IAM Level ? - Industry Qualifications · The IQ IAM Level 5 Certificate in Business and...

Quality Management System 601/2773/9 Specification

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IQ IAM Level 5

Certificate in Business and Administrative Management (QCF)

Qualification handbook February 2014 edition

Qualification regulation number: 601/2773/9


of 50 IQB/0.2/272 | Version 1.0 | 18/09/2014 | Author CZ

Contents 1. Introduction to the Level 5 Certificate in Business and Administrative Management ....................... 3

Qualification aim ...................................................................................................................................... 3

Qualification structure ............................................................................................................................. 3

Qualification assessment ......................................................................................................................... 4

2. Information for candidates ............................................................................................................ 7

Candidate entry requirements ................................................................................................................. 7

Independent candidates .......................................................................................................................... 7

Membership ............................................................................................................................................. 7

Membership ............................................................................................................................................. 8

3. Information for centres ................................................................................................................. 9

Centre Approval ....................................................................................................................................... 9

Diversity and Equality............................................................................................................................... 9

Resource requirements ............................................................................................................................ 9

Registration and certification ................................................................................................................... 9

Reasonable adjustments .......................................................................................................................... 9

Appeals ..................................................................................................................................................... 9

4. Plagiarism ................................................................................................................................... 10

Guide to Centres, Assessors, Examiners and Candidates ...................................................................... 10

5. Optional pathways ...................................................................................................................... 11

Pathway 1 Strategic administration of operations, information and finance ..................................... 12

501 Operations management .......................................................................................................... 12

502 Information for strategic decision-making ..................................................................................... 17

503 Advanced finance for business managers ....................................................................................... 22

Pathway 2 Strategic administration of human resources, knowledge and change ............................. 27

504 Organisational analysis and change ................................................................................................ 27

505 Human resource management ....................................................................................................... 35

506 Knowledge management strategy .................................................................................................. 44



1. Introduction to the Level 5 Certificate in Business and Administrative

Management

Qualification aim

The IQ IAM Level 5 Certificate in Business and Administrative Management (QCF) is based on

the IQ IAM’s definition of administrative management, namely that the administrative

management function supports organisations in planning, organising, directing, and controlling

their business activities across all functional areas. Thus, administrative management and

administrative managers have a key role in ensuring that businesses gain and maintain their

competitive advantage. The qualification explores how businesses design and operate internal

structures and systems which support these goals.

This qualification is ideal for managers who wish to gain skills in specific business and

administrative management techniques but are unable to commit to full time education.

Candidates will gain knowledge, skills and understanding to manage effectively and efficiently

business and administrative functions across organisations. The qualification has a flexible

structure, based on a choice of optional pathways. This enables candidates to tailor the

qualification to their specific needs.

Qualification accreditation information

Accreditation number: 601/2773/9

Qualification structure

The IQ IAM Level 5 Certificate in Business and Administrative Management (QCF) has two

distinct pathways. Each pathway leads to an individual level 5 certificate.

Optional pathways

Ofqual ref. Unit no.

Unit title GLH Credit

Pathway 1 Strategic administration of operations, information and finance

J/602/1820 501 Operations management 75 15

R/602/1822 502 Information for strategic decision-making 50 10

L/602/1821 503 Advanced finance for business managers 50 10

Ofqual ref. Unit no.

Unit title GLH Credit

Pathway 2 Strategic administration of human resources, knowledge and change

L/602/1818 504 Organisational analysis and change 75 15

J/602/1817 505 Human resource management 50 10

R/602/1819 506 Knowledge management strategy 25 5

This qualification is not graded, successful learners will gain a pass.



Rule of combination (RoC)

To achieve the IQ IAM Level 5 Certificate in Business and Administrative Management (QCF),

candidates must achieve a minimum of 30 credits.

Qualification assessment

Units 501-506 are assessed in groups, consequently, none of these units are assessed

individually.

Each of the two pathways is assessed by either a three-hour written examination or an IQ IAM

assignment; the word count for these assignments is 2500-3000 words. When entering for

assessment, the centre or independent candidate must notify the IQ IAM which method of

assessment the candidate is to be entered for.

Live assignments are downloaded from the Student Members’ Login area of the IQ IAM

website. For each pathway, candidates have a choice of assignments from which each

candidate must select one assignment only. Assignments are marked by the centre and

moderated by the IQ IAM.

Examinations

Pathway 1 Strategic administration of operations, information, and finance

501 Operations management (15)

502 Information for strategic decision-making (10)

503 Advanced finance for business managers (10)

This pathway is assessed by either a three-hour written examination or an IQ IAM assignment.

The examination paper is divided into two sections:

Section A

This section forms 60% of the total mark for this paper. Candidates must complete three

questions from a selection of six.

Section B

This section forms 40% of the total mark for this paper. This section is compulsory. Candidates

will be given a short scenario to read and will then answer a question related to that scenario.

This section will encourage candidates to use independent thinking as opposed to quoting

textbook answers.

Pathway 2 Strategic administration of human resources, knowledge, and change

504 Organisational analysis and change (15)

505 Human resource management (10)

506 Knowledge management strategy (5)

This pathway is assessed by either a three-hour written examination based on a pre-released

case study or an IQ IAM assignment. The examination paper is divided into two sections:



Section A

This section forms 40% of the total mark for this paper. This section is compulsory. Candidates

are expected to answer two compulsory questions relating to the pre-released case study.

Section B

This section forms 60% of the total mark for this paper. Candidates must complete three

questions from a selection of six, all based on the pre-released case study.

Assessment terminology The table below includes the terminology used in all types of assessment at levels 2 to 5. It also includes

the Institute’s explanation of the meaning of these terms in the contexts of assessments.

Knowledge/understanding

These are foundation skills. Assessment tasks in this category require candidates to demonstrate their knowledge and understanding of the required subject content. They assess basic learning.

define describe list name outline state

Application

Candidates must show an ability to demonstrate the understanding of the specified knowledge content in practical business contexts.

Assessment tasks in this category require candidates, for example, to:

• make a practical decision

• demonstrate the required knowledge, understanding, and skills in organisational contexts.

apply calculate create (in an applied context) demonstrate/ demonstrate how design estimate investigate plan prepare propose use

Analysis

Candidates must be able to break down situations, statements, theory, and numerical and non-numerical data into components or essential features.

For higher level analysis candidates should incorporate

relevant concepts and theory into their arguments.

Assessment tasks in this category require candidates to:

• select data relevant to tasks

• organise data relevant to tasks

• break down data/texts to their elements

• respond to data/text that contains several elements

analyse / critically analyse clarify compare differentiate between examine explain identify why, how, reasons, characteristics investigate select summarise



Evaluation

The most advanced cognitive skill is that of evaluation. At this level, candidates make connections, present judgements, opinions and draw conclusions that are supported by valid reasons and evidence.

Evaluation involves reflective thinking.

Assessment tasks in this category require candidates to

give detailed responses and while doing so: •

provide supported decisions or conclusions

• make a reasoned case

• make comparisons based on valid and relevant reasons

and evidence

• set up arguments based on valid reasons and evidence

advise argue for and against compare, contrast and reach a judgement criticise discuss evaluate identify the most important interpret investigate e.g. the effectiveness of justify reason for and against recommend solve summarise …to what extent?



2. Information for candidates

Candidate entry requirements There are no formal entry requirements for this qualification. However, it is recommend that

candidates should have a level 4 qualification or equivalent work experience in the business

administration area.

Language knowledge A language knowledge equivalent to level 6 ILETS is recommended. It is the centre’s responsibility to

assess if candidates have the required level of English and if they wish, they could require formal

certification.

Age restrictions and legal considerations The content and level of demand of this qualification is broadly equivalent to the second year of a

university bachelor’s degree in the area of business management. Therefore, given the complexity of

some of the content we believe that candidates will not have sufficient knowledge or experience below

the age of 19.

Progression This qualification leads to further studies in management at level 6 and to higher education.

Replacement documentation In some circumstances centres will require replacement copies of documents previously issued i.e. notifications of results, transcripts, certificates. For information on how to order replacements please contact [email protected]

Appeals Where learners feel that the assessment decision has not been fair, they should have the opportunity to

access the normal appeals/complaints procedure of the centre, in the first instance, and if this does not

resolve the situation then IQ’s enquiries and appeals procedures.

