The Association of Business Executives

QCF

Human Resource Development

Examiners Report

Unit Title:

Human Resource Development

Unit Code:

5HRD

QCF Level:

Date of
Examination:

6th December 2013

Structure of paper: Answer all three sections

Section A: Answer all four questions

Q1
Q2
Q3
Q4

16 marks
16 marks
16 marks
16 marks

Section B: Answer one question

Either Q5 or Q6

18 marks

Section C: Answer one question

Either Q7 or Q8

18 marks

Total marks available for the paper

100 marks

Introduction
The overall pass rate for this paper was disappointing. Many candidates who achieved a
pass had a result that was at the lower end of the 40-49% range. The proportion of
candidates that received a merit grade or above was small in comparison. In several of the
centres there were too many candidates who seemed to show very little knowledge and
understanding of all the learning outcomes and were very ill-prepared. One can only
speculate why this should be; these centres might want to investigate the possible reasons
that this is occurring in order to determine whether the situation can be remedied for the
future. Other centres had clearly worked hard to guide and prepare their candidates and
enjoyed a more positive result. A surprising number of candidates were unable to provide
adequate responses to Questions 1 and 3 these are the foundation and framework for the
entire subject and should be learned thoroughly. Questions 4 and 5 were based on concepts
that seemed unfamiliar to the majority of candidates and most of the answers offered were of
poor standard. Many candidates also had difficulty answering Question 7.
A number of candidates wrote very long, convoluted and complex sentences with no
punctuation. This sometimes undermined the impact of such answers and made assessing
such answers very difficult because the intended meaning was unclear. Similarly, there were
instances in which the structure of sentences failed to clearly convey the intended meaning.
Unfortunately, for these candidates the only remedy to overcome such barriers is more
concerted guidance and practice in writing English. As in previous sessions, the common
error of producing comments for which no marks were available at the expense of comments
for which marks were available was once again apparent. Candidates need to be aware that
some questions will require a definition or description of a concept in part (a) and application
of the concept in part (b). Students need practice doing this and think about each issue in
more depth. They must attempt to provide answers that are more than just descriptive to
earn good marks.

Section A
Question 1:
An organisation that invests in its human resources is usually engaged in the
processes of training and development. To the HR practitioner these terms convey
different meanings.
(a) Compare and contrast training and development, giving an example of each.
Suggested Answer:
Essentially, training tends to be short term, trainer-centred and operational in its focus,
whilst development is more trainee-centred and strategic in focus.
Training usually refers to the use of planned and systematic processes that are aimed at
enhancing the skill, knowledge and attitude of an individual in a particular task or job. These
processes are generally focused therefore, on the current demands of specific work roles.

They are usually short term in nature; the underlying objective being that the learning can be
immediately applied to the work role. Examples might be demonstrations or courses on
health and safety issues.
Development generally refers to formal and informal processes that are not job-specific, but
refer more to an individuals personal growth and fulfilment of their potential to take on
responsible and demanding roles in the future. The definition can also apply to work groups.
Some examples might be long-term courses, professional development logs, mentoring, etc.
(b) Discuss why some organisations are more concerned with training.
Suggested Answer:
Points discussed might include:
Downsizing in organisations and changes in technology have created operational
circumstances which now require new skill sets. Regular training sessions to update skills
in advances in the technology used may be required. Equally, downsizing has perhaps
enhanced the need for a multi-skilled workforce.
Production in some firms may be capital-intensive and staff employed are semi-skilled
and easily replaced with minimal learning and training required.
The focus may be based upon management philosophy. Some firms see labour as a
resource and a cost and only to be invested in as and when the need arises. The
structure of the organisation may be bureaucratic and employees are confined to specific
job roles.
Smaller organisations may have limited budgets, expertise and facilities and cannot
afford expensive and sophisticated development opportunities.
Many organisations adopt a short-term view of operations and profitability and argue that
training contributes more to organisation success and profits than development because
the outcomes are measureable.
Management in some organisations continue to fear that offering extensive learning
opportunities will make staff more marketable and able to demand better terms and
conditions, or encourage them leave to secure better terms with competing organisations.
Entire sectors in an industry may collectively take the view that development only serves
to raise the level of competition and the rewards for labour.
(c) Discuss why some organisations are more concerned with development.
Suggested Answer:
Points discussed might include:
Some take the view that every experience is a learning experience, particularly at work,
so learning should be nurtured and encouraged. As a consequence, there will be longerterm benefits for employees and the organisation as a whole.
The longer-term view of organisation growth and development inevitably encompasses
individual growth and development. Development processes are therefore more strategic
and assist in producing a highly competent workforce that provides a competitive edge.
By encouraging development, individuals are more prepared to take ownership of their

learning and learn how best they learn. Learning becomes more trainee and less trainercentred. Employees will find ways of enhancing their skills within the job and possibly
through indirect means. This may reduce the need for formal training sessions off the job.
Specific job training has become more the responsibility of line managers and can be
conducted on an informal and daily basis within a formal environment of development
and opportunistic learning. Some training requirements can also be satisfied using elearning methods, which allow for more investment in development processes.
A culture of development, it is argued, promotes creativity and innovation, enhanced
customer service and quality, improved cooperation and working relationships.
Development encourages workforce planning and objective setting and promotes the
integration of employee and organisation development.
Learning Outcome 1: Understand the role of human resource development within organisations.

