HUMAN RESOURCE
MANAGEMENT
Introduction
The Role of the Human Resource Manager
* Translate business strategy into action
* Develop and implement human resource strategies consistent
with overall LSO strategies
* Create policies linking strategic and operational planning
* Plan for labour needs, succession planning and supply of labour
* Manage the employment cycle
* Manage strategies related to appraisal, skill development, flexible
work practices and remuneration equity
* Employee advocate in negotiations with management
* Improve customer service through recruitment, selection,
training and development, motivation and rewards
* Act as a change agent
* Support supervisors
Mission
Statement
Relationship of HR
to business
objectives and
strategies
LSO Objectives
HRM Objectives
External
pressures
HR
Outcomes
(PIs)
HR
Strategies
HR
Activities
Internal
pressures
Measuring HR effectiveness
All HR objectives must be evaluated against their contribution to the
achievement of an LSO’s strategic objectives. The must:
* Be measurable
* Include deadlines for accomplishment
* Identify and involve key stakeholders and HR customers to
ensure collaboration
* Nominate individual/parties responsible for implementation
Measuring HR effectiveness
The following outcomes should be considered when evaluating HR
strategies and policies:
* Commitment
* Competence
* Cost effectiveness
* Congruence
* Adaptability
* Performance
* Job satisfaction
* Employee motivation
HUMAN RESOURCE
MANAGEMENT
Expectations
&
Motivation
In order to get the most out of their employees, a HRM needs to
know what motivates the workers.
To achieve this, the HRM must ensure:
* Jobs are correctly designed
* A system of rewards is in place
* An appropriate management style is being used
* A positive corporate culture exists
* The organisational structure allows for employees to work at
their optimum level
To assist employers motivate employees it is important to
understand what employees expect from their employer:
To be paid a fair wage
To finish work on time
To work within a professional
To be given assistance when necessary environment
That they will receive assistance to
upgrade their skills
To be given leave for illness, maternity
and family carer duties
That they will have the opportunity for
promotion
That they will have interesting and
challenging work to do
To be able to arrange flexible working That they will be given the opportunity
conditions, e.g. Hours, job share, part- to improve themselves and upgrade
time, RDOs
their skills
That no one will interfere or make it
difficult for them to complete their
work
To receive positive feedback
To gain satisfaction from the work they
do
To assist the organisation meet it’s objectives it is important for
employees to understand what employers expect from their
employees:
That the employee has some job
To have employees complete their work satisfaction
To achieve the organisational objectives That employees act in a professional
in a satisfactory manner
manner
That customers are given good customer
service
That employees do not deliberately
sabotage the business
That employees arrive on time and leave
at the scheduled time
That employees have a commitment to
the workplace
That employees like what they are doing That employees work in a cooperative
and productive manner
That employees are courteous and
respectful
To have work completed on time
That employees are skilled and willing to
be trained
MOTIVATION IN THEORY
KEY TERMS
Motivation - refers to a decision making process where the individual chooses
desired outcomes and sets in motion behaviours to achieve them.
Motives - are learned influences on behaviour that lead us to pursue particular
goals because we value them
Motivation can be thought of as the degree to which
an individual wants and chooses to engage in certain
behaviour/s
WHY SHOULD LSOS BOTHER WITH
MOTIVATION?
Motivated workers have:
Higher productivity (output per worker per period of
time)
 Better quality work with less waste
 A greater sense of urgency (desire to get the job jone)
 Make more feedback and suggestions for improvement
 Desire more feedback from superiors for improvement
 Work at 80-95% of their ability

HIERARCHY OF NEEDS - MASLOW
Need for fulfillment of personal potential
Need for independence & recognition
Need for relationships and belonging
Need for physical and emotional security
Need for food & shelter
MASLOW - HOW DOES IT WORK?
A person will start at the bottom of the hierarchy and will
initially seek to satisfy basic needs. Once satisfied, they are
no longer a motivation. The individual moves up to the next
level. Therefore employers must be able to satisfy all needs
to maximise productivity through motivation.
Physiological needs at work (e.g. satisfactory pay conditions
for survival)
Safety and security needs at work (e.g. physical safety such
as protective clothing and job security such as protection
against unemployment and long-term/sickness)
Social needs at work (e.g. teamwork, participation in
decision-making, supportive management)
Esteem needs at work (e.g. responsibility, autonomy,
recognition and promotion)
Self-actualisation at work (e.g. jobs that are challenging,
stimulating and require creativity, opportunities for
advancement)
TWO FACTOR THEORY-HERZBERG
Background:
 Herzberg analysed the job attitudes of 200 accountants and engineers who were
asked to recall when they had felt positive or negative at work and their reasons.
