Amity MBA Assignment Semester 4 Human Resource 2019

Compensation & Reward Management (EDL 409)-Semester 4

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1st Module Assessment

CASE STUDY 

Salary inequities at Acme Manufacturing
Joe Black was trying to figure out what to do about a problem salary situation he had in his plant. Black recently took over as president of Acme Manufacturing. The founder and former president, Bill George, had been president for 35 years. The company was family owned and located in a small eastern Arkansas town. It had approximately 250 employees and was the largest employer in the community. Black was the member of the family that owned Acme, but he had never worked for the company prior to becoming the president. He had an MBA and a law degree, plus five years of management experience with a large manufacturing organization, where he was senior vice president for human resources before making his move to Acme.A short time after joining Acme, Black started to notice that there was considerable inequity in the pay structure for salaried employees. A discussion with the human resources director led him to believe that salaried employees pay was very much a matter of individual bargaining with the past president. Hourly paid factory employees were not part of this problem because they were unionized and their wages were set by collective bargaining. An examination of the salaried payroll showed that there were 25 employees, ranging in pay from that of the president to that of the receptionist. A closer examination showed that 14 of the salaried employees were female. Three of these were front-line factory supervisors and one was the human resources director. The other 10 were non management.This examination also showed that the human resources director appeared to be underpaid, and that the three female supervisors were paid somewhat less than any of the male supervisors. However, there were no similar supervisory jobs in which there were both male and female job incumbents. When asked, the Hr director said she thought the female supervisors may have been paid at a lower rate mainly because they were women, and perhaps George, the former president, did not think that women needed as much money because they had working husbands. However, she added she personally thought that they were paid less because they supervised less-skilled employees than did the male supervisors. Black was not sure that this was true.The company from which Black had moved had a good job evaluation system. Although he was thoroughly familiar with and capable in this compensation tool, Black did not have time to make a job evaluation study at Acme. Therefore, he decided to hire a compensation consultant from a nearby university to help him. Together, they decided that all 25 salaried jobs should be in the same job evaluation cluster, that a modified ranking method of job evaluation should be used, and that the job descriptions recently completed by the HR director were current, accurate, and usable in the study.The job evaluation showed that the HR director and the three female supervisors were being underpaid relative to comparable male salaried employees . Black was not sure what to do. He knew that if the underpaid female supervisors took the case to the local EEOC office, the company could be found guilty of sex discrimination and then have to pay considerable back wages. He was afraid that if he gave these women an immediate salary increase large enough to bring them up to where they should be, the male supervisors would be upset and the female supervisors might comprehend the total situation and want back pay. The HR director told Black that the female supervisors had never complained about pay differences. The HR director agreed to take a sizable salary increase with no back pay, so this part of the problem was solved.

Question 1. what kind of salary inequity prevailed in Acme?

 position inequity

 external inequity

 performance ineuity

 all of the above

Question 2. Job evaluation in the case study refers to?

 evaluationg performance of employees

evaluating work done by employees

 evaluating salary per job

 all of the above

Question 3. How did the company get into such a situation?

inappropriate job analysis

 inappropriate job evaluation

 inappropriate performance management

 inappropriate recruitment & selection

Question 4. Which amongst the below are not method of job evaluation

 Ranking method

 Field survey

 Paired Comparision

 Management by Objective

Question 5. what sequence of procedure Black should follow

 job analysis then job evaluation

 job evaluation followed with job analysis

 either can be done

 both are not required

Question 6. Black should pay ………………. to Jobs lying in the same job cluster

 same salary

 different slary

 same salary range

 different salary range

Question 7. How did the management decide salary prior to Black joining in?

 Based on jab analaysis

 Based on job evaluation

 based on negotiations

 none of the above

Question 8.  the horuly workers salary was fixed with the help of

 Job evaluation

 negotiations

 job analysis

 none of the above

Question 9.  compensation of the employee include

 base salary

 incentive

 paid holidyas

 all of the above

Question 10. If you were Black, what would you have done about salary related to female supervisors

 To do nothing

 To gradually increase the female supervisors salaries

 To increase their salaries immediately

 To call the three supervisors into his office, discuss the situation with them, and jointly decide what to do.

10 on 10 J

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2nd Module Assessment

CASE STUDY

In the mid-1980s Xerox corporation was faced with a problem—its performance appraisalsystem was not working. Rather than motivating the employees, its system was leaving them discouraged and disgruntled. Xerox recognized this problem and developed a new system toeliminate it.
Old Performance Appraisal System
The original system used by Xerox encompassed seven main principles:1.The appraisal occurred once a year.2.It required employees to documenet their accomplishments.3.The manager would assess these accomplishments in writing and assign numerical ratings.4.The appraisal included a summary written appraisal and a rating from 1 (unsatisfactory)to 5 (exceptional).5.The ratings were on a forced distribution, controlled at the 3 level or below.6.Merit increases were tied to the summary rating level.7.Merit increase information and performance appraisals occurred in one session.This system resulted in inequitable ratings and was cited by employees as a major source of dissatisfaction. In fact, in 1983, the Reprographic Business Group (RBG), Xerox’s main copier division, reported that 95 percent of its employees received either a 3 or 4 on their appraisal.Merit raises for people in these two groups only varied by 1 to 2 percent. Essentially, across-the- board raises were being given to all employees, regardless of performance.
New Performance Appraisal System
Rather than attempting to fix the old appraisal system, Xerox formed a task force to create a new system from scratch.The task force itself was made up of senior human resources executives;however, members of the task force also consulted with councils of employees and a council of middle managers.Together they created a new system, which differed form the old one in many key respects:1.The absence of a numerical rating system.2.The presence of a half-year feedback session.3.The provision for development planning.4.Prohibition in the appraisal guidelines of the use of subjective assessments of  performance.The new system has three stages, as opposed to the one-step process of the old system. These stages are spread out over the course of the year. The first stage occurs at the beginning of the year when the manager meets with each employee. Together, they work out a written agreement on the employee’s goals, objectives, plans, and tasks for the year. Standards of satisfactory performance are explicitly spelled out in measurable, attainable, and specific terms.The second stage is a mid-year, mandatory feedback and discussion session between the manager and the employee. Progress toward objectives and performance strengths and weaknesses are discussed, as well as possible means for improving performance in the latter half of the year.Both the manager and the employee sign an “objectives sheet” indicating that the meeting took  place.The third stage in the appraisal process is the formal performance review, which takes place at year’s end. Both the manager and the employee prepare a written document, stating how well the employee met the preset performance targets. They then meet and discuss the performance of the employee, resolving any discrepancies between the perceptions of the manager and the employee. This meeting emphasizes feedback and improvement. Efforts are made to stress the positive aspects of the employee’s performance as well as the negative. This stage also includes a developmental planning session in which training, education, or development experiences that can help the employee are discussed. The merit increase discussion takes place in a separate meeting from the performance appraisal, usually a month or two later. The discussion usually centers on the specific reasons for the merit raise amount, such as performance, relationship with peers, and position in salary range. This allows the employee to better see the reasons behind the salary increase amount, as opposed to the summary rank, which tells the employee very little.A follow-up survey was conducted the year after the implementation of the new appraisal system. Results were as follows: 81 percent better understood work group objectives, 84 percent considered the new appraisal fair , 72 percent said they understood how their merit raise was determined, 70 percent met their personal and work objectives, 77 percent considered the system a step in the right direction In conclusion, it can be clearly seen that the new system is a vast imporvement over the previous one. Despite the fact that some of the philosophies, such as the use of self-appraisals, run counter to conventional management practices, the results speak for themselves.

Question 1. According to the forced ditribution method the employees were forced into how many groups in the old performance appraisal system

 a. continuously distributed evenly in many groups

 b. no groups formed at all

 c. two major gorups were formed

 d. all employees were ranked in the same group

Question 2. Merit pay given to employees are part of ……..?

 a. incentive

 b. increase in base pay

 c. bonus

 d. all of the above

Question 3. the new performance appraisal system is

 a. past oriented

 b. future oriented

 c. both

 d. 360 degree based

Question 4. the old performance appraisal system was…..

 a. past oriented

 b. future oriented

 c. both

 d. performance management oriented

Question 5. what kind of biasness was involved in the old performance appraisal system?

 a. biasness of central tendency

 b. recency effect

 c. halo effect

 d. stereotyping

Question 6. what kind of performance system was the new one?

 a. self appraisal

 b. mbo

 c. 360 degree feedback

 d. ranking system

Question 7. What was the major cause of dissatisfaction amongst the employees?

 a. biaseness in rating

 b. no proper system of performance appraisal

 c. absence of feedback

 d. all of the above

Question 8. which amongst the below are not future oriented method of performance appraisal?

 a. 360 degree

 b. MBO

 c. 720 degree

 d. Graphic rating scale

Question 9. which mehtod was more objective?

 a. old appraisal method

 b. new appraisal method

 c. both were equally objective

 d. none of the above

Question 10. which of the statement is correct?

 a. performance appraisal is a sub set of performance management

 b. performance management is a subset of performance appraisal

 c. both are same

 d. both are not related

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3rd Module Assessment

CASE STUDY

Cadbury made life sweeter for workers
Housing and education were key features of the employee benefits package at Cadbury Brothers in 1952, thanks to founder John Cadbury’s sons.
In 1861, Richard and George Cadbury took over management of the Cadbury factory on Bridge Street, Birmingham, and began to take an interest in employees’ welfare. They created a new factory outside
Birmingham, which they named Bournville, which became known as ‘the factory in the garden’.
In 1895, the brothers built housing for their workforce, which turned into the Bournville Village Trust in 1900.
Young staff attended the Bournville Day Continuation College for one day a week until they were at least 18 years old. Cadbury-funded scholarships were available on graduation.
Shop committees were the first point of contact for employees’ work-related issues, except wages and hours, which were negotiated by trade unions.
Savings vehicles included the Bournville Pension Fund, into which employers and staff made contributions.
There was sick pay of up to 90% of base wage, and Workers’ Funds available for prolonged illness. A Dependant’s Provident Fund paid a lump sum to the next of kin if a male worker died under the age of 65.

Question 1. Employee stock ownership plan is a?

 a. long term incentive

 b. short term incentive

 c. can be both

 d. it is not an incentive

Question 2. Provident fund is a?

 a. short term investment

 b. long term investment

 c. moderate investment

 d. does not depend on time

Question 3. scholorship given at Cadburry would be considered as a?

 a. incentive

 b. bonus

 c. employee benefit

 d. increment

Question 4. the salary given to employees were in which form?

 a. consolidated

 b. on pay grade

 c. no such information is given

 d. both a and b

Question 5. which form of compenastion is given to employees at Cadburry?

 a. direct compenation

 b. indirect compensation

 c. long term benefits

 d. all of the above

Question 6. which Maslows need is the benefit plan at Cadburry focusing to?

 a. Self esteem

 b. Social need

 c. physiological need

 d. self actualisation

Question 7. which of the below Cadbury does not have according to the case study?

 a. grievaiance handling

 b. bargaining and negotiation

 c. employee welfare

d. mentoring

Question 8. which of the below is not a component of direct compensation

 a. salary

 b. wage

 c. incentive

 d. all are part of dircet compensation

Question 9. Which of the below is not a part of employee benefits?

 a. scholorship

 b. incentive

 c. provident fund

 d. housing facility

Question 10. Which statement is not correct?

 a. salary and wage are different from each other

 b. incentive and increment are synonyms for each other

 c. bonus is different from incentive

 d. any kind of insurance cover given to employees is a part of compensation

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4th Module Assessment

CASE STUDY

Companies continually test ways to incent employees to perform more effectively, often turning to worker-motivation tools such as bonuses, “up or out” employee ranking tournaments, and employee of the month rewards.

Behavioral scientists warn that these programs, if not constructed carefully, can open a box full of unintended consequences that ultimately harm rather than help the organization.

The financial crisis of 2008 was partially fueled by origination bonuses paid to bank loan officers who were incented to approve bad loans. Less well understood, but uncovered in HBS research several years ago, is that those bank bonuses also caused loan officers to perceive reality differently—they believed those loans would succeed.

It’s not just financial incentives that are under study. Employers seek to change the behavior of workers in all manner of ways: to make more ethical decisions, to get flu shots, to lose weight, to be wiser about personal financial planning. Behavioral scientists are becoming the new HR superstars in some organizations.

Research through the years at Harvard Business School has explored this good intentions-bad outcomes dilemma in many settings, from the glitzy world of Las Vegas to steamy laundry plants in Asia. The results these studies have uncovered are important to understand for org designers, compensation committees, and any function such as sales that depends on incentives to drive performance.

Question 1 : Biased incentives will result to what kind of employees

 a. satisfied

 b. motivated

 c. dissatisfied

 d. nuetral

Question 2. Group pay-incentive plan designed to motivate employees in improving the productivity of their workgroup through more efficient use of resources is called as

 a. gain sharing

 b. esop

 c. bonus

 d. profit sharing

Question 3. incentives are primarily dependent on

 a. profit

 b. sales

 c. productivity

 d. all of the above

Question 4. Is the statement true “incentives impact behaviour of employees”?

 a. absolutely true

 b. somewhat true

 c. FALSE

 d. none of the above

Question 5. Pick up the odd one out

 a. gain sharing

 b. esop

 c. bonus

 d. profit sharing

Question 6. When incentives are planeed, the target or goals set should be

 a. realisitc

 b. difficult to achieve

 c. easy to achieve

 d. unrealistic

Question 7. Which amongst the below will help employee to stay motivated

 a. incentive

 b. training

 c. flexible working environment

d. all of the above

Question 8. Which is a type of incentive?

 a. merit pay

 b. base pay

 c. hourly pay

 d. bonus

Question 9. Which need of Maslow’s hierarchy theory will not be fulfilled by giving incentives but will be more accomplished by giving recognition

 a. Physiological need

 b. Safety Need

 c. Social Need

 d. Self esteem need

Question 10. Which of the below concept is not related to compensation

 a. Adam’s equity theory

 b. Vroom’s expectancy theory

 c. ERG theory

 d. Kirk Patrick model

10 on 10 J

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5th Module Assessment

CASE STUDY

Clare Bettelley speaks to Luke Savage about insurance market Lloyd’s titanic battle to retain employees at the not-for-profit Corporation
The challenge in attracting staff to Lloyd’s, the specialist insurance market formally known as Lloyd’s of London, is compounded by the fact that it is a not-for-profit organisation and lacks the ability to lure prospective staff with share schemes and lucrative stock and option awards. As part of its answer to responding to the competition for talent in the provider-rich global insurance market, the Corporation is in the throes of rolling out a cash bonus scheme.
Luke Savage, director, finance, risk management and operations at Lloyd’s, has been instrumental in the creation of a retention-focused scheme for its 700-strong staff, entitled the Lloyd’s Performance Plan. “When you’re a not-for-profit organisation, [you] need to counter the appeal of people being able to leave when the market’s doing well,” he says.
Bonuses are based on the Corporation’s pre-tax profit for the last full financial year multiplied by a percentage based on employee grade, which is then multiplied by salary. For example on a profit of £2.5 billion someone earning £50,000 a year would receive 12.5% of their salary.
“We had looked at far more complex ideas that effectively created shadow investment schemes to follow the results of the shares of the listed vehicles in the market, but we [decided to keep] it very simple, specifically to make it easier for people to understand.”
Long-term incentive plan
Savage says that he expects the cost of the scheme to be absorbed through Lloyd’s members’ annual subscriptions. “The scheme has been calibrated so that we should be able to operate it without having to go back to the market for more money.”
The scheme is open to all staff and capped according to their grades. It will supersede Lloyd’s existing executive long-term incentive plan (L-tip). On whether executives can earn more than is possible under their existing L-tip, Savage says: “For a given level of profit and a given point in the cycle, one may or may not earn more. The reason I’m being cagey is that the old scheme looked at average results over three years on one basis while the new scheme looks at results for a particular year on a different basis, so the amount you get paid, will vary as a function of where you are in the cycle.”
Awards under the old L-tip were calculated as a percentage of the Corporation’s aggregate profits for the relevant three-year period for each £1m of participants’ salaries.
Savage’s estimated long-term bonus as at 31 December 2006 was £13,000, which increased to £19,000 with the addition of his performance bonus.
“As a Corporation we have to pay a lot more attention to our reward package and work a lot harder by making sure that we provide an overall attractive package to [all] our staff – [not simply] those who have equity.”
Hence, Lloyd’s offers staff a number of non-financial rewards. It offers a defined benefit (DB) pension scheme, which it shifted from final salary to career average for new joiners in 2005. “It was part of a means to manage our risk to the Corporation in the long term. But we made a very clear choice not to close a DB scheme in favour of a defined contribution scheme. We think the DB scheme is valuable to people, certainly for the more mature members of staff, so while we’ve modified the terms, we have kept that scheme open,” he says. The Corporation also introduced employee contributions of 5% for most staff.
Savage says he manages reward costs as part of the ongoing programme of driving efficiency through the Corporation. “Take the area that looks after all the assets we hold on behalf of members – ‘market services’. We’ve managed to shrink its head count by 50% in the last five years and with the savings generated, we’ve invested in new heads in growing areas or made sure that the reward for the rest of our staff stays in line with the market.”
Lloyd’s core benefits Basic employee benefits for new joiners (excluding executives): • Lloyd’s Performance Plan and a performance-related bonus • Career average defined benefit pension with 5% employer contribution • Life assurance • 25 days minimum holiday allowance • Flexible benefits, including private medical insurance, childcare vouchers, additional holiday, cycle-to-work scheme • Car or cash alternative (for managers)

Question 1.  Are the non financial benefits considered as a part of compensation?

 a. yes

 b. no

 c. depends on the benefit given

 d. depends upon the position you are giving the benefit

Question 2. Cafetaria plans comes under?

 a. direct incentive

 b. fringe benefits

 c. flexible benefit

 d. non monetary benefit

Question 3. In which of the below scheme both employer and employee contributes together?

 a. pension scheme

 b. esop

 c. paid holiday

 d. paid maternity leaves

Question 4. The entire case study is based on deciding ________________

 a. direct compensation

 b. indirect compensation

 c. both a and b are correct

 d. perfromance compensation

Question 5. The purpose of compensation setting in Lloyd is to _______

 a. increase employee’s performance

 b. make recrtuitment easy

 c. need recognition of employees

 d. retaining employees

Question 6. What type of compensation system exist in Lloyd?

 a. Grading system

 b. Direct compensation

 c. Indirect compensation

 d. all of the above

Question 7. which according to you is not linked with performance?

 a. Incentive

 b. increment

 c. bonus

 d. promotion

Question 8. which amongst the below perquisite is being given by Lloyad to its staff?

 a. pension scheme

 b. life insurance

 c. gratuity

 d. Vouchers

Question 9. Which statement is true for Lloyd’s organsation

 a. Bonus is given to all the employees

 b. Bonus is linked to performance

 c. both a and b are correct

 d. none of the above

Question 10. ______________ is a systematic approach used by Lloyd’s to provide monetary values to employees

 a. Salary

 b. Allowance

 c. Compensation

 d. Rewards

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Assignment 2

CASE STUDY

Multi-sector giant GE faced a huge challenge in trying to harmonise perk for its 19,000 employees and the key was a new flexible benefits scheme, says Rebecca Patton
GE introduced a flexible benefits scheme for its entire 19,000-strong UK workforce last November in an effort to harmonise the benefits it offers across its four main business divisions (see below).
Before the arrival of the scheme, which is called FlexChoice and provided by Vebnet, each of the businesses operating within the four divisions, which span the aviation, healthcare, energy solutions and finance sectors, ran their own, separate payroll, HR, and compensation and benefits teams, and the benefits they offered varied widely. For example, employee access to GE’s 30-plus mostly defined contribution (DC) pension schemes and private medical insurance (PMI) plan was inconsistent across the group.
Core levels of benefits now available to all GE employees via FlexChoice include PMI, provided by Cigna HealthCare, life assurance, group income protection (GIP) and two DC pension schemes provided by Legal and General and Aviva, respectively. A third DC scheme, provided by Phoenix Life, is closed to new members.
GE also offers a range of voluntary benefits through FlexChoice, including childcare vouchers, bikes for work, life insurance for employees and their partners, gym membership and travel insurance. A health reimbursement
plan offers staff £60 each to spend on products and services to keep them healthy, such as trainers or exercise equipment.
Employees also have access to a health and wellbeing savings scheme, with GE matching staff contributions up to a maximum of £300.
Kerrie Rowland, UK pensions and benefits manager at GE, says: “Flex was the tool with which we could deliver the harmonisation and at the same time offer flexibility. For example, for those who had never had medical benefits before, if they didn’t want to have these going forward and [wanted to] maintain the status quo, that was absolutely fine. The scheme allowed for them to take the baseline benefit through flex and then flex up.”
GE also restructured its pension arrangements before launching the flex platform. This involved consolidating its 30-plus schemes, which were mostly DC. In addition to its DC schemes, GE now has six defined benefit (DB) plans that are all closed to new entrants.
Boosted take-up
Rowland says the closure of GE’s DB pension schemes to new members helped to boost the take-up of benefits under FlexChoice, which stood at 96% in year one. “The take-up for year one was phenomenal and was largely because we closed the DB plan and people had to go in and tell us which pension plan they wanted to be a member of. If they didn’t go in and tell us they wanted to continue being a member of the DB plan, they would have to be defaulted out [of the scheme], the default being the DC plan.”
GE is currently recruiting employee volunteers as ‘pension pioneers’ to help it communicate its pensions strategy more consistently across the business, as well as to relay employee concerns and queries back to the organisation.
Despite its success in communicating its pension schemes, Rowland says communication was one of the biggest challenges in implementing FlexChoice. “There are nearly 20,000 employees to be communicated to and consult with, all at the same time, on some fairly significant changes,” she says. “Even on the basics, we found our employees were very unfamiliar with considering a pension to be a benefit. To them, it is a contractual right, not a benefit.”
Exacerbating the communications challenge was the fact that so many GE sites are run as self-contained businesses in locations without internet access, nullifying email and website strategies. There were also employees who preferred traditional face-to-face consultation.
Nevertheless, Rowland says the benefits of implementing FlexChoice far outweigh the challenges. One of the biggest advantages is replacing several flex enrolment windows a year with just one.
Rowland adds: “There is one method of understanding throughout the HR department, there is one system, there is one change for everybody unless they have a life event, and a lot of the systems are connected to one another, so updates are made automatically.”
Future additions
GE is now planning future additions to its flexible benefits plan, says Rowland. “For next year, we are going to be adding a benefit from My Family Care. This is largely back-up care and also access to a provider that can find care for [employees], not just childcare but also elder care, which works well for our diversity objectives.
“We will also be expanding the health reimbursement account. Other than that, we don’t anticipate too many changes into year two because, with a flex plan, you just need to be there to work on comfort levels and you can’t do that if you are constantly changing the plan.”
GE’s expansion of its health reimbursement account will see the plan repositioned to focus on employees’ lifestyles and work-life balance, with the account possibly being renamed to reflect this shift. This means employees will be able to use the benefit to pay for treatments designed to improve work-life balance, such as acupressure and massage, as well as for relevant further education courses.
GE also plans to enable employees to use health reimbursement to fund gym membership. Rowland says: “We have looked at what our overall objective is and what we are trying to achieve with this account, and the point is, we are trying to say to employees that we want them to be healthy and have a life outside of the organisation which is supported by GE.”
GE’s implementation of FlexChoice resulted in it being highly commended in the ‘Most effective use of a flexible benefits plan’ category at the 2012 Employee Benefits Awards.

