Human Resourse - MB 0027

Human Resource Management
Name: Deepti Sajesh
Roll Number: 530910495
Learning Centre: Wisdom Institute , Abu Dhabi
Subject: Human resource Assignment No.:MB0027 (Set-1)

Management & (Set -2)
Date of Submission at the Learning Centre:28-08-09
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Index
Sr. No Topic Page No
Set -1
Difference between Personnel
01 Management & Human resource 02
Management
02 Human Resource Planning System 03
Detailed Note on Training needs

03 05
identification
04 Different types of Appraisal Forms 08
05 Note on Motivation Techniques 13
06 Importance of Grievance Handling 16
Set - 2
01 Detailed Note on Charismatic Leadership 18
02 4 types of interviews used for Selection 20
Short Note on Career Planning &

03 22
Succession Planning
Different Theories related to Managing
04 24
Compensation
How Employee Moral Measured and
05 Methods used to Measure Employee 27
Morale
06 Guidelines on Disciplinary Action 31
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Q1. Difference between Personnel Management and Human Resource
Management
The genesis of human resource Management traces its roots to the erstwhile personnel
Management that was prevalent in the companies of a few decades ago.
Sr. No Personnel Management Human Resource Management
Management of Human Resource is a new

Personnel Management is that phase
field of study embodying behavioural
of management which deals with
01 science knowledge relating to the working
effective control and use of
of line and staff officials and union leaders
manpower.
to motivate organizational goals.
Personnel Management focuses only
Human resource management is broad
on Personnel aspects such as
concepts which covers many personnel
02 leadership, justice determination, task
aspects and include social, professional and
specialization, staffing, performance
individual enterprise aspects.
appraisal, etc.
Personnel Management is slightly
03 Whereas HRM is growth – oriented
Narrow
Personnel management is often Human resource management, on the other

04 considered an independent function of hand, tends to be an integral part of overall
an organization company function.
With human resources, all of an
organization’s managers are often involved
Personnel management is typically
in some manner, and a chief goal may be to
05 the sole responsibility of an
have managers of various departments
organization’s personnel department
develop the skills necessary to handle
personnel-related tasks.

When looking for a job in personnel management or human resources, it is important to realize
that many companies use the terms interchangeably. If you are offered a job as a personnel
manager, you may be required to perform the same duties as a human resource manager, and
vice versa. In some companies, a distinction is made, but the difference is very subtle.
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Q2. Human Resource Planning System
Introduction
Planning the right man for the right job and developing him into effective team member is an
important function of every manager. It is because HR is an important corporate asset and
performance of organisation depends upon the way it is put in use. HRP is a deliberate strategy
for acquisition, improvement and preservation of enterprise’s human resource. It is managerial
function aimed at coordinating the requirements, for and availability of different types of
employees. This involves ensuring that the organisation has enough of right kind of people at the
right time and also adjusting the requirements to the available supply.
Human Resource Planning
Human Resource or manpower planning is “the process by which a management determines how
an organisation should move from its current manpower position to its desired manpower
position. Through 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 organisation and
the individual receiving the maximum long – range benefits”.
According to Wickstrom, Human Resource Planning consists of a series of activities, viz.
a) Forecasting future manpower requirements, either in terms of mathematical projections

