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HUMAN RESOURCE MANAGEMENT-2001

Attempt any five questions Total 100 marks


All questions carry equal marks
Answers should be in sufficient detail with case examples.
__________________________________________________________________________________________________________

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

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

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

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

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

4. Group Dynamics: Group dynamics refers to the ever changing interactions and adjustments in the
mutual perceptions and relationships among members of the groups. Such associations are powerful
instruments which facilitates or inhibit adaptation to change. The management has to positively
articulate such groups.

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

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

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

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

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

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

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

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

External Factors.

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

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

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

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

5. Level of Technology: Level of technology determines the kind of human resources required.

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

Internal factors:

1. Company Strategies: Company policies and strategies relating to expansion, diversification,


alliances etc. determine the human resources demand in terms of quality and quantity.

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

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

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

5. Company’s Production/Operations Policy: Company’s policy regarding how much to produce


and how much to buy from outside to prepare a final product influences the number and kind of
people required.

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

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

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

Internal sources of Recruitment:

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

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

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

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

5. Employee Referrals: Present employees are well aware of the qualifications, attitudes, experience and
emotions of their friends and relatives. They are also aware of the job requirements and organizational
culture of their company. As such they can make preliminary judgment regarding the match between the
job and their friends and relatives.

External Sources of Recruitment

1. Campus Recruitment: These candidates are directly recruited by the Co; from their
college/educational institution. They are inexperienced as far as work experience is concerned.

2. Private Employment Agencies/Consultants: Public employment agencies or consultants like ABC


Consultants in India perform recruitment functions on behalf of a client company by charging fees.
Line managers are relieved from recruitment functions and can concentrate on operational activities.

3. Public Employment Exchanges: The Government set up Public Employment Exchanges in the
country to provide information about vacancies to the candidates and to help the organization in
finding out suitable candidates. As per the Employment Exchange act 1959, makes it obligatory for
public sector and private sector enterprises in India to fill certain types of vacancies through public
employment exchanges.

4. Professional Organizations: Professional organizations or associations maintain complete bio-data


of their members and provide the same to various organizations on requisition. They act as an
exchange between their members and recruiting firm.

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

6. Casual Applicants: Depending on the image of the organization its prompt response participation of
the organization in the local activities, level of unemployment, candidates apply casually for jobs
through mail or handover the application in the Personnel dept. This would be a suitable source for
temporary and lower level jobs.
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7. Similar Organizations: Generally experienced candidates are available in organizations producing
similar products or are engaged in similar business. The Management can get potential candidates
from this source.

8. Trade Unions: Generally unemployed or underemployed persons or employees seeking change in


employment put a word to the trade union leaders with a view to getting suitable employment due to
latter rapport with the management.

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

10. Consult In: the busy and dynamic companies encourage the potential job seekers to approach them
personally and consult them regarding the jobs. The companies select the suitable candidates and
advise the company regarding the filling up of the positions. Head hunters are also called search
consultants.

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

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

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

14. Outsourcing: Some organizations recently started developing human resource pool by employing the
candidates for them. These organizations do not utilize the human resources; instead they supply
HRs to various companies based on their needs on temporary or ad-hoc basis.

Merits and Demerits of Internal Sources of Recruitment

Sr. Merits of Internal Sources of Recruitment Demerits of Internal Sources of Recruitment


1. Motivates present employees when they are Trade union pressure may not always give the
upgraded internally. right candidate for the job. The management
may have to consider some concessions.
2. Retrenched workers get an opportunity to Management’s gets a chance to postpone
work again. promotion due to interpersonal conflicts.
3. Dependents of the deceased get a job easily Excessive dependence on this source results in
in-breeding, discourages flow of new blood into
the organization.
4. Morale of employees is improved The organization becomes dull without
innovations, new ideas, excellence and
expertise.
5. Loyalty, commitment, security of present
employees can be enhanced
6. Cost of recruitment, training, induction,
orientation, etc is reduced
7. Trade unions can be satisfied.

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Merits and Demerits of External of Recruitment

Sr. Merits of External Sources of Demerits of External Sources of Recruitment


Recruitment
1. The candidates with skill, knowledge talent Campus recruited employees lack work
etc is generally available. experience.
2. Cost of employees can be minimized. Cost of recruitment is high and there is no
confidentiality.
3. Expertise, excellence and experience in other Specified vacancies have to be filled by
organizations can be easily brought into the candidates referred by employment exchanges
organization. which do not allow other candidates to be
eligible.
4. Existing sources will also broaden their
personality.
5. Human Resource mix can be balanced
6. Qualitative human resource benefits the
organization in the long run.
7. Reduction in time for recruitment
8. Increase in the selection ratio i.e. recruiting
more candidates.
9. HR professionals can concentrate on
strategic issues.

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

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

STRATEGY HUMAN RESOURCE PLAN NING


Expansion Additional human resources of existing categories.
Diversification Additional human resources of different categories
Acquisitions and Mergers Reduction of human resources of managerial positions
Retrenchment Reduction of human resources of almost all the
categories through VRS and other means
Low Cost Leadership Reduction of human resources
Differentiation Strategy Additional human resources of different categories.

Purpose of Human Resource Planning.

- To recruit and retain the human resource of required quantity and quality.
- To foresee the employee turnover and make the arrangements for minimizing turnover and
filling up of consequent vacancies.
- To foresee the impact of technology on work.
- To meet the needs of the programmers of expansion, diversification etc.
- To improve the standards, skill knowledge, ability discipline etc.
- To access the surplus or shortage of human resources and take measures accordingly.
- To maintain congenial industrial relations by maintaining optimum level and structure of
human resources.
- To minimize imbalances caused due to non-availability of human resources of the right kind,
right number in the right time and right place.
- To make the best use of its human resources
- To estimate the cost of human resources.
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Important Elements of Human Resource Planning.

- Analyzing Corporate and unit level strategies


- Demand Forecasting: Forecasting the overall human resources requirements in accordance
with the organizational plans.
- Supply Forecasting: Obtaining the data and information about the present inventory of
human resources and forecast the future changes in the human resources inventory.
- Estimating the net human resources requirements
- In case of future surplus, plan for re-deployment, retrenchment and lay off.
- In case of future deficit, forecast the future supply of human resources from all sources with
reference to plans of other companies.
- Plan for recruitment, development and internal mobility if future supply is more than or equal
to net human resources requirements.
- Plan to modify or adjust the organizational plan if future supply is more than or equal to net
human resource requirements.
- Plan to modify or adjust the organizational plan if future supply will be inadequate with
reference to future net requirements.

Q5a. What are the merits and demerits of incentive based schemes of remuneration?
Ans 5.a.
Sr. Merits of Incentive based Remuneration Demerits of Incentive based Remuneration
1. It is accepted as a sound technique for the It is not considered a very good scheme in
achievement of greater productivity countries in the West where it is mostly
prevalent.
2. For employers the need of vigorous It tends to create tension among different
supervision is reduced. workers in an organization.
3. Workers have the advantage of working in a A poor performer will earn very little.
relatively calm atmosphere because of
minimum vigilance on them by the superior.
4. The incentive is directly linked with the Tensions caused by incentive schemes would
productivity of the worker. give rise to internal relations problems which
would be a serious matter of concern for the
management.
5. The more the worker produces the more he The tension created would eventually affect the
earns. total output.
6. Higher productivity is an important A great sense of understanding the problems of
perquisite of economic development. human relations and that of engineering is
required for the smooth administration of such
incentive schemes.

Q 5.b. Explain what is Job Evaluation?

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

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

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

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

a) A serious and committed instructor must :


a. Know the job or subject he is attempting to teach
b. Have the aptitude and ability to teach
c. Have willingness towards the profession
d. Have a pleasing personality and capacity for leadership
e. Have the knowledge of teaching principles and methods
f. Be a permanent student, in the sense that he should equip himself with the latest concepts
and knowledge.

2. Preparing the Trainee: The trainee should be made at ease. Most people are somewhat nervous
when approaching an unfamiliar task. Though the instructor may have executed the training
programme many times he or she should never forget the newness to the trainee. The quality of
empathy is a mark of a good instructor.

3. Getting ready to Teach : This stage of the programme is class hour teaching involving the following
activities :
- Planning the programme
- Preparing the instructors outline
- Too much material much be avoided
- The session should move logically
- Each item should be discussed in depth.
- Repetition should be in different words.
- The material should be taken from standardized text
- When the standardized text is not available then the programme should be developed based
on group approach consisting of employer, skilled employees, supervisors, trade union
leaders and others familiar with the job requirements.
- Teach about the standard for trainee like quality, quantity, waste or scrap, ability to work
without supervision, knowledge or procedure, safety rules, human relations etc.

4. Presenting the Operation: There are various alternative ways of presenting the operations viz.
explanation, demonstration. An instructor mostly uses these methods of explanation. In addition one
may illustrate various points through the uses of picture, charts diagrams and other training aids.

5. Try out the Trainees Performance: As a continuation of the training sequence, the trainee should
be asked to start the job or operative procedure. Some instructors prefer that the trainee explains
each step before doing it, particularly if the operation involves any danger. The trainee through
repetitive practice shall acquire more skills.

6. Follow Up: The final step in most training procedures is the follow-up when people are involved in
any problem or procedure it is unwise to assume that things are always constant. Follow up can be
adapted to a variable re-enforcement schedule as suggested in the discussion of learning principles.
Every training programme should have a follow up to improve on the future programmes.

Q 6b. Critically examine Herzberg’s two factor theory.

Ans. 6b. Herzberg Theory of motivation deals with basically two factors.

DISSATISFIERS: The first group (factor) consists of needs such as company policy and administration,
supervision, working conditions, interpersonal relations, salary, status, job security and personal life. These
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factors he called “DISSATISFIERS” and not motivators. Their presence or existence does not motivate in the
sense of yielding satisfaction, but their absence would result in dissatisfaction. They are also known as
hygiene factors.

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

Another WAY to present the above question

Ans 6b. Herzberg’s Classification of Maintenance and Motivational Factors

Sr. Maintenance Factors or Dissatisfiers Motivational Factors or Satisfiers


or Hygiene Factors
1. Job Content Job Content
2. Extrinsic Factors Intrinsic Factors
3. Company Policy and Administration Achievement
4. Quality of supervision Recognition
5. Relations with superiors Advancement
6. Peer Relations Work Itself
7. Relations with subordinates Possibility of Growth
8. Pay Responsibility
9. Job security
10. Work Conditions
11. Status

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

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

- Achieving higher wages and better working and living conditions for the members
- Acquiring the control of industry by worker
- Minimizing the helplessness of the individual workers by making them stand collectively and
against victimization and injustice of the employers
- Raising the status of the workers as partners of the industry and citizens of society by
demanding the increasing share for the workers in the \management of industrial enterprises
- Providing a worker self confidence and self esteem
- Imbibing sincerity and discipline in workers.
- To protect the right to be consulted on all matters affecting the workers interest.
Besides the above functions of the trade unions the national Commission of Labour has entrusted the
following responsibilities on to the trade unions which they execute:

- Promotion of national integration


- Instilling in their members a sense of responsibility towards the industry and the community
- Generally influencing the socio-economic policies of the community through active
participation in their formulation at various levels.

The functions of the trade union can be divided into 5 categories. Viz

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

b. Fraternal Or Extra Mural Functions : These functions include providing financial and nonfinancial
assistance to workers during the period of strikes, lock-outs, extension of medical facilities, during

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sickness and casualties, provision of education, recreation, recreational and housing facilities,
provision of social and religious benefits etc.

c. Social Functions: These functions include carrying out social service activities, discharging social
responsibilities through various sections of the society like educating the customers etc.

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

e. Ancillary Functions: Ancillary functions of trade include Communications to its members. Welfare
activates like acquiring of house sites, construction of houses, and establishment of co-operative
societies. Educating its members and their family. Arranging to conduct research programmes.
Analyzing data for collective bargaining, preparing notes for union officials, for court cases etc. They
also arrange to analyze macro data about the economy, industry and different sectors etc.

Q8. Write short notes on any three:


a. Identification of training needs
b. Job Rotation
c. Principle of Natural justice
d. Workers participation in Management

Ans.8a. Identification of training needs: Training needs are identified on the basis of organizational
anaylsis, job analysis and manpower analysis. Training needs are those aspects necessary to perform the
job in an organization in which employee is lacking attitude/aptitude, knowledge and skills. Basically there
are two type of analysis done to identify the training. One is the Organizational Analysis and the other
Individual Analysis.

Training needs = Job and organizational requirement-Employees specifications

Identification of Training Needs


Sr. Group or Organizational Analysis Individual Analysis
1. To identify Organizational goals and objectives Performance appraisal
2. Personnel/skill inventories Work sampling
3. Organizational Climate indices Interviews
4. Efficiency indices Questionnaires
5. Exit interviews Attitude survey
6. MBO or work planning systems Training progress
7. Quality circles Rating scales
8. Customer survey/satisfaction data Observation of behavior
9. Consideration of current and projected
changes

b. Job Rotation: This type of training involves the movement of the trainee from one job to another.
The trainee received job knowledge and gains experience from his supervisor or trainer in each of the
Different job assignments. Though this method of training is common in training managers for general
Management positions, trainees can also be rotated from job to job in workshop jobs. This method
Gives an opportunity to express his own ideas.

c. Principle of Natural Justice: It is a fair practice of decision making and running the organization.
- All decisions are transparent
- All decisions are adequately documented
- A review process exits for affected employees, with agencies utilizing existing or revised
Grievance processes to enable employees to raise issues arising from the change process.
- Decision making takes into account both the individual and employers needs

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- Relevant and current policy and procedures are well documented and accessible by employees.

d.Workers Participation in Management: The concept of WPM is considered as a mechanism where


Workers have a say in the decision making process of an enterprise. The concept crystallizes the
Concept of industrial democracy and indicates an attempt on the part of an employer to build his
Employees into a team which works towards the realization of a common objective. It is a mental and
Emotional involvement of a person in a group situation which encourages him to contribute to goals
and share responsibilities in them.

The main objective of WPM in management include

- To promote increased productivity for the advantage of the organization, workers and society
at large.
- To provide a better understanding to employees about their role and place in the process of
attainment of organizational goals.
- To satisfy the workers social and esteem needs
- To strengthen labour management co-operation and thus maintaining industrial peace and
harmony.
- To develop social education for effective solidarity among the working community and for
tapping latent human resources.
- An ideological point of view to develop self management in industry
- To build the most dynamic human resource
- To build the nation through entrepreneurship and economic development.

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

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10
HUMAN RESOURCE MANAGEMENT-2002

Attempt any five questions Total 100 marks


All questions carry equal marks
Answers should be in sufficient detail with case examples.

Q1. What are the challenges before the Human Resource function in today’s Indian business
scenario?

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

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

1. Technological factors: Just as necessity is the mother of invention competition and a host of other
reasons are responsible for the rapid technological changes and innovations. As a consequence of
these changes, technical personnel, skilled workers, computer operators and machine operators are
increasingly required while the demand for other categories of employers has declined. Hence
procurement of skilled employees and their increase in numbers to match the changing job
requirements has become a complicated task.

2. Human Resource in the Country: The structure, values and the level of education of human
resource in a country influence much of the Human Resource function. The influence of manpower
in the country can be studies through the changes in structure of employment.
a. Change in the Structure of Employment: The structure of employment in an organization changes
with the entrance of workforce with different backgrounds (Social economic, region, community, sex,
religion, traditions culture etc). There has been a significant change in the structure of employment
with the entry of 1) candidates belonging to the schedule castes, schedules tribes and backward
communities. 2) more female employees, due to increased career orientation among women to the
suitability of women for certain jobs and to women becoming more acclimatized to the working
climate and higher level of commitment. 3) The workforce consists of different regions but due to
increased transportation facilities and mobile character of people. These changes in workforce are a
challenge and a complicated task of HR function. It has to deal with employees with different
backgrounds.

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

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

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

6. Customers: Organizations produce products or render services for the ultimate consumption use by
the customer. In other words organizations depend upon customers for their survival and growth.
Customers revolt against employees, if the services rendered are less qualitative. The banks face
such type of challenges. Customers may develop a negative attitude towards the organization, if it
does not follow the social policies of the country. Hence the customers pose a challenge special ally
in service industry.

7. Social factors: Social environment consists of class structure, mobility social roles social values
nature and development of social institutions caste structure and occupational structure, traditions,
religion culture etc. To cater to everyone’s requirement and keep them happy is a big challenge faced
by HR today.

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

Ans. 2a. Human resource planning means deciding the number and type of the human resources required for
each job, unit and the total company for a particular date in order to carry out organizational activities.
It is a process by which an organization moves from its current manpower position to its desired
manpower position. It is influenced by the strategic management of the co.

STRATEGY HUMAN RESOURCE PLANNING


Expansion Additional human resources of existing categories.
Diversification Additional human resources of different categories
Acquisitions and Mergers Reduction of human resources of managerial positions
Retrenchment Reduction of human resources of almost all the
categories through VRS and other means
Low Cost Leadership Reduction of human resources
Differentiation Strategy Additional human resources of different categories.

Purpose of Human Resource Planning.

- To recruit and retain the human resource of required quantity and quality.
- To foresee the employee turnover and make the arrangements for minimizing turnover and
filling up of consequent vacancies.
- To foresee the impact of technology on work.
- To meet the needs of the programmers of expansion, diversification etc.
- To improve the standards, skill knowledge, ability discipline etc.
- To access the surplus or shortage of human resources and take measures accordingly.
- To maintain congenial industrial relations by maintaining optimum level and structure of
human resources.
- To minimize imbalances caused due to non-availability of human resources of the right kind,
right number in the right time and right place.
- To make the best use of its human resources
- To estimate the cost of human resources.