The IQ appeals policy can be found at: http://www.industryqualifications.org.uk/centre-portal/general-

guidance/qualification-policies/appeals-policy

Independent candidates Some candidates choose to prepare for these examinations by studying as an independent candidate, with no support from a tuition centre. Such a learning strategy is not recommended because there is evidence to suggest that the quality of learning is greatly enhanced by tutor and peer group support at this level.

If a candidate still wishes to undertake any of the IQ IAM qualifications as an independent candidate they will need to complete the appropriate registration forms, which can be requested from: [email protected]

Important notice for independent candidates It is important that all candidates are aware that IAM accredited centres are not permitted to provide tutorial or assessment support for independent candidates. If candidates are aware of any breach of these rules, they should immediately notify [email protected]

Membership

mailto:[email protected]

http://www.industryqualifications.org.uk/centre-portal/general-guidance/qualification-policies/appeals-policy






Membership The IAM is the only professional body in the United Kingdom specialising in the promotion of

Administrative Management.

Our membership includes directors, accountants and company secretaries, people concerned with specialist functions, general managers and executives with operational and administrative responsibilities in both the public and private sector. By being enrolled on an IQ IAM qualification candidates are entitled to a year's free student

membership of the Institute of Administrative Management (IAM). For more information on what this

entails and how to claim your membership, contact the IAM or visit www.instam.org/

http://www.instam.org/



3. Information for centres

Centre Approval Centres must be approved by IQ in order to offer this qualification and must meet the required criteria and satisfy IQ that their tutorial staff, learning resources and quality systems comply with IQ quality standards.

For further information or to find out more about how to apply to become an IQ IAM centre, please contact [email protected]

Diversity and Equality Centres must:

have Diversity and Equality policies incorporating processes that adhere to current Diversity and Equality legislation

are adhering to their own published Diversity and Equality policies in practice

comply with the policies and processes set out in IQ’s Diversity and Equality and Reasonable

Adjustments Policies

IQ’s Diversity and Equality can be downloaded from:

http://www.industryqualifications.org.uk/centre-portal/general-guidance/company-policies/diversity-equality-policy

Resource requirements Centres must have appropriate accommodation and systems to support provision. This includes the IT system which must enable the centre to transmit assessment and other personal data securely, this includes including teaching rooms, libraries, teaching materials and IT systems.

Registration and certification It is the responsibility of the centre to ensure that their candidates’ registrations are up-to-date.

Reasonable adjustments When developing qualifications and designing assessments every effort is made to consider the needs of all candidates, including those with disabilities or specific difficulties.

Despite careful design it is possible that some candidates require reasonable adjustments to assessment methods or arrangements in order to ensure that they can access the assessment.

Reasonable Adjustments Policy can be found at: http://www.industryqualifications.org.uk/centre-portal/general-guidance/qualification-policies/reasonable-adjustments-policy

Appeals Centres must have Centres must have their own auditable appeals procedure that they must explain to

candidates during the induction to the courses.

The IQ appeals policy can be found at: http://www.industryqualifications.org.uk/centre-portal/general-

guidance/qualification-policies/appeals-policy




http://www.industryqualifications.org.uk/centre-portal/general-guidance/qualification-policies/reasonable-adjustments-policy

http://www.industryqualifications.org.uk/centre-portal/general-guidance/qualification-policies/reasonable-adjustments-policy





4. Plagiarism

Guide to Centres, Assessors, Examiners and Candidates

What is plagiarism? Candidates commit plagiarism when they copy, very closely imitate, paraphrase or cut and paste

someone else’s work, ideas, and/or language and present it as their own.

How could tutors and centres prevent plagiarism in assessments?

First of all tutors should assess if the groups and individuals they teach are likely to commit plagiarism.

They should also establish why this could happen, for example for linguistic, cultural reasons or because

of simple ignorance or misunderstanding of the concept.

Tutors and centres then should:

• explain what plagiarism is and why it is wrong to plagiarise

• explain the concept of intellectual property; the ownership of words, concepts, electronic materials,

etc.

• develop centre policies to prevent plagiarism

• explain the consequences of committing plagiarism

• explain the importance of referencing and teach the use of referencing systems

• set differentiated, individual assignments for each candidate

What are the consequences of plagiarism? Tutors should explain to candidates that those who commit plagiarism achieve lower academic results

than those who do not.



5. Optional pathways

Pathway 1 Strategic administration of operations,

information, and finance

Pathway 2 Strategic administration of human

resources, knowledge and change



Pathway 1 Strategic administration of operations, information and finance

501 Operations management

Credit: 15

GLH: 75

Unit aim

This unit examines the strategic importance of operations management in its role of supporting

other service or manufacturing activities in a business setting. Candidates will explore the

contribution of the operations function to a business achieving success through the

development of suitable strategies. This will include a consideration of setting and achieving

operational performance targets and employing quality improvement techniques to help in

delivering competitive advantage.

Candidates who aspire to positions in operations management will develop knowledge,

understanding, and skills necessary for such job roles.

Learning outcomes

This unit has four learning outcomes.

The candidate will:

01 Understand the role of operations within businesses

02 Understand the strategic importance of meeting operational performance targets

03 Understand how and why businesses use performance evaluation

04 Understand the impact of a range of quality improvement techniques on competitive

advantage

Mandatory reading

Slack, N. et al. (2007) Operations Management. 5th edition. Harlow, FT Prentice Hall

Further reading

Boddy, D. (2005) Management: An Introduction. 3rd edition. Harlow, FT Prentice Hall

Johnston, R. and Clark, G. (2008) Service Operation Management. 2nd edition. FT Prentice Hall

For further learning resources, please consult the learning resources section in the Student

Members’ Login area of the IQ IAM website.



Learning outcome 01: Understand the role of operations within businesses

Assessment criteria

The candidate can:

1.1 Employ a framework for analysing operations management within businesses

1.2 Analyse how operations management supports businesses

Amplification of assessment criteria 1.1 Employ a framework for analysing operations management within businesses

1.1.1 Identify a framework for analysing operations management within a business; explain the five

activities which make up this framework

1.1.2 Use a framework for analysing operations management within different businesses

1.2 Analyse how operations management supports businesses

1.2.1 Explain how operations management supports business activities; identify the role operations

plays in any business as one of the three core business functions

1.2.2 Use examples to show how operations management supports different types and sizes of

business organisations

1.2.3 Explain how administrative managers may be able to overcome conflict between

performance targets

Learning outcome 02: Understand the strategic importance of meeting operational

performance targets

Assessment criteria

The candidate can:

2.1 Identify the links between strategy and operational performance targets

2.2 Explain why there may be conflict between different performance targets 2.3

Assess the role of strategic operations management

Amplification of assessment criteria 2.1 Identify the links between strategy and operational performance targets

2.1.1 Explain what strategy and operational performance targets are

2.1.2 Show how strategy and operational performance targets are linked

2.1.3 Explain how strategy guides first operations and then more specifically operational

performance targets

2.2 Explain why there may be conflict between different performance targets

2.2.1 Give examples of conflicting operational performance targets. Explain that operations are

made up of a wide range of operations, processes, and facilities

2.2.2 Explain the reasons for operational performance targets; explain why targets are necessary;

give examples of specific performance targets

2.3 Assess the role of strategic operations management

Operations management



Amplification of assessment criteria (continued) 2.3.1 Explain what strategic operations management is; explain that the basic role of operations

is to implement strategy

2.3.2 Use examples to demonstrate the process of strategic operations management

Learning outcome 03: Understand how and why businesses use performance evaluation

Assessment criteria

The candidate can:

3.1 Assess a range of techniques used by businesses to evaluate performance

3.2 Analyse the role of Key Performance Indicators (KPI’s) in operations management

Amplification of assessment criteria 3.1 Assess a range of techniques used by businesses to evaluate performance

3.1.1 Identify techniques used by businesses to evaluate performance; use examples to

demonstrate different approaches to performance evaluation

3.1.2 Give examples to explain how effective different techniques are when used by businesses to

evaluate performance; assess the effectiveness and appropriateness of performance

evaluation techniques in different businesses

3.2 Analyse the role of Key Performance Indicators (KPI’s) in operations management

3.2.1 Explain what KPI’s are

3.2.2 Give examples to show how KPI’s are used in operations management; examples should

identify objectives that will add value to a business

Learning outcome 04: Understand the impact of a range of quality improvement techniques

on competitive advantage

Assessment criteria

The candidate can:

