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Answering Question Papers-PGD HRM
Answering Question Papers-PGD HRM
2011
(New Scheme)
Human Resource Management
HRM
Answers
I Semester PGD HRM Examination, January/February
2011
(New Scheme)
Human Resource Management
HRM
SECTION-A
Question-1
resources
are
an
essential
section
of
any
coaching,
succession
planning,
tuition
with
number
of
activities
such
appraisals as
as
well
employee
as
duly
rewarding the employees. In doing so, HRM must also make sure that
organizational practices are kept in line with the rules and regulations of
governmental laws, thereby ensuring a balance between industrial
relations as well.
At the beginning of the human resources movement in the early 20th
century, HRM was defined by duties such as benefits and payroll
administration and transactional work whereas today with globalization,
HRM has come to focus upon strategic initiatives such as talent
management, succession planning, industrial and employee relations, and
inclusion and diversity.
In order to cater to the growing need of HRM, professionals, universities,
higher educational institutes all over the world have introduced various
courses and degrees that will allow individuals to gain the necessary
knowledge needed for this field. In order to be qualified for a position in
HRM, one needs to possess educational qualifications befitting their
position.
Difference between HRD and HRM
HRD and HRM are both practices that deal with human resources of a
company. Usually in large organizations, there exists entire departments
dedicated to HRM where trained professionals work together solely
towards the amelioration of this aspect, dealing with both HRD and HRM
functions. HRD is human resource development. HRM is human resource
management.
HRD deals with functions such as performance development and
management,
training,
career
development,
mentoring,
coaching,
Question-2
Explain job analysis and job specification
(6 marks)
Answer
JOB ANALYSIS
Meaning
Job analysis is a detailed and systematic analysis of jobs to know the
nature and characteristics of people to be employed for each job.
Duties
job analysis
tasks
Responsibilities
Definition
Flippo defined job analyses as The process of studying and collecting
information relating to the operations and responsibilities of a specific
job.
Uses of job analysis
Employee counseling
Job design and Re-design
Safety and health
Discovering unassigned duties
Recruiting and
selection
Componsation
Job analysis
Job description
and job
specification
Training and
developn
perfomance
appraisal
evaluation
counceling
Collection of material
information
Reviewing of relavant
background
information
selaction of
representative
position to be
analysed
Collection of job
analysis data
Preperation of job
description
Developing job
specification
JOB SPECIFICATION
Job specification is mainly focuses on the person that is job holder. It is a
written
statement
of
qualifications,
traits,
physical
and
mental
judgment,
Question-3
What are the sources of recruitment
(6 marks)
Answer
Sources of Recruitment
The different sources of recruitment are classified into two categories, viz.,
1. Internal : sources of recruitment are from within the organisation.
2. External: sources of recruitment are from outside the organisation.
arrangements for recruitment and selection. In return for their services, they take a
service charge or commission.
2. Public Advertisements : The Personnel department of a company advertises the
vacancy in newspapers, the internet, etc. This advertisement gives information about
the company, the job and the required qualities of the candidate. It invites applications
from suitable candidates. This source is the most popular source of recruitment. This
is because it gives a very wide choice. However, it is very costly and time consuming.
3. Campus Recruitment : The organisation conducts interviews in the campuses of
Management institutes and Engineering Colleges. Final year students, who're soon to
get graduate, are interviewed. Suitable candidates are selected by the organisation
based on their academic record, communication skills, intelligence, etc. This source is
used for recruiting qualified, trained but inexperienced candidates.
4. Recommendations : The organisation may also recruit candidates based on the
recommendations received from existing managers or from sister companies.
5. Deputation Personnel : The organisation may also recruit candidates who are sent on
deputation by the Government or Financial institutions or by holding or subsidiary
companies.
Advantages of External Sources
The benefits / merits / advantages of using external sources of recruitment:1. It encourages young blood with new ideas to enter the organisation.
2. It offers wide scope for selection. This is because a large number of suitable
candidates will come for the selection process.
3. There are less chances of bias or partiality.
4. Here there is no need to maintain confidential records.
Question-4
What is bonus? Explain min. and max. bonus payable under the
statue
(6 marks)
Answer
Definition of bonus
Additional compensation given to an employee above his/her normal
wage. A bonus can be used as a reward for achieving specific goals set by
the company, or for dedication to the company.