Important Elements of Human Resource Planning.

- Analyzing Corporate and unit level strategies


- Demand Forecasting: Forecasting the overall human resources requirements in accordance
with the organizational plans.
- Supply Forecasting: Obtaining the data and information about the present inventory of
human resources and forecast the future changes in the human resources inventory.
- Estimating the net human resources requirements

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- In case of future surplus, plan for re-deployment, retrenchment and lay off.
- In case of future deficit, forecast the future supply of human resources from all sources with
reference to plans of other companies.
- Plan for recruitment, development and internal mobility if future supply is more than or equal
to net human resources requirements.
- Plan to modify or adjust the organizational plan if future supply is more than or equal to net
human resource requirements.
- Plan to modify or adjust the organizational plan if future supply will be inadequate with
reference to future net requirements.

Q2. b. What is Job Evaluation?

Ans. 2b. Job Evaluation is the process of determining by observation and study and reporting pertinent
information relating to the nature of a specific job. It is the determination of the tasks which comprise the
job and of the skills, knowledge, abilities and responsibilities of the worker of a successful performance and
which differentiates one job from all others. It is concerned with arrangement of jobs in order of relative
value within a given organization. Once jobs have been evaluated it is then possible to harness a wage or
salary structure to the established hierarchy.

Q3 a. Steps to overcome Resistance to Change.


Ans 3. a. Although change is inevitable it is a common experience that employees resist change whether in
the context of their pattern of life or in the context of their situation in the organization. The best eg. Is
resistance of employees to computerization. Change of and type requires readjustment. Man always fears
the unknown and a change represents the unknown.

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

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


consulted and the purpose of change should be made known to them. Sufficient time
should be given for discussing the pros and cons to the employees.

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

3. Protecting Employees Interest: Management should ensure that employees are


protected from economic loss, loss in status or personal dignity.

4. Group Dynamics: Group dynamics refers to the ever changing interactions and
adjustments in the mutual perceptions and relationships among members of the groups.
Such associations are powerful instruments which facilitates or inhibit adaptation to
change. The management has to positively articulate such groups.

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

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

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

13
8. Training and Development: Based on the change the job should be redesigned.
Management should train the employees before hand and prepare the employees to invite
change. Normally trained and developed employees will not resist change. They would feel
empowered with their enriched skills and knowledge.

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

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

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

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

a. Job Rotation: This type of training involves the movement of the trainee from one job to another.
The trainee received job knowledge and gains experience from his supervisor or trainer in each of the
Different job assignments. Though this method of training is common in training managers for general
Management positions, trainees can also be rotated from job to job in workshop jobs. This method
Gives an opportunity to express his own ideas.

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

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

d. Committee Assignments: Under the committee assignment, a group of trainees are given and asked to
solve an actual organizational problem. The trainees solve the problem jointly. It develops team work.

Q.4.a. Describe the profile of a demotivated worker.

Ans. 4.a. A demotivated worker often shows sign of low morale. Generally not noticed till it is obviously low or
when something has gone amiss. By the time the management recognizes the fact that worker is demotivated,
it is faced with one crisis or another. Perceptive managers are therefore constantly on the look out for clues to
any deterioration in the morale of the employees.

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

1. High rate of absenteeism


2. Tardinees
3. High labour turnover
4. Strikes and sabotage
5. Lack of pride in work and
6. Wastage and spoilage
7. No job satisfaction
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8. Many grievances
9. Does not follow rules and regulations of the company.
10. No Team building spirit hence contribution towards achieving organization goals is
very low.
11. Increases Accidents

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

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

Ans. 4.b. Succession planning is to identify, develop and make the people ready to occupy higher level jobs as
and when they fell vacant. Succession may be from internal employees or external people. Organizations
Appraise employee potentialities, identify training gaps for future vacancies, develop them for higher and
Varied jobs.

The scope of succession plan would be more when the organization grows steadily and employees have
Potentialities to take up higher responsibilities. Successions planning practices followed by various
Companies:

Sr. Company Succession Planning Practices Adopted


1. GE Capital, Lucent Weigh key leadership characteristics accordingly to company
technologies culture and values
2. Eli Lilly Align succession plans with the corporate culture to create a
foundation for success.
3. Clorox Use Performance Metric Tools that are aligned with corporate
culture to organize top potentials
4. GE Customize pieces of the succession planning process to fit
individual business units
5. Glaxo Wellcome Conduct a division by division succession planning process
6. Novartis Match succession planning and development processes to
emerging trends in corporate culture.

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

Ans 5.a. Performance appraisal is a method of evaluating the behaviour of employees in the work place
normally including both the quantitative and qualitative aspects of job performance. Performance refers to the
degree of accomplishment of the tasks that make up an individual’s job. It indicates how ell an individual is
fulfilling the job demands.

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

The key factor in an organization to support an effective performance appraisal system is as follows:
- Organizational planning based on potentialities of human resources.
- Human Resource Planning based on weakness, strengths and potentialities of human resources.
- Organizational effectiveness through performance improvement
- Fixation and refixation of salary, allowances, incentives and benefits
- Original placement or placement adjustment decisions
- Identifying training and development needs and to evaluate effectiveness of training and development
Needs and to evaluate effectiveness of training and development programmes
- Career planning and development and movement of employees

15
The indicators of a successful performance appraisal system at ICODE Software are:
- Culture of the system
- Employees fully trust the system
- Employees treat the system as a means to evaluate their arrears of improvement
- Employees do not see the system as a mere assessment tool
- Openness and transparency in the organization

Sr. Company Performance Appraisal


1. Xerox Provide a core set of metrics for use across organization
2. Toyota Focus performance reviews on goals rather than numbers to
ensure employee alignment
3. Federal Express Daily Performance Measurement Reporting. CEO team weekly
analysis review.
4. Fed Ex Design a balanced scorecard performance measurement system

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


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

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

Ans 6.a. Role of trade union towards workers expectation:


- To attain economic security. Ensuring permanent employment with higher salary and
benefits to the workers.
- To improve their bargaining power and balance it that of the management. To negotiate and
monitor management decisions, regarding policy, promotions transfers, work assignment,
grievance redressal and disciplinary issues.
- To ventilate the workers grievances to the management
- To inform workers views, aims, ideas and dissatisfaction/frustrations to the management
- To secure protection from unexpected economic needs like illness, accidents, injury etc.
- To satisfy their social needs
- To satisfy their psychological needs
- To satisfy their needs for belongingness.
- To provide a worker self confidence
- To acquire control of industry by workers
- To take up welfare measures for improving the morale of the workers
- To raise the status of the workers as partners of the industry and citizens of society by
demanding increasing share for the workers in the management of industrial enterprises.
- Protecting the workers against victimization.
- To provide housing facilities
- To provide for educational, cultural and recreational facilities

Role of trade union towards employer’s requirement of higher productivity:


- To place industry under national ownership and control in a suitable form.
- To organize workers in such a manner as to ensure full employment and the best utilization
of its manpower, other resources and to achieve management objectives.
- To establish just industrial relationships
- To secure redressal of grievances without stoppage of work, by means of negotiation,
conciliation and failing these arbitration and adjunction.
- To make necessary arrangements for the efficient conduct and satisfactory and speedy
conclusion of authorized strikes and satyagraha.
- To foster the spirit of solidarity, service, brotherhood, co-operation and mutual help among
the workers.
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- To develop in the workers a sense of responsibility towards the management, industry and
community.
- To raise the workers standard of efficiency and discipline which in turn will help to achieve
higher productivity.
- To make the workers understand the objectives of the management and accept the same for
the betterment and interest of both.

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

Ans 6.b. Unfair Labour Practices: Normally prevail in an unorganized labour market and especially in the
third world countries. It includes small industries, tiny industrial units, cottage industries, shops and
establishments, hotels, restaurants, mobile business, trading unit’s taxi operator’s agriculture etc. Demand
for and supply of labour is normally casual and contract in nature. They do not follow any systematic or
scientific method of recruitment and selection. Candidates are, mostly employed if they accept low wages.
Organizations normally do not design the jobs. Normally they do not provide employee benefits, welfare
measures, fringe benefits etc. The employees have no choice but accept low wages and are governed by the
employer. There is a lot of ignorance and illiteracy. Superior strength of employer. Weakest bargaining power
of the employee. Casual nature of employment. The employers exploit the employees. Bonded Labour. Child
Labour is a part of unfair labour practices.

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

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

Sr. Organisational structure in Organisational structure in 1950’s Broad Banding*


1950’s (hierarchy containing smaller
number of level or grades
1. Multi layers Flat/delayered Few levels
2. Manufacturing/labour Intensive Feed forward and very less control Empowerment/ownership
3. Autocratic Team Focused Pay the person based on Merit
4. Centralized Adaptive/Mobility Horizontal reinforces
5. Tightly held ownership Flexible Few Rules
6. Individual contributors Decentralized Market Driven
7. Narrow Responsibilities Externally focused

7.b. Distinguish between Induction and Orientation Systems.

Sr. Induction Orientation


1. Introducing the new employee who is Orientation is getting familiar with the policies and
designated as a probationer to the job, job practices followed in the Company.
location, surroundings, organization and
various employees.
2. Induction is the process of receiving and The new employee has to report to the HR Department
welcoming an employee when he first joins at stipulated date and time. From thereon he shall be
a company about the environment of the guided by the HR Chief/Executive. He will be given
job and the organization in order to make brochures describing the organization’s history,
the new employee acquainted products and philosophy. Review of the overall
structure, authority structure and policies and
practices of the company.
3. Gives a sense of belonging and Personnel/HR department will discuss company
commitment to the new employee benefits. New employee is to fill out health, tax and
other relevant forms.
4. Attaching a colleague to the new employee Tour of the main building and auxiliary facilities.
to reduce the new employee anxiety.

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5. Providing written and documented Introduction to the workplace and the dept head and
information through CD/floppies. co-workers.
6. If the first impression is good then it helps Detailed discussion with the Chief Executive HRM
the new employee to adjust to the work /Dept Head about daily jobs routine and department
quickly and the supervisor’s time is saved policies and rules.
to a great extent.
New employee on his own to get familiarized with the
job.

Q 8.Write short notes on any three.


a) Job Description b) Training Needs Analysis c) Employee Manual
d) Organization Downsizing e) Team Effectiveness

Ans 8a. Job Description: Job description is an important document which is basically descriptive in nature
and contains a statement of job analysis. It serves to identify a job for continuation by other job analysts. It
tells us what should be done, why it should be done and where it should be performed.
- The job description should indicate the scope and nature of the work including all important
relationships.
- The job description should be clear regarding the work of the position, duties etc.
- More specific words should be selected to show (a) the kind of work (b) the degree of
complexity (c) the degree of skill required (d) the extend to which problems are standardized
(e) the degree and type of accountability. (f) Supervisory responsibility should be shown to the
incumbents. (g) The basic requirement, experience, works wise, age qualifications etc., should
be stated very clearly.

And 8b. Training Needs Analysis: Training needs are identified on the basis of organizational analysis, job
analysis and manpower analysis. Training programme, training methods and course content are to be
planned on the basis of training needs. Training needs are those aspects necessary to perform the job in an
organization in which is lacking attitude/aptitude, knowledge and skill.

Training needs = Job and organizational requirement-Employees Specifications

Methods used in Training Need Analysis.

Sr. Group or Organizational Analysis Individual Analysis


1. To identify Organizational goals and objectives Performance appraisal
2. Personnel/skill inventories Work sampling
3. Organizational Climate indices Interviews
4. Efficiency indices Questionnaires
5. Exit interviews Attitude survey
6. MBO or work planning systems Training progress
7. Quality circles Rating scales
8. Customer survey/satisfaction data Observation of behavior
9. Consideration of current and projected
changes

Ans. 8. c. Employee Manual: The Employee Manual is a document that an employee can refer to for any
kind of query about the rules and guidelines of an organization. The Employee Manual contains the
following :
• History, growth, organisation and management, products, market, customers etc. of the company.
• Basic conditions of employment - hours of work, shift, holidays, retirement benefits.
• Pay, allowances, deductions.
• Sickness rules, information - pay - sick leave.
• Leave rules - casual, special, earned - holidays, vacation.
• Work rules - work-load, use of materials, equipment, and machine.
• Disciplinary rules and procedure.
• Grievance procedure.
18
• Career path, promotion channel.
• Unions, negotiating machinery.
• Education, training and development facilities.
• Health, Safety, medical care arrangements.
• Canteen and restaurant facilities.
• Social benefits and welfare measures.
• Telephone calls and correspondence.
• Traveling and subsistence expenses.
• Uniforms, clothing.
• Various employees - their designations - position in the organisation.

Ans 8 d. Organisational Downsizing: When there is a surplus of labour the organization is faced with a
problem of downsizing the organization. Because maintaining surplus of labour will eat into the profits of
the Co. It is not easy to pay employees without extracted work from them. In such cases the organization is
faced with a problem of using the existing surplus for some higher category of work by giving them training
or employing them with their sister concern or simply giving the employees a golden handshake through
Voluntary Retirement Scheme (VRS). Another way of downsizing is delayering the organization and rectifies
the situation of overstaffing.

Ans 8 e. Team Effectiveness: Team effectiveness is the result of team work which consists of a group of
jobs that are linked and interconnected with each other for the purpose of performing a total operation. The
total operation is assigned to a group of employees. Though each employee is allotted a job in the team, he
is expected to take up the job of other employees when they fail to do it perfectly. Thus jobs in a team
overlap with each other. Teamwork gains more significance rather than individual jobs. In fact individual
jobs are losing their relevance in the re-engineered businesses, organizations based on supply chain
management. Team effectiveness is essential to serve the customer completely. These days’ organizations
started designing teams and analyzing team work. Most recent organization has realized that teamwork
produces better results than the performance of individual work. Infact practices of Enterprise Resource
Planning (ERP), Business Process Re-engineering (BPRE) and Supply Chain Management require teamwork.
The impact of synergy results in high productivity of teamwork than that of the total of individual
employees. Team effectiveness pertains to minimum acceptable human qualities and relationships necessary
to perform all kinds of activities in a team.

*****************ALL THE BEST******************

19
HUMAN RESOURCE MANAGEMENT-2003

Attempt any five questions Total 100 marks


All questions carry equal marks
Answers should be in sufficient detail with Practical examples and illustrations.
__________________________________________________________________________________________________________

Q1. What are the special problems faced by Indian Corporates in Making Human Resource
Management functions more successful?

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

External Factors.

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

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

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

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

5 Level of Technology: Level of technology determines the kind of human resources required.

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

Internal factors:

7. Company Strategies: Company policies and strategies relating to expansion, diversification,


alliances etc. determine the human resources demand in terms of quality and quantity.

8. Human Resource Policies: Human resource policies of the company regarding quality of human
resources, compensation level, quality of work life etc.

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

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

11. Company’s Production/Operations Policy: Company’s policy regarding how much to produce
and how much to buy from outside to prepare a final product influences the number and kind of
people required.

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

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

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

Internal sources of Recruitment:

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

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

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

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

5. Employee Referrals: Present employees are well aware of the qualifications, attitudes, experience and
emotions of their friends and relatives. They are also aware of the job requirements and organizational
culture of their company. As such they can make preliminary judgment regarding the match between the
job and their friends and relatives.

External Sources of Recruitment

6 Campus Recruitment: These candidates are directly recruited by the Co; from their
college/educational institution. They are inexperienced as far as work experience is concerned.

7 Private Employment Agencies/Consultants: Public employment agencies or consultants like ABC


Consultants in India perform recruitment functions on behalf of a client company by charging fees.
Line managers are relieved from recruitment functions and can concentrate on operational activities.

8 Public Employment Exchanges: The Government set up Public Employment Exchanges in the
country to provide information about vacancies to the candidates and to help the organization in
finding out suitable candidates. As per the Employment Exchange act 1959, makes it obligatory for
public sector and private sector enterprises in India to fill certain types of vacancies through public
employment exchanges.

9 Professional Organizations: Professional organizations or associations maintain complete bio-data


of their members and provide the same to various organizations on requisition. They act as an
exchange between their members and recruiting firm.

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

11 Casual Applicants: Depending on the image of the organization its prompt response participation of
the organization in the local activities, level of unemployment, candidates apply casually for jobs
through mail or handover the application in the Personnel dept. This would be a suitable source for
temporary and lower level jobs.
21
12 Similar Organizations: Generally experienced candidates are available in organizations producing
similar products or are engaged in similar business. The Management can get potential candidates
from this source.

13 Trade Unions: Generally unemployed or underemployed persons or employees seeking change in


employment put a word to the trade union leaders with a view to getting suitable employment due to
latter rapport with the management.

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

15 Consult In: the busy and dynamic companies encourage the potential job seekers to approach them
personally and consult them regarding the jobs. The companies select the suitable candidates and
advise the company regarding the filling up of the positions. Head hunters are also called search
consultants.

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

17 Mergers and Acquisitions: Business alliances like acquisitions, mergers and take over help in
getting human resources. In addition the companies do also alliances in sharing their human
resource on adhoc basis.

18 E_recruitment: The technological revolution in telecommunications helped the organizations to use


internet as a source of recruitment. Organizations advertise the job vacancies through the world wide
wed (www). The job seekers send their applications through e-mail using the internet.

19 Outsourcing: Some organizations recently started developing human resource pool by employing the
candidates for them. These organizations do not utilize the human resources; instead they supply
HRs to various companies based on their needs on temporary or ad-hoc basis.

