master of business administration-3rd sem

8/13/2019 Master of Business Administration-3rd Sem

1/20

Master of Business Administration- MBA Semester 3

MU0010 Manpower Planning and Resourcing - 4 Credits(Book ID: B1228)

Assignment Set- 1 (60 Marks)

Q6. Mr. Aravind works at K&D Company. Recently two fellow team members were

shifted to another team and their work was handed over to him. This affected his

performance and also left him dissatisfied. Finally, he forwarded his resignation letter

to the HR Department. The HR Manager decided to conduct an exit interview with Mr.

Aravind. What questions do you think that the HR manager would want to ask

Mr.Aravind?

Answer:

Possible Exit Interview Questions

Tell me about how you decided to leave the organization?What could have been done early on to prevent this situation developing or lend a

basis for you to stay with us?How do you feel about this organization?What extra responsibility or position would you have welcomed that you were not

given?How could the organization have enabled you to make fuller use of your competency

and potential?What training would you have liked or required that you did not get, and what effect

did this have?How well do think your training and development requirements were evaluated and

met?

What do you say about communications within the organization and yourdepartment?

What changes would you make towards the environment or feel of theorganization?

What changes or improvement could be made to the way that you were inducted foryour role?

What will you say about the way your performance was measured, and the feedbackgiven for your performance results?

What will you say about how you were motivated, and how that can be improved?Can you provide any unreasonable examples of policy, rules or instructions you have

encountered here?What particularly is it about the other organization that makes you want to join them?

What are they offering that we are not?(If appropriate) Can you be persuaded to renegotiate or discuss the possibility of

staying?A proper closure in the exit interview, for both the organization and departing

employee encourages positive and professional ties between the two


2/20


MU0010Manpower Planning and Resourcing - 4 Credits

(Book ID: B1228)


Q2. What are the steps involved in manpower planning?

Answer:Steps in Manpower PlanningManpower planning requires that an estimate of the present and future needs of theorganization should be compared with the available manpower and future predictedmanpower. Appropriate steps are then taken to bring demand and supply into balance. Theoutcome of this planning is a well thought out and logical manpower demand plan forvarying dates in the future which can then be compared with the crude manpower supplyschedules. The comparisons will then indicate what steps should be taken to achieve abalance. The 5 steps in the manpower planning process are:

Evaluate present manpower inventoryManpower forecastingDevelop a manpower sourcing plan or retrenchment plan Manpower allocation

Building requisite competencies

1. Evaluate Present Manpower InventoryIt is very important to evaluate the present manpower status before making a forecast for futuremanpower planning. To evaluate the present manpower status a department by departmentanalysis and a job-role by job-role analysis is conducted to arrive at the required manpower versusthe available manpower. This is accumulated across the organization at different levels anddepartments. The final report will consolidate and state the required manpower versus theavailable manpower in terms of the quantitative analysis. Another analysis on the qualitativeside conducted similarly shows the competencies required versus competencies available foreach of the job roles. This provides the present manpower inventory. There may be excess ordeficit or in extremely few cases just the right number quantitatively. The report on the

qualitative front may rarely have a 100% match between required competencies versus availablecompetencies.

2. Manpower ForecastingManpower planning is done based on the manpower forecasts. The common manpowerforecasting techniques are:(i) Expert Forecasts: This includes formal expert surveys, informal decisions and the Delphitechnique.(ii) Trend Analysis: Manpower needs can be seen through the past practice of the firm ororganization keeping the principle year as a basis and a central tendency of measure(iii) Work Load Evaluation: This depends on the nature of the work load in a branch,department, or a division in a firm or organization.

(iv) Work Force Evaluation: As production and the time duration are to be kept in mind,allotments have to be made for getting the total manpower requirements.(v) Other Methods: A few mathematical models with the help of computers are also used toforecast manpower needs.


3/20

3. Develop a Manpower Sourcing Plan or Retrenchment PlanOnce the current inventory is compared with the future manpower forecasts then themanpower sourcing or retrenchment plan is drawn.The sourcing plan includes recruitment, selection, placement, hiring temporary staff andoutsourcing. You will learn more about the sourcing plan in unit 6.The retrenchment plan involves sending show-cause notices to bottom performers called

bottom scraping, asking people to leave the organization by providing the requisiteseverance allowance, allowing employees to go on a sabbatical and finally out-placingemployees in other organizations to reduce the manpower. It is harder to retrenchmanpower. The need for retrenchment could also be minimized by very objectivelyapproving any additional manpower.

4. Manpower Allocation & RetentionManpower allocation helps in managing the impact of deficits and excess in manpowersupply through promotions, transfers and job-rotations. Enhancing manpower utilizationrequires managing the dynamics of leadership and motivation.Manpower retention would mean taking necessary steps to ensure that the organizationprovides a conducive-atmosphere to the employees to perform and keeps each employee

engaged.

