Human+Resource+Management+2001 2005

8/8/2019 Human+Resource+Management+2001 2005

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HUMAN RESOURCE MANAGEMENT-2001

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

Q1. What steps should be a Human Resource Managers take to make a changemanagement programme successful?

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

1. Participation of Employees: Before introducing any change the employees should 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 group

affected to accept and understand the need for change.

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

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 aim

bring 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 willeast resisted by the employees if the management permits the employees to share thebenefits which will arise out of change.

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

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

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

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

Ans 2. Indian Companies basically face two factors viz Internal and External that pose aproblem in the smooth functioning of HRM function.

External Factors.

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

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

3. Business Environment: External business environmental factors influence the volumeand mix of production thereby the future demand for human resources.

4. Information Technology:Technology has made an amazing shift in the way to conductbusiness. These shifts include business process re-engineering, supply chain managementetc. It also reduces obsolete machinery and traditional human resources. However in latterstages it eliminates many categories of labour and reduces existing human resources.

5. Level of Technology: Level of technology determines the kind of human resourcesrequired.

6. International factors: International factors like the demand for and supply of humanresources in various countries.

Internal factors:

1. Company Strategies: Company policies and strategies relating to expansiondiversification, alliances etc. determine the human resources demand in terms ofquality and quantity.

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

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

4. Time Horizons: Companies in an unstable competitive environment can plan for onlyshort tern range. They have to face new competitors. Rapid change in socio andeconomic conditions. Small organization size, poor management practices. Unstableproduct/service demand patterns.

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5. Companys Production/Operations Policy: Companys policy regarding how muchto produce and how much to buy from outside to prepare a final product influences thenumber and kind of people required.

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

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

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

Internal sources of Recruitment:

1. Present Permanent Employees : Organizations consider the candidates from thissource for higher level of jobs due to availability of most suitable candidates for jobs relativelyor equally to external sources, to meet the trade union demands and due to the policy of the

organization to motivate the present employees.

2. Present temporary/casual Employees: Organizations find this source to fill thevacancies relatively at the lower level owing to the availability of suitable candidates or tradeunion pressures or in order to motivate them on present job.

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

4. Dependents of Deceased, Disabled, retired and present employees: Some

organizations function with a view to developing the commitment and loyalty of not only theemployee but also his family members.

5. Employee Referrals: Present employees are well aware of the qualifications, attitudes,experience and emotions of their friends and relatives. They are also aware of the jobrequirements and organizational culture of their company. As such they can make preliminaryjudgment 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 theicollege/educational institution. They are inexperienced as far as work experience is

concerned.

2. Private Employment Agencies/Consultants: Public employment agencies orconsultants like ABC Consultants in India perform recruitment functions on behalf of aclient company by charging fees. Line managers are relieved from recruitment functionsand can concentrate on operational activities.

3. Public Employment Exchanges: The Government set up Public Employment Exchangesin the country to provide information about vacancies to the candidates and to help theorganization in finding out suitable candidates. As per the Employment Exchange act

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1959, makes it obligatory for public sector and private sector enterprises in India to fillcertain types of vacancies through public employment exchanges.

4. Professional Organizations: Professional organizations or associations maintaincomplete bio-data of their members and provide the same to various organizations onrequisition. They act as an exchange between their members and recruiting firm.

5. Data Banks: The management can collect the bio-data of the candidates from different

sources like Employment Exchange, Educational Training Institutes, candidates etc andfeed them in the computer. It will become another source and the co can get theparticulars as and when required.

6. Casual Applicants: Depending on the image of the organization its prompt responseparticipation of the organization in the local activities, level of unemployment, candidatesapply casually for jobs through mail or handover the application in the Personnel deptThis would be a suitable source for temporary and lower level jobs.

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

8. Trade Unions: Generally unemployed or underemployed persons or employees seekingchange in employment put a word to the trade union leaders with a view to gettingsuitable employment due to latter rapport with the management.

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

10. Consult In: the busy and dynamic companies encourage the potential job seekers toapproach them personally and consult them regarding the jobs. The companies select the

suitable candidates and advise the company regarding the filling up of the positions. Headhunters are also called search consultants.

11. Body Shopping: Professional organizations and the hi-tech training develop the pool ofhuman resource for the possible employment. The prospective employers contact theseorganizations to recruit the candidates. Otherwise the organizations themselves approachthe prospective employers to place their human resources. These professional and traininginstitutions are called body shoppers and these activities are known as body shopping. The body shopping is used mostly for computer professionals. Body shopping is alsoknown as employee leasing activity.

12. Mergers and Acquisitions: Business alliances like acquisitions, mergers and take over

help in getting human resources. In addition the companies do also alliances in sharingtheir human resource on adhoc basis.

13. E_recruitment: The technological revolution in telecommunications helped thorganizations to use internet as a source of recruitment. Organizations advertise the jobvacancies through the world wide wed (www). The job seekers send their applicationsthrough e-mail using the internet.

14. Outsourcing: Some organizations recently started developing human resource pool byemploying the candidates for them. These organizations do not utilize the human

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resources; instead they supply HRs to various companies based on their needs ontemporary or ad-hoc basis.

Merits and Demerits of Internal Sources of Recruitment

Sr. Merits of Internal Sources ofRecruitment

Demerits of Internal Sources ofRecruitment

1. Motivates present employees whenthey are upgraded internally.

Trade union pressure may not always givethe right candidate for the job. Themanagement may have to consider someconcessions.

2. Retrenched workers get an opportunityto work again.

Managements gets a chance to postponepromotion due to interpersonal conflicts.

