L.J.

Institute of Management Studies

HRM-Answer Key

Q - 1. Explain the significance and current issues of HRM.

HRM the policies and practices involved in carrying out the people or human resource aspects of
a management position, including recruiting, screening, training, rewarding and appraising.

Significance of HRM

1. Hire right person for the right job

2. Ensure low employee turnover
3. Ensuring the best performance
4. Conducting effective interviews
5. Effective and cordial relation with workers
6. Ensure fair compensation policies
7. Effective conduct and implementation of training programs

Current issues in HRM

1. Globalization Trends
2. Technological Trends
3. Trends in Nature of Work
4. Widening scope of HR Activities
5. Greater emphasis on HRIS
6. Change in Labor Market Condition
7. Increasing importance of high performance work system
8. Growing need for measurement tools to evaluate HR programs

Q - 2. Is HRM a line function or staff function explain and write Primary and
Secondary functions of HRM / Whether you are a line manager or a staff manager,
you are side by side an HR manager also. Give your comments on this statement.
Ans:
Line Authority: the authority exerted by an HR manager by directing the activities of the people
in his or her own department and in service areas.
Staff Authority: Staff authority gives the manager the right to advice other managers or
employees.
Human Resource Managers are staff managers, they assist and advice line managers in areas like
recruiting, hiring and compensation.

1. Q - 3. Define Strategies of Human Resource Management and Explain the 7

Steps in Strategic Management Process .

Ans.
Introduction:-

A strategic plan is the companys plan for how it will match its internal strengths and weaknesses
with external opportunities and threats in order to maintain a competitive advantage. The essence
of strategic planning is to ask, Where are we now as a business, where do we want to be, and
how should we get there? The manager then formulates specific strategies to take the company
from where it is now to where he or she wants it to be. A strategy is a course of action. If Yahoo!
Decides it must raise money and focus more on applications like Yahoo! Finance, one strategy
might be to sell Yahoo! Search. Strategic Management is the process of identifying and executing
the organizations strategic plan, by matching the companys capabilities with the demands of its
environment.

The Following steps are involved in Strategic management process:-

Strategic Management Process:-

1. Define the current business

2. Perform external and internal Audits
3. Formulate a new direction
4. Translate the Mission into Strategic Goals
5. Formulate Strategies to Achieve the Strategic Goals
6. Implement the Strategies
7. Evaluate Performance

Explanation:-
 1. Define the current business:-

A Logical place to start is by defining ones current business. Specifically, what product do we
sell, where do we sell them, and how do our products or services differ from our competitors?
For example, Rolex and Casio both sell watches. But there the similarity ends. Rolex sells a
limited line of expensive watches. Casio sells a variety of relatively inexpensive but innovative
specialty watches with features like compasses and altimeters. Indian Institute of management
Ahmadabad (IIMA) AND India Gandhi National Open University (IGNOU) both offer
management education programs, but the difference is significant. IIMA is distinguished by a
highly competitive selection process, residential campus, direct faculty involvement, and
studying pedagogy through case studies. IGNOU, on the other hand, has a larger and global
student body that is taught with standardized content of high quality. IGNOU also offers a high
degree of flexibility in its courses.

2. Perform External and Internal Audits:-

The next step is to ask, Are we heading in the right direction? No one is immune to
competitive pressures. Yahoo!s search tool was on top of the world unit Google came along.
Amazons Kindle Reader launch forced even more bookstores to close. HMT watches ruled the
Indian market till Titan entered. Jet Airways had edged out Indian Airlines form the domestic
market, but soon found its position threatened by low cost airlines like Indigo and Spice Jet.
Prudent managers periodically assess whats happening in their environments. You need to audit
the firms environment, and strengths and weaknesses.

3. Formulate a New Direction:-

The question now is, based on the environmental scan and SWOT analysis, what should our new
business be, in terms of three things-what products we will sell, where we will sell them, and
how our products or services will differ from competitors products?

Managers sometimes formulate a vision statement to summarize how they see the essence of
their business down the road. The vision statement is a general statement of the firms intended
direction and shows, in broad terms, what we want to become.
Whereas vision statements usually describe in broad terms what the business should be, the
companys mission statement summarizes your answer to the question, what business are we
in? Managers often use the mission statement to pinpoint whether and how the company will
vertically integrate, as well as the firms product scope, geographic coverage, and competitive
advantage.

The mission of HDFC Bank, a leading new generation bank in India, is to Become a world class
Indian Bank. Tata Motors, Indias largest auto-mobile company, has to be best in the manner in
which we operate, best in products we deliver, and best in our value system and ethics as its
vision, which serves as the guiding light.

4. Translate the Mission into Strategic Goals:-

Next, translate the mission such as vertical integration, product scope, geographic coverage, and
competitive advantage into strategic goal or objectives. For example, saying your advantage is
to make quality job one is one thing; operationalizing that mission for your managers is
another. The company and its managers need strategic goals. At ford, For example, what exactly
did Quality Is Job One mean for each department in terms of how they would boost quality?
The answer is that its managers had to meet strict goals such as no more than 1 initial defect per
10,000 cars.

5. Formulate Strategies to Achieve the Strategic Goals:-

Next, the manager chooses strategies-courses of action-that will enable the company to achieve
its strategic goals. For example, what strategies could ford pursue to hit its goal of no more than
1 initial defect per 10,000 cars? Perhaps open to new high-tech plants, reduce the number of car
liner to better focus on just a few, and pursue a partnership with a firm known for quality car, like
Honda.

6. Implement the Strategies:-

Strategy implementation or execution means translating the strategies into action. The companys
managers do this by actually hiring people, building plants, and adding products and product
lines.
7. Evaluate Performance:-

Things dont always turn out as planned. For example, some years ago Ford bought Jaguar and
Land Rover as a way to reduce reliance on lower-profit cars. With auto competition brutal, Ford
announced in 2009 it was selling Jaguar and Land Rover. It wants to focus its scarce resources on
modernizing and turning around its struggling North American operations. Like all companies,
Ford continually needs to assess its strategic decisions.

Q - 4 Comment on the changing role of HRM

Ans. HRM has been expanding in its area of activities ever since the since the day when
management began to include welfare and personal department in the organization structure.
Today, the responsibilities of the HR department have grown to be broader and increasingly
pragmatic.

Moreover, the advent of economic reforms in the form of globalization, liberalization and
privatization in our country has changed the very profile of organization structured. Today, HR
manager have to think beyond traditional activities like personnel planning, welfare measures,
and industrial relations. The HR manager of tomorrow needs to be familiar with the operation
aspects of the organization such as strategic planning , competitive pressures, return on
investment ,and cost of production, to name a few besides their own filed. In brief, they must be
prepared to function from the higher level of the management in close coordination with the top
management in designing and implementing the HR plans and strategies. We shall now discuss
the future role and challenge of HR managers.

1. Change in the Nature of Work:

Technological development is changing the very nature of work. Due to technological

advancement, even traditional jobs have become technologically challenging. These changes
require the employment of more educated and more skilled workers in these jobs. Further, the
service sector, which is fast emerging as the major provider of employment in our country,
requires the use of knowledge worker. These new breeds of better informed employees will
expect unconventional and world class HR practices and system. HR managers must plans and
strategies to meet the changing expectations of these new generation employees. They should
also be prepared to handle the emerging work culture, which keeps more focused on their
individual career prospects.

2. Widening scope of HR activities:

Human resource activities are getting integrated at the global level. Globalization and
deregulation have deeply affected the functional HRM. Organizations, in their pursuit of new
markets and greater cost effectiveness, extend their sales, production facilities, and supporting
services to new destinations in several countries around the word. HR manager must have
adequate dynamism and action plans to help these organizations successfully integrate their
global HR operations. They must also ensure effective coordination amongst and control over the
labor forces working in different countries.

3. Greater emphasis on HRIS:

The organization of the future will be large due to world- wide mergers and acquisitions. The
sheer size of an organization may compel the HR department to computerize its HR operation
like recruitment, training appraising and pay roll preparation. Thus, large companies may
require an integrated Human Resource Information system (HRIS) for effectively coordination
their different HR operation. HRIS actually means interrelated components working together to
collect, process, and store and disseminate information to support decision making, coordination,
control, analysis and visualization of an organizations HRM activities. Future manager should
be familiar with HRIS operations. HRIS can help an organization in several ways. For instance,
HRIS can relieve HR managers from routine activities as the system taken over the task of
updating the employee information. It can also help the HR department produce a variety of
report in a short span.

4. Change in Labor market conditions:

The increased industrialization of the country has thrown up many challenges for HR manger.
Uneven economic development has resulted in the large scale unemployment of unskilled and
under-skilled persons on one side and severe shortage of competent people on the other, This
dichotomy in labor may compel HR managers to reduce their focus on the short-term need of the
organization and to concentrate more on fulfilling the long-term capability requirement such as
skill development and knowledge formation amongst its existing workforce.

5. Increasing Importance of High performance Work systems (HPWS):

Globalization is bringing about a tremendous change in the size, structure, composition. And
style of functioning of organization so as to meet an intensified global competition. In fact, more
globalization means more competition for a firm. This in turn puts increased pressure on an
organization to improve its employees productivity. This calls for the adoption of effective HR
practices by HR managers. In this regard, the HR management needs to focus on evolving an
integrated set of effective HR policies and practices that produces superior employee
performance. Thus, HR managers, with the help of dynamic HR policies, should develop HPWS
that maximize the competencies, commitment and abilities of the firms employees.

6. Growing Need for measurement Tools to Evaluate HR Programmers:

The inherent weakness of HRM is the absence of reliable and effective yardsticks for measuring
the performance of HR programmers. The top management expects HR managers to express
their plans and performance in measurable terms. Thus, there is an urgent need for HR managers
to provide concrete and quantified evidence that their department is contributing in a significant
and constructive way to the accomplishment of organization goals and objectives. HR managers
focus in the future will be on the development and introduction of reliable and accurate HR tools
to measure the efficiency of HR functions.

A prudent understanding and efficient management of these challenges are pre-requisites if HRM
is to add considerable value, show business result, enact professionalism, and reveal fresh
competencies in the future.

Q - 5. Define Human Resource Planning. Why is HR Planning more common

among large organizations than among small ones?
Ans: Human resource planning as a process of identifying and then matching the human resource
requirements and availability in order to determine the future HR activities of the organization on
the basis of the overall organizational objectives. In other words Human resource planning is
the process of analyzing an organizations human resource requirements under changing
conditions and developing activities necessary to satisfy these needs James .w. Walker.

HR planning more common among large organization then among small once.

Many people associate human resource planning with what very large companies do
IBM, or Ford, thats because, almost by necessity, large companies need to have a much
more formal and comprehensive approach to HR planning because of their size and the
complexity of their businesses.
That said, even a business owner with a very few employees need to think (that is plan)
about various personnel and human resources issues. Many small business owners do this
without really thinking about it. For example, a small business owner needs to think and
plan about what benefits to offer, how to manage growth of staff, how to evaluate
employee performance, and so on.
So, even if you have one or two employees, its useful to plan like the big boys regarding
human resource and personnel issues. The methods you may use may be simpler but you still
need to it.

Q - 6. What is the process of Human Resource Planning ? What are the

different methods of forecasting used in Human Resource Planning. / What is
the process of HRP? / What are the different methods of forecasting used in
HRP/ Define Human Resource Planning and steps involved in Human
Resource Planning Process.

Planning Process:
Q - 7. What is meant by job description? Explain the following terms

1) Job Enlargement

2) Job Enrichment

3) Job Specification

4) Job Rotation

5) De jobbing; why are the organization going for it?/ Q8. What is meant by job
Description? Explain the terms Job enlargement, Job enrichment and
Dejobbing. What is De-jobbing and why are the organizations going for it?

ANS:-

Job Description:

The job description is a written statement that describes the activities and responsibility of the
job, as well as its important features, such as working conditions and safety hazards.

Job description is a written statement of what the worker actually does, how he or she does it,
and what the jobs working conditions are.
Job Enlargement:-

Job enlargement transforms the jobs to include more and different tasks.
Its basic aim is to make the job more attractive by increasing the operations performed by a
person on the job.
Job enlargement techniques aim at designing jobs in such a way that the interest and needs of
both the management and the employee are fulfilled
During the period several companies initiated modification in the jobs to make them more
interesting and challenging.
For instance, IBM enlarged the job of its machine operators by making them responsible for
machine setting and inspection.
In reality, job enlargement offers diverse tasks to the employee even while ensuring that the
enlarged job requires the same level of skills.

Job Enrichment:-

Job enrichment refers to the development of work practice that challenge and motivate the
employees to perform better.

It often results in achieving desired improvements in productivity, safety of work, quality of

products and job satisfaction.

Organizations also adopt job enrichment to encourage multitasking by the employees in the job.

Job enrichment may include, among others, the formation of a quality circle, self-directed teams,
achieving HR costs reduction and job satisfaction.

In fact, studies have shown a positive correlation between enrichment and job satisfaction

Job specification

What human traits and experience are required to do this job well? it shows what kind
of person to recruit and for what qualities that person should be tested.
The job specification may be a section of the job description, or separate documents
entirely.

Job Rotation

Job rotation refers to moving employees from one job to another in a predetermined way.
 This enables an employee to perform divers roles and gain exposure to the techniques
and achieving HR costs reduction and job satisfaction.
In fact, studies have shown a positive correlation between job enrichment and job
satisfaction

De-jobbing

Companies are grappling with challenges like rapid product and technological change,
global competition, deregulation, political instability, demographic changes, and a shift to
a services economy.
This has increased the need for firms to be respective, flexible, and much more
competitive.
In turn, the organization methods managers use to accomplish this have helped weaken
the meaning of job as a well-defined and clearly delineated set of responsibilities.
Requiring that employees limit themselves to narrow jobs runs counter to the need to
have them sampling willingly switch from task to task as jobs and team assignments
change.
Here is a sampling of organizational factors that have contributed to encouraging workers
not to limit themselves to narrowly defined jobs.
a. Flatter organizations instead of traditional, pyramid-shaped organization with
seven or more management layers, flat organization with just three or four levels
are more prevalent. This assumedly puts top managers in closer tough with
customers. But the implication is that the remaining managers each have more
subordinates reporting to them.
b. Self-managing work teams managers increasingly organize tasks around teams
and processes rather than around specialized function.
c. Reengineering in many companies, work process are a little like relay races. For
example for a bank to approve a long application might be handed from
department to department, such as from application, to credit analysis, to loan
approval, to the loan closing group. This can be very time consuming.
Reengineering has implications for writing job description.

Q 10. What is Job Analysis? Discuss the steps in Job Analysis. How can you
make use of the information it provides?
Ans:
Job analysis:- Job analysis is the process if breaking down a specific job into parts and
scrutinizing each of them to gather the necessary information. It requires a systematic and
efficient examination if the tasks, duties, responsibilities and accountability of a job.

Step of Job Analysis:-

Step 1 Determining the purpose of job analysis

Step 2 Gathering background information about the job

Step 3 Choosing representative jobs for analysis

Step 4 Collecting the relevant job information

Step 5 Reviewing gathered information

Step 6 Job description and Job specification statements

Step 1: Determining the purpose of job analysis.

The first step in the job analysis process is the determination of the end use of the job
analysis. True, job analysis has relevance for almost all HR activities of an organization.
However an organization may conduct a job analysis for a specific purpose like hiring the
employees or determining their remuneration. Depending upon the purpose of the analysis,
the organization may focus specifically on certain aspects of the job that are considered
important. For instance, job analysis may emphasize more on identifying information relating
to the physical hazards, job difficulties and work environment, when the job analysis is done
to decide the safety measure for a job. In any case, the identification of the expected uses of
 the job analysis will enable the organization to determine the nature and types of data to be
collected, the techniques to be adopted for data collection, and the focus of the analysis.

Step 2: Gathering background information about the job.

It is essential for an organization to review the background information about the job to know its
relative importance in the organization. While doing so, the job analysis should focus on
identifying information relating to all the important elements of the job. This information can be
gathered with the help of organization charts, process charts, and job classification. For instance,
the information about the title and alternate title of job, the relationship among the different jobs,
and the reporting authorities for each job can be identified with the help of the organizational
chart. Similarly, the flow of activities involved in a job can be ascertained with the help of the
process chart.

Step 3: Choosing representative jobs analysis.

Often, organizations choose only a few jobs for analysis instead of analyzing all them. This is
done because many jobs are similar in nature in nature and have similar characteristics. Besides,
organizations may find it time-consuming and costly to analyze all their jobs. As A result, it
becomes essential furan organization to identify the identify the representative jobs from a group
of identical jobs.

Step 4: Collecting relevant job information.

In this step, information pertaining to various aspects of the job is collected. Specifically, The
information about the duties, level of responsibility, authority, accountability, content and context
of the job, desired employee behavior, critical knowledge, knowledge skills And abilities (KSA),
and training requirements are gathered. These pieces of information can be gathered by
contacting the present and previous employees of the job, the supervisors and the managers,
methods like structured or open-ended questionnaires, interviews, task Inventories, checklists,
and observations are used for data collection.

Step 5: Reviewing the information gathered.

At this stage, the collected data is carefully analyzed and then a job analysis report is prepared
for the job being reviewed. Generally, the specific job holders and their immediate supervisors
are is included in such an analysis process. The opinion of the employer performing the job is
ascertained to verify the correctness and completeness of the job analysis report. In case the
employee of supervisor points out incompleteness or discrepancies in the report supplementary
information could be collected.

