human resource management 2001 2005

8/8/2019 Human Resource Management 2001 2005

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HUMAN RESOURCE MANAGEMENT-2001

Attempt any five questions Total 100 marksAll questions carry equal marksAnswers should be in sufficient detail with case examples. __________________________________________________________________________________________________________

Q1. What steps should be a Human Resource Managers take to make a change managementprogramme successful?

Ans 1. Management is said to be an agent of change. In order to make a change managementprogramme successful the HR Manager has to implement the following steps:

1. Participation of Employees: Before introducing any change the employees should be consultedand the purpose of change should be made known to them. Sufficient time should be given fordiscussing the pros and cons to the employees.

2. Planning for Change: The change should be planned by the Management. Employees shouldget an opportunity for planning and installing the change. This will help the group affected toaccept and understand the need for change.

3. Protecting Employees Interest: Management should ensure that employees are protectedfrom economic loss, loss in status or personal dignity.

4. Group Dynamics: Group dynamics refers to the ever changing interactions and adjustments inthe mutual perceptions and relationships among members of the groups. Such associations arepowerful instruments which facilitates or inhibit adaptation to change. The management has topositively articulate such groups.

5. Cautious and Slow Introduction: The HR manager should cautiously and slowly introducechange. He should not suddenly and abruptly introduce change. He must aim bring aboutawareness of change and construct an attitude of welcoming change. Change must be introducedin sequential parts, the results must be reviewed and required adjustments have to be if required.

6. Positive Motion: The HR Manager should use the policy of positive motivation to counteractnegative resistance. Proper training and technical knowledge should be imparted to theemployees. The leadership style would be supportive and human oriented.

7. Sharing the Benefits of Change: Any change whether technical, social or economic will leasresisted by the employees if the management permits the employees to share the benefits whichwill arise out of change.

8. Training and Development: Based on the change the job should be redesigned. Managementshould train the employees before hand and prepare the employees to invite change. Normallytrained and developed employees will not resist change. They would feel empowered with theirenriched skills and knowledge.

9. Career Planning and Development: The HR Manager should plan careers of employees, movethem to higher levels and develop them.

10. Organisation Development: HR Manager should also look into the psychological andbehavioural areas of the employee with a view to achieve organizational effectiveness. Employeeswith enriched behaviour welcome change.

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Q2. What are the special problems faced in an Indian company to make the HumanResource Management function more successful?

Ans 2. Indian Companies basically face two factors viz Internal and External that pose a problem inthe smooth functioning of HRM function.

External Factors.

1. Government policies: Policies of the government like labour policy, industrial relations policypolicy towards reserving certain jobs for certain communities.

2. Level of Economic Development: Level of economic development determines the level of HRDin the country and thereby the supply of human resources in the future in the country.

3. Business Environment: External business environmental factors influence the volume and mixof production thereby the future demand for human resources.

4. Information Technology: Technology has made an amazing shift in the way to conducbusiness. These shifts include business process re-engineering, supply chain management etc. It

also reduces obsolete machinery and traditional human resources. However in latter stages iteliminates many categories of labour and reduces existing human resources.

5. Level of Technology: Level of technology determines the kind of human resources required.

6. International factors: International factors like the demand for and supply of human resourcesin various countries.

Internal factors:

1. Company Strategies: Company policies and strategies relating to expansion, diversification,alliances etc. determine the human resources demand in terms of quality and quantity.

2. Human Resource Policies: Human resource policies of the company regarding quality ofhuman resources, compensation level, quality of worklife etc.

3. Job Analysis: Fundamentally human resources plan is based on job analysis. Job descriptionand job specification.

4. Time Horizons: Companies in an unstable competitive environment can plan for only shorttern range. They have to face new competitors. Rapid change in socio and economicconditions. Small organization size, poor management practices. Unstable product/servicedemand patterns.

5. Company’s Production/Operations Policy: Company’s policy regarding how much to

produce and how much to buy from outside to prepare a final product influences the numberand kind of people required.

6. Trade Unions: Influence of trade unions regarding the number of working hours per week,recruitment sources etc. affect human resource management function.

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Q.3. What are the different Internal and External sources of recruitment? Explain themerits and demerits of each.

Ans. 3. The sources of recruitment are broadly divided into internal sources and external sourcesconsisting of the following:

Internal sources of Recruitment:

1. Present Permanent Employees : Organizations consider the candidates from this source forhigher level of jobs due to availability of most suitable candidates for jobs relatively or equally toexternal sources, to meet the trade union demands and due to the policy of the organization tomotivate the present employees.

2. Present temporary/casual Employees: Organizations find this source to fill the vacanciesrelatively at the lower level owing to the availability of suitable candidates or trade union pressures orin order to motivate them on present job.

3. Retrenched or Retired Employees: Employees retrenched due to lack of work are givenemployment by the organization due to obligation, trade union pressure etc. Sometimes they are re-employed by the organization as a token of their loyalty to the organization or to postpone someinterpersonal conflicts for promotion.

4. Dependents of Deceased, Disabled, retired and present employees: Some organizationsfunction with a view to developing the commitment and loyalty of not only the employee but also hisfamily members.

5. Employee Referrals: Present employees are well aware of the qualifications, attitudesexperience and emotions of their friends and relatives. They are also aware of the job requirementsand organizational culture of their company. As such they can make preliminary judgment regardingthe match between the job and their friends and relatives.

External Sources of Recruitment

1. Campus Recruitment: These candidates are directly recruited by the Co; from theicollege/educational institution. They are inexperienced as far as work experience is concerned.

2. Private Employment Agencies/Consultants: Public employment agencies or consultants likeABC Consultants in India perform recruitment functions on behalf of a client company by chargingfees. Line managers are relieved from recruitment functions and can concentrate on operationalactivities.

3. Public Employment Exchanges: The Government set up Public Employment Exchanges in the

country to provide information about vacancies to the candidates and to help the organization infinding out suitable candidates. As per the Employment Exchange act 1959, makes it obligatoryfor public sector and private sector enterprises in India to fill certain types of vacancies throughpublic employment exchanges.

4. Professional Organizations: Professional organizations or associations maintain complete biodata of their members and provide the same to various organizations on requisition. They act asan exchange between their members and recruiting firm.

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5. Data Banks: The management can collect the bio-data of the candidates from different sourceslike Employment Exchange, Educational Training Institutes, candidates etc and feed them in thecomputer. It will become another source and the co can get the particulars as and when required.

6. Casual Applicants: Depending on the image of the organization its prompt responseparticipation of the organization in the local activities, level of unemployment, candidates applycasually for jobs through mail or handover the application in the Personnel dept. This would be a

suitable source for temporary and lower level jobs.

7. Similar Organizations: Generally experienced candidates are available in organizationsproducing similar products or are engaged in similar business. The Management can get potentiacandidates from this source.

8. Trade Unions: Generally unemployed or underemployed persons or employees seeking changein employment put a word to the trade union leaders with a view to getting suitable employmentdue to latter rapport with the management.

9. Walk In: The busy organization and rapid changing companies do not find time to performvarious functions of recruitment. Therefore they advise the potential candidates to attend for aninterview directly and without a prior application on a specified date, time and at a specified

place.

10. Consult In: the busy and dynamic companies encourage the potential job seekers to approachthem personally and consult them regarding the jobs. The companies select the suitablecandidates and advise the company regarding the filling up of the positions. Head hunters are alsocalled search consultants.

11. Body Shopping: Professional organizations and the hi-tech training develop the pool of humanresource for the possible employment. The prospective employers contact these organizations torecruit the candidates. Otherwise the organizations themselves approach the prospectiveemployers to place their human resources. These professional and training institutions are calledbody shoppers and these activities are known as body shopping. The body shopping is usedmostly for computer professionals. Body shopping is also known as employee leasing activity.

12. Mergers and Acquisitions: Business alliances like acquisitions, mergers and take over help ingetting human resources. In addition the companies do also alliances in sharing their humanresource on adhoc basis.

13. E_recruitment: The technological revolution in telecommunications helped the organizations touse internet as a source of recruitment. Organizations advertise the job vacancies through theworld wide wed (www). The job seekers send their applications through e-mail using the internet.

14. Outsourcing: Some organizations recently started developing human resource pool by employingthe candidates for them. These organizations do not utilize the human resources; instead theysupply HRs to various companies based on their needs on temporary or ad-hoc basis.

Merits and Demerits of Internal Sources of Recruitment

Sr. Merits of Internal Sources of Recruitment

Demerits of Internal Sources of Recruitment

1. Motivates present employees when they areupgraded internally.

Trade union pressure may not always give theright candidate for the job. The managementmay have to consider some concessions.

2. Retrenched workers get an opportunity towork again.

Management’s gets a chance to postponepromotion due to interpersonal conflicts.

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3. Dependents of the deceased get a jobeasily

Excessive dependence on this source results inin-breeding, discourages flow of new blood intothe organization.

4. Morale of employees is improved The organization becomes dull withoutinnovations, new ideas, excellence andexpertise.

5. Loyalty, commitment, security of presentemployees can be enhanced

6. Cost of recruitment, training, induction,orientation, etc is reduced

7. Trade unions can be satisfied.

Merits and Demerits of External of Recruitment

Sr. Merits of External Sources of Recruitment

Demerits of External Sources of Recruitment

1. The candidates with skill, knowledge talentetc is generally available.

Campus recruited employees lack workexperience.

2. Cost of employees can be minimized. Cost of recruitment is high and there is no

confidentiality.3. Expertise, excellence and experience inother organizations can be easily broughtinto the organization.

Specified vacancies have to be filled bycandidates referred by employment exchangeswhich do not allow other candidates to beeligible.

4. Existing sources will also broaden theirpersonality.

5. Human Resource mix can be balanced6. Qualitative human resource benefits the

organization in the long run.7. Reduction in time for recruitment8. Increase in the selection ratio i.e. recruiting

more candidates.

9. HR professionals can concentrate onstrategic issues.

Q. 4. What is Human Resource Planning? What is the purpose and what are its importantelements?

Ans. 4. Human resource planning means deciding the number and type of the human resources requiredfor each job, unit and the total company for a particular date in order to carry out organizationalactivities. It is a process by which an organization moves from its current manpower position to itsdesired manpower position. It is influenced by the strategic management of the co.

STRATEGY HUMAN RESOURCE PLAN NING

Expansion Additional human resources of existing categories.Diversification Additional human resources of different categoriesAcquisitions and Mergers Reduction of human resources of managerial positionsRetrenchment Reduction of human resources of almost all the

categories through VRS and other meansLow Cost Leadership Reduction of human resourcesDifferentiation Strategy Additional human resources of different categories.

Purpose of Human Resource Planning.

- To recruit and retain the human resource of required quantity and quality.

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- To foresee the employee turnover and make the arrangements for minimizing turnover andfilling up of consequent vacancies.

- To foresee the impact of technology on work.- To meet the needs of the programmers of expansion, diversification etc.- To improve the standards, skill knowledge, ability discipline etc.- To access the surplus or shortage of human resources and take measures accordingly.- To maintain congenial industrial relations by maintaining optimum level and structure of

human resources.- To minimize imbalances caused due to non-availability of human resources of the righ

kind, right number in the right time and right place.- To make the best use of its human resources- To estimate the cost of human resources.

Important Elements of Human Resource Planning.

- Analyzing Corporate and unit level strategies- Demand Forecasting: Forecasting the overall human resources requirements in accordance

with the organizational plans.- Supply Forecasting: Obtaining the data and information about the present inventory o

human resources and forecast the future changes in the human resources inventory.- Estimating the net human resources requirements

- In case of future surplus, plan for re-deployment, retrenchment and lay off.- In case of future deficit, forecast the future supply of human resources from all sources

with reference to plans of other companies.- Plan for recruitment, development and internal mobility if future supply is more than or

equal to net human resources requirements.- Plan to modify or adjust the organizational plan if future supply is more than or equal to net

human resource requirements.- Plan to modify or adjust the organizational plan if future supply will be inadequate with

reference to future net requirements.

Q5a. What are the merits and demerits of incentive based schemes of remuneration?Ans 5.a.

Sr. Merits of Incentive based Remuneration Demerits of Incentive based Remuneration1. It is accepted as a sound technique for the

achievement of greater productivityIt is not considered a very good scheme incountries in the West where it is mostlyprevalent.

2. For employers the need of vigoroussupervision is reduced.

It tends to create tension among differentworkers in an organization.

3. Workers have the advantage of working in arelatively calm atmosphere because of minimum vigilance on them by the superior.

A poor performer will earn very little.

4. The incentive is directly linked with theproductivity of the worker.

Tensions caused by incentive schemes wouldgive rise to internal relations problems whichwould be a serious matter of concern for themanagement.

5. The more the worker produces the more heearns.

The tension created would eventually affectthe total output.

6. Higher productivity is an importantperquisite of economic development.

A great sense of understanding the problemsof human relations and that of engineering isrequired for the smooth administration of suchincentive schemes.

Q 5.b. Explain what is Job Evaluation?

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Ans. 5b. Job Evaluation is the process of determining by observation and study and reporting pertinentinformation relating to the nature of a specific job. It is the determination of the tasks which comprise the job and of the skills, knowledge, abilities and responsibilities of the worker of a successful performanceand which differentiates one job from all others. It is concerned with arrangement of jobs in order ofrelative value within a given organization. Once jobs have been evaluated it is then possible to harness awage or salary structure to the established hierarchy.

Q. 6a. What steps should an organization take to make training more effective?

Ans 6a. The important steps for a training to be effective are as follows:

1. Preparing the Instructor: The instructor must know both the job to be taught and how to teachit. The job must be divided into logical parts so that each can be taught at a proper time withoutthe training losing plan. For each part one should have in mind the desired technique oinstruction i.e. whether a particular point is best taught by illustration, demonstration orexplanation.

a) A serious and committed instructor must :a. Know the job or subject he is attempting to teachb. Have the aptitude and ability to teachc. Have willingness towards the professiond. Have a pleasing personality and capacity for leadershipe. Have the knowledge of teaching principles and methodsf. Be a permanent student, in the sense that he should equip himself with the latest concepts

and knowledge.

2. Preparing the Trainee: The trainee should be made at ease. Most people are somewhat nervouswhen approaching an unfamiliar task. Though the instructor may have executed the trainingprogramme many times he or she should never forget the newness to the trainee. The quality ofempathy is a mark of a good instructor.

3. Getting ready to Teach : This stage of the programme is class hour teaching involving thefollowing activities :

- Planning the programme- Preparing the instructors outline- Too much material much be avoided- The session should move logically- Each item should be discussed in depth.- Repetition should be in different words.- The material should be taken from standardized text- When the standardized text is not available then the programme should be developed

based on group approach consisting of employer, skilled employees, supervisors, trade

union leaders and others familiar with the job requirements.- Teach about the standard for trainee like quality, quantity, waste or scrap, ability to workwithout supervision, knowledge or procedure, safety rules, human relations etc.

4. Presenting the Operation: There are various alternative ways of presenting the operations viz.explanation, demonstration. An instructor mostly uses these methods of explanation. In additionone may illustrate various points through the uses of picture, charts diagrams and other trainingaids.

5. Try out the Trainees Performance: As a continuation of the training sequence, the traineeshould be asked to start the job or operative procedure. Some instructors prefer that the trainee

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explains each step before doing it, particularly if the operation involves any danger. The traineethrough repetitive practice shall acquire more skills.

6. Follow Up: The final step in most training procedures is the follow-up when people are involvedin any problem or procedure it is unwise to assume that things are always constant. Follow up canbe adapted to a variable re-enforcement schedule as suggested in the discussion of learningprinciples. Every training programme should have a follow up to improve on the future

programmes.

Q 6b. Critically examine Herzberg’s two factor theory.

Ans. 6b. Herzberg Theory of motivation deals with basically two factors.

DISSATISFIERS: The first group (factor) consists of needs such as company policy and administration,supervision, working conditions, interpersonal relations, salary, status, job security and personal life. These factors he called “DISSATISFIERS” and not motivators. Their presence or existence does nomotivate in the sense of yielding satisfaction, but their absence would result in dissatisfaction. They arealso known as hygiene factors.

SATISFIERS: The second group are the”satisfiers’ in the sense that they are motivators which arerelated to job content. It includes factors of achievement, recognition, challenging work, advancementand growth in job. Their presence yields feeling of satisfaction or no satisfaction but not dissatisfaction.

Another WAY to present the above question

Ans 6b. Herzberg’s Classification of Maintenance and Motivational Factors

Sr.

Maintenance Factors orDissatisfiers or Hygiene Factors

Motivational Factors or Satisfiers

1. Job Content Job Content2. Extrinsic Factors Intrinsic Factors3. Company Policy and Administration Achievement4. Quality of supervision Recognition

5. Relations with superiors Advancement6. Peer Relations Work Itself 7. Relations with subordinates Possibility of Growth8. Pay Responsibility9. Job security10.

Work Conditions

11.

Status

Q7. What is the role of a constructive and positive Trade Union?

Ans 7. The Role of a constructive and positive Trade Union

- Achieving higher wages and better working and living conditions for the members- Acquiring the control of industry by worker- Minimizing the helplessness of the individual workers by making them stand collectively

and against victimization and injustice of the employers- Raising the status of the workers as partners of the industry and citizens of society by

demanding the increasing share for the workers in the \management of industriaenterprises

- Providing a worker self confidence and self esteem- Imbibing sincerity and discipline in workers.- To protect the right to be consulted on all matters affecting the workers interest.

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Besides the above functions of the trade unions the national Commission of Labour has entrusted thefollowing responsibilities on to the trade unions which they execute:

- Promotion of national integration- Instilling in their members a sense of responsibility towards the industry and the

community- Generally influencing the socio-economic policies of the community through active

participation in their formulation at various levels.

The functions of the trade union can be divided into 5 categories. Viz

a. Militant or Intra Mural Functions : these functions include protecting the workers interest i.ehike in wages, providing more benefits, job security etc. through collective bargaining and directaction such as strikes, gheraos etc.

b. Fraternal Or Extra Mural Functions : These functions include providing financial andnonfinancial assistance to workers during the period of strikes, lock-outs, extension of medicafacilities, during sickness and casualties, provision of education, recreation, recreational andhousing facilities, provision of social and religious benefits etc.

c. Social Functions: These functions include carrying out social service activities, discharging sociaresponsibilities through various sections of the society like educating the customers etc.

d. Political Functions: These functions include affiliating a union to a political party, helping thepolitical party in enrolling members, collecting donations, canvassing during the election period,seeking help of political parties during the strikes and lockouts.

e. Ancillary Functions: Ancillary functions of trade include Communications to its membersWelfare activates like acquiring of house sites, construction of houses, and establishment of cooperative societies. Educating its members and their family. Arranging to conduct researchprogrammes. Analyzing data for collective bargaining, preparing notes for union officials, for courtcases etc. They also arrange to analyze macro data about the economy, industry and differentsectors etc.

Q8. Write short notes on any three:a. Identification of training needsb. Job Rotationc. Principle of Natural justiced. Workers participation in Management

Ans.8a. Identification of training needs: Training needs are identified on the basis of organizationaanaylsis, job analysis and manpower analysis. Training needs are those aspects necessary to perform the job in an organization in which employee is lacking attitude/aptitude, knowledge and skills. Basicallythere are two type of analysis done to identify the training. One is the Organizational Analysis and theother Individual Analysis.

