ACCA 1.3 MANAGING PEOPLE Session 8
Session 8
Motivation and Leadership
1Introduction
1.1Definition
Motivation is the urge to achieve goals, the drive to excel. It is concerned with why people choose to do one thing rather than another and with the amount of effort or intensity of action that people put into their activities.
Motivation is a process that arouses, sustains and regulates behaviour toward a specific goal or end.
Motivation is influenced by
•Values
•Beliefs
•Attitudes
•Needs
•Goals
2Classical Theories
2.1McGregor
McGregor suggested that managers employ a rule of thumb to help them interpret employee behaviour.
Theory X – people dislike work and responsibility. They cannot be trusted so they must be coerced and manipulated and value security above everything.
Theory Y – people value work as a source of satisfaction and welcome responsibility. They can achieve objectives by exercising self direction and self control.
2.2Maslow
Each individual has a set of needs become can be arranged in a hierarchy (as above). The lowest needs must be satisfied first. Only then do the next become available for management manipulation.
2.3Herzberg
Herzberg’s needs based theory identified two sets of factors on the basis that they ‘motivate’ in different ways.
•Hygiene factors – are based on a need to avoid unpleasantness. They do not provide any long term motivating power. Hygiene factors can include pay, perks etc.
•Motivator factors – satisfy a need for personal growth, and so include recognition, interesting work and status.
In order to motivate the workforce management must avoid dissatisfaction and put in place motivators to encourage the staff.
To avoid dissatisfaction there should be:
•Policies and procedures for staff treatment
•Suitable level and quality of supervision
•Pleasant physical and working conditions
•Appropriate level of salary and status for the job
•Team working
Motivator factors will be:
•Sense of accomplishment (achievement) through setting targets
•Recognition of good work
•Increasing levels of responsibility
•Career advancement
•Attraction of the job
Question 1
Absenteeism and low moral are apparent in the accounting department. The manager of the department has heard of Maslow’s hierarchy of needs theory. However, she is also aware that although the theory has some relevance to motivational techniques, it has substantial limitations.
Required
a)Explain Maslow’s hierarchy of needs theory (10 marks)
b)Describe the weaknesses of this theory (5 marks)
(15 marks)
Answer Plan
Question 2
All organizations have goals. These can only be achieved through the efforts of motivated individuals; understanding motivation leads to organizational success.
Required
a)Discuss the above with reference to Herzberg’s theory of motivation (4 marks)
b)Explain what is meant by the following terms:
i)Hygiene factors (4 marks)
ii)Motivator factors (4 marks)
c)Discuss the strengths and weaknesses of Herzberg’s approach (3 marks)
(15 marks)
Answer Plan
3Modern theories
3.1McClelland
Mcclelland emphasized three fundamental needs as motivators:
Achievement -this is the need to attain something. Different individuals want achieve things that have different chances of success.
Affiliation - there is a need to develop interpersonal relationships on a friendly basis.
Power – there is a need to influence others and lead them into behaving in a way in which they would not normally behave.
3.2Argyle
Argyle identified the following motivational ‘drives’:
•Biological drives – e.g. hunger, thirst
•Dependency – e.g. assistance, guidance and counseling from others
•Affiliation need – e.g. the need to socialize
•Dominance – e.g. the need to achieve influence and control over other people
•Aggression – e.g. the need to cause harm to other people
•Self esteem – e.g. need to be well thought of
•Other – e.g. achievement, money
Individuals are affected differently by each one.
3.3Adams
Adams proposed that negative or positive ‘inequities’ are motivational forces.
Inequities exist where people feel that the rewards obtained for their efforts are unequal to those received by others.
Where people sense inequities in their work they will act to restore a sense of equality by:
•Changing work inputs
•Changing rewards received
•Leaving the situation
•Changing the comparison points
•Psychologically distorting the comparisons
It is the employees interpretation of the situation that is important.
3.4Vroom
Expectancy models of motivation recognize that people will act only when they have a reasonable expectation that their actions will lead to desired goals. They will perform better if they believe that money will follow effective performance.
The strength or ‘force’ of motivation is product of how much an individual wants something, reflecting preference and priority in personal goals (the reward value or valence), and expectancy (estimate of the probability that a certain action will secure it).