5. Building Requisite CompetenciesOnce the future manpower forecasts are compared to the current inventory, there may besome gaps in competencies amongst the available internal resources for them to qualify forthe future manpower forecasts. In such cases organizations may choose to developresources through training programs. A training calendar is designed to ensurecompetencies of existing staff are enhanced to meet the future manpower forecasts.

Additional training programs may be designed when organizations are diversifying orexpanding. Training programs may be designed to train existing resources on the latestimprovements and advancements in technology or the related business subject. Training isprovided to improve the knowledge, skill and capability of the employee.


4/20

Q5. What are the major hindrances that one encounters while carrying out

manpower planning?

Answer:

Hindrances in Manpower Planning

The major hindrances in manpower planning are as follows:Non Optimal Utilization of Manpower

The biggest obstacle for manpower planning is the fact that organizations cannot optimallyuse their manpower once manpower planning begins. During manpower planning, thenumber of resources required for a job is decided based on the total work load, the processto be followed and the criticality of the job. Once the analysis is done, it is decided that oneperson can only handle a certain portion of the workload and hence for any additionalworkload, additional resources need to be hired proportionately.Over a period of time, the total workload may change, the processes may change, thecriticality of the job may change and new technological innovations may make the job fareasier to accomplish. However when the same employees are asked to step up theproductivity, they resist accepting any additional workload and resist even deployment of

new technology, hence making it hard for the management to maximize the use of theirmanpower. This makes the organizational processes ineffective or inefficient and hence theorganization as a whole becomes ineffective or inefficient and loses out to competition whichmay be able to remain lean in terms of number of resources and highly effective andefficient.

AbsenteeismEvery organization has witnessed an increase in absenteeism. This has lead to errorscreeping in the manpower planning exercise. If the plan stated that 4 employees arerequired to manage the total workload, increased degree of absenteeism leads to the partialfailure of the manpower planning exercise.

Lack of Employable LaborPeople are not employable. The slow pace of acquiring business required competencies bypeople at large also result in low employee productivity. All manpower planning is done basis acertain productivity level considered as a benchmark. And low productivity has negativeimplications for manpower planning.

Modern Manpower Control and Review ProcessesAny increase in manpower is to be approved by the top most levels of the

management today.Manpower budgets created on the basis of manpower planning act as control

mechanisms to keep the manpower cost and headcount under certain defined limits. Usuallythe productivity of any organization is calculated using the formula:

Productivity = Output / Input.Example: 5 products are sold during the day/ 8 hours of effort put in during the day.

i.e., the sales productivity of the employee is 5 products per day.But a rough guide of employee productivity used today is: Employee Productivity =

Total Production / Total no. of employeesExample: 50 products are sold during the day/12 employees were responsible for

selling 50 products during the day. i.e., the sales productivity of each employee is4.17 products per day.


5/20

The rate of manpower turnover, exit interviews and absenteeism are sources ofmeasuring dissatisfaction level of manpower. To eliminate employee dissatisfaction and toensure better utilization of resources a study of the reasons causing the dissatisfaction levelis required.

Overtime is paid to employees due to real shortage of manpower, inefficientmanagement or improper utilization of manpower. Manpower planning requires a study of the

overtime statistics.

The current pace at which business is done today is very fast. Many

organizations either do not have data or are overwhelmed with data. Non

availability and non utilization of the data are also reasons for complicating

the situation. In some organization even the existing technologies available for

manpower planning are not optimally used. This also creates obstacles in manpower

planning.

Example: Business Scenario for Obstacles in Manpower Planning (Lack of

employable labor)

The entire BPO industry is suffering with this scenario of lack of employable labor.In a dynamic business scenario, manpower planning is critical to organizational growth andstability. It is integral to recruiting, retaining, retraining and redeployment of talent. Linked tobusiness needs of the organization, the process of manpower planning is much morecomplicated than it seems. Manpower planning involves developing skills and competenciesof existing employees to meet market demands which can change with time. Manpowerplanning also requires having a contingent plan in place in case of any eventuality (talentshortage).Out of every 100 candidates interviewed only 10 of them are employable. Majority of themare unemployable by the BPO industry. Its a known fact in the BPO industry. The manpowerplanning exercise requires BPO companies to budget for travel to the interiors of the state,

travel to other states. It also needs to budget for providing new joiners with relocationallowance. It has to make provision for some joining bonuses as well when the hiring by allcompanies was at its peak. It decided to lower the level of hiring and spend additional timeon training candidates. It needed to engage external organizations to evaluate the voice andaccent capability or the potential of the candidate in order to validate its own findings withthat of an independent agency, so that no potential candidate was rejected and no candidatewho was not trainable was hired.The manpower planning required inclusion of non standard practices to ensure that thehiring targets were met so as to ensure that migration of client business processes fromother countries to India was as per committed timelines.In fact some of the BPOs in India also have operations in countries like Philippines. Due tothe inability of the India BPOs to hire in some cases, work is split up between India and

Philippines.