of trend in the economic environment and development in industry, or in terms of
judgmental estimates based upon the specific future plans of a company;
b) Making an inventory of present manpower resources and assessing the extent to which
these resources are employed/ optimally;
c) Anticipating manpower problems by projecting present resources into the future and
comparing them with the forecast of requirements to determine there adequacy, both
quantitatively and qualitatively; and
d) Planning the necessary programmes of requirement selection, training, development,
utilization, transfer, promotion, motivation and compensation to ensure that future
manpower requirements are properly met.
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Practical benefits
When it concerns human resources, there are the more specific criticisms that it is over-
quantitative and neglects the qualitative aspects of contribution. The issue has become not how
many people should be employed, but ensuring that all members of staff are making an effective
contribution. And for the future, the questions are what are the skills that will be required, and
how will they be acquired.
There are others, though, that still regard the quantitative planning of resources as important.
They do not see its value in trying to predict events, be they wars or takeovers. Rather, they
believe there is a benefit from using planning to challenge assumptions about the future, to
stimulate thinking. For some there is, moreover, an implicit or explicit wish to get better
integration of decision making and resourcing across the whole organisation, or greater influence
by the centre over devolved operating units.
Cynics would say this is all very well, but the assertion of corporate control has been tried and
rejected. And is it not the talk of the process benefits to be derived self indulgent nonsense? Can
we really afford this kind of intellectual dilettantism? Whether these criticisms are fair or not,
supporters of human resource planning point to its practical benefits in optimizing the use of
resources and identifying ways of making them more flexible. For some organizations, the need
to acquire and grow skills which take time to develop is paramount. If they fail to identify the
business demand, both numerically and in the skills required, and secure the appropriate supply,
then the capacity of the organisation to fulfill its function will be endangered.
Thus, it will be noted that ’manpower planning consists in projecting future manpower
requirements and developing manpower plans for the implementation of the projections’.
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Q3. Note on Training Needs Identification
Introduction
Training defined:
It is a learning process that involves the acquisition of knowledge, sharpening of skills, concepts,
rules,
or changing of attitudes and behaviours to enhance the performance of employees.
Training is activity leading to skilled behavior.
• It’s not what you want in life, but it’s knowing how to reach it
• It’s not where you want to go, but it’s knowing how to get there
• It’s not how high you want to rise, but it’s knowing how to take off
• It may not be quite the outcome you were aiming for, but it will be an outcome
• It’s not what you dream of doing, but it’s having the knowledge to do it
• It's not a set of goals, but it’s more like a vision
• It’s not the goal you set, but it’s what you need to achieve it
Training is about knowing where you stand (no matter how good or bad the current situation
looks) at present, and where you will be after some point of time.
Training is about the acquisition of knowledge, skills, and abilities (KSA) through professional
development.
Training Needs Identification
Training need identification is a tool utilized to identify what educational courses or activities
should be provided to employees to improve their work productivity. Here the focus should be
placed on needs as opposed to desires of the employees for a constructive outcome. In order to
emphasize the importance of training need identification we can focus on the following areas: -
• To pinpoint if training will make a difference in productivity and the bottom line.
• To decide what specific training each employee needs and what will improve his or her
job performance.
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• To differentiate between the need for training and organizational issues and bring about a
match between individual aspirations and organizational goals.
Identification of training needs (ITN), if done properly, provides the basis on which all other
training activities can be considered. Also requiring careful thought and analysis, it is a process
that needs to be carried out with sensitivity as people's learning is important to them, and the
reputation of the organization is also at stake.
Identification of training needs is important from both the organizational point of view as well as
from an individual's point of view. From an organization’s point of view it is important because
an organisation has objectives that it wants to achieve for the benefit of all stakeholders or
members, including owners, employees, customers, suppliers, and neighbours. These objectives
can be achieved only through harnessing the abilities of its people, releasing potential and
maximizing opportunities for development. Therefore people must know what they need to learn
in order to achieve organizational goals. Similarly if seen from an individual's point of view,
people have aspirations, they want to develop and in order to learn and use new abilities, people
need appropriate opportunities, resources, and conditions. Therefore, to meet people's
aspirations, the organization must provide effective and attractive learning resources and
conditions. And it is also important to see that there is a suitable match between achieving
organizational goals and providing attractive learning opportunities.
A survey conducted by A.D. Sinha, listed in rank order the following methods of identifying
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
Identification of training needs can be done at three levels to ascertain three kinds of needs: -
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Organizational Needs
These concern the performance of the organisation as a whole. Here identification of training
needs is done to find out whether the organisation is meeting its current performance standards
and objectives and if not, exploring ways in which training or learning might help it to do so.
Sometimes organisational training needs are also identified when the organisation decides that it
has to adopt a major new strategy, create a new product or service, undergo a large-scale change
programme, or develop significant new relationships, such as joining with others to form new
partnerships.
Group Needs
Since working in groups and teams have become very much prevalent in today's corporate world
that is why nowadays there is increased emphasis given on team effectiveness and team
performance. So training needs are nowadays even identified at the group level. Training needs
here are concerned basically with the performance of a particular group, which may be a team,
department, function, sub-unit, or so on. Information about this group’s performance may
identify areas of need - which, again, may be for training or other interventions. It is used to find
out how efficiently a particular team or group goes about its business and meets its current
objectives.
Individual Needs
These concern the performance of one or more individuals (as individuals, rather than as
members of a group). Here identification of training needs is about finding out to what extent
individuals need to learn or be trained in order to bring their current performance up to the
required level as a result of changes in methods and processes that call for new competencies and
skills. It also sees to it that there is continuous improvement initiative taken by them. Moreover it
also helps to find out whether individuals are comfortable in working across boundaries, with
people from different backgrounds and different perspectives. This is especially important
because there is so much work force diversity observed today in organisations that it has become
impossible to retain workforce, which is not flexible enough to accommodate such changes into
their daily work schedule.
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Q4. Different Types of Appraisal Methods
Performance Appraisal:
Performance appraisal is the process of obtaining, analyzing and recording information about the
relative worth of an employee. The focus of the performance appraisal is measuring and
improving the actual performance of the employee and also the future potential of the employee.
Its aim is to measure what an employee does.
According to Flippo, a prominent personality in the field of Human resources, “performance

