HR Simplified Note PDF

Business, Accounting and Financial Studies Elective Module: Human Resources Management HKDSE Name: ____________ 1  Chapter 1 Manpower Planning and Staffing 1. Explain the importance of manpower pl...

Business, Accounting and Financial Studies Elective Module: Human Resources Management HKDSE Name: ____________ 1  Chapter 1 Manpower Planning and Staffing 1. Explain the importance of manpower planning. Determine and predict future manpower needs: Proper human resources planning helps a company ensure that it has sufficient qualified employees to continuously achieve its objectives. Provide a necessary basis for designing and implementing other HRM functions: Many HRM functions are co-related. If one HRM function is being carried out badly, other HRM functions will be adversely affected. Avoid mismatch in manpower: The company assesses the strengths and weaknesses of its labour and match personnel activities and the future objectives of the company efficiently. Adjust manpower requirements according to environmental changes: Human resources planning allows a company to assess possible environmental changes. Then the company can match its manpower requirements with these changes. Comply with government employment regulations: Human resources planning forces a company to better comply with government employment regulations. 2. HKDSE 2015 Q8a Describe the manpower planning process which should be used for the expansion of the retail chain. (8 marks) Step 1: Forecast manpower demand: The retail chain first needs forecast the quantity and quality of manpower. Step 2: Estimate manpower supply: The retail chain needs to assess turnover rate, retirement policy and attrition rate. Step 3: Compare manpower demand and supply: The retail chain needs to identify shortfall and skill deficiencies. Step 4: Develop action plans and follow up: The retail chain needs to plan for recruitment, plan for training and development activities. 2  Step 1 3. HKDSE 2019 Q1 A blue company has started manpower planning and forecasted that its demand for bus drivers will increase. Describe the remaining three steps of this manpower planning process. (6 marks) Step 2: Forecast manpower supply A blue company needs to forecast the staff turnover rate and retirement in order to estimate the manpower supply. Step 3: Compare manpower demand and supply A blue company needs to identify the shortage of manpower in order to compare manpower demand and supply. Step 4: Formulate action plans and follow up A blue company needs to do the recruitment process and provide training for the new staff. 4. Explain the staffing process that a human resources manager may use to fill the position of chief executive (CEO) in HSBC. Step 1 Recruitment: With a job description and a job specification, the human resources manager can identify the type of people it requires. It may then attract potential candidates to apply for the position through various job posting methods. Step 2 Selection: The human resources manager can do a preliminary screening of the job application letters and select potential candidates for further assessment and interview. Step 3 Employment: After evaluating all the candidates, the human resources manage will choose the candidate who best fits the job of chief executive. Human resources manage then make an offer and contact to the selected candidate. 5. Identify two different job posting methods and gives two examples for each of them. Internal recruitment: Example: Transfer: Transfer the staff from one department to another department or from one district to another district to Hong Kong. Promotion: Promote the staff for its company. External recruitment: 3 Example: Employment agent: The company can look for a suitable candidate through head-hunter. Advertisement: The company can post an advertisement on the corporate website to attract capable applicants. Employee referral: The existing employees of the company can recommend their friends to apply for the vacancy. 6. HKDSE 2019 Q7b Explain the advantages of different external recruitment channels. (10 marks) Recruitment channel Advantages Job advertisement Advertising in mass media facilitates a wide coverage of readers, which attracts a huge pool of applications and is cost-saving. Employee referral The company can save time in the selection of candidates as pre- screening is done by referrers, i.e. existing employees. In addition, effort in orientation can also be saved since the referrers could introduce the company to the referees in advance. Employment agencies Employment agencies possess expertise to find suitable candidates and provide professional recruitment advices. Also, they has a wide recruitment networks to seek suitable applicants Job fairs Job fairs attract a huge number of applicants of various background in a relatively short period of time. The company can interview applicants immediately, hence shortening the time needed for selection procedures. (3 marks for each relevant channel and its advantages, max. 10 marks) HKDSE 2021 Q6 Tasty Company sells cookware. One of its popular products is an electronic cooking plate which has various functions including hotpots, making pancakes, and grilling meats. In view of the steady growth in annual sales, Andy, the General Manager, is planning to open a flagship store in Tsim Sha Tsui in late 2021. Lucy, the Human Resources Manager, was concerned about the workload of the management team. She said, ‘I propose promoting one of the branch managers to senior manager to lead the operations of the flagship store.’ Andy, CEO, replied, ‘I think we should source suitable candidates for the post of senior manager via headhunters instead.’ (d) Explain two disadvantages of recruiting the senior manager externally instead of promotion-from-within (內 部晉升). (4 marks) Lower morale: - Lack of promotion will result in lack of motivation and sense of belonging. Employees will then look for another job. 4  Needs time to adapt the new environment: - The new senior manager needs time to adapt to the organizational culture and build up working relationship with existing staff. Time-consuming and Costly: - Extra time and cost are needed to recruit the manager externally as Tasty Company has to post job advertisements on recruitment websites or on other media such as newspapers. (e) Give one advantage of recruiting the senior manager via headhunter. (2 marks) Wider network: - The headhunter had a wide network, so it can seen seek more suitable applicants to fill the senior manager post easily. Provide professional advice: - The headhunter has the expertise in finding suitable candidates, for example how to screen out applicants by analysing their application letters in a more efficient way. 7. Identify the advantages and disadvantages of different job posting methods. Job Posting Method Advantages Disadvantages (External Recruitment) Advertising Popular among job seekers Receives many applications and employers from unsuitable candidates Wide coverage Relatively cost-effective Employee referral More confident about the May not be fair to other applicants applicants Lower cost for staff May raise concerns over orientation and training equal employment Easier for the new employee opportunity to adapt to the environment Employment Sufficient experts to help Relatively costly agencies locate suitable candidates Quality of candidates depends Provide extra professional on the abilities of hiring advice and services employment agencies 5  Professional institutions Provides the latest Recruitment information is information to members restricted to members only Higher chance of locating Not suitable for members who appropriate candidates want to shift careers Job fairs A quick and efficient way of Only suitable for entry-level linking job seekers and jobs which do not require employers rigorous assessment On-site initial screening and Not suitable for managerial interview are cost-effective roles and time-saving 8. List three methods to assess and evaluate job applicants.  Screening written applications  Test  Work sampling technique  Interview  Reference check  Medical examination 9. State three types of interviews techniques used by a company and state one condition for each type of technique. Panel interview In a panel interview, one interviewee is interviewed by an interviewer. When the interviewer wants to observe the candidates’ individual response, panel interview can be used. Group interview In a group interview, more than one interviewee (a group of interviewees) is interviewed by an interviewer When the interviewer wants to observe the candidates’ interaction with other applicants, group interview can be used. Stress interview In a stress interview, the interviewer asks the interviewee tough questions and requires immediate responses. When the interviewer wants to examine whether the candidates can perform well under stress, stress interview can be used. 6 10. List two advantages and two disadvantages of using interviews as a selection method. Advantages: Interviewer and interviewee can have direct face-to-face interaction Interview is a useful way to examine applicants’ communication skills Interview is useful to obtain additional information from applicants Disadvantages: Interview involves subjective evaluation Decisions made based on first impression Interviewers’ biases affect the selection decisions 11. HKDSE 2015 Q7c (4 marks) Explain two limitations of using interview as a means of choosing beauty consultants for beauty center. Unable to assess the technique skills: The technique skills of the applicants are more important for the job, but these cannot be easily reflected in an interview. Result of the interview is subjective: Interviewers may tend to recruit people who have similar personalities. As interviews involve subjective judgments, the applicants chosen may not be the most suitable one but the most favourable one. Difficult to set and apply standarised selection criteria: Interview may focus on the impression, so it is difficult to set and apply standarised selection criteria. 12. HKDSE 2016 Q8a Describe the advantages of hiring shop supervisor through internal recruitment. (8 marks) Enhance the morale and motivation of the employees: Internal recruitment makes employees work harder to compete for promotion chances. Promoted employees can get higher job satisfaction. Saves time and costs: Internal recruitment provides a simplified recruitment process. It makes use of readily available employees' record. Easier adaption for promoted employees: Employees are familiar with the working environment and culture of the company. They do not need extra time to get familiar with the company. 