and advance their potential; to groom

them for permanent positions.

The problems faced included lack of resources, lack of support and cooperation, and the

jealousy of other trainees. These reasons were a little less credible because one would

expect a competent superior to ensure that resources and support will be available before

allocating the project.

Section B

Question 5:

“It may be argued that two of the major determinants of organisational culture are

senior management attitudes and the assumptions they make about managing and

organising a company.

(a) Assess the links between senior management attitudes and organisational culture.

Suggested Answer:

The following are possible arguments to be explored:

Management attitude may be highly profit oriented and of a short-term nature. The culture therefore may be heavily focused toward low-quality products at low cost and high turnover.

Alternatively, the attitude may be geared towards customer satisfaction. The culture therefore may be based on quality and the importance of after sales service.

Management may hold the view that the workforce is a resource like any other. The culture may be task-orientated, involving close employee control and direction with little employee communication, autonomy and job enrichment.

Learning and development may be regarded as time consuming and costly, so few if any resources are available for development. Equally, the opposite may be the case; development is highly regarded and valued, so development is highly organised and related to individual performance.

Management attitude may be toward long-term success and organisation development. Learning and development activities are numerous and varied with a particular focus on managing knowledge, increasing market share and the creation of innovation through consultation and innovation.

The culture may be one of corporate social responsibility and ethical behaviour based on the attitude that they are important determinants of organisation reputation and longer customer and employee loyalty.

(b) Management sometimes makes assumptions about the correct way to organise and manage a company. Critically assess three management assumptions that may prevent the company from

benefitting from a range of HRD strategies.”

Suggested Answer:

Values, beliefs and assumptions are established by influential senior managers in an organisation; these will be perpetuated by their behaviour, the systems, artefacts, rituals and

routines that are adopted. The nature of the values, beliefs and assumptions may therefore prevent the organisation from attaining its learning and development potential. Some examples might include:

The tendency in a bureaucratic culture to assume that control and efficiency in the organisation is best achieved by focusing on functions, job positions and tasks. Emphasis will be on training in specific job skills within specific functional boundaries and maintaining the status quo. The benefits of organisation development, innovation and functional integration may be lost.

Functional boundaries may create isolation and protectionist behaviours, resulting in conflicts for resources and preponderance to focus on functional objectives at the expense of those of the organisation. A culture of blame and risk aversion may take root.

Similarly, management may believe in strong budgetary control from the top and insist that functional managers take responsibility for operating within their allocated proportion of the total budget. This may become the single criterion by which functional managers’ performance is measured. The likelihood therefore, is that spending on training and development will be restricted to critical activities.

Organisations that are task- or project-based may assume that most attention should be given to project completion at minimum cost. Opportunities for learning by project teams are not taken and post-project evaluations are not organised. Information and learning is not shared or recorded which can be used for the benefit of future projects when the team is disbanded.

Some managers may have the tendency to focus on past events, pay little attention to changing external conditions and the need for learning and organisation change. They may even blame external factors for poor organisation performance rather than being proactive and trying to do something about slow-building threats.

In power cultures and possibly personal cultures there may be a tendency for mistrust, secrecy and hoarding of information which may be a valuable source of learning. Professionals working in a partnership may be more concerned with expanding their clientele and specialising in a particular area which is of benefit to them but of little value to the organisation. Expertise they may have in other areas is lost to the organisation as a whole.

Managements adopting a top-down authoritarian approach may suppress consultation and upward communication in the belief that they know better than subordinates about running an organisation. Senior management may not promote a willingness to learn and spend very little time considering learning and development processes and the benefits for the whole organisation.

In short, an organisation’s culture can be seen as a force that binds the organisation together and supports and encourages learning, or a force that separates factions and leads to conflict which inhibits learning.

Learning Outcome 3: Understand the organisational factors that influence learning and development.

