AHMED OSEI TUTU

MBA – I SEM
Human Resource Management-MB0027
3 Credits
Set – 1
Attempt all the questions. Each Question carries 10 marks.

Q1. Discuss the difference between personnel management and Human Resource
Management. Difference between Personnel Management & Human Resources
Management

Though the two terms 'Personnel Management' and 'Human Resources Management'
are interchangeably used by most authors, there are some differences between them.
Some of the differences are:

1.Management of Human Resources is a new field of study embodying behavioral

science knowledge relating to the working of line and staff officials and union leaders to
motivate organizational goals.

2. Personnel Management is that phase of management which deals with the effective
control and use of manpower.

3.HRM is a broad concept which covers many personnel aspects and includes social,
professional and individual enterprise aspects, whereas Personnel Management
focuses only on personnel aspects such as leadership, justice determination, task
specialisation, staffing, performance appraisal, etc.

4.HRM is more growth oriented whereas Personnel Management is slightly narrow.

Human Resource Planning is very vital in HRM. This is because it leads to the
maximum utilization of human resources, reduces excessive labour turnover and high
absenteeism; improves productivity and aids in achieving the objectives of an
organisation.

5.HRM emphasizes on training, an important area of personnel, which covers the

following aspects: 1. Increasing productivity; 2. Improving quality; 3. Improving
organisational climate; 4. Ensuring personnel growth etc.

6.In practice both pertained to people management philosophically the approach is

vastly different.

7.The expectations from Personnel management approach is to ‘take care’ of the

people working in a organization, addressing grievances and complaints formed a large
part of the Personnel Management function. The focus is largely reactive and followed
the Theory X approach.

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8.Employee welfare is of paramount importance and managing industrial relations as a

result of heightened trade union activity formed the highlights of the Personnel
Management functions.

9.Human Resources Management on the other hand adopts a proactive approach to

managing people and the focus is on employee development and delight. Hiring the
right talent, providing for ample opportunities for career growth and job satisfaction are
the highlights of this management style. The basic philosophy is driven by the Theory Y
approach where the belief is that people like to work and do not prefer to be supervised
and made to perform.

Q2 Explain the Human Resource Planning System

.

Human resource or manpower planning is defined as 'the process by which a

management determines how an organization should move from its current manpower
position to its desired manpower position. Through Human Resource planning, a
management strives to have the right number and the right kind of people at the right
places, at the right time, to do things which result in both the organization and the
individual receiving the maximum long range benefit". Human resource Planning
consists of the following activities:

a. Forecasting future manpower requirements.

b. Making an inventory
c. Anticipating manpower problems
d. Planning the necessary programs of requirement.

Manpower planning consists in projecting future manpower requirements and

developing manpower plans for the implementation of the projections.

Human Resource Planning System

A Human Resource System takes into consideration the following.

1.Objectives of Human Resource Planning

Human Resource Planning fulfils individual, organizational and national goals. Its
purpose is to relate future human resources to future enterprise needs, so as to
maximise the future return on investment in human resources. The main purpose is one
of matching or fitting employee abilities to enterprise requirements, with an emphasis on
future instead of present arrangements.

2.Estimating the Future Organizational Structure or Forecasting the Manpower

Requirements:

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The management must estimate the structure of the organization at a given point in
time. For this estimate, the number and type of employees needed have to be
determined. Many environmental factors affect this determination. They include
business forecasts, expansion and growth, design and structural changes, management
philosophy, government policy, product and human skills mix, and competition.

Forecasting is necessary for various reasons, such as:

1.The eventualities and contingencies of general economic business cycles (such as

inflation, wages, prices, costs and raw material supplies) have an influence on the short-
range and long-run plans of all organizations.

2.An expansion following enlargement and growth in business involves the use of
additional machinery and personnel, and a reallocation of facilities, all of which call for
advance planning of human resources.

3.Changes in management philosophies and leadership styles.

4.The use of mechanical technology (such as the introduction of automatic controls, or

the mechanization of materials handling functions) necessitates changes in the skills of
workers, as well as a change in the number of employees needed.

5.Very often, changes in the quantity or quality of products or services require a change
in the organization structure. Plans have to be made for this purpose as well.

3.Auditing Human Resources:

Determination of present supply of manpower resources is done through "Skills

Inventory". A skills inventory contains data about each employee's skills, abilities, work
preferences and other items of information which indicate his overall value to the
company.

4. Job Analysis records details of training, skills, qualification, abilities, experience and
responsibilities, etc., which are needed for a job. Job analysis includes the preparation
of job descriptions and job specifications. It is useful in job analysis

5.Developing a Human Resource Plan:

This step refers to the development and implementation of the human resource plan,
which consists in finding out the sources of labour supply with a view to making an
effective use of these sources. .

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Q3 Write a detailed note on training needs identification.

Training indicates any process by which the aptitudes, skills and abilities of employees
to perform specific jobs are increased. The purpose of Training is to acquire Intellectual
Knowledge, Manual Skills and Problem Solving Skills. Employee training tries to
improve skills, or add to the existing level of knowledge so that the employee is better
equipped to do his present job, or to prepare him for a higher position with increased
responsibilities.

Training Needs Identification.