 Herzberg suggested a two-step approach to understanding employee motivation
and satisfaction
Employees no
longer dissatisfied,
but not yet motivated
Dissatisfaction
and Demotivation
1
Hygiene
Factors
Positive satisfaction
and motivation
2
Motivator
Factors
HYGIENE FACTORS - HERZBERG
Hygiene factors -based on the need to avoid
unpleasantness
 If inadequate, they cause dissatisfaction with work
 Hygiene factors include:







Company policy and administration
Salary and other remuneration
Quality of supervision
Interpersonal relations
Working conditions
Job security
MOTIVATOR FACTORS - HERZBERG
 Motivator
factors are based on an individual’s needs for personal growth
 Motivator factors actively create job satisfaction
 If effective, these factors motivate an individual to achieve above-average
performance and effort
 Motivator factors include:
 Status (This might be a hygiene factor to some people)
 Advancement
 Gaining recognition
 Responsibility
 Challenging/stimulating work
 Achievement
 Personal growth in the job
IMPLICATIONS -HERZBERG


How should Herzberg’s two-factor theory be applied to demotivated workers?
What might the evidence of poor motivation be?
•
•
•
•
Low productivity
Poor production quality
Strikes/industrial disputes
Complaints about pay and conditions
•According to Herzberg, management should focus on re-arranging work so that
motivator factors could take effect. He suggested three ways in which this could be
done:
• Job enlargement
• Job rotation
• Job enrichment
Job Design
How a job is designed can influence motivation. There are 3 components
to job design that can improve motivation:
Job Enlargement
Widening the job
scope so it is more
challenging by
combining various
operations at a
similar level
Job Enrichment
Job Rotation
Involves making a
job more
challenging by
requiring the job
holder to use their
full capabilities and
gain personal
growth to perform
their job
Workers are moved
between different
jobs to increase
their variety of
work and to create
a flexible workforce
LOCKE’S GOAL-SETTING THEORY



Locke found that employees were motivated by two key
factors – goals and feedback
Clear goals provide employees with something to achieve
while feedback helps an employee to achieve a goal
When goals and feedback work together, employee
results (performance) improve
Clear Goals
Appropriate
Motivation
Improved
Performance
LOCKE’S GOAL SETTING THEORY
Locke’s theory shows that there is a clear
relationship between;
 the task (goal) set
 the difficulty of the task, and
 the ability of the employee to achieve the task
 Locke found that hard goals that were very
specific provided greater motivation than vague
or easy goals

LOCKE’S 5 CHARACTERISTICS TO
SUCCESSFUL GOAL SETTING (SMART)
1. Clarity (S, M & T)
clear goals are measureable, unambiguous and behavioural
2. Challenge (R)
people are often motivated by achievement
if it will be well received, there’s a natural motivation to do good
job
3. Commitment (A & R)
goals must be understood and agreed upon
employees will more likely support goals they have taken part in
developing
4. Task complexity (A)
mgmt must incorporate measures into the goal expectations to
ensure workers don’t become overwhelmed, i.e. sufficient time
5. Feedback (M)
clarify expectations, adjust goal difficulty and gain recognition
Mgmt should provide benchmarks or targets
Strategies
Flexibility in work practices
The ability to create a flexible work environment can motivate employees.
A flexible work environment recognises individual differences between
employees.
