HRM Univ Question Papers

8/8/2019 HRM Univ Question Papers

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HUMAN RESOURCE MANAGEMENT-2001

Attempt any five questions Total 100 marksAll questions carry equal marks

Answers 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 management programmesuccessful the HR Manager has to implement the following steps:

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

2.

Planning for Change: The change should be planned by the Management. Employees should get anopportunity for planning and installing the change. This will help the group affected to accept andunderstand the need for change.

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

4. Group Dynamics: Group dynamics refers to the ever changing interactions and adjustments in themutual perceptions and relationships among members of the groups. Such associations are powerfulinstruments which facilitates or inhibit adaptation to change. The management has to positivelyarticulate such groups.

5. Cautious and Slow Introduction: The HR manager should cautiously and slowly introduce change.He should not suddenly and abruptly introduce change. He must aim bring about awareness ofchange and construct an attitude of welcoming change. Change must be introduced in sequentialparts, 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 counteract negativeresistance. Proper training and technical knowledge should be imparted to the employees. Theleadership style would be supportive and human oriented.

7. Sharing the Benefits of Change: Any change whether technical, social or economic will leastresisted by the employees if the management permits the employees to share the benefits which willarise 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, move themto higher levels and develop them.

10.Organisation Development: HR Manager should also look into the psychological and behaviouralareas of the employee with a view to achieve organizational effectiveness. Employees with enrichedbehaviour welcome change.


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

Ans 2. Indian Companies basically face two factors viz Internal and External that pose a problem in the

smooth functioning of HRM function.

External Factors.

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

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

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

4.

Information Technology: Technology has made an amazing shift in the way to conduct business.These shifts include business process re-engineering, supply chain management etc. It also reducesobsolete machinery and traditional human resources. However in latter stages it eliminates manycategories 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 resources in

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 of humanresources, 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 short ternrange. They have to face new competitors. Rapid change in socio and economic conditions. Smallorganization size, poor management practices. Unstable product/service demand patterns.

5. Companys Production/Operations Policy: Companys policy regarding how much to produceand how much to buy from outside to prepare a final product influences the number and kind ofpeople 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 the merits anddemerits of each.

Ans. 3. The sources of recruitment are broadly divided into internal sources and external sources

consisting of the following:

Internal sources of Recruitment:

1. Present Permanent Employees : Organizations consider the candidates from this source for higherlevel of jobs due to availability of most suitable candidates for jobs relatively or equally to externalsources, to meet the trade union demands and due to the policy of the organization to motivate thepresent employees.

2. Present temporary/casual Employees: Organizations find this source to fill the vacancies relativelyat the lower level owing to the availability of suitable candidates or trade union pressures or in order tomotivate them on present job.

3. Retrenched or Retired Employees: Employees retrenched due to lack of work are given employmentby the organization due to obligation, trade union pressure etc. Sometimes they are re-employed by theorganization as a token of their loyalty to the organization or to postpone some interpersonal conflicts forpromotion.

4. Dependents of Deceased, Disabled, retired and present employees: Some organizations function with a view to developing the commitment and loyalty of not only the employee but also his familymembers.

5. Employee Referrals: Present employees are well aware of the qualifications, attitudes, experience andemotions of their friends and relatives. They are also aware of the job requirements and organizationalculture of their company. As such they can make preliminary judgment regarding the 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 theircollege/educational institution. They are inexperienced as far as work experience is concerned.

2. Private Employment Agencies/Consultants: Public employment agencies or consultants like ABCConsultants in India perform recruitment functions on behalf of a client company by charging fees.Line managers are relieved from recruitment functions and can concentrate on operational activities.

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

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

5. Data Banks: The management can collect the bio-data of the candidates from different sources likeEmployment 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 response participation ofthe 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.


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7. Similar Organizations: Generally experienced candidates are available in organizations producing

similar products or are engaged in similar business. The Management can get potential candidatesfrom this source.