3. Dependents of the deceased get a jobeasily

Excessive dependence on this sourceresults in in-breeding, discourages flow ofnew blood into the organization.

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

5. Loyalty, commitment, security of present employees can be enhanced6. Cost of recruitment, training, induction,

orientation, etc is reduced7. Trade unions can be satisfied.

Merits and Demerits of External of Recruitment

Sr. Merits of External Sources ofRecruitment

Demerits of External Sources ofRecruitment

1. The candidates with skill, knowledge

talent etc is generally available.

Campus recruited employees lack work

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

confidentiality.3. Expertise, excellence and experience in

other organizations can be easilybrought into the organization.

Specified vacancies have to be filled bycandidates referred by employmentexchanges which do not allow othercandidates to be eligible.

4. Existing sources will also broaden theirpersonality.

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

organization in the long run.

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

recruiting more candidates.9. HR professionals can concentrate on

strategic issues.

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

Ans. 4. Human resource planning means deciding the number and type of the human resourcesrequired for each job, unit and the total company for a particular date in order to carry outorganizational activities. It is a process by which an organization moves from its currentmanpower position to its desired manpower position. It is influenced by the strategicmanagement of the co.

STRATEGY HUMAN RESOURCE PLAN NING

Expansion Additional human resources of existing categories.Diversification Additional human resources of different categoriesAcquisitions and Mergers Reduction of human resources of managerial

positionsRetrenchment Reduction of human resources of almost all the

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

categories.Purpose of Human Resource Planning.

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

- To minimize imbalances caused due to non-availability of human resources of theright 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 inventoryof human resources and forecast the future changes in the human resourcesinventory.

- 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 al

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.

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

- Plan to modify or adjust the organizational plan if future supply will be inadequatewith reference to future net requirements.

Q5a. What are the merits and demerits of incentive based schemes of remuneration?Ans 5.a.Sr. Merits of Incentive based Remuneration Demerits of Incentive based Remuneration1. It is accepted as a sound technique for

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

2. For employers the need of vigoroussupervision is reduced.

It tends to create tension among differentworkers in an organization.

3. Workers have the advantage of workingin a relatively calm atmospherebecause of minimum vigilance on themby the superior.

A poor performer will earn very little.

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

Tensions caused by incentive schemeswould give rise to internal relations

problems which would be a serious matterof concern for the management.5. The more the worker produces the

more he earns. The tension created would eventuallyaffect the total output.

6. Higher productivity is an importantperquisite of economic development.

A great sense of understanding theproblems of human relations and that ofengineering is required for the smoothadministration of such incentive schemes.

Q 5.b. Explain what is Job Evaluation?

Ans. 5b. Job Evaluation is the process of determining by observation and study and reportingpertinent information relating to the nature of a specific job. It is the determination of the taskswhich comprise the job and of the skills, knowledge, abilities and responsibilities of the worker ofa successful performance and which differentiates one job from all others. It is concerned witharrangement of jobs in order of relative value within a given organization. Once jobs have beenevaluated it is then possible to harness a wage or salary structure to the established hierarchy.

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

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

1. Preparing the Instructor: The instructor must know both the job to be taught and howto teach it. The job must be divided into logical parts so that each can be taught at aproper time without the training losing plan. For each part one should have in mind thedesired technique of instruction i.e. whether a particular point is best taught byillustration, demonstration or explanation.

A serious and committed instructor must :a. Know the job or subject he is attempting to teach

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b. 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 executedthe training programme many times he or she should never forget the newness to thetrainee. The quality of empathy is a mark of a good instructor.

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

- Planning the programme- Preparing the instructors outline- Too much material much be avoided- The session should move logically- Each item should be discussed in depth.- Repetition should be in different words.- The material should be taken from standardized text

- When the standardized text is not available then the programme should bedeveloped based on group approach consisting of employer, skilled employeessupervisors, trade union leaders and others familiar with the job requirements.

- Teach about the standard for trainee like quality, quantity, waste or scrap, ability towork without supervision, knowledge or procedure, safety rules, human relationsetc.

4. Presenting the Operation: There are various alternative ways of presenting theoperations viz. explanation, demonstration. An instructor mostly uses these methods ofexplanation. In addition one may 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, thetrainee should be asked to start the job or operative procedure. Some instructors preferthat the trainee explains each step before doing it, particularly if the operation involvesany danger. The trainee through repetitive practice shall acquire more skills.

6. Follow Up: The final step in most training procedures is the follow-up when people areinvolved in any problem or procedure it is unwise to assume that things are alwaysconstant. Follow up can be adapted to a variable re-enforcement schedule as suggested inthe discussion of learning principles. Every training programme should have a follow up toimprove 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 andadministration, supervision, working conditions, interpersonal relations, salary, status, jobsecurity and personal life. These factors he called DISSATISFIERS and not motivators. Theirpresence or existence does not motivate in the sense of yielding satisfaction, but their absencewould result in dissatisfaction. They are also known as hygiene factors.

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SATISFIERS: The second group are thesatisfiers in the sense that they are motivators whichare related to job content. It includes factors of achievement, recognition, challenging workadvancement and growth in job. Their presence yields feeling of satisfaction or no satisfactionbut not dissatisfaction.

Another WAY to present the above question

Ans 6b. Herzbergs Classification of Maintenance and Motivational Factors

Sr.

Maintenance Factors orDissatisfiers or Hygiene Factors

Motivational Factors or Satisfiers

1. Job Content Job Content2. Extrinsic Factors Intrinsic Factors3. Company Policy and Administration Achievement4. Quality of supervision Recognition5. Relations with superiors Advancement6. Peer Relations Work Itself 7. Relations with subordinates Possibility of Growth8. Pay Responsibility

9. Job security10.

Work Conditions

11.