So that V x E = F:
Valence x expectancy = force (motivation)
An individual’s performance is the result of a number of factors
•Perceptions about the situation
•The worker’s place in the organization (their role)
•Characteristics including skills, personality, training and so on
The main perceptions that possibly affect effort include the importance and the availability of the attractive rewards, plus thinking that effort will lead to effective performance and that effective performance will lead to the rewards.
The nature of the rewards may be intrinsic, such as the feeling of a job well done, or perhaps a feeling of personal growth. Extrinsic rewards are those generally in the control of the organization rather than the individual, such as promotion and pay.
3.5Handy
Handy argues that there are psychological contracts between individuals and the organizations to satisfy certain needs and in return they will expand some of their energies and talents.
Contracts can be classified as:
•Coercive – not freely entered into and is enforced by rule and punishment.
•Calculative – where control is maintained by management and expressed in terms of their ability to give the individual the things they desire.
•Co-operative – the individual identifies with the goals of the organization and in return receives just rewards, involvement in the selection of goals and the choice of the means to achieve those goals.
Question 3
Your manager believes that ‘ the only practical way to reward individuals is through their pay and their salary’. The organisation’s chief executive however takes the view that reward systems are more complicated and regards the above quotation as simplistic. Consequently, the chief executive has asked you to describe the following:
Required
a)What is meant by ‘intrinsic’ rewards. (3 marks)
b)What is meant by ‘extrinsic’ rewards. (3 marks)
c)List any ten types of extrinsic reward. (9 marks)
(15 marks)
Answer Plan
4Content and process theories
4.1Content
Content or need theories propose that motivational forces arrive from perceived needs.
Perceived Tension Activity Tension
Need (Motivating reduced
Force)
The work of Maslow, Herzberg and McClellan are all content theories.
4.2Process
Process theories are those which focus more on the goals and processes by which workers are motivated. Examples are Vroom’ expectancy theory and Adam’s equity theory.
5Motivating Staff
5.1Role of management
Managers responsibility for staff performance covers:
•Motivating – to achieve a high level of performance.
•Coaching – to develop staff’s ability for high level performance.
•Clarifying and enforcing – to help workers achieve the desired level of performance.
Staff with high levels of job satisfaction benefit the organization through:
•High loyalty
•Low staff turnover
•Better time keeping
•Better attendance
•High level of trust
5.2Schein and employee behaviour
Edgar Schien believed that successful motivation would depend on employees behaving in the way that managers thought they would. Schien suggested four ways in which people can behave:
•Rational economic man
•Social man
•Self actualizing man
•Complex man
5.3Job design
Designing rewarding jobs – the content of a job can be designed to make it more motivating to an employee.
Herzberg defines three ways that management can to attempt to improve staff satisfaction and motivation:
Job enrichment is a planned process to add challenges and responsibility to a job. For example, an employee may be given responsibility for additional areas outside his usual remit. This is sometimes referred to as ‘vertical job enlargement’.
Job enlargement involves widening the range of the job to move it away from a narrow specialism. Herzberg argues that this is not particularly motivating.
Job rotation may occur where there are a number of tasks to be completed by a team of workers. Rotating staff between enjoyable and unpleasant tasks increases motivation.
However motivation is not a simple cause and effect issue. The management of the effort-performance-reward-satisfaction system needs to be carefully planned.
Examiners' approach
Relevant to: Paper 1.3 Professional scheme
________________________________________
The aim of Paper 1.3 Managing People is to provide an introduction to managing people, work and organisations. The course is designed to develop candidates’ understanding and the application of social sciences to management, organisations and human resources.
Furthermore, the course develops knowledge and understanding of the techniques, processes and procedures which are required to ensure the efficient and effective use and deployment of human resources, and consequently to use the human resource to the fullest possible benefit of the organisation.
There are no pre-requisites for this paper, but candidates will be expected to demonstrate an understanding of the theory and issues involved in people management and to display appropriate explanatory and writing skills in answering the examination paper.
Managing People is a pre-requisite for paper 3.5 Strategic Business Planning and Development, in which many of the ideas introduced in this paper are developed further.
In particular, candidates must demonstrate the ability to:
•appreciate the relationship between theory and practice;
•identify, understand and explain the complex interpersonal relationships that exist within organisations;
•understand the nature, processes and procedures of people management;
•understand and demonstrate the need for clear and precise communication.
