Bbm 203- Marking Scheme

7/28/2019 Bbm 203- Marking Scheme

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MAASAI MARA UNIVERSITY

UNIVERSITY EXAMINATIONS 2012/2013

END OF SEMESTER EXAMINATIONS

SCHOOL OF BUSINESS AND ECONOMICS

BACHELOR IN BUSINESS MANAGEMENT

(Marking Scheme)

BBM 203 : Human Resource Management

QUESTION 1

a) Describe the process of counseling. (14 marks)The counseling process

Step 1Open the Session: In the session opening, state the purpose of the session and establish a subordinate

centered setting. Establish the preferred setting early in the session by inviting the subordinate to speak.The best way to open a counseling session is to clearly state its purpose. For example, an appropriate

purpose statement might be: "The purpose of this counseling is to discuss your duty performance over thepast month and to create a plan to enhance performance and attain performance goals." If applicable, startthe counseling session by reviewing the status of the previous plan of action if there was another

counseling session before. Discuss the issues by describing the changed behavior. Let the employee knowthat the organization is concerned with work performance. The supervisor maintains work standards by

being consistent in dealing with troubled employees. Explain in very specific terms what the employee

needs to do in order to perform up to the organization's expectations. Don't moralize. Restrict theconfrontation to job performance.

Step 2Assessment/Get employee comments on the changed behavior and the reason for it . Confine anynegative comments to the employee's job performance. Don't diagnose; you are not an expert. Listen and

protect confidentiality. Let the employee do most of the talking and use active listening; respond, andquestion without dominating the conversation.

Step 3Develop a Plan of Action/ Setting Goals: A plan of action identifies a method for achieving a desired

result. It specifies what the subordinate must do to reach the goals set during the counseling session. Theplan of action must be specific: it should show the subordinate how to modify or maintain his behavior. It

should avoid vague intentions such as "Next month I want you to improve the way you do your work."The plan must use concrete and direct terms. For example, you might say: "Next week you'll complete

and deliver your reports before end of Friday. I will go through them to confirm their correctness and thenI will talk to you again and agree on whether there are any shortcomings." A specific and achievable planof action sets the stage for successful development.

Step 4

Record and Close the Session: Although requirements to record counseling sessions vary, a leaderalways benefits by documenting the main points of a counseling session. Documentation serves as areference to the agreed upon plan of action and the employees accomplishments, improvements, personal

preferences, or problems. A complete record of counseling aids in making recommendations for


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professional development, promotions, and evaluation reports.Additionally, written records of counseling provide accurate counseling records. Documentation of

substandard actions conveys a strong corrective message to subordinates.

Step 5

Summarize and get a commitment to change. Seek commitment from the employee to meet work

standards and to get help, if necessary, with the problem. Summarize its key points and ask if thesubordinate understands the plan of action. Invite the subordinate to review the plan of action and what'sexpected of you, the leader/supervisor. With the subordinate, establish any follow-up measures necessaryto support the successful implementation of the plan of action. These may include providing thesubordinate with resources and time, periodically assessing the plan, and following through on referrals.Schedule any future meetings, at least tentatively, before dismissing the subordinate.

Step 6

Follow up/ InterventionsOnce the problem is resolved and a productive relationship is established, follow up is needed . Leader's

Responsibilities dictates that the counseling process doesn't end with the counseling session. It continuesthrough implementation of the plan of action and evaluation of results. After counseling, you must

support subordinates as they implement their plans of action. Support may include teaching, coaching, orproviding time and resources. You must observe and assess this process and possibly modify the plan tomeet its goals. Appropriate measures after counseling include follow-up counseling, making referrals,

informing the chain of command, and taking corrective measures.