Creating an environment that treats employees ‘holistically’ – the whole
person
Involves practices such as:
•Job sharing
•Family leave
•Flexible work hours (“Flextime”)
•Part-time work
•Work-Family balance
Rewards
FINANCIAL
NON-FINANCIAL
Wages/Salary – based on hourly
rate, productivity
Promotion, Team leader,
opportunity to work on special
projects
Commission
Career development, study leave
Flexible salary package
Staff recognition, awards and
praise
Superannuation
Expense accounts (outside salary)
Performance-related pay
Office
Employee share purchase plans
Job title – status
Recognition
Profit sharing
Allowances for travel, clothing,
meals and accommodation
Fringe benefits
Travel, entertainment vouchers
THE EMPLOYMENT CYCLE
3. Termination
Phase
Voluntary/Involuntary
Entitlements
Outplacement
Transition
2. Maintenance
Phase
Working
arrangements
Compensation
Induction
Training
Performance
1. Establishment
Phase
HR Planning
Job analysis
Recruitment
Selection
HR Planning
Job analysis
Recruitment
Selection
• Adequate
supply of
labour
• Changing
needs of
employees
• Global
economy
• Future needs
• Job
description
• Job
specifications
• Sources
• Methods
• Applications
• Screening
• Interviews
• Testing
• Reference
checks
• Outcome
Employment
arrangements
•Type
•Agreement
•Remuneration
Induction
•Formal
•Ongoing
•Mentor
Training and
development
Performance
management
•Short term
•Multi-skilling
•Long-term
•Career
progression
•Appraisal
•Outcomes
Termination
Voluntary
Resignation
Retirement
Involuntary
Retrenchment
Dismissal
MANAGEMENT & EMPLOYEE
RELATIONS
Employee or Workplace or industrial relations is a system
involving employees and employers. It is a key area of
responsibility of the human resource manager. It examines the
relationship in the work place. It is now known as workplace
relations. In Australia state and federal governments regulate
the Australian system of workplace relations.
The aim of workplace relations is to achieve an optimum working
relationship between employees of an organisation and
management.
What is a good employee relations policy?
1. Empowerment of workers.
2. Teamwork.
3. Common aims or goals between management and the work force.
4. Good people skills to resolve conflicts.
5. Provision of pleasant working conditions.
6. Provision for a diverse work force.
7. Good relations between unions and management.
Centralised v Decentralised System:
Centralised
Decentralised
Disputes solved externally
Disputes solved internally
Wages and conditions set by
FPC/AIRC
Wages and conditions
determined by employer and
employee
Agreements called Awards
Agreements called EBAs or
AWAs
Employees interests
represented by Trade
Unions
More employee input
Decision legally binding
Decision legally binding
THE MANAGEMENT OF
CHANGE
WHAT IS CHANGE?
Any planned or unplanned(forced or unforced) alteration to
processes and procedures as a result of pressures form the
external or internal environment
TYPES OF CHANGE
TRANSFORMATIONAL
Major change
INCREMENTAL
Minor change
STRUCTURAL
Change to the formal arrangements for achieving organisational
objectives and includes changes to processes and procedures, lines
of communication and organisational charts
PRESSURES FOR CHANGE
LSOs operate in an open system and are affected by a range of
pressures from the external and internal environments
LSOs must adapt to change in order to maintain the
competitive edge
EXTERNAL PRESSURES
Pressures from OUTSIDE the organisation (the broad
environment in which it operates)
Includes those pressure the organisation has NO CONTROL
over but affects it directly:
Changing nature of markets eg globalisation
Technological advances eg robotics
Government policy eg privatisation, deregulation
Legislation eg workchoices, OHS
Economic eg level of economic activity
INTERNAL PRESSURES
Pressures from INSIDE the organisation
Includes those pressure the organisation has DIRECT
CONTROL over
Use of technology
Employees
Culture
Cost of production
Policy
Structures
E commerce
Alliances
Possible effects of change on large-scale organisations.
There are numerous targets for change, these include the following:
1) Plant and equipment.
2) Management structure.
3) Management styles.
4) Corporate culture.
5) Recruitment and training.
6) Tasks.
7) Planning changing roles.
8) Objectives.
CHANGE MODEL (KOTTERS)
Create urgency
Form a powerful coalition
Create a vision for change
Communicate the vision
Remove obstacles
Create short-term wins
Build on the change
Anchor the changes in corporate culture
Methods on how to overcome resistance to change include:
Honesty
Communication
Participation
Negotiation
Retraining
Threats are not a good approach nor is manipulation.
Forces affecting change
Driving
Forces that initiate, foster,
support and encourage
the change.
Restraining
Forces that work against
the change.
Tactics for dealing with change
High Risk
Tactics that must be
applied correctly or else
failure results
Low Risk
Steady, incremental
approach to change.
Stances when dealing with change
Proactive
See the change coming
and be ready to
implement.
Reactive
Wait until change has
impacted before initiating
implementation.
