EXAMINATION GUIDE HUMAN RESOURCE MANAGEMENT MBA 1. Structure of the Exami atio !

a"er The #i a$ a % Su""$eme tar& Exami atio "a"er' are ma%e u" of ( Sectio ' SECTION A ma)e' u" *+ , of the "a"er Thi' 'ectio i' -a'e% o a ca'e 'tu%& a % co 'i't' of THREE .ue'tio '. Stu%e t' are re.uire% to a '/er A00 three .ue'tio ' a % a""$& their ) o/$e%1e of theor& to the ca'e. SECTION B ma)e' u" 2+ , of the "a"er a % a$'o co 'i't' of THREE .ue'tio ' of /hich 'tu%e t' are re.uire% to a '/er a & T3O .ue'tio ' O ce a1ai 'tu%e t' are re.uire% to a""$& theor&. (. A '/eri 1 the .ue'tio ' Stu%e t' mu't -ear the fo$$o/i 1 i mi % /he re'"o %i 1 to HRM re.uireme t' at MBA $e4e$5 Rea% the Ca'e 'tu%& at $ea't 6 time' -efore attem"ti 1 a '/er'. U'e a hi1h$i1hter to em"ha'i7e im"orta t8'a$ie t a'"ect' of the ca'e8'ce ario Do ot mere$& re"ro%uce i formatio from Ca'e 'tu%ie'9 'ce ario' etc. :ou mu't 'u""ort9 ;u'tif& a % moti4ate u'i 1 a""ro"riate theor&. Do ot "ro4i%e o"i io ' a % ar1ume t' /ithout ;u'tificatio E''a& t&"e .ue'tio ' %o ot re.uire a' much 'u""ort a' Ca'e 'tu%& .ue'tio ' -ut mu't 'ati'f& the re.uireme t' of the .ue'tio Refere ci 1 i' ot re.uire%

CASE STUD: < DEMOCRAC: IN ACTION AT SEMCO Ricardo Semler was 21years old (and one of the youngest graduates from the Harvard Business School MBA programme) when he too his father!s place as head of the family "usiness# Semco# "ased in Sao $aolo# Bra%il# in 1&'() His father Antonio# had founded Semco in 1&*( as a machine shop+ the company went on to "ecome a manufacturer of marine pumps for the ship"uilding industry# with ,(million a year in revenues when Ricardo Semler too over) -oday# Semco!s revenues are over ,2.. million a year from a diverse set of "usinesses ranging from industrial machinery# cooling towers# and facility management to environmental consulting and /e"0"ased HRM outsourcing and inventory management services) Semco prides itself on "eing a premier provider of goods and services in its mar ets# provides goods and services only in mar ets that are comple1 and thus difficult for competitors to enter# and therefore has loyal customers who are willing to pay higher prices it charges) 2n addition to growing over 3. percent a year and generating its own cash to support this growth (Semco is a private company)# Semco is very profita"le) Semler is the first to admit that Semco!s phenomenal success is due to its human resources 4 its employees) 2n fact# Semler so firmly "elieves in Semco!s employees that he and other top managers at Semco are reluctant to tell employees what to do) Semco has no rules# regulations# or organisational charts+ hierarchy is eschewed+ and wor place democracy rules the day) 5mployees have levels of freedom and autonomy unheard of in other companies# and fle1i"ility and trust are "uilt into every aspect of human resource management and Semco) Semler "elieves in employees! willingness and desire to "e productive and efficient# ma e significant contri"utions to Semco# and ensure its continued profita"ility (which also "enefits the employees in terms of their own compensation)) -hus employees have ma1imum freedom and determine issues ranging from where and when they wor to how they are paid) -his approach flies in the face of contemporary management thought# yet Semco!s ongoing success has made it a living case study in the "usiness community) Human resource practices at Semco revolve around ma1imi%ing the contri"utions employees ma e to the company# and this "egins "y hiring individuals who want# can# and will contri"ute) Semco strives to ensure that all selection decisions are made "ased on relevant and complete information) 6o" candidates are first interviewed "y the company as a group+ the candidates meet many employees+ receive a tour of the company# and interact with potential cowor ers) -his gives Semco a chance to si%e up candidates in ways more li ely to reveal their true natures# and it gives the candidates a chance to learn a"out Semco) 7nce finalists are identified from the pool# multiple Semco employees interview them five or si1 more times to choose the "est person(s) to "e hired) -he result is that Semco and new hires ma e very informed decisions and are mutually committed to ma ing the relation a success) 7nce hired# entry0level employees particularly in the 8ost in Space programme# in which they rotate through different positions and units of their own choosing for a"out a year) 2n this way# the new hires learn a"out their options and can decide where their interests lie# and the units they wor in learn a"out the new hires) At the end of the year# the new employees may "e offered a 9o" in one of the units in which they wor ed# or they may see a position elsewhere in Semco) Seasoned Semco employees are also encouraged to rotate positions and wor in different parts of the