Training could be a useful aid in improving the transformation process that takes place
in an organization in terms of the processing of inputs to outputs. Training is related to
both organization and an individual in terms of acquiring or imparting knowledge with
respect to diversification of product lines, new technology or equipment installed.

Identifying of training needs: 1. Views of the line manager 2. Performance appraisal 3.

Company and departmental plans 4. Views of training manager 5. Analysis of job
difficulties.

Thayer and McGhee model identifies training requirement based on three factors:
1. Organization analysis 2. Task analysis 3. Man analysis

Total Organization Analysis:

Total Organization Analysis is a systematic effort to understand exactly where training
effort needs to be emphasized in an organization. It involves a detailed analysis of the
organization structure, objectives, human resources and future plans, and an
understanding of its culture. Organizational Analysis involves achieving a clear
understanding of both short-run and long-run Goals.
For an organization analysis, there are three essential requirements:
1.An adequate number of personnel available to ensure fulfilment of the business
operation;
2.That personnel performance is up to the required standard;
3.That the working environment in their units/departments is conducive to fulfilment of
tasks.

In order to ensure the first two requirements a human resource inventory needs to be
made. Data regarding positions, qualifications, vacancies, replacements and training
time required for replacements have to be worked out. Job standards must also be
worked out. Various efficiency and productivity indexes, or ratios such a productivity
ratios, cost per unit etc, can be worked out to determine not only efficiency but also
adequacy, in terms of under-manning or over-manning, of the workforce. In analyzing
the organization climate, both direct and indirect methods could be used.
Task Analysis
This activity entails a detailed examination of a job, its components, its various
operations and the conditions under which it has to be performed. The focus here is on

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the "task" itself, rather than on the individual and the training required to perform it.
Analysis of the job and its various components will indicate the skills and training
required to perform the job at the required standard.
Standard of Performance:
Every job has an expected standard of performance. Unless such standards are
attained, not only will interrelated jobs suffer, the performance of a job are known, then
it is possible to know whether the job is being performed at the desired level of output or
not. Knowledge of the "task" will help in understanding what skills, knowledge and
attitudes an employee should have.

Methods:
If an employee is asked to perform a job, the exact components of the job and the
standard of performance must be known. Task analysis entails not merely a simple
listing of the various job components, but also of the relatively critical nature of the
various subtasks. Conventional methods of job analysis are usually suitable for task
analysis. They are:
1. Literature review regarding the job. 2. Job performance. 3. Job observation, 4. Data
Collection regarding job interviews.

Man Analysis
Man analysis is the third component in identifying training needs. The focus of man
analysis is on the individual employee, his abilities, and the inputs required for job
performance, or individual growth and development in terms of career planning. Man
analysis helps to identify whether the individual employee requires training and if so,
what kind of is training. Clues to training needs can come from an analysis of an
individual's or a group's typical behaviour.

The primary sources of such information are:

1.Observation at place or work, examination of job schedules, quantum of spoilage,

wastage, and clues about interpersonal relations of the employees;

2.Interviews with superiors and employees;

3.Comparative studies of good vs. poor employees, to identify differences, skills and
training gaps;
4.Personnel records;
5.Production reports;
6.Review of literature regarding the job and machines used. Job knowledge tests, work
sampling and diagnostic psychological tests also provide information about employees.

Q4 Explain different types of appraisal methods .

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Performance evaluation is the personnel activity by means of which the enterprise

determines the extent to which the employee is performing the job effectively and for
performance evaluation to be more than a yearly paperwork exercise, top management
must encourage its use and use it to make reward decisions such as promotions.

Types of Appraisal Methods

There are several ways to classify these tools. The three categories used here will be;
Individual evaluation methods; Multiple person evaluation methods; and other methods
Individual evaluation Methods:
There are five ways to evaluate an employee individually. In these systems,
employees are evaluated one at a time without directly comparing them with other
employees. They are:

1. Graphic rating scale:

In this technique, the evaluator is presented with a graph and asked to rate employees
on each of the characteristics listed. The number of characteristics rated varies from a
few to several dozen. A factor analysis of the results indicates that only two traits were
being rated: quality of performance and ability to do the present job.

2. Forced choice:
In forced choice, the evaluator must choose from a set of descriptive statements about
the employee. The two,three,or fourstatement items are grouped in a way that the
evaluator cannot easily judge which statements apply to the most effective employee.

3.Essay evaluation:
the evaluator is asked to describe the strong and weak aspects of the employee's
behaviour. The essay method can be used by evaluators who are superiors, peers, or
subordinates of the employee to be evaluated.

4.Management by objectives:
In this system, the supervisor and employee to be evaluated jointly set objectives in
advance for the employee to try to achieve during a specified period. The method
encourages, if not requires, them to phrase these objectives primarily in quantitative
terms. This approach combines the superior and self evaluation systems.

5.Critical incident technique:

In this technique, personnel specialists and operating managers prepare lists of
statements of very effective and very ineffective behaviour for an employee. These are
the critical incidents. The critical incident technique is more likely to be used by
superiors than in peer or subordinate evaluations.