Status

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

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

- Achieving higher wages and better working and living conditions for the members

- Acquiring the control of industry by worker- Minimizing the helplessness of the individual workers by making them stand

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

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

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

Besides the above functions of the trade unions the national Commission of Labour has entrustedthe following 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

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a. Militant or Intra Mural Functions : these functions include protecting the workersinterest i.e. hike in wages, providing more benefits, job security etc. through collectivebargaining and direct action such as strikes, gheraos etc.

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

c. Social Functions: These functions include carrying out social service activitiesdischarging social responsibilities through various sections of the society like educatingthe customers etc.

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

e. Ancillary Functions: Ancillary functions of trade include Communications to itsmembers. Welfare activates like acquiring of house sites, construction of houses, andestablishment of co-operative societies. Educating its members and their family. Arranging

to conduct research programmes. Analyzing data for collective bargaining, preparingnotes for union officials, for court cases etc. They also arrange to analyze macro dataabout 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 oforganizational anaylsis, job analysis and manpower analysis. Training needs are those aspectsnecessary to perform the job in an organization in which employee is lacking attitude/aptitude,knowledge and skills. Basically there are two type of analysis done to identify the training. One isthe Organizational Analysis and the other Individual Analysis.

Training needs = Job and organizational requirement-Employees specifications

Identification of Training NeedsSr. Group or Organizational Analysis Individual Analysis1. To identify Organizational goals and objectives Performance appraisal2. Personnel/skill inventories Work sampling

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

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b. Job Rotation: This type of training involves the movement of the trainee from one job toanother. The trainee received job knowledge and gains experience from his supervisor ortrainer in each of the different job assignments. Though this method of training is common intraining managers for general management positions, trainees can also be rotated from job tojob in workshop jobs. This method gives an opportunity to express his own ideas.

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

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

d.Workers Participation in Management: The concept of WPM is considered as a mechanismwhere workers have a say in the decision making process of an enterprise. The conceptcrystallizes the concept of industrial democracy and indicates an attempt on the part of anemployer to build his employees into a team which works towards the realization of acommon objective. It is a mental and emotional involvement of a person in a group situationwhich encourages him to contribute to goals and share responsibilities in them.

The main objective of WPM in management include

- To promote increased productivity for the advantage of the organization, workersand society at large.

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

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

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

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

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

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

Q1. What are the challenges before the Human Resource function in todays Indianbusiness scenario?

Ans 1. A goal seeking organizations especially one that seeks improvement over the currentsituation is a challenge, taking organization. When many such goals are pursued tremendousinternal pressures some of them conflicting, tend to be generated. Unless the organizationdevelops mechanisms for coping with these self-generated pressures, it may face major failureand suffer disastrous retreats from its goal.

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

1. Technological factors: Just as necessity is the mother of invention competition and ahost of other reasons are responsible for the rapid technological changes and innovations

As a consequence of these changes, technical personnel, skilled workers, computeoperators and machine operators are increasingly required while the demand for othercategories of employers has declined. Hence procurement of skilled employees and theirincrease in numbers to match the changing job requirements has become a complicatedtask.

2. Human Resource in the Country: The structure, values and the level of education ofhuman resource in a country influence much of the Human Resource function. Theinfluence of manpower in the country can be studies through the changes in structure ofemployment.a. Change in the Structure of Employment: The structure of employment in anorganization changes with the entrance of workforce with different backgrounds (Socia

economic, region, community, sex, religion, traditions culture etc). There has been asignificant change in the structure of employment with the entry of 1) candidatesbelonging to the schedule castes, schedules tribes and backward communities. 2) morefemale employees, due to increased career orientation among women to the suitability ofwomen for certain jobs and to women becoming more acclimatized to the working climateand higher level of commitment. 3) The workforce consists of different regions but due toincreased transportation facilities and mobile character of people. These changes inworkforce are a challenge and a complicated task of HR function. It has to deal withemployees with different backgrounds.

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3. Changes in employee Roles and their Values: Earlier the management could totallycontrol its employees and get the desired output. Today the employees have to beconsidered as a partner in the organization. Changing structure of workforce has led tothe introduction of new values in organization. Among these are moves 1) emphasis onquality of life rather than quantity ii) equality and justice for employees over economicefficiency iii) participation over authority. iv) Workers now prefer flexible working hours tofixed time schedule. v) Level of education in recent years is comparatively very higherIncreased formal education has led to the change of attitude of the employees.

4. Changing demands of employer: changes always are not on the side of employees.Organizations also undergo changes and consequently their demands on employees wilalso change. The information technological revolution and neck to neck marketingcompetition of most of the organizations due to globalization demand that the existingemployees adopt to the ever-changing work situation and learn new skills, knowledge etcto cope with the new changes.

5. Government and Legal factors: Until 1940 the government was not involved ointerested regarding the problems of labor or industry. But the need for Govt., interferencearose out of the belief that Government is the custodian of industrial and economicactivities. The role of the government in business has after 1991 with the announcementof economic liberalization. However awareness of legislations is very important like theFactory Act, 1948, Trade Union act 1962, Payment of wages Act 1936, The MinimumWages Act 1923, The Payment of Bonus Act 1965, The Employment Exchange ActStanding Order Act 1946, Maternity Benefit Act 1961, and The Apprentice Act 1961. Allthese acts if not complied with can get the organization into deep trouble.

