Strategy & Performance Measurement

Suggested Answers
Topic wise Test 04

Answer: 1
Job Title: Marketing Manager
Date: October 15, 20X7
Location: Head office, Lahore
Reporting to: Marketing Director
Key duties: Working as a team lead in marketing department, developing innovative ideas for marketing the
products, branding, as well as:
 Identifying KPIs that affect marketing function
 Motivating marketing team to develop unique promotions
 Looking after customer services
 Figuring out ways to improve customer services
 Monitoring the performance of marketing department
Hours: 40 hours/week
Salary: market competitive
Other benefits: Medical insurance of spouse and children, complete health coverage, company maintained car, 20
casual leaves/ year
Academic Qualification: Master degree in Marketing from HEC recognized institute
Professional Experience: at least 5 year experience is required in similar position in renowned organization
Verbal/communication skills: excellent verbal and communication skills are required
Note: Ammar Ltd is an equal employment opportunity employer

Answer: 2
There are several factors to consider and questions to answer when designing a reward scheme.
 Should rewards be explicit or implicit? Explicit rewards are rewards that will definitely be given for meeting
performance targets, such as a cash bonus. Implicit rewards are not specific promises, but there is a general
understanding that the rewards will be available for good performance. For example, there is often an
expectation of promotion or a higher salary for good performance, but these are not explicit promises, only an
implicit understanding.
 Should the rewards for performance be based on results (outputs) or on the effort that has been put in? A
reward scheme for salesmen, for example, can be based fairly simply on results achieved (volume of sales). It
is often much more difficult however to reward administrative staff for results achieved, because the results
of their efforts might not be easily quantifiable, or measured against clear targets.
 Should rewards be given in a money form (a bonus or higher salary) or in non-monetary form (such as share
options)?
 How large should rewards for performance be?
 Over what time period should performance be measured before rewards are given?
 Should rewards be given for individual performance, or should there be group rewards for team performance?
 Should the rewards involve equity participation – giving shares or share options to individuals?
 What are the tax implications of different reward schemes? Can a reward scheme be devised that limits the
tax liabilities of the employees receiving the rewards, without breaching the tax laws?

Answer: 3
Organisations use a systematic process when planning their training for an upcoming training period. The process
from identifying needs to delivering training is made up of four key stages.
Stage 1 – Identify Needs:
The training needs are analysed and identified by assessing the organisations training gap. The target audiences for
the trainings are defined. For Technopreneur, the training needs are clear and that is to align free lancers with client
specifications and cultural norms of the organization.

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 Strategy & Performance Measurement
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Topic wise Test 04
Stage 2 – Set Objectives:
The objectives are identified; this means that the aims of the training and what is meant to be achieved are outlined.
In case of technopreneur, the objectives are very clear. After the training is provided, free lancers must be able to
adhere to the requirements of clients and organization.
Stage 3 – Design Programme:
The training programme is designed. This includes:
 Content of training
 Delivery method
 Who will deliver the training
 Delivery logistics e.g., classrooms etc.
 Decision on training styles
Stage 4 – deliver training:
The training is delivered by the trainer to the trainees.
Stage 5 – Review and evaluate training:
The training is evaluated and reviewed to check whether it has been successful and achieved its objectives.

Answer: 4
Following are the business process redesigning patterns:
a. Re-engineering
b. Simplification
c. Value-added analysis
d. Gaps and disconnects
In the given scenario, simplification can be used. Simplification refers to improving the process by removing
unnecessary activities. Simplification involves asking if each step in a process is needed and what it achieves. This
pattern can achieve relatively modest improvements, but is relatively low risk. The banking process can be
simplified in the following manner:
1. Customer walks in the bank and takes the token
2. Customer presents the cheque at the counter
3. The teller takes the cheque, process it, and hand cash to the customer
Alternatively,
1. Customer walks in the bank and approach cheque depositing machine
2. Customer deposit the cheque to the machine, takes the cash and walks out.

Answer: 5
In the given situation, tell and listen method is the most appropriate technique. In this technique, the appraiser
makes an initial assessment and then invites the comments of the appraise. The interviewer must then listen to the
comments from the employee, and encourage the employee to become involved in a constructive discussion.
For example, the interviewer might invite the interviewee to discuss his job, problems in the job (in this case,
demotivation at work) and expectations about the future. The interviewer might ask some questions to prompt the
interviewee to discuss these matters fully. Having listened to what the interviewee has to say, the interviewer then
offers suggestions and guidance about how performance might be improved in the future.
There are differing views on how individuals are motivated. Consequently, there are differing views about what
management can do to improve the motivation of their employees.
 There is a view that management must get the ‘basics right’ first: they must offer a fair pay structure for
staff and fair employment policies – to meet the physiological needs and security needs of their employees
(Maslow) or to prevent dissatisfaction from employees (Herzberg).
 Adams argued that the rewards system should be seen to be fair: however, rewards can be intrinsic rewards as
well as extrinsic rewards such as higher pay.
 McGregor and Argyris argued in favour of a participative style of management, and getting employees

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 Strategy & Performance Measurement
Suggested Answers
Topic wise Test 04
involved in problem-solving and decision-making. They argued that this management style gets more out of
employees, and this improves the performance of the organisation.

Answer: 6
(a) The following factors might act as barriers to achievement of objectives of the training program of LSDL:
 It seems that training needs have not been analyzed (i.e. skills expected from employees and skills they
currently possess) as blanket training program is designed for all teaching staff.
 The selection of trainers may be not be appropriate unless ToT has previous experience of designing and
offering of training to teaching professionals.
 Training program seems to be inadequately designed. LSDL wants teaching staff to learn too much (100
hours training program) in too little time (30 days).
 Training method might not be suitable as 50 hours are fixed for self-online learning that might be
cumbersome as trainees generally tend to avoid reading materials for self-learning.
 Trainees might resist learning new skills. They already seem to be low in motivation as reflected by high
staff turnover.
 It seems that management is not committing sufficient resources in terms of employees’ time and
monetary or non-monetary rewards. Trainees might have to compromise on family and/or other
commitments and lack of incentives might affect their motivation towards training.
(b) Although new personnel may bring fresh thinking or ideas, I do not agree with the management’s policy of
giving preference to external recruitment. Such policy could deprive an organization from the benefits of
internal promotions. These benefits are discussed below:
 It is quicker and inexpensive to promote internally as certain costs (i.e. advertisement, consultants’ fee,
interview and selection process) can be avoided.
 It can be a source of motivation / retention of the key employees who otherwise may leave the
organization for other better opportunities.
 It might be less risky to promote employees internally as management is in a better position of knowing
the strengths and weaknesses of its existing employees.
 Existing employees are well-conversed with the existing culture and norms of the organization
therefore; management may not have to offer extensive training in this regard.

(The End)

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