2019 Prelims EQP & Answers

THIS PAPER IS NOT TO BE REMOVED FROM THE EXAMINATION HALL
MN3075 ZA
BSc DEGREES AND GRADUATE DIPLOMAS IN ECONOMICS, MANAGEMENT,

FINANCE AND THE SOCIAL SCIENCES, THE DIPLOMA IN ECONOMICS AND
SOCIAL SCIENCES AND THE CERTIFICATE IN EDUCATION IN SOCIAL
SCIENCES
Human Resource Management
Wednesday 29 May 2019: 14:30 – 17:30
Time allowed: 3 hours
DO NOT TURN OVER UNTIL TOLD TO BEGIN
Candidates should answer FOUR of the following EIGHT questions. All questions
carry equal marks.
© University of London 2019
Page 1 of 3
UL19/0183
1. (a) Compare and contrast the liberal and radical approaches to equal
opportunities policies. (10 marks)
(b) Critically evaluate the business argument for employing a diverse

workforce. (15 marks)
2. (a) Define ‘reneging’ and ‘incongruence’ in the context of psychological

contract violation and discuss what factors explain their occurrence.
(10 marks)
(b) What advice would you give to organisations wishing to avoid or minimise
perceptions of psychological contract breach amongst their employees?
(15 marks)
3. (a) 360° performance appraisals can be undertaken by various stakeholders.

Who are these stakeholders, and what do you think each can contribute to the
process? (10 marks)
(b) What are the limitations of 360° performance appraisals, and is this type of
appraisal useful in all workplaces? (15 marks)
4. (a) Explain Hackman and Oldham’s Job Characteristics Model. (10 marks)
(b) Discuss the advantages and disadvantages associated with using the
Job Characteristics Model to redesign jobs. (15 marks)
5. (a) What is an ‘internal labour market’? (5 marks)
(b) What types of organisations are likely to use internal labour markets?
Support your answer with examples. (10 marks)
(c) Discuss the advantages and disadvantages for organisations of operating

an internal labour market. (10 marks)
6. (a) What criteria should managers take into account when evaluating the
effectiveness of recruitment and selection processes?
(10 marks)
(b) Discuss the biases associated with unstructured interviews and suggest
ways in which managers can overcome them. (15 marks)
Page 2 of 3
UL19/0183
7. (a) Distinguish between schemes that link pay to individual performance and
schemes that relate pay to group performance, and discuss how each of
these schemes work. (10 marks)
(b) Drawing on agency and motivation theories, discuss the strengths and
limitations of individual performance related pay. (15 marks)
8. (a) Distinguish between task and contextual performance. (10 marks)
(b) Discuss the consequences of organisational citizenship behaviour for (i)

the organisation and (ii) the individual.
(15 marks)
END OF PAPER
Page 3 of 3
UL19/0183
THIS PAPER IS NOT TO BE REMOVED FROM THE EXAMINATION HALL
MN3075 ZB
BSc DEGREES AND GRADUATE DIPLOMAS IN ECONOMICS, MANAGEMENT,

FINANCE AND THE SOCIAL SCIENCES, THE DIPLOMA IN ECONOMICS AND
SOCIAL SCIENCES AND THE CERTIFICATE IN EDUCATION IN SOCIAL
SCIENCES
Human Resource Management
Wednesday 29 May 2019: 14:30 – 17:30
Time allowed: 3 hours
DO NOT TURN OVER UNTIL TOLD TO BEGIN
Candidates should answer FOUR of the following EIGHT questions. All questions
carry equal marks.
© University of London 2019
Page 1 of 3
UL19/0184
1. (a) According to goal-setting theory, what types of goals are likely to be
associated with higher levels of performance?
(10 marks)
(b) Compare and contrast the orthodox and radical critiques of performance
appraisals. (15 marks)
2. (a) Discuss the notions of validity, reliability and fairness in the context of
selection and recruitment. (5 marks)
(b) What use can yield analysis, time-lapse analysis and cost-per-hire be to
organisations when deciding whether a recruitment method is effective and
efficient? (10 marks)
(c) Discuss the strengths and limitations of on-line recruitment.

