DMGT 406

Human Resource Management

Long Questions (10 Marks)
Q1. Define HRM and its objectives. Discuss the various functions of HRM.
Ans. Human Resource Management is a management function concerned with hiring,
motivating, and maintaining workforce in an organisation. Human resource management
deals with issues related to employees such as hiring, training, development,
compensation, motivation, communication, and administration. Human resource
management ensures satisfaction of employees and maximum contribution of employees
to the achievement of organisational objectives.
Objectives of HRM
(i) To help the organisation to attain its goals effectively and efficiently by providing
competent and motivated employees.
(ii) To utilize the available human resources effectively.
(iii) To increase to the fullest the employee‘s job satisfaction and self-actualisation.
(iv) To develop and maintain the quality of work life (QWL) which makes employment in
the organisation a desirable personal and social situation.
(v) To help maintain ethical policies and behaviour inside and outside the organisation.
(vi) To establish and maintain cordial relations between employees and management.
(vii) To reconcile individual/group goals with organisational goals.
Functions of Human Resource Management
 Managerial Functions
 Operative Functions, and
 Advisory Function
The Managerial Functions of Human Resource Management are as follows:
(i) Human Resource Planning - In this function of HRM, the number and type of
employees needed to accomplish organisational goals is determined. Research is an
important part of this function, information is collected and analysed to identify current
and future human resource needs and to forecast changing values, attitude, and
behaviour of employees and their impact on organisation.
(ii) Organising - In an organisation tasks are allocated among its members,
relationships are identified, and activities are integrated towards a common objective.
Relationships are established among the employees so that they can collectively contribute
to the attainment of organisation goal.
(iii) Directing - Activating employees at different level and making them contribute
maximum to the organisation is possible through proper direction and motivation. Taping
the maximum potentialities of the employees is possible through motivation and
command.
(iv) Controlling - After planning, organising, and directing, the actual performance of
employees is checked, verified, and compared with the plans. If the actual performance is
found deviated from the plan, control measures are required to be taken.
The Operative Functions of Human Resource Management are as follows:
(i) Recruitment and Selection - Recruitment of candidates is the function preceding
the selection, which brings the pool of prospective candidates for the organisation so that
the management can select the right candidate from this pool.
(ii) Job Analysis and Design - Job analysis is the process of describing the nature of a
job and specifying the human requirements like qualification, skills, and work experience
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 to perform that job. Job design aims at outlining and organising tasks, duties, and
responsibilities into a single unit of work for the achievement of certain objectives.
(iii) Performance Appraisal - Human resource professionals are required to perform
this function to ensure that the performance of employee is at acceptable level.
(iv) Training and Development - This function of human resource management helps
the employees to acquire skills and knowledge to perform their jobs effectively. Training
an development programs are organised for both new and existing employees. Employees
are prepared for higher level responsibilities through training and development.
(v) Wage and Salary Administration - Human resource management determines what
is to be paid for different type of jobs. Human resource management decides employees
compensation which includes - wage administration, salary administration,
incentives, bonuses, fringe benefits, and etc,.
(vi) Employee Welfare - This function refers to various services, benefits, and facilities
that are provided to employees for their well being.
(vii) Maintenance - Human resource is considered as asset for the organisation.
Employee turnover is not considered good for the organisation. Human resource
management always try to keep their best performing employees with the organisation.
(viii) Labour Relations - This function refers to the interaction of human resource
management with employees who are represented by a trade union. Employees comes
together and forms an union to obtain more voice in decisions affecting wage, benefits,
working condition, etc,.
(ix)Personnel Research - Personnel researches are done by human resource
management to gather employees' opinions on wages and salaries, promotions, working
conditions, welfare activities, leadership, etc,. Such researches help in understanding
employees satisfaction, employees turnover, employee termination, etc.
(x) Personnel Record - This function involves recording, maintaining, and retrieving
employee related information like - application forms, employment history, working
hours, earnings, employee absents and presents, employee turnover and other data
related to employees.
The Advisory Functions of Human Resource Management are as follows:
(i) Advised to Top Management: Personnel manager advises the top management in
formulation and evaluation of personnel programs, policies, and procedures
(ii) Advised to Departmental Heads: Personnel manager advises the the heads of
various departments on matters such as manpower planning, job analysis, job design,
recruitment, selection, placement, training, performance appraisal, etc.
Q2. Differentiate between HRM and IHRM. Discuss how IHRM influences HR
practices.
Ans. International Human Resource Management is the process of procuring allocating
and effectively utilizing the human resources in a multinational corporation or at least
three countries. While HR Managers in these organization have to integrate HR policies and
practices across a number of subsidiaries spread in several countries so that the
organization goals can be achieve at the same time they have to make these policies and
practices sufficiently flexible to allow significant differences in these policies in different
countries. International HRM is concerned with identifying and understanding how the
MNC‘s manage their geographically dispersed worked force in order to leverage their HR
resources for obtaining local as well as global competitive advantage. Domestic HRM is the
process of procuring allocating and effectively utilizing the human resources in local
countries. IHRMs work internationally or beyond national borders, whereas its domestic
counterpart works within the set, local, national borders. In this connection, it is also
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 expected that the IHRMs follow not just more rules and regulations but also more stringent
international policies like those related to taxation at the international location of work,
employment protocols, language requirements, and special work permits. For local
HRMs, the rules and regulations to be followed are just regarding local taxation and
ordinary employment-related issues.
IHRMs have a broader perspective because international organizations cater to three
different employee types or categories: HCNs, PCNs and TCNs. HCNs, or host country
nationals, are employees who are still citizens of the nation where the foreign auxiliary
branch of the organization is currently based. PCNs, or parent country nationals, are the
expatriates who work in another nation aside from their original country. Lastly, TCNs, or
third country nationals, are mostly those who are government or military contracted
personnel. The contracted personnel are neither representing the contractor (the
government) nor the host nation. Because IHRMs frequently deal with expatriates, the
IHRM manager should advise the latter to engage in special socio-cultural immersion
sessions and training that will help them adapt to the alien country. This is contrary to the
traditional HRM setting where this type of training is no longer required. The expatriot may
also be given more attention like schooling for his or her children as well as special job
opportunities for the spouse.
There are also more risks involved in IHRM because there are more external factors
involved. The management needs to be ready to face the consequences if the expatriot is
underperforming. Other factors like diplomatic ties between the country of origin and the
host country may also affect the working conditions. The benefits of the PCNs and TCNs
may also be under fire if the currency exchange rates become suddenly unfavorable.
1. An IHRM operates beyond national borders while domestic HRMs operate within the
borders.
2. IHRM have more functions and are subject to more stringent international rules and are
more exposed to a wider array of activities as opposed to domestic HRMs.
3. In an IHRM, there‘s constant change for a broader set of perspectives.
4. In an IHRM, there‘s more attention given to the associate or expatriate employee‘s
personal well- being.
5. There are more risks involved in IHRM than in the Domestic HRM.
6. Domestic HRM is done at national level and IHRM is done at international level.
7. Domestic HRM is concerned with managing employees belonging to one nation and
IHRM is concerned with managing employees belonging to many nations (Home country,
host country and third country employees)
8. Domestic HRM is concerned with managing limited number of HRM activities at national
level and IHRM has concerned with managing additional activities such as expatriate
management.
9. Domestic HRM is less complicated due to less influence from the external environment.
IHRM is very complicated as it is affected heavily by external factors such as cultural
distance and institutional factors.
The influence of IHRM on HR practices is explained as under:
(i) Diversity Recruitment: With the rise of globalization, companies of all sizes are now
interacting with customers and stakeholders from diverse cultures, languages and social
backgrounds. In response, many human resources managers seek to hire employees from
equally diverse backgrounds. Companies engaging in this diversity recruitment recognize
the value of having people on staff that their customers can relate to, and they know that
having a team of diverse people contributes to the range of ideas and influences within the
organization.
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 (ii) Push for Professional Development: A further effect of globalization on HR
management is a push for professional development. Professional development is
concerned with providing employees opportunities to achieve their career-related goals.
Some organizations provide resources for their employees to earn a university degree,
others send their employees to conferences or networking events and training days.
Professional development is important to globalization because it creates a win-win
situation. The employees feel as though the organization is concerned with providing a
range of skills and competencies for their employees. Likewise, the organization benefits
from the added skills and connections that the employees who take advantage of
professional development programs acquire.
(iii) Greater Emphasis on Training: Similar to professional development, a greater
emphasis on training has resulted because of globalization in human resources
management. Training, however, tends to be focused on the needs and professional
competencies of groups of employees within the organization. The company might, for
instance, host language classes to give its call center staff an edge in telephone sales. It
might also teach its employees how to use a new global software platform. This emphasis
on training seeks to give the company a competitive edge in the global marketplace by
honing the employees' diversity emphasis.
(iv)Management of Laws across Jurisdictions: A final effect of globalization on human
resources management is the need for businesses to understand and apply the laws of
many different jurisdictions to the particular business. The federal government sets out a
number of tax and labor laws that businesses operating in the United States must comply
with, but there may also be local and regional laws that apply to companies that operate in
different states or different countries. Selling products in Europe, for example, might mean
that a company has to impose a Value-Added Tax on its goods. Hiring employees at
branch locations in different locations might change the requirements on minimum wage,
tax allowances or working hours. Understanding these laws is vitally essential to the
organization because any breach of them will have a serious impact not only on the
business's financial well-being but also on its reputation.
Q3. Discuss the contemporary issues in HRM. Enlist the reasons for failure of
expatriates.
Ans. Human resources managers face a myriad challenges with today‘s workforce. There
are issues concerning the diverse workforce, legislation affecting the workplace and
technology matters that rise to the top of the list of challenges. Human resources
managers who encounter these challenges use their leadership skills and expertise to
avert issues that might arise from these challenges.
Contemporary Issues Faced by Human Resource Managers Today
(i) Multi-Generational Challenges in Workplace: Four generations are in the work
force. Ranging from septuagenarians to 20-something recent college graduates, a
company may experience the challenges posed by having so many different sets of values,
expectations and work styles in the workplace. The AARP published a white paper titled,
"Leading a Multigenerational Workforce." According to the USA Today article cited within,
"According to a survey by Lee Hecht Harrison, more than 60 percent of employers are
experiencing intergenerational conflict. However, those very differences can also lead to
increased creativity and productivity and ultimately to business success." Each generation
has its attributes to contribute to your workforce. Older workers of the traditionalist
generation are a goldmine. They have years of experience and expertise you can draw
upon for training others as new employees join the company. Workers from the Millenial
(generation of people born between the early 1980s and the early 2000s) generation are
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 among the most highly educated--and, probably the least averse to risk-taking than
previous generations.
(ii) Legislation Affecting Workplace

