Paper 1.
Managing People
AIM
To develop knowledge and understanding
of the techniques, processes and
procedures which are required to ensure
the efficient and effective use and
deployment of human resources, and to
use the human resource to the fullest
possible benefit of the organisation.
OBJECTIVES
On completion of this paper candidates
should be able to:
• identify, understand and explain the
complex interpersonal relationships that
exist within organisations
• appreciate the relationship between
theory and practice
• understand the nature, processes and
procedures of people management
• explain the principles of successful team
performance and the need to plan,
monitor and evaluate team based work
activities
• investigate future personnel
requirements and describe recruitment
and selection procedures
• understand and describe the principles
of motivation
• understand and describe the role and
process of employee development
• understand the need for clear and
precise communication
• explain the principles of effective
counselling
• describe the elements of disciplinary
and grievance procedures.
3.5 Strategic Business Planning and Development
1.3 Managing People
POSITION OF THE PAPER IN THE
OVERALL SYLLABUS
The paper is concerned with an understanding
of people management and the techniques
involved. The paper is constructed in such
a way that it provides a broad introduction
to the problems and opportunities involved
in managing people. It is intended to cultivate
an understanding of the importance of good
practice in human resource management.
The professional accountant is often in a
management position and thus fulfils
another role, that of the management of the
human resource. It is important therefore
that the professional accountant understands
issues of management and human resources.
Whilst there are no pre-requisites for this
paper, candidates will be expected to
demonstrate an understanding of the theory
and issues involved in human resource
management and to display appropriate
writing skills in answering the examination
paper.
Managing People is a pre-requisite for
paper 3.5 Strategic Business Planning and
Development, where many of the ideas
introduced are developed further.
It should also be noted that although the
course is divided into five topic areas, the
nature of the syllabus means that there will
often be overlap between the individual
topics.
SYLLABUS CONTENT
1 Management and team development
(a) The organisation of work
(i) the need for formal organisations
(ii) organisational types and
differences.
(b) The role of management
(i) modern management writers
(ii) classical theories of management.
(c) The role of the manager
(i) the role of the manager in the
organisation of work
(ii) the responsibilities of the manager.
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 Paper 1.3: Managing People (Continued)
(d) Individual and group behaviour
(i) organisational culture
(ii) groups and teams
(iii) perception and role theory.
(e) Team management
(i) the need for teams
(ii) team construction
(iii) team and group differences.
(f) Objective setting
(i) the need for objectives
(ii) profit and other objectives.
(g) Authority, responsibility and delegation
(i) organisational structure
(ii) classical and modern approaches
to structure
(iii) authority, responsibility and
delegation.
(h) Standard setting and performance
management
(i) work standards and indicators
(ii) performance related pay.
2 Recruitment and selection
(a) The recruitment and selection process
(i) process, roles and responsibilities
(ii) assessment criteria.
(b) Effective recruitment
(i) recruitment and selection plan
(ii) process of recruitment
(iii) use of media.
(c) The job description and personnel
specification
(i) job description
(ii) personnel specification.
(d) Job analysis
(i) purpose of analysis
(ii) methods of analysis.
PAGE 4
Managing People (Continued)
(e) Selection methods
(i) appropriate methods
(ii) usefulness of methods.
(f) The selection interview
(i) purpose
(ii) skills involved
(iii) importance of the selection process.
(g) Equal opportunities and the
management of diversity
(i) equal opportunity issues
(ii) managing diversity.
3 Training and development
(a) The learning process
(i) the learning process
(ii) the role of management.
(b) Retention, training and development
(i) duties of the training manager
(ii) methods for individual
development.
(c) Effective training and development
(i) benefits of training
(ii) training needs analysis
(iii) staff evaluation methods
(iv) management development
(v) in-house and external training.
(d) Competence assessment
(i) process and barriers
(ii) staff appraisal
(iii) measures of effectiveness.
(e) Conducting the appraisal interview
(i) management skills involved
(ii) key communication skills.
(f) Individual skills and development
(i) appraisal process and employee
development.
(ii) the role of management
(iii) the skills development programme
(iv) the mentoring process.
(h) The management of health and safety
(i) health and safety awareness
(ii) the obligation of management.
4 Motivation and leadership
(a) Motivation, concepts, models and
practices
(i) the key theories of motivation
(ii) classical theories
(iii) modern theories
(iv) reward schemes.