(10 marks)
3. (a) Discuss the key elements of Taylor’s Scientific Management and the
limitations of this approach to job design. (10 marks)
(b) How can job enlargement and job enrichment overcome the limitations of
Scientific Management? (15 marks)
4. (a) Discuss the assumptions of principal-agent theory. (5 marks)
(b) According to principal-agent theory why is individual performance-related

pay an effective payment system? (10 marks)
(c) Drawing on expectancy and equity theories, discuss ways in which

managers can improve the effectiveness of individual performance-related
pay. (10 marks)
5. (a) Define ‘reneging’ and ‘incongruence’ in the context of psychological

contract violation and discuss what factors explain their occurrence
(10 marks)
(b) What advice would you give organisations wishing to avoid or minimise
(15 marks)
Page 2 of 3
UL19/0184
6. (a) What is meant by numerical flexibility? (5 marks)
(b) What can an organisation do to increase numerical flexibility?

(10 marks)
(c) What are the potential disadvantages of increasing numerical flexibility?

(10 marks)
7. (a) Compare and contrast the liberal and radical approaches to equal
(b) Critically evaluate the business argument for employing a diverse

8. (a) What is an ‘internal labour market’? (5 marks)
(b) What types of organisations are likely to use internal labour markets?
(c) Discuss the advantages and disadvantages for organisations of operating

END OF PAPER
Page 3 of 3
UL19/0184
Examiners’ commentaries 2019

MN3075 Human resource management
Important note
This commentary reflects the examination and assessment arrangements

for this course in the academic year 2018–19. The format and structure of
the examination may change in future years, and any such changes will
be publicised on the virtual learning environment (VLE).
Information about the subject guide and the Essential

reading references
Unless otherwise stated, all cross-references will be to the latest version
of the subject guide (2013). You should always attempt to use the most
recent edition of any Essential reading textbook, even if the commentary
and/or online reading list and/or subject guide refers to an earlier
edition. If different editions of Essential reading are listed, please check
the VLE for reading supplements – if none are available, please use the
contents list and index of the new edition to find the relevant section.
General remarks
Learning outcomes
At the end of this course, and having completed the Essential reading and
activities, you should be able to:
• describe the relationship between HRM and organisational performance
and be able to critically evaluate the empirical evidence
• critically evaluate alternative perspectives on HR practices
• analyse the relationship between HR practices and their outcomes for the
individual and organisation
• evaluate the effectiveness of different HR practices
• comment upon the limitations of the theories covered.
Planning your time in the examination

Many candidates appear to spend a disproportionate amount of time
answering two or three questions. This is a risky strategy. You should always
attempt four questions and spend an appropriate amount of time on each to
increase the likelihood of being awarded a pass.
What are the Examiners looking for?

You are expected to answer the question that has been set by developing
an argument that addresses the given question. In developing their
argument, you are expected to exercise judgment and be selective by
including material that is relevant to the question and excluding material
that is tangential or not relevant to the question. Students should focus on
questions asked rather than simply reciting pre-learned subject content.
Examiners penalise answers that include all the material a student knows
1
about the topic as evidence of lack of ability to exercise judgement or lack of