4.1 Explain the concept of the value chain as a means to identify competitive advantage

4.2 Apply quality improvement techniques to managing operations

4.3 Assess the role of standard setting bodies in quality improvement

4.4 Evaluate the impact of quality improvement techniques on the competitive advantage of

specific organisations

Amplification of assessment criteria 4.1 Explain the concept of the value chain as a means to identify competitive advantage

4.1.1 Explain the concept of value chain

4.1.2 Use examples to show how value chain helps to identify competitive advantage; use examples

to demonstrate how the value chain helps managers in addressing key issues

4.2 Apply quality improvement techniques to managing operations

4.2.1 Explain the relationship between quality improvement techniques and managing operations



Amplification of assessment criteria (continued) 4.2.2 Give examples of how quality improvement techniques are used in managing operations;

demonstrate how techniques such as total quality management (TQM), balanced scorecard,

six sigma can be used when managing operations

4.3 Assess the role of standard setting bodies in quality improvement

4.3.1 Identify standard setting bodies involved in quality improvement and assess their impact on

quality

4.3.2 Use examples to explain the contribution of standard setting bodies to quality improvement

techniques

4.4 Evaluate the impact of quality improvement techniques on the competitive advantage of specific

organisations

4.4.1 Critically examine the theoretical impact of quality improvement techniques on competitive

advantage

4.4.2 Assess the relationship between quality improvement and competitive advantage in specific

business contexts



501 Operations management

Guidance for tutors

Candidates must be able to explain how operational performance targets are derived from

business strategies. This will require an understanding of why performance targets can

sometimes be in conflict and what steps can be taken to resolve this issue should it arise. A key

element of this is to be able to explore the strategic role and objectives of operations

management. It is important that candidates understand the very important role that

operations play in delivering the capabilities required for business success.

Candidates need to be able to identify and employ a framework that will enable them to

analyse how operations management utilises resources to deliver products and services. It is

important to understand the scope of the role that operations management has in providing

what is one of the three core functions of any business. This should include a consideration of

the importance of working effectively with other functions.

Candidates need to be able to assess techniques used by organisations to evaluate the

performance of the business in the context of operations management. An important area for

focus is the identification and importance of key performance indicators (KPI’s). By

understanding, KPI’s candidates are better able to consider operations management’s

contribution to business needs.

Candidates need to explore and understand the key role of quality improvement in operations

management. This can be built around the concept of value chain analysis and the importance

of effective operations management when seeking competitive advantage. Thus, candidates

will explore how businesses exploit their operational resources to achieve success in their key

markets. Since this will require continuous assessment of achievements and ongoing

improvement, the contribution that can be made by international standard setting bodies

should be explored.



502 Information for strategic decision-making

Credit: 10 GLH: 50

Unit aim

This unit examines how strategic information supports service or manufacturing activities in

business organisations. This involves making use of the appropriate management tools and

models, including quantitative techniques. The unit also discusses the contribution of

information and communication technology (ICT) and the value of user–friendly systems to the

effective application of quantitative techniques.

Candidates who aspire to positions where they will make decisions based on strategic

information will develop knowledge, understanding, and skills necessary for such job roles.

Learning outcomes

This unit has four learning outcomes.

The candidate will:

01 Understand the role of information in strategic decision-making

02 Understand how information systems support the use of information, as a resource

03 Understand the rationale for quantitative approaches and techniques in decision-making 04

Understand how the systems approach is used to solve problems and make decisions

Mandatory reading

Slack, N. et al (2007) Operations Management. 5th edition. FT Prentice Hall

Further reading

Ambrosini, V. (1998) Exploring Techniques of Analysis and Evaluation in Strategic Management.

Prentice Hall

Bee, F. and Bee, R. (2005) Managing Information and Statistics. Chartered Institute of

Personnel and Development

Finlay, P. (2000) Strategic Management: An Introduction to Business and Corporate Strategy. FT

Prentice Hall

Swift, L. (2001) Quantitative Methods for Business Management and Finance. Palgrave






Learning outcome 01: Understand the role of information in strategic decision-making

Assessment criteria

The candidate can:

1.1 Explain the need to manage information and systems for strategic advantage

1.2 Assess the need for integrated knowledge to support decision-making

1.3 Evaluate models of strategic information systems planning

1.4 Determine the strategies to align information systems with business plans

1.5 Identify the need for corporate systems strategy

Amplification of assessment criteria 1.1 Explain the need to manage information and systems for strategic advantage

1.1.1 Explain how information can be used by businesses to create competitive advantage

1.1.2 Describe the relationship between decision-making and information systems; explain how

information systems assist decision-making

1.1.3 Demonstrate how information and systems can be managed by businesses to achieve

strategic advantage

1.2 Assess the need for integrated knowledge to support decision-making

1.2.1 Distinguish between data, information, and knowledge

1.2.2 Explain the concepts of knowledge management and knowledge management systems

1.2.3 Explain the contribution of integrated knowledge to decision-making

1.3 Evaluate models of strategic information systems planning

1.3.1 Identify models for strategic information systems planning, e.g. financial, optimisation,

simulation models, and sensitivity analysis

1.3.2 Explain the purpose of mathematical and other relevant models in strategic information

systems planning, e.g. 7S, model, strategic grows model, strategic process control

1.3.3 Evaluate the contribution of mathematical and other relevant models to strategic information

systems planning

1.4 Determine the strategies to align information systems with business plans

1.4.1 Explain different types of strategic fit, including strategic resources, vision, goals, and synergy

1.4.2 Describe and demonstrate ways to test for strategic fit, including audit and screening for

feasibility and acceptability

1.4.3 Identify strategies to align information systems and business plans, including SWOT and

balanced scorecard

1.5 Identify the need for corporate systems strategy

1.5.1 Explain the need for a corporate systems strategy and the use of Porter’s value chain

1.5.2 Demonstrate how a corporate systems strategy contributes to the alignment of value

creation, business portfolio, skills, and processes; explain what is meant by the terms value

creation, business portfolio, skills and processes



Learning outcome 02: Understand how information systems support the use of information,

as a resource

Assessment criteria

The candidate can:

2.1 Evaluate the tools used in strategic planning

2.2 Demonstrate how information-based services contribute to business functions

Amplification of assessment criteria 2.1 Evaluate the tools used in strategic planning

2.1.1 Describe a range of tools used in strategic planning, e.g. value chain analysis, SWOT analysis,

critical success factor analysis, forecasting, sensitivity analysis, and scenario planning

2.1.2 Evaluate the use and contribution of strategic planning tool

2.2 Demonstrate how information-based services contribute to business functions

2.2.1 Describe the role and make up of an information system

2.2.2 Identify the range of information-based services required by organisations, e.g. end-user

support, controlling security, managing information delivery

2.2.3 Explain the organisational arrangements required in information systems management to

achieve an effective information service

Learning outcome 03: Understand the rationale for quantitative approaches and techniques

in decision-making

Assessment criteria

The candidate can:

3.1 Evaluate quantitative approaches to decision-making

3.2 Justify the need for monitoring the business environment

3.3 Demonstrate the contribution of quantitative techniques to business functions

3.4 Evaluate the reliability of quantitative techniques in strategic decision-making

Amplification of assessment criteria 3.1 Evaluate quantitative approaches to decision-making

3.1.1 Explain the relationship between decision-making and information systems

3.1.2 Demonstrate the contribution that quantitative techniques can make to decision-making,

including forecasting, transportation problems, waiting time

3.1.3 Identify a range of quantitative approaches to decision-making; demonstrate the practical

applications of quantitative techniques to decision analysis, quality control, stock control,

and project management

3.2 Justify the need for monitoring the business environment

3.2.1 Explain why the need for information increases with the complexity of a business

3.2.2 Explain the contribution that monitoring of the business environment, at local, national, and

global levels, makes to an organisation’s success

3.2.3 Identify strategies that organisations can adopt when managing information for competitive

advantage; explain each strategy in the context of information requirements

3.3 Demonstrate the contribution of quantitative techniques to business functions

3.3.1 Explain the contribution of quantitative approaches to decision-making



Amplification of assessment criteria (continued) 3.3.2 Demonstrate the contribution of quantitative techniques to business functions; assess the

impact of the degree of certainty about outcomes and the benefits of using quantitative

techniques

3.3.3 Evaluate the contribution of quantitative techniques to business functions; demonstrate the

benefits of using specific techniques, including stock control and project management

