HRM exam questions PDF

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Potential exam questions and how to answer them....

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HRM exam questions & structuring of answers Chapter 2: Recruitment and Selection 1. Explain when it would be justified for a firm to spend a lot of money on recruitment. Ans:  Give examples when it was justified to spend money (w/ reasons): 1. in times of change 2. tight labour market 3. key employees 4. changing technology 5. senior jobs 6. recruitment failures could be ex and disastrous 7. where working remotely 8. new companies 9. overseas subsidiaries 10. initial cost of e-recruitment that would be economical in the future 11. when you need someone fast 12. to establish the employer brand 

The other was to say that all recruitment would be ex unless it was done properly and to go thru the recruitment process and to demonstrate how it could go wrong and cost money.

Chapter 3: Training and Development 1. Explain what needs to be considered before training is designed. Ans:  It is important to establish clear objectives for the learning before training is designed. Failing which it may lead to identifying inappropriate training program.  The learning needs to be sequenced and structured carefully to ensure maximum learning.

Chapter 4: Individual Performance – Attitudes & Behaviours 1.

Chapter 5: Psychological Contract 1. How can HR practices minimise the breach of psychological contract? → Refer to picture

Chapter 6: Rewards Systems & Motivation Potential question phrasings: If the question asks in this format –

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Individual performance related pay: focus on individual performance bonus and increment Individual performance pay: Discuss on the three points (Commission, Piecework and Individual performance bonus and increment)

1. Explain the Rucker Plan. Ans:  It focuses on the share of production: value of production (sales revenue + inventory value - costs of production) 2. Discuss the contribution of a theory on the decision to pay on the basis of behaviour or outcome. Ans:  State the 3 assumptions  Cost of behaviour and outcome  Choice of which to pay (which cost is more, then which method is more ideal) 3. Systems of individual performance-related pay are more trouble than they are worth. Discuss. Ans: How to answer it? To answer the good and bad points. Ans: (refer to photo) - Discuss the relative merits and problems of IPRP scheme, whether the merits outweigh the problems or vice versa. - Explain what is - Problems of IPRP include: Unclear / inconsistent performance targets - subjectivity and inconsistency in goal setting. Subjectivity: appraisal for pay purposes can be subjective. Problems...

4. To what extent is pay a motivator? Ans:  Explain 3 aspects of pay according to Mahoney  Distinguish between different sources of motivation in broad terms, highlighting the different between extrinsic and intrinsic rewards.  Highlight Taylor's "fair day's work..."  Draw upon content theory to explain whether pay motivates and under what conditions is it likely to motivate  Both lack strong evidence. Highlight also the criticism content theories.  Discuss the process theory - equity and expectancy theory (likely to motivate under certain conditions)

Chapter 7: Performance Management 1. Explain the difference between judgemental and developmental performance management.

Ans: Judgemental: Hard appraisal goals Focus on organisational goals Determine rewards Developmental: Soft appraisal goals Focus on individual goals

Chapter 8: Job Design and Redesign 1. Discuss the circumstances in which team-based job redesign might lead to improvements in organisational performance. (15 marks) Ans: According to Herzberg, it is the job that motivates employees. HR managers will want to make sure that extrinsic aspects of the job are in place so as to not bring about job dissatisfaction and, at the same time enrich the intrinsic aspects of the job. The Human Relations school highlights that it is essential from a social-psychological sense. Effectiveness of teams is dependent on employees’ skills (eg; complementary competencies, interpersonal skills, problem solving skills, etc) and management style. Provide examples of different forms of teamworking (human-centred work organisations at Volvo (Sanberg, 1994) as opposed to lean teams at Nissan (Wickens, 1995). Team-based job redesign contribute to improvements in organisational performance. However, its effectiveness is dependent on design, objectives and organisational context.

