Human Resource Management

Section A
Important Topics
1. Define HRM
2. Scope HRM
3. Manpower planning
4. Maslow theory of motivation
5. obj of emp training
6. Managing conflicts
7. off the job training methods
8. Elements of promotion policy
9. Grievance handling
10. Features of discipline
11. Functions, objectives and qualities of HRM
12. Transfer, obj and types
13. Strategies of stress management
14. Effective performance appraisal
15. Rights of trade unions
16. Techniques to increase motivation
17. Role of hrm
18. Effective collective bargaining
19. Methods of performance appraisal
20. HR information system
21. determinates of morale
22. Distinguish between training and development
23. Types of transfer
1. Importance of Human Resource Management? 
Organisation Significance:
1. Good human resource practice can help in attracting and
retaining the best people in the organisation.
2. Developing the necessary skills and right attitudes among the
employees through training, development, performance
appraisal, etc.
3. Securing willing cooperation of employees through motivation,
participation, grievance handling, etc.
4. Effective utilisation of available human resources.
5. Ensuring that enterprise will have in future a team of
competent and dedicated employees.
Social Significance:
Social significance of HRM lies in the need satisfaction of
personnel in the organisation. Since these personnel are drawn
from the society, their effectiveness contributes to the welfare of
the society. Society, as a whole, is the major beneficiary of good
human resource practice.
i. Employment opportunities multiply.
ii. Eliminating waste of human resources through conservation of
physical and mental health.
iii. Scare talents are put to best use. Companies that pay and
treat people well always race ahead of others and deliver
excellent results.
Professional Significance:
Professional significance of HRM lies in developing people and
providing healthy environment for effective utilisation of their
capabilities.
This can be done by:
1. Developing people on continuous basis to meet challenge of
their job.
2. Promoting team-work and team-spirit among employees.
3. Offering excellent growth opportunities to people who have the
potential to rise.
4. Providing environment and incentives for developing and
utilising creativity.

2. Sources of Recruitment:?
INTERNAL SOURCES.
1. Transfers.
Transfer means shifting from one position to another one without
any promotion and changes in prestige.
2. Promotions.
Internal promotion is shifting of employees to a higher position
within an organization with the increase of prestige.
P.S. Promotion doesn’t contribute to the increase of the employee
number.
3. Present employees.
You can contact with potential candidates through present
employees as they are most likely to know about vacant positions
in an organization. They may recommend their relatives or close
friends. These people, as a rule, may be relevant for a position.
EXTERNAL SOURCES.
1. Advertisement.
It is a rather wide-spread method of recruitment, however it is
appropriate mostly for skilled workers. The advertisement attracts
applicants in large number of highly variable quality.
2. Employment exchanges.
Employment exchanges in India are run by the Government. For
unskilled, semi-skilled, skilled, clerical posts etc., it is often used
as a source of recruitment. In certain cases it has been made
obligatory for the business concerns to notify their vacancies to
the employment exchange.
3. Educational institutions.
Direct recruitment from colleges and universities for certain job
positions which requires a specific qualification has become a
wide-spread practice.
4. Recommendation of existing employees.
The present employees know both the company and the
candidate being recommended. Hence some companies
encourage their existing employees to assist them in getting
applications from persons who are known to them.
5. Factory gates.
Certain workers present themselves at the factory gate every day
for employment. This method of recruitment is very popular in
India for unskilled or semi-skilled labour. The desirable candidates
are selected by the first line supervisors. The major disadvantage
of this system is that the person selected may not be suitable for
the vacancy.
6. Casual callers.
Those personnel who casually come to the company for
employment may also be considered for the vacant post. It is
most economical method of recruitment. In the advanced
countries, this method of recruitment is very popular.
7. Central application file (Data Banks)
A file of past applicants who were not selected earlier may be
maintained. In order to keep the file alive, applications in the files
must be checked at periodical intervals.
8. Labour unions.
In certain occupations like construction, hotels, maritime industry
etc., (i.e., industries where there is instability of employment) all
recruits usually come from unions. It is advantageous from the
management point of view because it saves expenses of
recruitment. However, in other industries, unions may be asked to
recommend candidates either as a goodwill gesture or as a
courtesy towards the union.
9. Labour contractors.
This method of recruitment is still prevalent in India for hiring
unskilled and semi-skilled workers in brick industry. The
contractors keep themselves in touch with the labour and bring
the workers at the places where they are required. They get
commission for the number of persons supplied by them.
10. Former employees.
In case employees have been laid off or have left the factory at
their own, they may be taken back if they are interested in joining
the concern (provided if their record is good).

3. Hrm Issues: 
Recruitment is conducted under time pressure and requires high
performance.
Human capital (Knowing one’s job) and social capital (Knowing
each other) become inextricably linked.
The formation of some stability in social relationship is not very
much required.
Work place is variable.
Idleness is shown in terms of learning by watching what others
do. Master-apprentice relationship and craft-based learning
techniques become important.
Job status and project feedback is very short. Hence virtual
organization requires a heavy investment to create systems and
staffing structures.

4. Training needs importance? 

Training presents a prime opportunity to expand the knowledge
base of all employees, but many employers find the development
opportunities expensive. Employees also miss out on work time
while attending training sessions, which may delay the
completion of projects. Despite the potential drawbacks, training
and development provides both the company as a whole and the
individual employees with benefits that make the cost and time a
worthwhile investment.
Training needs 
Time Management
Stress Management
Leadership & Self Improvement
Team Building
Managerial Effectiveness
Conflict Management
Change Management
Soft Skills & Personality Development
Effective Negotiation Skills
Body Language
Emotional Excellence
Work Life Balance
Motivation
Leadership & Team Bonding through Outdoor
Business Ethics & Professionalism

5. Steps involved in career development? 

Career planning involves five important stages. They are −
Assessing self and identifying areas of strength and aptitude.
Finding career opportunities that suit your strengths.
Setting goals in personal and professional life.
Planning the actions of how to attain goals.
Periodic evaluation of performance.
Let us now discuss the above-mentioned stages in detail.
Assessing Self
Assessing oneself is the act of reviewing one’s priorities, personal
interests, strengths and weaknesses, along with appropriate skill
sets. These reviews help the employee to get a realistic idea of
his chances at career growth in the organization. Assessing will
also give him a transparent picture of the skill sets required for
specific job descriptions and promotions.
Finding Career Opportunities
After the self-assessment is done, the next step is to get a reality
check on what skills the person has and how they can serve him.
In this step, the candidate is supposed outline all the steps that
he needs to follow to reach a specific career. This involves taking
stock of technical knowledge and whether it is sufficient to
guarantee a job opportunity.
Setting Goals in Personal and Professional Life
In this phase, the candidate checks a range of career
opportunities available to him and determines which of his
skillsets and knowledge levels will be needed in the job of his
choice. In this step, the candidate does research and information-
gathering from multiple sources like friends, colleagues, co-
workers, etc. and tries to find the best way that works for him.
Goal Setting
The third step in the process of career planning is that of goal
setting, where a person undergoes a period of self-assessment
and investigates his career opportunities to decide his long-term
prospects in an organization. It is important for the candidate to
keep checking all his options for a viable future.
Action Planning
Action planning involves the steps required to achieve goals such
as additional training or getting a specific set of managerial skills
either for his current position or for the one that he is aspiring to
get. This step usually involves a lot of communication with the
senior employees working in different roles in the organization. As
these seniors are the individuals who can share information with
the rest of the people and inform them about the various
dynamics in the working spheres.
Periodic Evaluation of Performance
The final step is evaluation of the progress made in inching
towards the career goals. Evaluating one’s success helps people
keep a track of their progress and identify strengths and
weaknesses in a career plan.