Step 6: Job Description statement and Job specification statement.

This is the final stage in the process of job analysis. The two essential documents of the firm,
namely, the job description and job specification, are prepared on the basis of the job analysis
report. A job description is a written statement conditions and risks associated with the job.
Briefly, it is a summary of the various features of a job.

A job specification is a statement that provides information from the job holders perspective. It
usually contains information about the eligibility conditions required for a job holder in terms of
education qualifications, experience, knowledge, skills, personal qualities, aptitude and the
background required for getting the job done.

Type of data in job analysis:-

1) Job duties

a) Daily duties (activities performed on a regular base every day), periodic duties (activities
performed at regular interval, say a week or a month), and duties performed at irregular
intervals.

b) Procedures used

c) Personal responsibility

d) Interface with other job

e) Human behavior required like the manner of the acting or conducting oneself in the job.

f) Physical motions required

2) Machines,tools,equipment,and work aids used

a) Nature and type of machine and tools required

b) Raw material required in job performance

c) Finished good or service produced

3)Job performance requirements

a) Standard performance levels

b) Actual work measurement technique required

c) Deviation and error levels allowed

4) Job contact

a) Physical working environment and location required

b) Organizations and social environment required

c) Work schedule

d) Health and safety condition required

e) Financial and non-financial incentives

5) Personal requirements

a) Competency required

b) work-related experience required

c) Training and education required

d) Special aptitudes,physical characteristics and personality traits required

Q 11. Application based JD and JS question can be asked. i.e preparing a JD and

JS for a particular position / designation.

 Ans:

JOB TITLE: Telesales Representative JOB CODE: 100001

RECOMMENDED SALARY GRADE: EXEMPT/NONEXEMPT STATUS:
Nonexempt
JOB FAMILY: Sales EEOC: Sales Workers
DIVISION: Higher Education REPORTS TO: District Sales Manager
DEARTMENT: In-House Sales LOCATION: Boston
DATE:

SUMMARY:

The person in this position is responsible for selling college textbooks, software, and multimedia
product to professors, via incoming and outgoing telephone calls, and to carry out selling
strategies to meet sales goals in assigned territories of smaller colleges and universities. In
addition, the individual in this position will be responsible for generating a designated amount of
editorial leads and communicating to the publishing group product feedback and market
observed in the assigned territory.

SCOPE AND IMPACT OF JOB

Dollar responsibilities (budget and/or revenue)

The person in this is responsible for generating approximately $2 million in revenue, for meeting
operating expense budget of approximately $4000, and a sampling budget of approximately
10,000 units.

Supervisory responsibilities (direct and indirect)

None

Other

REQUIRED KNOWLEDGE AND EXPERIENCE

Related work experience

Prior sales or publishing experience preferred. One year of company experience in a customer
service or marketing function with broad knowledge of company product and services is
desirable.

Formal education or equivalent

Bachelors degree with strong academic performance or work equivalent experience.

Skills

Must have strong organizational and persuasive skills. Must have excellent verbal and written
communications skills and must be PC proficient.

Other

Limited travel required (approx. 5%)

PRIMARY RESPONSIBILITIES

Driving Sales (60%)

Achieve quantitative sales goal for assigned territory of smaller colleges and universities.
Determine sales priorities and strategies for territory and develop a plan for implementing
those strategies.
Conduct 15-20 professor interviews per day during the academic sales year that
accomplishes those priorities.
Conduct product presentations effectively articulate authors central vision of key titles;
conduct sales interviews using the PSS model; conduct walk-through of books and
technology.
Employ telephone selling techniques and strategies.
Sample products to appropriate faculty, making strategic use of assigned sampling
budgets.
Close class test adoptions for first edition products.
Negotiate customer publishing and special packaging agreements within company
guidelines.
 Initiate and conduct in-person faculty presentations and selling trips as appropriate to
maximize sales with the strategic use of travel budget. Also use internal resources to
support the territory sales goals.
Plan and execute in-territory special selling events and book-fairs.
Develop and implement in-territory promotion campaigns and targeted email campaigns.

Publishing (editorial/marketing) 25%

Report, track, and sign editorial projects.

Gather and communicate significant market feedback and information to publishing
group.

Territory Management 15%

Track and report all pending and closed business in assigned database.
Maintain records of customer sales interviews and adoption situation in assigned
database.
Manage operating budget strategically.
Submit territory itineraries, sales plans, and sales forecasts as assigned.
Provide superior customer service and maintain professional bookstore relations in
assigned territory.

Decision-Making Responsibilities for This Position:

Determine the strategic use of assigned sampling budget to most effectively generate sales
revenue to exceed sales goals.

Determine the priority of customer and account contacts to achieve maximum sales potential.

Determine where in-person presentations and special selling events would be most effective to
generate most sales.
Submitted By: Date:

Approval: Date:

Human Resources Date:

Corporate Compensation Date:

Q.12 Write in detail Recruitment and Selection process./ Q17. Explain steps in
selection process.

Recruitment process:-

The recruitment process is concerned with the procedure for the identification and classification
of the potential sources of human resources supply and effectively utilizing those sources. In the
overall process of procuring and inducting human resources in the organization, recruitment is
one of the critical sub-processes. A well-planned and well-managed recruiting process is
essential for attracting high-quality applicants.

Steps in the Recruitment Process:-

1) Human resources planning:-

The first step in the process of recruitment is the framing of human resources plans in
tune with the organizational objectives. Human resources plans clearly estimate the levels
and kinds of human resources required to ensure the accomplishment of the strategic plan
of the organization. Human resources planning involves the estimation of how many
qualified persons are necessary to carry out the assigned activities (personnel demand),
how many people will be available (internal supply), and what must be done to ensure
that the personnel supply equals the personnel demand at an appropriate point in the
future (the reconciliation process). Thus, the first step is the estimation of the future HR
recruitment of the organization and a decision to meet the personnel demand with an
adequate supply through recruitment.
2) Determination of strategy:-
The second step in the process of recruitment is the determination of strategy for
choosing the candidates. It may include, among others, the development of different
sources of recruitment, the preferences to be followed, the recruitment method to be used
 and the series of activities to be undertaken. Job specification reports that specify the
quality and quantity of personnel required for the organization help us in determining the
strategy to be adopted. The strategy must be designed in such a way that it attracts as
many applicants as possible.
3) Evaluation of the sources of recruitment:-
Once the strategy is finalized, the next step is the evaluation of each source of
recruitment. There are two important sources of recruitment is every firm, namely,
internal and external. Internal sources include among others, the existing employees, the
former employees and employee referrals, while the external sources refer to all sources
other than the internal ones. For instance, employment exchanges, employment
associations, professional associations, public advertisements and educational institutions
constitute external sources. Evaluation refers to the assessment of strengths and weakness
of the sources available to an organization. One of the studies mentions that the
measurement refers to finding an answer to the question, How many applicants did we
generate through each of our recruitment process? Organizations can attract a good
number of qualified applicants by combining one or more sources.
4) Implementation of Recruitment Methods and Strategies:-

Having evaluated the various sources of recruitment, the next stage is the finalization of the
sources and the actual implementation of strategies. Regardless of whether the organization
decides to recruit from internal or external sources, the recruitment method and strategy must
be implemented in accordance with all relevant laws and regulation.

5) Feedback and Control:-

As recruitment is a continuous process, it is essential to evaluate it to enhance its

effectiveness. The quality of the applicant pool is an indicator of the efficiency of the
recruitment process. If the process discourages the potentially qualified individuals from
applying, limits the size of the applicant pool or results in inferior applicants becoming the
employees of the organization, there is a need for a change in the recruitment process.

Phases of the selection process:- DELETE

As there is no commonly accepted selection process available, organization may have to

adopt different selection processes for different jobs, depending upon their nature and
 requirements. Nonetheless, the aim of any selection process is to gather relevant and
critical information about an applicant at every stage of the process in order to determine
his/her suitability for the job offered. The selection process broadly involves
measurement, decision making, and evaluation, as explained below.
A good selection process must be able to distinguish applicants who are likely to perform
well in the job from those who are not. An organization adopts various steps in the
selection process to predict the likely performance of each applicant in the job. These
steps are briefly presented as follows:

Phase 1: Phase 2: Decision Phase 3: Evaluation

1) Employment Application Forms/Blanks:
Measurement Making
These refer to a standardized format to collect the necessary Identifying
information the
about an and
role
Verification of the Ensuring the effectiveness of the
applicant to determine his suitability for the job.
accuracy and completeness of selection process from the
2) Selection test:-
consistency of selection employee data to make organization
This is a psychological test fir comparing and contrasting the behavior of two perspective
or more
techniques. accurate and
persons on the basis of a standardized measure in order to predict their likely job
performance, if selected.

3) Selection interview:-
This is a face to face conversation with the candidate to collect the required
information that could not be collected through other selection tools to determine his
suitability for a job.
4) Reference check:-
This is a process of cross-checking information provided by the candidates in
different stages of the selection process with the references cited by the candidates
themselves.
 5) Physical Examination:-
This is a medical test to ensure that the candidates selected meet the physical
requirements of the job.
6) Job Offer:-
A job offer is a formal communication from the employer to the selected candidate
that specifies the details of an offer of job. This job offer generally provide
information about job description, reporting authority, pay particular, and leave
eligibility.
Once suitable candidates are identified at the end of the selection process, the
organization would proceed with the issue of job offers to the selected candidates.
Normally, the candidates respond by accepting or rejecting such offers.

Q 13. Describe External sources for Recruitment of candidates. / What are the
advantages and disadvantages of various external recruitment sources?/ How do
they compare with the internal sources?
Ans.-

Sources of Recruitment:-

(i) Internal sources

(1 ) Existing Employees:
(2) Former Employees
(3) Employee Referrals
(ii) External sources
(1) Employment Exchanges
(2) Outsourced to Recruitment Agencies
(3) Advertisements
(4) Campus Recruiting
(5) Walk-ins and Write-ins
(6) Internet Recruiting
(7) Raiding or Poaching

External sources:-

(1) Employment Exchanges:

Employment exchange have been established by government to act as a liaisons between job
providers and job seekers, these exchanges were set up all over the country in compliance with
the employment exchanges act of 1959.The employment exchange help employers locate
suitable candidates for the vacancies arising in their organization and the job seekers get
information about such job opportunities. Employment exchange would find a match for these
vacancies with the job aspirants who have registered their names with them.

Types of Employment Agencies:

(1)Government Employment Exchanges

(2)Nonprofit Agencies

(3)Private Agencies

Why Use a Private Employment Agency

No HR department: firm lacks recruiting and screening capabilities

To attract a pool of qualified applicants
To fill a particular opening quickly
To attract more minority or female applicants
To reach currently employed individuals who are more comfortable dealing with agencies
To reduce internal time devoted to recruiting

(2) Outsourced to recruitment agencies:

Transferring the whole or a few parts of the recruitment process to an external HR consultant
rendering recruitment services is called outsourcing recruitment.

These agencies specialize in recruitment activities and become professional. They normally
charge fees either from the applicant or from the organization or from both for the successful
placement.

1. Make sure the firm is capable of conducting a thorough search

2. Meet individual who will handle your assignment

3. Ask how much the search firm charges

4. Never rely solely on the recruiter to do reference checking

(3)Advertisements:
 Printed advertisement is a preferred mode of external recruitment for several reasons. As
printed advertisements reach many people in a short period of time, the vacancies can be
communicated to the potential candidates quickly. They are cost effective when the vacancies
are larger in numbers.

(4) Campus Recruitment:

When company representative are sent to college campuses to recruit applicants to create an
applications pool from graduation classes, it is called campus recruitment.

The aim of campus recruitment programmed is to attract good candidates. In recent time with
the advent of knowledge bases companies in large numbers recruiting in India.

(5) Walk-ins and Write-ins:

When applicants directly write to the organization or just walk in to the office to state their
interests for employment, we call it write-ins and walk-ins. These may be self initiated or in
response to the advertisement placed by the organization in newspapers. Suitable method for
immediate selection and placement .Used by many BPOs and IT companies to meet their
huge labor demands in short period of time

(6) Internet Recruiting:

Internet recruiting refers to placing an advertisement on the internet for inviting applications
from the potential applications to fill the vacancies specified. In recent Tim in much
organization recruiting based on internet recruiting. Organization can also use computer scan,
digitize and process the collection of applicant data.

Advantages

Cost-effective way to publicize job openings

More applicants attracted over a longer period

Immediate applicant responses

Online prescreening of applicants

 Links to other job search sites

Automation of applicant tracking and evaluation

Disadvantages

Exclusion of older and minority workers

Excessive number of unqualified applicants

Personal information privacy concerns of applicants

(8)Raiding or Poaching:

Raiding or Poaching refers to attracting the employees of the rival organizations with
attractive offers. Organizations may directly or indirectly contact the talented employees
of their rivals and gradually persuade them to join. Though considered unethical,
poaching is widely prevalent in many Indian Organizations, particularly IT companies.

Anti-Poaching Techniques Adopted By Indian Organizations

Co-operation Agreements

Access Restrictions

Mock Raids

Benchmarked HR Practices

Retention Bonus

Employee Contracts

Tit-for-Tat Threats

Empanelled Bonuses

Information Security Protocol

 Comparison of Recruitment Sources

Internal Sources External sources

1. Not given new talent & skill 1. Benefits of new skills and talents
2. Less costly 2. High costly
3. Candidates already oriented towards 3. Candidates not oriented towards
organization. organization.
4. Adjustment of new employees takes 4. Adjustment of new employees takes
shorter time. longer time.

Advantages of External Sources:

Enable to generate a large pool of applicants.

The firm can adopt a rigorous, competitive and uncompromising selection.
Procedure to choose the requisite type of employees from the applicants pool.
Equal opportunity for participation to all types of individuals and all sections of the
society in the selection process
Allows to bring in fresh talents, adopt innovations and modify the existing work
culture

Limitations of External Sources:

Existing employees might get frustrated.

Costly and time consuming.
Induction and Socialization may not be smooth for new employees.
Outside candidates may be susceptible to poaching and raiding by rival concerns.
Greater possibility of hiring a wrong person since the selection process alone may not
enable the organization to assess the persons skills and suitability for a job correctly.

Q 14. Explain the difference between recruitment and selection. Explain with
relevant examples importance to conduct pre-employment background
investigations./ Why it is important to conduct pr-employment background
investigation? Outline how you would go for it.
Recruitment is a search for promising job applicants to fill the vacancies that may arise
in the organization;
While, Selection is a systematic process of identifying suitable candidates for the
available jobs from the available applicant pool.
The main differences between Recruitment and Selection is as following,

Recruitment Selection
The process of procurement begins with the The process of procurement ends with the
recruitment of candidates from different Selection of the necessary number of
sources. suitable candidates for the job.

It is a negative task because it attempts to

It is a positive task because the aim of
eliminate applicants in different stages to
Recruitment is to gather as many applicants
end up with a smaller number of requisite
as possible for the jobs in as organization.
candidates.

Selection is a difficult job as it requires

Recruitment is comparatively easy as it
specialized knowledge and skills on the
does not require expertise on the part of the
part of the selectors to choose the best
recruiters to build an applicant pool.
candidates by predicting their likely
performance.

Selection is basically a screening function

Recruitment is basically a searching
as it screens the candidates for their
function as it searches for prospective
suitability for the job offered.
candidates for the jobs offered.

Pre-employment Background Investigations;

 Once you have a pool of applicants, the next step is to select the best candidates for the
job. This is usually done by screening tools such as tests, assessment centers and
background and reference checks. Most employers try to check and verify the job
applicants background information and references. These investigations include legal
eligibility for employment, dates of prior employment, military services, education,
identification, country criminal records, motor vehicle record, credit, and reference
checks.
Aims:
There are two main reasons to conduct pre-employment background investigations; to
verify factual information provided by the applicant and to uncover damaging
information such as criminal records and suspended drivers licenses.

In Chicago, a major pharmaceutical firm discovered it had hired gang members in mail
delivery and computer repair the crooks were stealing close to a million dollars a year in
computer parts and then using the mail department to ship them to a nearby computer
store they owned. Thorough background checks might have prevented the losses.

Background checks are a must in todays business climate. Employee fraud and theft can
weaken or destroy a business. An employee with a criminal history could cause
irreparable damage to a companys reputation.
Company may be liable for damages if the court determines that the employer knew or
should have known negative facts of an employees background that should have
disqualified that employee from having the job. It is employers responsibility to know
the employees.
e.g., an employee with a bad driving record should not be hired as a delivery person.
Effectiveness:
The background check is an inexpensive and straightforward way to verify factual
information about the applicant, such as current and previous job titles, current salary
range, dates of employment and educational background. However, realistically managers
dont view reference letters as very useful.

Q 15. Define HR scorecard and briefly explain each of the ten steps in the HR
Scorecard process.
Answer:-

Definition:-

The HR Scorecard is not a scorecard. It refers to a process for assigning financial and
nonfinancial goals or metrics to the human resource management related chain of activities
required for achieving the companys strategic aims and for monitoring results.

Metrics for southwest might include airplane turnaround time, percent on-time flights, and
ground crew productivity. Simply put, the idea is to take the strategy map and to quantify it.

Manager use special scorecard software to facilitate this. The computerized scorecard process
help you to quantify the relationship between ( 1 ) the HR activity (2) the resulting employee
behavior (3) the resulting firm-wide strategic outcomes and performance.