6.Checklists and weighted checklists:

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In its simplest form, the checklist is a set of objectives or descriptive statements. If the
Rater believes that the employee possesses a trait listed, the Rater checks the items; if
not, the Rater leaves it blank. A rating score from the checklist equals the number of
checks the employee's evaluation is the sum of the scores (weights) on the items
checked. Checklists and weighted checklists can be used by evaluators who are
superiors, peers, or subordinates, or by a combination.

7.Behaviourally anchored rating scales:

BARS called the behavioural expectation scale (BES). This is a new, relatively
infrequently used technique. Supervisors give escriptions of actually good and bad
performance, and personnel specialists group these into categories (five to ten is
typical). As with weighted checklists, the items are evaluated by supervisors (often other
than those who submitted the items)

II. Multiple person Evaluation Methods

The techniques described above are used to evaluate employees one at a time. Three
techniques that have been used to evaluate an employee in comparison with other
employees being evaluated are discussed in this section.

1.Ranking:
In ranking method, the evaluator is asked to rate employees from highest to lowest on
some overall criterion. Simple ranking can be improved by alternative ranking. In this
approach the evaluators pick the top and bottom employees first, then select the next
highest and next lowest, and move towards the middle.

2.Paired comparison:
This approach makes the ranking method easier and more reliable. First, the names of
the persons to be evaluated are placed on separate sheets (or cards) in a
predetermined order, so that each person is compared to all others to be evaluated. The
evaluator then checks the person he feels is the better of the two on a criterion for each
comparison. Typically the criterion is overall ability to do the present job. The number of
times a person is preferred is tallied, and this develops an index of the number of
preferences compared to the number being evaluated

3.Forced distribution:
The forced distribution system is similar to 'grading on a curve’. The evaluator is asked
to rate employees in some fixed distribution of categories, such as 10 percent in low, 20
percent in low average, 40 percent in average, 20 percent in high average, and 10
percent in high. One way to do this is to type each employee's name on a card and ask
the evaluators to sort the cards into five piles corresponding to the ratings. This should
be done twice for the two key criteria of job performance and promo ability. One reason
forced distribution was developed was to try to alleviate such problems as inflated
ratings and central tendency in the graphic rating scale.

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III. 360 Degree Appraisal

The multiple input approach to performance feedback is sometimes called "360degree

assessment" to connote that full circle. There are no prohibitions in law or regulation
against using a variety of rating sources, in addition to the employee's supervisor, for
assessing performance assessment approaches with multiple rating sources provide
more accurate, reliable, and credible information. For this reason, Personnel
Management supports the use of multiple rating sources as an effective method of
assessing performance for formal appraisal and other evaluative and developmental
purposes.

Q5 Write a note on Motivation Techniques.

Motivation Technique activity may be divided into two parts:

(a)What is to be done.- forms steps in motivation.

(b) How and why what is done.- identify rules governing the steps.

The steps of motivation are listed below:

1.Size up situation requiring motivation:

The first stage of motivation is to make sure of motivational needs. Every employee
needs motivation. However, all people do not react in exactly the same way to the same
stimuli. Keeping this in mind the executive shall size up how much and what kind of
motivation is needed and when and by which individuals.

2.Prepare a set of motivating tools:

An executive must have a list from which he should select and apply specific tools of
motivation. An executive from his personal experience should prepare a list of what
devices are likely to work with what type of people and under what circumstances.

3.Selecting and applying the appropriate motivator:

Proper application of motivational plan is very important. This involves selection of the
appropriate technique, the method of application and the timing and location of
applications.

4.Follow-up the results of the application:

The last stage of motivation is to follow-up the results of the application of the plan. The
primary objective is to ascertain if an employee has been motivated or not. If not, some
other technique should be tried. A secondary purpose of follow-up is to evaluate
motivation plans for future guidance. Rules of Motivating: In following the steps of
motivation a manager should be guided by some fundamental rules which should be
based upon the following principles:

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1.Self-interest and Motivation:

Motivation is mainly built on selfishness. Psychologically speaking, selfishness is a part
and parcel of life. To deny this is to build the theory on unrealistic foundation. The aim
should be to learn more about selfishness.

2. Attainability:
Motivation must establish attainable goals. What is prescribed for a particular person
must be attainable by him. This does not mean that the goal is realised at once. Such
goals as promotion or desirable transfer may take years to attain. But it must be within
reach. There are a number of ways of inspiring and motivating a team and these include
the use of:

•Positive imagery
•Team-building activities
•Training
•Enhanced communication
•Targets, rewards and incentives

Q6 Elaborate the importance of grievance handling.

Grievance can be described as “any discontent or dissatisfaction, whether expressed or

not and whether valid or not, arising out of anything connected with the company that an
employee thinks, believes or even feels unfair, unjust or inequitable. It can also be said
to be
A written complaint filed by an employee claiming unfair treatment"

Causes of employee grievances could be grouped under different major headings,

some of the causes that need to be considered are:

1. Promotions;
2. Amenities;
3.Continuity of Services;
4.Compensation;
5. Disciplinary action;
6.Fines;
7.Increments;
8.Wages;
9.Acting Promotion;
10. Recovery of dues;
11. Safety appliance;
12. Superannuation;
13. Supersession;

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14. Transfer;
15. Victimization;
16. Conditions of work.