6. Wage structure in Indian industries?

Basic Pay
The concept of basic Pay is contained in the report of the Fair
Wages Committee. According to this Committee, the floor of the
basic pay is the “minimum wage” which provides “not merely for
the bare sustenance of life but for the preservation of the
efficiency of the workers by providing some measure of
education, medical requirements and amenities.” The basic Pay
has been the most stable and fixed as compared to dearness
allowance and annual bonus which usually change with
movements in the cost of living indices and the performance of
the industry.
Dearness Allowance 
Dearness allowance is a cost of living adjustment allowance paid
to the government employees and pensioners. It is one of the
components of salary, and is counted as a fixed percentage of the
person's basic salary. It is adjusted according to the inflationary
trends to lessen the impact of inflation on government
employees.
House Rent Allowance 
House rent allowance (HRA) is paid by an employer to the
employee to meet expenditure actually incurred on payment of
rent in respect of residential accommodation occupied by the
employee.
Overtime Payment
Working overtime in industry is possibly as old as the industrial
revolution. The necessity of the managements’ seeking overtime
working from employees becomes inevitable mainly to overcome
inappropriate allocation of manpower and improper scheduling,
absenteeism, unforeseen situations created due to genuine
difficulties like breakdown of machines. In many companies,
overtime is necessary to meet urgent delivery dates, sudden
upswings in production schedules, or to give management a
degree of flexibility in matching labour capacity to production
demands. The payment of overtime allowance to the factory and
workshop employees is guaranteed by law.
Annual Bonus
The bonus component of the industrial compensation system,
though a quite old one, had assumed a statutory status only with
the enactment of the Payment of Bonus Act, 1965. The Act is
applicable to factories and other establishments employing 20 or
more employees. 
Fringe Benefits
The remuneration that the employees receive for their
contribution cannot be measured by the mere estimation of
wages and salaries paid to them. Certain supplementary benefits
and services known as “fringe benefits” are also available to
them.

7. Motivation to employees? 
Monetary or Financial Incentives:
The reward or incentive which can be calculated in terms of
money is known as monetary incentive. These incentives are
offered to employees who have more physiological, social and
security need active in them. The common monetary incentives
are:
1. Pay and Allowances:
Regular increments in salary every year and grant of allowance
act as good motivators. In some organisations pay hikes and
allowances are directly linked with the performance of the
employee. To get increment and allowance employees perform to
their best ability.
2. Profit Sharing:
The organisations offer share in the profit to the employees as a
common incentive for encouraging the employees for working
efficiently. Under profit sharing schemes generally the companies
fix a percentage of profit and if the profit exceeds that percentage
then the surplus profit is distributed among the employees. It
encourages the employees to work efficiently to increase the
profit of the company so that they can get share in the profit.
3. Co-Partnership/Stock Option:
Sharing the profit does not give ownership right to the employees.
Many companies offer share in management or participation in
management along with share in profit to its employees as an
incentive to get efficient working from the employees. The co-
partnership is offered by issue of shares on exceeding a fixed
target.
4. Bonus:
Bonus is a onetime extra reward offered to the employees for
sharing high performance. Generally when the employees reach
their target or exceed the target then they are paid extra amount
called bonus. Bonus is also given in the form of free trips to
foreign countries, paid vacations or gold etc. Some companies
have the scheme of offering bonus during the festival time
(Diwali, Christmas bonus, New Year, etc.)
5. Commission:
Commission is the common incentive offered to employees
working under sales department. Generally the sales persons get
the basic salary and along with this, commission on every sales
order. The income of the sales persons is directly linked with the
efforts put in by them. More orders mean more commission.
6. Suggestion System:
Under suggestion system the employees are given reward if the
organisation gains with the suggestion offered by the employee.
For example, if an employee suggests a cost saving technique of
production and organisation is able to reduce the cost by that
technique, then extra payment is given to employee for giving
that suggestion.
The amount of reward or payment given to the employee under
suggestion system depends on the gain or benefit which
organisation gets with that suggestion. It is a very good incentive
to keep the initiative level of employees high.
7. Productivity Linked with wage Incentives:
There are certain wages rate plans. Which offer higher wages for
more productivity, for example under differential piece wages
system efficient workers are paid higher wages as compared to
inefficient workers? To get higher wages workers perform
efficiently.
8. Retirement Benefits:
Some organisations offer retirement benefits such as pension,
provident fund, gratuity etc. to motivate people. These incentives
are suitable for employees who have security and safety need.
9. Perks/Fringe Benefits/Perquisites:
It refers to special benefits such as medical facility, free education
for children, housing facility etc. These benefits are over and
above salary. These extra benefits are related with the
performance of the employees.
Non-Monetary/Non-Financial Incentives:
Money is not the only motivator, the employees who have more of
esteem and self-actualisation need active in them get satisfied
with the non-monetary incentives only.
1. Status:
Status refers to rank, authority, responsibility, recognition and
prestige related to job. By offering higher status or rank in the
organisation managers can motivate employees having esteemed
and self-actualisation need active in them.
2. Organisational Climate:
It refers to relations between superior/subordinates. These are the
characteristics which describe an organisation. These
characteristics have direct influence over the behaviour of a
member. A positive approach adopted by manager creates better
organisational climate whereas negative approach may spoil the
climate. Employees are always motivated in the healthy
organisational climate.
3. Career Advancement:
Managers must provide promotional opportunities to employees.
Whenever there are promotional opportunities employees
improve their skill and efficiency with the hope that they will be
promoted to high level. Promotion is a very big stimulator or
motivator which induces people to perform to their best level.
4. Job Enrichment/Assignment of Challenging Job:
Employees get bored by performing routine job. They enjoy doing
jobs which offer them variety and opportunity to show their skill.
By offering challenging jobs, autonomy to perform job, interesting
jobs, employees get satisfied and they are motivated. Interesting,
enriched and challenging job itself is a very good motivator or
stimulator.
5. Employees Recognition:
Recognition means giving special regard or respect which
satisfies the ego of the subordinates. Ego-satisfaction is a very
good motivator. Whenever the good efforts or the positive
attitudes are shown by the subordinates then it must be
recognised by the superior in public or in presence of other
employees. Whenever if there is any negative attitude or mistake
is done by subordinate then it should be discussed in private by
calling the employee in cabin.
Examples of employee’s recognition are congratulating employee
for good performance, displaying the achievement of employee,
giving certificate of achievement, distributing moments, gifts etc.
6. Job Security:
Job security means life time bonding between employees and
organisation. Job security means giving permanent or
confirmation letter. Job security ensures safety and security need
but it may have negative impact. Once the employees get job
secured they lose interest in job. For example government
employees do not perform efficiently as they have no fear of
losing job. Job security must be given with some terms and
conditions.
7. Employee’s participation:
It means involving employee in decision making especially when
decisions are related to workers. Employees follow the decision
more sincerely when these are taken in consultation with them for
example if target production is fixed by consulting employee then
he will try to achieve the target more sincerely.
8. Autonomy/Employee Empowerment:
It means giving more freedom to subordinates. This
empowerment develops confidence in employees. They use
positive skill to prove that they are performing to the best when
freedom is given to them.