2. How far (To what extent) and in what ways is job redesign likely to impact on performance. Answer with reference to systems of teamworking. (15 marks) Ans: Debate over the contribution of teamwork on performance date back to the early twentieth century following the introduction of SM by F. Taylor. Highlight FW. Taylor's 1911 arguments that teamworking can lead to 'systematic soldiering' and the counter arguments from the Human Relations school that is essential from a social-psychological sense. Discuss the theoretical potential of teams (economic, social and cultural benefits). According to Natalie J. Allen and Tracy D. Hecht (2004), teams provide socialemotional benefits and competence-related benefits. State that the effectiveness of teams is dependent on employee skills and management style.

Provide examples of different forms of teamworking (human-centred work organisations at Volvo (Sanberg, 1994) as opposed to lean teams at Nissan (Wickens, 1995).

Chapter 9: Employee Involvement and Participation 1. What is employee involvement and participation? (5 marks) Ans: (EI and EP to be used interchangeably)  Giving voice to employees rather than the management so as to encourage employee commitment  By tapping on employee’s views to generate ideas and make decisions for the organisation’s success  To quote Cotton (1993)  4 dimensions of EI and EP 2. What dimensions can be used to distinguish between the different types of involvement and participation? (10 marks) Ans:  Marchington et al., 1932 (4 dimensions) 3. What is the evidence that employee involvement and participation contribute to positive outcomes for both the organisation and the individual employee? (10 marks) Ans:  Discuss the empirical evidence that links EI and EP to outcomes at the individual and organisational level.  Highlight the various forms of EP (employee/state initiated) and EI (management initiated).  Discuss the different forms of involvement (upward, downward) and participation (consultation, collective bargaining and co-determination).  Highlight the different objectives of introducing EI (Ramsay, 1992) and EP (Marchington, 1987).  Assess the empirical evidence in terms of the impact on the individual and organisation based on the objectives (eg; Marchington and Wilkinson 2000, Workplace Employee Relations Survey, European Foundation for the Improvement of Living and Working Conditions, VW’s case study example).  Positive relationship between EI and outcomes and organisational performance both in the US and the UK.  However, depends on techniques used, range of techniques, employees and general management approach.  Although there is a positive relationship, there are not many organisations adopting such practices.

Chapter 10: Organisational Justice 1. Explain what is meant by 'distributive justice'.  In your answer distinguish between the different ways of conceptualising justice and give examples. (10 marks) 2012 ZB 2. In what ways is organisational justice theory relevant to HR policies and practices?

Ans:  Explain OJ  How it impacts employee definition of job roles, perception of selection system and performance appraisal.  Mention Taylor and Tepper (2001) highlights how PJ and IJ affects the role definition. Explain... (- is a prerequisite of HR policies and practices.)

Chapter 11: Diversity and Equal Opportunities 1. What are the business arguments (as opposed to ethical arguments) for equal opportunities in the workplace? (10 marks) Ans: (advised to provide as many examples as possible to show application.) The ethical argument states that the organisation needs to provide everyone equal opportunities based on merit. However, the business arguments states that it makes business sense to provide equal opportunities. Labour market issues. Women forms a large proportion of the current workforce, and this proportion is set to grow. By discriminating against women, companies are reducing the talent pool of candidates in their search for suitable recruits in male dominated profession. Eg; engineering. This is especially so when labour markets are tight or in sectors of the economy where there is a labour shortage. Retention issues. Sound equal opportunities policies can play an important part in maximising return on the investment made in relation to recruitment, training and development costs. Eg; training and developing managerial staff. It makes sense to retain contact with female managers who leave the organisation to have children and provide them with occasional training to keep their skills up to date. In this way, the company will be in a position to rehire their female managers in the future, and they will not have lost the initial investment made in training their female managers in the first place. Company image. Being seen to be a good equal opportunities employer is extremely important in terms of a company’s image within the labour market. ie; whether it is seen as a good company wo work for. Equal opportunities can also be critical in terms of protecting the company’s brand image. Product development. The argument here is that male-dominated organisations are likely to produce male-oriented products and services. It is easier to tailor a product or service to meet the needs of women if women play a part in development of that service. Changing management styles. Research has highlighted differences between male and female management styles. In traditionally run, male-dominated organisations, female approaches are not effective. However, women are becoming increasingly sought after within more progressive organisations. Research suggests that women are better at working in teams, better at empathising with subordinates and nondirective participative styles.