Importance of Grievance Handling

The grievance handling / dispute handling process starts from the desk of a senior
manager, where should try to settle the grievance at the first stage i.e before the
grievance has left the jurisdiction of the supervisor. This requires that the manager is
competent and trained in handling a grievance problem and handling the grievance
using scientific method is most productive for a satisfactory solution.
The following directions help in handling a grievance:

1.Receive and define the nature of the dissatisfaction:

The manner and attitude with which the supervisor receives the complaint of grievance
is important. The supervisor should assume that the employee is fair in presenting the
complaint or grievance. Statements should not be prejudged on the basis of past
experience with this or other employees. The supervisor should not be too busy to listen
and should not give an impression of condescension in doing so.

2.Get the facts:

In gathering facts, one quickly becomes aware of the importance of keeping proper
records such as performance ratings, job ratings, attending records, and suggestions. In
addition, with the increasingly legalistic bent that is characteristic of modern labour
management relations, the supervisor is wise to keep records on each particular
grievance. It is also mportant that the supervisor possesses and exercise some skill in
interview conference, and discussion.

3.Analyze and divide:

With the problem defined and the facts in hand, the manager must now analyze and
evaluate them, and then come to some decision.

4.Apply the answer:

Though the solution decided upon by the superior is adverse to the employee, some
answer is better than none. In the event of an appeal beyond this stage of the
procedure, the manager must have the decision and the reasons for his decisions
should be properly recorded.

5.Follow up:
The purpose of its follow up phase is to determine whether the clash of interest has
been resolved. If follow up reveals that the case has been handled unsatisfactorily or
that the wrong grievance has been processed, then redefinition of the problem, further
fact finding, analysis, solution and follow up are required.

6. Among the common errors of management encountered in the processing of

grievances are:

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i.Stopping too soon in the search of facts;

ii.Expressing a management opinion prior to the time when all pertinent facts have been
discovered;

iii.Failing to maintain proper records;

iv.Resorting to executive fiat or orders instead of discussion and conference to change

minds.

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MBA – I SEM
Human Resource Management-MB0027
3 Credits
Set – 2
Attempt all the questions. Each Question carries 10 marks.

Q1. Write a detailed note on charismatic leadership.

This power is based on followers identification with a leader. The leader is admired
because of one or more personal traits. Followers can be influenced because of this
admiration.
A charismatic leader relies on his natural characteristics like aura, personality and
inspirational qualities.

•Charismatic Leadership

An enthusiastic, selfconfident leader whose personality and actions influence people to 
behave in certain ways

Characteristics of charismatic leaders:

•Have a vision
•Are able to articulate the vision
•Are willing to take risks to achieve the vision
•Are sensitive to the environment and to follower needs
•Exhibit behaviours that are out of the ordinary

Effects of Charismatic Leadership
•Increased motivation, greater satisfaction
•More profitable companies
•Charismatic leadership may have a downside:

After recent ethics scandals, some agreement that CEOs with less vision, and more ethi
cal and corporate responsibility, might be more desirable

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Q2 Discuss four types of interviews used for selection .

Interviewing is probably the most widely used single method of selection. A substantial
amount of subjectivity, and therefore, unreliability, is to be expected from interviewing
when used as a tool of evaluation.

The interview consists of interaction between interviewer and applicant. If handled

properly,it can be a powerful technique in achieveing accurate information and getting
access to material otherwise unavailable.

Four kinds of interviews for selection have been identified. These are:

Preliminary interview: These interviews are preliminary screening of applicants to

decide whether a more detailed interview will be worthwhile. The applicant is given job
detailed during the interview to afford him freedom to decide whether the job will suit
him. This method saves the company’s time and money.

Stress interview: Stress interviews are deliberate attempts to create pressure to observe
how an applicant performs under stress. Methods used to induce stress range from
frequent interruptions and criticism of an applicant ‘s opinion, to keeping silent for an
extended period of time. The most important advantage of the stress interview is that
helps to demonstrate important personality characteristics which would be difficult to
observe in tension – free situation. However, stress – inducing must be done carefully
by trained and skilled interviewers.

Depth interview: Depth interviews cover the complete life history of the applicant and
include such area as the candidate’s works experience, academic qualification, health
interest, and hobbies. it is an excellent method for executive selection, performed by
qualified personnel.

Patterned interview: Patterned interviews are a combination of direct and indirect

questioning of the applicant. The interviewer has certain clues and guidelines to area
which should be probed deeply and the interview also encourages the candidate to
express the relevant information freely.

After the patterned interview is complete, the interviewer should evaluate the candidate
on the basis of practical experience. According to R.N. McCurry and others, certain
factors lead to accurate predictions of the candidate’s suitability for a particular position.
The factors are:

(1) basic character traits (2) motivation, and (3) emotional maturity.

One advantage of a patterned interview is that systematic and chronological

information is obtained, and hence this yields to statistical analysis.

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Q3 Write a short note on career planning and succession planning.

Career Planning: While most people think the term career means “advancement” in an
organization, a broader view of career defines it as an “individual perceived sequence of
attitudes and behavior work – related activities and experiences over the span of a
person’s life. “in other words, the term career has an internal focus and refers to the way
and individual views his/her career and it has a external or objective focus and refers to
the actual series an organization requires an examination of two processes; how
individuals plan and implement their own career goal (career planning) and how
organizations design and implement their careers development programs (career
management). Career planning is a deliberate attempt by an individual to become more
aware of his or her own skills, interest, values opportunities, constraints and
consequences. It involves identifying career related goals and establishing plans to
achieving those goals. Career management is considered to be an organizational
process that involves individual alone or within the organization career systems.

