The Association of Business Executives

QCF

Human Resource Management

Suggested Answers

Unit Title:

Human Resource Management

Unit Code:

5HRM

QCF Level:

Session:

June 2013

STRUCTURE OF PAPER: Answer ALL FOUR sections

SECTION A: Answer ANY TWO questions from Q1Q3
Maximum for Section A:
SECTION B: Answer ANY TWO questions from Q4Q6
Maximum for Section B:
SECTION C: Answer ANY TWO questions from Q7Q9
Maximum for Section C:
SECTION D: Answer ANY TWO questions from Q10Q12
Maximum for Section D:
TOTAL MARKS AVAILABLE FOR THE PAPER

13 marks each
26 marks
13 marks each
26 marks
12 marks each
24 marks
12 marks each
24 marks
100 marks

SECTION A
Candidates must answer ANY TWO questions in this section.
Each question carries 13 marks
Section A is worth 26% of the total marks available for the paper.
Question 1
Q1

Explain the term HR Business Partner. Support your answer with examples.

(a)

The term HR Business partner is typically used to characterise the contemporary role of
HRM in organisations. It can be contrasted with earlier phases: the welfare role
concerned with looking after workers; and the industrial relations/ personnel
management approach focussing on managing the relationship with trade unions and
ensuring compliance with employment legislation.
Candidates may approach the answer to this question in several ways, but the key
feature that should be addressed is that the focus of business partners is on delivering
value to the organisations customers, investors and employees.
Examples can include:
A requirement that HR specialists understand the organisations business strategy;
identify with managerial objectives; contribute to optimal people performance; and, thus
enhance organisational performance.
An equally valid approach is to explain that HR may be organised to achieve these
outcomes through creating separate functions:
Shared Services a unit which handles routine transactional HR activities, for example,
payroll, absence monitoring and simpler employee relations issues;
Centres of Excellence specialists with expertise in key functional areas of HR, for
example, training and development, reward and diversity management/ equal
opportunities;
Business Partners HR professionals who work closely with operational managers to
ensure that people decisions are consistent with business objectives.
Maximum Marks for (a)

Q1
(b)

4 marks

Identify and describe three ways in which the HR function can positively contribute to
sustained improvements in organisational performance.
Answers should draw from the proposition that people can be seen as an organisations
key resource and that the HR function can contribute to organisational performance
through an approach that optimises employees commitment and contribution.
This might include:
Supporting higher level organisational objectives through vertical integration;
Bundling HRM practices (horizontal integration);
Viewing people as a resource that is less easy to copy, buy or create than other
resources;
Ensuring that the organisation is appropriate resourced;
Developing a positive employee relations culture;
Creating structures that attract, retain, and motivate staff;
Ensuring employees and managers have the necessary skills, knowledge and attitudes.
Maximum Marks for (b)

Total Maximum Marks for Q1

9 marks
13 marks

Question 2
Q2
(a)

Explain the meaning of both equal opportunity and diversity.

(i) Equal Opportunities (EO) is an organisational response to the growth in discrimination
legislation. The coverage of legislation will vary between countries, but can include: sex
and gender; race and ethnicity; disability; age; religion; and sexual orientation.
EO initiatives typically have a concern with avoiding legal claims of discrimination. They
tend to focus on disadvantaged groups, on target-setting, on positive action (for
example, to deal with under-representation in certain jobs) and on seeking to remedy
past discrimination.
(ii) The CIPD (2008) defines diversity as valuing everyone as an individual, as opposed
to the group focus of EO, and see managing diversity as central to good people
management. Diversity management recognises that the workforce is comprised of a
diverse population of people consisting of both visible and non-visible differences. This
includes not only differences covered by employment law, but others such as
personality, social background and work style. If the organisation is able to harness
these differences and create a culture where diverse talent is valued and can flourish
that will enable organisations to maximise their human resources and enhance their
competitive advantage. While there is some evidence to support this claim, it is
recognised that more work is needed to prove the case.
Maximum Marks for (a)

Q2
(b)

