Past Papers - Examiner's Solutions

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?
(60 marks)
These new employees are joining the existing culture of the organisation and the text suggests that they
are put through a process that familiarises them with that culture. Some of this might already have
happened through the selection process in which prospective candidates might have been given a taste of
the culture they are joining (giving them the chance to opt out if they feel they will not fit in). This would
have been the realistic job preview as described by Pascale in the text.
Some organisations would build on this by putting new entrants through a period of debasement and
indoctrination to create humility in the new employees – this would also open them to the norms
expected by the existing organisational culture. This initial period would also be used to define the
training that new employees would be experiencing in the early part of their career with the organisation.
Part of this process might be giving people experience beyond their initial post to see how different parts
of the organisation operate. Depending on the sector of industry, this might include direct experience of
the production process and/or customer facing activities. Highly challenging project work might also be a
facet of this part of the induction process.
It is also important that the new staff understand how the reward and promotions systems operate within
the organisation. This might well link to the individual motivation of these new employees. From an HR
point of view this might provide an opportunity to individually tailor reward packages to meet the
individual needs of each new employee. It would also be important for people to understand how any
objective setting (and review), alongside performance appraisal, fits with the various reward strategies in
place.
It is also in this initial period that new employees can be introduced to the senior role models in the
organisation that they will be expected to emulate and as part of that process linking them with mentors
who exemplify the expected behaviours. Story telling can be an important part of this process.
The HOME process described in the text would also be a useful way of addressing the cultural issues for
these new members of staff. In particular the History of the company can be communicated through

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telling stories that exemplify the organisational values. In terms of Oneness, it is important to create
shared expectations about the meaning of the core values of the organisation. Membership is about
understanding the reward system and sharing common practices carried out in the organisation. Finally
Exchange allows the subject of training, empowerment and decision-making to be discussed with these
new members of staff. For the initial two week period it would only be possible to start work on these
issues which could then be followed up in their permanent posts with their line managers and in the
teams of which they are members.
This is the point in the employment process that the organisation can start to raise the organisational
commitment of the individuals and their job involvement. To do this at this early stage you have the
opportunity to show that the organisation honestly cares for these new members of staff (so there is
clearly a listening role to find out what motivates them individually). Giving opportunities for individuals
to achieve their personal goals also implies understanding what these goals are – again the organisation
needs to elicit information on these goals. Create the link between the new employees and their supervis-
ing managers so that an understanding can be reached about what behaviours will lead to intrinsic (and
extrinsic) reward. Begin the process of giving the new staff a vision of what the organisational level goals
are and how they will be able to contribute to these through their own work, though this would need to
be followed up in details with their manager.
Linked to the above, it is more important that the organisational determinants of job satisfaction be
communicated to direct entrant graduates who are expensive to recruit and consequently to lose. Thus, in
this early period the new staff can be given an understanding of how supervision, job challenge, job clarity
and incentives are organised in this specific organisation.

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?
(60 marks)
While this organisation appears to concentrate only on one form of extrinsic reward (i.e. rewarding years
in employment), it is important to recognise that reward can be either intrinsic or extrinsic. It has indeed
been proposed that intrinsic rewards are more important, especially in motivational terms, than traditional
extrinsic reward. Intrinsic rewards include increasing levels of participation in decision making, giving
people more responsibility in their jobs, giving people opportunity for personal growth though job and
organisational design, providing people with more interesting work and increasing the variety of work
associated with a particular job.
Extrinsic reward is also seen now as being more complex than just pay. In direct compensation,
pay/salary is a basic building block that can be enhanced through performance bonuses, stock options
and pay for holidays and/or overtime. Indirect compensation can come in the form of job protection