Examiners Comments:
For part (a), some of the answers submitted were weak. Future candidates are advised to
develop a thorough understanding of the terms training, development and learning; as
knowledge of these concepts is essential because they are fundamental to the subject and
are the foundation for other concepts across the syllabus. Some candidates provided very
good answers and earned full marks, mainly because they had accounted for the
requirements of the question. The need to compare and contrast training and development
was often ignored, as was the need to provide examples of each. As a result, these answers
were awarded fewer marks. Both processes attempt to provide employees with knowledge
and skills; however, training is more job specific, generally short term, with detailed
objectives and prescribed outcomes; while development refers to processes that involve
broader and personalised learning and are generally continuous. Some examination of these
issues was needed for a distinctive answer.
For part (b), the reasons for organisations preferring to concentrate solely on training were
sometimes lacking credibility. Statements such as, The organisation wants to motivate the
employee, needed some justification. In such instances, candidates should ask questions
such as: Does the employee require motivation?, How can the organisation be sure the
training will be motivational?. More holistic reasoning was required for better answers based
primarily on the likelihood that such organisations are mainly concerned with operations and
will train only as a matter of necessity. Many organisations are too small to adopt a
development approach, because, for example, the HRD budget and expertise may be
limited, and the benefits of development may be of little value.
For part (c), once again, the reasons given often lacked credibility and needed to be based
upon the size of the organisation, the nature of its markets, the resources it has available
and the perceived benefits from having a highly developed workforce. On the other hand,
organisations that are large, but whose operations are technological and capital intensive,
may have little need for employee development processes. Statements such as,
development is less expensive needed some justification (i.e. less expensive than what?).
The scale of development processes will involve considerable expenditure, but hopefully will
be outweighed by higher profits and market share. The fact that employees can learn
incidentally, any time anywhere does not make the process cheap. As some correctly

argued; however, organisations facing intense global competition, may achieve competitive
advantage by having a highly developed workforce who is engaged, creative and innovative.

Question 2:
(a) Determine two ways in which an individual employee may benefit from being
involved in a professional development programme.
Suggested Answer:
The individual should be able to look forward to better future prospects in terms of
income and status and become more marketable so that such prospects can be sought in
other organisations if necessary.
A benefit of a professional development is that the individual becomes more disciplined
and organised, ethically minded, taking ownership of their learning and learning how to
learn.
Some of the learning is likely to come from association with other experienced
professionals through lectures, networking, mentoring and other development processes.
The individual will also benefit from support from the organisation in terms of finance,
study time and access to a wide range of learning materials.
There will also be support and encouragement from a professional institute where
membership is required, which will promote continuous professional development and the
means of keeping up-to-date with new developments in the field, particularly changes to
legislation.
Membership of an institute and fulfilling its qualification requirements, should also
establish a wider network of relationships in other organisations; it should also raise ones
standing and credibility in society generally and in the profession.
(b) Determine two ways in which the organisation may benefit from encouraging its
employees to participate in a professional development programme.
Suggested Answer:
The organisation should be able to benefit from a system of succession planning and
continuity of high performance in management and other professions, such as
Accounting.
The existence of a more professional workforce will provide up-to-date knowledge of
external conditions and what other organisations are doing to cope with or overcome
them.
A more knowledgeable workforce should also promote creativity and innovation,
improved problem-solving and decision-making and preparedness to question the status
quo and be responsive to change.
Development programmes should provide a pool of talent. Although not all of the
participants perhaps, may be offered permanent positions, the organisation has the
benefit of being able to select the best of them.
Equally, such programmes, particularly in management development, should provide
more competent leaders that are nurtured and motivated to support the mission, values
and goals of the organisation.
It may be argued that, in theory at least, all of the above factors should lead to gradual

development of the entire organisation.

Learning Outcome 2: Be able to critically analyse learning and development theory.