Examiner’s Comments:

The weakest answers here argued that senior managers have ‘attitudes’, and that culture

refers to ‘the way we do things around here’, without expounding on any connection between

them. The immediate question candidates should then have asked is: ‘why is it the way we

do things around here?’. The rationale was to test the candidates’ realisation that culture is

fluid and not an object, and is principally determined by the values, beliefs, attitudes and

preferred behaviours of senior management. A further link is the approach to the HR

adopted as based upon management’s collective view of what is appropriate and likely to

bring success to the organisation. A further failing was the assumption that culture

determines management style; however, since culture is an environmental factor and non-

human it does not, of itself, have the capability to determine anything. Even employees

decide to live with what it is or what it is not.

Higher quality answers were expected for part (b) of the question because students should

understand that managers will often make strategic decisions based on their values and

beliefs, but equally their assumptions. These assumptions may have a positive or negative

effect on employment relations and the provision of training and development. A wide range

of assumptions might have been discussed; the most likely expected were managers

assuming that the operational approach to running the organisation is best and that view

employees as a cost to be minimised and controlled. A further assumption might be that

employees cannot be trusted and strategic information should not be disclosed. Both

assumptions are likely to place limitations on the sharing of information, transformation of

skills and the necessity and provision of training and development opportunities. Very few

candidates produced answers that focused on such broader organisational issues. Overall, it

seems candidates found this question a difficult one.

Question 6:

(a) “An organisation may adopt several different types of business strategy. Two examples are ‘cost leadership’ and ‘customer service’ strategies. Compare and contrast a cost leadership business strategy with a customer service

business strategy.”

Suggested Answer:

A cost leadership strategy represents one of Porter’s recommended generic business

strategies based upon his five forces market analysis. It may be defined as an

organisation’s attempts at producing products at the lowest possible cost without

compromising quality and customer value. This may then enable the organisation to

undercut the prices offered by its competitors and achieve a competitive advantage.

An alternative strategy suggested by Porter is a differentiation strategy. Arguably, a

customer-based strategy could be one form of differentiation. It may be defined as the focus

that an organisation places upon identifying the requirements of its customers and

convincing them that the organisation has on offer the means to best satisfy those

requirements. The belief is that customers will highly value products and services that

satisfy their needs, and for which they will be prepared to pay a premium price. The

organisation will need to have quality, marketing, delivery and after-sales strategies aimed

at creating in the minds of customers the perception that they are receiving something that

is different and of value.

(b) “You work for an organisation that employs a customer service-based business strategy.

Identify and justify three training and development activities which your organisation

would need to carry out in order to sustain this strategy.”

Suggested Answer:

Some possible activities that could be discussed are:

If the organisation has its own marketing department it may hold regular brainstorming sessions for developing new marketing methods and advertising slogans. They might involve a variety of participants from a range of job roles and departments; and they might be necessary because previous methods quickly become outdated.

It is probable that there will be periodic reviews of customer complaints, product returns, results of customer surveys and competitor strategies. The learning from these processes should enable effective decisions to emerge on how best to respond strategically.

Organisations that produce products that are based on specific technologies may organise quality circles and problem-solving groups to research into alternative applications for the technology, such as ICT products and other innovations, such as improvements in quality, methods of creating better accessibility to sales; for example, through e-commerce. These may be justified because competitors are doing the same.

There is likely to be a need for training in handling customer complaints, particularly those who are irate, frustrated or merely difficult to please. Similarly, training may be needed in dealing with handling customers adopting criminal behaviours, such as stealing. These are difficult areas, so sales staff cannot be expected to deal with such events without training.

Training on presentation and communication skills may be needed, particularly when new employees are appointed, if only to ensure that they handle customers appropriately.

Line managers and customer facing employees may require updating on new legislation relating perhaps to credit sales agreements, customer rights, etc., as well as updating on new product lines. Customers would normally expect sales assistants to be able to provide answers to their questions.

There may also be need for regular training courses for those engaged on product servicing and breakdowns. After sales service can represent an important element of a customer-based strategy.

Each of the above may be justified in terms of customer choice, retention and satisfaction; also in terms of market share, profitability, reputation and competitive edge.