A variety of career components i.e activities and tools exists for use in organization. HR
managers should be familiar with these components because the managers often serve
as internal consultants responsible for designing the career development systems.
Some of the activities described are individual career planning tools and others are
commonly used for organizational career management. In general the most effective
career development program will use both types of activities.

A variety of career development activates are foe use. Some of the more popular ones
include:

1. Self assessment tools (e.g career planning workshops, career workbooks);

2. Individual counseling;

3. Information service (e.g job posting systems, skills inventories, career ladders or
career paths, career paths, career resource centres and other communication
formats);

4. Initial empolyment programs (e.g Anticipatory socialization programs, realistic,

recruitment, employee orientation program);

5. Organizational Assessment program (eg Assessment centres, psychological

Testing, promotability forecasts, succession planning and

6. Developmental programs (e.g Assessment centres job rotation programs, in

house training, tuition refund plans, mentoring). No matter what tools are used for
career development, it is important that employees develop and individualized
career plan. For example Raychem requires every person to have a learning or
development plan.
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Succession Planning
Succession Planning involves having senior executives periodically review their top
executives and those in the next- lower level to determine several backups for each
senior position. This is important because it often takes years of grooming to develop
effective senior – level management positions and can be informal or formal.for informal
succession planning, the individual manager identifies and grooms his or her own
successor. This is more prevalent in smaller firms.

Formal succession planning involves an examination of strategic (long – range) plans

and HR forecasts and a review of the data on all potentials candidates. The objective is
to identify employees with potential and increase managerial dept as well as promoting
from within the company.in addition it include determining and clarifying the
requirement s of the managerial position and development plans for how future
managerial requirement will be met.

Components include identification of high - potential employees, update lists of possible

replacements, performance appraisal of all employees, and individual development
plans and management development programs. Additionally, the factors rated as most
important in selecting specific candidates for grooming includes: past job performance,
past positions or prior employment, perceived credibility, area of expertise and career
paths and values and attitudes.

Benefits: There are many benefits of having a formal succession planning system:

1. Provided a specific connection to business and strategic planning

2. Provides a more systematic basis to judge the risk of making particular

succession and development moves.

3. Assist in developing systematized succession plans that fit with a distinct trend
to codify, whatever possible, more general and comprehensive corporate palling
actions.

4. Improves the identification of high potential and future leaders,whereby the

organization can engage with them for leadership development intitiatives

5. Reduces randomness of managerial development movements.

6. Helps anticipate problems before they get stated – and thereby avoid awkward or
dysfunctional situations.

7. Provides logical approach for locking succession planning into the process of
human resource planning – connecting formats (data,timing) with process
(judgment, discussion, analyses)

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8. Facilities integration of the many components of human’s resources planning

after having done many of these separately in the past.

9. Improves internal promotion opportunity.

10. Provides early warming if succession does not exist for a position allowing for
lateral hiring from the market.

Q4. Elaborate different theories related to managing compensation.

Managing CompensationThe purpose of compensation is to attract, motivate, and

maintain employees. An employee’s pay is a statement of worth to an employer. There
are two types of compensation:

Direct compensation this includes wages/salaries, commission, bonuses, and gain-

sharing.

Indirect compensation this includes time-off, insurance plans, security plans, and
employee services.
Strategic compensation links the compensation of employees to the missions,
objectives, philosophies, and culture of the organization. It serves to mesh the monetary
payments made to employees with specific functions of the HR program in establishing
a pay-for-performance standard. Furthermore, it seeks to motivate employees through
compensation. There are three important aspects of a strategic compensation:

(1) compensation through organizational objectives, (2) the pay for performance
standard,
and
(3) motivating employees through compensation

.(1)Compensation through managements objectives includes value added

compensation
which evaluates individual components of the compensation program (pay and benefits)
to see if they advance the needs of employees and the goals of the organization.

(2) The pay for performance standard is the standard by which management ties
compensation to employee effort and performance. It refers to a wide range of
compensation options.
(3)Motivating employees through compensation is an employee`s perception that
compensation received is of equal value for the work performed. It is a motivation theory
that explains how people respond to situations in which they have received less(or
more) than they deserve
.Note- the basis for compensation is/are: wages, salaries, and piecework.

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Pay secrecy is an organization policy prohibiting employees from revealing their

compensation information to anyone.
The wage-mix of both internal and external factors plays an important role in
determining wage rates for jobs.

Internal factors: employee’s compensation strategy, worth of a job, relative work of an

employee, and the employer’s ability to pay.

External factors: labour marker conditions, area wage rates, cost of living (which is
based on the CPI index)

(escalator clause), and collective bargaining (real wages).Note—Escalator clauses are

clauses in collective agreements that provide for quarterly cost-of-living adjustments in
wages, basing the adjustments on changes in the consumer price index. And,

Real wages are wage increases larger than rises in the consumer price index; that is,
the real earning power of wages.

Job evaluation systems determine the relative worth of jobs in order to establish which
job should be paid more than others.