Question 1. According to total rewards approach, the variable pay of the employee is

a. added into base pay

b. subtracted from base pay

c. multiplied to base pay

d. . divided to base pay

 Question 2. As the GE HR Head, what would have been the biggest challenge that you would have faced in such scenario?

a. prepering the compenastion Plan

b. communicating the plan and convincing employees

c. getting money for so much of workers benefit

d. no problem at all as GE is a big professional organisation

 Question 3. Flex choice introduced by GE are examle of____________

a. cafetaria plans

b. basket benefits

c. flexible benefits

d. all of the above

 Question 4. Flexible benefit introduced by GE pertains to which theory?

a. Maslow’s theory

b. ERG theory

c. Vroom’s expectancy theory

d. all of the above

 Question 5. Pension accordint to you is a ___________

a. expense

b. contractual right

c. perquisite

d. fringe benefit

 Question 6. The benefits introduced by GE are linked to ___________

a. performance

b. position

c. person

d. all of the above

 Question 7. The indirect compensation been included by GE would be categorised in _______________

a. base pay

b. benefits

c. variable pay

d. salaries

Question 8. The systematic way GE will be using to determine the worth of all the jobs will be________________

a. compensable evaluation

b. job evaluation

c. benchmark job

d. . job promotion structure

 Question 9. Which beneffit would employees try to gain when they want to achive their social needs?

a. insurance policy

b. health benefit

c. dicounted vouchers

d. flexible work timings

 Question 10. Which is the equity that GE will have to ensire while fixing the benefit plan?

a. internal equity

b. external equity

c. procedural equity

d. performance equity

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Organizational Design & Structural Process (EDL 410)- Semester 4

 

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1st Module Assessment

CASE STUDY

The Coca-Cola Company is truly global, and its main product is recognised and consumed worldwide. The Company organises and structures itself in a way that reflects that fact. At the same time, the Company looks to meet the particular needs of regional markets sensitively and its structure also needs to reflect that fact. This Case Study illustrates the way in which the Company has built an organisational structure that is robust and yet also flexible enough to meet these particular requirements.The Coca-Cola Company is the world’s largest beverage company and is the leading producer and marketer of soft drinks. The Company markets four of the world’s top five soft drinks brands: Coca-Cola, Diet Coke, Fanta and Sprite. The success of The Coca-Cola Company revolves around five main factors: A unique and recognised brand – Coca-Cola is among the most recognised trade marks around the globe :- Quality – consistently offering consumers products of the highest quality ; Marketing – delivering creative and innovative marketing programmes worldwide; Global availability – Coca-Cola products are bottled and distributed worldwide; Ongoing innovation – continually providing consumers with new product offerings e.g. Diet Coke (1982), Coca-Cola Vanilla (2002).

Although Coca-Cola is a global product with universal appeal, the Company actually operates in local environments around the world, with each country having its own unique needs and requirements. So while Coca-Cola is probably the only product in the world that is universally relevant in every corner of the globe, the Company feels that its responsibility is to ensure that with every single can or bottle of Coca-Cola sold and enjoyed, individual connections are made with their consumer. That can only be achieved at a local level.

The challenge facing The Coca-Cola Company today is therefore to continue to build an organisational structure that will deliver a global and local strategy. An organisation’s strategy is its plan for the whole business that sets out how the organisation will use its major resources. An organisation’s structure is the way the pieces of the organisation fit together internally. It also covers the links with external organisations such as partners.

For the organisation to deliver its plans, the strategy and the structure must be woven together seamlessly. The goal of The Coca-Cola Company is ‘to be the world’s leading provider of branded beverage solutions, to deliver consistent and profitable growth, and to have the highest quality products and processes.’ To achieve this goal, the Company has established six strategic priorities and has built these into every aspect of its business: Accelerate carbonated soft drinks growth, led by Coca-Cola ; Broaden the family of products, wherever appropriate e.g. bottled water, tea, coffee, juices, energy drinks ; Grow system profitability & capability together with the bottlers ;Creatively serve customers (e.g. retailers) to build their businesses ; Invest intelligently in market growth ; Drive efficiency & cost effectiveness by using technology and large scale production to control costs enabling our people to achieve extraordinary results everyday.

There are many ways to structure an organisation. For example, a structure may be built around:function: reflecting main specialisms e.g. marketing, finance, production, distribution. ; product: reflecting product categories e.g. bread, pies, cakes, biscuits ; process: reflecting different processes e.g. storage, manufacturing, packing, delivery.

Organisational structures need to be designed to meet aims. They involve combining flexibility of decision making, and the sharing of best ideas across the organisation, with appropriate levels of management and control from the centre. Modern organisations like The Coca-Cola Company, have built flexible structures which, wherever possible, encourage teamwork. For example, at Coca-Cola Great Britain any new product development (e.g. Coca-Cola Vanilla) brings together teams of employees with different specialisms.

At such team meetings, marketing specialists clarify the results of their market research and testing, food technologists describe what changes to a product are feasible, financial experts report on the cost implications of change. The Coca-Cola Company has a corporate (Head Office) segment that is responsible for giving the Company an overall direction and providing support to the regional structure.

Key strategic decisions at The Coca-Cola Company are made by an Executive Committee of 12 Company Officers. This Committee helped to shape the six strategic priorities set out earlier. The Chair of the Executive Committee acts as a figurehead for the Company and chairs the board meetings. He is also the Chief Executive Officer (CEO) and as such he is the senior decision maker. Other executives are responsible either for the major regions (e.g. Africa) or have an important business specialism e.g. the Chief Financial Officer.

As a company whose success rests on its ability to connect with local consumers, it makes sense for The Coca-Cola Company to be organised into a regional structure which combines centralisation and localisation. The Company operates six geographic operating segments – also called Strategic Business Units (SBUs) – as well as the corporate (Head Office) segment.

Each of these regional SBUs is sub-divided into divisions. Take the European union, SBU, for example. The UK fits into the Northwest Europe division. This geographical structure recognises that: markets are geographically separated ; tastes and lifestyles vary from area to area. As do incomes and consumption patterns ; markets are at different stages of development.

At a more local level the management of The Coca-Cola Company involves a number of functional specialisms. The management structure for Great Britain illustrates this. The structure of Coca-Cola Great Britain combines elements of centralisation and decentralisation. Divisions and regions operate as business unit teams, with each Director reporting to the General Manager, i.e. Division President. However, there is a matrix structure for each function e.g. the Finance Director in the GB Division reports to the GB President, but also to (dotted line) the Finance Director of North West Europe Division. In addition, functions within the Company operate across geographical boundaries to share best practice.

To take another example of local decision making at a regional (local) level the various SBUs are responsible for region-specific market research, and for developing local advertising, e.g. using the languages of the countries in which The Coca-Cola Company operates. A major region like Great Britain has its own marketing structure, organised as shown on the diagram.

The way The Coca-Cola Company works reflects the many countries and cultures in which it does business. It owns or licences nearly 400 brands in non-alcoholic beverages serving consumers in over 200 countries. An essential part of the organisation’s structure therefore focuses on ensuring that individual products are given the best possible support in regional markets.

Within the Company, different teams concentrate on particular products and use their specialist knowledge of the brands and consumer needs to support the sales and promotional effort. In some cases a product is developed solely for local consumption and an example of this is the product Lilt, which is only available in Great Britain and Ireland.

Examples of other products available in Great Britain include:

• Carbonated soft drinks- Coca-Cola, Fanta, Sprite

• Juice & juice drinks- Schweppes’ Tomato Juice Cocktail, Oasis, Five Alive

• Waters- Malvern

• Energy drinks- Burn

• Sports drinks- Powerade

• Squashes/cordials- Kia-Ora, Rose’s Lime Cordial.

Structuring an organisation is not only about organising internal relationships, it also involves external ones. The Coca-Cola Company has built well-structured relationships with a range of external groups including bottling partners.

People often assume that The Coca-Cola Company bottles and distributes its own beverages. For the most part, it does not. The Company’s primary business consists of manufacturing and selling beverage concentrates and syrups – as well as some finished beverages – to bottling and canning operations and other distributors.

The concentrates and syrups are generally sold to bottling partners, which are authorised to manufacture, distribute and sell branded products. The business system consisting of The Coca-Cola Company and bottling partners is referred to as ‘the Coca-Cola system’.

The relationship The Coca-Cola Company has with its bottlers worldwide is a key source of strength. The Company works together with them to ensure that concentrates and syrups are made into finished beverages that are produced and distributed to consumers around the globe with unmatched quality and service.

Every organisation has not only a structure but also a culture. ‘Culture’ describes the typical way an organisation does things, including patterns of behaviour and relationships.

Important aspects of culture at Coca-Cola Great Britain (which reflect the culture of The Coca-Cola Company as a whole) are an emphasis on teamwork, and empowerment. Coca-Cola Great Britain sees its employees as its most important asset.

Motivated employees provide the engine that drives the Company’s growth. Organising people into teams (e.g. marketing, sales or product teams) encourages people to feel valued. Within a team they are encouraged to contribute ideas and to be innovative. If they feel that something could be done better they are encouraged to voice that opinion.

By creating a friendly, innovative culture, Coca-Cola Great Britain is able to depend on a high quality workforce that helps it to maintain brand leadership in Great Britain and in every other market in which it operates. Trust is at the heart of every relationship, whether it be:

• customers’ and consumers’ trust that the Company will provide the highest level of service and attention to their needs

• bottling partners’ trust that the Company is operating in the best interests of the Coca-Cola system

• employees’ trust that their contribution is being valued in an open culture.

Open communication channels provide the means to support a culture based on relationships. Coca-Cola has a number of communication channels, including:

• monthly leadership team meeting (involving function heads)

• weekly department team meetings

• monthly employee team briefing sessions

• consultative employee groups for each region (with representatives meeting in a European Council)

• surveys to monitor employee views and feelings.

• The Coca-Cola Company has built internal and external structures to support the delivery of its business goals. The regional structure is the best way of supporting this growth, allowing attention to local requirements while at the same time building on a clear strategic direction from the centre.

•A culture of innovation, teamwork and partnership means that the Company has a firm foundation of relationships and open communication channels on which to build its growth.

Question 1: An Organisational structure may be built around____?

 a. function

 b. product

 c. processes

 d. All of above

Question 2. As discusses in this case study, By creating a friendly, innovative culture, Coca-Cola Great Britain is able to depend on a _______ that helps it to maintain brand leadership in Great Britain and in every other market in which it operates

 a. competitor

 b. high quality workforce

 c. business environment

 d. All of above

Question 3. As per this case study, the geographical structure recognises that____

 a. markets are geographically separated

 b. tastes and lifestyles vary from area to area, As do incomes and consumption patterns

 c. markets are at different stages of development

 d. All of above

Question 4. Every organisation has not only a structure but also a culture. ‘Culture’ describes : ( a) the way an organisation does things (b)patterns of behaviour and relationships

 a. Only a

 b. only b

 c. both a & b

 d. none of these

Question 5. In this case study, Key strategic decisions at The Coca-Cola Company are made by______

 a. Executive Committee of 20 Company Officers

 b. Company Committee of 15 Company Officers

 c. Executive Body of 18 Company Officers

 d. Executive Committee of 12 Company Officers

Question 6. Modern organisations like The Coca-Cola Company, have built ____ structures which, wherever possible, encourage _____

 a. inflexible , collision

 b. flexible, teamwork

 c. strong, competency

 d. None of above

Question 7. The challenge with the Coca-Cola Company was to continue to build an organisational structure that will______

 a. itself create a global impact

 b. deliver a global and local strategy

 c. Both A & B

 d. None of these

Question 8. The Coca-Cola Company has built _____ to support the delivery of its business goals. ( a) internal structure (b)external structures

 a. Both a & b

 b. only b

 c. only a

 d. none of these

Question 9. The structure of Coca-Cola Great Britain involve the element of : (a) centralisation ( b)decentralisation

 a. Both a & b

 b. only a

 c. only b

 d. None of these

Question 10. The success of The Coca-Cola Company revolves around which of the following factor?

 a. Quality

 b. Global availability

 c. Both A & B

 d. None of these

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2nd Module Assessment

Case Study

Every organisation has to work within a framework of certain environmental forces and there is a continuous interaction between the organisation and its environment. The impact of environment on organization is manifold. The interaction suggests a relationship between the two. This relationship can be analyzed in three ways.

First, the organisation can be thought of as an input-output system. It takes various inputs-human, capital, technical-from the environment. These inputs are transformed to produce outputs-goods, services, profits-which are given back to the environment. Thus, the organisation merely performs the function of input-output mediator. In this process, the environment in its interaction with the internal factors of the organisation will determine what kind of inputs should be taken or outputs given.

the organisation can be taken as the central focus for realizing the contributions of many groups, both within and outside the organisation. When these groups contribute to the well being of the organisation, they must have a legitimate share in organizational outputs. These groups may be employees, consumers, suppliers, shareholders, movement, and the society in general. Thus, the organizational functioning will be affected by the expectations of these groups and the organisation has to take these factors into account.

Third, the organisation can be treated as operating in environment presenting opportunities and threats to it. Thus, how an organisation can make the best use of the oppm.lunities provided or threats imposed is a matter of prime concern for it. Any single approach by itself is insufficient to explain the complex relationship between the organisation and its environ-ment-Moreover, these approaches are not inconsistent to each other; they are complementary. Thus, an organisation will be affected by the environment in which it works.

The environment-organisation interaction has a number of implications from strategic management point of view.

The environmental forces may affect different parts of the organisation in different ways because different parts interact with their relevant external environment. For example, the technological environment may affect the organization’s R & D department. Further, these forces of the environment may have direct effect on some parts but indirect effect on others. For example, any change in the fiscal policy of government may affect the finance department directly but it may affect production and marketing indirectly because their program may be recasted in the light of new situation, though not necessarily.

The environmental influence process is quite complex because most things influence all other things. For example, many of the environmental forces may be interacting among themselves and making the impact on the organisation quite complex. Moreover, the impact of these forces on the organisation may not be quite deterministic because of interaction of several forces. For example, the organisation structure will be determined on the basis of management philosophy and employee attitudes. But the organisation structure becomes the source for determining the employee attitudes. Thus, there cannot be direct and simple cause-effect relationship rather much complexity is expected.

The organizational response to the environmental forces may not be quite obvious and identical for different organizations but these are subject to different internal forces. Thus, there is not only the different perception of the environmental forces but also their impact on the organisation. Key factors determining responses to environmental impact may be managerial philosophy, life cycle of the organisation, profitability, etc.

The impact of environmental forces on the organizations is not unilateral but the organizations may also affect the environment. However, since the individual organizations may not be able to put pressure on the environment, they often put the pressure collectively. Various associations of the organizations are generally formed to protect the interest of their members. The protection of interest certainly signifies the way to overcome unilateral impact of the environment on the organizations. The nature of organisation-environment interaction is such that organizations, like human species or animals, must either adjust to the environment or perish.

Question 1. An analysis of the external environment enables a firm to identify____

 a. Strengths and opportunities

 b. Strength and weakness

 c. Weakness and threats

 d. Opportunities and threats

Question 2. An organization’s __________ embraces the behavior, rituals, and shared meaning held by employees that distinguishes that organization from all others.

 a. external environment

 b. Culture

 c. Dominant Culture

 d. Ethics

Question 3. Applying rationality to understand the sources and possible effects of environmental factors and to determine the organization’s opportunities and threats is called_____

 a. work analysis

 b. environmental analysis

 c. statistical analysis

 d. None of the above

Question 4. Customs, mores, values, and demographic characteristics of the society in which the organisation operates are what made up the _______ of the general environment.

 a. Political dimension

 b. technological dimension

 c. socio-cultural dimension

 d. Legal dimension

Question 5. The economic environment of a business includes_____

 a. Economic System

 b. Economic Policies

 c. Economic Conditions

 d. All of Above

Question 6. The term environmental scanning stands for____

 a. collecting information about the shareholders

 b. gathering data about the organization and its surroundings

 c. gathering information relating to the employees

 d. None of the above

Question 7. Which of the following is not an example of an internal environment?

 a. employees

 b. office and plant layout

 c. Competition

 d. reward system

Question 8. Which one is not an element of internal environment?

 a. Marketing capabilities

 b. Operational Capabilities

 c. Money and capital market

 d. Personal Capabilities

Question 9. Which one of the following is not a part of the external environment of an organization?

 a. Social Factors

 b. Legal Factors

 c. Political Factors

 d. Organisational Culture

Question 10. ____consists of economic conditions, economic policies , industrial policies and economic system.

 a. Business Environment

 b. Natural Environment

 c. Economic Environment

 d. Technological environment

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3rd Module Assessment

Case Study

Organizational structure is a system used to define a hierarchy within an organization. It identifies each job, its function and where it reports to within the organization. This structure is developed to establish how an organization operates and assists an organization in obtaining its goals to allow for future growth. The structure is illustrated using an organizational chart.

Several types of organizational structures are each defined to meet the needs of organizations that operate differently. Types of organizational structure include divisional, functional, geographical and matrix. A divisional structure is suitable for organizations with distinct business units, while a geographical structure provides a hierarchy for organizations that operate at several locations nationally or internationally. A functional organizational structure is based on each job’s duties. A matrix structure, which has two or several supervisors for each job to report to, is the most complicated but may be necessary for large organizations with many locations and functional areas.

Centralization

Although there are many types of organizational structures developed to meet each organization’s needs, all of them provide a hierarchy that reports to a centralized location and group of executives. The highest ranking member of an organizational chart is one or several top executives referred to as the president, chief executive officer or chief operating officer.

When an organizational structure is designed, job descriptions can be developed to not only meet an organizations goals, but allow for organizational and employee growth. Internal equity and employee retention are a key to successful operations. Recruitment is also one of the highest investments for organizations, so ensuring employees have promotional opportunities and job security can assist in reducing recruitment costs.

Organizational structure is also a fundamental core to create salary structures for an organization. Once the structure is established, salary ranges can be created for each job in the organization. In most cases, each job is aligned to a salary grade, and each grade has a specified salary range. This allows an organization to meet its financial goals and ensures salaries are distributed fairly within financial budgets.

If an organization expands, the organizational structure allows room for growth. This can include adding additional layers of management, new divisions, expanding one or several functional areas or appointing additional top executives. When the structure is reorganized for expansion, it provides the foundation to edit salaries and job descriptions quickly and efficiently with minimal disruption to an organization’s operations.