6/20

Q6. Ms. Lalita Singh has joined Triumphant India Private Limited. As an HR Manager, how would you

prepare an induction programme for her?

Answer:

Company Induction

We will prepare an induction programme for Ms. Lalita as follows :

HR Department

The Human Resource department handles all the details of recruitment and gives the officialstart date as a new employee of staff. The HR Department also issues the staff identificationcard, keeps your record and will issue you with some information when you collect your staffID card/number.

Department

The department where new employees will work and the management team will welcome newemployee and ensure that he/she becomes familiar with the work area, colleagues,important policies and procedures, health and safety issues and most importantly a new

employees immediate work needs.

Finance Department

This will take care of the new employees salary and pension arrangement plans.

Employee Training and Development

HR department co-ordinate the welcome, induction and orientation process information andformal induction events. Employee training and development will provide details of trainingcourses, dates and financial assistance for training and development for all new employees.Information is generally available in hardcopy format or on the company website.

1.Information Technology

This will provide new employees with IT support, online access login details and e-mailaccount etc.

As a new employee joining this large organisation it will take time to settle in and fit in, find outwhat you need to know. In all cases the HR manager or other experienced employees shouldhelp new employees with any immediate questions you may have. Other key staff contacts areready to help and welcome new colleagues.

Formal InductionInformal Induction

1.Informal Induction

In this the new employees are instructed to report to the HR department for an explanation oforganization policies before being referred to the manager for on the job briefing on specificwork process.In informal orientation, new employees are put directly on the job and are expected to adjustthemselves on the new job and organization. Informal orientation tends to be brief; may last for anhour or may be less than an hour.Example:A sales person is asked to go along with a tenured high performing sales person

or his manager to make sales calls and learn about the product and the selling skills duringthe calls.


7/20

2. Formal Induction

Here the management has a structured programme which is executed when new employeesjoin the firm. Formal induction is more elaborate and is spread over a couple of weeks ormonths. Most formal induction programmes consist of three stages:

General introduction to the organization often given by the HR department.

Specific orientation to the job and the department, typically given by the supervisor ormanager.

Follow up meeting to verify that the important issues have been addressed and

employee questions have been answered. This follow up meeting usually takes placeafter a week of joining between the new employee and the manager.

A formal induction programme is shared by the HR specialists and managers. The HRmanager covers areas as:

Introduction: to supervisors, trainers and colleagues.Organization issues: organization history, history of the employer, names and titles of

important executives, departments, layout of physical facilities, probationary period,product line, production procedure, organization policies and procedures, disciplinaryregulations, safety procedures.

Employee benefits: pay scale, pay days, vacation and holidays, rest breaks, trainingand education benefits, counselling, insurance benefits, retirement programme etc.

Supervisors outline the main job duties: job location, task and overview of job, safety

requirements and relationship to other jobs.

The choice between formal and informal induction will depend mainly on the goals and

objectives of the organization. The more formal the programme the more the new employee

will acquire a set of standards. Many organizations prepare certain induction manual and

induction powerpoint presentations which they keep on the intranet . These can be accesed

only by the company employees. It is helpful when employees join in small numbers at

different point of time, when a separate induction programme cannot be held. This is also

helpful to clarify any doubts an employee may have regarding certain organizationalpractices. In an informal programme individual differences are maintained.


8/20

Master of Business Administration- MBA Semester 3MU0011 Management and Organizational Development - 4 Credits

(Book ID: B1229)


Q6. Suppose you are an OD practitioner. What are the challenges that youhave be prepared for while carrying out organization development?

Answer:

The following are Challenges of OD for which I would be prepared while carrying outorganizational development:-

Meeting goals and objectives of an organization by the support and execution ofdefined strategies.

Maintaining and addressing organizational culture during implementation of the

change management efforts.Applying change management concepts to organization and well as products or

services provided.Enhancing productivity and profitability of an organization by effective change

management.Aligning performance of individuals and teams with organizational goals and

objectives.

Communicating change management objectives and processes to participants.

Motivate the workforce to implement and accept the organizational changes

Attracting and retaining employees and their talent while implementing change

management efforts.

Effective usage of IT to attain organizational goals while managing change

effectively.

Using IT for KM, innovation, competitive advantage, and business strategies.

Ensuring business objectives are attained by following organizational values and

ethics.

Building leadership and capable management workforce for today and future. Improving the problem

solving process by managing change.

During and after implementation of change efforts, maintaining same relationship

with the business partners, customers, and vendors.

Reducing the six gaps - communication gap, cultural gap, confidence gap, skills gap,

information gap, and timing gap.


9/20

Master of Business Administration- MBA Semester 3MU0011 Management and Organizational Development - 4 Credits

(Book ID: B1229)


Q2. What are the major types of changes in an organization?

Answer:Types of Change

Types of organization changes vary from planned versus unplanned to organization-wideversus change primarily to one part of the organization to incremental versustransformational, etc. Knowing which types of change you are doing helps all participants toretain scope and perspective during the many complexities and frequent frustrations duringchange.