Paper 1.3 is not easy. It requires a great deal of learning coupled with the ability to assimilate ideas, understand them and apply them to ‘real world’ case study. In addition, candidates must be able to recognise and explain the need for, and differences between procedures, processes and the wider issues of management.
Paper Format and Assessment
Managing People is divided into five topics:
•Management and team development
•Recruitment and selection
•Training and development
•Motivation and leadership
•Communication practices.
All five topics are important and should be treated as a whole, not as five entirely separate matters. Candidates should be aware that although the course is made up of a number of discrete topics, examination questions often require a knowledge of more than one of these topics.
The Examination
The examination is a three hour paper constructed in two sections. The first section of the paper consists of a compulsory case study which draws on topics across the syllabus and is intended to test candidates ability to apply the ideas learned. This section is worth 40 Marks.
The second section consists of five questions and candidates should note that the answers must be presented in essay form. In general, there will be one question taken from each of the five topics in the syllabus noted above, but due to the interconnected nature of the syllabus, this will not necessarily always be the case. Each question carries fifteen marks and candidates are required to attempt four.
Candidates need to show an understanding of the detail of the topic and to differentiate between processes and procedures. There are no calculations involved.
Dr John Ball is Examiner for Paper 1.3
Examiners' feedback - June 2004
Relevant to: Paper 1.3 Professional scheme
________________________________________
There was a wide range of marks, with some poor performances, although these were offset with some candidates achieving very high marks. Although less so than in previous years - and I am pleased at this development - some answers were presented in a general form and indicated guesses and assumptions rather showing an understanding of the theory and practice of people management.
In a noted improvement on past examinations, fewer candidates gave the impression that they were not reading the question carefully enough, although this remains a problem. In the report for the December 2003 session, comment was made on candidates not taking careful enough note of the marks that appear alongside the question. For this session, this did not appear to be a problem.
This paper was a reasonable test of candidates' knowledge, testing many parts of the syllabus. Generally, the compulsory scenario question was particularly well-answered, Questions 3, 4 and 6 proved popular, while Questions 2 and 5 were the most unpopular. Answers were confused and irrelevant, especially in Question 2. Section A was, in general, answered well. Understanding the procedure, importance and application of the appraisal process - especially in professional organisations - is essential to managing people everywhere. In general, the examination book layout has improved, with fewer cases than in the past where questions followed one another without any obvious break or being broken up and scattered through the answer book.
In keeping with December's paper, the compulsory question appeared to have been less of a problem in terms of time allocation. In past papers, some candidates appeared to have spent too long on it and then rushed the remainder of the examination. Interestingly, there was a noticeable number of candidates who left the compulsory question until last, indicating that this particular scenario was perhaps less difficult than in past papers but that the second section was more challenging.
Section A
Question 1
This was not a difficult question and was designed to test candidates' knowledge of an important element in managing people in the professions and the procedures and usefulness of the appraisal process. It was generally answered well. Appraisal procedures, process, documentation and importance are well documented. The scenario was constructed and presented in a particular and deliberate manner to allow candidates the opportunity to display an understanding of the procedure, problems and challenges in actually operating the appraisal process.
However, in many cases there was a very general approach which displayed no real understanding which should not have been the case. The appraisal is an official, procedure-based activity, the approach to which is well-documented. Most successful candidates approached the question in the way required: identifying the main components, the importance of and the problems associated with appraisals and the necessary appropriate documentation. However, there were again some problems that should not have occurred. Some candidates continue re-writing parts of the scenario in their answers, which I have commented about before, although this was less of an issue in this session. In addition, some candidates presented the answer with report headings, or in memorandum format. Both these approaches waste time in writing the answer.
One aspect of all the answers across the different parts of the question was the assumption that appraisals always lead to, and are only concerned with, financial rewards. This is, of course, not the case. Although appraisals underpin performance-related pay, they do not necessarily lead to financial gain. In most cases, appraisals are not linked to financial reward, but simply form part of the organisation's normal approach to managing people.
The answer to part (a) of the question required an understanding of the main, basic and fundamental components on which the whole appraisal process is based. Many candidates answered this part correctly and obtained good marks, although those who did not score well in this initial part of the question generally scored poorly overall.