appraisal is the systematic, periodic and an impartial rating of an employee’s excellence in the
matters pertaining to his present job and his potential for a better job." Performance appraisal is a
systematic way of reviewing and assessing the performance of an employee during a given
period of time and planning for his future.
It is a powerful tool to calibrate, refine and reward the performance of the employee. It helps to
analyze his achievements and evaluate his contribution towards the achievements of the overall
organizational goals.
By focusing the attention on performance, performance appraisal goes to the heart of personnel
management and reflects the management’s interest in the progress of the employees.
Types of Appraisal Methods
There are several ways to classify these tools. The three categories used here will be: Individual
evaluation method; multiple person evaluation method; and other methods.
1. 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.
Graphic rating scale: The most widely used performance evaluation technique is a graphic
rating scale. In this technique, the evaluator is presented with a graph and asked to rate the
number of characteristics rated varies from a few to several dozen. A factor analysis of the
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results indicates that only two traits were being rated: quality of performance and ability to do
the present job.
The ratings can be in a series of boxes, or they can be on a continuous scale (09) or so. In the
latter case, the evaluator places a check above descriptive words ranging from none to maximum.
Typically, these ratings are then assigned points. For example, outstanding may be assigned a
score of 4 and unsatisfactory a score of 0. Total scores are then computed. In some plans, greater
weights may be assigned to more important traits. Evaluators are often asked to explain each
rating with a sentence of two.
Forced choice: The forced choice method of evaluation was developed because other methods
used at the time led to a preponderance of higher ratings, which made promotion decisions
difficult. In forced choice, the evaluator must choose from a set of descriptive statements about
the employee. The two, three, or four statement items are grouped in a way that the evaluator
cannot easily judge which statements apply to the most effective employee. Typically, personnel
specialists prepare the items for the form, and supervisors or other personnel specialists rate the
items for applicability; that is, they determine which statements describe effective and ineffective
behaviour. The supervisor then evaluates the employee. The Personnel Department adds up the
number of statements in each category (for example, effective behaviour), and they are summed
into an effectiveness index. Forced choice can be used by superiors, peers, subordinates, or a
combination of these in evaluating employees.
Essay evaluation: In the essay technique of evaluation, the evaluator is asked to describe the
strong and weak aspects of the employee's behaviour. In some enterprises, the essay technique is
the only one used; in others, the essay is combined with another form, such as a graphic rating
scale. In this case, the essay summarizes the scale, elaborates on some of the ratings, or discusses
added dimensions not on the scale. In both of these approaches the essay can be open ended, but
in most cases there are guidelines on the topics to be covered, the purpose of the essay, and so
on. The essay method can be used by evaluators who are superiors, peers, or subordinates of the
employee to be evaluated.
Management by objectives: Another individual evaluation method in use today is Management