8. Trade Unions: Generally unemployed or underemployed persons or employees seeking change inemployment put a word to the trade union leaders with a view to getting suitable employment due tolatter rapport with the management.

9. 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.

10.Consult In: the busy and dynamic companies encourage the potential job seekers to approach thempersonally and consult them regarding the jobs. The companies select the suitable candidates andadvise the company regarding the filling up of the positions. Head hunters are also called searchconsultants.

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 prospective employersto place their human resources. These professional and training institutions are called bodyshoppers and these activities are known as body shopping. The body shopping is used mostly forcomputer 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 to useinternet as a source of recruitment. Organizations advertise the job vacancies through the world 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 employing thecandidates 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.

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 management

may have to consider some concessions.2. Retrenched workers get an opportunity towork again.

Managements gets a chance to postponepromotion due to interpersonal conflicts.

3. Dependents of the deceased get a job easily 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.


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Merits and Demerits of External of Recruitment

Sr. Merits of External Sources ofRecruitment 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 noconfidentiality.

3. Expertise, excellence and experience in otherorganizations can be easily brought into theorganization.

Specified vacancies have to be filled bycandidates referred by employment exchanges

which do not allow other candidates to beeligible.

4. Existing sources will also broaden theirpersonality.

5. Human Resource mix can be balanced

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

7. Reduction in time for recruitment

8. Increase in the selection ratio i.e. recruitingmore candidates.

9. HR professionals can concentrate onstrategic issues.

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

Ans. 4. Human resource planning means deciding the number and type of the human resources required foreach job, unit and the total company for a particular date in order to carry out organizational activities.

It is a process by which an organization moves from its current manpower position to its desiredmanpower 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 categories

Acquisitions and Mergers Reduction of human resources of managerial positions

Retrenchment Reduction of human resources of almost all thecategories through VRS and other means

Low Cost Leadership Reduction of human resources

Differentiation 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.- 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 right 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.


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Important Elements of Human Resource Planning.

- Analyzing Corporate and unit level strategies-

Demand Forecasting: Forecasting the overall human resources requirements in accordancewith the organizational plans.- Supply Forecasting: Obtaining the data and information about the present inventory of

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 Remuneration

1. It is accepted as a sound technique for theachievement of greater productivity

It 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 which

would be a serious matter of concern for themanagement.

5. The more the worker produces the more heearns.

The tension created would eventually affect thetotal output.

6. Higher productivity is an importantperquisite of economic development.

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

Q 5.b. Explain what is Job Evaluation?

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 performance andwhich differentiates one job from all others. It is concerned with arrangement of jobs in order of relativevalue within a given organization. Once jobs have been evaluated it is then possible to harness a wage orsalary structure to the established hierarchy.


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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 teach it.The job must be divided into logical parts so that each can be taught at a proper time without thetraining losing plan. For each part one should have in mind the desired technique of instruction i.e.

whether a particular point is best taught by illustration, demonstration or explanation.

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 nervous when 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 the followingactivities :

- 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 unionleaders 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 addition onemay illustrate various points through the uses of picture, charts diagrams and other training aids.

5. Try out the Trainees Performance: As a continuation of the training sequence, the trainee shouldbe asked to start the job or operative procedure. Some instructors prefer that the trainee explainseach step before doing it, particularly if the operation involves any danger. The trainee throughrepetitive practice shall acquire more skills.

6. Follow Up: The final step in most training procedures is the follow-up when people are involved inany problem or procedure it is unwise to assume that things are always constant. Follow up can beadapted to a variable re-enforcement schedule as suggested in the discussion of learning principles.Every training programme should have a follow up to improve on the future programmes.

Q 6b. Critically examine Herzbergs 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


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factors he called DISSATISFIERS and not motivators. Their presence or existence does not motivate in thesense of yielding satisfaction, but their absence would result in dissatisfaction. They are also known ashygiene factors.