(b) Effective leadership
(i) the nature and importance of
leadership
(ii) classical theories
(iii) modern theories.
5 Effective communication practices
(a) Working with people – interpersonal
skills
(i) interpersonal skills
(ii) effective management practice
(iii) verbal and non verbal
communication.
(b) Communication
(i) the need for communication
(ii) communication patterns.
(c) The role of counselling
(i) the role of management
(ii) skills of effective counselling.
(d) Controlling conflict, grievance and
discipline
(i) causes of conflict
(ii) managing conflict
(iii) appropriate procedures
Managing People (Continued)
(iv) process understanding
(v) the role of management
(vi) appeals.
EXCLUDED TOPICS
The syllabus content outlines the area for
assessment. No areas of knowledge are
specifically excluded from the syllabus.
KEY AREAS OF THE SYLLABUS
The key topic areas are as follows:
• an understanding of the theory,
techniques, processes, procedures and
practice of people management and
team development
• differentiation of rules, procedures and
processes of people management
• training and development, the trained
workforce, employee assessment
• the theories of motivation and
leadership and their application
• effective communication practices.
APPROACH TO THE EXAMINING THE
SYLLABUS
The examination is a three hour paper
constructed in two sections. Section A
consists of a brief scenario with a range of
5 to 10 mark requirements related to it,
worth 40 marks in total. The scenario is
generally devised to test the application
and understanding of a particular topic,
although candidates should be aware that
more than one topic may form part of the
scenario.
Section B consists of five essay type
questions, with one question usually taken
from each of the five topics in the syllabus.
Each question carries 15 marks and
candidates must attempt four questions.
There are no calculations involved, and
candidates should note that the answers in
Section B must be presented in essay form.
Candidates need to show an understanding
of the detail of the topic. Candidates
should be aware that although the course
is made up of a number of discrete topics,
individual examination questions may well
require a knowledge of more than one of
these topics.
Number
of Marks
Section A: Compulsory scenario
question 40
Section B: Choice of 4 from 5
essay questions (15 marks each) 60
100
ADDITIONAL INFORMATION
The Study Guide provides more detailed
guidance on the syllabus.
RELEVANT TEXTS
There are a number of sources from which
you can obtain a series of materials written
for the ACCA examinations. These are
listed below:
Foulks Lynch – ACCA's official publisher
Contact number: +44 (0)20 8831 9990.
Website: www.foulkslynch.com
Accountancy Tuition Centre (ATC)
International
Contact number: +44 (0)141 880 6469.
Website: www.ptc-global.com
BPP
Contact number: +44 (0)20 8740 2211.
Website: www.bpp.com
The Financial Training Company
Contact number: +44 (0)174 785 4302.
Website: www.financial-training.com
Candidates may also find the following
texts useful:
Beardwell I and Holden L
Human Resource Management – A
Contemporary Perspective (2nd Edition)
Pitman ISBN 0273622307
Bratton J and Gold J Human Resource
Management (3rd Edition) Palgrave
Macmillan ISBN 0333 993268
Graham H T and Bennett R Human
Resource Management (9th Edition)
Financial Times Pitman Publishing
ISBN 0273634011
Handy C Understanding Organisations (5th
Edition) Penguin
Mullins L J Management and
Organisational Behaviour (6th Edition)
Pitman
ISBN 0273 651471
PAGE 5

Wider reading is also desirable, especially
regular study of relevant articles in ACCA's
student accountant.
STUDY SESSIONS
MANAGEMENT AND TEAM
DEVELOPMENT
1 The organisation of work
(a) Explain the need for formal
organisations
(b) Identify organisational types and
differences.
2 The role of management
(a) Identify and explain the contribution
made by modern writers on
management: Drucker, Kanter,
Mintzberg, Ouchi, Peters
(b) Identify and explain the contribution
made by classical writers on
management: Fayol, Stewart, Taylor,
Mayo, Weber
(c) Identify the differences between
classical and modern theories of
management
(d) Identify the difference between
individual and group contribution to
work performance: Schein
(e) Outline areas of management
authority and responsibility
(f) List the systems of performance
reward for individual and group
contribution.
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Managing People (Continued)
3 The role of the manager
(a) Explain the role of the manager in
the organisation of work
(b) List the management tasks involved
in organising the work of others
(c) Illustrate the role of the manager in
achieving tasks
(d) Identify the responsibilities of the
supervisor.