3.3.4 Explain the limitations of quantitative techniques in relation to strategic decision-making

3.4 Evaluate the reliability of quantitative techniques in strategic decision-making

3.4.1 Explain the factors that contribute to the reliability of quantitative techniques

3.4.2 Demonstrate what is meant by reliability in quantitative techniques

Learning outcome 04: Understand how the systems approach is used to solve problems and

make decisions

Assessment criteria

The candidate can:

4.1 Compare and contrast decision-making theories

4.2 Evaluate decision-making models

4.3 Assess the strategic models organisations may follow

4.4 Explain why businesses need to manage information and systems in order to gain strategic

advantage

Amplification of assessment criteria 4.1 Compare and contrast decision-making theories

4.1.1 Identify the main categories of decision-making theory; demonstrate when different

approaches would be appropriate

4.1.2 Explain the concepts of bounded rationality and satisficing; use examples to demonstrate

when each is appropriate

4.2 Evaluate decision-making models

4.2.1 Identify decision-making models used by organisations, e.g. maximax, maximin, minimax

regret, decision trees; use examples to explain when each is appropriate

4.2.2 Evaluate how organisations use different decision-making models

4.3 Assess the strategic models organisations may follow

4.3.1 Explain the main generic strategies an organisation may follow; explore through examples

when each strategy might be used to best advantage

4.3.2 Explain the main considerations in determining strategic suitability

4.4 Explain why businesses need to manage information and systems in order to gain strategic

advantage

4.4.1 Identify the main systems found in organisations; explain the contributions of reward,

information, issue handling and organisational learning systems




Guidance for tutors

Central to a consideration of this unit is recognising the key contribution that information

makes. Meaningful information, which has been effectively communicated, is essential for

managers and other staff when making decisions. It is particularly important in the

contribution made to strategic planning and seeking to gain competitive advantage. While the

unit requires an understanding of a number of terms and techniques, what should always

underpin a study of the unit is their practical application.

While not ignoring qualitative techniques, the emphasis within this unit is the contribution of

quantitative techniques to decision-making. These techniques need to be identified and their

value in monitoring the business environment made clear. This will allow appropriate

strategies to be adopted in both ‘for-profit’ and ‘not-for-profit’ organisations. While simple

calculations may be helpful, the main aim of this unit is for managers to be able to select the

correct techniques for given situations and analyse the information with which they are

provided.

There is no value in having information for its own sake. Effective decision-making is achieved

through the support provided by successful information systems. While it should be recognised

that information is required at all levels within businesses, the main focus for this unit is at the

strategic level. Strategic decisions are driven by the world outside the organisation, whether

this is at a local, national, or international level. Thus, the issues of risk and

certainty/uncertainty will be a factor in the type of information required.

It must be remembered that an information system is made up of people, resources, and

procedures. Thus it is how these are combined that will determine effectiveness of the

information produced. In turn, this will determine the value of the information to strategic

planning. As with quantitative techniques, it is important to choose the correct tool and be

able to make use of the outcomes. However, it would be useful to be able to work through

simple examples using chain analysis, SWOT analysis, critical success factor analysis,

forecasting, sensitivity analysis, and scenario planning.



503 Advanced finance for business managers

Credit: 10 GLH: 50

Unit aim

This unit explores the concepts of cash flow forecasting, marginal costing, capital investment

appraisal, and financial ratios. It investigates how business managers use financial information

to plan, control and make effective decisions.

Candidates who aspire to managerial positions in business will develop the financial knowledge,

skills and understanding necessary for such job roles.

Learning outcomes

This unit has four learning outcomes...

The candidate will:

01 Understand how to assess the future cash flow position of a business

02 Understand how cost accounting techniques contribute to decision-making

03 Understand the financial implications of capital investment decisions

04 Understand how to assess the financial performance and stability of a business

Mandatory reading

Benedict, A. and Elliott, B. (2008) Financial Accounting: An Introduction. Harlow, FT Prentice

Hall

Lucey, T. (2009) Costing. 7th edition. Andover, Cengage Learning

Further reading

Atrill, P. and McLaney, E. (2007) Financial Accounting for Decision Makers. 6th edition. Harlow,

FT Prentice Hall

Atrill, P. and McLaney, E. (2009) Management Accounting for Decision Makers. 6th edition.

Harlow, FT Prentice Hall

Walsh, C. (2008) Key Management Ratios. Harlow, FT Prentice Hall






Learning outcome 01: Understand how to assess the future cash flow position of a business

Assessment criteria

The candidate can:

1.1 Examine the reasons for and problems with forecasting future cash requirements

1.2 Create and adjust cash budgets

1.3 Evaluate the impact of expected cash flows on management decision-making

Amplification of assessment criteria 1.1 Examine the reasons for and problems with forecasting future cash requirements

1.1.1 Explain the rationale for cash forecasting

1.1.2 Identify the problems with forecasting future cash requirements

1.1.3 Explore the use of cash budgets in forecasting

1.2 Create and adjust cash budgets

1.2.1 Explain the steps involved in cash budget preparation and the format of cash budgets

1.2.2 Compile cash budgets

1.2.3 Make adjustments in light of changes in sales, credit policies, stock levels, and expenses

1.3 Evaluate the impact of expected cash flows on management decision-making

1.3.1 Using cash budget examples, explore the decision-making optional in light of forecasted cash

surpluses/deficits

Learning outcome 02: Understand how cost accounting techniques contribute to decision-

making

Assessment criteria

The candidate can:

2.1 Assess the financial implications of short run decisions by applying suitable costing

techniques

Amplification of assessment criteria 2.1 Assess the financial implications of short run decisions by applying suitable costing techniques

2.1.1 Discuss the importance of marginal costing in decision-making, particularly in short-run

decision-making

2.1.2 Explain the relationship of maximising contribution per unit to organisational profitability

2.1.3 Apply marginal costing to typical decisions

2.1.4 Describe break-even analysis and the principles upon which it is based

2.1.5 Use break-even or cost-volume-profit (CVP) analysis formula

2.1.6 Draw a traditional break-even chart

2.1.7 Define and identify the margin of safety

2.1.8 Explain the limitations and assumptions of CVP analysis



Learning outcome 03: Understand the financial implications of capital investment decisions

Assessment criteria

The candidate can:

3.1 Analyse the financial consequences of capital investment decisions

3.2 Evaluate investment appraisal outcomes in relation to internally set criterion levels

3.3 Use quantitative findings and qualitative factors to make recommendations to the business

Amplification of assessment criteria 3.1 Analyse the financial consequences of capital investment decisions

3.1.1 Discuss the relationship between long and short-term decision-making in context of

investment appraisal

3.1.2 Explain the importance of time value of money

3.1.3 Define traditional investment techniques of accounting rate of return and payback

3.1.4 Calculate and state the advantages and disadvantages of accounting rate of return and

payback

3.1.5 Explain the basis of discounted cash flow techniques

3.1.6 Use discount tables and calculate and interpret the net present value of a project

3.1.7 Show how to calculate the internal rate of return and how to use it for project appraisal

3.2 Evaluate investment appraisal outcomes in relation to internally set criterion levels

3.2.1 Review the investment appraisal outcomes by considering timescale, cost of capital, capital

rationing, and the cash flows

3.3 Use quantitative findings and qualitative factors to make recommendations to the business

3.3.1 Make recommendations based on the quantitative findings, the internal and external factors

impacting on the business such as material shortages, competition, customer expectations,

and other prevailing non-quantifiable factors

Learning outcome 04: Understand how to assess the financial performance and stability of a

business

Assessment criteria

The candidate can:

4.1 Analyse the recent financial performance and stability of businesses by applying appropriate

financial measures

4.2 Discuss the extent to which analysis of published accounts can help to anticipate the future

performance of a business

Amplification of assessment criteria 4.1 Analyse the recent financial performance and stability of businesses by applying appropriate

financial measures

4.1.1 Calculate ratios covering overall performance, profitability, activity, liquidity, investment, and

capital structure

4.1.2 Show how such ratios help to analyse the performance of the organisation



4.1.3 Interpret the ratios calculated

Amplification of assessment criteria (continued) 4.2 Discuss the extent to which analysis of published accounts can help to anticipate the future

performance of a business

4.2.1 Discuss the usefulness and limitations of ratios in financial decision-making

4.2.2 Discuss how comparison of past periods, planned performance and the performance of

similar business can be used to benchmark ratios

4.2.3 Discuss the use of ratios, based on current or past performance in predicting the future




Guidance for tutors

This unit explores the concepts of cash flow forecasting, marginal costing, capital investment

appraisal, and financial ratios. The first key requirement is that candidates examine not only

the need for and limitations of forecasting future cash requirements, but the use of cash

budgets as forecasting tools. Candidates will have to compile cash budgets, adjust them for

changes or variability in, for example, sales, credit policies, expenses, or stock levels and make

recommendations in light of forecasted cash surpluses.