8. Effective collective bargaining? 

9. Functions of HR information system? 

Storing
Some of the applications which could be computerized and the
nature and type of information that can be recorded and stored
are described below.
Personnel Administration
It will contain information about each employee, such as name,
address, date of birth, date of joining the organization, and
information about next of kin and family. The facility should allow
the user to maintain a number of address records such as
permanent home address, local postal address, and the address
of next of kin.
Salary Particulars
Salary review procedures are an important function of the human
resources department. Details of present salary, last increase and
the proposed increase will all be compiled and stored.
Leave / Absence Recording
An important requirement of HRIS is providing comprehensive
and accurate method of controlling leave and absences. A
complete leave history for each employee, days of absence and
delay in reporting are all stored. Eligibility of leave, medical,
maternity leave under credit, leave encashment, and eligibility
are also stored.
Skill Inventory
HRIS is used to record acquired skills and monitor a skill database
at both employee and organizational level. This will give the
necessary information to identify employees with necessary skills
for certain positions or job function.
Medical History
The HRIS may be used to record occupational health data needed
for industrial safety purposes, accident monitoring, exposure to
potentially hazardous materials, and so on. For example, hearing
loss, nervous debility in certain work areas may be monitored and
results recorded on HRIS. The records of periodical medical
examinations may also be maintained.
Accident Monitoring
The system should record the details of the accidents for the
injured employees. This could highlight accident prone areas or
accident prone times within the organization.
Performance Appraisal
The system should record individual employee’s performance
appraisal data such as the due date of the appraisal, scores for
each performance criteria, potential for promotion, and other
information to form a comprehensive overview of each employee.
Training and Development
The system should record the details of training imparted,
training evaluation development opportunities given and availed.
The type of training needed may be identified and stored.
HRP
The HRP plan, extensions, plan executed, to be executed strength
and weaknesses of the plan, plan evaluation etc, may be
recorded.
Recruitment
Recruitment pool, screening, preliminary selection etc, may be
stored for HRIS.
Career Planning
Placement, training, selected candidates for career planning and
supervisor’s view can be stored.
Collective Bargaining
Wage, salary administration, bonus, negotiations, trade Unions
views, most welcome and least resistant measures may also be
recorded.
10. Delegation Principles of delegation? 
Delegation means conferring, entrusting or allocating a particular
assignment to a person based on realistic assessment of the
latter’s abilities and motivation. It is not merely passing off any
job, but to let someone take over the control of what a manager
continues to be responsible for.
1. Principle of Functional Definition:
The related or similar activities should be grouped together
according to enterprise function. When the definition of a position
is clear then delegation of authority becomes simple. In the words
of Koontz and O’Donnell “the more a position or a department has
clear definitions or results expected, activities to be undertaken,
organization authority delegated and authority and informational
relationships with other positions understood, the more
adequately the individuals responsible can contribute toward
accomplishing enterprise objectives.”
2. Principle of Unity of Command:
The basic management principle is that of unity of command. This
principle states that a subordinate should report only to single
superior. This will give a sense of personal responsibility. Although
it is possible for a subordinate to receive orders from more
superiors and report to them but it creates more problems and
difficulties. An obligation is essentially personal and authority
delegation by more than one person to an individual is likely to
result in conflicts in both authority and responsibility.
3. Principle of Delegation by Results Expected:
The delegation of authority should be based on the basis of
results expected. The authority should be sufficient to achieve the
desired results. If the authority is insufficient then results will not
be achieved. So there should be a balance between the results
expected and the authority required.
4. Principle of Absoluteness of Responsibility:
The responsibility of a subordinate, once he has accepted the
work, is absolute to his superior. The responsibility of the superior
does not decrease once he has delegated authority. A person can
delegate authority and not responsibility. He will remain
accountable for the work even if it is delegated to the
subordinate. So the responsibility of superior and subordinate
remains absolute.
5. Principle of Parity of Authority and Responsibility:
Since authority is the right to carry out assignments and
responsibility is the obligation to accomplish it, there should be a
balance between the both. The responsibility should bear logical
relationship with authority delegated. The subordinate should not
be burdened with high performance responsibility with delegating
enough authority. Sometimes the authority is delegated but the
concerned person is not made accountable for its proper use. This
will be a case of poor management. The parity between authority
and responsibility will be essential for achieving efficiency.
6. Authority Level Principle:
The principle that decision-making should remain at the level at
which authority is delegated. The managers delegate authority to
subordinates but have the temptation to make decisions for them.
They should allow the subordinates to take their own decisions as
per the authority delegated to them. The delegation of authority
will be effective only when it is clear and understandable to
subordinates.
7. The Scalar Principle:
The scalar principle refers to the chain of direct authority
relationships from superior to subordinates throughout the
organization. The ultimate authority must rest somewhere.
Subordinates must know to whom they should refer the matter if
it is beyond their authority. The clearer the line of authority from
top manager to every subordinate the more effective will be
responsible decision-making.
11. Factors of morale? 282
1. The Organization:
The first factor affecting the employee morale is the organization
itself. The organization influences the worker’s attitudes to their
jobs. The public reputation of an organization may build up for
better or worse, their attitudes towards it.
2. The Nature of Work:
The nature of the work, the worker is expected to perform also
affects his attitude towards the job as well as his morale. If the
employee is expected to perform routine or specialized jobs, he
will feel bored and alienated. Repetition of the same task again
and again makes the working situation worse for the employees.
Another factor is the large impersonal organizational structure.
3. The Level of Satisfaction:
The level of satisfaction, a worker derives from his job is another
determinant of morale. If the job factors and the satisfaction they
bring is perceived to be favourable by the employee morale will
tend to be higher than if there factors seem to be unfavourable.
The job factors include the factors such as opportunities for
promotions, job security, steadiness of employment, opportunities
to learn the job and to use his own ideas, pay working conditions,
recognition, cooperativeness of co-workers, group relationship
etc.
4. The Level of Supervision:
The level of supervision received by an employer has a
tremendous influence on his morale. High rate of employee
turnover indicates that the leadership is ineffective. On the other
hand, if employees are given freedom to do the job, their morale
will be high. Nobody likes to be supervised all the time.
5. Concept of Self:
What is the employee’s concept of himself? The answer to this
question influences the attitudes of the employees to the
organizational inurnment. How an employee perceives himself, is
a very important question. The morale of persons who have lots
of self-confidence or who enjoy good mental and physical health
is generally high as compared to those who lack self-confidence
or suffer from poor physical or mental health.
6. Worker’s Perception of Rewards System:
The worker’s perception of past rewards and future opportunities
for rewards affect their morale to a substantial extent. If the
workers regard the rewards as fair and satisfactory, their morale
will tend to by higher than if the perception is in the opposite
direction. Moreover, if the rewards and opportunities for the
future tend to be bleak, morale will tend to be low as compared to
the situation where the worker perceives opportunities for
satisfaction and for attainment in the rewards that lie ahead in
the future.
6. The Employee’s Age:
Studies have reported that age and morale are directly related.
Other things being equal, elder employees seem to have higher
morale. This is because of the reason that perhaps younger
workers are more dissatisfied with higher expectations than their
elders. The older employees have more stability which comes
with maturity, a serious attitude towards job. more reliability, less
absenteeism, proven steady work habits, a sense of responsibility
and loyalty and less tendency to be distracted by outside interest
as influences.
7. The Employee’s Educational Level:
Studies have concluded an inverse relationship in the educational
level of the employee and his morale. Higher the educational
level lower will be the job satisfaction and vice versa. The higher
he thinks he should be the more dissatisfied he will be.
8. The Employee’s Occupational Level:
The occupational level of the employee also influences his level of
morale. The higher up in organisational hierarchy an employee is
higher will be his morale. The morale of the people who are lower
in the levels of hierarchy is generally low because they compare
their own attainments with those of others.
10. The Off the Job Activities of the Employee:
The relationship of an employer with his family and work group
influences his behaviour and attitude while he is on the job. His
off the job activities e.g. whether his family life is happy or not,
whether he has excessive drinking habits etc. The influences and
pressures of a formal and informal group have a significant effect
on the morale of workers.
Indices of Low morale:
1. Changes in attitude
If you have unhappy employees on your team, it will show. Look
for red flags — increased negativity, high or increased rates of
absenteeism, or reduced cooperation or commitment. Checking in
with workers on a regular basis will help you gauge employee
morale and address budding problems.
2. An active grapevine
When communication is scarce, gossip, misinformation and
conflict flourish. Even if you have bad news to share or don’t have
all the answers, honesty is still the best policy. The more team
members can rely on accurate information, the less grist they’ll
have for the rumor mill. Good communication will help turn the
negative into positive.
3. Lack of initiative
Unmotivated employees go through the motions rather than
taking an active seat at the table. Foster an ownership
environment in which people have the expectations that they
should take the initiative, demonstrate leadership and solve
problems in creative ways. Not only will that improve employee
morale at your company, but it will help your workforce thrive in
any kind of economy.
4. Scarce rewards
Step up efforts to offer employee recognition with praise, low-cost
awards and spot bonuses for accomplishments. Make rewards
personal, and give them as soon as possible after an achievement
to raise workplace morale and lower employee turnover.
5. Poor performance
Low morale can quickly affect a team’s quality of work. Signs of
trouble include missed deadlines, an increase in mistakes or a
decline in service levels. Ask your team members if they feel
burdened by the amount of work they have to do. Take full
responsibility for providing the support they need and creating a
positive work environment.

12. Outsourcing services? 282

Whatever your company’s human resources requirements, there’s
an HR outsourcing firm out there to meet those needs. Some HR
outsourcing firms are generalists, offering a wide variety of
services, while others are specialists, focusing on specific areas
such as payroll or recruiting. Depending on the size of your
business and how much control you want to maintain over HR
functions, you can either outsource all your HR tasks or contract
for services a la carte.
The basic services offered by HR outsourcing firms may include:
Overseeing organizational structure and staffing requirements
Recruiting, training, and development
Tracking department objectives, goals, and strategies
Employee and manager training
Benefits administration
Employee orientation programs

13. imp of labour productivity? 