7 marks

Describe three actions an employer can take to promote equal opportunities and
diversity in the workplace.
The development of a clear policy which states the organisations commitment to equal
treatment and diversity.
Leadership from senior management.
Involvement of employees and, where appropriate, their representatives.
Communication of the policy to all employees.
Including the policy in recruitment material sent to prospective employees.
Monitoring and review of the policy.
Training of those involved in decisions that are covered by the policy, for example,
recruitment, selection and appraisal.
A commitment to deal effectively with grievances arising from unfair treatment, including
disciplining those who have discriminated or breached the policy.
Maximum Marks for (b)

Total Maximum Marks for Q2

6 marks
13 marks

Question 3
Explain the role of each of the following in the effective management and development of people:
Q3
(i)

The individual employee

The individual employee is expected to fulfil the terms of their contract of employment in
terms of performance and conduct in order that the organisation is successful. They
should cooperate with the employer, obey reasonable instructions and take responsibility
for their and others safety.
Where appropriate, they should take some responsibility for their own development.
Maximum Marks for (i)

Q3
(ii)

The line manager

Line managers typically have the day-to-day HR responsibility for their staff which
includes motivating employees to perform and behave in a way that will meet
departmental and organisational objectives. Depending upon the organisation they may
have involvement in a range of HR activities, including: the recruitment and selection
process; participating in induction programmes; conducting grievance and disciplinary
interviews (perhaps with the assistance of HR); monitoring absences; managing
performance and conducting appraisal interviews. Line mangers need to assess the
training and development needs of their staff. They also liaise with HR on many of these
activities.
Maximum Marks for (ii)

Q3
(iii)

3 marks

5 marks

The Human Resource specialist

The HR specialist is responsible for the design of policies and procedures which will help
the organisation meet its business objectives.
They need to assess the human resource requirements of the business and plan for any
future changes.
HR specialists should provide advice to, and support, line managers in the management
of their staff, including staff training and management development.
HR may also provide a range of specialist services, for example, occupational health
and safety, retirement planning.
Maximum Marks for (iii)

Total Maximum Marks for Q3

5 marks
13 marks

SECTION B
You must answer ANY TWO questions in this section. DO NOT answer ALL THREE
questions.
Each question carries 13 marks
Section B is worth 26% of the total marks available for the paper.
Question 4
Q4
(a)

Briefly describe the importance of Human Resource (or Workforce) Planning.

HR planning is concerned with the systematic and continuing process of analysing an
organisations human resource needs, taking account of internal and external changes,
and developing plans to meet those needs. In essence, it is about getting the right
number of the right sorts of people in the right place at right time and at the right cost.
It includes both hard and soft planning. Without HR planning organisations can be
caught out by shortages of staff or particular skill sets. Equally, they can find
themselves with a surplus of particular staff. HR planning provides a rational framework
for considering a broad range of HR issues.
Maximum Marks for (a)

Q4
(b)

4 marks

An organisations Human Resource Plan shows that it will have a shortage of staff and
skills.
Describe three actions that may be taken to resolve this shortage, making sure that you
give clear business-related arguments to support your answer.
Recruitment from the external labour market may be the only option but can be
relatively expensive.
Use of part-time, temporary or agency staff particularly useful if the shortage is
expected to be short-term. Also allows managers to judge whether temporary/ agency
staff may be suitable for permanent positions.
Offer overtime working to existing staff and/ or extend temporary and similar contract
workers overtime is more expensive but might be appropriate if (as above) shortage is
expected to be short-term.
Redeploy staff may be appropriate if a surplus of suitable staff exists in another part of
the organisation, thus avoiding redundancy and other costs.
Training and/or promoting staff may be cheaper to recruit replacements for lower level
posts.
Redesign of jobs for example removing routine tasks from skilled employees and
allocating this work to a new, less expensive post.
Maximum Marks for (b)

Total Maximum Marks for Q4

9 marks
13 marks

Question 5
Q5
(a)

Outline the seven key stages of the recruitment and selection process.
Ensure a vacancy exists and the nature of the post.
Undertake/ review the job analysis.
Write job description and person specification.
Draft advertisement and choose appropriate recruitment source(s).
Shortlist candidates from applications received.
Select successful candidate(s) using appropriate selection method(s), for example,
interviews, selection tests and assessment centres.
Take up references (if appropriate) and make job offer.
Maximum Marks for (a)

