Sample assessment tasks for Outcome 1 in Unit 4 and
B U S I N E S S M A N A G E M E N T Prepared by: Gillian Somers, Trinity Grammar School, Kew Sample assessment tasks for Outcome 1 in Unit 4 and suggested answers Supplement to Compak Issue 3, August 2007 Task 1A: Structured questions In completing this assessment task you should be able to demonstrate an understanding of the relevant key knowledge and skills in Outcome 1 in Business Management Unit 4, and the ability to plan, organise and undertake written communication. Related unit/area of study Unit 4: Managing People and Change Area of study: The Human Resource Management Function Outcome 1 Identify and evaluate practices and processes related to human resource management. Time allowed: 40 minutes Conditions: Closed book Marks allocated: 20 marks Instructions Answer all questions in the spaces provided. The marks for each question are indicated at the end of each question. Tuyundi Corporation Tuyundi Corporation specialises in the production of compact passenger vehicles to suit the needs of the increasing number of drivers who live in inner-city locations. To meet the increasing demand for its product, it was decided by the board of directors in 2005 that its operations needed to be expanded. As part of the corporation’s growth strategy, a new factory was designed and opened in 2007. The process was to be based on the assembly-line model. The workers at the existing factory were assessed to determine their expertise and level of competence. Those found to be most efficient in a specific area, such as engine fitting, were appointed full-time to that area of the new factory’s production line. The individual workers were encouraged to work faster, with incentive pay being paid to those who were more productive. While this resulted in a slight increase in production levels and productivity, the improvements were not as great as anticipated due to an increase in staff absenteeism and staff turnover. The original factory, which retained the remainder of the original workers, decided to adopt a different approach. While using an assembly-line process, the operations manager decided to break the line into designated work group areas/teams, allowing the workers to rotate their tasks within their work area. In © VCTA and indiv idual c ontributor BM307_4.pdf/page 1 B U S I N E S S M A N A G E M E N T addition, the team members on that part of the line were given responsibility for ensuring the quality of the product, allowing them to stop the line to remedy any defect that occurred during their part of the assembly process. The factory stopped production for 30 minutes per week to hold meetings where matters relating to the work teams were discussed and suggestions for improvements were made to management. Achievements were noted in a range of operations areas: increased productivity, increased production output and a decreased number of cars requiring reworking due to defects. It was also noted that the level of staff absenteeism and staff turnover had decreased. Workers in this factory received a base salary with productivity bonuses being calculated on improved team results. Short-answer questions Question 1 Identify the management theory on which the management approach of the two factories of Tuyundi is based. a new factory b original factory 1 + 1 = 2 marks Question 2 Outline how these two schools of management differ in their approach to management of staff and approach to motivation. 4 marks © VCTA and indiv idual c ontributor BM307_4.pdf/page 2 B U S I N E S S M A N A G E M E N T Question 3 Define the term ‘strategic human resource management’. 1 mark Question 4 Human resource management is a functional area within an organisation. Describe how the management of this area is related to an organisation being able to achieve its corporate objectives. 2 marks Question 5 Describe the role of a human resources manager when they act as a: a line manager (provide specific detail of what tasks the job would require them to perform) b staff manager 2 + 1 = 3 marks Question 6 Using Maslow’s Hierarchy of Needs, explain what organisations need to provide in order to motivate employees at different stages of their work careers. © VCTA and indiv idual c ontributor BM307_4.pdf/page 3 B U S I N E S S M A N A G E M E N T 5 marks Multiple-choice questions Circle the correct answer. Question 7 Which two theorists are recognised as being part of the Human Relations Approach to management? A Frederick Taylor and Douglas McGregor B Abraham Maslow and Douglas McGregor C Elton Mayo and Douglas McGregor D Frederick Herzberg and Elton Mayo 1 mark Question 8 Frederick Herzberg’s two-factor theory of work motivation states that: A higher order needs are motivators and usually intrinsic. B lower order needs are motivators and usually extrinsic. C higher order needs are hygiene and usually extrinsic. D lower order needs are hygiene and usually intrinsic. 