Examiners Comments:
Candidates needed to consider the marking structure for this question more carefully. It
asked for two individual benefits in part (a) and two organisational benefits in part (b); with 8
marks available for each part. This should have indicated that for 4 marks each benefit had
to be described in some depth; however, too often this was not the case. Candidates need to
be more mindful of the structure of the question and be guided as to the depth of answers by
the marks available. Single line statements such as, the employee will become more
marketable, were awarded just 1 mark. Although such comments were acceptable, they
needed elaboration. Firstly, what does marketable mean? Secondly, this statement
presupposes that there is an external market that has plenty of career opportunities;
similarly, the argument that the individual will become more professional this is true, but
candidates need to explain how and why. One reason is that the development of the
programme is likely to be designed around the nature of professional practices; equally
membership of a professional institution is likely to have a code of ethical and professional
conduct which has to be obeyed.
In part (b), the arguments offered were acceptable, but again needed further elaboration. A
frequent argument was that the organisation would benefit by maximising profits
candidates needed to explain what that means. In reality, by encouraging career
development, organisations may improve their profit levels, but it is not inevitable and cannot
be guaranteed. Candidates must avoid such vague and unjustified statements. A notable
failing in part (b) was the description of further benefits to the employee deriving from a
career development programme. Clearly, these answers were not awarded marks because
the question asked for organisational benefits.

Question 3:
(a) Explain four benefits to an organisation from having an effective system of
Human Resource Development.
Suggested Answer:
The following are some examples of organisation benefits from an HRD system which could
lead to improved organisation performance:
Most individuals regard learning and development as valued rewards which will raise
their work performance and which in turn should increase an organisations productivity
and quality of products and service.
Staff should become more versatile and flexible, which should hopefully raise the levels
of individual motivation and workforce morale and reduce labour turnover and conflict.

 Management development programmes should improve the effectiveness of line

managers and their leadership skills. This should reduce levels of interpersonal and
performance-related problems and develop greater trust and confidence in employment
relations.
An effective system of HRD should also produce a reduction in operating costs, partly
through increased efficiency and productivity by fulfilling targets and deadlines, but also
by reducing wastage and re-work. In addition, it should lessen the need for close
supervision.
Effective systems of recruitment, selection, induction and training in health and safety
should also contribute to a reduction in operating costs mainly by avoiding premature
resignations and fewer accidents and disruptions to work.
Effective HRD may contribute to a positive psychological contract by fulfilling its social
obligations to employees by enhancing their employability, particularly when job security
and career progression cannot be guaranteed.
Effective HRD can also ensure continuous compliance with legal and regulatory
requirements and may also enhance the organisations ability to attract and retain highcalibre employees and develop a positive employer brand.
There is also the potential for improved communication and employee engagement
throughout the organisation, enabling more proactive responses to changing external
conditions.
(b) Discuss two ways in which an improvement in the organisations performance
resulting from an effective HRD system may be measured.
Suggested Answer:
Possible measures outlined could be:
Growth of the organisation in terms of market share, number of employees, share price.
Increases in profit sales revenue per period, reduction in total costs and contractual
penalties, reductions in the volume of rework, rejects and customer returns.
Reductions in recruitment and selection costs, labour turnover, grievance and disciplinary
events.
Benchmarking against the performance of competing organisations in the industry.
Improved measures in the functions contained in a Kaplan and Norton scorecard.
Learning Outcome 5: Understand the importance of human resource development.

Examiners Comments:
For part (a), apart from a small minority, candidates were able to demonstrate their
understanding of what is meant by an effective Human Resource Development system.
However, marks were again limited because many answers only gave one line statements
that were acceptable, but were not justified. Typical statements given were, It helps the
organisation to achieve:
its goals
profit maximisation
high levels of productivity
high morale and motivation
effective communication

 competitive advantage.
To attain higher marks candidates needed to go a little further with each point made by
explaining how HRD can bring about these benefits. For example, statements such as, An
effective HRD system can increase the organisations productivity would be awarded more
than 1 mark if they were provided with some substantive reasoning regarding how the HRD
function can bring this about. Some candidates trotted out a longer list than four such
statements; however, the extra items in the list were generally disregarded because marks
were available for only four, as per the question.
For part (b), a few good answers were submitted by candidates. Weak answers identified
processes or functions that cannot be measured at least not with any accuracy and
certainty. Typical examples were effective communications, the degree of employee
engagement, etc. The appraisal system was often quoted, but usually referred to setting
objectives for the individual and assessing whether they are achieved. Any improvement in
one persons performance is not really a convincing measure of the effectiveness of HRD;
the system would need to gather measurable appraisal data on all employees to have any
credibility. Other answers offered Hamblins model for evaluating training events. Again, this
process lacks credibility unless it encompasses the evaluation of a series of events over
time. Candidates need to consider their arguments more carefully to assess their logicality
before writing them.
The best answers referred to measures, such as improvements to productivity, revenue and
profit; also labour turnover and retention rates. Similarly, there was reference to the
balanced scorecard and benchmarking these, at least, are normally based on tangible
results. Candidates should note, however, that even these are proxy measures which may
not be very precise; other factors may contribute to improvements in productivity, turnover
and profit, whilst other variables may hinder the achievement of objectives, none of which
may have anything to do with HRD.
Question 4:
Some organisations may choose their more talented management development
trainees to conduct special assignments. Experience has shown, however, that this
development process can produce some problems for the trainees.
(a) Explain what is meant by special assignments, as part of a management
development programme. Include an example of a special assignment in your answer.
Suggested Answer:
Special assignments - sometimes referred to as special projects - usually refer to largerscale exercises or projects that involve researching and collecting data from which suitable
conclusions and recommendations may be presented. They provide a highly active
opportunity for applying knowledge and developing creative, problem-solving, decisionmaking and reporting skills. The outcomes may well be assessed to determine the extent of
the individuals learning and suitability for permanent employment. It could represent a final

test in a management development programme.