The Recovery Act of 2009 and the health care reform bill, which passed in March 2010,
promised immediate impact on the workplace. The requirements of the Recovery Act had
an enormous affect on businesses that provide health care insurance to workers who lost
their jobs. The Act mandated an employer-paid 65 percent subsidy for former employees
receiving COBRA, short for Consolidated Omnibus Budget Reconciliation Act, benefits. On
the other hand, the Recovery Act created thousands of jobs and contracting opportunities
for small businesses. The health care reform bill of 2010 lessens the threshold for
procuring insurance coverage. By 2014, no one will be denied health care insurance
because of pre-existing conditions. This may increase premiums for insurance that,
unfortunately, might have to be passed onto employees or become another fiduciary
responsibility assumed by employers. Conversely, small businesses that provide
consulting services to employers may see an increase in revenue due to the surge in
employers needing professional services to help them to comply with legislative changes.
(iii) Technological Advances and Workplace
The workplace setting is changing because of technology. Telecommuting, telework and
remote reporting relationships are becoming the norm rather than an anomaly. Flexible
work schedules and arrangements are ways to improve productivity for some employees;
however, these types of technology-based changes are for all employees. Human
resources managers must ensure there is a mutual agreement between the employer and
employee for options that include telecommuting. Working from home--telecommuting or
telework--requires motivation and discipline. Some employees lack these traits and would
not be productive workers if allowed to work from the comfort of home. The upshot to
technological advances for human resources managers is the type of human resources
information systems available to employers for a variety of purposes. Human resources
departments are able to track applicants and manage the recruitment process more
effectively. In addition, producing data and reports can be accomplished easily because of
technology.
(iv)Job stress: Job stress is the harmful physical and emotional responses that occur
when the requirements of the job do not match the capabilities, resources, or needs of
the worker. Job stress can lead to poor health and even injury. Main causes of stress may
be increased responsibility, lack of control, job satisfaction and performance, uncertainty
about work rules, poor communication, lack of support, poor working conditions etc.
(v) Employee burnout: It means emotional exhaustion and detachment from work.
Employee burnout occurs which occurs when employees are physically, mentally, and
emotionally drained. It is a major concern that threatens the workforce. Main causes of
employee burnout are as follows:
 Low social/family support
 Absence of work life balance
 No time for hobbies
 The employee is pushed for a deadline by the organization to deliver.
(vi) Safety: Safety is the state of being safe i.e. being protected from an event that causes
health or economic economical losses. It includes protection of people or possessions. A
health and safety program is a process for managing the prevention of work-related
injuries and diseases in the workplace. Some ways to improve safety at work place are:
 The employer must create a plan to control workplace hazards. The employer must
identify hazards in the workplace and take steps to eliminate or minimize them.
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  Inspect your workplace. ...
 Provide training employees.
 Talk regularly with the employees.
 Investigation of incidents.
 Maintenance of records.
 Making safety a key part of business.
(vii) Compliance with Laws: Obeying the laws on business management, tax
administration and employment are a top concern for human resources management. The
laws governing small businesses are many, so the human resources manager has to stay
abreast of which ones apply to their particular business and legal changes that affect how
to deal with employees, report income or pay taxes. The Affordable Care Act, for instance,
will change the way small businesses provide health insurance coverage for their
employees. When the act takes full effect, the business will be responsible for complying
with its provisions or it could face fines or employee lawsuits.
(viii) Accessibility: Accessibility can be thought of as having an "open door policy. The
HR office, whether it consists of a team of professionals or just one person, should be
open to hearing employee concerns, quick to provide feedback and neutral when resolving
conflicts. Accessibility can be especially challenging to small businesses when the HR
manager is the owner of the company, as it can be hard to put personal feelings aside and
not take things to heart when an employee complains about how you're operating the
company. Because HR in a small business helps determine strategy for the company's
growth and development, small-business owners should embrace this function as an
integral part of the company's success.
(ix Relationships With Employees: HR managers are sounding boards for employee
concerns. Once seen as a place where employees go when they're in trouble, the HR
department can be a forum for employees to air their concerns with management, the
organization or co-workers without fear of discrimination or retaliation. A major challenge
faced by HR managers in small businesses is maintaining neutral relationships with
employees. HR managers need to hear the concerns of employees and investigate
problems they raise.
Expatriate failure occurs when an expatriate is forced to return to his or her home
organisation before the expected duration of the foreign assignment is completed.
Selecting suitable managers is the logical first steps but that alone does not ensure
success. There are a number of reasons besides poor selection that contribute to
expatriate failure. The major causes of expatriate failure are given below:
(i) Selection based on headquarters criteria rather than assignment needs.
(ii) Inadequate preparation, training, and orientation prior to assignment.
(iii) Alienation or lack of support from headquarters.
(iv Inability to adapt to local culture and working environment.
(v) Problems with spouse and children – poor adaptation, family unhappiness.
(vi Insufficient compensation and financial support.
(vii) Poor programmes for career support and repatriation.
Q4. Explain grievance handling procedure in detail. What are the effects of
grievances and various ways of identification of grievances?
Ans. Grievance may be any genuine or imaginary feeling of dissatisfaction or injustice
which an employee experiences about his job and its nature, about the management
policies and procedures. It must be expressed by the employee and brought to the notice
of the management and the organization. The grievance procedure is the method by
which a grievance is filed and carried through different steps to an ultimate decision.
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 Objectives of the grievance handling procedure are as follows:
1. To enable the employee to air their grievance.
2. To clarify the nature of the grievance.
3. To investigate the reasons for dissatisfaction
4. To obtain, where possible, a speedy resolution to the problem
5. To take appropriate actions and ensure that promises are kept
6. To inform the employee of their right to take the grievance to the next stage of the
procedure, in the event of an unsuccessful resolution
Steps in Grievance Handling Procedure:
(i) Timely Action: The first and foremost requisite in grievance handling is to settle them
immediately as and when they arise. Or say, grievances need to be nipped in the bud.
Sooner the grievance is settled, lesser will be its effects on employees‘ performance. This
requires the first line supervisors be trained in recognizing and handling a grievance
properly and promptly.
(ii) Accepting the Grievance: The supervisor should try to recognize and accept the
employee grievance as and when it is expressed. It must be noted that acceptance does
not necessarily mean agreeing with the grievance, it simply shows the willingness of the
supervisor to look into the complaint objectively and dispassionately to deal with the
grievance. Evidences suggest that more the supervisor shows his or her concern for the
employees, lesser is the number of grievances raised by the employees.
(iii) Identifying the Problem: The grievance expressed by the employee maybe at times
simply emotionally, over-toned, imaginary or vague. The supervisor, therefore, needs to
identify or diagnose the problem stated by the employee.
(iv) Collecting the Facts: Once the problem is identified as a real problem, the
supervisor should, then, collect all the relevant facts and proofs relating to the grievance.
The facts so collected need to be separated from the opinions and feelings to avoid
distortions of the facts. It is useful to maintain the facts for future uses as and when these
are required.
(v) Analysing the cause of the Grievance: Having collected all the facts and figures
relating to the grievance, the next step involved in the grievance procedure is to establish
and analyse the cause that led to grievance. The analysis of the cause will involve studying
various aspects of the grievance such as the employees past history, frequency of the
occurrence, management practices, union practices, etc. Identification of the cause of the
grievance helps the management take corrective measures to settle the grievance and
also to prevent its recurrence.
(vi)Taking Decision: In order to take the best decision to handle the grievance,
alternative courses of actions are worked out. These are, then, evaluated in view of their
consequences on the aggrieved employee, the union and the management. Finally, a
decision is taken which is best suited to the given situation in the organisation. Such
decision should serve as a precedent both within the department and the organisation.
(vii) Implementing the Decision: The decision, whatsoever taken, must be
immediately communicated to the employee and also implemented by the competent
authority. McGregor‘s ―Hot- stove Rule‖ should be strictly followed while implementing the
decision. The decision, thus, implemented should also be reviewed to know whether the
grievance has been satisfactorily resolved or not. In case, it is not resolved, the supervisor
once again needs to go back to the whole procedure step by step to find out an
appropriate decision or solution to resolve the grievance. However, if the grievance is not
resolved at the internal level, the grievance is, then, referred to an arbitrator who is
acceptable to the employee as well as the management. The arbitrator follows a quasi-
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 judicial process where both the parties present evidence. Based on the evidences so
produced, the matter is cross-examined in thread-bare. The arbitrator then thinks, applies
his mind and arrives at a decision. The decision taken by arbitrator is final and binding on
both the parties.
Methods of Identifying Grievances:
(i) Directive observation: Knowledge of human behaviour is requisite quality of every
good manager. From the changed behaviour of employees, he should be able to snuff the
causes of grievances. This he can do without its knowledge to the employee. This method
will give general pattern of grievances. In addition to normal routine, periodic interviews
with the employees, group meetings and collective bargaining are the specific occasions
where direct observation can help in unfolding the grievances.
(ii)Grip boxes: The boxes (like suggestion boxes) are placed at easily accessible spots to
most employees in the organisation. The employees can file anonymous complaints about
their dissatisfaction in these boxes. Due to anonymity, the fear of managerial action is
avoided. Moreover management‘s interest is also limited to the free and fair views of
employees.
(iii) Open door policy: Most democratic by nature, the policy is preached most but
practiced very rarely in Indian organizations. But this method will be more useful in
absence of an effective grievance procedure; otherwise the organisation will do well to
have a grievance procedure. Open door policy demands that the employees, even at the
lowest rank, should have easy access to the chief executive to get his grievances
redressed.
(iv) Exit interview: Higher employee turnover is a problem of every organisation.
Employees leave the organisation either due to dissatisfaction or for better prospects. Exit
interviews may be conducted to know the reasons for leaving the job. Properly conducted
exit interviews can provide significant information about the strengths and weaknesses of
the organisation and can pave way for further improving the management policies for its
labour force.
Effects of grievances are:
(i) Decline in productivity
(ii) Conflicts, disagreements and dissatisfaction.
(iii) Strikes or lock-outs in extreme conditions.
(iv) Poor performance due to lack of interest in work.
(v) Increase in unrest and indiscipline.
(vi) Increase in absenteeism.
(vii) Wastage of resources.
(viii) Increase in production costs.
(ix) Increase in resignation of employees.
Q5.What is the need and importance of industrial relations? Explain the
settlement machinery for resolving disputes in organization.
Ans. Industrial relation is defined as relation of Individual or group of employee and
employer for engaging themselves in a way to maximize the productive activities.
Industrial relations involve attempts at arriving at solutions between the conflicting
objectives and values; between the profit motive and social gain; between discipline and
freedom, between authority and industrial democracy; between bargaining and co -
operation; and between conflicting interests of the individual, the group and the
community.
Need for Industrial Relation
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 Need of Industrial Relation has arisen to defend the interest of workers for adjusting the
reasonable salary or wages. It also helps the workers to seek perfect working condition for
producing maximum output. Workers/employees are concerned with social security
measures through this. Industrial Relations is also needed for achieving the democracy by
allowing worker to take part in management, which helps to protect human rights of
individual. Salaries in India are much more attractive in Indian subcontinent. As India is
having flourishing economy, the job opportunities are emerging and there is huge scope
of expansion. The salary pattern of India is also growing. Even, the seventh pay
commission is also spreading the way to coming soon. The Salaries of private sector is
also in the upswing mode with the increase of 11% annually. Although, Inflation is one of
the major factor which nullify the increase in the salary. But still, the inflation is lower than
the increase in the salary. So, this can be seen as increase in the salary.
Importance of industrial relations:
(i) Foster Industrial Peace: Under the mechanism of IR, both employees and managers
discuss the matter and consult each other before initiating any actions. Doubts, if any, in
the minds of either party are removed. Thus, unilateral actions that prop confusion and
misunderstanding disappear from the scene. In this way, IR helps create a peaceful
environment in the organisation. Peace, in turn, breeds prosperity.
(ii) Promote Industrial Democracy: Industrial democracy means the government
mandated worker participation at various levels of the organisation with regard to
decisions that affect workers. It is mainly the joint consultations, that pave the way for
industrial democracy and cement relationship between workers and management. This
benefits the both. The motivated workers give their best and maximum to the
organisation, on the one hand, and share their share of the fruits of organisational
progress jointly with management, on the other.
(iii) Benefit to Workers: IR benefits workers in several ways. For example, it protects
workers against unethical practices on the part of management to exploit workers by
putting them under inhuman working conditions and niggardly wages. It also provides a
procedure to resolve workers‘ grievances relating to work.
(iv) Benefit to Management: IR protects the rights of managers too. As and when
workers create the problem of indiscipline, IR provides mangers with a system to handle
with employee indiscipline in the organisation.
(v) Improve Productivity: Experiences indicate that good industrial relations serve as the
key for increased productivity in industrial organisations. Eicher Tractors, Alwar represents
one such case. In this plant, productivity went up from 32 per cent to 38 per cent between
1994 and 1997. This increase is attributed to the peaceful IR in the plant.
Settlement machinery for resolving disputes in organization
The settlement machinery consists of the three methods:
(i) Conciliation
(ii) Arbitration
(iii) Adjudication
(i) Conciliation: In simple sense, conciliation means reconciliation of differences
between persons. Conciliation refers to the process by which representatives of workers
and employers are brought together before a third party with a view to persuading them to
arrive at an agreement by mutual discussion between them. The alternative name which is
used for conciliation is mediation. The third party may be one individual or a group of
people. It is characterized by the following features:
 The conciliator or mediator tries to remove the difference between the parties.
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  He/she persuades the parties to think over the matter with a problem-solving
approach, i.e., with a give and take approach.
 He/she only persuades the disputants to reach a solution and never imposes his/her
own viewpoint.
The conciliation machinery in India consists of the following:
 Conciliation Officer
 Board of Conciliation
 Court of Enquiry
(ii) Arbitration: Arbitration is a process in which the conflicting parties agree to refer
their dispute to a neutral third party known as ‗Arbitrator‘. Arbitration differs from
conciliation in the sense that in arbitration the arbitrator gives his judgment on a dispute
while in conciliation, the conciliator disputing parties to reach at a decision. The arbitrator
does not enjoy any judicial powers. The arbitrator listens to the view points of the
conflicting parties and then gives his decision which is binding on all the parties. The
judgment on the dispute is sent to the government. The government publishes the
judgment within 30 days of its submission and the same becomes enforceable after 30
days of its publication. In India, there are two types of arbitration: Voluntary and
Compulsory.
Voluntary Arbitration: In voluntary arbitration both the conflicting parties appoint a neutral
third party as arbitrator. The arbitrator acts only when the dispute is referred to him/her.
With a view to promote voluntary arbitration, the Government of India has constituted a
tripartite National Arbitration Promotion Board in July 1987, consisting of representatives
of employees (trade employers and the Government. However, the voluntary arbitration
could not be successful because the judgments given by it are not binding on the
disputants. Yes, moral binding is exception to it.
Compulsory Arbitration: In compulsory arbitration, the government can force the disputing
parties to go for compulsory arbitration. In other form, both the disputing parties can
request the government to refer their dispute for arbitration. The judgment given by the
arbitrator is binding on the parties of dispute.
(iii) Adjudication:
The ultimate legal remedy for the settlement of an unresolved dispute is its reference to
adjudication by the government. The government can refer the dispute to adjudication
with or without the consent of the disputing parties. When the dispute is referred to
adjudication with the consent of the disputing parties, it is called ‗voluntary adjudication.‘
When the government herself refers the dispute to adjudication without consulting the
concerned parties, it is known as ‗compulsory adjudication. The Industrial Disputes Act,
1947 provides three-tier machinery for the adjudication of industrial disputes:
1. Labour Court
2. Industrial Tribunal
3. National Tribunal
Q6.Define performance appraisal system. Explain methods of performance
appraisal and factors affecting employee remuneration.
Ans. Performance Appraisal is the systematic evaluation of the performance of employees
and to understand the abilities of a person for further growth and development.
Performance appraisal is generally done in systematic ways which are as follows:
(i) The supervisors measure the pay of employees and compare it with targets and
plans.
(ii) The supervisor analyses the factors behind work performances of employees.
(iii) The employers are in position to guide the employees for a better performance.
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 Broadly all methods of appraisals can be divided into two different categories.
(A) Past Oriented Methods (B) Future Oriented Methods
(A) Past Oriented Methods
(i) Rating Scales: Rating scales consists of several numerical scales representing job
related performance criterions such as dependability, initiative, output, attendance,
attitude etc. Each scales ranges from excellent to poor. The total numerical scores are
computed and final conclusions are derived. Advantages – Adaptability, easy to use, low
cost, every type of job can be evaluated, large number of employees covered, no formal
training required. Disadvantages – Rater‘s biases
(ii) Checklist: Under this method, checklist of statements of traits of employee in the
form of Yes or No based questions is prepared. Here the rater only does the reporting or
checking and HR department does the actual evaluation. Advantages – economy, ease of
administration, limited training required, standardization. Disadvantages – Raters biases,
use of improper weighs by HR, does not allow rater to give relative ratings
(iii) Forced Choice Method: The series of statements arranged in the blocks of two or
more are given and the rater indicates which statement is true or false. The rater is forced
to make a choice. HR department does actual assessment. Advantages – Absence of
personal biases because of forced choice. Disadvantages – Statements may be wrongly
framed.
