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LTNIVERSITYOF COLOMBO, SRI LANKA

FACULTY OF MANAGEMENT AND FINANCE

Postgraduate & Mid-care€r Developm€nt Unit

Master ofBusiness Administration in Finance/ Master of Business Administration in Marketing/Master ofBusiness Administration in Human Resource Management

(Semester II - First-hal0 Examination - August 2008

MBA 537 - Human Resource Management

Three (03) Hours

Instrucfions to candidates:

Answer any FM (05) questions.All questions carry equal marks.The candidate is responsible for legibility ofwriting.Manage time (three hours) writing answers to the point.There are Ten Questions on Six pag9s.

L "Every Manager can be perceived as a Human Resource Manager,,. ,,Every Manager is norsupposed !o be an expert in HRM". "Every Human Resource Manager is supposed to be anexDert in HRM".

Do you agree or disag.ee with these statements? Justiry your answer.

2. i. "Trust is an important factor that determin€s success of flex-time schedule in an

organization. The manager (superior) should trust hisnler subordinates in the sense that

they will not abuse the system and they will cornplcte successfully work assrgnmenrs.

Should a flcx-time programme seem appropriate for an organization, the programme,s

chances ofsucceeding are increased, ifseveral steps are taken',. Discuss.

ii. An organisation that envisages to implement Telecomhuting, as an altemative work

schedule, needs to be careful. Why?

3. Assume that you are required to do a Job Analysis in an organization. Describe djstinctly howyou p€rform it.

4. Read the following vignette and answer questions given at the end of i1

Selection .t MM Paints

MM Paints (Pvt) Company is a medium size business organization manufacturing and

distributing MM brand painls throughout the country. The owner who is the Managing Dircclor

(MD) of the Company is a hardworking person and because of his genuinc commilmcnl,

expertise in painting, human relations and experience he was able to develop the Company to the

cument state. ln fact, the Company obtained an award from the Covernment for high productivity

last year. However, the Company has to face a s€vere comp€tilion coming from local as well as

foreign companies engaged in the industry

Three years ago the MD hired a graduatc in Accounting from the University of Sri

Jayewardenepura for the post of Accouniant, namely Mr' Janaka Chandana Based on his

excellent performance he was promoted in 2007 to thc post of Intctnal Auditor thal had bcen

designed exclusively for his promotion by considering business needs too. He obtained bis

Masters Degree in Business Administration from the University of Colombo in the same yeaf

(before the promotion). The MD had a lery bad experience fiom a person who had been hired

for the post of Production Managcr. The person who had rvorked as the Production Manager

learned many things about the manufacturing technoiogy and left to start his own business lvhich

was competi l ive to the Company. Du€ to this event, the Company lost somc of i ts customers.' fhis person had been hired through an intcrvicw conducted and chaired by the MD. With this

very bad cxperience he started to be very serious in employee selection

The post of Marketing Manager became vacant du€ to the resignation of the job holder. He Iefl

because he had found a job with better rewards. The Internal Auditor suggested to form an

interview panel consisting of an expert in Marketing and an expert in FIRM chaired by the MD.

The MD accepted the suggestion. A person wiih a BCom and an MSc in Mafketing from the

Strathclyde University, UK was appointed as the expcrt in Marketing for the interview. In fact.

he was a friend to the MD and had an extensive experience in Marketing. The HRM exPert was

an acadcmic with a wealth of teaching and rcsearch expcrience who had taught HRM to Mr'

Janaka for his MBA. The HRM expert had a BSc, an MSc, an MBA and a PhD

The vacancy was advertised and nine persons applied All were called lor the first intervi€w th€

board for which had consisted as planned, i .e. lhe expen in Marketing, the cxpert in HRM, the

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intemal Auditor and the MD. In fact, the HRM expert had asked for an evaluation scheme before

the intervieNing was commenced. He was inlormed by the chair that we could consider

experience and education plus expected salary. Each intewiewer was given a file that had

contained a form for each candidate giving a summary of the r]ndidate's information which had

included name, address, contact number, date ofbirth, etc. One ofthe nine fbrms relating to nine

candidates is given below:

Interviera for tbe post of Marketitrg Manager (Cti 07/2007 | 9.00 a.m.