The basic HR scorecard relationship

HR Activities Emergent Strategically Organization Achieve

employee relevant al strategic
behaviors organization Performance goals
al outcomes

There are eight steps in the HR scorecard

(1) Define the business strategy

(2) Outline the companys value chain
(3) Outline a strategy map
(4) Identify the strategically require organizational outcomes
(5) Indentify the required workforce competencies and behavior
(6) Identify the required HR system polities and activities
(7) Choose HR scorecard measure
(8) Summarize the scorecard measure in a digital dashboard

STEP 1 Define the business strategy

 Translating strategy into human resource policies and activities start by defining the
companys strategy plans.

STEP 2 Outline the companys value chain

Identifies the primary activities that create value for customer and the related support activities.
Outlining the company value chain shows the business chain of essential activities. This can
help manager better understand the activities that drive performance in their company. In other
words, it is a tool for identified, isolating, visualizing, and analyzing the firms most important
activities and strategic costs.

STEP 3 Outline a strategy Map:

You can use this information to help construct your strategy map. As we saw, this diagram
summarizes the chain of major interrelated activities that contribute to a companys success.

STEP 4 Identify the strategically required organizational outcomes.

Every company must produce strategically relevant outcomes if it is to achieve its strategic
goals. At Einstein Medical, new service delivered was one such required organizational
outcome. The strategy map and value chain from the preceding steps helps the manager identify
these core outcomes.

STEP 5 Indentify the required workforce competencies and behavior

What competencies and behaviors must our employees exhibit if our company is to produce
the strategically relevant organizational outcomes, and thereby achieve its strategic goals? At
Einstein Medical, employees had to take personal accountability for their results, and be willing
to work proactively to find innovative solutions.

STEP 6 Identify the required HR system policies and activities.

Once the human resource manager knows the required employee competencies and behaviors,
he or she can turn to identifying the HR activities and policies that will help to produce them.
For example, at Einstein Medical, these included new training and pay plans.

STEP 7 Choose HR scorecard Measures.

 We saw that many managers quantify and computerize this chain of strategic goals, employee
competencies, and required HR practices. The HR scorecard process helps them to do so. Recall
that the HR scorecard is a process for assigning financial and nonfinancial goals or metrics to
the HR-related chain of activities required for achieving the companys strategic aims and for
monitoring results.

STEP 8 summarize the scorecard measures in a digital dashboard.

We saw that a digital dashboard presents the manager, via a pc desktop screen containing graphs
and charts, with a birds eye view of how the human resource management function is doing.

Q 16. What are the modern methods of employee testing and selection? / What are
the different methods of testing an employee for a job selection?/ Discuss at least
three tests in detail.
Ability test Ability refers to the capacity of a person to do a particular job.

The ability of a person commonly denotes the Combination of mental ability (like memory and
inductive reasoning), physical ability (like stamina body coordination and physical strength) and
motor ability (like finger dexterity and reaction time).

To measure this abilities and organization may resort to any one or more of the following test:

Intelligence (IQ) Test The aim of intelligence test is to measure the journal intellectual abilities
of person.

This test accesses the memory, vocabulary, verbal comprehension, thought fluency, inductive
reasoning and numerical skills of a candidate.

The uniqueness of this test is that it measures several abilities of the candidate and derives the
intelligence score.

This score is then compared with the average Intelligence score of the organization to determine
whether the candidate is above or below the average. To know the Intelligence quotient or IQ of
child, the equation.

IQ= (Mental age/actual age) x 100

May be used but it has little relevance for adult.

Aptitude test-an aptitude test measures the talents of the person that may be crucial to performing
the job successfully.

This test is normally given those applicants who have no previous experience in that field.
Hence, aptitude tests are appropriate

For predicting the future ability and performance and of the candidate.

Achievement test- The aim of an achievement test is to measure the knowledge gained by a
person in his/her job. It evaluates the claims made by the job holders regarding their performance
and skills acquired in the job. It is also called proficiency test, performance test or trade test.

A typing test is example of achievement test as it intends to measure the speed and accuracy of
typist on his job.

The test that measures the subject knowledge of pupils at schools and colleges are also examples
of an achievement test.

Personality test Personality refers to the sum of the characteristic of a person which reflect on
his or her response to a particular situation

The characteristic may include, among other things introversion, inter-personal skills,
motivation, stability, self belief, courage, attitude and Temperament. A personality test proposes
to access and predict these basic characteristic of a person. Its results are useful in predicting the
future performance of the candidate. Projective tests are ideal for evaluating the intangible
characteristic that make up the personality.

In countries like France and Israel, many companies are using graphology_ the analysis of
handwriting as a tool for personality measurement.

Interest tests- A person mental and physical abilities are not sufficient to achieve to desirable job
performance.

Apart from these, the person must have strong and inherent interest for that job. The aim of the
interest test is to know interest, attitude and preference of person towards the job offered. Its
purpose is to identify the interest of person, say in marketing, accounting, mechanical,
computational and clerical activities to determine the jobs suited for him. The Kidder preference
record and strong vocational interest blank are some well known interest tests.

Honestly or Integrity tests- organizations may feel need to ascertain the honesty of the candidates
to ensure that they have not furnished any false information in the application form and also to
safeguard themselves from frauds and misappropriation.

In an honesty or integrity test, the questions are asked in such way that the attitude and actual
behavior of the candidate can be found out. However, the reliability and validity of the honesty
test have not been conclusive proved and they are rarely used in India.

Q18. What are the different types of Interviews conducted and also write about
some of the errors committed by Interviewer / What are the different techniques of
conducting interview? Discuss some major mistakes that take place during
interview process. If you are an interviewer, how would you avoid them?
Interviews have the capability to serve different purposes of different persons. For instance, they
are useful not only for selecting an employee but also for knowing the reason for an employee
leaving the organization. The common forms of selection interview are as follows:-

1) Structured interview: - Structured interview also called directive or patterned interview, is

a popular form of interview technique. In this method, the interviewer predetermines the
questions to be asked. He merely follows the same template to ask the interviewee a
series of questions with little or no deviation. This method ensures uniformity in the
interview process and facilities easy comparisons among the candidates.
2) Unstructured interview: - This method is also called as non directive or free interview.
In this type of interview does not pre-plan the questions to be asked. In fact, he decides
on the questions as the interview proceeds. The purpose of this method is to allow a free
discussion on any topic as it merges. Qualities like analytical skills, presence of mind and
motivation are tested.
3) In-depth interview: - As implied by the term in-depth, the purpose of this interview is to
discuss the information concerning the candidate in detail. The intention of this
exhaustive interview is to ensure that no information vital to decision making is missed
 out. This method normally covers the subjects of mutual interest like specialization,
motivation, qualification and career plan of the candidates on one hand, and the firms
offer on the nature of job, pay and perquisites, career opportunities on the other.
4) Stress interview: - The purpose of a stress interview is to put the candidate in an
uncomfortable situation to see his/her ability to handle stress. The intention of the
interviewer here is to identify the sensitive candidates who have low-stress tolerance.
This may be done by identifying the area of weaknesses of the applicant in advance and
repeatedly questioning him about it. This may annoy or frighten the applicant, forcing
him/her to lose his patience.
The other ways of creating stressful situations are-asking rude questions, criticizing the
interviewee for his/her answers unreasonably, disturbing the candidates with frequent
questions, and asking the applicant impolitely and repeatedly to pick up the objects
placed on the floor.
5) Panel interview: - In this method, the applicant is interviewed by more than one
interviewer. A panel of two or more interviewers is formed to interview the candidate.
The interviewers are generally drawn from different fields. They ask questions from their
prospective fields and award marks. These marks are finally consolidated into a panel
score. Panel interviews are normally comprehensive in nature.
6) Computerized interview: - Computerized interviews are slowly gaining momentum in
India. Many organizations are now restoring to this kind of interview to choose suitable
candidates. In this method, the applicant is asked computerized oral questions and his
oral or computerized replies are recorded. Computerized interviews are often used as
preliminary interviews. Those who are successful in the computerized interview are
considered for face-to-face interview.
Errors committed by interviewer:-
Although interviews are used extensively as a selection tool, there has been a debate
going on about the usefulness of interview as an effective predictor of the applicants job
performance. This is because the selection interviews suffer from the following
limitations:-
1) Lack of objectivity: - In interviews, there is always a scope for personal bias and
prejudice, and this may affect the objectivity of the whole exercise. The interviewer may
tend to overemphasize the facts and characteristics with which he is a similar. He may
also inadvertently favor those candidates who are similar to him in personality traits,
qualities, gender, and social background.
 2) Halo effect: - This problem arises when the interviewer attempts to judge the personality
of the interviewee on the basis of a single or a few dominant characteristics. For instance,
an interviewees age, qualification, experience, and striking physical feature may
individually or collectively create a halo effect.
3) Inadequacy of time: - Another criticism of interview is the lack of adequate time to
evaluate the interviewee. It is definitely difficult to assess the skills and traits of the
candidate accurately within such as short duration. This may in turn affect the efficiency
of the interview.
4) Lack of uniformity: - when the interviews for job aspirants are conducted by two or more
interviews, the evaluation of the candidates may not be uniform. This is because the
marks or grades are usually awarded by the interviewers on the basis of their personal
judgment. This can affect the final ranking of the candidates.
5) Absence of training for the interviewers: - The absence of training for the interviewers in
interviewing skills is the important reason for many of these defects in interviews. In fact,
organizations are devoting little time and resources for training their managers in interview
techniques. The inexperience and lack of training may seriously impair the judgment of the
interviewers, making the whole experience useless. Instead of depending too much on
interview techniques, organizations can also develop alternative methods to assess the
presence of critical factors relevant for the successful performance of the applicants in the
jobs offered, if selected.

Q19. In your opinion why the importance of Training and Development has been

increased in last two decades?

Training:

Training is the process of teaching new employees the basic skill they need to perform their job.

Development:

Development provides opportunity to employees to grow his or her expertise and set a career
path.

Before there were no formal training policies or procedures that is one of the reason why the
standard that organization would like employees to adhere are generally not followed. Now there
are formal procedures to train employees as the general training procedure is:

1) Needs analysis
 2) Instrumental design
3) Validation
4) Implementation
5) Evaluation

Nowadays there are many method of training-

On-the-job-training
Apprenticeship Training
Job instruction training
Audio-visual based training
Simulated training
Computer based training
Distance and Internet based training

Of-the-job-training
Case-studies
Management games
Role-plays
Conferences

The main reasons for increasing the importance of training are

Development of multinational company-

Training becomes must when employees have to perform the jobs in the different culture.
Training provides basic background information they need to work in the company. Due to
training programs the employees gets clarity of what to perform when and how to perform.
Training helps employees to learn companys culture and get adjusted in it.

Organization structure is becoming flatterer

The structure is becoming flatterer that means an employee has to perform many different tasks
and that might not be the specialization of the employee. Training helps employees to learn their
roles the different tasks that they have to perform. Development enables managers and
employees to identify their personal and business goals that are most important for the
organizations success.

Q 20. An orientation program is necessary for all the employees, whether they are
having experience or not Justify the statement
Ans:
Definition: Orientation is the process of receiving and welcoming employees when they first
join a company and giving them the basic information they need to settle down quickly and
happily and start work. -Michael Armstrong

Purpose of Employee orientation:

Earlier, organizations depended merely on the printed materials and other impersonal methods to
orient their employees. In fact, organizations were not too concerned about orienting the
employees. However, the changing characteristics of the labor market, the increasing demand for
skilled labour,the availability of simple and appropriate technology for storing and representing
information, and the employees explicit demand for information about the organization have all
forced organizations to pay serious attention to employee orientation. There is also a growing
realization among the organizations that the process of orientation can sustain and improve the
new employees initial enthusiasm.

We shall now see the Important Purposes served by Employee orientation.

A) Formality Welcoming Employees

-Many organizations view orientation programmers as an occasion for the management to
welcome new employees formally and procedurally.
B) Overcoming Initial Uneasiness and Hesitation
-The new employees normally suffer from initial anxiety about the organization. When
this anxiety is not properly handled, it might lead to the formation of negative perception
and eventually cause dissatisfaction and alienation. Orientation could help in quickly
overcoming the initial nervousness and hesitation.
C) Exchanging Information
-Orientation provides a platform for the organization to transfer knowledge about the job,
department, organization and people to the new employees. For instance, the organization
can provide information about the growth prospects available to the employees and also
the training and development programmers undertaken by it for improving their career
prospects. The organization, too, gets to know about the employees, their background and
individual career plans.
D) Assessing Employees
-Although the selection process has already evaluated the training requirements of the
employees, the orientation provides one more opportunity to do so.
 E) Acclimatizing Employees

-Orientation programmers enable the organization to teach the employees the basics of
the job and the safety measures to be adopted, and acquaint them with the other facilities
available in the premises.

F) Controlling the HR Cost

-In the absence of orientation programmers, employees are normally left to learn
everything on their own, and this might push up their learning cost to the organization in
the form of resource wastage and work disturbances. Similarly, when the employees fail
to match their expectation with the reality, they might leave the organization eventually.
This could also increase the HR cost associated with recruitment and selection.

G) Developing the Team Spirit

-When the orientation programmed is conducted for a group of new employees, it helps
in promoting team spirit among the peers. Besides, the ability of each member to work in
a group can also be accessed through mock teamworks in orientation programmes.

H) Socializing Employees

-Socialization refers to inculcating suitable values, standards and beliefs among the
employees so that they integrate themselves not only with the formal organization but
also with the informal groups. Orientation programmes help in developing the necessary
beliefs, values and attitude among the employees which should help the organization in
achieving its core business objectives.

Q.21 Marketing manager of intelligence Pharmaceutical company identify the

performance deficiency in his medical representatives. He came to know the
reasons of deficiency are Lack of technical as well as communication skill /
Q22.Which training programme will you suggest for the medical Representatives?
Why? Explain meticulously.
A medical representative is above all a provider of information to make doctors and other
medical professionals more knowledgeable. Medical representatives bring new products,
devices, and drugs designed to cure and aid a multitude of illnesses and ailments. Without
medical representatives, doctors would not become aware of new advancements in treatments,
more effective drugs, and devices that provide enhanced treatment opportunities.

Skills required for medical representative:

Good communication skill
Convincing power
Network building skill
Technical knowledge of medicines
Patience for waiting period

A large variety of methods of training are used in business. Even within one organization
different methods are used for training different people. All the methods are divided into two
classifications for:
A. On-the-job Training Methods:
1. Coaching
2. Mentoring
3. Job Rotation
4. Job Instruction Training
5. Apprenticeship/assistantship
6. Understudy

B. Off-the-Job Training Methods:

1. Lectures and Conferences
2. Vestibule Training
3. Simulation Exercises
4. Sensitivity Training
5. Transactional Training

Training programmes for medical representatives are combination of on the job training and off
the job training. Training methods for medical representatives can be job instruction training,
coaching, lectures, apprenticeship, video conferencing and role play methods.

Job Instructional Training (JIT):

It is a Step by step (structured) on the job training method in which a suitable trainer (a) prepares
a trainee with an overview of the job, its purpose, and the results desired, (b) demonstrates the
task or the skill to the trainee, (c) allows the trainee to show the demonstration on his or her own,
and (d) follows up to provide feedback and help. The trainees are presented the learning material
in written or by learning machines through a series called frames. This method is a valuable
tool for all educators (teachers and trainers). It helps us:
a. To deliver step-by-step instruction
b. To know when the learner has learned
c. To be due diligent (in many work-place environments)

Apprenticeship: Apprenticeship is a system of training a new generation of practitioners of a

skill. This method of training is in vogue in those trades, crafts and technical fields in which a
long period is required for gaining proficiency. The trainees serve as apprentices to experts for
long periods. They have to work in direct association with and also under the direct supervision
of their masters. The object of such training is to make the trainees all-round craftsmen. It is an
expensive method of training. Also, there is no guarantee that the trained worker will continue to
work in the same organization after securing training. The apprentices are paid remuneration
according the apprenticeship agreements.
Coaching: Coaching is a one-to-one training. It helps in quickly identifying the weak areas and
tries to focus on them. It also offers the benefit of transferring theory learning to practice. The
biggest problem is that it perpetrates the existing practices and styles. In India most of the
scooter mechanics are trained only through this method.

Lecture Method: This method is also called the chalk-and talk method. It is a traditional
method of imparting knowledge to a large number of trainees at the same time. It is a verbal form
of delivering information in a classroom environment. This method is appropriate when a large
amount of information is to be providing within a limited span of time.
These merits of this method are: (1) It an easy, simple and quick method to share information
with a large chunk of trainees. (2) It is usually an economical method as the cost of training is
distributed among several trainees, thereby reducing the cost per trainee.

Role-playing: Role-playing refers to acting out a particular role. This method is simply the
learning by doing technique. The trainee, instead of merely listening to the trainers instructions
regarding the ways and means of solving a problematic situation or discussing them, responds to
that particular problem by acting out real-life situation.

Video-conferencing: This is one of the distance learning methods for training. It is best suited
when the trainer and the trainees are separated geographically. It allows people in one location to
communicate live via audio-visual aids with people in another city, country, or with groups in
several cities.

Q.23 Explain on the job and off the job training in detail. Explain any two
traditional training methods with advantages and disadvantages?