Question 1. Departmentation is a process where

 a. Tasks are grouped into jobs

 b. Jobs are grouped into effective work groups

 c. Work groups are grouped into identifiable segments

 d. All of the above

Question 2. Functional structures help to create……

 a. multi-skilled employees

 b. teamwork

 c. specialization

 d. project-work groups

Question 3. Organizational structure is a system used to define a _____ within an organization.

 a. goals

b. hierarchy

 c. objectives

 d. none of these

Question 4. Specialisation is a feature of which organisational structure?

 a. matrix

 b. divisional

 c. multi- divisional

 d. functional

Question 5. The process of dividing the work and then grouping them into units and subunits for the purpose of administration is known as

 a. Departmentation

 b. Organisation structure

 c. Committee

 d. all of above

Question 6. What is not a purpose of an organisational structure?

 a. to coordinate people & resources

 b. To limit workers’ rights

 c. to formalise authority

 d. to organise lines of communication

Question 7. What is not a purpose of an organisational structure?

 a. To coordinate People & resources

 b. To organise lines communication

 c. To formalise authority

 d. To limit Workers rights

Question 8. What is not an advantage of a hierarchical structure?

 a. quick response to change

 b. clear chain of command

 c. descipline stability

 d. small span of control

Question 9. Which of the following applies to the matrix structure?

 a. It allows the owner to control all aspects of the business

 b. It attempts to merge the benefits of decentralisation with co-ordination across all areas of the business

 c. It is found in companies offering a diverse range of products in a home market

 d. None of these

Question 10. Which of the following structure(s) is/are centralised?

 a. The simple structure only

 b. functional structure only

 c. both a & b

 d. none of these

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4th Module Assessment

Case Study

Organization design involves the creation of roles, processes and structures to ensure that the organization’s goals can be realized.Some people associate organization design with the mechanical arrangement of positions and reporting lines on the organization chart. It is certainly true that organizational designers also need to define the vertical structure, including reporting lines. However, organization design is much more than “boxology”.

Organization design problems are often some of the hardest problems that leaders face. Finding the right design often requires inventing a new solution to resolve a dilemma. And decisions made with regard to formal structure, roles and processes directly impact the jobs and careers of employees – and the ability of the firm to realize its strategic objectives.

In an organization re-design process one may consider elements at different levels; The overall organizational “architecture” (e.g., the corporate level, the role of the headquarters versus business areas in a large firm, etc.); The design of business areas and business units within a larger firm; The design of departments and other sub-units within a business unit; The design of individual roles.

The field of organization design sits at the intersection of strategy, operations, law and HR. An important driver for organization design is the organization’s strategy – but the design of the organization may also to a great extent determine which strategies we may be able to form in the first place. We should, in general, attempt to align the organization with the work processes – so there is a close link between operations and organization design. The design of the organization is also influenced by laws, regulations, and governance principles adopted by the industry sector. Last but not least, organization design is fundamentally about people. People inhabit the roles that are defined in the organization design proces. People participate in design processes and also influence designs in many direct and indirect ways.

Organizational design serves as the foundation on which all company operations are built, including such vital factors as the grouping of employees within different departments and the formal managerial hierarchies within a company. Savvy early stage organizational design choices can create a foundation for success, allowing an organization to develop a strong company culture, grow in response to increasing demand and adapt to changes in the marketplace.

Company Leadership

Organizational design influences the leadership structure of a company, setting forth reporting relationships and lines of authority reaching from the executive level to the front line. It is important to have a clear map of managerial responsibility and accountability to keep the company running smoothly. Without clear lines of authority, employees in different areas of the company can become misguided or confused, while others find themselves with an unnecessarily high level of supervision. The ideal leadership structure depends on the industry a company is in and the personalities of business owners.

Company Culture

The leadership structure put in place by organizational-design choices can have a direct and lasting effect on company culture. The grouping of employees in various departments and the managerial hierarchy influences the way employees interact with each other on the job. Organizational design can influence the degree to which front-line employees are allowed to solve complex problems on their own rather than involving a manager, for example. An organization designed to make extensive use of telecommuters will result in a company in which workplace relationships are often formed and strengthened solely through online interactions, as another example.

Future Growth

Organizational design choices made in the early stages of a business can either help or hinder growth plans. Organizational designs built to easily accommodate new managers and employees at different levels of the organization can add new positions without making significant structural changes. A company using freelancing telecommuters, for example, can add large numbers of freelancers with a small increase in the number of managers. A company that locates all employees in a small office, on the other hand, must acquire new office space or expand their current office to take on new employees.

Adaptability

Organizational design choices can develop distinct competitive advantages. Savvy business owners continually monitor changes in their industries and markets, looking for opportunities to adapt and develop new competitive advantages. Companies with taller organizational structures and complicated bureaucracies can find it difficult to adapt to changing market conditions, such as a growing use of lean business models or outsourcing in the industry. Companies with less complex organizational structures can find it easier to shift employees around, rework managerial hierarchies and redesign job descriptions for existing employees, all of which can increase efficiency or productivity in response to outside pressures.

Question 1. A _______is one in which its design is not defined by,or limited to, the horizontal, vertical, or external boundaries imposed by a predefined structure

 a. Project Structure

 b. Autonomous Internal Units

 c. Boundaryless Organisation (vese sahi ye hona chaiye but showing wrong)

 d. Learning Organisation

Question 2. An important driver for organization design is the organization’s _____

 a. Strategy

 b. Choice

 c. Differentiation

 d. All of above

Question 3. Companies with taller organizational structures and complicated bureaucracies can find it difficult to________

 a. face the competition

 b. Work in a structured way

 c. adapt to changing market conditions

 d. None of these

Question 4. In an organization re-design process , one may consider which of the following?

 a. design of individual roles

 b. overall organizational architecture

 c. design of business areas and business units within a larger firm

 d. All of above

Question 5. Organization design involves the creation of _______ to ensure that the organization’s goals can be realized.

 a. roles

 b. processes

 c. structures

 d. All of above

Question 6. Which of the following is true for organisational design?

 a. It is the way an organisation is to be structured and operated by its members

 b. It is widely regarded as a competitive capability

 c. It is a critical component of any organisation’s Organisation Development offering

 d. All of above

Question 7. Without clear lines of authority, employees in different areas of the company can become______

 a. misguided and confused

 b. competitive

 c. Both a & b

 d. None of these

Question 8. _______describes the degree to which tasks in an organisation are divided into separate jobs.

 a. Departmentalisation

 b. Chain of command

 c. Work Specialisation

 d. Span of Control

Question 9. _______is a system of organisation where the elements of the organisation are unranked or where they possess the potential to be ranked a number of different ways

 a. Organic Structure

 b. Heterarchy

 c. Hierarchy

 d. Responsible Autonomy

Question 10. ________refers to the degree to which jobs within the organisation are standardized and the extent to which employee behaviour is guided by rules and procedures

 a. Decentralisation

 b. Formalisation

 c. Centralisation

 d. Simple structure

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5th Module Assessment

Case Study

Organizational effectiveness is defined as an extent to which an organization achieves its predetermined objectives with the given amount of resources and means without placing undue strain on its members.

Sometimes efficiency and effectiveness are used as synonyms. However, there exists a difference between the two concepts. Therefore, it is important to explain the difference between the concepts of effectiveness and efficiency to understand why organizations may be effective but not efficient, or efficient but not effective. Effectiveness is a broad concept and takes into account a collection of factors both inside and outside an organization. It is commonly referred to as the degree to which predetermined goals are achieved. On the other hand, efficiency is a limited concept that pertains to the internal working of an organization. It refers to an amount of resources used to produce a particular unit of output. It is generally measured as the ratio of inputs to outputs. Further, effectiveness concentrates more on human side of organizational values and activities whereas efficiency concentrates on the technological side of an organization.

Goal attainment is the most widely used criterion of organizational effectiveness. In goal approach, effectiveness refers to maximization of profits by providing an efficient service that leads to high productivity and good employee morale. Several variables such as quality, productivity, efficiency, profit, turnover, accidents, morale, motivation and satisfaction, which help in measuring organizational effectiveness. However, none of the single variable has proved to be entirely satisfactory.

The main limitation of this approaches the problem of identifying the real goals rather than the ideal goals.

Functional Approach

This approach solves the problem of identification of organizational goals. Parson states that since it has been assumed that an organization is identified in terms of its goal, focus towards attainment of these goals should also aim at serving the society. Thus, the vital question in determining effectiveness is how well an organization is doing for the super-ordinate system.

The limitation of this approach is that when organizations have autonomy to follow its independent courses of action, it is difficult to accept that ultimate goal of organization will be to serve society. As such, it cannot be applied for measuring organizational effectiveness in terms of its contributions to social system.

Both the goal and functional approach do not give adequate consideration to the conceptual problem of the relations between the organization and its environment.

System Resource Approach

System-resource approach of organizational effectiveness emphasizes on inter-dependency of processes that relate the organization to its environment. The interdependence takes the form of input-output transactions and includes scarce and valued resources such as physical, economic and human for which every organization competes.

The limitation of this model is that an acquisition of resources from environment is again related to the goal of an organization. Therefore, this model is not different from the goal model.

Thus, discussion of organizational effectiveness leads to the conclusion that there is no single indicator of effectiveness. Instead, the approach should focus on operative goals that would serve as a basis for assessment of effectiveness.

Managerial effectiveness is a causal variable in organizational effectiveness. It has been defined in terms of organizational goal-achieving behavior, i.e., the manager’s own behavior contributes to achievement of organizational goals.

Question 1. A supply chain is an inter-organisational work system devoted to procuring materials and other inputs required to produce a firm’s products.

 a. Project

 b. Service system

 c. Supply Chain

 d. Information System

Question 2. Highly effective organisations exhibit strengths across which areas ?

 a. leadership

 b. decision making and structure

 c. work processes and systems

 d. All of above

Question 3. In achieving______ criteria, an effective organisation must be adaptive to new opportunities and hurdles, as well as being capable of developing the abilities of its members and itself.

 a. Short-term

 b. Up to one year

 c. Medium-term

 d. Longer term

Question 4. System-resource approach of organizational effectiveness emphasizes on?

 a. inter-dependency of processes

 b. Processes relate the organization to its environment

 c. Both a & b

 d. None of these

Question 5. the goal and ______ do not give adequate consideration to the conceptual problem of the relations between the organization and its environment.

 a. functional approach

 b. System Approach

 c. Competitive approch

 d. None of these

Question 6. The ways in which real people learn, change, adopt and align, get “affected” by dynamics in the environment and leveraging this knowledge to create effective organisations that are pioneers of_______

 a. Decision Making

 b. Change & Learning

 c. Group Effectiveness

 d. Self-Organizing & Adaptive Systems

Question 7. Which of the following is correct in context of goal approach effectiveness?

 a. refers to maximization of profits.

 b. provides an efficient service that leads to high productivity and good employee morale

 c. Both a & b

 d. None of these

Question 8. Which of the following is true for Organisational effectiveness?

 a. Defined as the efficiency with which an association is able to meet its objectives.

 b. It is about each individual doing everything they know how to do and doing it well

 c. It is the concept of how effective an organisation is in achieving its goals.

 d. All of above

Question 9. _______is defined as the reaching of new or other important information to the employees in due time.

 a. Care about clients

 b. Transmission of information

 c. Strategic Direction

 d. Collaboration

Question 10. _______is the lifeblood for an organisation that builds bridges among the employees within the organisation.

 a. System of control

 b. Coordination and integration

 c. Reward and incentive system

 d. Communication

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Assignment 2

Case Study

The case discusses the corporate culture of the Canada-based airline, WestJet Airlines Ltd. (WestJet). When WestJet was incorporated in 1996, the founders were of the view that culture was the one element of an organization that could not be duplicated and that it was a way of differentiating WestJet from the competitors.

WestJet encouraged a culture of participation and commitment and gave prime importance to empowered and happy employees, as it believed that these employees would provide customers with a good experience. At WestJet every employee was a shareholder in the company. The highly empowered employees were free to take any decision that would help them provide the best service to customers.

WestJet’s culture helped it remain profitable in an industry as highly volatile as the airline industry.

However, WestJet’s culture began to face a few threats. Venturing into the regional market through WestJet Encore and expanding internationally to various European destinations, made it difficult for WestJet to maintain the culture it was known for. At the same time, some of the employees were fueling unionization in the company, which could have a major impact on its culture in times to come.

In May 2014, Canada-based WestJet Airlines Ltd. (WestJet) won the prestigious Randstand Award and was chosen ‘Canada’s Most Attractive Employer’ for the third year in a row. WestJet was selected from among 150 companies by more than 8,000 people in search of employment opportunities. The airline was rated high for its work environment, strong management, interesting work, and training. According to Tom Turpin, President, Randstand Canada, “This award is truly the people’s choice award and to take home the title as Canada’s most attractive employer for three back-to-back years means they have created a very strong image and Canadians want to be part of that distinct culture.

WestJet, incorporated in 1996, was founded on a distinct corporate culture which considered people highly important to provide customers with a good experience. The founders wanted to develop a company with a culture of participation and commitment, where employees were friendly and caring in order to provide customers with a great flying experience. They were of the view that culture was one element of an organization that could not be duplicated and that it was a way of differentiating WestJet from the competitors. They insisted on developing a non-hierarchical structure with every employee being a shareholder in the company. The highly empowered employees were free to take any decision that would help provide customers with the best service.

WestJet’s origins date back to 1994, when a businessman based in Calgary, Canada Clive Beddoe (Beddoe), who traveled frequently, bought a small aircraft for the purpose. He also leased the plane through a local company Morgan Air Services, owned by Tim Morgan (Morgan). The high cost of air travel in Canada and the success of low-cost airlines in the US set the two of them thinking about starting their own discount airline. Beddoe and Morgan got together with two other businessmen, Don Bell (Bell) and Mark Hill (Hill), to start the airline. Their plan was to offer low fares, attract new customers, operate on new routes, and expand the market, instead of snatching away a share from existing airlines. They were of the view that the availability of low fares would encourage more people to fly.

Beddoe was the Chairman and CEO, Hill was the director of Strategic Planning, Morgan took charge of operations, while Bell took care of customer service. Other prominent investors in the venture included David Neeleman, whose company Morris Air was acquired by Southwest Airlines. The first commercial flight of the airline began operations in February 1996. All the pilots and flight crew were based in Calgary.

When the founders were contemplating starting a new airline, Mark Hill started reading about US-based SouthWest Airlines to understand how the culture of the company had evolved. He understood that it was the high performance culture that differentiated Southwest from its competitors. Hill felt that the culture in the company was reflected in the way the customers were treated. He believed that by aligning the interest of the people with business interest, it would be possible to foster a great culture.

The founders were of the view that the people working at WestJet, called WestJetters, must show a caring attitude toward the passengers, who were addressed as guests, and also toward their co-workers. The culture at WestJet was guided by a set of values

Incentives, a good culture and work environment, and open communication helped the founders to position WestJet as a fun airline. According to Rick Ericson, Aviation Consultant, “(Corporate Culture) It’s a key asset, and I give Beddoe full credit for creating that. Beddoe has done an excellent job of promoting WestJet externally as “a quirky little company that could. He has marketed the image of a company you can like and that you want to do business with.”

The atmosphere in WestJet was informal with the employees calling even the CEO by his first name. With all the employees having a share in the company, there was a feeling among them of working for themselves. There was a total absence of hierarchy, and anybody, irrespective of the position in the company, pitched in to help others, to get the work done on time, and to serve the customers.

There were some formal groups in the company to address employee grievances and encourage employee participation. At WestJet, CARE, or Creating a Remarkable Experience, was one of them. CARE was a group whose aim was to propagate the WestJet culture throughout the company. Inculcating the culture was not a one-time effort but an ongoing process, according to company insiders. CARE was responsible for organizing more than 250 events every year for the employees and their families. These included meetings with the pilots, the crew, discussions about culture, and town hall meetings. Twice a year WestJet held profit sharing parties – one during the spring and the other during the fall. At these parties, employees were given profit-sharing checks. The CARE team also brought out videos and plays to entertain the employees. At these celebrations outstanding employees received awards…

Analysts attributed WestJet’s success to the sense of ownership that was cultivated among the employees. Encouraging the employees to assume responsibility and providing them a role in the growth, resulted in better productivity, highly motivated employees, and high morale, all resulting in better customer service. “All of us are owners here, and we’re all very passionate about what we do. When you have a stake in the company, you want to do whatever it takes to make it work,” said Lisa Puchala, director of in-flight training and standards.

Beddoe was of the view that as the employees were responsible for providing a friendly environment to the guests, it was important to recruit people who fit in with the culture of the organization. According to Darryl Howard, of CIBC World Markets, the lead underwriter on the IPO of WestJet, “Hiring the right people is the most critical one. For the first couple of years he probably interviewed every person (himself) before they were hired. (Secondly,) he kept things simple. The business itself is quite defined. They’re not trying to compete on long hauls or business travel. They went specifically to short haul passenger service. And the third principle is that he insists that his people have fun. You’ve seen that on the flights where they tell hokey jokes. That goes a long way.”

Analysts attributed WestJet’s ability to provide the best customer service in the airline business mainly to its employee focus. The airline attributed its success to hiring the right kind of people and empowering them.

Since its inception, WestJet had been ranked among the most profitable airlines in the world, showing consistent growth in revenues. As of 2014, the company had achieved 38 consecutive quarters of profits, an impressive statistic in the highly turbulent airline industry. WestJet was able to save on employee costs, as the supervisory level was almost absent in the organization. The productivity per employee in WestJet was the highest in the Canadian airline industry. The company’s attitude toward its employees helped it score high with potential employees too. It was ranked at the top in Canada’s more admired corporate cultures for several years…

As the organization grew, there were subtle changes seen in the corporate culture with every new employee who joined. The fast pace of change in WestJet brought with it some anxiety among the employees. Analysts pointed out that as the number of employees was expected to exceed 10,000 by 2015, it might be difficult to keep them connected to each other and to the culture of WestJet. Analysts said that with WestJet expanding to European destinations, its business model had changed, placing a stress on the culture of the company. As it moved into international markets, it might be a challenge for WestJet to retain high levels of employee engagement and provide a unique guest experience that differentiated it from so many other carriers, they opined

Question 1. As discussed in this case study, which of the options is true. The founders were of the view that___ ? (A) culture was one element of an organization. ( B) Ciulture could not be duplicated ( C) Culture was a way of differentiating WestJet from the competitors.

 a. Only A

 b. Only A & C

 c. Only A & B

 d. All A, B, C

Question 2. As per the Case study which of the options is true . WestJet encouraged___ ? : (a) a culture of participation and commitment (b) gave prime importance to empowered and happy employees( c) it believed that the employees would provide customers with a good experience

 a. Only a & b

 b. Only b & c

 c. Only c & a

 d. All a,b,c

Question 3. Canada-based WestJet Airlines Ltd. won the prestigious Randstand Award and was chosen ___

 a. ‘Canada’s Most Competitive Employer’

 b. ‘Canada’s Most Attractive Employer’

 c. Both a& b

 d. None of these

Question 4. Founders of WestJet, insisted on developing ____? : (A) non-hierarchical structure (B)every employee being a shareholder in the company.

 a. Only a

 b. Both a & b

 c. Only B

 d. none of these

Question 5. In this case Study , CARE is referred to as ?

 a. Creating a Resourceful Experience

 b. Creating a Remarkable Experience

 c. Creating a Resourceful Expertise

 d. None of these

Question 6. WestJet was founded on a distinct corporate culture. Which of the following option is true in this context?

 a. It considered people/employees highly important

 b. Its aim was to provide customers with a good experience.

 c. Both a & b

 d. None of these

Question 7. WestJet was able to save on employee costs, as____?

 a. the supervisory level was almost absent in the organization

 b. it hired less employees

 c. training & development avctivities were not conducted

 d. None of the above

Question 8. WestJet was incorporated in____

 a. 1990

 b. 1996

 c. 1969

 d. 1970

Question 9. which of the following was adopted by WestJet , in order to get better productivity from the employees.

 a. Encouraging the employees to assume responsibility

 b. providing employees a role in the growth

 c. motivating employees

 d. All of above

Question 10.  _____helped the founders to position WestJet as a fun airline.

 a. Incentives

 b. a good culture and work environment

 c. open communication

 d. All of above

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Talent Acquisition & Development (EDL 408)-Semester 4

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1st Module Assessment

CASE STUDY

The Hotel Paris s competitive strategy is To use superior guest service to differentiate the Hotel Paris properties, and to thereby increase the length of stay and return rate of guests, and thus boost revenues and profitability. HR manager Lisa Cruz must now formulate functional policies and activities that sup- port this competitive strategy by eliciting the required employee behaviors and competencies.
As an experienced human resource director, the Hotel Paris s Lisa Cruz knew that recruitment and selection processes invariably influenced employee competencies and
behavior and, through them, the company s bottom line.
Everything about the workforce its collective skills, morale, experience, and motivation depended on attract- ing and then selecting the right employees.
In reviewing the Hotel Paris s employment systems, she was therefore concerned that virtually all the company s job descriptions were out of date, and that many jobs had no descriptions at all. She knew that without accurate job descriptions, all her improvement efforts would be in vain.
After all, if you don t know a job s duties, responsibilities, and human requirements, how can you decide who to hire or how to train them? To create human resource policies and practices that would produce employee competencies and behaviors needed to achieve the hotel s strategic aims, Lisa s team first had to produce a set of usable job descriptions.

A brief analysis, conducted with her company s CFO, reinforced that observation. They chose departments across the hotel chain that did and did not have updated job descrip- tions. Although they understood that many other factors might be influencing the results, they believed that the relationships they observed did suggest that having job descriptions had a positive influence on various employee behaviors and competencies. Perhaps having the descriptions facilitated the employee selection process, or perhaps the departments with the descriptions just had better managers.
She knew the Hotel Paris s job descriptions would have
to include traditional duties and responsibilities. However, most should also include several competencies unique to each job. For example, job descriptions for the front-desk clerks might include able to check a guest in or out in 5 minutes or less. Most service employees descriptions
included the competency, able to exhibit patience and guest supportiveness even when busy with other activities.

