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CHARTERED INSTITUTE OF
PERSONNEL MANAGEMENT OF NIGERIA
PROFESSIONAL EXAMINATIONS

FEBRUARY 2019
CIPM/PE2/003: ADVANCED HUMAN RESOURCE MANAGEMENT II (Regular)

Instructions to Candidates: Answer all questions in Section A, Question 2 and

any other three complete questions of your choice in Section B.

Time Allowed: 3 hours

SECTION A
MULTIPLE CHOICE QUESTIONS

Choose the correct answer from the list of options provided.

1. The total sum of cash and non-cash compensation provided to employees is called…

(A) Extrinsic and Intrinsic rewards

(B) Living wage
(C) Total rewards
(D) Gross salary

2. Employees’ Personal Income Tax (PAYE) is applicable to…

(A) Employees’ basic salary

(B) Employees’ basic, transport and housing allowances
(C) Employees’ benefit in kind
(D) Employees’ total income and benefits in kind

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3. ..is a forecasting technique that involves estimation of Human Resource requirements

by supervisors or managers of organization units.
(A) The Delphi Technique
(B) The Rule of Thumb Technique
(C) The Work Study Technique
(D) Statistical-based Technique

4. In selecting an appropriate manpower forecasting technique, which of the following

combination of factors must be considered by the HR professional.

(A) Cost, date availability and time requirement

(B) Nature of job, location and salary
(C) Organizational vision, values and employees value propositions
(D) Technology, time requirement and training requirement

5. In formulating effective annual HR strategy, the HR professional must consider the

following combination of factors…

(A) Organizational vision, mission and values

(B) Business strategy, focus and priority
(C) Business owners’ interest, values and profit
(D) Organizational mission, manning level and competence
6. Succession plan often fail to work out because of one of the following factors…

(A) Lack of management commitment

(B) Lack of clear career path
(C) Inadequate training for staff on the pipe line
(D) Employees attrition
7. A good HR Policy must satisfy the following combinations of factors…

(A) Clarity, uniqueness and implementable

(B) Standardised, fit for purpose and reliable
(C) Flexibility, clarity and consistent
(D) Flexibility, fit for purpose and firm
8. An organization is said to be learning organization if…

(A) The Management is open to creativity and innovation

(B) It has an approved Learning and Developing Plans and Programmes
(C) Employees are encouraged to engage in personal development plans
(D) It has developed a learning culture

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9. The major reason why performance objectives must be SMART is…

(A) That statistical inferences are made in performance reward decisions

(B) That actual performance is measured against performance expectation
(C) That performance milestones are easily identified
(D) That specific performance results are rewarded

10. The following are components of employee’s competency except…

(A) Qualifications
(B) Knowledge
(C) Skills
(D) Ability

11. ..is a formal and comprehensive programme to help organization and individuals
understand career dynamics within the organization.

(A) Career Pathing Programme

(B) Career Counselling Programme
(C) Career Management Programme
(D) Career Resource Planning Programme

12. …provide information on what the organization will and will not do in pursuance of
its overall purpose and objectives.

(A) Policy statements

(B) Management Decisions
(C) Employee Handbook
(D) HR Procedures

13. …is a structured and factual statement of a job functions and objectives.

(A) Job Analysis

(B) Job Specification
(C) Job Evaluation
(D) Job Description

14. The primary aim of performance appraisal is…

(A) To reward high performing employees

(B) To identify poor performing employees
(C) To ensure the organizational performance expectations are achieved
(D) To determine the rate of pay rise per employee

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15. The overall objective of employees’ performance management system is…

(A) To ensure objectivity in the performance appraisal exercise

(B) To align individual objectives with organizational objectives
(C) To align departmental objectives with organizational objectives
(D) To align compensation practise with organizational performance

16. The main objective of psychometric test for prospective employees is…
(A) To determine the candidates’ level of emotional intelligence
(B) To ensure the right fit in competence, personality and behaviour
(C) To ensure that round peg is fit into the round hole
(D) To eliminate recruitment errors

17. When designing a training programme, the first factor to consider is…

(A) The target audience

(B) The type of training
(C) The training objectives
(D) The training cost

18. For career development to be effective the following must play their roles…

(A) The employee and Management

(B) Management and supervisors
(C) Employee, Managers and Management
(D) All of the above

19. When redundancy is being declared in a unionized work environment, the following
factor must take priority…

(A) Union executive members to be spared in the interest of industrial peace

(B) First in first out principle with consideration to organization needs.
(C) Last in last out principle with consideration to organization needs.
(D) Last in first out principle with consideration to organization needs.

20. The following are examples of non-statistical technique in HR Budgeting except…

(A) Dephi Technique
(B) Rule of thumb
(C) Expert estimation technique
(D) Inflation adjustment

[Total = 20 marks]

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SECTION B
Answer Question two and other three complete Questions of your choice.

QUESTION 2: (Compulsory)
Read the following case carefully and answer the questions below it as required.

