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Part 1 Examination Paper 1.3 Managing People 1

December 2002 Answers

Overview Organisations and businesses are made up of many individuals all working together. These individuals have different attitudes, perceptions and learning experiences, which together with gender and personality differences can be either a good source for developing creativity within an organisation or the root of an organisations problems. Managers need to be aware of the many factors that affect individual differences and their own attitudes and assumptions. They should recognise individual potential and harness talent to achieve the organisational goals. (a) Equal Opportunities is a generic term which describes the belief that there should be an equal chance for all workers in an organisation to apply and be selected for jobs, to be trained and promoted in employment and to have that employment terminated fairly. Employers should only discriminate according to ability, experience and potential. All employment decisions should be based solely on a persons ability to do the job in question; no consideration should be taken of a persons sex, age, racial origin, disability or marital status. (i) A Sex Discrimination Policy would look at equality in all areas of employment. Such areas would include the selection process, opportunities for training, promotion, the provision of benefits and facilities and dismissal. This policy would deem it wrong to make any form of discrimination within employment matters because of marital status or sex. The policy should cover the three main categories of sex discrimination: direct discrimination, indirect discrimination and victimisation. Direct discrimination incorporates the treating of a person on sexual or marital grounds less favourably than others would be treated. One act of discrimination is sufficient and must be directed against an individual. Such as a clause in the employment contract which states that it would be terminated on marriage. Indirect discrimination consists in applying a term or condition applicable to both sexes but which one sex has considerably smaller ability to comply with it than the other. Such as all applicants for a post must be six feet tall. Victimisation is the discrimination against an individual who has brought proceedings or given evidence in another case. Such persons should not be treated less favourably than any other individual in the same circumstances. (ii) A race relations policy would adopt the same approach as the sex discrimination policy. However this policy would look at racial grounds and racial groups. These phrases refer to colour, race, nationality or other ethnic or national origins. The same three categories of direct and indirect discrimination and victimisation can be used. (b) An equal pay policy means that a woman is entitled to identical pay with men and vice versa in respect of like work or work that is rated as equivalent or equal value to that of a man in the same employment. Like work means work of a broadly similar nature where differences are not of a practical nature. Work rated as equivalent requires equal pay. This is when work has been evaluated and graded to be equivalent as other work in relation to effort, skill and decision-making. Work of equal value is that of a womans to that of a mans in the same organisation. This should apply equally to men and women. In addition to any statutory equal pay policy and indeed social responsibility toward its workforce, Food is Us would benefit from an equal pay policy in other ways. It would avoid the costs and poor publicity that might arise from legal action brought to enforce the law would be important for a business of this size and profile. In addtion it would project a caring image to its diverse customer base and in terms of good people management, attract the best employees from a wider range of sources and with more diverse characteristics, and help build its customer base to include a wider constituency. (c) A disability discrimination policy should contain the following key points: a disabled person is defined as a person who has a physical or mental impairment that has a substantial and long-term, more than 12 months, adverse effect on his/her ability to carry out normal day to day activities. Severe disfigurement is included, as are progressive conditions such as HIV even though the current effect may not be substantial. the effect includes mobility, manual dexterity, physical co-ordination, and lack of ability to lift or speak, hear, see, remember, concentrate, learn or understand or to perceive the risk of physical danger. the policy should also make it clear that it is wrong to discriminate against disabled people in the interviewing and selection process, for promotion, transfer or training and by dismissal. the employer has the duty to make reasonable adjustments to the physical features of the workplace where they constitute a hazard to the disabled person.


