Description
Organization Behaviour & HRM
Dec 2026 Examination
Q1 At Velocity Retail, high staff turnover and disengagement among younger employees prompted a review of compensation and benefits. Traditional HRM approaches – standard pay grades and infrequent recognition – failed to engage a digitally-savvy, diverse workforce. Management requested an HR-driven strategy that rewards innovation, links incentives to company performance, and supports talent retention in a competitive market. They sought an approach that moves beyond routine administration to strategically align rewards with business outcomes. Using strategic HRM frameworks, how can Velocity Retail reform its compensation and rewards systems to drive employee engagement, incentivize innovation, and retain top talent in a dynamic and diverse environment? (10 Marks)
Ans 1.
Introduction
Velocity Retail is losing its younger employees fast. Standard pay grades and rare recognition no longer hold this workforce. A digitally-savvy, diverse team expects something different. Strategic HRM offers Velocity Retail a real way to fix this, not just another policy update. High turnover is not a minor HR statistic here. It is a direct signal that the reward system has fallen out of step with the people it is meant to motivate. Management already senses this, which is why they are asking for a strategic fix, not a routine payroll adjustment. The real question is not
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Q2 (A) A startup’s leadership team is evaluating the role of organizational culture in fostering innovation and adaptability. They are debating whether to adopt a highly structured, rule-based environment or to create a more flexible, team-oriented culture that values employee autonomy, emotional intelligence, and open communication. Their concern is balancing the need for consistency and control with the potential for creativity and rapid decision-making. Evaluate the implications of adopting a highly structured versus a flexible, team-oriented organizational culture for innovation and adaptability in the startup context. (5 Marks)
Ans 2(A).
Introduction
A startup’s culture choice right now will shape its next five years. Structure promises consistency. Flexibility promises speed and creativity. This leadership team must weigh both carefully before committing. Culture is not a soft, background detail at a startup like this one. It directly shapes how fast ideas move, how safely people can disagree, and how quickly the company can adapt when conditions change. Choosing wrong does not just slow growth, it can
Q2 (B) A global pharmaceutical company is piloting a project to improve interdepartmental collaboration through mixed teams of research, marketing, and operations staff. Early results show performance varies: some teams innovate rapidly, while others face persistent conflicts based on role-based identities, personal values, and communication styles. The HR director is considering interventions such as training on personality awareness and structured attitude modification programs. Evaluate the potential effectiveness and limitations of attitude modification and personality-awareness programs in improving interdepartmental collaboration in this context. (5 Marks)
Ans 2(B).
Introduction
Mixed teams at this pharmaceutical company are producing mixed results. Some innovate quickly together. Others stay stuck in conflict. Attitude and personality differences sit at the center of this gap. This split is not random or simply a matter of bad luck in team composition. It reflects real, predictable differences in how research, marketing, and operations staff think,