company to eep themselves fresh# energi%ed# and motivated and to give them the opportunity to contri"ute in new ways as their interests change) 5mployees at Semco are free to choose when and where they wor ) Semler reali%es that employees have lives outside the wor place and gives them the freedom to manage their wor and free time+ he does not e1pect them to wor e1cessive hours either) /hat is e1pected of all employees and all units at Semco is performance) $erformance is appraised at Semco in terms of results) 5very si1 months# all "usiness units are re:uired to demonstrate that their continued operation is producing value for Semco and its customers) 2f a unit cannot do so# the unit will "e dis"anded) Similarly# all employees and managers must demonstrate that they are ma ing valua"le contri"utions and deserve to "e ;rehired<) =or e1ample# each manager!s performance is anonymously appraised "y all of the employees who report to him or her# and then appraisals are made pu"licly availa"le in Semco) As Semler puts it# /e treat our employees li e adults) 2f they screw up# they ta e the "lame) And since they have to "e rehired every si1 months# they now their 9o"s are always at ris ) >ltimately# all we care a"out is performance) An employee who spends two days a wee at the "each "ut still produces real value for customers and cowor ers is a "etter employee than one who wor s ten0hour days "ut creates little value) 5mployees also can choose how they are paid from a com"ination of 11 different compensation options# ranging from fi1ed salaries# "onuses# and profit sharing to royalties on sales# royalties on profits# and meeting annual self0set goals) =le1i"ility in compensation promotes ris ta ing and innovation# according to Semler# and ma1imi%es returns to employees in the form of their pay and to the company in terms of revenues and profita"ility) =le1i"ility# autonomy# the a"ility to change 9o"s often# and control of wor ing hours and even compensation are some of the ways "y which Semler strives to ensure that employees are involved in their wor "ecause they want to "e+ turnover at Semco is less than 1 percent annually) And with human resource practices geared towards ma1imi%ing contri"utions and performance# Semco is well poised to continue to provide value to its customers) Source: (George and Jones; 2006:527) =ue'tio 1 Semco a competitive advantage >(?@

?ritically analyse the Selection process used at Semco and discuss the contri"ution that this type of selection can provide in giving

=ue'tio (

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Semco ma es use of performance appraisals for management development using >pward =eed"ac where ;each manager!s performance is anonymously appraised "y all employees who report to him or her# and then appraisals are made pu"licly availa"le in Semco)< @iscuss the significance of this type of appraisal system "y also loo ing at the 3A.0@egree feed"ac system)

=ue'tio 6 compensation) =ue'tio 2 strategy of the "usiness)

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@iscuss the compensation options availa"le at Semco to their employees in relation to the factors that influence the determination of

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-here is a perception that HR people do not want to thin strategically and are reluctant to em"race the HR function into the overall @iscuss the importance of this perception fading and e1amine the significance of aligning an organisation!s HR strategy with its overall "usiness strategy)

ESSA: =UESTIONS

=ue'tio 1 that sustaina"ility challenges have for an organisation!s HRM practices) =ue'tio ( -o "e perceived as one of the "est employers in the mar etplace# organisations must strive towards o"taining and retaining a wor force that possesses a uni:ue nowledge "ase)

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Sustaina"ility refers to the a"ility of a company to survive and succeed in a dynamic competitive environment) 5valuate the implications

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@iscuss the importance of o"taining the right people for an organisation and how this o"9ective should form the "asis of a recruitment policy) =ue'tio 6 -he success of any organisation ultimately depends on having the right people in the right 9o"s at the right time) 5valuate the importance of Human Resource $lanning and discuss why HR $lanning must "e seen as a process following form the strategic plan of the organisation >(?@