Different job evaluations include i)nonquantitative and ii)quantitative

evaluationsi)Nonquantitative evaluations:

Job Ranking System—the oldest system of job evaluation by which jobs are arrayed on
the basis of their relative worth.

Job Classification system—is a system of job evaluation in which jobs are classified and
grouped according to a series of predetermined wage grades. Successive grades
require increasing amounts of job responsibility, skill, knowledge, ability, or other factors
selected to compare jobs. ii)Quantitative evaluations:

Point System—is a quantitative job evaluation procedure that determines the relative
value of a job by the total points assigned to it. It permits jobs to be evaluated
quantitatively on the basis of factors or elements—compensable factors—that constitute
the job. (the point manual
is a complimentary handbook)(a Factor Comparison System is also quantitative)Work
valuation systems are job evaluation systems that seek to measure a job’s worth
through its value to the organization. Jobs are valued relative to financial, operational, or
customer service objectives of the organization. The hay profile method is used for
evaluating jobs in managerial positions. It is a job evaluation technique using three
factors— knowledge, mental activity, and accountability—to evaluate executive and
managerial positions. A wage and salary survey is a survey of the wages paid to
employees of other employers in the surveying organization’s relevant labour market. It
helps maintain internal and external pay equity for employees.The wage curve consists
of pay grades (jobs within a particular class that are paid the same rate), rate ranges

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(a range of rates for each pay grade that may be the same for each pay grade or
proportionately greater for each successive grade), and red circle rates (payments
above the maximum of the pay range)

Broad-banding
is the collapse of many different salary grades into a few wide salary bands.For Gov’t
regulation of organizational compensation, consider the Canadian Labour Code,
Employment Standards Act, and Pay Equity.Significant compensation issues in today’s
work environment are: Equal pay for equal work, Wage-rate compensation, and Wage-
rate compensation, and Wage-rate compression (compression of pay differentials
between job classes, particularly the pay differentials between hourly workers and their
managers)

Q5 How employee morale is measured? Briefly explain different methods used to

measure employee morale.

Morale can be measured by assessing attitudes and job satisfaction. As it is an

intangible and subjective concept, it cannot be directly measured or evaluated.
Employees may be unwilling to express their feelings of satisfaction or dissatisfaction
with their job to the management.

Methods of measuring morale range all the way from the “hunch” or general “feeling”,
appraisal to reasonably scientific efforts.

The most commonly used methods for measuring morale are:

1.The supervisor / executive’s impressions.

2. The guided interview.

3. The unguided interview.

4. A combination of the guided and unguided interview.

5. An analysis of company records.

6. The “Listening- in” process

7. The questionnaire.

8.A combination of any of the foregoing methods.

The supervisor / executive’s impressions: Some supervisors may not be able to tell you
how they know they know the morale of their men,but they enjoy enjoy such an intimate

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relationship with them that they do know what their attitudes are. They usually know
how to get things done according to the methods they have been taught, but few of
them have had any special training in evaluating morale as such. Some executives are
inspirational leaders and capable of developing a hint morale, but few of these are
trained in observing and evaluating morale situation and should be aided by more
accurate tools that are available.

The Guided interview: The guided interview is based on the hypothesis that employee’s
answers to certain questions will reveal their attitudes. The questions selected are
presumed to be the ones that will call forth a true picture of how the employees feel.
This series of questions is usually rather large. The interviewer seeks to direct the
interview in such a manner as to secure the answers that will reveal the desired
information. The guided interview is a useful method of investigating the morale of
supervisors or other groups that are small in comparison with the employees as a
whole.

The Unguided Interview: This technique for measuring morale is predicated upon the
theory that, if employees are placed in a position to talk freely, they will reveal a true
situation not so much by the exact thing complained of or discussed as by the
interviewer’s ability to relate what is said to basic causes. It is also assumed that, if the
employee himself is permitted to talk through a given problem or work situation without
special prompting or questioning by the interviewer, he usually will become aware of the
logic or lack of logic in the situation and choose for himself the appropriate line of action.

The method of employee-attitude analysis is designed both to correct an unfavourable

situation and to secure information regarding the status of morale within the group.
Though it is an expensive method of measurement than the questionnaire method, it not
only provides a means of interpreting morale but at the same time is used to build
morale.

A Combination of the Guided and Unguided Interview: To combines the two methods,
the interviewer may start with the guided interview, which should be not too long or
cover too much territory. The interviewer is than invited to discuss any subject that he
may like to talk about. During the guided interview some persons tend to bring in
material that has no special significance in relation to the information sought. The
interviewer should observe such instances and encourage the interviewee should
observe such instances and encourage the interviewee to follow up these leads during
the unguided position of the interview. As a matter of fact, few guided interviews are
strictly kept on the detailed subjects laid out in the formal programme and a conscious
effort has to be put forth to get the most out of the unguided phases of the interview.

Company Records and Reports: These are usually prepared by the Personnel
Department at regular intervals with the assistance of supervisors and Department
Heads. Generally, grievance and complaints tend to reveal the state of morale of a
group unless these are being artificially stimulated. Excessive absenteeism or tardiness
may also serve as an index of general or specific morale conditions, particularly where

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certain departments have an especially unfavourable record. Labour turnover is a fair

index of labour unrest or morale, particularly during a period of labour shortage. This
type of analysis is difficult and is not always reliable as an index of morale because it
may not be possible to reveal the managerial deficiencies that are not directly
interpretable in terms of morale.