Merits and Demerits of Internal Sources of Recruitment

Sr. Merits of Internal Sources of Recruitment Demerits of Internal Sources of Recruitment


1. Motivates present employees when they are Trade union pressure may not always give the
upgraded internally. right candidate for the job. The management
may have to consider some concessions.
2. Retrenched workers get an opportunity to Management’s gets a chance to postpone
work again. promotion due to interpersonal conflicts.
3. Dependents of the deceased get a job easily Excessive dependence on this source results in
in-breeding, discourages flow of new blood into
the organization.
4. Morale of employees is improved The organization becomes dull without
innovations, new ideas, excellence and
expertise.
5. Loyalty, commitment, security of present
employees can be enhanced
6. Cost of recruitment, training, induction,
orientation, etc is reduced
7. Trade unions can be satisfied.

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Merits and Demerits of External of Recruitment

Sr. Merits of External Sources of Demerits of External Sources of Recruitment


Recruitment
1. The candidates with skill, knowledge talents Campus recruited employees lack work
etc are generally available. experience.
2. Cost of employees can be minimized. Cost of recruitment is high and there is no
confidentiality.
3. Expertise, excellence and experience in other Specified vacancies have to be filled by
organizations can be easily brought into the candidates referred by employment exchanges
organization. which do not allow other candidates to be
eligible.
4. Existing sources will also broaden their
personality.
5. Human Resource mix can be balanced
6. Qualitative human resource benefits the
organization in the long run.
7. Reduction in time for recruitment
8. Increase in the selection ratio i.e. recruiting
more candidates.
9. HR professionals can concentrate on
strategic issues.

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

Ans 3. Motivation is derived from the word “Motive”. A motive is an inner state that energizes, activates or
moves and directs or channels behavious towards goals. It represents an unsatisfied need which creates a
state of tension or disequilibrium causing the individual to move in a goal directed pattern towards restoring a
state of equilibrium by satisfying the need. Motivation is a process that starts with a physiological deficiency
or need that activates behavious or a drive that is aimed at a goal or incentive. Thus the process of motivation
lies in the meaning of and relationship among needs, drives and incentives.

The Basic Motivation Process = Needs-----------Æ Drives--------------------------Æ Goals/Incentives


(Deficiency) (Deficiency with Direction) Reduction of drives and
fulfills deficiencies.
It is a bare fact that most of us use only a small portion of our mental and physical abilities. To exploit the
unused potential in people they are to be motivated. Needless to say that such exploitation results in greater
efficiency, higher production and better standard of living of the people. There are basically two types of
motivation vis 1) Positive Motivation and Negative Motivation.

1. Positive Motivation: People are said to be motivated positively when they are shown a rewards and the way
to achieve it. Such a reward may be financial or non financial. Monetary motivation may include different
incentives, wage plans, productive bonus schemes etc. Non monetary include praise for work, participation
in management, social recognition. Monetary incentives provide the worker a better standard of life while
non monetary incentives satisfy the ego of a man.
2. Negative Motivation: It is induced by installing fear in the minds of people; one can get the desired work
done. In this method of motivation fear of consequences of doing something or not doing something keeps
the worker in desired direction. This method has got several limitations. Fear Creates frustration, a hostile
state of mind and an unfavorable attitude towards the job which hinder efficiency and productivity. So the
use of it should be kept minimum.

Theories of Motivation: There are several theories on motivation. The significant among them are Maslow’s
Hierarchy of Needs, Herzber’s Two Factor Theory, Vrooms Expectancy Theory, Porter and Lawler’s

23
Expectancy Theory and Equity Theory of Work Motivation. We shall discuss 1. Maslows Theory of Hierarchy
of Needs and 2. Herzberg Two Factor Theory.

1. Maslows Theory of Hierarchy of Needs :


According to Maslow, human needs form a hierarchy, staring at the bottom with the physiological needs
and ascending to the highest need of self actualization. He says when one set of needs is satisfied; they
no longer work as motivators as a man seeks to satisfy the next higher level of needs.

__________________________________________________
Need for Self-Actualization
__________________________________________________
Physiological Needs
__________________________________________________
Esteem Needs
__________________________________________________
Social Needs -Affiliation or
Acceptance Needs
__________________________________________________
Security of Safety Needs
__________________________________________________
Physiological Needs
__________________________________________________
MASLOW”S HIERACHY OF NEEDS
==========================================

The Need Hierarchy:

1. Physiological Needs: These are the basic necessities of human life, food, water, warmth, shelter,
sleep and sexual satisfaction. Maslow says that until these needs are satisfied to the required level,
man does not aim for the satisfaction of next level of needs. As far as work environment is
concerned, these needs include basic needs like pay, allowance, incentives and benefits.
2. Security/Safety Needs: These refer to the need to be free of physical danger or the feeling of loss of
food, job or shelter. When the physiological needs are satisfied, man starts thinking of the way by
which he can satisfy his safety needs. Security needs spring up the moment he makes an effort in
the direction of providing himself the source of continuity of physiological needs. In a work
environment these needs include conformity, security plans, membership in unions, severance pay
etc.
3. Social Needs: (Affiliation or Acceptance Needs) When the physiological and security needs are
satisfied, these social needs begin occupying the mind of a man. This is exactly why he looks for
the association of other human beings and strives hard to be accepted by this group. Social needs
at the work place include: Human relations, formal and informal work groups.
4. Esteem Needs: These needs are power, status and self confidence. Every man has a feeling of
importance and he wants others to regard him highly. These needs makes people aim high and
make them achieve something great. These needs for employees include status symbols, awards,
promotions, titles etc.
5. Self Actualization Needs: This is the highest need in the hierarchy. This refers to the desire to
become what one is capable of becoming. Man tries to maximize his potential and accomplish
something, when this need is activated in him.

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

DISSATISFIERS: The first group (factor) consists of needs such as company policy and administration,
supervision, working conditions, interpersonal relations, salary, status, job security and personal life. These
factors he called “DISSATISFIERS” and not motivators. Their presence or existence does not motivate in the

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sense of yielding satisfaction, but their absence would result in dissatisfaction. They are also known as
hygiene factors.

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

Another WAY to present the above question

Herzberg’s Two Factor Theory: Classification of Maintenance and Motivational Factors

Sr. Maintenance Factors or Dissatisfiers Motivational Factors or Satisfiers


or Hygiene Factors
1. Job Content Job Content
2. Extrinsic Factors Intrinsic Factors
3. Company Policy and Administration Achievement
4. Quality of supervision Recognition
5. Relations with superiors Advancement
6. Peer Relations Work Itself
7. Relations with subordinates Possibility of Growth
8. Pay Responsibility
9. Job security
10. Work Conditions
11. Status

Q4. What are the merits of formal organization structure?


Ans. 4. A formal organizational structure composes of job descriptions, organization charts, procedures and
other written documents which describe and define how individuals should work with each other. A formal
organizational structure is the organization as it exist son paper. It is the official sanctioned way of doing
things. It tells you who reports to whom and how various problems should be handled. The merits of a
formal organizational structure are as follows:

1. Overall Effectiveness: Overall effectiveness is high because the delegation of work


and attainment of the organisational goals and objectives is well defined.
2. Goal Attainment: The organization accomplishes what it sets out to accomplish.
3. Profit Making: A favourable ‘bottom line” which is the main aim of an organization is
achieved.
4. Staying within Budget: Due to limited resources and guidelines for budgets and
spending the co is a lesser risk of running into losses.
5. Achieving New Goals: A successful organization emphasizes the attainment of new
and important goals.
6. Adaptability to change: A well structured organization has good problem solving
ability and capacity to change as per the need of the hour.
7. Stability: An organization that is able to maintain its basic charter and size over time
is considered to be stable.
8. Quality: High quality of goods and services can be expected of well structured
organizations.
9. Growth: There is an increase in factors like work force, plant capacity, assets, sales,
profits, market share and no of innovations.
10. Managerial Skills: A well structured organization gives a lot of emphasis on the
quality and qualifications of the employees. Professionals/specialist is employed to
guide, perform and achieve the organizational goals and objectives. Without
competent managers the Co., will not able to survive.
11. Control: The management has a good control over the employees and also inventory
which is very essential for the smooth functioning of an organization.

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12. Proper management of conflict: An organization may require some conflict to be
effective, but too much conflict detracts from effectiveness. In an organized structure
people conform to the same code of conduct and conflict is usually held in check.
13. Participation in decision making: The employees are sometimes given a chance to
participate in decisions pertaining to them. This also boosts them and keeps them
motivated. It gives them a sense of belonging and a sense of loyalty to the Co.
14. Absenteeism: Since the employees are highly motivated problems like absenteeism
etc are minimum.
15. Job satisfaction: The job satisfaction is very high among employees. It induces high
morale which in turn leads to high productivity.
16. Training and Development of employees: Helps in the up gradation and development
of the employee and gives him an opportunity to grow within the organization.

Q5. What are the objectives of “Performance Appraisal System” What are sources of error in the
appraisal process.

Ans. 5. Performance appraisal is a method of evaluating the behaviour of employees in the work place
normally including both the quantitative and qualitative aspects of job performance. Performance refers to the
degree of accomplishment of the tasks that make up an individual’s job. It indicates how ell an individual is
fulfilling the job demands.

Every organization has to decide upon the content to be appraised before the programme is approved on the
basis of job analysis. The content to be appraised may vary with the purpose of appraisal and type and level of
employees Performance Appraisal is a method of evaluating the behaviour of employees in the workplace.

Objectives of Performance Appraisal System:

1. To create and maintain a satisfactory level of performance.


2. To contribute to the employee growth and development through training, self and management
development programmes. Tata Power aims at employee development through performance appraisal.
3. To help the superiors to have a proper understanding about their subordinates
4. to guide the job changes with the help to continuous ranking
5. To facilitate fair and equitable compensation based on performance.
6. To facilitate for testing and validating selection tests, interview techniques through comparing their scores
with performance appraisal ranks.
7. to prove information for making decisions regarding lay off, retrenchment etc as in the case of Hyundai
Engineering

HYUNDAI 1,00O JOBS TO GO CUT


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

Sources of Error in Performance Appraisal:

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

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

b. The Error of Central Tendency: Some raters follow play safe policy in rating by rating all the
employees around the middle point of the rating scale and they avoid rating the people at
both the extremes scale. They follow play safe policy because of answerability to the

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management or lack of knowledge about the job and person he is rating or has least interest
in the job.

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

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

e. The Recency Effect: The raters generally remember the recent actions of the employee at the
time of rating them on the basis of these recent actions favourable or unfavourable-rather
than on the whole activities.

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

Ans. 6. The specification of values forms a basis of evaluation. The process of training evaluation has been
defined as “any attempt to obtain information on the effects of training performance and to access the value
of training in the light of that information. The various methods of training evaluation are:
1. Immediate assessment of trainee’s reaction to the programme.
2. Trainee’s observation during the training programme.
3. Knowing trainees expectations before the training programme and collecting their views regarding the
attainment of the expectations after the training
4. Seeking opinion of the trainee’s superior regarding his/her job performance and behaviour before
and after training.
5. Evaluation of trainee’s skill level before and after the training programme.
6. Measurement of improvement in trainees on the job behaviour.
7. Examination of the testing system before and after sometime of the training programme.
8. Measurement of trainee’s attitudes after training programme.
9. Cost-benefits analysis of the training programme.
10. Seeking opinion of trainee’s colleagues regarding his/her job performance and behaviour.
11. Measurement of levels in absenteeism, turnover, wastage/scrap, accidents, breakage of the
machinery during pre and post period of the training programme.
12. Seeking opinions of trainees subordinates regarding his/her job performance and behaviour

The Evaluation of a Training has bearing on its Design. It should be well defined in meeting specific
objectives. The nomination of employees should be based on the need of training. The trainers should be
qualified and experienced. The training calendar should be discussed with the manager. Training needs
should be identified through job description, performance appraisal and potential appraisal discussions.

1. Reaction: The design of the training depends on the trainee’s reaction to the usefulness of coverage
of the matter, depth of the course content, method of presentation, teaching methods etc.
2. Learning : Training programme, trainers ability and trainee ability are evaluated on the basis of
quantity of content learned and time in which it is learned and the learners ability to use or apply
the content he learned. All these factors depend on the Training Design.
3. Job Behaviour : The training design helps in identifying the manner and extent to which the trainee
has applied his learning to his job.
4. Organisation : The training design helps in measuring the use of training, learning and change in
the job behaviour of the department/organization in the form of increased productivity, quality,
morale, sales turnover and the like.
5. Ultimate Value: It is the measurement of the ultimate result of the contributions of the training
programme to the Company goals like survival, growth, profitability etc. and to the individual goals
like development of personality and social goals like maximizing social benefits.

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Q7. Discuss the methods of reliability. How is reliability of “interview” as a selection instrument
found?”

Ans 7. Selection is a process of selecting the right candidate for the right job. It is about collecting
information about the candidate’s qualifications, experience, physical and mental ability, nature and
behaviour, knowledge, aptitude etc for judging whether a given applicant is suitable or not for the job. The
test of reliability in the selection process can be carried out through various methods as discussed below:

1. Written Examination: The organization have to conduct written examination for the qualified
candidates after they are screened on the basis of the application blanks so as to measure the
candidate’s ability in arithmetical calculations, to know the candidates attitude towards the job, to
measure the candidates aptitude, reasoning, knowledge in various disciplines, general knowledge
and English language.

2. Preliminary Interview: The preliminary interview is to solicit necessary information from the
prospective applicants and to assess the applicant’s suitability to the job. The information provided
by the candidate may be related to the job or personal specifications regarding education, experience,
salary expected aptitude towards the job, age physical appearance and other physical requirements
etc. Thus preliminary interview is useful as a process of eliminating the undesirable candidates. If a
candidate satisfies the job requirement regarding most of the arrears he may be selected for further
process. Preliminary interviews are short and known as stand-up interviews or sizing up of the
applicants or screening interview. This interview is also useful to provide the basis information about
the company to the candidate.

3. Business Games: Business games are widely used as a selection technique for selecting
management trainees, executive trainees and managerial personnel at junior, middle and top
management positions. Business games help to evaluate the applicants in the areas of decision
making, identifying the potentialities, handling the situations, problem-solving skills, human
relations skills etc. Participants are placed in a hypothetical work situation and are required to play
the role situations in the game.

4. Group Discussions: The technique of group discussion is used in order to secure further
information regarding the suitability of the candidate for the job. Group discussion is a method
where groups of the successful applicants are brought around a conference table and are asked to
discuss either a case study or a subject matter. The candidates in the group are required to analyze,
discuss, find alternative solutions and select the sound solution. A selection panel then observes the
candidates in the areas of initiating the discussion, explaining the problem, soliciting unrevealing
information based on the given information and using common sense, keenly observing the
discussion of others, clarifying controversial issues, influencing others, speaking effectively,
concealing and mediating arguments among the participants and summarizing or concluding aptly.
The selection panel, based on its observations, judges the candidates skills and ability and ranks
them according to their merit.

BUSINESS GAMES AND THEIR UTILITY IN THE SELECTION PROCESS


Business Games Utility
(1) Case Study Analytical, judgmental and decision-making skills
(2) Role Play Human relations skills.
(3) In-basket method Situational judgment, social relations, decision-making skills,
problem-solving skills.
(4) Sensitivity Degree of openness, concern for others, tolerance for individual
differences.
(5) Simulations Encountering skills.
5. Test: Psychological tests play a vital role in employee selection. A psychological test is essentially
an objective and standardized measure of sample of behaviour from which inferences about future
behaviour and performance of the candidate can be drawn.
Types of Test
1. Aptitude Tests:
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(a) Intelligence Test (IQ)
(b) Emotional Quotient
(c) Skill Tests
(d) Mechanical Aptitude
(e) Psychomotor Tests
(f) Clerical Aptitude Tests
2. Achievement Tests:
(a) Job Knowledge Test
(b) Work Sample Test
3. Situational Tests:
(a) Group Discussion
(b) In Basket
4. Interest Test
5. Personality Tests:
(a) Objective Tests
(b) Projective Tests
6. Multi-Dimensional Testing

Eg.: Multi-Skilling : Multi-Dimensional Testing : L&G has realised that most of the company operations
whether they are production or marketing or finance or human resources can be done by almost all the
employees. Experts are needed only in rare cases. Infact, services of the experts can be outsourced. As
such, L&G started selecting the candidates with multi-skills and who can perform a variety of functions.
L&G developed multi-dimensional testing.

Reliability of Interview: This is the most essential step in the process of selection. In this step, the
interviewer matches the information obtained about the candidate through various means to the job
requirements and to the information obtained through his own observation during the interview.
Types of Interview: The types of Employment interviews are:
1. Preliminary Interview

(a) Informal Interview


This is the interview which can be conducted at any place by any person to secure the basic and non-
job related information. It is the interaction between the candidate and the personal manager when the
former meets the latter to enquire about the vacancies or additional particulars in connection with the
employment advertisement etc.

(b) Unstructured Interview


In this interview the candidate is given freedom to tell all about himself by revealing his knowledge on
various items/arrears, his background, expectations, interest etc. The interviewer also may answer
some information required by the candidate.
2. Core Interview: It is normally the interaction between the candidate and the line executive or experts
on various areas of job knowledge, skill, talent etc.

(a) Background information interview


This interview is intended to collect the information which is not available in the application blank and
to check that information provided in the application blank regarding education, place of domicile,
family, health, likes, dislikes and extra curricular activities of the applicant.

(b) Job and probing interview


This interview aims at testing the candidate’s job knowledge about duties, activities, methods of doing
the job, critical/problematic areas, and methods of handling those areas.

(c) Stress interview


This interview aims at testing the candidate’s job behaviour and level of withstanding during the period
of stress and strain. The interviewer tests the candidate by putting him under stress and strain by
interrupting the applicant from answering, criticizing his opinions, asking questions pertaining to
unrelated areas etc. Stress during the middle portion of the interview gives effective results.