SATISFIERS: The second group are thesatisfiers in the sense that they are motivators which are related tojob content. It includes factors of achievement, recognition, challenging work, advancement and growth injob. Their presence yields feeling of satisfaction or no satisfaction but not dissatisfaction.

Another WAY to present the above question

Ans 6b. Herzbergs Classification of Maintenance and Motivational Factors

Sr. Maintenance Factors or Dissatisfiersor Hygiene Factors

Motivational Factors or Satisfiers

1. Job Content Job Content

2. Extrinsic Factors Intrinsic Factors

3. Company Policy and Administration Achievement

4. Quality of supervision Recognition5. Relations with superiors Advancement

6. Peer Relations Work Itself

7. Relations with subordinates Possibility of Growth

8. Pay Responsibility

9. Job security

10. 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 industrial enterprises- 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.

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.e. hikein wages, providing more benefits, job security etc. through collective bargaining and direct actionsuch as strikes, gheraos etc.

b. Fraternal Or Extra Mural Functions : These functions include providing financial and nonfinancialassistance to workers during the period of strikes, lock-outs, extension of medical facilities, during


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sickness and casualties, provision of education, recreation, recreational and housing facilities,provision of social and religious benefits etc.

c. Social Functions: These functions include carrying out social service activities, discharging socialresponsibilities 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 members. Welfareactivates like acquiring of house sites, construction of houses, and establishment of co-operativesocieties. Educating its members and their family. Arranging to conduct research programmes.Analyzing data for collective bargaining, preparing notes for union officials, for court cases etc. Theyalso arrange to analyze macro data about the economy, industry and different sectors 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 organizationalanaylsis, 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. Basically thereare two type of analysis done to identify the training. One is the Organizational Analysis and the otherIndividual Analysis.

Training needs = Job and organizational requirement-Employees specifications

Identification of Training Needs

Sr. Group or Organizational Analysis Individual Analysis

1. To identify Organizational goals and objectives Performance appraisal

2. Personnel/skill inventories Work sampling

3. Organizational Climate indices Interviews

4. Efficiency indices Questionnaires

5. Exit interviews Attitude survey

6. MBO or work planning systems Training progress

7. Quality circles Rating scales

8. Customer survey/satisfaction data Observation of behavior

9. Consideration of current and projectedchanges

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


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- 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 the

Concept 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 and societyat large.

- To provide a better understanding to employees about their role and place in the process ofattainment 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 fortapping 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 marks

Answers should be in sufficient detail with case examples.

Q1. What are the challenges before the Human Resource function in todays 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 some ofthem conflicting, tend to be generated. Unless the organization develops mechanisms for coping with theseself-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 to faceto survive. All these challenges are discussed below.

1. Technological factors: Just as necessity is the mother of invention competition and a host of otherreasons are responsible for the rapid technological changes and innovations. As a consequence ofthese changes, technical personnel, skilled workers, computer operators and machine operators areincreasingly required while the demand for other categories of employers has declined. Henceprocurement of skilled employees and their increase in numbers to match the changing jobrequirements 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 organization changes

with the entrance of workforce with different backgrounds (Social economic, region, community, sex,

religion, traditions culture etc). There has been a significant change in the structure of employmentwith the entry of 1) candidates belonging to the schedule castes, schedules tribes and backwardcommunities. 2) more female employees, due to increased career orientation among women to thesuitability of women for certain jobs and to women becoming more acclimatized to the workingclimate and higher level of commitment. 3) The workforce consists of different regions but due toincreased transportation facilities and mobile character of people. These changes in workforce are achallenge and a complicated task of HR function. It has to deal with employees with differentbackgrounds.

3. Changes in employee Roles and their Values: Earlier the management could totally control itsemployees and get the desired output. Today the employees have to be considered as a partner in theorganization. Changing structure of workforce has led to the introduction of new values inorganization. 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 nowprefer flexible working hours to fixed time schedule. v) Level of education in recent years iscomparatively very higher. Increased formal education has led to the change of attitude of theemployees.