by Objectives (MBO). In this system, the supervisor and employee to be evaluated jointly set
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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. The
evaluation consists of a joint review of the degree of achievement of the objectives. This
approach combines the superior and self evaluation systems.
Critical incident technique: In this technique, personnel specialists and operating managers
prepare lists of statements of very effective and very ineffective behavior for an employee. These
are the critical incidents. The personnel specialists combine these statements into categories,
which vary with the job. Once the categories are developed and statements of effective and
ineffective behavior are provided, the evaluator prepares a log for each employee. During the
evaluation period, the evaluator "records examples of critical (outstandingly good or bad)
behaviors in each of the categories, and the log is used to evaluate the employee at the end of the
period. It is also very useful for the evaluation interview, since the evaluator can be specific in
making positive and negative comments, and it avoids “recency” bias. The critical incident
technique is more likely to be used by superiors than in peer or subordinate evaluations.
2. 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.
Ranking: In ranking method, the evaluator is asked to rate employees from highest to lowest on
some overall criterion. This is very difficult to do if the group of employees being compared
number over 20. It is also easier to rank the best and worst employees than it is to evaluate the
average ones. 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.
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
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tallied, and this develops an index of the number of preferences compared to the number being
evaluated. These scores can be converted into standard scores by comparing the scores to the
standard deviation and the average of all scores. This method can be used by superiors, peers,
subordinates, or some combination of these groups.
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.
3. 360 Degree Appraisal
Typically, performance appraisal has been limited to a feedback process between employees and
supervisors. However, with the increased focus on teamwork, employee development, and
customer service, the emphasis has shifted to employee feedback from the full circle of sources
depicted in the diagram below. This 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. Research has shown 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.
The circle, or perhaps more accurately the sphere, of feedback sources consists of supervisors,
peers, subordinates, customers, and one's self. It is not necessary, or always appropriate, to
include all of the feedback sources in a particular appraisal program. The organizational culture
and mission must be considered, and the purpose of feedback will differ with each source. For
example, subordinate assessments of a supervisor's performance can provide valuable
developmental guidance, peer feedback can be the heart of excellence in teamwork, and
customer service feedback focuses on the quality of the team's or agency's results. The objectives
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of performance appraisal and the particular aspects of performance that are to be assessed must
be established before determining which sources are appropriate. We shall discuss the
contributions of each source of ratings and feedback. In addition, precautions are listed to
consider when designing a performance management program that includes 360degree
assessment.
Superiors: Evaluations by superiors are the most traditional source of employee feedback. This
form of evaluation includes both the ratings of individuals by supervisors on elements in an
employee's performance plan and the evaluation of programs and teams by senior managers.
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Q5. Note on Motivation Techniques
Motivation is getting others to do something because they want to do it. To motivate

others is one of the most important management tasks. It comprises the abilities to understand
what drives people, to communicate, to involve, to challenge, to encourage, to set an example, to
develop and coach, to obtain feedback, and to provide a just reward.
"Motivation is about cultivating your human capital. The challenge lies not it the work itself, but
in you, the person who creates and manages the work environment."
This activity may be divided into two parts: (a) what is to be done and (b) how and why what is
done. The former are steps in motivation and the latter are rules governing the steps. Both are
performed simultaneously. 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: Having determined the motivational needs of a particular
person or group 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. Having selected appropriate techniques, thought
must be given to its application.
4. Follow up the results of the application: The last stage of motivation is to followup 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.
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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:
1. Selfinterest and Motivation: Undoubtedly, 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. To seek some other basis of motivation would be to ignore the
real nature of man. 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 realized at once. Such
goals as promotion or desirable transfer may take years to attain. But it must be within reach.
Eight Ways to Motivate Plant Employees: Based on a fact finding study conducted at several
manufacturing plants of the General Electric Company, Sorcher and Meyer have made the
following recommendations for improving the motivation of employees in routine jobs.
1. Provide assembly line employees with more than minimum training. Providing some sort of
formal training for a factory employee beyond the required minimum should result in greater
personal involvement in the job.
2. Create sub goals to measure accomplishment. A sense of competition is important to good