7 Better understanding of candidates: The company knows the background, strengths and weaknesses of current employees from their past performance. They are all immediately available to the company for considering the promotion. 13. Describe the disadvantages of hiring shop supervisor through internal recruitment. Create unhealthy competition: Internal recruitment creates unhealthy competition to employees. They may feel pressured to compete with each other and this can create conflict. Lower morale of unsuccessful employees: Unsuccessful employees may feel upset which lower their sense of belonging to the company. Limiting the choices: Internal recruitment may limit the choices of choosing a supervisor. The company does not have an opportunity to introduce new and innovative ideas and skills from outsiders. 14. Describe the advantages of hiring shop supervisor through external recruitment. Prevents unhealthy competition: External recruitment can prevent unhealthy competition and conflict to employees. They would feel less pressure because they do not need to compete with each other. Lower training costs: External candidates possess the necessary skills and knowledge, it can save the training costs to company. Introduce new and innovative ideas and skills: External recruitment opens up many opportunities to find experienced and highly-qualified and skilled candidates. They may also introduce new and innovative ideas and skills to the company. 15. Describe the disadvantages of hiring shop supervisor through external recruitment. Difficult to know the capability of external candidates: The company may employ a wrong person because it is difficult to know the capability of external candidates through an interview. Lower morale of existing employees: External recruitment can damage employee morale because current employees may feel this lessens their chances for promotion. 8 Higher staff turnover rate: Some employees may leave the company because they have no chance for promotion. Difficult to adapt to the corporate culture: The external candidate may not understand culture of the company. They may not able to adapt the working environment. Costly and time-consuming to locate the right candidates: External recruitment involves job posting, screening of the job application letters and selecting potential candidates for further assessment and interview. It takes longer time and is more costly to hire a right person. 16. HKDSE 2014 Q8a The retail industry in Hong Kong has been facing many challenges, including a shortage of salespersons and rising rentals. With reference to four human resources management functions, suggest ways in which jewellery retails can cope with the shortage of salespersons. (10 marks) Manpower planning: Jewellery retails can create an online shopping platform to reduce manpower need. Compensation: Jewellery retails can revise the total compensation package to make it more attractive, e.g. more breaks and annul leaves. Recruitment: Jewellery retails can open up more recruitment channels, such as use incentive to attract internal referrals. Performance management: Jewellery retails can set fair and clear performance standards to reduce turnover rate. Training and development: Jewellery retails can offer systematic training and attractive training allowance and set promising career development plan. Employee relations: Jewellery retails can maintain harmonious work relationship and build up a good employer brand. 9  Chapter 2 Performance Management 1. Describe three objectives of performance management. Evaluating employees’ performance: Performance management enables the managers to evaluate employees’ performance according to the company’s pre-set objectives and expected standards. Increasing employees’ awareness of company’s objectives and goals: Performance management gives employees an opportunity to better understand the company’s goals and objectives, and the latest developments in corporate strategies to perform better. Developing employees’ capabilities: Performance management allows managers to identify the strengths and weaknesses of the subordinates and carry out staff development activities, such as training, to develop employees’ capabilities. 2. HKDSE 2013 Q1 Briefly describe three uses of performance appraisal to a company. (6 marks) Evaluate employees' performance: A company needs to evaluate employees’ performance to make personnel decision, such as promotion, transfer and salary adjustment. Identify training needs of employees: Performance appraisal allows managers to identify the strengths and weaknesses of the subordinates and carry out staff development activities, such as training, to develop employees’ capabilities. Enhance employees’ understanding of the company’s goals: A company needs to enhance the employees’ understanding of the company’s goals, such improve their understanding on the performance standards and company's overall objectives. 10 3. HKDSE 2016 Q4 Briefly describe two objectives for a company of appraising the performance of its salesperson. Evaluate salespeople's performance: A company needs to evaluate salespeople's performance to make personnel decision, such as promotion, transfer and salary adjustment. Identify training needs of the salespeople: A company needs to identify training needs of the salespeople, such as enhance product knowledge and communication skills. Enhance salespeople’ understanding of the company’s goals: A company needs to enhance the salespeople’ understanding of the company’s goals, such improve their understanding on the performance standards and company's overall objectives. HKDSE 2021 Q1 Explain three objectives for an insurance company to conduct performance appraisal for its insurance agents. (6 marks) Evaluate employees' performance: An insurance company needs to evaluate the agents’ performance to make personnel decision, such as promotion and salary adjustment. Identify training needs of employees: Performance appraisal allows an insurance company to identify the strengths and weaknesses of the agents and carry out staff development activities, such as training, to improve selling techniques. Enhance insurance agents’ understanding of the company’s goals: An insurance company needs to enhance the agents’ understanding of the company’s goals, such improve their understanding on the performance standards and company's overall objectives. 4. HKDSE 2020 Q3 After conducting the performance appraisal for its salespersons, a shop selling sportwear decided to promote a junior salesperson to a senior post. Describe the steps in the performance appraisal process before making the promotion decision. (6 marks) Step 1: Set the performance standards and communication with salesperson Manager needs to set the performance standards and communicate with the salesperson. The performance standards need to be specific, time-bound, measurable, challenging but still attainable. Examples: Quantity of sportswear sold and number of complaints 11  Step 2: Measure actual performance of the salesperson and compare with performance standard Managers can measure and record the salesperson’s performance and make comparison between expected and actual performance. Example, Employer record the monthly amount made by the salesperson regularly. Step 3: Conduct appraisal interviews to provide feedback on appraisal results Employer organise a meeting with the salesperson and provide feedback based on the salesperson’s performance. Then the employer will decide and implement necessary personnel decisions, which is the promotion decision in this case. (2 marks for each relevant step in correct sequence) 5. HKDSE 2018 Q8b (a) Illustrate the steps in conducting a performance appraisal for the course instructors in a language learning centre. (12 marks) Step 1 Identifying and formulating clear and measurable performance goals (1m) Manager needs to set the aim of appraisal and performance standards and communicate with the appraisee. (1m) For example, the manager and appraisee can agree on the performance standard like a certain percentage increase in student enrollment, a certain decrease in student complaints or an increased number of praises received from students. (1m) Step 2 Measuring performance (performance appraisal) and monitoring goal achievement (1m) Managers can measure and record the appraisee’s performance and make comparison between expected and actual performance. (1m) For example, manger can observe the appraisee’s lesson and collect some data, such as views from students and enrolment figures, to make comparison between the expected and actual performance. (1m) Step 3 Providing feedback to employees (1m) Managers need to meet with the appraisee and provide feedback on the results of the performance appraisal. (1m) For example: Manager can conduct a meeting with the appraisee to provide instructions, recognise excellent performance, correct poor performance, identify barriers to performance and listen to the apprisee’s concerns and comments. (1m) Step 4 Making Human Resources Management (HRM) decisions based on performance appraisal (1m) Based on the performance appraisal, managers can reward the appraisal who have satisfactorily and superior performances and provide training to their subordinators who underperforming performance. (1m) For example: Manager’s decisions may include granting a bonus, salary increase, promotion, transfer and provision of further training and development, etc. (1m) 12 6. Michael has just been appointed as the human resources manager of Planet Coach Company. Planet Coach Company provides coach-for-hire services for companies and schools. Planet Coach Company now employs 200 drivers. Michael is thinking about managing the drivers’ performance. He believes that this can develop a pool of quality employees for the company. Explain the performance management process Michael should go through to evaluate the performance of the drivers. (12 marks) Step 1 Identifying and formulating clear and measurable performance goals (1 mark) Managers need to set specific, appropriate and measurable performance standards and communicate clearly to employees about the performance goals at least once a year. (1 mark) For example, Michael can engage in a performance management planning discussion to: 1 review the job description of the drivers 2 establish performance standards (e.g., punctuality percentage per year) for drivers 3 decide on how to communicate to the drivers their performance 4 discuss what training and development the drivers need in order to improve their performance (1 mark) Step 2 Measuring performance (performance appraisal) and monitoring goal achievement (1 mark) Managers conduct a performance appraisal to measure employees’ performance against the performance standard. (1 mark) For example: Michael may also refer to various sources to supplement the evaluation. These sources may include: 1 A self-evaluating report from the driver 2 Views from the drivers’ peers 3 Views from passengers (1 mark) Step 3 Providing feedback to employees (1 mark) Managers need to coach the employees and provide feedback on the results of a performance appraisal. For example: Michael then coaches the drivers by offering feedback on their performance as follows. 