The major types of changes in an organization are listed below:

I) Organization-wide Versus Subsystem Change

Organization-wide change includes major restructuring, collaboration or rightsizing.

When organization need to evolve to a different level in their life cycle, for example, goingfrom a highly reactive, entrepreneurial organization to one that has a more stable andplanned development, then is the time when they should switch to organization-widechanges. Experts assert that successful organizational change requires a change in culture- cultural change is another example of organization-wide change.

Addition or removal of a product or service, reorganization of a certain department, orimplementation of a new process to deliver products or services is examples of these kindsof changes.

II) Transformational Versus Incremental Change

Changing an Organizations structure and culture from the traditional top-down, hierarchicalstructure to a large amount of self-directing teams are examples that form transformational

changes.Examples of incremental change might include continuous improvement as a qualitymanagement process or implementation of new computer system to increase efficiencies.Many times, organizations experience incremental change and its leaders do not recognize thechange as such.

III) Unplanned Versus Planned Change

A sudden, major surprise to the organization, which causes its members to respond in ahighly reactive and disorganized fashion usually, causes an unplanned change. As the namesuggests, in an unplanned change nothing happens in a planned way or in order. Examples ofsuch change are when the Chief Executive Officer suddenly leaves the organization,significant public relations problems occur, poor product performance quickly results in loss of

customers, or other disruptive situations arise.Planned change occurs when leaders in the organization recognize the need for a majorchange and proactively organize a plan to accomplish the change. Planned change occurs withsuccessful implementation of a Strategic Plan, plan for reorganization, or otherimplementation of a change of this magnitude.Note that planned change, even though based on a proactive and well-done plan, often does notoccur in a highly organized fashion. Instead, planned change tends to occur in more of a chaoticand disruptive fashion than expected by participants.


10/20

IV) Remedial Versus Developmental Change

Remedial changes are changes that can bring remedy to current organizational situations.Improving the poor performance of a product or the entire organization, reduce burnout inthe workplace, help the organization to become much more proactive and less reactive, oraddress large budget deficits. So these form examples of remedial changes. More focus of

these projects is to solve a problem on an urgent basis because they are addressing acurrent, major problem.Change can also be developmental - to make a successful situation even more successful,for example, expand the amount of customers served, or duplicate successful products orservices.Developmental projects can seem more general and vague than remedial, depending on howspecific goals are and how important it is for members of the organization to achieve thosegoals. Some people might have different perceptions of what is a remedial change versus adevelopmental change. They might see that if developmental changes are not made soon,there will be need for remedial changes.

Q4. Explain the life cycle of resistance to organizational change in detail.

Answer:

Adopting new innovations or new ideas and techniques involves altering human behavior, andthe Resistance to Change

acceptance of change. There is a natural resistance to change for several reasons. The reasonsare as follows:

People Resist change:

When the change threatens to modify established patterns of working relationshipsbetween people.

When communication about the change-timetables, personnel, monies, etc. - hasnot been sufficient.

When the benefits and rewards for making the change are not seen as adequate forthe trouble involved.

When the change threatens jobs, power or status in an organization.When the reason for the change is unclear. When there is ambiguity, whether it is

about costs, equipment, jobs, it can trigger negative reactions among users.When the proposed users have not been consulted about the change, and it is

offered to them as an accomplished fact. People like to know whats going on,especially if their jobs may be affected. Informed workers tend to have higher levelsof job satisfaction than uninformed workers.

On the other hand, if the innovation is introduced gradually so that people can adjust to theresulting then decision makers are more responsive to changes:

If the innovation requires marginal rather than major changes in their views or lives. Ifthey have a demonstrated need for the innovation.

If the information presented coincides with their current values, beliefs, and attitudes If theyperceive that the change will benefit them more than it will cost them.

1. Factors in Resistance to Change

People tend to evaluate the effect of change individually but they express it through group incollective form. Therefore, the reasons underlying resistance to change may be identified atthese two levels:


11/20

Individual Resistance

There are many factors operating at the individual level which are responsible for resistance.Degree of force in resistance depends on how people feel about change. These feeling may bebased either on reality or there may be emotional feeling towards the change. These feelings,either real or emotional, may be seen in the context of three types of factors: economic,

psychological and social.

Economic Factors

People feel attached to the organization for satisfying their needs and economic needs

physiological, job security etc. precede over other needs. People may perceive that they will

be adversely affected by the change in terms of their needs satisfaction in the following

ways:

1. Skill Obsolescence:A change is generally meant for better methods of working which may

involve new techniques, technology, etc., whenever people sense that new machinery (change) poses a

threat of replacing or degrading them, they simply resist such a change. When computer was introduced

in the business sector in India, it attracted a lot of resistance because of this reason.

2. Fear of Economic Loss:A change may create fear of economic loss in the sense that it mayaffect economic compensation adversely, reduce job options, and turn into technological

unemployment. This feeling is created because people feel that those who can match the new

requirements will be better off than those who cannot match.