In general, part (b) was answered well, especially by candidates who had correctly answered part (a). However, some answers were confused between the benefits for the individual and the benefits for the organisation. These are well-documented and although there will be some overlap and joint benefits (improved motivation for example will benefit both), the benefits are different. Too few answers addressed the higher order uses of appraisals, especially in part (b)(ii), for example, which was on the role of appraisals in human resource planning.
Part (c) examined the main barriers to appraisals. These are well-documented and researched and the scenario was written deliberately for candidates to recognise these. Although answered quite well, some candidates failed to recognise the barriers and answered in very general terms.
In part (d), a number of answers showed a surprising lack of knowledge and did not identify the obvious documentation required for the appraisal interview. The first and obvious is the job description (too many suggested the job analysis which is inappropriate in this context), the human resource file etc. Too many answers focused on the type of questions to be asked, the layout of the interview room or interview techniques, showing little understanding of the importance of proper and appropriate documentation and of careful enough reading of the question. However, those answers that correctly identified the documentation scored well.
The three approaches to the appraisal interview are well-documented and many answers in part (e) earned good marks. However, too many answers described measurement and methods of appraisal. This indicates insufficient care in reading the question.
Part (f) was well-answered but far too many answers referred to financial rewards as being an automatic outcome of the appraisal. An interesting number of answers suggested that among other things, one action to follow the appraisal interview was to arrange the salary or pay rise. Such a step is neither automatic nor part of many formal appraisal systems, indeed in appraisal systems linked to financial incentives, the opposite might well be the case.
Section B
Question 2
This was a very unpopular question. It was designed to test candidates' knowledge of a well-known and respected tool of management, that of management by objectives. Candidates either knew the answer or did not. Although this idea has been around for some time and appears at length in the literature, surprisingly few candidates were aware of this management idea. Most of the answers tended to be general in approach, showing no knowledge of the subject or introduced other writers such as Fayol, Waterman, Peters and others. However, those who did answer correctly scored good marks.
Question 3
This was a popular question and attracted some good answers. Selection tests are a useful instrument in people management, especially at the recruitment stage. However, too many answers in part (a) indicated either guesses or a fundamental misunderstanding of the differences between the four tests. Selection tests are deliberately constructed to test particular attributes, they are not all the same. Many successful candidates correctly described the purpose of the tests. However, a surprising proportion were confused at the differences. Too many answers addressed the question as if it were about interviews, some gave the same answer for all four tests and, in an indication of not reading the question, some confused the word attitude for aptitude.
In part (b), candidates who understood the differences in part (a) of the question scored well. There were, however, some general answers which failed to address this part of the question, with references to interview technique and issues such as using the correct room for the tests.
Question 4
This was a popular question, which attracted some good answers and good marks. Training is fundamental to any organisation and this question was designed to test candidates' awareness of the usefulness of training to different groups within the organisation and to different training methods.
Parts (a) and (b) were answered well with candidates providing good answers and showing awareness of the usefulness of training to the two different groups. Although there are common benefits from training to both employees and the organisation, they do differ. Too many answers failed to take notice of this and repeated the same benefits in both parts.
Most candidates who answered part (c) scored well, the three different types of training are well-known and recognised. However, a surprising number of candidates failed to recognise that computer-based training is not how to use a computer but its use as a training instrument.
Question 5
This question was devised to test candidates' knowledge of leadership and a particular contemporary approach to its understanding and practice. This was not a popular question.
Part (a) was not difficult and although good marks were earned, some answers indicated guesses rather than describing the important skills of leadership.
Part (b) was a straightforward question on a contemporary approach to leadership, that of action-centred leadership. As with Question 2, candidates who knew of this work scored well, and earned good marks.
Part (c) was again a straightforward question which led from part (b). Candidates who knew this work scored well.
Question 6
This question was designed to test candidates' understanding of the importance of rules and discipline in the workplace. This was a popular question and attracted good marks.
Part (a) was straightforward and attracted good answers. Most candidates correctly described what is meant by discipline and adherence to the rules. Some answers wrongly assumed that discipline is always about punishment.
Part (b) was again a straightforward question that earned good marks. Most candidates correctly described the two different approaches to discipline. Excellent examples of disciplinary situations were provided in part (c) and showed a good understanding of disciplinary matters. However, in a further display of lack of reading the question properly, too many answers described in detail disciplinary procedures and not situations.
