Question Tag: HR Management

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A fishing boat manufacturing company at Elmina intends to expand its business and has decided to locate another production facility at Winneba.

Required:
Explain FIVE (5) health and safety measures to facilitate a working environment devoid of accidents for the company’s employees. (10 marks)

Health and Safety Measures to Prevent Accidents

  1. Effective employee resourcing:
    The company must structure its people resourcing strategy to ensure that the right people with the right skills are employed to fill vacant positions.
  2. Establish safety policy:
    The company must establish a health and safety policy to guide all employees in the dispensation of their assigned responsibilities. Such a policy must emphasize the company’s desire to have an accident-free working environment.
  3. Reduce job overload:
    Employees must be assigned with moderate work responsibilities. This ensures that employees are able to dispense their work within the appropriate time duration without the need for rushing to beat time or schedules.
  4. Risk assessment:
    The company must also conduct regular risk assessments for all jobs and assignments. Such an assessment would enable the management of the company to easily identify all risks associated with all jobs and implement necessary preventive measures.
  5. Constant review:
    There should be constant review of all protective and preventive measures. This would determine whether protective and preventive measures implemented are working according to plans, and where deviations are identified, corrective measures should be put in place.
  6. Safety training:
    Employees should be given regular safety training to ensure they understand and adhere to safety practices and procedures, reducing the likelihood of accidents.
  7. Proper maintenance of equipment:
    All machinery and equipment should be regularly maintained to ensure they are in safe working condition, preventing malfunctions that could lead to accidents.
  8. Emergency procedures:
    Clear and effective emergency procedures should be established, communicated, and regularly drilled to ensure all employees know how to respond to emergencies quickly and safely.

(8 points @ 1.25 marks each = 10 marks)

The budget for Health and Safety of Be Careful Enterprise presented by the Finance Officer has doubled within two years. The owner of the business is considering cutting the budget for the next year by 50% to make way for an increase in the budget for Sales Promotion. He reasoned that health and safety measures are not critical to the financial fortunes of the business.

Required:
a) Outline FOUR (4) reasons why health and safety measures are important. (6 marks)
b) Outline SIX (6) employer responsibilities when it comes to health and safety. (9 marks)
c) Outline FIVE (5) employee responsibilities when it comes to health and safety. (5 marks)

a) Reasons for health and safety measures

  1. Protection of Employees:
    Employees should, as human beings, be protected from needless pain and suffering.
  2. Legal Obligations:
    Employers and employees have legal obligations to take reasonable measures to promote healthy and safe working conditions.
  3. Cost Implications:
    Accidents, illness, and other causes of absence and impaired performance cost the organisation money.
  4. Corporate Image and Reputation:
    A business’ corporate image and reputation as an employer (its employer brand) may suffer if its health and safety record is poor, potentially alienating customers and potential employees.

(4 points @ 1.5 marks each = 6 marks)

b) Employer Responsibilities of Health and Safety

  1. Provide Safe Systems (Work Practices):
    Employers must provide safe systems or work practices.
  2. Safe and Healthy Work Environment:
    Employers are responsible for providing a safe and healthy work environment (e.g., well-lit, warm, ventilated, and hygienic).
  3. Maintenance of Plant and Equipment:
    Employers must maintain all plant and equipment to a necessary standard of safety.
  4. Support Safe Working Practices:
    Employers must support safe working practices with information, instruction, training, and supervision.
  5. Consultation with Safety Representatives:
    Employers should consult with safety representatives appointed by a recognized trade union.
  6. Safety Policy Communication:
    Employers must communicate safety policies and measures to all staff clearly and in writing.
  7. Carry Out Risk Assessments:
    Employers are required to carry out risk assessments to identify potential hazards.
  8. Provide Protective Equipment:
    Employers must provide necessary protective clothing and equipment to employees.
  9. Implement Emergency Procedures:
    Employers should implement and regularly review emergency procedures.
  10. Monitor and Review Safety Practices:
    Employers need to monitor and review safety practices to ensure they remain effective.
  11. Record and Report Incidents:
    Employers must record and report workplace accidents and incidents as required by law.

