HRM2604
EXAM PACK
,HRM2604 MAY/JUNE PAPER 2 2017
1. DISCUSS ANY 6 CONTRIBUTIONS THAT PM SYSTEMS CAN OFFER EMPLOYEES AND
ORGANISATIONS.(12)
Perfomance management(PM) has gained popularity in recent years and is considered essential for
overall business success.The HR component of companies must be effectively utilized and managed
inorder to attain a competitive advantage.There are a number of ways that PM can add value both to
the individual employee and to the organization as a whole.PM systems also serve a number of
purposes such as assisting organisations with accurate workforce planning initiatives.The PM process
consists of a number of stages with each stage involving different activities and tasks.
Motivation to perform is increased.
Receiving feedback about one’s performance increases the motivation for future
performance.Knowledge about how one is doing and recognition about one’s past successes provide the
fuel for future accomplishments.
-Employees become more competent:An obvious contribution is that employees become more
successful by establishing developmental plans.
-Self –esteem is increased:Receiving feedback about one’s performance fulfills a basic human need to
be recognized and valued at work.This in turn,is likely to increase employees’ self-esteem.
-Self-insight and development are enhanced:The participants in the system are likely to develop a
better understanding of themselves and of the kind of development activities that are of value to them
as they progress through the organization.Participants in the system also gain a better understanding of
their particular strengths and weaknesses that can help them better define future career paths.
-Organisational goals are made clear.
The goals of the unit and the organization are made clear and the employee understands the link
between what she does and organizational success.This is a contribution to the communication of what
the unit and the organization are all about and how the organizational goals cascade down to the unit
and the individual employee.PM systems can help improve employee acceptance of these wider
goals(i.e organizational and unit levels).
-The definitions of job and criteria are clarified.
The job of the person being appraised may be clarified and defined more clearly.In other words
employees gain a better understanding of the behaviours and results required of their specific
position.Employees also gain a better understanding of what it takes to be a successful performer.(i.e
what are the specific criteria that define job success).
1.2 ASSISTING ORGANISATIONS WITH ACCURATE WORKFORCE PLANNING INITIATIVES.This is an
organization maintenance purpose because PM systems provide useful information for workforce
,planning and for evaluating the effectiveness of other HR systems(eg comparing performance before
and after an expensive training program to determine whether training made a difference).
1.3 Results
Results refer to what needs to be done or the outcomes an employee must produce. A consideration of
results needs to include the key accountabilities,or broad areas of a job for which the employee is
responsible for producing results.This information is typically obtained from the job description.A
discussion of results also includes specific objectives that the employee will achieve as part of each
accountability.Objectives are statements of important measuarable outcomes.Discussing results also
means discussing performance standards.A performance standard is a yardstick used to to evaluate
how well employees have achieved each objective.Perfomance standards provide information about
acceptable and unacceptable performance(eg quality,quantity,cost and time).
Behaviours
Behaviours/how a job is done constitute an important component of the planning phase. A
consideration of behaviours includes discussing competencies which are measurabl;e clusters of KSAs
that are critical in determining how results will be achieved.Examples of competencies are customer
service,written or oral communication,creative thinking and dependability.
Development plan
An important step before the review cycle begins is for the supervisor and employee to agree on a
development plan. At a minimum,this plan should include identifying areas that need improvement and
setting goals to be achieved in each area.Development plans usually include both results and
behaviours.In short ,performance planning includes the consideration of results and behaviours and the
development plan.A discussion of results needs to include key accountabilities ie broad areas for which
an employee is responsible,specific objectives for each key accountability(ie goals to be reached) and
performance standards(ie what constitutes acceptabl;e and unacceptable levels of performance).A
discussion of behaviours needs to include competencies ie (clusters of KSAs).Finally the development
plan includes a description of areas that need improving and goals to be achieved in each area.
2. Ronald Frump has just been appointed as CEO of the largest and most influential bank in Southern
Africa.He has decided to restructure the company and many of its processes.His first move is to draw up
a strategic plan for the bank.During this process he undertakes to look at different internal and external
factors that could have an impact on the bank in the future.He understands that different situations may
occur based on various combinations of internal strengths and weaknesse with external opportunities
and threats.Ronald is clearly highly motivated to prove himself as worthy since many stakeholders have
questioned his competence and suitability of the position.Their concern is not unwarranted.Ronald does
not have a qualification behind his name,which means that he does not know many of the facts
regarding the banking sector.His success has come largely from practical experience in the industry and
technical expertise.Ronald has chosen to use the results approach to measure the performance.