1 mark Question 9 David McLelland’s three-needs theory relates to which of the following personality traits? A need for respect, achievement and affiliation B need for achievement, power and affiliation C need for esteem, self-actualisation and safety D need for belonging, fulfilment and safety 1 mark Total: 20 marks © VCTA and indiv idual c ontributor BM307_4.pdf/page 4 B U S I N E S S M A N A G E M E N T Task 1B: Structured questions In completing this assessment task you should be able to demonstrate an understanding of the relevant key knowledge and skills in Outcome 1 in Business Management Unit 4, and the ability to plan, organise and undertake written communication. Related unit/area of study Unit 4: Managing People and Change Area of study: The Human Resource Management Function Outcome 1 Identify and evaluate practices and processes related to human resource management. Time allowed: 40 minutes Conditions: Closed book Marks allocated: 20 marks Instructions Answer all questions in the spaces provided. The marks for each question are indicated at the end of each question. CATERING & EVENTS EXECUTIVE Become a valuable part of one of the most dedicated, passionate and professional teams. Our business is one of the most innovative, flexible and service-driven caterers in the industry. Over the past 25 years we have grown to become a large organisation credited as being a leader in the culinary industry and we are famous for organising the most memorable and extraordinary events. To maintain our competitive edge as an industry leader, we are now recruiting a Catering & Events Executive. Reporting to the Executive Manager of the Catering & Events Department, you will be first and foremost a caterer who is passionate and knowledgeable about food and current trends. In this role you will focus on: • building and developing strong relationships with clients • ensuring the highest possible level of customer service. This challenging role brings with it the opportunity to continually learn and grow in a constantly creative environment. To perform this role you need to possess: • a strong creative passion • sound logistical understanding • flexibility in your approach • immaculate personal presentation • an eye for detail • well-developed communication skills • ability to operate under pressure • good interpersonal skills. Forward your application letter and CV to: Samantha Baker General Manager—Human Resources Pieter Cookland Catering via email: bakers@cookland.com.au or via fax (03) 9837 0009 © VCTA and indiv idual c ontributor BM307_4.pdf/page 5 B U S I N E S S M A N A G E M E N T Questions Question 1 Prior to placing the advertisement for the position of Catering & Events Executive it was necessary for the HR department to conduct a job analysis and develop both a job description and job specification. a What is a job analysis? 1 mark b Outline the typical characteristics of both a job description and a job specification. 1 + 1 = 2 marks Question 2 This advertisement was placed in the Saturday Age newspaper. List two forms of recruitment (other than newspaper advertising) that would be most appropriate for use in attracting a pool of applicants for the position of Catering & Events Executive. 1 mark Question 3 Outline the selection process that should be undertaken by Pieter Cookland Catering’s Human Resources Manager to ensure they select the best applicant for the position of Catering & Events Executive. © VCTA and indiv idual c ontributor BM307_4.pdf/page 6 B U S I N E S S M A N A G E M E N T 5 marks Question 4 Identify where induction fits within the employment cycle and why it is important that this step in the cycle is undertaken. 1 + 1 = 2 marks Question 5 Explain two reasons why a performance appraisal system is necessary in a large-scale organisation. 2 marks Question 6 Describe two methods of performance appraisal that can be used by organisations. 2 marks © VCTA and indiv idual c ontributor BM307_4.pdf/page 7 B U S I N E S S M A N A G E M E N T Question 7 Pieter Cookland Catering needs to retain flexibility in the number of people it employs. To be able to arrange sufficient staff for its operational requirements, staff members are engaged under two main categories. Explain what it means to employ a staff member as: a a permanent full-time employee b a casual employee 1 + 1 = 2 marks Question 8 Explain the difference between voluntary and involuntary termination and provide an example of each type. 2 + 1 = 3 marks Total: 20 marks © VCTA and indiv idual c ontributor BM307_4.pdf/page 8 B U S I N E S S M A N A G E M E N T Task 1C: Structured questions In completing this assessment task you should be able to demonstrate an understanding of the relevant key knowledge and skills in Outcome 1 in Business Management Unit 4, and the ability to plan, organise and undertake written communication. Related unit/area of study Unit 4: Managing People and Change Area of study: The Human Resource Management Function Outcome 1 Identify and evaluate practices and processes related to human resource management. Time allowed: 40 minutes Conditions: Closed book Marks allocated: 20 marks Instructions Answer all questions in the spaces provided. The marks for each question are indicated at the end of each question. Questions Question 1 From the three alternatives listed below, choose two. Describe the terms and then explain the difference between them as they relate to the Australian industrial relations system. a trade unions and employer associations b centralised and decentralised systems of workplace relations © VCTA and indiv idual c ontributor BM307_4.pdf/page 9 B U S I N E S S M A N A G E M E N T c collective bargaining and an Australian Workplace Agreement 2 x 3 = 6 marks Question 2 Identify three skills that would be important for an HR workplace relations manager to possess. 3 marks Question 3 List the four main participants in the Australian workplace relations environment. 