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Master of Business Administration- MBA Semester 1 MB0043 Human Resource Management - 4 Credits (Book ID:B1132) Assignment Set- 1

Q1. Q2. Q3. Q4. Q5. Q6.

What are the objectives of job evaluation? What are the major problems faced in benefits management? State the major career development activities found in organizations. Explain the need for human resource planning. What are the factors that impact recruitment in organizations? Assume yourself as an HR Manager. You have been given the responsibility of promoting the rightful employees. For this, performance appraisal of the employees must be carried out. What appraisal method would you choose? Justify.

Q.1. What are the objectives of job evaluation? Objectives of Job Evaluation: The decision to measure or rate jobs should only be made with the intent to reach certain objectives which are important to both management and the employee. Although there are many side benefits of job evaluation, the purpose is to work towards a solution of the many wage and compensation related administrative problems which confront the industry. The below-mentioned are some of the important objectives of a job evaluation programme:

Establishment of sound salary differentials between jobs differentiated on the skills required. Identification and elimination of salary-related inequities. Establishment of sound foundation for variable pay such as incentive and bonus. Maintenance of a consistent career and employee growth policy/ guidelines. In organizations with active unions, creation of a method of job classification, so that management and union officials may deal with major and fundamental wage issues during negotiations and grievance meetings. Collection of job facts 1. Selection of employees 2. Promotion and transfer of employees 3. Training of new employees 4. Assignment of tasks to jobs 5. Improving working conditions 6. Administrative organization, and 7. Work simplification.

There are many established methods to carry out job evaluation in a scientific manner. A four-fold system of classifying evaluation systems is presented here. Two are described as non-quantitative and two as quantitative. 1. Non-quantitative evaluation measures. a) The ranking system. b) The job-classification system. 2. Quantitative evaluation measures. a) The point system. b) The factor-comparison system.

Q.2. What are the major problems faced in benefits management? Major Problems in Benefits management The challenge in managing benefits is that while it costs a lot it is often taken for granted by the employees. The dilemma of finding the right balance of benefits and cash compensation is an on-going one. Like for Compensation, Benefits too are benchmarked by organizations and implemented keeping the market practices and trends in view. The key to leveraging the investment made by organizations on benefits can be got by adequate communication making employees aware of them. It includes, providing clarity on how to apply for and claim benefits, as well as hold road-shows show-casing the benefits and what the employee can avail of. It focuses on to remind the employees that they are part of the total compensation package. Most large and medium sized organizations manage compensation and benefits through state-of-the-art HRMS (Human Resource Management Systems) and the corporate intranet portals. Employee can enroll on-line for the benefits, ask queries, look up the policies and review the outstanding and balance status of the various benefits. They can view deadlines, apply for the various benefit claims and track reimbursement status on-line. This brings a lot of empowerment to the employee as well as awareness of the total benefits that he/she and their dependents are eligible for. Some of the basic problems faced by management are 1: How to produce a qualitative product: This is the first problem faced by management that what is to produce, how much to produce and where to be produce. And the organization has to decide either they have to produce different products or to emphasis on one product. 2: How to deal the labour union:

The labour is the group of people working for the betterment of the employees working in the organization. The management has to decide that how to full fill the demands of the labour union in respect of salaries, bonuses, insurance, medical allowances, fringe benefits etc. 3: How to compete in the market: Various decisions for example how to charge the price, how to place the product, how to promote the product has to be taken by the management and they try to solve these problems in a best manner. 4: How to utilize the organization resources: The management made various decisions about the organization resources that is man, money, material, machinery, market and methodology. 5: To avoid stick out situation: Stock out situation is that situation when the customer demands for the product and the company has no product at that time. The management has to decide how to tackle this problem. Q.3. State the organizations. major career development activities found in

Career Development Activities (Career Planning) in Organizations: A broad view of career is defined as an individually perceived sequence of attitudes and behaviour work-related activities and experiences over the span of a persons life. In normal parlance the term career has both an internal and an external focus. An internal focus and refers to the way an individual views his/her career and the external or objective focus and refers to the actual series of job positions held by the individual. The dynamics of career development in an organizational context has two dimensions:

How individuals plan and implement their own career goals (career planning), and How organizations design and implement their career development programs (career management).

Career planning is a deliberate attempt by an individual to become more aware of their skills, interests, values, opportunities and constraints. It requires an individual thinking to identify career-related goals and establishing plans towards achieving those goals. Often it is a self-driven process, which every professional (irrespective of the nature of employment) spends some time to dwell on and discuss it with peers or superiors and frame it. It is also viewed from time to time that the individual looks for possible new career options. Having a career plan builds a commitment towards achieving it and is viewed as an excellent personal goal-setting exercise for self motivation.