4. Changing demands of employer: changes always are not on the side of employees. Organizationsalso undergo changes and consequently their demands on employees will also change. Theinformation technological revolution and neck to neck marketing competition of most of theorganizations 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 interested regardingthe 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 the government inbusiness has after 1991 with the announcement of economic liberalization. However awareness of


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legislations is very important like the Factory Act, 1948, Trade Union act 1962, Payment of wages Act1936, The Minimum Wages Act 1923, The Payment of Bonus Act 1965, The Employment ExchangeAct, Standing Order Act 1946, Maternity Benefit Act 1961, and The Apprentice Act 1961. All theseacts if not complied with can get the organization into deep trouble.

6. Customers: Organizations produce products or render services for the ultimate consumption use bythe customer. In other words organizations depend upon customers for their survival and growth.Customers revolt against employees, if the services rendered are less qualitative. The banks facesuch type of challenges. Customers may develop a negative attitude towards the organization, if itdoes not follow the social policies of the country. Hence the customers pose a challenge special allyin 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 everyones requirement and keep them happy is a big challenge facedby 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 required foreach job, unit and the total company for a particular date in order to carry out organizational activities.It is a process by which an organization moves from its current manpower position to its desiredmanpower 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 categories

Acquisitions and Mergers Reduction of human resources of managerial positions

Retrenchment Reduction of human resources of almost all thecategories through VRS and other means

Low 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.- 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 right 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 of

human resources and forecast the future changes in the human resources inventory.

- Estimating the net human resources requirements


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- 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 nethuman resource requirements.

- Plan to modify or adjust the organizational plan if future supply will be inadequate withreference 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 andwhich differentiates one job from all others. It is concerned with arrangement of jobs in order of relativevalue within a given organization. Once jobs have been evaluated it is then possible to harness a wage 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 whether inthe 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 always fearsthe unknown and a change represents the unknown.

Management is said to be an agent of change and has to introduce change successfully. Management has totake 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 the groupaffected 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.

4. Group Dynamics: Group dynamics refers to the ever changing interactions andadjustments in the mutual perceptions and relationships among members of the groups.Such associations are powerful instruments which facilitates or inhibit adaptation tochange. 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 aimbring about awareness of change and construct an attitude of welcoming change. Changemust be introduced in sequential parts, the results must be reviewed and requiredadjustments 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 human oriented.

7. Sharing the Benefits of Change: Any change whether technical, social or economic willleast resisted by the employees if the management permits the employees to share thebenefits which will arise out of change.


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8. Training and Development: Based on the change the job should be redesigned.Management should train the employees before hand and prepare the employees to invitechange. Normally trained and developed employees will not resist change. They would feelempowered with their enriched skills and knowledge.

9. Career Planning and Development: The HR Manager should plan careers of employees,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 effectiveness.Employees 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 method.Under 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 job

training 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 services forwhich 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 methodGives 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 the coachand relieves him of his burden. A limitation of this method is training is that the trainee may not have thefreedom 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 job.

The trainer appraises the performance of the trainee, provides feedback information and corrects thetrainee.

d. Committee Assignments: Under the committee assignment, a group of trainees are given and asked tosolve an actual organizational problem. The trainees solve the problem jointly. It develops team 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 low orwhen something has gone amiss. By the time the management recognizes the fact that worker is demotivated,it is faced with one crisis or another. Perceptive managers are therefore constantly on the look out for clues toany 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 and6. Wastage and spoilage7. No job satisfaction


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8. 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 the companyare defective, or that if executives are at fault, or that the views of those workers who are demodulated donot match with those of the company or its executives. May the managers are committing a mistake andaccepting it. The demotivated worker should be counseled. He should be explained the responsibilities andrewards 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 jobs asand 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 and

Varied 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 Adopted

1. GE Capital, Lucenttechnologies

Weigh 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 process

6. Novartis Match succession planning and development processes toemerging trends in corporate culture.

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

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 to thedegree of accomplishment of the tasks that make up an individuals job. It indicates how ell an individual isfulfilling the job demands.