EXAMPLES OF RESISTANCE TO CHANGE
Employees
Fears and attitudes to change due to lack of
understanding, knowledge, skills ( generally as a
result of poor communication) and create problems
of job insecurity, lack of motivation and job
satisfaction
Financial cost of implementation
Cost of new equipment, cost of redundancy
packages, cost of training and/or retraining and the
cost of new plant layout
Inertia of management
Attitude of management and lack of commitment to
change ( not proactive)
CHANGE INVOLVES ALL ASPECTS OF MANAGEMENT
MANAGEMENT ROLES (POLC)
PLANNING
Processes involved in developing vision, mission objectives to be achieved
through the change, and developing the strategies to implement the
change, may include strategies for breaking down resistance
ORGANISING
Process of putting the plan into action by allocating resources, delegating
tasks, setting up appropriate structures to facilitate the change
LEADING
Process of influencing employees to achieve the organisational
objectives(the change) by modelling and setting an example, by proving
guidance and direction, motivating and supporting employees with the
change.
CONTROLLING
Process of monitoring, evaluating and taking corrective action when
needed. This would include measuring performance in implementing the
change against PIs and developing new strategies when required.
MANAGEMENT SKILLS
Communication
Problem Solving
Decision Making
Time Management
Delegating
Emotional Intelligence
Stress Management
Strategic Thinking
Vision and Goal Setting
CORPORATE CULTURE & CHANGE
Shared values an beliefs held by employees in the organisation
and
Rituals within the organisation
Significant to change management as it determines success
Positive culture v Negative culture
Learning focus, technological focus, supportive, flexibility and
adaptability, communication and appropriate management style
V
Conservative, fear of technology, ineffective communication and
management style, conflict
CHANGE STRATEGIES
Training
Communicate vision, reason for and benefits of change. Must be two
way with the provision for feedback. Establish a process for
(committee ) for employees to air any concerns
Redundancy packages for downsizing
Change agent to model and promote the change
Provide support for staff and build trust
Reasonable time frame
Appropriate management style
PIs
Will depend on the change that is implemented
Productivity, employee satisfaction and acceptance, customer
satisfaction, profitability
CHANGE ISSUES
Technology
Privatisation
Acquisitions and mergers
Outsourcing/ off shoring
Environment
Ethics and social
responsibility
Globalisation
From ‘The Age’ – information on extended response
question
Clarification from the VCAA:
There will be a 10 mark question that is drawn from Unit
4, Area of study 2. It will be based on the management of
change but can draw in elements from Unit 3 and 4.
Ethical & Social Responsibility
An underlying theme of the course is ethical and social responsibility .
Although it is also a change issue, all students are expected to understand this
concept.
E&SR is the role an organisation plays in the community. The public expect
all organisations to be involved in and contribute to society beyond their role as
a business.
ADVANTAGES & BENEFITS OF E&SR
DISADVANTAGES & COSTS OF E&SR
1. it provides organisations with a way to
enhance its reputation
1. E&SR may be expensive in terms of costs
and expenses not directly related to its core
business.
2. free publicity may be gained
2. Time & resources are spent
3. employees enjoy working and
contributing to the community
3. Sometimes the organisation may have to
make choices between a number of worthy
causes
4. shareholders are more likely to invest in
an organisation with a sound E&SR
program.
5. The organisation may become an
‘employer of choice’ and thus attracts the
best employees.
LEVEL OF
MANAGEMENT
HRM
STRATEGIC
(TOP)
Manpower planning
for an expansion of
the organisation.
OPERATIONS
MANAGEMENT
MIDDLE
MANAGEMENT
FRONT LINE
MANAGEMENT
POLC
Planning i.e. for the
introduction of a
department restructure
over the nest 12
months.
Staff rosters &
holidays
Production schedule for
the next month.
CASE
STUDY
PRESSURES PERFORMANCE OPERATIONS
HRM
INDICATORS
MANAGEMENT
MANAGING
CHANGE
BHP
Billiton
Competition
Planned take
over of WMC
Mitsubishi Competition
Efficiency
Telstra
Competition
Technology
Privatisation?
Profit
Market share
Re badging &
restructuring of
the design process.
New CEO Move to
& changes privatization.
in staffing.
EXAMINATION PREPARATION &
PAST QUESTIONS
www.vcaa.vic.edu.au
Breakdown of marks by Area of Study for
the past 4 Exams
UNIT 3
Area of
Study 1
2009
2008
2007
2006
2005
12
marks
10
marks
7
marks
14
marks
15
marks
Area of
Study 2
14
marks
16
marks
14
marks
18
marks
12
marks
Area of
Study 3
14
marks
6
marks
8
marks
10
marks
12
marks
2009
2008
2007
2006
2005
Area of
Study 1
12
marks
12
marks
13
marks
9
marks
7
marks
Area of
Study 2
10
marks
16
marks
16
marks
10
marks
15
marks
UNIT 4
Past Examination Questions & Response Guide
2008
Question 1
Australian Mineral Resources (AMR) and Jerrilderi Mining
have been negotiating a merger with the aim of achieving
economies of scale. The Chief Executive Officers (CEOs) of the
two mining companies have been in discussion over the past
three months.