Equal Opportunities and Managing Diversity There is a new generation of managers within organisations who regard the quality of their people as the distinguishing feature of a successful organisation. People are the single sustainable source of competitive advantage. Nurturing high performance through the development of people is essential if organisations are to remain viable and competitive. The promotion of equal opportunities has made good business sense. Equal opportunities has been promoted as a key component of good management as well as being legally required, socially desirable and morally right. Managing diversity expands the horizons beyond equality issues and builds on recognised approaches to equal opportunities. It adds new impetus to the development of equal opportunities and the creation of an environment in which enhanced contributions from all employees will work to the advantage of business, people themselves and society more generally. It offers an opportunity for organisations to develop a workforce to meet their business goals and to improve approaches to customer care. Managing diversity is about having the right person for the job regardless of sex, colour or religion. Essentially the management of diversity is a quality assurance approach. It helps identify hidden organisational barriers which make it more difficult for people who are perceived as being different from the majority of their colleagues to succeed and develop careers. It also helps to effect cultural change and to create an environment in which people from all backgrounds can work together harmoniously. The management of diversity combats prejudice, stereotyping, harassment and undignified behaviour.

Overview In the search for organisational success, many business organisations have sought to adopt what appear to be successful Japanese management methods. The leading theorist in this field is William Ouchi, who, drawing on earlier work, has described the Japanese approach to management as Theory Z. (a) William Ouchi, a Japanese American, has concerned himself with comparing Japanese management techniques with American. Ouchi uses the term Theory Z for firms which use Japanese methods adapted to the Western system. Such organisations display certain characteristics: (b) workers and managers trust their superiors a much longer time horizon is the norm; the idea of short-term profit is rejected in favour of long-term growth there is a team approach. Departments see their position within the organisation as a whole a caring, paternal management unhampered by unions, demarcation or professional prejudices generalised training. Managers learn the business, not just parts of it a flexible organisation structure collective values and company wide rewards slow, but known promotion lifelong employment.

Theory Z requires an emphasis on interpersonal skills and group and team working; decisions are based on consensus, but, unlike in Japan from where the idea originates, responsibility remains with the individual. Trust and informal relationships are the keystone of Theory Z organisations, even though the formal hierarchy and organisational traditional structure remain. It is often compared to Macgregors Theory Y approach in that it is seen as a more caring, sensitive and effective way of achieving organisational success. The theory is dependent upon the demands of the organisational situation. Some organisations, as a consequence of their product or service do not provide a suitable environment for the use of motivational techniques associated with Theory Z. Its strength lies in the fact that because of improved standards of education and changed social and political values, many employees have wider expectations from the workplace and expect to be consulted and to participate. The application of Theory Z will therefore depend upon: the organisational culture, structure and objectives the procedures and practices involved in the organisation the technology, environment and product or service the organisations history and attitude the level of satisfaction that already exists in an individuals task or role.

Overview Recruitment of staff, especially if large numbers are involved, may be time consuming and a drain on resources. Additionally, the expertise may not exist within the organisation, requiring the organisation to seek suitable candidates outside. (a) Internal promotion describes the situation where an organisation has an explicit policy to promote from within and where there is a clear and transparent career structure. This is typical of many management and administrative staff and of certain sectors of the economy such as the public services. The advantages of internal promotion: (b) it acts as a source of motivation and provides good general morale amongst employees staff seeking promotion are known to the employer inexpensive in terms of time and money training and induction costs are minimised further training can be product and organisational specific the culture of the organisation is understood by the individual illustrates the organisations commitment to encouraging the staff the individual will already be familiar with the other members of the organisation.

External recruitment describes the situation where the organisation decides to recruit someone from outside the organisation to fill a staff vacancy. The advantages of external recruitment: may be essential if particular skills or expertise are not available within the organisation is necessary to restore staffing levels or where an organisation urgently needs new employees can bring new ideas and novel approaches to the organisation and to the specific task provide experience and work methods from other employers.