understanding as to what the question is asking. All questions come in two
or, more typically, three parts. You should ensure that they answer all parts
of the question, giving approximate weight to each based on the marks
available.
The exam paper is structured in a way that requires students to demonstrate:
(i) knowledge and understanding and (ii) application of knowledge and critical
thinking. The exam questions are split in 2 or 3 parts (i.e. a, b, c). Part a and
(usually) part b require you to demonstrate knowledge and understanding
and these questions are based on the basic concepts that are discussed in the
module guide. Since marks in these questions are given for knowledge and
accuracy and they carry enough marks to give you a ‘pass’, failure to provide a
good answer can increase your risk of failing the exam. We therefore strongly
advise students to ensure that they are well-prepared to answer the
first two parts of each question. The module guide usually includes all the
relevant knowledge for these two parts, so good familiarity with the guide is
highly advisable.
Part c requires further explanation, application of theory, discussion of
relevant research evidence and critical evaluation of material. Candidates
are sometimes overly descriptive in their answers to the third part and, as a
consequence, do not provide a critical perspective on the material presented.
You are expected to warrant your claims by citing literature or giving
examples, rather than just expressing unsubstantiated opinions. Avoid a
descriptive approach and consider writing in a way that articulates different
viewpoints. Better answers are able to link these to different theoretical
frameworks and empirical evidence and provide references of key authors in
the academic literature.
The examiners like answers to the second and, where applicable, third parts of
each question to be clearly and logically set out and to include a beginning,
middle and end:
• beginning – present the main argument in the introductory paragraph
• middle – develop and substantiate the argument in the main body of the
answer
• end – use the concluding paragraph to summarise the main points of the
argument.
Your answer must address the given question, so it is important when
answering the question to always ask yourself ‘how is each point I am
making relevant to the question?’ By doing so, you should be able to filter
out information that is not relevant to the question and only keep parts that
are. Do not leave it to the closing paragraph of your answer to make your
argument explicit.
There are a number of ways to answer a particular question and the
quality of the answer (irrespective of the approach taken) depends upon a
critical evaluation of the theories and empirical evidence, rather than mere
description and recitation of related material. This is difficult if you do not
understand the broader material and have not read beyond the subject guide.
It is imperative that you read beyond the subject guide, which essentially
just provides an introduction and overview, and incorporate evidence
of additional reading into your answers. Reading the required references
provides greater depth to the topics and is necessary to develop a solid, well-
developed argument for examination questions. References to studies and key
authors can make the difference between a good answer and a very good or
excellent answer. Time management is also very important. Candidates must
2
aim to answer all four questions and allocate time appropriately given the
number of marks available.
Finally, the revision is an important part of the exam preparation process.
Students are strongly encouraged to revisit past exam papers and study
them carefully. This may involve identifying which part of the syllabus they
are drawn from and attempting to answer them by making detailed notes or
using them as ‘mock’ exam examples.
Key steps to improvement

Common mistakes and weaknesses
Many candidates are disappointed to find that their examination performance
is poorer than they expected. This can be due to a number of different reasons
and the Examiners’ commentaries suggest ways of addressing common
problems and improving your performance.
We want to draw your attention to one particular failing – ‘question spotting’,
that is, confining your examination preparation to a few question topics
which have come up in past papers for the course. This can have very serious
consequences. During your studies, you should develop and in-depth
understanding of the topics covered in the module guide in preparation for
the examination. While candidates may not cover all topics in the syllabus
in the same depth, but you need to be aware that Examiners are free to set
questions on any aspect of the syllabus. Therefore, it is very important
that you develop an in-depth knowledge of all aspects of the course as
presented in the module guide. If you rely on a question spotting strategy, it is
likely you will find yourself in difficulties when you sit the examination paper.
We strongly advise you not to adopt this strategy.
Examiners will vary the topics and questions from year to year and may well
set questions that have not appeared in past papers – every topic on the
syllabus is a legitimate examination target. So although past papers can be
helpful in revision, you cannot assume that topics or specific questions that
have come up in past examinations will definitely occur again. Students
should focus on questions asked rather than simply reciting pre-learned
subject content that might apply to another question.
Skills and abilities examiners are looking for