Applicant s Name & Address Mr. A.manda K. Jayawardene

145/5, Balangala Road, Wattala

Contact No. 0777122228,2854341

Civil Status Manied

Date of Binh 23t04/1972

Academic Qualification GCE (A/L) Passed

GCE (O/L) Passed

Professional Qualifi cation Diploma in Marketing

Experience l2 years experience in handling dealer

network in hardware sector

SAI Group

2001-2002 Marketing Manager

1999-2001 Ficld Sales Manager

lgqT-1999 Regional Sales Manager (Be\l

RSM in 1998/99)

1990-1994 Sales Representative

KT (P\,1) Ltd

1994-1997 Area Sales Manager

Present Employer Steel Trading Company

Current Position Senior Sales Manager

Reason for applying

Expected Salary

Cunent Salary

Slrengths

Weaknesses

Grading (A-Good, lj-Average, C-Poor)

Suitabil i ty for the Post

Name ofthe Panelist: Signarure:

After interviewing each applicant, the HRM expert gave a test call€d Supe.visor lndex to €ach

one. Each applicant had been requested to go oul complele the text, and hand it over to the

counter receptionist. The index had contained 20 statements pertaining to principles or beliels or

practices about supervision,

Finally, the Marketing expert selected Mr. Prabath as the most appropriate job applicant and the

HRM expert selected the same person. But the MD preferred Mr. Ruwan to Mr. Prabath. Mr.

Ruwan had been selected as the second in order of merit by the both experts. However, a second

interview had been held by the MD only and Mr. Ruwan was selected and hired.

After three months, the HRM expert got a telephone call from the Internal Auditor.

Mr. Janaka spoke, "Sir, we need your help for an inteliew".

The expert responded, "Janaka, what is the post?"

"Marketing Manag€r".

"Marketing Manager! We interviewed for the post three months ago, if my memory is correct".

"Yes sir. The one selected by MD at th€ final interview had a conflict with two Assistant Sales

Managers and a v€rbal clash with the MD. Last week he resigned".

The exDert reDlied "Oh! I see".

Ouestions:

i. What are the problems does the Company lace in terms ofemployee selection?

ii . What may be other HRM prcblems?

ii i . What is your cours€ ofconsullat ion?

5. For a comprehensive and accumte Performance Evaluation of employees, the organisation

should focus on traits, behaviours and results. Thus, the use of MBO, BASS and BOS

technique are indispensable.

Do you agree or disagree with these statements? Why?

6. "Open Method vis-a-vis Closed Method is better for giving promotions".

"Formal Criteria vis-d-vis Informal Criterion are useful for dete.mining employe"

promotions".

"Hoarding may result injob dissatisfaction. Hence it should be avoided',.

"The employer's right to transfer an €mployee is subject to several limitations',."Neither LIFO nor FIFO are good methods ofdetermining Layoffs,'.

Describe these statements.

7. To ensure equity is an objective of Pay Management. Equity is simpty the degre€ of

reasonableness. There arc four types of equity, i.e. primary equity, intemal equiiy, external

equiry and input equity.

How to make sure that pay is fair jn terms ofthese four types ofequity?

How a Compensation and Benefits Manager of an organization can assure that pay is fair in

terms ofthese four types ofequity?

- 8. A good organization should specifo penalties that may be inflicted for offences and indicate

possible petralties that may be inflicted for non-serious offences and serious oft'ences as well.

This indication is Dot definitive and exhaustive, but only illustrative. Describe.

9. To identiry training needs is the first step ofa Systematic Training process.

Describe the following in relation to thes€ steps:

i. Training for a wrong kaining need

ii. Training owing to wrcng pe.formance diagnosis

i i i . Organization needs analysis

i\ . Person need5 anal)sis

V. NGT,

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10. Read the following vignette and answer questions given at the end of it.

P€rmanency

Th€ Human Resource Manager ofthe Head Ollce ofMah.vali Tea Corporation was waiting for

a production worker, namely Ramalinga, rvho had been working as a casual employee.

Ramalinga stood before him and said with some respect:

"Sir, I have a problem from which I have been suffering lor seven monlhs. I want to tell it to you

and get a reasonable solution from you".

"Yes. Why are you standing? Fi$t please be seated. OK....tell me your problem,'.

"I am a daily paid worker working in the factory. I have be€n working for one and a halfyears as

a casual production worker. On a few occasions, I have worked as Tractor Driver when the

relevant drivers were absent, I can do repairing ofsome machines in the factory and mason work

in addition to driving".

"OK. What do you expect from the management?"

"l expcct from the management to make me a permanent worker".

"Permanent Production Workgr!"

"Yes. An),thing, in the factory, in the field it does not matter_ I want perrnanency'!.

Then, the Human Resource Manager gave him a form to bo filled that Ramalinga did. After hehad left, the Human Resource Manager gave a call to the production Manager who said the

following: "Of course he is a very good worker who can do many things. On a few occasions

when a tractor driver was absent he had driven it voluntarily. For that, we have paid extra money.

The relevant supervisor has not entrusted him with any special work and has offered usual work

with the other workers in the factory. Also, he did not report tor work for nearly one month dueto an injury. I hav€ no shortage of productjon workers. I am on my opinion that he should be

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transfered to the other factory in the same capacity,..

Th€ lluman Resource Manager was a newly appointed one for the post that had been created one

monln ago.

Ouestions:

i. What problems do you rhink that this corporation is facing or will tace, from the

viewpoint of industrial relations?

ii. What are youI suggestions as short and long-term solutions?

Sou.ce: Opatha, (2002'?)