Master of Business Administration- MBA Semester 1 MB 0043 / MBF 106 Human Resource Management

Question 1: Explain the scope or functions of Human Resource Management. Answers 1: Functions of Human Resource Management are follows: HRM in Personnel Management: This is typically direct manpower management that involves manpower planning, hiring (recruitment and selection), training and development, induction and orientation, transfer, promotion, compensation, layoff and retrenchment, employee productivity. The overall objective here is to ascertain individual growth, development and effectiveness which indirectly contribute to organizational development. It also includes performance appraisal, developing new skills, disbursement of wages, incentives, allowances, traveling policies and procedures and other related courses of actions. HRM in Employee Welfare: This particular aspect of HRM deals with working conditions and amenities at workplace. This includes a wide array of responsibilities and services such as safety services, health services, welfare funds, social security and medical services. It also covers appointment of safety officers, making the environment worth working, eliminating workplace hazards, support by top management, job safety, safeguarding machinery, cleanliness, proper ventilation and lighting, sanitation, medical care, sickness benefits, employment injury benefits, personal injury benefits, maternity benefits, unemployment benefits and family benefits. HRM in Industrial Relations: Since it is a highly sensitive area, it needs careful interactions with labor or employee unions, addressing their grievances and settling the disputes effectively in order to maintain peace and harmony in the organization. It is the art and science of understanding the employment (union-management) relations, joint consultation, disciplinary procedures, solving problems with mutual efforts, understanding human behavior and maintaining work relations, collective bargaining and settlement of disputes. The main aim is to safeguarding the interest of employees by securing the highest level of understanding to the extent that does not leave a negative impact on organization. It is about establishing, growing and promoting industrial democracy to safeguard the interests of both employees and management.

Question2: (A) Define Wage & Salary. (B) What are the factors affecting wage administration? Answers 2: (A) The term wage is commonly used for those employees whose pay is calculated
according to the number of hours worked. Thus, the weekly pay check will fluctuate as the number of hours actually worked varies. The word salary applies to compensation that is uniform from one period to the next and does not depend upon the number of hours worked. Salaried often implies a status distinction, because those who are on salary are generally whitecollar, administrative, professional, and executive employees, whereas wage-earners are designated as hourly, non-supervisory, or blue-collar. Wage-earners in some organizations do receive full wage if they are absent for such reasons as sickness, whereas salaried employees, especially at the lower levels, often receive overtime pay when they work over the standard work week.

A job is defined as the collection or aggregation of tasks, duties, and responsibilities that, as a whole, is regarded as the reasonable assignment to an individual employee (B) Factors affecting wage administration are as follows

The organizations ability to pay -Wage increases should be given by those organizations which can afford them. Companies that have good sales and therefore high profits tend to pay higher wages can retain their employees. Supply and demand of labour -If the demand and certain skills are high and the supply is low the result is rise in the price to be paid for these skills. The living wage -Employers feel that the level of living prescribed in workers budget is opened to argument since it is based on subjective opinion. Job requirements -Jobs are graded according to the relative skill responsibility and job conditions required. Trade unions bargaining power -Trade unions do affect the rate of wages. Generally the stronger and more powerful trade union, higher the wages. Productivity -Productivity is another criterion and is measured in terms of output man-hour. It is not due to labour efforts alone. Technological improvements, greater ingenuity and skill by the labour are all responsible for the increase in productivity. Prevailing market rate -This is also known as comparable wages or going wage rate. Reason behind this is competition demand that competitors adhere to the same relative wage level.

Question 3: What are the different types of on the job & off the job training? Answers 3: Types of on the job & off the job training are as: Online Job Training Job Rotation: The trainee receives job knowledge and gains experience from his supervisor or trainer in each of the different job assignments. Though this method of training is common in training managers for general management positions, trainees can also be rotated from job to job in workshop jobs. Coaching: The trainee is placed under a particular supervisor who functions as a coach in training the individual. The supervisor provides feedback to the trainee on his performance and offers him some suggestions for improvement. Apprenticeship: Apprenticeship is a formalized method of training curriculum program that combines classroom education with on-the-job work under close supervision. The training curriculum is planned in advance and conducted in careful steps from day to day. Committee Assignments: Under the committee assignment, group of trainees are given and asked to solve an actual organisational problem. The trainees solve the problem jointly. It develops team work. Offline Job Training
Classroom Lecture: In lecture method trainers used to communicate with spoken words which they want the trainees to learn, it is primarily one way communication of learned capabilities from trainer to audience. It is least expensive and least time consuming way to present large amount of information efficiently in organized manner. Audio visual training: Audio visual instruction includes overheads, slides and video. Video can be used for improving communication skills and customer service skills, it can also illustrate how procedures can be followed. Case Studies: This method involves studying cases from all perspectives, analyzing the various options available to the company for solving problems or address issues and arriving at most suitable answers Role Play: The trainees act out a given role as they would in a stage play. Role players are informed of a situation about the respective roles that they have to play. Role playing basically covers topics such as employee-employer relationships, hiring, firing, conducting a post-appraisal interview.