Throughout the exam, students are expected to demonstrate knowledge
and understanding of the HRM concepts covered in the module. Students are
further expected to critically evaluate alternative perspectives on HR practices
and analyse the relationship between HR practices and their outcomes for the
individual and organisation. A critical perspective involves a synthesis of the
literature and the evidence and an evaluation of the arguments put forward
(including a discussion of the strengths and limitations of each approach).
Time management and the ability to provide a coherent structure for each
answer are also important.
3
Examination revision strategy
Many candidates are disappointed to find that their examination

performance is poorer than they expected. This can be due to
a number of different reasons and the Examiners’ commentaries
suggest ways of addressing common problems and improving your
performance. We want to draw your attention to one particular failing
– ‘question spotting’, that is, confining your examination preparation
to a few question topics which have come up in past papers for the
course. This can have very serious consequences.
We recognise that candidates may not cover all topics in the syllabus
in the same depth, but you need to be aware that examiners are free
to set questions on any aspect of the syllabus. This means that you
need to study enough of the syllabus to enable you to answer the
required number of examination questions.
The syllabus can be found in the Course information sheet in the
section of the VLE dedicated to this course. You should read the
syllabus very carefully and ensure that you cover sufficient material in
preparation for the examination.
Examiners will vary the topics and questions from year to year and
may well set questions that have not appeared in past papers – every
topic on the syllabus is a legitimate examination target. So although
past papers can be helpful in revision, you cannot assume that topics
or specific questions that have come up in past examinations will
occur again.
If you rely on a question spotting strategy, it is likely you will find
yourself in difficulties when you sit the examination paper. We
strongly advise you not to adopt this strategy.
4

MN3075 Human resource management – Zone A
Important note

reading references
Comments on specific questions

Candidates should answer FOUR of the following EIGHT questions. All
questions carry equal marks.
Question 1
a. Compare and contrast the liberal and radical approaches to equal
b. Critically evaluate the business argument for employing a diverse
Reading for this question
The material and required reading for this question is outlined in chapter 2 of
the subject guide.
Approaching the question
a. Good answers analysed the liberal and radical approaches and discussed
policy and practice examples of how they can be implemented within the
organisation. Excellent answers also discussed their limitations in depth.
b. Good answers provided an in-depth analysis of the business case including
labour market issues, retention issues, the issue of company image and
product development, changing management styles. Excellent answers
discussed their limitations in depth. The guide includes various case study
examples that if discussed, extra marks were awarded.
Question 2
a. Define ‘reneging’ and ‘incongruence’ in the context of psychological
contract violation and discuss what factors explain their occurrence.
(10 marks)
b. What advice would you give to organisations wishing to avoid or
minimise perceptions of psychological contract breach amongst their
5 employees? (15 marks)