Labour productivity is important at least for four reasons.

First, it drives economic growth – a highly productive economy

means that we are able to
produce more goods or services with the same amount of
resource, or
Produce the same level of goods and services with less resources.
Second, labour productivity affects everyone.
For businesses, increased productivity brings higher profit and
opportunity for more investment.
For workers, increased productivity can translate to higher wages
and better working conditions. And in the longer term, increased
productivity is key to job creation.
For the government, increased productivity results in higher tax
revenues.
Third, the current state of labour productivity is important.

During the past two decades, labour productivity in Viet Nam

grew by about 4.5 per cent per year on average, which was the
highest rate among the ASEAN countries. As a result, Viet Nam
narrowed down its relative gaps with more advanced ASEAN
economies. But challenges remain.
Among ASEAN countries, Viet Nam’s labour productivity level is
still near the bottom.
Assuming that recent productivity growth rates are maintained,
Viet Nam will reach the Philippines only by 2038, Thailand by
2069 and take far more time to catch up with many other
countries.
Fourth, ageing population and economic integration also need to
be taken into consideration.

Viet Nam is ageing rapidly. In 2045, Viet Nam will face the same
population ageing problems as Japan does today. Vigorously
boosting productivity is the only way for Viet Nam to become
prosperous before its population becomes ageing.
Deepening economic integration, including the establishment of
ASEAN economic community, is bringing additional challenges as
well as opportunities.

13. factors affecting recruitment policy of company? 

Recruitment is the generating of applications or applicants for
specific positions to be filled up in the organisation. In other
words, it is a process of searching for and obtaining applicants for
jobs so that the right people in right number can be selected. Go
through the following definitions of recruitment. These will help
you understand the meaning of recruitment in a better manner.
Factors Affecting Recruitment Policy
Need of the organization.
Organizational objectives
Preferred sources of recruitment.
Government policies on reservations.
Personnel policies of the organization and its competitors.
Recruitment costs and financial implications.

14. Functional areas of a personnel management? 267

Manpower Planning
Recruitment
Selection
Training and Development

15. Why do organisations prefer inter recruitment

resources? 267
Organizations prefer this source to external source to some
extent for the following reasons:
(a) Internal recruitment can be used as a technique of motivation.
(b) Morale of the employees can be improved.
(c) Suitability of the internal candidates can be judged better than
the external candidates as known devils are better than unknown
angels
(d) Loyalty, commitment, a sense of belongingness, and security
of the present employees can be enhanced.
(e) Employees psychological needs can be met by providing an
opportunity for advancement.
(f) Employees economic needs for promotion, higher income can
be satisfied.
(g) Cost of selection can be minimized.
(h) Cost of training, induction, orientation, period of adaptability
to the organization can be reduced.
(i) Trade unions can be satisfied.
(j) Social responsibility towards employees may be discharged.
(k) Stability of employment can be ensured.

16. What are the bases on which training programs are

evaluated?
Level 1 - Content Evaluation through Trainees’ Reactions
Level 2 - Learning Evaluation through examination
Level 3 - Evaluation of Behavioural outcomes through training
Level 4 – Attainment of Training and Development Objectives
Level 5 - Evaluation of Return on investments (ROI) on training
           
17. Benefits of quality of work life? 
Significance of Good Work-life Quality:
1. Decrease absenteeism and increase turnover,
2. Less number of accidents,
3. Improved labour relations,
4. Employee personification,
5. Positive employee attitudes toward their work and the
company,
6. Increased productivity and intrinsic motivation,
7. Enhanced organizational effectiveness and competitive
advantage, and 
8. Employees gain a high sense of control over their work.

18. Techniques of reducing stress? 

Stress management programs are systematic efforts by
organizations designed to help employees reduce harmful stress.
These programs include extensive in-house as well as external
training concentrating on techniques of busting stress like
transcendental and other forms of meditation, deep breathing,
and self-relaxation, physical exercises, developing positive
attitudes, anger management, time management and lifestyle
modification. Some organizations rely on help from their
comprehensive Employee Assistance Programs (EAP) and
counsellors in meeting various psychosocial problems of their
employees like drug and alcohol abuse, sickness and disability,
indebtedness and family breakdowns.

19. Purpose of worker’s participation in management? 

@It bridges the gap between the management and the workers
by authorizing the workers to take part in managerial functions.
@Workers feel valued and therefore are more committed to their
work.
@They feel they have the ability o influence organizational
decisions and this makes them more responsible in performing
their duties.
@Since they are involved in the process of decision-making, nay
change in the organization can be implement without resistance
from them.
@Participation also ensures that each party (workers and
management) understands the problem and constraints of the
other. This helps in reducing industrial conflict.
@Participation enables equal distribution of power in industry so
that it tends to be shared among all those engaged in
organizational work.
@Participation facilitates effective communication between the
workers and the management.
@The increased use of technology in industry has necessitated
the growing co-operation of workers because of the complex
operations of production.

20. The role of trade union is inevitable in personnel

management. Explain? 
Trade Union as an Organisation:
Most of the workers are members of any one of the trade unions.
There are many reasons of membership and some of which are
given below:
(a) Security of employment and protection against calamity of
accident, death and secure social security cover after retirement.
(b) Meeting companionship and affiliation need and improve one’s
influence with management.
(c) To get a common platform—to air one’s views, aims ideas and
feelings and obtain recognition and status among fellow workers.
(d) Make use of the “principle of unity” for the purpose of
securing good working conditions, high economic compensations,
better career prospects and welfare needs.
(e) Restrict management actions which are against the interest of
workers.
21. Hrm objectives? 
1. Effective Utilization of Resources
2. Organizational Structure
3. Development of Human Resources
4. Respect for Human Beings
5. Employee Satisfaction
7. Employee Discipline and Moral
8. Helping the organization reach its goals

22.  Difference between

Basis of Personnel Human Resource

Difference Management Management
Meaning It is traditional It is modern approach
approach of of managing people
managing people at workplace and is
at workplace and concern of managers
is concern of of all level (from top
personnel to bottom).
department.
Nature It is a routine It is a strategic
function. function.
Focus Efficient Human values and
management is individual needs are
given priority. given priority.
Function Personnel Acquisition,
administration, development,
labour relation utilization and
and employee maintenance of
welfare are major human resource are
functions of major functions of
personnel human resource
management. management.
Objective It manages It determines human
people in resource needs and
accordance with formulate policies by
organization’s matching individual’s
goal. needs with
organization’s needs.
Perspective It regards people It regards people as
as basic input to strategic and
make desired valuable resource to
output. make desired output.
Job design Jobs are designed Jobs are designed on
on the basis of the basis of
division of labour. teamwork.
Interest Organization’s Interest of
 interest is valued organization and
the most. interest of employee
is harmonized.
Orientation It is discipline, It is development
direction and oriented. It provides
control oriented. space for employee
involvement,
performance and
growth.
Communication Communication is Communication is
limited, or even open.
restricted.
Emphasis It emphasizes on It emphasizes on
adherence of combination of
rules and human energies and
regulations and competencies.
their
implementation.
Benefits Disciplined Committed human
employees resource
Increased Readiness to change
production Increased production
Increased profit
Quality of work life
Result Organizational      Organizational
goal is achieved goal is achieved and
and employers both employers and
are satisfied. employees are
satisfied.