3. Reduced Opportunities for Incentives: Employees are generally offered incentives linked to

their output in the form of incentive schemes, bonus, etc. All these are wellestablished in the old

system. Whenever there is change, people may feel that in the new system, they will have lower

opportunity to earn incentives and bonus as the new system requires additional skills.

Psychological FactorsPsychological factors are based on peoples emotions, sentiments and attitudes towards change.

These are qualitative and, therefore, may be logical from peoples point of view but may be illogical

from the change agents point of view. Major psychological factors responsible for resistance are:

ego defensiveness, status quo, lack of trust in change agent, low tolerance for change, and fear of

unknown.

Ego Defensiveness:A change may affect the ego of the people affected by the change and in order to

defend their ego, people resist change. A change in itself suggests that everything is not right

at a particular level. Thus, the change may be perceived as an instrument for exposing the weakness

of the people.

Status Quo: People want status quo i.e. they do not want any disturbance in their existing equilibrium

of life and work pattern. The change initiated by the organization disturbs such equilibrium and people

have to obtain another equilibrium which is a painful exercise. Therefore, everyone tries to avoid it.

Low Tolerance for Change:In the context of maintaining status quo, people may differ. Some

people have very low level of tolerance for change and ambiguity as compared to others. Therefore,these people resist any new idea.

Lack of Trust in Change Agent:The effect of change is perceived in the context of change agent,

that is, the person who initiates change. If people have low degree of confidence in the change agent,

they show resistance to change efforts. This is the reason why labor union resists changes initiated

by management because of the feeling that labor and management are two different interest groups

in the organization.


12/20

Fear of Unknown:A change may be perceived as entering into unchartered area which is

unknown. The change will bring results in future, which is always uncertain. This lack of

certainty creates anxiety and stress in the minds of people and they want to avoid it. The

lack of adequate information about the likely impact of change further complicates the

problems.

Social FactorsPeople derive need satisfaction, particularly social needs, through their mutual compatible interactions.

They form their own social groups at the work place for the satisfaction of their social needs. To the

extent the satisfaction of these needs is affected by a change, people resist it. The major factors causing

resistance to change are: desire to retain existing social interaction and feeling of outside interference.

Desire to Maintain Existing Social Interaction:People desire to maintain existing social

interaction since it is a satisfying one. When there is any change, their existing social

interactions are likely to be changed, which people do not want. Therefore, they resist

change.

Feeling of Outside Interference:A change brought about by the change agent is considered

to be interference in the working of people. This phenomenon is heightened if the change agent belongs

to another social class, e.g., change initiated by managers affecting workers. The latter my feel thatmanagers try to make workers an instrument for higher productivity but the outcome of this

productivity will be retained by them.

2. Organizational Resistance to ChangeNot only individuals and groups within an organization resist change, even the organization itself resists

many changes because of certain reasons. Many organizations are designed to be innovation-resisting.

Many powerful organizations of the past have failed to change and they have developed into routines

This statement suggests that organizations tend to stabilize at a particular level and if the change

efforts are not brought, these organizations start falling. The major reasons for organizational

failure to change are: counting past successes, stability of systems, resource limitations, sunk cost, and

inter-organizational agreement. Some of these reasons are basic while others are by-products of those.For example, first two reasons are basic and others are by-products of the first two.

Counting Past Successes:A major problem before the organizations which have past success

stories is how to face challenges of the changing environment. Since these organizations have

achieved success by following a particular set of management practices, they become too rigid to

change and they hide their failure to change in the guise of past successes. This is the reason why many

old industrial houses are languishing far behind and their places are being taken away by newer

organizations.

Stability of Systems:The organization may design a system through which it may derive

many benefits. The system is stabilized and any change may be perceived as a threat by the

organization itself. For example, a bureaucratic organization has certain fixed rules,

prescribes rigid authority relationships, and institutes reward and punishment system.


13/20

these work in some circumstances. It a change is required in these aspects, the organization

may not bring it easily because it is accustomed to a particular system.

Resource Limitations:No doubt, an organization has to adapt to its environment but the

adaptation has its own cost. If the organization is not fully equipped for meeting such

demands, it may not be possible for the organization to bring necessary change. For

example, if new technology is adopted, it will require resources to procure machine, building

and training for its personnel, and commensurate expenses on other items also.

Sunk Cost: Most of the organizations have sunk cost involved in various assets. Once the

assets are acquired, these can be used for specific period. Now, if the change is required,

what will happen to these assets? Naturally, the organization will like to make a comparison

between the outcomes of changed program and continuing with old program in the light of

this sunk cost. Sunk cost cannot be only in terms of various physical things. This can be in

the form of people also. It an individual is not making commensurate contribution, it is not

necessary that his services are done away with. In such a case, organization has to pay for

his services though these may not be as useful.

