Mock Exam Case Answers

This resource has been provided to help students understand the requirements of the exam case questions.
These answers and associated marking notes are provided to help clarify how to address question criteria.

Trial Workshop Case: Phone Service

Phone Service Case Background

You are a management consultant interviewing telephone operators in a major phone sales and service
department for a large company in the finance industry. It is your job to determine the nature and causes of
problems in this workplace and come up with some recommendations to remedy them. This is important, as
it appears the firm's competitors are succeeding in developing strengths in customer service that are eroding
the firm's customer loyalty. Furthermore, you have been informed that the government is assisting
implementation of an industry-based code of practice that has strict service standards.

You have determined that typically staff spend a 38 hour week taking incoming calls of a variety of types
relating to a diverse range products and services that the company offers. In general terms these call types
are –

1. General information inquiries from existing customers.

2. Maintenance and service calls from existing customers.

3. Quoting and selling to existing and new customers.

While selling a wide range of products to new and existing customers is important, this companies mission
states that it also endeavours to offer quality service to existing customers. The high customer satisfaction
and retention rates improve profitability, as loyal customers do not require the expensive effort needed to win
new business. However, staff complain that the job is monotonous, stressful and that other companies pay
their staff more. A factor that has led to the loss of some quality staff recently.

Good telephone service employees rely on quality training and excellent support from personnel in other
departments to deliver a high calibre of service. In this respect it is widely felt in the phone service area that
company departments do not co-ordinate their efforts effectively to achieve this goal. This perception has
grown in your department due to the number of complaints received from customers about bad service from
other areas and the poor attitude of their staff. Staff in this area generally feel the departmental manager
does not address this matter effectively with the General Manger and that the team leaders (first-line
managers) avoid making an issue over this and other problems.

It is obvious that some staff in this department seem very effective at "going through the motions". They are
the ones who handball the harder calls to other team-mates or cut them off and claim that it was an accident.
By cutting down on time spent on the more time consuming service calls, these operators easily met their
contact per hour targets and score higher in new business sold. The departmental manager and team leaders

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often seem to duck these issues, as they are potentially difficult to handle due to the fact they involve change
and tackling difficult staff for their poor performance. Most team leaders complain that they do not enjoy the
"back up" needed to tackle problems in the workplace and feel the departmental manager is not
approachable, discourages initiative and lacks industry knowledge. Trivial service complaints must be
referred to the departmental manager for a decision, which due to a lack of background in the industry,
always take a considerable period of deliberation.

Currently all employees are paid an hourly rate for their services with pay increases linked with the criteria
already outlined (ie: contacts per hour and new business sold). While you are aware your management
report will need to recommend changes, you are also aware that many in the phone service department will
be suspicious of any attempt to change the status quo.

For the first workshop you should on a piece of paper:

 Record how you would feel if you were a team leader, service operator and department manager.

 Note whose opinions we know and how that might impact on the reliability of the information we
have.

SOME SAMPLE EXAM QUESTIONS/PROBLEMS FOR THIS CASE (These are provided only to
illustrate the kind of questions you’re likely to get in the final exam)
1. Provide a SWOT analysis for this firm ensuring that core internal and external aspects are identified
correctly in the right place.
2. Identify, define and apply two motivation theories to illustrate the sources/causes of poor motivation.
3. List three primary problems evident in the case.
4. List at least eight secondary problems evident in the case.
5. Compile a list of at least five key recommendations that should aid in fixing the main problems,
including at least one way to reduce resistance to the changes you recommend.
6. Define and apply two types of perception and/or decision making errors that may be playing a role in
problems.
7. Apply two leadership frameworks to explain how leadership could improve in this situation.
Answers to the questions above are presented on the following pages.

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 1) Provide a SWOT analysis for this firm ensuring that core internal and external aspects
are identified correctly in the right place.

Marking notes for this question if it were an exam question (typically worth about 6 marks):

Strengths
 Large company with plenty of resources*
 Broad range of financial services*
 Well established brand/reputation *
 Large detailed customer database *
 Some good employees*
Weaknesses
 Lack of leadership (or management)
and team development.*
 Poor reward system design*
 Poor job design *
 Customer service problems*
 Lack of co-ordination between
departments.*
 Growing staff turnover problem*
 Growing cost pressures (re
renewals/turnover)*
 Poor staff morale and conflict*
 Poor job satisfaction*
 Falling renewals/profits (likely due to
above)

Opportunities Threats
 Code of practice (Please see note 2  Code of practice.*
below).*  Strong competition from large competitors
 New technologies provide for improved with relative strengths in customer
service.*
job design and monitoring capabilities
(customer data sources).  Competitors offering attractive career
opportunities/pay.*
 Growing customer dissatisfaction evident
re customer complaints*

The solutions above were provided in the debrief. Typically when this sort of question is marked, the marker
will look at the number of points and then award marks proportionally. There are 20 points (recognising the
duplication allowed only for the Code of Practice) so approximately one 20th of all points for this question is
awarded for each point you have in your SWOT. Further, if you got 18 or 19 of these points you are
probably going to get all marks as one or two of these are not explicitly evident but, likely.

