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Exam (elaborations)

Exam (elaborations) HRM3706 (HRM3706)

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Exam (elaborations) HRM3706 (HRM3706) EXAM MEMO MAYJUNE 2022










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September 5, 2022
Number of pages
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Written in
2022/2023
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1.1 Identify (1 mark) and explain (1 mark) one specific purpose of the performance management
process that manifests at Maboloka bank (2 marks). Provide two examples from the scenario
to motivate your choice of this purpose (2 marks). (4)

Administrative PURPOSE

Information obtained during the performance management_process can be used to make important
administrative decisions regarding employees, such as salary increases, promotions, demotions,
performance bonuses.

Case Study

“Those who exceed the set target of R25 000 quarterly, receive 6% of excess sales”

“According to the performance management system of the bank, individuals who do not meet their
performance targets are dismissed with immediate effect”



1.2 Which TWO stages of the performance management process are present in the case study?
Explain your answer with reference to the scenario. (6)

Performance Feedback: This involves the provision of continuous and regular feedback on the
performance of the employees.

Case study: Ms Mohlala was also made aware that performance is reviewed every quarter, after
which everyone receives immediate feedback.

Performance Appraisal: Measuring of employee’s performance takes place during this stage. This
results in ratings being awarded

Case study: In her first performance appraisal, Ms Mohlala was rated very low as she did not achieve
the set target.



1.3 Identity (1 mark) and describe (1 mark) one stage of the performance management process
should Ms Mohlala suggest Maboloka bank's management implement to remedy the
performance problem as guided by the SABPP? Provide reasons for your answer with
reference to the scenario. (6)

Performance contract

This is the first stage of the performance management process

This is when employee meet with their supervisor or team leader to agree on goals and objectives
for the upcoming performance cycle. Agreement must be unanimous, and a performance contract
be put in place.

This stage is not present in the case study because an employee is complaining that, goals set were
too high. This implies that no agreement was mage with regards to performance goals

, Case study: “From her experience with the sales job, she feels that the target is set way too high,
which is unfair, especially considering the current economic conditions in the country. She tries to
check with her colleagues if they ever managed to exceed or achieve this target. She is shocked to
hear that none of them ever received any incentive”



1.4 Identify TWO good (2 marks) and TWO negative aspects (2 marks) of the performance
management system at Maboloka bank. Justify your answer with reference to the scenario. (4)

Two good

Continuous feedback : “Ms Mohlala was also made aware that performance is reviewed every
quarter, after which everyone receives immediate feedback”

Recognising the best performers: “Those who exceed the set target of R25 000 quarterly, receive 6%
of excess sales”

Two bad

Lack of development opportunity: “Those who exceed the set target of R25 000 quarterly, receive
6% of excess sales”

Unrealistic goals: “She signed an employment contract stating that she is expected to sell life
insurance to the value of R25 000 quarterly”

1.5 Ms. Mohlala wants to appeal her performance appraisal outcomes. Evaluate the issue upon
which her appeal may be based on (1 mark). Justify the suitability of your answer based on the
scenario (2 marks). (3)

The appeal will be based on the Judgemental issues. These centre on the validity of the performance
review. The expected goals are unrealistic. This can be supported by the fact that; no employee ever
reached the set goals in the company.

1.6 Refer to the element of 'expectancy' in the expectancy theory and predict Ms Mohlala's
performance in the next performance cycle if the performance target is not corrected. (2)

The theory acknowledges that an employee puts more effort if he or she has a belief that, an
improved effort will result in rewards in return. In this case, the employee knows that, the goals are
practically unachievable. Therefore, he or she is not motivated to exert more effort.

2.1 Briefly explain how a performance management system is linked to talent management,
recruitment and selection within the organisation. Provide a suitable example. (4)

It is important for our organisation to decide which types of skills need to be acquired externally and
what types of skills can be found within the organisation. Also, it is important to nature , develop
attract and retain talent in our organisation.

To support these values. our organisation utilises effective performance management systems to
make such a decision. The performance management system at our workplace allows the
organisation to have the knowledge of the current and future talent in the organisation and the
implement recruitment and selection process.

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