Training needs = Job and organizational requirement-Employees specifications

Identification of Training NeedsSr. Group or Organizational Analysis Individual Analysis1. To identify Organizational goals and

objectivesPerformance appraisal

2. Personnel/skill inventories Work sampling3. Organizational Climate indices Interviews4. Efficiency indices Questionnaires5. Exit interviews Attitude survey

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6. MBO or work planning systems Training progress7. Quality circles Rating scales8. Customer survey/satisfaction data Observation of behavior9. Consideration of current and projected

changes

b. Job Rotation: This type of training involves the movement of the trainee from one job to another.The trainee received job knowledge and gains experience from his supervisor or trainer in each of theDifferent job assignments. Though this method of training is common in training managers for generalManagement positions, trainees can also be rotated from job to job in workshop jobs. This methodGives an opportunity to express his own ideas.

c. Principle of Natural Justice: It is a fair practice of decision making and running the organization.- All decisions are transparent- All decisions are adequately documented- A review process exits for affected employees, with agencies utilizing existing or revised

Grievance processes to enable employees to raise issues arising from the change process.- Decision making takes into account both the individual and employers needs- Relevant and current policy and procedures are well documented and accessible by employees.

d.Workers Participation in Management: The concept of WPM is considered as a mechanism whereWorkers have a say in the decision making process of an enterprise. The concept crystallizes theConcept of industrial democracy and indicates an attempt on the part of an employer to build hisEmployees into a team which works towards the realization of a common objective. It is a mental andEmotional involvement of a person in a group situation which encourages him to contribute to goalsand share responsibilities in them.

The main objective of WPM in management include

- To promote increased productivity for the advantage of the organization, workers andsociety at large.

- To provide a better understanding to employees about their role and place in the processof attainment of organizational goals.

- To satisfy the workers social and esteem needs- To strengthen labour management co-operation and thus maintaining industrial peace and

harmony.- To develop social education for effective solidarity among the working community and fo

tapping latent human resources.- An ideological point of view to develop self management in industry- To build the most dynamic human resource- To build the nation through entrepreneurship and economic development.

Forms of WPM include works committees, Joint Management councils, Joint Councils and ShopCouncils.

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Attempt any five questions Total 100 marksAll questions carry equal marksAnswers should be in sufficient detail with case examples.

Q1. What are the challenges before the Human Resource function in today’s Indian businessscenario?

Ans 1. A goal seeking organizations especially one that seeks improvement over the current situation is achallenge, taking organization. When many such goals are pursued tremendous internal pressures someof them conflicting, tend to be generated. Unless the organization develops mechanisms for coping withthese self-generated pressures, it may face major failure and suffer disastrous retreats from its goal.

Human Resource function cannot be performed in a vacuum. There are many challenges that it has toface to survive. All these challenges are discussed below.

1. Technological factors: Just as necessity is the mother of invention competition and a host ofother reasons are responsible for the rapid technological changes and innovations. As aconsequence of these changes, technical personnel, skilled workers, computer operators andmachine operators are increasingly required while the demand for other categories of employershas declined. Hence procurement of skilled employees and their increase in numbers to match thechanging job requirements has become a complicated task.

2. Human Resource in the Country: The structure, values and the level of education of humanresource in a country influence much of the Human Resource function. The influence of manpowerin the country can be studies through the changes in structure of employment.

a. Change in the Structure of Employment: The structure of employment in an organizationchanges with the entrance of workforce with different backgrounds (Social economic, regioncommunity, sex, religion, traditions culture etc). There has been a significant change in thestructure of employment with the entry of 1) candidates belonging to the schedule castesschedules tribes and backward communities. 2) more female employees, due to increased careerorientation among women to the suitability of women for certain jobs and to women becomingmore acclimatized to the working climate and higher level of commitment. 3) The workforceconsists of different regions but due to increased transportation facilities and mobile character ofpeople. These changes in workforce are a challenge and a complicated task of HR function. It hasto deal with employees with different backgrounds.

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3. Changes in employee Roles and their Values: Earlier the management could totally controits employees and get the desired output. Today the employees have to be considered as apartner in the organization. Changing structure of workforce has led to the introduction of newvalues in organization. Among these are moves 1) emphasis on quality of life rather than quantityii) equality and justice for employees over economic efficiency iii) participation over authority. iv)Workers now prefer flexible working hours to fixed time schedule. v) Level of education in recentyears is comparatively very higher. Increased formal education has led to the change of attitudeof the employees.

4. Changing demands of employer: changes always are not on the side of employeesOrganizations also undergo changes and consequently their demands on employees will alsochange. The information technological revolution and neck to neck marketing competition of mostof the organizations due to globalization demand that the existing employees adopt to the ever-changing work situation and learn new skills, knowledge etc to cope with the new changes.

5. Government and Legal factors: Until 1940 the government was not involved or interestedregarding the problems of labor or industry. But the need for Govt., interference arose out of thebelief that Government is the custodian of industrial and economic activities. The role of thegovernment in business has after 1991 with the announcement of economic liberalizationHowever awareness of legislations is very important like the Factory Act, 1948, Trade Union act1962, Payment of wages Act 1936, The Minimum Wages Act 1923, The Payment of Bonus Act

1965, The Employment Exchange Act, Standing Order Act 1946, Maternity Benefit Act 1961, and The Apprentice Act 1961. All these acts if not complied with can get the organization into deeptrouble.

6. Customers: Organizations produce products or render services for the ultimate consumption useby the customer. In other words organizations depend upon customers for their survival andgrowth. Customers revolt against employees, if the services rendered are less qualitative. Thebanks face such type of challenges. Customers may develop a negative attitude towards theorganization, if it does not follow the social policies of the country. Hence the customers pose achallenge special ally in service industry.

7. Social factors: Social environment consists of class structure, mobility social roles social valuesnature and development of social institutions caste structure and occupational structure

traditions, religion culture etc. To cater to everyone’s requirement and keep them happy is a bigchallenge faced by HR today.

Q. 2.a Give a brief outline of the Human Resource Planning System.

Ans. 2a. Human resource planning means deciding the number and type of the human resources requiredfor each job, unit and the total company for a particular date in order to carry out organizationalactivities. It is a process by which an organization moves from its current manpower position to itsdesired manpower position. It is influenced by the strategic management of the co.

STRATEGY HUMAN RESOURCE PLANNING

Expansion Additional human resources of existing categories.Diversification Additional human resources of different categoriesAcquisitions and Mergers Reduction of human resources of managerial positionsRetrenchment Reduction of human resources of almost all the

categories through VRS and other meansLow Cost Leadership Reduction of human resourcesDifferentiation Strategy Additional human resources of different categories.

Purpose of Human Resource Planning.

- To recruit and retain the human resource of required quantity and quality.- To foresee the employee turnover and make the arrangements for minimizing turnover and

filling up of consequent vacancies.

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- To foresee the impact of technology on work.- To meet the needs of the programmers of expansion, diversification etc.- To improve the standards, skill knowledge, ability discipline etc.- To access the surplus or shortage of human resources and take measures accordingly.- To maintain congenial industrial relations by maintaining optimum level and structure of

human resources.- To minimize imbalances caused due to non-availability of human resources of the righ

kind, right number in the right time and right place.- To make the best use of its human resources- To estimate the cost of human resources.

Important Elements of Human Resource Planning.

- Analyzing Corporate and unit level strategies- Demand Forecasting: Forecasting the overall human resources requirements in accordance

with the organizational plans.- Supply Forecasting: Obtaining the data and information about the present inventory o

human resources and forecast the future changes in the human resources inventory.- Estimating the net human resources requirements- In case of future surplus, plan for re-deployment, retrenchment and lay off.- In case of future deficit, forecast the future supply of human resources from all sources

with reference to plans of other companies.- Plan for recruitment, development and internal mobility if future supply is more than or

equal to net human resources requirements.- Plan to modify or adjust the organizational plan if future supply is more than or equal to net

human resource requirements.- Plan to modify or adjust the organizational plan if future supply will be inadequate with

reference to future net requirements.

Q2. b. What is Job Evaluation?

Ans. 2b. Job Evaluation is the process of determining by observation and study and reporting pertinentinformation relating to the nature of a specific job. It is the determination of the tasks which comprise the job and of the skills, knowledge, abilities and responsibilities of the worker of a successful performance

and which differentiates one job from all others. It is concerned with arrangement of jobs in order ofrelative value within a given organization. Once jobs have been evaluated it is then possible to harness awage or salary structure to the established hierarchy.

Q3 a. Steps to overcome Resistance to Change.Ans 3. a. Although change is inevitable it is a common experience that employees resist change whetherin the context of their pattern of life or in the context of their situation in the organization. The best eg. Isresistance of employees to computerization. Change of and type requires readjustment. Man alwaysfears the unknown and a change represents the unknown.

Management is said to be an agent of change and has to introduce change successfully. Managementhas to take the following steps to implement change successfully.

1. Participation of Employees: Before introducing any change the employees should beconsulted and the purpose of change should be made known to them. Sufficient timeshould be given for discussing the pros and cons to the employees.

2. Planning for Change: The change should be planned by the Management. Employeesshould get an opportunity for planning and installing the change. This will help thegroup affected to accept and understand the need for change.

3. Protecting Employees Interest: Management should ensure that employees areprotected from economic loss, loss in status or personal dignity.

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4. Group Dynamics: Group dynamics refers to the ever changing interactions andadjustments in the mutual perceptions and relationships among members of thegroups. Such associations are powerful instruments which facilitates or inhibitadaptation to change. The management has to positively articulate such groups.

5. Cautious and Slow Introduction: The HR manager should cautiously and slowlyintroduce change. He should not suddenly and abruptly introduce change. He must aim

bring about awareness of change and construct an attitude of welcoming changeChange must be introduced in sequential parts, the results must be reviewed andrequired adjustments have to be if required.

6. Positive Motion: The HR Manager should use the policy of positive motivation tocounteract negative resistance. Proper training and technical knowledge should beimparted to the employees. The leadership style would be supportive and humanoriented.

7. Sharing the Benefits of Change: Any change whether technical, social or economicwill least resisted by the employees if the management permits the employees to sharethe benefits which will arise out of change.

8. Training and Development: Based on the change the job should be redesignedManagement should train the employees before hand and prepare the employees toinvite change. Normally trained and developed employees will not resist change. Theywould feel empowered with their enriched skills and knowledge.

9. Career Planning and Development: The HR Manager should plan careers oemployees, move them to higher levels and develop them.

10. Organisation Development: HR Manager should also look into the psychological andbehavioural areas of the employee with a view to achieve organizational effectivenessEmployees with enriched behaviour welcome change.

3.b. Write short notes on different methods of on the job training.

Ans 3. b. On-the-job training, also known as job instruction training is the most commonly used methodUnder this method the individual is placed on a regular job and taught the skills necessary to perform the job. The trainee leans under the supervision and guidance of a qualified worker or instructor. On the jobtraining has the advantage of giving first hand in knowledge and experience under the actual workingconditions. While trainee learns how to perform a job, he is also a regular worker rendering the servicesfor which he is paid. On the job training includes job rotation, coaching, job instruction or training throughstep by step and committee assignments. a. Job Rotation: This type of training involves the movement of the trainee from one job to another.The trainee received job knowledge and gains experience from his supervisor or trainer in each of theDifferent job assignments. Though this method of training is common in training managers for generalManagement positions, trainees can also be rotated from job to job in workshop jobs. This method

Gives an opportunity to express his own ideas.

b. Coaching: the trainee is placed under a particular supervisor who functions as a coach in training theindividual. The supervisor provides feedback to the trainee on his performance and offers him somesuggestions for improvement. Often the trainee shares some of the duties and responsibilities of thecoach and relieves him of his burden. A limitation of this method is training is that the trainee may nothave the freedom or opportunity to express his own ideas.

c. Job Instruction: This method is also known as training through step by step. Under this method thetrainer explains to the trainee the way of doing jobs, job knowledge and skills and allows him to do the

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job. The trainer appraises the performance of the trainee, provides feedback information and correctsthe trainee.

d. Committee Assignments: Under the committee assignment, a group of trainees are given andasked to solve an actual organizational problem. The trainees solve the problem jointly. It developsteam work.

Q.4.a. Describe the profile of a demotivated worker.

Ans. 4.a. A demotivated worker often shows sign of low morale. Generally not noticed till it is obviously lowor when something has gone amiss. By the time the management recognizes the fact that worker isdemotivated, it is faced with one crisis or another. Perceptive managers are therefore constantly on thelook out for clues to any deterioration in the morale of the employees.

Among the more significant of the warning signals of a demotivated worker are:

1. High rate of absenteeism2. Tardinees3. High labour turnover4. Strikes and sabotage5. Lack of pride in work and

6. Wastage and spoilage7. No job satisfaction8. Many grievances9. Does not follow rules and regulations of the company.10. No Team building spirit hence contribution towards achieving organization goals is

very low.11. Increases Accidents

To curb demotivation the cause should be detected. It may be that the policies or practices of thecompany are defective, or that if executives are at fault, or that the views of those workers who aredemodulated do not match with those of the company or its executives. May the managers arecommitting a mistake and accepting it. The demotivated worker should be counseled. He should beexplained the responsibilities and rewards clearly.

4. b. Write short notes on the importance of succession planning.

Ans. 4.b. Succession planning is to identify, develop and make the people ready to occupy higher level jobsas

and when they fell vacant. Succession may be from internal employees or external people. OrganizationsAppraise employee potentialities, identify training gaps for future vacancies, develop them for higher andVaried jobs.

The scope of succession plan would be more when the organization grows steadily and employees havePotentialities to take up higher responsibilities. Successions planning practices followed by variousCompanies:

Sr. Company Succession Planning Practices Adopted1. GE Capital, Lucent

technologiesWeigh key leadership characteristics accordingly to companyculture and values

2. Eli Lilly Align succession plans with the corporate culture to create afoundation for success.

3. Clorox Use Performance Metric Tools that are aligned with corporateculture to organize top potentials

4. GE Customize pieces of the succession planning process to fitindividual business units

5. Glaxo Wellcome Conduct a division by division succession planning process6. Novartis Match succession planning and development processes to

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emerging trends in corporate culture.

Q.5a. What are the organization factors needed to support an effective performance appraisalsystem.

Ans 5.a. Performance appraisal is a method of evaluating the behaviour of employees in the work placenormally including both the quantitative and qualitative aspects of job performance. Performance refers tothe degree of accomplishment of the tasks that make up an individual’s job. It indicates how ell anindividual is fulfilling the job demands.

Every organization has to decide upon the content to be appraised before the programme is approved onthe basis of job analysis. The content to be appraised may vary with the purpose of appraisal and type andlevel of employees.

The key factor in an organization to support an effective performance appraisal system is as follows:- Organizational planning based on potentialities of human resources.- Human Resource Planning based on weakness, strengths and potentialities of humanresources.- Organizational effectiveness through performance improvement- Fixation and refixation of salary, allowances, incentives and benefits- Original placement or placement adjustment decisions- Identifying training and development needs and to evaluate effectiveness of training anddevelopment

Needs and to evaluate effectiveness of training and development programmes- Career planning and development and movement of employees

The indicators of a successful performance appraisal system at ICODE Software are:- Culture of the system- Employees fully trust the system- Employees treat the system as a means to evaluate their arrears of improvement- Employees do not see the system as a mere assessment tool- Openness and transparency in the organization

Sr. Company Performance Appraisal1. Xerox Provide a core set of metrics for use across organization2. Toyota Focus performance reviews on goals rather than numbers to

ensure employee alignment3. Federal Express Daily Performance Measurement Reporting. CEO team weekly

analysis review.4. Fed Ex Design a balanced scorecard performance measurement system

Q.5.b. Write short notes on Assessment Centre.Ans. 5.b. This method of appraising was first applied in the German Army in 1930. Later, business andindustrial houses started using this method. This is not a technique of performance appraisal by itself. Infact it is a system or organisation, where assessment of several individuals is done by various experts by

using various techniques. It includes techniques like in basket, role playing, case studies, stimulationexercises, structured in sight, transactional analysis etc.

Q.6.a. Role of a constructive trade union in meeting workers expectation and employersrequirement of higher productivity.

Ans 6.a. Role of trade union towards workers expectation:- To attain economic security. Ensuring permanent employment with higher salary and

benefits to the workers.- To improve their bargaining power and balance it that of the management. To negotiate

and monitor management decisions, regarding policy, promotions transfers, workassignment, grievance redressal and disciplinary issues.

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- To ventilate the workers grievances to the management- To inform workers views, aims, ideas and dissatisfaction/frustrations to the management- To secure protection from unexpected economic needs like illness, accidents, injury etc.- To satisfy their social needs- To satisfy their psychological needs- To satisfy their needs for belongingness.- To provide a worker self confidence- To acquire control of industry by workers- To take up welfare measures for improving the morale of the workers- To raise the status of the workers as partners of the industry and citizens of society by

demanding increasing share for the workers in the management of industrial enterprises.- Protecting the workers against victimization.- To provide housing facilities- To provide for educational, cultural and recreational facilities

Role of trade union towards employer’s requirement of higher productivity:- To place industry under national ownership and control in a suitable form.- To organize workers in such a manner as to ensure full employment and the best utilization

of its manpower, other resources and to achieve management objectives.- To establish just industrial relationships- To secure redressal of grievances without stoppage of work, by means of negotiation

conciliation and failing these arbitration and adjunction.- To make necessary arrangements for the efficient conduct and satisfactory and speedy

conclusion of authorized strikes and satyagraha.- To foster the spirit of solidarity, service, brotherhood, co-operation and mutual help among

the workers.- To develop in the workers a sense of responsibility towards the management, industry and

community.- To raise the workers standard of efficiency and discipline which in turn will help to achieve

higher productivity.- To make the workers understand the objectives of the management and accept the same

for the betterment and interest of both.

6.b. Write short notes on unfair labour practices of management.

Ans 6.b. Unfair Labour Practices: Normally prevail in an unorganized labour market and especially inthe third world countries. It includes small industries, tiny industrial units, cottage industries, shops andestablishments, hotels, restaurants, mobile business, trading unit’s taxi operator’s agriculture etcDemand for and supply of labour is normally casual and contract in nature. They do not follow anysystematic or scientific method of recruitment and selection. Candidates are, mostly employed if theyaccept low wages. Organizations normally do not design the jobs. Normally they do not provideemployee benefits, welfare measures, fringe benefits etc. The employees have no choice but accept lowwages and are governed by the employer. There is a lot of ignorance and illiteracy. Superior strength ofemployer. Weakest bargaining power of the employee. Casual nature of employment. The employersexploit the employees. Bonded Labour. Child Labour is a part of unfair labour practices.

Q7.a. What are the different forms of organizational structure.

Ans. 7a. Organisations are economic and social entities in which a number of persons performmultifarious task in order to attain common goal. These objectives are best met collectively. But it has tobe structured so as to achieve specific ends. This structure is known as an organizational structure andcan be differentiated into 3 types.

Sr. Organisational structure in1950’s

Organisational structure in1950’s

Broad Banding*(hierarchy containing smallenumber of level or grades

1. Multi layers Flat/delayered Few levels2. Manufacturing/labour Intensive Feed forward and very less Empowerment/ownership

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control3. Autocratic Team Focused Pay the person based on

Merit4. Centralized Adaptive/Mobility Horizontal reinforces5. Tightly held ownership Flexible Few Rules6. Individual contributors Decentralized Market Driven7. Narrow Responsibilities Externally focused

7.b. Distinguish between Induction and Orientation Systems.