(iv) Forced Distribution Method: here employees are clustered around a high point on
a rating scale. Rater is compelled to distribute the employees on all points on the scale. It
is assumed that the performance is conformed to normal distribution.
(v) Critical Incidents Method: The approach is focused on certain critical behaviors of
employee that makes all the difference in the performance. Supervisors as and when they
occur record such incidents. Advantages – Evaluations are based on actual job behaviors,
ratings are supported by descriptions, feedback is easy, reduces recency biases, chances
of subordinate improvement are high. Disadvantages – Negative incidents can be
prioritized, forgetting incidents, overly close supervision; feedback may be too much and
may appear to be punishment.
(vi)Behaviorally Anchored Rating Scales: statements of effective and ineffective
behaviors determine the points. They are said to be behaviorally anchored. The rater is
supposed to say, which behavior describes the employee performance. Advantages – helps
overcome rating errors. Disadvantages – Suffers from distortions inherent in most rating
techniques.
(vii) Field Review Method: This is an appraisal done by someone outside employees‘
own department usually from corporate or HR department. Advantages – Useful for
managerial level promotions, when comparable information is needed, Disadvantages –
Outsider is generally not familiar with employees work environment, Observation of actual
behaviors not possible.
(viii) Performance Tests & Observations: This is based on the test of knowledge or
skills. The tests may be written or an actual presentation of skills. Tests must be reliable
and validated to be useful. Advantage – Tests may be apt to measure potential more than
actual performance. Disadvantages – Tests may suffer if costs of test development or
administration are high.
(ix) Confidential Records: Mostly used by government departments, however its
application in industry is not ruled out. Here the report is given in the form of Annual
Confidentiality Report (ACR) and may record ratings with respect to following items;
attendance, self expression, team work, leadership, initiative, technical ability, reasoning
ability, originality and resourcefulness etc. The system is highly secretive and confidential.
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 Feedback to the assessee is given only in case of an adverse entry. Disadvantage is that it
is highly subjective and ratings can be manipulated because the evaluations are linked to
HR actions like promotions etc.
(x) Essay Method: In this method the rater writes down the employee description in
detail within a number of broad categories like, overall impression of performance,
promoteability of employee, existing capabilities and qualifications of performing jobs,
strengths and weaknesses and training needs of the employee. Advantage – It is extremely
useful in filing information gaps about the employees that often occur in a better-
structured checklist. Disadvantages – It its highly dependent upon the writing skills of rater
and most of them are not good writers. They may get confused success depends on the
memory power of raters.
(xi) Cost Accounting Method: Here performance is evaluated from the monetary
returns yields to his or her organization. Cost to keep employee, and benefit the
organization derives is ascertained. Hence it is more dependent upon cost and benefit
analysis.
(xii) Comparative Evaluation Method (Ranking & Paired Comparisons): These are
collection of different methods that compare performance with that of other co-workers.
The usual techniques used may be ranking methods and paired comparison method.
 Ranking Methods: Superior ranks his worker based on merit, from best to worst. However
how best and why best are not elaborated in this method. It is easy to administer and
explanation.
 Paired Comparison Methods: In this method each employee is rated with another
employee in the form of pairs. The number of comparisons may be calculated with the
help of a formula as under.
(B) Future Oriented Methods
(i) Management by Objectives: It means management by objectives and the
performance is rated against the achievement of objectives stated by the management.
MBO process goes as under.
 Establish goals and desired outcomes for each subordinate
 Setting performance standards
 Comparison of actual goals with goals attained by the employee
 Establish new goals and new strategies for goals not achieved in previous year.
Advantage – It is more useful for managerial positions.
Disadvantages – Not applicable to all jobs, allocation of merit pay may result in setting
short-term goals rather than important and long-term goals etc.
(ii) Psychological Appraisals: These appraisals are more directed to assess employees‘
potential for future performance rather than the past one. It is done in the form of in-
depth interviews, psychological tests, and discussion with supervisors and review of other
evaluations. It is more focused on employees emotional, intellectual, and motivational and
other personal characteristics affecting his performance. This approach is slow and costly
and may be useful for bright young members who may have considerable potential.
However quality of these appraisals largely depends upon the skills of psychologists who
perform the evaluation.
(iii) Assessment Centers: This technique was first developed in USA and UK in 1943. An
assessment center is a central location where managers may come together to have their
participation in job related exercises evaluated by trained observers. It is more focused on
observation of behaviors across a series of select exercises or work samples. Assessees
are requested to participate in in-basket exercises, work groups, computer simulations,
role playing and other similar activities which require same attributes for successful
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 performance in actual job. The characteristics assessed in assessment center can be
assertiveness, persuasive ability, communicating ability, planning and organizational
ability, self confidence, resistance to stress, energy level, decision making, sensitivity to
feelings, administrative ability, creativity and mental alertness etc. Disadvantages – Costs
of employees traveling and lodging, psychologists, ratings strongly influenced by
assessee‘s inter-personal skills. Solid performers may feel suffocated in simulated
situations. Those who are not selected for this also may get affected.
Advantages – well-conducted assessment center can achieve better forecasts of future
performance and progress than other methods of appraisals. Also reliability, content
validity and predictive ability are said to be high in assessment centers. The tests also
make sure that the wrong people are not hired or promoted. Finally it clearly defines the
criteria for selection and promotion.
(iv)360-Degree Feedback: It is a technique which is systematic collection of
performance data on an individual group, derived from a number of stakeholders like
immediate supervisors, team members, customers, peers and self. In fact anyone who has
useful information on how an employee does a job may be one of the appraisers. This
technique is highly useful in terms of broader perspective, greater self-development and
multi-source feedback is useful. 360-degree appraisals are useful to measure inter-
personal skills, customer satisfaction and team building skills. However on the negative
side, receiving feedback from multiple sources can be intimidating, threatening etc.
Multiple raters may be less adept at providing balanced and objective feedback.
Q7. Define Performance management. Discuss the appropriateness of
performance management system in present time.
Ans. Performance management can be regarded as a systematic process by which the
overall performance of an organization can be improved by improving the performance of
individuals within a team framework. It is a means for promoting superior performance by
communicating expectations, defining roles within a required competence framework and
establishing achievable benchmarks.
The role of HR in the present scenario has undergone a sea change and its focus is on
evolving such functional strategies which enable successful implementation of the major
corporate strategies. In a way, HR and corporate strategies function in alignment. Today,
HR works towards facilitating and improving the performance of the employees by building
a conducive work environment and providing maximum opportunities to the employees
for participating in organizational planning and decision making process.
Today, all the major activities of HR are driven towards development of high performance
leaders and fostering employee motivation. So, it can be interpreted that the role of HR
has evolved from merely an appraiser to a facilitator and an enabler. Performance
management is the current buzzword and is the need in the current times of cut throat
competition and the organizational battle for leadership. Performance management is a
much broader and a complicated function of HR, as it encompasses activities such as joint
goal setting, continuous progress review and frequent communication, feedback and
coaching for improved performance, implementation of employee development
programmes and rewarding achievements. The process of performance management
starts with the joining of a new incumbent in a system and ends when an employee quits
the organization. According to Armstrong and Baron (1998), Performance Management is
both a strategic and an integrated approach to delivering successful results in
organizations by improving the performance and developing the capabilities of teams and
individuals. The term performance management gained its popularity in early 1980‘s
when total quality management programs received utmost importance for achievement
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 of superior standards and quality performance. Tools such as job design, leadership
development, training and reward system received an equal impetus along with the
traditional performance appraisal process in the new comprehensive and a much wider
framework. Performance management is an ongoing communication process which is
carried between the supervisors and the employees throughout the year. The process is
very much cyclical and continuous in nature. A performance management system
includes the following actions:
 Developing clear job descriptions and employee performance plans which includes
the key result areas (KRA') and performance indicators.
 Selection of right set of people by implementing an appropriate selection process.
 Negotiating requirements and performance standards for measuring the outcome
and overall productivity against the predefined benchmarks.
 Providing continuous coaching and feedback during the period of delivery of
performance.
 Identifying the training and development needs by measuring the outcomes
achieved against the set standards and implementing effective development
programs for improvement.
 Holding quarterly performance development discussions and evaluating employee
performance on the basis of performance plans.
 Designing effective compensation and reward systems for recognizing those
employees who excel in their jobs by achieving the set standards in accordance
with the performance plans or rather exceed the performance benchmarks.
 Providing promotional/career development support and guidance to the employees.
 Performing exit interviews for understanding the cause of employee discontentment
and thereafter exit from an organization.
A performance management process sets the platform for rewarding excellence by
aligning individual employee accomplishments with the organization‘s mission and
objectives and making the employee and the organization understand the importance of a
specific job in realizing outcomes. By establishing clear performance expectations which
includes results, actions and behaviors, it helps the employees in understanding what
exactly is expected out of their jobs and setting of standards help in eliminating those jobs
which are of no use any longer. Through regular feedback and coaching, it provides an
advantage of diagnosing the problems at an early stage and taking corrective actions.
Benefits of performance management:
Direct financial gain
 Grow sales
 Reduce costs in the organization
 Stop project overruns
 Aligns the organization directly behind the CEO's goals
 Decreases the time it takes to create strategic or operational changes by communicating
the changes through a new set of goals
Motivated workforce
 Optimizes incentive plans to specific goals for over achievement, not just business as
usual
 Improves employee engagement because everyone understands how they are directly
contributing to the organizations high level goals
 Create transparency in achievement of goals
 High confidence in bonus payment process
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  Professional development programs are better aligned directly to achieving business level
goals
Improved management control
 Flexible, responsive to management needs
 Displays data relationships
 Helps audit / comply with legislative requirement
 Simplifies communication of strategic goals scenario planning
 Provides well documented and communicated process documentation
Q8. What is collective bargaining and discuss its process? Why is it considered the
best way of determining employer-employee relations?
Ans. Collective bargaining is a process of negotiations between employers and a group of
employees aimed at reaching agreements to regulate working conditions. The interests of
the employees are commonly presented by representatives of a trade union to which the
employees belong. The collective agreements reached by these negotiations usually set
out wage scales, working hours, training, health and safety,
overtime, grievance mechanisms, and rights to participate in workplace or company affairs.
Objectives:
1. To maintain cordial relations between employer and employees by settling
disputes/conflicts.
2. To resolve the differences between employers and employees through voluntary
negotiations.
3. To avoid the need for government intervention in matters relating to employment.
4. To ensure the participation of trade unions in industry.
5. To promote industrial democracy.
6. To protect the interest of workers through collective actions.
Process:
1. Identification of the problem: The nature of the problem influences whole process. It is
important for both the parties to be clear about the problem.
2. Collection of data: Both labour and management initially spend considerable time
collecting relevant data relating to grievances, disciplinary actions, transfers, promotions,
lay-offs, overtime, wage rates, working conditions etc.
3. Selection of negotiators: The success of collective bargaining depends on the skills and
knowledge of the negotiators. Negotiators selected should be of requisite qualification.
4. Climate of negotiations; Both parties must decide an appropriate time and set a proper
climate for initial negotiations.
5. Bargaining strategy and tactics: The strategy is the plan and the policies that will be
pursued at the bargaining table. Tactics are the specific action plans taken in the
bargaining sessions.
6. Formalizing the agreement: When a solution comes through, a formal document must
be prepared expressing everything in a simple, clear and concise form.
7. Enforcing the agreement: For the agreement to be meaningful and effective, both parties
must adhere to the conditions agreed upon and implement everything scrupulously.
Advantages of collective bargaining:
(i) Collective bargaining gives workers a larger voice.
When workers are individuals, then it can be difficult to negotiate with an employer. Many
non-union workers are faced with a ―take it or leave it‖ type of offer. If an employee doesn‘t
take it, then the employer will hire someone who does. Collective bargaining allows
workers to band together into larger groups, create a louder voice that can help provide
one another with a mutually beneficial outcome.
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 (ii) Collective bargaining can improve a worker’s quality of life.
Collective bargaining agreements will usually result in a higher level of pay for a worker.
There may also be improvements in the quality and cost of worker benefits. If neither is
improved, then there is still the potential to improve the safety and working conditions
that are found in the workplace. These can all contribute to workers with a valid CBA
enjoying a higher overall quality of life.
(iii) Collective bargaining creates enforcement consistency.
Non-union workers are often hired in an ―at-will‖ status. Unless there is an issue with
discrimination, whistle blowing, or some other legally protected reason, a worker can be
fired at the pleasure of the employer. This means there is no real job security in such an
arrangement. Not only does collective bargaining provide this security, but it also puts
everyone\ on a level playing field. Each worker and the employer is bound by the
negotiated contract.
(iv)Collective bargaining encourages cooperation.
Many jurisdictions require that negotiations on both sides of the aisle be done in good
faith. Both sides are compelled to negotiate with one another for the benefit of both. For
employees, there is the need to earn a fair paycheck and benefits in an environment that
is safe. For employers, there is a need to have consistent productivity and incoming
revenues so the organization can remain in business. This need for balance is what
encourages cooperation.
(v)Collective bargaining creates a binding result.
Both parties are bound to a collective bargaining agreement. It is a legal standard that can
be used as part of a legal defense. If one side or the other is not performing to the
stipulations that have been set forth in the contract, then they can be held responsible to
them by the injured party. This provides an extra level of security for employees and
employers so they can defend their positions.
(vi)Collective bargaining creates relationships.
Many unions bring in members from all over their community to become part of the
bargaining team. Employers will often do the same thing. This creates open lines of
communication between all offices and parties involved, which can create beneficial
community relationships over time. This, in turn, could be used to create political capital,
perform philanthropic work, or benefit communities in a variety of other ways.
(vii) Collective bargaining must represent every member of the unit.
The process of collective bargaining is not exclusionary. Every member of the bargaining
unit must be represented during the negotiation process. That means everyone has an
opportunity to have their desires heard and represented during the contract creation
process. Those ideas might be eventually rejected, but they will still be heard. In some
jurisdictions, even non-union workers have the right to be represented by the collective
bargaining process as the results can impact their employment as well.
(viii)Collective bargaining can be changed.
Maybe there was a bad deal that was struck. The good news is that the contract can be
eventually changed. It is extremely rare for a CBA to not have an end date. This means a
list of wanted changes can be developed over time and then negotiated into a new future
contract. Sometimes there may even be a provision to change a CBA within its operational
time if both parties agree to do so.
Q9.Induction is the guided adjustment of employees to the organization and his
work environment. Explain the difference between socialization and orientation.
Ans. Induction is the process of welcoming and familiarising new volunteers and staff with
the organisation, their job and their workplace. Another name for the induction process is
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 orientation. After completing induction, volunteers should be confident in completing their
tasks, know who their manager or supervisor is and who they can go to for help. They
should be aware of where to find necessary resources and be introduced to organisation's
volunteer policies, including occupational health and safety and dispute and grievance
policies. The induction process can be completed with a group of new volunteers or
individually. Ideally, all volunteers should complete the induction process before
commencing work.
Importance of induction programme: Starting a new job can be nerve racking and
stressful. Self-doubt often creeps into a person's mind. For example, one might question
how it is possible to remember everyone's names, how to get along with the boss and who
can answer 'silly' questions. Volunteering at a new organisation is no different. Volunteers
may be apprehensive about meeting new people, taking on responsibility and fitting in. A
good induction program will make the new volunteer feel welcome and give him or her
confidence in the nature of their role and who they can go to for assistance. Other
advantages of an effective induction process include:
 Improved staff and volunteer morale
 Increased productiveness
 Reduction in new volunteer's anxiety
The induction process can also assist recruitment and training. A volunteer who feels
comfortable in their role is more likely to ask for help and to encourage other people to
join.
What to include in an induction programme: The induction program should suit the
needs of organisation and role of volunteers. Some induction programs will go for half a
day while others will last a week with continuous monitoring and supervision. Above all,
volunteer inductions should be fun and valuable. This is volunteer's first insight into the
organisation and organisation wants it to be positive. Volunteers who enjoy their work are
more likely to be committed to the organisation and encourage their friends to volunteer.
Icebreakers are a great way to welcome new volunteers to an organisation and learn about
their interests and experiences. As well as having fun, volunteers should also learn about
the organisational chart, the organisation's vision and its values and goals, both short and
long term. The organizations must ensure they give the volunteer all of the appropriate
documentation. Examples of what to give volunteers as part of an induction pack include:
 Code of conduct
 Sexual harassment policy
 Role descriptions
 Handbooks
 Previous annual reports
 Contact details
 Organisational chart
 Meeting schedule and calendar of upcoming events
