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Bmit 411: Managing People December 2009 Question Paper
Bmit 411: Managing People December 2009
Course:Bachelor Of Business Management And Information Technology
Institution: Kabarak University question papers
Exam Year:2009
KABARAK UNIVERSITY UNIVERSITY EXAMINATIONS
2009/2010 ACADEMIC YEAR
FOR THE DEGREE OF BACHELOR OF BUSINESS
MANAGEMENT AND INFORMATION TECHNOLOGY
COURSE CODE: BMIT 411
INSTRUCTIONS:
Answers question one and any other three questions.
Read carefully the case provided and answer the questions that follows;
YAMAHA AUTO
Yamaha auto Ltd is the market leader of the two-wheeler industry in Kenya. This
company has always enjoyed the highest market share in this industry. This organization
set up a second plant at Nakuru in January, 1984. It employs 3,500 persons and has rated
capacity to assemble 800 motorbikes a day. Its plant at Nairobi is much older with double
the rated capacity and twice the strength of employees
In November, 1987, the management of this organization was concerned about the
situation that had risen because of the lockout it had been forced to declare.
The lock out necessitated rethinking about the strategies that the organization would have
to follow, and the formulation of short-term strategies for coping with company’s loss in
market share and heavy financial losses that would result from the lockout. It was
estimated that the company would incur a loss at the rate of Kshs 500,000 per day during
the period of lockout
The management of Yamaha Auto ltd had decided that all workers will be recruited from
the hereby rural areas of Nakuru. As the policy the company had decided against the
transfer of any workmen from Nairobi. Pursurant to this policy, diploma-holders were
recruited from industrial training institute in the nearby region and were trained at
Nairobi before being placed in Nakuru.
Management was convinced about the useful role that trade unions played in maintaining
cordial relationship with its employees. The management however believed that only an
internal union would be able to play a constructive role and help them to maintain cordial
relationship with their employees. As a result of this belief, the company decided to
promote an internal trade union. The purpose of the internal trade union was to serve as a
representative body of workers which would be the communication link between the
management and the employees.
To promote such an internal union, the management selected thirty six workers who had
the leadership qualities and intelligence and who could provide leadership at work related
matters. The selected group was sent to Gilgil for an orientation programme to prepare
the group for assuming leadership of the internal union. After completing the training the
management began to groom the group for assuming responsibility of helping the
workers in resolving day to day problems and for playing a liasonary role between the
management and workers. More specifically, the group was required to help workers to
solve their work related matters such as tools crib operations, services in the canteen,
problem with company transport and also help maintain discipline on the shop floor. The
group had worked in this role for nearly one and half years. During this period this
internal union was not formally registered.
BACKGROUND OF THE LABOUR FORCE.
Most of the labour force were in the age or 21-25 years and did not have family
responsibility. Most of them came from agricultural families and had no exposure to
industrial life. In an interview with Dr. Zakayo the case writer, the workers expressed
their views concerning the problems they were facing in the plant. A gist of the views
expressed by the workers is as follows:
The workers pointed out that they were confined to a job for eight hours. Although the
works norms were based on the ILO standards the automated operation in Yamaha Auto
Ltd did not give them any freedom on the job. They had no time for relaxation at work.
The company bus dropped them to the shop floor, drove them to the canteen and back
during lunch break and they were picked up at the end of the shift and dropped home.
The eight hour job left them so tired that they felt like doing nothing else apart from
going for sleep.
GATHERING STORM
Sometimes towards the end of 1986 the management made some major changes in the
standing orders which have been approved by deputy of commissioner of labour. These
were:
- The normal probation period of three months was raised to six months.
- The training period was liable to extension in the discretion of management.
- Go-slow at work was incorporated as an act of misconduct.
- A workman was liable for punishment for riotous behavior involving injury, assault
or threat of assault either within the organization or outside the organization.
These changes in managements view were necessitated by increasing occurrences of
stabbing and assaults on the managerial personnel outside the organization.
Employees of Nakuru branch were not aware of the changes made in the standing orders,
until the fellow worker was suspended for misconduct. They lost faith on their
representatives and elected a new body. The new body was registered as a union of
workers under the name of Yamaha Auto Ltd Nakuru division. All the members of this
union were all internal and no external members. Soon after registration of this union,
the union submitted the charted of demands which included;
- House rent allowances of 2,000 per month.
- Education allowance of 3,000 per month.
- Leave-travel allowance of 2,500 per month
- Basic salary of 20,000 per month.
This was increment of 100% each. The management felt that this increment could
impose a heavy and unbearable financial burden to the organization. Therefore these
demands were rejected and the management offered increment of 20% for each.
The workers in Nakuru division were not ready to accept this offer and resulted to
violence acts: beating supervisor and destroying company properties. This led to Page 4 of Page 4
management’s decision to suspend the workers and lockout the premises. The trade
union filed a case in labour court declaring the lock out illegal.
QUESTIONS
(1) Comment on the management approach toward;
(a) recruitment of workers for Nakuru division (4 marks)
(b) Formation of internal union. ( 4 marks)
(c) Changes in standing orders. (3 marks)
(2) Comment on the charter of demands and the attitude of the union and
management towards revision of wages structure. (5 marks)
(3) (a) What was the real cause of lockout? (4 marks )
(b) Do you think it could have been avoided? Give reasons (4 marks)
(c) How does lockout differ from strike? (4 marks)
(4) What should be done to resolve the conflict and lift lockout? (5 marks)
(5) Identify the major causes of strikes in the organization. (8 marks)
(6) Identify various factors that determine salary payment in the organization.
(8 marks)
(2) (i) It is argued that management of human Resources is more complicated than
management of other resources in the organization. Critically observe this
argument and highlight the appropriate ways of managing Human Resources to
ensure good co-operation and high performance of employees. (13 marks)
(ii) Discuss manpower planning and point out its major objectives in Kenyan business
organizations. (12 marks)
(3) (i) Briefly discuss employee recruitment and point out demerits and merits
associated with each of the two major sources of employee recruitment (13 marks)
(ii) Explain the two major training methods used by organizations and advice those
organizations that do not have formal training programmes. (12 marks)
(4) (i) The market is becoming very competitive and only those organizations which
utilize their Human Resources properly will survive. Discuss employee
performance appraisal and identify its limitations. (13 marks)
(ii) Discuss employees’ selection process and show how it differs from employee
placement.
(12 marks)
(5) (i) Explain job evaluation as the appropriate tool in salary administration. (5 marks)
(ii) Differentiate job analysis from job enrichment and show the role of each in
human Resource management in the organization. (5 marks)
(iii) Perception personality and attitude are the major determinant of the human
behavior in the organization. Explain each of them and show why every
practicing major should have knowledge on each of them. (15 marks)
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