motivation. When people work towards clearly defined goals they perform better. Moreover,
they are likely to be more interested in the work which will reduce monotony and mental fatigue.
3. Provide regular feedback on performance. Psychological studies show that people perform
better when they receive positive as well as negative feedback about their performance on a
regular basis.
4. Maintain a neat and orderly work area. If the foreman does not care about neatness, employees
may feel that they need not care about it and this attitude may also affect the quality of their
work.
5. Arrange work situations so that conversation between employees is either easy or impossible.
Experienced workers can do routine jobs with little attention to the task. Conversation while
working may reduce monotony and fatigue and thus have a favourable effect on output.
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6. If possible, increase the number of operations performed by one employee. This can be done
by the simplification of manual operations. It offers several advantages, viz.,
i) The risk of errors is reduced;
ii) Training costs are minimized;
iii) Management can hire employees at lower wages.
iv) Structure jobs, so that workers can, at least occasionally move about the work area.
Besides job rotation, there are other ways to provide for physical movement such as setting
employees secure their own tools or by adding operations which require some physical activity.
v) Explore ways to assign greater personal responsibility. Increased responsibility means greater
self esteem and greater job meaningfulness. One way to enlarge responsibility is to let an
employee inspect his own work.
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Q6. Importance of Grievance Handling
At one or other stage of the grievance procedure, the dispute must be handled by some member
of management. In the solution of a problem, the greater burden rests on management. The
clearest opportunity for settlement is found at the first stage, before the grievance has left the
jurisdiction of the supervisor. For this reason, many firms have specifically trained their
supervisors as to how to handle a grievance or complaint properly.
The dispute or grievance constitutes a managerial problem and the scientific method is usually
most productive in arriving at 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. As a principle applicable to this
step, 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. Thus supervisors who were nearly task oriented , as contrasted with
people oriented, tended to experience a significantly greater number of grievances being filed in
their units.
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 important
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 them come to some decision. There is usually more than one
possible solution. The manager must also be aware that the decision may constitute a precedent
within the department as well as the company.
4. Apply the answer: Though the solution decided upon by the superior is adverse to the
employee, some answer is better than none. Employees dislike supervisors who will take
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no stand, good or bad. 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 objective of the grievance procedure is to resolve a disagreement between an
employee and the organization. Discussion and conference are important to this process. The
purpose of its followup 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 factfinding, analysis, solution and
follow up are required.
Among the common errors of management encountered in the processing of grievances are:
1. Stopping too soon in the search of facts;
2. Expressing a management opinion prior to the time when all pertinent facts have been
discovered;
3. Failing to maintain proper records;
4. Resorting to executive fiat or orders instead of discussion and conference to change minds;
and
5. Setting the wrong grievance mistake which may in turn produce a second new grievance.
Follow up is the step in the procedure that tells us when a mistake in handling has been made.
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Set II
Q1. Detailed Note on Charismatic Leadership
A Charismatic leader is one who provides an environment full of energy and positive
reinforcement. If you are naturally charismatic, you are very fortunate! This is a trait that is not
so easily learned.
Charismatic leaders inspire others and encourage them to be their best. Employees and group
members want to impress a charismatic leader, so they work hard and strive to succeed.
Defined as "resting on devotion to the exceptional sanctity, heroism or exemplary character of an

individual person, and of the normative patterns or order revealed or ordained by him."
Charismatic authority is one of three forms of authority laid out in Weber's tripartite
classification of authority, the other two being traditional authority and rational legal authority.
The concept has acquired wide usage among sociologists.
Characteristics of Charismatic Leaders
The term charisma means "a certain quality of an individual personality, by virtue of which he is
set apart from ordinary men and treated as endowed with supernatural, superhuman, or at least
specifically exceptional powers or qualities. These are such as are not accessible to the ordinary
person, but are regarded as of divine origin or as exemplary, and on the basis of them the
individual concerned is treated as a leader. How the quality in question would be ultimately
judged from an ethical, aesthetic, or other such point of view is naturally indifferent for the
purpose of definition."
Charismatic authority is “power legitimized on the basis of a leader's exceptional personal