Sr. Induction Orientation1. Introducing the new employee who is

designated as a probationer to the job, joblocation, surroundings, organization andvarious employees.

Orientation is getting familiar with the policies andpractices followed in the Company.

2. Induction is the process of receiving andwelcoming an employee when he first joins a company about the environment of the job and the organization in order tomake the new employee acquainted

The new employee has to report to the HDepartment at stipulated date and time. From thereonhe shall be guided by the HR Chief/Executive. He wilbe given brochures describing the organization’shistory, products and philosophy. Review of the

overall structure, authority structure and policies andpractices of the company.3. Gives a sense of belonging and

commitment to the new employeePersonnel/HR department will discuss companybenefits. New employee is to fill out health, tax andother relevant forms.

4. Attaching a colleague to the newemployee to reduce the new employeeanxiety.

Tour of the main building and auxiliary facilities.

5. Providing written and documentedinformation through CD/floppies.

Introduction to the workplace and the dept head andco-workers.

6. If the first impression is good then it helpsthe new employee to adjust to the workquickly and the supervisor’s time is saved

to a great extent.

Detailed discussion with the Chief Executive HRM/Dept Head about daily jobs routine and departmentpolicies and rules.

New employee on his own to get familiarized with the job.

Q 8.Write short notes on any three.a) Job Description b) Training Needs Analysis c) Employee Manuald) Organization Downsizing e) Team Effectiveness

Ans 8a. Job Description: Job description is an important document which is basically descriptive innature and contains a statement of job analysis. It serves to identify a job for continuation by other jobanalysts. It tells us what should be done, why it should be done and where it should be performed.

- The job description should indicate the scope and nature of the work including alimportant relationships.

- The job description should be clear regarding the work of the position, duties etc.- More specific words should be selected to show (a) the kind of work (b) the degree of

complexity (c) the degree of skill required (d) the extend to which problems arestandardized (e) the degree and type of accountability. (f) Supervisory responsibility shouldbe shown to the incumbents. (g) The basic requirement, experience, works wise, agequalifications etc., should be stated very clearly.

And 8b. Training Needs Analysis: Training needs are identified on the basis of organizational analysis, job analysis and manpower analysis. Training programme, training methods and course content are to beplanned on the basis of training needs. Training needs are those aspects necessary to perform the job inan organization in which is lacking attitude/aptitude, knowledge and skill.

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Training needs = Job and organizational requirement-Employees Specifications

Methods used in Training Need Analysis.

Sr. Group or Organizational Analysis Individual Analysis1. To identify Organizational goals and


2. Personnel/skill inventories Work sampling3. Organizational Climate indices Interviews4. Efficiency indices Questionnaires5. Exit interviews Attitude survey6. MBO or work planning systems Training progress7. Quality circles Rating scales8. Customer survey/satisfaction data Observation of behavior9. Consideration of current and projected

changes

Ans. 8. c. Employee Manual: The Employee Manual is a document that an employee can refer to forany kind of query about the rules and guidelines of an organization. The Employee Manual contains the

following :• History, growth, organisation and management, products, market, customers etc. of the

company.

• Basic conditions of employment - hours of work, shift, holidays, retirement benefits.

• Pay, allowances, deductions.

• Sickness rules, information - pay - sick leave.

• Leave rules - casual, special, earned - holidays, vacation.

• Work rules - work-load, use of materials, equipment, and machine.

• Disciplinary rules and procedure.

• Grievance procedure.

• Career path, promotion channel.

• Unions, negotiating machinery.

•

Education, training and development facilities.• Health, Safety, medical care arrangements.

• Canteen and restaurant facilities.

• Social benefits and welfare measures.

• Telephone calls and correspondence.

• Traveling and subsistence expenses.

• Uniforms, clothing.

• Various employees - their designations - position in the organisation.

Ans 8 d. Organisational Downsizing: When there is a surplus of labour the organization is faced with aproblem of downsizing the organization. Because maintaining surplus of labour will eat into the profits ofthe Co. It is not easy to pay employees without extracted work from them. In such cases the organizationis faced with a problem of using the existing surplus for some higher category of work by giving them

training or employing them with their sister concern or simply giving the employees a golden handshakethrough Voluntary Retirement Scheme (VRS). Another way of downsizing is delayering the organizationand rectifies the situation of overstaffing. Ans 8 e. Team Effectiveness: Team effectiveness is the result of team work which consists of a groupof jobs that are linked and interconnected with each other for the purpose of performing a totaoperation. The total operation is assigned to a group of employees. Though each employee is allotted a job in the team, he is expected to take up the job of other employees when they fail to do it perfectly Thus jobs in a team overlap with each other. Teamwork gains more significance rather than individual jobs. In fact individual jobs are losing their relevance in the re-engineered businesses, organizationsbased on supply chain management. Team effectiveness is essential to serve the customer completely

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These days’ organizations started designing teams and analyzing team work. Most recent organizationhas realized that teamwork produces better results than the performance of individual work. Infactpractices of Enterprise Resource Planning (ERP), Business Process Re-engineering (BPRE) and SupplyChain Management require teamwork. The impact of synergy results in high productivity of teamworkthan that of the total of individual employees. Team effectiveness pertains to minimum acceptablehuman qualities and relationships necessary to perform all kinds of activities in a team.

*****************ALL THE BEST******************


Attempt any five questions Total 100 marksAll questions carry equal marksAnswers should be in sufficient detail with Practical examples and illustrations. __________________________________________________________________________________________________________

Q1. What are the special problems faced by Indian Corporates in Making Human ResourceManagement functions more successful?

Ans 1. Indian Companies basically face two factors viz Internal and External that pose a problem in thesmooth functioning of HRM function.

External Factors.

1 Government policies: Policies of the government like labour policy, industrial relations policypolicy towards reserving certain jobs for certain communities.

2 Level of Economic Development: Level of economic development determines the level of HRDin the country and thereby the supply of human resources in the future in the country.

3 Business Environment: External business environmental factors influence the volume and mixof production thereby the future demand for human resources.

4 Information Technology: Technology has made an amazing shift in the way to conducbusiness. These shifts include business process re-engineering, supply chain management etc. It

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also reduces obsolete machinery and traditional human resources. However in latter stages iteliminates many categories of labour and reduces existing human resources.

5 Level of Technology: Level of technology determines the kind of human resources required.

6 International factors: International factors like the demand for and supply of human resourcesin various countries.

Internal factors:

7. Company Strategies: Company policies and strategies relating to expansion, diversification,alliances etc. determine the human resources demand in terms of quality and quantity.

8. Human Resource Policies: Human resource policies of the company regarding quality ofhuman resources, compensation level, quality of work life etc.

9. Job Analysis: Fundamentally human resources plan is based on job analysis. Job descriptionand job specification.

10. Time Horizons: Companies in an unstable competitive environment can plan for only shorttern range. They have to face new competitors. Rapid change in socio and economicconditions. Small organization size, poor management practices. Unstable product/servicedemand patterns.

11. Company’s Production/Operations Policy: Company’s policy regarding how much toproduce and how much to buy from outside to prepare a final product influences the numberand kind of people required.

12. Trade Unions: Influence of trade unions regarding the number of working hours per week,recruitment sources etc. affect human resource management function.

Q.2. What are the different sources of recruitment? Explain the merits and demerits ofeach.



1. Present Permanent Employees : Organizations consider the candidates from this source forhigher level of jobs due to availability of most suitable candidates for jobs relatively or equally toexternal sources, to meet the trade union demands and due to the policy of the organization tomotivate the present employees.


3. Retrenched or Retired Employees: Employees retrenched due to lack of work are givenemployment by the organization due to obligation, trade union pressure etc. Sometimes they are re-employed by the organization as a token of their loyalty to the organization or to postpone someinterpersonal conflicts for promotion.

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6 Campus Recruitment: These candidates are directly recruited by the Co; from theicollege/educational institution. They are inexperienced as far as work experience is concerned.

7 Private Employment Agencies/Consultants: Public employment agencies or consultants likeABC Consultants in India perform recruitment functions on behalf of a client company by chargingfees. Line managers are relieved from recruitment functions and can concentrate on operationalactivities.

8 Public Employment Exchanges: The Government set up Public Employment Exchanges in the

country to provide information about vacancies to the candidates and to help the organization infinding out suitable candidates. As per the Employment Exchange act 1959, makes it obligatoryfor public sector and private sector enterprises in India to fill certain types of vacancies throughpublic employment exchanges.

9 Professional Organizations: Professional organizations or associations maintain complete biodata of their members and provide the same to various organizations on requisition. They act asan exchange between their members and recruiting firm.

10 Data Banks: The management can collect the bio-data of the candidates from different sourceslike Employment Exchange, Educational Training Institutes, candidates etc and feed them in thecomputer. It will become another source and the co can get the particulars as and when required.

11 Casual Applicants: Depending on the image of the organization its prompt responseparticipation of the organization in the local activities, level of unemployment, candidates applycasually for jobs through mail or handover the application in the Personnel dept. This would be asuitable source for temporary and lower level jobs.

12 Similar Organizations: Generally experienced candidates are available in organizationsproducing similar products or are engaged in similar business. The Management can get potentiacandidates from this source.

13 Trade Unions: Generally unemployed or underemployed persons or employees seeking changein employment put a word to the trade union leaders with a view to getting suitable employmentdue to latter rapport with the management.

14 Walk In: The busy organization and rapid changing companies do not find time to performvarious functions of recruitment. Therefore they advise the potential candidates to attend for aninterview directly and without a prior application on a specified date, time and at a specifiedplace.

15 Consult In: the busy and dynamic companies encourage the potential job seekers to approachthem personally and consult them regarding the jobs. The companies select the suitablecandidates and advise the company regarding the filling up of the positions. Head hunters are alsocalled search consultants.

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16 Body Shopping: Professional organizations and the hi-tech training develop the pool of humanresource for the possible employment. The prospective employers contact these organizations torecruit the candidates. Otherwise the organizations themselves approach the prospectiveemployers to place their human resources. These professional and training institutions are calledbody shoppers and these activities are known as body shopping. The body shopping is usedmostly for computer professionals. Body shopping is also known as employee leasing activity.

17Mergers and Acquisitions: Business alliances like acquisitions, mergers and take over help ingetting human resources. In addition the companies do also alliances in sharing their humanresource on adhoc basis.

18 E_recruitment: The technological revolution in telecommunications helped the organizations touse internet as a source of recruitment. Organizations advertise the job vacancies through theworld wide wed (www). The job seekers send their applications through e-mail using the internet.

19 Outsourcing: Some organizations recently started developing human resource pool by employingthe candidates for them. These organizations do not utilize the human resources; instead theysupply HRs to various companies based on their needs on temporary or ad-hoc basis.

Merits and Demerits of Internal Sources of Recruitment

Sr. Merits of Internal Sources of Recruitment

Demerits of Internal Sources of Recruitment

1. Motivates present employees when they areupgraded internally.

Trade union pressure may not always give theright candidate for the job. The managementmay have to consider some concessions.

2. Retrenched workers get an opportunity towork again.

Management’s gets a chance to postponepromotion due to interpersonal conflicts.

3. Dependents of the deceased get a jobeasily

Excessive dependence on this source results inin-breeding, discourages flow of new blood intothe organization.

4. Morale of employees is improved The organization becomes dull without

innovations, new ideas, excellence andexpertise.

5. Loyalty, commitment, security of presentemployees can be enhanced

6. Cost of recruitment, training, induction,orientation, etc is reduced

7. Trade unions can be satisfied.

Merits and Demerits of External of Recruitment

Sr. Merits of External Sources of Recruitment

Demerits of External Sources of Recruitment

1. The candidates with skill, knowledge talentsetc are generally available.

Campus recruited employees lack workexperience.

2. Cost of employees can be minimized. Cost of recruitment is high and there is noconfidentiality.

3. Expertise, excellence and experience inother organizations can be easily broughtinto the organization.

Specified vacancies have to be filled bycandidates referred by employment exchangeswhich do not allow other candidates to beeligible.

4. Existing sources will also broaden theirpersonality.

5. Human Resource mix can be balanced

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6. Qualitative human resource benefits theorganization in the long run.

7. Reduction in time for recruitment8. Increase in the selection ratio i.e. recruiting

more candidates.9. HR professionals can concentrate on

strategic issues.

Q 3. Define Motivation. Discuss any two theories of Motivation.

Ans 3. Motivation is derived from the word “Motive”. A motive is an inner state that energizes, activates ormoves and directs or channels behavious towards goals. It represents an unsatisfied need which creates astate of tension or disequilibrium causing the individual to move in a goal directed pattern towardsrestoring a state of equilibrium by satisfying the need. Motivation is a process that starts with aphysiological deficiency or need that activates behavious or a drive that is aimed at a goal or incentive. Thus the process of motivation lies in the meaning of and relationship among needs, drives and incentives.

The Basic Motivation Process = Needs----------- Drives-------------------------- Goals/Incentives(Deficiency) (Deficiency with Direction) Reduction of drives

and fulfills deficiencies.It is a bare fact that most of us use only a small portion of our mental and physical abilities. To exploit theunused potential in people they are to be motivated. Needless to say that such exploitation results ingreater efficiency, higher production and better standard of living of the people. There are basically twotypes of motivation vis 1) Positive Motivation and Negative Motivation.

1. Positive Motivation: People are said to be motivated positively when they are shown a rewards and theway to achieve it. Such a reward may be financial or non financial. Monetary motivation may includedifferent incentives, wage plans, productive bonus schemes etc. Non monetary include praise for work,participation in management, social recognition. Monetary incentives provide the worker a bettestandard of life while non monetary incentives satisfy the ego of a man.

2. Negative Motivation: It is induced by installing fear in the minds of people; one can get the desiredwork done. In this method of motivation fear of consequences of doing something or not doingsomething keeps the worker in desired direction. This method has got several limitations. Fear Createsfrustration, a hostile state of mind and an unfavorable attitude towards the job which hinder efficiencyand productivity. So the use of it should be kept minimum.

Theories of Motivation: There are several theories on motivation. The significant among them areMaslow’s Hierarchy of Needs, Herzber’s Two Factor Theory, Vrooms Expectancy Theory, Porter andLawler’s Expectancy Theory and Equity Theory of Work Motivation. We shall discuss 1. Maslows Theory ofHierarchy of Needs and 2. Herzberg Two Factor Theory.

1. Maslows Theory of Hierarchy of Needs :According to Maslow, human needs form a hierarchy, staring at the bottom with the physiologicalneeds and ascending to the highest need of self actualization. He says when one set of needs issatisfied; they no longer work as motivators as a man seeks to satisfy the next higher level of needs.

__________________________________________________ Need for Self-Actualization

__________________________________________________ Physiological Needs

__________________________________________________ Esteem Needs

__________________________________________________ Social Needs -Affiliation or

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Acceptance Needs __________________________________________________

Security of Safety Needs __________________________________________________

Physiological Needs __________________________________________________

MASLOW”S HIERACHY OF NEEDS==========================================

The Need Hierarchy:

1. Physiological Needs: These are the basic necessities of human life, food, water, warmth, sheltersleep and sexual satisfaction. Maslow says that until these needs are satisfied to the requiredlevel, man does not aim for the satisfaction of next level of needs. As far as work environment isconcerned, these needs include basic needs like pay, allowance, incentives and benefits.

2. Security/Safety Needs: These refer to the need to be free of physical danger or the feeling ofloss of food, job or shelter. When the physiological needs are satisfied, man starts thinking of theway by which he can satisfy his safety needs. Security needs spring up the moment he makesan effort in the direction of providing himself the source of continuity of physiological needs. In awork environment these needs include conformity, security plans, membership in unionsseverance pay etc.

3. Social Needs: (Affiliation or Acceptance Needs) When the physiological and security needs aresatisfied, these social needs begin occupying the mind of a man. This is exactly why he looks forthe association of other human beings and strives hard to be accepted by this group. Socialneeds at the work place include: Human relations, formal and informal work groups.

4. Esteem Needs: These needs are power, status and self confidence. Every man has a feeling ofimportance and he wants others to regard him highly. These needs makes people aim high andmake them achieve something great. These needs for employees include status symbolsawards, promotions, titles etc.

5. Self Actualization Needs: This is the highest need in the hierarchy. This refers to the desire tobecome what one is capable of becoming. Man tries to maximize his potential and accomplishsomething, when this need is activated in him.

2. Herzberg Theory of Motivation: Deals with basically two factors Dissatisfiers and Satisfiers.


SATISFIERS: The second group are the” satisfiers’ in the sense that they are motivators which arerelated to job content. It includes factors of achievement, recognition, challenging work, advancementand growth in job. Their presence yields feeling of satisfaction or no satisfaction but not dissatisfaction.


Herzberg’s Two Factor Theory: Classification of Maintenance and Motivational Factors

Sr.



1. Job Content Job Content2. Extrinsic Factors Intrinsic Factors3. Company Policy and Administration Achievement4. Quality of supervision Recognition5. Relations with superiors Advancement6. Peer Relations Work Itself

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7. Relations with subordinates Possibility of Growth8. Pay Responsibility9. Job security10.

Work Conditions

11.

Status

Q4. What are the merits of formal organization structure?Ans. 4. A formal organizational structure composes of job descriptions, organization charts, proceduresand other written documents which describe and define how individuals should work with each other. Aformal organizational structure is the organization as it exist son paper. It is the official sanctioned way ofdoing things. It tells you who reports to whom and how various problems should be handled. The meritsof a formal organizational structure are as follows:

1. Overall Effectiveness: Overall effectiveness is high because the delegation of workand attainment of the organisational goals and objectives is well defined.

2. Goal Attainment: The organization accomplishes what it sets out to accomplish.3. Profit Making: A favourable ‘bottom line” which is the main aim of an organization

is achieved.4. Staying within Budget: Due to limited resources and guidelines for budgets and

spending the co is a lesser risk of running into losses.5. Achieving New Goals: A successful organization emphasizes the attainment o

new and important goals.6. Adaptability to change: A well structured organization has good problem solving

ability and capacity to change as per the need of the hour.7. Stability: An organization that is able to maintain its basic charter and size ove

time is considered to be stable.8. Quality: High quality of goods and services can be expected of well structured

organizations.9. Growth: There is an increase in factors like work force, plant capacity, assets

sales, profits, market share and no of innovations.10. Managerial Skills: A well structured organization gives a lot of emphasis on the

quality and qualifications of the employees. Professionals/specialist is employed toguide, perform and achieve the organizational goals and objectives. Withoutcompetent managers the Co., will not able to survive.

11. Control: The management has a good control over the employees and alsoinventory which is very essential for the smooth functioning of an organization.

12. Proper management of conflict: An organization may require some conflict to beeffective, but too much conflict detracts from effectiveness. In an organizedstructure people conform to the same code of conduct and conflict is usually heldin check.

13. Participation in decision making: The employees are sometimes given a chance toparticipate in decisions pertaining to them. This also boosts them and keeps themmotivated. It gives them a sense of belonging and a sense of loyalty to the Co.

14. Absenteeism: Since the employees are highly motivated problems like

absenteeism etc are minimum.15. Job satisfaction: The job satisfaction is very high among employees. It induces

high morale which in turn leads to high productivity.16. Training and Development of employees: Helps in the up gradation and

development of the employee and gives him an opportunity to grow within theorganization.