Step 7

Termination. All counseling should have an ultimate criterion of a successful termination. Itmust be done without destroying the accomplishments gained and should be done with sensitivity,

intention and by fading.

b) You have been hired as Human Resource Manager; your first assignment is to takereasonable steps to avoid compulsory redundancies. Give five alternatives you wouldconsider. (5 marks)

Options to consider in order to avoiding redundancies

seeking applicants for voluntary redundancy or early retirement seeking applications from existing staff to work flexibly laying off self-employed contractors, freelancers, etc not using casual labor recruitment restrictions reducing or banning overtime filling vacancies elsewhere in the business with existing employees short-time working or temporary lay-offs

(Any 5 points = 5 x 1=5 marks)

c) Explain 3 types of promotion Methods used in organizations (6 marks)Noncompetitive and Competitive

Promotions based on standard accomplishments that occur for all employees are noncompetitive.Employees are automatically eligible for promotion when they reach certain milestones and, barring anyserious issues, are promoted. Competitive promotions require employees to engage in a process that


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might include tests of skills or knowledge, submission of applications, interviews, and evaluation andcomparison of performance.

Career Ladder

The career ladder is one method employers use to promote employees. The career ladder method isnoncompetitive and is based on rules in effect that set forth the guidelines for promoting an employeewhen he has completed a predetermined length of service, such as one year, or when he has demonstrated

his ability to perform the duties at the next level of his position. Often, promotion occurs following anannual employee evaluation. Career ladder promotions are usually tied to salary increases.

Accretion of Duties

Promotions based on accretion of duties occur when an employee is assigned and consistently performinghigher-level duties. For instance, a department launches a new program that results in new duties for anexisting employee. The duties require more advanced knowledge and skills. Accretion of duties

promotions allow companies to promote from within and avoid competitive hiring if the current employeemeets the requirements.

MeritEmployers make merit-based promotions from a group of qualifying employees when a vacancy occurs.

Merit promotions are competitive promotions. The employer maintains a list of eligible employees whohave passed examinations, been promoted or otherwise met the requirements for inclusion on the list.

Hiring administrators consider the employees' performance in making decisions. Supervisors may alsoevaluate the qualifications, experience and examination results to select employees for promotion tovacant positions.

QUESTION 2:

a) You have been asked to step in at the Amazing cakes company to help management unearththe causes of high turnover. You have discovered that they dont conduct induction

programmes. Explain five importances of induction to the management so that they can

have it as a HRM function in their company. (10 marks)

Importance of induction

Reducing the cost and inconvenience of early leaversThe costs include recruitment costs ofreplacement, induction/training costs, costs of agency placement and costs extra supervision. The newlyemployed staff when well inducted settles down at the place of work or on the work. He is fully involvedleaving no room for feeling of neglect or boredom which might trigger early leaving.

Increasing commitment to the organization - The employee after induction gains loyalty buildsconfidence, identifies with the organization and is prepared to work for it.

Clarifying the psychological contract on how the employee is expected to behave and whatthey can expect from the employer. Psychological contract consists of implicit unwritten beliefs and

assumptions about how employees are expected to behave and what responses they can expect from theiremployer. It is concerned with norms, values and attitudes .It provides the basis for the employmentrelationship, and the more this can be clarified from the outset, the better. Induction process indicates

what the organization expects in terms of behavior and value to be upheld by the employee. It providesopportunity to inform people of, the way things are done around here, so that misapprehensions are

reduced even if they cannot be eliminated.

Accelerating progress up the learning curve and enhance superior performance. Newemployees will be on a learning curve, they will take time to achieve the desired level of performance.Induction will provide an opportunity for the new employee to systematically and quickly learn of the jobexpectations.


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Facilitate socialization of new employee and ensure that s/he settles more quickly and enjoyworking for the organization with colleagues.

b) Explain five factors affecting Human Resource planning (5 marks)1. Organisation HR policies on recruitment, promotion, succession management and career

planning, retirement, workforce mix etc2. organizational values and strategies values

If it values longevity of employees, then the HR plan might adopt that a strategy to recruitand promote from within

Strategy - How does the organisation intend to use HR to achieve business strategy . If anorganisation is pursuing a diversification strategy, then the HR plan should ensure that it is

prepared with staff that can help the firm achieve its strategy, e.g. new organisation structure,recruitment and selection, training etc

3. Changing demographic - more young, more old, more educatedIf the markets of labour changes to more young, more old, more women or more educated

people etc, then the job descriptions, compensations strategies and general way of working

might have to change to suit these groups

4. Government policy. Requirement for gender balance, disability employment, mandatoryretirement age

5. The type of people employed and the task they perform. An organisation may not need to planvery far in advance for unskilled labour, since they will usually be in abundant supply.