2. “The position of women in organisations is unlikely to improve unless stronger equal opportunities legislation is enacted.’’ Discuss. (15 marks) Ans: Discuss the different approaches to equal opportunities taken by organisations on an entirely voluntary ‘best practice’ basis. Eg; liberal approach and approaches based upon an organisational business case argument. Stronger equal opportunities policies in an organisation help to address talent shortages, retention issues, concerns about company image, product development requirements, eg; in the case of companies producing products primarily for women. Government initiatives (including, but not restricted to, legislative changes) can improve the position of women. Eg; Minimum wage, signing of the Social Chapter of the Maastricht Treaty (conditional with BREXIT). However, the effectiveness or otherwise of these different approaches is dependent on situation, contingent upon the circumstances of the organisation, industry, national culture, etc. In certain sectors like the military and construction; and certain national cultures may be difficult. Legislation can set the tone; however, it is the organisation’s prerogative to determine their staffing requirements.

3. Critically evaluate the differences between ‘equal opportunities’ and ‘managing diversity’. How far is each approach likely to overcome the problems by women faced in organisations? Ans: ‘Equal opportunities’ – liberal & radical approach ‘Managing diversity’ – business case argument (not to mix up with Bloisi’s approach which is solely on diversity) Highlight that ‘equal opportunities’ are based on the principle of social justice and is an end in itself. ‘Managing diversity’ is related to the business case for equality which sees equal treatment as a means to an end. Explore the likely effectiveness of both liberal (based on merits) and radical approaches (special consideration). Both approaches have criticisms. The impact of both has its limitations. In explain ‘managing diversity’, highlight if companies support the business case argument. However, business case is contingent. It only applies to certain situations and labour market conditions. Highlight women’s preference for work-life balance (Catherine Hakim, 1996). Ultimately, it depends on women’s preferences and organisational circumstances.

4. What factors are likely to play a part in improving the position of women in organisations in the future? How far are these factors (approaches/solutions) likely to prove successful? Ans: (Not to address self-employment as this question targets women in organisations. Self-employment should be seen as a last resort.) Briefly state the position of women (pay, horizontal & vertical segregation and PT work) Highlight he four routes for equal opportunities: introduction of equal employment opportunities, business care, role of government and role of unions. The last resort is self-employment. Debate on these. Highlight the impact and criticism of liberal and radical approach of EO. The business case is highly contingent and gave only partial effect. Laws need to be strengthened in order to have a significant effect. Unions needs to cover all positions and can only be applicable to unionised organisations. Women have problems securing loans from financial institutions. In conclusion, various routes can play a role however, positive improvements are less likely. State also Hakim’s preference key.

5. Why do you think it makes sense to implement sound equal employment opportunities policies? Ans: (Makes sense to company’s perspective. Thus, looking at the business case area.)

6. Evaluate the relative merits of adopting a ‘liberal’ rather than a ‘radical’ approach to equal opportunities in the workplace. (10 marks) Ans:  Liberal approach is based on an assumption that all future opportunities should be made equal and based on merit. Radical approach to equal opportunities starts from the premise that men and women are essentially the same.  If there is imbalance, organisations should take direct action (or positive discrimination) by deliberately equalising the proportion of female to male managers at each level of the management hierarchy.  The organisation should also educate and train managers focusing to raise the consciousness of issues and situations that can give rise to gender discrimination.  Discuss how effective liberal approaches to equal opportunities policy likely to be in relation to the radical approach. eg; does not compromise organisational efficiency i.e. get the best person for the job.