6. Customers: Organizations produce products or render services for the ultimateconsumption use by the customer. In other words organizations depend upon customersfor their survival and growth. Customers revolt against employees, if the servicesrendered are less qualitative. The banks face such type of challenges. Customers maydevelop a negative attitude towards the organization, if it does not follow the sociapolicies of the country. Hence the customers pose a challenge special ally in serviceindustry.

7. Social factors: Social environment consists of class structure, mobility social roles socialvalues nature and development of social institutions caste structure and occupationastructure, traditions, religion culture etc. To cater to everyones requirement and keepthem happy is a big challenge faced by HR today.

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

Ans. 2a. Human resource planning means deciding the number and type of the human resourcesrequired for each 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 currentmanpower position to its desired manpower position. It is influenced by the strategicmanagement of the co.

STRATEGY HUMAN RESOURCE PLANNING

Expansion Additional human resources of existing categories.Diversification Additional human resources of different categoriesAcquisitions and Mergers Reduction of human resources of managerial

positionsRetrenchment Reduction of human resources of almost all the

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

categories.Purpose of Human Resource Planning.

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

- To foresee the employee turnover and make the arrangements for minimizingturnover 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 resourcesinventory.

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

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

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

with reference to future net requirements.

Q2. b. What is Job Evaluation?

Ans. 2b. Job Evaluation is the process of determining by observation and study and reportingpertinent information relating to the nature of a specific job. It is the determination of the taskswhich comprise the job and of the skills, knowledge, abilities and responsibilities of the worker ofa successful performance and which differentiates one job from all others. It is concerned witharrangement of jobs in order of relative value within a given organization. Once jobs have beenevaluated 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 changewhether in the context of their pattern of life or in the context of their situation in the

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organization. The best eg. Is resistance of employees to computerization. Change of and typerequires readjustment. Man always fears the unknown and a change represents the unknown.

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

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

2. Planning for Change: The change should be planned by the ManagementEmployees should get an opportunity for planning and installing the change. Thiswill help the group affected to accept and understand the need for change.

3. Protecting Employees Interest: Management should ensure that employeesare protected 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 inhibitadaptation to change. The management has to positively articulate such groups.

5. Cautious and Slow Introduction: The HR manager should cautiously andslowly introduce change. He should not suddenly and abruptly introduce changeHe must aim bring about awareness of change and construct an attitude ofwelcoming change. Change must be introduced in sequential parts, the resultsmust be reviewed and required adjustments have to be if required.

6. Positive Motion:The HR Manager should use the policy of positive motivationto counteract negative resistance. Proper training and technical knowledgeshould be imparted to the employees. The leadership style would be supportive

and human oriented.

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

8. Training and Development: Based on the change the job should beredesigned. Management should train the employees before hand and preparethe employees to invite change. Normally trained and developed employees wilnot resist change. They would feel empowered with their enriched skills andknowledge.

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

10. Organisation Development: HR Manager should also look into thepsychological and behavioural areas of the employee with a view to achieveorganizational effectiveness. Employees with enriched behaviour welcomechange.

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

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Ans 3. b. On-the-job training, also known as job instruction training is the most commonly usedmethod. Under this method the individual is placed on a regular job and taught the skillsnecessary to perform the job. The trainee leans under the supervision and guidance of aqualified worker or instructor. On the job training has the advantage of giving first hand inknowledge and experience under the actual working conditions. While trainee learns how toperform a job, he is also a regular worker rendering the services for which he is paid. On the jobtraining includes job rotation, coaching, job instruction or training through step by step andcommittee assignments.

a.Job Rotation: This type of training involves the movement of the trainee from one job toanother. The trainee received job knowledge and gains experience from his supervisor ortrainer in each of the different job assignments. Though this method of training is common intraining managers for general management positions, trainees can also be rotated from job tojob in workshop jobs. This method gives an opportunity to express his own ideas.

b. Coaching: the trainee is placed under a particular supervisor who functions as a coach intraining the individual. The supervisor provides feedback to the trainee on his performance andoffers him some suggestions for improvement. Often the trainee shares some of the duties andresponsibilities of the coach and relieves him of his burden. A limitation of this method istraining is that the trainee may not have the freedom or opportunity to express his own ideas.

c. Job Instruction: This method is also known as training through step by step. Under thismethod the trainer explains to the trainee the way of doing jobs, job knowledge and skills andallows him to do the job. The trainer appraises the performance of the trainee, providesfeedback information and corrects the trainee.

d. Committee Assignments: Under the committee assignment, a group of trainees are givenand asked to solve an actual organizational problem. The trainees solve the problem jointly. Itdevelops 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 isobviously low or when something has gone amiss. By the time the management recognizes thefact that worker is demotivated, it is faced with one crisis or another. Perceptive managers aretherefore constantly on the look out for clues to any deterioration in the morale of the employees.

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

1. High rate of absenteeism2. Tardinees3. High labour turnover

4. Strikes and sabotage5. Lack of pride in work and6. Wastage and spoilage7. No job satisfaction8. Many grievances9. Does not follow rules and regulations of the company.10.No Team building spirit hence contribution towards achieving organization

goals is very low.11.Increases Accidents

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To curb demotivation the cause should be detected. It may be that the policies or practices ofthe company are defective, or that if executives are at fault, or that the views of those workerswho are demodulated do not match with those of the company or its executives. May themanagers are committing a mistake and accepting it. The demotivated worker should becounseled. He should be explained the responsibilities and rewards clearly.

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

Ans. 4.b. Succession planning is to identify, develop and make the people ready to occupy higherlevel jobs as and when they fell vacant. Succession may be from internal employees orexternal people. Organizations appraise employee potentialities, identify training gapsfor future vacancies, develop them for higher and varied jobs.