Certain high skills job require planning activities that project a year or two into the future.Planning for executive replacement may need even 5 years ahead

(Each point 1 mark -5p0ints 1= 5marks)

QUESTION 3:

a) Describe five external sources of recruitment solicited from outside the organization(10marks)

External Recrui tment External sources of recruitment have to be solicited from outside theorganization. External sources are external to a concern. But it involves lot of time and money

.The external sources of recruitment include Employment at factory gate, advertisements,employment exchanges, employment agencies, educational institutes, labour contractors,recommendations etc.

a) Employment at Factory Level This a source of external recruitment in which theapplications for vacancies are presented on bulletin boards outside the Factory or at the

Gate. This kind of recruitment is applicable generally where factory workers are to beappointed. There are people who keep on soliciting jobs from one place to another. Theseapplicants are called as unsolicited applicants. These types of workers apply on their own

for their job. For this kind of recruitment workers have a tendency to shift from onefactory to another.

b) Advertisement It is an external source which has got an important place in recruitmentprocedure. The biggest advantage of advertisement is that it covers a wide area of marketand scattered applicants can get information from advertisements. Medium used is

Newspapers and Television.c) Employment Exchanges There are certain Employment exchanges which are run by

government. Most of the government undertakings and concerns employ people through


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such exchanges. Now-a-days recruitment in government agencies has becomecompulsory through employment exchange.

d) Employment AgenciesThere are certain professional organizations which look towardsrecruitment and employment of people, i.e. these private agencies run by privateindividuals supply required manpower to needy concerns.

e) Educational InstitutionsThere are certain professional Institutions which serve as anexternal source for recruiting fresh graduates from these institutes. This kind ofrecruitment done through such educational institutions is called as Campus Recruitment.They have special recruitment cells which help in providing jobs to fresh candidates.

f) Recommendations There are certain people who have experience in a particular area.They enjoy goodwill and a stand in the company. There are certain vacancies which arefilled by recommendations of such people. The biggest drawback of this source is that the

company has to rely totally on such people which can later on prove to be inefficient.g) Labour Contractors These are the specialist people who supply manpower to the

Factory or Manufacturing plants. Through these contractors, workers are appointed oncontract basis, i.e. for a particular time period. Under conditions when these contractors

leave the organization, such people who are appointed have to also leave the concern.

(Any 5 points x 2marks = 10 marks)

b) Give 3 Similarities and 2 Differences between HRM and Personnel Management ( 5marks)

Similarities and Differences between HRM and Personnel Management

SIMILARITIES DIFFERENCES


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1. Personnel management strategies, like HRMstrategies, flow from the business strategy.

2. Personnel management, like HRM, recognizesthat line managers are responsible formanaging people. The personnel function

provides the necessary advice and supportservices to enable managers to carry out theirresponsibilities.

3. The values of personnel management and atleast the soft version of HRM are identicalwith regard to respect for the individual,

balancing organizational and individual needs,

and developing people to achieve theirmaximum level of competence both for their

own satisfaction and to facilitate theachievement of organizational objectives.

4. Both personnel management and HRMrecognize that one of their most essential

functions is that of matching people torequirementsplacing and developing theright people in and for the right jobs.

5. The same range of selection, competenceanalysis, performance management, training,management development and reward

management techniques are used both in HRMand personnel management.

6. Personnel management, like the soft versionof HRM, attaches importance to the processes

of communication and participation within anemployee relations system.

1. HRM places more emphasis on strategic fitand integration.

2. HRM is based on a management andbusiness orientated philosophy.

3. HRM attaches more importance to themanagement of culture and theachievement of commitment (mutuality).

4. HRM places greater emphasis on the roleof line managers as the implementers ofHR policies.

5. HRM is a holistic approach concernedwith the total interests of the businessthe

interests of the members of theorganization are recognized but

subordinated to those of the enterprise.

6. HR specialists are expected to be businesspartners rather than personneladministrators.

7. HRM treats employees as assets not costs.

3marks- Similarities

2marks- DifferencesTotal marks = 5

QUESTION 4:

a) You have been employed as a Human Resource Manager in a large Marketing firm. Thefirm has been making losses due to low sales. Research has been done and revealed that the

problem is that the sales reps are not properly compensated. Explain five points you can

give as advice to the management on the importance of Compensation to the individual (10

marks)

Importance of compensation to the individual


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Employees see money inform of what it can buy. Better houses, better education for children,better vacations, clothes, cars etc

Employees are motivated when reward is related to performance or contribution, and when it isperceived as fair and equitable.