MINIMUM AND MAXIMUM BONUS PAYABLE
MINIMUM BONUS
The minimum bonus which an employer is required to pay even if he
suffers losses during the accounting year or there is no allocable surplus is
8.33 % of the salary during the accounting year, or Rs. 100 in case of
employees above 15 years and Rs 60 in case of employees below 15
years, whichever is higher
MAXIMUM BONUS
If in an accounting year, the allocable surplus, calculated after taking into
account the amount set on or the amount set of exceeds the minimum
bonus, the employer should pay bonus in proportion to the salary or
wages earned by the employee in that accounting year subject to a
maximum of 20% of such salary or wages.
Question-5
What is grievance? How to you redress grievance?
(6 marks)
Answer
Grievance can be defined as the dispute and formal dissatisfaction
between the employer and employee. Employees continue to complain
regarding many issues like salary, working environment, holiday and
many more. When these dissatisfaction and unhappiness is unattended
for long it leads to the explosion making it an official grievance. Employers
are continuously under pressure in dealing with grievance issues and they
must give extra precaution when trying to redress grievance.
In todays corporate world trade unions plays a vitally important and
significant role in shaping the labour related rules and regulation. If
grievance arises there is grievance procedure to be followed to redress
those grievance. Firstly, it is important that following the company policy
with regard to such issues is very important and a clause of grievance
should be stated in the employment contract. Which means the employer
and the employee has already agreed up on the mechanism to be
followed when such a situation arises.
confidence
and
reduce
suspicion
of
deal.
When
union
Answer
When it comes human resource planning there are several factors that
affect day-to-day operations. Adapting in this field is important because at
a moments notice new legislation can be passed with an immediate
effective date or corporate policies are changed where human resources
feel the brunt. Well-developed strategies for your human resources
department takes into consider external factors that might affect your
department.
Many factors influencing a company are out of its control. A companys
internal policies, however, directly impact how a business staffs its
workforce and are controllable. Human resources planning consider these
internal factors to ensure that the business gets the most talented
process
of
the
HR
department,
including
hiring,
training,
Structure
Organizational structure impacts human resources planning. Functional,
divisional or matrix structures require different staffing. In a functional
structure, employees perform specialized tasks. In a divisional structure,
each department has representation from each required function, such as
sales, marketing, development and support. In a matrix structure, an
employee reports to two different bosses, one represents her function and
the other managing the division. In each case, effective HR planning
ensures positions get filled to ensure productivity and adhere to company,
local, state and federal regulations for safety and security.
Funding
HR planning must occur within the budget allowed to maximize
profitability. Seasonal demands for additional staff may impact hiring
plans, so a small business needs to anticipate this. The need for
specialized skills may also impact planning. To meet short-term needs,
companies may outsource non-core activities. Meeting long-term needs
typically involves offering training and development opportunities to the
workforce. Additionally, to maximize productivity, morale and loyalty,
employers can plan events. If a small business lacks the financial
resources to offer comprehensive HR programs, it can provide lists of free
resources related to professional development, workforce wellness and
team-building. Adjusting to funding levels may make human resources
plan challenging for a small business.
Question 8
Answer
There are number of training and development methods are used for
different types of employees at different levels. They are:
1) On the job method
2) Off the job method
1- On the job methods
a)
b)
Apprenticeship program
c)
Coaching
d)
Job rotation
e)
Committee Assignments
f)
Mentoring
Case studies are complex examples which give an insight into the context
of a problem as well as illustrating the main point. Case Studies are
trainee centered activities based on topics that demonstrate theoretical
concepts in an applied setting.
A case study allows the application of theoretical concepts to be
demonstrated, thus bridging the gap between theory and practice,
encourage active learning, provides an opportunity for the development of
key skills such as communication, group working and problem solving, and
increases the trainees enjoyment of the topic and hence their desire to
learn.
(c) Role Playing:
Each trainee takes the role of a person affected by an issue and studies
the impacts of the issues on human life and/or the effects of human
activities on the world around us from the perspective of that person.
It emphasizes the real- world side of science and challenges students to
deal with complex problems with no single right answer and to use a
variety of skills beyond those employed in a typical research project.
In particular, role-playing presents the student a valuable opportunity to
learn not just the course content, but other perspectives on it. The steps
involved in role playing include defining objectives, choose context &
roles, introducing the exercise, trainee preparation/research, the role-play,
concluding discussion, and assessment. Types of role play may be multiple
role play, single role play, role rotation, and spontaneous role play.
(d) In-basket training:
In-basket exercise, also known as in-tray training, consists of a set of
business papers which may include e-mail SMSs, reports, memos, and
other items. Now the trainer is asked to prioritise the decisions to be made
immediately and the ones that can be delayed.