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 Past Papers - Examiner's Solutions / December 2007

programmes and time off with pay (especially for those work groups coping with child or elder care issues
where this sort of reward can be highly regarded). There are finally the non-financial, extrinsic rewards –
sometimes described as the ‘perks’ of a job – including having a choice of work location, the provision of
car parking facilities, and various flexible working options.
The current focus for reward is implicitly individualistic in nature and does not allow for the reward of
team or group effort that is becoming increasingly important to most organisations. Scanlon Plans, group
based reward systems based on sharing cost-savings that have been generated by a work group, are
described as cost saving plans, i.e. costs have to be saved before the saving can be shared with employees.
Gainsharing Plans, like the Rucker Plan, work in such as way as to measure the past output of a group
and reward them for future increased output. These plans are more affected by sales downturns when
they no longer become motivational. Profit sharing plans, where increases in overall profit levels are
implemented for larger employees’ groups where bonuses are linked to profitability. This sharing of profit
can be targeted by linking payments to supervisors’ assessments of contributions by individuals in the
work force. The link between such blanket approaches to reward can be seen as tenuous, especially where
individual targeting is ineffective.
If the organisation is to make a move towards a greater use of intrinsic rewards there may well be cultural
and training issues to be addressed. In encouraging the greater use of intrinsic reward managers are being
asked to change their behaviours and staff need to be aware that this change is being encouraged.
Depending on how big a change of culture this represents for the particular organisation, there may need
to be a planned change programme implemented (following Lewin’s unfreeze, change and refreeze
process or Dailey’s expansion of this process in the text).
Implementing differing extrinsic rewards also has implications for the systems that the organisation has in
place to deliver such rewards. The opportunity is there for the organisation to tailor reward to the
motivational needs of individuals through, for example, a cafeteria benefits type of system. In the past
these were seen as very expensive and difficult to run, but there are now proprietary computer systems
available that assist in managing the inherent complexity; outsourcing options are also available.
Moving towards more team based reward – usually in addition to an individualistic reward system – also
raises system problems that need to be overcome. Team based reward, of course, would be linked to
effective team working being used by the organisation to deliver clear objectives. This may require the
organisation to look at the overall Organisational Design, especially at delegation of authority and span of
control, which in themselves could lead to a delayering of the management structure; job design, to
ensure that individual job designs are such that the creation of teams is effective; empowerment, to
ensure that staff are ready to take on extra responsibility that would go alongside such team based reward,
which would especially apply if the organisation progressed to using self managed teams.

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?
(60 marks)

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 Past Papers - Examiner's Solutions / December 2007

It would be worth reviewing with the HR Director the stressors that the organisation could help the
individual to manage more effectively. Stressors come from three general areas, environmental factors,
organisational factors and individual factors.
The macro-environmental factors (economic, political and technological uncertainties) are difficult for the
organisation and the individual to tackle though there might be some mileage in reviewing the technical
changes associated with the job the individual is employed to do. It may also be possible to address
micro-environmental factors associated with the working environment (where the individual might be
stressed by the area being too stuffy or too airy; too noisy or too quiet, etc).
The organisational factors (task, role and interpersonal demands, alongside organisational structure,
leadership and organisational life-cycle stage) are much more likely to lead to potential solutions. This
involves reviewing the job design (perhaps reducing the load for a period of time) and how much
interpersonal contact the individual has to deliver. In terms of structure it might, for example, be possible
to reduce the number of staff reporting to the individual and, as his boss, there might be a case for me
taking a more caring attitude to managing this individual.
Finally, at the individual level of family and financial problems, it may be possible to offer support
through the organisational Employee Assistance Programme should one exist, and if not through
whatever welfare provision has been put in place.
Regardless of what the HR Director and I think might be possible as solutions for this individual, there is
clearly a need to discuss and agree them with the individual. Most organisations would want this discus-
sion to take place before the individual returns to the workplace, which also allows any necessary briefing
to take place with work colleagues. Briefing colleagues on any changes is particularly important if solu-
tions agreed impact directly upon them. Understanding why changes are being made can manage any felt
inequity that might be generated.
The organisation may also want to support the individual to address stressors by changing their exercise
regime, by facilitating a relaxation programme, by organising dietary assistance and by helping the
individual to open up either with work place colleagues and/or providing professional counselling.
Organisational responses to work related stress problems could also include rewarding performance and
productivity and not visible time spent at work; creating a culture where people feel they can live accord-
ing their own values and encourage others to do the same; building respect and trust in the organisation
so that people are more comfortable in being open about problems they are facing before they become
chronic.

Organisational Behaviour Edinburgh Business School 4