23. Important of outsourcing?

COST ADVANTAGES
INCREASED EFFICIENCY
FOCUS ON CORE AREAS
SAVE ON INFRASTRUCTURE AND TECHNOLOGY
ACCESS TO SKILLED RESOURCES
TIME ZONE ADVANTAGE
FASTER AND BETTER SERVICES
1. Swiftness and Expertise: Most of the times tasks are
outsourced to vendors who specialize in their field. The
outsourced vendors also have specific equipment and technical
expertise, most of the times better than the ones at the
outsourcing organization. Effectively the tasks can be completed
faster and with better quality output
2. Concentrating on core process rather than the supporting
ones: Outsourcing the supporting processes gives the
organization more time to strengthen their core business process
3. Risk-sharing: one of the most crucial factors determining the
outcome of a campaign is risk-analysis. Outsourcing certain
components of your business process helps the organization to
shift certain responsibilities to the outsourced vendor. Since the
outsourced vendor is a specialist, they plan your risk-mitigating
factors better
4. Reduced Operational and Recruitment costs: Outsourcing
eludes the need to hire individuals in-house; hence recruitment
and operational costs can be minimized to a great extent. This is
one of the prime advantages of offshore outsourcing
24. How to introduce hr information system?
Human Resource Information System (HRIS) is a systematic way
of storing data and information for each individual employee to
aid planning, decision making, and for submitting of returns and
reports to the external agencies.
i. Storing information and data for each individual employee for
future reference.
ii. Providing a basis for planning, organizing, decision making,
controlling and a host of other human resource functions.
iii. Meeting daily transactional requirements such as marking
present, absent or granting leave.
iv. Supplying data and submitting returns to government and
other statutory agencies.
`
25. Methods of on and off the job trainings?
1. On-the-job Training (OJT) Methods:
This is the most common method of training in which a trainee is
placed on a specific job and taught the skills and knowledge
necessary to perform it.
On-the-job training methods are as follows:
1. Job rotation:
This training method involves movement of trainee from one job
to another gain knowledge and experience from different job
assignments. This method helps the trainee understand the
problems of other employees.
2. Coaching:
Under this method, the trainee is placed under a particular
supervisor who functions as a coach in training and provides
feedback to the trainee. Sometimes the trainee may not get an
opportunity to express his ideas.
3. Job instructions:
Also known as step-by-step training in which the trainer explains
the way of doing the jobs to the trainee and in case of mistakes,
corrects the trainee.
4. Committee assignments:
A group of trainees are asked to solve a given organizational
problem by discussing the problem. This helps to improve team
work.
5. Internship training:
Under this method, instructions through theoretical and practical
aspects are provided to the trainees. Usually, students from the
engineering and commerce colleges receive this type of training
for a small stipend.

2. Off-the-job Methods:
On the job training methods have their own limitations, and in
order to have the overall development of employee’s off-the-job
training can also be imparted. The methods of training which are
adopted for the development of employees away from the field of
the job are known as off-the-job methods.
The following are some of the off-the-job techniques:
1. Case study method:
Usually case study deals with any problem confronted by a
business which can be solved by an employee. The trainee is
given an opportunity to analyse the case and come out with all
possible solutions. This method can enhance analytic and critical
thinking of an employee.
2. Incident method:
Incidents are prepared on the basis of actual situations which
happened in different organizations and each employee in the
training group is asked to make decisions as if it is a real-life
situation. Later on, the entire group discusses the incident and
takes decisions related to the incident on the basis of individual
and group decisions.
3. Role play:
In this case also a problem situation is simulated asking the
employee to assume the role of a particular person in the
situation. The participant interacts with other participants
assuming different roles. The whole play will be recorded and
trainee gets an opportunity to examine their own performance.
4. In-basket method:
The employees are given information about an imaginary
company, its activities and products, HR employed and all data
related to the firm. The trainee (employee under training) has to
make notes, delegate tasks and prepare schedules within a
specified time. This can develop situational judgments and quick
decision making skills of employees.
5. Business games:
According to this method the trainees are divided into groups and
each group has to discuss about various activities and functions
of an imaginary organization. They will discuss and decide about
various subjects like production, promotion, pricing etc. This gives
result in co-operative decision making process.
6. Grid training:
It is a continuous and phased programme lasting for six years. It
includes phases of planning development, implementation and
evaluation. The grid takes into consideration parameters like
concern for people and concern for people.
7. Lectures:
This will be a suitable method when the numbers of trainees are
quite large. Lectures can be very much helpful in explaining the
concepts and principles very clearly, and face to face interaction
is very much possible.
8. Simulation:
Under this method an imaginary situation is created and trainees
are asked to act on it. For e.g., assuming the role of a marketing
manager solving the marketing problems or creating a new
strategy etc.
9. Management education:
At present universities and management institutes gives great
emphasis on management education. For e.g., Mumbai University
has started bachelors and postgraduate degree in Management.
Many management Institutes provide not only degrees but also
hands on experience having collaboration with business concerns.
10. Conferences:
A meeting of several people to discuss any subject is called
conference. Each participant contributes by analysing and
discussing various issues related to the topic. Everyone can
express their own view point.

26. Features of transfer policy?

(1) It should be in writing and be made known to all the
employees of the organisation.

(2) The policy should clearly state the types of transfers and the
circumstances under which transfers will be made.

(3) The policy should also mention the basis for or grounds of
transfers.
(4) The policy should indicate the authority in some officer who
will be responsible for initiating and implementing transfers.

(5) The policy should specify the units or areas over which
transfer would take place i.e., whether transfers can be made
only within a sub-unit or also between departments, divisions and
plants.

(6) The policy should also specify the rate of pay to be given to
the transferee.

(7) The policy should ensure that fact of transfer would be

intimated to the person concerned well in advance.

(8) It should be mentioned whether an employee will retain the

seniority at his credit permanently' or for a temporary period or
lose it altogether.

(9) It should be prescribed in the policy whether the training or

retraining is required on the new job.

(10) The policy should ensure that transfers should not be made
frequently and not for the sake of transfer only.

27. Essentials of effective compensation?

1. It is simple:
Simplicity is the fundamental principle of a sound sales
compensation plan. Salesmen suspect any plan that they do not
understand, totally and this weakens their confidence and lowers
their morale. That is ‘ why, the plan of compensation must be
simple to calculate and easy to understand.
2. It is adequate:
A sound plan generates enough compensation for the salesmen to
maintain a decent standard of living in the line. Salesmen must be
allowed to earn enough to meet their obligations to save for the
future. The factors like cost of living, minimum standard of living,
capacity, age, education, experience etc., are to be taken into
account. A critical analysis of compensation plans a good way-out
in fixing adequate compensation for the employees.
3. It is flexible:
The compensation plan so designed must be capable of being
adapted to varying selling conditions that are subject to change.
The plan should be adjustable to the differing nature of salesmen,
territories, products, compensation present in any sales territory
and the like. A supple plan is one that works well both in bad and
good times.
4. It is fair and equitable:
To win the hearts of salesmen their beating cooperation and
lasting loyalty, the compensation plan should be fair and
equitable to one and all. Discrimination and partial treatment are
the costly mistakes for which the sales management will have to
pay heavily in intangible terms.
The sales-force is quite keen and sensitive to these things of ill-
treatment, discrimination, inequality, partiality and so on. No
equally qualified and experienced persons are paid differently.
5. It is economical:
The purpose of sound compensation plan is to increase the sales
and the profits at least cost. Decreasing cost per unit, lower
expense and higher profit margin on unit and total sales is the
aim, in effect. The earnings of salesmen must be kept in kilt as
such remuneration is one of the expenses. As per the experts
view, such expense should not go beyond 5 to 15 per cent of the
total sales value.
6. It is easy to administer:
Administrative ease implies reduction in the complications, time
consumed in accounting department, paper work involved. To
provide this much desired administrative ease, easy and realistic
compensation plans are to be devised and implemented.
Complicated plans demonstrate mathematical excellence but
have problems of red-tape and error-proneness.
7. It is incentive oriented:
It must keep employees spurred. Monetary and non-monetary
rewards for extra efforts put in are really nice stimuli that propel
the salesmen to new heights of performance. Additional
compensation, over and above normal earning, results in
increased sales and profits. This goes to distinguish between the
efficient and the inefficient salesmen and improves overall
performance well above the normal efforts put in by the sales-
force.
8. It is timely:
Any compensation plan, however adequate, attractive and fair
and equitable, is bound to lose its weight, if the payment is not
made within the expected time.