1 providing instructions 2 providing encouragement 3 correcting poor performance 4 recognising excellent performance 5 listening to the drivers’ concerns and comments 6 identifying barriers to performance (1 mark) 13 Step 4 Making HRM decisions based on performance appraisal (1 mark) Based on the performance appraisal, mangers can reward their subordinators who have satisfactorily and superior performances and provide training to their subordinators who underperforming performance. (1 mark) For example: Michael’s decisions may include granting a bonus, salary increase, promotion, transfer and provision of further training and development, etc. (1 mark) 7. HKDSE 2014 Q6 Greenland is a major wholesaler in Hong Kong which sells bedding products to department stores and specific stores. At a regular meeting, Ricky, the Marketing Manager, said,' Since we are facing keen competition, we have to put in more effort to keep a close and long-term relationship with retailers so that our business can be maintained. We should devise some measures to encourage retailers to carry more of our products.' b) Explain two performance appraisal methods that can be adopted by Greenland to assess the performance of the merchandisers (retailers). (4 marks) Critical incident: Greenland can record events of effective work behaviour or serious mistakes of the merchandisers. Management by objectives: Greenland can set targets by merchandiser and his/her superior together, and evaluate against the target performance and actual performance after a certain period. Graphic rating scale: Greenland can evaluate different levels of performance according to certain attributes or characteristics (e.g. cooperativeness). Ranking: Greenland can rank the merchandisers performance, such as work productivity, service quality and sales performance. 14  Chapter 3 Reward Management 1. Explain different forms of compensation (remuneration) and give examples for each of them. Monetary rewards (金錢獎勵): - Monetary rewards are money-based compensation packages given to employees as a reward for their work. They can be classified into time-based pay and performance-based pay. - Time-based pay refers to the rewards paid on a regular basis for the services provided by the employees for a specific period of time, i.e. basic salary. - Performance-based pay refers to the rewards that directly link an employee’s job performance with pay, such as piece rate, merit pay, commission, bonus, stock option, profit sharing. Non-monetary rewards (非金錢獎勵): - Non-monetary rewards can be regarded as benefits given to employees that are not in the form of cash to signify employees’ contributions. - Examples: Paid time off (such as annual leaves and sick leaves), protection scheme (such as insurance benefits and retirement benefits) and personal services (such as training subsidies and flexible work hours). 2. Compare the characteristics of monetary and non-monetary rewards. Monetary rewards Non-monetary rewards Measurable and comparable Monetary rewards are measurable Non-monetary rewards are not and comparable. measurable and difficult to compare. Goal-specific Monetary rewards are linked to Non-monetary rewards are not employee’s performance. linked to employee’s performance. Welcome by employees Employees always welcome The importance of non-monetary monetary rewards rewards varies among different people. Different non-monetary rewards may have different degrees of motivation to different employees. 15 3. HKDSE 2013 Q8b Suggest three types of monetary compensation methods with a company could adopt to motivate its employees to perform better. (6 marks) Base salary (Basic salary): Base salary is a fixed amount of money paid to an employee by an employer in return for work performed for a specific period of time. Commission: Commission is a payment on performance, which is usually paid as a percentage of the sales revenue generated. Bonus: Bonus is a one-off reward paid to managerial staff once a year. The amount of bonus is according to the amount of profits made by the company. Merit pay: Merit pay is a salary increase awarded to employees based on their performance. Profit-sharing: Profit sharing refers to an incentive reward in which employees are entitled to share the profits of the company. Stock option: A stock option gives employees the right to buy the shares of the company at a pre-determined price by a specific date. 4. HKDSE 2019 Q4 Suggest one form of performance-based pay that the firm could introduce. (2 marks) Commission: Commission is usually calculated based on sales revenue to motivate salespersons. Bonus: Bonus is a one-off reward paid to managerial staff once a year. The amount of bonus is according to the amount of profits made by the company. Merit pay: Merit pay is a salary increase awarded to employees based on their performance. 16 5. HKDSE 2015 Q6d Suggest four types of non-monetary rewards that a company could give to its salespeople. (4 marks)  Recognition programmes, e.g. best salesperson award  More training and development opportunities  more job autonomy  better welfare  verbal appreciation 6. State the advantages and disadvantages of using piece rate. Advantages - Piece rate is easy for employees to understand. - It is usually seen to be fair by employees. - It is a strong motivator as piece rate provides rewards which are proportionate to performance. Disadvantages - Employees have a tendency to focus on output quantity rather than quality. - Employees resist the switching of jobs and the change in technology as they will lower the employee’s output quantity and income. 7. State the advantages and disadvantages of using merit pay. Advantages - As merit pay is based on individual merit, it motivates people to perform well. - It helps employees focus on areas for improvements. Disadvantages - If supervisors give merit pay to all staff, it will reduce its motivational effectiveness. - Employees may perceive merit pay as unfair if they think the appraisal system is inequitable. - Failure in getting merit pay will be demoralising if almost all employees receive it. 8. State the advantages and disadvantages of using commission. Advantages - Commission is easy to compute and understand (i.e. the percentage x sales revenue). - It provides greater motivation to employees as better performance means higher commission. - It can attract high caliber people to the company as they are compensated according to their accomplishment. 17 Disadvantages - Salespeople may only concentrate on selling higher-priced products to make more commission. - Employees may feel insecure as their income may fluctuate and be unstable. - Employees may perceive the calculation of commission as unfair if they are assigned to sell ‘hard-to-sell’ products. 9. State the advantages and disadvantages of using bonus. Advantages - As a bonus is linked to performance, it helps motivate employees to achieve corporate goals. - A bonus is not guaranteed and is payable when the company is financially viable. This increases the flexibility of the company in terms of financial consideration. Disadvantage - The difference in the assessment criteria of different departments may lead to unfair appraisal results across the company, which in turn results in an unfair bonus system. 10. State the advantages and disadvantages of using stock options. Advantages - Stock options can effectively attract and retain talented employees. - It can motivate employees in the long term as employees can exercise their right to buy the shares within a certain period of time. Disadvantages - Stock options may not motivate employees if the share price of the company drops a lot. - Employees may not be able to exercise the right until the end of the lock-up period. - If an employee leaves the company during the lock-up period, the stock options are usually forfeited. 11. State the advantages and disadvantages of using profit sharing. Advantages - Profit sharing aligns employees’ interests with that of the company. It allows the employees to share the success of the company. - It is flexible. The company can share less or not share any profit with the employees if it is not performing well. 18 Disadvantages - The motivational power on individual employees may not be effective as every employee will share the same amount of profit. - The time difference between realisation of company’s profit and reward can be lengthy because employees are not rewarded at regular intervals. 12. Compare the characteristics of time-based pay and performance-based pay: Characteristic Time-based pay Performance-based pay Compensation Based on a specific period of time Based on employees’ job performance (employees’ length of service) Payment frequency Usually on a regular basis: daily, Irregular or regular, but not as frequent weekly or monthly as time-based pay Motivational impact Less effective in motivating staff’s Strong direct motivation performance Employee’s financial Higher because of fixed pay Lower stability Fairness Not fair to hard-working employees Fairer to hard-working employees Achievement of Effective in achieving the company’s Focuses on short-term performance company’s goals long-term goals targets 13. List the advantages and disadvantages of time-based pay (i.e. monetary rewards: basic salary/base salary). Advantages: - Base salary provides a stable income for the employees. - It is the most important form of compensation used to attract and retain employees. - It is direct and simple to administer. It saves the costs of managing the compensation system. Disadvantages: - Base salary is fixed regardless of the performance of the employees. - Lack of motivation for the more productive employees. - Lowers the flexibility of the compensation system 19 14. List the advantages and disadvantages of performance-based pay. (i.e. monetary rewards: commission, bonus, merit paid, profit sharing and share option). Advantages: - Performance-based pay is linked with individual performance. It motivates people to perform well. - It can attract high caliber people to the company as they are compensated according to their performance. - It can effectively attract and retain talented employees. Disadvantages: - Employees may feel insecure as their income may fluctuate and be unstable. - Employees may perceive performance-based pay as unfair if they think the appraisal system or amount of performance-based pay is inequitable. 