Question 1. Which competency do you think is least required in the employees of Hotel Paris?

Patience

 Ability to serve

 Being aggressive and fast

 Empathetic

Question 2. Lisa should make change in which amongst the below?

Job description

Job specification

 both a and b

 No changes are required

Question 3. Which information Lisa will have to collect first – Job description or Job specification?

Job description

 Job specification

 they are not related

 simultaneously

Question 4. Will the recruitment at Hotel Paris be affected by Lisa’s effort of doing Job analysis? If yes, how?

better employees

 no change in employees

 employee selection is not related to job analysis

 employees performance is not related job analysis

Question 5. Who should Lisa involve during the Job analysis process?

Top management

 Middle management

 Front office Executives

 all of the above

Question 6. If you were Lisa, seeing the correct need of job analysis, for which profile you will not do the Job analysis?

Sales Exective

 Chef

 Human resource executive    

 Chief Financial Officer         

Question 7. If you were Lisa, which position would you have given most priority for the job analysis?

Room service executive

 HR execuitve

 Marketing Manager

 Finance officer

Question 8. Which method of job analysis should Lisa use?

Observation

 Questionnairre

 Delphie Technique

 all of the above

Question 9. which amongst the below would Lisa write under Job specification?

Duties of job

 Skills required

 Working hours

 Compensation of the job

Question 10. Which amongst the below would Lisa write under Job description?

Qualification required

 Working hours of the job

 Skills needed

 all of the above

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2nd Module Assessment

CASE STUDY

If you were to ask Jennifer and her father what the main problem was in running their firm, their answer would be quick and short: hiring good people. Originally begun as a string of coin – operated laundromats requiring virtually no skilled help, the chain grew to six stores, each heavily dependent on skilled managers, cleaner – spotters, and pressers. Employees generally have no more than a high school education (often less), and the market for them is very competetive. Over a typical weekend literally dozens of want ads for experienced pressrers or cleaner – spotters can be found in area newspapers. All these people are usually paid around $15.00 per hour and they change jobs frequently. Jennifer and her father are thus faced with the continuing task of recruiting and hiring qualified workers out of a pool of individuals they feel are almost nomadic in their propensity to move from area to area and job to job. Turnover in their stores often approaches 400%. “Dont talk to me about human resources planning and trend anlaysis,” says Jennifer. ” We are fighting an economic war and I am happy just to be able to round up enough live applicants to be able to keep my trenches fully manned.”

Question 1. Choosing the factors that would impact the HR of the company is called as…

 a. sourcing

 b. planning

 c. forcasting

 d. premising

Question 2. Had you been at Jeniffers place what you would have done from the below options to make things better?

 a. Payning more incentives to retain

 b. Redesigning recruitment strategy

 c. Employee engagement

 d. all of the above

Question 3. What HR process flaw they do not have?

 a. Recruitment

 b. Training

 c. compensation

 d. Retention

Question 4. What is the flow of HR Process that Jeniffer should follow?

 a. Premising, forcasting, planning

 b. forecasting, planning, premising

 c. planning, premising, forecasting

 d. planning, forecasting, premising

Question 5. what is the right flow of below human resource functions?

 a. human resource planning, selection, recruitment

 b. recrtuiment, selection, human resource planning

 c. human resource planning, recruitment, selection

 d. selection, recruitment, human resource planning

Question 6. Which HR process becomes very important for Jennifer to apply?

 a. Recruitment

 b. Training

 c. Retention

 d. Human Resource Planning

Question 7. Which of the below function is not a part of Human resource planning?

 a. Job analysis

 b. Demand forcasting

 c. Supply Forecasting

 d. Premising

Question 8. Which recruitment method are they following?

 a. Internal recruitment

 b. external recruitment

 c. both a and b

 d. none of the above

Question 9. Which was or were the problems that Jennifer and her father were facing?

 a. Hiring correct people

 b. Retaining employees

 c. both a and b

 d. none of the above

Question 10. Whose approach is better?

 a. Jeniffer’s

 b. Jeniffer’s dad

 c. both a and b

 d. information is not given in the case study

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3rd Module Assessment

CASE STUDY

Whirlpool recently revamped their HR strategy into a People Excellence Strategy, establishing an operating system based on specific analytics they had gathered. In reviewing their diversity scorecard, it became apparent that Whirlpool had a “leaky bucket” problem. While they had made strides in the attraction and hiring of diverse talent, they were losing that talent at the same, if not a faster, rate. Clearly something needed to be done to engage and retain that talent.

To address this issue, Whirlpool’s talent management and diversity organizations developed a retention risk assessment toolkit. The toolkit includes three phases out of one was – “Assessing the impact Whirlpool would face should an employee leave”

To assess the impact on Whirlpool if an employee should leave, managers were asked to answer each of the following yes or no questions:

If this employee left Whirlpool, in the current business environment would we sustain a significant revenue loss or increased risk?
If this employee left Whirlpool, would we lose significant intellectual capital?
Is this employee in a critical role or on a Succession Plan for a critical role?
Is there a weak or non-existent contingency plan for if this role were vacant?
Would this role be difficult to fill both internally and externally?
The risk retention assessment includes 25 yes or no questions managers were asked to answer about their employees and their relationship to those employees. Questions are grouped into four areas: job/role, development and alignment to career goals, manager/employee relationship and external support system. Answers are then calculated to measure that employee’s level of “retention risk.”

Whirlpool quickly discovered that many managers had difficulty answering a significant number of questions about their employees. Understanding the importance of the manager/employee relationship to retaining talent, Whirlpool created a template for stay interviews as a way to help managers answer those questions, and to create dialogue between managers and employees. This approach directly impacted the level of interaction between the diverse talent and their individual supervisors.

Question 1 :”Attrition increases cost of the company”. Is this statement correct?

 a. Never

 b. Always

 c. At times

 d. Most of the times

Question 2. in the case study, which problem is mentioned by stating: “Whirlpool had a “leaky bucket” problem.”

 a. Less Productivity

 b. Less turnover

 c. More Attrition

 d. Less effeciency

Question 3. In which situation employee turnover will be least?

 a. Employees are satisfied

 b. Employees are motivated

 c. Employees are getting hygiene factors

 d. all of the above

Question 4. The kind of interviews taken place in organizations to ask about possible reasons leads to job turnover are classified as

 a. Employee firing interviews

 b. Transfer interviews

 c. Termination interviews

 d. Exit interviews

Question 5. What acccording to you the case study is related to ?

 a. Employee Training

 b. Employee engagement

 c. Employee retention

 d. Performance appraisal

Question 6. What according to the case is important for management to do in order to retain their employees?

 a. Manager – employee relationship

 b. Succession planning

 c. Employee Development

 d. Correct Recruitment Strategy

Question 7. What is inversely proprtional to retention?

 a. Attrition

 b. Turnover

 c. both a and b

 d. none of the above

Question 8. Which amongst the below were high at Whirlpool?/

 a. absenteeism rate

 b. satisfaction rate

 c. turnover rate

 d. employment rate

Question 9. Which HR processes might not have affected retention in Whirlpool?

 a. Training and development

 b. Performance evaluation

 c. Pay and benefits

 d. Termination and outplacement

Question 10. Which statement is correct

 a. Retention is a synonym to employee turnover

 b. Retention is a synonym to attrition

 c. Attrition and retention goes hand in hand

 d. none of the above

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4th Module Assessment

CASE STUDY

Modern Industries Ltd. (MIL) in Bangalore is an automobile ancillary Industry. It has turnover of Rs. 100 crores. It employs around 4,000 persons.

The company is professionally managed. The management team is headed by a dynamic Managing Director. He expects performance of high order at every level. It is more so at the Supervisory and Management levels. Normally the people of high calibre are selected through open advertisements to meet the human resource requirements at higher levels. However, junior-level vacancies are filled up by different types of trainees who undergo training in the company.

The company offers one-year training scheme for fresh engineering graduates. During the first six months of the training, the trainees are exposed to different functional areas which are considered to be the core training for this category of trainees. By then, the trainees are identified for placement against the available or projected vacancies. Their further training in the next quarter is planned according to individual placement requirements.

During the last quarter, the training will be on-the job. The trainee is required to perform the jobs expected of him after he is placed there. The training scheme is broadly structured mainly keeping in mind the training requirements of mechanical engineering graduates.

Mr. Rakesh Sharma joined the company in the year 1983 after his B. Tech . degree in paint Technology from a reputed institute. He was taken as a trainee against a projected vacancy in the paints application department In MIL, the areas of interest for a trainee in Paint Technology are few. Hence, Mr. Sharma’s core training was planned for the first 3 months only. Thereafter, he was put for on-the-job training in the paints application department. He took interest and showed enthusiasm in his work there. The report from the shop manager was quite satisfactory.

The performance of the trainee is normally reviewed once at the end of every quarter. The Training Manager personally talks to the trainee about his progress, strengths and shortcomings. At the end of the second quarter, the Training Manager called Mr. Sharma for his performance review. He appreciated his good performance and told him to keep it up. A month later Mr. Sharma met the Training Manager. He requested that his training period be curtailed to 7 months only and to absorb him as an Engineer. He argued that he had been performing like a regular employee in the department for the last one quarter. As such, there was no justification for him to be put on training anymore. Further, he indicated that by doing so, he could be more effective in the department as a regular engineer. He would also gain seniority as well as some monetary benefits as the trainees were eligible for a stipend only. The regular employees were eligible for many allowances like conveyance, dearness, house rent, education, etc. which was a substantial amount as compared to the stipend paid to a trainee.

The Training Manager turned down his request and informed him that it was not a practice of the company to do so. He told him that any good performance or contribution made by the trainees during the training period would be duly rewarded at the time of placement on completion of one year of training. Further, he told him that it would set a wrong precedence. Quite often, some trainees were put on the job much earlier than the normal period of three quarters for several reasons.

Thereafter, Mr. Sharma’s behaviour in the department became different. His changed attitude did not receive any attention in the initial period. However, by the end of the third quarter, his behaviour had become erratic and unacceptable. When he was asked by the Department Manager to attend to a particular task, he replied that he was still on training and such task shouldn’t be assigned to a trainee. According to him, those jobs were meant to be attended by full-time employees and not by trainees.

The Paintshop Manager complained to the Training Manager about Mr. Sharma’s behaviour and he was summoned by the Training Manager. During the discussions, Mr. Sharma complained that while all the remaining trainees were having a comfortable time as trainees, he was the only one who was put to a lot of stress and strain; the department was expecting too much room him. He felt that he should be duly rewarded for much hardwork; otherwise, it was not appropriate to expect similar .

The Training Manager tried to convince him again that he shouldn’t harp on rewards as he was a trainee; his sole concern should be to learn as much as possible and to improve his abilities. He should have a long-term perspective rather than such a narrow-minded approach. He also informed him that his good performance would be taken into account when the right occasion arose. He warned him that he was exhibiting negative attitude for which he would be viewed seriously. His demand for earlier placement was illogical and he should forget it as he had already completed 8 months and had to wait only for 4 months. He advised Mr. Sharma that the career of an individual had to be seen on a long-time perspective and that he should not resort to such childish behaviour as it would affect his own career and image in the company.

Mr. Sharma apparently seemed to have been convinced by the assurance given by the Training Manager and remained passive for some time. However, when the feedback was sought after a month, the report stated that he had become more perverted. He was called again for a counselling session and was given two weeks time to show improvement. At the end of those two weeks, the Training Manager met the Department Manager, to have a discussion about Mr. Sharma. It was found that there was absolutely no reason for Mr. Sharma to nurture a grievance on poor rewards. It was decided that he should be given a warning letter as per the practice of the company and, accordingly, he was issued a warning letter. This further aggravated the situation rather than bringing about any improvement. He felt offended and retaliated by thoroughly disobeying any instruction given to him. This deteriorated the situation more and the relationship between the manager of the department and the trainee was seriously affected In cases of rupture of relationship, normally the practice was to shift the trainee from the department where he was not getting along well so that he would be tried in some other department where he could have another lease for striking better rapport. But unfortunately, in the case of Mr. Sharma, there was no other department to which he could be transferred, since that was the only department where his specialisation could have been of proper use. By the time he completed his training, he turned out to be one who was not at all acceptable in the department for placement. His behaviour and involvement were lacking. In view of this, the Department Manager recommended that he be taken out of the department. When Mr. Sharma was informed about it, he was thoroughly depressed. One of the primary objectives of the Training Department is to recruit fresh graduates who have good potential and train them to be effective persons, in different departments. They are taken after a rigorous selection process which includes a written test, a preliminary and a final interview. During the training period, their aptitudes, strengths and weaknesses are identified. Their placement in departments is decided primarily on the basis of their overall effectiveness there. Here is a case where the person happened to be hard-working in the beginning but turned out to be a failure in the end. The Training Manager was conscious of this serious lapse and was not inclined to recommend his termination. But at the same time it was difficult to retain a person whose track record was not satisfactory. He still felt that a fresh look be given into this case but he was unable to find a way out. He was now faced with the dilemma whether to terminate or not to terminate Mr. Rakesh Sharma.

Question 1. According to you whos was wrong in the case?

 a. Mr. Sharma

 b. Training Manager

 c. both a and b

 d. none of the above

Question 2. As the owner of the company what remedial action would you have taken?

 a. Should have terminated Mr. Sharma

 b. Should have asked the training manager to apologise to Mr. Sharma in public

 c. Should have counselled Mr. Sharma and asked training manager to apologise in private to Mr. Sharma

 d. Should have not interfered in the matter

Question 3. How do you think policies of an organisation should be?

 a. Rigid

 b. Flexible

 c. conservative

 d. none of the above

Question 4.If you were the training manager what decision you would have taken?

 a. Terminates Mr. Sharma

 b. Put him again for training

 c. counselled him to make him motivated

 d. Left him the way he was

Question 5. Training given on live machines to Engineers will be considered as

a. On the job training

 b. off the job training

 c. both a and b

 d. none of the above

Question 6. What according to you should have been the decsion of the training manager after completion of 6 months?

 a. Should have reduced training of Mr. Sharma

 b. special evaluation could have been conducted for Mr. Sharma to make sure he has learnt all skills

 c. Should have altered the training policy permanently for better productive results

 d. all of the above

Question 7. Which according to you would be more fruitful as a training policy?

 a. having fixed training period

 b. training should get over once the employee is able to perform

 c. fixed training period but should be flexible for employees performing well

 d. none of the above

Question 8. Which parameter of training evaluation is forefeited in the case study, the most?

 a. Learning

 b. Reaction

 c. Behaviour

 d. Result

Question 9. Which type of training is given to the employees after the first 6 months are over, at Modern Industries?

 a. on the job training

 b. off the job training

 c. both a andb

 d. none of the above

Question 10. Which type of training is given to the employees during the first 6 months at Modern Industries?

 a. on the job training

 b. off the job training

 c. both a and b

 d. none of the above

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5th Module Assessment

CASE STUDY

Hindustan Lever Research Centre (HLRC) was set up in the year 1967 at Mumbai. At that time the primary challenge was to find suitable alternatives to the edible oils and fats that were being used as raw materials for soaps. Later, import substitution and export obligations directed the focus towards non-edible oil seeds, infant foods, perfumery chemicals, fine chemicals, polymers and nickel catalyst. This facilitated creation of new brands which helped build new businesses.HUL believes in meritocracy and has a comprehensive performance management system, which ensures that people are rewarded according to their performance and abilities. Almost 47% of the entire managerial cadres are people who have joined us through lateral recruitment. Over the years many break through innovations have taken place. Hindustan Lever Research gained eminence within Unilever Global R&D and became recognized as one of the six global R&D Centers of Unilever with the creation of Unilever Research India in Bangalore in 1997.At Bangalore R&D center, a team of 10 scientists were appointed for a project on ‘shampoo’ line. Suranjan Sircar heading the team as Principal Research Scientist with the support of Vikas Pawar, Aparna Damle, Jaideep Chatterjee, Amitava Pramanik as Research Scientists. Suresh Jayaraman & Punam Bandyopadhyay were Research Associates. Vikas Pawar came up with an idea of pet shampoos during brainstorming with the team. “Hey, why don’t we target the pet care segment because in India, pet industry is being seriously looked at as a growing industry. I had been working on this concept for a few weeks & have done some initial research as well”, said Vikas. “I think we should just focus on the dog segment & bring out a range of shampoos that are breed specific”, contributed by Aparna Damle, who was a new unmarried scientist in the company. “Oh that’s a really great idea, a breakthrough” said Jaideep & Amitava appreciating Aparna. The idea given by Aparna got support from both colleagues & head. Vikas was although not comfortable with his credit being taken away. He also felt that creating brand specific shampoos would not be a profitable innovation thus, no point on centrating efforts on that. With this in mind he put his point forward but couldn’t gather consensus. After the discussion, Jaideep & Amitava being friends to Vikas, consoled him & showed confidence in his plan & thoughts. “We understand what you are going through. The idea was yours & Aparna took all your credit. Don’t worry we are with you & be careful from next time.”

Nevertheless, in the meeting Aparna presented her proposal for the idea mentioning requirements & chemical details. The meeting began with motivational speech & plan of action by the head of the team. A lot was discussed in detail & tasks were allotted along with deadlines. Immediately after the presentation Jaideep & Amitava approached Aparna & eulogized her research & proposal reiterating the importance of breed specific range of shampoos. Vikas lay aside his ego & went ahead with full dedication & commitment, however during the tenure of the research he noticed poor attitude of team members. Punam was not regular with deadlines; she submitted her research on breeds four days after deadline. Suresh was asked to coordinate with members looking into chemical research but Vikas observed him most of the times in the recreation room, so he asked him “Hi, so what’s the progress in chemical research so far?” Suresh replied that he had done whatever he was asked to do by senior scientist. He reported this lack of commitment & proactive attitude to Suranjan Sircir & asked for an action against them. “Hmm… I know what’s happening in the team. I have worked for 20 years in this industry & from my experience I know what to do & when to do”, he retorted back. Finally the project got completed 4 months after deadline. Vikas went back to the lab; sitting & wondering at the flaws in the group.

Question 1: If you were at Suranjan’ s place what corrective measure would you have taken?

 a. Would have asked Jaideep to resign

 b. Would have made Vikas the team leader

 c. Would have called for a team meeting to enhance team spirit

 d. all of the above

Question 2. Jaideep and Amitava were involved in which type of communication?

 a. Formal

 b. informal

 c. both

 d. none of the above

Question 3. what kind of leadership Suranjan has potrayed in the case?

 a. Directive

 b. Participative

 c. Laissez faire

 d. democratic

Question 4. What made Vikas unhappy?

 a. lack of incentive

 b. lack of recognition

 c. lack of team consensus

 d. lack of leadeership

Question 5. What was missing in the team?

 a. Leadership

 b. Open communication

 c. Team spirit

 d. all of the above

Question 6. which amongst the below is not a stage of group formation

 a. storming

 b. norming

 c. brainstorming

 d. adjourning

Question 7. which is the correct sequence of team formation

 a. storming, forming

 b. norming, performing

 c. norming, storming

 d. adjourning, performing

Question 8. Which type of team is shown in the case study?

 a. Vurtul team

 b. Crossfunctional team

 c. Task team

 d. none of the above

Question 9. who according to you played the most passive role in the team building

 a. Aparna

 b. Vikas

 c. Suresh

 d. Suranjan

Question 10. who instigated poltics and negatiity in the team

 a. Jaideep and Amitava

 b. Vikas

 c. Aparna

 d. Suranjan

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Assignment 2

CASE STUDY

Satish was a Sales Manager for Industrial Products Company in City branch. A week ago,
he was promoted and shifted to Head Office as Deputy Manager – Product Management for a
division of products which he was not very familiar with. Three days ago, the company VP –
Mr. George, convened a meeting of all Product Managers. Satish’s new boss (Product
Manager Ketan) was not able to attend due to some other preoccupation. Hence, the
Marketing Director, Preet – asked Satish to attend the meeting as this would give him an
exposure into his new role.

At the beginning of the meeting, Preet introduced Satish very briefly to the VP. The meeting
started with an address from the VP and soon it got into a series of questions from him to
every Product Manager. George, of course, was pretty thorough with every single product of
the company and he was known to be pushy and a blunt veteran in the field. Most of the
Product Managers were very clear of George’s ways of working and had thoroughly prepared
for the meeting and were giving to the point answers. George then started with Satish.
Satish being new to the product, was quite confused and fared miserably.

Preet immediately understood that George had possibly failed to remember that Satish was
new to the job. He thought of interrupting George’s questioning and giving a discrete
reminder that Satish was new. But by that time, George who was pretty upset with the lack
of preparation by Satish made a public statement “Gentlemen, you are witnessing here an
example of sloppy work and this can’t be excused”.

Now Preet was in two minds – should he interrupt George and tell him that Satish is new in
that position OR should he wait till the end of the meeting and tell George privately. Preet
chose the second option.

Satish was visibly angry at the treatment meted out by George but he also chose to keep
mum. George quickly closed the meeting saying that he found in general, lack of planning in
the department and asked Preet to stay back in the room for further discussions.
Before Preet could give any explanation on Satish, George asked him “Tell me openly, Preet,
was I too rough with that boy?” Preet said “Yes, you were. In fact, I was about to remind
you that Satish is new to the job”. George explained that the fact that Satish was new to
the job didn’t quite register with him during the meeting. George admitted that he had
made a mistake and asked his secretary to get Satish report to the room immediately.
A perplexed and uneasy Satish reported to George’s room after few minutes.

