Past Papers - Selected Student Answers

December 2007
Essay Questions

Essay 1
As part of your new job in the HR Department of your organisation you have been given the task of
managing the latest intake of new graduates into the company for the first two weeks prior to their
appointment to their full time posts. The organisation is obviously happy with the technical qualifica-
tions of these new staff but you have been tasked to ensure that they fit in with the way things are
done in your organisation. From your understanding of OB, what are the things that the company
should ensure happen with these new employees in this two-week period?
(60 marks)

Essay Solution 1
As part of your new job in the HR Department of your organisation you have been given the task
of managing the latest intake of new graduates into the company for the first two weeks prior to
their appointment to their full time posts. The organisation is obviously happy with the technical
qualifications of these new staff but you have been tasked to ensure that they fit in with the way
things are done in your organisation. From your understanding of OB, what are the things that
the company should ensure happen with these new employees in this two-week period?
Prior to assigning the new graduates, as employees of the organisation, to their posts the two weeks of
time should be used to give them information and transparency of the organisational culture in which
they have to fit. Because they are just entering work life there are a number of other issues to be consid-
ered and things to be explained like job expectations, reward systems and the structure and processes of
the organisation. Explaining how things are done in the organisation is actually an image of the organisa-
tional culture.
Care should be taken to ensure that the VISION, MISSION and STRATEGY of the company is
presented to them by a high ranking executive, who acts like a role model and is living up to the proposed
values and standards of the organisation. Doing this in an enthusiastic way and implicating the principles
of HOME (History, Oneness, Membership, Exchange) would certainly direct expectations and motiva-
tion towards achieving the organisation’s goals.
Organisational culture is defined as the set of values and beliefs and when exhibited by all employees
makes a strong, hopefully, adaptable culture as a basis for competitive advantage.
In bigger organisations there can be sub-cultures or mixed cultures. In the company I work for, the
process of fitting new employees into the organisational culture starts with the selection of people. The
recruitment system is designed to attract people with a history of success and motivation, as well as social
engagement. Giving realistic job previews and information about values and standards even before
signing a contract is a way to clarify expectations in new employees.
My Group has given itself and to all companies within it a set of values called SPIRIT in which the main
and most important expectations in the organisation are articulated. History of the company, RESPECT,
INNOVATION, TRUST, SOCIALISING are all anchored within.
An expression of an organisationally strong and adaptable culture is also characterised through the actual
employment relations.

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 Past Papers - Selected Student Answers / December 2007

When new colleagues buy in the beliefs and values of the organisation, they will support the strategic
goals and a good basis is made for job satisfaction and organisational commitment to be achieved on an
individual level.
The two weeks at our disposal, I would suggest be used to explain what exactly the set goals of the
organisation and sub-unit are and how we expect them to be achieved.
Bringing in a number of people from different levels and jobs to tell a little bit of ‘history’, success – story
and explain how they manage their job and experience. QWL would give a good insight for the ‘fresh-
lings’ (how we call them). Explaining appraisal systems, reward systems and organisational structure and
processes is very important on the theoretical level but also by giving examples of how they would work
and condition behaviour of the new employees in every day work.
If the group of new employees would be designated to stay together in their assigned positions, the
preparation for group or team building would be appropriate thus maybe starting the process of
FORMING, STORMING, NORMING AND PERFORMING (we are not thinking of the
ADJOURNING OR MOURNING phase yet).
Assessing their profiles or preferences by the BELBIN questionnaire could prepare or improve the next
stage for them to fit in the sub-unit or team they will be assigned to. To fit in the roles of PLANT,
SHAPER, COORDINATOR, MONITOR–EVALUATOR, IMPLEMENTER, SPECIALIST,
TEAMWORKER or COMPLETER–FINISHER, we must know more about the new graduates in order
to fit them in.
By building a MENTOR–PROTEGEE relationship for every new employee and giving them a senior
seasoned worker/manager to the side, we can lay the basis of good interpersonal relationships and direct
them in the desired direction. The result of two weeks of introduction to the organisation should result in
knowledge about the organisation itself, values and beliefs as part of the organisational culture. They
should get a clear line of sight of how their know-how and ability expressed through their performance
can contribute to achieve organisational goals. This way we can have motivated technically skilled people
acting on behalf of the organisation right from the beginning, even if they still have to acquire more skills
and focus on internal and external service quality to deliver up to their, and to the organisation’s expecta-
tions.