Q5
(b)

7 marks

Identify two external recruitment sources that you would use to fill the job of an office
administrator. Give reasons for your choices.
The following sources are likely to be those most suitable for an office administration
role:
Casual enquiries cheap but typically provides a small pool of applicants.
Recommendation from existing employees also comparatively cheap (even if an
incentive is offered to existing staff); prospective employee may receive a more realistic
job preview than will emerge from other forms recruitment; a claim for indirect
discrimination can arise in countries where discrimination legislation applies if this is the
sole method used.
Job Centres where provided by government these are free to use and may have a
number of suitable applicants on the books.
Employment Agencies unlike Job Centres private agencies charge a fee, typically
based on starting salary, if an applicant is employed; some agencies specialise in certain
jobs and these include office administration; some loss of control over the shortlisting
process.
The following may also be suitable, but it is expected that to achieve full marks for each
source candidates would make some comment on their possible limitations:
Press advertising (see marking guide lines above) tend to be more costly; for the post
identified, the local press may be suitable.
Internet (see marking guide lines above) using the companys own website,
commercial job seekers sites or social media sites is becoming increasingly common;
costs will vary; widens the pool of potential candidates but can result in a number of
inappropriate applications and may not be suitable for a comparatively low level post.
Careers offices may be a good source for school leavers if the post requires no
previous experience.
Universities and colleges similar to Careers Offices, above, and provided the person
specification shows that the job is judged to be suitable for a graduate.
The following sources are relatively expensive and not suitable for a comparatively low
level post:
Radio/ television advertising.
Executive search consultants (or headhunters).
Maximum Marks for (b)

Total Maximum Marks for Q5

6 marks
13 marks

Question 6
You are the Human Resources Manager for a large company. The manager of the Customer
Services Department is recruiting three new members of staff to join her team. She is planning to
use one-to-one interviews as the sole selection method.
Q6
(a)

Briefly describe three typical problems of one-to-one interviews.

Difficult to guarantee fair and equal treatment where only one person is responsible for
the process and decision.
The manager may lack experience or may not have been trained so could lack good
interviewing or judgement skills.
A number of other problems exist. Although they can arise in other types of interviews,
e.g. panel interviews, they can be exacerbated where only one person is conducting the
interview:
The halo effect.
The horns effect.
Stereotypical assumptions made about candidate.
Confirmatory information seeking bias interviewers tend to make up their mind in the
first few minutes of the interview and spend the rest of the time actively seeking
information to confirm that judgement.
Potentially the interviewer will undertake a large number of interviews which can be
tiring, make it difficult to retain concentration and ensure that each candidate is given
adequate consideration.
Maximum Marks for (a)

Q6
(b)

6 marks

Identify one selection method other than the one-to-one interview and explain how this
method may overcome the problems of one-to-one interviews.
The most likely choices will be from: Panel or Sequential Interviews; Assessment
Centres; and Assessment Tests.
Panel or Sequential interviews can overcome many of the problems identified with oneto-one interviews since they involve more than one person. They allow interviewers to
discuss their views on candidates with one another and so form a better judgement with
less likelihood of bias. Panel interviews allow those not asking questions to observe and
listen to the candidates. Sequential interviews provide an opportunity to explore in more
detail aspects of the candidates experience and its relationship to the person
specification.
Assessment Centres involve a number of different methods, including interviews, group
assessments, work simulation, etc. This allows different aspects of the job to be
explored. Since the manager is recruiting three new members of staff, this method might
be more efficient. Also, there is a suggestion in the question of the need for teamwork
and a specific exercise can be designed to test candidates ability to work as a part of a
team.
Assessment tests are quite common selection methods, and a number of different types
exist which might be relevant to the duties of customer service staff. While they are
potentially less susceptible to the bias and perceptual problems of one-to-one interviews,
they need to be used with care. Questions included in the tests can have their own bias.
In addition, those administering the tests need to be trained in their use and the tests
must measure factors relevant to the job.

