Q.1. Explain the meaning and scope of HRM?

Answer: HRM is concerned with the management of people within the

organization focusing on the policies and the system.

Scope of HRM

The National Institute of personnel Management, Calcutta has specified the scope
of HRM as follow:

1. The Labour or Personnel Aspect:

This is concerned with manpower planning, recruitment, selection, placement,

transfer, promotion, training and development, lay-off and retrenchment,
remuneration, incentives, productivity, etc.

2. Welfare Aspect:

It deals with working conditions, and amenities such as canteen, creches, rest and
lunch rooms, housing, transport, medical assistance, education, health and safety,
recreation facilities, etc.

3. Industrial Relations Aspects:

This covers union-management relations, joint consultation, collective bargaining,

grievance and disciplinary actions, settlement of disputes, etc.

Q.2. Discuss the importance of performance appraisal.

Answer: Performance appraisal provides important and useful information for the
assessment of employee's skill, knowledge, ability and overall job performance.
The following are the points which indicate the importance of performance
appraisal in an organization:

1. Performance appraisal helps supervisors to assess the work performance of their

subordinates.

2. Performance appraisal helps to assess the training and development needs of

employees.
3. Performance appraisal provides grounds for employees to correct their mistakes,
and it also provides proper guidance and criticism for employee's development.

4. Performance appraisal provides reward for better performance.

5. Performance appraisal helps to improve the communication system of the

organization.

6. Performance appraisal evaluates whether human resource programs being

implemented in the organization have been effective.

7. Performance appraisal helps to prepare pay structure for each employee working
in the organization.

8. It also helps to review the potentiality of employees so that their future

capability is anticipated.