Nov 2009 Q6

Q1. According to Steve Crabb (writing in the CIPDs research review, Impact, Issue 26, 2008),
It isnt very hard to create high-performing teams, or even entire workplaces; there are countless
[models], books and pieces of research to help you do it . . . The hard part is sustaining that high
performance.

(a) Identify one model, book or piece of research that you would recommend to the Chief Executive
Officer (CEO) of any organisation seeking to achieve high-performance working throughout his/her
organisation. Give reasons for your choice, highlighting the benefits that both the CEO and the
organisation as a whole could gain from the model, book or piece of research which you have
recommended. (10 marks)
(b) Briefly outline the principal reasons why sustained high-performance working might be
difficult to achieve. (5 marks)
(c) Summarise and justify the actions that can be taken to make sure that highperformance working, once
attained, continues to be part of the organisations HR strategies. (10 marks)

Ans. High Performance Working

(a) Candidates should specifi cally identify a relevant single tool, book or piece of research. Candidates
should not solely refer to the ABE Study Manual or any other generic textbook about HR strategy. Instead,
candidates could explore, for example, the Gallup 12Q (or Q12) instrument for measuring employee
engagement, the Johnston, ISR, Guest or Pfeffer frameworks for high-performance working, or the Purcell
black box research reports published by CIPD in 2003.
(b) Answers should cite at least two persuasive reasons which could include, but are not
limited to, the following:
The workforce becomes bored or even disenchanted with an unchanging incentive programme or
continuous publicity about the need for high-performance working.
The individual leaders who promote HPW may resign or retire, and are replaced by others with lower
levels of commitment.
The organisation becomes distracted by other pressures caused by, e.g., the external economic situation
which compels short-term cost control to be the centerpiece of corporate action.
(c) Answers should address at least four of the following arenas for action:
Recruitment - a continued concern for a recruit for attitude, train for skill philosophy.
Selection - processes which predict a predisposition towards employee engagement.
Induction, learning/training and development - a continual focus on the organisations high-level
HPW philosophy.
Performance management - inclusion of continuous improvement and transformational change
priorities, within objectives, key performance areas and appraisal systems.

May 2013 Q1
The benefits of a partnership between an organisations corporate strategies and its human resource
strategies are now widely known. However, what is less often discussed is which of the two partners
should be dominant.

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 (a) Outline and explain two arguments in favour of the idea that an organisations human resource
strategy should be subordinate to its corporate strategy, giving an example of a type of organisation
where this would be a defensible approach.
(b) Outline and explain two arguments in favour of the idea that an organisations human resource
strategy should take priority over its corporate strategy, giving an example of a type of organisation
where this would be a defensible approach.

Ans. (a) Most organisations should be governed by their corporate (i.e. global or overall) strategic
priorities incorporating a vision (Big Idea), mission (purpose), values and goals. It is these which should
inform the HR strategy, not the other way round.
Organisations consist of more than people, so to allow the people strategy to drive the business would
be to create an inappropriate imbalance. Example: lots of conventional organisations, such as
pharmaceutical companies, international airlines, banks and railway operators.

(b) For some businesses, the people are virtually the only resource the organisation possesses and the
HR strategies should therefore dominate the corporate direction.
This model makes sense, too, provided that the HR function is itself led by people with a strong
business orientation. Example: Certain large-scale charities (which rely on volunteers), and some
franchise operations (e.g., pizza parlours), especially where the franchisees are already entrepreneurial.
Some professional bodies could operate in this way, too e.g., the ABE, the CIPD, etc.

Dec 2007 Q2
Currently there is a great deal of interest in what has come to be known as High Performance Working
(HPW).
(a) Describe what is meant by High Performance Working and why it is thought to be so important in
todays competitive environment. (5 marks)
(b) Outline and evaluate at least three HRM strategies that are frequently linked to High Performance
Working. (10 marks)
(c) Explain why some organisations remain resistant to the introduction of HPW strategies and practices.
(d) Indicate how you would seek to persuade the Human Resources Director of such an organisation that
HPW reflects a worthwhile set of strategies that his organization should implement.