4 Individual and group behaviour
(a) Explain the concept of organisational
culture: Anthony, Handy
(b) Discuss the differences between
individual and group behaviour
(c) Cutline the contribution of
individuals and teams to
organisational success
(d) Identify individual and team
approaches to work
(e) Understand perception and role
theory.
5 Team management
(a) Explain the role of the manager in
building the team and developing
individuals
(b) Define the purpose of a team
(c) Outline the composition of
successful teams: Belbin, Peters and
Waterman
(d) Explain the development of a team:
Tuckman
(e) List team building tools
(f) Examine ways of rewarding a team
(g) Identify methods to evaluate team
performance.
6 Objective setting
(a) Explain the importance of objective
setting
(b) Compare and contrast profit and
other objectives: Drucker, Cyert and
March, Marginalist Theories, Simon
(c) Explain the behaviourial theories of
objective setting
(d) Explain the importance of
understanding ethics and social
responsibility
(e) Compare and contrast the difference
between corporate objectives and
personal objectives
(f) Illustrate the difference between
quantitative and qualitative target
setting
(g) Outline the management role in
identifying performance standards
and accountability
(h) Identify methods to measure
achievement of objectives.
7 Authority, responsibility and delegation
(a) Describe, recognise and understand
the importance of organisational
structure
(b) Compare classical and modern
approaches to organisational
structure: Burns and Stalker,
Contingency Theory, Fayol,
Mintzberg, Trist and Bamforth,
Urwick, Weber, Woodward
(c) Define the terms authority,
responsibility and delegation
(d) Explain the term legitimized power:
Weber
Managing People (Continued)
(e) Describe the process of determining
authority and responsibility
(f) Examine the case of responsibility
without authority.
8 Standard setting and performance
management
(a) Define the term performance
management
(b) Identify a process for establishing
work standards and performance
management
(c) Outline a method to establish
performance indicators
(d) Illustrate ways of applying
performance management
(e) Describe management contribution
to personal development planning
(f) Explain the term performance related
pay.
RECRUITMENT AND SELECTION
9 The recruitment and selection process
(a) Explain the importance of effective
recruitment and selection to the
organisation
(b) Define the recruitment and selection
process
(c) Outline the roles and responsibilities
of those involved in the recruitment
and selection process
(d) List the most common reasons for
ineffective recruitment and selection
(e) List and describe criteria against which
to assess successful recruitment and
selection practices.
10 Effective recruitment
(a) Outline a plan for an effective
recruitment process
(b) Identify the stages in the recruitment
process
(c) Compare and contrast the
choice of media for job advertising
(d) Analyse the purpose and
effectiveness of the job application
form
(e) Explain the purpose and usefulness
of applicant references.
11 The job description and personnel
specification
(a) Outline the purpose and use of a job
description and person specification
(b) Explain how to devise a job
description and personnel
specification: Rodgers, Fraser
(c) Compare and contrast the purpose of
the job description and the person
specification.
12 Job analysis
(a) Define the purpose of job analysis
(b) Identify methods of job analysis
(c) Outline the skills involved in carrying
out job analysis
(d) Justify the use of job analysis.
13 Selection methods
(a) List alternative methods of selection
(b Evaluate the usefulness of selection
methods
(c) Identify those involved in the process
of selection
(d) Establish the skills involved in
successful decision making
(e) Explain the importance to the
organisation of good selection
decisions.
14 The selection interview
(a) Outline the purpose of the selection
interview
(b) Identify who should be involved in
selection interviewing
(c) Identify the key skills required for
selection interviewing
(d) List the most common reasons for
ineffective interviewing
(e) Explain the importance of the
selection interview in the selection
process.
15 Equal opportunities and the
management of diversity
(a) Understanding equal opportunities
(b) Measuring equal value
(c) Appreciate the legal position
(d) Explain the appropriateness of
managing diversity in the workplace
(e) Identify individual circumstances
and differences.
TRAINING AND DEVELOPMENT
16 The learning process
(a) Explain the process of learning in
the workplace
(b) Describe the ways in which
individuals learn: Honey and
Mumford, Kolb
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(c) Explain the effect on learning of
individual differences
(d) Outline the barriers to learning
(e) Describe the role of management
and the organisation in the learning
process.