Q5. What are the objectives of “Performance Appraisal System” What are sources of error inthe appraisal process.

26



Ans. 5. Performance appraisal is a method of evaluating the behaviour of employees in the work placenormally including both the quantitative and qualitative aspects of job performance. Performance refers tothe degree of accomplishment of the tasks that make up an individual’s job. It indicates how ell anindividual is fulfilling the job demands.

Every organization has to decide upon the content to be appraised before the programme is approved onthe basis of job analysis. The content to be appraised may vary with the purpose of appraisal and type andlevel of employees Performance Appraisal is a method of evaluating the behaviour of employees in theworkplace.

Objectives of Performance Appraisal System:

1. To create and maintain a satisfactory level of performance.2. To contribute to the employee growth and development through training, self and management

development programmes. Tata Power aims at employee development through performance appraisal.3. To help the superiors to have a proper understanding about their subordinates4. to guide the job changes with the help to continuous ranking5. To facilitate fair and equitable compensation based on performance.6. To facilitate for testing and validating selection tests, interview techniques through comparing thei

scores with performance appraisal ranks.7. to prove information for making decisions regarding lay off, retrenchment etc as in the case of Hyunda

Engineering

HYUNDAI 1,00O JOBS TO GO CUTIn an attempt to counter continuing employee low performance and business troubles, Hyundaengineering and Construction announced its decision to lay –off employees and cut 1000 jobs.

Sources of Error in Performance Appraisal:

1. Rating Biases: It is a subjective measure of rating performance which is not verifiable by othersand has the opportunity for bias. There rater biases include: a) the halo effect b) the error ofcentral tendency c) the leniency and strictness biases d) personal prejudice and e) the recencyeffect.

a. Halo Effect: it is the tendency of the raters to depend excessively on the rating of onetrait or behaviourial consideration in rating all other traits or behavioural considerations.One way of minimizing the halo effect is appraising all employees by one trait before goingto rate them on the basis of another trait.

b. The Error of Central Tendency: Some raters follow play safe policy in rating by rating althe employees around the middle point of the rating scale and they avoid rating the peopleat both the extremes scale. They follow play safe policy because of answerability to themanagement or lack of knowledge about the job and person he is rating or has leastinterest in the job.

c. The Leniency and Strictness: the leniency bias crops when some raters have atendency to be liberal in their rating by assigning higher rates consistently. Such ratings donot serve any purpose. Equally damaging is assigning consistently low rates.

d. Personal Prejudice: If the rater dislikes any employee or any group, he may rate them atthe lower end, which may distort the rating purpose and affect the career of theseemployees.

e. The Recency Effect: The raters generally remember the recent actions of the employeeat the time of rating them on the basis of these recent actions favourable orunfavourable-rather than on the whole activities.

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Q6. How would you evaluate a training programme ? Does its evaluation have any bearing onits design?

Ans. 6. The specification of values forms a basis of evaluation. The process of training evaluation hasbeen defined as “any attempt to obtain information on the effects of training performance and to accessthe value of training in the light of that information. The various methods of training evaluation are:

1. Immediate assessment of trainee’s reaction to the programme.2. Trainee’s observation during the training programme.3. Knowing trainees expectations before the training programme and collecting their views regarding

the attainment of the expectations after the training4. Seeking opinion of the trainee’s superior regarding his/her job performance and behaviour before

and after training.5. Evaluation of trainee’s skill level before and after the training programme.6. Measurement of improvement in trainees on the job behaviour.7. Examination of the testing system before and after sometime of the training programme.8. Measurement of trainee’s attitudes after training programme.9. Cost-benefits analysis of the training programme.10. Seeking opinion of trainee’s colleagues regarding his/her job performance and behaviour.11.Measurement of levels in absenteeism, turnover, wastage/scrap, accidents, breakage of the

machinery during pre and post period of the training programme.

12. Seeking opinions of trainees subordinates regarding his/her job performance and behaviour

The Evaluation of a Training has bearing on its Design . It should be well defined in meetingspecific objectives. The nomination of employees should be based on the need of training. The trainersshould be qualified and experienced. The training calendar should be discussed with the manager Training needs should be identified through job description, performance appraisal and potentiaappraisal discussions.

1. Reaction: The design of the training depends on the trainee’s reaction to the usefulness ofcoverage of the matter, depth of the course content, method of presentation, teaching methodsetc.

2. Learning : Training programme, trainers ability and trainee ability are evaluated on the basis ofquantity of content learned and time in which it is learned and the learners ability to use or applythe content he learned. All these factors depend on the Training Design.

3. Job Behaviour : The training design helps in identifying the manner and extent to which thetrainee has applied his learning to his job.

4. Organisation : The training design helps in measuring the use of training, learning and change inthe job behaviour of the department/organization in the form of increased productivity, quality,morale, sales turnover and the like.

5. Ultimate Value: It is the measurement of the ultimate result of the contributions of the trainingprogramme to the Company goals like survival, growth, profitability etc. and to the individuagoals like development of personality and social goals like maximizing social benefits.

Q7. Discuss the methods of reliability. How is reliability of “interview” as a selectioninstrument found?”

Ans 7. Selection is a process of selecting the right candidate for the right job. It is about collectinginformation about the candidate’s qualifications, experience, physical and mental ability, nature andbehaviour, knowledge, aptitude etc for judging whether a given applicant is suitable or not for the job. The test of reliability in the selection process can be carried out through various methods as discussedbelow:

1. Written Examination: The organization have to conduct written examination for the qualifiedcandidates after they are screened on the basis of the application blanks so as to measure the

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candidate’s ability in arithmetical calculations, to know the candidates attitude towards the job, tomeasure the candidates aptitude, reasoning, knowledge in various disciplines, general knowledgeand English language.

2. Preliminary Interview: The preliminary interview is to solicit necessary information from theprospective applicants and to assess the applicant’s suitability to the job. The informationprovided by the candidate may be related to the job or personal specifications regarding

education, experience, salary expected aptitude towards the job, age physical appearance andother physical requirements etc. Thus preliminary interview is useful as a process of eliminatingthe undesirable candidates. If a candidate satisfies the job requirement regarding most of thearrears he may be selected for further process. Preliminary interviews are short and known asstand-up interviews or sizing up of the applicants or screening interview. This interview is alsouseful to provide the basis information about the company to the candidate.

3. Business Games: Business games are widely used as a selection technique for selectingmanagement trainees, executive trainees and managerial personnel at junior, middle and topmanagement positions. Business games help to evaluate the applicants in the areas of decisionmaking, identifying the potentialities, handling the situations, problem-solving skills, humanrelations skills etc. Participants are placed in a hypothetical work situation and are required toplay the role situations in the game.

4. Group Discussions : The technique of group discussion is used in order to secure furtheinformation regarding the suitability of the candidate for the job. Group discussion is a methodwhere groups of the successful applicants are brought around a conference table and are asked todiscuss either a case study or a subject matter. The candidates in the group are required toanalyze, discuss, find alternative solutions and select the sound solution. A selection panel thenobserves the candidates in the areas of initiating the discussion, explaining the problem, solicitingunrevealing information based on the given information and using common sense, keenlyobserving the discussion of others, clarifying controversial issues, influencing others, speakingeffectively, concealing and mediating arguments among the participants and summarizing oconcluding aptly. The selection panel, based on its observations, judges the candidates skills andability and ranks them according to their merit.

BUSINESS GAMES AND THEIR UTILITY IN THE SELECTION PROCESSBusiness Games Utility(1) Case Study Analytical, judgmental and decision-making skills(2) Role Play Human relations skills.(3) In-basket method Situational judgment, social relations, decision-making skills

problem-solving skills.(4) Sensitivity Degree of openness, concern for others, tolerance for individua

differences.(5) Simulations Encountering skills.

5. Test: Psychological tests play a vital role in employee selection. A psychological test isessentially an objective and standardized measure of sample of behaviour from which inferencesabout future behaviour and performance of the candidate can be drawn.

Types of Test1. Aptitude Tests:(a) Intelligence Test (IQ)(b) Emotional Quotient(c) Skill Tests(d) Mechanical Aptitude(e) Psychomotor Tests(f) Clerical Aptitude Tests

2. Achievement Tests:(a) Job Knowledge Test(b) Work Sample Test

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3. Situational Tests:(a) Group Discussion(b) In Basket

4. Interest Test5. Personality Tests:

(a) Objective Tests(b) Projective Tests

6. Multi-Dimensional Testing

Eg.: Multi-Skilling : Multi-Dimensional Testing : L&G has realised that most of the company operationswhether they are production or marketing or finance or human resources can be done by almost all theemployees. Experts are needed only in rare cases. Infact, services of the experts can be outsourced. Assuch, L&G started selecting the candidates with multi-skills and who can perform a variety of functions.L&G developed multi-dimensional testing.

Reliability of Interview: This is the most essential step in the process of selection. In this step, theinterviewer matches the information obtained about the candidate through various means to the jobrequirements and to the information obtained through his own observation during the interview.Types of Interview: The types of Employment interviews are:1. Preliminary Interview

(a) Informal Interview This is the interview which can be conducted at any place by any person to secure the basic andnon-job related information. It is the interaction between the candidate and the personal managerwhen the former meets the latter to enquire about the vacancies or additional particulars inconnection with the employment advertisement etc.

(b) Unstructured InterviewIn this interview the candidate is given freedom to tell all about himself by revealing his knowledgeon various items/arrears, his background, expectations, interest etc. The interviewer also mayanswer some information required by the candidate.

2. Core Interview: It is normally the interaction between the candidate and the line executive orexperts on various areas of job knowledge, skill, talent etc.

(a) Background information interview This interview is intended to collect the information which is not available in the application blankand to check that information provided in the application blank regarding education, place ofdomicile, family, health, likes, dislikes and extra curricular activities of the applicant.

(b) Job and probing interview This interview aims at testing the candidate’s job knowledge about duties, activities, methods ofdoing the job, critical/problematic areas, and methods of handling those areas.

(c) Stress interview This interview aims at testing the candidate’s job behaviour and level of withstanding during theperiod of stress and strain. The interviewer tests the candidate by putting him under stress andstrain by interrupting the applicant from answering, criticizing his opinions, asking questions

pertaining to unrelated areas etc. Stress during the middle portion of the interview gives effectiveresults.

(d) Group discussion interview There are two methods of conducting group discussion interviews viz group interview method anddiscussion method. This type of interview helps the interviewer in appraising certain skills of thecandidates like initiative; inter personal skills, dynamism, presentation, leading, comprehensioncollaboration etc.

(e) Formal and structured interviewIn this type of interview, all the formalities, procedures like fixing the value, time, panel o

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interviewers, opening and closing, intimating the candidates officially etc. are strictly followed inarranging and conducting the interview. The course of the interview is pre-planned and structured, inadvance depending on job requirements. The questions for discussion are structured and experts areallotted different areas and questions to be asked.

(f) Panel interviewA panel of experts interviews each candidate, judges his performance individually and preparesconsolidated judgement. This type of interview is known as panel interview.

(g) Depth interview The candidate is examined extensively in core areas of job skills and knowledge. Experts test thecandidate’s knowledge in depth. Depth interviews are conducted for specialized jobs.

(h) On Line Interview: Information technology brought significant developments in the selectionprocess of employees. The vital development is on-line interview where the interview is conductedonline. These techniques include, on-line submission, internet based recruiting, outsourcingemployment function, sophisticated scanning and searching.

3. Decision-Making InterviewAfter the candidates are examined by the experts including the line managers of the organization inthe core areas of the job, the head of the department/section concerned interviews the candidateonce again, mostly through informal discussion. The interviewer examines the interest of the

candidate in the job, organization, reaction/adaptability to the working conditions, career planningpromotional opportunities, work adjustment and allotment etc. The Personnel Manager alsointerviews the candidates with a view to find out his reaction/acceptance regarding salaryallowances, benefits, promotions, opportunities etc.

During various types of interviews depending on the job requirement the interviewer can see and analysethe strengths, weaknesses and potentials of the candidate. Whether he is suitable for the job, whether heis the right candidate. Various types of interviews help the interviewer to arrive at different conclusion.Eg. A Stress Interview helps to analyse whether a candidate can perform under stress and pressure andwhether he can take a right decision at such times. Most of the organizations have realized recently thatthe employees’ positive attitude contribute much rather than employees skills and knowledgeEmployees with positive attribute contribute much to the organization. Hence the interviewers look for

the candidates with the right attitude while making final decisions.

Attitude Counts Much, but not the Skill

InfoTech Limited discovered that the employees with right attitude take up the activities willingly on theirown. They acquire the necessary skills, if they do not possess them. They never say ‘no’ to otheremployees, superiors and customers. Hence the interviewers with right and or positive attitudeirrespective of their technical al skills and knowledge.

Q 8.Write short notes on any three of the following :-a) Job Rotation b) Multi Skilling c) Job Evaluationd) Managing Change e) Resolving Conflict

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Ans 8a. Job Rotation: Job rotation refers to the movement of an employee from one job to the other. Jobs themselves are not actually changed, only the employees are rotated among various jobs. Anemployee who works on a routine/respective job moves to and works on another job for somehours/days/months and backs up to the first job. This measure relieves the employee from boredom andmonotony, improves employee’s skills regarding various jobs, prepares the competent employees andprovides competitive advantages to the company. These measures also improve worker’s self-image andprovide personal growth. However, frequent job rotations are not advisable in view of their negativeimpact on the organisation and the employee.

b. Multi Skilling : The transferring of executives from job to job and from department to department ina systematic manner is called Job Rotation. When a manger is posted to a new job as part of such aprogramme, it is not merely an orientation assignment. He has to assume the full responsibility andperform all kinds of duties. The ideal behind this is to give him the required diversified skills and abroader outlook which are very important at the senior management levels. It is upto the managemento provide a variety of job experiences for those who have the potential for higher ranks before they arepromoted. Job rotation increases the inter-departmental co-operation and reduces the monotony ofwork. It makes the executives in general management and does not allow them to confine themselvesto their specialised field only.

c. Job Evaluation : Job evaluation deals with money and work. It determines the relative worth ormoney value of jobs. The International Labour Organisation defined job evaluation as “an attempt to

determine and compare demands which the normal performance of a particular job makes on normaworkers without taking into account the individual abilities or performance of the workers concerned”.Wendell L. French defined job evaluation as “a process of determining the relative worth of the various job within the organisation, so that different wages may be paid to jobs of different worth”. Joevaluation is defined as “the overall activity of involving an orderly, systematic method and procedure ofranking, grading and weighing of jobs to determine the value of a specific job in relation to other jobs”.British Institute of Management (1970) defined job evaluation as, “the process of analysing and assessingthe content of jobs, in order to place them in an acceptable rank order which can then be used as a basisfor a remuneration system. Job evaluation, therefore, is simply a technique designed to assist in thedevelopment of new pay structures by defining relatives between jobs on a consistent and systematicbasis”. Thus, job evaluation may be defined as a process of determining the relative worth of jobsranking and grading them by comparing the duties, responsibilities like skill, knowledge of a job withother jobs with a view to fix compensation payable to the concerned job holder.

d. Managing Change : The term ‘Organisational Change’ implies the creation of imbalances in theexistent pattern or situation. Adjustment among people, technology and structural set up is establishedwhen an organisation operates for a long time. People adjust with their jobs, working conditionscolleagues, superiors etc. Similarly, an organisation establishes relationship in the external environmentChange requires individuals and organisations to make new adjustments. Complexity and fear ofadjustment gives rise to resistance and problem of change. Human resource is an important factor inrelation to the adjustments among individuals as well as between the organisation and environment, asan organisation is mostly composed of people. Individual members can resist either individually or in agroup. Change could be both reactive and proactive. A proactive change has necessarily to be plannedto attempt to prepare for anticipated future challenges. A reactive change may be an automaticresponse or a planned response to change taking place in the environment.

e. Resolving Conflict : The methods of resolving conflicts generally include:

Methods of Resolving Conflicts|

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| | | | |

Investigation Mediation Conciliation Voluntary Arbitration Compulsory Arbitration/Adjunction

1. Investigation: This is conducted by a board or court appointed by the government. It may bevoluntary or compulsory. If the investigation is conducted on an application by either or both theparties to the dispute it is voluntary. If the Government appoints a Court of Inquiry without theconsent of the parties it is compulsory. Investigations analyse the facts and aim at an amicablesolution. When the investigation is compulsory, the strikes and lockouts are required to bestopped and employers should not make any change in the conditions of employment.

2. Mediation: Another attempt to settle disputes is Mediation. In this method, an outsider assiststhe parties in their negotiations. It takes place with the consent of both the parties. The main aimof mediator is the settlement of disputes by bringing about a voluntary agreement. There may bethree kinds of mediation:

a. The Eminent Outsiderb. Non-Government Board andc. Semi Government Board.

If mediation is conducted skillfully and sympathetically then it can bring about the adjustments ofdifferences that might otherwise contribute to stoppage of work.

3. Conciliation: The main objective of a conciliation and arbitration is to reunite the two conflictinggroups in the industry in order to avoid interruption of production, distrust etc. Conciliation is aprocess by which representatives of both workers and employers are brought together before athird party with a view to persuading them to arrive at some sort of settlement. It is an extensionof collective bargaining with third party assistance. Conciliation machinery consists of conciliationofficer and board of conciliations. The conciliator induces the parties to a course of action. Heplays the role of an innovator, protector, discussion leader, stimulator, advisor, face saver. He actsas a safety value and a communication link. The task of conciliation is to offer advice and makesuggestions to the parties to the dispute on controversial issues.

4. Voluntary Arbitration: if the two parties to the dispute fail to come to an agreement, either by

themselves or with the help of a mediator or conciliator, who agrees to submit the dispute to animpartial authority, whose decision, they are ready to accept. The essential elements in voluntaryarbitration are :

b. The voluntary submission of dispute to an arbitrator.c. The subsequent attendance of witness and investigations andd. The enforcement of an award may not be necessary

5. Compulsory Arbitration/Adjudication: Where trade unions are weak the method ocompulsory Arbitration is used. Compulsory Arbitration is utilized generally when the parties fail toarrive at a settlement through the voluntary methods. It is at times necessary and desirable. Theobjective of state intervention in the field of industrial relations should be to do social justice andmake the weaker party equally strong to enable it ultimately to stand and survive on its own andsettle its differences through negotiations and collective bargaining. Compulsory arbitration is one

where the parties are required to arbitrate without any willingness on their part. Any one of theparties may apply to the appropriate governments to refer the dispute to adjudication machinery.

**************ALL THE BEST*******************


Attempt any five questions Total 100 marksAll questions carry equal marksAnswers should be in sufficient detail with Practical examples and illustrations.

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__________________________________________________________________________________________________________

Q1. What is Personnel Policy? Describe the important personnel policies that affect the job ofa Personnel Manager.

Ans 1. A personnel policy is a plan of action, a set of proposals and actions that act as a reference pointfor managers in their dealings with employees. Personnel policies constitute guides to action They furnish the general standards or bases on which decisions are reached. Their genesis lies inan organization’s values, philosophy, concepts and principles”. Personnel guide the course ofaction intended to accomplish personnel objectives. A policy is a guideline for making wisedecisions. It brings about stability in making decisions. A policy is a stance, often a choice madebetween two or more alternatives, such as the choice between promoting employees on thanbasis of merit versus promoting them on the basis of seniority.