Every organization has to decide upon the content to be appraised before the programme is approved on thebasis of job analysis. The content to be appraised may vary with the purpose of appraisal and type and level ofemployees.

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 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 and development

Needs and to evaluate effectiveness of training and development programmes

- Career planning and development and movement of employees


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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 Appraisal

1. Xerox Provide a core set of metrics for use across organization

2. Toyota Focus performance reviews on goals rather than numbers toensure employee alignment

3. Federal Express Daily Performance Measurement Reporting. CEO team weeklyanalysis 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 byusing 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 employers requirementof 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, work assignment,grievance redressal and disciplinary issues.

- 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 employers 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 amongthe workers.


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

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

-

To make the workers understand the objectives of the management and accept the same forthe 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 in thethird world countries. It includes small industries, tiny industrial units, cottage industries, shops andestablishments, hotels, restaurants, mobile business, trading units taxi operators agriculture etc. Demandfor and supply of labour is normally casual and contract in nature. They do not follow any systematic orscientific method of recruitment and selection. Candidates are, mostly employed if they accept low wages.Organizations normally do not design the jobs. Normally they do not provide employee benefits, welfaremeasures, fringe benefits etc. The employees have no choice but accept low wages and are governed by theemployer. There is a lot of ignorance and illiteracy. Superior strength of employer. Weakest bargaining power

of the employee. Casual nature of employment. The employers exploit the employees. Bonded Labour. ChildLabour 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 perform multifarioustask in order to attain common goal. These objectives are best met collectively. But it has to be structuredso as to achieve specific ends. This structure is known as an organizational structure and can bedifferentiated into 3 types.

Sr. Organisational structure in1950s

Organisational structure in 1950s Broad Banding*(hierarchy containing smallernumber of level or grades

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

3. Autocratic Team Focused Pay the person based on Merit

4. Centralized Adaptive/Mobility Horizontal reinforces

5. Tightly held ownership Flexible Few Rules

6. Individual contributors Decentralized Market Driven

7. Narrow Responsibilities Externally focused

7.b. Distinguish between Induction and Orientation Systems.

Sr. Induction Orientation

1. Introducing the new employee who isdesignated as a probationer to the job, job

location, 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 joinsa company about the environment of the

job and the organization in order to makethe new employee acquainted

The new employee has to report to the HR Departmentat stipulated date and time. From thereon he shall beguided by the HR Chief/Executive. He will be givenbrochures describing the organizations history,products and philosophy. Review of the overallstructure, authority structure and policies andpractices of the company.

3. Gives a sense of belonging andcommitment to the new employee

Personnel/HR department will discuss companybenefits. New employee is to fill out health, tax andother relevant forms.

4. Attaching a colleague to the new employee

to reduce the new employee anxiety.

Tour of the main building and auxiliary facilities.


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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 work

quickly and the supervisors time is savedto a great extent.

Detailed discussion with the Chief Executive HRM/Dept Head about daily jobs routine and department

policies and rules.

New employee on his own to get familiarized with thejob.

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 in natureand contains a statement of job analysis. It serves to identify a job for continuation by other job analysts. Ittells 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 all importantrelationships.- 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 ofcomplexity (c) the degree of skill required (d) the extend to which problems are standardized(e) the degree and type of accountability. (f) Supervisory responsibility should be shown to theincumbents. (g) The basic requirement, experience, works wise, age qualifications etc., shouldbe stated very clearly.

And 8b. Training Needs Analysis: Training needs are identified on the basis of organizational analysis, jobanalysis 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 in anorganization in which is lacking attitude/aptitude, knowledge and skill.

Training needs = Job and organizational requirement-Employees Specifications

Methods used in Training Need Analysis.