Motivation and Leadership
1Introduction
1.1Definition
Motivation is the urge to achieve goals, the drive to excel. It is concerned with why people choose to do one thing rather than another and with the amount of effort or intensity of action that people put into their activities.
Motivation is a process that arouses, sustains and regulates behaviour toward a specific goal or end.
Motivation is influenced by
•Values
•Beliefs
•Attitudes
•Needs
•Goals
2Classical Theories
2.1McGregor
McGregor suggested that managers employ a rule of thumb to help them interpret employee behaviour.
Theory X – people dislike work and responsibility. They cannot be trusted so they must be coerced and manipulated and value security above everything.
Theory Y – people value work as a source of satisfaction and welcome responsibility. They can achieve objectives by exercising self direction and self control.
2.2Maslow
Each individual has a set of needs become can be arranged in a hierarchy (as above). The lowest needs must be satisfied first. Only then do the next become available for management manipulation.
2.3Herzberg
Herzberg’s needs based theory identified two sets of factors on the basis that they ‘motivate’ in different ways.
•Hygiene factors – are based on a need to avoid unpleasantness. They do not provide any long term motivating power. Hygiene factors can include pay, perks etc.
•Motivator factors – satisfy a need for personal growth, and so include recognition, interesting work and status.
In order to motivate the workforce management must avoid dissatisfaction and put in place motivators to encourage the staff.
To avoid dissatisfaction there should be:
•Policies and procedures for staff treatment
•Suitable level and quality of supervision
•Pleasant physical and working conditions
•Appropriate level of salary and status for the job
•Team working
Motivator factors will be:
•Sense of accomplishment (achievement) through setting targets
•Recognition of good work
•Increasing levels of responsibility
•Career advancement
•Attraction of the job
Question 1
Absenteeism and low moral are apparent in the accounting department. The manager of the department has heard of Maslow’s hierarchy of needs theory. However, she is also aware that although the theory has some relevance to motivational techniques, it has substantial limitations.
Required
a)Explain Maslow’s hierarchy of needs theory (10 marks)
b)Describe the weaknesses of this theory (5 marks)
(15 marks)
Answer Plan
Question 2
All organizations have goals. These can only be achieved through the efforts of motivated individuals; understanding motivation leads to organizational success.
Required
a)Discuss the above with reference to Herzberg’s theory of motivation (4 marks)
b)Explain what is meant by the following terms:
i)Hygiene factors (4 marks)
ii)Motivator factors (4 marks)
c)Discuss the strengths and weaknesses of Herzberg’s approach (3 marks)
(15 marks)
Answer Plan
3Modern theories
3.1McClelland
Mcclelland emphasized three fundamental needs as motivators:
Achievement -this is the need to attain something. Different individuals want achieve things that have different chances of success.
Affiliation - there is a need to develop interpersonal relationships on a friendly basis.
Power – there is a need to influence others and lead them into behaving in a way in which they would not normally behave.
3.2Argyle
Argyle identified the following motivational ‘drives’:
•Biological drives – e.g. hunger, thirst
•Dependency – e.g. assistance, guidance and counseling from others
•Affiliation need – e.g. the need to socialize
•Dominance – e.g. the need to achieve influence and control over other people
•Aggression – e.g. the need to cause harm to other people
•Self esteem – e.g. need to be well thought of
•Other – e.g. achievement, money
Individuals are affected differently by each one.
3.3Adams
Adams proposed that negative or positive ‘inequities’ are motivational forces.
Inequities exist where people feel that the rewards obtained for their efforts are unequal to those received by others.
Where people sense inequities in their work they will act to restore a sense of equality by:
•Changing work inputs
•Changing rewards received
•Leaving the situation
•Changing the comparison points
•Psychologically distorting the comparisons
It is the employees interpretation of the situation that is important.
3.4Vroom
Expectancy models of motivation recognize that people will act only when they have a reasonable expectation that their actions will lead to desired goals. They will perform better if they believe that money will follow effective performance.
The strength or ‘force’ of motivation is product of how much an individual wants something, reflecting preference and priority in personal goals (the reward value or valence), and expectancy (estimate of the probability that a certain action will secure it).