4. Sensitivity Training:
5. Transactional Analysis:
It provides trainees with a realistic and useful method for analyzing and
understanding the behavior of others. In every social interaction, there is
a motivation provided by one person and a reaction to that motivation
given by another person.
Question-8
What are the modern methods of performance appraisal
(10 marks)
Answer
Modern methods of performance appraisal
1. Assessment centre method: This method was used for the first
time in 1930 by the German army and then in 1960s by the British
army. This method tests a candidate in different social situations
using a number of assessor and procedures. The performance of an
employee an also his potential for a new job is evaluated in this
method by assessing his performance on job related simulations.
Characteristics that the concerned managers feel are important for
the success of a particular job are included in these simulations.
Techniques like business games role playing and in basket exercises
are used in this method. The employees are evaluated individually as
well as collectively on job related characteristics. Personal interview
and projective tests help in assessing the motivation, career
orientation and dependence on others of an employee. To measure
the intellectual capacity written tests are used. The evaluators in this
method consist of experienced manager working at different levels
who prepare a summary report for the management as well as for
the employees. This technique usually measures the planning ability
interpersonal skills and organizational skills of an employee.
2. Human Resource Accounting Method: Human resources are a
valuable asset for any organization and it can be valued in monetary
terms. This method evaluates the performance of an employee in
terms of costs and contributions. HR costs include expenses incurred
on HR planning recruitment selection induction and training. The
difference between this costs and the contribution by an employee
reflects the performance of that employee. This method is still
developing hence is not very popular at present.
3. Behaviorally anchored rating scale (BARS): This method
combines the graphic rating scale and the critical incident method. It
determines in advance the critical areas of the performance and the
most effective behavior to achieve the results. Then the actual job
behavior of an employee is evaluated against the predetermined
behavior.
The
following
steps
are
used
for
constructing
BARS.
1. Supervisor and other persons well acquainted with a job are asked
to described specific critical incidence of effective performance
behavior
2. Then these persons categorized the incidents into sets of
performance
dimensions
and
each
set
is
then
defined.
cluster
as
was
done
by
the
earlier
group.
dimensions.
The
360
degree
appraisal: The
360
degree
method
of
him.
Structured
questionnaires
are
used
to
collect
appraisal: It
allows
an
employee
complete
freedom
in
by
superiors: An
appraisal
by
superiors
involves
employee. Selecting the right peers is very important and peers from
the departments that are directly related with the department of the
employee should also be included. It mainly focuses on feedback
about the style of functioning of the employee under review and can
also include his ability to work as team leader besides his cooperation and collaboration.
Potential appraisal: It is different from performance appraisal as it
refers to the abilities of the employees that are not being used at the
time of appraisal. It searches for the latent abilities of the employee
in discharging higher responsibilities in future. The potential of the
employees is judged on the basis of his present performance,
personality traits, past experience and age and qualification. It also
looks at the unused skills and knowledge of an employee. It aims at
informing the employee their future prospectus and helps the
organization in drawing your suitable successions plan. It also
requires updating the training efforts regularly and advised the
employees on things which they can do to improve their career
prospectus.
Question 9
What are the factors affecting wages and salaries
(10 marks)
Answer
The following factors should be taken into consideration in determining wage and
salary structure of workers:
(i) Labour Unions:
The labour unions attempt to work and influence the wages primarily by regulating or
affecting the supply of labour. The unions exert their influence for a higher wage and
allowances through collective bargaining with the representatives of the management.
If they fail in their attempt to raise the wage and other allowances through collective
bargaining, they resort to strike and other methods where by the supply of labour is restricted.
This exerts a kind of influence on the employees to concerned test partially the demands of
the labour unions.
(ii) Personal perception of wage:
Whether the wage is adequate and equitable depends not only upon the amount that is paid
but also upon the perceptions and the views of the recipients of the wage. Even though the
wage is above the going wage rate in the community if it is lower than that of fellow worker
deemed inferior, it will be regarded as inequitable in the eyes of the recipients of the wage. A
mans perception of the equity of his wage will undoubtedly affect his behaviour in joining
and continuing in the organisation.
(iii) Cost of living:
Another important factor affecting the wage is the cost of living adjustments of wages. This
approach tends to vary money wage depending upon the variations in the cost of living index
following rise or fall in the general price level and consumer price index. It is an essential
ingredient of long term labour contracts unless provision is made to reopen the wage clause
periodically.
There are measurement problems both in ascertaining productivity and cost of living
increases. This problem may lead to lack of understanding and unanimity on the part of the
management and the workers.