Career management is considered to be an organizational process that involves preparing, implementing and monitoring career plans undertaken by an individual alone or within the organizations career systems. Organizations establish policies that provide for multiple career path options that an employee can choose from and pursue. This is supported with a lot of training and development activities that are agreed to with the manager and planned carefully and executed. A variety of career development activities and tools exists for use in organizations. HR managers should be familiar with these components because the managers often serve as internal consultants responsible for designing the career development systems. Some of the activities described are individual career planning tools and others are commonly used for organizational career management. In general the most effective career development programs will use both types of activities. A variety of career development activates are available for use. Some of the more popular ones include: 1. Self assessment tools: these are usually technology enabled on-line (on the corporate intranet) tools that form part of the performance appraisal system and allow the individual to identify areas of strengths and parallelly identify career paths that would leverage these strengths the best. E.g. Career Planning Workbooks, Career Workshops hosted by the organizations from time to time. 2. Individual Counseling: formally the process allows for individuals to discuss this as part of the performance management process with their immediate managers and share and take feedback on the appropriateness of the choices and how to go about pursuing it. Often managers recommend relevant other managers and leaders who the employee can link with to seek advice and support. Organizations also provide for formal mentoring programs to which an employee can enroll and sign up a mentor who can then provide the support and counseling on the best career option and how to go about it achieving it. 3. Information Services: organizations have established policies on what skills and experiences that each job in the organization requires. Jobs with similar skills and experiences are clubbed together to create parallel career paths. For example in a software development firm the career path options for the software engineering team can be designed as follows:

Figure: Career Paths in a software company These are typically called career ladders or career paths and they help an employee identify what his options are for future growth and identify the appropriate one based on his personal skills and capabilities/ limitations. These career paths would be supplemented with additional information on skills and experience that one must have for each role/job in the career path. It would also specify the particular qualification or special certifications that the positions demands. An employee aspiring to pursue a career option would need to dedicate time and effort and the expenses towards acquiring the same. Large MNCs (multinational companies) also encourage the reimbursement of these expenses as an annual fixed amount on successfully clearing the exam/certification. The employee however needs to find the time and expend the effort away from work. The actual move of the employee to the new role would however depend on the existence of a job vacancy in that role. The employee can also approach career resource / talent management centers supported by the HR teams for more information on how to plan careers and apply for new roles sand jobs. Organizations usually have formal job posting systems through which the employee receives this information and applies for the job after discussing with his manager. 4. Initial employment Programs Organizations also run internship and apprenticeship programs wherein the individuals aspiring to do a particular job can spend some time as a temporary employee to explore interest and skill fitment for the job/role. (e. g. Anticipatory socialization programs, realistic recruitment, and employee orientation program)

5. Organizational Assessment programs: organizations can proactively establish formal processes wherein an employee can volunteer to participate and understand himself/herself and his/her strengths. Through the use of Assessment Centers organizations can help an employee identify areas for improvement and means of building those skills. So he can achieve his career plans. Certain organizations offer Psychological Testing instruments which profile the employees strengths and roles and responsibilities he / she will best fit into. 6. Developmental programs focus the effort of the employee towards helping the employee to achieve his career goals. The Assessment Centers, Job rotation programs, in-house training, tuition refund plans, and mentoring, all prove effective tools to help the individual along. No matter what tools are used for career development, it is important that employees develop and individualized career plan. For example Raychem requires every person to have a learning or development plan.

Q.4. Explain the need for human resource planning. Need for Human Resource Planning: Human Resource Planning is a mandatory part of every organizations annual planning process. Every organization that plans for its business goals for the year also plans for how it will go about achieving them, and therein the planning for the human resource:

To carry on its work, each organization needs competent staff with the necessary qualifications, skills, knowledge, work experience and aptitude for work. Since employees exit and organization both naturally (as a result of superannuation) and unnaturally (as a result of resignation), there is an ongoing need for hiring replacement staff to augment employee exit. Otherwise, work would be impacted. In order to meet the need for more employees due to organizational growth and expansion, this in turn calls for larger quantities of the same goods and services as well as new goods. This growth could be rapid or gradual depending on the nature of the business, its competitors, its position in the market and the general economy. Often organizations might need to replace the nature of the present workforce as a result of its changing needs, therefore the need to hire new set of employees. To meet the challenge of the changed needs of technology / product/service innovation the existing employees need to be trained or new skill sets induced into the organization. Manpower planning is also needed in order to identify an organizations need to reduce its workforce. In situations where the organization is faced with severe revenue and growth limitations it might need to plan well to manage how it will reduce its workforce. Options such as redeployment and outplacement can be planned for and executed properly.