3. Causes for Resistance to Change

Resistance to change doesnt necessarily surface in standardized ways. Resistance can beovert, implicit, immediate, or deferred. It is easiest for management to deal with resistance

when it is overt and immediate. For instance, a change is proposed and employees quickly

respond by voicing complaints, engaging in a work showdown, threatening to go on strike, or

the like.

Lets look at the sources of resistance. For analytical purpose, weve categorized them by individual

and organizational sources.

Habit:As human beings, were creatures of habit. Life is complex enough; we dont need to consider the

full range of options for the hundreds of decisions we have to make every day. To cope with this

complexity, we all rely on habits, or programmed responses. When we are confronted with change, this

tendency to respond in our accustomed ways becomes a source of resistance. So when yourdepartment is moved to a new office building across town, it means youre likely to have to change

many habits: waking up 10 minutes earlier, taking a new set of streets to work, finding a new parking

place, adjusting to the new office layout, developing a new lunchtime routine, and so on.

Security: People who have a high need for security are likely to resist change because it threatens

their feeling of safety. When Boeing announces its laying off 10,000 people or Ford introduces new

robotic equipment, many employees at these firms may fear that their jobs are in jeopardy.

Economic Factors: Another source of individual resistance is concern that changes will

lower ones income. Changes in job tasks or established work routines also can arouse

economic fear if people are concerned they wont be able to perform the new tasks or

routines to their previous standards, especially when pay is closely tied to productivity.

Fear of the Unknown: Change substitute ambiguity and uncertainty for the known. And

people in general dont like the unknown. The same applies to employee. If for example, the

introduction of a quality management program requires that production workers learn

statistical process control techniques, some may fear theyll be unable to do so. They may,

therefore, develop a negative attitude towards quality management or behave dysfunctional if required

to use statistical techniques.


14/20

Q6. Suppose a cement industry wants to form a Quality Circle. What would be the criteria that you

would set to form it? What are the benefits that you see in forming a quality circle?

Answer:

Quality Circles

Quality Circle is a small volunteer group of six to twelve employees doing similar kind ofwork. They voluntarily meet together on a regular basis to carry out frequent checks in theirrespective work areas for improvements. They use certain proven techniques for analyzingand solving work related problems coming in the way of achieving and sustaining excellenceso that they can bring about a mutual up liftment of employees as well as the organization.So basically a volunteer group is composed of workers, under the leadership of theirsupervisor who are trained to identify, analyze and solve work-related problems arecollectively called Quality circle. They present their solutions to management for theimprovement of organizational performance. Tue quality circles become self-managing aftergaining management confidence.If anything could battle the dehumanizing concept of division of labor, it is Quality circle. It hasbrought back the concept of craftsmanship, which doesnt work well on an individual basisbecause it is uneconomic, but it proves a boon when used in group form. The prime motto ofQC is improving occupational safety and health, improving product design, and improvementin the workplace and manufacturing processes.

1. Key Features of Quality Circle:

They are formal groups. They hold meetings at least once a week on company time and are trained by competentpersons who may be personnel and industrial relations specialists. Quality circles are generally free to select any topic they wish, but they cannot select salaryrelated topics or other topics related to terms and conditions of work, because these issues aredealt with via other channels.

2. The Concept

The concept of Quality Circle primarily focuses on a workers value recognition as a humanbeing, as someone who willingly takes on his job, his wisdom, intelligence, experience,attitude and feelings. It is just another part of human resource management considered as oneof the key factors in the improvement of product quality & productivity. Quality Circle concepthas three major attributes:

Quality Circle is a human resource development technique.Quality Circle is a problem solving technique.Quality Circle is a form of participation management.

3. Objective of QC

There multi-faced objectives of Quality Circles: Change in Attitude. Self Development Development of Team Spirit Improved Organizational Culture

Benefits of Quality Circles

The quality control concept did not get an easy acceptance in India. It took two decades to getacceptance in India, after its introduction in Japan. The reason might be differences in theindustrial context in the two countries. Japan needed it for its survival in a competitive market.India had a reasonably protected, sellers market, with consequent lethargy towards efforts to


15/20

improve quality and productivity. However, with the policy of liberalization of economy andprivatization of infrastructure development, contexts changed.The concept now needs to be looked upon as a necessity because it benefits in the followingways:Team Work: It helps to eradicate inter-team conflicts and clashes and enhance the concept ofteam spirit.

Positive Attitude: Employees start working with a positive attitude towards work, assumingit astheir own work. They develop a Can Do and I care attitude. Personality advancement: Quality circle practice helps to learn new skills and also brings outthe hidden potential of employees. Positive working environment: It improves the organizational working environment andinvolves employees in every process, right from a small decision to a big deal. Increased productivity: It helps in increasing overall productivity of organization byimprovement of work processes and reduction of excessive costs. They increase operationalefficiency, improve quality, and promote innovation.