Example:

HRM Policy in Indian Railways

One of the personnel objectives of Indian Railways is to provide equal employment opportunities to thepeople of minority sections. Personnel policy of Indian Railways relating to the above objectives is to fil15% and 7.5% of the vacancies from those candidates belonging to Scheduled Castes and Scheduled Tribes respectively.

j

The Health & Safety Policy: The policy statement should be a declaration of the intention of the employerthe health and safety of his employees. It should emphasize four fundamental points

1. The safety of employees and the public is of paramount importance.2. that safety will take precedence over expediency3. that every effort will be made to involve all managers, supervisors and employees

in the development and implementation of health and safety procedures4. That health and safety legislation will be compiled within the spirit as well as the

letter of the law.

Recruitment Policy: In order to have consistency throughout an organization, it is necessary to lay downcertain principles as guidelines for both management and staff. The basic principle is the organizationsattitude towards filling vacancies, whether from within or outside. If the organization is strongly unionizedit is probable that a policy or promotion from within wherever possible is agreed with the unions. It takescare of providing the right man for the right job at the right time. Recruitment policy takes intoconsideration the government’s reservation policy, policy regarding sons of the soil etc. Personnepolicies regarding merit, internal sources, social responsibility in absorbing minority sections, womenetc.Recruitment policy commits itself to the organizations personnel policy like enriching theorganization’s human resources, motivating the employees through internal promotions, improving theemployee’s loyalty to the organization. While formulating a recruitment policy the following factorsshould be taken care of by the Personnel manager:

1. Government Policies

2. Personnel policies of other competing organizations3. Organization’s personnel policies4. Recruitment sources5. Recruitment needs6. Recruitment cost7. Selection criteria and preference

Working Conditions Policy: This policy deals with the hours of work, shift, holidays, and retirementbenefits.

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Pay Allowances & deductions Policy: It defines the rules and eligibility for payment of differentallowances. It also states the heads of deductions applicable.

Leave Policy: The Leave policy defines the sickness rules, the leave allowed every year which includescasual, special, earned, holiday leave. LTA payment etc. The Maternity Leave benefits etc.

Work Rules Policy: It defines the work load, use of materials, equipment and machines.

Disciplinary Policy: This policy defines the code of conduct to be followed by every employee in hisworkplace. It defines the business ethics that are expected to be followed by every employee. It clearlystates the consequences to for violating such rules.

Grievance Policy: It defines the procedure to be followed to address any grievance that an employee maywish to address.

Social Benefit Policy: Most of the organizations have some social benefit scheme which is defined underthis policy.

Superannuation/Pension Policy: The employees need to be taken care after superannuation too. Thepolicy for the same and the procedure for availing pension are also defined.

Gratuity/PF Policy: The rules for gratuity are defined under this policy. It includes eligibility etc and themaximum about that will be paid. In Pf it defines the process of availing loan/ withdrawing/transferringthe PF as the case may be applicable.

Housing loan Policy: Some Co’s take care of their employees housing needs too. They give themsubsidiary in interest on housing etc. Or they provide them with a house too. The eligibility and deductionof HRA etc., if the co.’ provides the house etc. is all defined.

Promotion Policy: This is one of the most important policies. A well defined promotion policy will keep theemployees motivated and achieve the Co’s goals for the betterment of the Co and self too.

Transfer Policy: The guidelines for transfer etc are defined here. This policy becomes a very importantdocument of reference in banks etc where transfers are done on a frequent basis.

Q2. What is Manpower Planning? What factors do you consider while forecasting, manpowerneeds of an organization?

Ans 2. Manpower planning means planning means deciding the number and type of the humanresources required for each job, unit and the total company for a particular future date in order to carryout organizational activities. Manpower planning may be viewed as foreseeing the human resourcesrequirement of an organization and the future supply of human resources and (i) making necessaryadjustments between these two and organizational plans and (ii) foreseeing the possibility of developingthe supply of manpower resources in order to match it with the requirements by introducing necessarychanges in the functions of human resources management.

The important objectives of manpower in an organization are1. to recruit and retain the manpower of required quality and quantity.2. to foresee the employee turnover and make the arrangements for minimizing turnover and

filling up of consequent vacancies.3. to meet the needs of the programmes of expansion, diversification etc.4. to foresee the impact of technology on work, existing employees and future human resource

requirements.5. to improve the standards, skill, knowledge, ability, discipline etc.6. to assess the surplus or shortage of manpower and take measures accordingly.7. to maintain congenial industrial relations by maintaining optimum level and structure o

human resources

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8. to minimize the imbalances caused sue to non-availability of human resources of the rightkind, right number in right time and right place.

9. to make the best use of its human resources and10. to estimate the cost of human resources.

Factors to be considered while forecasting, manpower needs of an organization.

- Analysing the corporate and unit level strategies.- Demand Forecasting: Forecasting the overall human resources requirements in accordance

with the organisational plans.- Supply Forecasting: Obtaining the data and information about the present inventory o

manpower and forecast the future changes in the human resources inventory.- Estimating the net manpower requirement.- In case of future surplus than plan for redeployment.- In case of future deficit, forecast the future supply of manpower from all sources with

reference to plans of other companies.- Plan for recruitment, development and internal mobility if future supply is more than or

equal to net manpower requirements.- Plan to modify and adjust the organizational plan if future supply will be inadequate with

reference to future net requirements.- Degree of uncertainty and length of planning period.

The above points are discussed in details:

Demand Forecasting: The existing job design and analysis may thoroughly be reviewed keeping inview the future capabilities, knowledge and skills of present employees. Further the jobs should beredesigned and reanalyzed keeping in view the organizational and unit wise plans and programmesfuture work quantum, future activity or task analysis, future skills, values, knowledge and capabilities ofpresent employees and prospective employees. The jobs generally should be designed and analysedreflecting the future human resources and based on future organizational plans. Job analysis and forecastabout the future components of human resources facilitate demand forecasting. One of the importantaspects of demand forecasting of the quantity of human resources (skill, knowledge values, capabilitiesetc) in addition to quantity of human resources. Important forecasting methods are:

1. Managerial Judgement: Under this method, managers decide the number of employees

required for future operations based on their past experience.2. Statistical Techniques Include: ratio trend analysis and econometric models. Under ratio

trend analysis, ratios are calculated for the past data and these ratios are used for theestimation of the future manpower requirements For eg.- Present level of production (1-1-2005) 2000 units- Present number of foremen (1-1-2005) 5- Ratio is 2000/4 500- Estimated production as on (1-1-2005) 5000 units- Foreman required as on (1-1-2005) 5000/500 = 10Econometric models for manpower planning are built up by analyzing the past statistical dataand by bringing the relationship among variables.

3. Work Study Techniques: Under this method, total production and activities in terms of cleaunits are estimated in a year. Then man-hours required to produce each unit is calculated,

Later the required number of employees is calculated. For eg.

- Planned operations during 2005 = 1,60,000 units- Standard man-hours needed to perform each unit in 2005 = 0.25- Planned man-hours needed per year in 2005 = 40,000- Work ability per employee in man-hours in 2005 = 2,000- Number of employees required in 2005 = 40000/20000=20

Supply Forecasting

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The first step of forecasting the future supply of human resources is to obtain the data and informationabout the present human resources inventory.

Existing Inventory: The data relating to present human resources inventory in terms of humanscomponents, number, designation-wise and department wise would be obtained. Principal dimensionsof manpower planning are:1. Head counts regarding total, department wise, sex-wise, designation-wise, skill-wise, pay roll wise

etc.2. Job Family Inventory : It includes number and category of employees of each job family i.e. all jobs

related to the same category like clerks, cashiers, sub job family i.e. all jobs having common jobcharacteristics (skill, qualification, similar operations) like production engineer (mechanical) andmaintenance engineer (mechanical) and broad families like general administration, productionetc.

3. Age Inventory: It includes age-wise number and category of employees. It indicates age wiseimbalances in present inventory which can be correlated in future selections and promotions.

Existing inventory at a future date is calculated as follows:

Existing inventory at = Present Inventory + Potential additions - Potential LossesA future date as on today

Estimating the Net Man Power Requirements: Net manpower requirements in terns of number and

components are to be determined in relation to the overall man power requirements for a future dateand supply forecast for that date. The difference between overall manpower and future supply ofmanpower is to be found out. The difference is the net manpower requirement.

Action Plan for Redeployment, Redundancy/Retrenchment: If future surplus is estimated, theorganization has to plan for redeployment, redundancy etc. If surplus is estimated in some jobs/departments, employees can be redeployed in other jobs/departments where the deficit oemployees is estimated. The organization should also plan for training or re-orientation beforeredeployment of employees. Redeployment takes place in the form of transfers. If the deficit is notestimated in any job/department and surplus is estimated for the entire organization, the organization,in consultation with the trade unions has to plan for redundancy or retrenchment.

Recruitment and Selection Plan : Recruitment and selection plan covers the number and type of

employees required, when they are required for the job, time necessary for recruitment and selectionprocess, recruitment sources, recruitment techniques to be used, selection procedure to be adoptedand selection techniques to be used to subsequently recruiting the required candidates. It also coversthe time factor for induction, preliminary training and placement.

Q.3. What is Job Design? How is it different from Job Analysis? Explain with suitableexamples.

Ans 3. Job design is defined as the process of deciding on the content of a job in terms of duties,responsibilities of job holders; on the methods to be used in carrying out the job, in terms oftechniques, systems and procedures and on the relationships that should exist between the job holderand his superiors, subordinates and colleagues. Factors affecting job design include: organizationafactors, environmental factors and behavioural factors. Two important goals to job design are to meet

the organizational requirements such as higher productivity, operational efficiency, quality oproduct/services etc. and to satisfy the needs of individual employees like interests, challengesachievement or accomplishment etc. Finally the goal of the job design is to integrate the needs of theindividuals with the organizational requirements. There are three important approaches to job designviz 1) engineering approach 2) human approach and 3) job characteristics approach.

Job Analysis is the process of determining, by observation and study and reporting pertineninformation relating to the nature of a specific job. It is the determination of the tasks which comprise

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the job and of skills, knowledge, abilities and responsibilities required of the worker of a successfuperformance and which differentiate one job from all others.

Job Design Job AnalysisIt has an engineering approach which studies thework scientifically, and is based on scientificmanagement principles. These principles seem tobe quite rational and appealing as they pointtowards increased organizational performance.

Description of Work activties, like how is a taskperformed? Why is a task performed? When is atask performed?

It has a human relations approach and recognizesthe need to design the jobs which are interestingand rewarding.

Interface with other jobs and equipments

It has a job characteristics approach whichassumes that employees will work hard when theyare rewarded for the work they do and when thework gives them satisfaction. Motivation,satisfaction and performance should be integratedin the job design. Jobs with skill variety, taskidentity, task significance, autonomy and feedbackare called core job dimensions.

Procedures used. Analysis of Behaviours requiredon the job. Physical movements and demandsrequired to perform the job.

The goal of job design is to integrate the needs of the individual with the organization requirements.Unlike job analyses which aims at studying thenature of the job etc.

List of Machine Tools, Equipment and Work Aidsused.

Job Design has options like Job Rotation, Jobenlargement, Job bandwidth, Job enrichment.Within Job Bandwidth there is a narrow job design(multi layers, narrow authority and responsibility)and Broad job design (job satisfaction due tovariety of task, empowerment, horizontal re-enforces and high productivity).

Job Context. Physical working conditions. Whetheexposed to heat, dust, toxic substances. Indooversus outdoor environment Organisationacontext. Social context. Work schedule. Incentives(financial and non financial)

Personnel Requirements: Specific skills, specificeducation and training. Work experience. Physicacharacteristics. Aptitude.

Q. 4. What are the modern sources and techniques of Recruitment?

Ans 4. The modern sources of Recruitment are:



3 Private Employment Agencies/Consultants: Public employment agencies or consultants likeABC Consultants in India perform recruitment functions on behalf of a client company by chargingfees. Line managers are relieved from recruitment functions and can concentrate on operationaactivities.

4 Public Employment Exchanges: The Government set up Public Employment Exchanges in thecountry to provide information about vacancies to the candidates and to help the organization infinding out suitable candidates. As per the Employment Exchange act 1959, makes it obligatory for

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public sector and private sector enterprises in India to fill certain types of vacancies through publicemployment exchanges.

5. Professional Organizations: Professional organizations or associations maintain complete bio-data of their members and provide the same to various organizations on requisition. They act as anexchange between their members and recruiting firm.

6 Data Banks: The management can collect the bio-data of the candidates from different sourceslike Employment Exchange, Educational Training Institutes, candidates etc and feed them in thecomputer. It will become another source and the co can get the particulars as and when required.

7 Casual Applicants: Depending on the image of the organization its prompt response participationof the organization in the local activities, level of unemployment, candidates apply casually for jobsthrough mail or handover the application in the Personnel dept. This would be a suitable source fortemporary and lower level jobs.

8 Similar Organizations: Generally experienced candidates are available in organizations producingsimilar products or are engaged in similar business. The Management can get potential candidatesfrom this source.

9. Trade Unions: Generally unemployed or underemployed persons or employees seeking change in

employment put a word to the trade union leaders with a view to getting suitable employment due tolatter rapport with the management.

10.Walk In: The busy organization and rapid changing companies do not find time to perform variousfunctions of recruitment. Therefore they advise the potential candidates to attend for an interviewdirectly and without a prior application on a specified date, time and at a specified place.

11.Consult In: the busy and dynamic companies encourage the potential job seekers to approachthem personally and consult them regarding the jobs. The companies select the suitable candidatesand advise the company regarding the filling up of the positions. Head hunters are also called searchconsultants.

12.Body Shopping: Professional organizations and the hi-tech training develop the pool of human

resource for the possible employment. The prospective employers contact these organizations torecruit the candidates. Otherwise the organizations themselves approach the prospective employersto place their human resources. These professional and training institutions are called body shoppersand these activities are known as body shopping. The body shopping is used mostly for computerprofessionals. Body shopping is also known as employee leasing activity.

13.Mergers and Acquisitions: Business alliances like acquisitions, mergers and take over help ingetting human resources. In addition the companies do also alliances in sharing their human resourceon adhoc basis.

14.E_recruitment: The technological revolution in telecommunications helped the organizations touse internet as a source of recruitment. Organizations advertise the job vacancies through the worldwide wed (www). The job seekers send their applications through e-mail using the internet.

15.Outsourcing: Some organizations recently started developing human resource pool by employingthe candidates for them. These organizations do not utilize the human resources; instead they supplyHRs to various companies based on their needs on temporary or ad-hoc basis.

Techniques of Recruitment:

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Recruitment techniques are the means or media by which management contacts prospectiveemployees or provide necessary information or exchanges ideas in order to stimulate them to apply for jobs. Management uses different types of techniques to stimulate internal and external candidates.

Techniques of Recruitment are divided into two viz Traditional and Modern:

Traditional Techniques Modern TechniquesPromotions Scouting Transfers Salary & PerksAdvertising ESOP’s

Traditional Techniques of Recruitment:

1. Promotions : Most of the internal candidates would be stimulated to take up higher responsibilitiesand express their willingness to be engaged in the higher level jobs if the management gives themthe assurance that they will be promoted to the next higher level.

2. Transfers : employees will be stimulated to work in the new sections or places if the managementwishes to transfer them to the places of their choice.

3. Advertising: Advertising is a widely accepted technique of recruitment, though it mostly providesone way communication. It provides the candidates in different sources, the information about the job and company and stimulates them to apply for jobs. It includes advertising through differentmedia like newspapers, magazines of all kind, television etc. The technique of advertising shouldaim at attracting attention of the prospective candidates ii) creating and maintaining interest andstimulating action by the candidates.

Management in order to achieve these objectives of advertising has to:- Analyse job requirements- Decide who does what- Write the copy- Design the advertisement- Plan and select the media and

- Evaluate response.

Modern Techniques of Recruitment:

1. Scouting : Scouting means sending the representation of the organizations to various sources ofrecruitment with a view to persuading or stimulating the candidates to apply for jobs. Therepresentatives provide information about the company and exchange information and ideas andclarify the doubts of the candidates.

2. Salary and Perks : Companies stimulate the prospective candidates by offering higher level salarymore perks, quick promotions etc.

3. ESOP’s: Companies recently started stimulating the employees by offering stock ownership to theemployees through their Employees Stock Ownership Programmes (ESOPs)

ESOP AT ALCATEL

Alcatel, the first every global stock option programme has received the highest percentage ofsubscriptions from India. 84% of the Indian employees have taken up the offer. The stock option plancovered 50 countries and almost 60,000/- put of the total 1.2lakh employees participated in the planAlcatel offered 2.25 million shares and 9 million stock options under the programme. For each sharesubscribed, the employee had the right of four stock options and they were allowed to invest upto onefourth of the gross annual salary. ESOP stimulated may candidates to seek jobs in ALCATEL.

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Q5. A situational combination of rewards and punishments can effectively motivate men, Isthe statement true or false. Explain.

And 5. This statement can be considered true as well as false depending on the situation and also theleadership style that the Co., adopts to get the job done from its employees in the most fruitful way. Insome cases this situation will work and in some cases it may not. Hence as a general statement itcannot be wholly considered true or wholly considered false. Every human being needs to be motivatedto work in a desired way and give a desired output. Motivation is derived from the word Motive. Motiveis an inner state that energizes, activates or moves and directs or channels behaviour towards goals”.

Motivation represents an unsatisfied need which creates a state of tension or disequilibrium causing theindividual to move in a goal directed pattern towards restoring a state of equilibrium by satisfying theneed. It is a degree of readiness of an organization to pursue some designated goal and implies thedetermination of the nature and locus of the forces, including the degree of readiness.

The Basic Process of Motivation = Needs------------------Drives---------------------- Goals/Incentives(Deficiency) Deficiency with Direction Reduction of drives

& fulfils deficiencies.

To understand the relationship of rewards and punishments tactic used to motivate men one mustunderstand the Objective of motivation. It is a bare fact that most of us use only a small portion of ourmental and physical abilities. To exploit the unused potential in people they are to be motivated. Suchexploitation leads to greater efficiency, higher production and better standards of living of the people. To achieve this un tapped potential one must either use the rewards or punishment way to achieve thedesired goals.

Types of motivation: There are two ways by which people can be motivated. One is a positive approachor pull mechanism which can be considered as a reward approach and the second is a negativeapproach or push mechanism which can be considered as punishment tactic.

Positive Motivation (Reward): People are said to be motivated positively when they are shown a

reward and the way to achieve it. Such a reward way may be financial or non-financial. Monetarymotivation may include different incentives, wage plans, productive bonus schemes etc. Non-monetarymotivation may include praise for work, participation in management, social recognition etc. Monetaryincentives provide the worker a better standard of life while non-monetary incentives satisfy the ego ofa man. Positive motivation seeks to create an optimistic atmosphere in the enterprise. Human beingsalso have an inherent desire to prosper, and be financially strong. To achieve this psychological needan employee would work hard to achieve desired goals and in such a case the Reward mechanism willwork to motivate him and prove an efficient worker.

Negative Motivation (Punishment): By installing fear in the minds of people, one can get thedesired work done. In this method of motivation, fear of consequences of doing something or not doingsomething keeps the worker in the desired direction. This method has got several limitations. Fearcreates frustration, a hostile state of mind and an unfavorable attitude towards the job which hinders

efficiency and productivity. So the use of it should be kept minimum. It may work in a smalorganization but it is a very risky strategy to adopt in a unionized firm.