A large variety of methods of training are used in business. Even within one organization
different methods are used for training different people. All the methods are divided into two
classifications for:
A. On-the-job Training Methods:
1. Coaching
2. Mentoring
3. Job Rotation
4. Job Instruction Training
5. Apprenticeship
6. Understudy

B. Off-the-Job Training Methods:

1. Lectures and Conferences
2. Vestibule Training
3. Simulation Exercises
4. Sensitivity Training
5. Transactional Training

(A). On-the-job training Methods:

Under these methods new or inexperienced employees learn through observing peers or
managers performing the job and trying to imitate their behaviour. These methods do not cost
much and are less disruptive as employees are always on the job, training is given on the same
machines and experience would be on already approved standards, and above all the trainee is
learning while earning. Some of the commonly used methods are:

1. Coaching: Coaching is a one-to-one training. It helps in quickly identifying the weak areas and
tries to focus on them. It also offers the benefit of transferring theory learning to practice. The
biggest problem is that it perpetrates the existing practices and styles. In India most of the
scooter mechanics are trained only through this method.

2. Mentoring: The focus in this training is on the development of attitude. It is used for
managerial employees. Mentoring is always done by a senior inside person. It is also one-to- one
interaction, like coaching.

3. Job Rotation: It is the process of training employees by rotating them through a series of
related jobs. Rotation not only makes a person well acquainted with different jobs, but it also
alleviates boredom and allows to develop rapport with a number of people. Rotation must be
logical.

4. Job Instructional Training (JIT): It is a Step by step (structured) on the job training method in
which a suitable trainer (a) prepares a trainee with an overview of the job, its purpose, and the
results desired, (b) demonstrates the task or the skill to the trainee, (c) allows the trainee to show
the demonstration on his or her own, and (d) follows up to provide feedback and help. The
trainees are presented the learning material in written or by learning machines through a series
called frames. This method is a valuable tool for all educators (teachers and trainers). It helps
us:
a. To deliver step-by-step instruction
b. To know when the learner has learned
c. To be due diligent (in many work-place environments)

5. Apprenticeship: Apprenticeship is a system of training a new generation of practitioners of a

skill. This method of training is in vogue in those trades, crafts and technical fields in which a
long period is required for gaining proficiency. The trainees serve as apprentices to experts for
long periods. They have to work in direct association with and also under the direct supervision
of their masters. The object of such training is to make the trainees all-round craftsmen. It is an
expensive method of training. Also, there is no guarantee that the trained worker will continue to
work in the same organization after securing training. The apprentices are paid remuneration
according the apprenticeship agreements.
6. Understudy: In this method, a superior gives training to a subordinate as his understudy like an
assistant to a manager or director (in a film). The subordinate learns through experience and
observation by participating in handling day to day problems. Basic purpose is to prepare
subordinate for assuming the full responsibilities and duties.

Advantages:
Low cost - does not require the development of potentially expensive training materials
or classroom/computer-based instruction.
Task-based - Since OJT is performed at the work area, training tends to be focused on
performing real job tasks.
Well suited for small groups - OJT is often the most practical training method when you
only need to train one or two employees at a time.

Disadvantages:
Inconsistent - Traditional OJT relies heavily on an experienced employee to provide the
instruction based on what they feel is the most important topics. What is important to one
employee may not be important to another. The result is what is learned may vary greatly,
depending on who is assigned as the trainer.
Incomplete - Without a structured lesson guide, OJT trainers often forget to cover
important information. What is learned is likely to be based on what happened that day rather
than on what a new employee needs to know to be safe and productive.
Lack of founding principles - While the hands-on aspect of OJT may appeal to the
practical learner, often the underlying theories of operation are not covered in sufficient detail
or accuracy. Without this foundation of knowledge, trainees often learn what to do, not why
they are doing it, resulting in poor decision making when things don't go exactly right.
 Bad habits - The trainee observes and may adopt the trainer's habits and attitudes about
all aspects of the job including safety, quality, customer service, and relationship with
management. Poorly selected trainers can have many unintended consequences.

(B). Off-the-job Training Methods:

Off-the-job training methods are conducted in separate from the job environment, study material
is supplied, there is full concentration on learning rather than performing, and there is freedom of
expression. Important methods include:

1. Lectures and Conferences: Lectures and conferences are the traditional and direct method of
instruction. Every training programme starts with lecture and conference. Its a verbal
presentation for a large audience. However, the lectures have to be motivating and creating
interest among trainees. The speaker must have considerable depth in the subject. In the colleges
and universities, lectures and seminars are the most common methods used for training.

2. Vestibule Training: Vestibule Training is a term for near-the-job training, as it offers access to
something new (learning). In vestibule training, the workers are trained in a prototype
environment on specific jobs in a special part of the plant.An attempt is made to create working
condition similar to the actual workshop conditions. After training workers in such condition, the
trained workers may be put on similar jobs in the actual workshop
3. Simulation Exercises: Simulation is any artificial environment exactly similar to the actual
situation. There are three basic simulation techniques used for imparting training: management
games, case study, role playing, and in-basket training.
(a) Management Games:
Properly designed games help to ingrain thinking habits, analytical, logical and reasoning
capabilities, importance of team work, time management, to make decisions lacking complete
information, communication and leadership capabilities. Use of management games can
encourage novel, innovative mechanisms for coping with stress.
Management games orient a candidate with practical applicability of the subject. These games
help to appreciate management concepts in a practical way. Different games are used for training
general managers and the middle management and functional heads executive Games and
functional heads.

(b) Case Study: Case studies are complex examples which give an insight into the context of a
problem as well as illustrating the main point. Case Studies are trainee centered activities based
on topics that demonstrate theoretical concepts in an applied setting.
A case study allows the application of theoretical concepts to be demonstrated, thus bridging the
gap between theory and practice, encourage active learning, provides an opportunity for the
development of key skills such as communication, group working and problem solving, and
increases the trainees enjoyment of the topic and hence their desire to learn
(c) Role Playing: Each trainee takes the role of a person affected by an issue and studies the
impacts of the issues on human life and/or the effects of human activities on the world around us
from the perspective of that person.
It emphasizes the real- world side of science and challenges students to deal with complex
problems with no single right answer and to use a variety of skills beyond those employed in a
typical research project

4. Sensitivity Training: Sensitivity training is also known as laboratory or T-group training. This
training is about making people understand about themselves and others reasonably, which is
done by developing in them social sensitivity and behavioral flexibility. It is ability of an
individual to sense what others feel and think from their own point of view.
It reveals information about his or her own personal qualities, concerns, emotional issues, and
things that he or she has in common with other members of the group. It is the ability to behave
suitably in light of understanding.

5. Transactional Analysis: It provides trainees with a realistic and useful method for analyzing
and understanding the behavior of others. In every social interaction, there is a motivation
provided by one person and a reaction to that motivation given by another person.
This motivation reaction relationship between two persons is known as a transaction.
Transactional analysis can be done by the ego (system of feelings accompanied by a related set
of behaviors states of an individual)

Advantages:

1. Experts in their field would cover these courses, and this would mean that training for
staff members would be taught to a reasonable standard.

2. As the courses are held externally, our company would not have added costs incurred as a
result of extra equipment or additional space.

3. Sending an employee on a course could help to make an employee feel more valued as they
would feel as if they are receiving quality training.

4. As many courses or seminars invite employees from other companies to attend, this would
allow employees to network and perhaps drum-up business.

Disadvantages:
1. As there is no real way to know the abilities both as a trainer and their subject knowledge of
the people delivering the external training courses, there is no guarantee that sufficient skills of
knowledge will be transfers or valuable.

2. The different learning speeds of individuals who are usually forced to progress at compromise
rate.
3. Not all the learners will be starting at the same knowledge or skill level and there is a risk that
those starting at the lowest levels, if account is not taken of this, will be lost from the start.

Q - 24. Explain the 5 step training and development process?

Ans:

Changes in the internal and external situations are inevitable and thus training becomes a
continuous process. The general purpose of any training process is to train employees to be able
to look for and respond to changes in successful way. There steps have been explained briefly as
follows:

Determination of the Training Needs

The first step in developing a training program is to identify and assess needs. Employee
training needs may already be established in the organizations strategic, human resources or
individual development plans. In fact, there are several sources available to an organization
to assess its training need(discussed earlier under the section, Assessing Training
Needs).generally, to recognize the training needs of the employees, an analysis at one or
more of the following three levels is undertaken.

Development of the training objectives

 The training needs assessments (organizational, task & individual) will identify any gaps in
your current training initiatives and employee skill sets. These gaps should be analyzed and
prioritized and turned into the organizations training objectives. The ultimate goal is to
bridge the gap between current and desired performance through the development of a
training program. For instance, abstract goals stated in emotional terms like improving
satisfaction and reducing anger are usually difficult to measure and thus render it almost it
almost impossible to measure the effect of the training programmes accurately.

Identifying the trainer

Once the training method has been decided, the next important step is selecting and training
the trainers for the programmes. This is a critical step because the success of the whole
training effort relies greatly upon the competency and ability of the trainers. The tasks of
designing, organizing, implementing and pre- and post- assessment of the training process
are usually entrusted only to these trainers.

Implementing the training program

Once the training methods and trainers have been decided, the next step is the step is the
actual implementation of the training programme.for successful implementation, some of
the prerequisites are the convenience of the location, the comfortableness of the training
facilities, the quality and adequacy of the provided materials, and the timing and duration of
the programme.similarly, frequent interaction between the trainers and trainees can also
been encouraged to ensure their involvement in the training process.

Evaluation of the training program

This is the final step in an employee training process. For an effective evaluation, it is
essential to pre-assess the attributes to be emphasized in the training like the knowledge,
skills and attitude of the employees ahead of the training programme. Understandably, an
evaluation of these attributes after the training will facilitate a meaningful comparison to
determine the effectiveness of the training programme. The absence of such facilities for
comparison will make it difficult to evaluate the utility of the training programme for the
trainees. Hence, it is imperative that the training efforts be documented to demonstrate that
training provides a valuable service.

Q 25. What is Management Development and write two types of methods which
are used for developing managers.
Management Development is any attempt to improve managerial performance by imparting
knowledge, changing attitudes, or increasing skills
The management development programmes can also be classified on the job and off the job
management development techniques. Methods are as follow

Mentoring
Business games
Coaching
Behavior modeling
In-basket training
Action learning
University based programmes
Executive coaches : (It is a programme of one-to-one collaboration between a certified
external coach and a manager. Through executive coaching, the manager improves his or
her leadership skills, gains new perspectives and reaches maximum potential)
In-house development centers
Executive orientation (Orientation is an initial training effort to inform the new managers
about the company, the job and the work group.
This technique is adopted to assist the new managers in learning the firms structure,
culture and practices quickly.)

Q - 26. Steps In Strategic Management Process.

The strategic management process is a six-step process that encompasses strategic

Planning, implementation, and evaluation.

Step 1: Identifying the Organizations Current Mission, Objectives, and Strategies

1. Every organization needs a mission, which is a statement of the purpose of
an organization. The mission statement addresses the question: What is the
organizations reason for being in business?
2. The organization must identify its current objectives and strategies, as
 well.
Step 2: External Analysis
1. Managers in every organization need to conduct an external analysis.
Influential factors such as competition, pending legislation, and labor
supply are included in the external environment.
2. After analyzing the external environment, managers must assess what they
have learned in terms of opportunities and threats. Opportunities are
positive trends in external environmental factors; threats are negative
trends in environmental factors.
3. Because of different resources and capabilities, the same external
environment can present opportunities to one organization and pose threats
to another.
Step 3: Internal Analysis
1. Internal analysis should lead to a clear assessment of the organizations
resources and capabilities.
2. Any activities the organization does well or any unique resources that it
has are called strengths.
3. Weaknesses are activities the organization does not do well or resources it
needs but does not possess.
4. The organizations major value-creating skills and capabilities that determine
its competitive weapons are the organizations core competencies.
5. Organizational culture is important in internal analysis; the companys culture
can promote or hinder its strategic actions.
6. SWOT analysis is an analysis of the organizations strengths, weaknesses,
opportunities, and threats.
Step 4: Formulating Strategies
1. After the SWOT, managers develop and evaluate strategic alternatives and
select strategies that are appropriate.
2. Strategies need to be established for corporate, business, and functional
levels.
Step 5: Implementing Strategies
1. A strategy is only as good as its implementation.
Step 6: Evaluating Results
1. How effective have the strategies been? Are adjustments necessary?

Q 27. What is performance appraisal and describe graphic rate scale method.
Paired comparison method and BARS of performance appraisal.
Definition-Performance Appraisal is a systematic, perodic and impartial rating of an
employees excellence in matters pertaining to his present job and his potential for a better job

PerfomanceEvaluation method

a. Cost benefit Essay

b. Rating scale-Ranking
c. Paired comparison-Forced distribution
 d. forced choice-Critical incident
e. 360-feedback-Result-based evaluation
f. Work standard-Checklist
g. Confidential report(CR)-filed review
Graphic Rating Scale:
In this method, employees are rated according to pre-specified factors.
Evaluators record their assessment of the performance of the employees on a
rating scale.
A scale actually lists a group of traits and a range of performance expected for
each trait.
The supervisor evaluates an employee by circling, in the evaluation form, a scale
of each factor that best describes his or her performance.

Paired Comparison:

In this method, two employees of a group are considered as a unit or pair.

On the basis of predetermined criteria, such as total performance, one employee is
compared to another.
The process of comparing a pair of employees continues until all the employees
have been compared.
Finally, the employee with the greatest number of favourable responses in inter-
person comparison gets the highest ranking.
BARS: (Behaviourally Anchored Rating Scale)
In this method, the different performance levels of employees are shown by the side
of the scale, with each level described in terms of specific behavioural example,
either good or bad performance.
This method specifies the various dimensions to be rated in behavioural terms and
makes use of critical incidents to explain the various levels of performance.
It helps the evaluators with a uniform frame of reference for evaluating the
employees.

Steps in BARS

Developing critical incidents.

Formulating performance dimensions.
Reassigning the incidents.
Rating the incidents.
Evolving a final instrument

Q - 28. Define the performance appraisal. List out the advantages and disadvantages of
various appraisal tools/Q 31. What is performance appraisal? Explain the process of
appraisal in detail along with different techniques of performance appraisal which can be
used in company.

Performance appraisal is one of the crucial steps in the process of HRM. Through Performance
appraisal an organization seeks to know what is done by an employee. Performance appraisal is
concerned with the evaluation of the individual and group performance of the employee of an
organization. Performance appraisal is a systematic, periodic and impartial rating of an
employees excellence in matters pertaining to his present job and his potential for a better job.

Advantages of Performance appraisal :

An organization may have several reasons to appraise its employee. For instance, HR managers
require performance appraisal to provide feedback, support the Performance enhancement drive,
make valid decision, justify termination, recognize training and development needs and defend
any personnel decisions.

1. Human resource planning:

HR planning involves forecasting and determining the manpower requirements of an

organization to meet its strategic goals. With the help if a Performance appraisal, the
organization can assess its available manpower effectively and plan its future HR programmes
based on the anticipated labour requirement.

2. Recruitment and selection:

The purpose of any selection tool is predict the likely Performance of candidates when offered
jobs. The scores from the various selection devise administered to candidate at the time of
selection are usually correlated at a later stage with their actual job performance to determine the
efficacy and validity of the selection tools.

3. Employee training and development:

Performance appraisal can easily identify a workers specific needs for training. This is because
shortages in performance are usually the direct outcome of the absence of adequate knowledge or
skills on the part of the workforce. In fact, Performance appraisal result can be used to decide
whether an employee or group of employee will require additional training and development.

4. Compensation decision:

Performance appraisal provides reliable information for determining the pay scale of the
employee. In fact, compensation decisions, to varting degree are based on the result of an
employees Performance appraisal.
 5. Career planning and development:

Performance appraisal is useful in determining the career plans of employees. Any organization
would like to promote only the best qualified employees to the higher level. Performance
appraisal data is vital in evaluating an employees strengths and weaknesses and also in deciding
the employees potential.

6. Grievance and Discipline Issue:

Performance appraisal information is also used frequently for decisions relating to promotion,
demotion, termination, layoff and transfer. Performance appraisal result can be used to initiate
the necessary action against incompetent employees faring poorly in the Performance appraisal,
provide a process of evaluation is flawless and standard

7. Feedback

Employees are usually interested in knowing the result of the Performance appraisal. This is
because they may be curious to know how well they are performing at present and how much
improvement is required to attain the desired performance.

Disadvantages of Performance appraisal

1. The Halo effect:

Halo effect is defined as the influence of a raters general impression on ratings of specific rate
qualities. It tends to occur when an evaluation rates an employee high on all jobs criteria, even if
he has performed well only in one area.

2. Contrast error:

The rating is always based on performance standards. The contrast error occurs when employee
is rated without taking into account the performance standard. This can also occur if a rater
compares an employees present performance with their past performance.

3. Rater bias:

The raters prejudices and biasness can also influence rating. For example, a supervisor can
underrate an employee based on race, sex, religion, appearance and favouritism.

4. Central tendency error:

When the supervisor rates all the employees within a narrow range, thinking all employees are of
average level, this type of error occurs.

5. Leniency or severity:

Performance appraisal demands that the rater should objectively draw a conclusion about
employees performance.

6. Sampling error:

If the rater uses a very small sample of the employees work, it may be subject to sampling error.

7. Primary and regency errors:

Behavior of an employee at the initial stage of rating and at the end of appraisal can affect the
rating. For example, a salesmans performance may be very low for some part of the year.

Meaning and definition of performance appraisal:

Performance refers to the degree of accomplishment of the task that make up an individuals job.
It indicates how well an individual is fulfilling the job demands. Often the term is confused with
effort, which means energy expended, and used in a wrong sense. Performance is always
measured in terms of results.