Any organisation which is considering the use of external recruitment consultants would make its decision upon the following: the availability, level and appropriateness of expertise available within the organisation and its likely effectiveness the cost of using consultants against the cost involved in using the organisations own staff, recognising the level of the vacancy or vacancies against the consultants fee the particular expertise of the consultants and the appropriate experience with any particular specialised aspect of the recruitment process the level of expertise required of potential employees and therefore the appropriate knowledge required of the consultants the need for impartiality; this may be of particular importance with public sector appointments, organisations with particular needs of security or impartiality or where it is felt that an external, objective assessment is required the time involved in the consultants needing to learn about the organisation, its requirements and the vacancy or vacancies if there is a ready supply of labour then consultants may be less useful, standard vacancies may be readily filled by advertising or similar inexpensive means the views of internal staff as to the likely effect of using outside consultants what effect the use of consultants might have on the need to develop expertise within the organisation, the use of consultants will not assist with developing internal organisational expertise the likelihood of existing staff to have misgivings about the presence of, or recommendations of, outside consultants which can lead to mistrust and rejection of any candidates recruited by the consultants.

Overview Individuals are often reluctant to undertake further learning, especially in the workplace. It is important therefore that managers understand the way in which individuals actually learn, if any training programme is to be succesful. (a) David Kolb suggests that learning is a series of steps based on learning from experience. He suggested that classroom learning is false and that actual learning comes from real life experiences. Learning is experiential and comes from doing, this ensures that learners actually solve problems. Kolbs experiential learning cycle concrete experiences testing the observation implications of and concepts in new situation reflection formation of abstract concepts and generalisations The first stage (concrete experiences) is the situation where the person is learning something new. The second stage (observation and and reflection) is so called because the experience is being reviewed. The third stage (concepts and generalisations) is when the experience has been accepted or rejected. The fourth stage (concepts in new situations) is when the person calculates how and when to apply that which has been learned. (b) HONEY AND MUMFORD have identified four learning styles. Theorists are concerned with forming principles or how does this relate to that? They think problems through in a vertical, step by step logical way and tend to be perfectionists who do not rest easy until things are tidy and fit into a rational scheme. Theorists are usually detached, analytical and dedicated to rational objectivity rather than anything subjective or ambiguous. Often known as CONCLUDING. For them training must be: programmed and structured designed to allow time for analysis provided by others who share the same preference for ideas and analysis.

Reflectors are concerned with observation and reflection or I would like time to think about this. They like to stand back and ponder experiences and observe them from many different perspectives. They collect data, both first hand and from others, and prefer to think about it thoroughly before coming to any conclusion. Thoughtful people, they prefer to take back seats in meetings and discussions. Often known as REVIEWING. Reflectors need an observational approach to training need to work at their own pace do not find learning easy, especially if rushed conclusions are carefully thought out slow, cautious and non-participative.

Activists are concerned with actual experience Whats new? Im game for anything. They involve themselves fully and without bias in new experiences, are open minded, not sceptical and this tends to make them enthusiastic about anything new. They are gregarious people constantly involving themselves with others but, in so doing, they seek to centre all activities around themselves. Often known as DOING. Activists have a practical approach to training prefer practical problems, a dislike of theory insist on having hands on training enjoy participation and challenge flexible, optimistic tend not to prepare are easily bored.


Pragmatists are concerned with deliberate testing or How can I apply this in practice? They are keen on trying out ideas, theories and techniques to see if they work in practice, positively search out new ideas and take the first opportunity to experiment with applications. They are essentially practical, down to earth people who like making practical decisions and solving problems. Often known as PLANNING. Pragmatists need to see a direct value and link between training and real problems. enjoy learning new techniques and tasks good at finding improved ways of doing things aim to do things better impatient if new ideas are not reflected in practical applications.