Secondly, candidates will explore the use of marginal costing as a basis for providing

information for management for planning and decision-making. This will require them to know

the uses and assumptions of break-even or cost-volume-profit (CVP) analysis, apply the main

CVP analysis formulae, and draw break-even charts.

Thirdly, candidates will examine the financial and other implications of capital investment

decisions. This will require them to know why the time value of money is important and to

undertake investment appraisal calculations using account rate of return, payback, NPV and

IRR. Candidates will also be required to review the capital investment appraisal outcomes and

to make recommendations based on financial consequences, taking into consideration other

quantitative and qualitative information impacting on the decisions to be made.

Finally, candidates will analyse and interpret financial statements using accounting ratios. This

will require them to calculate and explain return on capital employed (ROCE), gross profit

margin (GPM), net profit margin (NPM), asset turnover, stock turnover, debtor collection

period, current ratio, acid test, divided yield, and gearing ratios.

In addition, candidates will examine the benefits and limitations of ratio analysis on

determining the current and future financial performance and stability of the business.

Furthermore, they will have to understand that the ratios are only useful as signals identifying

symptoms which need thorough diagnosis, interpretation, and appropriate action. Ratios need

comparators to be meaningful so candidates will be requested to understand benchmarking

and inter-firm comparisons.



Pathway 2 Strategic administration of human resources, knowledge and

change

504 Organisational analysis and change

Credit: 15 GLH: 75

Unit aim

This unit explores how organisation and management theories support the practical analysis

and design of organisations. The unit also investigates the strategic importance of

organisational change. It examines the factors that promote and limit the achievement of

change objectives for the dynamic environment within which organisations operate.

Candidates who aspire to positions involving change management, organisational analysis,

and design will develop knowledge, understanding, and skills necessary for such job roles.

Learning outcomes

This unit has six learning outcomes.

The candidate will:

01 Understand the evolution of and changing perspectives on organisation and management

theory

02 Understand the impact of a dynamic external environment on organisational structures

and processes

03 Understand the relationship between structure, culture and the strategic aims and

objectives of organisations

04 Understand models for planning and implementing organisational change

05 Understand the interaction between organisational culture and the process of

implementing change

06 Understand the causes and effects of resistance to change, identifying strategies for

overcoming it

Mandatory reading

Mullins, L. J. (2010) Management and Organisational Behaviour. 9th edition. Harlow, FT

Prentice Hall

Further reading

Fincham, R., and Rhodes, P. (2005) Principles of Organisational Behaviour. 4th edition.

Oxford, Oxford University Press

Hales, C. (2000) Managing Through Organisation: The Management Process, Forms of



Organisation and the Work of Managers. Second edition. Australia, United Kingdom,

Business Press, Thomson Learning

Huczynski, A. A. and Buchanan, D. A. (2007) Organisational behaviour: An Introductory Text,

8th edition. Harlow, FT Prentice Hall

Johnson, G. et al. (2007) Exploring Corporate Strategy. 8th edition. Harlow, FT Prentice Hall






Learning outcome 01: Understand the evolution of and changing perspectives on

organisation and management theory

Assessment criteria

The candidate can:

1.1 Explain the main theories of management and organisational behaviour

1.2 Examine the historical development of organisation theory in analysing organisations

1.3 Apply organisation theory to the analysis, design, and management of organisations

Amplification of assessment criteria 1.1 Explain the main theories of management and organisational behaviour

1.1.1 Outline the main organisation theories: classical, scientific management, bureaucracy,

human relations, social systems, decision-making, open systems, radical and postmodern

theories

1.1.2 Critically examine each theory in relation to the workings of modern profit and non-profit

organisations

1.2 Examine the historical development of organisation theory in analysing organisations

1.2.1 Examine developments in organisational theory over time

1.2.2 Analyse the causes and effects of these historical changes

1.3 Apply organisation theory to the analysis, design, and management of organisations

1.3.1 Examine the impact of organisation theories organisational structure (bureaucracy, matrix),

management functions and roles and job design, as affecting working patterns and quality

of life

1.3.2 Investigate a real organisation to see whether its management structure and style implies

an underlying theory of organisational behaviour

Learning outcome 02: Understand the impact of a dynamic external environment on

organisational structures and processes

Assessment criteria

The candidate can:

2.1 Examine the changing world of organisations and management

2.2 Identify different types of organisation structure within the organisational lifecycle and

their relationship to the environment

2.3 Analyse the impact of the environment on the need for organisations to act in a socially

and ethically responsible manner



Amplification of assessment criteria 2.1 Examine the changing world of organisations and management

2.1.1 Identify opportunities and constraints from the organisation’s external environment, e.g.

social, political, economic, legal, or technological

2.1.2 Evaluate their impact on the structure and processes of organisations in the context of a

global setting

2.2 Identify different types of organisation structure within the organisational lifecycle and their

relationship to the environment

2.2.1 Analyse the impact on the formal management structure of factors such as history, size,

technology, and ownership

2.2.2 Identify the impact of the organisational life cycle on the formal structure, e.g. functional,

product, divisional, matrix, network or virtual

2.2.3 Evaluate the influence of structure on the allocation of resources, design of jobs, decision-

making, information communication, and management systems

2.3 Analyse the impact of the environment on the need for organisations to act in a socially and

ethically responsible manner

2.3.1 Assess the implications of changing social values, lifestyle, and attitudes on organisations

2.3.2 Examine how organisations can, should and do respond to these structures

Learning outcome 03: Understand the relationship between structure, culture and the

strategic aims and objectives of organisations

Assessment criteria

The candidate can:

3.1 Explain the nature and function of organisational culture

3.2 Identify different types of organisational culture and their relation to organisational

structure

3.3 Evaluate the importance of the informal organisation to the effectiveness of

organisations and to their culture

3.4 Apply elements of organisational culture to strategy, aims, and objectives

Amplification of assessment criteria 3.1 Explain the nature and function of organisational culture

3.1.1 Examine organisational culture, e.g. ideologies, values, assumptions and how they

influence the organisation’s way of life and the socialisation of individuals within it

3.2 Identify different types of organisational culture and their relation to organisational structure

3.2.1 Outline the main classification of culture, including the Harrison/Handy types and their

relationship with the structure of an organisation, e.g. bureaucratic, matrix, clean, etc.

3.2.2 Evaluate the influences on the development of organisational culture, e.g. history,

environment, ownership, etc, and the implications of the relationship between structure

and culture for organisational effectiveness and performance

3.3 Evaluate the importance of the informal organisation to the effectiveness of organisations and to

their culture

3.3.1 Examine the functions of the formal organisation and their impact on formal systems



Amplification of assessment criteria (continued) 3.3.2 Evaluate the impact of the informal organisation on culture; evaluate the importance of

taking the informal organisation into account when attempting to change the

organisational culture

3.4 Apply elements of organisational culture to strategy, aims, and objectives

3.4.1 Analyse the cultural web model involving elements of culture, e.g. rituals, symbols,

structure, power, control

3.4.2 Demonstrate the significance of the cultural web for identifying existing and preferred

cultures

3.4.3 Evaluate the cultural changes needed to improve an organisations’ performance in line

with strategic aims and objectives

Learning outcome 04: Understand models for planning and implementing organisational

change

Assessment criteria

The candidate can:

4.1 Compare types and models of organisational change

4.2 Analyse variables and their interaction in the implementation of change

4.3 Select methods for organisational change that are appropriate to the type of

intervention

Amplification of assessment criteria 4.1 Compare types and models of organisational change

4.1.1 Explain the main raisons for change: external (competition, technology, customers) and

internal (costs, expectations, shareholders)

4.1.2 Evaluate the main theoretical models of organisational change and their relevance for

organisational circumstances, e.g. planned versus crisis; incremental versus radical

4.2 Analyse variables and their interaction in the implementation of change

4.2.1 Examine the variables within the context of planned change: individual behaviour, work

setting, organisational performance, leadership effectiveness

4.2.2 Apply these variables to real cases to help appraise the interaction of the variables in real

world settings

4.3 Select methods for organisational change that are appropriate to the type of intervention

4.3.1 Evaluate the appropriateness of ‘top down’ vs. ‘bottom up’ strategies for change

4.3.2 Understand the possible role of transactional analysis in identifying the appropriate

change management strategy

Learning outcome 05: Understand the interaction between organisational culture and the

process of implementing change

Assessment criteria

The candidate can:

5.1 Identify stages in the change process



5.2 Explain the role of the change agent in the change process

5.3 Analyse the impact of organisational culture on the implementation of leading change

5.4 Assess the outcomes of the change process

Amplification of assessment criteria 5.1 Identify stages in the change process

5.1.1 Outline the eight-step model for assessing the stages of the change process

5.2 Explain the role of the change agent in the change process

5.2.1 Outline the role and values of the change agent in the intervention process, e.g. expert,

facilitator, etc.