15. What are the advantages of monetary compensation over non-monetary compensation? Stronger motivational power: Direct compensation links the amount of effort employees put in with the amount of rewards they receive (especially for performance-based pay). This direct linkage provides strong motivation for employees to work hard. Greater flexibility: Direct compensation is often paid in cash. Employees can use the cash income to buy whatever they want. This flexibility avoids the problem of providing benefits that employees may not be able to enjoy. 16. Suggest and explain one form of monetary compensation to the following occupations. (i) a construction worker (ii) a sales person (i) A construction worker: Base salary Reasons: - Not Easy to measure the performance: The performance of a construction worker is based on team work, so it is not easy to measure an individual performance - Stable job content: A construction job is not challenge. It is usually controllable, routine and predictable. 20 (ii) A sales person: Commission Reasons: - Easy to measure the performance: A Sales person’s performance is easy to measure. It is based on the sales achievement. - Unstable job content: A Sales person job is challenge. It always needs to meet customers and required a lot of outdoor work. 17. HKALE 2006 Q7 Suppose you are the human resources manager of a large trading company and have been asked to design the reward systems for salespersons and accounting clerks. (a) Compare the possible differences in these two reward systems. Salespersons Accounting clerks - Lower basic salary plus heavy use of commission - Essentially fixed salary, incentive pay is and bonuses in accordance with sales seldom used performance - Work environment is less rigid. (Outdoor and - Work environment is stable. (Indoor and flexible work hours) steady work hours) - Career opportunities are more clear (In - Promotion prospect is steady (In accordance accordance with sales performance); less job with personal professional qualifications); security higher job security - Work recognition through formal/tangible prizes - Work recognition is more implicit, e.g., words and awards of appreciation - Job duties are more challenging. (e.g., higher job - Job duties are stable and predictable. autonomy / completeness / meaningfulness) (b) Explain why the reward systems would differ. Salespersons Accountants Measurability of job performance salespersons’ performance is more It is not easy to quantify the work measurable in terms of of accounting clerks sales/orders achieved. Different skills required Salespersons have to cope with Accounting clerks require fewer different customers and more social, planning and controlling human interaction skills. 21  Different job content Sales jobs are sometimes outdoors; Clerical jobs are usually more the work environment is not stable stable, controllable, routine and and work predictable. schedule is flexible Individual differences Salespersons are generally more Accounting clerks are often less outgoing and ambitious sociable and tend to search for stability/predictability. 18. What is direct compensation? State two purposes of providing direct compensation to employees. Direct compensation means the normal wages and salaries. Purposes Attract and retain employees: Base salary provides a stable income for the employees. It can attract and retain employees. Save costs: Base salary is direct and simple to administer. It saves the costs of managing the compensation system. 19. HKDSE 2012 Q1 What is indirect compensation? State two purposes of providing indirect compensation to employees. (6 marks) Indirect compensation means the benefits other than normal wages and salaries (2m). Purposes Enhance employees' loyalty: Providing fringe benefits can enhance employees' loyalty and retain employees (1m). It will decrease the turnover rate (1m). Build an image as a good employer: Providing indirect compensation shows that the company concerns about its employees (1m). Therefore, a positive image of a socially responsible company can be established (1m). Satisfy employees' security and social needs: Providing indirect compensation can satisfy employees' needs, such as social and securities needs (1m). For example, insurance benefits make employees to feel more secure about their life and recreational activities allow employees to relax and socialise with other colleagues (1m). 22 20. HKALE 2005 Q3 Explain two advantages of using bonus and commission rather than merit paid to reward employees who perform well. Strong motivation to work harder: The amount of effort employees put in with the amount of bonus and commission they receive. It provides strong motivation for employees to work hard. Significant improvement for employees' performance: Bonus and commission has a stronger connection with the performance of employees. If a company offers a greater allowance, employees will have a significant improvement on their performances. 21. HKDSE 2018 Q6a Sun Fung Company is a fast-growing logistics firm which delivers packages of various sizes from the Mainland to Hong Kong. Patrick, the Managing Director, called a meeting to discuss changing the remuneration system and improving the operational efficiency of the company. Johnny, the Finance Manager, suggested, ‘I think that our staff belong to the Theory Y type. To motivate them, we should change the remuneration system by freezing their basic salary and introducing a bonus based on the company's annual accounting profit and the staff's performance appraisal results. Then, they will face more challenges and their income will be linked to the company's performance. They will earn more by performing better, which will lead to a win-win situation!’ Patrick wondered, ‘Are there any disadvantages of such a new system? Will our staff support this change?’ Rose, the Human Resources Manager, responded, ‘Don't worry! Our staff are positive, energetic and willing to take up responsibility. They will support the proposed change in the remuneration system. I am actually more concerned with another issue: the working environment is too harsh for some front line workers. Some of them even quit their job because of back injuries and muscle pain. We should find ways to deal with this problem.’ Patrick responded, 'I was inspired by a technology exhibition in Germany and I am planning to install robotic arms in the workplace which can help lift bulky packages and enhance worker efficiency. Johnny, have you conducted the appraisal of this project?’ Johnny reported, ‘The accounting rate of return of the project is estimated at 12%, which is higher than the company's required rate of return, and its net present value is -$100 000.’ Patrick asked, ‘The accounting rate of return is higher than the company's required rate of return, but the net present value is negative. Should we accept the project then? Any other non-financial factors that we should consider?" 23 (a) Explain three disadvantages of Johnny's proposal to change the remuneration system. (6 marks) Bias and errors in performance appraisal: (1m) Bonus is given based on performance appraisal of individual employees and profit of the company (1m). Bias and errors will lead to unfair bonus (1m). Unstable income and insecure for employees: (1m) Bonus is highly dependent on performance (1m). It may result in unstable income and make employees feel insecure. Affect sense of belonging: (1m) Salary freeze may affect employees’ sense of belonging if their earnings is unstable to catch up with inflation and the current price level (1m). 22. HKALE 2000 Q3 Some companies cannot motivate their employees even though commission has been used in calculating their wage. Explain two reasons for this situation. (4 marks) Unattractive reward: If the reward is not large enough, it cannot encourage employees to work harder. Measurement of performance is realistic: If the performance is based on team work, it will be very difficult to measure an individual's performance and the calculation of commission will be unfair. 23. Explain the purposes of providing benefits to employees. Enhancing employees’ loyalty: Attractive and considerate employee benefits help increase the loyalty and sense of belonging of employees to the company. They will be more willing to stay with the company. Attracting and retaining talented employees: Attractive and considerate employee benefits help to attract and retain high caliber professionals who demand a higher level of recognition. Improving employees’ well-being: A company can provide benefits, e.g., insurance which covers medical expenses and free medical checkups, to employees and their family members to enhance their psychological and physical well-being. 24 Achieving a more comprehensive compensation package: Companies often use benefits to supplement the shortfalls of monetary rewards. Employees receiving both monetary rewards and benefits tend to be more satisfied and motivated. 