Essay 2
Your organisation has identified, through exit interviews, that the major reason for people leaving
the company is dissatisfaction with the current reward policy that in essence pays individuals more
the longer they have been employed. In addition, the latest employee satisfaction survey of people
currently employed also identifies reward as being the area of most concern. From your knowledge
of OB, what are the key changes that you could consider making to create a more effective reward
strategy?
(60 marks)

Essay Solution 2
Your organisation has identified, through exit interviews, that the major reason for people
leaving the company is dissatisfaction with the current reward policy that in essence pays
individuals more the longer they have been employed. In addition, the latest employee satisfac-
tion survey of people currently employed also identifies reward as being the area of most
concern. From your knowledge of OB, what are the key changes that you could consider making
to create a more effective reward strategy?
The main issue identified in this case and the reason why people leave the organisation is dissatisfaction
with the reward system which is based, in this case, on seniority.
Strong performers within the company would lose their organisational commitment; performance would
drop as well as job satisfaction, if ever this was present.

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High turnover would result in overall drop of organisation’s performance, increased costs for recruiting
and training new staff. It is obvious that potential employees would not be attracted by the reward and
payment system which currently is in place within this organisation.
It seems to be a very traditional style company with strong hierarchy and low delegation of authority and
I doubt that the pay or reward system is their only problem. From my professional career I know of two
examples of such organisations with ‘old fashioned’ and very mechanistic structures, where commanding
was routine and creativity suppressed.
I saw a lot of ‘social loafing’ in this kind of environment because a pay system like the one described is
actually calling for such behaviour, where performance of sub-units are below standard (compared in the
industry or with others). It is truly a ‘breeding’ place for ‘slackers’ and social loafing because the sense of
equity is driving people to reduce effort and performance.
In this way high performers cannot be retained and a major change must occur to bring the organisation
to a situation to be competitive. Rather than paying by seniority, the organisation should implement an
effective appraisal system and link pay and reward to performance. First and more important thing is to
get the senior management to understand and support this plan. Changing the organisation in other
terms, by introducing self directed team work and group reward systems overlaid on the individual reward
system, would increase the chance to move the organisation to a more promising structure and design
when it comes to performance linked success on the market. This is important for a product-driven or
service-driven company where an ever more organic structure should be pushed for.
In this case implementing graphic scale rating which is the most popular appraisal system, or even BARS
designed with participation of the workforce, would ensure that the problem of people leaving because of
felt-inequity or pay would stop. Implementing Management by Objectives (MBO) as an applied goal
motivation theory would be a bigger step of change.
If the organisation is encountering external pressure in terms of strong competition, cost and price
pressure, critical customers, repeat buyers, declining industry, then the strategic answer to that should be
improving service and lowering cost of raising productivity and overall organisational effectiveness.
A gainsharing plan like the SCANLON Plan, or in this case even better, a Rucker plan can be implement-
ed. It gives a greater line-of-sight effect when implemented in a participative mode. The value added by
employees and improved performance can be clearly measured and rewarded by bonuses consisting of up
to 75% of the gained and increased value and productivity in the form of annual payments or as an
incentive in this case in shorter periods.
In my view these solutions to the problem and their implementation must be considered as a major
change and a proper plan must be developed to manage this planned change. As mentioned before, all
levels of management must understand the need for it and buy in/support the whole process of change.
As a high level of dissatisfaction is present, conditions for broad support from the work force, if in-
formed well and even involvement is likely to be in place.
The change process itself consists of 3 distinctive phases – UNFREEZE, CHANGE AND REFREEZE.
This model was further developed by Daily and the graph below is depicting the different stages of
change. Maybe a change agent from a consultant firm is brought in to help construct the plan and
implement the change. A steering committee with participation of Executive Manager and the Head of
HR should be involved and drive the change actively.
Changing such a pay system which is highly impacting all employees would in itself request the participa-
tion of focus groups with people from different parts of the organisation which could act as change
agents themselves in later stages starting from carry-over phase.

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 Past Papers - Selected Student Answers / December 2007

Recognise the Unfreeze

need for change

Diagnosis

Resistance Change

Selection of method
Carry-over

Evaluation Refreeze

Institutionalisation
Diffusion
Taking care that if resistance at different levels is encountered and careful planning is done – all people
involved should be trained in the new system.
Very important is also evaluation of the implemented change – to observe and measure how people’s
behaviour and attitudes are affected and changed and if the system is successful at individual, group and
organisational level.
Doing all these things right would result in removing the problem of dissatisfaction with the pay system
and lay the basis for an environment of fair and equitable reward system linked to performance which
would greatly contribute to the overall organisational effectiveness and competitive advantage.
With people satisfied with their job and highly committed to the organisation and its goals, the organisa-
tion is likely to become successful again.