George looking Satish straight into his eyes said “I have done something which I should
have never even thought of and I want to apologise to you. It is my mistake that I did not
recollect that you were new to the job when I was questioning you”.
Satish was left speechless.

George continued “I would like to state few things clearly to you. Your job is to make sure
that people like me and your bosses do not make stupid decisions. We have good
confidence in your abilities and that is why we have brought you to the Head Office. For
everybody, time is required for learning. I will expect you to know all the nuances of your
product in three months time. Until then you have my complete confidence”.
George closed the conversation with a big reassuring handshake with Satish

Question 1. Did Preet make a mistake by not intervening during the meeting and correct George’s misconception about Satish?

 a. yes he should have spoken to protect satish

 b. he did correct by not speaking as VP is a very senior person

 c. both a and b are correct

 d. both a and b are wrong

Question 2. How do you find George as a leader?

 a. he is a autocratic leader

 b. he is a democratic leader

 c. he is a transactional leader

 d. he has laissez fairre leadership style

Question 3. How do you find Satish as an employee?

 a. dumb

 b. hard working

 c. unreliable

 d. Ill mannerred

Question 4. If you were in Satish’s place, how would you to respond to George’s apology?

 a. I will request to be shifted back to the city branch

 b. I will ask George to be carefule in future while talking to me

 c. I will react reassuringly that I will perorm well

 d. I will try to show my product knowledge

Question 5. Promotion is a form of

 a. external recruitment

 b. internal recruitment

 c. both a and b are correct

 d. promotion is not related to recruitment

Question 6. Was George correct in saying that Satish is there to correct the “stupid mistake” of his boss and George?

a. yes he was correct

 b. he was wrong to say so

 c. may be

 d. boss are always correct

Question 7. Which HR Practice you find missing in the case?

 a. training

 b. induction

 c. organisation structuring

 d. departmentalisation

Question 8. Which leadership style does Geroge have?

 a. people oriented

 b. task oriented

 c. both a and b are correct

 d. neiher of a and b

Question 9. Who do you think did not fulfill his responsibility to the fullest

 a. Satish

 b. George

 c. Preet

 d. Satish’s immediate boss

Question 10. Why was it at all necessary for George to apologise to such a junior employee like Satish?

 a. to keep Satish’s morals high

 b. to show Preet that he himself is a good leader

 c. to build trust in Satish

 d. to further reinforce that Satish should have knowledge about products

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Organizational Design & Structural Process (EDL 410)- Semester 4

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Block 1
CASE STUDY
The Coca-Cola Company is truly global, and its main product is recognised and consumed worldwide. The Company organises and structures itself in a way that reflects that fact. At the same time, the Company looks to meet the particular needs of regional markets sensitively and its structure also needs to reflect that fact. This Case Study illustrates the way in which the Company has built an organisational structure that is robust and yet also flexible enough to meet these particular requirements.The Coca-Cola Company is the world’s largest beverage company and is the leading producer and marketer of soft drinks. The Company markets four of the world’s top five soft drinks brands: Coca-Cola, Diet Coke, Fanta and Sprite. The success of The Coca-Cola Company revolves around five main factors: A unique and recognised brand – Coca-Cola is among the most recognised trade marks around the globe :- Quality – consistently offering consumers products of the highest quality ; Marketing – delivering creative and innovative marketing programmes worldwide; Global availability – Coca-Cola products are bottled and distributed worldwide; Ongoing innovation – continually providing consumers with new product offerings e.g. Diet Coke (1982), Coca-Cola Vanilla (2002).
Although Coca-Cola is a global product with universal appeal, the Company actually operates in local environments around the world, with each country having its own unique needs and requirements. So while Coca-Cola is probably the only product in the world that is universally relevant in every corner of the globe, the Company feels that its responsibility is to ensure that with every single can or bottle of Coca-Cola sold and enjoyed, individual connections are made with their consumer. That can only be achieved at a local level.
The challenge facing The Coca-Cola Company today is therefore to continue to build an organisational structure that will deliver a global and local strategy. An organisation’s strategy is its plan for the whole business that sets out how the organisation will use its major resources. An organisation’s structure is the way the pieces of the organisation fit together internally. It also covers the links with external organisations such as partners.
For the organisation to deliver its plans, the strategy and the structure must be woven together seamlessly. The goal of The Coca-Cola Company is ‘to be the world’s leading provider of branded beverage solutions, to deliver consistent and profitable growth, and to have the highest quality products and processes.’ To achieve this goal, the Company has established six strategic priorities and has built these into every aspect of its business: Accelerate carbonated soft drinks growth, led by Coca-Cola ; Broaden the family of products, wherever appropriate e.g. bottled water, tea, coffee, juices, energy drinks ; Grow system profitability & capability together with the bottlers ;Creatively serve customers (e.g. retailers) to build their businesses ; Invest intelligently in market growth ; Drive efficiency & cost effectiveness by using technology and large scale production to control costs enabling our people to achieve extraordinary results everyday.
There are many ways to structure an organisation. For example, a structure may be built around:function: reflecting main specialisms e.g. marketing, finance, production, distribution. ; product: reflecting product categories e.g. bread, pies, cakes, biscuits ; process: reflecting different processes e.g. storage, manufacturing, packing, delivery.
Organisational structures need to be designed to meet aims. They involve combining flexibility of decision making, and the sharing of best ideas across the organisation, with appropriate levels of management and control from the centre. Modern organisations like The Coca-Cola Company, have built flexible structures which, wherever possible, encourage teamwork. For example, at Coca-Cola Great Britain any new product development (e.g. Coca-Cola Vanilla) brings together teams of employees with different specialisms.
At such team meetings, marketing specialists clarify the results of their market research and testing, food technologists describe what changes to a product are feasible, financial experts report on the cost implications of change. The Coca-Cola Company has a corporate (Head Office) segment that is responsible for giving the Company an overall direction and providing support to the regional structure.
Key strategic decisions at The Coca-Cola Company are made by an Executive Committee of 12 Company Officers. This Committee helped to shape the six strategic priorities set out earlier. The Chair of the Executive Committee acts as a figurehead for the Company and chairs the board meetings. He is also the Chief Executive Officer (CEO) and as such he is the senior decision maker. Other executives are responsible either for the major regions (e.g. Africa) or have an important business specialism e.g. the Chief Financial Officer.
As a company whose success rests on its ability to connect with local consumers, it makes sense for The Coca-Cola Company to be organised into a regional structure which combines centralisation and localisation. The Company operates six geographic operating segments – also called Strategic Business Units (SBUs) – as well as the corporate (Head Office) segment.
Each of these regional SBUs is sub-divided into divisions. Take the European union, SBU, for example. The UK fits into the Northwest Europe division. This geographical structure recognises that: markets are geographically separated ; tastes and lifestyles vary from area to area. As do incomes and consumption patterns ; markets are at different stages of development.
At a more local level the management of The Coca-Cola Company involves a number of functional specialisms. The management structure for Great Britain illustrates this. The structure of Coca-Cola Great Britain combines elements of centralisation and decentralisation. Divisions and regions operate as business unit teams, with each Director reporting to the General Manager, i.e. Division President. However, there is a matrix structure for each function e.g. the Finance Director in the GB Division reports to the GB President, but also to (dotted line) the Finance Director of North West Europe Division. In addition, functions within the Company operate across geographical boundaries to share best practice.
To take another example of local decision making at a regional (local) level the various SBUs are responsible for region-specific market research, and for developing local advertising, e.g. using the languages of the countries in which The Coca-Cola Company operates. A major region like Great Britain has its own marketing structure, organised as shown on the diagram.
The way The Coca-Cola Company works reflects the many countries and cultures in which it does business. It owns or licences nearly 400 brands in non-alcoholic beverages serving consumers in over 200 countries. An essential part of the organisation’s structure therefore focuses on ensuring that individual products are given the best possible support in regional markets.
Within the Company, different teams concentrate on particular products and use their specialist knowledge of the brands and consumer needs to support the sales and promotional effort. In some cases a product is developed solely for local consumption and an example of this is the product Lilt, which is only available in Great Britain and Ireland.
Examples of other products available in Great Britain include:
• Carbonated soft drinks- Coca-Cola, Fanta, Sprite
• Juice & juice drinks- Schweppes’ Tomato Juice Cocktail, Oasis, Five Alive
• Waters- Malvern
• Energy drinks- Burn
• Sports drinks- Powerade
• Squashes/cordials- Kia-Ora, Rose’s Lime Cordial.
Structuring an organisation is not only about organising internal relationships, it also involves external ones. The Coca-Cola Company has built well-structured relationships with a range of external groups including bottling partners.
People often assume that The Coca-Cola Company bottles and distributes its own beverages. For the most part, it does not. The Company’s primary business consists of manufacturing and selling beverage concentrates and syrups – as well as some finished beverages – to bottling and canning operations and other distributors.
The concentrates and syrups are generally sold to bottling partners, which are authorised to manufacture, distribute and sell branded products. The business system consisting of The Coca-Cola Company and bottling partners is referred to as ‘the Coca-Cola system’.
The relationship The Coca-Cola Company has with its bottlers worldwide is a key source of strength. The Company works together with them to ensure that concentrates and syrups are made into finished beverages that are produced and distributed to consumers around the globe with unmatched quality and service.
Every organisation has not only a structure but also a culture. ‘Culture’ describes the typical way an organisation does things, including patterns of behaviour and relationships.
Important aspects of culture at Coca-Cola Great Britain (which reflect the culture of The Coca-Cola Company as a whole) are an emphasis on teamwork, and empowerment. Coca-Cola Great Britain sees its employees as its most important asset.
Motivated employees provide the engine that drives the Company’s growth. Organising people into teams (e.g. marketing, sales or product teams) encourages people to feel valued. Within a team they are encouraged to contribute ideas and to be innovative. If they feel that something could be done better they are encouraged to voice that opinion.
By creating a friendly, innovative culture, Coca-Cola Great Britain is able to depend on a high quality workforce that helps it to maintain brand leadership in Great Britain and in every other market in which it operates. Trust is at the heart of every relationship, whether it be:
• customers’ and consumers’ trust that the Company will provide the highest level of service and attention to their needs
• bottling partners’ trust that the Company is operating in the best interests of the Coca-Cola system
• employees’ trust that their contribution is being valued in an open culture.
Open communication channels provide the means to support a culture based on relationships. Coca-Cola has a number of communication channels, including:
• monthly leadership team meeting (involving function heads)
• weekly department team meetings
• monthly employee team briefing sessions
• consultative employee groups for each region (with representatives meeting in a European Council)
• surveys to monitor employee views and feelings.
• The Coca-Cola Company has built internal and external structures to support the delivery of its business goals. The regional structure is the best way of supporting this growth, allowing attention to local requirements while at the same time building on a clear strategic direction from the centre.
• A culture of innovation, teamwork and partnership means that the Company has a firm foundation of relationships and open communication channels on which to build its growth.
Question 1
Modern organisations like The Coca-Cola Company, have built ____ structures which, wherever possible, encourage _____

inflexible , collision

flexible, teamwork

strong, competency

None of above
Question 2
As per this case study, the geographical structure recognises that____

markets are geographically separated

tastes and lifestyles vary from area to area, As do incomes and consumption patterns

markets are at different stages of development

All of above
Question 3
Every organisation has not only a structure but also a culture. ‘Culture’ describes : ( a) the way an organisation does things (b)patterns of behaviour and relationships

Only a

only b

both a & b

none of these
Question 4
The Coca-Cola Company has built _____ to support the delivery of its business goals. ( a) internal structure (b)external structures

Both a & b

only b

only a

none of these
Question 5
As discusses in this case study , By creating a friendly, innovative culture, Coca-Cola Great Britain is able to depend on a _______ that helps it to maintain brand leadership in Great Britain and in every other market in which it operates

competitor

high quality workforce

business environment

All of above
Question 6
The success of The Coca-Cola Company revolves around which of the following factor?

Quality

Global availability

Both A & B

None of these
Question 7
The structure of Coca-Cola Great Britain involve the element of : (a) centralisation ( b)decentralisation

Both a & b

only a

only b

None of these
Question 8
In this case study, Key strategic decisions at The Coca-Cola Company are made by______

Executive Committee of 20 Company Officers

Company Committee of 15 Company Officers

Executive Body of 18 Company Officers

Executive Committee of 12 Company Officers
Question 9
The challenge with the Coca-Cola Company was to continue to build an organisational structure that will______

itself create a global impact

deliver a global and local strategy

Both A & B

None of these
Question 10
An Organisational structure may be built around____?

function

product

processes

All of above

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Block 2
CASE STUDY
Every organisation has to work within a framework of certain environmental forces and there is a continuous interaction between the organisation and its environment. The impact of environment on organization is manifold. The interaction suggests a relationship between the two. This relationship can be analyzed in three ways.
First, the organisation can be thought of as an input-output system. It takes various inputs-human, capital, technical-from the environment. These inputs are transformed to produce outputs-goods, services, profits-which are given back to the environment. Thus, the organisation merely performs the function of input-output mediator. In this process, the environment in its interaction with the internal factors of the organisation will determine what kind of inputs should be taken or outputs given.
the organisation can be taken as the central focus for realizing the contributions of many groups, both within and outside the organisation. When these groups contribute to the well being of the organisation, they must have a legitimate share in organizational outputs. These groups may be employees, consumers, suppliers, shareholders, movement, and the society in general. Thus, the organizational functioning will be affected by the expectations of these groups and the organisation has to take these factors into account.
Third, the organisation can be treated as operating in environment presenting opportunities and threats to it. Thus, how an organisation can make the best use of the oppm.lunities provided or threats imposed is a matter of prime concern for it. Any single approach by itself is insufficient to explain the complex relationship between the organisation and its environ-ment-Moreover, these approaches are not inconsistent to each other; they are complementary. Thus, an organisation will be affected by the environment in which it works.
The environment-organisation interaction has a number of implications from strategic management point of view.
The environmental forces may affect different parts of the organisation in different ways because different parts interact with their relevant external environment. For example, the technological environment may affect the organization’s R & D department. Further, these forces of the environment may have direct effect on some parts but indirect effect on others. For example, any change in the fiscal policy of government may affect the finance department directly but it may affect production and marketing indirectly because their program may be recasted in the light of new situation, though not necessarily.
The environmental influence process is quite complex because most things influence all other things. For example, many of the environmental forces may be interacting among themselves and making the impact on the organisation quite complex. Moreover, the impact of these forces on the organisation may not be quite deterministic because of interaction of several forces. For example, the organisation structure will be determined on the basis of management philosophy and employee attitudes. But the organisation structure becomes the source for determining the employee attitudes. Thus, there cannot be direct and simple cause-effect relationship rather much complexity is expected.
The organizational response to the environmental forces may not be quite obvious and identical for different organizations but these are subject to different internal forces. Thus, there is not only the different perception of the environmental forces but also their impact on the organisation. Key factors determining responses to environmental impact may be managerial philosophy, life cycle of the organisation, profitability, etc.
The impact of environmental forces on the organizations is not unilateral but the organizations may also affect the environment. However, since the individual organizations may not be able to put pressure on the environment, they often put the pressure collectively. Various associations of the organizations are generally formed to protect the interest of their members. The protection of interest certainly signifies the way to overcome unilateral impact of the environment on the organizations. The nature of organisation-environment interaction is such that organizations, like human species or animals, must either adjust to the environment or perish.
Question 1
Which one of the following is not a part of the external environment of an organization?

Social Factors

Legal Factors

Political Factors

Organisational Culture
Question 2
The term environmental scanning stands for____

collecting information about the shareholders

gathering data about the organization and its surroundings

gathering information relating to the employees

None of the above
Question 3
____consists of economic conditions, economic policies , industrial policies and economic system.

Business Environment

Natural Environment

Economic Environment

Technological environment
Question 4
An analysis of the external environment enables a firm to identify____

Strengths and opportunities

Strength and weakness

Weakness and threats

Opportunities and threats
Question 5
Which one is not an element of internal environment?

Marketing capabilities

Operational Capabilities

Money and capital market

Personal Capabilities
Question 6
Customs, mores, values, and demographic characteristics of the society in which the organisation operates are what made up the _______ of the general environment.

Political dimension

technological dimension

socio-cultural dimension

Legal dimension
Question 7
Applying rationality to understand the sources and possible effects of environmental factors and to determine the organization’s opportunities and threats is called_____

work analysis

environmental analysis

statistical analysis

None of the above
Question 8
An organization’s __________ embraces the behavior, rituals, and shared meaning held by employees that distinguishes that organization from all others.

external environment

Culture

Dominant Culture

Ethics
Question 9
Which of the following is not an example of an internal environment?

employees

office and plant layout

Competition

reward system
Question 10
The economic environment of a business includes_____

Economic System

Economic Policies

Economic Conditions

All of Above

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Block 3
CASE STUDY
Organizational structure is a system used to define a hierarchy within an organization. It identifies each job, its function and where it reports to within the organization. This structure is developed to establish how an organization operates and assists an organization in obtaining its goals to allow for future growth. The structure is illustrated using an organizational chart.
Several types of organizational structures are each defined to meet the needs of organizations that operate differently. Types of organizational structure include divisional, functional, geographical and matrix. A divisional structure is suitable for organizations with distinct business units, while a geographical structure provides a hierarchy for organizations that operate at several locations nationally or internationally. A functional organizational structure is based on each job’s duties. A matrix structure, which has two or several supervisors for each job to report to, is the most complicated but may be necessary for large organizations with many locations and functional areas.
Centralization
Although there are many types of organizational structures developed to meet each organization’s needs, all of them provide a hierarchy that reports to a centralized location and group of executives. The highest ranking member of an organizational chart is one or several top executives referred to as the president, chief executive officer or chief operating officer.
When an organizational structure is designed, job descriptions can be developed to not only meet an organizations goals, but allow for organizational and employee growth. Internal equity and employee retention are a key to successful operations. Recruitment is also one of the highest investments for organizations, so ensuring employees have promotional opportunities and job security can assist in reducing recruitment costs.
Organizational structure is also a fundamental core to create salary structures for an organization. Once the structure is established, salary ranges can be created for each job in the organization. In most cases, each job is aligned to a salary grade, and each grade has a specified salary range. This allows an organization to meet its financial goals and ensures salaries are distributed fairly within financial budgets.
If an organization expands, the organizational structure allows room for growth. This can include adding additional layers of management, new divisions, expanding one or several functional areas or appointing additional top executives. When the structure is reorganized for expansion, it provides the foundation to edit salaries and job descriptions quickly and efficiently with minimal disruption to an organization’s operations.
Question 1
What is not a purpose of an organisational structure?

to coordinate people & resources

To limit workers’ rights

to formalise authority

to organise lines of communication
Question 2
Specialisation is a feature of which organisational structure?

matrix

divisional

multi- divisional

functional
Question 3
What is not an advantage of a hierarchical structure?

quick response to change

clear chain of command

descipline stability

small span of control
Question 4
Functional structures help to create……

multi-skilled employees

teamwork

specialization

project-work groups
Question 5
Organizational structure is a system used to define a _____ within an organization.

goals

hierarchy

objectives

none of these
Question 6
The process of dividing the work and then grouping them into units and subunits for the purpose of administration is known as

Departmentation

Organisation structure

Committee

all of above
Question 7
Which of the following structure(s) is/are centralised?

The simple structure only

functional structure only

both a & b

none of these
Question 8
Which of the following applies to the matrix structure?

It allows the owner to control all aspects of the business

It attempts to merge the benefits of decentralisation with co-ordination across all areas of the business

It is found in companies offering a diverse range of products in a home market

None of these
Question 9
Departmentation is a process where

Tasks are grouped into jobs

Jobs are grouped into effective work groups

Work groups are grouped into identifiable segments

All of the above
Question 10
What is not a purpose of an organisational structure?