5.2.2 Identify the attributes of a change champion, e.g. innovator, achiever, charisma,

persuader, etc.

5.2.3 Evaluate whether a small number of champions can change the culture of a workplace

5.3 Analyse the impact of organisational culture on the implementation of leading change

5.3.1 Analyse the effect of organisational culture on the interaction and implementation of

leading (transactional and transformational) organisational change

5.4 Assess the outcomes of the change process

5.4.1 Analyse change outcomes in private, public and not for profit organisations, using

measures such as efficiency, effectiveness, productivity, performance, profitability and

employee satisfaction

5.4.2 Evaluate which measure or measures are most appropriate in different business

circumstances

Learning outcome 06: Understand the causes and effects of resistance to change,

identifying strategies for overcoming it

Assessment criteria

The candidate can:

6.1 Discuss the causes and effects of resistance to change

6.2 Identify forces on the organisation causing and resisting change

6.3 Evaluate strategies to address the causes and effects of resistance to change

Amplification of assessment criteria 6.1 Discuss the causes and effects of resistance to change

6.1.1 Identify the main reasons for resisting change, e.g. structural, power, group, social,

psychological, and historical

6.1.2 Categorise the main types of resistance to change: passive and active; types of organised

and informal conflict

6.2 Identify forces on the organisation causing and resisting change

6.2.1 Outline the main forces for change, e.g. market, workforce, and competition; forces

against change, e.g. complacency, fear, and power

6.2.2 Evaluate the change model, using force field analysis for assessing the strength and

direction of resistance

6.3 Evaluate strategies to address the causes and effects of resistance to change

6.3.1 Examine strategies and actions for overcoming resistance to change



Amplification of assessment criteria (continued) 6.3.2 Evaluate the difficulties of building a culture of change through commitment, support and

shared objectives




Guidance for tutors

This unit is centred on the candidate applying organisation and management theories in

their study of the analysis and design of different types of organisations, and grasping the

strategic importance and impact of organisational change and achievement of change

objectives through the application of change models.

Learning outcome one introduces the candidate to the study of organisations by drawing on

concepts, models and theories that support analysis and evaluation through managerial and

sociological perspectives on their nature, design and impact.

Learning outcomes, two and three explore the impact of the external environment and

involve examining the relationship between culture and structure on organisational

operations. Models, classificatory schemes, and practical actions should be used to support

understanding and application by the candidate.

Learning outcomes four and five address reasons for change and the nature, influencing

factors including the role of leadership, implementation, methods, and outcomes of change.

The candidate can be introduced to the approach of organisational development, with its

view on the nature and goals of change and associated set of techniques, within the

framework of change methodology.

Learning outcome six then follows with an emphasis on the attitudinal and behavioural

implications of change, models, and strategies that can be adopted for analysis and action,

and cultural outcomes to which to aspire.

This approach offers scope for introducing a variety of teaching materials and approaches

for analysing organisations and investigating approaches to managing change within ‘real’

and case study organisations that are consistent with the credit value and indicative guided

learning hours for this unit, appropriate for its level and scope and at the same time

satisfying its aims and rationale whilst supporting the candidate in their research for

assessment.

It is essential that candidates develop analytical skills and a critical approach the topics of

the unit and the associated reading materials.



505 Human resource management

Credit: 10 GLH: 50

Unit aim

This unit examines the concept and practice of human resource management (HRM). It

explores how the HRM function supports the achievement of an organisation’s objectives

and strategies. The unit also aims to introduce candidates to appropriate concepts and

theories that encapsulate this important corporate function.

Candidates who aspire to positions in human resource management will develop knowledge,

understanding, and skills necessary for such job roles.

Learning outcomes

This unit has seven learning outcomes.

The candidate will:

01 Understand the context and role of human resource management (HRM)

02 Understand the nature of strategic HRM

03 Understand the role of human resource planning (HRP) in the organisation

04 Explore the process of recruitment and selection

05 Understand the context of human resource development (HRD)

06 Understand the role of performance management and reward in the organisation

07 Understand the context of the employment relationship

Mandatory reading

Torrington, D. et al. (2007) Human Resource Management. 7th edition. Harlow, FT Prentice

Hall

Further reading

Armstrong, M. (2006). Performance Management: Key Strategies and Practical Guidelines.

3rd edition. Kogan Page

Gibb, A. (2007) Human Resource Development: Processes, Practices and Perspectives. 2nd

edition. Palgrave MacMillan

Handy, C. (1993). Understanding Organisations. 4th edition. Penguin

Kirton, G. and Greene, M. (2004) The Dynamics of Managing Diversity. 2nd edition.

Butterworth Heinemann

Lewis, P. et al. (2003) Employee Relations: Understanding the Employment Relationship.




Mullins, L. J. (2010) Management and Organisational Behaviour. 9th edition. Harlow, FT

Prentice Hall

Pilbeam, S. and Corbridge, M. (2006) People Resourcing: Contemporary HRM in Practice. 3rd

edition. Harlow, FT Prentice Hall

Roberts, G. (2005) Recruitment and Selection. 2nd edition. Chartered Institute of Personnel

and Development

Further reading (continued)

Saunders, M. N. K. et al (2007) Strategic Human Resource Management: Contemporary

Issues.


Sheilds, J. (2007) Managing Employee Performance and Reward: Concepts, Practices and

Strategies. Cambridge University Press

Taylor, S. (2008) People Resourcing. 4th edition, Chartered Institute of Personnel and

Development






Learning outcome 01: Understand the context and role of human resource management

(HRM)

Assessment criteria

The candidate can:

1.1 Identify the origins of HRM

1.2 Analyse the nature and objectives of personnel management and HRM

1.3 Evaluate the differences between personnel management and HRM

1.4 Analyse the influences on the development of HRM as a theory and management

function

Amplification of assessment criteria 1.1 Identify the origins of HRM

1.1.1 Identify the changing role of HRM in the organisation

1.1.2 Explain the evolution and history of HRM

1.1.3 Critically evaluate the role of HRM in achieving organisational effectiveness

1.2 Analyse the nature and objectives of personnel management and HRM

1.2.1 Identify the objectives and activities of personnel management

1.2.2 Identify the objectives and activities of HRM

1.2.3 Evaluate the changing role of the HR professional in the 21st century

1.3 Evaluate the differences between personnel management and HRM

1.3.1 Identify the definitions and characteristics of personnel management and HRM

1.3.2 Differentiate between personnel management and HRM

1.3.3 Identify the stereotypes of personnel management and HRM

1.3.4 Evaluate the differences between traditional personnel and emergent HRM

1.4 Analyse the influences on the development of HRM as a theory and management function

1.4.1 Identify major management and organisational theories that have influenced the

development of HRM

1.4.2 Explain the impact of economic and demographic trends upon HRM



Learning outcome 02: Understand the nature of strategic HRM

Assessment criteria

The candidate can:

2.1 Identify the context of strategic HRM

2.2 Evaluate the interface between HRM and strategic management

2.3 Analyse models of strategic HRM

2.4 Evaluate the extent to which strategic HRM influences business performance

Amplification of assessment criteria 2.1 Identify the context of strategic HRM

2.1.1 Explain the impact of changing job requirements upon HRM today

2.1.2 Describe the reasons for the move towards a strategic approach to HRM

2.1.3 Analyse the strategic HRM framework and evaluate its impact on organisational

performance

2.2 Evaluate the interface between HRM and strategic management

2.2.1 Identify the impact that the strategic management framework has on organisational

performance

2.2.2 Identify the impact that strategic management and environmental issues have on HRM

2.2.3 Analyse the relationship between business strategy and HR strategy and evaluate how

these fit together

2.3 Analyse models of strategic HRM

2.3.1 Explain the theoretical perspectives of strategic HRM

2.3.2 Identify different models of HRM, such as the Harvard and Michigan models

2.3.3 Compare soft and hard approaches to HRM and their impact on the management of

people

2.3.4 Evaluate the impact of soft and hard approaches to HRM upon specific businesses

2.4 Evaluate the extent to which strategic HRM influences business performance

2.4.1 Explain the critical goals of HRM in achieving business performance

2.4.2 Explain the concept of the HR manager as business partner

2.4.3 Identify the line manager’s role in implementing HR strategy

2.4.4 Explain the role of human capital management in the knowledge economy

Learning outcome 03: Understand the role of human resource planning (HRP) in the

organisation

Assessment criteria

The candidate can:

3.1 Identify the nature and objectives of human resource planning (HRP)

3.2 Examine the process of HRP

3.3 Identify different types of HR plans

3.4 Evaluate the difficulties of effective HRP implementation in specific organisations



Amplification of assessment criteria 3.1 Identify the nature and objectives of human resource planning (HRP)

3.1.1 Identify the contribution that HRP can have when resourcing the organisation

3.1.2 Explain the definitions and characteristics of HRP

3.1.3 Critically examine the nature and scope of HRP and its impact on organisational

performance

3.1.4 Describe the advantages and disadvantages of traditional manpower planning vs.

integrated HRP

3.2 Examine the process of HRP

3.2.1 Identify the HRP processes and activities

3.2.2 Demonstrate how you forecast current and future human resource needs in the

organisation

3.2.3 Analyse the role of labour turnover and labour stability indices in forecasting labour

requirements

3.3 Identify different types of HR plans

3.3.1 Examine the need for HR plans in resourcing the organisation

3.3.2 Identify different types of HR plans and their application

3.3.3 Demonstrate how HRP can be used as a decision-making tool

3.4 Evaluate the difficulties of effective HRP implementation in specific organisations

3.4.1 Examine one or more cases where businesses have successfully built an HP plan into the

overall corporate strategy

3.4.2 Examine one or more cases where businesses have either not tried or have failed to

successfully build an HP plan into the overall corporate strategy

3.4.3 Discuss the key factors affecting the effectiveness of HRP in organisations

Learning outcome 04: Understand models for planning and implementing organisational

change

Assessment criteria

The candidate can:

4.1 Identify the objectives of recruitment and selection in the organisation

4.2 Analyse the recruitment and selection processes as a system

4.3 Apply recruitment and selection methods

Amplification of assessment criteria 4.1 Identify the objectives of recruitment and selection in the organisation

4.1.1 Examine the role of recruitment and selection in the organisation

4.1.2 Identify the definitions and characteristics of recruitment and selection

4.1.3 Critically examine the use of internal and external recruitment

4.2 Analyse the recruitment and selection processes as a system

4.2.1 Examine the systems approach to recruitment and selection

4.2.2 Identify the sub-systems of recruitment and selection

4.2.3 Demonstrate how recruitment and selection can help meet the organisation’s business

needs

4.2.4 Examine the link between recruitment and selection and HRP



Amplification of assessment criteria (continued) 4.3 Apply recruitment and selection methods

4.3.1 Identify the effectiveness of recruitment and selection methods in resourcing the

organisation

4.3.2 Demonstrate the role and types of interviews used in the selection process

4.3.3 Examine the role of psychometric tests and assessment centres in the selection process

4.3.4 Explain how matching processes may help to achieve a fit between the organisation’s

requirements and selected individuals

4.3.5 Compare competence-based selection vs. traditional selection

Learning outcome 05: Understand the context of human resource development (HRD)

Assessment criteria

The candidate can:

5.1 Identify the context of HRD in the organisation

5.2 Analyse models of HRD

5.3 Examine learning theories 5.4 Describe the role of continuing professional development (CPD) and lifelong learning

Amplification of assessment criteria 5.1 Identify the context of HRD in the organisation

5.1.1 Examine the role of HRD in the organisation

5.1.2 Identify the definitions and characteristics of HRD

5.1.3 Analyse the role of the HRD practitioner and consultant in the learning and development

process

5.2 Analyse models of HRD

5.2.1 Identify the different dimensions of HRD and their implications for the business practice

5.2.2 Examine the different models of HRD and their influence on learning and development in

the organisation

5.2.3 Critically evaluate the impact of strategic HRD on the performance of individuals and the

organisation

5.3 Examine learning theories

5.3.1 Examine the impact that learning theories have on individual and organisational

performance

5.3.2 Examine different learning styles and their impact on the effectiveness of learning and

development

5.3.3 Outline learning and development methods; examine how to choose appropriate methods

to enhance learning

5.3.4 Describe how to evaluate and determine the effectiveness of different learning and

development events

5.4 Describe the role of continuing professional development (CPD) and lifelong learning

5.4.1 Explore the definitions, characteristics, and objectives of CPD

5.4.2 Demonstrate the continuous development spiral

5.4.3 Explore the definitions and characteristics of lifelong learning and its influence on

individual development and performance



Amplification of assessment criteria (continued) 5.4.4 Examine the link between CPD and lifelong learning

Learning outcome 06: Understand the role of performance management and reward in the

organisation

Assessment criteria

The candidate can:

6.1 Identify the ways in which performance can be managed

6.2 Evaluate the ways in which performance can be measured

6.3 Develop strategies for rewarding employees in the organisation

Amplification of assessment criteria 6.1 Identify the ways in which performance can be managed

6.1.1 Outline the role of performance management in the organisation

6.1.2 Examine the definitions and characteristics of performance management

6.1.3 Demonstrate performance management models; evaluate their application to business

practice and individual and organisational performance

6.1.4 Examine the role of employee engagement and commitment in performance management

6.1.5 Explore the techniques for managing underperformance and regulating individual

behaviour

6.2 Evaluate the ways in which performance can be measured

6.2.1 Examine the purpose and role of performance measurement in the organisation

6.2.2 Explore the definitions and characteristics of performance measurement

6.2.3 Define the different types of individual and organisational performance measures

6.2.4 Critically examine the value of quantitative measures of performance

6.3 Develop strategies for rewarding employees in the organisation

6.3.1 Examine the role and objectives of reward in the organisation

6.3.2 Identify types of reward systems and pay structures

6.3.3 Critically examine how performance related pay impacts on individual and organisational

performance

6.3.4 Analyse the link between motivation and reward, evaluate the scope for unintended

consequences

Learning outcome 07: Understand the context of the employment relationship

Assessment criteria

The candidate can:

7.1 Examine the role of the psychological contract in the organisation

7.2 Identify the importance of equality of opportunity and managing diversity in the

employment relationship

7.3 Explain how organisations deal with conflict situations through discipline and grievance

procedures



Amplification of assessment criteria 7.1 Examine the role of the psychological contract in the organisation

7.1.1 Explore the role of the psychological contract in the employer-employee relationship

7.1.2 Explore the old and new psychological contract and its impact on individual and

organisational performance

7.1.3 Examine the impact of the new psychological contract on employee engagement and

commitment

7.2 Identify the importance of equality of opportunity and managing diversity in the employment

relationship

7.2.1 Examine the role of equal opportunities and diversity in the employment relationship

7.2.2 Explore the legislative equal opportunities framework and its impact on individuals and the

organisation

7.2.3 Examine the implications for best practice when using equal opportunities policies and

codes of practice

7.2.4 Examine the factors involved in managing diversity and promoting difference

7.3 Explain how organisations deal with conflict situations through discipline and grievance

procedures

7.3.1 Examine the role of conflict resolution, discipline, and grievance in the employment

relationship

7.3.2 Explore the causes and characteristics of conflict

7.3.3 Outline the mechanisms for resolving individual conflict

7.3.4 Demonstrate the nature of discipline and grievance in the employment relationship

7.3.5 Explain the uses of disciplinary and grievance procedures and codes of practice

7.3.6 Demonstrate how to successfully conduct discipline and grievance interviews




Guidance for tutors

The unit is based on the operational and strategic management and development of human

resources in the organisation.