Ans. High Performance Working

(a) The nature of HPW and reasons for its current importance
A brief description of HPW
HPW conventionally embraces a collection of work practices that are not radically new, but are simply
introduced in order to improve organisational performance. HPW practices normally cover three broad
areas as bundles of practices:

(1) High employee involvement practices e.g., self-directed teams, quality circles, suggestion
schemes, Kaizen (continuous improvement programmes) and sharing/access to company information;
(2) Human resource practices e.g., sophisticated recruitment systems, performance appraisals, work
redesign, multi-skill training, development, and mentoring; and
(3) Reward and commitment practices e.g., various financial rewards, performance-related pay,
profit-sharing (if relevant), non-pay benefits, family friendly policies, job rotation and flexible working.

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 Reasons for the importance of HPW in todays competitive environment There are two main benefits of
HPW, and each reinforces the other: HPW helps create sustained performance improvement across an
organisation; and second, HPW helps create a better workplace in terms of employee satisfaction and a
sense of personal achievement. When these two benefits work together, the organization is likely to
enjoy:
(1) High levels of sustained financial performance;
(2) Stronger levels of employee commitment, coupled with reduced turnover and therefore lower HR
costs;
(3) Enhanced competitiveness and motivation.
All these are important results in a world that is increasingly competitive, global in business reach,
characterised by new entrants who do not carry the cultural baggage of the past, and where customers
are increasingly demanding.

(b) The HRM strategies linked to HPW

(1) HR planning: Careful thought is given to the kinds of people whom the organisation wishes to attract,
retain and motivate.
(2) Recruitment and selection: Processes are designed in order to identify individuals with appropriate
attitudes (i.e., self-motivation, dedication, flexibility, and so forth); the organisation does not simply
accept individuals because they happen to be available.
(3) Induction, learning and development: The organisation moves specifically away from training
towards learning and especially towards self-managed learning, in order to transform the business into
a learning organisation.
(4) Performance management: All employees are expected to add value, and therefore job
descriptions (if used) are written with continuous improvement as a compulsory aspect of each
individuals duties, together with participation in cross-functional project teams and other initiatives
designed to enhance the organisations effectiveness.
(5) Reward and recognition: Incentives are clearly focused on the key deliverables sought by the
organisation, which are themselves derived from the organisations mission, vision and strategic goals.
All incentives, pecuniary or otherwise, are harmonised and bundled so that they reinforce each other,
and are complemented by managerial leadership behaviours.
(6) Employee relations: Strategies are dedicated to the development of an engaged (not merely an
instrumental) workforce, through participation in decision-making, consultation, involvement,
empowerment, encouragement of risk-taking and discretionary behaviour.

(c) Reasons why some organisations resist HPW

Some of the possible reasons for corporate resistance to HPW are listed below, but candidates could have
received credit for other suggestions if they were thought to be credible, appropriate and justified.
Some organisations operate in a virtually competitor-free marketplace (e.g., central government
departments, local authorities) and are not therefore subject to the normal pressures that might compel
them to become interested in HPW.
Some organisations are led by individuals who are unaware of HPW and who are, in any case, sceptical
of any ideas or practices developed elsewhere.
Some organisations are led by individuals who typically resist all change and prefer to continue to
function in their established comfort zones.

(d) Methods for persuading an HR Director of the merits of HPW

(1) It ought to be possible to draw the Directors attention to other organisations which have introduced
HPW and enjoyed the benefits therefrom especially if the other organisations are universally respected.

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(2) Citing research evidence may be helpful, e.g., Ashton and Sung (2002) have shown a strong link
between HPW and enhanced performance, using indicators such as productivity and profitability.
(3) These links can be shown to work in a variety of industrial contexts, e.g., paper mills, steel plants,
clothing manufacture, service sectors, auto assembly, aerospace, financial services, personal services, and
even public sector administration.
(4) Equally, the HPW/performance link has been demonstrated in many countries, e.g., the USA, the UK,
Japan, Europe, Australia, Korea, Mexico, Brazil, Taiwan and New Zealand.
(5) The HR Director may also be persuaded if it is mentioned that he/she may acquire an enormously
positive reputation when HPW practices are introduced.