So that V x E = F:
Valence x expectancy = force (motivation)
An individual’s performance is the result of a number of factors
•Perceptions about the situation
•The worker’s place in the organization (their role)
•Characteristics including skills, personality, training and so on
The main perceptions that possibly affect effort include the importance and the availability of the attractive rewards, plus thinking that effort will lead to effective performance and that effective performance will lead to the rewards.
The nature of the rewards may be intrinsic, such as the feeling of a job well done, or perhaps a feeling of personal growth. Extrinsic rewards are those generally in the control of the organization rather than the individual, such as promotion and pay.
3.5Handy
Handy argues that there are psychological contracts between individuals and the organizations to satisfy certain needs and in return they will expand some of their energies and talents.
Contracts can be classified as:
•Coercive – not freely entered into and is enforced by rule and punishment.
•Calculative – where control is maintained by management and expressed in terms of their ability to give the individual the things they desire.
•Co-operative – the individual identifies with the goals of the organization and in return receives just rewards, involvement in the selection of goals and the choice of the means to achieve those goals.
Question 3
Your manager believes that ‘ the only practical way to reward individuals is through their pay and their salary’. The organisation’s chief executive however takes the view that reward systems are more complicated and regards the above quotation as simplistic. Consequently, the chief executive has asked you to describe the following:
Required
a)What is meant by ‘intrinsic’ rewards. (3 marks)
b)What is meant by ‘extrinsic’ rewards. (3 marks)
c)List any ten types of extrinsic reward. (9 marks)
(15 marks)
Answer Plan
4Content and process theories
4.1Content
Content or need theories propose that motivational forces arrive from perceived needs.
Perceived Tension Activity Tension
Need (Motivating reduced
Force)
The work of Maslow, Herzberg and McClellan are all content theories.
4.2Process
Process theories are those which focus more on the goals and processes by which workers are motivated. Examples are Vroom’ expectancy theory and Adam’s equity theory.
5Motivating Staff
5.1Role of management
Managers responsibility for staff performance covers:
•Motivating – to achieve a high level of performance.
•Coaching – to develop staff’s ability for high level performance.
•Clarifying and enforcing – to help workers achieve the desired level of performance.
Staff with high levels of job satisfaction benefit the organization through:
•High loyalty
•Low staff turnover
•Better time keeping
•Better attendance
•High level of trust
5.2Schein and employee behaviour
Edgar Schien believed that successful motivation would depend on employees behaving in the way that managers thought they would. Schien suggested four ways in which people can behave:
•Rational economic man
•Social man
•Self actualizing man
•Complex man
5.3Job design
Designing rewarding jobs – the content of a job can be designed to make it more motivating to an employee.
Herzberg defines three ways that management can to attempt to improve staff satisfaction and motivation:
Job enrichment is a planned process to add challenges and responsibility to a job. For example, an employee may be given responsibility for additional areas outside his usual remit. This is sometimes referred to as ‘vertical job enlargement’.
Job enlargement involves widening the range of the job to move it away from a narrow specialism. Herzberg argues that this is not particularly motivating.
Job rotation may occur where there are a number of tasks to be completed by a team of workers. Rotating staff between enjoyable and unpleasant tasks increases motivation.
However motivation is not a simple cause and effect issue. The management of the effort-performance-reward-satisfaction system needs to be carefully planned.
Examiners' approach
Relevant to: Paper 1.3 Professional scheme
________________________________________
The aim of Paper 1.3 Managing People is to provide an introduction to managing people, work and organisations. The course is designed to develop candidates’ understanding and the application of social sciences to management, organisations and human resources.
Furthermore, the course develops knowledge and understanding of the techniques, processes and procedures which are required to ensure the efficient and effective use and deployment of human resources, and consequently to use the human resource to the fullest possible benefit of the organisation.
There are no pre-requisites for this paper, but candidates will be expected to demonstrate an understanding of the theory and issues involved in people management and to display appropriate explanatory and writing skills in answering the examination paper.
Managing People is a pre-requisite for paper 3.5 Strategic Business Planning and Development, in which many of the ideas introduced in this paper are developed further.
In particular, candidates must demonstrate the ability to:
•appreciate the relationship between theory and practice;
•identify, understand and explain the complex interpersonal relationships that exist within organisations;
•understand the nature, processes and procedures of people management;
•understand and demonstrate the need for clear and precise communication.