24. HKDSE 2017 Q7b An airline company is considering enhancing the fridge benefits 附加福利 of its employees. Illustrate with examples the purposes of providing fridge benefits to the employees of an airline company. (12 marks) Comply with legal requirement: Providing fringe benefits bound by certain laws and regulations (1m). For example, it is legal requirement to provide rests days, Mandatory Provident Fund and statutory holidays to employees (1m). Employees can sue their company if they do not provide rests days, Mandatory Provident Fund and statutory holidays to their employees (1m). Build an image as a good employer: Providing fringe benefits shows that the company concerns about its employees (1m). Therefore, a positive image of a socially responsible airline company can be established (1m) and customers are more likely choose the airline companies which demonstrate corporate social responsibilities (1m). Satisfy employees' security and social needs: Providing fringe benefits can satisfy employees' social and security needs. It can also be used to shortfalls of monetary rewards which help achieve a more comprehensive compensation package. (1m) For example, insurance benefits provide financial supports and makes employees to feel more secure about their life (1m). Organising recreational activities meet the social needs of employees. They allow employees to relax and socialise with other colleagues (1m). Enhance employees' loyalty: Providing fringe benefits can enhance employees' loyalty (1m) and retain employees (1m). Example: Airlines' staff discount and training subsidies (1m) 25  Chapter 4 Functions of Human Resources Management (Training and Development) 1. Explain the objectives of training and development. Improving the productivity of employees (1) Training and development can enhance the productivity of the employees. The improvement in staff skills will result in more outputs and better quality of work (1). Improving quality of services or product knowledge (1) Training and development increase the knowledge and experience of employees (1). It will lead to improvement of quality of services or products knowledge. Providing personal growth opportunities (1) Training and development can provide employees with opportunities for personal growth. It helps pave the way for possible promotion and career advancement (1). Improving employees’ morale (1) Training and development are used to improve the morale and motivation of employees. Increasing of morale, and motivation will lead to greater commitment by employees (1). Reducing accidents and errors (1) As employees are equipped with appropriate skills and attitudes, the number of accidents and errors will be lower. 2. HKDSE 2017 Q3 Outline three objectives of providing training to the drivers of a transportation company. (6 marks) Avoid accident: Providing training can improve driving skills and enhance safety consciousness. Improve the quality of service: Providing training can enhance drivers' communication skills and manners with customers. Improve efficiency: Providing training can equip drivers with better skills and techniques required. OR Improve efficiency: Providing training can make sure drivers are familiar with the routes, roads and traffic regulations. 26 3. HKDSE 2015 Q3 Explain three benefits to a company of providing orientation programmes to new employees. (6 marks) Enhance coordination of the company Orientation programmes can enhance new employees' understanding on company's corporate culture, values, policies and procedures. It will enhance the coordination of company. Better productivity and quality: Orientation programmes can enhance new employees' understanding on their work position, job requirements and expected performance. So, the productivity and quality will be better. Adapt to the new working environment quickly: As new employees can know more about the company and colleagues through the orientation, they will feel welcomed by the company and adapt to the new working environment quickly. Reduce turnover rate: Orientation programmes can enhance new employees' sense of belonging. It will raise the new employees' morale and reduce turnover rate. 4. HKDSE 2012 Q8a Training of front-line staff is important to banks. Describe the steps that a bank should take to perform its training function. (10 marks) Step 1: Identify training needs (1m) A bank should identify training needs for its front-line staff, e.g. unawareness of front-line staff on regulations of investment products. (1m) Step 2: Formulate training objectives and plan (1m) A bank should formulate training objectives and plan, e.g. update front-line staff on the latest regulations of investment products. (1m) Step 3: Design training programme (1m) A bank should design the most suitable training programme, e.g. in forms of workshops and on-line training kit. (1m) Step 4: Implement the training programme (1m) A bank should implement the training programme, e.g. require front-line staff to attend the training within s specific period of time. (1m) 27 Step 5: Evaluate the effectiveness of the training programme (1m) A bank should evaluate the effectiveness of the training programm, e.g. written test for front-line staff on the regulation of investment products. (1m) 5. HKDSE 2014 Q6 Greenland is a major wholesaler in Hong Kong which sells bedding products to department stores and specific stores. At a regular meeting, Ricky, the Marketing Manager, said,' Since we are facing keen competition, we have to put in more effort to keep a close and long-term relationship with retailers so that our business can be maintained. We should devise some measures to encourage retailers to carry more of our products.' c) Greenland has identified the training needs of its merchandisers. Describe three of the steps that it should take in the training process. (6 marks) Step 1: Set training objectives (1m) Greenland should set the training objectives to reflect the desired outcome, e.g. to enhance product knowledge and the ability to formulate. (1m) Step 2: Design and implement suitable training methods (1m) Greenland should design the most appropriate training methods, such as coaching, role-play or classroom training, and then implement the training programmes by qualified trainers. (1m) Step 3: Evaluation (1m) Greenland should ask trainers for continuous feedback and monitor changes in its employees' work behaviour so as to evaluate the usefulness of training programmes. (1m) 6. State two major modes of training and give examples to each of them. On-the-job training Example: Coaching, Job rotation, Apprenticeship training Off-the-job training Example: Classroom training, Programmed learning, Simulated training 28 7. Explain three types of on-the-job training. Coaching: Coaching refers to the training process in which coachee (the employer to be coached) is provided with experience, advice and guidance by the coach (a more senior staff member). Job rotation: Job rotation refers to the training process in which the trainees are assigned to different tasks or departments within the training period. Apprenticeship training: Apprenticeship refers to the training process in which combines classroom training and on-the-job training. 8. Explain three types of off-the-job training. Classroom training: Classroom training is conducted in a classroom in the form of a lecture. Programmed learning: Programmed learning is a training method with the purpose of managing learning by self-learning software Simulated training: Simulated training is performed through a virtual platform which is often done via a computerised medium. 9. HKDSE 2020 Q6d Sum Kee is a wholesaler of electronical appliances in Hong Kong. He will arrange off-the-job training for the salespersons next month. a) From the perspective of Sum Kee, explain two reasons for arranging off-the job training instead of on- the job training for salespersons. (4 marks) More systematic: Arranging off-the job training is more systematic to teach concepts, principles, and theories. Minimum disruption: Arranging off-the job training is less disruption to normal working environment by off-the job training. Less stressful: Arranging off-the job training is less stressful learning environment which can enhance learning effectiveness. 29 b) Suggest one off-the-job training methods for Sum Kee that could improve the performance of its salesperson. (2 marks) Lecturing/classroom training: e.g. to introduce product knowledge Programmed learning: e.g. self-learning via online platforms, books or videos Role play: e.g. enhancing communication skills to deal with customers’ complaints Case study: e.g. using case to illustrate the handing methods of different scenarios in the workplace 10. Cathay Pacific Airlines is planning to provide a training programme to its pilots to improve their safety procedures. Suggest three types of off-the-job trainings that Cathay Pacific Airlines can provide to its pilots. Classroom training: Representatives from the Hong Kong Civil Aviation Department can explain the latest rules of air traffic. Programmed learning: Pilots can learn meteorological knowledge by self-learning software. Simulated training: Pilots can learn to deal with air accidents inside a simulated aeroplane 模擬飛機. 11. HSBC employs many full-time and part-time tellers. State and explain two types of on-the-job trainings and off-the-job trainings provided by HSBC to its inexperienced new tellers. On the Job Trainings Coaching: Experienced tellers can coach and monitor inexperienced new tellers to provide advices and guidance about their work. Apprenticeship training: HKBC can provide a combined classroom training (e.g. lecturing) and on-the-job training (e.g.coaching) to inexperienced new tellers. Off-the-job Trainings Classroom training: HKBC can oragnise a training programme in a classroom in the form of a lecture. 30 Programmed learning: Inexperienced new tellers can learn the product knowledge and service quality by self-learning software. 12. State the advantages and disadvantages of coaching. Advantages - Coachees can get feedback and support from their supervisors immediately. - The skills and performance of the employees can be developed and improved quickly. Disadvantages - Trainers may not have the training skills to transfer what they know to the trainees. - Trainers may not have enough time to provide feedback to trainees. - If the trainers have developed bad work habits on safety, quality, customer service and relationships with management, the trainees may also learn these inappropriate traits. 13. State the advantages and disadvantages of job rotation. Advantages - Employees can have greater job satisfaction as the repetitive nature of the job is reduced. - Employees can broaden their skills and knowledge as they are exposed to various work tasks. - It gives greater flexibility to the supervisors to assign jobs among the staff. Disadvantages - It is difficult to have in-depth understanding about a particular role within a short period of time. - Employees may feel stressed and may not be willing to work in different departments. - It is costly to implement cross-training. 