the subject guide.
a. Good answers provided a definition of reneging and incongruence and
explained the circumstances under which they are likely to occur. Better
answers discussed in depth the role of inability, unwillingness in reneging
and different schemata, complexity and ambiguity of obligations, and
communication in incongruence.
b. Good answers argued that given that contract breach can arise from
reneging or incongruence, these causes have practical implications for the
management of contract breach. Some examples include:
• Organisations need to be careful in making promises to employees as
they may later find they cannot fulfil them. This can happen as early as the
recruitment stage, but also later on.
• To minimise congruence, organisations may want to increase
communication between organisational agents and employees.
• The use of realistic job previews may minimise subsequent perceptions of
contract breach, as employees will have a good understanding of the job
prior to hiring.
Overall, better answers were based on the causes of reneging or
incongruence outlined above and developed the argumentation in relation
to this.
Question 3
a. 360° performance appraisals can be undertaken by various stakeholders.
Who are these stakeholders, and what do you think each can contribute
to the process? (10 marks)
b. What are the limitations of 360° performance appraisals, and is this type
of appraisal useful in all workplaces? (15 marks)
the subject guide. Candidates can also draw ideas from:
• Luthans, F. and S. Peterson, ‘360 degree feedback and systematic coaching’,
Human Resource Management 42(3) 2002, pp.243–56.
• Mabey, C. ‘Closing the circle: participants views of a 360 degree feedback
programme’, Human Resource Management Journal 11(1) 2001, pp.41–53.
a. Good answers discussed the contribution of each of the following:
supervisors/line managers, employees assessing their superiors, team-
members assessing each other, subordinates.
b. Good answers elaborated on the administrative burdens and costs
associated with introducing such complex systems, also problems
associated with assessors ‘gaming the process’, and the issues associated
with subordinates to give objective ratings of their supervisors and the
wider issue of subjectivity in the process (for example, the extent to
which any criterion is commonly understood, in the sense of having the
same literal meaning, by all those being assessed and all those doing
the assessing). Also, the extent to which those being assessed have any
involvement in or contribution to constructing criteria. Better answers
incorporated the wider problems with performance appraisals in their
discussion (for example, judgemental vs developmental appraisals and
6
radical critiques of appraisals).
Question 4
a. Explain Hackman and Oldham’s Job Characteristics Model. (10 marks)
b. Discuss the advantages and disadvantages associated with using the Job
Characteristics Model to redesign jobs. (15 marks)
the subject guide.
a. Good answers defined the five dimensions, the critical psychological
states and the outcomes. They also demonstrated understanding of the
links between them. Discussion of the motivating potential score was not
necessary as it is a supplement to the model.
b. Good answers provided a detailed account of the advantages of the JCM
not least highlighting its wide application and practical use to managers.
With regards to the disadvantages issues of measuring the dimensions
and outcomes and Kelly’s (1992) work are important themes and excellent
answers drew on these to address the question.
Question 5
a. What is an ‘internal labour market’? (5 marks)
b. What types of organisations are likely to use internal labour markets?
c. Discuss the advantages and disadvantages for organisations of operating
the subject guide.
a. Good answers defined the term ‘internal labour market’ and excellent
answers further explained different patterns of adoption, for example,
full adoption (external recruitment only at most junior levels) or in a more
limited form (for example, external recruitment permitted only when no
suitable internal candidates are available).
b. Examiners were looking for specific examples of industries that are likely to
adopt ILMs (for example, first tier Japanese manufacturing companies and
generally organisations that emphasise life-time employment, professional
services firms such as accountants, consultants, lawyers and public sector
organisations). Better answers pointed out that more generally ILMs are
found in organisations which require the development of firm specific
human capital and knowledge.
c. Good answers provided an in-depth discussion of their advantages in the
context of firm-specific skills and knowledge; motivation and commitment
of insiders because of promotion prospects; containment of wages at
junior levels (tournament theory); higher return on investment in training;
retention of knowledge and ‘corporate history’; reduced risk for employers
when selecting for jobs.
In relation to disadvantages relevant points for discussion included
the reduced hiring pool, placing limits on talent selection; restricting
possibilities of new perspectives, new ideas, innovation by introducing
practices from outside; loss of contact with external pay markets which
may create wage rigidity; ILMs may evolve into a seniority / tenure-based
promotion systems rather than meritocratic systems; the trade-off between
7
the development knowledge of the organisation in ILMs and development

of technical knowledge through exposure to different systems.
Question 6
a. What criteria should managers take into account when evaluating the
effectiveness of recruitment and selection processes? (10 marks)
b. Discuss the biases associated with unstructured interviews and suggest
ways in which managers can overcome them. (15 marks)
the subject guide.
a. Candidates were expected to define and explain in depth the following
criteria: cost & budget; validity; reliability and fairness.
b. Good answers demonstrated understanding of what unstructured
interviews are. This was followed by a discussion of the subjectivity biases
within the unstructured interview process including: expectancy effect,
primacy effect, contrast effect, quota effect, similar-to-me effect, personal
liking bias, physical cues and ability to recall information. Excellent answers
discussed ways in which these can be overcome (for example, structured
interviews, use of interview panels and combined with other selection
methods).
Question 7
a. Distinguish between schemes that link pay to individual performance
and schemes that relate pay to group performance, and discuss how each
of these schemes work. (10 marks)
b. Drawing on agency and motivation theories, discuss the strengths and
limitations of individual performance related pay. (15 marks)
the subject guide.
a. Good answers discuss commission, piecework and individual PRP on one
hand, and profit sharing, gain sharing and team pay schemes on the other.
Excellent answers demonstrated understanding of these schemes, as
opposed to just naming them.
b. Good answers demonstrated understanding of agency theory and
proceeded to discuss agency theory’s predictions relating to how PRP
achieves alignment of interests. In relation to motivation theories, good
answers distinguished between content (Maslow, Herzberg, McClelland)
and process theories. In linking content theories with PRP, excellent
answers discussed under what circumstances the financial reward
associated with PRP will motivate individuals (that is, what motivates
people). With regards to process (how are people motivated), excellent
answers applied expectancy and equity to how PRP schemes should be
designed to have a motivating effect. Excellent answers further presented
the Inland Revenue case study by Marsden and Richardson (in the reading
list) as a case in point.
Question 8
a. Distinguish between task and contextual performance. (10 marks)
8
b. Discuss the consequences of organisational citizenship behaviour for (i)