The focus of these discussions has been
• the potential problems of merging two well-established
companies with different cultures
• the possible structure of the new entity
• the content of a joint mission statement
• the adoption of a single planning process at the three levels.
1a. Define mission statement.
Marks
0
1
Average
%
16
84
0.9
Key points to note:
No half marks
Must be ‘spot on’ with your definition
1 mark questions are often discriminators – distinguish
between 50/60 and 55/60 papers
‘Correct’ answer:
The mission statement sets out the reasons why the
organisation exists and describes the purpose of the
organisation.
b. i. Define organisational structure.
Marks
%
0
49
1
51
Average
0.5
Key point to note:
Students should ensure that they do not use the same words that
are in the question. For example, when asked to define
organisational structure, responding with ‘is the structure of the
organisation’ will not score any marks.
‘Correct’ answer:
Organisational structure describes the way that an
organisation chooses to divide the labour and
coordinate the activities of individuals and groups
within the organisation.
b. ii. Describe the key features of a matrix organisational structure.
Marks
0
1
2
Average
%
54
26
20
0.7
Key points to note:
Question is worth 2 marks so at least 2 features should be mentioned
Describe is the action word so don’t list
A matrix structure exists when an employee is a part of a
specific group or team, but remains part of a functional area. Its
key features are hence effective communication both upwards
and downwards in their functional area (eg. Human resources)
and across in their team. Employees are hence accountable to
both a team leader and a functional manager. Skills are pooled
across the organisation and it is characterised by synergy within
the organisation and flexibility.
c. Identify and describe the three levels of planning.
Marks
0
1
2
3
4
Average
%
36
7
12
21
24
1.9
Key points to note:
In some text books the three levels of planning are identified (in order)
as strategic, operational and frontline – the definitions remain the
same.
Students who did not score full marks for this question either did not
include the level of management involved or did not specify a
timeframe for the level of planning.
The three levels of planning are strategic, tactical and
operational types of planning.
The strategic level of planning is typically conducted by senior
managers and refers to the development of long term goals and
strategies, which generally take over a 3 – 5 year timeframe. A
strategic plan for Safeway supermarket could include
expanding the market share by 5% over a 3 year period.
The second level of planning is tactical planning. This is
generally conducted by middle management in order to create
objectives and plans for a 1- 2 year period. Tactical planning
usually refers to the goals of each department rather than the
overall organisation. A tactical plan for Safeway could include
deciding to renovate a store of stock a new food product.
The third type of planning is operational planning, which is
undertaken generally by frontline managers. Operational
planning is for short-term goals to achieve on a daily or
monthly basis. Operational planning for an organisation such
as Safeway can entail setting daily targets for staff.
1d. Discuss two indicators of corporate culture the organisations
would have considered.
Marks
0
1
2
3
4
Average
%
35
17
20
12
16
1.6
Marking:
Identification of 2 indicators with appropriate discussion would
gain 4 marks
Identification of 2 indicators with appropriate discussion of 1
indicator – 3 marks
Identification and discussion of 1 or identification and limited
discussion of 2 indicators would receive 2 marks
Identification of 2 indicators and no discussion 1 mark
Examples include:
•Prevailing management style
•Relations among staff
•Style of dress and language
•Budgets and other statements of priorities
•Rituals
•Symbols
•Task or people orientation
•Attitudes of staff to management and vice versa
Example:
Rituals – these express and reinforce the key values and
can include recognition and award ceremonies, weekly
social gatherings, uniforms or ID badges and how new
staff are introduced.
1e. Explain how leadership is essential in effective change management.
Marks
0
1
2
Average
%
22
50
28
1.1
What 2 things are we looking for to get 2 marks for this
question?
1. Definition of leadership
2. Leadership and change management link
Leadership is the process of influencing staff to achieve LSO
goals. It involves activities/skills such as communication,
negotiation and motivation. (1 mark)
Leadership, with its emphasis on communication, employee
engagement and the ability to facilitate work relationships is
essential for successful change to occur and organisational
goals to be achieved. If leaders don’t possess these skills,
employee resistance may develop, leading to a decline in
morale. (1 mark)
1f. Outline and discuss a change management theory. Where relevant,
refer to the current situation at AMR and Jerrilderi Mining.