qualities or the demonstration of extraordinary insight and accomplishment, which inspire
loyalty and obedience from followers.” As such, it rests almost entirely on the leader; the
absence of that leader for any reason can lead to the authority's power dissolving. However, due
to its idiosyncratic nature and lack of formal organization, charismatic authority depends much
more strongly on the perceived legitimacy of the authority than other forms of authority. For
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instance, a charismatic leader in a religious context might require an unchallenged belief that the
leader has been touched by God, in the sense of a Guru or Prophet. Should the strength of this
belief fade, the power of the charismatic leader can fade quickly, which is one of the ways in
which this form of authority shows itself to be unstable.
In contrast to the current popular use of the term charismatic leader, charismatic authority is not
so much as character traits of the charismatic leader but as a relationship between the leader and
his followers — much in the same way that Freud would transform Gustave Le Bon's crowd
psychology through the notion of identification and of an Ideal of the Ego. The validity of
charisma is founded on its "recognition" by the leader's followers. This recognition "is not (in
authentic charisma) the grounds of legitimacy, but a duty, for those who are chosen, in virtue of
this call and of its confirmation, to recognize this quality.”Recognition" is psychologically, a
completely personal abandon, full of faith, born either from enthusiasm or from necessity and
hope. No prophet has seen his quality as depending from the crowd's opinion towards himself",
although his charisma risks disappearing if he is "abandoned by God" or if "his government
doesn't provide any prosperity to those whom he dominates."
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Q2. Four types of interviews used for selection
Interview - An interview is a conversation between two or more people (the interviewer and the
interviewee) where questions are asked by the interviewer to obtain information from the
interviewee.
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.
Four kinds of interviews for selection have been identified. These are:
1. Preliminary interview: These interviews are preliminary screening of applicants to decide

whether a more detailed interview will be worthwhile. The applicant is given job details during
the interview to afford him freedom to decide whether the job will suit him. This method saves
the company's time and money.
2. 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 situations.
However, stress inducing must be done carefully by trained and skilled interviewers.
3. Depth interview: Depth interviews cover the complete life history of the applicant and
include such areas as the candidate's work experience, academic qualifications, health interest,
and hobbies. It is an excellent method for executive selection, performed by qualified personnel.
4. Patterned interview: Patterned interviews are a combination of direct and indirect

questioning of the applicant. The interviewer has certain clues and guidelines to areas which
should be probed deeply and the interview also encourages the candidate to express the relevant
information freely.
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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.
MB 0027 Page 21


Q3. Short Note on Career Planning & 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 “individually perceived sequence of attitudes and behaviour 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 of job positions held by the individual.
Understanding career development in an organization requires an examination of two processes;
How individuals plan and implement their own career goals (career planning), and how
organizations design and implement their career development programs (career management).
Career panning is a deliberate attempt by an individual to become more aware of his or her own
skills, interests, 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 preparing,

implementing and monitoring career plans undertaken by an individual alone or within the
organizations career systems. A variety of career components i.e. activities and tools exists for
use in organizations. 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 programs will use both types of activities.
A variety of career development activates are available for use. Some of the more popular ones
include:
1. Self assessment tools example career Planning Workshops, Career Workbooks);
2. Individual Counseling;
MB 0027 Page 22


3. Information Services (e.g. Job posting systems, skills inventories, career ladders or career
paths, career resource centers and other communication formats);
4. Initial employment Programs (e.g. Anticipatory socialization programs, realistic recruitment,

employee orientation program);
5. Organizational Assessment programs (e.g. Assessment Centers, Psychological Testing,

promotability forecasts, succession planning) ; And
6. Developmental programs (e.g. Assessment Centers, 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.
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 managers.
Succession planning is usually restricted to 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 potential candidates. The objective is to identify
employees with potential and increase managerial depth as well as promoting from within the
company. In addition it includes determining and clarifying the requirements of the managerial
position and development plans for how future managerial requirements will be met.
Components include identification of high potential employees, updated 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
MB 0027 Page 23