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(d) Group discussion interview
There are two methods of conducting group discussion interviews viz group interview method and
discussion method. This type of interview helps the interviewer in appraising certain skills of the
candidates like initiative; inter personal skills, dynamism, presentation, leading, comprehension,
collaboration etc.

(e) Formal and structured interview


In this type of interview, all the formalities, procedures like fixing the value, time, panel of interviewers,
opening and closing, intimating the candidates officially etc. are strictly followed in arranging and
conducting the interview. The course of the interview is pre-planned and structured, in advance
depending on job requirements. The questions for discussion are structured and experts are allotted
different areas and questions to be asked.

(f) Panel interview


A panel of experts interviews each candidate, judges his performance individually and prepares
consolidated judgement. This type of interview is known as panel interview.

(g) Depth interview


The candidate is examined extensively in core areas of job skills and knowledge. Experts test the
candidate’s knowledge in depth. Depth interviews are conducted for specialized jobs.

(h) On Line Interview: Information technology brought significant developments in the selection
process of employees. The vital development is on-line interview where the interview is conducted
online. These techniques include, on-line submission, internet based recruiting, outsourcing
employment function, sophisticated scanning and searching.
3. Decision-Making Interview
After the candidates are examined by the experts including the line managers of the organization in the
core areas of the job, the head of the department/section concerned interviews the candidate once
again, mostly through informal discussion. The interviewer examines the interest of the candidate in
the job, organization, reaction/adaptability to the working conditions, career planning, promotional
opportunities, work adjustment and allotment etc. The Personnel Manager also interviews the
candidates with a view to find out his reaction/acceptance regarding salary, allowances, benefits,
promotions, opportunities etc.

During various types of interviews depending on the job requirement the interviewer can see and analyse the
strengths, weaknesses and potentials of the candidate. Whether he is suitable for the job, whether he is the
right candidate. Various types of interviews help the interviewer to arrive at different conclusion. Eg. A
Stress Interview helps to analyse whether a candidate can perform under stress and pressure and whether
he can take a right decision at such times. Most of the organizations have realized recently that the
employees’ positive attitude contribute much rather than employees skills and knowledge. Employees with
positive attribute contribute much to the organization. Hence the interviewers look for the candidates with
the right attitude while making final decisions.

Attitude Counts Much, but not the Skill

InfoTech Limited discovered that the employees with right attitude take up the activities willingly on their
own. They acquire the necessary skills, if they do not possess them. They never say ‘no’ to other employees,
superiors and customers. Hence the interviewers with right and or positive attitude, irrespective of their
technical al skills and knowledge.

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Q 8.Write short notes on any three of the following :-
a) Job Rotation b) Multi Skilling c) Job Evaluation
d) Managing Change e) Resolving Conflict

Ans 8a. Job Rotation: Job rotation refers to the movement of an employee from one job to the other. Jobs
themselves are not actually changed, only the employees are rotated among various jobs. An employee who
works on a routine/respective job moves to and works on another job for some hours/days/months and
backs up to the first job. This measure relieves the employee from boredom and monotony, improves
employee’s skills regarding various jobs, prepares the competent employees and provides competitive
advantages to the company. These measures also improve worker’s self-image and provide personal growth.
However, frequent job rotations are not advisable in view of their negative impact on the organisation and
the employee.

b. Multi Skilling : The transferring of executives from job to job and from department to department in a
systematic manner is called Job Rotation. When a manger is posted to a new job as part of such a
programme, it is not merely an orientation assignment. He has to assume the full responsibility and
perform all kinds of duties. The ideal behind this is to give him the required diversified skills and a broader
outlook which are very important at the senior management levels. It is upto the management to provide a
variety of job experiences for those who have the potential for higher ranks before they are promoted. Job
rotation increases the inter-departmental co-operation and reduces the monotony of work. It makes the
executives in general management and does not allow them to confine themselves to their specialised field
only.

c. Job Evaluation : Job evaluation deals with money and work. It determines the relative worth or money
value of jobs. The International Labour Organisation defined job evaluation as “an attempt to determine and
compare demands which the normal performance of a particular job makes on normal workers without
taking into account the individual abilities or performance of the workers concerned”. Wendell L. French
defined job evaluation as “a process of determining the relative worth of the various job within the
organisation, so that different wages may be paid to jobs of different worth”. Job evaluation is defined as
“the overall activity of involving an orderly, systematic method and procedure of ranking, grading and
weighing of jobs to determine the value of a specific job in relation to other jobs”. British Institute of
Management (1970) defined job evaluation as, “the process of analysing and assessing the content of jobs, in
order to place them in an acceptable rank order which can then be used as a basis for a remuneration
system. Job evaluation, therefore, is simply a technique designed to assist in the development of new pay
structures by defining relatives between jobs on a consistent and systematic basis”. Thus, job evaluation
may be defined as a process of determining the relative worth of jobs, ranking and grading them by
comparing the duties, responsibilities like skill, knowledge of a job with other jobs with a view to fix
compensation payable to the concerned job holder.

d. Managing Change : The term ‘Organisational Change’ implies the creation of imbalances in the existent
pattern or situation. Adjustment among people, technology and structural set up is established when an
organisation operates for a long time. People adjust with their jobs, working conditions, colleagues,
superiors etc. Similarly, an organisation establishes relationship in the external environment. Change
requires individuals and organisations to make new adjustments. Complexity and fear of adjustment gives
rise to resistance and problem of change. Human resource is an important factor in relation to the
adjustments among individuals as well as between the organisation and environment, as an organisation is
mostly composed of people. Individual members can resist either individually or in a group. Change could
be both reactive and proactive. A proactive change has necessarily to be planned to attempt to prepare for
anticipated future challenges. A reactive change may be an automatic response or a planned response to
change taking place in the environment.

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e. Resolving Conflict : The methods of resolving conflicts generally include:

Methods of Resolving Conflicts


|

| | | | |

Investigation Mediation Conciliation Voluntary Arbitration Compulsory Arbitration/Adjunction

1. Investigation: This is conducted by a board or court appointed by the government. It may be


voluntary or compulsory. If the investigation is conducted on an application by either or both the
parties to the dispute it is voluntary. If the Government appoints a Court of Inquiry without the
consent of the parties it is compulsory. Investigations analyse the facts and aim at an amicable
solution. When the investigation is compulsory, the strikes and lockouts are required to be stopped
and employers should not make any change in the conditions of employment.

2. Mediation: Another attempt to settle disputes is Mediation. In this method, an outsider assists the
parties in their negotiations. It takes place with the consent of both the parties. The main aim of
mediator is the settlement of disputes by bringing about a voluntary agreement. There may be three
kinds of mediation:
a. The Eminent Outsider
b. Non-Government Board and
c. Semi Government Board.

If mediation is conducted skillfully and sympathetically then it can bring about the adjustments of
differences that might otherwise contribute to stoppage of work.

3. Conciliation: The main objective of a conciliation and arbitration is to reunite the two conflicting
groups in the industry in order to avoid interruption of production, distrust etc. Conciliation is a
process by which representatives of both workers and employers are brought together before a third
party with a view to persuading them to arrive at some sort of settlement. It is an extension of
collective bargaining with third party assistance. Conciliation machinery consists of conciliation
officer and board of conciliations. The conciliator induces the parties to a course of action. He plays
the role of an innovator, protector, discussion leader, stimulator, advisor, face saver. He acts as a
safety value and a communication link. The task of conciliation is to offer advice and make
suggestions to the parties to the dispute on controversial issues.

4. Voluntary Arbitration: if the two parties to the dispute fail to come to an agreement, either by
themselves or with the help of a mediator or conciliator, who agrees to submit the dispute to an
impartial authority, whose decision, they are ready to accept. The essential elements in voluntary
arbitration are :
b. The voluntary submission of dispute to an arbitrator.
c. The subsequent attendance of witness and investigations and
d. The enforcement of an award may not be necessary

5. Compulsory Arbitration/Adjudication: Where trade unions are weak the method of compulsory
Arbitration is used. Compulsory Arbitration is utilized generally when the parties fail to arrive at a
settlement through the voluntary methods. It is at times necessary and desirable. The objective of
state intervention in the field of industrial relations should be to do social justice and make the
weaker party equally strong to enable it ultimately to stand and survive on its own and settle its
differences through negotiations and collective bargaining. Compulsory arbitration is one where the
parties are required to arbitrate without any willingness on their part. Any one of the parties may
apply to the appropriate governments to refer the dispute to adjudication machinery.

**************ALL THE BEST*******************


32
HUMAN RESOURCE MANAGEMENT-2004

Attempt any five questions Total 100 marks


All questions carry equal marks
Answers should be in sufficient detail with Practical examples and illustrations.
__________________________________________________________________________________________________________

Q1. What is Personnel Policy? Describe the important personnel policies that affect the job of a
Personnel Manager.

Ans 1. A personnel policy is a plan of action, a set of proposals and actions that act as a reference point for
managers in their dealings with employees. Personnel policies constitute guides to action. They
furnish the general standards or bases on which decisions are reached. Their genesis lies in an
organization’s values, philosophy, concepts and principles”. Personnel guide the course of action
intended to accomplish personnel objectives. A policy is a guideline for making wise decisions. It
brings about stability in making decisions. A policy is a stance, often a choice made between two or
more alternatives, such as the choice between promoting employees on than basis of merit versus
promoting them on the basis of seniority.

Example:

HRM Policy in Indian Railways

One of the personnel objectives of Indian Railways is to provide equal employment opportunities to the
people of minority sections. Personnel policy of Indian Railways relating to the above objectives is to fill 15%
and 7.5% of the vacancies from those candidates belonging to Scheduled Castes and Scheduled Tribes
respectively.

The Health & Safety Policy: The policy statement should be a declaration of the intention of the employer the
health and safety of his employees. It should emphasize four fundamental points
1. The safety of employees and the public is of paramount importance.
2. that safety will take precedence over expediency
3. that every effort will be made to involve all managers, supervisors and employees in
the development and implementation of health and safety procedures
4. That health and safety legislation will be compiled within the spirit as well as the
letter of the law.

Recruitment Policy: In order to have consistency throughout an organization, it is necessary to lay down
certain principles as guidelines for both management and staff. The basic principle is the organizations
attitude towards filling vacancies, whether from within or outside. If the organization is strongly unionized it
is probable that a policy or promotion from within wherever possible is agreed with the unions. It takes care
of providing the right man for the right job at the right time. Recruitment policy takes into consideration the
government’s reservation policy, policy regarding sons of the soil etc. Personnel policies regarding merit,
internal sources, social responsibility in absorbing minority sections, women etc.Recruitment policy commits
itself to the organizations personnel policy like enriching the organization’s human resources, motivating the
employees through internal promotions, improving the employee’s loyalty to the organization. While
formulating a recruitment policy the following factors should be taken care of by the Personnel manager:

1. Government Policies
2. Personnel policies of other competing organizations
3. Organization’s personnel policies
4. Recruitment sources
5. Recruitment needs
33
6. Recruitment cost
7. Selection criteria and preference

Working Conditions Policy: This policy deals with the hours of work, shift, holidays, and retirement benefits.

Pay Allowances & deductions Policy: It defines the rules and eligibility for payment of different allowances. It
also states the heads of deductions applicable.

Leave Policy: The Leave policy defines the sickness rules, the leave allowed every year which includes casual,
special, earned, holiday leave. LTA payment etc. The Maternity Leave benefits etc.

Work Rules Policy: It defines the work load, use of materials, equipment and machines.

Disciplinary Policy: This policy defines the code of conduct to be followed by every employee in his
workplace. It defines the business ethics that are expected to be followed by every employee. It clearly states
the consequences to for violating such rules.

Grievance Policy: It defines the procedure to be followed to address any grievance that an employee may
wish to address.

Social Benefit Policy: Most of the organizations have some social benefit scheme which is defined under this
policy.

Superannuation/Pension Policy: The employees need to be taken care after superannuation too. The policy
for the same and the procedure for availing pension are also defined.

Gratuity/PF Policy: The rules for gratuity are defined under this policy. It includes eligibility etc and the
maximum about that will be paid. In Pf it defines the process of availing loan/ withdrawing/transferring the
PF as the case may be applicable.

Housing loan Policy: Some Co’s take care of their employees housing needs too. They give them subsidiary in
interest on housing etc. Or they provide them with a house too. The eligibility and deduction of HRA etc., if
the co.’ provides the house etc. is all defined.

Promotion Policy: This is one of the most important policies. A well defined promotion policy will keep the
employees motivated and achieve the Co’s goals for the betterment of the Co and self too.

Transfer Policy: The guidelines for transfer etc are defined here. This policy becomes a very important
document of reference in banks etc where transfers are done on a frequent basis.

Q2. What is Manpower Planning? What factors do you consider while forecasting, manpower needs of
an organization?

Ans 2. Manpower planning means planning means deciding the number and type of the human resources
required for each job, unit and the total company for a particular future date in order to carry out
organizational activities. Manpower planning may be viewed as foreseeing the human resources requirement
of an organization and the future supply of human resources and (i) making necessary adjustments between
these two and organizational plans and (ii) foreseeing the possibility of developing the supply of manpower
resources in order to match it with the requirements by introducing necessary changes in the functions of
human resources management.

The important objectives of manpower in an organization are


1. to recruit and retain the manpower of required quality and quantity.
2. to foresee the employee turnover and make the arrangements for minimizing turnover and filling
up of consequent vacancies.
3. to meet the needs of the programmes of expansion, diversification etc.

34
4. to foresee the impact of technology on work, existing employees and future human resource
requirements.
5. to improve the standards, skill, knowledge, ability, discipline etc.
6. to assess the surplus or shortage of manpower and take measures accordingly.
7. to maintain congenial industrial relations by maintaining optimum level and structure of human
resources
8. to minimize the imbalances caused sue to non-availability of human resources of the right kind,
right number in right time and right place.
9. to make the best use of its human resources and
10. to estimate the cost of human resources.

Factors to be considered while forecasting, manpower needs of an organization.

- Analysing the corporate and unit level strategies.


- Demand Forecasting: Forecasting the overall human resources requirements in accordance
with the organisational plans.
- Supply Forecasting: Obtaining the data and information about the present inventory of
manpower and forecast the future changes in the human resources inventory.
- Estimating the net manpower requirement.
- In case of future surplus than plan for redeployment.
- In case of future deficit, forecast the future supply of manpower from all sources with
reference to plans of other companies.
- Plan for recruitment, development and internal mobility if future supply is more than or equal
to net manpower requirements.
- Plan to modify and adjust the organizational plan if future supply will be inadequate with
reference to future net requirements.
- Degree of uncertainty and length of planning period.

The above points are discussed in details:

Demand Forecasting: The existing job design and analysis may thoroughly be reviewed keeping in view the
future capabilities, knowledge and skills of present employees. Further the jobs should be redesigned and
reanalyzed keeping in view the organizational and unit wise plans and programmes, future work quantum,
future activity or task analysis, future skills, values, knowledge and capabilities of present employees and
prospective employees. The jobs generally should be designed and analysed reflecting the future human
resources and based on future organizational plans. Job analysis and forecast about the future components
of human resources facilitate demand forecasting. One of the important aspects of demand forecasting of the
quantity of human resources (skill, knowledge values, capabilities etc) in addition to quantity of human
resources. Important forecasting methods are:
1. Managerial Judgement: Under this method, managers decide the number of employees required
for future operations based on their past experience.
2. Statistical Techniques Include: ratio trend analysis and econometric models. Under ratio trend
analysis, ratios are calculated for the past data and these ratios are used for the estimation of the
future manpower requirements For eg.
- Present level of production (1-1-2005) 2000 units
- Present number of foremen (1-1-2005) 5
- Ratio is 2000/4 500
- Estimated production as on (1-1-2005) 5000 units
- Foreman required as on (1-1-2005) 5000/500 = 10
Econometric models for manpower planning are built up by analyzing the past statistical data
and by bringing the relationship among variables.
3. Work Study Techniques: Under this method, total production and activities in terms of clear
units are estimated in a year. Then man-hours required to produce each unit is calculated, Later
the required number of employees is calculated. For eg.

- Planned operations during 2005 = 1,60,000 units


- Standard man-hours needed to perform each unit in 2005 = 0.25
- Planned man-hours needed per year in 2005 = 40,000
35
- Work ability per employee in man-hours in 2005 = 2,000
- Number of employees required in 2005 = 40000/20000=20

Supply Forecasting

The first step of forecasting the future supply of human resources is to obtain the data and information
about the present human resources inventory.

Existing Inventory: The data relating to present human resources inventory in terms of humans
components, number, designation-wise and department wise would be obtained. Principal dimensions of
manpower planning are:
1. Head counts regarding total, department wise, sex-wise, designation-wise, skill-wise, pay roll wise
etc.
2. Job Family Inventory : It includes number and category of employees of each job family i.e. all jobs
related to the same category like clerks, cashiers, sub job family i.e. all jobs having common job
characteristics (skill, qualification, similar operations) like production engineer (mechanical) and
maintenance engineer (mechanical) and broad families like general administration, production etc.
3. Age Inventory: It includes age-wise number and category of employees. It indicates age wise
imbalances in present inventory which can be correlated in future selections and promotions.
Existing inventory at a future date is calculated as follows:

Existing inventory at = Present Inventory + Potential additions - Potential Losses


A future date as on today

Estimating the Net Man Power Requirements: Net manpower requirements in terns of number and
components are to be determined in relation to the overall man power requirements for a future date and
supply forecast for that date. The difference between overall manpower and future supply of manpower is
to be found out. The difference is the net manpower requirement.

Action Plan for Redeployment, Redundancy/Retrenchment: If future surplus is estimated, the


organization has to plan for redeployment, redundancy etc. If surplus is estimated in some
jobs/departments, employees can be redeployed in other jobs/departments where the deficit of employees
is estimated. The organization should also plan for training or re-orientation before redeployment of
employees. Redeployment takes place in the form of transfers. If the deficit is not estimated in any
job/department and surplus is estimated for the entire organization, the organization, in consultation with
the trade unions has to plan for redundancy or retrenchment.