Learning Outcome 3: Understand the organisational factors that influence learning and development.

Examiner’s Comments:

A proportion of the answers to part (a) of this question were good, demonstrating reasonable

understanding of both ‘cost leadership’ and ‘customer-based strategies’, which were

described fully and effectively. The former focuses on producing products at the lowest

possible cost without compromising on quality and customer value; the aim being to

undercut the prices of competing products. The latter focuses on quality and customer

satisfaction and aims to convince the customers of high value and the best means of

satisfying their needs. Some answers from candidates, however, showed very little

knowledge of either strategy and provided inaccurate guesses, which often earned no

marks. Other candidates showed some knowledge of customer-based strategies, but none

of cost leadership. The title ‘customer-based’ was a guide for some who were able to

enlarge it slightly to earn a couple of marks. Unfortunately, the title ‘cost leadership’ offered

no clues and may have misled many into thinking it is some form of leadership style, but with

no reference to cost. Thankfully, the proportion of candidates that attained a fail in this

question was small.

For part (b), the unfortunate perspective taken by many candidates was to describe what

customer-facing employees would need to sustain the strategy, with little or no reference to

the activities that would satisfy those needs. The needs for good communication and

interpersonal skills, the ability to solve customer problems and deal with those who are

hostile, were, however, adequately discussed. Whilst such suggestions were regarded as

acceptable, they could have been strengthened with some reference to training activities,

such as workshops, coaching, role play and case study activities. Those that answered the

question in this way earned full marks, or at least most of them did. The weakest answers

mostly contained irrelevant comment and paid little attention to needs or training activities.

Section C

Question 7:

“As the HR manager in your organisation, you have been asked by your Chief

Executive Officer to look into setting up a performance management system for the

workforce.

(a) Describe the aims and objectives of a performance management system.

Suggested Answer:

One definition of a performance management system is that it is a framework in which performance is organised, measured and reviewed. The underlying aim of such systems is to get the best efforts out of individuals, teams and the organisation as a whole in achieving corporate goals. Corporate objectives are determined which are then cascaded down to the individual job level in the form of personal objectives, so that the both are aligned or integrated. The focus will be on work improvement, learning, development, motivation and reward. This should begin with the induction of new staff and, over time, individuals will be involved in defining performance standards and setting objectives, performance reviews and appraisals, learning and development processes, and the allocation of rewards for performance achievements. A key area will be the vertical alignment of HRD with organisation objectives and its

horizontal alignment with other performance elements, such as motivation and reward.

These systems, at least in theory, should raise the performance of the entire organisation so

that it achieves its set goals.

(b) Discuss four ways in which learning and development processes can be relevant

to the effectiveness of any proposed performance management system.”

Suggested Answer:

Examples discussed may include the following:

The HRD function should have involvement at the strategic level in the determination of

corporate objectives, so that HRD strategies can be devised accordingly and suitable

budgets negotiated.

It can also be instrumental in monitoring and assessing organisation performance with a

view to determining performance gaps. For example, feedback can be obtained from

internal and external customers to identify what systems and processes are not working

effectively.

HRD may pioneer the attainment of accreditation of its performance standards and

learning and development system through, for example, Investors in People or ISO 9001.

The HR function should also be able to advise on efficiencies in operation and cost by,

for example, the creation of shared services, centres of excellence and areas, such as

payroll, that can be outsourced.

Strong working relationships should be established with line managers to assist with

training and development processes, such as objective setting, conducting appraisals,

identifying performance needs, counselling and giving positive feedback.

Regular reviews of appraisals records and levels of merit awards may highlight

performance deficiencies that are organisation-wide, or identify individuals who show

exemplary performance and potential for further development.

A variety of learning and development processes may be designed and promoted, such

as off-site training courses, e-learning modules, mentoring and coaching; as well as, the

encouragement of self-learning.

HRD should also contribute to the design of job evaluation and job enrichment schemes,

and provide the means of ensuring equal opportunity, fairness, consistency and natural

justice in the management of employees.