(b) Discuss why a manager might allocate special assignments to more talented
management trainees.
Suggested Answer:
A major purpose of special assignments is to provide trainees with further opportunity to
develop particular skills and competences when opportunities on the job are limited. For
example, like placements, they may involve becoming a member of a cross-functional team
to broaden individual perspectives, as well as developing team working skills.
Other purposes could be:
Some trainees may demonstrate a particular flair for a particular organisation function or
department. For example, a trainee may show a leaning toward marketing; a special
assignment in marketing may enable the individual to learn more about the function and
demonstrate further potential for a permanent position in that department.
The assignment may involve visiting a number of operations in various locations. The
purpose may be to broaden the trainees experience of the entire organisation and to
become more familiar with its entire operations. It may also permit an extension to their
network of contacts and establish new relationships.
Trainees showing particular leadership talents may undertake a leadership or group
development exercise to further enhance their leadership skills. It may also provide a
means of validating the potential that a trainee is believed to possess.
Ideally, the assignment should relate to a real organisation problem. The process of
researching it should provide the opportunity for trainees to demonstrate and enhance
their problem-solving and decision-making skills.
Equally, trainees may be asked to undertake research into the possibility of establishing
some new system, such as performance-related pay. The organisation should benefit
from the outcome and the trainees should benefit from the experience.
The assignment may be a special test at the end of the training programme to enable the
organisation to short-list possible candidates for permanent positions, or allow
advancement to a more demanding or higher level.
(c) Discuss the possible problems a management trainee may experience whilst
carrying out a special assignment.
Suggested Answer:
Possible problems encountered might include:
Poorly designed assignments with unclear objectives may be too demanding and far
beyond the capabilities of most trainees, who may become frustrated and defensive, lose
confidence in their abilities, thus undermining their longer-term prospects.
Those more technically oriented may have difficulty devising methods of gathering
qualitative data and accounting for behavioural contingencies.
Alternatively, those who are more gregarious and socially oriented and, to date, have
been involved in group development activities, may take some time adjusting to the need

to perform individually if they have not been prepared.

It may be perceived that interim appraisals of a trainees performance and final
assessment criteria focus too much on failures rather than achievements. This may
cause anxiety, resentment and even the possibility of a grievance on grounds of
prejudice and discrimination.
Such assignments must be real in their context and requirements. Trainees must be
assured that their performance and its assessment are relevant to possible positions they
may hold. In fictitious scenarios, the trainee may resort to unrealistic pretence and play
acting.
Any recommendations that are presented should be operationalised; otherwise trainees
may feel their efforts were wasted and their recommendations undervalued. This
outcome may lower their commitment to other assignments and the entire development
programme.
Despite an effective performance in a final assignment, some trainees may not eventually
achieve a permanent position which may lead them to feel disenchanted with the entire
profession and pursue another career.
Learning Outcome 6: Understand the purposes, relevance and value of specific management
development initiatives and programmes.

Examiners Comments:
The concept of special assignments or projects seemed to be unfamiliar territory to all but
a minority of candidates. This needs to be remedied because candidates are learning
methods frequently used to assess trainee competences, particularly in the field of HRM.
Many might be more familiar with the term special projects and might have done better had
this phrase been used instead. The best that the majority of candidates were able to offer is
that they are specific tasks that do not necessarily relate to a trainees normal duties. The
examples given were sometimes dubious; for example, a trainee being asked to a chair a
meeting. Some, however, were rather spurious. A special assignment usually requires the
nominee to investigate some issue, event, process or system; and gather relevant data,
draw conclusions and present recommendations to management. They are highly active
methods of developing problem-solving, decision-making and reporting skills.
A common weakness was highlighted in the answers to both parts (b) and (c). In part (b), a
reason often quoted was that the nominee possessed the abilities and potential to succeed
in the task. In part (c), it was then stated that a problem might be that they do not possess
these abilities. Both answers are unlikely to be the case, unless there is some appropriate
justification for it. For example, the superior may be incompetent and failed to evaluate the
suitability of the trainee to the task and allocates assignments on an ad-hoc basis;
alternatively, the superior is ruthless and chose the trainee for personal reasons and
anticipated failure. These reasons, however, are improbable and the superiors
incompetence would soon be noticed.
Other reasons for assigning such projects were: to motivate the trainee; to stretch and
challenge individuals; to allow them to demonstrate and advance their potential; to groom
them for permanent positions.

The problems faced included lack of resources, lack of support and cooperation, and the
jealousy of other trainees. These reasons were a little less credible because one would
expect a competent superior to ensure that resources and support will be available before
allocating the project.