the organisation and (ii) the individual. (15 marks)
the subject guide.
a. Good answers defined task and contextual performance and also drew
on specific examples to illustrate the point. Excellent answers clearly
pointed out the differences between them, for example that task
performance captures proficiency in performing specific work tasks
while contextual performance encapsulates behaviours that support the
broader organisational, social and psychological environment in which the
technical core must function.
b. Good answers begun by providing a definition of OCB and moved on
to examine the links between OCB and organisational performance
(mechanisms include co-worker productivity, managerial productivity,
group cohesiveness and group performance). With regards to the
individual, good answers discussed its positive effect on performance
evaluations and promotion opportunities, and these can be examined
through the lenses of the norm of reciprocity and associations that
managers make. Additional marks were awarded if answers referenced
empirical evidence.
9

MN3075 Human resource management – Zone B
Important note

reading references
Comments on specific questions

Candidates should answer FOUR of the following EIGHT questions. All
questions carry equal marks.
Question 1
a. According to goal-setting theory, what types of goals are likely to be
associated with higher levels of performance? (10 marks)
b. Compare and contrast the orthodox and radical critiques of performance
appraisals. (15 marks)
the subject guide.
a. Good answers discussed the SMART framework, but better answers also
examined issues associated with the extent to which employees have
participated in goal-setting, the degree to which the goals are accepted,
and ability as a mediator. Arnold et al.’s (1998) work (discussed in the
module guide) provides a good reference to address these points.
b. Good answers discussed the distorting effects in performance appraisals
(for example, recency, halo and horn, crony, Veblen and impression) and
problems associated with judgemental appraisals, consistency and target
setting that focuses on behaviours that can be measured. In relation
to the radical critique, issues of management power and control were
explored by better answers, and excellent answers also examined how
management’s ability to use PAs in such a manner might be overestimated
and employee capacity for resistance ignored.
10
Question 2
a. Discuss the notions of validity, reliability and fairness in the context of
selection and recruitment. (5 marks)
b. What use can yield analysis, time-lapse analysis and cost-per-hire be to
organisations when deciding whether a recruitment method is effective
and efficient? (10 marks)
c. Discuss the strengths and limitations of on-line recruitment. (10 marks)
the subject guide.
a. Excellent answers provided clear definitions of validity, reliability and
fairness drawing on the relevant sections of the module guide.
b. Excellent answers explain each type of source analysis and full marks were
awarded if candidates covered all the relevant points from the module
guide.
c. Good answers outlined the advantages and disadvantages of online
recruitment as they are elaborated in the module guide drawing on the
work of Beardwell and Claydon (2010). Better answers examined the
organisational and job circumstances that make on-line recruitment suitable
for some jobs and some organisations but not others.
Question 3
a. Discuss the key elements of Taylor’s Scientific Management and the
limitations of this approach to job design. (10 marks)
b. How can job enlargement and job enrichment overcome the limitations of
Scientific Management? (15 marks)
the subject guide.
a. Good answers discussed specialisation and division of labour on one hand,
and separation of conception and execution on the other. Deskilling, lack
of production flexibility and boring/repetitive jobs were discussed as
limitations of Scientific Management.
b. Good answers demonstrated understanding of the differences between
enlargement and enrichment and clearly demonstrated how they can
overcome the specific problems of Taylorism. Excellent answers further
elaborated on the limitations of both approaches.
Question 4
a. Discuss the assumptions of principal-agent theory. (5 marks)
b. According to principal-agent theory why is individual performance-related
pay an effective payment system? (10 marks)
c. Drawing on expectancy and equity theories, discuss ways in which
managers can improve the effectiveness of individual performance-related
pay. (10 marks)
the subject guide.
11