14. State the advantages and disadvantages of apprenticeship training. Advantages - Apprentices learn through a combination of classroom training and on-the-job training. They can learn both theoretical and practical skills. - Apprentices get a salary during their apprenticeship. 31  Disadvantages - Apprenticeship training is more costly, as both classroom and practical training are involved. - It takes longer to finish a formal course of study if the apprentice wants to acquire professional qualifications. - It has a more vocational focus. If the apprentice only wants to receive classroom training, an apprenticeship is not the best choice. 15. State the advantages and disadvantages of on-the-job training. Advantages Lower cost: On-the-job training does not require special equipment or the design of training materials. Real experience: On-the-job training focuses on the real tasks. This makes the training experiences relevant to the real situations. Immediate feedback: On-the-job training requires close supervision which enables trainees to get feedback from their supervisors immediately. Disadvantages Inconsistency: Passing on the knowledge and experience from the trainer is a personalised process. Training methods and priorities in skills to be transferred will differ. Incomplete: On-the-job training is often not well structured. Trainees may not be able to receive all the information about the job. Bad trainers: Trainees learn mainly through observation from the actions of the trainers. If the trainers have developed bad work habits, the trainees may also learn these inappropriate traits. 32 16. State the advantages of classroom training. Advantages - Training groups can vary according to training needs. - It is an economical way of training a large group of trainees. - The interaction among trainer and trainees can enhance learning. Disadvantages - Employees are away from their jobs, which may affect the work flow of on-going tasks. - It is difficult to locate a common time slot for all staff if they are on shift. - The classroom environment does not include the equipment used at work, so training is not hands-on. 17. State the advantages and disadvantages of programme learning. Advantages - Learners can work individually at their own pace. - Learners can learn at a time convenient to them. - Programmed learning tends to have a more structured curriculum than traditional teaching. Disadvantages - Preparation is more time-consuming and expensive. - It requires strong motivation from learners as they need to learn at their own pace. - The trainer needs to devote extra effort to motivate learners and monitor the progress of individual trainees. 18. State the advantages and disadvantages of simulated training. Advantages - It reduces the risk of accidents and damage to expensive equipment. - It ensures better utilisation of equipment by getting the equipment running for business instead of keeping it idle for training. - It provides accurate feedback results for performance assessment. 33  Disadvantages - Simulated training is not real. The actual situation, which may contain variations beyond the simulated environment. - The cost of acquiring and maintaining the simulated equipment can be high. 19. Sate the advantages and disadvantages of off-the-job training. Advantages A relaxed environment: A more relaxed environment helps employees learn more because they do not need to work while they are conducting the training. More updated information: The staff can learn the latest information and up-to-date skills and techniques. Greater access to different experts: As outside experts are asked to conduct the training, this means greater access to different experts. Networking opportunities: Employees are encouraged to build up their own network in the industry. Disadvantages High costs Some training programmes may require costly equipment and high-priced trainers. Concern over quality control There is no control over the quality of the trainers’ abilities. Different learning paces Trainees have to work with participants with a different learning speed. Level of attainment Some experienced trainees may find the training programmes not covered in enough depth. 34 20. HKALE 2004 Q7d Hong Kong Bank has recently discovered that some customer service officers are unable to deal with impolite customers. The Human Resources department is planning to hold a training programme and has decided not to use traditional classroom training but simulated training and coaching instead. In terms of training customer service officers, explain why simulated training and coaching are more effective than traditional classroom training. (6 marks) Simulated training allows the customer service officers to learn in a simulated working environment which is similar to reality (1m). Trainers can provide accurate feedback results for performance assessment (1m). Coaching allows the customer service officers to have immediate feedback and support from coaches (1m). The skills and performance of the customer service officers can be developed and improved quickly (1m). Classroom training only allows customer service officers to learn basic theories (1m). They may be unable to understand the real working environment (1m). 35  Chapter 5 Development of a Quality Workforce 1. Explain Maslow’s Hierarchy of Needs Theory. Lower Order Needs Physiological needs: Physiological needs refer to the basic needs that a human being needs to survive. Example: A company offer financial incentives, such as salary increases, cash bonuses, monetary allowances and leaves, to satisfy physiological needs. Safety needs: Safety needs refer to the needs for physical safety and stability, e.g., stability, order and the ease of control over the uncertainty and environment. Example: A company can offer benefits to reduce the risks perceived by employees, e.g., job security (permanent position), health insurance and retirement benefits. Higher Order Needs Social needs: Social needs refer to the need of having belongingness, friendship and interpersonal relationships. Example: A company can use human touch approaches, such as social events and birthday leave, to show care and concern. Esteem/Ego needs: Esteem needs refer to the process of developing positive feelings of self-esteem. It can be satisfied by being respected and recognised. Example: A company can use recognition approaches, e.g., praises, employee of the month, achievement awards, to recognise the contribution of the employees. Self-actualisation needs: Self-actualisation indicates that the employees realised his/her full potential, having fullfillment and personal growth. Example: A company can give employees challenging and achievable tasks to further develop their skills. 36 2. HKDSE 2017 Q5b Macro is the owner in the form of a sole proprietorship of eyewear retail chain, selling different brands of glasses. Currently the chain has 11 retail stores all over Hong Kong and has 30 administrative staff and 60 salespersons. John, the Human Resources Manager responded, ' I am pleased to know that the sales performance has improved. However, our recent staff appraisals show that many salespersons are not satisfied with their jobs. In fact, their salary level is higher than the market rate. We have also offered long term employment contracts and compensative benefits to them. We may need to find other ways to improve their morale.' With reference to Maslow's Hierarchy of Needs Theory, explain two levels of needs which Marco's retail chain may not currently satisfy for its salespersons. (4 marks) Social needs (1m): Social needs refer to the need of having belongingness, friendship and interpersonal relationships (1m). Macro's retain chain have never organised events allowing salespersons top socialise and gain belongingness to the company. Esteem/Ego needs (1m): Esteem needs refer to the process of developing positive feelings of self-esteem. It can be satisfied by being respected and recognised (1m). Macro's retain chain are lack of formal recognition of the employees' achievement by the company. Self-actualisation: Self-actualisation indicates that the employees realised his/her full potential, having fullfillment and personal growth (1m). Macro's retain chain may be lacking sufficient training to enhance employees; personal growth. 3. HKDSE 2020 Q8a The staff turnover rate of Pizza Hut has been quite high in recent months. Besides, a large number of complaints have been received from customers about a deterioration in service quality. Apply Maslow’s Hierarchy of Needs Theory, suggest ways to reduce the staff turnover rate of Pizza Hut. (10 marks) Level of needs Ways Physiological needs Offer reasonable salary and sufficient rest time Safety needs Offer safe working environment and longer term employment contract Social needs Organise social activities to enhance communication among colleagues Esteem/Ego needs Show appreciation, recognition and respect Self-actualisation needs Provide challenging jobs, career advancement and self-development opportunities 37 4. Explain Herzberg's Dual factor Theory. Herzberg’s Dual-factor Theory suggests that there are factors in the workplace that lead to job satisfaction and there are other sets of factors that lead to job dissatisfaction. Motivators factors lead to job satisfaction, such as challenging work, recognition, responsibility, achievement, advancement and personal growth. Hygiene factors prevent employees from dissatisfaction, such as company policies, supervisory practices, salary, job security, benefits, working environment and work relationships with colleagues. 5. HKDSE 2016 Q2 With reference to Herzberg's Dual factor Theory, suggest two factors that can lead to job satisfaction for designers in a fashion company. Illustrate your answer with an example of each. (4 marks) Recognition: Example: Appoint the designers to take part in designing competition Responsibility: Example: Empowerment, job autonomy, involvement in decision making Personal growth: Example: Provide workshops or seminars on creativity or latest fashion trends Work itself: Example: Assign challenging work Achievement: Example: Success in designing a new product line Advancement/promotion: Example: Promote to senior designers. 