MB0043 Human Resource Management (Book ID: B1132) Set - 1

Q1.Trace out the growth of Human resource Management in India. Answer: Over many centuries India has absorbed managerial ideas and practices from around the world. Early records of trade, from 4500B.C to 300B.C, not only indicate international economic and political links, but also the ideas of social and public administration. The worlds first management book, titled Arlhshastra, written three millennium before Christ, codified many aspects of human resource practice in Ancient India. This treatise presented notions of the financial administration of the state, guiding principles for trade and commerce, as well as the management of people. These ideas were to be embedded in organizational thinking for centuries (Rangarajan 1992, Sihag 2004).Increasing trade, that included engagement with the Romans, led to widespread and systematic governance methods by 250 A.D. during the next 300 years, the first Indian empire, the Gupta Dynasty, encouraged the establishment of rules and regulations for managerial systems, and later from about 1000 A.D. Islam influenced many areas of trade and commerce. A further powerful effect on the managerial history of India was to be provided by the British system of corporate organization for 200 years. Clearly, the socio cultural roots of Indian heritage are diverse and have been drawn from multiple sources including ideas brought from other parts of the old world. Interestingly, these ideas were essentially secular even when they originated from religious bases. In the contemporary context, the Indian management mindscape continues to be influenced by the residual traces of ancient wisdom as it faces the complexities of global realities. One stream of holistic wisdom, identified as the Vedantic philosophy, pervades managerial behavior at all levels of work organizations. This philosophical tradition has its sacred texts from 2000B.C. and it holds that human nature has a capacity for self transformation and attaining spiritual high ground while facing realities of day to day challenges (Lannoy 1971). Such cultural based tradition and heritage can have a substantial impact on current managerial mindset in terms of family bonding and mutuality of obligations. The caste system, which was recorded in the writings of the Greek Ambassador Megasthenes in the third century B.C., is another significant feature of Indian social heritage that for centuries had impacted organizational architecture and managerial practices, and has now become the focus of critical attention in the social, political and legal agenda of the nation.

Q 2 . What are the factors that impact recruitment in organization? Answer: All organizations, whether large or small, do engage in recruiting activity, though not to the same intensity. Few factors that impact the nature of recruitment: 1. The size of the organization- the smaller the organization the more the need to carefully scrutinize the candidate for a job and the fitment to the organizational culture. The risk in case of job-candidate mismatch can prove equally expensive for a smaller organization as compared to the larger one. 2. The employment conditions in the country where the organization is located- critically impacts the recruiting strategy. The methods for recruiting, the selection tools that are most suited and the legal framework that bear on the employer are some aspects that need to be considered. 3. The affects of past recruiting efforts which show the organizations ability to locate and keep good performing people- constantly reviewing the effectiveness of the recruiting methods and the selection tools used, evaluating the success at-work of the new recruits are some methods used by organizations to ensure that quality hiring practices are in-place. 4. Working conditions and salary and benefit packages offered by the organization- this may influence turnover and necessitate recruiting; (v) The rate of growth of organization-the phase in the life-cycle of the firm is a measure of the recruiting effort. 5. The level of seasonality of operations and future expansion and production programmers ensuring that the recruitment numbers come from a well-planned Human Resource Plan is critical to ensure that there is no over-hiring or under- hiring of the required talent to achieve the organizational objectives. 6. Cultural, economic and legal factors these too affect the recruiting and selection methods that are used.

Q3.State the major career development activities found in organizations. Answer: Today, HR managers participate in developing business strategies and ensure that human 2