2 marks © VCTA and indiv idual c ontributor B M 3 0 7 _ 4 . p d f / p a g e 10 B U S I N E S S M A N A G E M E N T Question 4 Read the following newspaper article extracts and answer the question that follows. Workers’ rights lost with AWAs Secret figures reveal that 45% of Australian Workplace Agreements have stripped away all of the award conditions that the federal government promised would be ‘protected by law’ under WorkChoices … Conditions were stripped from the vast majority of agreements examined. These included shift loadings (removed in 76% of agreements), annual leave loading (59%), incentive payments and bonuses (70%) and declared public holidays (22.5%). However, a subsample of 3972 agreements lodged between June and September shows 78% contained wage rates more generous than the relevant minimum award pay rates, while 16% had wage rates equal to the award minimum … AWAs are individual employment agreements that override industrial awards. They are one of the most contentious elements of the workplace relations changes. Labor says employers use them to pressure workers into giving up basic entitlements. The government has insisted that the agreements provide flexibility to tailor employment arrangements to workplace needs, and that employees can secure significant pay rises under the deals … AWAs are not allowed to undercut the five minimum conditions: the minimum award wage, annual leave, personal leave, compassionate leave and parental leave. But they are allowed to remove or change the 11 protected conditions if there is ‘express’ agreement between the employer and the employee. Extracts from an article by Mark Davis, The Age, 17 April 2007 Explain why it is generally perceived that an employee working under a collective enterprise agreement is generally in a much stronger bargaining position for better wages and conditions than an employee working under an Australian Workplace Agreement. 3 marks © VCTA and indiv idual c ontributor B M 3 0 7 _ 4 . p d f / p a g e 11 B U S I N E S S M A N A G E M E N T Question 5 List six forms of workplace conflict. 3 marks Question 6 Describe three workplace relations audit indicators (KPIs) that would demonstrate that an organisation has a positive (harmonious) workplace relations environment. 3 marks Total: 20 marks © VCTA and indiv idual c ontributor B M 3 0 7 _ 4 . p d f / p a g e 12 B U S I N E S S M A N A G E M E N T Suggested answers Task 1A Question 1 a Scientific Management School b Human Relations Approach 1 + 1 = 2 marks Question 2 Scientific Management School—where the main focus is on scientifically determining the best methods for task performance. Management does not actively involve itself with the workers and believes that an increase in output will be achieved through breaking tasks down and linking incentive payments to increased production. Money is considered to be the motivating factor. Human Relations Approach—where consideration is given to meeting the needs of the workers in an attempt to improve productivity. With increased involvement and empowerment of workers in the production process their motivation increases, resulting in increased job satisfaction and productivity. 4 marks Question 3 Strategic human resource management involves the planning (long-, medium- and short-term) undertaken to meet staffing needs. It has a direct link with organisational objectives and productivity and acts to evaluate how well the HRM function has performed. 1 mark Question 4 Human resource management is directly related to an organisation achieving its corporate objectives as it relates to the ongoing management of a vital resource and asset—people. Creating and managing the effective relationship between management and its employees is very important if an organisation is to gain a competitive advantage in its business environment. An organisation’s HRM policies and practices must be firmly linked to its strategic orientation, goals, planning and decision-making. HRM ensures that the right people are recruited, inducted, trained, compensated, motivated and appraised. Some areas of focus will be to decrease the rate of staff turnover and increase the diversity of the workforce. 2 marks Question 5 a An HR manager is a line manager when they manage their own department. Their role covers planning, organising, leading and controlling their own functional department. They are responsible for departmental objectives and deciding on and allocating tasks to be performed by their subordinates. b An HR manager acts as a staff manager when they offer advice and assistance to other functional managers relating to their area of expertise, for example the employment cycle and general issues relating to personnel. 2 + 1 = 3 marks © VCTA and indiv idual c ontributor B M 3 0 7 _ 4 . p d f / p a g e 13 B U S I N E S S M A N A G E M E N T Question 6 Level of need 1 Physiological 2 Safety 3 Social 4 Esteem 5 Self-actualisation Motivating factors A job with fair remuneration Job security, benefits, a safe and healthy workplace, competent, consistent and fair management. Friendly work associates, organised employee social activities, for example sporting events, staff association activities Job title and task responsibilities, good performance rating, merit rewards, promotion, prestigious workplace facilities Challenging work allowing for creativity, participative decision-making, opportunity for personal growth and advancement. 