The scope of succession plan would be more when the organization grows steadily and employeeshave

Potentialities to take up higher responsibilities. Successions planning practices followed by variousCompanies:

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

technologies

Weigh key leadership characteristics accordingly to

company culture and values2. Eli Lilly Align succession plans with the corporate culture to createa foundation for success.

3. Clorox Use Performance Metric Tools that are aligned withcorporate culture to organize top potentials

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

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

emerging trends in corporate culture.

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

Ans 5.a. Performance appraisal is a method of evaluating the behaviour of employees in the workplace normally including both the quantitative and qualitative aspects of job performancePerformance refers to the degree of accomplishment of the tasks that make up an individuals jobIt indicates how ell an individual is fulfilling the job demands.

Every organization has to decide upon the content to be appraised before the programme isapproved on the basis of job analysis. The content to be appraised may vary with the purpose ofappraisal and type and level of employees.

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

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

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

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

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

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

system

Q.5.b. Write short notes on Assessment Centre.

Ans. 5.b. This method of appraising was first applied in the German Army in 1930. Laterbusiness and industrial houses started using this method. This is not a technique of performanceappraisal by itself. In fact it is a system or organisation, where assessment of several individualsis done by various experts by using various techniques. It includes techniques like in basket, roleplaying, case studies, stimulation exercises, structured in sight, transactional analysis etc.

Q.6.a. Role of a constructive trade union in meeting workers expectation andemployers requirement of higher productivity.

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

and benefits to the workers.

- To improve their bargaining power and balance it that of the management. Tonegotiate and monitor management decisions, regarding policy, promotionstransfers, 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 industrialenterprises.

- 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:

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- To place industry under national ownership and control in a suitable form.- To organize workers in such a manner as to ensure full employment and the best

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

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

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

among the workers.- To develop in the workers a sense of responsibility towards the management

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

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

same for the betterment and interest of both.

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

Ans 6.b. Unfair Labour Practices: Normally prevail in an unorganized labour market andespecially in the third world countries. It includes small industries, tiny industrial units, cottageindustries, shops and establishments, hotels, restaurants, mobile business, trading units taxoperators agriculture etc. Demand for and supply of labour is normally casual and contract innature. They do not follow any systematic or scientific method of recruitment and selection.Candidates are, mostly employed if they accept low wages. Organizations normally do notdesign the jobs. Normally they do not provide employee benefits, welfare measures, fringebenefits 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. Weakestbargaining power of the employee. Casual nature of employment. The employers exploit theemployees. Bonded Labour. Child Labour is a part of unfair labour practices.

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

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

Sr. Organisational structure in1950s

Organisational structure in1950s

Broad Banding*(hierarchy containingsmaller number of level orgrades

1. Multi layers Flat/delayered Few levels2. Manufacturing/labourIntensive

Feed forward and very lesscontrol

Empowerment/ownership

3. Autocratic Team Focused Pay the person based onMerit

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

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7.b. Distinguish between Induction and Orientation Systems.

Sr. Induction Orientation1. Introducing the new employee who is

designated as a probationer to the job, job location, surroundings,organization and various employees.

Orientation is getting familiar with the policiesand practices followed in the Company.

2. Induction is the process of receivingand welcoming an employee when hefirst joins a company about theenvironment of the job and theorganization in order to make the newemployee acquainted

The new employee has to report to the HRDepartment at stipulated date and time. Fromthereon he shall be guided by the HRChief/Executive. He will be given brochuresdescribing the organizations history, productsand philosophy. Review of the overall structure,authority structure and policies and practices ofthe 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, taxand other relevant forms.

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

employee anxiety.

Tour of the main building and auxiliary facilities.

5. Providing written and documentedinformation through CD/floppies.

Introduction to the workplace and the dept headand co-workers.

6. If the first impression is good then ithelps the new employee to adjust tothe work quickly and the supervisorstime is saved to a great extent.

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

New employee on his own to get familiarized withthe job.

Q 8.Write short notes on any three.a) Job Description b) Training Needs Analysis c) Employee Manual d) OrganizationDownsizing e) Team Effectiveness

Ans 8a. Job Description: Job description is an important document which is basically descriptivein nature and contains a statement of job analysis. It serves to identify a job for continuation byother job analysts. It tells us what should be done, why it should be done and where it should beperformed.

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

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

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

And 8b. Training Needs Analysis: Training needs are identified on the basis of organizationaanalysis, job analysis and manpower analysis. Training programme, training methods and coursecontent are to be planned on the basis of training needs. Training needs are those aspectsnecessary to perform the job in an organization in which is lacking attitude/aptitude, knowledgeand skill.

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Training needs = Job and organizational requirement-Employees Specifications

Methods used in Training Need Analysis.

Sr. Group or Organizational Analysis Individual Analysis1. To identify Organizational goals and objectives Performance appraisal2. Personnel/skill inventories Work sampling

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

Ans. 8. c. Employee Manual:The Employee Manual is a document that an employee can referto for any kind of query about the rules and guidelines of an organization. The Employee Manuacontains the following :

History, growth, organisation and management, products, market, customers etc. of thecompany.

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

Pay, allowances, deductions.

Sickness rules, information - pay - sick leave.

Leave rules - casual, special, earned - holidays, vacation. Work rules - work-load, use of materials, equipment, and machine.

Disciplinary rules and procedure.

Grievance procedure.

Career path, promotion channel. Unions, negotiating machinery.

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

Canteen and restaurant facilities.

Social benefits and welfare measures.

Telephone calls and correspondence. Traveling and subsistence expenses.

Uniforms, clothing.

Various employees - their designations - position in the organisation.