resource dimensions are considered. For instance, the HR manager for manufacturing has HR responsibilities for 600 employees. In that role she contributes to workflow, production, scheduling, and other manufacturing decisions. It also means that she is more accessible to and has more credibility with manufacturing workers, most of whom are hourly workers. Making the transition in HR management required going from seven to three levels of management, greatly expanding the use of cross-functional work teams, and significantly increasing training. To ease employee and managerial anxieties about the changes, GE Fanuc promised that no employees would lose their jobs. Managers and supervisors affected by the elimination of levels were offered promotions, transfers to other jobs in GE Fanuc, or early retirement buyouts. Additionally, employees were promised profit sharing, which has resulted in up to three weeks additional pay in profit sharing bonuses in some years. The test of the change is in the results. GE Fanucs revenue is up almost 18%. Over 40 work teams meet regularly to discuss work goals, track their performance against established measures, and discuss problems and issues. Employee turnover is also extremely low in most areas. Transitions in HR management are also paying off in the Bank of Montreal, based in Montreal, Quebec. Emphasizing human resources has involved 35,000 employees in organizational success. This recognition meant focusing greater attention on the talents of diverse employees working at the bank. Specific efforts were made to expand opportunities for women employees, who composed about three-fourths of the banks workers. As a result, several years later about one-fourth of all managers and executives are women. Similar attention also was focused on other diverse groups of employees. So that all employees were given opportunities to grow and learn, the Bank of Montreals Institute of Learning was established at a cost exceeding $50 million. The goal of providing five days of training and education to every employee each year has been met for several years. To focus on performance, each department and every employee have performance targets and measure son such factors as customer service, return on equity, and profitability. Yearly, the scores from all measures are computed as indices, and then compiled into one figure to measure overall bank performance. Executives believe that their emphasis on HR activities has contributed significantly to the Bank of Montreals achieving period profits for seven years in a row. In summary, it is evident that the transition of HR management at GEFanuc and at Bank of Montreal has enhanced organizational competitiveness and success.

Q4.What are the major problems faced in benefits management? Answer: One of the most vexing problems faced by modern human resource management is how to assure 3

that the employees of the organization are being compensated appropriately for their contributions. One critical part of that determination, of course, is whether their pay is the correct amount within the context of affordability, equity, and market conditions. Affordability and equity are generally (not always, but usually) internal organizational issues that management can rely on internal data and information to analyze and manage. Determining market conditions, however, has always been difficult. Over the past century the methodologies, practices, and science of arriving at market pay information and intelligence has evolved from chamber of commerce and industry and professional association information sharing to sophisticated survey design, implementation, and analysis. While simple arithmetic might have been sufficient in 1950, advanced mathematics, and statistical analyses are required today.

Q 5 . Assume yourself as an HR Manager of a publishing house. You find that the morale of the employees is generally low. What steps would you take to improve employee morale? Answer: Stage 1 - Listen Get feedback and ideas. Stage 2 - Communicate with solutions to business issues and employee concerns. Stage 3 - Recognize business and employee accomplishments and successes. Stage 1: Listen to employees Relationships between the organization and employees are fractured following a period of upheaval. And this situation wont improve on its own. Companies must take a proactive approach, beginning with listening to employees and getting their concerns out into the open. Leaders must acknowledge employee issues and be motivated to make improvements. Of vital importance is publicizing that employee feedback is encouraged and necessary and that the organization values their ideas. Decide the messages behind the listening activities deployed, and use them consistently, for example: We know staff morale is low and want your help. We need to save money and are looking for ideas on how to best achieve that. We want to add to our top line and need your feedback on opportunities to look at. Leaders should be visible, approachable and well-briefed, so that they canfield employee questions. Interaction should be face-to-face whenever possible. Key messages should also be developed and be used as part of regular, ongoing communication activities. 4