Recruitment and Selection Plan : Recruitment and selection plan covers the number and type of
employees required, when they are required for the job, time necessary for recruitment and selection
process, recruitment sources, recruitment techniques to be used, selection procedure to be adopted and
selection techniques to be used to subsequently recruiting the required candidates. It also covers the time
factor for induction, preliminary training and placement.

Q.3. What is Job Design? How is it different from Job Analysis? Explain with suitable examples.

Ans 3. Job design is defined as the process of deciding on the content of a job in terms of duties,
responsibilities of job holders; on the methods to be used in carrying out the job, in terms of techniques,
systems and procedures and on the relationships that should exist between the job holder and his
superiors, subordinates and colleagues. Factors affecting job design include: organizational factors,
environmental factors and behavioural factors. Two important goals to job design are to meet the
organizational requirements such as higher productivity, operational efficiency, quality of product/services
etc. and to satisfy the needs of individual employees like interests, challenges, achievement or
accomplishment etc. Finally the goal of the job design is to integrate the needs of the individuals with the
organizational requirements. There are three important approaches to job design viz 1) engineering
approach 2) human approach and 3) job characteristics approach.

36
Job Analysis is the process of determining, by observation and study and reporting pertinent information
relating to the nature of a specific job. It is the determination of the tasks which comprise the job and of
skills, knowledge, abilities and responsibilities required of the worker of a successful performance and
which differentiate one job from all others.

Job Design Job Analysis


It has an engineering approach which studies the Description of Work activties, like how is a task
work scientifically, and is based on scientific performed? Why is a task performed? When is a task
management principles. These principles seem to be performed?
quite rational and appealing as they point towards
increased organizational performance.
It has a human relations approach and recognizes Interface with other jobs and equipments
the need to design the jobs which are interesting and
rewarding.
It has a job characteristics approach which assumes Procedures used. Analysis of Behaviours required on
that employees will work hard when they are the job. Physical movements and demands required
rewarded for the work they do and when the work to perform the job.
gives them satisfaction. Motivation, satisfaction and
performance should be integrated in the job design.
Jobs with skill variety, task identity, task
significance, autonomy and feedback are called core
job dimensions.
The goal of job design is to integrate the needs of the List of Machine Tools, Equipment and Work Aids
individual with the organization requirements. used.
Unlike job analyses which aims at studying the
nature of the job etc.
Job Design has options like Job Rotation, Job Job Context. Physical working conditions. Whether
enlargement, Job bandwidth, Job enrichment. exposed to heat, dust, toxic substances. Indoor
Within Job Bandwidth there is a narrow job design versus outdoor environment Organisational context.
(multi layers, narrow authority and responsibility) Social context. Work schedule. Incentives (financial
and Broad job design (job satisfaction due to variety and non financial)
of task, empowerment, horizontal re-enforces and
high productivity).
Personnel Requirements: Specific skills, specific
education and training. Work experience. Physical
characteristics. Aptitude.

Q. 4. What are the modern sources and techniques of Recruitment?

Ans 4. The modern sources of Recruitment are:

1. Employee Referrals: Present employees are well aware of the qualifications, attitudes, experience
and emotions of their friends and relatives. They are also aware of the job requirements and
organizational culture of their company. As such they can make preliminary judgment regarding the
match between the job and their friends and relatives.

2. Campus Recruitment: These candidates are directly recruited by the Co; from their
college/educational institution. They are inexperienced as far as work experience is concerned.

3 Private Employment Agencies/Consultants: Public employment agencies or consultants like ABC


Consultants in India perform recruitment functions on behalf of a client company by charging fees. Line
managers are relieved from recruitment functions and can concentrate on operational activities.

37
4 Public Employment Exchanges: The Government set up Public Employment Exchanges in the
country to provide information about vacancies to the candidates and to help the organization in finding
out suitable candidates. As per the Employment Exchange act 1959, makes it obligatory for public sector
and private sector enterprises in India to fill certain types of vacancies through public employment
exchanges.

5. Professional Organizations: Professional organizations or associations maintain complete bio-data


of their members and provide the same to various organizations on requisition. They act as an exchange
between their members and recruiting firm.

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

7 Casual Applicants: Depending on the image of the organization its prompt response participation of
the organization in the local activities, level of unemployment, candidates apply casually for jobs through
mail or handover the application in the Personnel dept. This would be a suitable source for temporary
and lower level jobs.

8 Similar Organizations: Generally experienced candidates are available in organizations producing


similar products or are engaged in similar business. The Management can get potential candidates from
this source.

9. Trade Unions: Generally unemployed or underemployed persons or employees seeking change in


employment put a word to the trade union leaders with a view to getting suitable employment due to
latter rapport with the management.

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

11.Consult In: the busy and dynamic companies encourage the potential job seekers to approach them
personally and consult them regarding the jobs. The companies select the suitable candidates and advise
the company regarding the filling up of the positions. Head hunters are also called search consultants.

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

13.Mergers and Acquisitions: Business alliances like acquisitions, mergers and take over help in
getting human resources. In addition the companies do also alliances in sharing their human resource
on adhoc basis.

14.E_recruitment: The technological revolution in telecommunications helped the organizations to use


internet as a source of recruitment. Organizations advertise the job vacancies through the world wide
wed (www). The job seekers send their applications through e-mail using the internet.

15.Outsourcing: Some organizations recently started developing human resource pool by employing the
candidates for them. These organizations do not utilize the human resources; instead they supply HRs to
various companies based on their needs on temporary or ad-hoc basis.

38
Techniques of Recruitment:

Recruitment techniques are the means or media by which management contacts prospective employees or
provide necessary information or exchanges ideas in order to stimulate them to apply for jobs.
Management uses different types of techniques to stimulate internal and external candidates.

Techniques of Recruitment are divided into two viz Traditional and Modern:

Traditional Techniques Modern Techniques


Promotions Scouting
Transfers Salary & Perks
Advertising ESOP’s

Traditional Techniques of Recruitment:

1. Promotions: Most of the internal candidates would be stimulated to take up higher responsibilities and
express their willingness to be engaged in the higher level jobs if the management gives them the
assurance that they will be promoted to the next higher level.
2. Transfers: employees will be stimulated to work in the new sections or places if the management
wishes to transfer them to the places of their choice.
3. Advertising: Advertising is a widely accepted technique of recruitment, though it mostly provides one
way communication. It provides the candidates in different sources, the information about the job and
company and stimulates them to apply for jobs. It includes advertising through different media like
newspapers, magazines of all kind, television etc. The technique of advertising should aim at attracting
attention of the prospective candidates ii) creating and maintaining interest and stimulating action by
the candidates.

Management in order to achieve these objectives of advertising has to:


- Analyse job requirements
- Decide who does what
- Write the copy
- Design the advertisement
- Plan and select the media and
- Evaluate response.

Modern Techniques of Recruitment:


1. Scouting: Scouting means sending the representation of the organizations to various sources of
recruitment with a view to persuading or stimulating the candidates to apply for jobs. The
representatives provide information about the company and exchange information and ideas and
clarify the doubts of the candidates.
2. Salary and Perks: Companies stimulate the prospective candidates by offering higher level salary,
more perks, quick promotions etc.
3. ESOP’s: Companies recently started stimulating the employees by offering stock ownership to the
employees through their Employees Stock Ownership Programmes (ESOPs)

ESOP AT ALCATEL

Alcatel, the first every global stock option programme has received the highest percentage of subscriptions
from India. 84% of the Indian employees have taken up the offer. The stock option plan covered 50
countries and almost 60,000/- put of the total 1.2lakh employees participated in the plan. Alcatel offered
2.25 million shares and 9 million stock options under the programme. For each share subscribed, the
employee had the right of four stock options and they were allowed to invest upto one fourth of the gross
annual salary. ESOP stimulated may candidates to seek jobs in ALCATEL.

39
Q5. A situational combination of rewards and punishments can effectively motivate men, Is the
statement true or false. Explain.

And 5. This statement can be considered true as well as false depending on the situation and also the
leadership style that the Co., adopts to get the job done from its employees in the most fruitful way. In
some cases this situation will work and in some cases it may not. Hence as a general statement it cannot
be wholly considered true or wholly considered false. Every human being needs to be motivated to work in
a desired way and give a desired output. Motivation is derived from the word Motive. Motive is an inner
state that energizes, activates or moves and directs or channels behaviour towards goals”.

Motivation represents an unsatisfied need which creates a state of tension or disequilibrium causing the
individual to move in a goal directed pattern towards restoring a state of equilibrium by satisfying the
need. It is a degree of readiness of an organization to pursue some designated goal and implies the
determination of the nature and locus of the forces, including the degree of readiness.

The Basic Process of Motivation = Needs------------------ÆDrives----------------------Æ Goals/Incentives


(Deficiency) Deficiency with Direction Reduction of drives
& fulfils deficiencies.

To understand the relationship of rewards and punishments tactic used to motivate men one must
understand the Objective of motivation. It is a bare fact that most of us use only a small portion of our
mental and physical abilities. To exploit the unused potential in people they are to be motivated. Such
exploitation leads to greater efficiency, higher production and better standards of living of the people. To
achieve this un tapped potential one must either use the rewards or punishment way to achieve the
desired goals.

Types of motivation: There are two ways by which people can be motivated. One is a positive approach or
pull mechanism which can be considered as a reward approach and the second is a negative approach or
push mechanism which can be considered as punishment tactic.

Positive Motivation (Reward): People are said to be motivated positively when they are shown a reward
and the way to achieve it. Such a reward way may be financial or non-financial. Monetary motivation may
include different incentives, wage plans, productive bonus schemes etc. Non-monetary motivation may
include praise for work, participation in management, social recognition etc. Monetary incentives provide
the worker a better standard of life while non-monetary incentives satisfy the ego of a man. Positive
motivation seeks to create an optimistic atmosphere in the enterprise. Human beings also have an
inherent desire to prosper, and be financially strong. To achieve this psychological need an employee
would work hard to achieve desired goals and in such a case the Reward mechanism will work to motivate
him and prove an efficient worker.

Negative Motivation (Punishment): By installing fear in the minds of people, one can get the desired
work done. In this method of motivation, fear of consequences of doing something or not doing something
keeps the worker in the desired direction. This method has got several limitations. Fear creates
frustration, a hostile state of mind and an unfavorable attitude towards the job which hinders efficiency
and productivity. So the use of it should be kept minimum. It may work in a small organization but it is a
very risky strategy to adopt in a unionized firm.

In short a combination of rewards and punishment is not the only way to effectively motivate an employee.
An employee responds very well only if rewards are seen. He may be demotivated when punishment is
used. It he is fearless, and a trouble maker and have a backing by the union he may not fear any
punishment. He may influence the others who are afraid of the punishment not to perform. In such a
situational there will be difference of opinion, industrial dispute, and unrest at the work place. In such a
situation meeting deadline and goals of the Co., will go in the background.

40
Q.6. 360 degrees Performance Appraisal mostly can do away with biased approach while assessing
an employee. Do you agree with the above statement. Give your views.

Ands 6. Yes, it is true that 360 degrees of Performance Appraisal can do away with biased approach while
assessing an employee. The appraiser may be any person who has thorough knowledge about the job
content, contents to be appraised, standards of contents and who observes the employee while performing
a job. The appraiser should be capable of determining what is more important and what is relatively less
important. He should prepare reports and make judgements without bias. Typical appraisers are
supervisors, peers, subordinates, employees themselves, user of service and customers. Performance
appraisal by all these parties is called 360 degree performance appraisal. Pond’s, General Electric,
Hindustan Lever Limited. Grasim, Colgate – Palmolive, Hewett Packard, practice 360 degree performance
appraisal. Appraisal is an appraisal which is an appraisal which is an unbiased way of appraisal and is
conducted.

Examples of Performance Appraisal


Xerox Provide a core set of metrics for use across the organization.
Toyota Focus performance reviews on goals rather than number to ensure
employee alignment.
Federal Express Daily Performance Measurement Reporting.
Fed Ex Design a Balanced Scorecard performance measurement system.
Here the performance appraisal is not just done across the table. In this technique the employee is
observed while performing a job. A report is done by the appraiser based on what he has observed. These
are facts that cannot be disputed by either the appraiser or employee. This kind of appraisal is more
performance and result based. There is no room for manipulation of performance on paper by the
appraiser. Hence the appraiser cannot be biased or favour the employee he wishes too. Secondly it involves
the opinion of other too, like peers, other employees, the employee himself etc. It is not the report of just
one person who could be biased otherwise.

The whole process of a 360 degree appraisal is discussed as under:

Supervisors: Supervisors include superiors of the employee, other superiors having knowledge about the
work of the employee and department head or manager. General practice is that immediate superior
appraises the performance which in turn is reviewed by the departmental head/manager.

Peers: Peer appraisal may be reliable if the work group is stable over a reasonably long period of time and
performs tasks that require interaction. However, little research has been conducted to determine how
peers establish standards for evaluating others or the overall effect of peer appraisal on the group’s
attitude.

Subordinates: The concept of having superiors rated by subordinates is being used in most organizations
today, especially in developed countries. Such a novel method can be useful in other organizational
settings too provided the relationships between superiors and subordinates are cordial.

Self Appraisal: If individuals understand the objectives they are expected to achieve and the standards by
which they are to be evaluated, they are to a great extend in the best position to appraise their own
performance. Also since employee’s development means self development, employees who appraise their
own performance may become highly motivated. Thermax, escorts, Wipro etc implement self appraisal.

Users of Services/Customers: Employee performance in service organizations relating to behaviours,


promptness, speed in doing the job and accuracy can be better judged by the customer or users of
services. For eg. Teacher’s performance is better judged by students and performance of a doctor is judged
by patients.

Consultants: Sometimes consultants may be engaged for appraisal when employees or employers do not
trust supervisor appraisal and the management does not trust self appraisal, peer appraisal or
subordinate appraisal. In this situation, consultants are trained and they observe the employee at work for
a sufficiently long time for the purpose of appraisal.

41
Q7. For internal mobility Management Development Programme is a must. Comment.

Ans 7. Management development is a systematic process of growth and development by which the
managers develop their abilities to manage. So it is the result of not only participation in formal courses of
instruction but also of actual job experience. It is concerned with improving the performance of the
manager by giving them opportunities for growth and development, which in turn depends on organization
structure of the company. The role of the company in management development is to establish the
programme and develop opportunities for its present and potential managers.

Management development concept works on a technique that help develop the Manager and hence helps
in internal mobility. It makes a manager helps a manager to think differently and take wise decisions. The
Management Development Programme is designed with a view to achieving specific objectives which are
very essential for internal mobility in an organization. The need can be defined as under:

1. It overhauls the management machinery.


2. It improves the performance of the manager.
3. It gives the specialists an overall view of the functions of an organization and equips them to co-
ordinate each others efforts effectively.
4. It increases the morale of the members of the management group.
5. It increases versatility of the management group.
6. It keeps the executives abreast with the changes and developments in their respective fields.
7. It creates the management succession which can take over in case of contingencies.
8. It improves the thought process and analytical ability.
9. It broadens the outlook of the executives regarding his role position and responsibilities.
10. It helps to understand the conceptual issues relating to economic, social and technical rears.
11. it helps understand the problems of human relations and improve human relation skills and
12. It stimulates creative thinking.

The need for Management Development for internal mobility arises due to the following reasons:

1. Techno managers like basic chemical engineers, mechanical engineers, information/systems


engineers need to be developed in the arrears of managerial skills, knowledge and abilities.
2. Professionalisation of management at all levels particularly in service organizations need the
development of managerial skills and knowledge particularly at lower and middle levels.
3. The need for management development arises due to providing technical skills and conceptual
skills to non technical managers and managerial skills and conceptual skills to technical
managers.
4. The emergence of new concepts in management like Total Quality Management (TQM), Enterprise
Resource Planning, Business Process Re-engineering, Empowerment etc. necessitates the
management to offer developmental programmes.
5. Entry of multinational and transnational corporations brought new trends and strategies for the
domestic companies also. These factors necessitated the domestic companies to undertake
developmental programmes.

There are mainly two types of methods by which managers can acquire the knowledge, skills and attitudes
and make themselves competent managers. One is through formal training and the other is through on job
experiences. This is very essential because a manager will learn the processes that take place for different
jobs. He may specialize in one subject but to have an idea of how things are in another area of specialization
is the intention of MDP.

42
Some of the Job techniques that facilitate internal mobility are:

The important on the job techniques are coaching, job rotation, under study and multiple management.

Technique Suitability
Job Rotation This is particularly useful in development of diversified skills and to give
executives a broader outlook, which are very important to the upper
management levels.
Understudy An understudy is normally chosen with forethought of making available to the
organization a subordinate who is equal to his superior in the event of
retirement, illness or death of the superior. The subordinate will be able to
take over his position and manage as effectively as his boss could.
Multiple Management This technique is mainly useful in bringing the managers out of their narrow
shells and helps them gain a broader outlook and knowledge in different
functional areas.
Case Study In the development of executive and analytical and decision making skills,
this technique is used.
Incident Method The technique improves one’s intellectual ability, practical judgment and
social awareness.
Role Playing Role playing helps executives in understanding people better by giving them
vicarious experiences.
In Basket Situational judgment and social sensitivity are the two important qualities
that can be developed with the help of this method.
Business Games This technique is used in order to develop organizational ability, quickness of
thinking and leadership.
Sensitivity Training This helps one know more about himself and the impact of his behaviour on
others, which are important to manage people better.
Simulation Problem solving through decision-making can be developed quite well with the
help of simulation.
Managerial Grid To develop leadership qualities in executives over a long period of time.
Conferences The most difficult thing for any one is to change his own attitude. This
technique develops the ability of the executives to modify their attitudes,
when needed in the interest of the organization.
Lectures This is the best technique to give more knowledge in a short period of time to
a large number of participants.