Dec 2006, Q4
The underpinning purpose of a human resource strategy is to create, implement and embed human
resource practices that will have a positive impact on the performance of the organisation as a whole.
(a) Drawing on third-party evidence and organizational examples where you can, identify and justify five
HR practices that are most strongly associated with higher business performance. (10 marks)
(b) Identify and describe the factors that affect the degree to which any HR practice contributes to an
improvement in business performance. (15 marks) (Total 25 marks)

Ans 4: HR practices and their contribution to HR strategy

(a) Five HR practices associated with higher business performance
A range of possibilities would constitute legitimate and authoritative responses to this part of Question 4.
However, there is evidence that atleast the following practices are associated with higher business
performance.
(1) Creating a healthy culture (R. Maitland, Due consideration, People Management, 24 January 2002)
incorporating plenty of opportunities for upward communication (of ideas, suggestions, proposals for
continuous improvement), plenty of downward communication (shared details about the corporate
strategy and plans), interaction between business functions, a positive mix of motivators and hygiene
factors in the work-reward relationship, and so forth.

(2) A focus on teamwork and decentralisation (Jeffrey Pfeffer, The Human Equation, Harvard Business
School Press, 1998) incorporating the opportunity for discretionary behaviour in support of the wider
corporate objectives, on the part of individuals, groups and teams, plus the deliberate encouragement of a
team-based ethic through social activities, collective problem-solving, mutual assistance and support.

(3) Sensitivity to work/life balance (John Purcell et al, Understanding the People and Performance Link:
Unlocking the Black Box, CIPD, 2003) incorporating innovative approaches to flexible working,
maximising the opportunities for home/teleworking, and arrangements for temporary absence during
critical family periods.
(4) Careful recruitment (Jeffrey Pfeffer, The Human Equation, Harvard Business School Press, 1998) and
Hiring for values (Robert Johnston, Service Excellence = Reputation = Profit, Institute of Customer
Service, 2002) incorporating the philosophy of recruiting for attitude, training for skill in which the
organisation pays considerable attention to ensuring that all new employees are selected for the
likelihood that they will become fully engaged with the business.

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(5) Bosses who show respect (John Purcell et al, Understanding the People and Performance Link:
Unlocking the Black Box, CIPD, 2003) and Supportive managers (Robert Johnston, Service Excellence =
Reputation = Profit, Institute of Customer Service, 2002) incorporating a strong concentration on
leadership (managers who lead, leaders who lead and leaders who know how to follow Purcell
and Maitland respectively).

(b) Factors affecting the extent to which an HR practice contributes to improved business
performance
In constructing responses to this part of Question 4, candidates would be expected to amplify the majority of
the following points:
Any given HR practice will only make a positive contribution to improved business performance if it is
aligned (bundled) with other HR practices and with the general thrust of the overall corporate culture.
Otherwise its impact will be dissipated and sometimes even contradicted by the pressure of other,
competing influences.
Clearly the practice itself, too, must be one that is likely to contribute to improved business
performance and not merely support it or get in the way. This means that the practice should be one of
the five listed above, or be linked to them, e.g., training/learning/development, employee relations,
reward and recognition, and so forth.
Specific HR practices are sometimes introduced into organisations because of legislative compulsion
(e.g., equal opportunities, or diversity management) or mere fashion (i.e., it is accepted merely because
the practice has become widespread elsewhere). In such circumstances it is often the case that the
practice is implemented without genuine conviction that it is worthwhile or cost-effective; as a result it is
a practice in name only, the object of lip-service, and supported by appropriate documentation but by
little else.

June 2010 Q3
It has been claimed that the primary role for the HR function is to help businesses to become
High Performance Working organisations.
(a) Defi ne the phrase High Performance Working. (5 marks)
(b) Identify and justify the HR strategies which need to be implemented in order to develop
an organisation as a High Performance Working business. (15 marks)
(c) Outline the competencies required by senior HR professionals if they are to be taken seriously as
agents capable of promoting High Performance Working in the organisations by which they are
employed.

Ans. (a) Definition of High Performance Working (HPW).

An above-average level of performance among the organisations employees, characterised by high
productivity, a willingness to go the extra mile when opportunities are provided to do so, capabilities for
discretionary behaviour and organisational citizenship, and the presence of all the AMO ingredients
(ability, motivation, opportunity see Purcell).
Above-average levels of organisational profitability, sustained over time (i.e., not merely a flash in the
pan).

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 Above-average reputational indices for the organisation with the environment, with customers, with
other stakeholders, etc.
A holistic, integrated and bundled set of HRM policies and strategies which
cumulatively deliver high performance from the workforce.
Significant levels of employee engagement, commitment and involvement, with participatory
mechanisms in place, so that employees are not merely instrumental in their orientation.