Managers need to believe in and support all listening activities. They should be briefed on the rationale and approach for these activities before they meet with employees, and asked for their ideas on how listening activities should be implemented. Leaders should be visible, approachable and well briefed, so they can field questions. Listening activities Employee survey - This can encompass routinely scheduled company surveys or those designed expressly to communicate change. Employee discussion/focus groups - Include as many employees as possible. Managers with the right people skills (listening, questioning, for example) can be trained to run these groups. Management discussion groups - Led by a facilitator, these sessions are designed specifically as management briefings. Managers are guided through a process that will enable them to run employee discussion groups and to get feedback on specific topics. (This approach works best with cost saving or similar topics, rather than morale and trust issues.) Stage 2: Communicate your solutions to business issues and employee concerns The next stage is communication. The listening activities should have created lots of ideas and feedback. In this stage, it's important to build a shared understanding of your companys future, including substantive solutions to business issues and progress being made. Build a shared understanding of your companys future, including solutions to business issues and progress being made. Who does what in stage 2? Company leaders focus on addressing concerns expressed by employees in the listening stage and briefing managers on issues. The purpose is to create a shared understanding of the challenges and solutions facing the organization. Managers undertake specific efforts to communicate these outputs. They must create opportunities for dialogue and discussion, which leads to higher levels of employee engagement. Managers should also assure employees that they can expect honest and timely information. They should show their willingness to discuss anything on employees minds and help employees feel comfortable asking questions and sharing solutions. Employee advisory work groups should be set up to address a number of challenges most critical to the organization. Because this program thrives on momentum, these groups should have clear objectives and a limited shelf life. Potential activities must be honed down to focus only on their most important issues. A kick-off meeting can define the teams scope, role and timescales. Work groups should also encourage leaders to communicate progress through all communication 5

channels. Communication activities. Public forums - Communication should take place in person through Town Hall and team meetings, site visits and brown bag lunches. Gossip is curtailed if managers become more transparent with performance data, such as sales figures and customer information. A highly visible and approachable leadership team shows that senior management cares about its workers. This alone serves to foster a more positive employee work environment. One-on-One dialogues - Discussions between managers and direct reports enhance personal communication and increase trust. Electronic media - Emails, web casts and other means of rapidly reaching out across boundaries should be employed to reinforce messages and speed the flow of information. Stage 3: Recognize business and employee accomplishments and successes. Focusing on quick wins and success stories and recognizing employee accomplishments will help keep morale as high as possible. No one is immune from becoming despondent and unproductive when they work in a doom and gloom environment. Negativity is often exacerbated outside the workplace by personal issues and a constant onslaught of negative news stories. Focusing on quick wins and success stories and recognizing employee accomplishments will help keep morale as high as possible. Leaders and managers seek out successes and recognize and thank employees for their contributions to the company and/or team initiatives. Every effort should be made to point out quick wins, for example, a project deadline met, a new order placed, or success in a key objective. Recognition activities Formal initiatives - include established companywide recognition programs as well as rewards such as small bonuses and plaques. Informal gestures - include such things as a warm "thank you" for a job well done, or a congratulatory email or hand-written note. Public recognition includes acknowledging an employee or work groups contributions in a meeting with their peers, or in company publications. Being recognized publicly often has the added bonus of encouraging and motivating peers to strive for similar successes.

Q6.Explain the general procedures followed in the case of a disciplinary action. Answer: 6

Keys to handling disciplinary issues in the workplace Establish the facts of each case It is important to carry out necessary investigations of potential disciplinary matters without unreasonable delay to establish the facts of the case. In some cases this will require the holding of an investigatory meeting with the employee before proceeding to any disciplinary hearing. In others, the investigatory stage will be the collation of evidence by the employer for use at any disciplinary hearing. In misconduct cases, where practicable, different people should carry out the investigation and disciplinary hearing. If there is an investigatory meeting this should not by itself result in any disciplinary action. Although there is no statutory right for an employee to be accompanied at a formal investigatory meeting, such a right may be allowed under an employers own procedure. In cases where a period of suspension with pay is considered necessary, this period should be as brief as possible, should be kept under review and it should be made clear that this suspension is not considered a disciplinary action. Inform the employee of the problem. If it is decided that there is a disciplinary case to answer, the employee should be notified of this in writing. This notification should contain sufficient information about the alleged misconduct or poor performance and its possible consequences to enable the employee to prepare to answer the case at a disciplinary meeting. It would normally be appropriate to provide copies of any written evidence, which may include any witness statements, with the notification. The notification should also give details of the time and venue for the disciplinary meeting and advise the employee of their right to be accompanied at the meeting. Hold a meeting with the employee to discuss the problem The meeting should be held without unreasonable delay whilst allowing the employee reasonable time to prepare their case. Employers and employees (and their companions) should make every effort to attend the meeting. At the meeting the employer should explain the complaint against the employee and go through the evidence that has been gathered. The employee should be allowed to set out their case and answer any allegations that have been made. The employee should also be given a reasonable opportunity to ask questions, present evidence and call relevant witnesses. They should also be given an opportunity to raise points about any information provided by witnesses. Where an employer or employee intends to call relevant witnesses they should give advance notice that they intend to do this. Allow the employee to be accompanied at the meeting Workers have a statutory right to be accompanied by a companion where the disciplinary meeting could result in: A formal warning being issued; or 7