Overview Motivation is fundamental to the task of management. Many different theories have been presented on how management might motivate employees; Adams equity theory is an attempt to bring a more modern approach to the topic, based on the idea of distributive justice. (a) The process theory of motivation asks the question How can people be motivated? The process theory of motivation does not emphasise the need for fulfilment through work (as in the content theory), but concentrates upon the processes through which individuals are motivated. They attempt to explain how individuals start, sustain and direct behaviour and assume that individuals are able to select their own goals and means of achieving those goals through a process of calculation. Process theory emphasises the importance of rewards, often financial. (b) Equity theory focuses on the feelings of the individual and how fairly they feel they have been treated in comparison with treatment received by others. It is sometimes referred to as exchange theory; individuals expect certain outcomes in exchange for certain efforts and contribution to the organisation. When an individual perceives that his or her efforts are equal to others and the rewards are the same, then equity exists. If the perception is that the efforts and rewards of one person are unequal to others, then there is inequity. When an individual has feelings of negative inequity, he or she can change the amount of effort put into the task change the nature or amount of reward required change the basis of comparison distort the comparisons psychologically leave the work situation or employer.


Overview The need for clear and concise communication and the consequences of poor communication must be understood by a profession which exists to provide information to others. Poor communication leads to ineffective control, poor co-ordination and management failure. (a) Good communication is important because: individuals know what is expected of them better co-ordination within the organisation improves control of the organisations plans, procedures and staff the instructions of management are understood encourages group and team cohesiveness can lead to the reduction of stress bias, distortion or omission can be removed secrecy and misunderstanding is reduced or removed information is received by appropriate person conflict in the workplace is reduced



Barriers to communication include: the personal background of the persons communicating language differences use of jargon different education levels noise; that is the message confused by extraneous matters the perception of individuals conflict within the organisation overload; that is too much information being communicated at once problems of distance basic misunderstanding accidental or deliberate distortion of information.


Barriers to communication may be overcome by: consideration of the needs and understanding of recipients careful and clear reporting at all levels express information clearly and concisely not using jargon or abbreviations using more than one communications system encouraging dialogue rather than monologue ensuring as few links as possible in the communication chain ensuring feedback.


Part 1 Examination Paper 1.3 Managing People 1 (a) (i) (ii) Description of the main features of a sex discrimination policy Description of the main characteristics of a race relations policy

December 2002 Marking Scheme Up to 10 marks Up to 6 marks (Maximum for Part (a) 16 marks) Up to 6 marks (Maximum for Part (b) 6 marks) Up to 8 marks (Maximum for Part (c) 8 marks) Up to 10 marks (Maximum for Part (d) 10 marks) (Total for Question 40 marks)


Reasons for an equal pay policy


Description of key points of policy and means of discrimination


Discussion and recognition of the differences


Description of Theory Z (One mark per characteristic) Discussion on Theory Z

Up to 10 marks (Maximum for Part (a) 10 marks) Up to 5 marks (Maximum for Part (b) 5 marks) (Total for Question 15 marks)



Description of the advantages of internal recruitment

Up to 5 marks (Maximum for Part (a) 5 marks) Up to 5 marks (Maximum for Part (b) 5 marks) Up to 5 marks (Maximum for Part (c) 5 marks) (Total for Question 15 marks)


Description of the advantages of external recruitment


Description of three factors

(a) (b)

Brief description of the four stages in the experiential learning cycle Description of the learning styles and their implications for training programmes

Up to 4 marks (Maximum for Part (a) 4 marks) Up to 11 marks (Maximum for Part (b) 11 marks) (Total for Question 15 marks)

(a) (b) (c)

Description of process theory Description of equity theory Description of negative inequity

Up to 5 marks (Maximum for Part (a) 5 marks) Up to 5 marks (Maximum for Part (b) 5 marks) Up to 5 marks (Maximum for Part (c) 5 marks) (Total for Question 15 marks)



Explanation of the importance of good communication (One mark per factor)

Up to 5 marks (Maximum for Part (a) 5 marks)


List five barriers to communication (One mark per barrier) Description of overcoming barriers (One mark per factor)

Up to 5 marks (Maximum for Part (b) 5 marks) Up to 5 marks (Maximum for Part (c) 5 marks) (Total for Question 15 marks)