Any organisation consists of departments like administration, accounting,, sales and marketing and if a manufacturing unit, also production lines, purchases and

materials management etc. Unless all these work at optimum level and capacity, the organisation cannot make profit. For this purpose, it is necessary to have the right people at the right place and at the right time. This is the responsibility of the Human Resources Development dept in any organisation. Without proper planning of manpower, the cost of manpower, the manpower mix etc, may affect the organisational set up

NEED FOR HUMAN RESOURCE PLANNING Every organization has to plan for Human resource due to: 1. The shortage of certain categories of employees and/or variety of skills despite the problem of unemployment. 2. The rapid changes in technology , marketing, management etc., and the consequent need for new skills and new categories of employees. 3. The changes in organization design and structure affecting manpower demand. 4. The demographic changes like the changing profile of the workforce in terms of age, sex ,education etc. 5. The Government policies in respect to reservation ,child labor, working conditions etc. 6. The labor laws affecting the demand for and supply of labor. 7. Pressure from trade unions, politicians ,sons of the soil etc. 8. Introduction of lead time in manning the job with most suitable candidate. Benefits of Human Resource Planning Human Resources Planning (HRP) anticipates not only the required kind and number of employees but also determine the action plan for all the functions of personnel management .The major benefits of Human resource planning are: 1. It checks the corporate plan of the organization 2. It offsets uncertainly and change .But the HRP offsets uncertainties and changes bto the maximum extent possible and enables the organization yo have right men at right time and in right place. 3. It provides scope for advancement and development of employees through training, development etc. 4. It helps to anticipate the cost of salary enhancement, better benefits etc. 5. It helps to anticipate the cost of salary , benefits and all the cost of human resources facilitating the formulation of budgets in an organization. 6. To foresee the need for redundancy and plan to check it or to provide alternative employment in consultation with trade unions, other organizations and government through remodeling organizational, industrial and economic plans. 7. To foresee the changes in values, aptitude and attitude of human resources and to change the techniques of interpersonal, management etc. 8. To plan for physical facilities, working conditions and the volume of fringe benefits like canteen, schools, hospitals, conveyance, child care centres. quarters, company stores etc. 9. It gives an idea of type of tests to be used and interview techniques in selection based on the level of skills ,qualifications, intelligence, values etc., of future human resources.

10. It causes the development of various sources of human resources to meet the organizational needs. 11. It helps to take steps to improve human resource contributions in the form of increased productivity ,sales turnover etc. 12. It facilities the control of all the functions, operations, contribution and cost of human resources.

Q. 5. What are the factors that impact recruitment in organizations? Factors Affecting Recruitment All organizations, whether large or small, do engage in recruiting activity, though not to the same intensity. Few factors that impact the nature of recruitment: 1. The size of the organization- the smaller the organization the more the need to carefully scrutinize the candidate for a job and the fitment to the organizational culture. The risk in case of job-candidate mismatch can prove equally expensive for a smaller organization as compared to the larger one. 2. The employment conditions in the country where the organization is located- critically impacts the recruiting strategy. The methods for recruiting, the selection tools that are most suited and the legal framework that bear on the employer are some aspects that need to be considered. 3. The affects of past recruiting efforts which show the organizations ability to locate and keep good performing people- constantly reviewing the effectiveness of the recruiting methods and the selection tools used, evaluating the success at-work of the new recruits are some methods used by organizations to ensure that quality hiring practices are in-place. 4. working conditions and salary and benefit packages offered by the organization this may influence turnover and necessitate future recruiting; (v) The rate of growth of organization- the phase in the life-cycle of the firm is a measure of the recruiting effort 5. The level of seasonality of operations and future expansion and production programmes ensuring that the recruitment numbers come from a wellplanned Human Resource Plan is critical to ensure that there is no overhiring or under-hiring of the required talent to achieve the organizational objectives. 6. Cultural, economic and legal factors these too affect the recruiting and selection methods that are used.