To coordinate People & resources

To organise lines communication

To formalise authority

To limit Workers rights

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Block 4
CASE STUDY
Organization design involves the creation of roles, processes and structures to ensure that the organization’s goals can be realized.Some people associate organization design with the mechanical arrangement of positions and reporting lines on the organization chart. It is certainly true that organizational designers also need to define the vertical structure, including reporting lines. However, organization design is much more than “boxology”.
Organization design problems are often some of the hardest problems that leaders face. Finding the right design often requires inventing a new solution to resolve a dilemma. And decisions made with regard to formal structure, roles and processes directly impact the jobs and careers of employees – and the ability of the firm to realize its strategic objectives.
In an organization re-design process one may consider elements at different levels; The overall organizational “architecture” (e.g., the corporate level, the role of the headquarters versus business areas in a large firm, etc.); The design of business areas and business units within a larger firm; The design of departments and other sub-units within a business unit; The design of individual roles.
The field of organization design sits at the intersection of strategy, operations, law and HR. An important driver for organization design is the organization’s strategy – but the design of the organization may also to a great extent determine which strategies we may be able to form in the first place. We should, in general, attempt to align the organization with the work processes – so there is a close link between operations and organization design. The design of the organization is also influenced by laws, regulations, and governance principles adopted by the industry sector. Last but not least, organization design is fundamentally about people. People inhabit the roles that are defined in the organization design proces. People participate in design processes and also influence designs in many direct and indirect ways.
Organizational design serves as the foundation on which all company operations are built, including such vital factors as the grouping of employees within different departments and the formal managerial hierarchies within a company. Savvy early stage organizational design choices can create a foundation for success, allowing an organization to develop a strong company culture, grow in response to increasing demand and adapt to changes in the marketplace.
Company Leadership
Organizational design influences the leadership structure of a company, setting forth reporting relationships and lines of authority reaching from the executive level to the front line. It is important to have a clear map of managerial responsibility and accountability to keep the company running smoothly. Without clear lines of authority, employees in different areas of the company can become misguided or confused, while others find themselves with an unnecessarily high level of supervision. The ideal leadership structure depends on the industry a company is in and the personalities of business owners.
Company Culture
The leadership structure put in place by organizational-design choices can have a direct and lasting effect on company culture. The grouping of employees in various departments and the managerial hierarchy influences the way employees interact with each other on the job. Organizational design can influence the degree to which front-line employees are allowed to solve complex problems on their own rather than involving a manager, for example. An organization designed to make extensive use of telecommuters will result in a company in which workplace relationships are often formed and strengthened solely through online interactions, as another example.
Future Growth
Organizational design choices made in the early stages of a business can either help or hinder growth plans. Organizational designs built to easily accommodate new managers and employees at different levels of the organization can add new positions without making significant structural changes. A company using freelancing telecommuters, for example, can add large numbers of freelancers with a small increase in the number of managers. A company that locates all employees in a small office, on the other hand, must acquire new office space or expand their current office to take on new employees.
Adaptability
Organizational design choices can develop distinct competitive advantages. Savvy business owners continually monitor changes in their industries and markets, looking for opportunities to adapt and develop new competitive advantages. Companies with taller organizational structures and complicated bureaucracies can find it difficult to adapt to changing market conditions, such as a growing use of lean business models or outsourcing in the industry. Companies with less complex organizational structures can find it easier to shift employees around, rework managerial hierarchies and redesign job descriptions for existing employees, all of which can increase efficiency or productivity in response to outside pressures.
Question 1
_______describes the degree to which tasks in an organisation are divided into separate jobs.

Departmentalisation

Chain of command

Work Specialisation

Span of Control
Question 2
An important driver for organization design is the organization’s _____

Strategy

Choice

Differentiation

All of above
Question 3
Companies with taller organizational structures and complicated bureaucracies can find it difficult to________

face the competition

Work in a structured way

adapt to changing market conditions

None of these

Question 4
_______is a system of organisation where the elements of the organisation are unranked or where they possess the potential to be ranked a number of different ways

Organic Structure

Heterarchy

Hierarchy

Responsible Autonomy
Question 5
A _______is one in which its design is not defined by,or limited to, the horizontal, vertical, or external boundaries imposed by a predefined structure

Project Structure

Autonomous Internal Units

Boundaryless Organisation

Learning Organisation
Question 6
In an organization re-design process , one may consider which of the following?

design of individual roles

overall organizational architecture

design of business areas and business units within a larger firm

All of above
Question 7
________refers to the degree to which jobs within the organisation are standardized and the extent to which employee behaviour is guided by rules and procedures

Decentralisation

Formalisation

Centralisation

Simple structure
Question 8
Without clear lines of authority, employees in different areas of the company can become______

misguided and confused

competitive

Both a & b

None of these
Question 9
Organization design involves the creation of _______ to ensure that the organization’s goals can be realized.

roles

processes

structures

All of above
Question 10
Which of the following is true for organisational design?

It is the way an organisation is to be structured and
operated by its members

It is widely regarded as a competitive capability

It is a critical component of any organisation’s Organisation
Development offering

All of above
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Block 5
CASE STUDY
Organizational effectiveness is defined as an extent to which an organization achieves its predetermined objectives with the given amount of resources and means without placing undue strain on its members.
Sometimes efficiency and effectiveness are used as synonyms. However, there exists a difference between the two concepts. Therefore, it is important to explain the difference between the concepts of effectiveness and efficiency to understand why organizations may be effective but not efficient, or efficient but not effective. Effectiveness is a broad concept and takes into account a collection of factors both inside and outside an organization. It is commonly referred to as the degree to which predetermined goals are achieved. On the other hand, efficiency is a limited concept that pertains to the internal working of an organization. It refers to an amount of resources used to produce a particular unit of output. It is generally measured as the ratio of inputs to outputs. Further, effectiveness concentrates more on human side of organizational values and activities whereas efficiency concentrates on the technological side of an organization.
Goal attainment is the most widely used criterion of organizational effectiveness. In goal approach, effectiveness refers to maximization of profits by providing an efficient service that leads to high productivity and good employee morale. Several variables such as quality, productivity, efficiency, profit, turnover, accidents, morale, motivation and satisfaction, which help in measuring organizational effectiveness. However, none of the single variable has proved to be entirely satisfactory.
The main limitation of this approaches the problem of identifying the real goals rather than the ideal goals.
Functional Approach
This approach solves the problem of identification of organizational goals. Parson states that since it has been assumed that an organization is identified in terms of its goal, focus towards attainment of these goals should also aim at serving the society. Thus, the vital question in determining effectiveness is how well an organization is doing for the super-ordinate system.
The limitation of this approach is that when organizations have autonomy to follow its independent courses of action, it is difficult to accept that ultimate goal of organization will be to serve society. As such, it cannot be applied for measuring organizational effectiveness in terms of its contributions to social system.
Both the goal and functional approach do not give adequate consideration to the conceptual problem of the relations between the organization and its environment.
System Resource Approach
System-resource approach of organizational effectiveness emphasizes on inter-dependency of processes that relate the organization to its environment. The interdependence takes the form of input-output transactions and includes scarce and valued resources such as physical, economic and human for which every organization competes.
The limitation of this model is that an acquisition of resources from environment is again related to the goal of an organization. Therefore, this model is not different from the goal model.
Thus, discussion of organizational effectiveness leads to the conclusion that there is no single indicator of effectiveness. Instead, the approach should focus on operative goals that would serve as a basis for assessment of effectiveness.
Managerial effectiveness is a causal variable in organizational effectiveness. It has been defined in terms of organizational goal-achieving behavior, i.e., the manager’s own behavior contributes to achievement of organizational goals.
Question 1
System-resource approach of organizational effectiveness emphasizes on?

inter-dependency of processes

Processes relate the organization to its environment

Both a & b

None of these
Question 2
Highly effective organisations exhibit strengths across which areas ?

leadership

decision making and structure

work processes and systems

All of above
Question 3
_______is the lifeblood for an organisation that builds bridges among the employees within the organisation.

System of control

Coordination and integration

Reward and incentive system

Communication

Question 4
The ways in which real people learn, change, adopt and align, get “affected” by dynamics in the environment and leveraging this knowledge to create effective organisations that are pioneers of_______

Decision Making

Change & Learning

Group Effectiveness

Self-Organizing & Adaptive Systems
Question 5
A supply chain is an inter-organisational work system devoted to procuring materials and other inputs required to produce a firm’s products.

Project

Service system

Supply Chain

Information System
Question 6
In achieving______ criteria, an effective organisation must be adaptive to new pportunities and hurdles, as well as being capable of developing the abilities of its members and itself.

Short-term

Up to one year

Medium-term

Longer term
Question 7
the goal and ______ do not give adequate consideration to the conceptual problem of the relations between the organization and its environment.

functional approach

System Approach

Competitive approch

None of these
Question 8
Which of the following is correct in context of goal approach effectiveness?

refers to maximization of profits.

provides an efficient service that leads to high productivity and good employee morale

Both a & b

None of these
Question 9
Which of the following is true for Organisational effectiveness?

Defined as the efficiency with which an
association is able to meet its objectives.

It is about each individual doing everything they
know how to do and doing it well

It is the concept of how effective an organisation is
in achieving its goals.

All of above
Question 10
_______is defined as the reaching of new or other
important information to the employees in due time.

Care about clients

Transmission of information

Strategic Direction

Collaboration

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Full Syllabus Assessment

CASE STUDY
The case discusses the corporate culture of the Canada-based airline, WestJet Airlines Ltd. (WestJet). When WestJet was incorporated in 1996, the founders were of the view that culture was the one element of an organization that could not be duplicated and that it was a way of differentiating WestJet from the competitors.
WestJet encouraged a culture of participation and commitment and gave prime importance to empowered and happy employees, as it believed that these employees would provide customers with a good experience. At WestJet every employee was a shareholder in the company. The highly empowered employees were free to take any decision that would help them provide the best service to customers.
WestJet’s culture helped it remain profitable in an industry as highly volatile as the airline industry.
However, WestJet’s culture began to face a few threats. Venturing into the regional market through WestJet Encore and expanding internationally to various European destinations, made it difficult for WestJet to maintain the culture it was known for. At the same time, some of the employees were fueling unionization in the company, which could have a major impact on its culture in times to come.
In May 2014, Canada-based WestJet Airlines Ltd. (WestJet) won the prestigious Randstand Award and was chosen ‘Canada’s Most Attractive Employer’ for the third year in a row. WestJet was selected from among 150 companies by more than 8,000 people in search of employment opportunities. The airline was rated high for its work environment, strong management, interesting work, and training. According to Tom Turpin, President, Randstand Canada, “This award is truly the people’s choice award and to take home the title as Canada’s most attractive employer for three back-to-back years means they have created a very strong image and Canadians want to be part of that distinct culture.
WestJet, incorporated in 1996, was founded on a distinct corporate culture which considered people highly important to provide customers with a good experience. The founders wanted to develop a company with a culture of participation and commitment, where employees were friendly and caring in order to provide customers with a great flying experience. They were of the view that culture was one element of an organization that could not be duplicated and that it was a way of differentiating WestJet from the competitors. They insisted on developing a non-hierarchical structure with every employee being a shareholder in the company. The highly empowered employees were free to take any decision that would help provide customers with the best service.

WestJet’s origins date back to 1994, when a businessman based in Calgary, Canada Clive Beddoe (Beddoe), who traveled frequently, bought a small aircraft for the purpose. He also leased the plane through a local company Morgan Air Services, owned by Tim Morgan (Morgan). The high cost of air travel in Canada and the success of low-cost airlines in the US set the two of them thinking about starting their own discount airline. Beddoe and Morgan got together with two other businessmen, Don Bell (Bell) and Mark Hill (Hill), to start the airline. Their plan was to offer low fares, attract new customers, operate on new routes, and expand the market, instead of snatching away a share from existing airlines. They were of the view that the availability of low fares would encourage more people to fly.
Beddoe was the Chairman and CEO, Hill was the director of Strategic Planning, Morgan took charge of operations, while Bell took care of customer service. Other prominent investors in the venture included David Neeleman, whose company Morris Air was acquired by Southwest Airlines. The first commercial flight of the airline began operations in February 1996. All the pilots and flight crew were based in Calgary.
When the founders were contemplating starting a new airline, Mark Hill started reading about US-based SouthWest Airlines to understand how the culture of the company had evolved. He understood that it was the high performance culture that differentiated Southwest from its competitors. Hill felt that the culture in the company was reflected in the way the customers were treated. He believed that by aligning the interest of the people with business interest, it would be possible to foster a great culture.
The founders were of the view that the people working at WestJet, called WestJetters, must show a caring attitude toward the passengers, who were addressed as guests, and also toward their co-workers. The culture at WestJet was guided by a set of values
Incentives, a good culture and work environment, and open communication helped the founders to position WestJet as a fun airline. According to Rick Ericson, Aviation Consultant, “(Corporate Culture) It’s a key asset, and I give Beddoe full credit for creating that. Beddoe has done an excellent job of promoting WestJet externally as “a quirky little company that could. He has marketed the image of a company you can like and that you want to do business with.”
The atmosphere in WestJet was informal with the employees calling even the CEO by his first name. With all the employees having a share in the company, there was a feeling among them of working for themselves. There was a total absence of hierarchy, and anybody, irrespective of the position in the company, pitched in to help others, to get the work done on time, and to serve the customers.
There were some formal groups in the company to address employee grievances and encourage employee participation. At WestJet, CARE, or Creating a Remarkable Experience, was one of them. CARE was a group whose aim was to propagate the WestJet culture throughout the company. Inculcating the culture was not a one-time effort but an ongoing process, according to company insiders. CARE was responsible for organizing more than 250 events every year for the employees and their families. These included meetings with the pilots, the crew, discussions about culture, and town hall meetings. Twice a year WestJet held profit sharing parties – one during the spring and the other during the fall. At these parties, employees were given profit-sharing checks. The CARE team also brought out videos and plays to entertain the employees. At these celebrations outstanding employees received awards…
Analysts attributed WestJet’s success to the sense of ownership that was cultivated among the employees. Encouraging the employees to assume responsibility and providing them a role in the growth, resulted in better productivity, highly motivated employees, and high morale, all resulting in better customer service. “All of us are owners here, and we’re all very passionate about what we do. When you have a stake in the company, you want to do whatever it takes to make it work,” said Lisa Puchala, director of in-flight training and standards.
Beddoe was of the view that as the employees were responsible for providing a friendly environment to the guests, it was important to recruit people who fit in with the culture of the organization. According to Darryl Howard, of CIBC World Markets, the lead underwriter on the IPO of WestJet, “Hiring the right people is the most critical one. For the first couple of years he probably interviewed every person (himself) before they were hired. (Secondly,) he kept things simple. The business itself is quite defined. They’re not trying to compete on long hauls or business travel. They went specifically to short haul passenger service. And the third principle is that he insists that his people have fun. You’ve seen that on the flights where they tell hokey jokes. That goes a long way.”
Analysts attributed WestJet’s ability to provide the best customer service in the airline business mainly to its employee focus. The airline attributed its success to hiring the right kind of people and empowering them.
Since its inception, WestJet had been ranked among the most profitable airlines in the world, showing consistent growth in revenues. As of 2014, the company had achieved 38 consecutive quarters of profits, an impressive statistic in the highly turbulent airline industry. WestJet was able to save on employee costs, as the supervisory level was almost absent in the organization. The productivity per employee in WestJet was the highest in the Canadian airline industry. The company’s attitude toward its employees helped it score high with potential employees too. It was ranked at the top in Canada’s more admired corporate cultures for several years…
As the organization grew, there were subtle changes seen in the corporate culture with every new employee who joined. The fast pace of change in WestJet brought with it some anxiety among the employees. Analysts pointed out that as the number of employees was expected to exceed 10,000 by 2015, it might be difficult to keep them connected to each other and to the culture of WestJet. Analysts said that with WestJet expanding to European destinations, its business model had changed, placing a stress on the culture of the company. As it moved into international markets, it might be a challenge for WestJet to retain high levels of employee engagement and provide a unique guest experience that differentiated it from so many other carriers, they opined.
Question 1
which of the following was adopted by WestJet , in order to get better productivity from the employees.

Encouraging the employees to assume responsibility

providing employees a role in the growth

motivating employees

All of above
Question 2
WestJet was able to save on employee costs, as____?

the supervisory level was almost absent in the organization

it hired less employees

training & development avctivities were not conducted

None of the above
Question 3
WestJet was incorporated in____

1990

1996

1969

1970
Question 4
As per the Case study which of the options is true . WestJet encouraged___ ? : (a) a culture of participation and commitment (b) gave prime importance to empowered and happy employees( c) it believed that the employees would provide customers with a good experience

Only a & b

Only b & c

Only c & a

All a,b,c
Question 5
In this case Study , CARE is referred to as ?

Creating a Resourceful Experience

Creating a Remarkable Experience

Creating a Resourceful Expertise

None of these
Question 6
As discussed in this case study, which of the options is true. The founders were of the view that___ ? (A) culture was one element of an organization. ( B) Ciulture could not be duplicated ( C) Culture was a way of differentiating WestJet from the competitors.

Only A

Only A & C

Only A & B

All A, B, C
Question 7
_____helped the founders to position WestJet as a fun airline.

Incentives

a good culture and work environment

open communication

All of above
Question 8
Canada-based WestJet Airlines Ltd. won the prestigious Randstand Award and was chosen ___

‘Canada’s Most Competitive Employer’

‘Canada’s Most Attractive Employer’

Both a& b

None of these
Question 9
Founders of WestJet, insisted on developing ____? : (A) non-hierarchical structure ( B)every employee being a shareholder in the company.

Only a

Both a & b

Only B

none of these
Question 10
WestJet was founded on a distinct corporate culture. Which of the following option is true in this context?

It considered people/employees highly important

Its aim was to provide customers with a good experience.

Both a & b

None of these
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Talent Acquisition & Development (EDL 408)-Semester 4
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Block 1
CASE STUDY
The Hotel Paris s competitive strategy is To use superior guest service to differentiate the Hotel Paris properties, and to thereby increase the length of stay and return rate of guests, and thus boost revenues and profitability. HR manager Lisa Cruz must now formulate functional policies and activities that sup- port this competitive strategy by eliciting the required employee behaviors and competencies.
As an experienced human resource director, the Hotel Paris s Lisa Cruz knew that recruitment and selection processes invariably influenced employee competencies and
behavior and, through them, the company s bottom line.
Everything about the workforce its collective skills, morale, experience, and motivation depended on attract- ing and then selecting the right employees.
In reviewing the Hotel Paris s employment systems, she was therefore concerned that virtually all the company s job descriptions were out of date, and that many jobs had no descriptions at all. She knew that without accurate job descriptions, all her improvement efforts would be in vain.
After all, if you don t know a job s duties, responsibilities, and human requirements, how can you decide who to hire or how to train them? To create human resource policies and practices that would produce employee competencies and behaviors needed to achieve the hotel s strategic aims, Lisa s team first had to produce a set of usable job descriptions.

A brief analysis, conducted with her company s CFO, reinforced that observation. They chose departments across the hotel chain that did and did not have updated job descrip- tions. Although they understood that many other factors might be influencing the results, they believed that the relationships they observed did suggest that having job descriptions had a positive influence on various employee behaviors and competencies. Perhaps having the descriptions facilitated the employee selection process, or perhaps the departments with the descriptions just had better managers.
She knew the Hotel Paris s job descriptions would have
to include traditional duties and responsibilities. However, most should also include several competencies unique to each job. For example, job descriptions for the front-desk clerks might include able to check a guest in or out in 5 minutes or less. Most service employees descriptions
included the competency, able to exhibit patience and guest supportiveness even when busy with other activities.

Question 1
Which competency do you think is least required in the employees of Hotel Paris?

Patience

Ability to serve

Being aggressive and fast

Empathetic
Question 2
Lisa should make change in which amongst the below?

Job description

Job specification

both a and b

No changes are required

Question 3
Which information Lisa will have to collect first – Job description or Job specification?

Job description

Job specification

they are not related

simultaneously
Question 4
Will the recruitment at Hotel Paris be affected by Lisa’s effort of doing Job analysis? If yes, how?

better employees

no change in employees

employee selection is not related to job analysis

employees performance is not related job analysis
Question 5
Who should Lisa involve during the Job analysis process?

Top management

Middle management

Front office Executives

all of the above
Question 6
If you were Lisa, seeing the correct need of job analysis, for which profile you will not do the Job analysis?

Sales Exective

Chef

Human resource executive

Chief Financial Officer
Question 7
If you were Lisa, which position would you have given most priority for the job analysis?

Room service executive

HR execuitve

Marketing Manager

Finance officer
Question 8
Which method of job analysis should Lisa use?

Observation

Questionnairre

Delphie Technique

all of the above
Question 9
which amongst the below would Lisa write under Job specification?

Duties of job

Skills required

Working hours

Compensation of the job
Question 10
Which amongst the below would Lisa write under Job description?