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.
Q4. Different Theories related to Managing Compensation
Managing compensation
The basic purpose of wage and salary administration is to establish and maintain an equitable
wage and salary structure. Its secondary objective is the establishment and maintenance of an
equitable labour cost structure i.e., an optimal balancing of conflicting personnel interests so that
the satisfaction of employees and employers is maximised and conflicts are minimised. The
wage and salary administration is concerned with the financial aspects of needs, motivation and
rewards.
Managers, therefore, analyse and interpret the needs of their employees so that reward can be
individually designed to satisfy these needs. The word 'salary' is defined in the Oxford
Dictionary as ‘fixed periodical payment to a person doing other than manual or mechanical
work’. The payment towards manual or mechanical work is referred to as wages. The word pay
refers to the payment for services done which would include salary as well as wages.
Wages are commonly understood as price of labour. In ordinary parlance, any remuneration paid
for services is etymological wage. Benham defines wage as “‘a sum of money paid under
contract by an employer to a worker for services rendered.” Labour was always looked upon as a
commodity governed by the law of supply and demand. Certain theories were propounded for
determination of wages but these could not stand the test of time. A few theories are discussed
below:
Subsistence theory: This theory, also known as 'Iron Law of Wages', was propounded by David
Ricardo (17721823).According to this theory, wages tend to settle at a level just sufficient to
maintain the workers and his family at minimum subsistence levels. The theory applies only to
backward countries where labourers are extremely poor and are unable to get their share from the
employers.
MB 0027 Page 24


Standard of living theory: This theory is a modified form of subsistence theory. According to
this theory, wages are determined not by subsistence level but also by the standard of living to
which a class of labourers becomes habituated.
Residual claimant theory: Francis A. Walker (18401897) propounded this theory. According to
him, there were four factors of production/ business activity viz., land, labour, capital and
entrepreneurship. Wages represent the amount of value created in the production which remains
after payment has been made for all these factors of production. In other words, labour is the
residual claimant.
The wage fund theory: According to this theory, after rent and raw materials are paid for, a
definite amount remains for labour. The total wage fund and the number of workers determine
the average worker's share in the form of wages.
Demand and supply theory: According to this theory, wages depend upon the demand and
supply of labour.
Marginal productivity theory: This is an improved form of demand and supply theory. Wages
are determined by the value of the net product of the marginal unit of labour employed.
Purchasing power theory: According to this theory the prosperity, productivity and progress of
industry depend on there being sufficient demand to ensure the sale of its products and pocketing
of reasonable profits. A large pact of the products of industry is consumed by workers and their
families and if wages are high, demand will be good. However, if wages and the purchasing
power of the workers are low, some of the goods will remain unsold; output will go down, which
will result in unemployment.
The bargaining theory of wages: John Davidson propounded this theory. According to him,
wages are determined by the relative bargaining power of workers or trade unions and of
employers. When a trade union is involved, basic wages, fringe benefits, job differentials and
individual differences tend to be determined by the relative strength of the organization and the
trade union. The Tribunals and Wage Boards have generally followed the principles laid down in
the Fair Wages Committee's Report on fixing wages. The Committee, in its report, has given a
MB 0027 Page 25


considerable thought to wage differentials and has stated that the following factors should be
taken into consideration for fixation of wages:
1. The degree of skill.
2. The strain of work.
3. The experience involved.
4. The training involved.
5. The responsibility undertaken.
6. The mental and physical requirements.
7. The disagreeableness of the task.
8. The hazard attendant on the work, and
9. The fatigue involved.
MB 0027 Page 26


Q5. How employee morale is measured? Briefly explain different methods

used to measure employee morale.
Answer:
Measurement of Employee Morale
Morale can be measured by assessing attitudes and job satisfaction. As it is 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.
General Impression of the Supervisor: Some supervisors may not be able to tell you how they
know the morale of their men, but they enjoy such an intimate 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 high
morale, but few of these are trained in observing and evaluating morale standards. Executives
MB 0027 Page 27


should be encouraged to strive to sense the 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 employees'
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 unfavorable 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 then 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.
MB 0027 Page 28


Company Records and Reports: These are usually prepared by the Personnel Department at
regular intervals with the assistance of supervisors and Department Heads. Generally, grievances
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 certain departments have an especially unfavorable 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
"listeningin" technique to the extent that it would be appropriate to call it the "Whiting Williams
Method". He associates with the porkers at work and during recreational periods. He personally
possesses the ability to make his observations 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 factors which affect morale and their effect 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 programmes;
4. Determining the training needs of employees; and
5. Finding out what employees really like.
MB 0027 Page 29