In short a combination of rewards and punishment is not the only way to effectively motivate anemployee. An employee responds very well only if rewards are seen. He may be demotivated whenpunishment is used. It he is fearless, and a trouble maker and have a backing by the union he may notfear any punishment. He may influence the others who are afraid of the punishment not to perform. Insuch a situational there will be difference of opinion, industrial dispute, and unrest at the work place. Insuch a situation meeting deadline and goals of the Co., will go in the background.

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Q.6. 360 degrees Performance Appraisal mostly can do away with biased approach whileassessing an employee. Do you agree with the above statement. Give your views.

Ands 6. Yes, it is true that 360 degrees of Performance Appraisal can do away with biased approachwhile assessing an employee. The appraiser may be any person who has thorough knowledge about the job content, contents to be appraised, standards of contents and who observes the employee whileperforming a job. The appraiser should be capable of determining what is more important and what isrelatively less important. He should prepare reports and make judgements without bias. Typicaappraisers are supervisors, peers, subordinates, employees themselves, user of service and customersPerformance appraisal by all these parties is called 360 degree performance appraisal. Pond’s, GeneralElectric, Hindustan Lever Limited. Grasim, Colgate – Palmolive, Hewett Packard, practice 360 degreeperformance appraisal. Appraisal is an appraisal which is an appraisal which is an unbiased way ofappraisal and is conducted.

Examples of Performance AppraisalXerox Provide a core set of metrics for use across the organization. Toyota Focus performance reviews on goals rather than number to

ensure employee alignment.Federal Express Daily Performance Measurement Reporting.Fed Ex Design a Balanced Scorecard performance measurement system

Here the performance appraisal is not just done across the table. In this technique the employee isobserved while performing a job. A report is done by the appraiser based on what he has observed These are facts that cannot be disputed by either the appraiser or employee. This kind of appraisal ismore performance and result based. There is no room for manipulation of performance on paper by theappraiser. Hence the appraiser cannot be biased or favour the employee he wishes too. Secondly itinvolves the opinion of other too, like peers, other employees, the employee himself etc. It is not thereport of just one person who could be biased otherwise.

The whole process of a 360 degree appraisal is discussed as under:

Supervisors: Supervisors include superiors of the employee, other superiors having knowledge aboutthe work of the employee and department head or manager. General practice is that immediatesuperior appraises the performance which in turn is reviewed by the departmental head/manager.

Peers: Peer appraisal may be reliable if the work group is stable over a reasonably long period of timeand performs tasks that require interaction. However, little research has been conducted to determinehow peers establish standards for evaluating others or the overall effect of peer appraisal on thegroup’s attitude.

Subordinates: The concept of having superiors rated by subordinates is being used in mostorganizations today, especially in developed countries. Such a novel method can be useful in otherorganizational settings too provided the relationships between superiors and subordinates are cordial.

Self Appraisal: If individuals understand the objectives they are expected to achieve and thestandards by which they are to be evaluated, they are to a great extend in the best position to appraisetheir own performance. Also since employee’s development means self development, employees whoappraise their own performance may become highly motivated. Thermax, escorts, Wipro etc implement

self appraisal.

Users of Services/Customers: Employee performance in service organizations relating tobehaviours, promptness, speed in doing the job and accuracy can be better judged by the customer orusers of services. For eg. Teacher’s performance is better judged by students and performance of adoctor is judged by patients.

Consultants: Sometimes consultants may be engaged for appraisal when employees or employers donot trust supervisor appraisal and the management does not trust self appraisal, peer appraisal orsubordinate appraisal. In this situation, consultants are trained and they observe the employee at workfor a sufficiently long time for the purpose of appraisal.

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Q7. For internal mobility Management Development Programme is a must. Comment.

Ans 7. Management development is a systematic process of growth and development by which themanagers develop their abilities to manage. So it is the result of not only participation in formal coursesof instruction but also of actual job experience. It is concerned with improving the performance of themanager by giving them opportunities for growth and development, which in turn depends onorganization structure of the company. The role of the company in management development is toestablish the programme and develop opportunities for its present and potential managers.

Management development concept works on a technique that help develop the Manager and hencehelps in internal mobility. It makes a manager helps a manager to think differently and take wisedecisions. The Management Development Programme is designed with a view to achieving specificobjectives which are very essential for internal mobility in an organization. The need can be defined asunder:

1. It overhauls the management machinery.2. It improves the performance of the manager.3. It gives the specialists an overall view of the functions of an organization and equips them to co-

ordinate each others efforts effectively.4. It increases the morale of the members of the management group.5. It increases versatility of the management group.6. It keeps the executives abreast with the changes and developments in their respective fields.7. It creates the management succession which can take over in case of contingencies.8. It improves the thought process and analytical ability.9. It broadens the outlook of the executives regarding his role position and responsibilities.10. It helps to understand the conceptual issues relating to economic, social and technical rears.11. it helps understand the problems of human relations and improve human relation skills and12. It stimulates creative thinking.

The need for Management Development for internal mobility arises due to the following reasons:

1. Techno managers like basic chemical engineers, mechanical engineers, information/systemsengineers need to be developed in the arrears of managerial skills, knowledge and abilities.

2. Professionalisation of management at all levels particularly in service organizations need thedevelopment of managerial skills and knowledge particularly at lower and middle levels.

3. The need for management development arises due to providing technical skills and conceptuaskills to non technical managers and managerial skills and conceptual skills to technicamanagers.

4. The emergence of new concepts in management like Total Quality Management (TQM)Enterprise Resource Planning, Business Process Re-engineering, Empowerment etcnecessitates the management to offer developmental programmes.

5. Entry of multinational and transnational corporations brought new trends and strategies fothe domestic companies also. These factors necessitated the domestic companies toundertake developmental programmes.

There are mainly two types of methods by which managers can acquire the knowledge, skills andattitudes and make themselves competent managers. One is through formal training and the other isthrough on job experiences. This is very essential because a manager will learn the processes that takeplace for different jobs. He may specialize in one subject but to have an idea of how things are in anotherarea of specialization is the intention of MDP.

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Some of the Job techniques that facilitate internal mobility are:

The important on the job techniques are coaching, job rotation, under study and multiple management.

Technique Suitability Job Rotation This is particularly useful in development of diversified skills and to give

executives a broader outlook, which are very important to the uppemanagement levels.

Understudy An understudy is normally chosen with forethought of making available tothe organization a subordinate who is equal to his superior in the event ofretirement, illness or death of the superior. The subordinate will be able totake over his position and manage as effectively as his boss could.

Multiple Management This technique is mainly useful in bringing the managers out of their narrowshells and helps them gain a broader outlook and knowledge in differentfunctional areas.

Case Study In the development of executive and analytical and decision making skillsthis technique is used.

Incident Method The technique improves one’s intellectual ability, practical judgment andsocial awareness.

Role Playing Role playing helps executives in understanding people better by givingthem vicarious experiences.

In Basket Situational judgment and social sensitivity are the two important qualitiesthat can be developed with the help of this method.

Business Games This technique is used in order to develop organizational ability, quicknessof thinking and leadership.

Sensitivity Training This helps one know more about himself and the impact of his behaviour onothers, which are important to manage people better.

Simulation Problem solving through decision-making can be developed quite well withthe help of simulation.

Managerial Grid To develop leadership qualities in executives over a long period of time.

Conferences The most difficult thing for any one is to change his own attitude. Thistechnique develops the ability of the executives to modify their attitudeswhen needed in the interest of the organization.

Lectures This is the best technique to give more knowledge in a short period of timeto a large number of participants.

With the above, it is very clear that Management Development Programme is just inevitable and has tobe conducted to facilitate internal mobility.

Q.8. Write short notes on any three of the following.a) Probationary period b) Sons of soil theory in recruitmentc) Appraisal by Peers d) Career Development e) Maslows theory ofneeds

a) Probationary Period: Probation period is a time when an employee is employed in theorganization with the intention of becoming permanent but subject to his performanceduring the probation period. During this period he is not entitled to the benefits that apermanent employee enjoys. The probation period is a period where the employee andemployee get a chance to review the suitability to the organization. The period is usually 6months to 1 year. During this period the employee’s performance is reviewed and hissuperior updates him if he is not in line with the company’s expectation. If he needs toimprove in any area than he is informed to do so before the probationary period is over. Thiswould thus help him in getting a permanent placement in the organization. Every permanentemployee is a liability to the organization. There are many facilities, statutory dues etc., that

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the Co., needs to comply towards a permanent employee. So every employer prefers toreview an employee during the probation period before he brings him on permanent roll. Ifthe performance of the employee is not satisfactory the employer may not employ him in hisorganization. In case of a permanent employee it is not easy for the employer to throw himout of the Co., if he is not satisfied with his performance.

b) Sons of the soil theory in Recruitment: The sons of the soil theory basically mean thelocals should be given a chance to work for a Co; that is set up in their area of residence orthe state that they belong too. The Co’s today are going to remote places for cheaper landand setting up their businesses in remote arrears. In such cases the locals seek foremployment. The advantage is that cheap labour is available to the Co., compared to gettingits own people and paying them higher salaries and giving them additional facilities to workat a place away from their regular set-up (residence). However in son of the soil there is agreat disadvantage. The locals may not be as educated and skillful as the job requirement. Insuch case the Co., may not get the desired output even if they give them training etc. But incertain places it is not easy to set up a Co., without the local support and hence the Co., isforced to cater to the sons of the soil theory in recruitment.

c) Appraisal by Peers: It is performance appraisal used in a 360 degree performanceappraisal. The appraisal is done by the Peer group of the employee to be appraised. Peerappraisal may be reliable if the work group is stable over a reasonably long period of timeand performs tasks that require interaction. However, little research has been conducted todetermine how peers establish standards for evaluating others or the overall effect of peerappraisal on the group’s attitude.

d) Career Development: Career development is those personal improvements oneundertakes to achieve a personal career plan. Career development has four steps. They are1. Needs-defining the present system 2. Vision-determining new directions and possibilities3. Action plan-deciding on practical first steps and results – maintaining the change.Needs: This step involves in the conducting of needs assessment as a training programme.Vision: The needs of the career system must be linked with the interventions. An idea

development system known as the vision links the needs with the interventions.Action Plan: An action plan should be formulated in order to achieve the vision. The supportof the top management should be obtained in this process.Results: Career development programme should be integrated with the organization’s on-going employee training and management development programmes. The programmeshould be evaluated from time to time in order to revise the programme.

e) Maslows Theory of Needs. According to Maslow, human needs form a hierarchy, staring atthe bottom with the physiological needs and ascending to the highest need of selactualization. He says when one set of needs is satisfied; they no longer work as motivatorsas a man seeks to satisfy the next higher level of needs.

__________________________________________________

Need for Self-Actualization __________________________________________________ Physiological Needs

__________________________________________________ Esteem Needs

__________________________________________________ Social Needs -Affiliation orAcceptance Needs

__________________________________________________ Security of Safety Needs


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__________________________________________________ MASLOW”S HIERACHY OF NEEDS

==========================================

The Need Hierarchy:

Physiological Needs: These are the basic necessities of human life, food, water, warmth, shelter,sleep and sexual satisfaction. Maslow says that until these needs are satisfied to the required levelman does not aim for the satisfaction of next level of needs. As far as work environment isconcerned, these needs include basic needs like pay, allowance, incentives and benefits.

Security/Safety Needs: These refer to the need to be free of physical danger or the feeling of lossof food, job or shelter. When the physiological needs are satisfied, man starts thinking of the way bywhich he can satisfy his safety needs. Security needs spring up the moment he makes an effort inthe direction of providing himself the source of continuity of physiological needs. In a workenvironment these needs include conformity, security plans, membership in unions, severance payetc.

Social Needs: (Affiliation or Acceptance Needs) When the physiological and security needs aresatisfied, these social needs begin occupying the mind of a man. This is exactly why he looks for the

association of other human beings and strives hard to be accepted by this group. Social needs atthe work place include: Human relations, formal and informal work groups.

Esteem Needs: These needs are power, status and self confidence. Every man has a feeling ofimportance and he wants others to regard him highly. These needs makes people aim high andmake them achieve something great. These needs for employees include status symbols, awardspromotions, titles etc.

Self Actualization Needs: This is the highest need in the hierarchy. This refers to the desire tobecome what one is capable of becoming. Man tries to maximize his potential and accomplishsomething, when this need is activated in him.

**************ALL THE BEST******************

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Attempt any five questions Total 100 marksAll questions carry equal marksAnswers should be in sufficient detail with Practical examples and illustrations. __________________________________________________________________________________________________________Q1. Discuss the functions of Human Resource Management in an organization. Enumerate thechallenges of HRM in the present organizational context.

Ans 1. The functions of HRM can be broadly classified into two categories viz 1) Managerial Functions 2)Operative Functions :

FUNCTIONS OF HRMManagerial Functions Operative FunctionsPlanning EmploymentOrganising Human Resources DevelopmentDirecting CompensationControlling Human Relations

Industrial RelationsRecent Trends in HRM

1. Managerial Functions: Managerial functions of personnel management involve planning, organizingdirecting and controlling.

Planning: It is pre-determined course of action. Planning pertains to formulating strategies of personneprogrammes and changes in advance that will contribute to the organizational goals. It involves planningof human resources, requirements, recruitment, selection, training etc. It also involves forecasting of

personnel needs, changing values, attitudes and behaviour of employees and their impact on theorganization.

Organising : An organization is a means to an end. It is essential to carry out the determined course ofaction. An organization is a structure and a process by which a co-operative group of human beingsallocates its task among its members, identifies relationships and integrates its activities towards acommon objective. Complex relationships exist between the specialized departments and the generadepartments as many top managers are seeking the advice of the personnel manager. Thus anorganization establishes relationships among the employees so that they can collectively contribute tothe attainment of company goals.

Directing : The next logical function after completing planning and organizing is the execution of theplan. The basic function of personnel management at any level is motivating, commanding, leading and

activating people. The willing and effective co-operation of employees for the attainment oorganizational goals is possible through proper direction. Tapping the maximum potentialities of thepeople is possible through motivation and command. Co-ordination deals with the task of blending effortsin order to ensure successful attainment of an objective.

Controlling: After planning, organizing and directing various activities of personnel management, theperformance is to be verified in order to know that the personnel functions are performed in conformitywith the plans and directions of an organization. Controlling also involves checking, verifying andcomparing of the actuals with the plans, identification of deviations if any and standards throughcontrols. Auditing training programmes, analyzing labour turnover records, directing morale surveysconducting separate interviews are some of the means of controlling the personnel management functionand making it effective.

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2. Operative Functions: The operative functions of human resources management are related tospecific activities of personnel management viz, employment, development, compensation and relationsAll these functions are interacted with managerial functions.

Employment: It is the first operative function of Human Resource Management. Employment isconcerned with securing and employing the people possessing the required kind and level of humanresources necessary to achieve the organizational objectives. It covers functions such as job analysis,human resource planning, recruitment, selection, placement, induction and internal mobility.

Human Resource Development: It is a process of improving, molding and changing the skillsknowledge, creative ability, aptitude, values, commitment etc., based on present and future job andorganizational requirements. It includes Performance Appraisal, Training, Management DevelopmentCareer Planning and Development, Internal Mobility, Transfer, Promotion, Demotion, Change andOrganisational Development.

Compensation: It is a process of providing adequate, equitable and fair remuneration to the employeesIt includes job evaluation, wage administration and salary administration, incentives, bonus, fringebenefits, social security measures etc.

Human Relations: Practicing various human resources policies and programmes like employmentdevelopment and compensation and interaction among employees create a sense of relationshipbetween the individual worker and management, among workers and trade unions and the management.It is a process of interaction among human beings. Human relations is an rear of management inintegrating people into work situations in a away that motivates them to work together productively co-operatively and with economic, psychological and social satisfaction. It includes:

- Understanding and applying the models of perception, personality, learning, intra and intepersonnel relations, intra and inter group relations.

- Motivating the employees- Boosting employee morale- Developing the communication skills- Developing the communications skills

- Redressing employee grievances properly and in time by means of a well-formulated grievanceprocedure.

- Handling disciplinary cases by means of an established disciplinary procedure.- Counseling the employees in solving their personal, family and work problems and releasing thei

stress. Strain and tensions.- Improving quality of work life of employees through participation and other means.

Industrial Relations: Industrial relations refer to the study of relations among employees, employergovernment and trade unions. Industrial relations include:- Indian labour market- Trade unionism- Collective bargaining- Industrial conflicts

- Worker’s participation in management and- Quality circles

Recent Trends in HRM : Human Resources Management has been advancing at a fast rate. Therecent trends in HRM include:- Quality of work life- Total quality in human resources- HR accounting, audit and research and- Recent techniques of HRM

The challenges of HRM in the present organizational context.

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A goal seeking organizations especially one that seeks improvement over the current situation is achallenge, taking organization. When many such goals are pursued tremendous internal pressures someof them conflicting, tend to be generated. Unless the organization develops mechanisms for coping withthese self-generated pressures, it may face major failure and suffer disastrous retreats from its goal.

Human Resource function cannot be performed in a vacuum. There are many challenges that it has toface to survive. All these challenges are discussed below.

1. Technological factors: Just as necessity is the mother of invention competition and a host ofother reasons are responsible for the rapid technological changes and innovations. As aconsequence of these changes, technical personnel, skilled workers, computer operators andmachine operators are increasingly required while the demand for other categories of employershas declined. Hence procurement of skilled employees and their increase in numbers to match thechanging job requirements has become a complicated task.

2. Human Resource in the Country: The structure, values and the level of education of humanresource in a country influence much of the Human Resource function. The influence of manpowerin the country can be studies through the changes in structure of employment.a. Change in the Structure of Employment: The structure of employment in an organizationchanges with the entrance of workforce with different backgrounds (Social economic, region

community, sex, religion, traditions culture etc). There has been a significant change in thestructure of employment with the entry of 1) candidates belonging to the schedule castesschedules tribes and backward communities. 2) More female employees, due to increased careerorientation among women to the suitability of women for certain jobs and to women becomingmore acclimatized to the working climate and higher level of commitment. 3) The workforceconsists of different regions but due to increased transportation facilities and mobile character ofpeople. These changes in workforce are a challenge and a complicated task of HR function. It hasto deal with employees with different backgrounds.

3. Changes in employee Roles and their Values: Earlier the management could totally controits employees and get the desired output. Today the employees have to be considered as apartner in the organization. Changing structure of workforce has led to the introduction of newvalues in organization. Among these are moves 1) emphasis on quality of life rather than quantity

ii) equality and justice for employees over economic efficiency iii) participation over authority. iv)Workers now prefer flexible working hours to fixed time schedule. v) Level of education in recentyears is comparatively very higher. Increased formal education has led to the change of attitudeof the employees.

4. Changing demands of employer: changes always are not on the side of employeesOrganizations also undergo changes and consequently their demands on employees will alsochange. The information technological revolution and neck to neck marketing competition of mostof the organizations due to globalization demand that the existing employees adopt to the ever-changing work situation and learn new skills, knowledge etc to cope with the new changes.