Section B:
1. STAGES OF SELECTIONS PROCESS?
Preliminary Interview 
This is a very general and basic interview conducted so as to
eliminate the candidates who are completely unfit to work in the
organisation. This leaves the organisation with a pool of
potentially fit employees to fill their vacancies.
Receiving Applications 
Potential employees apply for a job by sending applications to the
organisation. The application gives the interviewers information
about the candidates like their bio-data, work experience, hobbies
and interests.
Screening Applications 
Once the applications are received, they are screened by a
special screening committee who choose candidates from the
applications to call for an interview. Applicants may be selected
on special criteria like qualifications, work experience etc.
Employment Tests  
Before an organisation decides a suitable job for any individual,
they have to gauge their talents and skills. This is done through
various employment tests like intelligence tests, aptitude tests,
proficiency tests, personality tests etc.
Employment Interview
The next step in the selection process is the employee interview.
Employment interviews are done to identify a candidate’s skill set
and ability to work in an organisation in detail. Purpose of an
employment interview is to find out the suitability of the
candidate and to give him an idea about the work profile and
what is expected of the potential employee.
Checking References  
The person who gives the reference of a potential employee is
also a very important source of information. The referee can
provide info about the person’s capabilities, experience in the
previous companies and leadership and managerial skills. The
information provided by the referee is meant to keep confidential
with the HR department.
Medical Examination  
The medical exam is also a very important step in the selection
process. Medical exams help the employers know if any of the
potential candidates are physically and mentally fit to perform
their duties in their jobs. Final Selection and Appointment Letter  
This is the final step in the selection process. After the candidate
has successfully passed all written tests, interviews and medical
examination, the employee is sent or emailed an appointment
letter, confirming his selection to the job. The appointment letter
contains all the details of the job like working hours, salary, leave
allowance etc.
2. Methods of performance appraisal? 
Guide 112
3. Basis of promotion? Elements of good promotion policy?
Promotion may be on two bases: 
• Merit based promotion: when the promotion takes place on the
basis of an employee’s performance in the current job. It is done
on the basis of his skills, knowledge and ability.
• Seniority based promotion: Here the employee who has given
the long service in the organization gets promoted. There is no
scope for favouritism.

1. Policy Statement:
There should be a policy statement from the management
regarding promotion policy. It should clearly state that promotions
will be from within the organisation. Will there be any preference
if competent persons are available within the organisation? Policy
statement will set at rest all types of speculations which may
otherwise disturb the minds of employees.
2. Assessing Performance:
The basis to be followed for promotions should be indicated. How
to assess the performance of employees while considering them
for promotion? Performance appraisal may be one criterion,
confidential reports may be another. The employees should know
in advance the criterion to be followed for assessing their
performance.
3. Promotion Routes:
The promotion routes to be followed for different posts should be
clearly mentioned. Every post has a different route. For example,
an accounts clerk may be promoted as an accountant or accounts
officer and so on. Similarly there are routes for other posts. All
employees in the organisation should be given full information of
the routes of promotions.
4. Employee Training:
Every promotion from within the organisation should have a
provision for training and orientation. This will improve the skill
and knowledge of employees and make them suitable for taking
up higher assignments.
5. Maintaining Service Records:
A promotion policy can be successfully pursued only if records of
employees’ performance are properly maintained. It is very
difficult to decide whether an employee is suitable for promotion
or not if his service record is not properly maintained.
The record of employee’s current performance, his adaptability to
new job situations, level of intelligence, aptitude to learn etc.
should be known to the management from his records so that a
fair judgement can be made at the time of considering him for
promotion.
6. Communication:
The promotion policy should be communicated to the employees.
It will avoid suspicion, confusion and wrong notions in the minds
of employees. If they know the criterion to be followed for
promotions, they can judge themselves against those yardsticks.
The promotion policy for top positions can be precise whereas for
lower positions it should be laid down in as much detail as
possible and should also be clear to everybody.

4. Problems faced by trade unions and suggest the

measures for strengthening trade union movement in
India?
Lack of Balanced Growth: Trade unions are often associated
with big industrial houses. A vast majority of the working
population is without any union backing. The entire agricultural
sector is highly unorganized in India. The agricultural workers are
subject to all kinds of exploitation. The same is true with respect
to those working in small scale and cottage industries. Lack of
balanced growth of trade unions in all sectors is one of the
major weakness of the trade union movement in India.
Low Membership: Trade unions , with the exception of few have
low membership. This is because many employees are not willing
to join unions although they are ready to enjoy the benefits
arising out of the union actions. The reasons for the hesitation of
employees to join unions include, among others, the need to take
pat in strikes and such other programmes, fear of pay cut and
fear of punishment.
Poor financial Position: Low membership is one of the reasons
for the poor financial position of the unions. Moreover, the
subscription payable by every member is kept low. Some
members may not even make a prompt payment of the small
amount of subscription. These are also not very many sources
from which unions can get funds. They may probably depend on
contributions from philanthropists. The poor financial position can
only weaken the trade union movement.
Political Control: Most popular trade unions in India are
affiliated to certain political parties. These political parties are
only keen on making every grievance of the working class a
political issue to attain political gains. As a result the problem only
gets wide publicity and remains unsolved.
Multiplicity of Unions: Often there exists more than one union
within the same industry each backed by a political party. These
various unions have conflicting ideology. If one union comes out
with a strike proposal another union may work against it. As a
result, none of the unions is actually able to solve the problems of
the workers.
Inter-Union Rivalry: The existence of many unions within a
particular industry paves way for what is called inter-union rivalry.
These unions do not work together for the cause of the workers.
Each union may adopt a different approach to the problem. The
inter-union rivalry may become a more serious problem of the
workers. As a result, the employees are unable to derive the
benefits of collective bargaining.
Lack of able Leaders: Another barrier to the growth of trade
unions is the lack of able leaders. Some union leaders give a
strike call even for petty problems that can easily be resolved
through talks. On the other hand, there are leaders who have
secret pact with the management. They get bribes from the
government and work against the interests of the employees.
Some leaders don’t convene a meeting of the general body at all
even when a crisis develops. They take unilateral decisions that
are thrust on the employees.
Lack of Recognition: Most management is not prepared to
recognize trade unions. This happens because of any of the
following reason.
The existence of low membership that reduces the bargaining
power of the union.
The existence of more unions within the same industry.
Inter-union rivalry.
The indifferent attitude of the employees themselves towards
trade unions.
Opposition from Employers: Apart from the fact that most
employers are not prepared to recognize trade unions, they also
do not let their employees from a union. This the employers are
able to achieve by adopting certain punitive measures like
intimidating employees victimizing union leaders, initiating
disciplinary action against employees indulging in union activities
and so on. Some employers also start rival unions with the
support of certain employees. Sometimes, they may go to the
extent of bribing union leaders to avert a strike or such similar
show of protest by employees. The employers fail to understand
that the union enables the employees to express their grievances
in a democratic manner and can also be used as a means of
promoting better labour management relationships.
Indifferent Attitude of the Members: Union leaders alone
cannot be blamed for the weakness of the trade union movement.
The indifferent attitude of the members of certain unions is also a
barrier. Some members do not even make a prompt payment of
the subscription amount. The treasurer of the union has to go
behind them, remind and persuade them to pay the subscription
that is often a very small amount. There are on the other hand,
members who do not attend the general body meetings nor do
they bother to know what is discussed in such meetings. There
are still others who do not take part at all in any of the
programmes of the union organized to press the demands of the
employees like slogan shouting procession, demonstration,
hunger strike etc. Members generally expect the office-bearers to
do all that is necessary to achieve the demands.
Suggestions:
1. Maintaining Unity:
Past experiences indicate that multiplicity of unions; political
rivalries, disunity among the ranks of workers, etc. have been in
India. Unity in the movement is, therefore, a necessity because
“Unity is the strength”.
Unity in trade unions can be stricken and maintained in different
ways:
(i) All wooers should join hands to form a single union to represent
all their demands.
(ii) All unions with different political affiliations should have one
policy, one programme, one objective and one method for the
labour movement.
2. Free from Political influence:
At present, trade union leadership is in the hands of politicians
who have more concern for their political ideologies than for the
interest of working class. This has weakened the labour
movement. Therefore, one way to strengthen the trade union
movement is the provision of leaders from the ranks of the
workers themselves.
3. Workers Education:
So far trade unions have confined their attention to its members’
demands only. It is now high time for trade unions to assume the
responsibility workers a sense of discipline and responsibility to
perform their jobs satisfactorily. The workers need to be made
understand fully first their duties and responsibilities and then
their rights and privileges. Or say, the workers need to be taught
“first deserve, then desire”.
4. Adequacy of Funds:
Particularly, small-sized firms suffer from their weak financial
position. On account of poor financial resources, the workers
movements/strikes did not prolong and ended in failure
Therefore, the maintenance of strike funds by the union is a
necessity. This strike fund would be used to help workers during
strikes – as “strike pay”. This will not only strengthen the
bargaining position of the unions, but they will also get the loyalty
of the workers.
5. Welfare Activities for Workers:
Along with efforts to improve the financial status, the trade unions
may effectively start activities such as the provision of day
schools for children, crèches at work place, and night schools for
adults, reading rooms, libraries, co-operative stores, gymnasium,
etc.