After the induction, the new volunteer should have a strong understanding on what the
organisation does and the role of volunteers and paid employment. The employees should
also be made aware of your organisation's recognition and reward programs and training
opportunities.
Induction checklist: Suggestions for what to include in induction checklist include:
 Demonstrate how to use the equipment, including telephone, fax, email systems (eg.
Outlook, gmail), and advise on internal and external mail processes
 Show the location of toilets, meeting rooms, kitchen/tea rooms
 Explain parking regulations/locations and public transport options
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  Show the location of first aid kits, emergency exits and emergency assembly point
 Explain visitor procedures, how to book meeting rooms, cars and resources
 Introduce new volunteers to colleagues and managers
 If appropriate, assign a work colleague as a mentor for the initial settling in period
Not all of the above ideas will be relevant to the organisation and the role of the volunteer.
It is essential that organisation customise the induction process and only give new
volunteer relevant information. Many people feel overwhelmed when they are given new
information; it's best to give short concise versions of documents.
Other things to include
It is also important to explain:
 Start and finish times.
 Tea and/or lunch breaks.
 Reimbursement policy.
 Uniforms (if applicable).
 Flexible volunteer options.
 Emergency evacuation procedures.
 Employer‘s expectations of workplace behaviour and their policy on harassment.
For long term volunteer assignments, a volunteer manager may also want to discuss with the
new volunteer/volunteers the following:
 Position description
 Performance expectations
 Performance appraisal process
 Training and development opportunities
Q10 Comment on HRD practices in Indian organizations. What benefits and
services are most important for today’s increasingly diverse workforce?
Ans. The HRD aims at helping people to sharpen their capabilities and acquire
competencies. The process of acquisition of capabilities and competencies is facilitated by
HRD mechanisms like performance appraisal, training, OD, feedback and counseling,
potential development, job-enrichment, rewards etc. These HRD subsystems help in
developing a positive HRD climate indicated by openness, confrontation, trust,
authenticity, pro-activity, autonomy and collaboration. It helps in developing competent,
committed and satisfied workforce, an atmosphere of trust and authenticity and teamwork
in the organization which ultimately helps the organization to achieve its goals of higher
productivity and growth; efficiency and effectiveness; and more profit and better image.
Accordingly, an effort has been made to study the HRD sub-systems and HRD climate in
Indian Industries. No program or no policy can be effective unless the top management is
committed to implement it whole-heartedly. The existence of HRD department in an
organization is therefore a pre-requisite for the success of entire HRD system. Keeping all
these factors in mind the chapter is divided in three parts: a) HRD Sub -systems practiced
by Indian Organizations b) HRD Climate in these organizations c) HRD Outcomes
HRD Sub-Systems Practiced by Indian Organizations
The following HRD sub-systems are generally practiced in Indian organizations:
(i) HRD Departments: HRD has been evolved as a separate function in early 90‗s.
Separate HRD department is expected to contribute to the development of HRD processes.
Rao and Abraham (1984) on the basis of his survey of 53 companies found that 30 per
cent of them had maintained a separate HRD department. In other, 38 per cent the HRD
function was operational as a part of the personnel department. It appears that HRD
departments exist in almost all large public and private sector organizations. It also
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 indicates that the top management believes in the development of its human resources as
its assets.
(ii) Performance Appraisal: Performance appraisal is probably one of the oldest yet
most imperfect of managerial activities. It is a formal exercise which is necessary for a ll
important decisions relating to such as placement and promotion, remuneration and
reward. It also helps in long-term manpower planning organization development. A study
conducted by Rao and Abraham (1986) indicates that in the 53 organizations surveyed by
them, about 27 per cent of them have mainly development as the objective of
performance appraisal. While 49 per cent emphasize on development and control of
employee behaviour as objective of Performance Appraisal. It can be concluded that the
Indian organizations are using appraisal systems for various objectives. Many
organizations are revising their appraisal systems to make it more effective.
(iii) Potential Appraisal In India that most organizations use performance appraisal form
to collect data on the potential of the employee. But past performance is not necessarily
an indication of future potential. In fact, the identification of an individual‗s potential is
probably the most difficult aspect of performance assessment. The researchers on the
basis of various studies made in MNCs and other pharmaceutical companies as well as
public sector organizations found that these organizations also do not use Potential
Appraisal as a HRD sub-system in their organizations. Potentials are, however, examined
on the basis of Performance Appraisals, job descriptions and employees‘ disclosures.
(iv)Feedback and Counseling: Counseling helps to strengthen the superior-subordinate
relationships and enables employees to recognize their strengths and weaknesses. In
many organizations the counseling is used to provide feedback in a threatening way or
warn them not to repeat unsatisfactory behavior on their part. Giving feedback, giving
warnings, enforcing norms etc. are part of a manager‗s job but Counseling helps an
employee to recognize their potentials and prepares him for his own development.
(v) Training: Training is the most important sub-system of HRD as it directly contributes
to the development of human resources. Training is, therefore, essential because of the
changes in technology, managerial and behavioural dimensions. Training needs are to be
identified form the other subsystems of HRD such a performance appraisal, performance
analysis and counseling and potential appraisal. A study made by Jain (1996) in BHEL and
NFL also indicated that the two public sector organizations use Training as HRD sub-
system in their organizations but training needs are not always analyzed before selecting
employees for training. It can be stated that the training, although, widely practiced sub-
system of HRD needs to be integrated and implemented properly.
(vi) Rewards: Rewards play an important role in setting up a development oriented
climate because it acts as a motivating force for those who are good performers. Salary is
not enough to produce an adequate impact on enhancement of performance, reduction of
absenteeism and retaining of skilled employees. To attract competent persons from
outside, it is also increasingly felt that reward systems should help attracting the
individuals with requisite the knowledge, ability and talents and retain productive
employees in the organization as precious assets.
(vii) Organization Development: OD is a planned effort, initiated by process specialist(s)
to help an organization develop its diagnostic skills, coping capabilities, linkage strategies
in the form of temporary and semi permanent systems, and a culture of mutuality.
Organization development is a long-range effort to introduce planned change which helps
in increasing organizational effectiveness. In BHEL and NFL, Jain (1996) has explored that
HRD helps in OD through conflict management and by increasing co-operations between
inter-dependent units. On the whole, there is an encouraging upward trend in using OD in
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 Indian organizations. Team development and other OD activities will bring about a change
of culture-healthy and development-oriented, which may nurture development of human
resources.
(viii) Career Planning and Development: Career advancement is the prime motivating
factor for most managers. They want to know where they would be going in the
organization alter three, five, 10 years from their joining. A meaningful career planning
system should be based on potential appraisal. Career planning and development can
become an effective tool for development of the employee and a key factor in the HRD
system.
(ix) Human Resources Information System: In an age of rapid technological changes,
automation and computerization it has become necessary that information on human
resources is stored for various purposes. Many organizations are using job portals,
employee portals, e-recruitment, e-learning, e-training, HR software which are creating
transparency and are building an atmosphere of trust and openness. Policies are now
most clearly available through computer networking. New software is being developed to
store employee data, evaluate the information and utilize them for organization.
Q11. What role does HR play in creating competitive advantage?
Ans. The HRM practices of an organization can be an important source of competitive
advantage. HRM practices can enhance company‘s competitive advantage by creating both
cost leadership and product differentiation. HRM practices can have a dramatic impact on
competitive advantage.
Ways HR Planning Can Enhance a Firm's Competitive Advantage
(i)Employment security: A guarantee of employment stating that no employee will be laid
off for lack of work; provides a signal to the employees of long-term commitment by the
organization to the workforce. This practice generates employee loyalty, commitment,
and a willingness to expend extra effort for the organization‘s benefit.
(ii) Selectivity in recruiting: Carefully selecting the right employees in the right way. On
average, a highly qualified employee produces twice as much as a poorly qualified one.
Moreover, by being selective in its recruitment practices, the organization sends the
message to applicants that they are joining an elite organization that has high
expectations regarding employee performance.
(iii) High wages: Wages that are higher than that required by the market (i.e., higher than
that paid by competitors). High wages tend to attract better-qualified applicants, make
turnover less likely, and send a message that the firm values its employees.
(iv) Incentive pay: Allowing employees who are responsible for enhanced levels of
performance and profitability to share in the benefits. Employees consider such a practice
to be fair and just. If all the gains generated from the employees‘ ingenuity and efforts go
to top management, people will view the situation as unfair, become discouraged, and
abandon their efforts.
(v) Employee ownership: Giving the employees ownership interests in the organization by
providing them with such things as shares of company stock and profit-sharing programs.
Employee ownership, if properly implemented, can align the interests of employees with
those of other shareholders. Such employees will likely take a long-term view of the
organization, its strategy, and its investment policies.
(vi) Information sharing: Providing employees with information about operations,
productivity, and profitability. Information sharing provides an informed basis for
employees to appreciate how their own interests and those of the company are related,
and thus provides them with the information they need in order to do what is required for
success.
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 (vii) Participation and empowerment: Encouraging the decentralization of decision making
and broader worker participation and empowerment in controlling their own work process.
Organizations should move from a system of hierarchical control and coordination of
activity to one in which lower-level employees are permitted to do things to enhance
performance. Research has shown that participation increases both employee satisfaction
and productivity.
(viii) Teams and job redesign: The use of interdisciplinary teams that coordinate and
monitor their own work. Teams exert a powerful influence on individuals by setting norms
regarding appropriate work quantity and quality. Positive results from group influences are
more likely when there are rewards for group efforts, when groups have some autonomy
and control over the work environment, and when groups are taken seriously by the
organization.
(ix) Training and skill development: Providing workers with the skills necessary to do their
jobs. Training not only ensures that employees and managers can perform their jobs
competently, but it also demonstrates the firm‘s commitment to
its employees.
(x) Cross-utilization and cross-training: Train people to perform several different tasks.
Having people do several jobs can make work more interesting and provide management
with greater flexibility in scheduling work. For instance, it can replace an absent worker
with one who has been trained to perform those duties.
(xi) Symbolic egalitarianism: Equality of treatment among employees established by such
actions as eliminating executive dining rooms and reserved parking spaces. The reduction
in the number of social categories tends to diminish the ―us‖ versus ―them‖ thinking and
provides a sense of everyone working toward a common goal.
(xii) Wage compression: Reducing the size of the pay differences among employees. When
tasks are somewhat interdependent and cooperation is needed to accomplish the work,
pay compression can lead to productivity gains by reducing interpersonal competition and
enhancing cooperation.
(xiii) Promotion from within: Filling job vacancies by promoting employees from jobs at a
lower organizational level. Promotion increases training and skill development, offers
employees an incentive for doing well, and can provide a sense of fairness and justice in
the workplace.
(xiv) Long-term perspective: The organization must realize that achieving competitive
advantage through the workforce takes time to accomplish, and thus a long-term
perspective is needed. In the short run, laying off people is probably more profitable than
trying to maintain employment security, and cutting training is a quick way to maintain
short-term profits. But once achieved, competitive advantage brought about by the use of
these HRM practices (i.e., employment security and training) is likely to be substantially
more enduring.
(xv) Measurement of practices: Organizations should measure such things as employee
attitudes, the success of various programs and initiatives, and employee performance
levels. Measurement can guide behavior by indicating ―what counts,‖ and it can provide
the company and its employees with feedback as to how well they are performing relative
to measurement standards.
(xvi) Overarching philosophy: Having an underlying management philosophy that connects
the various individual practices into a coherent whole. The success of the separate
practices listed in items 1 through 15 is somewhat dependent on having a system of
values and beliefs about the basis of success and how to manage people. For instance, the
overarching philosophy at Advanced Micro Devices is ―continuous rapid improvement;
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 empowerment; seamless organizational boundaries; high expectations; and technical
excellence.‖
Q12. What do you mean by “System Approach to HRM”? What are the important
subsystems of HRM?
Ans. A system is a set of interrelated but separate elements or parts working towards a
common goal. A university for example, is made up of students, teachers administrative
and laboratory staff who relate to one another in an orderly manner. What one group does
have serious implications for others? So they are communicating with each other in order
to achieve the overall goal for imparting education. The enterprise operations similarly
must be viewed in terms of interacting and interdependent elements. The enterprises
procure and transform inputs such as physical, financial and human resources into
outputs such as products services and satisfactions offered to people at large. To carry out
its operations each enterprise has certain departments known as subsystems such as
production subsystem, finance subsystems, marketing subsystem, and HR subsystem etc
Each consists of a number of other subsystems. For example the HR subsystem may have
parts such as procurement, training compensation appraisal rewards etc.
Contribution of system Approach:
 Integrative and holistic view of organization.
 Recognizes the interrelation and interaction among sub-systems for synergetic
effects.
 Reconizes the environmental influence.
 Useful for big and complex organizations.
 Feedback facilitates changes in system.
Important subsystems of HRM
(i) Performance Appraisal: Performance appraisal is a process of rating or ensuring the
performance of an employee of his job. Performance appraisal is the assessment of an
individual‘s performance in a systematic way. The performance of an employee is
measured against the factors such as knowledge of job, quality and quantity of output,
initiative, supervision, leadership qualities, cooperation, dependability, health, versatility,
judgment etc. The purpose of appraisal is to assess the present position of efficiency of
employee in order to determine the need for training.
(ii) Potential Appraisal: Potential appraisal provides vital information about individuals to
prepare career plans for them. Potential appraisal evaluates the leadership abilities and
potentials of the individuals. It ensures a good match between employee‘s potentials and
the job. Nowadays organisations are diversifying their operations involving vital changes.
To meet these requirements they need people with courage and capabilities to meet the
challenges. Therefore they have to make potential appraisal of the present employees so
that they can undertake a variety of tasks.
(iii) Career Planning: Planning for Career makes employee grow in his working life time
while unplanned careers flopped. The first and foremost step in career planning is to make
one‘s SWOT analysis. He should assess his strength, weaknesses, opportunities and
threats. One must plan his career by means of education, training, job search and should
acquire work experience. Employee should trace the career paths in the organisations
available and compare them and join the organisation with full devotion.
(iv) Training: Training is an attempt to improve current or future employee performance
by increasing an employee‘s ability to perform through learning usually by changing the
employee‘s attitude or increasing his or her knowledge. The need for training is
determined by the deficiency of employee‘s performance, Training process include;
acquiring skills, concepts, attitudes for increasing effectiveness in doing a specific job or
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 jobs. Training provides necessary impetus to implement change, improve efficiency,
managerial effectiveness and increase productivity.
(v) Organisation Development: Organisation Development intend to change beliefs,
attitudes, values and structure of organisations that they can better adapt to new
technologies, markets and challenges and the dizzying rate of change itself. Organisation
is an open system and therefore must develop itself by adopting various changes to meet
the challenges thrown out by the constantly changing environment. It emphasizes on
appropriate interventions in the on-going activities of the organisation. It provides a
framework in which changes in climate and culture of the organisation takes place.
(vi) Quality Circle: Quality circle is a small group of people doing same or similar work.
They meet voluntarily together on regular basis for an hour per week, during office hours
under the leadership of their supervisor and trained to identify, analyze and solve some of
the problems of their work and submit solutions to management. They also implement the
solutions themselves if possible. It is a participative management system. It promotes
understanding and respect between managers and subordinates. It helps in building upon
the hidden potentials of human resources.
(vii) Role Analysis: Role is a set of expected behaviour patterns attributed to a person
occupying a given position in a unit. Every employee has a role to play. Everyone does not
have to be consistent and regular in one role. Employees have to play diverse roles both
on and off the jobs. To understand the behaviour of a person, it is essential to know what
role he is currently playing. The attitude and behaviour of a person vary with the role
identity. Roles change according to the circumstances.
(viii) Human Resource Planning: H. R. Planning is an integral part of business and
organisation planning. It concerns with detailed planning to establish the future human
resource requirements at every level by skill and category. The quality of human
requirements plan depends on the quality of the analysis and data on which it is based. A
reasonable degree of accuracy is essential in the business projections and operations from
which HR requirements are to be determined. The object of HR planning is to have
sufficient number of persons having adequate qualifications and skills to perform jobs and
available as per needs of the organisation.
(ix) Procurement and Placement: It is one of the important sub systems of HRD.
Procurement of human resources is done through recruitment and selection. Vacancies
are filled through these two methods. Placement is the process of assigning the procured
candidates with suitable jobs. It is placing right persons at right jobs to obtain the best
results.
(x)) Job Rotation: Jobs are rotated among the employees to increase their knowledge and
skill required for performance of various jobs. This is essential because during absence or
leave of employees work should not
suffer.
(xii) Quality of Working Life: Employees are the assets of an organisation. To extract the
best from employees adequate, healthy and hygienic working conditions should be
provided. This increases the productivity. Unhygienic and inadequate working conditions
will adversely affect the physical and mental health of the employees affecting their
efficiency. The enterprises should be very careful about quality of working life.