Paper 1.3 is not easy. It requires a great deal of learning coupled with the ability to assimilate ideas, understand them and apply them to ‘real world’ case study. In addition, candidates must be able to recognise and explain the need for, and differences between procedures, processes and the wider issues of management.
Paper Format and Assessment
Managing People is divided into five topics:
•Management and team development
•Recruitment and selection
•Training and development
•Motivation and leadership
•Communication practices.
All five topics are important and should be treated as a whole, not as five entirely separate matters. Candidates should be aware that although the course is made up of a number of discrete topics, examination questions often require a knowledge of more than one of these topics.
The Examination
The examination is a three hour paper constructed in two sections. The first section of the paper consists of a compulsory case study which draws on topics across the syllabus and is intended to test candidates ability to apply the ideas learned. This section is worth 40 Marks.
The second section consists of five questions and candidates should note that the answers must be presented in essay form. In general, there will be one question taken from each of the five topics in the syllabus noted above, but due to the interconnected nature of the syllabus, this will not necessarily always be the case. Each question carries fifteen marks and candidates are required to attempt four.
Candidates need to show an understanding of the detail of the topic and to differentiate between processes and procedures. There are no calculations involved.
Dr John Ball is Examiner for Paper 1.3
Examiners' feedback - June 2004
Relevant to: Paper 1.3 Professional scheme
________________________________________
There was a wide range of marks, with some poor performances, although these were offset with some candidates achieving very high marks. Although less so than in previous years - and I am pleased at this development - some answers were presented in a general form and indicated guesses and assumptions rather showing an understanding of the theory and practice of people management.
In a noted improvement on past examinations, fewer candidates gave the impression that they were not reading the question carefully enough, although this remains a problem. In the report for the December 2003 session, comment was made on candidates not taking careful enough note of the marks that appear alongside the question. For this session, this did not appear to be a problem.
This paper was a reasonable test of candidates' knowledge, testing many parts of the syllabus. Generally, the compulsory scenario question was particularly well-answered, Questions 3, 4 and 6 proved popular, while Questions 2 and 5 were the most unpopular. Answers were confused and irrelevant, especially in Question 2. Section A was, in general, answered well. Understanding the procedure, importance and application of the appraisal process - especially in professional organisations - is essential to managing people everywhere. In general, the examination book layout has improved, with fewer cases than in the past where questions followed one another without any obvious break or being broken up and scattered through the answer book.
In keeping with December's paper, the compulsory question appeared to have been less of a problem in terms of time allocation. In past papers, some candidates appeared to have spent too long on it and then rushed the remainder of the examination. Interestingly, there was a noticeable number of candidates who left the compulsory question until last, indicating that this particular scenario was perhaps less difficult than in past papers but that the second section was more challenging.
Section A
Question 1
This was not a difficult question and was designed to test candidates' knowledge of an important element in managing people in the professions and the procedures and usefulness of the appraisal process. It was generally answered well. Appraisal procedures, process, documentation and importance are well documented. The scenario was constructed and presented in a particular and deliberate manner to allow candidates the opportunity to display an understanding of the procedure, problems and challenges in actually operating the appraisal process.
However, in many cases there was a very general approach which displayed no real understanding which should not have been the case. The appraisal is an official, procedure-based activity, the approach to which is well-documented. Most successful candidates approached the question in the way required: identifying the main components, the importance of and the problems associated with appraisals and the necessary appropriate documentation. However, there were again some problems that should not have occurred. Some candidates continue re-writing parts of the scenario in their answers, which I have commented about before, although this was less of an issue in this session. In addition, some candidates presented the answer with report headings, or in memorandum format. Both these approaches waste time in writing the answer.
One aspect of all the answers across the different parts of the question was the assumption that appraisals always lead to, and are only concerned with, financial rewards. This is, of course, not the case. Although appraisals underpin performance-related pay, they do not necessarily lead to financial gain. In most cases, appraisals are not linked to financial reward, but simply form part of the organisation's normal approach to managing people.
The answer to part (a) of the question required an understanding of the main, basic and fundamental components on which the whole appraisal process is based. Many candidates answered this part correctly and obtained good marks, although those who did not score well in this initial part of the question generally scored poorly overall.