5 marks Question 7 C 1 mark Question 8 A 1 mark Question 9 B 1 mark Total: 20 marks © VCTA and indiv idual c ontributor B M 3 0 7 _ 4 . p d f / p a g e 14 B U S I N E S S M A N A G E M E N T Task 1B Question 1 a A job analysis is the systematic process of gathering information relating to a job being performed and determining the skills and experience people need to have in order to perform the job. 1 mark b A job description is a written statement of tasks, activities and responsibilities of a job. It describes the job title, job summary, responsibilities, duties and activities, where it fits into the organisation, accountability, key performance indicators, and any special circumstances. A job specification focuses on what the job holder needs in terms of experience, qualifications, skills, abilities, knowledge, personal qualities, and any special requirements such as a driver’s licence or the ability to speak a foreign language. It also states the remuneration. 1 + 1 = 2 marks Question 2 Choose any two from the list: • recruitment consultants • internal—noticeboard, direct approach • Internet recruiting companies • government employment agencies • outplacement firms. 1 mark Question 3 Pieter Cookland Catering’s human resource manager should adopt the following selection process. (Students need not include this amount of detail in their answers, as the question asks for an outline.) 1 Initial screening of applicants. By sorting through the résumés of applicants and, if necessary, getting the applicants to complete an application form will assist them in generating a short-list for interviewing. 2 Interview—the most widely used selection technique. Interviews would be conducted with those applicants who had been short-listed from the pool of applicants. A semi-structured interview is recommended, making use of predetermined criteria, while also allowing the applicant sufficient flexibility to respond in their own manner. All questions asked must be job related, taking note of relevant EEO legislation. When conducting the interview, it is important to follow good interview techniques: know the job; know the personal attributes, experience, skills and qualifications required; set specific objectives; provide a proper setting for the interview, review the applicant’s completed form or résumé; beware of your prejudices; don’t make snap decisions; put the applicant at ease; watch body language; encourage the applicant to do most of the talking; keep control of the interview; explain the job; close the interview; write up interview comments. 3 Tests. Tests in basic competencies (for example current food knowledge, communication, numeracy, language), aptitude, intelligence and personality can be conducted to further assist in reducing the list of applicants. These tests would be developed with the key skills required for the position included. 4 Background investigations. It is very important to conduct a due diligence check on prospective applicants. Initial checks should include scrutinising work histories, going back at least 10 years, making sure employment dates add up. Contact should be made with the referees cited, and a qualifications check with institutions made (if these are needed for the job). If the applicant is from another country, a passport, visa and work permit check may need to be done. 5 Selection decision. It is important to choose the applicant who has the best match of person and job competencies to ensure employee satisfaction and organisational effectiveness. 5 marks © VCTA and indiv idual c ontributor B M 3 0 7 _ 4 . p d f / p a g e 15 B U S I N E S S M A N A G E M E N T Question 4 Induction is the first step in the maintenance phase of the employment cycle. It involves all activities undertaken by the organisation to introduce a new employee to that organisation. It is important as it forms the commencement of the socialisation/affiliation process, helping the employee gain a sense of belonging while also being a good PR exercise. It provides an opportunity for communicating organisational values, beliefs and expectations as well as specifics about the job and performance expectations. If induction is done well it reduces staff turnover and means the new employee becomes effective more quickly. 1 + 1 = 2 marks Question 5 A performance appraisal system is necessary because (choose from the list of reasons): • it tells the organisation if its selection methods have been effective • it gauges whether current training and development programs have been effective • it highlights areas where training and development programs are required • it provides a basis for decisions relating to remuneration, promotion and dismissal • it is a means of evaluating individual employees’ performance and for providing feedback. 2 marks Question 6 Methods of performance appraisal—choose two: • comparative standards—simple ranking, alternate ranking, paired comparison or forced distribution models • absolute standards, for example essay or narrative, critical incidents • management by objectives—predetermined objectives compared with outcomes. 2 marks Question 7 a A permanent full-time employee is one who has entered into an ongoing employment contract. The employee is entitled to receive a salary or wages, leave entitlements and superannuation while also accruing long-service leave entitlements. b A casual employee is often employed for a short period of time or for irregular periods. They are usually paid on a daily or hourly basis and do not attract any of the employment benefits attached to permanent full-time or part-time positions. 