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 2) Identify, define and apply two motivation theories to illustrate the sources/causes of Commented [AD1]: Marking Criteria: You must
identifying, defining and applying.
poor motivation. Commented [AD2]: Marking Criteria So you need to do
the above with two theories
This sort of question is a major case question and would typically attract 10 marks (sometimes 12) in an Commented [AD3]: Marking Criteria Application must
define the causative (primary) problems
exam. Remember, it helps to organise your answer clearly so the marker can see you've addressed the
question criteria clearly.

Motivation theory 1: Commented [AD4]: As this is one of two theories, 5 marks

Expectancy theory states there are three critical considerations that must be addressed for motivation to be
high. They are expectancy (E>P), instrumentality and valence. All three of these considerations must be
rated high for motivation to be maximised yet there would appear to be problems with all three in the Trial
Phone Service case.
Expectancy (or E>P expectancy) relates to whether an employee can achieve the performance standards
expected of them. Poor customer service is in part a reflection that employee expectancy (E>P) is
undermined by a time consuming referral process which appears to rely on an overloaded decision maker
total are awarded for a full identification (1 mark), definition (2
marks) and application (2 marks) of the theory.
Commented [AD5]: This addresses the need to “identify”
the theory. As identifying is easier than “defining”, this will get
1 mark.
Commented [AD6]: Partial definition only (ie: when you’re
asked to “define” you need a definition). Each part needs to
be fully defined for full marks (2) so these terms alone would
only attract one mark.
Commented [AD7]: This is a full definition of this part of
expectancy. In conjunction with full definitions of the other 2
parts – 2 marks would be awarded.

(department manager) that may not be the ideal person for making routine decisions. This suggests job
design is a causative (primary) problem because the way work is organised is impeding on the expectancy of Commented [AD8]: As the question asks for
“source/causes” of poor motivation, it pays to clearly identify
operators regarding customer service. Too little decision making discretion is given to the team leaders and the causative problem (ie: job design)

the departmental leader would appear to be overloaded with routine decisions as a consequence. The lack of
cooperation with other departments is also hindering E>P and given this teamwork problem should also be
addressed by leadership, there are clear indications there has been insufficient investment in leadership and
team development (another primary problem). Commented [AD9]: Again, clear labelling of the primary
problem (leadership and team development) needed to
address question criteria.
Instrumentality (or P>O expectancy), relates to the allocation of an outcome/s (reward) for attainment of the
Commented [AD10]: Clear application of E>P with two
needed performance standard. Instrumentality has been undermined by a failure to offer monetary rewards primary problems identified. In conjunction with full
application of the other 2 parts – 2 marks would be awarded.
for good customer service so this rating is likely to be low. This reward system primary problem has meant Commented [AD11]: This is a full definition of this part of
expectancy (instrumentality). In conjunction with full
that many employees focus efforts instead on the things that improve pay increases - new business sold and definitions of the other 2 parts – 2 marks would be awarded.
contacts per hour. While some staff appear to be trying to do the right thing by servicing customers well, Commented [AD12]: Clear application. In conjunction with
full application of the other 2 parts – 2 marks would be
they are disadvantaged in pay increase considerations as they are also dealing with general service enquiries awarded.
Commented [AD13]: Clearly marked source problem
that others are cutting off in order to inflate their contacts per hour. Valence is the value placed on the
outcomes by employees and this behaviour suggests many employees value money highly (ie: high valence Commented [AD14]: This is a full definition of this part of
expectancy (valence). In conjunction with full definitions of the
re bigger pay increases). So if the firm fixes the rewards system problem by offering larger pay increases for other 2 parts – 2 marks would be awarded.
Commented [AD15]: Clear application
good customer service, this problem could be addressed.
Commented [AD16]: Application with primary problem
clearly defined. In conjunction with full application of the other
2 parts – 2 marks would be awarded.