7. Impact of stress on performance and satisfaction?

Poor Time Management The positive side of stress is that it can
jump-start your adrenalin and motivate you to perform your tasks
more quickly in response to impending deadlines. An
overwhelming workload, lack of peer support and too many
demands at once, however, contribute to a sense of frustration
and panic that there isn't enough time to complete the work.
According to the authors of "Performance Under Pressure:
Managing Stress in the Workplace," if these conditions routinely
result in overtime or having to take work home, the stress of
being unable to manage time efficiently can fuel employees'
resentment toward the company as well as negatively influence
their commitment and loyalty.
Strained Interactions and Relationships
Stress is a major contributor to job burn-out and strained
interactions with peers and supervisors, says Bob Losvyk, author
of "Get a Grip!: Overcoming Stress and Thriving in the
Workplace." The combined feelings of helplessness and
hopelessness generate heightened sensitivities to any and all
forms of criticism, defensiveness, and depression, paranoia about
job security, jealousy and resentment toward co-workers who
seem to have everything under control, short-fuse tempers,
diminished self-esteem and withdrawal.
Lack of Focus
Stress affects your ability to remember things you already know,
to process new information you are learning and to apply both to
analytical situations and physical tasks that require concentration.
When you are mentally exhausted from all of the worries,
anxieties and tension brought on by a stressful environment or
lifestyle, you are more easily distracted and prone to make costly,
harmful or even fatal mistakes on the job.
Effect on Health
In addition to headaches, sleep disorders, vision problems, weight
loss/gain and blood pressure, stress affects cardiovascular,
gastrointestinal and musculoskeletal systems, says Richard
Weinstein, author of "The Stress Effect." If you're not feeling well,
you're not going to do your best work. Further, the amount of sick
leave taken to rest and recuperate from stress-related illnesses
often means that the work only accumulates during your absence
and, thus, generates even more stress about how to catch up
once you return.

8. Four stages of career development discussed in the new

model?
Stage 1 – Self Assessment
The first step in your career planning should be a self-assessment.
Below you will find a short summary of questions that should help
you to find the perfect career for you. Take some time to write
down the answers on a piece of paper before you move on to the
next stage.
Answers to the following questions will help you identify careers,
and later contribute to your overall job satisfaction.
a. Interests: What are your likes and dislikes?
b. Preferred Skills: What skills have you developed in your life
and which ones would you like to use in a job?
c. Work values: What will contribute to your personal job
satisfaction?
d. Physical aspects: Do you have any physical aspects to
consider when contemplating careers?
e. Preferred Working Conditions: What type of work
environment would you prefer?
f. Personal profile: Make a summary of what is important to you
in order to evaluate different occupations.
Stage 2 – Explore your options
Now that you have analysed your interest, skills and values, you
can move on and start doing your research.  This includes finding
out about possible jobs in your field of interest and researching
descriptions of possible positions that would be suitable for you.
a. Explore occupations: Use information in the library and
online to get background information.
b. Research Market: Conduct interviews with people in
occupations similar to your personal profile to get a sense of what
a job is really like. You can get a sense of whether you will “fit”
with the job.
Stage 3 – Decision Making
After researching the market it is time to have another look at the
personal profile you assembled in stage 1. Find out which career
areas you are most interested in and start choosing your goals. 
a. Evaluate: Decide which career areas match your personal
profile.
b. Choose goals: Set your career goals and identify the steps
required to achieve these goals.
Stage 4 – Take action
Now it is time to start taking action. Below you find 6 steps for
finding your career job. 
Identify possible occupations.
Access your “network.”
Develop effective resumes and cover letters.
Practice effective job interview skills.
Contact potential employers.
Follow up on all job leads. 
Identify your skills
Employers also look for a number of skills other than your
academic qualifications. There are 4 types of skills that are
important when you apply for a job: interpersonal skills, personal
qualities & skills, specialised skills and core skills.
The following will help you in identifying the skills that you
currently have and those you need to acquire and develop.
a. Interpersonal skills:
Being good with people
Ability for team work
b. Personal qualities & skills:
Confidence
Initiative
Leadership skills
Adaptability to change
Sensitivity to the culture of customers and colleagues
c. Specialized skills:
Creativity
Critical thinking ability
Logic
Technical and scientific competence
d. Core skills:
Communication skills
Planning ability
Problem-solving ability
Effective time management
Computer/ IT skills

9. Functions of HRM? 258

Guide 98
10. Types of psychological test?
(a) Individual and group tasks
(b) Instrumental or paper and pencil tests
(c)Achievement or intelligence tests
(d) Aptitude or professional ability
(i) Mental tests –
(ii) Mechanical aptitude tests –
(iii) Psychomotor or skill tests –
(e) Personality tests
(i) Objective test 
(ii) Projective test –
(iii) Situation tests – 
(f) Interest tests 
(g) Speed and power tests 
(h) Essay and objective tests 
(i) Language and non – language tests 
(j) Computer aided tests

11. Types of transfer:

12. features of hr policy?
1. Related to Objectives: Policies must be capable of
relating objectives functions, physical factors and
company personnel.
2. Easy to Understand: Policies should be stated in define,
positive, clear and understandable language.
3. Precise: Policies should be sufficiently comprehensive
and prescribe limits and yardsticks for future action.
4. Stable as well as Flexible: Personnel policies should be
stable enough assure people that there will not be drastic
overnight changes. They should be flexible enough to
keep the organization in tune with the times.
5. Based on Facts: Personnel policies should be built on
the basis of facts and sound judgment and not in personal
feelings or opportunistic decision.
6. Appropriate Number: There should be as many
personnel policies as necessary to cover conditions that
can be anticipated, but not so many policies as to become
confusing or meaningless.
7. Just, Fair and Equitable: Personnel policies should be
just, fair and equitable to internal as well as external
groups. For example, a policy of recruitment from within
may limit opportunities to bright candidates from outside:
and a policy of recruitment from outside only would limit
promotional avenue to promising internal candidates. To
ensure justice, it is necessary to pursue both the policies
scrupulously and apply them carefully.
8. Reasonable: Personnel policies must be reasonable and
capable of being accomplished. To gain acceptance and
commitment from employees, the policy should be
conditioned by the suggestions and reactions of those
who are affected by the policy.
9. Review: Periodic review of personnel policies is
essential to keep in tune with changing times, and to
avoid organizational complacency or managerial
stagnation.