Q13. Define motivation and its importance. Discuss the Maslow’s theory of
motivation.
Ans. Motivation is a state that energizes, directs and sustains behavior. Motivation
involves goals and requires activity. Goals provide the impetus for and the direction of
action, while action entails effort: persistence in order to sustain an activity for a long
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 period of time. It is the willingness to exert high levels of efforts toward organisational
goals, conditioned by the effort ability to satisfy some individual need.
Importance of motivation
(i) Proper utilization of production factor: Motivation is the mechanism which is used to
stimulate the employees. Stimulated employees are ready to use the production factor
properly and efficiently. So it results in increase in production and productivity.
(ii) Willingness and interest creation: Motivation stimulates the employees in an
organization. It influences the willingness of employees to work hard and help to present
better performance. It is a process that acts according to desire of employees and
increases the willingness and interest of employees to do work.
(iii) High productivity: When the employees are fully motivated there is better
performance. It results high production and productivity increment.
(iv) Organizational goals: The machine, equipment, money cannot be effectively used when
the employees are not motivated to do the work in an organization to the maximum extent
,so it helps to achieve the organizational goals.
(v) Readiness for change: Changes are required in every organization. Such changes may
be in technology, environment etc. when the changes are introduced in the organization
there is tendency to resist them by the employee or hesitate to accept the change.
Motivated employees are already made ready to accept the change.
(vi) Efficiency in work: Motivated employees perform their duties according to the goals of
the organization. They perform work efficiently and timely and increase the efficiency
(vii) Reduce absenteeism: – Motivated employees don‘t want to be absent frequently. In
other words, Motivated employees stay in the organization more and non Motivated
employees are careless for the organizational goals.
Maslow’s Needs Theory of Motivation/ Maslow's Hierarchy of Needs Theory
One of the most popular needs theories is Abraham Maslow's hierarchy of needs theory.
Maslow proposed that motivation is the result of a person's attempt at fulfilling five basic
needs: physiological, safety, social, esteem and self-actualization. According to Maslow,
these needs can create internal pressures that can influence a person's behavior.