Sr. Group or Organizational Analysis Individual Analysis

1. To identify Organizational goals and objectives Performance appraisal

2. Personnel/skill inventories Work sampling

3. Organizational Climate indices Interviews

4. Efficiency indices Questionnaires

5. Exit interviews Attitude survey

6. MBO or work planning systems Training progress

7. Quality circles Rating scales

8. Customer survey/satisfaction data Observation of behavior

9. Consideration of current and projectedchanges

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

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.


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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 organization isfaced with a problem of using the existing surplus for some higher category of work by giving them trainingor employing them with their sister concern or simply giving the employees a golden handshake throughVoluntary Retirement Scheme (VRS). Another way of downsizing is delayering the organization and rectifies

the situation of overstaffing.

Ans 8 e. Team Effectiveness: Team effectiveness is the result of team work which consists of a group ofjobs that are linked and interconnected with each other for the purpose of performing a total operation. Thetotal operation is assigned to a group of employees. Though each employee is allotted a job in the team, heis expected to take up the job of other employees when they fail to do it perfectly. Thus jobs in a teamoverlap with each other. Teamwork gains more significance rather than individual jobs. In fact individual

jobs are losing their relevance in the re-engineered businesses, organizations based on supply chainmanagement. Team effectiveness is essential to serve the customer completely. These days organizationsstarted designing teams and analyzing team work. Most recent organization has realized that teamworkproduces better results than the performance of individual work. Infact practices of Enterprise ResourcePlanning (ERP), Business Process Re-engineering (BPRE) and Supply Chain Management require teamwork.

The impact of synergy results in high productivity of teamwork than that of the total of individual

employees. Team effectiveness pertains to minimum acceptable human qualities and relationships necessaryto perform all kinds of activities in a team.

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


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Attempt any five questions Total 100 marks

All 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 policy, policytowards reserving certain jobs for certain communities.

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

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

4 Information Technology: Technology has made an amazing shift in the way to conduct business.These shifts include business process re-engineering, supply chain management etc. It also reducesobsolete machinery and traditional human resources. However in latter stages it eliminates manycategories 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 resources in

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 of humanresources, 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 short ternrange. They have to face new competitors. Rapid change in socio and economic conditions. Smallorganization size, poor management practices. Unstable product/service demand patterns.

11. Companys Production/Operations Policy: Companys policy regarding how much to produceand how much to buy from outside to prepare a final product influences the number and kind ofpeople required.

12. 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.2. What are the different sources of recruitment? Explain the merits and demerits of each.

Ans. 2. The sources of recruitment are broadly divided into internal sources and external sources

consisting of the following:

Internal sources of Recruitment:

1. Present Permanent Employees : Organizations consider the candidates from this source for higherlevel of jobs due to availability of most suitable candidates for jobs relatively or equally to externalsources, to meet the trade union demands and due to the policy of the organization to motivate thepresent employees.

2. Present temporary/casual Employees: Organizations find this source to fill the vacancies relativelyat the lower level owing to the availability of suitable candidates or trade union pressures or in order tomotivate them on present job.

3. Retrenched or Retired Employees: Employees retrenched due to lack of work are given employmentby the organization due to obligation, trade union pressure etc. Sometimes they are re-employed by theorganization as a token of their loyalty to the organization or to postpone some interpersonal conflicts forpromotion.

4. Dependents of Deceased, Disabled, retired and present employees: Some organizations function with a view to developing the commitment and loyalty of not only the employee but also his familymembers.

5. Employee Referrals: Present employees are well aware of the qualifications, attitudes, experience andemotions of their friends and relatives. They are also aware of the job requirements and organizationalculture of their company. As such they can make preliminary judgment regarding the match between the

job and their friends and relatives.

External Sources of Recruitment

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

7 Private Employment Agencies/Consultants: Public employment agencies or consultants like ABCConsultants in India perform recruitment functions on behalf of a client company by charging fees.Line managers are relieved from recruitment functions and can concentrate on operational activities.

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

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

10 Data Banks: The management can collect the bio-data of the candidates from different sources likeEmployment 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 response participation ofthe 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.