Employees tend to prefer pay based on their own performance and not team or group or companyperformance. In one study it shows that employees who prefer individualized reward were also

the highest performing employees

Research also shows that employees satisfaction with pay is correlated with organizationalcommitment and trust in managements, while it is inversely related to absenteeism and lateness,seeking alternative employment opportunities, terminating employment with the organization,

pro-union voting, and incidents of theft, and corruption.

Particular components of pay have different values to different people. For example researchindicates that young people tend to focus predominantly on cash compensation. As people age,however, their preference tends to shift to benefits and workplace flexibility

Research also indicated that pay satisfaction is a function of comparison of an individual input-outcome ration with his or her perception about the input- outcome ratio referent to others.

b) (i) What is retirement? (1 mark)Retirement is the point where a person stops employment completely. A person may also

semi-retire and keep some sort of retirement job, out of choice rather than necessity. This usuallyhappens upon reaching a determined age, when physical conditions don't allow the person towork anymore (by illness or accident), or even for personal choice (usually in the presence of anadequate pension or personal savings). The retirement with a pension is considered a right of theworker in many societies, and hard ideological, social, cultural and political battles have been

fought over whether this is a right. In many western countries this right is mentioned in nationalconstitutions.

(ii) Describe 2 psychological challenges faced by retirees (4marks)

PSYCHOLOGICAL CHALLENGES OF RETIREMENT

1. Fear for loss of identity Most retirees fear the possibility of loosing their association with therespective places of work i.e. Where do you work? Is the question most Kenyans, ask each other,when they first meet. When you stop working - who are you?

2. FailureMost individual feel that they have not accumulated enough money for retirement. Also,running out of money during retirement is generally viewed as an indication of failure.

3. Change - Change can be scary to most individuals. And retirement represents a big change inpeoples lives due to the challenges highlighted above.

(Any 2 points x 2 = 4 marks)

QUESTION 5:

a) As a Human Resource consultant you have been approached by a large manufacturingcompany that has been experiencing losses as a result of repairs due to damages within the

organization. The CEO has asked you to advise him on what he can do to ensure that the

Safety rules are effective. Explain six points. (12marks)

Safety rules


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The company should publish employees handbook with formal rules and regulations that stipulateswhat employees can and cannot do in the workplace

The most effective employees safety handbook should not be too general but should have carefullydescribed steps to be taken on the job to ensure maximum safety

For each step, potential dangers are identified to alert the worker In addition to specificity in the rules, it is also critical to get workers to read and comprehend safety

handbook, some companies require that employees pass a test about safety related issues before theybegin work.

These rules must be enforced for safety to be effective - there are numerous cases where workersignored a safety rule and are injured, or where supervisors order the workers to ignore safety rules

Consistence enforcement of safety rules with disciplinary actions sends a message to employees thatthe company takes safety seriously and also reduces injuries

(6 well explained points x 2= 12 marks)

b) Define the following terms

(i) Training (1mark(ii) Development (1mark)(iii)Selection (1 mark)Trainingis defined as

any attempt to improve employees performance on a currently held job or one related to it. It is the methods used you give new or present employees the skills they need to perform their job. It

may mean job orientation, showing employees how to use new equipment or showing a sales personshow to sell

It is a systematic process of altering the behavior of employees in a direction that will achieveorganizational goals.

This usually means changes in specific knowledge, skills, attitudes or behavior. Training is related topresent job skills and abilities

DevelopmentDevelopment refers to learning opportunities designed to help employees grow. Such opportunities arenot limited to improving employees performance on their current job. The key difference between

training and development emanates from the focus. The focus on development is on the long term to helpemployees prepare for future work demand while training often focuses on the immediate period to help

fit any current deficit in employees skills.

Selection

This means whittling down the application pool by using the screening tools such as test, assessmentcenters, background and reference checks(Each definition 1 mark x 3 = 3marks)

Bbm 203- Marking Scheme

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