Learning Outcome 4: Know how to develop an effective performance management programme.

Examiner’s Comments:

The area of performance management continues to represent challenges to candidates who

seem to have difficulty providing cogent and credible answers to questions on it. Overall, the

attempts at this question were generally weak. More emphasis was needed on the elements

of a performance management system, which included not only HRD, but rewards,

recruitment and selection, succession planning, innovation, performance appraisals and

performance reviews, etc. The aim is to integrate these functions into a coherent process

that gets the best out of individuals, teams and the organisation as a whole. A performance

management system will take many forms and should be designed to fulfil organisational

objectives. However, very few candidates described this aim. Nevertheless, there were

some good answers containing a list of reasonable objectives, such as, enhancing

organisation performance, increasing market share and profits, and also providing

competitive advantage. The lesser answers contained objectives that were rather parochial,

such as motivating and appraising the performance of individuals.

Answers to part (b) on the contribution of HRD were of a similar nature. Too many

candidates failed to take a holistic perspective, i.e. the way HRD has a more strategic role

beyond just training, motivating and developing the employee. Some broader issues that

might have been discussed here were:

The HRD function contributing to strategic decisions and designing HRD strategies that align with corporate strategies.

Reviewing organisation performance in terms of training needs and designing appropriate interventions, such as blended learning.

Assisting in the design of recruitment, selection and induction methods.

Promoting management development by designing development programmes and training current line managers on handling HR issues, such as grievance, discipline and appraisal processes.

Assisting in the development of suitable reward systems that link with effective employee performance.

Question 8:

(a) “Outline three of the main components of Abraham Maslow’s Hierarchy of Needs

theory of motivation.”

Suggested Answer:

Maslow suggested that individuals have sets of needs that are motivators. These are:

Physiological needs - the need to satisfy hunger and thirst and other desires.

Safety needs - the need for security, such as a well-paid job, insurance cover, health and fitness, etc.

Social needs - the need to belong and have friendships and loving relationships.

Ego needs - the need for recognition and status, to be respected in society, qualifications, etc.

Self-actualisation - the need for self-fulfilment and the highest level of satisfaction.

Maslow argued that these needs represent a hierarchy of motivating factors; i.e. a need at one level will not motivate an individual until a lower level need has first been satisfied.

(b) “Discuss two limitations of this theory.”

Suggested Answer:

Limitations of this theory may include the following:

It may be regarded as somewhat ethnocentric, in that the elements may have different priorities in different cultures. Family values and honour, for example, may be more important than income in some cultures.

It may be dangerous to apply the theory directly in an organisation that has a diverse cultural workforce. There is the possibility of discrimination if, for example, an egocentric employee is given promotion, whilst others are not permitted to apply.

The hierarchy may be seen as a generalisation and is unrealistic. Individualists may not

be interested in team work and socialising, they are much more interested in satisfying personal objectives.

Some have an instrumental orientation to work and satisfy higher order needs in their leisure time. Their only interest in training, for example, is the prospect of higher income.

Frederick Herzberg presented strong arguments to suggest that the first three levels of need in the hierarchy do not possess the potential to motivate individuals to give their best. Irrespective of how effectively an organisation attends to these so-called hygiene needs, it will fail to motivate employees if it ignores the higher level needs.

Arguably, there is no such thing as self-actualisation. Applying Maslow’s argument that once a need is satisfied it is replaced by another, means that this is sure to continue even if an employee is engaged at this highest level.

Possibly the only realistic way of applying the model is to attempt to satisfy all the levels simultaneously, but this could prove to be expensive.

It does at least contain the essence for motivating individuals at work – simply put, that people have needs and will display behaviours that they expect will satisfy those needs.

(c) “Discuss why Frederick Herzberg, in his work motivation theory, argued that

“wages and good relationships are not motivators".”