, 2.1 Strategic planning is a process that involves describing the organisation’s destination,assessing
barriers that stand in the way of that destinationand selecting approaches for moving forward.The main
goal of strategic planning is to allocate resources in a way that provides organisations with a competitive
advantage.
2.2 The process that Ronald is undertaking in the scenario is environmental analysis.An environmental
analysis identifies external and internal parameters with the purpose of understanding broad issues
related to the industry where the organization operates so that decisions can be made against the
backdrop of a broader context.
2.3An examination of the internal environment includes a consideration of strengths and
weaknesses.Strengths are internal characteristics that the organization can use to its
advantage.Examples include organizational structure,organisatioanl culture,politics,processes and size.
Weaknesses are internal characteristics that are likely to hinder the success of the organization.These
could include an obsolete organizational structure that does not allow for effective organisatin across
units and creates the misalignment of organizational –unit and individual level goals.
Opportunity+strength=leverage
A.The best combination of external and internal factors occurs when there is an opportunity in the
environment and a matching strength within the organization to take advantage of that opportunity.
B.Opportunity +weakness=constraint
In a constraint situation,the external opportunity is present,however,the internal situation is not
conducive to taking advantage of the external opportunity.
C.Threat +Strength=Vulnerability
In this situation,there is an external threat, but this threat can be contained because of the presence of
internal strengths.
D.Threat+weakness=problem
In the worst scenario,there is an external threat and an accompanying internal weakness.
2.4 Ronald does not have a qualification in his name meaning that he lacks declarative
knowledge.Declarative knowledge is information about facts and things including information regarding
a given task’s requirements,labels,principles and goals.Ronald does not know many facts about the
banking sector.
Ronald has procedural knowledge since he has practical experience and technical expertise in the
banking industry.Procedural knowledge is a combination of knowing what to do and how to do it and
includes cognitive,physical,perceptual,motor and interpersonal skills.
EXAM PACK
,HRM2604 MAY/JUNE PAPER 2 2017
1. DISCUSS ANY 6 CONTRIBUTIONS THAT PM SYSTEMS CAN OFFER EMPLOYEES AND
ORGANISATIONS.(12)
Perfomance management(PM) has gained popularity in recent years and is considered essential for
overall business success.The HR component of companies must be effectively utilized and managed
inorder to attain a competitive advantage.There are a number of ways that PM can add value both to
the individual employee and to the organization as a whole.PM systems also serve a number of
purposes such as assisting organisations with accurate workforce planning initiatives.The PM process
consists of a number of stages with each stage involving different activities and tasks.
Motivation to perform is increased.
Receiving feedback about one’s performance increases the motivation for future
performance.Knowledge about how one is doing and recognition about one’s past successes provide the
fuel for future accomplishments.
-Employees become more competent:An obvious contribution is that employees become more
successful by establishing developmental plans.
-Self –esteem is increased:Receiving feedback about one’s performance fulfills a basic human need to
be recognized and valued at work.This in turn,is likely to increase employees’ self-esteem.
-Self-insight and development are enhanced:The participants in the system are likely to develop a
better understanding of themselves and of the kind of development activities that are of value to them
as they progress through the organization.Participants in the system also gain a better understanding of
their particular strengths and weaknesses that can help them better define future career paths.
-Organisational goals are made clear.
The goals of the unit and the organization are made clear and the employee understands the link
between what she does and organizational success.This is a contribution to the communication of what
the unit and the organization are all about and how the organizational goals cascade down to the unit
and the individual employee.PM systems can help improve employee acceptance of these wider
goals(i.e organizational and unit levels).
-The definitions of job and criteria are clarified.
The job of the person being appraised may be clarified and defined more clearly.In other words
employees gain a better understanding of the behaviours and results required of their specific
position.Employees also gain a better understanding of what it takes to be a successful performer.(i.e
what are the specific criteria that define job success).
1.2 ASSISTING ORGANISATIONS WITH ACCURATE WORKFORCE PLANNING INITIATIVES.This is an
organization maintenance purpose because PM systems provide useful information for workforce
,planning and for evaluating the effectiveness of other HR systems(eg comparing performance before
and after an expensive training program to determine whether training made a difference).
