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9609 · 2.1.1

Purpose and roles of HRM — practice questions

Practice and worked examples for 9609 Purpose and roles of HRM. Short previews only — attempt the full question in MarkScheme against the official scheme.

Worked example 1

A fast-growing online retailer struggles with delivery delays and customer complaints. Explain two HRM roles that could help.

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1. Recruitment & selection: Hire more delivery drivers and warehouse staff with reliable track record; reduce bottlenecks affecting operations (4.1).

2. Training & development: Induction and customer service training for new hires; on-the-job coaching to improve picking accuracy — links to quality (9.2) and brand reputation.

Also consider workforce planning to forecast peaks (e.g. holidays) and motivation (2.2) to reduce turnover of trained staff.

Worked example 2

ConnectWell, a call centre with 200 employees, has an annual staff turnover rate of 40%. The cost to replace each employee is $2,500. The HRM department proposes a new training program costing $80,000, which it predicts will reduce the turnover rate to 25%. Calculate the net financial benefit of this program in its first year.

Show solution outline

Step 1: Calculate the current annual cost of staff turnover. Number of employees leaving = 200 employees × 40% = 80 employees. Current annual cost = 80 employees × 2,500=2,500 = 200,000.

Step 2: Calculate the projected annual cost of staff turnover after training. Projected number of employees leaving = 200 employees × 25% = 50 employees. Projected annual cost = 50 employees × 2,500=2,500 = 125,000.

Step 3: Calculate the gross financial saving from reduced turnover. Gross saving = Current cost - Projected cost Gross saving = 200,000−200,000 - 125,000 = 75,000.75,000.

Step 4: Calculate the net financial benefit of the training program. Net benefit = Gross saving - Cost of training program Net benefit = 75,000−75,000 - 80,000 = -5,000.5,000.

Conclusion: The program has a net financial cost of $5,000 in the first year. HRM would need to justify it with other long-term or non-financial benefits, such as improved productivity or customer satisfaction.

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