Define the term 'hard HRM'.
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Exam code: 9609
Define the term 'hard HRM'.
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Define the term 'zero hours contract'.
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Define the term 'Management by Objectives'.
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Define the term 'labour productivity'.
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Define the term 'flexi-time'.
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Eastvale (EV)
Eastvale (EV) operates a warehouse in country S, packing and dispatching online orders. It employs 480 staff, of whom 310 are on temporary contracts.
Staff are set an individual target of 140 items packed per hour. A screen above each packing station shows how each worker is performing against that target.
Table 1.1: EV selected data
Employees | 480 |
Staff on temporary contracts | 310 |
Target items packed per hour | 140 |
Average items packed per hour | 112 |
Orders returned because of packing errors (%) | 6 |
Staff leaving within their first three months (%) | 41 |
Temporary staff receive one morning of training before starting work.
Explain one cause of poor employee performance at EV.
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Larkspur (LS)
Larkspur (LS) operates 46 travel agency branches in country W, employing 390 consultants who sell holidays to walk-in customers.
Consultants are paid a fixed salary. Their performance is reviewed once a year in a meeting with a branch manager, and no targets are set between reviews.
Table 1.1: LS selected data
Branches | 46 |
Consultants | 390 |
Average sales per consultant per week ($) | 4,100 |
Sales per consultant in the best-performing branch ($) | 7,300 |
Consultants saying their annual review was useful (%) | 19 |
LS's HR director has proposed introducing quarterly objectives agreed between each consultant and their manager.
Explain one way LS's proposal could improve employee performance.
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Explain one way information technology is used in human resource management.
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Explain one benefit to a business of using artificial intelligence in human resource management.
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Fernbank (FB)
Fernbank (FB) provides IT support to small businesses in country C. It employs 85 technicians who visit customers or resolve problems by telephone.
FB currently judges technician performance by the number of jobs each one closes per week.
Table 1.1: FB selected data
Technicians | 85 |
Average jobs closed per technician per week | 24 |
Jobs where the customer contacted FB again about the same problem within a week (%) | 19 |
Customer satisfaction score (out of 10) | 6.1 |
FB's operations manager thinks the current measure may be encouraging technicians to close jobs before problems are properly fixed.
Explain one other way FB could measure the performance of its technicians.
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Read the following extract before answering.
Analyse two benefits to UBH of its approach to human resource management (HRM).
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Redwood (RW)
Redwood (RW) is an accountancy practice in country H employing 240 accountants across five offices.
Accountants are currently told at the start of each year that they should "work hard and look after clients". Their pay rise is decided by a partner at the end of the year, and staff say they do not know what the rise is based on.
Table 1.1: RW selected data
Accountants | 240 |
Offices | 5 |
Accountants saying they understand how their performance is judged (%) | 24 |
Annual staff turnover (%) | 27 |
Fee income per accountant ($000) | 96 |
Fee income per accountant in the highest-performing office ($000) | 131 |
RW's senior partner has proposed introducing Management by Objectives, with each accountant agreeing three measurable objectives with a manager every six months.
Analyse two benefits to RW of introducing Management by Objectives.
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Ashford (AF)
Ashford (AF) assembles electronic control units for washing machines and ovens in country D. It employs 520 people and supplies four large appliance manufacturers.
AF's largest customer has warned that it will review the contract unless quality improves.
Table 1.1: AF selected data
Employees | 520 |
Units assembled per day | 9,400 |
Units failing final inspection (%) | 8 |
Units returned by customers after delivery (%) | 2.1 |
Cost of rework and replacement last year ($000) | 780 |
Share of revenue from the largest customer (%) | 39 |
AF's production manager says the failures are concentrated among a group of assemblers who have not met the required standard for several months.
Analyse two consequences for AF of poor employee performance.
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Bellfield (BF)
Bellfield (BF) owns 62 clothing shops in country S and employs 1,100 sales assistants.
Sales assistants are paid the minimum wage. There is no training after an initial half-day induction, and no route to promotion except waiting for a supervisor to leave.
Table 1.1: BF selected data
Shops | 62 |
Sales assistants | 1,100 |
Annual labour turnover (%) | 68 |
Average length of service (months) | 7 |
Sales conversion rate, best shop (%) | 31 |
Sales conversion rate, worst shop (%) | 12 |
BF's new HR director has $900,000 a year to spend on improving performance.
Analyse two ways BF could improve the performance of its sales assistants.
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Amberley (AM)
Amberley (AM) is a retail bank in country K employing 6,800 people across 240 branches and two head offices.
AM receives around 19,000 applications a year for its graduate training scheme, from which it recruits 120 trainees. Applications are currently read by a team of eight HR staff.
AM is considering using an AI system to screen applications and rank candidates before any are read by a person.
Table 1.1: AM selected data
Graduate applications per year | 19,000 |
Trainees recruited per year | 120 |
HR staff currently screening applications | 8 |
Average time from application to first interview (weeks) | 11 |
Cost of the AI screening system ($000 per year) | 210 |
Applications the AI system would pass to a person (%) | 15 |
Analyse two effects on AM of using an AI system to screen job applications.
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Vinehall (VH)
Vinehall (VH) provides catering for weddings, conferences and corporate events in country R. Demand is highly seasonal, with around 60% of its work falling between May and September.
VH employs 90 permanent staff and takes on up to 400 casual workers during the busy season. Casual staff are recruited afresh each year, given a two-hour briefing, and paid by the shift.
Table 1.1: VH selected data
Permanent staff | 90 |
Casual staff at peak | 400 |
Share of annual revenue earned May to September (%) | 60 |
Casual staff returning from the previous season (%) | 18 |
Events receiving a complaint about service (%) | 14 |
Cost of proposed training and guaranteed return contracts ($000 per year) | 620 |
VH's operations director argues that better-trained returning staff would reduce complaints. VH's finance director argues that casual labour must stay cheap and flexible because demand collapses in winter.
Evaluate whether VH should adopt a softer approach to human resource management.
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Kingsmere (KM)
Kingsmere (KM) is an estate agency with 31 branches in country B, employing 280 negotiators who value homes and sell them.
Negotiators are currently judged only on the number of properties they sell each month, and a monthly bonus is paid to the top ten performers.
Table 1.1: KM selected data
Branches | 31 |
Negotiators | 280 |
Average properties sold per negotiator per month | 3.4 |
Properties valued above the eventual selling price (%) | 44 |
Sales that fell through before completion (%) | 27 |
Customer satisfaction score (out of 10) | 6.4 |
KM's HR director proposes judging negotiators on a combination of sales completed, valuation accuracy and customer satisfaction.
Evaluate whether KM should change how it measures the performance of its negotiators.
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Thornbury (TB)
Thornbury (TB) supplies gas and electricity to homes in country W. It employs 4,000 people across a head office, three regional centres and a field engineering team.
TB's HR department keeps personnel records on paper at each location. Holiday requests, training records and absence data are held separately and are not shared between sites.
Table 1.1: TB selected data
Employees | 4,000 |
HR staff | 34 |
Average time to answer an employee query about pay or holiday (working days) | 6 |
Employees whose training records could not be located last year | 310 |
Cost of a proposed integrated HR system ($000) | 1,400 |
Estimated annual saving in HR staff time ($000) | 290 |
TB's finance director notes that the system would take almost five years to repay its cost.
Evaluate whether TB should invest in an integrated HR system.
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