Marks
0
1
2
3
4
5
6
Average
%
26
5
9
12
17
16
15
3.0
Kotter – 8 steps, but if you can remember them less detail is
needed.
MUST relate theory to case study
Question 1
In total worth 20 marks
Topics covered include
Structure, Mission, Culture (U3 AoS2)
Planning (U3 AoS1)
Leadership and change management theory (U4 AoS2)
Questions cover a variety of sections from the course. Must be able to
link different topics into one question.
Question 2
Country Foods is a food processing company with plants in Bendigo,
Ballarat and Geelong. It is a major employer in these regional centres. Due
to the severe drought in Victoria, Country Foods has made a business
decision to close the Bendigo factory. The Human Resource Manager, Bob
Spiteri, is responsible for implementing the closure in relation to staffing
matters. The company’s CEO has contacted Bob Spiteri as he is concerned
about possible industrial relations action that might impact on the
company’s stakeholders.
a. Define employee relations and discuss the role of the human
resource manager in this area.
Marks
%
0
20
1
28
2
26
Two components to the question:
1. Definition of employee relations
2. Role of HRM
3
16
4
9
Average
1.7
Employee relations is the interplay between workers (or
their representatives) and employers (or their
representatives)
about the terms and conditions of employment or work. (1
mark)
The human resources manager’s role is to employ conflict
resolution skills when disputes arise, keep abreast of current
industrial relations laws, try to promote the concept of an
organisational team, avoid IR disputes, and initiate and
carry out performance appraisals. (1 mark)
b. Identify and describe two human resource strategies Bob Spiteri
could use in this case.
Marks
0
1
2
3
4
Average
%
45
13
19
11
11
1.3
Strategy – any action taken by the LSO to achieve a goal or
outcome.
Strategies include:
•Retrain staff
•Relocate staff to plants not closing down
•Offer redundancy packages
Strategies aim:
•Meet objectives of LSO – close one plant
•Avoid industrial action
•Maintain morale of remaining staff and positive culture
c. Identify and explain two management skills Bob Spiteri could
use and discuss how these skills would assist him in this current
situation.
Marks
0
1
2
3
4
Average
%
17
12
33
19
18
2.1
Two of:
• communication
• stress management
• decision-making/problem-solving
• negotiation.
Generally, this question was well handled. Students who
scored highly were able to identify two skills, discuss the
theory regarding those skills and apply them to the case
material.
Communication skills is the ability to send and receive
information to produce the required response by getting further
understanding or clearly articulating concerns. It is
imperative that Bob communicates effectively with employees so
that they understand when the closure is going to occur, why
it’s going to occur and what their entitlements are. It is equally
important that he understand the concerns that they
communicate to him and that he takes these into consideration.
This will assist him in ensuring the employees are not
dissatisfied with Country Foods.
d. Identify two stakeholders of Country Foods. Discuss the
potential impact of this closure on these stakeholders.
Stakeholders could include:
• employees
• shareholders
• managers
• suppliers to the Bendigo plant
• the local community of Bendigo.
Employees who lose their jobs might have to relocate to
another city.
Suppliers will lose a customer in Bendigo and this will
impact their business financially.
Bob Spiteri is concerned about the impact of the closure of the
Bendigo factory on staff at the Geelong and Ballarat plants.
e. Describe how an appropriate motivational theory would assist
him to maintain staff morale.
Maslow’s hierarchy of needs outlines a 5 stage theory ranging
from basic needs (food and water) to higher order needs such as
self actualisation. While the employees at the other factories may
feel slightly affected by the closure, Bob could motivate them
according to Maslow’s theory. According to Maslow, the second
highest need is esteem that is for status, recognition or attention.
As a HR Manager, Bob could hence conduct performance
appraisals with employers which is where their ability to
perform their job is observed and evaluated and then Bob could
provide feedback. This would involve setting goals to improve
their performance, employees could be motivated to work more
productively, while the recognition by Bob of what they are doing
well would satisfy their esteem needs. Furthermore, to help
employees to achieve self actualisation, that is the highest need
which is a desire to reach their full potential and utilise all of
their talents and capabilities, Bob could organise for them to
participate in workplace training so that they will develop new
skills and hence aim to achieve their full potential. According to
Maslow, satisfying these needs will ensure that morale is
maintained.
Many students gave a rote-learned response about a
motivational theory and therefore did not answer the question.