Ans 8 d. Organisational Downsizing: When there is a surplus of labour the organization isfaced with a problem of downsizing the organization. Because maintaining surplus of labour wil

eat into the profits of the Co. It is not easy to pay employees without extracted work from them.In such cases the organization is faced with a problem of using the existing surplus for somehigher category of work by giving them training or employing them with their sister concern orsimply giving the employees a golden handshake through Voluntary Retirement Scheme (VRS).Another way of downsizing is delayering the organization and rectifies the situation ooverstaffing.Ans 8 e. Team Effectiveness: Team effectiveness is the result of team work which consists of agroup of jobs that are linked and interconnected with each other for the purpose of performing atotal operation. The total operation is assigned to a group of employees. Though each employeeis allotted a job in the team, he is expected to take up the job of other employees when they fail

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to do it perfectly. Thus jobs in a team overlap with each other. Teamwork gains more significancerather than individual jobs. In fact individual jobs are losing their relevance in the re-engineeredbusinesses, organizations based on supply chain management. Team effectiveness is essentiato serve the customer completely. These days organizations started designing teams andanalyzing team work. Most recent organization has realized that teamwork produces betteresults than the performance of individual work. Infact practices of Enterprise Resource Planning(ERP), Business Process Re-engineering (BPRE) and Supply Chain Management requireteamwork. The impact of synergy results in high productivity of teamwork than that of the totaof individual employees. Team effectiveness pertains to minimum acceptable human qualitiesand relationships necessary to perform all kinds of activities in a team.


Attempt any five questions Total 100marksAll 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 HumanResource Management functions more successful?

Ans 1. Indian Companies basically face two factors viz Internal and External that pose a problemin the smooth functioning of HRM function.

External Factors.

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

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

3 Business Environment: External business environmental factors influence the volumeand mix of production thereby the future demand for human resources.

4 Information Technology:Technology has made an amazing shift in the way to conductbusiness. These shifts include business process re-engineering, supply chain managementetc. It also reduces obsolete machinery and traditional human resources. However in latterstages it eliminates many categories of labour and reduces existing human resources.

5 Level of Technology: Level of technology determines the kind of human resourcesrequired.

6 International factors: International factors like the demand for and supply of humanresources in various countries.

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Internal factors:

7. Company Strategies: Company policies and strategies relating to expansiondiversification, alliances etc. determine the human resources demand in terms ofquality and quantity.

8. Human Resource Policies: Human resource policies of the company regarding

quality of human resources, compensation level, quality of work life etc.

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

10. Time Horizons: Companies in an unstable competitive environment can plan for onlyshort tern range. They have to face new competitors. Rapid change in socio andeconomic conditions. Small organization size, poor management practices. Unstableproduct/service demand patterns.

11. Companys Production/Operations Policy: Companys policy regarding how muchto produce and how much to buy from outside to prepare a final product influences the

number and kind of people required.

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

Q.2. What are the different sources of recruitment? Explain the merits anddemerits of each.

Ans. 2. The sources of recruitment are broadly divided into internal sources and externasources consisting of the following:

Internal sources of Recruitment:

1. Present Permanent Employees : Organizations consider the candidates from thissource for higher level of jobs due to availability of most suitable candidates for jobs relativelyor equally to external sources, to meet the trade union demands and due to the policy of theorganization to motivate the present employees.

2. Present temporary/casual Employees: Organizations find this source to fill thevacancies relatively at the lower level owing to the availability of suitable candidates or tradeunion pressures or in order to motivate them on present job.

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

4. Dependents of Deceased, Disabled, retired and present employees: Someorganizations function with a view to developing the commitment and loyalty of not only theemployee but also his family members.

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5. Employee Referrals: Present employees are well aware of the qualifications, attitudes,experience and emotions of their friends and relatives. They are also aware of the jobrequirements and organizational culture of their company. As such they can make preliminaryjudgment 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; fromtheir college/educational institution. They are inexperienced as far as workexperience is concerned.

2) Private Employment Agencies/Consultants: Public employment agencies orconsultants like ABC Consultants in India perform recruitment functions on behalf ofa client company by charging fees. Line managers are relieved from recruitmentfunctions and can concentrate on operational activities.

3) Public Employment Exchanges: The Government set up Public EmploymentExchanges in the country to provide information about vacancies to the candidatesand to help the organization in finding out suitable candidates. As per theEmployment Exchange act 1959, makes it obligatory for public sector and private

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

4) Professional Organizations: Professional organizations or associations maintaincomplete bio-data of their members and provide the same to various organizationson requisition. They act as an exchange between their members and recruiting firm.

5) Data Banks: The management can collect the bio-data of the candidates fromdifferent sources like Employment Exchange, Educational Training Institutescandidates etc and feed them in the computer. It will become another source andthe co can get the particulars as and when required.

6) Casual Applicants: Depending on the image of the organization its promptresponse participation of the organization in the local activities, level ofunemployment, candidates apply casually for jobs through mail or handover theapplication in the Personnel dept. This would be a suitable source for temporary andlower level jobs.

7) Similar Organizations: Generally experienced candidates are available inorganizations producing similar products or are engaged in similar business. TheManagement can get potential candidates from this source.

8) Trade Unions: Generally unemployed or underemployed persons or employeesseeking change in employment put a word to the trade union leaders with a view to

getting suitable employment due to latter rapport with the management.

9) Walk In: The busy organization and rapid changing companies do not find time toperform various functions of recruitment. Therefore they advise the potentiacandidates to attend for an interview directly and without a prior application on aspecified date, time and at a specified place.

10)Consult In: the busy and dynamic companies encourage the potential job seekersto approach them personally and consult them regarding the jobs. The companies

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select the suitable candidates and advise the company regarding the filling up ofthe positions. Head hunters are also called search consultants.