According to mondy et al., performance appraisal is a system of review and evaluation of an

individuals performance.

Tools or methods of performance appraisal:-

1. Traditional methods
i) Graphic rating scales
ii) Straight ranking method
iii) Paired comparison method
iv) Critical incident method
v) Group appraisal
2. Modern methods
i. Assessment centers
ii. 360-degree PA
iii. Behaviorally anchored rating scale(BARS)
iv. Management by objective(MBO)
v. Psychological appraisals
vi. Human resource accounting
Advantages & disadvantages of performance appraisal tools:-

1) graphic rating scales:-

Advantages:-

a) They are practical and less expensive

b) Easy to understand and implement

Disadvantages:-

a) Graphic rating scales also fail to provide a good mechanism for providing specific, non
threatening feedback.
b) This method offers little protection from rating errors, such as leniency, severity, central
tendency, and halo errors.

2. Graphic Rating method:-

Advantages

a) It is quite easy for the appraiser to rank a large number of people because the name of
all the people in question were written on the left side randomly and the appraiser had to
simply select the most efficient person and write his name on the right side.
b) This is one of the oldest and simplest technique of performance appraisal.

Disadvantages:-

a) It involves bias and snap judgment because appraisal is not based on specifically
defined measures of job related performance.
b) Ranking of individuals having varying behavior patterns or traits is difficult especially
when a large number of persons are to be rated.

3. Paired comparison method:-

Advantages:-

a) This technique is effective because the comparison of performance is done on the basis of
traits.
b) This technique is quite simple because the evaluator has enough freedom to decide the
grades according to his own choice.

Disadvantages:-

a) It is quite time consuming and therefore found to be unsuitable for groups having a
large number of people
b) It is also not possible to defend or justify the result.
4 .Critical incident method:-

Advantages

a) The approach has description in support of particular waiting of an employee.

b) Giving job related feedback is also easy
c) The approach can increase the chances that this subordinates will improve

Disadvantages

a) It is very time consuming and cumbersome for the superior to maintain a written record
for each employee during every major event
b) Subjective judgement of supervisor is involved in deciding critical incident and desirable
response to an event.

5. Group appraisal:-

Advantages:-

a) The scope of group appraisal is enlarged because they also discuss the causes of low
level of performance and offer suggestion for improvement
b) This method eliminates the scope any bias and is quite simple

Disadvantages:-

a) Performance appraisal by a group is quite a time consuming cast because the evaluator
has to devote a lot time to other group members explaining to them details about the
employees and their performance

Q 29."Performance Appraisal should be multifaceted. Supervisors should evaluate their

employees, and employees should be able to evaluate their supervisors and customers should
evaluate them all"- Explain

360-degree feedback is a systematic collection and feedback of performance data on an

individual or group derived from a number of the stakeholders on their performance- P. Ward
 In this method all those who interact with an employee in any capacity will prepare
an evaluation report on him or her.
Senior managers, supervisors, employees, peers, team members, internal or external
customers and even the employees themselves evaluate the performance.
360-degree feedback method aims at ensuring an objective and comprehensive
evaluation of a persons performance.

Q30. What is Competency- based pay and explain why it is used in an

organization.
What is a competency-Based pay?

Competency based pay: Where the company pays for the employees range, depth,and types of
skills and knowledge rather than for the job title he or she holds.

Competencies: Demonstrable characteristics of a person, including knowledge, skills and

behavior that enable performance.

Different organizations define competencies in somewhat different ways. Most, like

the U.S.office of personnel management, use competencies synonymously with the
knowledge, or skills, or abilities required to do the job.

Another approach is to express competencies somewhat more narrowly, in terms of

measurable behaviors, such as design a web site. Here, you would identify the jobs
required competencies by completing the phrase, in order to perform this job
competently; the employee should be able to. We can simply define competencies as
demonstrable knowledge, skills, and behaviors that enable performance.

Why Use Competency- Based pay:-

Why pay employees based on the skill, knowledge, or competency level they achieve,
rather than based on the duties of the jobs they` re assigned to?
Example, why pay an accounting clerk III who has achieved a certain mastery of
accounting techniques the same someone who is an accounting clerk iv? There are three
good reasons for doing so.

Support high- performance work systems:-

First, traditional pay plans may actually backfire if a high- performance work system is
your goal.
 The whole thrust of these systems is to encourage employees to work in a self-motivated
way by organizing the work around teams, by encouraging term members to rotate freely
among jobs by pushing more responsibility for things like day-to-day supervision down
to the workers, and by organizing work around projects or processes where jobs may
blend or overlap.

In such systems, you obviously want employees to be enthusiastic about learning and
moving among other jobs.

Pigeonholing workers by classifying them too narrowly into jobs based on the jobs
points may actually discourage such enthusiasm and flexibility.

Studies suggest that analytical types of job evaluation may conflict with the high-
performance work approach.
The less quantitative job evaluation methods such as classifying, grading, or ranking jobs
didnt seem to be a problem.

Support Strategic Aims:-

Second, paying for skills, knowledge, and competencies is more strategic.

Example: canon corp. needs competencies in miniaturization and precision

manufacturing to design and produce its cameras and copiers.

It thus makes sense for canon to reward some employees based on the skills and
knowledge they develop in these two strategically crucial areas, not just based on the jobs
to which they `re assigned.

Support Performance Management:-

Performance management means aligning employees goals, training, appraisals, and

rewards so that they support the company strategic goals.

The manager can influence an employee`s competencies.

There is not much a manager can do to manage the employees job duties.

So, paying for competencies rather than duties thus gives the employer more control over
managing the employees performance.

At canon, this might mean training, appraising, and paying some employees based on
their miniaturization and precision manufacturing competencies.
Competency-Based Pay in Practice:-

System for defining specific skills, and a process for tying the persons pay to his
or her skill level.

Training system that lets employees seek and acquire skills.

Formal competency testing system

A work design that lets employees move among jobs to work assignment
flexibility.

According to competency based pay, an employee is paid for the skills and knowledge he
possesses and not according to the job or position he is currently holding.

Used in an Organization This is the basic salary received by the employee as a direct
compensation for the work done by him
It is suitable in organizations where there is an over emphasis on outputs, fit with a
performance appraisal is required, cultural change towards greater flexibility is sought.
The basic pay in a compensation package actually reflects the worth of a job determined
through job evaluation.
Generally the policy of an organization and the external lab our market conditions
influence the determination of the basic pat for a job.
Q 32. Is the system of pay for performance acceptable? And also explain their different
employee incentive plan/38. Explain Merit pay as an incentive. What are the financial
and non financial incentives to an employee? Explain in detail various types of incentive
plans.
Employees usually get wage incentives in addition to their base salary in the
organization.
Wage incentive enables an organization to present challenges and rewards.
Primary purpose of providing wages incentives is to hence the organization
performance and employee productivities.
When the rewards offered as a part of the incentive program do not feel the exact
need.
Individual Incentive Plans
1. Piecework Plans
The worker is paid a sum (called a piece rate) for each unit he or she produces.

Straight piecework

Standard hour plan

Pros and Cons of Piecework

Easily understandable, equitable, and powerful incentives

Employee resistance to changes in standards or work processes affecting output

Quality problems caused by an overriding output focus

Possibility of violating minimum wage standards

Employee dissatisfaction when incentives either cannot be earned or are

withdrawn
2. Merit Pay (based on merit/performance)
A permanent cumulative salary increase the firm awards to an individual
employee based on his or her individual performance.
Merit Pay Options
 Annual lump-sum merit raises that do not make the raise part of an employees
base salary.
Merit awards tied to both individual and organizational performance.

3. Incentives for Professional Employees

Professional employees are those whose work involves the application of learned
knowledge (technical) to the solution of the employers problems.
Lawyers, doctors, economists, and engineers

Possible Incentives
Bonuses, stock options, profit sharing

Better vacations, more flexible work hours

Improved pension plans

Equipment for home offices

4. Recognition-Based Awards

Recognition has a positive impact on performance, either alone or in conjunction

with financial rewards.
Day-to-day recognition from supervisors, peers, and team members is important.

Ways to Use Recognition

Social recognition

Performance-based recognition

Performance feedback

5. Online Award Programs

Programs offered by online incentives firms that improve and expedite the awards
process.
Broader range of awards

More immediate rewards

6. Information Technology and Incentives

Enterprise incentive management (EIM)
 Software that automates planning, calculation, modeling, and management
of incentive compensation plans, enabling companies to align their
employees with corporate strategy and goals.
Incentives for Salespeople
Salary Plan
Straight salaries (fixed salaries)

Best for: prospecting (finding new clients), account servicing, training

customers salesforce, or participating in national and local trade shows.
Commission Plan
Pay is a percentage of sales results.

Keeps sales costs proportionate to sales revenues.

May cause a neglect of nonselling duties.

Can create wide variation in salespersons income.

Likelihood of sales success may be linked to external factors rather than to

salespersons performance.
Can increase turnover of salespeople.

Combination Plan
Pay is a combination of salary and commissions, usually with a sizable salary
component.
Plan gives salespeople a floor (safety net) to their earnings.

Salary component covers company-specified service activities.

Plans tend to become complicated, and misunderstandings can result.

Specialized Combination Plans

Commission-plus-Drawing-Account Plan
Commissions are paid but a draw on future earnings helps the salesperson to get
through low sales periods.
Commission-plus-Bonus Plan
Pay is mostly based on commissions.

Small bonuses are paid for directed activities like selling slow-moving items.
Team/Group Incentive Plans
Team (or Group) Incentive Plans
Incentives are based on teams performance.

How to Design Team Incentives

Set individual work standards.

Set work standards for each team member and then calculate each members
output.
Members are paid based on one of three formulas:

All receive the same pay earned by the highest producer.

All receive the same pay earned by the lowest producer.

All receive the same pay equal to the average pay earned by the group.

Pros
Reinforces team planning and problem solving

Helps ensure collaboration

Encourages a sense of cooperation

Encourages rapid training of new members

Cons
Pay is not proportionate to an individuals effort

Rewards free riders

Organization-wide Incentive Plans

Profit-Sharing Plans
Cash plans

Employees receive cash shares of the firms profits at regular intervals.

The Lincoln incentive system

Profits are distributed to employees based on their individual merit rating.

Deferred profit-sharing plans

 A predetermined portion of profits is placed in each employees account
under a trustees supervision.
Employee Stock Ownership Plan (ESOP)
A firm annually contributes its own stockor cash (with a limit of 15% of
compensation) to be used to purchase the stockto a trust established for the
employees.
The trust holds the stock in individual employee accounts and distributes it to
employees upon separation from the firm if the employee has worked long
enough to earn ownership of the stock.
Advantages of ESOPs
The Company
Can take a tax deduction equal to the fair market value of the shares transferred to
the ESOP trustee.
Gets an income tax deduction for dividends paid on ESOP-owned stock.

Can borrow against ESOP in trust and then repay the loan in pretax rather than
after-tax dollars.
Employees
Develop a sense of ownership in and commitment to the firm.

Do not pay taxes on ESOP earnings until they receive a distribution.

Shareholders of Closely-Held Corporations

Can place assets into an ESOP trust which will allow them to purchase other
marketable securities to diversify their holdings.
Incentives for Managers and Executives Short-Term Incentives: The Annual Bonus
Plans that are designed to motivate short-term performance of managers and are
tied to company profitability.
Issues in Awarding Bonuses
Eligibility basis

Fund size basis

Individual awards

Incentives for Managers and Executives Long-Term Incentives

 Cash

Stock options

Stock appreciation rights

Performance achievement plans

Restricted stock plans

Phantom stock

Golden parachutes

Guaranteed loans
Q - 33. Errors of performance appraisal

Central Tendency

Central tendency refers to rating employees as average, This problem occurs when the
Evaluator Lends to place the majority of employees in the average or middle of the scale
without any Justification. The evaluator resorts to this middle path especially when he is
required to provide a written justification for extremely high or low ratings,
Understandably,
This defect usually undermines the usefulness of the evaluation for deciding the
promotion, reward and development of the employee.

Leniency

This problem occurs when the evaluator awards unjustifiably high ratings to
employees.
When the evaluator desires to stay clear of any controversy over the evaluation, he
may adopt this behavior, For instance, sometimes, the process may require the
evaluator to
Share the evaluation results with the employees. Again, the purpose of evaluation can
also
Cause extreme attitudes like leniency or strictness. For example, while appraising
employees
for administrative reasons such as pay hikes, a superior may be inclined to be more
lenient
Than when evaluating performance achieve employee development. 42 In rare cases,
the
Supervisor can also be excessively critical of an employees work performance. This
too can affect the fairness of the whole exercise.
Biasness

When the evaluator is too concerned about the personal characteristics of the employees
without focusing on the real performance, there is a real possibility of a bias in the
Evaluation. In fact, this problem surfaces when the supervisors allow individual
differences such
As gender, race or age to affect the ratings they give. Certainly, any biased behaviour will
have an adverse influence on the outcome of the evaluation, thereby affecting the
objectivity
And fairness of the evaluation. Studies have confirmed that biases account for the biggest
percentage of the observed variance in performance evaluations.

Redundancy Effects

It refers to a time immediately before the present. Recency effects occur in an evaluation
This kind of recent events may have an unbalanced impact on the evaluators at the time
The evaluation process is distorted by the events happening just before the evaluation this
can be compared to a black dot on an otherwise plain paper. When the
employees know the timing of the performance review, they may tend to present their
best
Behavior and improved productivity just ahead or the scheduled evaluation. For instance,
average annual performance and influence the evaluator.

Q - 34. Explain 90,180 and 360 degree appraisal.

90 degree = one person review (self or another, e.g., the boss)

180 degree = two person review (self and boss)

360 degree = four person review (self, boss, peers, and direct reports)

Many firms expand the idea of upward and peer feedback into 360 degree feedback

Here ratings are collected all around an employee, from supervisors, subordinates,
peers and internal or external customers

Employers generally use feedback for development rather than for pay increases

Most 360 degree feedback systems contain several common features. Appropriate parties-
peers, supervisors, subordinates and customers for instance, complete survey on an
individual
 Survey often includes items such as return phone calls promptly, listens well or my
manager keeps me informed

Computerized and web-based systems then compile this feedback into individualized
reports, just for the rates. They then meet with their own supervisors and sometimes with
their subordinates and share the information they feel is pertinent for self-improvement

Some doubt the practicality of 360 degree feedback. Employee usually do these reviews
anonymously so those with an ax to grind can misuse them

A Dilbert cartoon, announcing their evaluations by coworkers will help decide raises,
has one character asking, If my coworkers got small raises, wont there be more
available in the budget for me?

So 360 degree appraisal is the subject to debate. One study found significant correlations
between (1) 360 degree ratings(by peers and managers) and (2) conventional
performance rating

Anchoring 360 degree appraisals with behavioral competencies improves the ratings
reliability. But another study concluded that multi-source feedback leads to generally
small performance improvements on subsequent ratings. And the consulting firm
Watson wyatt found that companies using 360 degree type feedback have lower market
value(in terms of stock price),perhaps due in part of the methods complications

The use of 360 degree appraisals seems to be diminishing. Some firms, like GE, backed
off from using it. Some found the paperwork overwhelming; others found that some
employees colluded with peers. But others still argue that progressive executives
welcome 360 degree feedback; by laying themselves open to praise and criticism from
all directions and inviting others to do the same, they guide their organizations to new
capacities for continuous improvement.

Q - 35 Compare and contrast the method of job evaluation ranking and paired comparison
method.

The Ranking Method

This is one of the oldest and easiest methods of evaluation the employees. Each employee is
ranked by the evaluated on the basis of their relative worth to the organization, as compared to
other employee. Each evaluated employee secures a place in a ranking order raining from
topmost to the selected characteristics. In brief, best employee in the list is ranked the highest,
and the poorest one is at the bottom for the same traits.

Thought this method enjoys the benefits of ease of administration and explanation. It suffers
from several defects. For instance, it provides scope for the evaluators bias and prejudice. This
could be due to halo and regency effects. Besides, it is not very suitable for evaluation involving
a large number of persons. Nor can this method be ideal when the employee have dissimilar
behavioral qualities.

Paired comparison method

This method is only a variant of the ranking method but its ranking system is generally superior.
In this method, two employees of a group are considered as a unit or pair. On the basis of
predetermined criteria such as total performance, one employee is compared with another. This
process of comparing a pair of employee continues till all the employees have been compared.
Finally, the employee with the greatest number of favorable responses in inter-person
comparison gets the highest ranking. This method can be illustrated better with a numerical.

Maximum number of pairs = {N(n-1)}/2

In the given example, the maximum number of paired will be..

{6(6-0)}/2 =15

This maximum number of pairs indicated the maximum possible alternative comparisons. A
worker who emerges better than other in as many comparisons yields the best score. However,
the major defect of this method is that it may not be appropriate when a large number of
employees are to the compared in a short span of time.

Q.36 Explain point comparison method of job evaluation.

