PART 1

MONDAY 13 JUNE 2005

QUESTION PAPER
Time allowed 3 hours
This paper is divided into two sections
Section A

This ONE question is compulsory and MUST be

answered

Section B

FOUR questions ONLY to be answered

Do not open this paper until instructed by the supervisor

This question paper must not be removed from the examination
hall

The Association of Chartered Certified Accountants

Paper 1.3

Managing People

Section A This ONE question is compulsory and MUST be attempted

1

Oliver Hoppe has been working at Hoopers and Henderson accountancy practice for eighteen months. He feels that
he fits in well, especially with his colleagues and has learnt a lot from them. However, he feels that the rules and
regulations governing everyday activities and time keeping are not clear.
Oliver does not get on well with his line manager, David Morgan. There appears to be a clash of personalities and
reluctance on David Morgans part to deal with the icy atmosphere between them after David was asked by one of
the accounting partners to give Oliver a job. For the past three months Oliver has gone to lunch with his fellow workers
and always returned to work with them or before them. In fact they all have returned to work about ten minutes late
on several previous occasions. After the third time, Oliver was called into David Morgans office and given an oral
warning about his time keeping.
Oliver was not permitted to argue his case and none of the other staff who returned late were disciplined in this way.
On the next occasion the group was late returning from lunch, David Morgan presented Oliver with a written warning
about his time keeping.
Yesterday, Oliver was five minutes late returning to work. His colleagues returned after him. David Morgan gave Oliver
notice and told him to work until the end of the week and then collect his salary, the necessary paperwork and to
leave the practice.
There is a partner responsible for human resources. Oliver has come to see the partner to discuss the grievance
procedures against David Morgan for his treatment and about what Oliver regards as unfair dismissal.
Required:
(a) Describe the six stages of a formal disciplinary procedure that an organisation such as Hoopers and
Henderson should have in place.
(12 marks)
(b) Explain why Oliver might legitimately feel he has a grievance against his manager and identify which aspects
of the formal disciplinary procedure David Morgan did not follow or allow in this case.
(9 marks)
(c) Describe the main stages of a formal grievance procedure that Oliver should now pursue.

(10 marks)

(d) Describe the three stages of a formal grievance interview that Oliver might seek with the appropriate partner
at Hoopers and Henderson following the formal procedure.
(9 marks)
(40 marks)

Section B FOUR questions ONLY to be attempted

2

An important part of management is understanding the style of leadership.

Required:
(a) Explain what Blake and Moutons Managerial Grid measures.

(5 marks)

(b) Briefly describe the five extreme scores identified by Blake and Mouton.

(5 marks)

(c) Discuss the usefulness of the managerial grid in assessing the attributes of managers.

(5 marks)
(15 marks)

The person specification is derived from the job description.

Required:
(a) Explain what is meant by the terms:
(i) person specification;

(4 marks)

(ii) job description.

(4 marks)

(b) Briefly describe the way in which a person specification differs from a job description.

(3 marks)

(c) Describe the purposes for which a person specification might be used.

(4 marks)
(15 marks)

In addition to the application form and interview, references provide further confidential information about the
prospective employee.
Required:
(a) Define the purpose of a reference.

(3 marks)

(b) Describe the content of a reference.

(5 marks)

(c) Outline the problems with references.

(7 marks)
(15 marks)

An organisations goals can only be achieved through the efforts of motivated individuals.
Required:
Explain what is meant by the following terms:
(a) Hygiene factors.

(8 marks)

(b) Motivators.

(7 marks)
(15 marks)

[P.T.O.

The accountant communicates information to others in reports and statements. Understanding the nature and
importance of communication is therefore an important part of the accountants role.
Required:
(a) Explain the importance of good communication.

(5 marks)

(b) Describe five major barriers to good communication.

(10 marks)
(15 marks)

End of Question Paper