17 Retention, Training and development
(a) Explain the importance of training and
development to the organisation and
the individual
(b) Explain the roles and responsibilities
of a training manager
(c) Compare and contrast the various
methods used in developing
individuals in the workplace.
18 Effective training and development
(a) List the benefits to the organisation
and the individual of effective
training and development
(b) Explain the methods used to analyse
training needs
(c) Suggest ways in which training
needs can be met
(d) Describe methods of staff evaluation
and follow-up
(e) Describe the skills involved in
developing staff
(f) Explain the development methods
available to management
(g) Evaluate the effectiveness of
in-house and external training
courses.
PAGE 8
Managing People (Continued)
19 Competence assessment
(a) Explain the process of competence
assessment
(b) Outline the purposes and benefits of
staff appraisal in the process
(c) Describe the barriers to effective
staff appraisal
(d) Suggest ways to measure the
effectiveness of staff appraisal and
the process of assessment.
20 Conducting the appraisal process
(a) Identify the benefits of the appraisal
process
(b) Identify the management skills
involved in the appraisal process
(c) Describe the process of preparation
of an appraisal interview, including
location of interview and pre
interview correspondence
(d) Identify the key communication skills
required to conduct an effective
appraisal interview
(e) Explain the importance of feedback
from the appraisal interview.
21 Individual skills and development
(a) Explain the link between the
appraisal process and effective
employee development
(b) Describe the role of the appraisee in
the process
(c) Suggest ways in which
self-development can be part of the
process.
(d) Describe the role of the manager in
work based skills development
(e) Identify the methods used to develop
skills
(f) Outline how to plan a skills
development programme
(g) Explain the role of mentoring in the
process of skills development.
22 The management of health and safety
(a) Identify preventative and protective
measures
(b) Describe safety awareness and training
(c) Outline working conditions and
hazards
(d) Explain the legal context and the
obligation of management.
MOTIVATION AND LEADERSHIP
23 Motivation, concepts, models and
practices
(a) Outline the key theories of
motivation
(b) Outline classical and modern
theories of motivation: Argyris,
Equity Theory, Handy, Herzberg,
Maslow, McClelland, McGregor,
Vroom
(c) Outline the difference between
content and process theories of
motivation
(d) Describe ways in which
management can motivate staff
(e) Explain the importance of the reward
system in the process of motivation
(f) Explain the importance of
constructive feedback in motivation.
Managing People (Continued)
24 Effective leadership
(a) Define the term ‘leadership’
(b) Describe the nature and importance
of leadership
(c) Outline classical and modern
theories of leadership: Blake and
Mouton, Contingency Theory, Fiedler,
Handy, Hersey and Blanchard,
Likert, Tannenbaum, Trait Theory,
White and Lippit
(d) Compare and contrast the terms
‘leadership’ and ‘management’
(e) Identify the skills of a leader.
EFFECTIVE COMMUNICATION
PRACTICES
25 Working with people – interpersonal
skills
(a) Define the term ‘interpersonal skills’
(b) Explain the importance of developing
effective working relationships
(c) Distinguish between verbal and
non-verbal forms of communication
(d) Compare and contrast the difference
between aggressive and assertive
behaviour
(e) Illustrate the link between
interpersonal skills and effective
management practice.
26 Communication
(a) Explain the importance of formal
and informal communication in the
workplace
(b) Explain communication models
(c) List and describe barriers to
communication
PAGE 9
(d) Outline the importance to the (f) Suggest ways in which the outcome
manager of effective communication of the disciplinary process should be
(e) Describe the effects of poor communicated to the individual
communication concerned
(f) List and describe the attributes of (g) Outline the features of an appeals
effective communication procedure.
(g) List the main methods and patterns
of communication
(h) Explain the importance of the
process of consultation.
27 The role of counselling
(a) Define counselling in the
management context
(b) Outline the role of the manager
when counselling staff
(c) Explain the importance of effective
counselling
(d) Identify the skills used in the process
of effective counselling
(e) Suggest reasons why the need to
counsel a member of staff may arise.
28 Controlling conflict, grievance and
discipline
(a) Identify the main causes of conflict
within an organisation
(b) Outline procedures for managing
conflict.
(c) Outline a suitable framework (both
internal and external to the
organisation) for dealing with
grievance and disciplinary matters
(d) Explain the need for effective
organisational procedures
(e) Explain the role of management in
respect of disciplinary matters
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