FACTORS AFFECTING RECRUITMENT There are a number of factors that affect recruitment. These are broadly classified into two categories: 1. Internal factors 2. External factors. INTERNAL FACTORS The internal factors also called as endogenous factors are the factors within theorganization that affect recruiting personnel in the organization.Some of these are:Size of the organization The size of the organization affects the recruitment process. Larger organizationfinds recruitment less problematic than organization with smaller in size. Recruiting policy The recruitment policy of the organization i.e. recruiting from internal sources an dexternal sources also affect the recruitment process. Generally, recruitment throughinternal sources is preferred, because own employees know the organization and theycan well fit in to the organization culture Image of the organization Image of the organization is another factor having its influence on the recruitmentprocess of the organization. Good image of the organization earned by the number of overt and covert action by management helps attract potential and completecandidates. Managerial actions like good public relations, rendering public servicelike building roads, public parks, hospitals and schools help earn image or goodwillfor organization. That is why chip companies attract the larger numbers of application. Image of the job Better remuneration and working conditions are considered the characteristics of good image of a job. Besides, promotion and carrier development policies of organization also attract potential candidates EXTERNAL FACTORS

Like internal factors, there are some factors external to organization, which have their influence on recruitment process. Some of these are given below:Demographic factors As demographics factors are intimately related to human beings, i.e. employees, these have profound influence on recruitment process. Demographic factors include age, sex, Literacy, economics status etc. Labor market Labor market condition I.e. supply and demand of labor is of particular importance in affecting recruitment process. E.g. if the demand for specific skill is high relative to its supply is more than for particular skill, recruitment will be relatively easier. Unemployment situation The rate of unemployment is yet another external factor its influence on the recruitment process. When the employment rate in an area is high, the recruitment process tends to simpler. The reason is not difficult to seek. The number of application is expectedly very high which makes easier to attract the best-qualified applications. The reserve is also true. With low rate of unemployment, recruiting process tend to become difficult. Labor laws There are several labor laws and regulations passed by the central and state governments that govern different type of employment. These cover working condition, compensation, retirement benefits, safety and health of employee in industrial undertakings. Legal consideration Another external factor is legal consideration with regard to employment reservation of jobs for schedule tribes, and other backward class (OBC) is the popular examples of such legal consideration. The supreme court of India has given its verdict in favor of 50 per cent of jobs and seats. This is so in case admission in the educational institutions also.

Q.6. Assume yourself as an HR Manager. You have been given the responsibility of promoting the rightful employees. For this, performance appraisal of the employees must be carried out. What appraisal method would you choose? Justify. A performance appraisal, employee appraisal, performance review, or (career) development discussion is a method by which the job performance of an employee is evaluated (generally in terms of quality, quantity, cost, and time) typically by the corresponding manager or supervisor. A performance appraisal is a part of guiding and managing career development. It is the process of obtaining, analyzing, and recording information about the relative worth of an employee to the organization. Performance appraisal is an analysis of an employees recent successes and failures, personal strengths and weaknesses, and suitability for promotion or further training. It is also the judgment of an employees performance in a job based on considerations other than productivity alone.

Aims Generally, the aims of a performance appraisal are to:

Give employees feedback on performance Identify employee training needs Document criteria used to allocate organizational rewards Form a basis for personnel decisions: salary increases, promotions, disciplinary actions, bonuses, etc. Provide the opportunity for organizational diagnosis and development Facilitate communication between employee and employer Validate selection techniques and human resource policies to meet federal Equal Employment Opportunity requirements. To improve performance through counseling, coaching and development.

Methods A common approach to assessing performance is to use a numerical or scalar rating system whereby managers are asked to score an individual against a number of objectives/attributes. In some companies, employees receive assessments from their manager, peers, subordinates, and customers, while also performing a self assessment. This is known as a 360-degree appraisal and forms good communication patterns. The most popular methods used in the performance appraisal process include the following:

Management by objectives 360-degree appraisal Behavioral observation scale Behaviorally anchored rating scales

Trait-based systems, which rely on factors such as integrity and conscientiousness, are also used by businesses but have been replaced primarily by more objective and results-oriented methods. The scientific literature on the subject provides evidence that assessing employees on factors such as these should be avoided. The reasons for this are twofold: 1. Trait-based systems are by definition based on personality traits and as such may not be related directly to successful job performance. In addition, personality dimensions tend to be static, and while an employee can change a behavior they cannot change their personality. For example, a person who lacks integrity may stop lying to a manager because they have been caught, but they still have low integrity and are likely to lie again when the threat of being caught is gone. 2. Trait-based systems, because they are vague, are more easily influenced by office politics, causing them to be less reliable as a source of information on an employees true performance. The vagueness of these instruments allows managers to assess the employee based upon subjective feelings instead of objective observations about how the employee has performed his or her specific duties. These systems are also more likely to leave a company open to discrimination claims because a manager can make biased decisions without having to back them up with specific behavioral information.

