These are Exam questions and solutions as well as those that were found in assignments, study guides and practice questions. When you work through these together with explanations in your study guide, you will gain an excellent understanding of concepts, theories, techniques and methods which will ...
Read through the scenario below and answer the questions that follow.
The economy is growing and as a result there is a rise in the demand for motor vehicles. Temba
works at the Mercedes Benz plant in East London, one of the industry leaders in the motor industry.
Due to the current demand and the risk in production targets, he has been under pressure to
improve his performance in recent months. Unfortunately Temba is not solely responsible for the
final product because his job performance is dependent on many other people working with him on
the assembly-line. Recently his supervisor has been complaining that Temba’s performance is not up
to standard. Themba feels demotivated by these complaints and needs his role and position in the
company to be re-assessed.
1.1 Discuss the process that should be followed to clarify Temba’s position and role in the motor
company (9)
Given to Laura
1.2 What is the most suitable approach for measuring Temba’s performance? (1)
Given to Laura
1.3 Discuss the approach and the circumstances under which this approach (the approach you
identified in question 1.2) is the most appropriate and provide examples from the motor
industry (15)
Approach summary
Behaviour Approach is most suitable when:
• The link between behaviours and results is not obvious.
,Results Approach
Appropriate Under the following circumstances:
• Workers are skilled in the needed behaviours – they have the necessary knowledge and skills
to the work, the know what specific behaviours are need to achieve desired results and can
correct any process-related problems
• Behaviours and results are obviously related. Certain results can only be obtained if a worker
engages in certain specific behaviours. Jobs involving repetitive task (assembly lines or
newspaper delivery)
• Results show consistent improvement over time – this is an indication that works are aware
of the behaviours needed to complete a job successfully.
• There are many ways to do the job right – an emphasis on results could encourage
employees to achieve the desired outcomes in creative and innovative ways.
,Question 2
Read the following case study and answer the questions that follow
All Frito-lay products, including Lays, Doritos and Sun Chips, are put on store shelves by route sales
representatives (RSRs). Frito-Lay has almost 50 000 employees, of which more than one-third is
RSRs. Their job includes driving the products to retailers, merchandising, taking orders and
negotiating for additional shelf space. The performance of the RSRs was generally measured using
sales figures, because the job was paid on commission. But when Frito-Lay discovered that it was
having difficulty meeting profitability goals because of low productivity and high turnover of the
RSRs, other additional performance measures were introduced to help solve the problem.
Supervisors now evaluate RSRs on sales, driving and delivering tasks, and merchandising tasks at the
retailers.
, The Frito-Lay company was aware that RSRs had two types of routes low-sales-volume routes, which
had many small retailers, and high-sales-volume routes, which had only a few retailers which where
each retailer sold much more products. An analysis of the new performance data showed that sales
skills had the greatest impact on the low-volume routes. More specifically, being able to negotiate
greater shelf space was critical to the sales and customer satisfaction on these routes. On high-
volume routes, driving and delivery skills had the greatest impact on sales and customer satisfaction,
primarily because of the tight delivery windows large retailers imposed on RSRs. Based on the
insights, performance goals and measures were adapted to reflect differences in the types of routes.
Frito-lay was able to restructure the job of the RSRs so that the most important tasks for the specific
type of route assigned to the RSRs were the highest priority. The new measures made it possible to
track performance on the tasks that mattered most and hleped RSRs understand how to increase
sales and maximise their commissions.
2.1 The implications for performance goals, performance measures and the restructuring of jobs
for RSRs at Frito-Lay, have been shown in the case study. Discuss the implications for each of these
in more detail (6)
1. Sales and skills had the greatest impact on the low-volume routes.
2. Based on the insights, performance goals and measures were adapted to reflect
differences in the types of routes.
3. Frito-lay was able to restructure the job of the RSRs so that the most important tasks for
the specific type of route assigned to the RSRs were the highest priority.
4. The new measures made it possible to track performance on the tasks that mattered
most.
5. The new measures helped RSRs understand how to increase sales and maximise their
commissions.
2.2 What are the advantages of performance management for the employees and the
management of Frito-Lay, as demonstrated in this case study? Provide examples from the case study
(12)
1. Motivation to perform is increased.
2. Self-esteem is increased.
3. Managers gain insight about subordiates.
4. The definitions of job and criteria are clarified.
5. Self-insight and development are enhanced.
6. Administrative actions are more fair and appropriate.
7. Organizational goals are made clear.
8. Employees become more competent.
9. Employees misconduct is minimized.
10. There is a better protection from the lawsuits.
2.3 Discuss the conditions that should apply for performance management to be implemented
successfully (7)
1. Convey reasons for such a system to all praticipants
2. Ensure the top managments commitment to the system
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