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12 Similar Organizations: Generally experienced candidates are available in organizations producing

similar products or are engaged in similar business. The Management can get potential candidatesfrom this source.

13 Trade Unions: Generally unemployed or underemployed persons or employees seeking change inemployment put a word to the trade union leaders with a view to getting suitable employment due tolatter rapport with the management.

14 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.

15 Consult In: the busy and dynamic companies encourage the potential job seekers to approach thempersonally and consult them regarding the jobs. The companies select the suitable candidates andadvise the company regarding the filling up of the positions. Head hunters are also called searchconsultants.

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 prospective employersto place their human resources. These professional and training institutions are called bodyshoppers and these activities are known as body shopping. The body shopping is used mostly forcomputer professionals. Body shopping is also known as employee leasing activity.

17 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.

18 E_recruitment: The technological revolution in telecommunications helped the organizations to useinternet as a source of recruitment. Organizations advertise the job vacancies through the world 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 employing thecandidates 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.

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 management

may have to consider some concessions.2. Retrenched workers get an opportunity towork again.

Managements gets a chance to postponepromotion due to interpersonal conflicts.

3. Dependents of the deceased get a job easily 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.


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Merits and Demerits of External of Recruitment

Sr. Merits of External Sources ofRecruitment 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 in otherorganizations can be easily brought into theorganization.

Specified vacancies have to be filled bycandidates referred by employment exchanges

which do not allow other candidates to beeligible.

4. Existing sources will also broaden theirpersonality.

5. Human Resource mix can be balanced

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

7. Reduction in time for recruitment

8. Increase in the selection ratio i.e. recruitingmore candidates.

9. HR professionals can concentrate onstrategic 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 a

state of tension or disequilibrium causing the individual to move in a goal directed pattern towards restoring astate of equilibrium by satisfying the need. Motivation is a process that starts with a physiological deficiencyor need that activates behavious or a drive that is aimed at a goal or incentive. Thus the process of motivationlies 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 in greaterefficiency, higher production and better standard of living of the people. There are basically two types ofmotivation vis 1) Positive Motivation and Negative Motivation.

1. Positive Motivation: People are said to be motivated positively when they are shown a rewards and the wayto achieve it. Such a reward may be financial or non financial. Monetary motivation may include differentincentives, wage plans, productive bonus schemes etc. Non monetary include praise for work, participationin management, social recognition. Monetary incentives provide the worker a better standard of life whilenon 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 desired workdone. In this method of motivation fear of consequences of doing something or not doing something keepsthe worker in desired direction. This method has got several limitations. Fear Creates frustration, a hostilestate of mind and an unfavorable attitude towards the job which hinder efficiency and productivity. So theuse of it should be kept minimum.

Theories of Motivation: There are several theories on motivation. The significant among them are MaslowsHierarchy of Needs, Herzbers Two Factor Theory, Vrooms Expectancy Theory, Porter and Lawlers


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Expectancy Theory and Equity Theory of Work Motivation. We shall discuss 1. Maslows Theory of Hierarchyof 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 physiological needsand ascending to the highest need of self actualization. He says when one set of needs is satisfied; theyno 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 orAcceptance Needs__________________________________________________

Security of Safety Needs__________________________________________________

Physiological Needs__________________________________________________

MASLOWS HIERACHY OF NEEDS==========================================

The Need Hierarchy:

1. 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 level,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 of loss offood, job or shelter. When the physiological needs are satisfied, man starts thinking of the way by

which 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.

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. Social needsat 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 symbols, awards,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.

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. Thesefactors he called DISSATISFIERS and not motivators. Their presence or existence does not motivate in the


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sense of yielding satisfaction, but their absence would result in dissatisfaction. They are also known ashygiene factors.

SATISFIERS: The second group are the satisfiers in the sense that they are motivators which are related to

job content. It includes factors of achievement, recognition, challenging work, advancement and growth injob. Their presence yields feeling of satisfaction or no satisfaction but not dissatisfaction.