The taking of some other disciplinary action; or The confirmation of a warning or some other disciplinary action (appeal hearings).

The chosen companion may be a fellow worker, a trade union representative, or an official employed by a trade union. A trade union representative who is not an employed official must have been certified by their union as being competent to accompany a worker. To exercise the statutory right to be accompanied workers must make reasonable request. What is reasonable will depend on the circumstances of each individual case. However, it would not normally be reasonable for workers to insist on being accompanied by a companion whose presence would not prejudice the hearing nor would it be reasonable for a worker to ask to be accompanied by a companion from a remote geographical location if someone suitable and willing was available on site. The companion should be allowed to address the hearing to put and sum up the workers case, respond on behalf of the worker to any views expressed at the meeting and confer with the worker during the hearing. The companion does not, however, have the right to answer questions on the workers behalf, address the hearing if the worker does not wish it or prevent the employer from explaining their case. Decide on appropriate action After the meeting decide whether or not disciplinary or any other action is justified and inform the employee accordingly in writing. Where misconduct is confirmed or the employee is found to be performing unsatisfactorily it is usual to give the employee a written warning. A further act of misconduct or failure to improve performance within a set period would normally result in a final written warning. If an employees first misconduct or unsatisfactory performance is sufficiently serious, it may be appropriate to move directly to a final written warning. This might occur where the employees actions have had, or are liable to have, a serious or harmful impact on the organization. A first or final written warning should set out the nature of the misconduct or poor performance and the change in behavior or improvement in performance required (with timescale). The employee should be told how long the warning will remain current. The employee should be informed of the consequences of further misconduct, or failure to improve performance, within the set period following a final warning. For instance that it may result in dismissal or some other contractual penalty such as demotion or loss of seniority. A decision to dismiss should only be taken by a manager who has the authority to do so. The employee should be informed as soon as possible of the reasons for the dismissal, the date on which the employment contract will end, the appropriate period of notice and their right of appeal. Some acts, termed gross misconduct, are so serious in themselves or have such serious consequences that they may call for dismissal without notice for a first offence. But a fair disciplinary process should always be followed, before dismissing for gross misconduct. 8

Disciplinary rules should give examples of acts which the employer regards as acts of gross misconduct. These may vary according to the nature of the organization and what it does, but might include things such as theft or fraud, physical violence, gross negligence or serious insubordination. Where an employee is persistently unable or unwilling to attend a disciplinary meeting without good cause the employer should make a decision on the evidence available. Provide employees with an opportunity to appeal. Where an employee feels that disciplinary action taken against them is wrong or unjust they should appeal against the decision. Appeals should be heard without unreasonable delay and ideally at an agreed time and place. Employees should let employers know the grounds for their appeal in writing. The appeal should be dealt with impartially and wherever possible, by a manager who has not previously been involved in the case. Workers have a statutory right to be accompanied at appeal hearings. Employees should be informed in writing of the results of the appeal hearing as soon as possible. Special cases Where disciplinary action is being considered against an employee who is a trade union representative the normal disciplinary procedure should be followed. Depending on the circumstances, however, it is advisable to discuss the matter at an early stage with an official employed by the union, after obtaining the employees agreement. If an employee is charged with, or convicted of a criminal offence this is not normally in itself reason for disciplinary action. Consideration needs to be given to what effect the charge or conviction has on the employees suitability to do the job and their relationship with their employer, work colleagues and customers.