5. Government and Legal factors: Until 1940 the government was not involved or interestedregarding the problems of labor or industry. But the need for Govt., interference arose out of the

belief that Government is the custodian of industrial and economic activities. The role of thegovernment in business has after 1991 with the announcement of economic liberalizationHowever awareness of legislations is very important like the Factory Act, 1948, Trade Union act1962, Payment of wages Act 1936, The Minimum Wages Act 1923, The Payment of Bonus Act1965, The Employment Exchange Act, Standing Order Act 1946, Maternity Benefit Act 1961, and The Apprentice Act 1961. All these acts if not complied with can get the organization into deeptrouble.

6. Customers: Organizations produce products or render services for the ultimate consumption useby the customer. In other words organizations depend upon customers for their survival andgrowth. Customers revolt against employees, if the services rendered are less qualitative. The

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banks face such type of challenges. Customers may develop a negative attitude towards theorganization, if it does not follow the social policies of the country. Hence the customers pose achallenge special ally in service industry.

7. Social factors: Social environment consists of class structure, mobility social roles social valuesnature and development of social institutions caste structure and occupational structuretraditions, religion culture etc. To cater to everyone’s requirement and keep them happy is a bigchallenge faced by HR today.

Q2. What is Manpower Planning? Discuss the process and importance of Man Power Planningin an organization .

Ans2. Ans 2. Manpower planning means planning means deciding the number and type of the humanresources required for each job, unit and the total company for a particular future date in order to carryout organizational activities. Manpower planning may be viewed as foreseeing the human resourcesrequirement of an organization and the future supply of human resources and (i) making necessaryadjustments between these two and organizational plans and (ii) foreseeing the possibility of developingthe supply of manpower resources in order to match it with the requirements by introducing necessarychanges in the functions of human resources management.

The process of manpower planning in an organization.

- Analysing the corporate and unit level strategies.- Demand Forecasting: Forecasting the overall human resources requirements in accordance

with the organisational plans.- Supply Forecasting: Obtaining the data and information about the present inventory o

manpower and forecast the future changes in the human resources inventory.- Estimating the net manpower requirement.- In case of future surplus than plan for redeployment.- In case of future deficit, forecast the future supply of manpower from all sources with

reference to plans of other companies.- Plan for recruitment, development and internal mobility if future supply is more than or

equal to net manpower requirements.

- Plan to modify and adjust the organizational plan if future supply will be inadequate withreference to future net requirements.

- Degree of uncertainty and length of planning period.

The above points are discussed in details:

Demand Forecasting: The existing job design and analysis may thoroughly be reviewed keeping inview the future capabilities, knowledge and skills of present employees. Further the jobs should beredesigned and reanalyzed keeping in view the organizational and unit wise plans and programmesfuture work quantum, future activity or task analysis, future skills, values, knowledge and capabilities ofpresent employees and prospective employees. The jobs generally should be designed and analysedreflecting the future human resources and based on future organizational plans. Job analysis and forecastabout the future components of human resources facilitate demand forecasting. One of the important

aspects of demand forecasting of the quantity of human resources (skill, knowledge values, capabilitiesetc) in addition to quantity of human resources. Important forecasting methods are:

1. Managerial Judgment: Under this method, managers decide the number of employeesrequired for future operations based on their past experience.

2. Statistical Techniques Include: ratio trend analysis and econometric models. Under ratiotrend analysis, ratios are calculated for the past data and these ratios are used for theestimation of the future manpower requirements For eg.

- Present level of production (1-1-2005) 2000 units- Present number of foremen (1-1-2005) 5- Ratio is 2000/4 500

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- Estimated production as on (1-1-2005) 5000 units- Foreman required as on (1-1-2005) 5000/500 = 10

Econometric models for manpower planning are built up by analyzing the past statistical dataand by bringing the relationship among variables.

Work Study Techniques: Under this method, total production and activities in terms of clearunits are estimated in a year. Then man-hours required to produce each unit is calculated,Later the required number of employees is calculated. For eg.

- Planned operations during 2005 = 1,60,000 units- Standard man-hours needed to perform each unit in 2005 = 0.25- Planned man-hours needed per year in 2005 = 40,000- Work ability per employee in man-hours in 2005 = 2,000- Number of employees required in 2005 = 40000/20000=20

Supply Forecasting The first step of forecasting the future supply of human resources is to obtain the data and informationabout the present human resources inventory.

Existing Inventory: The data relating to present human resources inventory in terms of humans

components, number, designation-wise and department wise would be obtained. Principal dimensionsof manpower planning are:4. Head counts regarding total, department wise, sex-wise, designation-wise, skill-wise, pay roll wise

etc.5. Job Family Inventory: It includes number and category of employees of each job family i.e. all jobs

related to the same category like clerks, cashiers, sub job family i.e. all jobs having common jobcharacteristics (skill, qualification, similar operations) like production engineer (mechanical) andmaintenance engineer (mechanical) and broad families like general administration, productionetc.

6. Age Inventory: It includes age-wise number and category of employees. It indicates age wiseimbalances in present inventory, which can be correlated in future selections and promotions.

Existing inventory at a future date is calculated as follows:

Existing inventory at = Present Inventory + Potential additions - Potential LossesA future date as on today

Estimating the Net Man Power Requirements: Net manpower requirements in terns of number andcomponents are to be determined in relation to the overall manpower requirements for a future dateand supply forecast for that date. The difference between overall manpower and future supply ofmanpower is to be found out. The difference is the net manpower requirement.

Action Plan for Redeployment, Redundancy/Retrenchment: If future surplus is estimated, theorganization has to plan for redeployment, redundancy etc. If surplus is estimated in some jobs/departments, employees can be redeployed in other jobs/departments where the deficit oemployees is estimated. The organization should also plan for training or re-orientation beforeredeployment of employees. Redeployment takes place in the form of transfers. If the deficit is not

estimated in any job/department and surplus is estimated for the entire organization, the organization,in consultation with the trade unions has to plan for redundancy or retrenchment.

Recruitment and Selection Plan: Recruitment and selection plan covers the number and type ofemployees required, when they are required for the job, time necessary for recruitment and selectionprocess, recruitment sources, recruitment techniques to be used, selection procedure to be adoptedand selection techniques to be used to subsequently recruiting the required candidates. It also coversthe time factor for induction, preliminary training and placement.

The importance of manpower planning in an organization is :

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1. to recruit and retain the manpower of required quality and quantity.2. to foresee the employee turnover and make the arrangements for minimizing turnover and

filling up of consequent vacancies.3. to meet the needs of the programmes of expansion, diversification etc.4. to foresee the impact of technology on work, existing employees and future human resource

requirements.5. to improve the standards, skill, knowledge, ability, discipline etc.6. to assess the surplus or shortage of manpower and take measures accordingly.7. to maintain congenial industrial relations by maintaining optimum level and structure o

human resources.8. to minimize the imbalances caused sue to non-availability of human resources of the right

kind, right number in right time and right place.9. to make the best use of its human resources and10. to estimate the cost of human resources.

Q3. Discuss the sources of recruitment for an organization. Describe the steps in theselection procedure in an organization.



1. Present Permanent Employees: Organizations consider the candidates from this source forhigher level of jobs due to availability of most suitable candidates for jobs relatively or equally toexternal sources, to meet the trade union demands and due to the policy of the organization tomotivate the present employees.


3. Retrenched or Retired Employees: Employees retrenched due to lack of work are given

employment by the organization due to obligation, trade union pressure etc. Sometimes they are re-employed by the organization as a token of their loyalty to the organization or to postpone someinterpersonal conflicts for promotion.





16. Private Employment Agencies/Consultants: Public employment agencies or consultants likeABC Consultants in India perform recruitment functions on behalf of a client company by chargingfees. Line managers are relieved from recruitment functions and can concentrate on operationalactivities.

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17. Public Employment Exchanges: The Government set up Public Employment Exchanges in thecountry to provide information about vacancies to the candidates and to help the organization infinding out suitable candidates. As per the Employment Exchange act 1959, makes it obligatoryfor public sector and private sector enterprises in India to fill certain types of vacancies throughpublic employment exchanges.

18. Professional Organizations: Professional organizations or associations maintain complete bio

data of their members and provide the same to various organizations on requisition. They act asan exchange between their members and recruiting firm.

19. Data Banks: The management can collect the bio-data of the candidates from different sourceslike Employment Exchange, Educational Training Institutes, candidates etc and feed them in thecomputer. It will become another source and the co can get the particulars as and when required.

20. Casual Applicants: Depending on the image of the organization its prompt responseparticipation of the organization in the local activities, level of unemployment, candidates applycasually for jobs through mail or handover the application in the Personnel dept. This would be asuitable source for temporary and lower level jobs.

21. Similar Organizations: Generally experienced candidates are available in organizations

producing similar products or are engaged in similar business. The Management can get potentiacandidates from this source.

22. Trade Unions: Generally unemployed or underemployed persons or employees seeking changein employment put a word to the trade union leaders with a view to getting suitable employmentdue to latter rapport with the management.

23. Walk In: The busy organization and rapid changing companies do not find time to performvarious functions of recruitment. Therefore they advise the potential candidates to attend for aninterview directly and without a prior application on a specified date, time and at a specifiedplace.

24. Consult In: the busy and dynamic companies encourage the potential job seekers to approachthem personally and consult them regarding the jobs. The companies select the suitablecandidates and advise the company regarding the filling up of the positions. Headhunters are alsocalled search consultants.

25. Body Shopping: Professional organizations and the hi-tech training develop the pool of humanresource for the possible employment. The prospective employers contact these organizations torecruit the candidates. Otherwise the organizations themselves approach the prospectiveemployers to place their human resources. These professional and training institutions are calledbody shoppers and these activities are known as body shopping. The body shopping is usedmostly for computer professionals. Body shopping is also known as employee leasing activity.

26. Mergers and Acquisitions: Business alliances like acquisitions, mergers and take over help in

getting human resources. In addition the companies do also alliances in sharing their humanresource on adhoc basis.

27. E_recruitment: The technological revolution in telecommunications helped the organizations touse internet as a source of recruitment. Organizations advertise the job vacancies through theworldwide wed (www). The job seekers send their applications through e-mail using the Internet.

28. Outsourcing: Some organizations recently started developing human resource pool by employingthe candidates for them. These organizations do not utilize the human resources; instead theysupply HRs to various companies based on their needs on temporary or ad-hoc basis.

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observing the discussion of others, clarifying controversial issues, influencing others, speakingeffectively, concealing and mediating arguments among the participants and summarizing oconcluding aptly. The selection panel, based on its observations, judges the candidate’s skills andability and ranks them according to their merit.

BUSINESS GAMES AND THEIR UTILITY IN THE SELECTION PROCESSBusiness Games Utility(1) Case Study Analytical, judgmental and decision-making skills(2) Role Play Human relations skills.(3) In-basket method Situational judgment, social relations, decision-making skills

problem-solving skills.(4) Sensitivity Degree of openness, concern for others, tolerance for individua

differences.(5) Simulations Encountering skills.

5. Test: Psychological tests play a vital role in employee selection. A psychological test isessentially an objective and standardized measure of sample of behaviour from which inferencesabout future behaviour and performance of the candidate can be drawn.

Types of Test1. Aptitude Tests:

(a) Intelligence Test (IQ)(b) Emotional Quotient(c) Skill Tests(d) Mechanical Aptitude(e) Psychomotor Tests(f) Clerical Aptitude Tests

2. Achievement Tests:(a) Job Knowledge Test(b) Work Sample Test

3. Situational Tests:(a) Group Discussion(b) In Basket

4. Interest Test5. Personality Tests:

(a) Objective Tests(b) Projective Tests

6. Multi-Dimensional Testing

Eg.: Multi-Skilling: Multi-Dimensional Testing: L&G has realised that most of the company operationswhether they are production or marketing or finance or human resources can be done by almost all theemployees. Experts are needed only in rare cases. Infact, services of the experts can be outsourced. Assuch, L&G started selecting the candidates with multi-skills and who can perform a variety of functions.L&G developed multi-dimensional testing.

Types of Interview: The types of Employment interviews are:1. Preliminary Interview

(a) Informal Interview This is the interview, which can be conducted at any place by any person to secure the basic andnon-job related information. It is the interaction between the candidate and the personal managerwhen the former meets the latter to enquire about the vacancies or additional particulars inconnection with the employment advertisement etc.

(b) Unstructured InterviewIn this interview the candidate is given freedom to tell all about himself by revealing his knowledgeon various items/arrears, his background, expectations, interest etc. The interviewer also mayanswer some information required by the candidate.

2. Core Interview: It is normally the interaction between the candidate and the line executive or

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the employees’ positive attitude contribute much rather than employees skills and knowledgeEmployees with positive attribute contribute much to the organization. Hence the interviewers look forthe candidates with the right attitude while making final decisions.

Attitude Counts Much, but not the Skill

InfoTech Limited discovered that the employees with right attitude take up the activities willingly on theirown. They acquire the necessary skills, if they do not possess them. They never say ‘no’ to otheremployees, superiors and customers. Hence the interviewers with right and or positive attitudeirrespective of their technical al skills and knowledge.

Medical Examination : Certain jobs require certain physical qualities like clear vision, perfect hearingunusual stamina, tolerance of hardworking conditions, clear tone etc. Medical examination revealswhether or not a candidate possesses these qualities.

Reference Checks: After completion of the final interview and medical examination, the personnedepartment will engage in checking references. Candidates are required to give the names of referencesin their application forms. These references may be from the individuals who are familiar with thecandidates academic achievement or from the applicants previous employer, who is well versed with theapplicant’s job performance, and sometimes from co-workers.

Final Decision by Line Manager : The Line Manager concerned has to make the final decision whetherto select or reject a candidate after soliciting the required information through differentechniques discussed earlier. The line manager has to take much care in taking the final decisionnot only because of economic implications and of the decisions but also because of behaviouraand social implications.

Job Offer : After taking the final decision the organization has to intimate this decision to the successfulas well as unsuccessful candidates. The organization offers the job to the successful candidateeither immediately. The candidate after receiving the job offer communicates his acceptance tothe offer or requests the company to modify the terms and conditions of employment or rejectsthe offer.

Employment: The company may modify the terms and conditions of employment as requested by thecandidate. The Company employs those candidates who accept the job offer with or withoutmodifications of terms and conditions of employment and place them on the job.

Q4. Discuss the importance of training and development in organizations. How do youidentify the training needs in an oraganisation? Describe the different methods of training.

Ans. 4. Importance of training and development in organizations : The importance of HRM to alarge extend depends on human resources development and training is its most important technique. Noorganization can get a candidate who exactly matches with the job and the organizational requirements.

Hence training is important to develop the employee and make him suitable to the job. Training workstowards value addition to the company through HRD. Organisational efficiency, productivity, progressand development to a large extend depends on training. If training is not provided it leads toperformance failure of the employees.Organisational objectives, like stability, viability and growth canalso be achieved through training. Training is important as it constitutes a significant part ofmanagement control. Training enhances 4Cs viz competence, commitment, creativity and contributionfor the organization.

Identification of training needs: Training needs are identified on the basis of organizational anaylsis job analysis and manpower analysis. Training needs are those aspects necessary to perform the job in anorganization in which employee is lacking attitude/aptitude, knowledge and skills. Basically there are two

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type of analysis done to identify the training. One is the Organizational Analysis and the other IndividuaAnalysis.

Training needs = Job and organizational requirement-Employees specifications

Identification of Training NeedsSr. Group or Organizational Analysis Individual Analysis1. To identify Organizational goals and


2. Personnel/skill inventories Work sampling3. Organizational Climate indices Interviews4. Efficiency indices Questionnaires5. Exit interviews Attitude survey6. MBO or work planning systems Training progress7. Quality circles Rating scales8. Customer survey/satisfaction data Observation of behavior9. Consideration of current and projected

changes

The different methods of training:

There are basically two methods of training. 1) On-the-Job Methods and 2) Off-the job-Methods.

TRAINING METHODSOn the Job Methods Off The Job Methods

1. Job Rotation Vestibule Training2. Coaching Role Playing3. Job Instruction Lecture Methods4. Training through Step by Step Conference or discussion5. Committee Assignments Programmed Instruction

On the Job Training Methods : This type of training is also known as job instruction training. Under

this method the individual is place on a regular job and taught the skills necessary to perform that job The trainee learns under the supervision and guidance of a qualified worker or instructor. On the jobtraining has the advantage of giving first hand knowledge and experience under the actual workingconditions. While the trainee learns how to perform a job, he is also a regular worker rendering theservices for which he is paid. The emphasis is placed on rendering services in the most effective mannerrather than learning how to perform the job.

1. Job Rotation : This type of training involves the movement of the trainee from one job to another. Thetrainee receives job knowledge and gains experience from his supervisor or trainer in each of thedifferent job assignments. Though this method of training is common in training managers for generalmanagement positions, trainees can also be rotated from job to job in workshop jobs. This method givesan opportunity to the trainee to understand the problems of the employees on other jobs and respectthem.

2. Coaching : The trainee is placed under a particular supervisor who functions as a coach in training theindividual. The supervisor provides feedback to the trainee on his performance and offers somesuggestions for improvement. Often the trainee shares some of the duties and responsibilities of thecoach and relieves him of his burden. A limitation of this method of training is that the trainee may nothave the freedom or opportunity to express his own ideas.

3. Job Instruction : This method is also known as training through step by step. Under this method, thetrainer explains to the trainee the way of doing the jobs, job knowledge and skills and allows him to dothe job. The trainer appraises the performance of the trainee, provides feedback information andcorrects the trainee.

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4. Committee Assignments : Under the committee assignments a group of trainees are given and askedto solve an actual organizational problem. The trainees solve the problem jointly. It develops team work.

Off the Job Methods : Under this method of training, the trainee is separated from the job situation andhis attention is focused upon learning the material related to his future job performance. Since te traineeis not distracted by job requirements, he can place his entire concentration on learning the job ratherthan spending his time in performing it. There is an opportunity for freedom of expression for thetrainees.

1. Vestibule Training : In this method, actual work conditions are stimulated in a class room. Material filesand equipments which are used in actual job performance are also used in training. This type of trainingis commonly used for training personnel for clerical and semi skilled jobs. The duration of tis type oftraining ranges from days to a few weeks. Theory can be related to practice in this method.

2. Role Playing : It is defined as a method of human interaction that involves realistic behaviour inimaginary situations. This method of training involves action, doing and practice. The participants playthe role of certain characters such as the production manager, mechanical engineer, superitententsmaintenance engineers, quality control inspectors, foremen, workers and the like. This method is mostlyused for developing inter-personal interactions and relations.

3. Lecture Method : The lecture is a traditional and direct method of instruction. The instructor organisesthe material and gives it to a group of trainees in the form of a talk. To be effective, the lecture methodmust motivate and create interest among the trainees. An advantage of the lecture method is that it isdirect and can be used for a large group of trainees. Thus costs and time involved are reduced. The majorlimitation of the lecture method is that it does not provide for training effectively.

4. Conference or Discussion : It is a method in training the clerical, professional and supervisorypersonnel. This method involves a group of people who pose ideas, examine and share facts, ideas anddata, test assumptions and draw conclusions, all of which contribute to the improvement of jobperformance. Discussion has the distinct advantage over lecture method as it involves two waycommunication. The participants feel free to speak in small groups. The success of this method dependson the leadership qualities of the person who leads the group.

5. Programmed Instruction : In recent years this method has become popular. The subject matter tobelearned is presented in a series of carefully planned sequential units. These units are arranged fromsimple to more complex levels of instructions. The trainee goes through these units by answering orfilling the blanks. This method is expensive and time consuming.