Maximum Marks for (b)

Total Maximum Marks for Q6

7 marks
13 marks

SECTION C
You must answer ANY TWO questions in this section. DO NOT answer ALL THREE
questions.
Each question carries 12 marks.
Section C is worth 24% of the total marks available for the paper.
Question 7
Q7

You are responsible for a training programme designed to improve the skills of customer
service staff.
Identify two on-the-job and two off-the-job training methods that could be used on this
programme. Give convincing reasons to show how the effectiveness of these training
methods can be maximised.
On-the-job methods most relevant to the role identified in the question are:
Demonstration (or sitting with Nelly) and One-to-One instruction. The former would
involve the learner observing a more experienced person carry out the tasks required on
the assumption that they will gain knowledge of the skills and techniques required,
although the learner may not understand why something is being done. To be
successful, Nelly would need to have some skills as a trainer, and there is the danger
that the learner will pick up any bad habits. One-to-one instruction can improve
understanding and speed-up learning through effective guidance by an experienced
instructor who can provide explanations and feedback.
Candidates may also seek to justify membership of a Quality Circle and involvement
Project Work. Both give the learner experience of interacting with others which can
develop their knowledge and skills. Both can be justified if the aim is to improve skills.
There is strong evidence to suggest that on-the-job methods are more effective than
those arranged off-the-job.
Relevant off-the-job methods include: Lectures; Role Plays; tailored In-Tray Exercises;
and Programmed Instruction, including on-line packages. Lectures may be relevant
where the need is to provide basic information. Similarly, the growth in on-line learning
allows information to be made available to learners and the packages can be accessed
by employees at their time of choosing. While there may be limited feedback available to
the learners both methods can be valuable, for example, to update learners knowledge
of new procedures. Role plays and In-Tray methods are valuable since skills can be
applied in an environment where mistakes can be made without any damage to
customer relations, particularly for example, where learners are asked to deal with an
aggressive customer. Candidates who identify coaching and mentoring methods will
need to justify how the cost and time involved is relevant to comparatively low level
positions, and to recognise the problem that it is unlikely that such resources can be
allocated to all customer service staff.

Total Maximum Marks for Q7

12 marks

Question 8
Q8
(a)

Identify and explain three purposes of performance appraisal.

To review past performance and agree new performance targets.
To identify training and development needs and to plan how these will be met.
To contribute to career planning.
To assess potential for promotion and to link this with succession planning.
As a method for determining performance related pay.
To enhance employee motivation and commitment.
To enhance the manager-employee relationship.
Maximum Marks for (a)

Q8
(b)

6 marks

Describe three problems that can arise in the appraisal process.

Where there is a lack of trust between the appraiser and appraised.
Employees may perceive appraisals as a tool of management control rather than as an
opportunity for open discussion.
The appraisal scheme is poorly designed.
Managers lack the skills or have not been trained to conduct effective appraisals.
Subjectivity of managers.
The recency effect where appraisers are influenced by an employees recent behaviour
rather than judging overall performance.
Appraisals are seen simply as a bureaucratic process and nothing happens as a result
of them.
A tension may arise where pay is determined in the appraisal process and employees
may be reluctant to admit problems if they think their pay will suffer.
Maximum Marks for (b)

Total Maximum Marks for Q8

6 marks
12 marks

Question 9
Q9

Describe three purposes of employee reward.

(a)

Recruitment appropriate pay levels can attract applicants to the organisation.

Retention can enhance loyalty to the organisation and thereby reduce turnover.
Motivation reward systems can be developed to improve commitment, facilitate
organisational change, create felt fairness and provide incentives.
Control costs and people.
Maximum Marks for (a)

Q9
(b)

6 marks

Outline and explain one benefit and one problem associated with linking employee pay
to performance.
Benefits
Employees see a reward for high performance.
Motivation and commitment may be enhanced.
The organisation can target rewards on key performance factors related
to organisational objectives.
Is consistent with the objectives of performance management.
Problems
To be effective it is suggested that performance related payments need to be
between 15 and 30 per cent of basic pay, thus:
- the motivational effects are questionable
- those receiving small amounts of PRP may become demotivated.
Individual-based schemes may inhibit teamwork.
Managers may be fearful of the consequences of making pay decisions.
Performance may be assessed subjectively and only on what is easy to measure.
Employees may focus only on those parts of the job that will lead to achieving a
bonus.
Maximum Marks for (b)