Point Comparison-It is one of the quantitative methods in job evaluation. The worth of a job is
determined on the basis of the extent of some defined factors in that job. The following steps are
taken in the point ranking method:

Step 1. Determine clusters of jobs to be evaluated

Step 2. Collect job information
Step 3. Select compensable factors
 Step 4. Define compensable factors
Step 5. Define factor degrees
Step 6. Determine relative values of factors
Step 7. Assign point value to factors and degrees
Step 8. Write the job evaluation manual
Step 9. Rate the jobs
Merits of this method
1. It is more objective and accurate than non-analytical methods.
2. It is usually more convincing to employees in accepting pay-scale developed by the
organization.
Demerits of this method
1. It is complex and time consuming process to develop weights and points for the
compensable factors.
2. It may not be ideal for jobs which require more of non-quantifiable traits like mental
dexterity or acumen.

Q 37 Enlist various method of Job Evaluation and Explain any two thereof?

Ans. Methods of Job Evaluation:-

Job evaluation methods are usually classified into analytical and non analytical methods. The
analytical job evaluation methods are point ranking method and factor comparison method. The
non analytical methods are ranking method paired comparison method, job grading method and
market pricing. We shall first discuss the analytical method of job evaluation.

Analytical Methods:-

In analytical job evaluation jobs are compared on the basis on the few well defined factors. The
presence or absence of these factors in a job determines its worth in the organizations. We shall
now discuss the analytical job evaluation methods.

1) Point Ranking

It is one of the quantitative methods in job evaluation. In the method, the worth of a job is
determine on the basis of the extent of the present of some define factor in that job. These factors
are usually called compensable factors. They may include any key factors like skills, knowledge
or efforts that are compensable in the monetary terms. The following steps are taken in the point
ranking method:

1 The evaluators first determine the factors to be evaluate and then assign point for each of the
factors, depending upon it importance.

2 After that they evaluate each job against these compensable factors and award appropriate
points.
3 The jobs with a high concentration of these compensable factors get higher points

4 Finally these points are aggregated for each jobs and, based on the overall scores, jobs are
ranked.

The efficiency of the point ranking method depends critically on determining the compensable
factors and assigning point to each of these. The evaluators may assign more weightage to some
factors if they consider them as decisive for the performance of the jobs. They may also decide
on different factors for different jobs. Similarly, they may attach different weightage to different
compensable factors, education, experience, working condition, physical or mental efforts,
responsibility, work hazards and mental stress are few examples of the compensable factors.

2) Factor Comparison
Factor Comparison Job Evaluation Methods steps are as follow
Step 1. Obtain job information
Step 2. Select key benchmark jobs
Step 3. Rank key jobs by factor
Step 4. Distribute wage rates by factors
Step 5. Rank key jobs according to wages
assigned to each factor
Step 6. Compare the two sets of rankings to screen out unusable key jobs
Step 7. Construct the job-comparison scale
Step 8. Use the job-comparison scale

Factor comparison is quantitative method extensively used in a job evaluation. This method is
widely as an improvement over the ranking method. In this method a set of a factors common to
a jobs of identify and assigned points. The five universally job factors are mental requirements,
physically requirements, skills, working conditions and responsibilities. Then, each job is
compared with others for each one of these factors. Understandable, each job undergoes multi
comparison with other jobs. For instant, a job may be compared with another for specific factors
like job responsibilities and get ranked for that. In the next stage, the same jobs are again
compared by another factor, say for problem solving skills. In these ways, every job is compared
for all the defined factors. Finally, the point secured by a job for all common factors totaled its
overall rating its determined. We shall know see the steps in the factors comparison method.

Identify the jobs to be evaluated At the first stage the team of evaluators should identify the
benchmark job for evaluation. These jobs must be capable for representing all others in the
organization.

Selecting the compensable factors at these stage the evaluators gather all the relevant
information about the benchmark jobs through source like job description and job specification
statements. This information is then use for identifying the key factor called compensable
factors. These factors much be very important for the very successful performance of the job.
Once the compensable factors are identify, the evaluators to should clearly define each of them in
order to achieve consistency in evaluation.

Assigning weights for each selected factors based on the assessment of the key factors, the
evaluators should assign weight as significant of these factors to the jobs. For instance, when the
evaluators decide that physical endurance is more important for the job, they should assign the
highest weightage to that factor. Similarly, the second most important factors would receive the
second highest weightage, and these goes till all the compensable factors are assigning due to
weightage.

Evaluating and ranking jobs this is the crucial stage in the factors comparison method. At this
stage, the evaluators actually assess the benchmark jobs in the terms of the presence of key
factors. The evaluators use the job description and job specification statements extensively for
assessing the key compensable factors. Each job get the final rating based on the degree of
presence of these key compensable factors.

Non-analytical Methods:-

In the non-analytical methods of job evaluation, the whole job is taken up for evaluation.
Obviously, jobs are not broken up as parts or elements for evaluation. As such, this method is
concerned with job matching and not job analysis. The important non-analytical job evaluation
methods have been discussed here.

1) Ranking
In this method, each job is rank after its comparison with all other job in the organization.
Based on their worth to the organization, jobs are place in a vertical order. An important
prerequisite for the job ranking method is job analysis and the resultant jobs description
statement for each job under consideration. On the basis of the job description statements,
the evaluator identifies the most critical factor required for successful performance of the
job.
For instance, persuasion skill may emerge as the decisive factor for the marketing jobs.
Based on those single factors, the total job is evaluated and rank relatively.
The merit of this method is: (i) it is the simplest and the least expensive method. (ii) it is
also less time consuming and flexible. However, its suffer from a few limitations. This
are: (i) it may over emphasize the relevance of a single factor in a job while totally
neglecting other important factors. (ii) it does not indicate the extend of the difference
between any two successive jobs in the rank order. (iii) it is a subjective evaluation
method as the whole jobs is evaluated and ranked without any reference to its distinct
characteristics.

2) Paired comparison
 In this method, each job is individually compared with every other in the organization. If,
during the comparison, a job is found to have more value than other, it is assigned some
reward points. If it is consider less important, it gets no points. In this way, each job
accumulates points, and at the end of multiple comparisons, ranking are done on the basis
of the aggregate scores. In the pad comparison method too, a job description statement is
an essential document for determining the relative worth of each job.

The merits of this method are: (i) it is simple and easy to compare one job with another.
(ii) each jobs get equal attention in the multiple pair comparison and, thus, better
consistency is established in job grading. The limitations of this method are: (i) it is a
subjective process as the whole job is compared with another whole job and, as such, the
unique job characteristics are over look in the comparison. (ii) it is difficult to apply this
method if there are a large number of jobs as multiple comparison would involve
numerous computation.

3) Job Grading

In this method, jobs are grouped on the basis of similarities found in the characteristics
and values. In other word, jobs with characteristics in common are assemble into groups.
This kind of grouping of similar jobs is usually called jobs classification. Generally, jobs
within each job group or class are eligible for the same pay skill or grade. In addition to
the job description statement, these methods also require the preparation of the class
description statement. The job description indicates the job characteristics while class
description specifies the group characteristics. The class characteristics may include,
among others, the problem solving skills require, the communication and persuasion
abilities needed, demand for creativity, the physical or mental efforts required, and the
difficulty and the stress involve in the jobs. After the class description statement is
prepared, each job is evaluated against the class description. When a job is form to have
characteristics similar to the class characteristics, it is included in that jobs class.

The merits of this method are: (i) this method is more practical than job ranking as job
classification are essential for pay grading or classification. (ii) it is neither complicated
nor expensive. (iii) it simplifies the wage and salary administration as jobs within a group
or a class are similar in characteristics. Moreover, these kinds of classification of jobs
group result in groups that are also usually fewer in numbers in the organization. The
defects of this method are: (i) the preparation of class description is difficult and time-
consuming process. (ii) The absence of credible justification for the inclusion of jobs in a
job class may cause employ grievance and strains industrial relations. (iii) the
classification of jobs may cause subjectivity in evaluation.

4) Market Pricing
 Job evaluation ensures internal equity in the fixations of pay scales for different jobs.
However, internal equity alone is not sufficient in compensation management. It is also
essential for an organization to establish external equity in the pay scale for a job.
External equity refers to bring the pay scale for jobs in the organizations on par with the
pay scale of similar jobs in other organizations that is why organizations often conducted
salary survey to know the relevance of their own pay scale to the market conditions.
Sometimes, the organizations may, knowingly or unknowingly, over pay or under pay
their employees for their job efforts. When an organizations over pays its employees, it
would be the financial burden for it. In contrast, if it under pays them, it would find it
difficult to attract and retain the best talents. To avoid such circumstances, organization
may adopt market pricing as a method job evaluation.

In the market pricing method, the wages prevailing in the labor market act as the basis for
job evaluation. The organizations conduct and extensive salary survey for all the
benchmark jobs. Based on that survey, jobs are evaluated and pay scales are fixed
appropriately. At this stage, the evaluators should take a decision about whether to the
fixed the pay scale above the market rate or on a par with it. However, when similar jobs
are not available in the other organizations, it would be difficult to frame the market
based pay scale. In such cases, the organizations can adopt the ranking method to
determine the pay scale based on the available information.

The merits of this method are: (i) it is a simple and flexible method. (ii) it is an objective
method of job evaluation as the evaluators judgment is not required. (iii) it does not
demand any special skills or training on the part of evaluators. the limitations of this
methods are: (i) it may be difficult to get the survey data for all bench-mark jobs (ii) even
temporary conditions in the market may influence the salary survey and also pay fixation
process. (iii) Any downward revision of the pay scale on the basis of the market condition
can affect the labormanagement relations.

Q - 39. Justify that compensation is a motivator and not just a satisfying factor.

Money and Motivation- Frederick Taylor popularized using financial incentives financial
rewards paid to workers whose production exceeds some predetermined standard in the late
1800s. As a supervisory employee of the Midvale steel company, Taylor was concerned with
what he called systematic soldiering. The tendency of employees to work at the slowest pace
possible and to produce at the minimum acceptable level. What especially intrigued him was the
fact that some of these workers had the energy to run home and work on their houses, even after
a 12-hour day. Taylor knew that if he could harness this energy during the workday, Midvale
steel could achieve huge productivity gains.
 At the time, primitive piecework incentive plans were already in use, but were generally
ineffective .Taylor made three contributions. He saw the need for formulating what he called a
fair days work, namely standards of output which employers should devise for each job based
on careful, scientific analysis. He spearheaded the scientific management movement, a
management approach that emphasized improving work method through observation and
analysis. And, he popularized the use of incentive pay.

Performance and pay: tying workers pay to their performance is widely popular. indeed with the
emphasis on competitiveness, productivity and delivering measurable bottom line results, the
trend for virtually all employers is to tie at least some portion of their workers pay to workers
and /or the companys performance.

Motivation and incentives: while it may seem obvious the manager devising an incentive plan
should first remember that different people react to different incentives in different ways. Several
motivation theories have particular relevance to designing incentive plans. These include theories
associated with psychologists Frederick Herzberg, Edward Deci, Victor Vroom and B.F.Skinner.
(For detail please see page no.476 of Gary Desseler of HRM)

Q - 40. Explain in briefly the five step process of establishing pay rates/explain the
process of establishing pay rates.
There are the processes of establishing pay rates while ensuring external, internal, and procedural
Equity consists of five steps:

(1) Conduct a salary of what other employers are paying for comparable jobs
(2) Determine the worth of each job in your organization through job evaluation
(3) Group similar jobs into pay grades.
(4) Price each pay grade by using wave curves.
(5) Fine-tune pay rates.

Step: 1 salary survey:

Surveys of what others are paying play a big role in pricing jobs; virtually every employer
conducts at least an informal telephone, newspaper or internet salary survey. Commercial,
professional and government salary surveys: Many employees use surveys published by
consulting firms professional associations or government agencies. Using the internet to do
compensation survey:-

A rapidly expanding array of internet based options makes it easy for anyone to access published
compensation survey information

Step: 2 job evaluation:

Job evaluation is aimed at determining a jobs relative worth it is a formal & systematic
comparison of jobs to determine the worth of one job relative to another, and eventually results
in a wage or salary structure. Compensable factors:- the factors that establish how the jobs
compare to one another ,and that determine the pay for ach job. Preparing for the job evaluation:
- job evaluation is a judgmental process and demands close cooperation among supervisors.

Job evaluation methods:-Ranking

1) Obtain job information:-

Job description for each job is prepared and the information they contain about the jobs
duties is usually the basis for ranking jobs.
2) Select &group jobs:-
It is often not practical to make a single ranking fo all jobs is an organization.
3) select compensable factors:-

It is common to use just one factor and to rank jobs based on the whole job

4) Rank jobs:-give each rates of index, cards, which constrain a brief description of jobs.
5) Combine ratings:- usually several rates rank the jobs independently
6) Job classification: - is a simple widely used method in which rates categorize job into
groups.
7) Point method :- the point method is probably the most widely used job evaluation method
8) Factors comparison:- with the ranking method you generally look at each job as an entity
and rank the jobs on some overall factor job difficulty

Step: 3 group similar jobs into pay grades:

Once the committee has used job evaluation to determine the relative worth of each job it can
turn to the task of assigning pay rates to each jobs, however it will usually want from group jobs
into pay grades.

Step: 4 price each pay grade wave curves:

The pay rates on the wage curve are traditionally those now paid by the employee. However if
there is reason to believe the current pay rates are out of step with the market rates for these job.

Step 5: fine-tune pay rates:

1) Developing pay ranges:

Most employees do not pay just one rate for all jobs in the particulars pay grade these pay
ranges often appear on vertical sources within each grade, showing ,minimum, maximum and
midpoint pay rates for that grade.

2) Correcting out of line rates:

The average pay for that job is currently too high or too low, relative to anther jobs in the firm
for under paid jobs the solution is clear raise the wages of underpaid employees to the minimum
of the rate rang for their pay grade.

Q 41. Explain the role of an Individual, Manager and Employer in developing

the career of an employee.
Individuals role
Knowing what, why, where, Whom, when, how
The managers responsibility
Coach , advisor, Appraiser, Referral agent
The employers role
Providing all the possible support to the employee for helping him understand, analyze and reach
towards his career goals

Q - 42. Explain Golden Parachutes

Payment companies make in connection with a change in ownership or control of a company.

Q - 43.Define Industrial Relation. Discuss various aspects and features of

Industrial Relations. Define Industrial Relations. What is the recent trend and
future of Industrial Relation in India?

Industrial Relations

The relations between employers and employees in industry

It describes relationships between managements and employees or among employees and
their organizations that characterize or grow out of employment

Evolution of IR

The origin of industrial relations lies in the employer-employee relationships.

In the beginning of the modern industrial society, the economics system consisted of a
large number of small competitive businesses and industrial establishments, each
employing a small numbers of workers.
 The relationship between an employer and his employees was informal, personal and
intimate, but with the growth of giant-sized joint- stock companies and business
corporations, each employing in many cases thousands of workers, the relationship
between the employer and his employees is no longer intimate and informal.

Formal institutions have grown up to regulate this relationship.

Such factors as the

Intervention of the state,

The growth of trade unions and their federations,

Employers associations,

The growth of sciences of personnel management,

Industrial psychology and industrial sociology have all tended to influence the spirit and

The course of the relationship between employers and employees.

The struggle between these two wings of industrial relations fighting for the sharing of
the joint products of labour and capital is not a scene which one can view with
equanimity.

The result is that the problems of industrial relations, such as

Strikes and lock-outs,

Industrial discipline,

Hiring and firing,

Promotion and transfer,

Payment of wages,

Bonus and fringe-benefits have become essentially acute and demand understanding and
constructive solutions.

Dominant Aspects of IR

1) Cooperation

2) Conflict.

Cooperation
 Modern industrial productions are based upon cooperation between labour and capital.

Here, labour stands for the workers who man the factories, mines, and other industrial
establishments or services.

Capital stands for the owners of business enterprises who supply the capital and own the
final products.

The cooperation between the two is one of the basic requirements for the smooth
functioning of modern industries and the growth of industrialization.

This cooperation flows from the pursuit of self-interests both by the owners of capital and
the owners of the labour power that is the workers.

Conflict

Conflict, like cooperation, is inherent in the industrial relations set up of today.

It becomes apparent when industrial disputes resulting in strikes and lock-outs become
frequent.

The prevailing industrial unrest, the frequency of work-stoppages resulting either from
strikes or lock-outs, and the slowing down of production, are the occasional expressions
of the ever- present and latent conflict between workers and the management.

Trends that have influenced Industrial work

a) Elimination of Physical Labour

b) Mass production at Low cost

c) Specialization of functions

d) Elaborate Control Mechanism

e) and Living Condition

f) Increased Mobility

g) Reduction in work skills

h) Increased sense of Alienation among working people

i) Hard work and Higher capital formation

j) Evolution of Entrepreneurial Elite

k) Interdependence

l) Strict Discipline
 m) Unhygienic Harsh working

Features of IR

There is employer employee relationship

Characterized by both conflict and cooperation

Vital environmental issues like workplace technology, countrys socio economic and political
environment, nations labour policy, attitude of trade unions.

IR also involves study of conditions conducive to labour, management cooperation as well as

other practices and procedures

IR makes an in-depth analysis of interference patterns of the executive and judiciary in the
regulation of labour management relations

Importance of Industrial Relations

Industrial Relations Patterns, Organized Sector and their Impact on Unorganized sector

Unions are important Force in the Indian Political System

Varying Patterns of Industrial Relations

Status Difference in the Workers of Public and Private Sector

Scope and Aspects of Industrial Relations

Scope

Industrial relations are part and parcel of industrial life, and they include

Labour relations

Employer employee relations

Group relations

Community or public relations

Aspects

Promotion and Development of healthy labour- management relations;

Maintenance of Industrial Peace and avoidance of industrial strife; and

Development of industrial democracy.