With the above, it is very clear that Management Development Programme is just inevitable and has to be
conducted to facilitate internal mobility.

Q.8. Write short notes on any three of the following.


a) Probationary period b) Sons of soil theory in recruitment
c) Appraisal by Peers d) Career Development e) Maslows theory of needs

a) Probationary Period: Probation period is a time when an employee is employed in the


organization with the intention of becoming permanent but subject to his performance during
the probation period. During this period he is not entitled to the benefits that a permanent
employee enjoys. The probation period is a period where the employee and employee get a
chance to review the suitability to the organization. The period is usually 6 months to 1 year.
During this period the employee’s performance is reviewed and his superior updates him if he is
not in line with the company’s expectation. If he needs to improve in any area than he is
informed to do so before the probationary period is over. This would thus help him in getting a
permanent placement in the organization. Every permanent employee is a liability to the
organization. There are many facilities, statutory dues etc., that the Co., needs to comply
towards a permanent employee. So every employer prefers to review an employee during the
probation period before he brings him on permanent roll. If the performance of the employee is
not satisfactory the employer may not employ him in his organization. In case of a permanent

43
employee it is not easy for the employer to throw him out of the Co., if he is not satisfied with
his performance.

b) Sons of the soil theory in Recruitment: The sons of the soil theory basically mean the locals
should be given a chance to work for a Co; that is set up in their area of residence or the state
that they belong too. The Co’s today are going to remote places for cheaper land and setting up
their businesses in remote arrears. In such cases the locals seek for employment. The
advantage is that cheap labour is available to the Co., compared to getting its own people and
paying them higher salaries and giving them additional facilities to work at a place away from
their regular set-up (residence). However in son of the soil there is a great disadvantage. The
locals may not be as educated and skillful as the job requirement. In such case the Co., may
not get the desired output even if they give them training etc. But in certain places it is not easy
to set up a Co., without the local support and hence the Co., is forced to cater to the sons of the
soil theory in recruitment.

c) Appraisal by Peers: It is performance appraisal used in a 360 degree performance appraisal.


The appraisal is done by the Peer group of the employee to be appraised. Peer appraisal may be
reliable if the work group is stable over a reasonably long period of time and performs tasks
that require interaction. However, little research has been conducted to determine how peers
establish standards for evaluating others or the overall effect of peer appraisal on the group’s
attitude.

d) Career Development: Career development is those personal improvements one undertakes to


achieve a personal career plan. Career development has four steps. They are 1. Needs-defining
the present system 2. Vision-determining new directions and possibilities 3. Action plan-
deciding on practical first steps and results – maintaining the change.
Needs: This step involves in the conducting of needs assessment as a training programme.
Vision: The needs of the career system must be linked with the interventions. An ideal
development system known as the vision links the needs with the interventions.
Action Plan: An action plan should be formulated in order to achieve the vision. The support of
the top management should be obtained in this process.
Results: Career development programme should be integrated with the organization’s on-going
employee training and management development programmes. The programme should be
evaluated from time to time in order to revise the programme.

e) Maslows Theory of Needs. According to Maslow, human needs form a hierarchy, staring at the
bottom with the physiological needs and ascending to the highest need of self actualization. He
says when one set of needs is satisfied; they no longer work as motivators as a man seeks to
satisfy the next higher level of needs.

__________________________________________________
Need for Self-Actualization
__________________________________________________
Physiological Needs
__________________________________________________
Esteem Needs
__________________________________________________
Social Needs -Affiliation or
Acceptance Needs
__________________________________________________
Security of Safety Needs
__________________________________________________
Physiological Needs
__________________________________________________
MASLOW”S HIERACHY OF NEEDS
==========================================
44
The Need Hierarchy:

Physiological Needs: These are the basic necessities of human life, food, water, warmth, shelter, sleep
and sexual satisfaction. Maslow says that until these needs are satisfied to the required level, man
does not aim for the satisfaction of next level of needs. As far as work environment is concerned, these
needs include basic needs like pay, allowance, incentives and benefits.

Security/Safety Needs: These refer to the need to be free of physical danger or the feeling of loss of
food, job or shelter. When the physiological needs are satisfied, man starts thinking of the way by
which he can satisfy his safety needs. Security needs spring up the moment he makes an effort in the
direction of providing himself the source of continuity of physiological needs. In a work environment
these needs include conformity, security plans, membership in unions, severance pay etc.

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

Esteem Needs: These needs are power, status and self confidence. Every man has a feeling of
importance and he wants others to regard him highly. These needs makes people aim high and make
them achieve something great. These needs for employees include status symbols, awards, promotions,
titles etc.

Self Actualization Needs: This is the highest need in the hierarchy. This refers to the desire to become
what one is capable of becoming. Man tries to maximize his potential and accomplish something, when
this need is activated in him.

**************ALL THE BEST******************

45
HUMAN RESOURCE MANAGEMENT-2005

Attempt any five questions Total 100 marks


All questions carry equal marks
Answers should be in sufficient detail with Practical examples and illustrations.
__________________________________________________________________________________________________________
Q1. Discuss the functions of Human Resource Management in an organization. Enumerate the
challenges of HRM in the present organizational context.

Ans 1. The functions of HRM can be broadly classified into two categories viz 1) Managerial Functions 2)
Operative Functions :

FUNCTIONS OF HRM
Managerial Functions Operative Functions
Planning Employment
Organising Human Resources Development
Directing Compensation
Controlling Human Relations
Industrial Relations
Recent Trends in HRM

1. Managerial Functions: Managerial functions of personnel management involve planning, organizing,


directing and controlling.

Planning: It is pre-determined course of action. Planning pertains to formulating strategies of personnel


programmes and changes in advance that will contribute to the organizational goals. It involves planning of
human resources, requirements, recruitment, selection, training etc. It also involves forecasting of personnel
needs, changing values, attitudes and behaviour of employees and their impact on the organization.

Organising : An organization is a means to an end. It is essential to carry out the determined course of
action. An organization is a structure and a process by which a co-operative group of human beings
allocates its task among its members, identifies relationships and integrates its activities towards a common
objective. Complex relationships exist between the specialized departments and the general departments as
many top managers are seeking the advice of the personnel manager. Thus an organization establishes
relationships among the employees so that they can collectively contribute to the attainment of company
goals.

Directing : The next logical function after completing planning and organizing is the execution of the plan.
The basic function of personnel management at any level is motivating, commanding, leading and activating
people. The willing and effective co-operation of employees for the attainment of organizational goals is
possible through proper direction. Tapping the maximum potentialities of the people is possible through
motivation and command. Co-ordination deals with the task of blending efforts in order to ensure successful
attainment of an objective.

Controlling: After planning, organizing and directing various activities of personnel management, the
performance is to be verified in order to know that the personnel functions are performed in conformity with
the plans and directions of an organization. Controlling also involves checking, verifying and comparing of
the actuals with the plans, identification of deviations if any and standards through controls. Auditing
training programmes, analyzing labour turnover records, directing morale surveys, conducting separate
interviews are some of the means of controlling the personnel management function and making it effective.

2. Operative Functions: The operative functions of human resources management are related to specific
activities of personnel management viz, employment, development, compensation and relations. All these
functions are interacted with managerial functions.

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Employment: It is the first operative function of Human Resource Management. Employment is concerned
with securing and employing the people possessing the required kind and level of human resources
necessary to achieve the organizational objectives. It covers functions such as job analysis, human resource
planning, recruitment, selection, placement, induction and internal mobility.

Human Resource Development: It is a process of improving, molding and changing the skills, knowledge,
creative ability, aptitude, values, commitment etc., based on present and future job and organizational
requirements. It includes Performance Appraisal, Training, Management Development, Career Planning and
Development, Internal Mobility, Transfer, Promotion, Demotion, Change and Organisational Development.

Compensation: It is a process of providing adequate, equitable and fair remuneration to the employees. It
includes job evaluation, wage administration and salary administration, incentives, bonus, fringe benefits,
social security measures etc.

Human Relations: Practicing various human resources policies and programmes like employment,
development and compensation and interaction among employees create a sense of relationship between the
individual worker and management, among workers and trade unions and the management. It is a process
of interaction among human beings. Human relations is an rear of management in integrating people into
work situations in a away that motivates them to work together productively co-operatively and with
economic, psychological and social satisfaction. It includes:

- Understanding and applying the models of perception, personality, learning, intra and inter
personnel relations, intra and inter group relations.
- Motivating the employees
- Boosting employee morale
- Developing the communication skills
- Developing the communications skills
- Redressing employee grievances properly and in time by means of a well-formulated grievance
procedure.
- Handling disciplinary cases by means of an established disciplinary procedure.
- Counseling the employees in solving their personal, family and work problems and releasing their
stress. Strain and tensions.
- Improving quality of work life of employees through participation and other means.

Industrial Relations: Industrial relations refer to the study of relations among employees, employer,
government and trade unions. Industrial relations include:
- Indian labour market
- Trade unionism
- Collective bargaining
- Industrial conflicts
- Worker’s participation in management and
- Quality circles

Recent Trends in HRM : Human Resources Management has been advancing at a fast rate. The recent
trends in HRM include:
- Quality of work life
- Total quality in human resources
- HR accounting, audit and research and
- Recent techniques of HRM

The challenges of HRM in the present organizational context.

A goal seeking organizations especially one that seeks improvement over the current situation is a challenge,
taking organization. When many such goals are pursued tremendous internal pressures some of them
conflicting, tend to be generated. Unless the organization develops mechanisms for coping with these self-
generated pressures, it may face major failure and suffer disastrous retreats from its goal.

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

1. Technological factors: Just as necessity is the mother of invention competition and a host of other
reasons are responsible for the rapid technological changes and innovations. As a consequence of
these changes, technical personnel, skilled workers, computer operators and machine operators are
increasingly required while the demand for other categories of employers has declined. Hence
procurement of skilled employees and their increase in numbers to match the changing job
requirements has become a complicated task.

2. Human Resource in the Country: The structure, values and the level of education of human
resource in a country influence much of the Human Resource function. The influence of manpower
in the country can be studies through the changes in structure of employment.
a. Change in the Structure of Employment: The structure of employment in an organization changes
with the entrance of workforce with different backgrounds (Social economic, region, community, sex,
religion, traditions culture etc). There has been a significant change in the structure of employment
with the entry of 1) candidates belonging to the schedule castes, schedules tribes and backward
communities. 2) More female employees, due to increased career orientation among women to the
suitability of women for certain jobs and to women becoming more acclimatized to the working
climate and higher level of commitment. 3) The workforce consists of different regions but due to
increased transportation facilities and mobile character of people. These changes in workforce are a
challenge and a complicated task of HR function. It has to deal with employees with different
backgrounds.

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

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

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

6. Customers: Organizations produce products or render services for the ultimate consumption use by
the customer. In other words organizations depend upon customers for their survival and growth.
Customers revolt against employees, if the services rendered are less qualitative. The banks face
such type of challenges. Customers may develop a negative attitude towards the organization, if it
does not follow the social policies of the country. Hence the customers pose a challenge special ally
in service industry.

7. Social factors: Social environment consists of class structure, mobility social roles social values
nature and development of social institutions caste structure and occupational structure, traditions,

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religion culture etc. To cater to everyone’s requirement and keep them happy is a big challenge faced
by HR today.

Q2. What is Manpower Planning? Discuss the process and importance of Man Power Planning in an
organization .

Ans2. Ans 2. Manpower planning means planning means deciding the number and type of the human
resources required for each job, unit and the total company for a particular future date in order to carry out
organizational activities. Manpower planning may be viewed as foreseeing the human resources requirement
of an organization and the future supply of human resources and (i) making necessary adjustments between
these two and organizational plans and (ii) foreseeing the possibility of developing the supply of manpower
resources in order to match it with the requirements by introducing necessary changes in the functions of
human resources management.

The process of manpower planning in an organization.

- Analysing the corporate and unit level strategies.


- Demand Forecasting: Forecasting the overall human resources requirements in accordance
with the organisational plans.
- Supply Forecasting: Obtaining the data and information about the present inventory of
manpower and forecast the future changes in the human resources inventory.
- Estimating the net manpower requirement.
- In case of future surplus than plan for redeployment.
- In case of future deficit, forecast the future supply of manpower from all sources with
reference to plans of other companies.
- Plan for recruitment, development and internal mobility if future supply is more than or equal
to net manpower requirements.
- Plan to modify and adjust the organizational plan if future supply will be inadequate with
reference to future net requirements.
- Degree of uncertainty and length of planning period.

The above points are discussed in details:

Demand Forecasting: The existing job design and analysis may thoroughly be reviewed keeping in view the
future capabilities, knowledge and skills of present employees. Further the jobs should be redesigned and
reanalyzed keeping in view the organizational and unit wise plans and programmes, future work quantum,
future activity or task analysis, future skills, values, knowledge and capabilities of present employees and
prospective employees. The jobs generally should be designed and analysed reflecting the future human
resources and based on future organizational plans. Job analysis and forecast about the future components
of human resources facilitate demand forecasting. One of the important aspects of demand forecasting of the
quantity of human resources (skill, knowledge values, capabilities etc) in addition to quantity of human
resources. Important forecasting methods are:
1. Managerial Judgment: Under this method, managers decide the number of employees required
for future operations based on their past experience.

2. Statistical Techniques Include: ratio trend analysis and econometric models. Under ratio trend
analysis, ratios are calculated for the past data and these ratios are used for the estimation of
the future manpower requirements For eg.
- Present level of production (1-1-2005) 2000 units
- Present number of foremen (1-1-2005) 5
- Ratio is 2000/4 500
- Estimated production as on (1-1-2005) 5000 units
- Foreman required as on (1-1-2005) 5000/500 = 10

Econometric models for manpower planning are built up by analyzing the past statistical data
and by bringing the relationship among variables.

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Work Study Techniques: Under this method, total production and activities in terms of clear
units are estimated in a year. Then man-hours required to produce each unit is calculated, Later
the required number of employees is calculated. For eg.

- Planned operations during 2005 = 1,60,000 units


- Standard man-hours needed to perform each unit in 2005 = 0.25
- Planned man-hours needed per year in 2005 = 40,000
- Work ability per employee in man-hours in 2005 = 2,000
- Number of employees required in 2005 = 40000/20000=20

Supply Forecasting
The first step of forecasting the future supply of human resources is to obtain the data and information
about the present human resources inventory.

Existing Inventory: The data relating to present human resources inventory in terms of humans
components, number, designation-wise and department wise would be obtained. Principal dimensions of
manpower planning are:
4. Head counts regarding total, department wise, sex-wise, designation-wise, skill-wise, pay roll wise
etc.
5. Job Family Inventory: It includes number and category of employees of each job family i.e. all jobs
related to the same category like clerks, cashiers, sub job family i.e. all jobs having common job
characteristics (skill, qualification, similar operations) like production engineer (mechanical) and
maintenance engineer (mechanical) and broad families like general administration, production etc.
6. Age Inventory: It includes age-wise number and category of employees. It indicates age wise
imbalances in present inventory, which can be correlated in future selections and promotions.
Existing inventory at a future date is calculated as follows:

Existing inventory at = Present Inventory + Potential additions - Potential Losses


A future date as on today

Estimating the Net Man Power Requirements: Net manpower requirements in terns of number and
components are to be determined in relation to the overall manpower requirements for a future date and
supply forecast for that date. The difference between overall manpower and future supply of manpower is
to be found out. The difference is the net manpower requirement.

Action Plan for Redeployment, Redundancy/Retrenchment: If future surplus is estimated, the


organization has to plan for redeployment, redundancy etc. If surplus is estimated in some
jobs/departments, employees can be redeployed in other jobs/departments where the deficit of employees
is estimated. The organization should also plan for training or re-orientation before redeployment of
employees. Redeployment takes place in the form of transfers. If the deficit is not estimated in any
job/department and surplus is estimated for the entire organization, the organization, in consultation with
the trade unions has to plan for redundancy or retrenchment.

Recruitment and Selection Plan: Recruitment and selection plan covers the number and type of
employees required, when they are required for the job, time necessary for recruitment and selection
process, recruitment sources, recruitment techniques to be used, selection procedure to be adopted and
selection techniques to be used to subsequently recruiting the required candidates. It also covers the time
factor for induction, preliminary training and placement.

The importance of manpower planning in an organization is :

1. to recruit and retain the manpower of required quality and quantity.


2. to foresee the employee turnover and make the arrangements for minimizing turnover and filling
up of consequent vacancies.
3. to meet the needs of the programmes of expansion, diversification etc.
4. to foresee the impact of technology on work, existing employees and future human resource
requirements.
5. to improve the standards, skill, knowledge, ability, discipline etc.
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6. to assess the surplus or shortage of manpower and take measures accordingly.
7. to maintain congenial industrial relations by maintaining optimum level and structure of human
resources.
8. to minimize the imbalances caused sue to non-availability of human resources of the right kind,
right number in right time and right place.
9. to make the best use of its human resources and
10. to estimate the cost of human resources.

Q3. Discuss the sources of recruitment for an organization. Describe the steps in the selection
procedure in an organization.

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

Internal sources of Recruitment:

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

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

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

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

5. Employee Referrals: Present employees are well aware of the qualifications, attitudes, experience and
emotions of their friends and relatives. They are also aware of the job requirements and organizational
culture of their company. As such they can make preliminary judgment regarding the match between the
job and their friends and relatives.

