Information and Instructions to Learners:
The recommended minimum word count is 3,000
words. Anything above +10% will not be marked.
Appendices and reference list are excluded
from the word count and will not be marked.
·The reference style accepted
is Harvard Referencing.
You are required to complete five tasks.
Tasks 1, 2, and 3 are based on the case
study scenario provided.
Tasks 4 is based on the short statement
Case study scenario
Conrad Valves Ltd is a specialist
manufacturer of various kinds of valves and pumps originally for the motor
industry but more recently for other branches of the engineering industry,
for example aerospace and marine. Under its Chairman and Managing Director
(who is the major shareholder) the business has expanded its workforce from
just under 150 to over 250 in the last three years. However, there have been
problems recently to do with quality and a number of complaints have been
received from customers. As Conrad Valves depended on its reputation for high
quality, this was alarming. The Chairman has recently taken over another
business and has therefore appointed a Managing Director for Conrad Valves.
His function is to concentrate on running the company under overall guidance
of the Chairman.
The new Managing
The Managing Director was appointed from
outside and he had two briefs:
1) to do something about improving quality,
2) to look at the organization structure,
which the Chairman described as having ‘just growed’
The Managing Director was an
engineer and conducted a review of the quality situation himself.
The organization structure
the Managing Director found looked like this:
Sales Works Technical
Director Director Director
An HR function was conspicuous by its
absence, so the managing director engaged an independent HR consultant to
find out how people matters were being dealt with, to examine the case for
creating an HR function, and if one was needed to recommend what it should
The consultant’s findings on
the present arrangements were as follows:
● Recruitment – each of the functions carries out its own recruitment, having
agreed with the Managing Director on the engagement of additional people and
what they should be paid. Some use is made of recruitment agencies for
administrative staff but sales representatives, production engineering staff,
operatives and technical staff are mainly recruited by advertisements.
Interviewing techniques, as observed by the consultant, were crude to say the
● Labour turnover – this is fairly high: 20 per cent for operatives and 15 per cent
for technical and administrative staff. The failure to retain a number of
recent technical and operative recruits is worrying and may have contributed
to the quality problems.
Training – there is no formal training; people
are recruited with, it is hoped, the required skills and experience and learn
the Conrad way of doing things on the job. Some supervisors carry out
induction training conscientiously but the majority don’t. Again, it was
considered that this prejudiced the achievement of high-quality standards.
● Pay –
operatives were paid the local going base rate (no payment by results) and
staff were paid whatever it was believed necessary to recruit and retain them
– there was no formal grade and pay structure. Pay was reviewed once a year,
generally to keep pace with inflation and in particular to ensure that key
staff were paid competitively. Cash bonuses (usually not more than 10 per
cent) were paid to some staff as authorized by the Chairman. There was no
performance management or appraisal system.
● Employee relations – there was no recognized trade union but a large number of
recently recruited employees were union members and there was a distinct
possibility that they might ask for recognition shortly. There were no formal
consultation or communication processes.
● Health and safety – this was left to works management. Accident rates were fairly
On the basis of the findings summarized
above, prepare recommendations on what should be done about HR functions
namely reward management, performance management and grievance handling.
Indicate how the problems revealed by the study should be dealt with based on
the below questions and by referring to the above case
Assessment criteria (Total 30 marks)
(a) Discuss the issues pertaining to
performance management and reward management within the context of the
mentioned case that can lead to high turnover (20 marks) (approx. 600 words)
Based on the issues identified in part (a), propose areas for action to be
taken in order to alleviate the rate of turnover for this organization (10
marks) (approx. 300 words)
With reference to the case, highlight on the causes of grievances that
requires to be addressed to create a better working environment (10 marks) (approx. 300 words)
Propose a grievance procedure to assist the HR team to deal with high
turnover along with management strategies that can be applicable in this
case (20 marks) (approx. 600 words)
Propose a job evaluation method with its
advantages and disadvantages to assist the HR team to begin appraising
employees (10 marks)
(approx. 300 words)
Explain the aims of reward management with
reference to issues of this case (10 marks)
(approx. 300 words)
Discuss the below pay structures an
organization can incorporate to the compensation plans with their main
features, benefits, disadvantages and application. (20 marks)
(approx. 600 words)