Section B
Question 5:
It may be argued that two of the major determinants of organisational culture are
senior management attitudes and the assumptions they make about managing and
organising a company.
(a) Assess the links between senior management attitudes and organisational culture.
Suggested Answer:
The following are possible arguments to be explored:
Management attitude may be highly profit oriented and of a short-term nature. The
culture therefore may be heavily focused toward low-quality products at low cost and high
turnover.
Alternatively, the attitude may be geared towards customer satisfaction. The culture
therefore may be based on quality and the importance of after sales service.
Management may hold the view that the workforce is a resource like any other. The
culture may be task-orientated, involving close employee control and direction with little
employee communication, autonomy and job enrichment.
Learning and development may be regarded as time consuming and costly, so few if any
resources are available for development. Equally, the opposite may be the case;
development is highly regarded and valued, so development is highly organised and
related to individual performance.
Management attitude may be toward long-term success and organisation development.
Learning and development activities are numerous and varied with a particular focus on
managing knowledge, increasing market share and the creation of innovation through
consultation and innovation.
The culture may be one of corporate social responsibility and ethical behaviour based on
the attitude that they are important determinants of organisation reputation and longer
customer and employee loyalty.
(b) Management sometimes makes assumptions about the correct way to organise
and manage a company.
Critically assess three management assumptions that may prevent the company from
benefitting from a range of HRD strategies.
Suggested Answer:
Values, beliefs and assumptions are established by influential senior managers in an
organisation; these will be perpetuated by their behaviour, the systems, artefacts, rituals and

routines that are adopted. The nature of the values, beliefs and assumptions may therefore
prevent the organisation from attaining its learning and development potential.
Some examples might include:
The tendency in a bureaucratic culture to assume that control and efficiency in the
organisation is best achieved by focusing on functions, job positions and tasks. Emphasis
will be on training in specific job skills within specific functional boundaries and
maintaining the status quo. The benefits of organisation development, innovation and
functional integration may be lost.
Functional boundaries may create isolation and protectionist behaviours, resulting in
conflicts for resources and preponderance to focus on functional objectives at the
expense of those of the organisation. A culture of blame and risk aversion may take root.
Similarly, management may believe in strong budgetary control from the top and insist
that functional managers take responsibility for operating within their allocated proportion
of the total budget. This may become the single criterion by which functional managers
performance is measured. The likelihood therefore, is that spending on training and
development will be restricted to critical activities.
Organisations that are task- or project-based may assume that most attention should be
given to project completion at minimum cost. Opportunities for learning by project teams
are not taken and post-project evaluations are not organised. Information and learning is
not shared or recorded which can be used for the benefit of future projects when the
team is disbanded.
Some managers may have the tendency to focus on past events, pay little attention to
changing external conditions and the need for learning and organisation change. They
may even blame external factors for poor organisation performance rather than being
proactive and trying to do something about slow-building threats.
In power cultures and possibly personal cultures there may be a tendency for mistrust,
secrecy and hoarding of information which may be a valuable source of learning.
Professionals working in a partnership may be more concerned with expanding their
clientele and specialising in a particular area which is of benefit to them but of little value
to the organisation. Expertise they may have in other areas is lost to the organisation as
a whole.
Managements adopting a top-down authoritarian approach may suppress consultation
and upward communication in the belief that they know better than subordinates about
running an organisation. Senior management may not promote a willingness to learn and
spend very little time considering learning and development processes and the benefits
for the whole organisation.
In short, an organisations culture can be seen as a force that binds the organisation
together and supports and encourages learning, or a force that separates factions and
leads to conflict which inhibits learning.
Learning Outcome 3: Understand the organisational factors that influence learning and development.

Examiners Comments:
The weakest answers here argued that senior managers have attitudes, and that culture
refers to the way we do things around here, without expounding on any connection between
them. The immediate question candidates should then have asked is: why is it the way we
do things around here?. The rationale was to test the candidates realisation that culture is
fluid and not an object, and is principally determined by the values, beliefs, attitudes and
preferred behaviours of senior management. A further link is the approach to the HR