Listening- in by a Trained Observer: Whiting Williams of Cleveland,ohio has developed

the “listening- in” technique to the extent that it would be appropriate to call it the
“Whiting William Method”. He associates with the porkers at work and during
recreational periods. He personally possesses the ability to make his observation
largely objective, something that is unusual in men who might be available for such
work. But it is difficult to secure individuals who possess the required scientific approach
to do this work. Such observers are prone to report what they think their employers want
them to find rather than the true situation. As a whole, this type of investigation of the
morale status of employees is not satisfactory.

The Questionnaire Method: This method is generally used to collect employee opinions
about the factor which affect morale and their affect on personnel objectives. Morale
surveys are generally conducted with a view to :

1.Finding out what employees really think;

2. Finding out about the kind of education and information they need;

3. Improving morale and keeping a check on the effectiveness of personnel programs;

4. Determining the training needs of employee; and

5. Finding out what employees really like.

In the questionnaire, questions may be asked in various ways. The interviewer has to
determine the type of questions to be used depending on the objectives of the survey.
These include multiple choice, dichotomous (yes or no)’ and open- ended questions.

Conducting the Survey: Management may engage an outside consultant to conduct the
entire survey. In this event, the consultant must be introduced to the employees, and
they should be assured that he will not reveal to anyone an individuals’ answer. In some
cases the company’s representatives may give the employees the questionnaires in a
stamped envelope, planning them on a table and permitting the employees to get them
if they wish to, or having a fellow employee distributed them. The stamped envelops
are frequently addressed to some management consultant or college professor who
tabulates the result.

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Q6 Explain the guidelines of a disciplinary action

The principal ingredient of a sound disciplinary system are:

1.Location of responsibility: The responsibility for maintain discipline should be

entrusted to a responsible person (e.g; a line executive), though it is the personnel
officer who should be entrusted with the responsibility of offering advice and assistance.
The line Executive should issue only verbal and written warnings. In serious cases,
which warrant discharge or suspension, the industrial Relation Officer should be
consulted.

2. Proper formulation and communication of rules: Since employees are expected to

conform to rule and regulations and behave in a responsible manner, it is essential that
these rules and regulations are properly and carefully formulated and communicated to
them. It would be preferable if a copy of these regulations together with any
explanations there of, is included in their handbook; at any rate, they should be put up
on notice boards and bulletin boards. While finalizing the rules, everyone should be
given the opportunity to express freely his views thereon.

3. Rules and regulations should be reasonable: Plant conditions and the management
climate should be such as would be conducive to the observance of rules and
regulations. The workload should be such as is practicable on normal working
conditions for an average employee.

4. Equal treatment: all defaulted should be treated alike, depending on the nature of
their offence. Identical punishment should be awarded for identical offences,
irrespective of the position or seniority of the employee.

5. Discliplinary action should be taken in private: this is essential because the main
objective of a disciplinary is to ensure that a wrong behavior is corrected and not that
the wrong- doer should be punished, or held up to ridicule. If a disciplinary action is
taken in the presence of other employees, it may offend the sense of the employee and
impair his social standing with his colleagues. Such an action may rouse resentment in
the employee and his fellow- workers, and make for a disturbed climate in the
organization.

6.Importance of promptness in taking disciplinary action: justice delayed is justice

denied. If the penalty is imposed long after a violation of rule has been committed, it
loses its positive and the penalty had been imposed in time. Care should, therefore, be
exercised to ensure that a penalty is imposed soon after an infringement of a rule has
been justly taken for termination of an employee, it should be implemented soon.

7.Innocence is presumed: An individual is presumed to be innocent unit he is proven to

be guilty. The burden of profits is on the employer and not the employee. It is for the

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management to prove beyond a reasonable doubt, that a violation or an offence has

been committed before any punishment is awarded. The kind of proof that would be
needed for this purpose would depend on the gravity of the offence that has been
committed.

8.Get the facts: Before taking any disciplinary action, it should be made sure to get and
keep adequate records of offences and warnings. it is always better to let the
subordinate fully explain what happened and why it happened. It may then be
discovered that there were mitigating circumstances, or that he was not aware of the
rules; or that the person had conflicting orders or even permission to break the rule for
some reason. Getting facts is a good management practices, especially when defending
the decision, to superiors, union arbitrators and others.

9.Action should be taken in cool atmosphere: The action should be taken, not when one
is anger has “cooled off” a bit so that rational and sensible judgement could be taken.

10.Natural justice: A punitive action must satisfy the condition of natural justice. The
management must act without bias and without vindictiveness; it should always indicate
that its disciplinary action against an employee is based on justice and fair play. The
punishment should be commensurate with the gravity of the offence; and it should be
corrective or reformative rather than retributive. The employee should be “rehabilitated”,
and not “injured”

11.After a disciplinary action has been taken by the supervisor, he should treat his
subordinate in normal manner: The employee has paid the penalty for his violation of a
rule. He should, there, be treated as he would have been, had there been no
punishment. The attitude of the supervisor should be: “Forgive and Forget”.