(11 points @ 0.82 marks each = 9 marks)

c) Employee Responsibilities of Health and Safety

  1. Care for Themselves and Others:
    Employees must take reasonable care of themselves and others affected by their acts or omissions at work.
  2. Cooperation with Employers:
    Employees must cooperate with the employer in carrying out their duties, including enforcing safety rules.
  3. Non-Interference with Safety Measures:
    Employees must not interfere intentionally or recklessly with any machinery or equipment provided in the interests of health and safety.
  4. Informing Employers of Potential Dangers:
    Employees must inform the employer of any situation that may pose a danger to themselves or others.
  5. Compliance with Safety Instructions:
    Employees must comply with safety instructions provided by the employer.

(5 points for 5 marks)

The outbreak of the COVID-19 pandemic caused many organisations to be more concerned about the health and safety of their employees.

Required:

Explain FIVE (5) reasons for this concern.

Reasons for Concern about Employee Health and Safety:

  1. Sustaining and Increasing Productivity:
    Organizations should be concerned about the health and safety of their employees to maintain and increase productivity levels. Healthy and safe employees can perform to the best of their abilities.
    (2 marks)
  2. Cost Reduction:
    Organizations can reduce operational expenses by implementing preventive measures that protect employees from diseases and accidents, leading to long-term cost savings.
    (2 marks)
  3. Image Protection:
    Concern for employee health and safety helps protect the organization’s image. Frequent injuries or exposure to diseases can lead to negative public perceptions.
    (2 marks)
  4. Avoiding Litigation and Fines:
    By ensuring the health and safety of employees, organizations can avoid potential litigation and fines resulting from workplace injuries or accidents.
    (2 marks)
  5. Attracting the Best Talent:
    Organizations that prioritize employee health and safety are more likely to attract top talent, as prospective employees seek workplaces with safe and healthy environments.
    (2 marks)

The strategy and structure of compensation programs have important implications for businesses and their ability to create and sustain competitive advantage.

a) What is meant by ‘Compensation’? (2 marks)
b) State FOUR characteristics of an effective compensation system. (8 marks)
c) Explain the following:
i. Direct compensation (5 marks)
ii. Indirect compensation (5 marks)

a) The term ‘Compensation’ refers to all forms of financial and non-financial benefits that an employee receives as part of an employment relationship. (2 Marks)

b) An effective compensation system typically has the following characteristics:

  • It enables an organisation to attract and retain qualified, competent workers.
  • It motivates employee performance, fosters a feeling of equity, and provides direction to their efforts.
  • It supports, communicates, and reinforces an organisation’s culture, values, and competitive strategy.
  • Its cost structure reflects the organisation’s ability to pay.
  • It complies with government regulations. (8 Marks)

c) i. Direct compensation is used to describe the cash received in the form of basic salary, overtime pay, bonuses, sales commissions, etc. It is divided into two components: – The wage and salary program. – Pay that is contingent on performance (merit increases, bonuses, commissions, etc).

(5 Marks)

ii. Indirect compensation refers to services, incentives, or facilities that accrue to workers in addition to their usual wages and salaries. This includes welfare services such as membership of sports and other clubs, etc. (5 Marks)

Total: 20 Marks

State FIVE (5) types of financial remuneration packages for rewarding employees of a department.

Financial Remuneration Packages for Employees:

  1. Base Pay:
    This is a remuneration received by employees, usually as a wage or salary. It is calculated per the number of hours employees spend on a job.
  2. Bonus:
    This is a periodic payment made to employees depending on the performance of an individual, team, or the organization as a whole. A bonus is paid to encourage individuals and teams to offer their optimum performance.
  3. Merit Pay:
    This is a remuneration package that links employee pay increases to ratings on performance appraisal results. The main purpose of merit pay is to reward employees whose job performance cannot easily be quantified in units, and is most common for white-collar employees.
  4. Gainsharing:
    This is a group incentive plan that measures employees’ contribution to increased productivity and effectiveness and rewards them accordingly. Gainsharing facilitates the distribution of a portion of the financial gains made by the company as a result of employees’ efforts.
  5. Cost of Living Allowance (COLA):
    This is a financial incentive offered to employees to cushion them against rising expenditure due to economic uncertainties. COLA is mostly calculated as a percentage of an employee’s salary or as a flat figure for all employees.