Essay 3
One of your most effective team members has been off sick for the last six weeks with a stress-
related illness and is due to return to work next week. You have been invited to a meeting with
your Human Resources Director to discuss how the organisation should ensure that the individual is
reintegrated into the organisation. As part of your preparation for that meeting you have reviewed
your OB text. What are the key things you would want to discuss with the HR Director?
(60 marks)

Essay Solution 3
One of your most effective team members has been off sick for the last six weeks with a stress-
related illness and is due to return to work next week. You have been invited to a meeting with
your Human Resources Director to discuss how the organisation should ensure that the individ-
ual is reintegrated into the organisation. As part of your preparation for that meeting you have
reviewed your OB text. What are the key things you would want to discuss with the HR Director?
As the issue in the outlined case is stress related, I would first describe work related stress and then give
recommendations of how to plan and manage the return and reintegration of the team member after the
long period of illness and absence.
It should also be analysed how exactly the situation led to the stress related problems and if symptoms
were not recognised in time to prevent this situation or help the person in trouble.
In every organisation we encounter stress situations related to work and the environment but because of
legal, moral reasons as well as duty of care, we should learn how to manage stress as individuals, as
managers and as organisations.

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 Past Papers - Selected Student Answers / December 2007

Stress is described best as the physical and psychological reaction and answer of our body to stressors or
stressful situations which may be real or even imagined. The General Adaptation Syndrome describes
how every living being reacts to stress situations.

ALARM

RESISTANCE

EXHAUSTION
Alarm or ‘flight or fight reaction’ together with the physical reaction of the body is the first stage.
Adapting or trying to adapt the body would try to resist and use, even abuse substances to cope with the
situation.
In the exhaustion phase which is likely to follow, the body wears down and cannot resist stress any more.
This may result in job burnout which is a longer period of psychological withdrawal from work and can
be accompanied by severe illness. The stress model gives a good overview of causes of stress and of
consequences of stress.

Causes of Stress Consequences of Stress

Individual Physiological symptoms

Environmental factors differences
Economic uncertainty Headaches
Perception High blood pressure
Political uncertainty Job experience
Technological uncertainty Heart disease
Locus of control
Type A behaviour

Organisational factors
Task demands Psychological symptoms
Role demands Sleep disturbances
Experienced Depression, anxiety
Interpersonal demands Hindrance
Organisational structure Declines in job satisfaction
Stress
Organisational leadership
Organisation's life-cycle stage
Behavioural symptoms
Productivity level
Attendance pattern
Individual factors Quitting the job
Family problems Accidents
Financial problems Substance abuse

Environmental factors can be economical political or technological. In an example I experienced in

Romania, all three factors induced a great amount of uncertainty and personal stress deep into people’s
lives.
Organisational factors like organisation, supervision/leadership, role, task ambiguity or uncertainty play
an important role and should be analysed thoroughly in the present case. Job design could be a major
cause and must be looked at closer.
In talking to peers and even family, as well as to the employee returning to work, we can clarify if
personal factors played a role in this case. It could be family related problems or financial problems.
Consequences of stress can be high blood pressure, headache, and sickness on the physiological side.
Insomnia, anxiety and irritability can be psychological consequences.

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 Past Papers - Selected Student Answers / December 2007

Behavioural change (in negative forms) could be absenteeism, low attentiveness at work, accidents, abuse
of alcohol and drugs.
As a manager of around 100 people, once I was confronted with a situation of an employee who threat-
ened and wrote to his wife that he would kill himself. I was informed late one night by her and I induced
a search involving police and even a small team from my organisation. After we found him involved in a
car crash, I had to manage the situation, report the case, support the family and counsel colleagues. We
had to find out what the causes were and what could be done to help.
In the case described above, we also must take great care in finding out which were the main factors of
stress and try to change the work situation of the returning colleague. On the individual level, we could
suggest that they try to lower the level of stress by relaxing, exercising, opening up and talking to family,
friends or professional help institutions.
As a manager of the organisation and talking to HR, we should suggest that the (hopefully) existing EAP
for stress coping and the supportive policies at organisational level could help. Other means would be
providing gym, healthy diet or external/internal group activities which could help to cope with stress. It
must be taken care that laws (discrimination) are respected and a culture of trust with no chance of people
being bullied is implemented.
A return to work programme for the person returning to work with flexi-time and slowly increasing
working hours should build the frame for around 6 – 8 weeks depending on her state and situation.
Giving information and support is the prime duty of the supervisor. Feedback and informal support and
talk by him and his peers should be the norm. Very important measures which should also be taken are:
 Analysing the job design, role workload.
 Checking on clarity of task, job, role, goals, processes and policies of the organisation which are
directly affecting her.
 If problems with either the emotional factors or even the reward system is generating stress and
therefore threatening the organisation by process losses and even performance decline then these
problems must be addressed and removed in order to protect people and not endanger the organisa-
tion.

Stress can be dealt with if recognised by peers and managers. Therefore the company policy should also
give information or even training to prevent, recognise and deal with stress in adequate ways. In this way
we create a healthy environment and contribute to the organisation’s success.

Organisational Behaviour Edinburgh Business School 6