12.Don’t down when you are right: When the supervisor knows he is right-that the rule
was broken, that adequate warning is given, that the penalty is not too severe-he should
not back down or compromise on penalty-especially once the decision is announced. In
most cases “being soft” is not viewed as a virtue. Instead, employees either assume
that the rule itself is frivolous, or that the rules and penalties are being applied
inconsistently. In either case, baking down is not advisable.

13. Negative motivation should be handled in a positive manner: The philosophy behind
administering a disciplinary action is that a negative motivation should be handled in a
positive manner, that is, it should be brought home to the employee that a negative
approach does not pay. Positively-oriented managers generally feel that discipline
should not punish but instead be corrective and constructive. As far as possible,
disciplinary action should deal with specific rule in question, rather than with the
employee in general. The saying “ let the punishment fit the crime” is appropriate when
disciplining the employee.

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Case Study- MB0027

Quick post is a courier Services Company established for around 10 years. Its head
quarters are at New Delhi and are having around 200 employees. Since past two years
the business of the company in flourishing.
They introduce special schemes for students during the month of May, June and July
offering discounts to courier admission forms. At that time the work load increases by
about 20%
The North Zone is headed by Shiv Kapur for last 3 years. He is a friendly leader,
sometimes when the team members leave to stay back he may make special
arrangement, for snacks and tea. He also tries to give them compensatory off or related
work day when the work load is less. He may also forward them some motivational or
humorous mails during a hectic day , and after he may play some instrumental music
records.
Employees have great respect for him and they gladly accept the extra piece of work
assigned to them. They enjoy their work and the level of commitment is a high.
In the beginning of year 2000 Shiv Kapur has gone for a two years study leave. Mr.
Indroneil De has joined in his place.
Indroneil is a nice person, but is a bit short – tempered. Once some customer called him
regarding the consignment which has not been delivered on time. Indroneil called a
meeting and uses very tough remarks for the team. He strictly sticks to the timings and
no flexibility is allowed to employees regarding the timings. Things are going well
through there is a bit of unrest amongst the employees and they feel the work
atmosphere has become too mechanical.
Problems started in late may when the work pressure started increasing. No one was
ready to stay back even 2 minutes They were not ready to postpone their leave plans
and the productivity and work place was quite low.Indroneil requested for the extra
manpower, but it was not possible so soon.
Indroneil is tense and sitting in his office he is wondering now, he shall deal with the
crisis. He calls Mr. Ghosh, one of the old employee, and discuss the problem with him.
Mr. Ghosh suggests that he shall discuss things with Mr. Kapur.

Q1 Comment on Mr. Kapur’s style of leadership

Mr.Kapur’s style of leadership is more of a participating(democratic) style of leadership

also known as consultation, empowerment, joint decisionmaking, democratic
leadership, Management By Objective (MBO) and power-sharing.

This is normally used when you have part of the information, and your employees have
other parts. As a leader is not expected to know everything -- this is why you employ
knowledgeable and skillful employees. Using this style is of mutual benefit, it allows
them to become part of the team and allows you to make things better. This style
involves the leader including one or more employees in the decision making process
(determining what to do and how to do it). However, the leader maintains the final
decision making authority. Using this style is not a sign of weakness, rather it is a sign
of strength that your employees will respect.

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As we can see in the case study he is a friendly leader, sometimes when the
team members leave to stay back he may make special arrangement, for snacks and
tea.

He also tries to give them compensatory off or related work day when the work load is
less. He may also forward them some motivational or humorous mails during a hectic
day , and after he may play some instrumental music records.

Q2. What difference do you find in the behavior of employees during the leadership a
Mr. Kapur and Mr. Indroneil?

During the leadership reign of Mr. Kapur there was employee cooperation and
willingness to work due to his democratic, caring, fine hearted and serene atmosphere
that he created at the work place for the employees, however during turner or
leadership reign of Mr.Indroneil his style was more of a Bureaucratic leadership style
where everything is done according to procedure or policy Style.
We could see that Mr. Indroneil is a short tempered person, and does not exercise
patience to handle both customers and employees. Once some customer called him
regarding the consignment which has not been delivered on time. Indroneil called a
meeting and uses very tough remarks for the team. He is very strict and sticks to the
timings and gives the employees no flexibility regarding timings.

Q3 .What suggestions you may give to Mr. Indroneil to improve the situation and wish
employee cooperation?

Mr. Indroneil should try to be more of a democratic leader and involve with his
employees.
He should also try to go back and learn from the system which was being applied by his
predecessor Mr. Kapur. Maybe by arranging a meeting with him or if impossible then he
should allow Mr.Ghost to help him in that direction, since he has been in the company
for a very long time.

Q4. How will you try to measure the employee morale at quick post?

I will measure the employee morale at quick post by doing the following things first it
could be seen that the attitude of the employees has changed , we therefore have to put
things in place to streamline that.

Management has to check on the job satisfaction of the employees, we have to make
sure that the employees work with happiness at the workplace and with the veil to
achieve targeted goals of the company

We also have to distribute questionnaires to the employees, so that from their responds
we could be able to pinpoint where the problems or grievances actually are that has a
tendency of sinking the company .

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