adopted as based upon managements collective view of what is appropriate and likely to
bring success to the organisation. A further failing was the assumption that culture
determines management style; however, since culture is an environmental factor and nonhuman it does not, of itself, have the capability to determine anything. Even employees
decide to live with what it is or what it is not.
Higher quality answers were expected for part (b) of the question because students should
understand that managers will often make strategic decisions based on their values and
beliefs, but equally their assumptions. These assumptions may have a positive or negative
effect on employment relations and the provision of training and development. A wide range
of assumptions might have been discussed; the most likely expected were managers
assuming that the operational approach to running the organisation is best and that view
employees as a cost to be minimised and controlled. A further assumption might be that
employees cannot be trusted and strategic information should not be disclosed. Both
assumptions are likely to place limitations on the sharing of information, transformation of
skills and the necessity and provision of training and development opportunities. Very few
candidates produced answers that focused on such broader organisational issues. Overall, it
seems candidates found this question a difficult one.
Question 6:
(a) An organisation may adopt several different types of business strategy. Two
examples are cost leadership and customer service strategies.
Compare and contrast a cost leadership business strategy with a customer service
business strategy.
Suggested Answer:
A cost leadership strategy represents one of Porters recommended generic business
strategies based upon his five forces market analysis. It may be defined as an
organisations attempts at producing products at the lowest possible cost without
compromising quality and customer value. This may then enable the organisation to
undercut the prices offered by its competitors and achieve a competitive advantage.
An alternative strategy suggested by Porter is a differentiation strategy. Arguably, a
customer-based strategy could be one form of differentiation. It may be defined as the focus
that an organisation places upon identifying the requirements of its customers and
convincing them that the organisation has on offer the means to best satisfy those
requirements. The belief is that customers will highly value products and services that
satisfy their needs, and for which they will be prepared to pay a premium price. The
organisation will need to have quality, marketing, delivery and after-sales strategies aimed
at creating in the minds of customers the perception that they are receiving something that
is different and of value.
(b) You work for an organisation that employs a customer service-based business
strategy.

Identify and justify three training and development activities which your organisation
would need to carry out in order to sustain this strategy.
Suggested Answer:
Some possible activities that could be discussed are:
If the organisation has its own marketing department it may hold regular brainstorming
sessions for developing new marketing methods and advertising slogans. They might
involve a variety of participants from a range of job roles and departments; and they
might be necessary because previous methods quickly become outdated.
It is probable that there will be periodic reviews of customer complaints, product returns,
results of customer surveys and competitor strategies. The learning from these
processes should enable effective decisions to emerge on how best to respond
strategically.
Organisations that produce products that are based on specific technologies may
organise quality circles and problem-solving groups to research into alternative
applications for the technology, such as ICT products and other innovations, such as
improvements in quality, methods of creating better accessibility to sales; for example,
through e-commerce. These may be justified because competitors are doing the same.
There is likely to be a need for training in handling customer complaints, particularly
those who are irate, frustrated or merely difficult to please. Similarly, training may be
needed in dealing with handling customers adopting criminal behaviours, such as
stealing. These are difficult areas, so sales staff cannot be expected to deal with such
events without training.
Training on presentation and communication skills may be needed, particularly when new
employees are appointed, if only to ensure that they handle customers appropriately.
Line managers and customer facing employees may require updating on new legislation
relating perhaps to credit sales agreements, customer rights, etc., as well as updating on
new product lines. Customers would normally expect sales assistants to be able to
provide answers to their questions.
There may also be need for regular training courses for those engaged on product
servicing and breakdowns. After sales service can represent an important element of a
customer-based strategy.
Each of the above may be justified in terms of customer choice, retention and
satisfaction; also in terms of market share, profitability, reputation and competitive edge.
Learning Outcome 3: Understand the organisational factors that influence learning and development.

Examiners Comments:
A proportion of the answers to part (a) of this question were good, demonstrating reasonable
understanding of both cost leadership and customer-based strategies, which were
described fully and effectively. The former focuses on producing products at the lowest
possible cost without compromising on quality and customer value; the aim being to
undercut the prices of competing products. The latter focuses on quality and customer
satisfaction and aims to convince the customers of high value and the best means of
satisfying their needs. Some answers from candidates, however, showed very little
knowledge of either strategy and provided inaccurate guesses, which often earned no
marks. Other candidates showed some knowledge of customer-based strategies, but none

of cost leadership. The title customer-based was a guide for some who were able to
enlarge it slightly to earn a couple of marks. Unfortunately, the title cost leadership offered
no clues and may have misled many into thinking it is some form of leadership style, but with
no reference to cost. Thankfully, the proportion of candidates that attained a fail in this
question was small.
For part (b), the unfortunate perspective taken by many candidates was to describe what
customer-facing employees would need to sustain the strategy, with little or no reference to
the activities that would satisfy those needs. The needs for good communication and
interpersonal skills, the ability to solve customer problems and deal with those who are
hostile, were, however, adequately discussed. Whilst such suggestions were regarded as
acceptable, they could have been strengthened with some reference to training activities,
such as workshops, coaching, role play and case study activities. Those that answered the
question in this way earned full marks, or at least most of them did. The weakest answers
mostly contained irrelevant comment and paid little attention to needs or training activities.