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 envelopes are frequently addressed to some management
consultant or college professor who tabulates the results.
MB 0027 Page 30


Q6. Explain the Guidelines of a Disciplinary Action
The principal ingredients of a sound disciplinary system are:
1. Location of responsibility: The responsibility for maintaining 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 Relations Officer should be consulted.
2. Proper formulation and communication of rules: Since employees are expected to conform
to rules 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
finalising 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 in normal working conditions for an average
employee.
4. Equal treatment: All defaulters 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. Disciplinary action should be taken in private: This is essential because the main objective
of a disciplinary is to ensure that a wrong behaviour is corrected and not that the wrongdoer
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
MB 0027 Page 31


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 rules has been committed, it loses its positive
and corrective influence, and may even induce resentment, which may not have developed if
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 occurred, and that the punishment
is not unfair. If decision 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 until he is proven to be

guilty. The burden of profits is on the employer and not on the employee. It is for the
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 practice, 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
angry but when the 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
MB 0027 Page 32


reformative rather than retributive. The employee should be taught to behave better; he should
be "rehabilitated", and not "injured".
11. After a disciplinary action has been taken by the supervisor, he should treat his
subordinate in a normal manner: The employee has paid the penalty for his violation of a rule.
He should, therefore, be treated as he would have been, had there been no violation and no
punishment. The attitude of the supervisor should be: "Forgive and Forget."
12. Don't back 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 specially 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,
backing 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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Human Resource Management

Name: Deepti Sajesh

Roll Number: 530910495

Learning Centre: Wisdom Institute , Abu Dhabi

Subject: Human resource Assignment No.:MB0027 (Set-1)

Date of Submission at the Learning Centre:28-08-09

Sr. No Topic Page No

Detailed Note on Training needs

04 Different types of Appraisal Forms 08

05 Note on Motivation Techniques 13

06 Importance of Grievance Handling 16

01 Detailed Note on Charismatic Leadership 18

02 4 types of interviews used for Selection 20

Short Note on Career Planning &

06 Guidelines on Disciplinary Action 31

Sr. No Personnel Management Human Resource Management

Management of Human Resource is a new

Personnel management is often Human resource management, on the other

Human Resource Planning

According to Wickstrom, Human Resource Planning consists of a series of activities, viz.

a) Forecasting future manpower requirements, either in terms of mathematical projections

or changing of attitudes and behaviours to enhance the performance of employees.

Training is activity leading to skilled behavior.

• It's not a set of goals, but it’s more like a vision

Training Needs Identification

1. Views of the line manager

According to Flippo, a prominent personality in the field of Human resources, “performance

Types of Appraisal Methods

1. Individual evaluation Methods

Management by objectives: Another individual evaluation method in use today is Management

2. Multiple person Evaluation Methods

3. 360 Degree Appraisal

Q5. Note on Motivation Techniques

Motivation is getting others to do something because they want to do it. To motivate

1. Selfinterest and Motivation: Undoubtedly, motivation is mainly built on selfishness.

2. Create sub goals to measure accomplishment. A sense of competition is important to good

i) The risk of errors is reduced;

ii) Training costs are minimized;

iii) Management can hire employees at lower wages.

1. Stopping too soon in the search of facts;

3. Failing to maintain proper records;

Q1. Detailed Note on Charismatic Leadership

Defined as "resting on devotion to the exceptional sanctity, heroism or exemplary character of an

Characteristics of Charismatic Leaders

Charismatic authority is “power legitimized on the basis of a leader's exceptional personal

Q2. Four types of interviews used for selection

1. Preliminary interview: These interviews are preliminary screening of applicants to decide

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

(1) Basic character traits

(2) Motivation and

(3) Emotional maturity.

One advantage of a patterned interview is that systematic and chronological information is

Q3. Short Note on Career Planning & Succession Planning

Career management is considered to be an organizational process that involves preparing,

1. Self assessment tools example career Planning Workshops, Career Workbooks);

4. Initial employment Programs (e.g. Anticipatory socialization programs, realistic recruitment,

5. Organizational Assessment programs (e.g. Assessment Centers, Psychological Testing,

Components include identification of high potential employees, updated lists of possible