Total Maximum Marks for Q9

6 marks
12 marks

SECTION D
You must answer ANY TWO questions in this section. DO NOT answer ALL THREE
questions.
Each question carries 12 marks.
Section D is worth 24% of the total marks available for the paper.
Question 10
Q10
(a)

Briefly explain why many employers seek to involve their employees in the decisionmaking processes of the organisation.
A key focus of contemporary HRM is securing the commitment of employees to the
organisation, its business objectives and their jobs. It is argued that committed
employees are more likely to go the extra mile, are more motivated and are more loyal
to the organisation. This in turn leads to improve individual and, thus, organisational
performance. In order to build that commitment, it is suggested that employees need to
have some understanding of the organisations purpose, where their role fits within that
and to be able to contribute to the decision-making process. Employee involvement is
the term used to describes initiatives taken by management to enhance employee
commitment. While it typically does not involve management sharing power with
employees, it does allow employees to have some influence in the in the decisions that
are made.
Maximum Marks for (a)

Q10
(b)

4 marks

Describe four employee involvement techniques.

Employee involvement techniques can be catagorised into five groups:
Downward Communication where managers provide information to employees in
order to develop their understanding of managerial plans and objectives. These
would include formal and informal meetings between managers and employees,
employee reports, company newspapers, videos, annual presentations by senior
executives and team briefings.
Upward Communication and Problem-Solving which are designed to utilise the
knowledge and opinions of staff, either individually or in groups, and might include
suggestions schemes, total quality management approaches, quality circles and
attitude surveys.
Task Participation where employees are encouraged and/ or empowered to
expand the range of work tasks they undertake and would include job rotation, job
enrichment semi-autonomous work groups and teamwork.
Consultation typically arranged through employee representatives meeting
regularly with managers it allows managers to sound out staff views on
organisational plans and proposed changes.
Financial Involvement which can include profit-sharing schemes, share ownership
and group/ organisational wide bonus schemes.
Maximum Marks for (b)

Total Maximum Marks for Q10

8 marks
12 marks

Question 11
Q11
(a)

Describe four benefits that an organisation gains if it has a positive employer brand.
Improved recruitment since prospective employees will be attracted to the
organisation.
Reduced recruitment costs in terms of advertising and time taken to fill vacancies.
Increased staff retention and reduced labour turnover.
Increased pride amongst employees potentially leading to increased productivity,
greater loyalty and increased commitment.
Reduced absenteeism and consequential cost savings.
Improved levels of customer service because of staff continuity.
An enhanced psychological contract.
Greater acceptance of change.
Maximum Marks for (a)

Q11
(b)

8 marks

Briefly explain why some organisations may not be concerned with having a positive
employer brand.
While it is unlikely that organisations would set out to have a poor image, there
may be several reasons why they do not expend any effort in promoting a positive
image.
A belief that the costs associated with creating a positive image will outweigh any
benefits.
The problem of maintaining the image in times of financial difficulty.
The difficulty of quantifying costs and benefits.
The danger that a positive image can be easily damaged by a single event, e.g. a
high-profile discrimination claim.
The organisation may have no recruitment problems, especially if the workforce is
low-skilled and easily replaced.
The public profile of the organisation is judged to be unimportant.
Maximum Marks for (b)

Total Maximum Marks for Q11

4 marks
12 marks

Question 12
Q12

Describe the key features of a Learning Organisation.

Defined by Pedler, et al as an organisation which facilitates the learning of all its
members and continually transforms itself, The Learning Organisation is based upon
humanist ideas that highlight the social features of formal and informal learning.
It emphasises individual learning as much as organisational learning as part of the longterm view of the development process.
Key features include:
A shared vision across the organisation
A close link between learning and organisational strategy
Effective team relationships and team learning
A commitment to personal learning and self-development
A willingness to challenge traditional assumptions and thinking in the organisation
Risk taking and the belief that mistakes can enhance practice rather than being objects
of criticism
Mechanisms to ensure that individual learning is shared across the organisation.

Total Maximum Marks for Q12

12 marks