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ACCA paper 1 3 2002 question


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

This question is compulsory and MUST be

Section B

FOUR questions ONLY to be answered

Paper 1.3

Managing People

Section A – This ONE question is compulsory and MUST be attempted


The supermarket chain ‘Food is Us’ has decided to tackle prejudice and discrimination in all its stores by establishing
a policy applicable to all its stores. As part of this, it is challenging all employees, especially managers, to examine
their attitudes towards people of a different race, sex and ability.
The reasons for introducing the policy are threefold. Plainly there is legislation on discrimination which must be
complied with if the company is to avoid the risk of legal action against it. Also, from a marketing point of view, ‘Food
is Us’ wish to be identified with its customer base by reflecting the racial diversity of the environments in which it
operates. Most positively, the company wants to develop a workforce which can reflect sufficient diversity not only to
avoid risk and to maintain its current market position, but also produce the initiatives which will develop the company
in a successful and sustained manner.
During the course of the coming year, all store employees will be expected to attend an awareness-raising training
programme. This programme is intended to help employees explore their own attitudes and highlight any prejudices
that these employees might have.
The personnel director, Anne Healey, told shop operatives ‘we want to make all our front line employees who deal
closely with the members of the public aware of any subconscious prejudices that they might have.’
‘It is very difficult to quantify the benefits of such specialist training, but it is one of our corporate principles that all
people are treated fairly by employees, whether they are customers or work colleagues,’ she added.
Initially small groups of employees will attend sessions to raise awareness. These sessions, to be held in-store, will
take place during time already set aside for staff training and development.
The new policy is to be an extension of ‘Food is Us’ current equal opportunities scheme for managers. So far more
than 1500 managers have attended one day awareness-raising courses over the past 18 months.
The same course is to be revised and updated following feedback from previous participants and will also be extended
to include senior executives for the first time.
With reference to the above scenario:
(a) Equal opportunities encompass many features. For ‘Food is Us’

What would be the main features of a sex discrimination policy?

(10 marks)

(ii) What would be the main characteristics of a race relations policy?

(6 marks)

(b) Why should an organisation like ‘Food is Us’ have an equal pay policy?

(6 marks)

(c) What are the key points of a disability discrimination policy?

(8 marks)

(d) What is the difference between an equal opportunities policy and a managing diversity initiative within an
(10 marks)
(40 marks)


Section B – FOUR questions ONLY to be attempted

In seeking organisational success, some managers are adopting a ‘Theory Z’ approach to managing.
(a) Describe the characteristics of an organisation which uses a ‘Theory Z’ approach.
(b) Are the ideas of ‘Theory Z’ universally applicable?

(10 marks)
(5 marks)
(15 marks)


An organisation is recruiting additional staff and has decided to compare the benefits of appointing existing internal
staff with that of appointing external candidates.
(a) Define and describe the advantages of internal promotion.

(5 marks)

(b) Define and describe the advantages of external recruitment.

(5 marks)

(c) Describe three factors that should be taken into account when deciding upon whether to use recruitment
(5 marks)
(15 marks)


Modern business organisations require trained employees, but individuals approach learning in different ways.
(a) Briefly describe the four stages in the experiential learning cycle.

(4 marks)

(b) Describe the four learning styles identified by Honey and Mumford and their implications for training
(11 marks)
(15 marks)


Motivation is fundamental to the task of management.
(a) What is meant by the term ‘process theory’ of motivation?

(5 marks)

(b) What is meant by the ‘equity theory’ of motivation?

(5 marks)

(c) Briefly describe the response an individual might have to feelings of negative inequity.

(5 marks)
(15 marks)




A key part of an accountant’s job is communicating information to others.
(a) Explain the importance of good communication.

(5 marks)

(b) List five possible barriers to good communication.

(5 marks)

(c) Describe how these barriers to communication can be overcome.

(5 marks)
(15 marks)

End of Question Paper


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