Section C
Question 7:
As the HR manager in your organisation, you have been asked by your Chief
Executive Officer to look into setting up a performance management system for the
workforce.
(a) Describe the aims and objectives of a performance management system.
Suggested Answer:
One definition of a performance management system is that it is a framework in which
performance is organised, measured and reviewed. The underlying aim of such systems is
to get the best efforts out of individuals, teams and the organisation as a whole in achieving
corporate goals.
Corporate objectives are determined which are then cascaded down to the individual job
level in the form of personal objectives, so that the both are aligned or integrated. The focus
will be on work improvement, learning, development, motivation and reward. This should
begin with the induction of new staff and, over time, individuals will be involved in defining
performance standards and setting objectives, performance reviews and appraisals,
learning and development processes, and the allocation of rewards for performance
achievements.
A key area will be the vertical alignment of HRD with organisation objectives and its
horizontal alignment with other performance elements, such as motivation and reward.
These systems, at least in theory, should raise the performance of the entire organisation so
that it achieves its set goals.
(b) Discuss four ways in which learning and development processes can be relevant
to the effectiveness of any proposed performance management system.

Suggested Answer:
Examples discussed may include the following:
The HRD function should have involvement at the strategic level in the determination of
corporate objectives, so that HRD strategies can be devised accordingly and suitable
budgets negotiated.
It can also be instrumental in monitoring and assessing organisation performance with a
view to determining performance gaps. For example, feedback can be obtained from
internal and external customers to identify what systems and processes are not working
effectively.
HRD may pioneer the attainment of accreditation of its performance standards and
learning and development system through, for example, Investors in People or ISO 9001.
The HR function should also be able to advise on efficiencies in operation and cost by,
for example, the creation of shared services, centres of excellence and areas, such as
payroll, that can be outsourced.
Strong working relationships should be established with line managers to assist with
training and development processes, such as objective setting, conducting appraisals,
identifying performance needs, counselling and giving positive feedback.
Regular reviews of appraisals records and levels of merit awards may highlight
performance deficiencies that are organisation-wide, or identify individuals who show
exemplary performance and potential for further development.
A variety of learning and development processes may be designed and promoted, such
as off-site training courses, e-learning modules, mentoring and coaching; as well as, the
encouragement of self-learning.
HRD should also contribute to the design of job evaluation and job enrichment schemes,
and provide the means of ensuring equal opportunity, fairness, consistency and natural
justice in the management of employees.
Learning Outcome 4: Know how to develop an effective performance management programme.

Examiners Comments:
The area of performance management continues to represent challenges to candidates who
seem to have difficulty providing cogent and credible answers to questions on it. Overall, the
attempts at this question were generally weak. More emphasis was needed on the elements
of a performance management system, which included not only HRD, but rewards,
recruitment and selection, succession planning, innovation, performance appraisals and
performance reviews, etc. The aim is to integrate these functions into a coherent process
that gets the best out of individuals, teams and the organisation as a whole. A performance
management system will take many forms and should be designed to fulfil organisational
objectives. However, very few candidates described this aim. Nevertheless, there were
some good answers containing a list of reasonable objectives, such as, enhancing
organisation performance, increasing market share and profits, and also providing
competitive advantage. The lesser answers contained objectives that were rather parochial,
such as motivating and appraising the performance of individuals.

Answers to part (b) on the contribution of HRD were of a similar nature. Too many
candidates failed to take a holistic perspective, i.e. the way HRD has a more strategic role
beyond just training, motivating and developing the employee. Some broader issues that
might have been discussed here were:
The HRD function contributing to strategic decisions and designing HRD strategies that
align with corporate strategies.
Reviewing organisation performance in terms of training needs and designing appropriate
interventions, such as blended learning.
Assisting in the design of recruitment, selection and induction methods.
Promoting management development by designing development programmes and
training current line managers on handling HR issues, such as grievance, discipline and
appraisal processes.
Assisting in the development of suitable reward systems that link with effective employee
performance.
Question 8:
(a) Outline three of the main components of Abraham Maslows Hierarchy of Needs
theory of motivation.
Suggested Answer:
Maslow suggested that individuals have sets of needs that are motivators.
These are:
Physiological needs - the need to satisfy hunger and thirst and other desires.
Safety needs - the need for security, such as a well-paid job, insurance cover, health and
fitness, etc.
Social needs - the need to belong and have friendships and loving relationships.
Ego needs - the need for recognition and status, to be respected in society, qualifications,
etc.
Self-actualisation - the need for self-fulfilment and the highest level of satisfaction.
Maslow argued that these needs represent a hierarchy of motivating factors; i.e. a need
at one level will not motivate an individual until a lower level need has first been satisfied.
(b) Discuss two limitations of this theory.
Suggested Answer:
Limitations of this theory may include the following:
It may be regarded as somewhat ethnocentric, in that the elements may have different
priorities in different cultures. Family values and honour, for example, may be more
important than income in some cultures.
It may be dangerous to apply the theory directly in an organisation that has a diverse
cultural workforce. There is the possibility of discrimination if, for example, an egocentric
employee is given promotion, whilst others are not permitted to apply.
The hierarchy may be seen as a generalisation and is unrealistic. Individualists may not

be interested in team work and socialising, they are much more interested in satisfying
personal objectives.
Some have an instrumental orientation to work and satisfy higher order needs in their
leisure time. Their only interest in training, for example, is the prospect of higher income.
Frederick Herzberg presented strong arguments to suggest that the first three levels of
need in the hierarchy do not possess the potential to motivate individuals to give their
best. Irrespective of how effectively an organisation attends to these so-called hygiene
needs, it will fail to motivate employees if it ignores the higher level needs.
Arguably, there is no such thing as self-actualisation. Applying Maslows argument that
once a need is satisfied it is replaced by another, means that this is sure to continue even
if an employee is engaged at this highest level.
Possibly the only realistic way of applying the model is to attempt to satisfy all the levels
simultaneously, but this could prove to be expensive.
It does at least contain the essence for motivating individuals at work simply put, that
people have needs and will display behaviours that they expect will satisfy those needs.