People differ in their abilities and their aptitudes. There is always some difference between the quality and quantity of the same work on the same job being done by two different people. Performance appraisals of Employees are necessary to understand each employees abilities, competencies and relative merit and worth for the organization. Performance appraisal rates the employees in terms of their performance. Performance appraisals are widely used in the society. The history can be dated back to the 20th century and then to the second world war when the merit rating was used for the first time. An employer evaluating their employees is a very old concept. It is an indispensable part of performance measurement. Performance appraisal is necessary to measure the performance of the employees and the organization to check the progress towards the desired goals and aims. The latest mantra being followed by organizations across the world being get paid according to what you contribute the focus of the organizations is turning to performance management and specifically to individual performance. Performance appraisal helps to rate the performance of the employees and evaluate their contribution towards the organizational goals. If the process of performance appraisals is formal and properly structured, it helps the employees to clearly understand their roles and responsibilities and give direction to the individuals performance. It helps to align the individual performances with the organizational goals and also review their performance. Performance appraisal takes into account the past performance of the employees and focuses on the improvement of the future performance of the employees. Here at naukri hub, we attempt to provide an insight into the concept of performance appraisal, the methods and approaches of performance appraisal, sample performance appraisal forms and the appraisal softwares available etc. An attempt has been made to study the current global trends in performance appraisal.

If I am a HR manager, I would choose the 360-degree appraisal method because of the following reasons: 360 Degree Appraisal: Typically, performance appraisal has been limited to a feedback process between employees and Managers. However, with the increased focus on teamwork, employee development, and customer service, the emphasis has shifted to employee feedback from the full circle of sources depicted in the diagram below. This multiple-input approach to performance feedback is sometimes called "360degree assessment" to connote that full circle. There are no prohibitions in law or regulation against using a variety of rating sources, in addition to the employees Manager, for assessing performance. Research has shown assessment approaches with multiple rating sources provide more accurate, reliable, and credible information. For this reason, HR Management supports the use of multiple rating sources as an effective method of assessing performance for formal appraisal and other evaluative and developmental

purposes. The circle, or perhaps more accurately the sphere, of feedback sources consists of Managers, peers, subordinates, customers, and ones self. It is not necessary, or always appropriate, to include all of the feedback sources in a particular appraisal program. The organizational culture and mission must be considered, and the purpose of feedback will differ with each source. For example, subordinate assessments of a Managers performance can provide valuable developmental guidance, peer feedback can be the heart of excellence in teamwork, and customer service feedback focuses on the quality of the teams or agencys results. The objectives of performance appraisal and the particular aspects of performance that are to be assessed must be established before determining which sources are appropriate. Superiors: Evaluations by superiors are the most traditional source of employee feedback. This form of evaluation includes both the ratings of individuals by Managers on elements in an employees performance plan and the evaluation of programs and teams by senior managers. Self Assessment: This form of performance information is actually quite common but usually used only as an informal part of the Manager-employee appraisal feedback session. Managers frequently open the discussion with: "How do you feel you have performed?" In a somewhat more formal approach, Managers ask employees to identify the key accomplishments they feel best represent their performance in critical and non-critical performance elements. In a 360-degree approach, if self-ratings are going to be included, structured forms and formal procedures are recommended. Peers: With downsizing and reduced hierarchies in organizations, as well as the increasing use of teams and group accountability, peers are often the most relevant evaluators of their colleagues performance. Peers have a unique perspective on a co-workers job performance and employees are generally very receptive to the concept of rating each other. Peer ratings can be used when the employees expertise is known or the performance and results can be observed. Subordinates: An upward-appraisal process or feedback survey (sometimes referred to as SAM for a "Subordinates Appraising Managers") is among the most significant and yet controversial features of a "full circle" performance evaluation program. Both managers being appraised and their own superiors agree that subordinates have a unique, often essential, perspective. The subordinate ratings provide particularly valuable data on performance elements concerning managerial and Managerial behaviors. However, there is usually great reluctance, even fear, concerning implementation of this rating dimension. Customers: Setting Customer Service Standards, requires agencies to survey internal and external customers, publish customer service standards, and measure agency performance against these standards. Internal customers are defined as users of products or services supplied by another employee or group within the agency or organization. External customers are outside the organization and include, but are not limited to, the general public.

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