Qualification required

Working hours of the job

Skills needed

all of the above

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block 2

CASE STUDY
If you were to ask Jennifer and her father what the main problem was in running their firm, their answer would be quick and short: hiring good people. Originally begun as a string of coin – operated laundromats requiring virtually no skilled help, the chain grew to six stores, each heavily dependent on skilled managers, cleaner – spotters, and pressers. Employees generally have no more than a high school education (often less), and the market for them is very competetive. Over a typical weekend literally dozens of want ads for experienced pressrers or cleaner – spotters can be found in area newspapers. All these people are usually paid around $15.00 per hour and they change jobs frequently. Jennifer and her father are thus faced with the continuing task of recruiting and hiring qualified workers out of a pool of individuals they feel are almost nomadic in their propensity to move from area to area and job to job. Turnover in their stores often approaches 400%. “Dont talk to me about human resources planning and trend anlaysis,” says Jennifer. ” We are fighting an economic war and I am happy just to be able to round up enough live applicants to be able to keep my trenches fully manned.”
Question 1. Which was or were the problems that Jennifer and her father were facing?
Hiring correct people
Retaining employees
both a and b
none of the above
Question 2. Which HR process becomes very important for Jennifer to apply?
Recruitment
Training
Retention
Human Resource Planning
Question 3. Had you been at Jeniffers place what yu would have done from the below options to make things better?
Payning more incentives to retain
Redesigning recruitment strategy
Employee engagement
all of the above
Question 4. What HR process flaw they do not have?
Recruitment
Training
compensation
Retention
Question 5. Which recruitment method are they following?
Internal recruitment
external recruitment
both a and b
none of the above
Question 6. Which of the below function is not a part of Human resource planning?
Job analysis
Demand forcasting
Supply Forecasting
Premising
Question 7. what is the right flow of below human resource functions?
human resource planning, selection, recruitment
recrtuiment, selection, human resource planning
human resource planning, recruitment, selection
selection, recruitment, human resource planning
Question 8. Choosing the factors that would impact the HR of the company is called as…
sourcing
planning
forcasting
premising
Question 9. What is the flow of HR Process that Jeniffer should follow?
Premising, forcasting, planning
forecasting, planning, premising
planning, premising, forecasting
planning, forecasting, premising
Question 10. Whose approach is better?
Jeniffer’s
Jeniffer’s dad
both a and b
information is not given in the case study

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CASE STUDY
Whirlpool recently revamped their HR strategy into a People Excellence Strategy, establishing an operating system based on specific analytics they had gathered. In reviewing their diversity scorecard, it became apparent that Whirlpool had a “leaky bucket” problem. While they had made strides in the attraction and hiring of diverse talent, they were losing that talent at the same, if not a faster, rate. Clearly something needed to be done to engage and retain that talent.
To address this issue, Whirlpool’s talent management and diversity organizations developed a retention risk assessment toolkit. The toolkit includes three phases out of one was – “Assessing the impact Whirlpool would face should an employee leave”
To assess the impact on Whirlpool if an employee should leave, managers were asked to answer each of the following yes or no questions:
If this employee left Whirlpool, in the current business environment would we sustain a significant revenue loss or increased risk?
If this employee left Whirlpool, would we lose significant intellectual capital?
Is this employee in a critical role or on a Succession Plan for a critical role?
Is there a weak or non-existent contingency plan for if this role were vacant?
Would this role be difficult to fill both internally and externally?
The risk retention assessment includes 25 yes or no questions managers were asked to answer about their employees and their relationship to those employees. Questions are grouped into four areas: job/role, development and alignment to career goals, manager/employee relationship and external support system. Answers are then calculated to measure that employee’s level of “retention risk.”
Whirlpool quickly discovered that many managers had difficulty answering a significant number of questions about their employees. Understanding the importance of the manager/employee relationship to retaining talent, Whirlpool created a template for stay interviews as a way to help managers answer those questions, and to create dialogue between managers and employees. This approach directly impacted the level of interaction between the diverse talent and their individual supervisors.
Question 1. What acccording to you the case study is related to?
Employee Training
Employee engagement
Employee retention
Performance appraisal
Question 2. What according to the case is important for management to do in order to retain their employees?
Manager – employee relationship
Succession planning
Employee Development
Correct Recruitment Strategy
Question 3. What is inversely proprtional to retention?
Attrition
Turnover
both a and b
none of the above
Question 4. Which HR processes might not have affected retention in Whirlpool?
Training and development
Performance evaluation
Pay and benefits
Termination and outplacement
Question 5. In which situation employee turnover will be least?
Employees are satisfied
Employees are motivated
Employees are getting hygiene factors
all of the above
Question 6. Which statement is correct
Retention is a synonym to employee turnover
Retention is a synonym to attritio
Attrition and retention goes hand in hand
none of the above
Question 7. in the case study, which problem is mentioned by stating: “Whirlpool had a “leaky bucket” problem.”
Less Productivity
Less turnover
More Attrition
Less effeciency
Question 8. “Attrition increases cost of the company”. Is this statement correct?
Never
Always
At times
Most of the times
Question 9. The kind of interviews taken place in organizations to ask about possible reasons leads to job turnover are classified as
Employee firing interviews
Transfer interviews
Termination interviews
Exit interviews

Question 10. Which amongst the below were high at Whirlpool?/
absenteeism rate
satisfaction rate
turnover rate
employment rate

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Block 4
CASE STUDY
Modern Industries Ltd. (MIL) in Bangalore is an automobile ancillary Industry. It has turnover of Rs. 100 crores. It employs around 4,000 persons.
The company is professionally managed. The management team is headed by a dynamic Managing Director. He expects performance of high order at every level. It is more so at the Supervisory and Management levels. Normally the people of high calibre are selected through open advertisements to meet the human resource requirements at higher levels. However, junior-level vacancies are filled up by different types of trainees who undergo training in the company.
The company offers one-year training scheme for fresh engineering graduates. During the first six months of the training, the trainees are exposed to different functional areas which are considered to be the core training for this category of trainees. By then, the trainees are identified for placement against the available or projected vacancies. Their further training in the next quarter is planned according to individual placement requirements.
During the last quarter, the training will be on-the job. The trainee is required to perform the jobs expected of him after he is placed there. The training scheme is broadly structured mainly keeping in mind the training requirements of mechanical engineering graduates.
Mr. Rakesh Sharma joined the company in the year 1983 after his B. Tech . degree in paint Technology from a reputed institute. He was taken as a trainee against a projected vacancy in the paints application department In MIL, the areas of interest for a trainee in Paint Technology are few. Hence, Mr. Sharma’s core training was planned for the first 3 months only. Thereafter, he was put for on-the-job training in the paints application department. He took interest and showed enthusiasm in his work there. The report from the shop manager was quite satisfactory.
The performance of the trainee is normally reviewed once at the end of every quarter. The Training Manager personally talks to the trainee about his progress, strengths and shortcomings. At the end of the second quarter, the Training Manager called Mr. Sharma for his performance review. He appreciated his good performance and told him to keep it up. A month later Mr. Sharma met the Training Manager. He requested that his training period be curtailed to 7 months only and to absorb him as an Engineer. He argued that he had been performing like a regular employee in the department for the last one quarter. As such, there was no justification for him to be put on training anymore. Further, he indicated that by doing so, he could be more effective in the department as a regular engineer. He would also gain seniority as well as some monetary benefits as the trainees were eligible for a stipend only. The regular employees were eligible for many allowances like conveyance, dearness, house rent, education, etc. which was a substantial amount as compared to the stipend paid to a trainee.
The Training Manager turned down his request and informed him that it was not a practice of the company to do so. He told him that any good performance or contribution made by the trainees during the training period would be duly rewarded at the time of placement on completion of one year of training. Further, he told him that it would set a wrong precedence. Quite often, some trainees were put on the job much earlier than the normal period of three quarters for several reasons.
Thereafter, Mr. Sharma’s behaviour in the department became different. His changed attitude did not receive any attention in the initial period. However, by the end of the third quarter, his behaviour had become erratic and unacceptable. When he was asked by the Department Manager to attend to a particular task, he replied that he was still on training and such task shouldn’t be assigned to a trainee. According to him, those jobs were meant to be attended by full-time employees and not by trainees.
The Paintshop Manager complained to the Training Manager about Mr. Sharma’s behaviour and he was summoned by the Training Manager. During the discussions, Mr. Sharma complained that while all the remaining trainees were having a comfortable time as trainees, he was the only one who was put to a lot of stress and strain; the department was expecting too much room him. He felt that he should be duly rewarded for much hardwork; otherwise, it was not appropriate to expect similar .
The Training Manager tried to convince him again that he shouldn’t harp on rewards as he was a trainee; his sole concern should be to learn as much as possible and to improve his abilities. He should have a long-term perspective rather than such a narrow-minded approach. He also informed him that his good performance would be taken into account when the right occasion arose. He warned him that he was exhibiting negative attitude for which he would be viewed seriously. His demand for earlier placement was illogical and he should forget it as he had already completed 8 months and had to wait only for 4 months. He advised Mr. Sharma that the career of an individual had to be seen on a long-time perspective and that he should not resort to such childish behaviour as it would affect his own career and image in the company.
Mr. Sharma apparently seemed to have been convinced by the assurance given by the Training Manager and remained passive for some time. However, when the feedback was sought after a month, the report stated that he had become more perverted. He was called again for a counselling session and was given two weeks time to show improvement. At the end of those two weeks, the Training Manager met the Department Manager, to have a discussion about Mr. Sharma. It was found that there was absolutely no reason for Mr. Sharma to nurture a grievance on poor rewards. It was decided that he should be given a warning letter as per the practice of the company and, accordingly, he was issued a warning letter. This further aggravated the situation rather than bringing about any improvement. He felt offended and retaliated by thoroughly disobeying any instruction given to him. This deteriorated the situation more and the relationship between the manager of the department and the trainee was seriously affected In cases of rupture of relationship, normally the practice was to shift the trainee from the department where he was not getting along well so that he would be tried in some other department where he could have another lease for striking better rapport. But unfortunately, in the case of Mr. Sharma, there was no other department to which he could be transferred, since that was the only department where his specialisation could have been of proper use. By the time he completed his training, he turned out to be one who was not at all acceptable in the department for placement. His behaviour and involvement were lacking. In view of this, the Department Manager recommended that he be taken out of the department. When Mr. Sharma was informed about it, he was thoroughly depressed. One of the primary objectives of the Training Department is to recruit fresh graduates who have good potential and train them to be effective persons, in different departments. They are taken after a rigorous selection process which includes a written test, a preliminary and a final interview. During the training period, their aptitudes, strengths and weaknesses are identified. Their placement in departments is decided primarily on the basis of their overall effectiveness there. Here is a case where the person happened to be hard-working in the beginning but turned out to be a failure in the end. The Training Manager was conscious of this serious lapse and was not inclined to recommend his termination. But at the same time it was difficult to retain a person whose track record was not satisfactory. He still felt that a fresh look be given into this case but he was unable to find a way out. He was now faced with the dilemma whether to terminate or not to terminate Mr. Rakesh Sharma.

Question 1. Which type of training is given to the employees during the first 6 months at Modern Industries?
on the job training
off the job training
both a andb
none of the above

Question 2. Which type of training is given to the employees after the first 6 months are over, at Modern Industries?
on the job training
off the job training
both a and b
none of the above

Question 3. Which according to you would be more fruitful as a training policy?
having fixed training period
training should get over once the employee is able to perform
fixed training period but should be flexible for employees performing well
none of the above

Question 4. According to you whos was wrong in the case?
Mr. Sharma
Training Manager
both a andb
none of the above

Question 5. How do you think policies of an organisation should be?
Rigid
Flexible
conservative
none of the above

Question 6. If you were the training manager what decision you would have taken?
Terminates Mr. Sharma
Put him again for training
counselled him to make him motivated
Left him the way he was

Question 7. What according to you should have been the decsion of the training manager after completion of 6 months?
Should have reduced training of Mr. Sharma
special evaluation could have been conducted for Mr. Sharma to make sure he has learnt all skills
Should have altered the training policy permanently for better productive results
all of the above

Question 8. Which parameter of training evaluation is forefeited in the case study, the most?
Learning
Reaction
Behaviour
Result

Question 9. As the owner of the company what remedial action would you have taken?
Should have terminated Mr. Sharma
Should have asked the training manager to apologise to Mr. Sharma in public
Should have counselled Mr. Sharma and asked training manager to apologise in private to Mr. Sharma
Should have not interfered in the matter

Question 10. Training given on live machines to Engineers will be considered as
On the job training
off the job training
both a and b
none of the above

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Block 5
CASE STUDY
Hindustan Lever Research Centre (HLRC) was set up in the year 1967 at Mumbai. At that time the primary challenge was to find suitable alternatives to the edible oils and fats that were being used as raw materials for soaps. Later, import substitution and export obligations directed the focus towards non-edible oil seeds, infant foods, perfumery chemicals, fine chemicals, polymers and nickel catalyst. This facilitated creation of new brands which helped build new businesses.HUL believes in meritocracy and has a comprehensive performance management system, which ensures that people are rewarded according to their performance and abilities. Almost 47% of the entire managerial cadres are people who have joined us through lateral recruitment. Over the years many break through innovations have taken place. Hindustan Lever Research gained eminence within Unilever Global R&D and became recognized as one of the six global R&D Centers of Unilever with the creation of Unilever Research India in Bangalore in 1997.At Bangalore R&D center, a team of 10 scientists were appointed for a project on ‘shampoo’ line. Suranjan Sircar heading the team as Principal Research Scientist with the support of Vikas Pawar, Aparna Damle, Jaideep Chatterjee, Amitava Pramanik as Research Scientists. Suresh Jayaraman & Punam Bandyopadhyay were Research Associates. Vikas Pawar came up with an idea of pet shampoos during brainstorming with the team. “Hey, why don’t we target the pet care segment because in India, pet industry is being seriously looked at as a growing industry. I had been working on this concept for a few weeks & have done some initial research as well”, said Vikas. “I think we should just focus on the dog segment & bring out a range of shampoos that are breed specific”, contributed by Aparna Damle, who was a new unmarried scientist in the company. “Oh that’s a really great idea, a breakthrough” said Jaideep & Amitava appreciating Aparna. The idea given by Aparna got support from both colleagues & head. Vikas was although not comfortable with his credit being taken away. He also felt that creating brand specific shampoos would not be a profitable innovation thus, no point on centrating efforts on that. With this in mind he put his point forward but couldn’t gather consensus. After the discussion, Jaideep & Amitava being friends to Vikas, consoled him & showed confidence in his plan & thoughts. “We understand what you are going through. The idea was yours & Aparna took all your credit. Don’t worry we are with you & be careful from next time.”

Nevertheless, in the meeting Aparna presented her proposal for the idea mentioning requirements & chemical details. The meeting began with motivational speech & plan of action by the head of the team. A lot was discussed in detail & tasks were allotted along with deadlines. Immediately after the presentation Jaideep & Amitava approached Aparna & eulogized her research & proposal reiterating the importance of breed specific range of shampoos. Vikas lay aside his ego & went ahead with full dedication & commitment, however during the tenure of the research he noticed poor attitude of team members. Punam was not regular with deadlines; she submitted her research on breeds four days after deadline. Suresh was asked to coordinate with members looking into chemical research but Vikas observed him most of the times in the recreation room, so he asked him “Hi, so what’s the progress in chemical research so far?” Suresh replied that he had done whatever he was asked to do by senior scientist. He reported this lack of commitment & proactive attitude to Suranjan Sircir & asked for an action against them. “Hmm… I know what’s happening in the team. I have worked for 20 years in this industry & from my experience I know what to do & when to do”, he retorted back. Finally the project got completed 4 months after deadline. Vikas went back to the lab; sitting & wondering at the flaws in the group.
Question 1. which amongst the below is not a stage of group formation
storming
norming
brainstorming
adjourning

Question 2. What was missing in the team?
Leadership
Open communication
Team spirit
all of the above

Question 3. who according to you played the most passive role in the team building
Aparna
Vikas
Suresh
Suranjan

Question 4. Which type of team is shown in the case study?
Vurtul team
Crossfunctional team
Task team
none of the above

Question 5. Jaideep and Amitava were involved in which type of communication?
Formal
informal
both
none of the above

Question 6. If you were at Suranjan’ s place what corrective measure would you have taken?
Would have asked Jaideep to resign
Would have made Vikas the team leader
Would have called for a team meeting to enhance team spirit
all of the above
Question 7. which is the correct sequence of team formation
storming, forming
norming, performing
norming, storming
adjourning, performing

Question 8. who instigated poltics and negatiity in the team
Jaideep and Amitava
Vikas
Aparna
Suranjan

Question 9. What made Vikas unhappy?
lack of incentive
lack of recognition
lack of team consensus
lack of leadeership
Question 10. what kind of leadership Suranjan has potrayed in the case?
Directive
Participative
Laissez faire
Democratic

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Full Syllabus Assessment

CASE STUDY
Satish was a Sales Manager for Industrial Products Company in City branch. A week ago,
he was promoted and shifted to Head Office as Deputy Manager – Product Management for a
division of products which he was not very familiar with. Three days ago, the company VP –
Mr. George, convened a meeting of all Product Managers. Satish’s new boss (Product
Manager Ketan) was not able to attend due to some other preoccupation. Hence, the
Marketing Director, Preet – asked Satish to attend the meeting as this would give him an
exposure into his new role.

At the beginning of the meeting, Preet introduced Satish very briefly to the VP. The meeting
started with an address from the VP and soon it got into a series of questions from him to
every Product Manager. George, of course, was pretty thorough with every single product of
the company and he was known to be pushy and a blunt veteran in the field. Most of the
Product Managers were very clear of George’s ways of working and had thoroughly prepared
for the meeting and were giving to the point answers. George then started with Satish.
Satish being new to the product, was quite confused and fared miserably.

Preet immediately understood that George had possibly failed to remember that Satish was
new to the job. He thought of interrupting George’s questioning and giving a discrete
reminder that Satish was new. But by that time, George who was pretty upset with the lack
of preparation by Satish made a public statement “Gentlemen, you are witnessing here an
example of sloppy work and this can’t be excused”.

Now Preet was in two minds – should he interrupt George and tell him that Satish is new in
that position OR should he wait till the end of the meeting and tell George privately. Preet
chose the second option.

Satish was visibly angry at the treatment meted out by George but he also chose to keep
mum. George quickly closed the meeting saying that he found in general, lack of planning in
the department and asked Preet to stay back in the room for further discussions.
Before Preet could give any explanation on Satish, George asked him “Tell me openly, Preet,
was I too rough with that boy?” Preet said “Yes, you were. In fact, I was about to remind
you that Satish is new to the job”. George explained that the fact that Satish was new to
the job didn’t quite register with him during the meeting. George admitted that he had
made a mistake and asked his secretary to get Satish report to the room immediately.
A perplexed and uneasy Satish reported to George’s room after few minutes.

George looking Satish straight into his eyes said “I have done something which I should
have never even thought of and I want to apologise to you. It is my mistake that I did not
recollect that you were new to the job when I was questioning you”.
Satish was left speechless.

George continued “I would like to state few things clearly to you. Your job is to make sure
that people like me and your bosses do not make stupid decisions. We have good
confidence in your abilities and that is why we have brought you to the Head Office. For
everybody, time is required for learning. I will expect you to know all the nuances of your
product in three months time. Until then you have my complete confidence”.
George closed the conversation with a big reassuring handshake with Satish
Question 1 Which HR Practice you find missing in the case?
training
induction
organization structuring
departmentalisation

Question 2 Why was it at all necessary for George to apologise to such a junior employee like Satish?
to keep Satish’s morals high
to show Preet that he himself is a good leader
to build trust in Satish
to further reinforce that Satish should have knowledge about products

Question 3 If you were in Satish’s place, how would you to respond to George’s apology?
I will request to be shifted back to the city branch
I will ask George to be carefule in future while talking to me
I will react reassuringly that I will perorm well
I will try to show my product knowledge

Question 4 Was George correct in saying that Satish is there to correct the “stupid mistake” of his boss and George?
yes he was correct
he was wrong to say so
may be
boss are always correct

Question 5 Did Preet make a mistake by not intervening during the meeting and correct George’s misconception about Satish?
yes he should have spoken to protect satish
he did correct by not speaking as VP is a very senior person
both a and b are correct
both a and b are wrong

Question 6 How do you find George as a leader?
he is a autocratic leader
he is a democratic leader
he is a transactional leader
he has laissez fairre leadership style

Question 7 Who do you think did not fulfill his responsibility to the fullest
Satish
George
Preet
Satish’s immediate boss (this is not the right choice)

Question 8 Promotion is a form of
external recruitment
internal recruitment
both a and b are correct
promotion is not related to recruitment

Question 9 Which leadership style does Geroge have?
people oriented
task oriented
both a and b are correct
neiher of a and b
Question 10 How do you find Satish as an employee?
dumb
hard working
unreliable
Ill mannered

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Compensation & Reward Management (EDL 409)-Semester 4

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Block 1:

CASE STUDY
Salary inequities at Acme Manufacturing
Joe Black was trying to figure out what to do about a problem salary situation he had in his plant. Black recently took over as president of Acme Manufacturing. The founder and former president, Bill George, had been president for 35 years. The company was family owned and located in a small eastern Arkansas town. It had approximately 250 employees and was the largest employer in the community. Black was the member of the family that owned Acme, but he had never worked for the company prior to becoming the president. He had an MBA and a law degree, plus five years of management experience with a large manufacturing organization, where he was senior vice president for human resources before making his move to Acme.A short time after joining Acme, Black started to notice that there was considerable inequity in the pay structure for salaried employees. A discussion with the human resources director led him to believe that salaried employees pay was very much a matter of individual bargaining with the past president. Hourly paid factory employees were not part of this problem because they were unionized and their wages were set by collective bargaining. An examination of the salaried payroll showed that there were 25 employees, ranging in pay from that of the president to that of the receptionist. A closer examination showed that 14 of the salaried employees were female. Three of these were front-line factory supervisors and one was the human resources director. The other 10 were non management.This examination also showed that the human resources director appeared to be underpaid, and that the three female supervisors were paid somewhat less than any of the male supervisors. However, there were no similar supervisory jobs in which there were both male and female job incumbents. When asked, the Hr director said she thought the female supervisors may have been paid at a lower rate mainly because they were women, and perhaps George, the former president, did not think that women needed as much money because they had working husbands. However, she added she personally thought that they were paid less because they supervised less-skilled employees than did the male supervisors. Black was not sure that this was true.The company from which Black had moved had a good job evaluation system. Although he was thoroughly familiar with and capable in this compensation tool, Black did not have time to make a job evaluation study at Acme. Therefore, he decided to hire a compensation consultant from a nearby university to help him. Together, they decided that all 25 salaried jobs should be in the same job evaluation cluster, that a modified ranking method of job evaluation should be used, and that the job descriptions recently completed by the HR director were current, accurate, and usable in the study.The job evaluation showed that the HR director and the three female supervisors were being underpaid relative to comparable male salaried employees . Black was not sure what to do. He knew that if the underpaid female supervisors took the case to the local EEOC office, the company could be found guilty of sex discrimination and then have to pay considerable back wages. He was afraid that if he gave these women an immediate salary increase large enough to bring them up to where they should be, the male supervisors would be upset and the female supervisors might comprehend the total situation and want back pay. The HR director told Black that the female supervisors had never complained about pay differences. The HR director agreed to take a sizable salary increase with no back pay, so this part of the problem was solved.
Question 1. what kind of salary inequity prevailed in Acme?
position inequity
external inequity
performance ineuity
all of the above
Question 2. Job evaluation in the case study refers to?
evaluationg performance of employees
evaluating work done by employees
evaluating salary per job
all of the above
Question 3. How did the company get into such a situation?
inappropriate job analysis
inappropriate job evaluation
inappropriate performance management
inappropriate recruitment & selection

Question 4. Which amongst the below are not method of job evaluation
Ranking method
Field survey
Paired Comparision
Management by Objective

Question 5. what sequence of procedure Black should follow
job analysis then job evaluation
job evaluation followed with job analysis
either can be done
both are not required

Question 6. Black should pay ………………. to Jobs lying in the same job cluster
same salary
different slary
same salary range
different salary range

Question 7. How did the management decide salary prior to Black joining in?
Based on jab analaysis
Based on job evaluation
based on negotiations
none of the above

Question 8. the horuly workers salary was fixed with the help of
Job evaluation
negotiations
job analysis
none of the above
Question 9. compensation of the employee include
base salary
incentive
paid holidyas
all of the above

Question 10. If you were Black, what would you have done about salary related to female supervisors
To do nothing
To gradually increase the female supervisors salaries
To increase their salaries immediately
To call the three supervisors into his office, discuss the situation with them, and jointly decide what to do.