11)Body Shopping: Professional organizations and the hi-tech training develop thepool of human resource for the possible employment. The prospective employerscontact these organizations to recruit the candidates. Otherwise the organizationsthemselves approach the prospective employers to place their human resources.These professional and training institutions are called body shoppers and theseactivities are known as body shopping. The body shopping is used mostly focomputer professionals. Body shopping is also known as employee leasing activity.

12)Mergers and Acquisitions: Business alliances like acquisitions, mergers and takeover help in getting human resources. In addition the companies do also alliances insharing their human resource on adhoc basis.

13)E_recruitment: The technological revolution in telecommunications helped theorganizations to use internet as a source of recruitment. Organizations advertise the job vacancies through the world wide wed (www). The job seekers send theiapplications through e-mail using the internet.

14)Outsourcing: Some organizations recently started developing human resourcepool by employing the candidates for them. These organizations do not utilize thehuman resources; instead they supply HRs to various companies based on theirneeds 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 oRecruitment

1. Motivates present employees when they areupgraded internally.

Trade union pressure may not always givthe right candidate for the job. Thmanagement may have to consider som

concessions.2. Retrenched workers get an opportunity to

work again.Managements gets a chance to postponpromotion due to interpersonal conflicts.

3. Dependents of the deceased get a job easily Excessive dependence on this source resuin in-breeding, discourages flow of new bloointo the organization.

4. Morale of employees is improved The organization becomes dull withoinnovations, new ideas, excellence anexpertise.

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

6. Cost of recruitment, training, induction,

orientation, etc is reduced7. Trade unions can be satisfied.

Merits and Demerits of External of Recruitment

Sr. Merits of External Sources of Recruitment

Demerits of External Sources Recruitment

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

Campus recruited employees lack woexperience.

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

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

Specified vacancies have to be filled bcandidates referred by employmeexchanges which do not allow othcandidates to be eligible.

4. Existing sources will also broaden theirpersonality.

5. Human Resource mix can be balanced6. Qualitative human resource benefits theorganization in the long run.

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

more candidates.9. HR professionals can concentrate on strategic

issues.

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

Ans 3. Motivation is derived from the word Motive. A motive is an inner state that energizes,activates or moves and directs or channels behavious towards goals. It represents an unsatisfiedneed which creates a state of tension or disequilibrium causing the individual to move in a goaldirected pattern towards restoring a state of equilibrium by satisfying the need. Motivation is aprocess that starts with a physiological deficiency or need that activates behavious or a drive thatis aimed at a goal or incentive. Thus the process of motivation lies in the meaning of andrelationship 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. Toexploit the unused potential in people they are to be motivated. Needless to say that suchexploitation results in greater efficiency, higher production and better standard of living of thepeople. There are basically two types of motivation vis 1) Positive Motivation and NegativeMotivation.

1. Positive Motivation: People are said to be motivated positively when they are shown a rewardsand the way to achieve it. Such a reward may be financial or non financial. Monetary motivationmay include different incentives, wage plans, productive bonus schemes etc. Non monetaryinclude praise for work, participation in management, social recognition. Monetary incentivesprovide the worker a better standard of life while non monetary incentives satisfy the ego of a

man.2. Negative Motivation: It is induced by installing fear in the minds of people; one can get the

desired work done. In this method of motivation fear of consequences of doing something or notdoing something keeps the worker in desired direction. This method has got several limitations.Fear Creates frustration, a hostile state of mind and an unfavorable attitude towards the jobwhich hinder efficiency and productivity. So the use of it should be kept minimum.

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

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and Lawlers Expectancy Theory and Equity Theory of Work Motivation. We shall discuss 1.Maslows Theory of Hierarchy of Needs and 2. Herzberg Two Factor Theory.

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

__________________________________________________Need for Self-Actualization

__________________________________________________Physiological Needs

__________________________________________________Esteem Needs

__________________________________________________Social Needs -Affiliation or Acceptance 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, warmthshelter, sleep and sexual satisfaction. Maslow says that until these needs are satisfied tothe required level, man does not aim for the satisfaction of next level of needs. As far aswork environment is concerned, 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 thefeeling of loss of food, job or shelter. When the physiological needs are satisfied, manstarts thinking of the way by which he can satisfy his safety needs. Security needs springup the moment he makes an effort in the direction of providing himself the source ofcontinuity of physiological needs. In a work environment these needs include conformitysecurity plans, membership in unions, severance pay etc.

3. Social Needs: (Affiliation or Acceptance Needs) When the physiological and securityneeds are satisfied, these social needs begin occupying the mind of a man. This isexactly why he looks for the association of other human beings and strives hard to beaccepted by this group. Social needs at the work place include: Human relations, formaland informal work groups.

4. Esteem Needs: These needs are power, status and self confidence. Every man has afeeling of importance and he wants others to regard him highly. These needs makes

people aim high and make them achieve something great. These needs for employeesinclude status symbols, awards, promotions, titles etc.5. Self Actualization Needs: This is the highest need in the hierarchy. This refers to the

desire to become what one is capable of becoming. Man tries to maximize his potentialand accomplish something, when this need is activated in him.

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

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DISSATISFIERS: The first group (factor) consists of needs such as company policy andadministration, supervision, working conditions, interpersonal relations, salary, status, jobsecurity and personal life. These factors he called DISSATISFIERS and not motivators. Theirpresence or existence does not motivate in the sense of yielding satisfaction, but their absencewould result in dissatisfaction. They are also known as hygiene factors.