MU0013

HR Audit- 4 Credits(Book ID: B1231)


Q4. What are the trends in HR audit seen in Indian scenario?AnswerAn HR audit is like an annual health check. It plays a vital role in instilling a sense ofconfidence in the management and the HR functions of an organisation.- E J SarmaThe same way as a doctor would first diagnose the ailment and then suggest an appropriatecustomised medication for all his patients, an HRD auditor should first diagnose theopportunities and problems, identify deficiencies in the strategy, structure, staff and systems ofthe HRD process in an organisation and then recommend steps for improvement. He shouldbase his recommendations on the future responsibilities of the HRD department as derived fromthe business plans of the company he is working for.In India, the prevalence of HR Audit has been quite popular since 1970s. It first promulgatedby BHEL (Bharat Heavy Electrical Ltd), a leading public enterprise, during the financial year1972-73. Later it was also adopted by other leading public and private sector organisationsin the subsequent years. Some of them are Hindustan Machine Tools Ltd. (HMTL). Oil andNatural Gas Corporation Ltd.(ONGC), NTPC, Cochin Refineries Ltd. (CRL), MadrasRefineries Ltd.,(MRL), Associated Cement Company Ltd.(ACC) and Infosys TechnologiesLtd.(ITL).

Adaptability of various models, especially Lev and Schwartz model and Flamholtz model anddiscount rate fixation and disclosure pattern i.e. either age wise, skill wise etc., in BHEL,


16/20

SAIL, MMTC (Minerals & Metals Trading Corporation Of India Ltd.) HMTL, NTP, etc., made HR auditing

even more popular in the country.

All said and done though, let us mark the fact here despite this all, there has been no uniformity

among Indian enterprises regarding HRA disclosure.

HRD audits of different organisations have revealed different things.

Let is make it clear at this point only that the names of the organisations have been changed because the

audit process reveals the strengths and weaknesses of the organisation are brought to the fore and

the organisations may not like it to get their weaknesses published. It is a point to mark that, in most of

the organisations, great support was given to all HRD activities by the top management of the

organisations. Thus we can for sure make out the success of an HRD intervention.

It may be concluded that human resource auditing clearly encompasses such elements as

the:

Composition of employees grades;

Productivity of human resources;

Programmes for employee development;

Personnel payments to the employees and expenses on social welfare per

employee;Human asset valuation;

Human assets vis-a-vis total assets;

Value of human assets in an organization.

Q6. Elaborate on the need for Human Resource Audit.

Answer:

Human Resource Audit is a systematic assessment of the strengths, limitations, anddevelopmental needs of its existing human resources in the context of organizationalperformance. (Flamholtz, 1987).Human Resource Audits give an account of the skills, abilities and limitation of itsemployees. The audit of non-managers are called skills inventory while the audit ofmanagers are called management inventories. Basically, the audit is an inventory thatcatalogues each employees skills and abilities which enables the planners to have anunderstanding of the organisations work force. (William B. Werther, Jr. and Keith Davies).

o To make the HR function business-driven.

o Change of leadership.

o To take stock of things & to improve HRD for expanding, diversifying, & entering into a

fast growth phase.o For growth & diversification.

o For promoting professionalism among employees & to switch over to professional

Management.o To find out the reasons for low productivity & improve HRD strategies.

o Dissatisfaction with a particular component.

o To become employer of choice.

o To ensure effective utilization of human resources.

o To review compliance with tons of laws and regulations.

o To instill a sense of confidence in the human resource department that it is well-

managed and prepared to meet potential challenges and opportunities.


17/20

o To maintain or enhance the organizations reputation in a community.

For example, while many other PSUs stood losing on the profitability grounds, HR auditing at

Bharat Heavy Electricals Limited (BHEL)ensured that the company remained a profit making

heavy engineering public sector company, and thus maintained its reliability among the stakeholders.

Master of Business Administration- MBA Semester 3MU0013 HR Audit- 4 Credits

(Book ID: B1231)


Q1. Explain the linkages between HR Audit and business functions.

Answer:

Human Resource Audit and Business LinkagesThe HRD audit also examines the linkages between HRD and other systems like total qualitymanagement, personnel policies, strategic planning etc.Suggestions are made on the basis of evaluation on the future HRD strategies required bythe company, the structure the company needs to have for developing new competenciesand the systems that need to be strengthened, the styles and culture that has compatibilitywith HRD processes in the company particularly the styles of the top management, etc.Business linkages of Human Resource DevelopmentIt indicates the extent to which HRD efforts (tools, processes, culture etc.) are driven toachieve business goals.The business goals include:

Business excellence including profitability and other outcomes the organization is

expected to achieve;Internal operational efficiencies;Internal customer satisfaction;External customer satisfaction;Employee motivation and commitment;Cost effectiveness and cost consciousness among employees; Quality orientation.