XYZ MOTORS LTD AND THE NEW STRUCTURE

XYZ Motors Ltd was a traditional Japanese firm, providing life time employment to its
employees. As a traditional companies, customers and employees enjoyed a stable and
predictable future. Employee retention rate was very high, yet XYZ Motor’s business
environment was changing so fast. The automobile industry was consolidating, competition
was becoming more intense and global, the Japanese economy was stagnating, and
technology and consumer taste were changing. The traditional approach to business in the
new and uncertain competitive environment was no longer working.

XYZ Motors needed to adapt. When Victor Kalu, the first non-Japanese to become the CEO
of the company assume duty, it was clear that the company was ready for change. Kalu
focused on cost cutting, outsourcing of some functions and terminated partnership with some
contractors. For the first time in the history of the company, staff were retrenched and some
business units were closed down. The CEO also ensure the remaining staff jobs were
enlarged and issued a memo that any staff who was not comfortable with the new order may
resign and quit. Kalu, the CEO admits that he was hard on his staff by asking them to take
actions that most of them found distasteful.

In a bid to effectively manage the new order of doing business, Kalu reviewed the company
structure to a lean and flat one whilst team work was emphasized. Specific programmes were
instituted to enjoy the benefits of diversity and inclusiveness. Kalu who has Nigeria origin
and lived as a teenager in the US, earned his first degree in Engineering from Nigeria and
bagged a second degree in Electro-mechanical Engineering in France, was perhaps ideally
suited to lead XYZ Motors through this period of extraordinary change.

Initially, he faced a formidable resistance to his management style but within the first 2 years
of his leadership, he became the hero of XYZ Motors Ltd as the first CEO to sell three
million units of vehicles and grow the company’s profit after tax by 30%. He was celebrated
by Management and shareholders who were initially skeptical about his style and ability to
take the company out of the wood of stiff competition. Kalu was able to attain this lofty
height as a result of his doggedness in change management, organizational restructure and
design.
At the third year of his leadership, business indices began to look down, key sales staff began
to quit to join competitors and went with them customers that were loyal to them, with whom
they have built great relationship beyond work. At this point the shareholders became
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worried, not sure what the issues were. On the third year, the company was struggling to
fulfil its obligations to the stakeholders.
Required:

(a) From the case, would you affirm that Victor Kalu is a fine business resources
manager? Justify your answer. [5 marks]
(b) Why do you think Victor Kalu was successful in the first two years and
failed from the third year? [10 marks]
(c) The Board Chairman has contacted you as Human Resource professional
to help diagnose the issues at XYZ Motors Ltd and advise him on the best
way to bring back the business from people’s perspective. [20 marks]

[Total = 35 marks]
QUESTION 3
Standard Operating Procedure (SOP) details the step by step process of activities involved in
a task. It also provides operative guidelines for new hire and existing employees to
understand the workflow in their assigned responsibilities.

Required:

As a Human Resource Manager, it is your responsibility to provide the SOP to a new hire in
your department. Draw up a comprehensive HR process flow chart covering Talent
Acquisition [8 marks] and Performance Appraisal. [7 marks]

QUESTION 4
In recent times, nearly 5 of every 10 middle age employees have been found to be suffering
from stress induced high blood pressure while a good number have been victims of unsafe
acts. Younger employees in their early 30s are not exempted from this ugly trend. Most
employees are beginning to rank health and safety at work more important than some fringe
benefits. If this trend is not checked, both employees and employers stand the risk of early
extinction as they both may not achieve their objectives.
Required:

(a) As a Human Resource Professional who is responsible for the total wellbeing of
employees in an organization, demonstrate your understanding of ten (10) measures
for reducing unsafe acts. [10 marks]
(b) Computer related ergonomic challenge is a major contributor to the above
trend. Suggest five (5) ways through which you can reduce health and
ergonomic challenges associated with the use of computer at work. [5 marks]

[Total = 15 marks]

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QUESTION 5

A well-managed and effective compensation and benefits system delivers measurable

organizational benefits and ultimately drives business results.

Required:

As a shortlisted candidate for the role of Compensation Specialist in a medium size

manufacturing firm, you are required to:
(a) Demonstrate your understanding of at least eight (8) deliverables of a good
compensation policy. [8 marks]
(b) Discuss at least seven (7) factors that determine employees’ compensation
and benefits.
[7 marks]

[Total = 15 marks]
QUESTION 6:

Employers should pay more attention to exit process of any employee than they pay to
recruitment process.
(a) Why? [5 marks]
(b) How? [8 marks]
(c) Would you be right to use termination and dismissal interchangeably?
Why? [2 marks]
[Total = 15 marks]

QUESTION 7
‘He that comes to equity must come with clean hands’. This quote strongly suggests that
professionals must be ‘above board’ and be seen to be so by all stakeholders. HR
professionals, being managers of the most valuable asset of organizations must therefore be
fair and firm in every situation.

Required:
In the light of the above, highlight and explain ten (10) actions that may cause any HR
Professional to face Professional Conduct and Ethics Disciplinary Panel [15 marks]

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