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Motivation Theory 2

Equity theory states motivation is best when employees feel they are being treated fairly when they compare Commented [AD17]: Identification = 1 mark

their ratio of inputs to outcomes to those of others (or self in the past). In this case it is likely that the Commented [AD18]: Partial definition only (1 mark). The
other part is the equity responses
operators that are trying to service customers well are probably noticing others are cutting off these calls and
getting bigger pay increases as a consequence. In this situation equity theory states individuals are likely to Commented [AD19]: Clear application that establishes link
with reward system as cause of equity tensions (1 mark)
feel equity tensions and act to resolve those tensions. These responses include changing their own behaviour
(which may involve adopting the same behaviour they observe others getting away with) or leaving the
organisation (which some have already chosen to do). Clearly not acting to stop the problem behaviour is Commented [AD20]: Second part of equity theory defined
here (1 mark) which enables full 2 marks for definition.
caused a failure of leadership but, the reward system is also a primary problem as it is not rewarding all the Application has also begun in this with comments in brackets.

needed behaviours. Finally, given money is valued by many employees, the firm will also need to ensure
their pay is competitive with other companies as this is another likely source of equity tensions. Commented [AD21]: Full application achieved with
internal and external dimensions of the reward system
problem being fully explained. Leadership failure also
integrated into application (1 mark for this. The preceding
comments in brackets by themselves would get around 0.5
marks).
3) List three primary problems evident in the case.

1) Lack of leadership (or management) and team development.*

2) Poor reward system design*
3) Poor job design *
Note: keep descriptions short. About 10 words is the maximum. Commented [AD22]: This sort of question is typically worth
6 marks (2 marks for each) and like the first assessment, we
will value brevity and clarity. So keep the definitions short and
clear or you may only get 1 mark for each.

4) List at least eight secondary problems evident in the case.

1) Customer service problems*

2) Lack of co-ordination between departments.*
3) Growing staff turnover problem*
4) Growing cost pressures (re renewals/turnover)*
5) Poor staff morale and conflict*
6) Poor job satisfaction*
7) Growing customer dissatisfaction / customer complaints
8) Worsening renewals and impact on profits (likely given above)
Note: keep descriptions short. About 10 words is the maximum. Commented [AD23]: This sort of question is typically worth
6 marks and like the first assessment, we will value brevity
and clarity. So keep the definitions short and clear or you will
only get half marks for unclear/long secondary problems.

5) Compile a list of at least five key recommendations that should aid in fixing the main
problems, including at least one way to reduce resistance to the changes you
recommend. Commented [AD24]: This sort of question is typically worth
5 or 6 marks (approx. 1 mark each) and you will need to keep
1) Implement a full management and team development program to address the lack of your recommendations sharp and to the point (just like the
report assessment).
teamwork and improve the leadership competencies of the firm. This will help resolve many

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 of the conflict issues, clarify desired behaviours, address problem behaviours and improve
productivity.
2) Rotate personnel from other departments (and vice versa) into this phone service area so they
get some firsthand perspective on the kind of support needed from other departments. This
will help improve interdepartmental collaboration and especially if these efforts are also
integrated with the leadership and team development recommended above.
3) Given customer service is clearly strategically important, pay increases should be linked with
good customer service using surveys of customers and or structured monitoring of calls.
This should be communicated to employees clearly so allay fears and so they understand
how they will be rated beforehand. It may also be necessary to provide further training for Commented [AD25]: This also deals with resistance to
change
staff that struggle to hit service targets.
4) Have HR research competitor pay systems and ensure the overall reward system is
competitive with other firms in the market. This should help reduce turnover and improve
overall employee satisfaction with their pay.
5) Empower team leaders to take on more decision making responsibilities in order to improve
the speed and quality of routine decision making. It would also be wise to look at delegating
some decisions to experienced operators in order to further streamline service and ultimately,
improve productivity, intrinsic motivation in the job itself and customer satisfaction. Further
training may be needed to help achieve this.
6) All changes need to be clearly communicated to staff so they understand why the changes
are occurring and to help address fears. Some voice should also be provided for in order to
improve acceptance of change and to engage employees in the change process in a manner
that improves outcomes. Commented [AD26]: This explicitly deals with resistance to
change.

6) Define and apply two types of perception and/or decision making errors that may be
playing a role in problems. Commented [AD27]: This sort of question is typically worth
6 marks. Define (definitions) and apply (application) are two
key criteria f
First Error Type

Attribution Error/theory: (or fundamental attribution error) Attribution theory explains how people make Commented [AD28]: Identify 0.5 mark (as identification less
complex than definition plus definition asked for)
judgments or attributions about the causes of behaviour of another or themselves. In making judgements
about what caused what, managers must consider the tendency to underestimate situational influences and
overestimate dispositional influences (e.g. personality traits or a person’s own efforts) to explain behaviour.
Error more likely when judging others. Commented [AD29]: Definition (1.25 marks)