1 + 1 = 2 marks Question 8 Voluntary termination occurs when the employee decides for various reasons to end the employment relationship. Involuntary termination, on the other hand, occurs when the organisation ends the employment relationship they have with the employee due to a range of circumstances. Examples of voluntary termination: • resignation—the employee leaves the workplace/organisation, usually to go to another job • retirement—termination where an employee decides to leave the paid workforce. Examples of involuntary termination: • dismissal—termination due to incompetence or a disciplinary matter • redundancy/retrenchment—a type of involuntary termination that occurs when an organisation no longer has sufficient work for the worker to perform. 2 + 1 = 3 marks Total: 20 marks © VCTA and indiv idual c ontributor B M 3 0 7 _ 4 . p d f / p a g e 16 B U S I N E S S M A N A G E M E N T Task 1C Question 1 a In the Australian industrial relations system, trade unions are organisations formed to represent and protect the rights of workers/employees in a particular industry. They will act to represent and negotiate on behalf of workers during enterprise bargaining or an industrial dispute. A union is represented in the workplace by a worker nominated as a union representative, supported by the actual trade union that operates externally to the organisation. An employer is provided advice and support by a range of employer associations. These organisations can take the form of industry associations such as the Master Builders Association, professional associations such as Australian Medical Association, or broad-based peak bodies such as the Victorian Employers Chamber of Commerce and Industry (VECCI). b A centralised system of workplace relations is concerned with determining the appropriate standardised terms and conditions of employment for employees based on an industry group. These were ratified by the Australian Industrial Relations Commission and referred to as an ‘Industry Award’. This meant that the award had blanket coverage across all Australian workplaces of the type stipulated in the award. This system was seen as inflexible and paid very little attention to efficiency and productivity. The decentralised system, while still relating to determining working conditions and remuneration, bases the negotiations and agreements on a particular organisation. The negotiated conditions of employment are linked to employee productivity and efficiency. The decentralised system allows for greater flexibility to meet the needs of both the employers and employer at a particular enterprise/organisation. The outcome of the decentralised system is arrived at through negotiation, not imposition as was the previous centralised system. c Collective bargaining relates to the direct negotiating that occurs at the workplace between the employer and employees (unions) relating to working conditions and remuneration. The conditions negotiated will apply to the collective group of employees and will result in a collective agreement that applies to all employees in that particular workplace. An Australian Workplace Agreement (AWA), while relating to working conditions and remuneration, is an agreement reached that relates to an individual employee. The employer and employee will conduct negotiations and reach an agreement. While a union can represent an employee during a collective bargaining process, it does not play a role in the negotiation of an AWA. 6 marks Question 2 Any three skills from the following list including a key characteristic: • technical (HR) • communication • negotiation • decision-making/problem-solving • time management • teamwork. 3 marks Question 3 • employees • employers • trade unions/employer associations • government—federal and bodies established through WorkChoices legislation. 2 marks © VCTA and indiv idual c ontributor B M 3 0 7 _ 4 . p d f / p a g e 17 B U S I N E S S M A N A G E M E N T Question 4 Arguments/reasons to support general perception: • strength of numbers—protects the more vulnerable individual • ability to have union involvement either as an adviser or party to the agreement • union representatives are more experienced as negotiators and are able to be more objective and dispassionate • union representatives have greater knowledge of what is happening industry-wide. 3 marks Question 5 Six forms of workplace conflict: • employee’s passive resistance, for example absenteeism, lack of cooperation • boycotts—refusal to do something • work to rule—refuse to do any more than the bare minimum required and follow every rule to the letter • picket lines—workers physically demonstrate outside a workplace, often preventing other workers or supplies entering • stop-work meetings—workers stop work during working hours to conduct a meeting • strike—workers withdraw their labour. 3 marks Question 6 Positive workplace relations audit indicators (choose three relevant KPIs): • collective enterprise bargaining agreement successfully negotiated • adoption of an open management style, such as consultative/participative management, which encourages teamwork and employee job satisfaction • low levels of absenteeism and a low rate of staff turnover • number of hours/days lost due to industrial action. 3 marks Total: 20 marks © VCTA and indiv idual c ontributor B M 3 0 7 _ 4 . p d f / p a g e 18
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