Factors Affecting Industrial Relations

 Institutional factors

Economic factors

Social factors

Technological factors

Psychological factors

Political factors

Enterprise-related factors

Global factors.

Q-44 Compare and Contrast HR and IR.

HRM - Human Resource Management

IR - Industrial Relations

HRM - There are only two important parties viz., employee and employer.

IR - These are four important parties viz., employees, employer, trade unions and government

HRM - Formulation of objectives, policies ,procedure and programs of human resources and implement
them

IR - The implementation of HRM policies results in IR.

HRM - Reformulates the objectives, policies etc ,based on industrial conflicts which are the outcome of
unsound industrial relations.

IR- The sound IR contributes to the organizational goals. The unsound IR result in industrial conflicts
demanding for change and reformulation of HRM objectives and goals

HRM - Individual employee contacts with the immediate superior.

IR - Employees contact even the top management as a group.

HRM - Grievance and disciplinary procedures are resorted to, to solve the employee-employer conflicts.

IR - Collective bargaining and forms of industrial conflicts are resorted to ,to solve the problems,

HRM - Overall management of all resources including workers, staff, , executives, Top management and
even suppliers and customers.

IR - The relations between actual work force and management of the organization..

Industrial relations are governed by the system of rules and regulations concerning work, workplace and
working community.
The main purpose is to maintain harmonious relations between employees and employer by solving their
problems through grievance procedure and collective bargaining.
Trade Unions is another important institution in the Industrial relations. Trade unions influence and
shape the industrial relations through collective bargaining.
Industrial relations are the relations mainly between employees and employers.
These relations emphasis on accommodating other parties interest , values and needs . Parties develop
skills of adjusting to and cooperating with each other.

Q-45 Define Industrial Relations. What is the recent trend and future of Industrial
Relation in India? (ALREADY BEEN MERGED WITH Q 43 )

Q 46. Explain the term Industrial Dispute. Discuss various causes for which
industrial dispute can take place and also explain Right of workmen for
compensation in case of lay off and closure.

Industrial dispute

A disagreement or controversy between management and labour with respect to wages ,

working conditions ,other employment matters or union recognition
When issue of conflict are submitted to the management for negotiation, they
take the form of industrial dispute

Causes of Industrial Dispute

Economic causes
 Division of the fruits of the industry
Wage structure and demand for higher wages
Methods of job evaluation
Deduction from wages
Incentives
Fringe benefits
Methods of production and physical working conditions
Working conditions
Technology and machinery
Layouts
Change in products
Terms of employment
Hours of work
Shift working
Promotion
Demotion
Layoff
Retrenchment
Dismissal
Job security
Retirement

Institutional causes

Recognition of unions
Membership of unions
Subject of collective bargaining
Bargaining unit
Union security
Unfair practices

Technological causes

Clash of personalities
 Behavioral maladjustments
Demand for recognition of workers personality
Authoritarian administration
Lack of scope for self expression and participation
Undue emphasis on discipline

Denial of legal and contractual rights

Non implementation of labour laws and regulations, standing orders , adjudication awards
Violation of collective agreements and wage boards recommendations , customer rights and
privileges

Right of workmen for compensation in case of lay off and closure.

Compensation to workmen in case of lay off

If a workman other than a badli or causal workman who has completed 1 year of continuous
service, is laid off , he is entitled to compensation which is equal to 50 % of the total basic wages
and dearness allowance that would have been payable to him had he not been so laid off, but no
allowance to be made for such weekly holidays that may intervene

Compensation in case of closure

Where an undertaking has been closed down, any workmen who has completed one year of
continuous service has been entitled to compensation as if he were retrenched. However if the
undertaking is closed down because of unavoidable circumstances beyond the control of the
employer, the compensation is not to exceed his average pay for 3 months

Q -47. Describe the methods of resolving Industrial Dispute with State

Intervention.
 Methods of settling industrial disputes

Without state Intervention

With state intervention
Intervention

Collective Voluntary
Bargaining Arbitration

Without With

Conciliation Conciliation

Establishment of Compulsory Compulsory

Compulsory Compulsory Conciliation
Compulsory Arbitration
Establishment Collective & mediation
Investigation Or adjudication
of bargaining
Mediation
bargaining

Q - 48. Discuss general provisions of Strikes and Lockout in accordance with

Industrial Disputes Act, 1947.

Strike - A cessation of work by a body of persons employed in any industry acting in

combination.
Lock-out The closing of a place of employment, or the suspension of work, or the refusal by an
employer to continue to work or accept employment
Prohibition of strike and lock outs

General prohibition of strikes

No workman employed in any industrial establishment is alloed to go on strike in breach of
contract

A) during the pendency of conciliation proceedings before a board of conciliation and 7 days
after the conclusion of such proceedings
 B) During the pendency of proceedings before a labour court, tribunal or national tribunal , and
2 months after the conclusion of such proceedings
C) During the pendency of arbitration proceedings before an arbitrator and 2 months after the
conclusion of such proceedings
D) During any period in which settlement or award is in operation in respect of any matter
covered by the settlement or award

Prohibition of strikes in public utility services

A person employed in public utility service must not go on strike in breach of contract
A ) without giving the employer a notice of strike within 6 weeks before striking
Within 14 days of giving such notice
Before the expiry of the date of strike specified in the notice
During the pendency of conciliation prodecings before a conciliation officer and 7 days after the
conclusion of such proceedings

Prohibition of lock outs

The provisions regarding the prohibition of lock outs are the same as those for the prohibition of
strikes

Q - 49. According to Industrial Disputes Act, 1947, explain the various

authorities for prevention or settlement of disputes in brief.

Details of authorities and references of industrial disputes

No of
Sr Authorities and references of workmen
No industrial disputes employed Members Functions

To Promote settlement of industrial

1 Grievance settlement of authority 50 or more dispute

It consists of
representatives of It promotes measures for securing and
workmen and preserving amity and good relations
2 Works committee 100 or more management between employer and workmen

3 Conciliation officer To investigate the dispute

Promote settlement of industrial

 dispute

If settlement is arrived , copy of report

has to be send to appropriate
government

If settlement is not arrived, report of

steps taken has to be send to the
appropriate government

Constitutes a chairman Promote settlement of industrial

4 Board of conciliation and 2 or 4 members dispute

If settlement is arrived , copy of report

has to be send to appropriate
government

If settlement is not arrived, report of

steps taken has to be send to the
appropriate government

Either one independent To Promote settlement of industrial

5 Court of inquiry person or more persons dispute

But

If it consists of two or
more persons one has
to be a chairman

It consists of one person

only ( Presiding To Promote settlement of industrial
6 Labour court officer ) dispute

It consists of one person

only ( Presiding To Promote settlement of industrial
7 Tribunal officer ) dispute

To settle industrial disputes which

involves matters of national
It consists of one person importance or where other states are
only ( Presiding also likely to be affected by the
8 National tribunal officer ) dispute

2 assessors are
appointed to advise
Q -50. Define Strike, Lock-out and Retrenchment under the Industrial
Dispute Act, 1947.

Strike

A cessation of work by a body of persons employed in any industry acting in combination.

Lock-out

The closing of a place of employment, or the suspension of work, or the refusal by an employer
to continue to work or accept employment
Lay-off

The failure, refusal, or inability of an employer on account of shortage of coal, power or raw
material or the accumulation of stocks or the break down of machinery or natural calamity or any
other connected reason to give employment to a workman.
Retrenchment

The termination by the employer of the service of a workman for any reason as a punishment
inflicted by way of a disciplinary action

Q - 51. Write short notes on any two Authorities out of the following, for Settling
the Industrial Dispute in reference to the Industrial Dispute Act, 1947.
i. Works Committee
ii. Conciliation Officer
iii. Labour Court
iv. Industrial Tribunal

Works Committee
The appropriate government is empowered to make general or special order requiring the
employer to constitute a works committee in nay industrial establishment in which 100 or more
workmen are employed on any day preceding 12 months.

Constitution
It consists of representatives of workmen and employers.
However number of workers representatives is not less than that of employers representatives

Functions
A works committee is required to promote measures for securing and preserving amity and good
relations between the employers and workmen.

Conciliation Officer
The appropriate government is empowered to appoint conciliation officers by notification in the
official gazette for mediating in and promoting settlement of industrial disputes
The number of conciliation officers appointed has to be determined by the appropriate
government

Duties of a conciliation officer

Must hold conciliation proceedings
Investigate the industrial dispute and all the matters affecting its merits for promoting a right
settlement
He may take appropriate steps for inducing the parties to a fair and amicable settlement of the
dispute
If a settlement is arrived he may send a copy of the report and the memorandum of settlement
signed by the parties to the appropriate government.
In case no settlement is arrived at, he has to send a full report on action taken by him.

Labour Court
The appropriate government may constitute one or more labour courts.
The labour courts are formed to address industrial disputes related to any matter provided in the
second schedule. The second schedule includes the propriety or legality of an order passed by an
employer under the standing orders, the application and interpretation of standing orders,
discharge r dismissal of workmen, withdrawal of any customer privilege , illegality, strike or lock
out
A labour court consist of one person only

Tribunal
The appropriate government may constitute one or more tribunals for the adjudication of
industrial disputes relating to any matter specified in second schedule as mentioned above or third
schedule inclusions like wages, hours of work, mode of payment, shift working, classification by
grades, rules of discipline, rationalization, retrenchment of workmen.

A tribunal consists of one person.

A person is qualified for appointment of presiding officer of a tribunal only when
He is or has been a judge of high court
Has been a district judge or additional district judge for a period of not less than 3 years
2 assessors are also appointed to advice the presiding officer
 Q - 52. Write the procedure for Registration of Trade Union, in reference to the
Trade Unions Act, 1926. Define Trade Union Act, 1926.

The act defines trade union as any combination , whether temporary or permanent, formed primarily for
the purpose of regulating the relations between workmen and employers or between workmen and
workmen or for imposing restrictive conditions on the conduct of any trade or business and includes any
federations of two or more trade unions

Registration
The appropriate government is required to appoint a person to be the registrar of trade unions.
Any 7 or more members of a trade union, by subscribing their names to the rules of the trade union may
apply for its registration

Application for registration

Every application for registration is to be accompanied by a copy of the rules of the trade union and a
statement of the following particulars
A ) The names, occupations and addresses of the members making the applications
B ) in the case of trade union of workmen, the names, occupations and addresses of the place of the work
of members making application
C ) the name of the trade union and the address of its head office
D ) the titles, names, ages, addresses and occupations of the office bearers of the trade union

Provisions to be contained in the rules of a trade union

A trade union is not entitled to registration unless the executive is constituted in accordance with the
provisions of the act and its rules provide the following particulars
A ) The name of the trade union
B ) Objectives
C ) The purpose for which general funds will be utilized
D ) The maintenance of the list of the members of the trade union
E ) The conditions under which any member is entitled to any benefit assured by the rules
F ) the manner in which the rules may be amended
G ) the manner in which the members of the executive and other office bearers of the trade union will be
elected and removed

Certificate of registration
If the registrar is satisfied that the trade union has compiled with all the requirements of the act in
regard to registration, he will register trade union

Minimum requirement for membership

The registered trade union of workmen must all times continue to have not less than 10 % or 100 of
the workmen, whichever is less, subject to a minimum of 7 members.

Change in name and amalgamation

Any two or more registered trade unions may amalgate together with or without dissolution or
division of funds on the condition of the votes of atleast one half of the members of each trade
union entitle to vote are recorded and that atleast 60 % of the votes recorded are in favour of the
 proposal.Ant registered trade union may change its name with the consent of atleast two thirds of
the total number of its members, but notice in writing signed by the secretary and atleast 7 members
of the trade union has to be given to the registrar of the trade union

Dissolution of a registered trade union

In case of dissolution of a registered trade union, a notice signed by 7 members has to be sent to the
registrar within 14 days of the dissolution. If the registrar is satisfied that the dissolution has been made in
accordance with the rules of the trade union, he is required to register the dissolution which is to come
into effect from the date of such dissolution

Q - 53. What are the different types of trade union? Explain the four
important types of union structure.
Generally trade unions are classified into four types
Occupational unions here the union members mostly belong to a specific occupational category.
The primary purpose of such unions is to protect the skill status of their members.
They keep the power to control the supply of skills and there by preserve the value of skills
They also control the entry into the occupation by placing restrictions on skills transfers by existing
members

Industrial unions
Members usually belong to a specific industry
The primary purpose is to control sectoral collective bargaining
When a single industrial union represents all the workers of a specific industry, it is a monopolistic
union

General unions
The unions represent workers from different industries and organizations, they are known as general
unions
Normally, it does not place restrictions on membership as it is open to all the workers, irresptive of
their industrial background

White collar unions

They are similar to the occupational unions except for the fact that the uniting factor for the workers
is the nature of the job and not their skills
It consists of employees who perform non manual jobs and belong to the salaried class
The growth in number of white collar employees in the organizations and their increasing
grievances has necessitated the formation of the exclusive union

Q - 54. Define and explain significance of Collective Bargaining. Discuss the factors
have an influence on each unit and discuss each step involved in process. / What is
the importance of collective bargaining? / What are the essential conditions for
successful functioning of collective bargaining? What is meant by Collective
Bargaining? Discuss the pre-requisites of a successful collective bargaining process.

Collective bargaining

It is a process of discussion and negotiation between two parties

Collective bargaining is a procedure by which employers and a group of employees agree
upon the conditions of the work
It is a mode of fixing the terms of employment by means of bargaining between an
organized body of employees and an employer or an association of employers usually acting
through organized agents

Importance of collective bargaining

Improvement in the conditions of workers

Check on autocracy in industry
Promotion of lasting industrial peace
Conducive to managerial efficiency
Development of industrial rules
Significant for society and economy

Steps in collective bargaining

Employees present the demand in a collective manner to the employers

Discussions and negotiations take place on a give and take basis
Signing a formal agreement or arriving at an informal understanding
In the event of failure of negotiations , likely resort to strikes or lock outs

Essential features of collective bargaining

It is a process in which the terms and conditions of employment are determined jointly by
the employers and workers
The representative of workers and the employer or his agents actually participate in
bargaining
The employer employee relationship is a precondition
The main objective is determination of terms and conditions and give an take process
 The agreement arrived at may relate to one issue or many issues.
The state also plays a notable role in collective bargaining
The nature of collective bargaining is dynamic and changeable

Q55. What is meant by Collective Bargaining ? Discuss the pre-requisites of a

successful collective bargaining process. ( already merged with Q 54 )

Q - 56. Define Factories Act, 1948. What are the various provisions related to
health? / What are the various provision related to Welfare, as described under
The Factories Act, 1948. / Discuss Safety provision as contained in Factories Act,
1948.

PROVISIONS FOR HEALTH - PAGE NO 217-222 TAXMANNS LABOUR LAWS

PROVISIONS FOR SAFETY - PAGE NO 222 233 TAXMANNS LABOUR LAWS
PROVISIONS FOR WELFARE PAGE NO 238 241 - TAXMANNS LABOUR
LAWS
Q - 57. Define Occupier and mention general duties of Occupier under
Factories Act.

Occupier The person who has ultimate control over the affairs of the factory

General duties of occupier

To ensure health, safety and welfare of all the workers

Maintenance of plant and systems of work in factory that are safe and without risks to
health
Providing information, instruction, training and supervision as are necessary to ensure
health and safety of all workers at work
The arrangements in the factory for ensuring safety and absence of risks to health in
connection with the use, handling, storage and transport of substances
Q 58. Explain Red Hot Stove Rule.

Fair and effective employee discipline has the same characteristics as a Red Hot Stove:
forewarning, immediate, consistent and impartial. According to leadership expert Douglas
McGregor, all four should be applied to employee discipline.

Forewarning: The closer you get to the red coils, the hotter it gets. You are forewarned if you
touch it, you will get burned.

The Hot Stove at Work: Providing detailed warning of expectations in advance is essential. A
clear link is made between performance standards, prior warnings, and consequences for unmet
expectations. Standards dont seem conjured up out of thin air. Best of all, the stove [supervisor]
feels no guilt about later imposing discipline because the employee, despite being warned,
chose their behavior.

Immediate: Touch a hot stove and, you know instantly, you have done something wrong.

The Hot Stove at Work: Discipline must occur immediately ensuring the individual will see a
clear link between their behavior and the outcome. The more time between the employees poor
performance and the supervisors reaction, the less effective the discipline. And, when time is
allowed to pass, people tend to convince themselves they are not at fault. So, dont wait for the
mandatory evaluation, a more convenient time, or (and Ive actually seen this happen) wait
and hope the employee transfers or retires.

Consistent: When you touch a hot stove, it always burns.

The Hot Stove at Work: Discipline does not differ, for the same offense, from one person to the
next. Most egregious of offense is when a supervisor touches the stove yet, reprimands
employees for the same behavior. Nothing fuels resentment like inconsistent discipline.

Impersonal: Whoever touches the stove will be burnt. It doesnt burn some people and not
others.

The Hot Stove at Work: Discipline should reflect the offense not the person who committed
it. Focus on the act, not the individual. It doesnt matter who the employee is; the bosss best
friend, uncle, someone who is experiencing personal crisis
The supervisor doesnt dread disciplining; nor should the employee feel resentment because the
discipline is a response to the behavior.
The stove only burns the one who touched it and no one else. Think of how many rules,
regulations and penalties are imposed on the many because of the few who actually needed
discipline.