Learning outcome one introduces candidates to the context of HRM in the organisation; its

origins and objectives for managing people to be a source of competitive advantage to their

employers. It presents the evolution of HRM, from its origins as personnel management,

and enables candidates to identify the model which operates in their organisation, or one

with which they are familiar.

Learning outcome two enhances learning outcome one by examining the nature of HR

strategy and its relationship to mainstream strategic management. It will enable candidates

to assess the impact that strategic HRM has on both individual and organisational

performance. Students can develop an HR strategy for an organisation of their choice.

Learning outcome three introduces candidates to the important role of human resource

planning and the way in which it ensures the organisation is resourced with skilled,

knowledgeable, and experienced individuals. It will enable candidates to devise an HR plan,

based on an organisation of their choice.

Learning outcome four builds on learning outcome three and enables candidates to identify

the most effective ways of recruiting and selecting individuals, once organisational supply

and demand for HR has been analysed. It will further enable candidates to match individuals

to vacant posts, in line with organisational requirements and relevant HR plans.

Learning outcome five enables candidates to understand the role of human resource

development in ensuring that new and existing employees are developed, from both an

operational and strategic perspective. Students will be able to identify the most suitable

methods for developing people, in line with individual and organisational performance

objectives.

Learning outcome six builds on learning outcome five, insofar as candidates will be able to

understand the way performance management ensures individual performance objectives

are aligned to those of the organisation; thus facilitating organisational success. Students

will further be able to evaluate ways in which performance can be measured and rewarded.

Learning outcome seven important learning outcome enables candidates to understand the

context of the employer-employee relationship in the organisation and the way impacts on

aspects of equality of opportunity, diversity, conflict and discipline and grievance. It will

enable candidates to evaluate employment practices in an organisation of their choice.

The range of learning outcomes will provide tutors with the capacity to utilise a range of

teaching and learning strategies that will develop candidates’ knowledge and understanding,

such as case studies, and enable them to relate theory and practice to their own

organisation, or one with which they are familiar.



506 Knowledge management strategy

Credit: 5 GLH: 25

Unit aim

This unit explores the context and concept of knowledge management and its importance to

organisations operating in the 21st century knowledge economy. It investigates if knowledge

can be managed and how it can be used by business organisations to gain and sustain

competitive advantage.

Candidates who aspire to positions in knowledge management will develop knowledge,

understanding and skills necessary for such job roles.

Learning outcomes

This unit has three learning outcomes.

The candidate will:

01 Understand the concept of knowledge management in the organisation

02 Understand the practice of knowledge work in the organisation

03 Understand the impact of knowledge management on business strategy

Mandatory reading

Hislop, D. (2009). Knowledge Management in Organisations: A Critical Introduction. 2nd

edition. Oxford, Oxford University Press

Further reading

Amidon, D. (1999) Innovation Strategy for the Knowledge Economy: The Ken Awakening.

Butterworth Heinemann

Cortada, J. (1998). Rise of the Knowledge Worker. Butterworth Heinemann

Davenport, T. H. and Prusak, L. (2000) Working Knowledge: How Organisations Manage

What They Know. 2nd edition. Harvard Business School Press

Klein, D. A. (1998) The Strategic Management of Intellectual Capital. Butterworth

Heinemann

Morris, S. et al. (1996) The Knowledge Manager: Adding Value in the Information Age.


Zack, M. H. (1998) Knowledge Strategy. Butterworth Heinemann






Learning outcome 01: Understand the concept of knowledge management in the

organisation

Assessment criteria

The candidate can:

1.1 Outline different views of the term knowledge management

1.2 Examine critically models on knowledge management

1.3 Explore the characteristics of the knowledge intensive firm

1.4 Demonstrate how knowledge can be used as a source of competitive advantage by

organisations

Amplification of assessment criteria

1.1 Outline different views of the term knowledge management

1.1.1 Outline the debate over the meaning of knowledge management

1.1.2 Identify the definitions and perspectives of knowledge management

1.1.3 Examine the objectives of knowledge management

1.2 Examine critically models on knowledge management

1.2.1 Identify the characteristics, and implications for practice, of seeing knowledge as a

social construct

1.2.2 Identify the characteristics and implications for practice on the intellectual capital

model

1.2.3 Evaluate the applicability of these models to real-world contexts

1.3 Explore the characteristics of the knowledge intensive firm

1.3.1 Explore the definitions and characteristics of knowledge intensive firm

1.3.2 Analyse knowledge work in the knowledge intensive firm and its implications for

business practice and organisational performance

1.4 Demonstrate how knowledge can be used as a source of competitive advantage by

organisations

1.4.1 Analyse the knowledge-based view of the firm versus the resource-based view of

the firm

1.4.2 Examine the relationship between intellectual capital and competitive advantage

1.4.3 Define the elements of intellectual capital: structural, human and customer capital

1.4.4 Evaluate the impact of knowledge management on competitive advantage



Learning outcome 02: Understand the impact of a dynamic external environment on

organisational structures and processes

Assessment criteria

The candidate can:

2.1 Identify the role of the knowledge worker in the organisation

2.2 Examine the role of the knowledge manager in the organisation

2.3 Examine the difficulties of managing knowledge successfully within different

organisations


2.1 Identify the role of the knowledge worker in the organisation

2.1.1 Explore the definitions and characteristics of the knowledge worker

2.1.2 Examine the role of the knowledge worker in the knowledge intensive firm

2.1.3 Explore the different types of knowledge used by knowledge workers

2.2 Examine the role of the knowledge manager in the organisation

2.2.1 Explore the definitions of the knowledge manager

2.2.2 Examine the nature of the knowledge manager’s job

2.2.3 Define the characteristics of a knowledge manager

2.2.4 Examine critically the role of the knowledge manager in managing knowledge

2.3 Examine the difficulties of managing knowledge successfully within different

organisations

2.3.1 Outline the constraints on acquiring, organising, and retaining knowledge within

real organisations

2.3.2 Evaluate the most appropriate ways to manage knowledge within different

organisations

Learning outcome 03: Understand the relationship between structure, culture and the

strategic aims and objectives of organisations

Assessment criteria

The candidate can:

3.1 Examine the link between knowledge management and strategy formulation

3.2 Evaluate the ways in which knowledge management affects human resource strategy

3.3 Demonstrate how knowledge management strategy can be implemented


3.1 Examine the link between knowledge management and strategy formulation

3.1.1 Examine the role of knowledge management in strategy formulation

3.1.2 Demonstrate knowledge based environmental analysis (PESTEL) and corporate

appraisal (SWOT)



Amplification of assessment criteria (continued)

3.1.3 Explore how to select knowledge management strategies that best exploit

organisations’ resources and capabilities

3.2 Evaluate the ways in which knowledge management affects human resource strategy

3.2.1 Examine the impact of knowledge management on staff retention

3.2.2 Explore the link between knowledge management and organisational culture

3.2.3 Demonstrate the resource implications of implementing knowledge management

strategies

3.3 Demonstrate how knowledge management strategy can be implemented

3.3.1 Describe the resource implications and impact on organisational performance of

implementing knowledge management strategies

3.3.2 Describe the codification strategy for turning tacit into explicit knowledge

3.3.3 Evaluate the relationship between effective knowledge management strategy and

the operational performance of different organisations




Guidance for tutors

This unit is based on the evolving discipline and concept of knowledge management and the impact

that the formation and implementation of knowledge management strategy has on knowledge

intensive firms and their employees.

Learning outcome one introduces candidates to the development of the knowledge economy and

the importance of knowledge as a commoditised resource in organisations. Candidates can explore

different epistemologies of knowledge and determine whether or not knowledge can be managed.

Learning outcome two builds on learning outcome one and analyses various models of knowledge

management and their conceptual and practical application in knowledge intensive firms.

Candidates can apply the models to their own organisation, or one with which they are familiar,

particularly in terms of communities of practice and the role they play in sharing knowledge.

Learning outcome three enables candidates to identify their role as a knowledge worker in their

organisation, or one with which they are familiar. It explores the important role of knowledge

managers and examines how they promote knowledge creation, dissemination, sharing, and

exploitation.

The range of learning outcomes will provide tutors with the capacity to utilise a range of teaching

and learning strategies that will develop candidates’ knowledge and understanding, such as case

studies, and enable them to relate theory and practice to their own organisation, or one with which

they are familiar.

IAM Level ? - Industry Qualifications · The IQ IAM Level 5 Certificate in Business and...

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