To obtain full marks for this question, students needed to relate
the motivational theory to the case material.
Question 3
Classic Cleaners specialises in supplying Australian households
with washing machines and dishwashers.
The company is planning to reorganise its operations as it prepares
for the introduction of new models.
The Operations Manager, Connie Lemnos, is investigating having
some product parts manufactured in China and shipped to its
Australian factories.
a. Identify and describe
• one quality strategy
• one materials management strategy
• one facilities and design layout strategy
that could be employed as a result of the introduction of the new
models at Classic Cleaners.
Quality
Materials
Facilities &
Design
Strategy 1
Quality Control
JIT
Product Layout
Strategy 2
TQM
Make or Buy
Fixed Position
2 marks for the identification of an operations management
strategy, with explanation of strategy and discussion of how
it will be used as a result of the introduction of the new
models.
X3
HOW DO WE APPLY MOTIVATION THEORIES
TO EXAMINATION QUESTIONS?
The Case Study…
Dave Rodgers, Manager of the Marketing Division at Hume and Weston Ltd, has
been called by the Human Resources Manager, Ms Wilson, to explain the high
number of recent resignations from his department. Most resignations have been
from the younger graduates who have complained about the lack of direction, no
sense of belonging and no support given by Dave.
Dave does not see a problem with the high staff absenteeism, and would rather not
discuss his department with Ms Wilson. Ms Wilson demands that he solve these
problems immediately.
HOW DO WE APPLY THESE THEORIES TO
EXAMINATION QUESTIONS?
The Question…
Identify and explain an appropriate motivational theory and
discuss its benefits for the Marketing Division.
(4 marks)
How would Dave Rodgers apply this motivational theory to the
Marketing Division?
(2 marks)
(Source: VCAA VCE Business Management Examination 2005)
HOW DO WE APPLY THESE THEORIES TO
EXAMINATION QUESTIONS?
The Responses…
Need to:
- outline the core elements of the motivational theory
- refer to the benefits for the Marketing Division
- apply the theory to the scenario (e.g. what Dave needs to do to overcome the
issues he is facing)
HOW DO WE APPLY THESE THEORIES TO
EXAMINATION QUESTIONS?
The Response…
Using Maslow’s Hierarchy of Needs:
Part1: Abraham Maslow’s needs theory of motivation comprises five levels of
motivational factors, with each having to be satisfied before the next can be met. The
factors, in ascending order are basic needs, safety, social needs, esteem and selfactualisation.
This theory would benefit the Marketing Division through providing an idea of which
employee needs should be satisfied, and in what order. This would maintain employee
satisfaction, reduce absenteeism and provide a structure and sense of belonging that is
currently lacking.
Part 2: Mr Rodgers could apply this theory to the Marketing Division by identifying the
needs that his employees must have fulfilled. Employees have expressed that they feel ‘no
sense of belonging’, which is a need identified in Maslow’s theory. By providing
opportunities in his department for this need to be fulfilled, perhaps through creating
teams or teamwork situations, Mr Rodgers will motivate his staff to try to achieve higher
order needs, which will lead to increased employee job satisfaction and reduced staff
absenteeism.
HOW DO WE APPLY THESE THEORIES TO
EXAMINATION QUESTIONS?
The Response…
Using Herzberg’s Two Factor Theory:
Part1: Frederick Herzberg found that job satisfaction and job dissatisfaction acted independently of
each other. His Two Factory Theory, or motivation-hygiene theory, states that there are certain
factors in the workplace such as achievement, accomplishment and personal growth that cause job
satisfaction, while a separate set of factors such as status, salary and benefits cause dissatisfaction
from their absence.
This theory would benefit the Marketing Division through providing an idea of what needs should be
satisfied in order to increase employee motivation levels and consequently improve productivity. This
would enable the division to maintain employee satisfaction, reduce absenteeism and provide a
structure and sense of belonging that is currently lacking.
Part 2: Mr Rodgers could apply Herzberg’s theory to the Marketing Division by focusing on the
motivator elements or nature of the work itself, delegating responsibility and designing challenging
tasks to ensure employees have the opportunity to gratify the higher order needs of achievement,
personal growth and recognition. By doing this he will increase employee motivation and overcome
the problems concerning a lack of direction and support. With increased motivation, Mr Rodgers will
subsequently experience an increase in employee job satisfaction as well as reduced staff
absenteeism.
HOW DO WE APPLY THESE THEORIES TO
EXAMINATION QUESTIONS?