External Sources of Recruitment

15. Campus Recruitment: These candidates are directly recruited by the Co; from their
college/educational institution. They are inexperienced as far as work experience is concerned.

16. Private Employment Agencies/Consultants: Public employment agencies or consultants like ABC
Consultants in India perform recruitment functions on behalf of a client company by charging fees.
Line managers are relieved from recruitment functions and can concentrate on operational activities.

17. Public Employment Exchanges: The Government set up Public Employment Exchanges in the
country to provide information about vacancies to the candidates and to help the organization in
finding out suitable candidates. As per the Employment Exchange act 1959, makes it obligatory for
public sector and private sector enterprises in India to fill certain types of vacancies through public
employment exchanges.

18. Professional Organizations: Professional organizations or associations maintain complete bio-data


of their members and provide the same to various organizations on requisition. They act as an
exchange between their members and recruiting firm.
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19. Data Banks: The management can collect the bio-data of the candidates from different sources like
Employment Exchange, Educational Training Institutes, candidates etc and feed them in the
computer. It will become another source and the co can get the particulars as and when required.

20. Casual Applicants: Depending on the image of the organization its prompt response participation of
the organization in the local activities, level of unemployment, candidates apply casually for jobs
through mail or handover the application in the Personnel dept. This would be a suitable source for
temporary and lower level jobs.

21. Similar Organizations: Generally experienced candidates are available in organizations producing
similar products or are engaged in similar business. The Management can get potential candidates
from this source.

22. Trade Unions: Generally unemployed or underemployed persons or employees seeking change in
employment put a word to the trade union leaders with a view to getting suitable employment due to
latter rapport with the management.

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

24. Consult In: the busy and dynamic companies encourage the potential job seekers to approach them
personally and consult them regarding the jobs. The companies select the suitable candidates and
advise the company regarding the filling up of the positions. Headhunters are also called search
consultants.

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

26. Mergers and Acquisitions: Business alliances like acquisitions, mergers and take over help in
getting human resources. In addition the companies do also alliances in sharing their human
resource on adhoc basis.

27. E_recruitment: The technological revolution in telecommunications helped the organizations to use
internet as a source of recruitment. Organizations advertise the job vacancies through the worldwide
wed (www). The job seekers send their applications through e-mail using the Internet.

28. Outsourcing: Some organizations recently started developing human resource pool by employing the
candidates for them. These organizations do not utilize the human resources; instead they supply
HRs to various companies based on their needs on temporary or ad-hoc basis.

Steps in the selection procedure in an organization.

Selection is a process of selecting the right candidate for the right job. It is about collecting information
about the candidate’s qualifications, experience, physical and mental ability, nature and behaviour,
knowledge, aptitude etc for judging whether a given applicant is suitable or not for the job. The selection
process is discussed below:

1. Job Analysis: Job analysis is the basis for selecting the right candidate. Every organisation should
finalise the job analysis. Job description, job specification and employee specifications before
proceeding to the next step of selection.

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2. Human Resource Plan: Every company plans for the required number of and kind of employees for
a future date. This is the basis for recruitment function.

3. Recruitment: Recruitment refers to the process of searching for prospective employees and
stimulating them to apply for jobs in an organisation. It is the basis for the remaining techniques of
the selection and the latter varies depending upon the former. It develops the applicants’ pool.

4. Application Form: Application form is also known as application blank. The technique of
application blank is traditional and widely accepted for securing information from the prospective
candidates. It can also be used as a device to screen the candidates at the preliminary level. Many
companies formulate their own style of application forms depending upon the requirements of
information based on the size of the company, nature of business activities, type and level of the job
etc. Information is generally required on the following items in the application forms : (i) Personal
background information, (ii) Educational attainments, (iii) Work experiences, (iv) Salary, (v) Personal
details and (vi) References.

5. Written Examination: The organization have to conduct written examination for the qualified
candidates after they are screened on the basis of the application blanks so as to measure the
candidate’s ability in arithmetical calculations, to know the candidates attitude towards the job, to
measure the candidates aptitude, reasoning, knowledge in various disciplines, general knowledge
and English language.

6. Preliminary Interview: The preliminary interview is to solicit necessary information from the
prospective applicants and to assess the applicant’s suitability to the job. The information provided
by the candidate may be related to the job or personal specifications regarding education, experience,
salary expected aptitude towards the job, age physical appearance and other physical requirements
etc. Thus preliminary interview is useful as a process of eliminating the undesirable candidates. If a
candidate satisfies the job requirement regarding most of the arrears he may be selected for further
process. Preliminary interviews are short and known as stand-up interviews or sizing up of the
applicants or screening interview. This interview is also useful to provide the basis information about
the company to the candidate.

7. Business Games: Business games are widely used as a selection technique for selecting
management trainees, executive trainees and managerial personnel at junior, middle and top
management positions. Business games help to evaluate the applicants in the areas of decision
making, identifying the potentialities, handling the situations, problem-solving skills, human
relations skills etc. Participants are placed in a hypothetical work situation and are required to play
the role situations in the game.

8. Group Discussions: The technique of group discussion is used in order to secure further
information regarding the suitability of the candidate for the job. Group discussion is a method
where groups of the successful applicants are brought around a conference table and are asked to
discuss either a case study or a subject matter. The candidates in the group are required to analyze,
discuss, find alternative solutions and select the sound solution. A selection panel then observes the
candidates in the areas of initiating the discussion, explaining the problem, soliciting unrevealing
information based on the given information and using common sense, keenly observing the
discussion of others, clarifying controversial issues, influencing others, speaking effectively,
concealing and mediating arguments among the participants and summarizing or concluding aptly.
The selection panel, based on its observations, judges the candidate’s skills and ability and ranks
them according to their merit.

BUSINESS GAMES AND THEIR UTILITY IN THE SELECTION PROCESS


Business Games Utility
(1) Case Study Analytical, judgmental and decision-making skills
(2) Role Play Human relations skills.
(3) In-basket method Situational judgment, social relations, decision-making skills,
problem-solving skills.
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(4) Sensitivity Degree of openness, concern for others, tolerance for individual
differences.
(5) Simulations Encountering skills.
5. Test: Psychological tests play a vital role in employee selection. A psychological test is essentially
an objective and standardized measure of sample of behaviour from which inferences about future
behaviour and performance of the candidate can be drawn.
Types of Test
1. Aptitude Tests:
(a) Intelligence Test (IQ)
(b) Emotional Quotient
(c) Skill Tests
(d) Mechanical Aptitude
(e) Psychomotor Tests
(f) Clerical Aptitude Tests
2. Achievement Tests:
(a) Job Knowledge Test
(b) Work Sample Test
3. Situational Tests:
(a) Group Discussion
(b) In Basket
4. Interest Test
5. Personality Tests:
(a) Objective Tests
(b) Projective Tests
6. Multi-Dimensional Testing

Eg.: Multi-Skilling: Multi-Dimensional Testing: L&G has realised that most of the company operations
whether they are production or marketing or finance or human resources can be done by almost all the
employees. Experts are needed only in rare cases. Infact, services of the experts can be outsourced. As
such, L&G started selecting the candidates with multi-skills and who can perform a variety of functions.
L&G developed multi-dimensional testing.

Types of Interview: The types of Employment interviews are:


1. Preliminary Interview

(a) Informal Interview


This is the interview, which can be conducted at any place by any person to secure the basic and non-
job related information. It is the interaction between the candidate and the personal manager when the
former meets the latter to enquire about the vacancies or additional particulars in connection with the
employment advertisement etc.

(b) Unstructured Interview


In this interview the candidate is given freedom to tell all about himself by revealing his knowledge on
various items/arrears, his background, expectations, interest etc. The interviewer also may answer
some information required by the candidate.
2. Core Interview: It is normally the interaction between the candidate and the line executive or experts
on various areas of job knowledge, skill, talent etc.

(a) Background information interview


This interview is intended to collect the information which is not available in the application blank and
to check that information provided in the application blank regarding education, place of domicile,
family, health, likes, dislikes and extra curricular activities of the applicant.

(b) Job and probing interview


This interview aims at testing the candidate’s job knowledge about duties, activities, methods of doing
the job, critical/problematic areas, and methods of handling those areas.

(c) Stress interview


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This interview aims at testing the candidate’s job behaviour and level of withstanding during the period
of stress and strain. The interviewer tests the candidate by putting him under stress and strain by
interrupting the applicant from answering, criticizing his opinions, asking questions pertaining to
unrelated areas etc. Stress during the middle portion of the interview gives effective results.

(d) Group discussion interview


There are two methods of conducting group discussion interviews viz group interview method and
discussion method. This type of interview helps the interviewer in appraising certain skills of the
candidates like initiative; inter personal skills, dynamism, presentation, leading, comprehension,
collaboration etc.

(e) Formal and structured interview


In this type of interview, all the formalities, procedures like fixing the value, time, panel of interviewers,
opening and closing, intimating the candidates officially etc. are strictly followed in arranging and
conducting the interview. The course of the interview is pre-planned and structured, in advance
depending on job requirements. The questions for discussion are structured and experts are allotted
different areas and questions to be asked.

(f) Panel interview


A panel of experts interviews each candidate, judges his performance individually and prepares
consolidated judgement. This type of interview is known as panel interview.

(g) Depth interview


The candidate is examined extensively in core areas of job skills and knowledge. Experts test the
candidate’s knowledge in depth. Depth interviews are conducted for specialized jobs.

(h) On Line Interview: Information technology brought significant developments in the selection
process of employees. The vital development is on-line interview where the interview is conducted
online. These techniques include, on-line submission, internet based recruiting, outsourcing
employment function, sophisticated scanning and searching.
3. Decision-Making Interview
After the candidates are examined by the experts including the line managers of the organization in the
core areas of the job, the head of the department/section concerned interviews the candidate once
again, mostly through informal discussion. The interviewer examines the interest of the candidate in
the job, organization, reaction/adaptability to the working conditions, career planning, promotional
opportunities, work adjustment and allotment etc. The Personnel Manager also interviews the
candidates with a view to find out his reaction/acceptance regarding salary, allowances, benefits,
promotions, opportunities etc.

During various types of interviews depending on the job requirement the interviewer can see and analyse the
strengths, weaknesses and potentials of the candidate. Whether he is suitable for the job, whether he is the
right candidate. Various types of interviews help the interviewer to arrive at different conclusion. Eg. A
Stress Interview helps to analyse whether a candidate can perform under stress and pressure and whether
he can take a right decision at such times. Most of the organizations have realized recently that the
employees’ positive attitude contribute much rather than employees skills and knowledge. Employees with
positive attribute contribute much to the organization. Hence the interviewers look for the candidates with
the right attitude while making final decisions.

Attitude Counts Much, but not the Skill

InfoTech Limited discovered that the employees with right attitude take up the activities willingly on their
own. They acquire the necessary skills, if they do not possess them. They never say ‘no’ to other employees,
superiors and customers. Hence the interviewers with right and or positive attitude, irrespective of their
technical al skills and knowledge.

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Medical Examination : Certain jobs require certain physical qualities like clear vision, perfect hearing,
unusual stamina, tolerance of hardworking conditions, clear tone etc. Medical examination reveals whether
or not a candidate possesses these qualities.

Reference Checks: After completion of the final interview and medical examination, the personnel
department will engage in checking references. Candidates are required to give the names of references in
their application forms. These references may be from the individuals who are familiar with the candidates
academic achievement or from the applicants previous employer, who is well versed with the applicant’s job
performance, and sometimes from co-workers.

Final Decision by Line Manager : The Line Manager concerned has to make the final decision whether to
select or reject a candidate after soliciting the required information through different techniques discussed
earlier. The line manager has to take much care in taking the final decision not only because of economic
implications and of the decisions but also because of behavioural and social implications.

Job Offer : After taking the final decision the organization has to intimate this decision to the successful as
well as unsuccessful candidates. The organization offers the job to the successful candidate either
immediately. The candidate after receiving the job offer communicates his acceptance to the offer or requests
the company to modify the terms and conditions of employment or rejects the offer.

Employment: The company may modify the terms and conditions of employment as requested by the
candidate. The Company employs those candidates who accept the job offer with or without modifications of
terms and conditions of employment and place them on the job.

Q4. Discuss the importance of training and development in organizations. How do you identify the
training needs in an oraganisation? Describe the different methods of training.

Ans. 4. Importance of training and development in organizations : The importance of HRM to a large
extend depends on human resources development and training is its most important technique. No
organization can get a candidate who exactly matches with the job and the organizational requirements.
Hence training is important to develop the employee and make him suitable to the job. Training works
towards value addition to the company through HRD. Organisational efficiency, productivity, progress and
development to a large extend depends on training. If training is not provided it leads to performance failure
of the employees.Organisational objectives, like stability, viability and growth can also be achieved through
training. Training is important as it constitutes a significant part of management control. Training enhances
4Cs viz competence, commitment, creativity and contribution for the organization.

Identification of training needs: Training needs are identified on the basis of organizational anaylsis, job
analysis and manpower analysis. Training needs are those aspects necessary to perform the job in an
organization in which employee is lacking attitude/aptitude, knowledge and skills. Basically there are two
type of analysis done to identify the training. One is the Organizational Analysis and the other Individual
Analysis.

Training needs = Job and organizational requirement-Employees specifications

Identification of Training Needs


Sr. Group or Organizational Analysis Individual Analysis
1. To identify Organizational goals and objectives Performance appraisal
2. Personnel/skill inventories Work sampling
3. Organizational Climate indices Interviews
4. Efficiency indices Questionnaires
5. Exit interviews Attitude survey
6. MBO or work planning systems Training progress
7. Quality circles Rating scales

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8. Customer survey/satisfaction data Observation of behavior
9. Consideration of current and projected
changes

The different methods of training:


There are basically two methods of training. 1) On-the-Job Methods and 2) Off-the job-Methods.

TRAINING METHODS
On the Job Methods Off The Job Methods
1. Job Rotation Vestibule Training
2. Coaching Role Playing
3. Job Instruction Lecture Methods
4. Training through Step by Step Conference or discussion
5. Committee Assignments Programmed Instruction

On the Job Training Methods : This type of training is also known as job instruction training. Under this
method the individual is place on a regular job and taught the skills necessary to perform that job The
trainee learns under the supervision and guidance of a qualified worker or instructor. On the job training
has the advantage of giving first hand knowledge and experience under the actual working conditions. While
the trainee learns how to perform a job, he is also a regular worker rendering the services for which he is
paid. The emphasis is placed on rendering services in the most effective manner rather than learning how to
perform the job.

1. Job Rotation : This type of training involves the movement of the trainee from one job to another. The
trainee receives job knowledge and gains experience from his supervisor or trainer in each of the different
job assignments. Though this method of training is common in training managers for general management
positions, trainees can also be rotated from job to job in workshop jobs. This method gives an opportunity to
the trainee to understand the problems of the employees on other jobs and respect them.

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

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

4. Committee Assignments : Under the committee assignments a group of trainees are given and asked to
solve an actual organizational problem. The trainees solve the problem jointly. It develops team work.

Off the Job Methods : Under this method of training, the trainee is separated from the job situation and his
attention is focused upon learning the material related to his future job performance. Since te trainee is not
distracted by job requirements, he can place his entire concentration on learning the job rather than
spending his time in performing it. There is an opportunity for freedom of expression for the trainees.

1. Vestibule Training : In this method, actual work conditions are stimulated in a class room. Material files
and equipments which are used in actual job performance are also used in training. This type of training is
commonly used for training personnel for clerical and semi skilled jobs. The duration of tis type of training
ranges from days to a few weeks. Theory can be related to practice in this method.

2. Role Playing : It is defined as a method of human interaction that involves realistic behaviour in
imaginary situations. This method of training involves action, doing and practice. The participants play the

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role of certain characters such as the production manager, mechanical engineer, superitentents,
maintenance engineers, quality control inspectors, foremen, workers and the like. This method is mostly
used for developing inter-personal interactions and relations.

3. Lecture Method : The lecture is a traditional and direct method of instruction. The instructor organises
the material and gives it to a group of trainees in the form of a talk. To be effective, the lecture method must
motivate and create interest among the trainees. An advantage of the lecture method is that it is direct and
can be used for a large group of trainees. Thus costs and time involved are reduced. The major limitation of
the lecture method is that it does not provide for training effectively.

4. Conference or Discussion : It is a method in training the clerical, professional and supervisory personnel.
This method involves a group of people who pose ideas, examine and share facts, ideas and data, test
assumptions and draw conclusions, all of which contribute to the improvement of job performance.
Discussion has the distinct advantage over lecture method as it involves two way communication. The
participants feel free to speak in small groups. The success of this method depends on the leadership
qualities of the person who leads the group.

5. Programmed Instruction : In recent years this method has become popular. The subject matter tobe
learned is presented in a series of carefully planned sequential units. These units are arranged from simple
to more complex levels of instructions. The trainee goes through these units by answering or filling the
blanks. This method is expensive and time consuming.

Q5. Discuss any two theories of motivation. Explain the stratergies used by organizations to motivate
employees.
Ans 5. Theories of Motivation: There are several theories on motivation. The significant among them are
Maslow’s Hierarchy of Needs, Herzberg’s Two Factor Theory, Vrooms Expectancy Theory, Porter and
Lawler’s Expectancy Theory and Equity Theory of Work Motivation. We shall discuss 1. Maslows Theory of
Hierarchy of Needs and 2. Herzberg Two Factor Theory.

1. Maslows Theory of Hierarchy of Needs :


According to Maslow, human needs form a hierarchy, staring at the bottom with the physiological needs
and ascending to the highest need of self actualization. He says when one set of needs is satisfied; they
no longer work as motivators as a man seeks to satisfy the next higher level of needs.