Business Games: This method requires trainees to gather information, analyze it and make decisions. Business games are primarily used for management skill development.

Question 4: What is the need for Performance reviews? What are the benefits of carrying out performance appraisal in organisations? Answers 4: Need for Performance Appraisal are follows: Provide information about the performance ranks basing on which decision regarding salary fixation, confirmation, promotion, transfer and demotion are taken. Provide feedback information about the level of achievement and behaviour of subordinate. This information helps to review the performance of the subordinate, rectifying performance deficiencies and to set new standards of work, if necessary. Provide information which helps to counsel the subordinate. Provide information to diagnose deficiency in employee regarding skill, knowledge, determine training and development needs and to prescribe the means for employee growth provides information for correcting placement. To prevent grievances and in disciplinary activities.

Benefits of carrying out performance appraisal in organisations are as follows:

Increase motivation to perform effectively Increase staff self-esteem Gain new insight into staff and supervisors Better clarify and define job functions and responsibilities Develop valuable communication among appraisal participants Encourage increased self-understanding among staff as well as insight into the kind of development activities that are of value Distribute rewards on a fair and credible basis Clarify organizational goals so they can be more readily accepted Improve institutional/departmental manpower planning, test validation, and development of training programs

Question5: Explain the impact of globalization on HRM Answers 5: Impact of globalization on HRM Globalization: Globalization is a polarizing subject that is not easily defined. Globalization allows for increased competition, lifts barriers to entry for developing countries, helps to promote economic growth and works to unify the world's economies. However, with this unification of economies, comes interdependence. Meaning, the negative events in major industrial nations such as the United States has a significant impact on the economies in other countries. In addition, the economic growth of one country can mean the economic contraction of another. Recruitment: Globalization makes for a larger labour pool from which to choose, but it also increases the possibility of language and cultural barriers in the recruitment process. If the company does not address such barriers, it can make the recruitment process increasingly time-consuming and difficult. Human resource managers must adapt to the different customs and cultures when hiring employees in different countries. Language barriers also may necessitate hiring bilingual employees and adapting employee documents, such as employee manuals and training materials, into different languages.

Labour Laws: Labour laws can differ greatly from one country to the next. With increasing globalization, human resources managers must stay abreast of the labour laws of the countries in which they operate to ensure that the company is not inadvertently breaking these laws. Additionally, human resource management should make certain that they are not taking advantage of labour laws that may be more lax in other countries than those in their native country. For example, child labour is illegal in the United States, but in different countries, this is not the case. Human resources management should implement hiring and training practices that are consistent for all countries in which the company operates. Labour Force Implications: Globalization has a significant effect on the labour force of a company. It allows for more diversity within the corporation as well as economic growth for the countries in which the company is hiring. However, unless the corporation is creating new jobs in different countries and not simply moving existing jobs from one country to another, job growth for one country equals job losses for another. Human resources manager should be aware of the negative effect downsizing can have on employee morale because decreased morale often leads to decreased production. Human resources should have proactive procedures in place that address such morale issues.

Question 6: Ms. Swapna is the HR Manager of ABC Pvt Ltd. She wants to ensure that employee discipline is well maintained. What are the important principles that have to be observed in the maintenance of discipline? Answer 6: Important principles that have to be observed in the maintenance of discipline are as follows As far as possible, all the rules should be framed in co-operation and collaboration with the representatives of employees. If the latter have a share in formulating them, will be much more likely to observe them. All the rules should be appraised at frequent and regular intervals to ensure that they are, and continue to be, appropriate sensible and useful. Rules should vary with changes in the working conditions of employees. Those framed for office employees, for example, may very well be different from those that are formulated for workers in an industrial concern. Rules should be uniformly enforced if they are to be effective. They must be applied without exception and without bending them or ignoring them in favour of any one worker. Penalties for any violation of any rule should be clearly stated in advance. Employees have the right to know what to expect in the event of any infringement of a rule or regulation. For this purpose, it is better to publish them in the employees' handbook. A disciplinary policy should have as its objective the prevention of any infringement rather than the simple administration of penalties, however just it should be preventive rather than punitive. Extreme caution should be exercised to ensure that infringements are not encouraged. This should be done as a matter of policy. If violations of a particular rule are fairly frequent, the circumstances surrounding them should be carefully investigated and studied in order to discover the cause or causes of such violations. Recidivism must be expected. Some offenders would almost certainly violate rules more often than others. These cases should be carefully considered so that their causes may be discovered. Definite and precise provisions for appeal and review of all disciplinary actions should be expressly mentioned in the employees' handbook for collective agreements
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