The Response…
Using Locke’s Goal Setting Theory:
Part1: Edwin Locke’s Goal setting theory found that employees were motivated by two key factors,
goals and feedback. Both of these factors working together would then lead to improvements in
performance. Locke’s theory centred around the importance of setting goals according to the SMART
principle whereby goals set should be Specific, Measurable, Attainable, Realistic & Time
Constrained.
This would benefit the Marketing Division through setting clear and achievable goals with his staff
and providing appropriate feedback. This would maintain satisfaction of staff and if they are given the
opportunity to be involved in setting the goals, would lead to increases in sense of belonging that is
currently a problem.
Part 2: Mr Rodgers would use Locke’s theory and apply it to the Marketing Division by setting
specific, measureable and achievable goals. Mr Rodgers must also ensure that they are relevant and
realistic for the employees to attain and make sure he provides adequate time to complete them. Mr
Rodgers must also ensure he provides appropriate feedback in a timely manner to assist employees
to achieve their goals. The young graduates have expressed lack of direction, these clear goals would
assist in helping them have direction and the feedback Mr Rodgers provides can help them feel a
greater sense of belonging. All these factors will lead to reducing the problem of high staff
absenteeism as staff would enjoy their job as they now feel recognised for the efforts and play a part
on the goals they set and achieve.
Did you know .....?
There are 43 days until the Business Management
exam!
There are 28 days until the English examination
There is lots going on between today and the exam:
•Holidays
•‘Muck up’ day(s)
•Graduation
•Licence test (?)
•Final ‘schoolies’ planning
Your task is to prepare as well as you possibly can for
the examination.
What should you be doing?
WHAT SHOULD I BE DOING ?
Review your notes – prepare summaries of each
topic, identify examples that are appropriate for
each area, Diagrams and flow charts
Look at what the examiners have asked in the past
to get clues for your exam
Find out what the examiners are looking for – assessors
reports
Practice your exam technique
* Glossary
* Knowledge of ‘action’ words
* Knowledge of an LSO and a change issue
affecting that LSO
If not already prepared, these items should be prepared
and revised. The ability to correctly use terminology and
provide exact definitions demonstrates a deeper
understanding of the topics.
Can separate a 6/6 answer from a 5/6 answer.
In the Exam
Reading time
15 minutes. Time to read the exam through at least twice.
Why twice?
Check the mark allocation. For a 2 mark question you should
allocate 4 minutes (max).
If a question is worth 4 marks but the 4 marks are 2 + 2, then
you must spend equal time on each 2 marks.
Look for clues in the scenarios (if given). Where possible link
your response to something in the scenario.
Writing time
Answer the ‘easiest’ question first.
This is not necessarily Question 1.
Each student may have a different ‘easiest’ question. This will
depend upon the areas you have revised more thoroughly or
tips gained from teachers about the exam.
You don’t have to answer the questions in order.
Keep re-reading the questions – some of the early questions
may provide hints, clues, etc that will help you answer the later
questions.
Don’t write in pencil
You can’t use liquid paper. If you make a mistake, cross it out
and use the spare pages at the end of the booklet.
If you need more space for a question, write on the spare
pages at the end of the booklet and use clear instructions
directing the assessor where to read.
Write clearly. Assessors are human and have a heavy load.
Poor handwriting can lead to “errors” in marking as assessors
get tired. (Most assessors are teachers still teaching and
must mark about 200 exams in a week).
Try to leave time at the end to read over your answers.
Practice your exam technique
By now you should have seen a number of Bus Man exams:
•VCAA Sample Exam (available on www.vcaa.vic.edu.au)
* Practice exams set by others – NEAP, CPAP, TSSM
•Practice exams set by VCTA (www.vcta.asn.au)
• Beware of Past VCE Exams
Make sure when you do it you do it under exam conditions:
* Reading time (no writing)
* Writing time (don’t give yourself extra time, don’t take a break,
don’t have music/TV on, turn mobile off)
* allocate your time as you would in the exam
WHAT HAPPENS NEXT ?
Devise a routine for yourself
Treat your study days like a school day – get up
normal time, study, break (recess), study, break
(lunch), etc. Keep your normal routine.
Do your practice exams at the same time of day as
the ‘real’ exam – get used to the conditions
Plan how you will get to the exam venue
Get to the exam at least 30 minutes before hand.
Don’t sit and discuss what you’ve studied – someone
may say something that distracts you or panics you.
Simon.Phelan@haileybury.vic.edu.au