Q5. Discuss any two theories of motivation. Explain the stratergies used by organizations tomotivate employees.Ans 5. Theories of Motivation: There are several theories on motivation. The significant among them areMaslow’s Hierarchy of Needs, Herzberg’s Two Factor Theory, Vrooms Expectancy Theory, Porter andLawler’s Expectancy Theory and Equity Theory of Work Motivation. We shall discuss 1. Maslows Theory ofHierarchy of Needs and 2. Herzberg Two Factor Theory.

1. Maslows Theory of Hierarchy of Needs :

According to Maslow, human needs form a hierarchy, staring at the bottom with the physiologicalneeds and ascending to the highest need of self actualization. He says when one set of needs issatisfied; they no longer work as motivators as a man seeks to satisfy the next higher level of needs.

__________________________________________________ Need for Self-Actualization


__________________________________________________

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Esteem Needs __________________________________________________

Social Needs -Affiliation orAcceptance Needs

__________________________________________________ Security of Safety Needs


__________________________________________________ MASLOW”S HIERACHY OF NEEDS

==========================================

The Need Hierarchy:

6. Physiological Needs: These are the basic necessities of human life, food, water, warmth, sheltersleep and sexual satisfaction. Maslow says that until these needs are satisfied to the requiredlevel, man does not aim for the satisfaction of next level of needs. As far as work environment isconcerned, these needs include basic needs like pay, allowance, incentives and benefits.

7. Security/Safety Needs: These refer to the need to be free of physical danger or the feeling ofloss of food, job or shelter. When the physiological needs are satisfied, man starts thinking of theway by which he can satisfy his safety needs. Security needs spring up the moment he makes

an effort in the direction of providing himself the source of continuity of physiological needs. In awork environment these needs include conformity, security plans, membership in unionsseverance pay etc.

8. Social Needs: (Affiliation or Acceptance Needs) When the physiological and security needs aresatisfied, these social needs begin occupying the mind of a man. This is exactly why he looks forthe association of other human beings and strives hard to be accepted by this group. Socialneeds at the work place include: Human relations, formal and informal work groups.

9. Esteem Needs: These needs are power, status and self confidence. Every man has a feeling ofimportance and he wants others to regard him highly. These needs makes people aim high andmake them achieve something great. These needs for employees include status symbolsawards, promotions, titles etc.

10. Self Actualization Needs: This is the highest need in the hierarchy. This refers to the desire tobecome what one is capable of becoming. Man tries to maximize his potential and accomplish

something, when this need is activated in him.

2. Herzberg Theory of Motivation: Deals with basically two factors Dissatisfiers and Satisfiers.


SATISFIERS: The second group are the” satisfiers’ in the sense that they are motivators which arerelated to job content. It includes factors of achievement, recognition, challenging work, advancementand growth in job. Their presence yields feeling of satisfaction or no satisfaction but not dissatisfaction.


Herzberg’s Two Factor Theory: Classification of Maintenance and Motivational Factors

Sr.



1. Job Content Job Content

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2. Extrinsic Factors Intrinsic Factors3. Company Policy and Administration Achievement4. Quality of supervision Recognition5. Relations with superiors Advancement6. Peer Relations Work Itself 7. Relations with subordinates Possibility of Growth8. Pay Responsibility

9. Job security10.

Work Conditions

11.

Status

Strategies used by organizations to motivate employees.

It is a bare fact that most of us use only a small portion of our mental and physical abilities. To exploit the

unused potential in people they are to be motivated. Needless to say that such exploitation results ingreater efficiency, higher production and better standard of living of the people. There are basically twotypes of motivation vis 1) Positive Motivation and Negative Motivation.

1. Positive Motivation: People are said to be motivated positively when they are shown a rewards andthe way to achieve it. Such a reward may be financial or non financial. Monetary motivation mayinclude different incentives, wage plans, productive bonus schemes etc. Non monetary include praisefor work, participation in management, social recognition. Monetary incentives provide the worker abetter standard of life while non monetary incentives satisfy the ego of a man.

2. Negative Motivation: It is induced by installing fear in the minds of people; one can get the desiredwork done. In this method of motivation fear of consequences of doing something or not doingsomething keeps the worker in desired direction. This method has got several limitations. Fear Createsfrustration, a hostile state of mind and an unfavorable attitude towards the job which hinder efficiency

and productivity. So the use of it should be kept minimum.

Q6. What is organisational change? Discuss the sources of resistance to change inorganisations. How can effective change be implemented in an organisation?

Ans 6. The term “Organisational Change” implies the creation of imbalances in the existent pattern orsituation. Adjustment among people, technology and structural set up is established when anorganisation operates for a long time. People adjust with their jobs, working conditions, colleaguessuperiors etc. Similarly, an organisation establishes relationship in the external environment. Changerequires individuals and organisations to make new adjustments. Complexity and fear of adjustmentgives rise to resistance and problem of change. Human resource is an important factor in relation to theadjustments among individuals as well as between the organisation and environment, as an organisation

is mostly composed of people. Individual members can resist either individually or in a group.

Change could be both reactive and proactive. A proactive change has necessarily to be planned toattempt to prepare for anticipated future challenges. A reactive change may be an automatic responseor a planned response to change taking place in the environment.

Changes relating to organisation include change in employees due to transfers, promotion, retrenchmentlay-off, restructuring or organisation, introduction of new products or services, imposition of regulation,changes in organisational goals or objectives etc.

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The basic problem in the management to change is the study of causes of resistance to change. Despitethe fact that change is a persistent phenomenon, it is a common experience that employees resistchange whether in the context of their pattern of life or in the context of their situation in theorganisation. The best example is resistance of employees to computerisation. Change of and typerequires re-adjustment. ‘Man always fears the unknown, and a change represents the unknown’.

Sources of resistance to change in an organization.

Reasons for Resistance :- Some of the important reasons for resistance to change are as follows :

(a) Economic Reasons : Economic reasons for resistance are classified into three groups. They are :

• Fear of reduction in employment - Due to the change in technology, methods of work, quantity orquality of work etc. this fear leads to resistance to change on the part of the people. Opposition toautomation is an example to it.

• Fear to demotion - Employees may fear that they may be demoted if they do not possess the newskills required for their jobs, after the introduction of change. Hence, they prefer ‘status quo’.

• Fear of workload - Change in work technology and methods may lead to the fear that workload wilbe increased while there will not be any corresponding increase in their salaries and benefits. Thisfeeling creates resistance to change.

(b) Personal Reasons : Personal reasons for resistance are also divided into three classes. They are:

•

Need for training - If change in technology and work organisation necessitates training and re-learning on the part of employees, it may lead to resistance, as all do not like to go for refresherand retraining courses off and on.

• Boredom and monotony - If the proposed change is expected to lead to greater specialisationresulting in boredom and monotony, it may also be resisted by employees.

• No participation in change - Some employees resist any change as they are critical of the situationand thy are not being given any part in the decision making process for change When they do notunderstand fully the implications of change they resist it.

(c) Social Reasons : Social reasons for resistance are also classified into three groups. They are:

• Need for new social adjustment - an organisaitonal change requires new social adjustment withthe group, work situation and new boss etc. All individuals are not ready to accept this challengeSome people refuse transfers and promotions for this reason only, as they will have to break theirpresent social ties.

•

Taking change as imposed from outside - some employees take any change as imposed fromoutside upon them.

• Other considerations - some employees may consider that every change brought about is for thebenefit of the organisation only and not for them, their fellow workers or even the general public.Hence they resist the change.

Resistance from the Side of Managers - It is not a common fact that change is always resisted by theemployees only. Managers also resist change sometimes. Any change sets in new responsibilities andimposes new tension, stress and strains over them is normally resisted by managers. The feeling ofuncertainty, whether they will be able to handle new circumstances successfully or not, motivates themto resist.

Effective change can be implemented in an Organisation by different approaches:

Approaches to Organisational Change :- Management is said to be an agent of change. It meansthat the management has to introduce change successfully in its organisation. It has to overcome theresistance and make it a successful venture. The management must realise that resistance to change isbasically a human problem, though on the surface, it may appear to be related to the technical aspect ofchange. So, it must be tackled in a human and social manner. Management has to take the followingsteps to implement the change successfully:(1) Participation of Employees : Before introducing any change, the employees should be fullyconsulted and they must be a party to any such decision. The meaning and purpose of the change mustbe fully communicated to those who will be affected by it. Enough time should be allowed for discussionand the pros and cons of the change should be explained in detail to the employees. (see box below).

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Qualities of a Counsellor

• Empathy

• Respect

• Warmth

• Personal characteristics

• Knowledge

• Honesty

• Credibility

• Excellent communication

• High Self Awareness

• Capacity accept without bia

• Facilitator

• Excellent listener

• All round preparation(2) Planning for Change : Before implementing any change, the management should plan for it.

Employees should get an opportunity to participate both in planning the change and installing it. This wilhelp the group of the affected employees to recognise the need for change and thus prepare them forreceiving it without any fear.(3) Protecting Employees’ Interest : Management should ensure that employees are protected fromeconomic loss, loss in status or personal dignity. If those things are protected, the degree of resistanceto change will be at the lowest ebb.(4) Group Dynamics : Group dynamics refers to the ever changing interactions and adjustments in themutual perceptions and relationships among members of the groups. Such group interactions are themost powerful instruments which facilitate or inhibit adaptation to change. Adaptation is a team activitywhich requires conformity to the new group norms, moves, traditions and work patterns. If these couldbe positively articulated by the management, the results are likely to be more successful and durable.(5) Cautious and Slow Introduction : The management should not introduce any change suddenlyand abruptly. It must be an objective for the management to build in the organisation an awareness o

change and an ability to forecast it, and also to construct an attitude of welcoming change. Change mustbe introduced in sequential parts, and if possible, the results must be reviewed and required adjustmentsmust be made in it.(6) Positive Motion : The management should use the policy of positive motivation to counteractnegative resistance. It should be the attempt of the management to make the job easier and lessexerting. Te management should impart proper training to its employees in new techniques and workknowledge etc. The leadership styles should also be supportive and human oriented. The policy will alsobring down the resistance to change.(7) Sharing the Benefits of Change : Any change whether technical, social or economic will be leastresisted by the employees if the management permits the employees to share benefits which arise out ofthe change. So, the management must see that employees are not only assured of it, they are given dueadvantage of it as well.(8) Training and Development : Management should plan for change. Based on the change plan

the job should be redesigned. Management should train the employees before hand and prepare theemployees to invite change. Normally, trained and developed employees will not resist change as theycannot keep quite with enriched skill and knowledge.(9) Career Planning and Development : Organisation on the basis of change plans and redesigned jobs should plan for careers of employees, possibilities to move the employees to the higher levels anddevelop them. The developed employees for future careers demand the management to implementchange.(10) Organisation Development : Organisation development aims at moulding and development ofemployees in the psychological and behavioural areas with a view to achieve organisationaeffectiveness. Employees with enriched behaviours welcome the change.

Q7. What is Performance Appraisal System and what are its objectives? Describe the varioussources of errors in the appraisal process. What is the difference between the Performance

Appraisal and Performance Management Systems in an organisation?

Ans.7 Performance appraisal is a method of evaluating the behaviour of employees in the work placenormally including both the quantitative and qualitative aspects of job performance. Performance refersto the degree of accomplishment of the tasks that make up an individual’s job. It indicates how ell anindividual is fulfilling the job demands.

Every organization has to decide upon the content to be appraised before the programme is approved onthe basis of job analysis. The content to be appraised may vary with the purpose of appraisal and typeand level of employees.

The key factor in an organization to support an effective performance appraisal system is as follows:

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- Organizational planning based on potentialities of human resources.- Human Resource Planning based on weakness, strengths and potentialities of human resources.- Organizational effectiveness through performance improvement- Fixation and refixation of salary, allowances, incentives and benefits- Original placement or placement adjustment decisions- Identifying training and development needs and to evaluate effectiveness of training anddevelopment- Needs and to evaluate effectiveness of training and development programmes- Career planning and development and movement of employees.

Objectives of Performance Appraisal System :- Performance appraisal aims at attaining thedifferent purposes. They are :

• To create and maintain a satisfactory level of performance.

• To contribute to the employee growth and development through training, self and managementdevelopment programmes. Tata Power aims at employee development through performanceappraisal.

• To help the superiors to have a proper understanding about their subordinates.

• To guide the job changes with the help to continuous ranking.

• To facilitate fair and equitable compensation based on performance.

• To facilitate for testing and validating selection tests, interview techniques through comparing

their scores with performance appraisal ranks.• To provide information for making decisions regarding lay-off, retrenchment etc. as in the case of

Hyundai Engineering.

Sources of Error in Performance Appraisal:

2. Rating Biases: It is a subjective measure of rating performance which is not verifiable by othersand has the opportunity for bias. There rater biases include: a) the halo effect b) the error ofcentral tendency c) the leniency and strictness biases d) personal prejudice and e) the recencyeffect.

a. Halo Effect: it is the tendency of the raters to depend excessively on the rating of onetrait or behaviourial consideration in rating all other traits or behavioural considerations.

One way of minimizing the halo effect is appraising all employees by one trait before goingto rate them on the basis of another trait.

b. The Error of Central Tendency: Some raters follow play safe policy in rating by rating althe employees around the middle point of the rating scale and they avoid rating the peopleat both the extremes scale. They follow play safe policy because of answerability to themanagement or lack of knowledge about the job and person he is rating or has leastinterest in the job.

c. The Leniency and Strictness: the leniency bias crops when some raters have atendency to be liberal in their rating by assigning higher rates consistently. Such ratings donot serve any purpose. Equally damaging is assigning consistently low rates.

d. Personal Prejudice: If the rater dislikes any employee or any group, he may rate them atthe lower end, which may distort the rating purpose and affect the career of theseemployees.

e. The Recency Effect: The raters generally remember the recent actions of the employeeat the time of rating them on the basis of these recent actions favourable orunfavourable-rather than on the whole activities.

Difference between Perfomance Appraisal and Performance Management System.

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Perfomance Appraisal Perfomance Management SystemPerformance Appraisal is Organisational planningbased on potentialities of its human sources.

Performance Management System performance ofthe employee is continuously monitored anddeveloped in tune with the organisationarequirements.

It is human resource planning based on weakness,strengths and potentialities of human resources.

Emphasis on Documentation : Emphasis isrequired for goal setting of employees and otherimportant processes of a performancemanagement system.

The basic purpose is to find out how well theemployee is performing the job and to establish aplan of improvement.

Computer-based Performance Management Now-a-days software is available for implementingthe entire performance management process.

It is not job evaluation. It refers to how someone isdoing the assigned job. Job evaluation determineshow much a job is worth to the organization andtherefore, what range of pay should be assigned tothe job.

Collaborative Performance Management Both the Manager and the subordinates understandeach other and both understand the organisationagoals and requirements with a common andcollaborative mind.

It identifies training and development needs andevaluates effectiveness of training anddevelopment programmes.

Customised Performance ManagementSystem : Organisations started adopting seperateperformance appraisal techniques and design thesystem for each employee separately based onemployee skills, behaviour and his job needs.

Q 8.Write short notes on any three of the following :-a) Job Satisfaction b) Employee Morale c) Job Evaluationd) Job Analysis e) Employee Turnover f) H.R. Policies

Ans 8a. Job Satisfaction : Job satisfaction refers to a person’s feeling of satisfaction on the job, whichacts as a motivation to work. It is not self-satisfaction, happiness or self-contentment but satisfaction onthe job.

The term relates to the total relationship between an individual and the employer for which he is paid.Satisfaction does mean the simple feeling state accompanying the attainment of any goal, the end-stateis feeling accompanying the attainment by an impulse of its objective. Job dissatisfaction does meanabsence of motivation at work. Research workers differently described the factors contributing to jobsatisfaction and job dissatisfaction. Hoppock describes job satisfaction as “any combination opsychological, physiological and environment circumstances that cause any person truthfully to say that am satisfied with my job.”

Job satisfaction is defined as the “pleasurable emotional state resulting from the appraisal of one’s job asachieving or facilitating the achievement of one’s job values.” In contrast, job dissatisfaction is definedas “the unpleasurable emotional state resulting from the appraisal of one’s job as frustrating or blockingthe attainment of one’s job values or as entailing disvalues.” However, both satisfaction anddissatisfaction were seen as “a function of the perceived relationship between what one perceives it asoffering one entailing.

Ans 8b. Employee Morale : Morale is purely emotional. It is an attitude of an employee towards his job, his superior and his organisation. This may range from very high to very low. It is not a static thingbut it changes depending on working conditions, superiors, fellow-workers, pay and so on. When aparticular employee has a favourable attitude towards his work, he is said to have high morale. In the

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Organisational context, we usually talk of group morale as each person has an influence over the other’smorale.

Ans 8c. Job Evaluation : Job evaluation deals with money and work. It determines the relative worth omoney value of jobs. The International Labour Organisation defined job evaluation as “an attempt todetermine and compare demands which the normal performance of a particular job makes on normaworkers without taking into account the individual abilities or performance of the workers concerned”.Wendell L. French defined job evaluation as “a process of determining the relative worth of the various job within the organisation, so that different wages may be paid to jobs of different worth”. Joevaluation is defined as “the overall activity of involving an orderly, systematic method and procedure ofranking, grading and weighing of jobs to determine the value of a specific job in relation to other jobs”.British Institute of Management (1970) defined job evaluation as, “the process of analysing and assessingthe content of jobs, in order to place them in an acceptable rank order which can then be used as a basisfor a remuneration system. Job evaluation, therefore, is simply a technique designed to assist in thedevelopment of new pay structures by defining relatives between jobs on a consistent and systematicbasis”. Thus, job evaluation may be defined as a process of determining the relative worth of jobsranking and grading them by comparing the duties, responsibilities like skill, knowledge of a job withother jobs with a view to fix compensation payable to the concerned job holder.

Ans 8d. Job Analysis : Te U.S. Department of Labour defined job analysis as “the process ofdetermining by observation and study and reporting pertinent information relating to the nature of a

specific job. It is the determination of the tasks which comprise the job and of the skills, knowledgeabilities and responsibilities required of the worker of a successful performance and which differentiateone job from all others.”

Ans 8e. Employee Turnover : The movement of an employee from one job to the another. Jobsthemselves are not actually changed, only the employees are rotated among various jobs. An employeewho works on a routine / respective job moves to and works on another job for some hours/days/monthsand abcks up to the first job. This measure relieves the employee from boredom and monotonyimproves employee’s skills regarding various jobs, prepares the competent employees and providescompetitive advantage to the company. These measures also improves worker’s self-image and providespersonal growth. However, a frequent job rotations are not advisable in view of their negative impact onthe organisation and the employee.

Ans 8f. H.R. Policies :

Human resource policies are general statements that guide thinking and action in decision makingin an organisation. A HR policy is a plan of action, a set of proposals and actions that act as areference point for managers in their dealings with employees. HR policies constitute guides toaction. They furnish the general standards or bases on which decisions are reached. Their genesislies in an organization’s values, philosophy, concepts and principles”. Personnel guide the courseof action intended to accomplish personnel objectives. A HR policy is a guideline for making wisedecisions. It brings about stability in making decisions. A HR policy is a stance, often a choicemade between two or more alternatives, such as the choice between promoting employees onthan basis of merit versus promoting them on the basis of seniority. It covers the norms andguidelines for policies like safety, recruitment, wages etc.

human resource management 2001 2005

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