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Highlight the limitations of the radical approach. Comment on whether radical approaches might prove to be effective in improving the position of women. In conclusion, both approaches have their strengths and limitations.

Chapter 12: Labour Economics 1. Critically evaluate the benefits of a strong internal labour market. Ans:  HR needs to put in place proper policies and practices to ensure the effective implementation of an internal labour mkt.  There needs to be an effective career development system eg; career development policy and training programmes to support the development of employees.  The HR manager need to ensure that employees are aware of the training and development opportunities to ensure max. motivation and commitment.  HR also needs to ensure that the performance appraisal system is effective to identify potential employees who are ready to be promoted.  The psychological contract can be strengthened to promote loyalty and commitment. 2. How could an HR manager make best use of an internal labour market for the advantage of his organisation? Ans:  Career progression plans: What needs to be in place for the system to work?

Chapter 13: HR Strategies and High-Performance Work Systems 1. What is strategic HRM? (common 5 marks) Ans:  The managerial process requiring HR policies and practices linked to the strategic objectives of the organisation.  Bringing in the historical context of the purpose of HRM in the 1990s - Focused more on HR and admin - Presently focused  Boxall and Purcell  In the past, HR focused on specific HR policy areas. Eg; recruitment, training, etc.. 

Since the late 1990s, HR strategies became important because there has been a significant number of empirical studies linking HR strategies and organisational performance (such as profitability and productivity). Eg; Huselid (1995)

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SHRM in essence is a managerial process requiring HR policies and practices to be linked with the strategic objectives of the organisation.

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“An organisation’s HRM policies and practices must fit with its strategy in its competitive environment and with the immediate business conditions that it faces..” (Beer et al, 984)

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Boxall and Purcell (2000) definition regarding strategic choices with the use of labour.

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For Snell et al. (1996), ‘strategic HRM’ is an outcome as organisational systems designed to achieve sustainable competitive advantage through people.’

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For others, however, SHRM is viewed as a process. ‘the process of linking HR practices to business strategy’ (Ulrich, 1997)

2. What are the main elements of an HR strategy? (10 marks) Ans:  Two components: i. An analysis phase (understanding the business strategy, and what can be done from an HR perspective to improve the chances of achieving the business strategy.) ii. Action phase (setting out the HR policy and programme choices) 

HR strategy is a set of interdependent HR policies and practices (‘the actions’) that display internal fit and generate ‘competence and motivation’ among its employees.

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Importance of internal coherence: - Are the individual practices consistent and interdependent with one another? - Do they generate synergy?

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‘Strategic’ HRM is concerned with the strategic choices associated with the use of labour firms and with explaining why some firms manage them more effectively than others. (Boxall and Purcell, 2000)

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A good way to think about the main elements of an HR strategy is that they should ensure that an organisation has the right number of employees, that employees have the appropriate levels of skills and knowledge and that employees exhibit the right behaviours and are appropriately motivated and rewarded. (Bratton and Gold, 2007)

3. Consider whether an HR strategy can be a source of competitive advantage for an organisation? (15 marks) Ans:  To the extent that HRM strategy solves HR problems, it can be a valuable and sustainable source of competitive advantage.  Core task of HR is to raise performance by ensuring employees are fully competent and highly motivated.

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Proponents of the resource-based view of the organisation argue that sustained competitive advantage is achieved by building distinctive skills and capabilities, not by analysing a firm’s external market position. These include the firm’s architecture, routines, distinctive capabilities, dynamic capabilities and knowledge. Counter arguments stress the importance of the firm’s market position as regards to customers, suppliers, competitors, etc. and point out that the RBV may confuse cause and effect. Distinctive HR capabilities are a consequence of working in a high performing organisation rather than a cause. Highlight the role behaviours to support the organisation’s business strategies....