Some fairly harsh judgements appear to have been made about the Department Manager (DM) by other
employees. While some blame probably does rest there, we can't discount the possibility that the DM is
suffering from task overload given the frequent interruptions for a decision on routine service matters. Some
observations about the DM's temperament etc may relate to this. Commented [AD30]: Application 1.25 marks

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Second Error Type

Perceptual defense: Tendency to block out or distort information one finds threatening. Commented [AD31]: Identify 0.5 mark (as identification less
complex than definition plus definition asked for)
A lot of problems are evident in this department and some very bad behaviour (cutting off calls) seems to go Commented [AD32]: Definition (1.25 marks)

unaddressed by team leaders and the DM. It is quite likely that perceptual defence has contributed to this as
there are a lot of people that need to share in some of the blame but, no indications that anyone is prepared to
do so. Commented [AD33]: Application 1.25 marks

7) Apply two leadership frameworks to explain how leadership could improve in this
situation.
Fielder Contingency Model argues that leaders differ in their degree of orientation towards tasks and people
and that situations affect how effective leaders are. So managers must understand their natural style (ie:
Commented [AD34]: 6 marks total for this sort of question
(3 for each theory). This question only asks to apply so most
marks will be for effective application. However, you still need
to define enough of the theory to apply clearly so, some marks
are still awarded for this (bold elements are the key ones to
define when no definition asked for).

theory contends it is hard to change styles) and seek to change the context to suit their style (if the right
person for the current context isn't available). There are two kinds of styles in this model

a) Relationship-oriented style: leadership concerned with developing good relations with subordinates
and wanting to be liked by them

b) Task-oriented style: leadership where the primary concern is to ensure that subordinates perform at a
high level so the job gets done. Current leader is most likely a task oriented leader (given he is seen as
unapproachable this seems likely). Commented [AD35]: Correct application 0.25 marks

There are three situational characteristics that are important determinants of how favourable a situation is for
leading:

1) Leader–member relations: the extent to which workers like, trust and are loyal to their leader. For
the DM this would most likely be rated "poor" Commented [AD36]: Correct application 0.25 marks

2) Task structure: the extent to which workers’ tasks are clear-cut; how clearly specified the task’s
goals, methods and performance standards are. For the DM this would most likely be rated "high" Commented [AD37]: Correct application 0.25 marks

3) Position power: the amount of legitimate reward and coercive power leaders have due to their
Commented [AD38]: Correct application 0.25 marks
position; when positional power is strong, leadership opportunity becomes more favourable. For the
Commented [AD39]: This is a comprehensive definition so
DM this would most likely be rated "strong" if a definition was asked for this full definition is required or
half of 3 marks. As the Q only asks for application 1 mark will
be awarded here for the essential bold text elements (0.25
Based on application of this theory the DM's position is a type V which is suited to the relationship style. marks each) needed to apply and 1 mark (0.25 marks each)
for the ratings re style and situational characteristics. Notice
Improving leader relations via leadership and team development interventions could help change it to a type how application occurs throughout (see individual comments)
re situational characteristics and styles.
I which suits the task style which the DM most likely is given he is "unapproachable" etc. So the context
Commented [AD40]: Key finding 1
will better fit his style. Commented [AD41]: Key finding 2
Commented [AD42]: These are key application findings re
Finally, it is possible the Team leaders are relationship oriented (some evidence to suggest this although it’s the overall situational rating and how the recommended
leadership and team development could help change the
hard to be certain) which seems appropriate at the moment given this context is most likely a type V. rating to suit the style (0.5 marks x 2 = 1 mark). The point
about the team leaders is a bonus

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House's contingency leadership behaviour would be appropriate here. It argues no one behaviour will lead
effectively. Which motivating behaviour to use depends on the nature of the subordinates and the tasks. It is
contingent on the nature of subordinates and the kind of work they do. Commented [AD43]: Important background about the
theory to enable effective application.
Directive – guide, clear schedules, links performance to reward (Instrumentality ,P>O)

Supportive – concern for wellbeing and needs – reduce the boredom (Increases Valence)

Participative – consult with staff, encourage and support new ideas – increases feelings of being able to do
the work (Increases Expectancy, E>P)

Achievement orientated – setting challenges, conveying confidence in subordinate’s ability to achieve

(Increases Expectancy, E>P) Commented [AD44]: Comprehensive definition here but, as
no definition asked for we will only offer 1 mark for this.

Directive behaviour is required to help define new behaviours and goals and clarify the new links to
customer service needed for the rewards. Participative may help with the implementation of the changes and
improve acceptance (through greater confidence and more ownership of the direction). Supportive
behaviour would be useful to help alleviate some of the boredom. Commented [AD45]: Quick shorthand application with clear
labelling of the needed behaviours and why. 2 marks