(i) Physiological needs are those needs required for human survival such as air, food,
water, shelter, clothing and sleep. As a manager, you can account for physiological needs
of your employees by providing comfortable working conditions, reasonable work hours
and the necessary breaks to use the bathroom and eat and/or drink.
(ii) Safety needs include those needs that provide a person with a sense of security and
well-being. Personal security, financial security, good health and protection from
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 accidents, harm and their adverse affects are all included in safety needs. As a manager,
you can account for the safety needs of your employees by providing safe working
conditions, secure compensation (such as a salary) and job security, which is especially
important in a bad economy.
(iii) Social needs, also called love and belonging, refer to the need to feel a sense of
belonging and acceptance. Social needs are important to humans so that they do not feel
alone, isolated and depressed. Friendships, family and intimacy all work to fulfill social
needs. As a manager, you can account for the social needs of your employees by making
sure each of your employees know one another, encouraging cooperative teamwork,
being an accessible and kind supervisor and promoting a good work-life balance.
(iv) Esteem needs refer to the need for self-esteem and respect, with self-respect being
slightly more important than gaining respect and admiration from others. As a manager,
you can account for the esteem needs of your employees by offering praise and
recognition when the employee does well, and offering promotions and additional
responsibility to reflect your belief that they are a valued employee.
(v) Self-actualization needs describe a person's need to reach his or her full potential.
The need to become what one is capable of is something that is highly personal. While I
might have the need to be a good parent, you might have the need to hold an executive-
level position within your organization. Because this need is individualized, as a manager,
you can account for this need by providing challenging work, inviting employees to
participate in decision-making and giving them flexibility and autonomy in their jobs.
Q14. How do working conditions affect the health of employees? Discuss the
measures to promote health and safety of employees at work.
Ans. Work and working conditions are essential contributors to social inequality in health
within and across generations, though they have received less attention from health
disparities researchers than other aspects of socioeconomic position, such as education or
income. Beyond the material and status rewards that come with paid work in a particular
occupation, work also shapes individuals' exposure to a wide array of physical,
environmental and psychosocial factors that can influence health. At the population level,
the availability and arrangements of work and occupations across societies determine the
opportunities for livelihoods and exposure to risk and contribute to health disparities
within and between societies. Scholars of stratification and inequality have long recognized
the centrality of employment and working conditions as reflections and determinants of
individuals' life chances. Employment is linked to health in positive ways, both as a
predominant mode of earning income and other material benefits, and as a source of
social integration, prestige and meaning. However, employment also exposes workers to
potentially health-harming physical and psychosocial stressors.
STEPS TO IMPROVE HEALTH AND SAFETY
The Occupational Health and Safety Regulation require that all small businesses have an
occupational health and safety program. A health and safety program is a process for
managing the prevention of work-related injuries and diseases in the workplace. As a
small business owner the employers have a responsibility towards employees to ensure
their health and safety in the workplace. The scope of health and safety program depends
on the size of business and the hazards at the particular workplace. The following key
steps to a safe work environment will be the basic components of health and safety
program.
(i) Create a plan to control workplace hazards
The employer must identify hazards in the workplace and take steps to eliminate or
minimize them. Develop a safety plan. The employer must make sure that employees
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 have access to a first aid kit. Hazards can include: a cleaner working with heavy duty
cleaning products, a mechanic working with large machinery or a warehouse manager
stacking heavy boxes.
(ii) Inspect the workplace regularly
The employer must regularly check all equipment and tools to ensure that they are well
maintained and safe to use. It is also important for checking storage areas and review safe
work procedures. Are boxes in storage area stacked in a safe manner? Are the employees
instructed how to lift heavy goods without injuring themselves? Do the employees know
where the fire exit is and where they should gather if there is a fire?
(iii) Train the employees
Proper training is necessary for all employees, especially if there is a risk for potential
injury associated with a job. The staff should provide written instructions and safe work
procedures so they can check for themselves if they are unsure of a task or have forgotten
part of their training. It is also important to supervise the employees to ensure that they
are using their training to perform their job properly and safely. By not providing the
correct training for employees the employer is not only endangering the safety of
employees but he will be held liable for the incident which could have serious
consequences.
(iv) Talking regularly with the employees
The employer must meet regularly with the staff and discuss health and safety issues.
Encourage them to share their ideas and thoughts on how to improve safety in the
workplace. The employer might even consider providing first aid training for staff so they
are prepared to deal with emergency situations .
(v) Investigate incidents.
Even if an incident does not result in a serious injury, the employer should conduct an
incident investigation to help determine why an incident happened so as to take necessary
steps to ensure that it will not reoccur in the future.
(vi)Maintain records.
There should be proper records of all first aid treatment, inspections, incident
investigations, and training activities. This information can help to identify trends in unsafe
conditions or work procedures.
(vii) Make safety a key part of the business
Safety shouldn‘t be an after-thought; it‘s just as important to a successful business as
customer service, inventory control, and financial planning. A commitment to health and
safety makes good business sense because it‘s the one way to protect the business‘
greatest resource — its people.
(viii) Reward employees for safe behavior.
Rewards are an easy way to encourage workplace safety. Giving out small rewards to
employees who follow safety policies keeps them engaged—which can make a big
difference in reducing your workplace injuries.
(ix) Keep things clean.
A messy workplace can lead to unnecessary accidents. Make sure boxes are stacked safely
and spills are cleaned up quickly. Conduct regular inspections to check for potential
dangers such as tangled cords, messy floors and disorganized tools.
(x) Use labels and signs.
Labels and signs are a cheap and effective way to quickly communicate important
information. They‘re usually simple and rely on pictures to detail hazards, proper
procedures, etc. These tools are good reminders and warnings for even the most
experienced worker.
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 Q15. Discuss Job Redesign. Explain job enrichment, job enlargement and Job
rotation.
Ans. Job Redesign: When same job is done day in and day out, it can become mundane
or boring. It may seem like you show up to work, go through the motions and come back
the next day to do it all over again. Sometimes it's not the type of work that needs a
makeover but the tasks, responsibilities and roles that do. Job redesign looks specifically
at ways to expand an employee's job by redesigning certain aspects relating to the scope
and depth of what it is that an employee does and is responsible for at the organization. In
doing so, the manager essentially prevents an employee from losing motivation and
interest in their work. There are three ways a manager can redesign an employee's
job: job enrichment, job enlargement and job rotation.
Job enlargement: Job enlargement is a job design technique wherein there is an
increase in the number of tasks associated with a certain job. In other words, it means
increasing the scope of one's duties and responsibilities. The increase in scope is
quantitative in nature and not qualitative and at the same level. Job enlargement is a
horizontal restructuring method that aims at increase in the workforce flexibility and at the
same time reducing monotony that may creep up over a period of time. It is also known as
horizontal loading in that the responsibilities increase at the same level and not vertically.
Many believe that since the enlargement is horizontal in nature there is not a great need
for training! Contrary to this, job enlargement requires appropriate training especially on
time and people management. Task related training is not required much since the
person is already aware of the same or doing it for some time. Advantages of job
enlargement:
 Reduced Monotony
 Increased Work Flexibility
 No Skills Training Required:
Job enrichment: Job enrichment means a vertical expansion of a job. It is different
from job enlargement. Job enlargement means a horizontal expansion of a job. Job
enrichment makes the job more meaningful, enjoyable and satisfying. It gives the workers
more autonomy for planning and controlling the job. It also gives the workers more
responsibility. Job enrichment gives the workers opportunities for achievement,
recognition, advancement and growth. So, the workers are motivated to work harder. What
works particularly well to increase motivation is when job enrichment includes additional
tasks that match the skills, knowledge and abilities the employee already has Therefore,
Job enrichment makes the job a source of motivation. Advantages of Job Enrichment:
 Job enrichment is useful to both the workers and the organization.
 The worker gets achievement, recognition and self-actualization.
 The worker gets a sense of belonging to the organization.
 The worker finds the job meaningful.
 Job enrichment reduces absenteeism, labor-turnover and grievances.
 It motivates the workers to give best performance.
Job rotation: Job Rotation is a management approach where employees are shifted
between two or more assignments or jobs at regular intervals of time in order to expose
them to all verticals of an organization. It is a pre-planned approach with an objective to
test the employee skills and competencies in order to place him or her at the right place.
In addition to it, it reduces the monotony of the job and gives them a wider experience
and helps them gain more insights. Job rotation is a well-planned practice to reduce the
boredom of doing same type of job everyday and explore the hidden potential of an
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 employee. The process serves the purpose of both the management and the employees. It
helps management in discovering the talent of employees and determining what he or she
is best at. On the other hand, it gives an individual a chance to explore his or her own
interests and gain experience in different fields or operations. Advantages of job rotation:
 It helps managers to explore their hidden talent.
 It helps individuals to explore their interests.
 Identifies knowledge, skills and attitudes.
 It motivates employees to deal with new challenges.
 It increases satisfaction and decreases attrition rate.
 It helps align competencies with requirements.
Q16. What are the different types of HRM policies?
Ans. A policy is a predetermined course of action established as a guide towards accepted
objectives and strategies of the organization. Policy manuals are developed to help staff
and management teams run the organization. In best use situations, policies play a
strategic role in an organization. They are developed in light of the mission and objectives
of the company and they become the media by which management‘s plans, rules, intents,
and how to run its HR processes, HR policies are documented and communicated to all
staff. Carefully drafted and standardized policies and procedures save the company
countless hours of management time. The consistent use and interpretation of such
policies, in an evenhanded and fair manner, reduce the management‘s concern about
legal issues becoming legal problems. They should be the first things given to a new
employee (either in hard copy of an electronic version).
There are two different parts of human resource (hr) policies, first half of the human
resource policies and procedures are formulated on the basis of their source and
second half of the human resource policies are provided on the basis of their
description. And detailed information about these Human resource policies and
procedures are stated below.
(I) ON THE BASIS OF SOURCE: In this source based human resource policies the actual
activities in which all the employment policies are generated mainly rely upon their
managers and employees working needs and wants. Moreover, this reliance can be
classified in different terms of words and they are as follows:
(i) Originated policy: The actual nature of working in relation with the originated policy is
handled and established by the senior manager so that the senior manager can
understand all the necessary requirements of the employees. Moreover, these senior
managers provide these guidelines to their subordinates to improve and develop their
professional career. Therefore, it is necessary to understand the originated policies for the
empowerment of the employees of the company.
(ii) Implicit policy: With the help of these policies the managers can express their
intention in favor of the company. First of all the actual importance of these implicit
policies are implied because of the nature and behavior of the managers. And that is why
these implicit policies are also called and recognized by the name of implied policies of
the company. It is quite clear that these implicit policies are recognized by the managers
of the company. Therefore, it is necessary to understand that these policies are made in
favor of the manager‘s requirement.
(iii) Imposed policies: The nature of working in the company doesn‘t include only the
management of the company. Moreover, as the matter of fact, the organizational
structure of the company even depends upon the governmental agencies of the company.
The human resource policies and procedures of the company will also provide with the
provision that, part of the policy of the company can be governed and favoured by the
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 governmental agencies or trade unions. It is one of the policies which is made for the
development of the staff and workers value in the company.
(iv) Appealed policy: It is not an actual policy, as its name suggests it is such kind of
policies which are requested by the managers of the company, so the management of the
human resource policy will consider looking into certain situation which is not included in
all the above-mentioned policies. The appealed policies can be generated by the
managers and employees of the company, but the final decision of that appeal, whether it
is accepted or rejected can be decided by the human resource management of the
company.
(II) ON THE BASIS OF DESCRIPTION: The human resource policies and procedures of
the company are made for the advantage and benefit of the company employees and their
employment. And the nature of working of the human resource policy which is made on
the basis of its description can be derived on behalf of the company development.
(i) General policy: It is one of the policies which is based on the description of its
working. The human resource policy based on their description established some of the
general policies. These general policies are completely different from the rest of the
policies generated from the human resource management of the company. As these
general policies don‘t belong to any particular issues of the company, and that is why it is
named as the general policy of the company.
(ii)Specific policy: As its name suggests, the specific policies are those types of policies
in an organisation which is related to specific issues of the company such as staffing,
recruitment and salary related issues. Therefore, these specific policies are designed to
undertake those specific issues of the company. Moreover, all the working order of these
specific policies of the company favors all the staffing related issues of the company.
Q17. Explain the concept of compensation management. Do small companies
need to make pay plans?
Ans. Compensation means the basic returns that an employee obtains from his/her work.
Every organization offers a good compensation to attract and retain the ablest employees
in the actual work floor. It is because if the company does not offer an attractive package
of compensation, compared to other competitive firms, the efficient employees may leave
the firm. Hence, the employees should be compensated adequately. A well-designed job
evaluation program helps to determine an appropriate compensation system.
Compensation may be defined as a package of financial and non-financial benefits that the
employee receives for his/her contribution rendered to the organization. It consists
of all forms of monetary and non-monetary rewards/pays provided by the employer to the
employees for services contributed by them towards organizational objectives. This is what
employees receive in exchange for their work. The management of this key activity helps
the organization obtain, maintain and retain a productive work force. It has two main
components- direct financial payments and indirect payments. The direct payments
consist of salaries, wages, incentives, commissions, bonuses, etc. Whereas, the indirect
payments comprise financial benefits like paid leaves, employee aid insurance etc.
Objectives of compensation management
 To recruit and retain qualified employees.
 To increase or maintain morale.
 To determine basic wage and salary.
 To reward for job performance.
 To ensure equity.
 Control costs.
 Comply with legal regulations.
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  Administer efficiently.
Components of Compensation