1.3 Results
Results refer to what needs to be done or the outcomes an employee must produce. A consideration of
results needs to include the key accountabilities,or broad areas of a job for which the employee is
responsible for producing results.This information is typically obtained from the job description.A
discussion of results also includes specific objectives that the employee will achieve as part of each
accountability.Objectives are statements of important measuarable outcomes.Discussing results also
means discussing performance standards.A performance standard is a yardstick used to to evaluate
how well employees have achieved each objective.Perfomance standards provide information about
acceptable and unacceptable performance(eg quality,quantity,cost and time).
Behaviours
Behaviours/how a job is done constitute an important component of the planning phase. A
consideration of behaviours includes discussing competencies which are measurabl;e clusters of KSAs
that are critical in determining how results will be achieved.Examples of competencies are customer
service,written or oral communication,creative thinking and dependability.
Development plan
An important step before the review cycle begins is for the supervisor and employee to agree on a
development plan. At a minimum,this plan should include identifying areas that need improvement and
setting goals to be achieved in each area.Development plans usually include both results and
behaviours.In short ,performance planning includes the consideration of results and behaviours and the
development plan.A discussion of results needs to include key accountabilities ie broad areas for which
an employee is responsible,specific objectives for each key accountability(ie goals to be reached) and
performance standards(ie what constitutes acceptabl;e and unacceptable levels of performance).A
discussion of behaviours needs to include competencies ie (clusters of KSAs).Finally the development
plan includes a description of areas that need improving and goals to be achieved in each area.
2. Ronald Frump has just been appointed as CEO of the largest and most influential bank in Southern
Africa.He has decided to restructure the company and many of its processes.His first move is to draw up
a strategic plan for the bank.During this process he undertakes to look at different internal and external
factors that could have an impact on the bank in the future.He understands that different situations may
occur based on various combinations of internal strengths and weaknesse with external opportunities
and threats.Ronald is clearly highly motivated to prove himself as worthy since many stakeholders have
questioned his competence and suitability of the position.Their concern is not unwarranted.Ronald does
not have a qualification behind his name,which means that he does not know many of the facts
regarding the banking sector.His success has come largely from practical experience in the industry and
technical expertise.Ronald has chosen to use the results approach to measure the performance.
, 2.1 Strategic planning is a process that involves describing the organisation’s destination,assessing
barriers that stand in the way of that destinationand selecting approaches for moving forward.The main
goal of strategic planning is to allocate resources in a way that provides organisations with a competitive
advantage.
2.2 The process that Ronald is undertaking in the scenario is environmental analysis.An environmental
analysis identifies external and internal parameters with the purpose of understanding broad issues
related to the industry where the organization operates so that decisions can be made against the
backdrop of a broader context.
2.3An examination of the internal environment includes a consideration of strengths and
weaknesses.Strengths are internal characteristics that the organization can use to its
advantage.Examples include organizational structure,organisatioanl culture,politics,processes and size.
Weaknesses are internal characteristics that are likely to hinder the success of the organization.These
could include an obsolete organizational structure that does not allow for effective organisatin across
units and creates the misalignment of organizational –unit and individual level goals.
Opportunity+strength=leverage
A.The best combination of external and internal factors occurs when there is an opportunity in the
environment and a matching strength within the organization to take advantage of that opportunity.
B.Opportunity +weakness=constraint
In a constraint situation,the external opportunity is present,however,the internal situation is not
conducive to taking advantage of the external opportunity.
C.Threat +Strength=Vulnerability
In this situation,there is an external threat, but this threat can be contained because of the presence of
internal strengths.
D.Threat+weakness=problem
In the worst scenario,there is an external threat and an accompanying internal weakness.
2.4 Ronald does not have a qualification in his name meaning that he lacks declarative
knowledge.Declarative knowledge is information about facts and things including information regarding
a given task’s requirements,labels,principles and goals.Ronald does not know many facts about the
banking sector.
Ronald has procedural knowledge since he has practical experience and technical expertise in the
banking industry.Procedural knowledge is a combination of knowing what to do and how to do it and
includes cognitive,physical,perceptual,motor and interpersonal skills.