SATISFIERS: The second group are the satisfiers in the sense that they are motivators whichare related to job content. It includes factors of achievement, recognition, challenging workadvancement and growth in job. Their presence yields feeling of satisfaction or no satisfactionbut not dissatisfaction.

Another WAY to present the above question

Herzbergs Two Factor Theory: Classification of Maintenance and Motivational Factors

Sr.

Maintenance Factors orDissatisfiers or Hygiene Factors

Motivational Factors or Satisfiers

1. Job Content Job Content2. Extrinsic Factors Intrinsic Factors3. Company Policy and Administration Achievement

4. Quality of supervision Recognition5. Relations with superiors Advancement6. Peer Relations Work Itself 7. Relations with subordinates Possibility of Growth8. Pay Responsibility9. Job security10.

Work Conditions

11.

Status

Q4. What are the merits of formal organization structure?Ans. 4. A formal organizational structure composes of job descriptions, organization chartsprocedures and other written documents which describe and define how individuals should workwith each other. A formal organizational structure is the organization as it exist son paper. It isthe official sanctioned way of doing things. It tells you who reports to whom and how variousproblems should be handled. The merits of a formal organizational structure are as follows:

1. Overall Effectiveness: Overall effectiveness is high because the delegationof work and attainment of the organisational goals and objectives is weldefined.

2. Goal Attainment: The organization accomplishes what it sets out toaccomplish.

3. Profit Making: A favourable bottom line which is the main aim of anorganization is achieved.

4. Staying within Budget: Due to limited resources and guidelines for budgetsand spending the co is a lesser risk of running into losses.

5. Achieving New Goals: A successful organization emphasizes the attainmentof new and important goals.

6. Adaptability to change: A well structured organization has good problemsolving 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 sizeover time is considered to be stable.

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8. Quality: High quality of goods and services can be expected of welstructured organizations.

9. Growth: There is an increase in factors like work force, plant capacityassets, sales, profits, market share and no of innovations.

10.Managerial Skills: A well structured organization gives a lot of emphasis onthe quality and qualifications of the employees. Professionals/specialist isemployed to guide, perform and achieve the organizational goals andobjectives. Without competent managers the Co., will not able to survive.

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

12.Proper management of conflict: An organization may require some conflictto be effective, but too much conflict detracts from effectiveness. In anorganized structure people conform to the same code of conduct andconflict is usually held in check.

13.Participation in decision making: The employees are sometimes given achance to participate in decisions pertaining to them. This also boosts themand keeps them motivated. It gives them a sense of belonging and a senseof loyalty to the Co.

14.Absenteeism: Since the employees are highly motivated problems likeabsenteeism etc are minimum.

15.Job satisfaction: The job satisfaction is very high among employees. Itinduces high morale which in turn leads to high productivity.

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

Q5. What are the objectives of Performance Appraisal System What are sources oferror in the appraisal process.

Ans. 5. Performance appraisal is a method of evaluating the behaviour of employees in the workplace normally including both the quantitative and qualitative aspects of job performancePerformance refers to the degree of accomplishment of the tasks that make up an individuals jobIt indicates how ell an individual is fulfilling the job demands.

Every organization has to decide upon the content to be appraised before the programme isapproved on the basis of job analysis. The content to be appraised may vary with the purpose ofappraisal and type and level of employees Performance Appraisal is a method of evaluating thebehaviour 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 performanceappraisal.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

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In an attempt to counter continuing employee low performance and business troubles, Hyundaiengineering and Construction announced its decision to lay off employees and cut 1000 jobs.

Sources of Error in Performance Appraisal:

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

a. Halo Effect: it is the tendency of the raters to depend excessively on the rating ofone trait or behaviourial consideration in rating all other traits or behaviouraconsiderations. One way of minimizing the halo effect is appraising all employees byone trait before going to rate them on the basis of another trait.

b. The Error of Central Tendency: Some raters follow play safe policy in rating byrating all the employees around the middle point of the rating scale and they avoidrating the people at both the extremes scale. They follow play safe policy becauseof answerability to the management or lack of knowledge about the job and person

he is rating or has least interest in the job.

c. The Leniency and Strictness: the leniency bias crops when some raters have atendency to be liberal in their rating by assigning higher rates consistently. Suchratings do not serve any purpose. Equally damaging is assigning consistently lowrates.

d. Personal Prejudice: If the rater dislikes any employee or any group, he may ratethem at the lower end, which may distort the rating purpose and affect the careerof these employees.

e. The Recency Effect: The raters generally remember the recent actions of the

employee at the time of rating them on the basis of these recent actionsfavourable or unfavourable-rather than on the whole activities.

Q6. How would you evaluate a training programme? Does its evaluation have anybearing on its design?

Ans. 6. The specification of values forms a basis of evaluation. The process of training evaluationhas been defined as any attempt to obtain information on the effects of training performanceand to access the value of training in the light of that information. The various methods oftraining 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.

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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 inmeeting specific objectives. The nomination of employees should be based on the need oftraining. The trainers should be qualified and experienced. The training calendar should bediscussed with the manager. Training needs should be identified through job descriptionperformance appraisal and potential appraisal discussions.

1. Reaction: The design of the training depends on the trainees reaction to the usefulnessof coverage of the matter, depth of the course content, method of presentation, teachingmethods etc.

2. Learning : Training programme, trainers ability and trainee ability are evaluated on thebasis of quantity of content learned and time in which it is learned and the learners abilityto use or apply the 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 whichthe trainee has applied his learning to his job.

4. Organisation : The training design helps in measuring the use of training, learning andchange in the job behaviour of the department/organiza

Human+Resource+Management+2001 2005

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