In general, part (b) was answered well, especially by candidates who had correctly answered part (a). However, some answers were confused between the benefits for the individual and the benefits for the organisation. These are well-documented and although there will be some overlap and joint benefits (improved motivation for example will benefit both), the benefits are different. Too few answers addressed the higher order uses of appraisals, especially in part (b)(ii), for example, which was on the role of appraisals in human resource planning.
Part (c) examined the main barriers to appraisals. These are well-documented and researched and the scenario was written deliberately for candidates to recognise these. Although answered quite well, some candidates failed to recognise the barriers and answered in very general terms.
In part (d), a number of answers showed a surprising lack of knowledge and did not identify the obvious documentation required for the appraisal interview. The first and obvious is the job description (too many suggested the job analysis which is inappropriate in this context), the human resource file etc. Too many answers focused on the type of questions to be asked, the layout of the interview room or interview techniques, showing little understanding of the importance of proper and appropriate documentation and of careful enough reading of the question. However, those answers that correctly identified the documentation scored well.
The three approaches to the appraisal interview are well-documented and many answers in part (e) earned good marks. However, too many answers described measurement and methods of appraisal. This indicates insufficient care in reading the question.
Part (f) was well-answered but far too many answers referred to financial rewards as being an automatic outcome of the appraisal. An interesting number of answers suggested that among other things, one action to follow the appraisal interview was to arrange the salary or pay rise. Such a step is neither automatic nor part of many formal appraisal systems, indeed in appraisal systems linked to financial incentives, the opposite might well be the case.
Section B
Question 2
This was a very unpopular question. It was designed to test candidates' knowledge of a well-known and respected tool of management, that of management by objectives. Candidates either knew the answer or did not. Although this idea has been around for some time and appears at length in the literature, surprisingly few candidates were aware of this management idea. Most of the answers tended to be general in approach, showing no knowledge of the subject or introduced other writers such as Fayol, Waterman, Peters and others. However, those who did answer correctly scored good marks.
Question 3
This was a popular question and attracted some good answers. Selection tests are a useful instrument in people management, especially at the recruitment stage. However, too many answers in part (a) indicated either guesses or a fundamental misunderstanding of the differences between the four tests. Selection tests are deliberately constructed to test particular attributes, they are not all the same. Many successful candidates correctly described the purpose of the tests. However, a surprising proportion were confused at the differences. Too many answers addressed the question as if it were about interviews, some gave the same answer for all four tests and, in an indication of not reading the question, some confused the word attitude for aptitude.
In part (b), candidates who understood the differences in part (a) of the question scored well. There were, however, some general answers which failed to address this part of the question, with references to interview technique and issues such as using the correct room for the tests.
Question 4
This was a popular question, which attracted some good answers and good marks. Training is fundamental to any organisation and this question was designed to test candidates' awareness of the usefulness of training to different groups within the organisation and to different training methods.
Parts (a) and (b) were answered well with candidates providing good answers and showing awareness of the usefulness of training to the two different groups. Although there are common benefits from training to both employees and the organisation, they do differ. Too many answers failed to take notice of this and repeated the same benefits in both parts.
Most candidates who answered part (c) scored well, the three different types of training are well-known and recognised. However, a surprising number of candidates failed to recognise that computer-based training is not how to use a computer but its use as a training instrument.
Question 5
This question was devised to test candidates' knowledge of leadership and a particular contemporary approach to its understanding and practice. This was not a popular question.
Part (a) was not difficult and although good marks were earned, some answers indicated guesses rather than describing the important skills of leadership.
Part (b) was a straightforward question on a contemporary approach to leadership, that of action-centred leadership. As with Question 2, candidates who knew of this work scored well, and earned good marks.
Part (c) was again a straightforward question which led from part (b). Candidates who knew this work scored well.
Question 6
This question was designed to test candidates' understanding of the importance of rules and discipline in the workplace. This was a popular question and attracted good marks.
Part (a) was straightforward and attracted good answers. Most candidates correctly described what is meant by discipline and adherence to the rules. Some answers wrongly assumed that discipline is always about punishment.
Part (b) was again a straightforward question that earned good marks. Most candidates correctly described the two different approaches to discipline. Excellent examples of disciplinary situations were provided in part (c) and showed a good understanding of disciplinary matters. However, in a further display of lack of reading the question properly, too many answers described in detail disciplinary procedures and not situations.