MONETARY COMPOPNENTS - DIRECT

 Salary and wages: This is usually the single largest component of a
compensation package, and not surprisingly, the most common point of
comparison used by employees and potential employees. Salary should be tied
to a person‘s skills and experience. Subsequent increases need to be based on
an employee‘s performance, value, and contribution to an organization. For
salespeople, it might be important to find a balance between salary and
commission.
 Bonuses: Employee bonuses, which are usually paid in a single lump at the
end of the year, are one way of providing performance incentives. Profit-sharing
plans are a more formal way of doing this, but they‘re not as effective for
rewarding individual performance and compensating employees for meeting
their goals.
 Long-term incentives: Stock options or stock grants not only provide long-
 term incentives to employees, but they can also help retain valuable team
 members through your organization‘s crucial startup phase.
  Perks or perquisites: Employee benefits and benefits in kind (also
 called fringe benefits, perquisites, or perks) include various types of non-wage
 compensation provided to employees in addition to their

normal wages or salaries. In instances where an employee exchanges (cash)

wages for some other form of benefit is generally referred to as a 'salary

 packaging' or 'salary exchange' arrangement. In most countries, most kinds of
 employee benefits are taxable to at least some degree. Examples of these
benefits include: housing (employer-provided or employer-paid) furnished or
 not, with or without free utilities, tuition reimbursement, sick
leave, vacation(paid and non-paid); social security, profit sharing etc.
INDIRECT COMPESATION
 Health insurance: Employer-sponsored health insurance is fairly standard among
medium-size companies. Plus, it‘s a benefit that has great value to employees. An
employer-sponsored plan saves employees money, and gives them peace of mind
in knowing that they won‘t be denied coverage, even if they have existing health
problems.
 Life and/or disability insurance: This is also a benefit that usually costs less
when it‘s purchased by an employer rather than by an individual.
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  Retirement plans: 401(k) plans have become popular because they‘re relatively
easy to administer and are less expensive than traditional pension plans. Many
employees like these plans because they maintain some control over the amount of
their contribution and how the money is invested. Most small companies try to put
some kind of savings or 401(k) plan in place, even if they don‘t contribute money to
them.
 Time off and flexible schedules: This includes holidays, vacations, sick days,
and personal days. An employer unable to offer competitive salaries may close part
of the gap by offering more time off or flexible work hours. Some employers make
no distinction between sick, vacation, or personal days, allowing employees a set
number of days off each year to be used at their discretion. This prevents
employees from abusing sick days, and keeps them from feeling that they need to
lie when a child is ill or a personal emergency arises.
 Miscellaneous compensation: Other forms of compensation to consider include
employee assistance programs, which can provide everything from psychological
counseling to legal assistance; discounts on company products; the use of a
company cars; and any other incentives that motivate employees and give your
company a competitive advantage.
NON-MONETARY COMPENSATION
 Enhanced dignity and satisfaction from work performed.
 Promote social relationship with co-workers.
 Allocate sufficient resources to perform work assignments.
 Offer supportive leadership and management.
 Enhance physiological health, intellectual growth.
 Recognition and praise can be powerful workplace motivators. In addition, workers
who feel like they matter and are important to their companies are more likely to
stay on the team.
 More autonomy is also an important factor. Employees want independence. They
want to be clear about what they need to do and the time frame in which they need
to do it, but when that's settled, they want the freedom and independence to get
the job done on their own.
 Flexibility in schedules plays a vital role. Studies show that workers with flexible
hours are more motivated than workers with inflexible schedules.
Q18. Define trade unions and their role in HRM. What are the advantages and
disadvantages of being a union member?
Ans. Trade unions are associations of workers formed to represent their interests and
improve their pay and working conditions. trade unions are organizations formed by
workers from related fields that work for the common interest of its members. They help
workers in issues like fairness of pay, good working environment, hours of work and
benefits. They represent a cluster of workers and provide a link between the management
and workers.
Objectives of Trade Unions
(i) To improve the economic lot of workers by securing them better wages.
(ii) To secure for workers better working conditions.
(iii) To secure bonus for the workers from the profits of the enterprise/organization.
(iv) To ensure stable employment for workers and resist the schemes of management
which reduce employment opportunities.
(v) To provide legal assistance to workers in connection with disputes regarding work and
payment of wages.
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 (vi) To protect the jobs of labour against retrenchment and layoff etc.
(vii) To ensure that workers get as per rules provident fund, pension and other benefits.
(viii) To secure for the workers better safety and health welfare schemes.
(ix) To secure workers participation in management.
(x) To inculcate discipline, self-respect and dignity among workers.
(xi) To ensure opportunities for promotion and training.
(xii) To secure organizational efficiency and high productivity.
(xiii) To generate a committed industrial work force for improving productivity of the
system.
Functions and role of trade union
(i) Collective bargaining with the management for securing better work environment for
the workers/ employees.
(ii) Providing security to the workers and keeping check over the hiring and firing of
workers.
(iii) Helping the management in redressal of grievances of workers at appropriate level.
(iv) If any dispute/matter remains unsettled referring the matter for arbitration.
(v) To negotiate with management certain matters like hours of work, fringe benefits,
wages and medical facilities and other welfare schemes.
(vi) To develop cooperation with employers.
(vii) To arouse public opinion in favour of labour/workers.
Benefits of Trade Union: Workers join trade union because of a number of reasons as
given below:
(i) A worker feels very weak when he is alone. Union provides him an opportunity to
achieve his objectives with the support of his fellow colleagues.
(ii) Union protects the economic interest of the workers and ensures a reasonable wage
rates and wage plans for them.
(iii) Union helps the workers in getting certain amenities for them in addition to higher
wages.
(iv) Union also provides in certain cases cash assistance at the time of sickness or some
other emergencies.
(v) Union organize negotiation between workers and management and are instruments for
settlement of disputes.
(vi) Trade union is also beneficial to employer as it organizes the workers under one
banner and encourages them follow to peaceful means for getting their demands
accepted.
(vii) Trade union imparts self-confidence to the workers and they feel that they are an
important part of the organization.
(viii) It provides for promotion and training and also helps the workers to go to higher
positions.
(ix) It ensures stable employment for the workers and opposes the motive of management
to replace the workers by automatic machines.
(x) Workers get an opportunity to take part in the management and oppose any decision
which adversely affects them.
Q19 Why is it correct to say that all managers are involved in HRM function.
Discuss the evolution of HRM.
Ans. Strengthening the employer-employee relationship is the strategic role of a human
resources manager. However, there's more than meets the eye to doing this. Human
resources managers formulate workforce strategy and determine the functional processes
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 necessary to meet organizational goals. Their job requires expertise as an HR generalist,
which means they must be familiar with every human resources discipline.
Overview: During the 1980s, personnel departments were responsible for handing out
applications, providing employees with insurance enrollment forms and processing
payroll. The role of the personnel department was mainly administrative. Over the next two
decades, the role of personnel administration became more involved with overall business
goals. Companies began to recruit human resources leaders who were capable of
managing the department from a more strategic position. Personnel administration,
therefore, evolved into a business now referred to as human resources management.
Human resources managers are responsible for developing strategic solutions to
employment-related matters that affect the organization's ability to meet its productivity
and performance goals.
Workplace Safety: Creating a work environment free from unnecessary hazards is a
strategic role of every human resources manager. Strategic development for workplace
safety entails risk management and mitigating potential losses from on-the-job injuries
and fatalities. Workers' compensation insurance is an area in which a strategic plan helps
lower company expense for insurance coverage. Reducing accidents through training
employees on the proper use of complex machinery and equipment is one of the
functional tasks associated with creating a safe work environment.
Compensation and Benefits: An employer's compensation and benefits structure partly
determines the company's business reputation and image. In addition, the decisions that
human resources managers make regarding pay scales and employee benefits can impact
employee satisfaction, as well as the organization's ability to recruit talented workers. Job
evaluation, labor market conditions, workforce shortages and budget constraints are
factors that HR managers consider in a strategic plan for pay and benefits. In addition, a
strategy includes weighing an employer's choices between satisfying its workforce and
pleasing the company's stakeholders. Pursuant to the health care reform law passed in
2010, human resources managers for companies with more than 50 employees must
decide between offering group health coverage and paying fines, beginning in 2014.
Employee Training: Human resources managers' strategic role with respect to employee
training and development prepares the workforce for future positions within the company.
Succession planning, promotion-from-within policies and performance evaluation factor
into the human resources manager's role. Training and development motivate employees,
and in some cases, improve employee retention.
Recruitment and Selection: Employee recruitment and selection is as much a part of
employee relations as it is a separate discipline unto itself. Therefore, a human resources
manager's strategic role is to combine elements of employee relations into the employer's
recruitment and selection strategy. Integrating employee recognition programs into
promotion-from-within policies is an effective form of employee motivation that combines
the employee relations and recruitment and selection areas of human resources.
Employee Relations: Some human resources managers believe that strengthening the
employer-employee relationship rests solely in the employee relations areas of the HR
department. This isn't true. Nevertheless, employee relations is such a large part of every
discipline -- including salaries, benefits, safety, training and employee development -- that
sustaining an employee relations program is an important element of human resources
strategy. Implementing a workplace investigation process and enforcing fair employment
practices are two components of an employee relations program. The strategic role of a
human resources manager is to determine how to identify and resolve workplace issues,
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 as well as how best to attract a diverse pool of applicants through effective recruitment
and selection processes.
Evolution of HRM
The concept of human resources management has developed through a number of
stages. HRM is a wider concept than personnel management. The gradual realization of
the fact human beings is an asset for an organization rather than mere ‗employees at
work‘ has brought this change. The sequence of evolution of HRM is discussed as follows:
(i) Labour as commodity: Industrial revolution gave rise to factory system. Earlier Guild
System operated in the form of a group. It was a closely knit group of workers where
selection, training, rewarding etc. was done by the head of the group. The factory system
shifted workers from residence to the factory. There was a separation of ownership and
management. The workers were hired on the basis of need and wages were based on
demand and supply position. The workers were considered as commodity which could be
purchased like other commodities.
(ii) Labour as tool for higher production: The workers were taken as one of the factors
of production. It was realized that properly selected and trained workers can help in
increasing productivity. F.W.taylor also stressed that proper selection and training of
employees can maximize productivity. The workers gained better status over the
commodity concept.
(iii) Paternalistic Approach: This approach was based on the belief that management
must assume a fatherly and protective attitude towards employees. The management
started taking interest in the needs of workers and satisfying their aspirations. The
employees started organizing themselves into trade unions and gave impetus to collective
bargaining. The government also recognised the fact that workers have a right to organize
themselves for protecting their employment and fighting against injustice. The employees
began to provide welfare schemes to workers. The employers and employees realised that
they are dependent upon each other.
(iv) Humanitarian concept: The humanitarian concept is based on the belief that
employees had certain inalienable rights as human beings and it was the duty of the
employers to protect these rights. It was realised that for increasing labour productivity,
the physical, social and psychological needs of workers will have to be met. In the words of
Elton Mayo, money is less a factor in determining a output, than group standards, group
incentives and security. The organization is a social system that has both economic and
social dimensions. Hawthorne experiments also supported emphasis on human relations
concept.
(v) Human Resource concept: The employees were considered as most valuable assets
of the organisation. It was realised that organizational goals can be achieved by satisfying
aspirations of employees. Both are complimentary and can be satisfied at the same time.
Several studies on human behavior brought out the fact that application of behavior
sciences to the problems of individual and group behavior at work showed better results in
improving the overall performance and productivity. Efforts were made to integrate
employees with the organisation so that organizational goals and employees aspirations
could be achieved simultaneously. Motivation, group dynamics, organizational conflict etc.
became popular concepts and the emphasis shifted to management practices like two way
communication, management by objectives, role of informal groups, quality circles etc.
(vi)Emerging concept: The emerging concept of HRM aims at creating a feeling among
workers that the organisation is their own. Management should accept workers as partners
in the progress of organisation. This implies that workers should be offered better quality
of working life and proper opportunities to exploit their potential. The globalization of
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 business and international competition has increased the importance of workforce. The
quality of workforce is influencing the performance of the whole organisation. It is difficult
to achieve organizational objectives without meeting the aspirations of employees. Human
resource management is emerging as a special academic discipline and as a profession.
The employees are now considered as resource, an asset and an opportunity.
Q20. Discuss nature, scope and importance of HRP. What are steps in HRP?
Ans. The Human Resource Planning is a process of forecasting the organization‘s
demand for and supply of manpower needs in the near future.
It is used by organisations to ensure that they have the right number and the right kind of
people at the right place and at the right time. Where this process is carried out properly,
it brings maximum long-run benefits to both the
organization and the individual employee. It is also called manpower planning/ personnel
planning/ employment planning. It is only after Human Resource Planning that the Human
Resource department can initiate the recruitment and selection process. Therefore Human
Resource Planning is a sub-system of organisational planning.
Nature of Human Resource Planning:
· Human Resource Planning deals with the manpower needs of an organization.
· It helps in discovering the unused talent presently available with the organization.
· It also tells about the present inventory of manpower of the organization.
· It projects the future manpower needs of the organization .
Objectives of Human Resource Planning:
· To make the promotion and transfers policies.
· To ensure optimum use of available manpower.
· To provide the necessary manpower when required.
· To assess the future manpower requirements to achieve the organization objectives.
· To make a balance between the distribution and allocation of manpower.
Scope of Human Resource Planning
· It keeps the record of current manpower with the organization.
· Assessing the future requirements of manpower for organization objectives.
· To make the manpower recruitment plans.
· To phase out the surplus employees.
· To make a layout of training programme for different categories of employees.
Need and importanceof HRP
 Forecast future personnel needs: To avoid the situations of surplus or
deficiency of manpower in future, it is important to plan your manpower in
advance. For this purpose a proper forecasting of futures business needs helps you
to ascertain our future manpower needs. From this angle, HRP plays an important
role to predict the right size of manpower in the organization.
 Cope with change: HRP enables an enterprise to cope with changes in
competitive forces, markets, technology, products and government regulations.
Such changes generate changes in job content, skills demands and number of
human resources required.
 Creating highly talented personnel: Since jobs are becoming highly intellectual
and incumbents getting vastly professionalized, HRP helps prevent shortages of
labor caused by attrition. Further technology changes would further upgrade or
degrade jobs and create manpower shortages. In these situations only accurate
human resource planning can help to meet the resource requirements. Further HRP
is also an answer to the problems of succession planning.
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  Protection of weaker sections: A well-conceived personnel planning would also help
to protect the interests of the SC/ST, physically handicapped, children of
socially oppressed and backward classes who enjoy a certain percentage of
employments notwithstanding the constitutional provisions of equal opportunity for
all.
 International strategies: International expansion strategies largely depend upon
effective HRP. With growing trends towards global operations, the need for HRP
further becomes more important as the need to integrate HRP more closely into the
organization keeps growing. This is also because the process of meeting staffing
needs from foreign countries grows in a complex manner. Foundation of personnel
functions: HRP provides essential information for designing and
implementing personnel functions such as recruitment, selection,
personnel development, training and development etc
 Increasing investments in HR: Another importance is the investment that
 an organization makes in human capital. It is important that employees are used
 effectively throughout their careers. Because human assets can increase the
 organization value tremendously as opposed to physical assets.
  Resistance to change & move: The growing resistance towards change and
 move, self evaluation, loyalty and dedication making it more difficult to assume that

organization can move its employees everywhere. Here HRP becomes very
 important and needs the resources to be planned carefully.
Human Resource Planning Process