When disciplining an employee, your conversations about their performance can include a
review all four hot stove conditions:
Forewarning You knew what would happen, and still you chose to [touch the stove.]
Immediate Just now, you [touched the stove.] As a result
Consistent Anyone who [touches the stove] gets burned.
Impersonal You are getting burned because you chose to [touch the stove.]

The word discipline has its roots in the Latin word discere, which means to learn. Use the
Red Hot Stove Rule to apply discipline fairly and effectively. Discipline, done well, can give
your employees an opportunity to grow and learn.

Q 59. What are the recent trends in managing global human resources?

Inter - country differences affect HRM to a great extent through cultural factors, Economic systems
and legal and Industrial relations

Some of the global differences and similarities in human Resource practices are

Personnel Selection Procedures

The purpose of performance appraisal
Training and development practices
The use of pay incentives

Some important points under staffing the global organization are

Expatriates
Home country nationals
Host country nationals
Third country nationals

Some international staffing policies also needs to be considered in managing global human resources
and international staffing policy . These are

Ethnocentric
Polycentric
Geocentric

Q60. Explain the Model Grievance Procedure

 The model grievance procedure comprises of 5 steps

1. The aggrieved employee shall convey his or her grievance verbally to the officer designated by
the management to deal with the grievance. The officer will have to reply to the complaint within
48 hours
2. If the grievant is not satisfied with the answer or does not receive the answer within 48 hours,
he shall, then, present the grievance to the departmental head nominated for this purpose, who
must give his reply within 3 days of the presentation of the grievance
3. if the aggrieved employee is still not satisfied, he can approach the grievance committee for the
settlement of the grievance. The grievance committee has to give its recommendation in 7 days
and send it to management. The management must communicate the same to the grievant within
3 days.
4. If the aggrieved employee is still not satisfied, he can make an appeal to the management for a
revision of the decision taken. The management can take a week for the appeal to be considered,
and the revision decision is to be informed to the grievant
5. If the employee is still not satisfied with the decision of the management, the grievance may be
referred for voluntary arbitration within a week after the decision taken by the management in
stage 4. The decision of the management is final and binding on both the parties i.e management
and the union.

Q 61 Discuss (I) Adoption of Conventions & Ratification and (II) Major

activities undertaken by International Labour Organization. / Write a short
note on International Labour Organization (ILO). / Mention the
organizational structure under International Labor Organization and
describe the major activity of International Labor Organization. / Explain the
objectives and major activities of ILO.
ILO is a specilized agency of UN, that deals with labour issues

ADOPTION OF CONVENTIONS / CHARTER OF FREEDOM OF LABOUR

Labour is not a commodity

Freedom of expression & of association are essential to sustained progress

Poverty anywhere constitutes danger to prosperity everywhere

The war against want requires to be carried on with unrelenting vigor with in each nation
& by continuance & concerted international effort in which the representative of workers
 & employers, enjoying equal status with those of the governments, join with them in free
discussion and democratic decision with the view to the promotion of common welfare

PROBLEMS OF RATIFICATION

Countries with higher labour standards

Countries having a federal setup

Countries where the subject matters of conventions are regulated by collective

agreements

Industrially backward countries

ORGANIZATIONAL STRUCTURE

It consists of three main organs

International Labour Conference:- Non Governmental international organizations ,

Directing and Supervising and Elects members of the governing body, World Parliament for
labour& social questions, Creating World Wide uniform standards of labour

Governing Body :- 10 government seats are permanently allotted to the 10states of

Chief industrial importance

Canada China France India Italy USA

Germany UK Soviet Union Japan

Appointed for the Period of office is 3 yrs , Decide the method of filling vacancies and of
appointing substitutes , Appoints the Direct General, supervises its functioning, prepares the
agenda to be placed before ILC

International Labour Office :- Administrative head is the Director General , Collection

and distribution of information on all subjects relating to the international adjustment of
the conditions of industrial life and labour , Examination of subjects which it is proposed
to bring before the conference with a view to the conclusion of international
 conventions , Conduct of special investigations as may be ordered by the conference of
the Governing Body
MAJOR ACTIVITIES OF ILO
Creation of International Standards of Labour
Employment Promotion
Collection and Distribution of Information and Publication
Research and Studies
Training
Improvement of Working Conditions and Working Environment
Development of Social Institutions
Other Activities

Q 62 Explain important provisions of Payment of Wages Act, 1936. / Define

Wages as defined under The Payment of Wages Act, 1936 and give details of
the deductions allowed under the Act. / What is the objective and scope of the
Payment of Wages Act,1936 and throw light on: Time of payment of wages to
employees and also to terminated employees. / Briefly write about various
deductions under Payment of Wages Legislation.
The Payment of Wages Act, 1936 :- An Act to regulate the payment of wages to certain classes of
employed persons
Definitions:-
wages" means all remuneration (whether by way of salary allowances or otherwise) expressed in
terms of money or capable of being so expressed which would if the terms of employment
express or implied were fulfilled by payable to a person employed in respect of his employment
or of work done in employment. -
(a) any remuneration payable under any award or settlement between the parties
(b) any remuneration to which the person employed is entitled in respect of work
(c) any additional remuneration payable under the terms of employment (whether called a bonus
or by any other name);
Deductions which may be made from wages :-
Notwithstanding the provisions of sub-section (2) of section 47 of the Indian Railways Act 1890
(9 of 1890) the wages of an employed person shall be paid to him without deductions of any kind
except those authorised by or under act

Explanation I : Every payment made by the employed person to the employer or his agent shall
for the purposes of this Act be deemed to be a deducting wages

Explanation II : Any loss of wages resulting from the imposition, for good and sufficient cause
upon a person employed of any of the following penalties namely

(i) The withholding of increment or promotion (including the stoppage of increment

the reduction to a lower post or time scale or to a lower stage in a time scale;
suspension; shall not be deemed to be a deduction from wages in any case where the rules
framed by the employer for the imposition of any such penalty are in conformity with the
requirements if any which may be specified in this behalf by the State Government by
notification in the Official Gazette.
(2) Deductions from the wages of an employed person shall be made only in accordance with the
provisions of this Act and may be of the following kinds
(a) fines;
(b) deductions for absence from duty;
(c) Deductions for damage to or loss of goods expressly entrusted to the
employed person for custody or for loss of money for which he is required to
account where such damage or loss is directly attributable to his neglect or
default;
(d) deductions for house-accommodation supplied by the employer or by
government or any housing board set up under any law for the time being in
force (whether the government or the board is the employer or not) or any
other authority engaged in the business of subsidising house-accommodation
 which may be specified in this behalf by the State Government by notification
in the Official Gazette;

(e) deductions for such amenities services supplied by the employer as the State
Government or any officer specified by it in this behalf may by general or
special order authorise.
(f) deductions for recovery of advances of whatever nature (including advances
for travelling allowance or conveyance allowance) and the interest due in
respect thereof or for adjustment of over-payments;
(g) deductions of income-tax payable by the employed person;
(h) deductions required to be made by order of a court or other authority
competent to make such order;
(i) deductions for subscriptions to and for repayment of advances from any
provident fund to which the Provident Funds Act 1952 (19 of 1952) applies or
any recognised provident funds as defined in section 58A of the Indian
Income Tax Act 1922 (11 of 1922) or any provident fund approved in this
behalf by the State Government during the continuance of such approval;
(j) (j) deductions for payments to co-operative societies approved by the State
Government or any officer specified by it in this behalf or to a scheme of
insurance maintained by the Indian Post Office and

(k) deductions made with the written authorisation of the person employed for
payment of any premium on his life insurance policy to the Life Insurance
Corporation Act of India established under the Life Insurance Corporation
1956 (31 of 1956) or for the purchase of securities of the Government of India
or of any State Government or for being deposited in any Post Office Saving
Bank in furtherance of any savings scheme of any such government.
(l) deductions for payment of insurance premia on Fidelity Guarantee Bonds;

(m) deductions for recovery of losses sustained by a railway administration on

account of acceptance by the employed person of counterfeit or base coins or
mutilated or forged currency notes;
 (n) deductions for recovery of losses sustained by a railway administration on
account of the failure of the employed person to invoice to bill to collect or to
account for the appropriate charges due to that administration whether in respect
of fares freight demurrage wharfage and cranage or in respect of sale of food in
catering establishments or in respect of sale of commodities
(o) deductions for recovery of losses sustained by a railway administration on
account of any rebates or refunds incorrectly granted by the employed person
where such loss is directly attributable to his neglect or default;

(p) deductions made with the written authorisation of the employed person for
contribution to the Prime Minister's National Relief Fund or to such other Fund as
the Central Government may by notification in Official Gazette
Deductions for absence from duty
(1) Deductions may be made under clause (b) of sub-section (2) of section 7 only on
account of the absence of an employed person from the place or places where by the
terms of his employment , he is required to work such absence being for the whole or any
part of the period during which he is so required .
(2) The amount of such deduction shall in no case bear to the wages payable to the
employed person in respect of the wage-period for which the deduction is made in a
larger proportion than the period for which he was absent bears to the total period within
such wage-period during which by the terms of his employments he was required to work
Q 63. Explain the objectives of Workers Participation in Management and
discuss participation through Joint Management Councils./ Q 64. Explain
Works Committee, Board level participation, shop council, unit councils
under Workers Participation in Management /Q 65. Write a short note on
Workers Participation in Management. / Explain in brief various forms of
Participative Management./ Q 66 What are the objective and functions of
workers participation in management?
OBJECTIVES OF WPM WORKERS PARTICIPATION IN MANAGEMENT
Democratization of management.
Eliciting workers cooperation in attainment of corporate goals.
Personalization and humanization of the management process.
Behavioral approach to the management of workers-management relations
FACTORS AFFECTING WPM
Socio-economic development of country.

Political philosophy.

Industrial relations scene.

Attitude of working class.

Strength of workers.

Attitude of trade unions and management.

Problems and issues to be discussed

Labor-management relations in general

DIFFERENT TYPES OF WPM

Formal and informal.

Ascending participation

Descending participation

Collective Bargaining

Joint administration

Joint decision making

Consultation

Information sharing
DIFFERENT PARTICIPATIVE FORUMS IN INDIA/ ORVARIOUS FORMS OF
PARTICIPATIVE MANAGEMENT.

Works committee

Joint management Council

Joint councils

Unit councils

Plant councils

Shop councils

Workers participation on the board of management

WORKS COMMITTEE

To remove causes of friction in day to day matters.

To promote amity and good relationship.

As a bridge to continuous bargaining relationship.

To strengthen the spirit of voluntary settlement.

A door for trade union to have inner perspective of the industry.

100 or more workers can constitute works committee.

Participants from both parties , and shall not exceed 20.

Term of office shall for 2 years.

Committee should meet at least once in three months.

JOINT COUNCIL

Join councils to be set up only in an organization having 100 or more people.

 Tenure for 2 years.

Chief executive to be the chairman.

Role of secretary.

Meeting at least once in a quarter.

Decision on basis of consensus.

Joint council are feature of manufacturing and mining unit.

For settlement of matters remaining unresolved at unit level.

Improvement of general working conditions.

Proper recognition and appreciation of workers.

For discussion purpose.

UNIT COUNCIL.

Unit council is a feature of WPM in commercial and service organizations in the public
sector, having large scale public dealings; this was announced on 5th January 1977.

For organizations employing 100 or more workers, to discuss day to day problems.

Number of representatives.

Decisions on basis of consensus.

Decisions to be implemented within a month.

Tenure for 3 years.

Role of secretary.

Meeting at least once in a month.

PLANT COUNCIL
 Formed in pursuance of the recommendations of the second meeting of the group on
labor at New Delhi on 23rd September 1985.

scheme is applicable to all central public sector undertakings

Only one plant council for whole unit.

Tenure for 3 years.

Chief executive to be the chairman of plant.

Role of secretary.

Meeting at least once in a quarter.

Decision based on consensus, to be implemented within a month.

Only persons engaged in plant are eligible for participation.

SHOP COUNCIL

To be constituted in industrial establishment employing 500 or more workers.

Representatives to be equal, not to exceed 12.

Decisions on consensus, to be implemented within a month.

Tenure 3 years.

Meeting at least once a month.

BOARD LEVEL

Participation limited to companies employing 1000 or more workers.

Workers should actually be working in enterprise.

Participation to be introduced onlyProportion of worker directors and central

government.

Worker director to be elected by workers through secret ballot.

 The pre requisite training in business of company.

Q 67 Explain the objectives and limitation of Minimum Wages Act. / Explain

the provision regarding to which employer must pay the minimum wage to his
employees. What are the penalties of failure to pay the minimum wages?
The Minimum Wages Act, 1948 :- An act to provide for fixing minimum rate of wages in
certain employments.
Where it is expedient to provide for fixing minimum rates of wages in certain
employments:

It is hereby enacted as follows:

"The justification for statutory fixation of minimum wages is obvious. Such provisions
which exists in more advanced countries are even more necessary in India, where
workers organisations are yet poorly developed and worker's bargaining power is
consequently poor." (Gazette of India).

In fixing or revising minimum rates of wages under this section -

(a) different minimum rates of wages may be fixed for -

(i)different scheduled employments;

(ii) different classes of work in the same scheduled employment

(iii) adults adolescents children and apprentices;

(iv) different localities;

(b) minimum rates of wages may be fixed by any one or more of the following wage
periods; namely :

(i) by the hour

 (ii) by the day

(iii) by the month or by such other larger wage-period as may be prescribed;

and where such rates are fixed by the day or by the month the manner of calculating wages for a
month or for a day as the case may be may be indicated,
Procedure for fixing and revising minimum wages:-
(1) In fixing minimum rates of wages in respect of any scheduled employment for the
first time under this Act or in revising minimum rates of wages so fixed the
appropriate government shall either -
(a) appoint as many committees and sub-committees as it considers necessary to
hold enquiries and advise it in respect of such fixation or revision as the case may
be or
(b) by notification in the Official Gazette publish its proposals for the information
of persons likely to be affected thereby and specify a date not less than two
months from the date of the notification on which the proposals will be taken into
consideration.
(2) (2) After considering the advice of the committee or committee appointed under
clause (a) of sub-section (1) or as the case may be all representations received by
it before the date specified in the notification under clause (b) of that sub-section
the appropriate government shall by notification in the Official Gazette fix or as
the case may be revise the minimum rates of wages in respect of each scheduled
employment and unless such notification otherwise provides it shall come into
force on the expiry of three months from the date of its issue :

Provided that where the appropriate government proposes to revise the minimum
rates of wages by the mode specified in clause (b) of sub-section (1) the
appropriate government shall consult the Advisory Board also.
Penalties of failure to pay the minimum wages :-
(a) pays to any employee less than the minimum rates of wages fixed for that employee's
class of work or less than the amount due to him under the provisions
(b) contravenes any rule or order made under section 13;
 shall be punishable with imprisonment for a term which may extend to six months or
with fine which may extend to five hundred rupees or with both :

Provided that in imposing any fine for an offence under this section the court shall take
into consideration the amount of any compensation already awarded against the accused
in any proceedings taken under section 20.
Q 68 How Intercountry differences affect HRM? Describe with example.
Intercountry Differences Affecting HRM :-
Cultural Factors

Economic Systems

Legal and Industrial Relations Factors

The European Union

Q 69 Explain ethnocentric, polycentric and Geocentric culture./ Q 72

Explain the staffing process of global organizations
Values and International Staffing Policy
Ethnocentric

The notion that home-country attitudes, management style, knowledge, evaluation criteria,
and managers are superior to anything the host country has to offer.

Polycentric

A conscious belief that only the host-country managers can ever really understand the culture
and behavior of the host-country market.

Geocentric

The belief that the firms whole management staff must be scoured on a global basis, on the
assumption that the best manager of a specific position anywhere may be in any of the
countries in which the firm operates.
Q 70 Explain Expatriate, Home country national, Host country national and
Third country national.
Staffing the Global Organization
Expatriates(expats): Noncitizens of the countries in which they are working.

Why Expatriate Assignments Fail:-

Personality

Personal intentions

Family pressures

Inability of the spouse to adjust

Inability to cope with larger overseas responsibility.

Lack of cultural skills

Compensating Expatriates

The Balance Sheet Approach

Home-country groups of expensesincome taxes, housing, goods and services, and

discretionary expensesare the focus of attention.

The employer estimates what each of these four expenses is in the expatriates home country, and
what each will be in the host country.

The employer then pays any differences such as additional income taxes or housing expenses.

Incentives

a. Foreign service premiums :-Financial payments over and above regular base
pay, and typically range between 10% and 30% of base pay.
b. Hardship allowances :-Payments to compensate expatriates for exceptionally
hard living and working conditions at certain foreign locations.
 c. Mobility premiums :-Lump-sum payments to reward employees for moving
from one assignment to another.

Home-country nationals: Citizens of the country in which the multinational

company has its headquarters.

Third-country nationals: Citizens of a country other than the parent or the host
country.

Offshoring :-Having local employees abroad do jobs that the firms domestic
employees previously did in-house.Having local employees abroad do jobs that
the firms domestic employees previously did in-house.

Issues in offshoring

Having an effective supervisory and management structure in place to manage the

workers.
Screening and required training for the employees receive the that they require.
Ensuring that compensation policies and working conditions are satisfactory

Q 71 Explain global differences and similarities in HR practices

GLOBAL DIFFERENCES AND SIMILARITIES IN HR PRACTICES.
Personnel Selection Procedure

The Purpose of the Performance Appraisal

Training and Development Practices

The Use of Pay Incentives