(c) Discuss why Frederick Herzberg, in his work motivation theory, argued that
wages and good relationships are not motivators".
Suggested Answer:
Herzberg in his work motivation theory argued that the behaviour and performance of
people at work is influenced by two sets of factors. The first of these sets he referred to as
the hygiene factors; the second set he referred to as the motivator factors.
The hygiene factors he suggested have to do with the environment in which the employee
works and include good working conditions, pay and other benefits, and sound relations with
colleagues and line managers. These factors, if they are good, are said to prevent an
employee from feeling dissatisfied but they will not motivate, they will simply produce a
neutral orientation for the employee to the organisation.
Motivation, the disposition of the employee to give of his/her best to the job, derives from the
work itself and elevates the employee to a more positive and satisfied orientation towards
the organisation. Examples of factors that motivate are personal growth, advancement,
learning and development, recognition, meaningful work and task variety, and autonomy in
decision-making.
Learning Outcome 4: Know how to develop an effective performance management programme.

Examiners Comments:
Whenever the issue of motivation arises, candidates inevitably quote Maslows hierarchy of
needs theory. The rationale for this question therefore, was to deliberately test how much the
candidates knew about motivation theory.
For part (a), while it was pleasing to see that the majority were able to describe at least three
elements of Maslows theory; it was disappointing to find that so many candidates lacked
knowledge regarding the renowned theory. Most, however, were able to describe three of its
elements, but answers might have been given a little more depth, particularly in terms of

their application to the workplace. For example, the simple fact that wages are a means of
satisfying physiological needs.
Part (b) of the question was more challenging and there were few good answers submitted
for it. The intention was to get candidates to consider the difficulties of applying the theory to
the motivation of employees at work. The answers given suggested that motivation theory, in
general, is discussed somewhat superficially, thus leading to the possibility that students will
accept these theories at face value and as universal truisms. Candidates should not be left
to think that, when assuming managerial positions, having a basic knowledge of these
theories will simplify the task of motivating subordinates. I should like all tutors, not just the
few, to discuss with students possible limitations of the theories and to evaluate the extent
to which they have relevance and applicability to motivating people at work. Herzbergs two
factor theory, for example, has more direct relevance to the workplace, but also has its
limitations.
For part (c), it should be noted that Herzberg used the word motivation in a very specific
way and, according to his definition, wages are not a motivator. This argument contradicts
many other theories to imply that wages are not a driver of employee effort, and that
commitment may not only be misleading but a complete misnomer. Few answers showed a
thorough understanding of Herzbergs theory. Several simply mentioned that wages will not
motivate because they are there and can be relied upon; equally, that good relationships will
not motivate some workers because they are loners. This argument almost suggests that
these people might prefer bad relationships.
Overall, it seems that presentation of the components of these theories needs tightening up
answers should include at least some assessment of the strengths and weaknesses of
such theories.

Conclusions
The standard of written English in this examination was generally good; although there were
a few candidates whose fluency in the language was so weak it was difficult to understand
the arguments being made. The overall performance of the candidates was less than
satisfactory, with only a few showing a thorough knowledge of the subject. Candidates that
did fail this paper, usually did so by a clear margin, and showed very limited understanding
of most areas covered by the syllabus. Such candidates seemed to have done very little
preparatory work and, in the case of some very weak candidates, little seemed to have been
done to test their level of competence.
Recommendations to students and tutors for future examinations:
1. Students should be advised to write shorter sentences containing only one argument.
2. Tutors need to guide students in reading questions carefully and identifying those
elements of the question for which marks are available and to avoid wasting time on
irrelevant comment.
3. Tutors should remind students that there will be at least one question on all the learning
outcomes for the subject in every examination paper. To obtain the minimum pass mark,
candidates must possess a fundamental knowledge of each of these learning outcomes.
Candidates who choose only a few topics to learn/revise will probably fail, unless their
knowledge of the areas chosen is quite extensive and thorough.

Tutors should advise candidates that when advantages or disadvantages are asked for they
will normally apply to the entire organisation, unless the question actually specifies individual
employees. Students also need to be reminded that comment must be provided for elements
of questions that ask for reasons or justification if they are to earn full marks. If questions
request some analysis, discussion or evaluation, answers that are purely descriptive are
likely to be awarded only half of the available marks.