a. Excellent answers discussed principal-agent theory by drawing on the
notions of information asymmetry, measurement/monitoring of effort/
output and moral hazard.
b. Good answers begun by explaining what PRP is, followed by a discussion
of how it can overcome monitoring/measuring of output/effort problems
by aligning the interests of agents and principals.
c. Good answers demonstrated understanding of expectancy and equity
theories by providing an in-depth discussion of their assumptions and
the processes by which motivation is achieved. Excellent answers applied
them to PRP in order to argue that how PRP schemes are designed and
administered is important in determining their effectiveness.
Question 5
a. Define ‘reneging’ and ‘incongruence’ in the context of psychological
contract violation and discuss what factors explain their occurrence
(10 marks)
b. What advice would you give organisations wishing to avoid or minimise
(15 marks)
The material and required reading for this question is outlined in chapter 5.
a. Good answers provided a definition of reneging and incongruence and
explained the circumstances under which they are likely to occur. Better
answers discussed in depth the role of inability, unwillingness in reneging
and different schemata, complexity and ambiguity of obligations, and
communication in incongruence.
b. Good answers argued that given that contract breach can arise from
reneging or incongruence, these causes have practical implications for the
management of contract breach. Some examples of how excellent answers
addressed the question include:
• Organisations need to be careful in making promises to employees as
they may later find they cannot fulfil them. This can happen as early as the
recruitment stage, but also later on.
• To minimise congruence, organisations may want to increase
communication between organisational agents and employees.
• The use of realistic job previews may minimise subsequent perceptions of
contract breach, as employees will have a good understanding of the job
prior to hiring.
Overall, excellent answers were based on the causes of reneging or
incongruence outlined above and developed the argumentation in line
with these causes.
Question 6
a. What is meant by numerical flexibility? (5 marks)
b. What can an organisation do to increase numerical flexibility? (10 marks)
c. What are the potential disadvantages of increasing numerical flexibility?
(10 marks)
the subject guide.
12

a. Good answers demonstrated understanding that the term numerical
flexibility refers to the firm’s ability to adjust the amount of labour it hires
or pays when demand for products/services changes.
b. Better answers discussed the various practices and provided a more
detailed discussion of outsourcing, part-time work and fixed term
contracts (all discussed in detail in the module guide). Candidates were
expected to clearly illustrate how these arrangements represent numerical
flexibility and exceptional answers highlighted the shortcomings of these
approaches.
Question 7
a. Compare and contrast the liberal and radical approaches to equal
b. Critically evaluate the business argument for employing a diverse
the subject guide.
a. Good answers analysed the liberal and radical approaches and discussed
policy and practice examples of how they can be implemented within the
organisation. Excellent answers discussed their limitations in depth.
b. Good answers provided an in-depth analysis of the business case including
labour market issues, retention issues, the issue of company image and
product development, changing management styles. Limitations were also
discussed in depth. The guide includes various case study examples that if
discussed, extra marks were awarded.
Question 8
a. What is an ‘internal labour market’? (5 marks)
b. What types of organisations are likely to use internal labour markets?
c. Discuss the advantages and disadvantages for organisations of operating
the subject guide.
a. Good answers defined the term ‘internal labour market’ and excellent
answers further explained different patterns of adoption, for example,
full adoption (external recruitment only at most junior levels) or in a more
limited form (for example, external recruitment permitted only when no
suitable internal candidates are available).
b. Examiners were looking for specific examples of industries that are likely to
adopt ILMs (for example, first tier Japanese manufacturing companies and
generally organisations that emphasise life-time employment, professional
services firms such as accountants, consultants, lawyers and public sector
organisations). Better answers pointed out that more generally ILMs are
found in organisations which require the development of firm specific
human capital and knowledge.
c. Excellent answers provided an in-depth discussion of their advantages
in the context of firm-specific skills and knowledge; motivation and
13
commitment of insiders because of promotion prospects; containment of