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Block 2
CASE STUDY

In the mid-1980s Xerox corporation was faced with a problem—its performance appraisalsystem was not working. Rather than motivating the employees, its system was leaving them discouraged and disgruntled. Xerox recognized this problem and developed a new system toeliminate it.
Old Performance Appraisal System
The original system used by Xerox encompassed seven main principles:1.The appraisal occurred once a year.2.It required employees to documenet their accomplishments.3.The manager would assess these accomplishments in writing and assign numerical ratings.4.The appraisal included a summary written appraisal and a rating from 1 (unsatisfactory)to 5 (exceptional).5.The ratings were on a forced distribution, controlled at the 3 level or below.6.Merit increases were tied to the summary rating level.7.Merit increase information and performance appraisals occurred in one session.This system resulted in inequitable ratings and was cited by employees as a major source of dissatisfaction. In fact, in 1983, the Reprographic Business Group (RBG), Xerox’s main copier division, reported that 95 percent of its employees received either a 3 or 4 on their appraisal.Merit raises for people in these two groups only varied by 1 to 2 percent. Essentially, across-the- board raises were being given to all employees, regardless of performance.
New Performance Appraisal System
Rather than attempting to fix the old appraisal system, Xerox formed a task force to create a new system from scratch.The task force itself was made up of senior human resources executives;however, members of the task force also consulted with councils of employees and a council of middle managers.Together they created a new system, which differed form the old one in many key respects:1.The absence of a numerical rating system.2.The presence of a half-year feedback session.3.The provision for development planning.4.Prohibition in the appraisal guidelines of the use of subjective assessments of performance.The new system has three stages, as opposed to the one-step process of the old system. These stages are spread out over the course of the year. The first stage occurs at the beginning of the year when the manager meets with each employee. Together, they work out a written agreement on the employee’s goals, objectives, plans, and tasks for the year. Standards of satisfactory performance are explicitly spelled out in measurable, attainable, and specific terms.The second stage is a mid-year, mandatory feedback and discussion session between the manager and the employee. Progress toward objectives and performance strengths and weaknesses are discussed, as well as possible means for improving performance in the latter half of the year.Both the manager and the employee sign an “objectives sheet” indicating that the meeting took place.The third stage in the appraisal process is the formal performance review, which takes place at year’s end. Both the manager and the employee prepare a written document, stating how well the employee met the preset performance targets. They then meet and discuss the performance of the employee, resolving any discrepancies between the perceptions of the manager and the employee. This meeting emphasizes feedback and improvement. Efforts are made to stress the positive aspects of the employee’s performance as well as the negative. This stage also includes a developmental planning session in which training, education, or development experiences that can help the employee are discussed. The merit increase discussion takes place in a separate meeting from the performance appraisal, usually a month or two later. The discussion usually centers on the specific reasons for the merit raise amount, such as performance, relationship with peers, and position in salary range. This allows the employee to better see the reasons behind the salary increase amount, as opposed to the summary rank, which tells the employee very little.A follow-up survey was conducted the year after the implementation of the new appraisal system. Results were as follows: 81 percent better understood work group objectives, 84 percent considered the new appraisal fair , 72 percent said they understood how their merit raise was determined, 70 percent met their personal and work objectives, 77 percent considered the system a step in the right direction In conclusion, it can be clearly seen that the new system is a vast imporvement over the previous one. Despite the fact that some of the philosophies, such as the use of self-appraisals, run counter to conventional management practices, the results speak for themselves.

Question 1. What was the major cause of dissatisfaction amongst the employees?
biaseness in rating
no proper system of performance appraisal
absence of feedback
all of the above

Question 2. what kind of biasness was involved in the old performance appraisal system?
biasness of central tendency
recency effect
halo effect
stereotyping
Question 3. what kind of performance system was the new one?
self appraisal
mbo
360 degree feedback
ranking system
Question 4. which of the statement is correct?
performance appraisal is a sub set of performance management
performance management is a subset of performance appraisal
both are same
both are not related
Question 5. the old performance appraisal system was…..
past oriented
future oriented
both
performance management oriented
Question 6. the new performance appraisal system is
past oriented
future oriented
both
360 degree based
Question 7. According to the forced ditribution method the employees were forced into how many groups in the old performance appraisal system
continuously distributed evenly in many groups
no groups formed at all
two major gorups were formed
all employees were ranked in the same group
Question 8. which mehtod was more objective?
old appraisal method
new appraisal method
both were equally objective
none of the above
Question 9. which amongst the below are not future oriented method of performance appraisal?
360 degree
MBO
720 degree
Graphic rating scale
Question 10. Merit pay given to employees are part of ……..?
incentive
increase in base pay
bonus
all of the above

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Block 3

CASE STUDY
Cadbury made life sweeter for workers
Housing and education were key features of the employee benefits package at Cadbury Brothers in 1952, thanks to founder John Cadbury’s sons.
In 1861, Richard and George Cadbury took over management of the Cadbury factory on Bridge Street, Birmingham, and began to take an interest in employees’ welfare. They created a new factory outside
Birmingham, which they named Bournville, which became known as ‘the factory in the garden’.
In 1895, the brothers built housing for their workforce, which turned into the Bournville Village Trust in 1900.
Young staff attended the Bournville Day Continuation College for one day a week until they were at least 18 years old. Cadbury-funded scholarships were available on graduation.
Shop committees were the first point of contact for employees’ work-related issues, except wages and hours, which were negotiated by trade unions.
Savings vehicles included the Bournville Pension Fund, into which employers and staff made contributions.
There was sick pay of up to 90% of base wage, and Workers’ Funds available for prolonged illness. A Dependant’s Provident Fund paid a lump sum to the next of kin if a male worker died under the age of 65.
Question 1. which Maslows need is the benefit plan at Cadburry focusing to?
Self esteem
Social need
physiological need
self actualisation
Question 2. which of the below Cadbury does not have according to the case study?
grievaiance handling
bargaining and negotiation
employee welfare
mentoring
Question 3. Provident fund is a?
short term investment
long term investment
moderate investment
does not depend on time
Question 4. scholorship given at Cadburry would be considered as a?
incentive
bonus
employee benefit
increment
Question 5. the salary given to employees were in which form?
consolidated
on pay grade
no such information is given
both a and b
Question 6. Which of the below is not a part of employee benefits?
scholorship
incentive
provident fund
housing facility
Question 7. which form of compenastion is given to employees at Cadburry?
direct compenation
indirect compensation
long term benefits
all of the above
Question 8. which of the below is not a component of direct compensation
salary
wage
incentive
all are part of dircet compensation
Question 9. Employee stock ownership plan is a?
long term incentive
short term incentive
can be both
it is not an incentive
Question 10. Which statement is not correct?
salary and wage are different from each other
incentive and increment are synonyms for each other
bonus is different from incentive
any kind of insurance cover given to employees is a part of compensation

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Block 4
CASE STUDY
Companies continually test ways to incent employees to perform more effectively, often turning to worker-motivation tools such as bonuses, “up or out” employee ranking tournaments, and employee of the month rewards.
Behavioral scientists warn that these programs, if not constructed carefully, can open a box full of unintended consequences that ultimately harm rather than help the organization.
The financial crisis of 2008 was partially fueled by origination bonuses paid to bank loan officers who were incented to approve bad loans. Less well understood, but uncovered in HBS research several years ago, is that those bank bonuses also caused loan officers to perceive reality differently—they believed those loans would succeed.
It’s not just financial incentives that are under study. Employers seek to change the behavior of workers in all manner of ways: to make more ethical decisions, to get flu shots, to lose weight, to be wiser about personal financial planning. Behavioral scientists are becoming the new HR superstars in some organizations.
Research through the years at Harvard Business School has explored this good intentions-bad outcomes dilemma in many settings, from the glitzy world of Las Vegas to steamy laundry plants in Asia. The results these studies have uncovered are important to understand for org designers, compensation committees, and any function such as sales that depends on incentives to drive performance.

Question 1 Which need of Maslow’s hierarchy theory will not be fulfilled by giving incentives but will be more accomplished by giving recognition
Physiological need
Safety Need
Social Need
Self esteem need
Question 2 Which amongst the below will help employee to stay motivated
incentive
training
flexible working environment
all of the above
Question 3 Biased incentives will result to what kind of employees
satisfied
motivated
dissatisfied
nuetral
Question 4 When incentives are planeed, the target or goals set should be
realisitc
difficult to achieve
easy to achieve
unrealistic
Question 5 Is the statement true “incentives impact behaviour of employees”?
absolutely true
somewhat true
FALSE
none of the above
Question 6 Which is a type of incentive?
merit pay
base pay
hourly pay
bonus
Question 7 Pick up the odd one out
gain sharing
esop
bonus
profit sharing
Question 8 Group pay-incentive plan designed to motivate employees in improving the productivity of their workgroup through more efficient use of resources is called as
gain sharing
esop
bonus
profit sharing
Question 9 incentives are primarily dependent on
profit
sales
productivity
all of the above

Question 10. Which of the below concept is not related to compensation
Adam’s equity theory
Vroom’s expectancy theory
ERG theory
Kirk Patrick model

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Block 5
CASE STUDY
Clare Bettelley speaks to Luke Savage about insurance market Lloyd’s titanic battle to retain employees at the not-for-profit Corporation
The challenge in attracting staff to Lloyd’s, the specialist insurance market formally known as Lloyd’s of London, is compounded by the fact that it is a not-for-profit organisation and lacks the ability to lure prospective staff with share schemes and lucrative stock and option awards. As part of its answer to responding to the competition for talent in the provider-rich global insurance market, the Corporation is in the throes of rolling out a cash bonus scheme.
Luke Savage, director, finance, risk management and operations at Lloyd’s, has been instrumental in the creation of a retention-focused scheme for its 700-strong staff, entitled the Lloyd’s Performance Plan. “When you’re a not-for-profit organisation, [you] need to counter the appeal of people being able to leave when the market’s doing well,” he says.
Bonuses are based on the Corporation’s pre-tax profit for the last full financial year multiplied by a percentage based on employee grade, which is then multiplied by salary. For example on a profit of £2.5 billion someone earning £50,000 a year would receive 12.5% of their salary.
“We had looked at far more complex ideas that effectively created shadow investment schemes to follow the results of the shares of the listed vehicles in the market, but we [decided to keep] it very simple, specifically to make it easier for people to understand.”
Long-term incentive plan
Savage says that he expects the cost of the scheme to be absorbed through Lloyd’s members’ annual subscriptions. “The scheme has been calibrated so that we should be able to operate it without having to go back to the market for more money.”
The scheme is open to all staff and capped according to their grades. It will supersede Lloyd’s existing executive long-term incentive plan (L-tip). On whether executives can earn more than is possible under their existing L-tip, Savage says: “For a given level of profit and a given point in the cycle, one may or may not earn more. The reason I’m being cagey is that the old scheme looked at average results over three years on one basis while the new scheme looks at results for a particular year on a different basis, so the amount you get paid, will vary as a function of where you are in the cycle.”
Awards under the old L-tip were calculated as a percentage of the Corporation’s aggregate profits for the relevant three-year period for each £1m of participants’ salaries.
Savage’s estimated long-term bonus as at 31 December 2006 was £13,000, which increased to £19,000 with the addition of his performance bonus.
“As a Corporation we have to pay a lot more attention to our reward package and work a lot harder by making sure that we provide an overall attractive package to [all] our staff – [not simply] those who have equity.”
Hence, Lloyd’s offers staff a number of non-financial rewards. It offers a defined benefit (DB) pension scheme, which it shifted from final salary to career average for new joiners in 2005. “It was part of a means to manage our risk to the Corporation in the long term. But we made a very clear choice not to close a DB scheme in favour of a defined contribution scheme. We think the DB scheme is valuable to people, certainly for the more mature members of staff, so while we’ve modified the terms, we have kept that scheme open,” he says. The Corporation also introduced employee contributions of 5% for most staff.
Savage says he manages reward costs as part of the ongoing programme of driving efficiency through the Corporation. “Take the area that looks after all the assets we hold on behalf of members – ‘market services’. We’ve managed to shrink its head count by 50% in the last five years and with the savings generated, we’ve invested in new heads in growing areas or made sure that the reward for the rest of our staff stays in line with the market.”
Lloyd’s core benefits Basic employee benefits for new joiners (excluding executives): • Lloyd’s Performance Plan and a performance-related bonus • Career average defined benefit pension with 5% employer contribution • Life assurance • 25 days minimum holiday allowance • Flexible benefits, including private medical insurance, childcare vouchers, additional holiday, cycle-to-work scheme • Car or cash alternative (for managers)
Question 1. which according to you is not linked with performance?
Incentive
increment
bonus
promotion
Question 2. Are the non financial benefits considered as a part of compensation?
yes
no
depends on the benefit given
depends upon the position you are giving the benefit

Question 3. Cafetaria plans comes under?
direct incentive
fringe benefits
lexible benefit
non monetary benefit
Question 4. Which statement is true for Lloyd’s organsation
Bonus is given to all the employees
Bonus is linked to performance
both a and b are correct
none of the above
Question 5. In which of the below scheme both employer and employee contributes together?
pension scheme
esop
paid holiday
paid maternity leaves
Question 6. ______________ is a systematic approach used by Lloyd’s to provide monetary values to employees
Salary
Allowance
Compensation
Rewards
Question 7. The entire case study is based on deciding ________________
direct compensation
indirect compensation
both a and b are correct
perfromance compensation
Question 8. The purpose of compensation setting in Lloyd is to _______
increase employee’s performance
make recrtuitment easy
need recognition of employees
retaining employees
Question 9. What type of compensation system exist in Lloyd?
Grading system
Direct compensation
Indirect compensation
all of the above
Question 10. which amongst the below perquisite is being given by Lloyad to its staff?
pension scheme
life insurance
gratuity
Vouchers
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CASE STUDY
Multi-sector giant GE faced a huge challenge in trying to harmonise perk for its 19,000 employees and the key was a new flexible benefits scheme, says Rebecca Patton
GE introduced a flexible benefits scheme for its entire 19,000-strong UK workforce last November in an effort to harmonise the benefits it offers across its four main business divisions (see below).
Before the arrival of the scheme, which is called FlexChoice and provided by Vebnet, each of the businesses operating within the four divisions, which span the aviation, healthcare, energy solutions and finance sectors, ran their own, separate payroll, HR, and compensation and benefits teams, and the benefits they offered varied widely. For example, employee access to GE’s 30-plus mostly defined contribution (DC) pension schemes and private medical insurance (PMI) plan was inconsistent across the group.
Core levels of benefits now available to all GE employees via FlexChoice include PMI, provided by Cigna HealthCare, life assurance, group income protection (GIP) and two DC pension schemes provided by Legal and General and Aviva, respectively. A third DC scheme, provided by Phoenix Life, is closed to new members.
GE also offers a range of voluntary benefits through FlexChoice, including childcare vouchers, bikes for work, life insurance for employees and their partners, gym membership and travel insurance. A health reimbursement
plan offers staff £60 each to spend on products and services to keep them healthy, such as trainers or exercise equipment.
Employees also have access to a health and wellbeing savings scheme, with GE matching staff contributions up to a maximum of £300.
Kerrie Rowland, UK pensions and benefits manager at GE, says: “Flex was the tool with which we could deliver the harmonisation and at the same time offer flexibility. For example, for those who had never had medical benefits before, if they didn’t want to have these going forward and [wanted to] maintain the status quo, that was absolutely fine. The scheme allowed for them to take the baseline benefit through flex and then flex up.”
GE also restructured its pension arrangements before launching the flex platform. This involved consolidating its 30-plus schemes, which were mostly DC. In addition to its DC schemes, GE now has six defined benefit (DB) plans that are all closed to new entrants.
Boosted take-up
Rowland says the closure of GE’s DB pension schemes to new members helped to boost the take-up of benefits under FlexChoice, which stood at 96% in year one. “The take-up for year one was phenomenal and was largely because we closed the DB plan and people had to go in and tell us which pension plan they wanted to be a member of. If they didn’t go in and tell us they wanted to continue being a member of the DB plan, they would have to be defaulted out [of the scheme], the default being the DC plan.”
GE is currently recruiting employee volunteers as ‘pension pioneers’ to help it communicate its pensions strategy more consistently across the business, as well as to relay employee concerns and queries back to the organisation.
Despite its success in communicating its pension schemes, Rowland says communication was one of the biggest challenges in implementing FlexChoice. “There are nearly 20,000 employees to be communicated to and consult with, all at the same time, on some fairly significant changes,” she says. “Even on the basics, we found our employees were very unfamiliar with considering a pension to be a benefit. To them, it is a contractual right, not a benefit.”
Exacerbating the communications challenge was the fact that so many GE sites are run as self-contained businesses in locations without internet access, nullifying email and website strategies. There were also employees who preferred traditional face-to-face consultation.
Nevertheless, Rowland says the benefits of implementing FlexChoice far outweigh the challenges. One of the biggest advantages is replacing several flex enrolment windows a year with just one.
Rowland adds: “There is one method of understanding throughout the HR department, there is one system, there is one change for everybody unless they have a life event, and a lot of the systems are connected to one another, so updates are made automatically.”
Future additions
GE is now planning future additions to its flexible benefits plan, says Rowland. “For next year, we are going to be adding a benefit from My Family Care. This is largely back-up care and also access to a provider that can find care for [employees], not just childcare but also elder care, which works well for our diversity objectives.
“We will also be expanding the health reimbursement account. Other than that, we don’t anticipate too many changes into year two because, with a flex plan, you just need to be there to work on comfort levels and you can’t do that if you are constantly changing the plan.”
GE’s expansion of its health reimbursement account will see the plan repositioned to focus on employees’ lifestyles and work-life balance, with the account possibly being renamed to reflect this shift. This means employees will be able to use the benefit to pay for treatments designed to improve work-life balance, such as acupressure and massage, as well as for relevant further education courses.
GE also plans to enable employees to use health reimbursement to fund gym membership. Rowland says: “We have looked at what our overall objective is and what we are trying to achieve with this account, and the point is, we are trying to say to employees that we want them to be healthy and have a life outside of the organisation which is supported by GE.”
GE’s implementation of FlexChoice resulted in it being highly commended in the ‘Most effective use of a flexible benefits plan’ category at the 2012 Employee Benefits Awards.
Question 1. Pension according to you is a ___________
expense
contractual right
perquisite
fringe benefit

Question 2. As the GE HR Head, what would have been the biggest challenge that you would have faced in such scenario?
prepering the compenastion Plan
communicating the plan and convincing employees
getting money for so much of workers benefit
no problem at all as GE is a big professional organisation
Question 3. Flexible benefit introduced by GE pertains to which theory?
Maslow’s theory
ERG theory
Vroom’s expectancy theory
all of the above

Question 4. Which beneffit would employees try to gain when they want to achive their social needs?
insurance policy
health benefit
dicounted vouchers
flexible work timings

Question 5. Flex choice introduced by GE are examle of____________
cafetaria plans
basket benefits
flexible benefits
all of the above

Question 6. The indirect compensation been included by GE would be categorised in _______________
base pay
benefits
variable pay
salaries

Question 7. The benefits introduced by GE are linked to ___________
performance
position
person
all of the above

Question 8. According to total rewards approach, the variable pay of the employee is
added into base pay
subtracted from base pay
multiplied to base pay
divided to base pay

Question 9. The systematic way GE will be using to determine the worth of all the jobs will be________________
compensable evaluation
job evaluation
benchmark job
job promotion structure

Question 10. Which is the equity that GE will have to ensire while fixing the benefit plan?
internal equity
external equity
procedural equity
performance equity
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