Suggested Answer:

Herzberg in his work motivation theory argued that the behaviour and performance of people at work is influenced by two sets of factors. The first of these sets he referred to as the hygiene factors; the second set he referred to as the motivator factors. The hygiene factors he suggested have to do with the environment in which the employee works and include good working conditions, pay and other benefits, and sound relations with colleagues and line managers. These factors, if they are good, are said to prevent an employee from feeling dissatisfied but they will not motivate, they will simply produce a neutral orientation for the employee to the organisation. Motivation, the disposition of the employee to give of his/her best to the job, derives from the

work itself and elevates the employee to a more positive and satisfied orientation towards

the organisation. Examples of factors that motivate are personal growth, advancement,

learning and development, recognition, meaningful work and task variety, and autonomy in

decision-making.

Learning Outcome 4: Know how to develop an effective performance management programme.

Examiner’s Comments:

Whenever the issue of motivation arises, candidates inevitably quote Maslow’s hierarchy of

needs theory. The rationale for this question therefore, was to deliberately test how much the

candidates knew about motivation theory.

For part (a), while it was pleasing to see that the majority were able to describe at least three

elements of Maslow’s theory; it was disappointing to find that so many candidates lacked

knowledge regarding the renowned theory. Most, however, were able to describe three of its

elements, but answers might have been given a little more depth, particularly in terms of

their application to the workplace. For example, the simple fact that wages are a means of

satisfying physiological needs.

Part (b) of the question was more challenging and there were few good answers submitted

for it. The intention was to get candidates to consider the difficulties of applying the theory to

the motivation of employees at work. The answers given suggested that motivation theory, in

general, is discussed somewhat superficially, thus leading to the possibility that students will

accept these theories at face value and as universal truisms. Candidates should not be left

to think that, when assuming managerial positions, having a basic knowledge of these

theories will simplify the task of motivating subordinates. I should like all tutors, not just the

few, to discuss with students possible limitations of the theories and to evaluate the extent

to which they have relevance and applicability to motivating people at work. Herzberg’s two

factor theory, for example, has more direct relevance to the workplace, but also has its

limitations.

For part (c), it should be noted that Herzberg used the word ‘motivation’ in a very specific

way and, according to his definition, wages are not a motivator. This argument contradicts

many other theories to imply that wages are not a driver of employee effort, and that

commitment may not only be misleading but a complete misnomer. Few answers showed a

thorough understanding of Herzberg’s theory. Several simply mentioned that wages will not

motivate because they are there and can be relied upon; equally, that good relationships will

not motivate some workers because they are loners. This argument almost suggests that

these people might prefer bad relationships.

Overall, it seems that presentation of the components of these theories needs tightening up

— answers should include at least some assessment of the strengths and weaknesses of

such theories.

Conclusions

The standard of written English in this examination was generally good; although there were

a few candidates whose fluency in the language was so weak it was difficult to understand

the arguments being made. The overall performance of the candidates was less than

satisfactory, with only a few showing a thorough knowledge of the subject. Candidates that

did fail this paper, usually did so by a clear margin, and showed very limited understanding

of most areas covered by the syllabus. Such candidates seemed to have done very little

preparatory work and, in the case of some very weak candidates, little seemed to have been

done to test their level of competence.

Recommendations to students and tutors for future examinations:

1. Students should be advised to write shorter sentences containing only one argument. 2. Tutors need to guide students in reading questions carefully and identifying those

elements of the question for which marks are available and to avoid wasting time on irrelevant comment.

3. Tutors should remind students that there will be at least one question on all the learning outcomes for the subject in every examination paper. To obtain the minimum pass mark, candidates must possess a fundamental knowledge of each of these learning outcomes. Candidates who choose only a few topics to learn/revise will probably fail, unless their knowledge of the areas chosen is quite extensive and thorough.

Tutors should advise candidates that when advantages or disadvantages are asked for they

will normally apply to the entire organisation, unless the question actually specifies individual

employees. Students also need to be reminded that comment must be provided for elements

of questions that ask for reasons or justification if they are to earn full marks. If questions

request some analysis, discussion or evaluation, answers that are purely descriptive are

likely to be awarded only half of the available marks.