13. Determinants of reward and types of reward?

(a) Performance. Performance is the output. To reward people
in the organization, therefore, requires some agreed-upon
criterion for defining performance. A difficult issue with
performance is differentiating between quantity and quality. For
example, an individual may generate a high output but his
performance standards might be quite low. Hence, where controls
are not instituted to protect against such abuses, we often find
quantity replacing quality.
(b) Efforts. The rewarding of effort represents the classical
example of rewarding means rather than the ends. In
organizations, where performance is generally of a low caliber,
rewarding of effort may be the only criterion to differentiate
rewards on the assumption that those who try should be
encouraged. In many cases, effort can count more than actual
performance. The employee, who can show his effort, without
really putting one, will stand to be rewarded more than his
sincere counterparts.
(c) Seniority. Seniority dominates most government
organizations in the world, and while they do not play an
important role in business organization” there are evidences that
length of time on the job is a major factor in determining the
allocation of rewards. The greatest virtue of seniority is that,
relative to other criteria, it is easy to decide an employee's
seniority. So seniority represents an easily quantifiable criterion
which can be substituted for performance.
(d) Skills held. Another practice that is not uncommon in
organizations is to allocate rewards on the basis of skills of the
employee. Regardless of whether the skills are used, those
individuals who possess the highest skills or talents will be
rewarded commensurately. Where such practices are used, it is
not unusual to see individuals become 'credential crazy'. The
requirement that an individual needs a university degree in order
to attain a certain level within the organization is utilizing skills as
a determinant of rewards. When individuals enter an organization,
their skill level is usually a major determinant of the
compensation that they will receive. In a competitive market,
skills become a major element in the reward package.
(e) Job difficulty. The complexity of the job can be a criterion by
which rewards can be distributed. For example, those jobs that
are highly repetitive and can be learnt more quickly, may be
viewed as less deserving in reward than those that are more
complex and sophisticated. Jobs that are difficult to perform, or
are undesirable due to stress or due to unpleasant working
conditions, may have to carry with them rewards that are higher
in order to attract workers to these activities.
(f) Discretionary time. The greater is the discretion called for
on a job, the greater is the impact of mistakes and a need for
good judgment. In a job that has been completely programmed,
that is, here each step has been procedurised and there is no
room for decision making by the incumbent, there is a little
discretionary time.
Types:
1. Classification on the basis of feelings:
i. Intrinsic reward:
The reward linked with the internal satisfaction of an employee
for their best performance perceived from their side is known as
intrinsic reward. This reward is experienced by an employee
himself/herself perceived from the result of their job
performance. 
ii. Extrinsic reward:
Reward received by an employee from an external source is
known as extrinsic reward. Salary, wages, bonus, facilities,
recognition, praise, medal, certificate of appreciation, promotion
etc. provided by an organization for job performances are the
examples of extrinsic reward. 
2. On the basis of Economic value:
i. Financial reward:
If the employees are financially rewarded for their performance, it
is known as financial reward. Financial reward is related to the
enhancement of employee's financial wellbeing.
ii. Non-Financial reward:
Rewards which are not related to financial matter is known as
non-financial reward. Financial reward doesn't always motivate
the employees.
3. On the basis of evaluation:
i. Performance based reward:
Reward which is based on the job performance is known as
performance based reward. Under this provision, high producing
employees will be rewarded highly and low producing employees
will be rewarded at low level. 
Piece rate system:
Additional wages:
Commission:
Bonus:
ii. Membership based reward:
This type of reward is indifferent to the level of performance and
position of employee. In fact, this types of reward is paid for being
a member of organization. This reward is based on the policy,
rules and procedure of the organization.

14. Financial and non-financial incentives:

15. Techniques to increase motivation?
Create a Positive Work Environment

Motivate employees by offering an upbeat, positive work environment.

Encourage teamwork and idea-sharing, and make sure staffers have the
tools and knowledge to perform well. Be available when employees
need you to be a sounding board or a dispute mediator. Eliminate
conflict as it arises, and give employees freedom to work independently
when appropriate.

Set Goals that are Reasonable and Achievable

Help employees become self-motivated by helping establish

professional goals and objectives. Not only does this give employees
something to strive for, but your business benefits when goals are tied
to corporate contributions. Make sure goals are reasonable and
achievable so employees don’t get discouraged. Offer encouragement
when workers hit notable milestones.

Increase Motivation by Providing Incentives

Increase motivation by providing incentives to work toward. You can

create individual incentives for each employee or team incentives to
motivate employees as a group. Financial incentives can include cash
prizes, gift cards or restaurant gift certificates. Nonfinancial incentives
can include extra vacation days, compressed work weeks or choice
office space or parking spots.

Recognize Achievements and Accomplishments

Celebrate employee achievements through employee-of-the-month or

star performer awards. Make a big deal out of accomplishments by
celebrating at staff meetings. Print certificates or engrave plaques,
issue a press release or post a notice on your company website.
Recognize team accomplishments as well as individual efforts.

Share Profits to Improve Performance

Motivate employees with the incentive of a profit-sharing program. In

this way, employees increase earnings while helping the business
income rise. This approach simultaneously promotes collective goal-
setting and teamwork. It also gives employees a sense of pride in
ownership and can improve performance and reduce turnover as well as
raise morale.

Solicit Employee Input

Regularly survey employee satisfaction. You can conduct anonymous

polls or hire an independent party to conduct a formal focus group. This
will help you catch potential morale breakers before they get out of
hand. Soliciting employee input also shows staffers that you care about
the opinions of workers and want to continually improve working
conditions.

Provide Professional Enrichment

Encourage employees to pursue additional education or participate in

industry organizations. Provide tuition reimbursement or send
employees to skills workshops and seminars. If an employee is
motivated to an upward career path, offer mentoring and job
shadowing opportunities. Promote from within whenever possible and
create opportunities to help employees develop from a professional
standpoint.

16. Kinds of aptitude test?

Logical Reasoning
Nonverbal Reasoning
Verbal Reasoning
Spatial Reasoning
Numerical Reasoning

17. How to improve the effectiveness of training?

Knowledge Transfer
One of the best methods to measure the effectiveness of the training program is
to know if trainees are capable to transfer their knowledge to others. The
tendency to teach others is considered as the highest level of mastery of a
subject. When learners transfer their learned knowledge, it put them in a position
to apply their learned concepts in real life practices.
Assessment Before and After Training
This can also be called skill assessment. One way to go about it is
to utilize visual confirmations to ascertain the set of skills of
employees along with their performance, before and after the
training program.
Ranking Employees
Ranking employees or trainees after every training and on the
basis of their mastery level of a given subject is highly important
to measure training effectiveness.

18. Sources of Grievances. Explain Grievance redressal

machinery.
Management Policies
Any change in the organizational policies can result in grievances. For example,
the implementation of revised company policies or new working practices. The
policies and procedures adopted by management give rise to the grievance.
Working Conditions
Working conditions are relative to the work environment of the organization. It
may be undesirable or unsatisfactory conditions of work. For example, light,
space, heat, or poor physical conditions of the workplace, defective tools and
equipment, poor quality of material, unfair rules, and lack of recognition.
Personal Factors
Personal factors are related to the personality traits of individuals. Employees
are unable to adjust with their colleagues, suffer from feelings of neglect and
victimization and become an object of ridicule and humiliation or other inter-
employee disputes.

19. Obj and procedures of Job evaluation

Objectives of job evaluation: The objectives of job evaluation
are to....
1. Provide a standard procedure for determining the relative
worth of each job in a plant.
2. Determine equitable wage differentials between different jobs
in the organisation.
3. Eliminate wage inequalities.
4. Ensure that like wages are paid to all qualified employees for
like work.
5. Form a basis for fixing incentives and different bonus plans.
6. Serve as a useful reference for setting individual grievances
regarding wage rates.
7. Provide information for work organisation, employees’
selection, placement, training and numerous other similar
problems.
8. Provide a benchmark for making career planning for the
employees in the organisation.
Procedure of job evaluation:
Though the common objective of job evaluation is to establish the
relative worth of jobs in a job hierarchy, there is no common
procedure of job evaluation followed by all organisations. As such,
the procedure of job evaluation varies from organisation to
organisation. For example, a job e valuation procedure may
consist of the eight stages as delineated in Figure 14.1.
1. Preliminary Stage:
This is the stage setting for job evaluation programme. In this
stage, the required information’s obtained about present
arrangements, decisions are made on the need for a new
programme or revision of an existing one and a clear cut choice is
made of the type of programme is to be used by the organisation.
2. Planning Stage:
In this stage, the evaluation programme is drawn up and the job
holders to be affected are informed. Due arrangements are made
for setting up joint working parties and the sample of jobs to be
evaluated is selected.
3. Analysis Stage:
This is the stage when required information about the sample of
jobs is collected. This information serves as a basis for the
internal and external evaluation of jobs.
4. Internal Evaluation Stage:
Next to analysis stage is internal evaluation stage. In the internal
evaluation stage, the sample of bench-mark jobs are ranked by
means of the chosen evaluation scheme as drawn up at the
planning stage. Jobs are then graded on the basis of data pending
the collection of market rate data. Relative worth of jobs is
ascertained by comparing grades between the jobs.
5. External Evaluation Stage:
In this stage, information is collected on market rates at that
time.
6. Design Stage:
Having ascertained grades for jobs, salary structure is designed in
this stage.
7. Grading Stage:
This is the stage in which different jobs are slotted into the salary
structure as designed in the preceding stage 6.
8. Developing and Maintaining Stage:
This is the final stage in a job evaluation programme. In this
stage, procedures for maintaining the salary structure are
developed with a view to accommodate inflationary pressures in
the salary levels, grading new jobs into the structure and
regarding the existing jobs in the light of changes in their
responsibilities and market rates.