38 6. HKDSE 2019 Q6c and d Speedy Company is a fast-growing company which sells sports equipment and accessories in Hong Kong. Currently, the company has six retail stores and 40 staff. After reviewing the mid-year report of the company, Jeff, the General Manager, was disappointed with the performance of the company. He called an urgent meeting. Annie, the Human Resources Manager, said, ‘Our sales performance may be affected by the staff turnover. The staff turnover rate is at a record high this year. Recently, I talked to the staff who left the company. They appreciated the fact that we provided them with attractive remuneration and comfortable working environment. However, they complained that they had stayed in the same position for a long time and done the same job following rigid instructions. They felt bored.’ Jeff said, ‘We should look for ways to motivate the existing staff and fill the vacancies as soon as possible.’ Annie replied, ‘You are right. To fill the vacancies, we have recruited ten fresh graduates as sales trainees. We will provide training to them soon. Jeff asked, ‘Shall we provide on-the-job or off-the-job training to them?’ (c) In view of the complaints made by the staff who left the company, and with reference to Herzberg's Dual- factor Theory, (i) Explain why the staff of Speedy Company are not motivated by the attractive remuneration and comfortable working environment. (2 marks) Because attractive remuneration and comfortable working environment are hygiene factors, which could only prevent employees from feeling dissatisfaction, but could not lead to job satisfaction and motivation. (ii) Suggest two ways to motivate the staff of Speedy Company. (4 marks) - Offer promotion opportunities - Adjust job content to make it more interesting and challenging - Empowerment and job autonomy (d) (i) Suggest one on-the-job training method for the newly-recruited sales trainees. (1 mark) On-the-job training methods: Example: coaching, job rotation 39  (ii) Explain one advantage, from the perspective of the sales trainees, of receiving on-the-job training instead of off-the-job training. (2 marks) Trainees can receive immediate feedback for prompt improvement more relevant to the job and more practical. Example: Trainees can apply the knowledge and skills learnt from the training to their work HKDSE 2012 Q7 skyline Airways is a long-established listed company based in Hong Kong. The company has a wide network serving travellers all over the world. Over the last decades, the company has gained a reputation and its earnings were satisfactory. At a regular meeting, the Customer Relations Manager reported that there has been an increase in the number of customer complaints against crew members. The Human Resources Manager commented, "Our company policy and working conditions are among the best. The salary and welfare of the crew members have been improving, making our compensation companies more attractive than other airline companies. However, the supervisors tend to be conservative in appraising employees, so only a small number of crew members get promoted. This may affect their morale." a) From the perspective of human resources management, identify two possible adverse consequences of crew members' low morale to Skyline Airways. (4 marks) Higher turnover rate: Only a small number of crew members get promoted in Skyline Airways, so crew members find themselves lacking career prospect. They will then look for another job and it increases the turnover rate. Low morale: Lack of promotion will result in lack of motivation to work hard. This will lower service quality of crew members. b) With reference to Herzberg's Dual-Factor theory, suggest three ways to motivate the crew members of Skyline Airways. (6 marks) Recognition: Skyline Airways can give a certificate of excellent to crew members if they are able to attend work on time and serve the customer politely and promptly. Responsibility: Skyline Airways can make the job more interesting and challenging by adjusting the job content such as job enrichment and job rotation. 40 Growth: Skyline Airways can offer more training and development opportunities to crew members. It can increase sense of belonging of crew members. 7. Explain McGregor's Theory X and Theory Y and identify the strategies that employers should used to deal with the Theory X and Theory Y employees. McGregor’s Theory X and Theory Y identify two different approaches (Theory X and Theory Y) to managing people. Assumption Strategy Theory X Dislike work: Employees are mainly motivated by lower- People inherently dislike work, e.g. order needs. employees lack initiative. Managers use monetary rewards (financial Little ambition and avoid responsibility: incentives) to motivate Theory X employees. People have little ambition and try to avoid responsibility, e.g. employees needs to clear Managers need to closely supervise and instructions. monitor the Theory X employees. Prefer to be led: Managers rely heavily on punishment to People prefer to be led, e.g. employees needs monitor the performance of Theory X close supervision by employers. employees. Want stability and resist to change: People want stability and resist to change. e.g. employees needs to follow rigid rules. Theory Y Self-motivated: Employees are mainly motivated by Managers do not need to closely monitor higher-order needs, such as challenging employees as they are self-motivated, self- tasks. directed and self-controlled. Employers can give Theory Y employees Hard working: challenging and achievable tasks to further People are hardworking and consider work to develop their skills be a part of life and as natural as play and rest. Employers can give more autonomy to Theory Y employees to develop their Accept responsibility: potential. 41  People can be ambitious and accept or even seek responsibility Letting Theory Y employees participate in the decision-making process to develop their Capable employees: talent. People have problem-solving abilities and make creative decisions. HKDSE 2021 Q5d Sara Company is a well-known children's clothing manufacturer with more than 10 retail stores in Hong Kong. Recently, it has been planning to expand its business by manufacturing and selling toy cars. At the regular meeting, the Human Resources manager raised a concern about the morale of the salesperson. According to the company's employee survey results of the company, the salespeople are dissatisfied with the laissez-faire leadership style of their supervisors. They complained that they frequently had to handle tasks beyond their job scope and were disappointed that only certificates had been given for good performance. The CEO believed that salespeople belonged to the Theory X type and urged the Human Resources managers to find ways to improve their morale. (d) With reference to the characteristics of Theory X employees, suggest two ways to improve the morale of the salespeople. (4 marks) Characteristics of Theory X employees Ways to improve the morale of the salespeople Dislike work, avoid responsibility: Sara Company defines job duties and scope of salespeople clearly. Prefer to be led: Sara Company provides appropriate guidance and supervision to salespeople. Prefer monetary rewards: Sara Company increases the pay and fridge benefits of salespeople with good performance. 42 8. HKDSE 2013 Q8 Wing Hung is a locally-based department store chain established seventy years ago. Mr Richard Li, son of the founder, took over the business forty years ago. He is going to retire and plans to pass the business to his son, Raymond. He has asked Raymond to visit the stores and study the business. After the several store visits, Raymond reported his observation to Richard, "The employees lack initiative and their service quality fails to meet today's standard. It seems that they have to follow rigid rules in carrying out their duties." Richard responded," I do it his way on purpose. I believe the close supervision and motivation by money are the keys to our success. I pay them salaries at a higher rate than the market level. They are required to listen to my instructions and stick to the existing practices. You should follow my management style in order to successful." Raymond replied, "You may be right, maybe we can consider other monetary compensation methods to motivate our employees to perform better. We can also provide training to enhance their quality of service." a) With reference to McGregor's Theory X and Theory Y, state three assumptions that Richard holds in relation to managing his employees. Illustrate with example (6 Marks) Theory X Assumption Dislike work: People inherently dislike work, e.g. employees of Wing Hung lack initiative Little ambition and avoid responsibility: People have little ambition and try to avoid responsibility, e.g. employees of Wing Hung follow instructions. Prefer to be led: People prefer to be led, e.g. close supervision by Richard Want stability and resist to change: People want stability and resist to change. e.g. follow rigid rules 43 9. HKDSE 2015 Q6c With reference to two relevant assumptions of McGregor's Theory X and Theory Y, explain why strict control over the salesperson could make them work hard. (4 marks) Strict control over the salesperson (Theory X assumption) Dislike work: People inherently dislike work and need closely monitored. Little ambition and avoid responsibility: People have little ambition and try to avoid responsibility. They need rules and guidelines to make them work had. Prefer to be led: People have little ambition and need to be led. 10. HKDSE 2018 Q6b Sun Fung Company is a fast-growing logistics firm which delivers packages of various sizes from the Mainland to Hong Kong. Patrick, the Managing Director, called a meeting to discuss changing the remuneration system and improving the operational efficiency of the company. Johnny, the Finance Manager, suggested, ‘I think that our staff belong to the Theory Y type. To motivate them, we should change the remuneration system by freezing their basic salary and introducing a bonus based on the company's annual accounting profit and the staff's performance appraisal results. Then, they will face more challenges and their income will be linked to the company's performance. They will earn more by performing better, which will lead to a win-win situation!’ Patrick wondered, ‘Are there any disadvantages of such a new system? Will our staff support this change?’ Rose, the Human Resources Manager, responded, ‘Don't worry! Our staff are positive, energetic and willing to take up responsibility. They will support the proposed change in the remuneration system. I am actually more concerned with another issue: the working environment is too harsh for some front line workers. Some of them even quit their job because of back injuries and muscle pain. We should find ways to deal with this problem.’ Patrick responded, 'I was inspired by a technology exhibition in Germany and I am planning to install robotic arms in the workplace which can help lift bulky packages and enhance worker efficiency. Johnny, have you conducted the appraisal of this project?’ Johnny reported, ‘The accounting rate of return of the project is estimated at 12 %, which is higher than the company's required rate of return, and its net present value is -$100 000.’ 44 Patrick asked, ‘The accounting rate of return is higher than the company's required rate of return, but the net present value is negative. Should we accept the project then? Any other non-financial factors that we should consider?" (b) With reference to the assumptions of McGregor's Theory X and Theory Y, (i) give one piece of information from the case to support Johnny's view that the staff of Sun Fung (1 mark) The 4th paragraph: Rose, the Human Resources Manager, responded, ‘…Our staff are positive, energetic and willing to take up responsibility.’ (1m) (ii) suggest two other ways in which Sun Fung Company could motivate its staff. (4 marks) More autonomy (1m): Sun Fung Company can provide more opportunity to its staff in decision making processes (1m). More recognition (1m): Sun Fung Company can give verbal praise and awards to its staff (1m). More challenging tasks (1m): Sun Fung Company can give some challenging tasks to its staff, such as designing the route and schedule of delivery (1m). Provide training for personal development (1m): Sun Fung Company can provide training to its staff for personal development, e.g. enhancing communication skills to customers (1m). (Any two) 11. Explain the purposes of internal communication. Improving employee relations: Internal communication allows a better understanding between managers and subordinates. Transmitting information: Managers transmit information to employees and collect employees’ views and suggestions. Clarifying issues and points: Managers can clarify different issues to avoid misunderstanding and rumours. 45 Motivating employees: Managers can advertise the achievements of employees in an in-house company newsletter to build morale. Facilitating decision-making: Internal communication makes information flow more smoothly which allows employees to make faster and better decisions. 12. State two forms of communication channel Formal communication: Formal communication covers messages which conform to formal and established channels, such as professional rules, standards and processes. Informal communication: Informal communication is a casual form of information sharing, such as personal conversation through e-mail, SMS, phone calls and WhatsApp messages. 13. Explain the differences between downward, upward and lateral communications. Downward communication: Downward communication means that communication flows from upper levels to lower levels. For example: Managers use downward communication to disseminate information and give instructions and feedback to subordinates. Upward communication: Upward communication means that communication flows from lower levels to upper levels. For example: Subordinates use upward communication to report duties and express views or complaints about their jobs, working conditions, the company or corporate plans. Lateral/horizontal communication: Lateral/horizontal communication refers to communication among colleagues of the same level. For example: Production director and financial director discuss the budget for a new project. They want to facilitate information flow among them and achieve better coordination in work. 46 14. Identify which direction of communication the following methods of internal communication most possibly take: (a) Discussion of pay rises between heads of the Personnel Department and Finance Department (b) Work progress reported by the Marketing Manager to the Chief Executive Officer (c) Release of the latest news from head of the headquarters in the USA to the head of branch office in Hong Kong (d) Telephone call from the Deputy Manager of Branch A to the Deputy Manager of Branch B (a) Lateral communication (b) Upward communication (c) Downward communication (d) Lateral communication 15. Explain the purposes of having orientation programme, mentorship programme, social event, staff meeting, employee attitude survey. Orientation programme Purposes of orientation programme: - It introduces new employees to the  Assist new employees to adapt to the new working company and provides them with environment basic information.  Enable new employees to understand corporate procedures and policies  Provide opportunities for networking and team building with colleagues Mentorship programme Purposes of mentorship programme - A new or junior employee (mentee)  Develop employees’ skills and knowledge through is assigned to a more senior observation and feedback from mentor employee (mentor) to learn the  Understand more about the frustration and satisfaction skills and knowledge for work of the mentee from the mentor.  Facilitate change management through constant dialogues between mentor and mentee Social event Purposes of social event: - Employees meet up to network and  Enable greater friendship and networking within the make friends (e.g., hiking, picnic, company annual dinner and BBQ party).  Develop a sense of belonging  Improve operations through networking  Address staff’s social needs 47  Staff meeting Purposes of staff meeting: - A formal meeting to directly  Engage employees in decision-making process convey the company’s strategies,  Develop a sense of trust in leadership through open staff mission, vision, staff policies to meetings employees  Cultivate participative leadership for management Employee attitude survey Purposes employee attitude survey: - A survey carried out to collect  Understand employees’ attitudes, satisfaction and employees’ views and locate areas motivation of concern  Locate problems and take remedial action  Develop a culture of openness so that employees have a channel to voice their views and complaints 16. HKDSE 2018 Q3 Suggest three internal communication programmes that could enhance the employee relations of a large enterprise. (6 marks) Orientation programme: The company can have an orientation programme for new staff members (1m). This helps employees have a better understand on the company’s culture and policy and their job functions (1m). Mentorship programme: The company can have a mentorship programme across departments or in the same department (1m). This allows mentors and mentees to experience, share and learn from each other's gifts and talents (1m). Regular staff meetings: The company can have a regular staff meeting with its employees (1m). This allow the mangers to inform and update the latest or new information to its staff. Staff can also collaborate as a team by providing feedback, sharing ideas and asking questions in the meeting (1m). Social gatherings: Organize more social events: The company can organize more social gatherings among its employees, such as annual dinner, BBQ and oversea trip (1m). This help employees develop closer non-work-related relations among themselves (1m). 48 17. HKDSE 2020 5e Suggest two internal communication programmes that could help the new waiters to adapt to the working environment. (4 marks) Mentorship Programmes: Mentorship Programmes help the new waiters to learn the skills and knowledge for work from the mentor. Introduction Programmes/Orientation Programme: Introduction programmes assists new waiters to adapt to the new working environment by providing basic information of the company. Social Gatherings: Social gatherings enable greater friendship and networking within the company. 18. HKDSE 2016 Q8b With reference to the functions of human resources management, suggest support measures that a fast food chain could provide employees with mild mental and physical disabilities. (12 marks) Staffing and placement (1m): A fast food chain should assign jobs and duties according to staff's abilities (1m). The level of disabilities should be considered to provide them a safe working/training environment in the fast food shop (1m). Training and development (1m): A fast food chain should provide tailor-made training programmes to the employees with mild mental and physical disabilities (1m). The training programmes need both actual knowledge and practical training to enable the employees to get used to work (1m). Performance appraisal (1m): A fast food chain should set realistic performance standards to the employees with mild mental and physical disabilities (1m). They should appraise differently to show the company is supportive (1m). Compensation and benefit management (1m): A fast food chain should provide more indirect compensation to the employees with mild mental and physical disabilities, such as medical plan and paid leaves (1m). In addition, special arrangement of their working shift and allowance on medical fees should be given (1m). Managing relations and motivation (1m): A fast food chain should be sensitive to the needs and feelings of the employees with mild mental and physical disabilities (1m). This can avoid discrimination and create a harmonious working environment (1m). 49 HKDSE 2021 Q7 Sunshine Fitness operates many fitness centres in Hong Kong and hires a large number of trainers. In view of the recent economic downturn, the company is finding ways to deal with the surplus of trainers, and enhance its customer relationship management. (a) With reference to human resources management functions, suggest ways in which Sunshine Fitness can deal with the surplus of trainers. (12 marks) Manpower planning: - Human resources department reviews the demand for workers and formulate appropriate actions. Staffing and placement: - Human resources department stops recruitment and assign trainers to other centres according to their skills and experience. Besides, it can ask full-time trainers to work part-time. Training: - Human resources department provides training according to job re-assignments, such as kickboxing. Performance appraisal: - Human resources department reviews the performance appraisal reports of trainers and lay off those with poor performance. Compensation and benefits: - Human resources department revises the total compensatio