ACCA Paper 1.3 Managing People 2004 Question2

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Managing PeoplePART 1 MONDAY 14 JUNE 2004 QUESTION PAPER Time allowed 3 hours This paper is divided into two sections
  aper 1.3 Section A This ONE question is compulsory and MUST be answered
  Section B FOUR questions ONLY to be answered P
  The Association of Chartered Certified Accountants
  Section A – This ONE question is compulsory and MUST be attempted Oscar Williams are supported by a small team of qualified and part qualified accountants, technicians and support staff. The staff consists of five account managers who look after the main clients, a customer liaison manager (whose role it is to look for new clients), four account managers who maintain contact with smaller and newer clients and a support staff of five technicians and four secretaries. The practice is regarded as outgoing and constantly seeking expansion. The two partners feel that the practice has grown so much that it can no longer be managed in an informal way. Reg Watkin has been studying management in his spare time and suggested to his partner that a staff appraisal scheme should be introduced. He believes that rewards should be related to performance and wants to use the appraisal scheme as the basis for salary increases, annual bonuses and other incentives. Despite the office being very busy and there being substantial demands on staff, the scheme has been active for the last six months, with appraisal interviews being fitted in as time has become available. The two partners are soon to discuss strategy and amongst other things, intend to discuss the salaries budget for the coming year. However, feedback from the staff has identified a number of problems with the appraisal system. It has been alleged that nobody on the staff knows what appraisals are for, whether they are simply a discussion or a session to ask for more money. Some members of staff regard appraisals as a waste of time and resources since their own performance depends on others’ work, how well they perform and the time they are given. The partners are rarely available in the office and are therefore seen as out of touch. Staff members feel that appraisal interviews are a low priority for the partners, who hold them only at short notice when convenient to them. As a cons

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