wages at junior levels (tournament theory); higher return on investment in
training; retention of knowledge and ‘corporate history’; reduced risk for
employers when selecting for jobs.
In relation to disadvantages relevant points for discussion included
the reduced hiring pool, placing limits on talent selection; restricting
possibilities of new perspectives, new ideas, innovation by introducing
practices from outside; loss of contact with external pay markets which
may create wage rigidity; ILMs may evolve into a seniority / tenure-based
promotion systems rather than meritocratic systems; the trade-off between
the development knowledge of the organisation in ILMs and development
of technical knowledge through exposure to different systems.
14

2019 Prelims EQP &amp; Answers

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THIS PAPER IS NOT TO BE REMOVED FROM THE EXAMINATION HALL

BSc DEGREES AND GRADUATE DIPLOMAS IN ECONOMICS, MANAGEMENT,

Human Resource Management

Wednesday 29 May 2019: 14:30 – 17:30

Time allowed: 3 hours

DO NOT TURN OVER UNTIL TOLD TO BEGIN

© University of London 2019

(b) Critically evaluate the business argument for employing a diverse

2. (a) Define ‘reneging’ and ‘incongruence’ in the context of psychological

3. (a) 360° performance appraisals can be undertaken by various stakeholders.

5. (a) What is an ‘internal labour market’? (5 marks)

(c) Discuss the advantages and disadvantages for organisations of operating

8. (a) Distinguish between task and contextual performance. (10 marks)

(b) Discuss the consequences of organisational citizenship behaviour for (i)

BSc DEGREES AND GRADUATE DIPLOMAS IN ECONOMICS, MANAGEMENT,

Human Resource Management

Wednesday 29 May 2019: 14:30 – 17:30

Time allowed: 3 hours

DO NOT TURN OVER UNTIL TOLD TO BEGIN

© University of London 2019

(c) Discuss the strengths and limitations of on-line recruitment.

4. (a) Discuss the assumptions of principal-agent theory. (5 marks)

(b) According to principal-agent theory why is individual performance-related

(c) Drawing on expectancy and equity theories, discuss ways in which

5. (a) Define ‘reneging’ and ‘incongruence’ in the context of psychological

(b) What can an organisation do to increase numerical flexibility?

(c) What are the potential disadvantages of increasing numerical flexibility?

(b) Critically evaluate the business argument for employing a diverse

8. (a) What is an ‘internal labour market’? (5 marks)

(c) Discuss the advantages and disadvantages for organisations of operating

Examiners’ commentaries 2019

This commentary reflects the examination and assessment arrangements

Information about the subject guide and the Essential

Planning your time in the examination

What are the Examiners looking for?

about the topic as evidence of lack of ability to exercise judgement or lack of

Key steps to improvement

Skills and abilities examiners are looking for

Examination revision strategy

Many candidates are disappointed to find that their examination

Examiners’ commentaries 2019

Information about the subject guide and the Essential

Comments on specific questions

Reading for this question

radical critiques of appraisals).

the development knowledge of the organisation in ILMs and development

b. Discuss the consequences of organisational citizenship behaviour for (i)

Examiners’ commentaries 2019

Information about the subject guide and the Essential

Comments on specific questions

Approaching the question

Approaching the question

commitment of insiders because of promotion prospects; containment of

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2019 Prelims EQP & Answers

2019 Prelims EQP & Answers