Another WAY to present the above question

Herzbergs Two Factor Theory: Classification of Maintenance and Motivational Factors

Sr. Maintenance Factors or Dissatisfiersor Hygiene Factors

Motivational Factors or Satisfiers

1. Job Content Job Content

2. Extrinsic Factors Intrinsic Factors

3. Company Policy and Administration Achievement

4. Quality of supervision Recognition

5. Relations with superiors Advancement6. Peer Relations Work Itself

7. Relations with subordinates Possibility of Growth

8. Pay Responsibility

9. Job security

10. 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, procedures andother written documents which describe and define how individuals should work with each other. A formalorganizational structure is the organization as it exist son paper. It is the official sanctioned way of doing

things. It tells you who reports to whom and how various problems should be handled. The merits of aformal 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 of 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 over 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 also inventorywhich is very essential for the smooth functioning of an organization.


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12.Proper management of conflict: An organization may require some conflict to beeffective, but too much conflict detracts from effectiveness. In an organized structurepeople conform to the same code of conduct and conflict is usually held in 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 absenteeismetc are minimum.

15.Job satisfaction: The job satisfaction is very high among employees. It induces highmorale which in turn leads to high productivity.

16.Training and Development of employees: Helps in the up gradation and developmentof the employee and gives him an opportunity to grow within the organization.

Q5. What are the objectives of Performance Appraisal System What are sources of error in theappraisal process.

Ans. 5. Performance appraisal is a method of evaluating the behaviour of employees in the work place

normally including both the quantitative and qualitative aspects of job performance. Performance refers to thedegree of accomplishment of the tasks that make up an individuals job. It indicates how ell an individual isfulfilling the job demands.

Every organization has to decide upon the content to be appraised before the programme is approved on thebasis of job analysis. The content to be appraised may vary with the purpose of appraisal and type and level ofemployees Performance Appraisal is a method of evaluating the behaviour of employees in the workplace.

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 their scores

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

Engineering

HYUNDAI 1,00O JOBS TO GO CUT

In an attempt to counter continuing employee low performance and business troubles, Hyundai engineeringand 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 others andhas the opportunity for bias. There rater biases include: a) the halo effect b) the error of centraltendency c) the leniency and strictness biases d) personal prejudice and e) the recency effect.

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

b. The Error of Central Tendency: Some raters follow play safe policy in rating by rating all theemployees around the middle point of the rating scale and they avoid rating the people at

both the extremes scale. They follow play safe policy because of answerability to the


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management or lack of knowledge about the job and person he is rating or has least interestin the job.

c. The Leniency and Strictness: the leniency bias crops when some raters have a tendency tobe liberal in their rating by assigning higher rates consistently. Such ratings do not serve anypurpose. Equally damaging is assigning consistently low rates.

d. Personal Prejudice: If the rater dislikes any employee or any group, he may rate them at thelower end, which may distort the rating purpose and affect the career of these employees.

e. The Recency Effect: The raters generally remember the recent actions of the employee at thetime of rating them on the basis of these recent actions favourable or unfavourable-ratherthan on the whole activities.

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

Ans. 6. The specification of values forms a basis of evaluation. The process of training evaluation has beendefined as any attempt to obtain information on the effects of training performance and to access the valueof training in the light of that information. The various methods of training evaluation are:

1. Immediate assessment of trainees reaction to the programme.2. Trainees 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 trainees superior regarding his/her job performance and behaviour before

and after training.5. Evaluation of trainees 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 trainees attitudes after training programme.9. Cost-benefits analysis of the training programme.10.Seeking opinion of trainees 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 meeting specificobjectives. The nomination of employees should be based on the need of training. The trainers should bequalified and experienced. The training calendar should be discussed with the manager. Training needsshould be identified through job description, performance appraisal and potential appraisal discussions.

1. Reaction: The design of the training depends on the trainees reaction to the usefulness of coverageof the matter, depth of the course content, method of presentation, teaching methods etc.

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 the traineehas 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 individual goalslike development of personality and so

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