__________________________________________________
Need for Self-Actualization
__________________________________________________
Physiological Needs
__________________________________________________
Esteem Needs
__________________________________________________
Social Needs -Affiliation or
Acceptance Needs
__________________________________________________
Security of Safety Needs
__________________________________________________
Physiological Needs
__________________________________________________
MASLOW”S HIERACHY OF NEEDS
==========================================

The Need Hierarchy:

6. Physiological Needs: These are the basic necessities of human life, food, water, warmth, shelter,
sleep and sexual satisfaction. Maslow says that until these needs are satisfied to the required level,

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man does not aim for the satisfaction of next level of needs. As far as work environment is
concerned, these needs include basic needs like pay, allowance, incentives and benefits.
7. Security/Safety Needs: These refer to the need to be free of physical danger or the feeling of loss of
food, job or shelter. When the physiological needs are satisfied, man starts thinking of the way by
which he can satisfy his safety needs. Security needs spring up the moment he makes an effort in
the direction of providing himself the source of continuity of physiological needs. In a work
environment these needs include conformity, security plans, membership in unions, severance pay
etc.
8. Social Needs: (Affiliation or Acceptance Needs) When the physiological and security needs are
satisfied, these social needs begin occupying the mind of a man. This is exactly why he looks for
the association of other human beings and strives hard to be accepted by this group. Social needs
at the work place include: Human relations, formal and informal work groups.
9. Esteem Needs: These needs are power, status and self confidence. Every man has a feeling of
importance and he wants others to regard him highly. These needs makes people aim high and
make them achieve something great. These needs for employees include status symbols, awards,
promotions, titles etc.
10. Self Actualization Needs: This is the highest need in the hierarchy. This refers to the desire to
become what one is capable of becoming. Man tries to maximize his potential and accomplish
something, when this need is activated in him.

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

DISSATISFIERS: The first group (factor) consists of needs such as company policy and administration,
supervision, working conditions, interpersonal relations, salary, status, job security and personal life. These
factors he called “DISSATISFIERS” and not motivators. Their presence or existence does not motivate in the
sense of yielding satisfaction, but their absence would result in dissatisfaction. They are also known as
hygiene factors.

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

Another WAY to present the above question

Herzberg’s Two Factor Theory: Classification of Maintenance and Motivational Factors

Sr. Maintenance Factors or Dissatisfiers Motivational Factors or Satisfiers


or Hygiene Factors
1. Job Content Job Content
2. Extrinsic Factors Intrinsic Factors
3. Company Policy and Administration Achievement
4. Quality of supervision Recognition
5. Relations with superiors Advancement
6. Peer Relations Work Itself
7. Relations with subordinates Possibility of Growth
8. Pay Responsibility
9. Job security
10. Work Conditions
11. Status

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Strategies used by organizations to motivate employees.

It is a bare fact that most of us use only a small portion of our mental and physical abilities. To exploit the
unused potential in people they are to be motivated. Needless to say that such exploitation results in greater
efficiency, higher production and better standard of living of the people. There are basically two types of
motivation vis 1) Positive Motivation and Negative Motivation.

1. Positive Motivation: People are said to be motivated positively when they are shown a rewards and the
way to achieve it. Such a reward may be financial or non financial. Monetary motivation may include
different incentives, wage plans, productive bonus schemes etc. Non monetary include praise for work,
participation in management, social recognition. Monetary incentives provide the worker a better standard
of life while non monetary incentives satisfy the ego of a man.
2. Negative Motivation: It is induced by installing fear in the minds of people; one can get the desired work
done. In this method of motivation fear of consequences of doing something or not doing something keeps
the worker in desired direction. This method has got several limitations. Fear Creates frustration, a hostile
state of mind and an unfavorable attitude towards the job which hinder efficiency and productivity. So the
use of it should be kept minimum.

Q6. What is organisational change? Discuss the sources of resistance to change in organisations.
How can effective change be implemented in an organisation?

Ans 6. The term “Organisational Change” implies the creation of imbalances in the existent pattern or
situation. Adjustment among people, technology and structural set up is established when an organisation
operates for a long time. People adjust with their jobs, working conditions, colleagues, superiors etc.
Similarly, an organisation establishes relationship in the external environment. Change requires individuals
and organisations to make new adjustments. Complexity and fear of adjustment gives rise to resistance and
problem of change. Human resource is an important factor in relation to the adjustments among
individuals as well as between the organisation and environment, as an organisation is mostly composed of
people. Individual members can resist either individually or in a group.

Change could be both reactive and proactive. A proactive change has necessarily to be planned to attempt
to prepare for anticipated future challenges. A reactive change may be an automatic response or a planned
response to change taking place in the environment.

Changes relating to organisation include change in employees due to transfers, promotion, retrenchment,
lay-off, restructuring or organisation, introduction of new products or services, imposition of regulation,
changes in organisational goals or objectives etc.

The basic problem in the management to change is the study of causes of resistance to change. Despite the
fact that change is a persistent phenomenon, it is a common experience that employees resist change
whether in the context of their pattern of life or in the context of their situation in the organisation. The best
example is resistance of employees to computerisation. Change of and type requires re-adjustment. ‘Man
always fears the unknown, and a change represents the unknown’.

Sources of resistance to change in an organization.

Reasons for Resistance :- Some of the important reasons for resistance to change are as follows :

(a) Economic Reasons : Economic reasons for resistance are classified into three groups. They are :
• Fear of reduction in employment - Due to the change in technology, methods of work, quantity or
quality of work etc. this fear leads to resistance to change on the part of the people. Opposition to
automation is an example to it.
• Fear to demotion - Employees may fear that they may be demoted if they do not possess the new
skills required for their jobs, after the introduction of change. Hence, they prefer ‘status quo’.
• Fear of workload - Change in work technology and methods may lead to the fear that workload will
be increased while there will not be any corresponding increase in their salaries and benefits. This
feeling creates resistance to change.
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(b) Personal Reasons : Personal reasons for resistance are also divided into three classes. They are:
• Need for training - If change in technology and work organisation necessitates training and re-
learning on the part of employees, it may lead to resistance, as all do not like to go for refresher and
retraining courses off and on.
• Boredom and monotony - If the proposed change is expected to lead to greater specialisation
resulting in boredom and monotony, it may also be resisted by employees.
• No participation in change - Some employees resist any change as they are critical of the situation
and thy are not being given any part in the decision making process for change When they do not
understand fully the implications of change they resist it.
(c) Social Reasons : Social reasons for resistance are also classified into three groups. They are:
• Need for new social adjustment - an organisaitonal change requires new social adjustment with the
group, work situation and new boss etc. All individuals are not ready to accept this challenge. Some
people refuse transfers and promotions for this reason only, as they will have to break their present
social ties.
• Taking change as imposed from outside - some employees take any change as imposed from outside
upon them.
• Other considerations - some employees may consider that every change brought about is for the
benefit of the organisation only and not for them, their fellow workers or even the general public.
Hence they resist the change.

Resistance from the Side of Managers - It is not a common fact that change is always resisted by the
employees only. Managers also resist change sometimes. Any change sets in new responsibilities and
imposes new tension, stress and strains over them is normally resisted by managers. The feeling of
uncertainty, whether they will be able to handle new circumstances successfully or not, motivates them to
resist.

Effective change can be implemented in an Organisation by different approaches:

Approaches to Organisational Change :- Management is said to be an agent of change. It means that the
management has to introduce change successfully in its organisation. It has to overcome the resistance and
make it a successful venture. The management must realise that resistance to change is basically a human
problem, though on the surface, it may appear to be related to the technical aspect of change. So, it must
be tackled in a human and social manner. Management has to take the following steps to implement the
change successfully:
(1) Participation of Employees : Before introducing any change, the employees should be fully consulted
and they must be a party to any such decision. The meaning and purpose of the change must be fully
communicated to those who will be affected by it. Enough time should be allowed for discussion and the
pros and cons of the change should be explained in detail to the employees. (see box below).
Qualities of a Counsellor
• Empathy • Knowledge • High Self Awareness
• Respect • Honesty • Capacity accept without bias
• Warmth • Credibility • Facilitator
• Personal characteristics • Excellent communication • Excellent listener
• All round preparation
(2) Planning for Change : Before implementing any change, the management should plan for it.
Employees should get an opportunity to participate both in planning the change and installing it. This will
help the group of the affected employees to recognise the need for change and thus prepare them for
receiving it without any fear.
(3) Protecting Employees’ Interest : Management should ensure that employees are protected from
economic loss, loss in status or personal dignity. If those things are protected, the degree of resistance to
change will be at the lowest ebb.
(4) Group Dynamics : Group dynamics refers to the ever changing interactions and adjustments in the
mutual perceptions and relationships among members of the groups. Such group interactions are the most
powerful instruments which facilitate or inhibit adaptation to change. Adaptation is a team activity which
requires conformity to the new group norms, moves, traditions and work patterns. If these could be
positively articulated by the management, the results are likely to be more successful and durable.

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(5) Cautious and Slow Introduction : The management should not introduce any change suddenly and
abruptly. It must be an objective for the management to build in the organisation an awareness of change
and an ability to forecast it, and also to construct an attitude of welcoming change. Change must be
introduced in sequential parts, and if possible, the results must be reviewed and required adjustments must
be made in it.
(6) Positive Motion : The management should use the policy of positive motivation to counteract negative
resistance. It should be the attempt of the management to make the job easier and less exerting. Te
management should impart proper training to its employees in new techniques and work knowledge etc.
The leadership styles should also be supportive and human oriented. The policy will also bring down the
resistance to change.
(7) Sharing the Benefits of Change : Any change whether technical, social or economic will be least
resisted by the employees if the management permits the employees to share benefits which arise out of the
change. So, the management must see that employees are not only assured of it, they are given due
advantage of it as well.
(8) Training and Development : Management should plan for change. Based on the change plan, the job
should be redesigned. Management should train the employees before hand and prepare the employees to
invite change. Normally, trained and developed employees will not resist change as they cannot keep quite
with enriched skill and knowledge.
(9) Career Planning and Development : Organisation on the basis of change plans and redesigned jobs
should plan for careers of employees, possibilities to move the employees to the higher levels and develop
them. The developed employees for future careers demand the management to implement change.
(10) Organisation Development : Organisation development aims at moulding and development of
employees in the psychological and behavioural areas with a view to achieve organisational effectiveness.
Employees with enriched behaviours welcome the change.

Q7. What is Performance Appraisal System and what are its objectives? Describe the various sources
of errors in the appraisal process. What is the difference between the Performance Appraisal and
Performance Management Systems in an organisation?

Ans.7 Performance appraisal is a method of evaluating the behaviour of employees in the work place
normally including both the quantitative and qualitative aspects of job performance. Performance refers to
the degree of accomplishment of the tasks that make up an individual’s job. It indicates how ell an
individual is fulfilling the job demands.

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

The key factor in an organization to support an effective performance appraisal system is as follows:
- Organizational planning based on potentialities of human resources.
- Human Resource Planning based on weakness, strengths and potentialities of human resources.
- Organizational effectiveness through performance improvement
- Fixation and refixation of salary, allowances, incentives and benefits
- Original placement or placement adjustment decisions
- Identifying training and development needs and to evaluate effectiveness of training and development
- Needs and to evaluate effectiveness of training and development programmes
- Career planning and development and movement of employees.

Objectives of Performance Appraisal System :- Performance appraisal aims at attaining the different
purposes. They are :
• To create and maintain a satisfactory level of performance.
• To contribute to the employee growth and development through training, self and management
development programmes. Tata Power aims at employee development through performance
appraisal.
• To help the superiors to have a proper understanding about their subordinates.
• To guide the job changes with the help to continuous ranking.
• To facilitate fair and equitable compensation based on performance.

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• To facilitate for testing and validating selection tests, interview techniques through comparing their
scores with performance appraisal ranks.
• To provide information for making decisions regarding lay-off, retrenchment etc. as in the case of
Hyundai Engineering.

Sources of Error in Performance Appraisal:

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

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

b. The Error of Central Tendency: Some raters follow play safe policy in rating by rating all the
employees around the middle point of the rating scale and they avoid rating the people at
both the extremes scale. They follow play safe policy because of answerability to the
management or lack of knowledge about the job and person he is rating or has least interest
in the job.

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

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

e. The Recency Effect: The raters generally remember the recent actions of the employee at the
time of rating them on the basis of these recent actions favourable or unfavourable-rather
than on the whole activities.

Difference between Perfomance Appraisal and Performance Management System.

Perfomance Appraisal Perfomance Management System


Performance Appraisal is Organisational planning Performance Management System performance of
based on potentialities of its human sources. the employee is continuously monitored and
developed in tune with the organisational
requirements.

It is human resource planning based on weakness, Emphasis on Documentation : Emphasis is


strengths and potentialities of human resources. required for goal setting of employees and other
important processes of a performance management
system.

The basic purpose is to find out how well the Computer-based Performance Management :
employee is performing the job and to establish a Now-a-days software is available for implementing
plan of improvement. the entire performance management process.
It is not job evaluation. It refers to how someone is Collaborative Performance Management : Both
doing the assigned job. Job evaluation determines the Manager and the subordinates understand each
how much a job is worth to the organization and other and both understand the organisational goals
therefore, what range of pay should be assigned to and requirements with a common and collaborative
the job. mind.

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It identifies training and development needs and Customised Performance Management System :
evaluates effectiveness of training and development Organisations started adopting seperate performance
programmes. appraisal techniques and design the system for each
employee separately based on employee skills,
behaviour and his job needs.

Q 8.Write short notes on any three of the following :-


a) Job Satisfaction b) Employee Morale c) Job Evaluation
d) Job Analysis e) Employee Turnover f) H.R. Policies

Ans 8a. Job Satisfaction : Job satisfaction refers to a person’s feeling of satisfaction on the job, which acts
as a motivation to work. It is not self-satisfaction, happiness or self-contentment but satisfaction on the job.

The term relates to the total relationship between an individual and the employer for which he is paid.
Satisfaction does mean the simple feeling state accompanying the attainment of any goal, the end-state is
feeling accompanying the attainment by an impulse of its objective. Job dissatisfaction does mean absence
of motivation at work. Research workers differently described the factors contributing to job satisfaction
and job dissatisfaction. Hoppock describes job satisfaction as “any combination of psychological,
physiological and environment circumstances that cause any person truthfully to say that I am satisfied
with my job.”
Job satisfaction is defined as the “pleasurable emotional state resulting from the appraisal of one’s job as
achieving or facilitating the achievement of one’s job values.” In contrast, job dissatisfaction is defined as
“the unpleasurable emotional state resulting from the appraisal of one’s job as frustrating or blocking the
attainment of one’s job values or as entailing disvalues.” However, both satisfaction and dissatisfaction
were seen as “a function of the perceived relationship between what one perceives it as offering one
entailing.

Ans 8b. Employee Morale : Morale is purely emotional. It is an attitude of an employee towards his job,
his superior and his organisation. This may range from very high to very low. It is not a static thing but it
changes depending on working conditions, superiors, fellow-workers, pay and so on. When a particular
employee has a favourable attitude towards his work, he is said to have high morale. In the Organisational
context, we usually talk of group morale as each person has an influence over the other’s morale.

Ans 8c. Job Evaluation : Job evaluation deals with money and work. It determines the relative worth or
money value of jobs. The International Labour Organisation defined job evaluation as “an attempt to
determine and compare demands which the normal performance of a particular job makes on normal
workers without taking into account the individual abilities or performance of the workers concerned”.
Wendell L. French defined job evaluation as “a process of determining the relative worth of the various job
within the organisation, so that different wages may be paid to jobs of different worth”. Job evaluation is
defined as “the overall activity of involving an orderly, systematic method and procedure of ranking, grading
and weighing of jobs to determine the value of a specific job in relation to other jobs”. British Institute of
Management (1970) defined job evaluation as, “the process of analysing and assessing the content of jobs, in
order to place them in an acceptable rank order which can then be used as a basis for a remuneration
system. Job evaluation, therefore, is simply a technique designed to assist in the development of new pay
structures by defining relatives between jobs on a consistent and systematic basis”. Thus, job evaluation
may be defined as a process of determining the relative worth of jobs, ranking and grading them by
comparing the duties, responsibilities like skill, knowledge of a job with other jobs with a view to fix
compensation payable to the concerned job holder.

Ans 8d. Job Analysis : Te U.S. Department of Labour defined job analysis as “the process of determining by
observation and study and reporting pertinent information relating to the nature of a specific job. It is the
determination of the tasks which comprise the job and of the skills, knowledge abilities and responsibilities
required of the worker of a successful performance and which differentiate one job from all others.”

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Ans 8e. Employee Turnover : The movement of an employee from one job to the another. Jobs themselves
are not actually changed, only the employees are rotated among various jobs. An employee who works on a
routine / respective job moves to and works on another job for some hours/days/months and abcks up to
the first job. This measure relieves the employee from boredom and monotony, improves employee’s skills
regarding various jobs, prepares the competent employees and provides competitive advantage to the
company. These measures also improves worker’s self-image and provides personal growth. However, a
frequent job rotations are not advisable in view of their negative impact on the organisation and the
employee.

Ans 8f. H.R. Policies :

Human resource policies are general statements that guide thinking and action in decision making in
an organisation. A HR policy is a plan of action, a set of proposals and actions that act as a reference
point for managers in their dealings with employees. HR policies constitute guides to action. They
furnish the general standards or bases on which decisions are reached. Their genesis lies in an
organization’s values, philosophy, concepts and principles”. Personnel guide the course of action
intended to accomplish personnel objectives. A HR policy is a guideline for making wise decisions. It
brings about stability in making decisions. A HR policy is a stance, often a choice made between two
or more alternatives, such as the choice between promoting employees on than basis of merit versus
promoting them on the basis of seniority. It covers the norms and guidelines for policies like safety,
recruitment, wages etc.

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