(iv) Government legislation:
The laws passed and the labour policies formed by the Government have an important
influence on wages and salaries paid by the employees. Wages and salaries cant be fixed
below the level prescribed by the government. The laws on minimum wages, hours of work,
equal pay for equal work, payment of dearness and other allowances, payment of bonus, etc.
have been enacted and enforced to bring about a measure of fairness in compensating the
working class.
(v) Ability to pay:
Labour unions have often demanded an increase in wages on the basis that the firm is
prosperous and able to pay. However, the fundamental determinants of the wage rate for the
individual firm emanate for supply and demand. If the firm is marginal and cannot afford to
pay competitive rates, its employees will generally leave it for better paying jobs. However,
this adjustment is neither immediate nor perfect because of problems of labour immobility
and lack of perfect knowledge of alternatives. If the firm is highly successful, there is little
need to pay for more than the competitive rates to obtain personnel.
(vi) Supply and demand:
As stated earlier, the wage is a price for the services rendered by a worker or employee. The
firm desires these services, and it must pay a price that will bring forth the supply, which is
controlled by the individual worker or by a group of workers acting together through their
unions. The practical result of the operation of this law of supply and demand is the creation
of going- wage rate.
It is not practicable to draw demand and supply curves for each job in an organisation even
though, theoretically, a separate curve exists for each job. But, in general, if anything works
to decrease the supply of labour such as restriction by a particular labour union, there will be
a tendency to increase the wage. The reverse of each situation is likely to result in a decrease
in employee wage, provided other factors, such is those discussed below, do not intervene.
(vii) Productivity:
Increasingly there is a trend towards gearing wage increases to productivity increases.
Productivity is the key factor in the operations of a company. High wages and low costs
are possible only when productivity increases appreciably. The above factors exercise a
kind of general influence on wage rates. In addition, there are several factors which do
affect the individual difference in wage rates.
The most important factors which affect the individual differences in wage rates are:
(a) Workers capacity and age;
(b) Educational qualifications;
(c) Worker experience;
(d) Hazards involved in work;
The organizations ability to pay -Wage increases should be given by those organizations
which can afford them. Companies that have good sales and therefore high profits tend to pay
higher wages than those which are running at a loss or earning low profits because of the high
cost of production or low sales.
Supply and demand of labour -If the demand and certain skills are high and the supply is
low the result is rise in the price to be paid for these skills. The other alternative is to pay
higher wages if the labour supply is scarce and lower wages when it is excessive.
The cost of living -When the cost of living increases, workers and trade unions demand
adjusted wages to offset the erosion of real wages. However when living costs are stable or
decline the management does not resort with this argument as a reason for wage reduction.
The living wage -Employers feel that the level of living prescribed in workers budget is
opened to argument since it is based on subjective opinion.
Job requirements -Jobs are graded according to the relative skill responsibility and job
conditions required.
Trade unions bargaining power -Trade unions do affect the rate of wages. Generally the
stronger and more powerful trade union, higher the wages.
Question 10
Explain the disciplinary procedure
dismissing a women for misconduct.
(10 marks)
to
be
followed
before
Answer
times these kinds of cases are being taken to the court or arbitrators and
firms have to face loss. Therefore, this topic must be handles with extra
care and precaution. Unfair dismissal means the employee is sack against
the rules and regulation.
Sometimes managers think that they can fire any of their staff whenever
they want. This is however not a correct assumption to be made. Before
sacking someone from the job there should be events leading to that
situation. There are various reason why an organisation might consider for
a dismissal of an employee, which includes lower performance, tardiness,
misconduct etc.
Defining the situations and terms will again be a challenging task because
of the various interpretations that can associated to the situation. When
dismissing a women for misconduct it is very important to understand the
scale and intensity of the inappropriate behaviour. Some types of
misconduct and indiscipline requires immediate dismissal of the employee
provided that the same has been stated in the employment contract.
In general misconduct include manners like contemptuous disrespect to
company rules and boss, blatant show of refusal to follow orders from
supervisors etc. If such behaviour is observed from an employee it might
lead to dismissal of the employee if the same if not corrected. But there
are certain procedure to be followed. If a women is misbehaved for the
first time, based on the nature of the behaviour she should be advised by
her supervisor verbally. If the nature of the behaviour requires written
advice to be given then it should be done according to the employment
contract. When advice is given for the first time it is import to mention the
proceeding step to be followed if such a behaviour is repeated again. For
example if verbal advice is given first time, if the misconduct is repeated
then as a second action written advice can be given. As a third action
written warning can be given for the dismissal and if repeated fourth time
she can be dismissed.
The above mentioned procedure can be followed in dismissing the
employee for misconduct.
END