Role of HRD Audit in Business ImprovementsHRD audit is cost effective

It can give many insights into a companys affairs.It could get the top management to think in terms of strategic and long term business

plans.Changes in the styles of top management

Role clarity of HRD Department and the role of line managers in HRD Improvements in HRDsystemsIncreased focus on human resources and human competencies Better recruitment policies

and more professional staffMore planning and more cost effective trainingStrengthening accountabilities through appraisal systems and other mechanisms

Streamlining of other management practices


18/20

Q4. What are the components of human resource development audit?

Answer:

Components of Human Resource Development Audit The HRD audit is divided into threecomponents: Organisation and Administration of Human Resource Information Management throughDocumentation Computerized HRIS

1. Organisation and administration of human resource

In this you should consider following points: The way in which the organizations HR office is organized The operating standards and internal controls followed in the business unit. The ways of administrating retention rights, including notices, matrix, use of separation

incentives, and outplacement practices. The procedure of making HR staff up to date with the HR field. The techniques used for communicating with employees and appointing authorities indepartment.

2. Information management through documentation

You must be aware that information is managed in the business unit through documentation ofvarious records of the employees and factors concerned to them. So following are someimportant considerations in this: The person with whom the personnel files currently held. The documents are held in personnel files. The ways to document following in your organization :-Hiring:Application, interviewing, and reference checks-Compensation and benefits-Leave and overtime information-Transitions

-Training-Discipline-Work history-Work Assignments-Significant accomplishments-Emergency contact information-Performance evaluation and performance management Termination The duration of holding the files. The place at which they are stored after employees leave. It should be seen that whether there is training of managers and employees aboutpersonnel files.


19/20

Q6. Elaborate on the different aspects work place policies and practices to be considered by the

employers.

Answer:

Workplace Policies and Practices

Many smaller companies do not like writing certain aspects of ways of conducting business.For such companies, it is mere formality and they do not appreciate people-orientedculture. Though it should be avoided because it is patently illegal because laws require thatcompanies should mention very clearly the policies about guaranteeing specific protectionsto employees

1. Safeguarding employee information

Employees personal information should be safeguarded. Separate files should bemaintained for personal information as contrasted with employment related information.Main objective behind it to ensure that while deciding the employees career with thecompany his personal information should not be considered. Forexamplewhile decidingwhether to promote employee or not, instead of his personal information like his religion, his workexperience and capabilities should be considered.The employment decision needs to be made on work/performance-related information, notthe personal information. Relevant materials in the work file include information on theemployees education, related work experience, and performance evaluations in otherpositions within the company. An audit can clarify what information must be segregated andthe laws that govern employees access to and copying of their files. Other employeeinformation that must be safeguarded includes any materials that contain medicalinformation.

2. Employee performance management

An audit can review companys job descriptions for compliance (i.e., to determine whetherthe descriptions list the essential functions of the job). Various legal issues can arise due toperformance related problems of employees. Audit will help in following improvements andreviews: A 90-day written standard performance evaluation form, An annual written standard performance evaluation form, A performance management/performance improvement plan, A description of the companys policy for both voluntary resignation and company -initiatedtermination, Wage and salary administration program, Bonus/stock option criteria.

3. Safe work environment

Audit practices may also help the companies to know about factors that contribute to a safework environment. A company may choose to develop an audit sheet tailored to a particularissue, such as the companys zero-tolerance policy for harassment. For example, a

company may wish to review and evaluate its practices of dealing with inappropriateharassing behaviour in its workplace.

4 Auditing workplace behaviors that support legal compliance

A safe, dignified, and respectful work environment is not only mandated by the law,

but also increases motivation and productivity of the employees. An example of

review of business practices used to deal with allegations of harassment safe


20/20

working environments should be considered especially for the females in the

offices so as to make them feel confident and concentrate on work is shown as

under:

Tailored Reviews can be added to the General Audit

Review of Business Practices used to deal with Allegations of HarassmentMethod of Review Area of Review

Walk-through referring to the HR audit report:Are thereposters visible throughout the company specifically prohibiting such behaviors?

Review of new employee: Does each employee receive a copyof the policy upon package hire? Review of HR files Does thecompany redistribute a copy of the policy with a cover memo from asenior manager clearly stating the companys expectation ofappropriate and respectful behaviors? Does the memo containinformation regarding to whom/where to report violations of thepolicy?

Review of policy manual: Does the company have a clearly

published and posted employee handbook (both) non-retaliationpolicy?

Review of HR files:Are reports of harassment or other

inappropriate interviews behaviors investigated promptly by HR and handled discreetly?

Review of HR files: Is there documentation representing such investigations with the results?Review of HR files: Is there documentation indicating variousforms of sanction up to and including termination if an investigation indicates that inappropriatebehaviors occurred?

Review of files/interviews:Are managers trained on how to handle reports of harassment?Review of files/interviews:Are employees advised of their rights

and informed on how and where to make a report of inappropriatebehaviors?

Review of files/interviews: Do employees indicate a thorough understanding of the

companys beliefs regarding safe andrespectful workplace behaviors?

master of business administration-3rd sem

Documents