(b) HR strategies to develop the organisations HPW credentials.

Typically these would be the HR strategies found in High Performance Working (HPW) structures.
Students should identify this relationship, and also refer to influential sources like Pfeffer or Purcell.
(c) Competencies required by senior HR professionals in order to be taken seriously as agents for HPW.
Business acumen allied with a constant readiness to keep in touch with the external world (not just in
HR).
Strategic thinking and high-level sensitivity, coupled with a desire at all times to be proactive.
Creativity when confronting unprecedented situations.
Political awareness coupled with the skills of influence and persuasion.
Wide networking skills, again not confined to the world of HR.
Authoritative and decisive leadership.
A positive belief in the fundamental capabilities of people.

Dec 2005, Q6
In 2000, a study by the Chartered Institute of Personnel & Development concluded that there is no
proven universal set of best personnel practices which is likely to produce improved business
performance, but there are clear indications of the essential building blocks.

(a) Outline these building blocks for each of the following scenarios:
The organisation that seeks to concentrate its efforts on producing high performance by its
workforce; and
The organisation that seeks to concentrate its efforts on producing high commitment among its
employees.
(b) Giving reasons for your views, indicate which of the above approaches (either high performance or
high commitment) you would recommend for each of the following:
A luxury hotel group; and
A fast food business. (10 marks)

The building blocks for the personnel practices that are likely to produce improvements in
business performance
(a) The building blocks for two alternative scenarios:
High performance
The building blocks for a high performance culture, according to the US Department of Labor, consist of
these elements:
Careful and extensive systems for recruitment, selection and training;
Formal systems for sharing information with the individuals who work in the organisation;
Clear job design;
High-level participation processes;

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 Monitoring of attitudes and remedial action taken where necessary;
Performance appraisals;
Properly functioning grievance procedures;
Promotion and compensation schemes that provide for the recognition and financial rewarding of the
high-performing members of the workforce.
High commitment
By contrast, the main features of a high-commitment management culture are likely to be the following:
The development of career ladders and emphasis on trainability and commitment as highly valued
characteristics of employees at all levels in the organisation;
A high level of functional flexibility with the abandonment of potentially rigid job descriptions;
A heavy reliance on team structure for disseminating information (team briefings), structuring work
(team working), and problem solving (quality groups);
Job design as something that management consciously does in order to provide jobs which have a
considerable level of intrinsic job satisfaction;
A policy of no compulsory lay-offs or redundancies and permanent employment guarantees, with
possible use of temporary workers to cushion fluctuations in the demand for labour;
New forms of assessment and payment systems and, more specifically, merit pay and/or profit-sharing;
and
A high involvement of employees in the pursuit of quality and continuous improvement.
(b) Approaches to be used in two different organisations:
A luxury hotel group
A luxury hotel group (such as the Shangri-La or Ritz-Carlton enterprises) must depend on the acquisition,
retention and motivation of high-quality staff, who will themselves provide part of the reasons
why guests at such hotels choose to return as satisfied customers. It therefore seems virtually certain that
the hotel group will pursue a
high commitment strategy. If it is sensible, the group will work hard:
To secure the loyalty of all its employees to the higher-order vision, values and goals of the
organisation, so that these are reflected in every interaction between the hotel group and its
guests/customers;
To seek to present a single view of itself, both internally and externally, so its employees and its
guests/customers will receive identical (and exemplary) treatment in each of the groups hotels;
To achieve high levels of staff retention so that, for example, staff will develop personal relationships
with some frequently returning guests, and thus be able to cater for their special
expectations and needs.
A fast food business
The fast-food business is in a different category altogether. It may have a large proportion of returning
customers, but essentially it offers a mass-production process and a standardised product to individuals
who are less interested in personal attention but more concerned with speed, cost (price) and the
fulfilment of preconceived requirements.
Each fast-food unit offers very limited opportunities for job satisfaction among the employees, if only
because tasks are rigorously subdivided and clearly defined; few skills are needed by the staff; and
relationships with customers are not normally a key performance issue.
In these circumstances, it is likely that the fast food business will adopt a high performance strategy so
far as its staff are concerned. Characteristically, there will be:
Little emphasis on training and development beyond the direct tasks involved in the production and
delivery processes;
Recruitment and selection systems that are quite basic, given the fact that few specific competencies are
needed by the workers;
Virtually no procedures to encourage employee retention.
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