(i) Determining the Objectives of Human Resource Planning: The foremost step in
every process is the determination of the objectives for which the process is to be carried
on. The objective for which the manpower planning is to be done should be defined
precisely, so as to ensure that a right number of people for the right kind of job are
selected. The objectives can vary across the several departments in the organization such
as the personnel demand may differ in marketing, finance, production, HR department,
based on their roles or functions.
(ii) Analyzing Current Manpower Inventory: The next step is to analyze the current
manpower supply in the organization through the stored information about the employees
in terms of their experience, proficiency, skills, etc. required to perform a particular job.
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 Also, the future vacancies can be estimated, so as to plan for the manpower from both the
internal (within the current employees) and the external (hiring candidates from outside)
sources. Thus, it is to be ensured that reservoir of talent is maintained to meet any
vacancy arising in the near future.
(iii) Forecasting Demand and Supply of Human Resources: Once the inventory of
talented manpower is maintained; the next step is to match the demand for the manpower
arising in the future with the supply or available resources with the organization. Here, the
required skills of personnel for a particular job are matched with the job description and
specification.
(iv) Analyzing the Manpower Gaps: After forecasting the demand and supply, the
manpower gaps can be easily evaluated. In case the demand is more than the supply of
human resources that means there is a deficit, and thus, new candidates are to be hired.
Whereas, if the Demand is less than supply, there arises a surplus in the human resources,
and hence, the employees have to be removed either in the form of termination,
retirement, layoff, transfer, etc.
(v) Employment Plan/Action Plan: Once the manpower gaps are evaluated, the action
plan is to be formulated accordingly. In a case of a deficit, the firm may go either for
recruitment, training, interdepartmental transfer plans whereas in the case of a surplus,
the voluntary retirement schemes, redeployment, transfer, layoff, could be followed.
(vi)Training and Development: The training is not only for the new joinees but also for
the existing employees who are required to update their skills from time to time.
After the employment plan, the training programmes are conducted to equip the new
employees as well as the old ones with the requisite skills to be performed on a particular
job.
(viii) Appraisal of Manpower Planning: Finally, the effectiveness of the manpower
planning process is to be evaluated. Here the human resource plan is compared with its
actual implementation to ensure the availability of a number of employees for several jobs.
At this stage, the firm has to decide the success of the plan and control the deficiencies, if
any.
Q21. Explain the types and process of training.
Ans. Different types of training:
(i) Induction or Orientation Training: Introducing a new employee to the
organization‘s environment comprising of a day to day functioning, products, services,
rules and regulations are termed as Induction or orientation training. The purpose of such
training is to reduce the nervousness of a new joinee, by making him accustom to the
working environment. It is also called as an orientation training, which means giving a fair
idea to the new employee about, what he is supposed to do in the organization.
(ii) Job Training: This training is job specific and is given to the employee who has to
perform that job. Under this training, the information about the machine, the process of
production, methods to be used, the safety measures to be undertaken, etc. are explained.
Through this training, the employee develops the confidence and the necessary skills, that
enable him to perform his job effectively and efficiently.
(iii) Safety Training: The safety training is given to the employees so as to minimize the
number of accidents caused due to the handling of machines or other equipment. Under
this training, the employees are given the safety instructions on the usage of machinery
and the other dangerous devices.
(iv) Apprenticeship Training: Under this training, the worker earns while learning. This
training is generally given to the technical staff, craftsmen, plumber, etc. who are required
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 to work under the superior for a relatively longer period, until he gains the expertise in
that particular field.
(v) Internship Training: Under this type, the educational or vocational institutes have an
arrangement with the industrial institutes to provide practical knowledge to its students.
Sometimes, the companies also offer the pre-placement offers to the trainees on the basis
of their performance during their internship program.
(vi) Refresher Training or Retraining: As the name implies, the retraining or refresher
training is given to the old employees with the purpose of improving their efficiencies.
They are introduced to the new methods and technologies that would result in the
increased productivity and reduces the monotony in their daily work.
(vii) Promotional Training: This training is given to the potential employees, who can
be promoted to the senior position in the organization. The promotional training is given
in advance so that employee gets accustomed to the new roles and responsibilities and do
not get nervous at the time of promotion.
(viii) Remedial Training: This training is given in order to overcome the shortcomings in
the behavior and performance of old employees. Due to the invention of technology, the
employees may resist to accept the change and cause a disturbance in the organization.
Therefore, such training is given to make them understand the importance of change and
its necessity in the operations of business. This training is generally given by the
psychological expert.

(i) Needs assessment: The first step in the training process is to assess the need for
training the employees. The need for training could be identified through a diagnosis of
present and future challenges and through a gap between the employee‘s actual
performance and the standard performance. The needs assessment can be studied from
two perspectives: Individual and group. The individual training is designed to enhance the
individual‘s efficiency when not performing adequately. And whereas the group training is
intended to inculcate the new changes in the employees due to a change in the
organization‘s strategy.
(ii) Deriving Instructional Objectives: Once the needs are identified, the objectives for
which the training is to be conducted are established. The objectives could be based on
the gaps seen in the training programmes conducted earlier and the skill sets developed
by the employees.
(iii) Designing Training Programme: The next step is to design the training
programme in line with the set objectives. Every training programme encompasses certain
issues such as: Who are the trainees? Who are the trainers? What methods are to be used
for the training? What will be the level of training? etc. Also, the comprehensive action
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 plan is designed that includes the training content, material, learning theories,
instructional design, and the other training requisites.
(iv) Implementation of the Training Programme: Once the designing of the training
programme is completed, the next step is to put it into the action. The foremost decision
that needs to be made is where the training will be conducted either in-house or outside
the organization.
Once it is decided, the time for the training is set along with the trainer who will be
conducting the training session. Also, the trainees are monitored continuously throughout
the training programme to see if it‘s effective and is able to retain the employee‘s interest.
(v) Evaluation of the Training Programme: After the training is done, the employees
are asked to give their feedback on the training session and whether they felt useful or
not. Through feedback, an organization can determine the weak spots if any, and can
rectify it in the next session. The evaluation of the training programme is a must because
companies invest huge amounts in these sessions and must know it‘s effectiveness in
terms of money.
Q22. Discuss the various methods of training. What is the difference between
training and development?
Ans. Training Methods: On Job Training and Off the Job Training Methods
(I) On the Job training: Under these methods new or inexperienced employees learn
through observing peers or managers performing the job and trying to imitate their
behaviour.
(i) Coaching: Coaching is a one-to-one training. It helps in quickly identifying the weak
areas and tries to focus on them. It also offers the benefit of transferring theory learning to
practice. The biggest problem is that it perpetrates the existing practices and styles. In
India most of the scooter mechanics are trained only through this method.
(ii) Mentoring: The focus in this training is on the development of attitude. It is used for
managerial employees. Mentoring is always done by a senior inside person. It is also one-
to- one interaction, like coaching.
(iii) Job Rotation: It is the process of training employees by rotating them through a
series of related jobs. Rotation not only makes a person well acquainted with different
jobs, but it also alleviates boredom and allows to develop rapport with a number of
people. Rotation must be logical.
(iv) Job Instructional Technique (JIT): It is a Step by step (structured) on the job
training method in which a suitable trainer (a) prepares a trainee with an overview of the
job, its purpose, and the results desired, (b) demonstrates the task or the skill to the
trainee, (c) allows the trainee to show the demonstration on his or her own, and (d) follows
up to provide feedback and help. The trainees are presented the learning material in written or
by learning machines through a series called ‗frames‘. This method is a valuable tool for all
educators (teachers and trainers). It helps us:
a. To deliver step-by-step instruction
b. To know when the learner has learned
c. To be due diligent (in many work-place environments)
(v) Apprenticeship:
Apprenticeship is a system of training a new generation of practitioners of a skill. This
method of training is in vogue in those trades, crafts and technical fields in which a long
period is required for gaining proficiency. The trainees serve as apprentices to experts for
long periods. They have to work in direct association with and also under the direct
supervision of their masters.
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 (II) Off the job training: Off-the-job training methods are conducted in separate from
the job environment, study material is supplied, there is full concentration on learning
rather than performing, and there is freedom of expression
(i) Lectures and Conferences: Lectures and conferences are the traditional and direct
method of instruction. Every training programme starts with lecture and conference. It‘s a
verbal presentation for a large audience. However, the lectures have to be motivating and
creating interest among trainees. The speaker must have considerable depth in the
subject. In the colleges and universities, lectures and seminars are the most common
methods used for training.
(ii) Vestibule Training: Vestibule Training is a term for near-the-job training, as it offers
access to something new (learning). In vestibule training, the workers are trained in a
prototype environment on specific jobs in a special part of the plant. An attempt is made
to create working condition similar to the actual workshop conditions. After training
workers in such condition, the trained workers may be put on similar jobs in the actual
workshop. This enables the workers to secure training in the best methods to work and to
get rid of initial nervousness.
(iii) Role playing: It is defined as a method of human interaction that involves realistic
behaviour in imaginary situations. This method of training involves action, doing and
practice. The participants play the role of certain characters, such as the production
manager, mechanical engineer, superintendents, maintenance engineers, quality control
inspectors, foreman, workers and the like. This method is mostly used for developing
interpersonal interactions and relations.
(iv) Conference/discussion approach: In this method, the trainer delivers a lecture and
involves the trainee in a discussion so that his doubts about the job get clarified. When big
organizations use this method, the trainer uses audio-visual aids such as blackboards,
mock-ups and slides; in some cases the lectures are videotaped or audio taped. Even the
trainee‘s presentation can be taped for self-confrontation and self-assessment. The
conference is, thus, a group-centered approach where there is a clarification of ideas,
communication of procedures and standards to the trainees. Those individuals who have a
general educational background and whatever specific skills are required – such as typing,
shorthand, office equipment operation, filing, indexing, recording, etc. – may be provided
with specific instructions to handle their respective jobs.
(v) Programmed instruction: This method has become popular in recent years. The
subject matter to be learned is presented in a series of carefully planned sequential u nits.
These units are arranged from simple to more complex levels of instruction. The trainee
goes through these units by answering questions or filling the blanks. This method is,
thus, expensive and time-consuming.
(vi) Vestibule Trainings: In vestibule trainings, employees practice work on the
instrument/equipment which they would be using in future when they would be actually
working. The virtual organisation is a temporary network of companies that come together
quickly to exploit fast changing opportunities. Partners in a virtual organisation generally
share costs, skills and access to international markets. Each partner contributes to the
virtual organisation what it is best at—its core capabilities. In many high tech industries,
virtual organisations rely heavily on internal computer networks or even the Internet to
provide instantaneous communications and access to people who may be in many
different locations, perhaps even around the world. Speed, agility and fast response are
the greatest benefits of going virtual.
(vii) Behaviourally Experienced Training: Some training programmes focus on
emotional and behavioral learning. Here employees can learn about behaviour by role
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 playing in which the role players attempt to act their part in respect of a case, as they
would behave in a real life situation. Business games, cases, incidents, group discussions
and short assignments are also used in behaviorally-experienced learning methods.
Sensitivity training or laboratory training is an example of a method used for emotional
learning. The focus of experiential methods is on achieving, through group processes, a
better understanding of oneself and others. These are discussed elaborately in the section
covering Executive Development Programmes.
Basis of Training Development
comparison
1. Meaning Training is a learning process in Development is an educational
which employees get an process which is concerned with the
opportunity to develop skill, overall growth of the employees. It
competency and knowledge as per provides the opportunity to an
the job requirement. individual to improve their general
knowledge and abilities for their
overall growth.
2. Term Short Term. Long Term
3. Focus on Present/ immediate need Future role
4.Orientation Job oriented Career & possibility oriented
5.Motivation Trainer Self
6. Purpose To improve the work performance To prepare individuals for future
or capabilities of an employee. challenges.
7.Aim Specific job or role related Conceptual and general knowledge
8.Number of Only one
One or many
people

Q23. Discuss various sources of recruitment. Also elaborate the selection

process.
Ans. (A) Internal Sources:
(i) Transfers: Transfer involves shifting of persons from present jobs to other similar jobs.
These do not involve any change in rank, responsibility or prestige. The numbers of
persons do not increase with transfers.
(ii) Promotions: Promotions refer to shifting of persons to positions carrying better
prestige, higher responsibilities and more pay. The higher positions falling vacant may be
filled up from within the organisation. A promotion does not increase the number of
persons in the organisation. A person going to get a higher position will vacate his present
position. Promotion will motivate employees to improve their performance so that they
can also get promotion.
(iii) Present Employees: The present employees of a concern are informed about likely
vacant positions. The employees recommend their relations or persons intimately known
to them. Management is relieved of looking out prospective candidates. The persons
recommended by the employees may be generally suitable for the jobs because they know
the requirements of various positions. The existing employees take full responsibility of
those recommended by them and also ensure of their proper behaviour and performance.
Benefits/uses of internal sources
a. It improves the morale of employees.
b. The employer is in a better position to evaluate those presently employed than
outside candidates.
c. It promotes loyalty among employees, it gives them a sense of job security.
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 d. They are tried people and can be relied upon.
e. It is less costly than going outside to recruit.
(B) External Sources:
(i) Advertisement: It is a method of recruitment frequently used for skilled workers,
clerical and higher staff. Advertisement can be given in newspapers and professional
journals. These advertisements attract applicants in large number of highly variable
quality.
(ii) 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. In the past, employers
used to turn to these agencies only as a last resort. The job-seekers and job-givers are
brought into contact by the employment exchanges.
(iii) Schools, Colleges and Universities: Direct recruitment from educational
institutions for certain jobs (i.e. placement) which require technical or professional
qualification has become a common practice. A close liaison between the company and
educational institutions helps in getting suitable candidates. The students are spotted
during the course of their studies. Junior level executives or managerial trainees may be
recruited in this way.
(iv) 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. In certain cases rewards may also be given if candidates recommended by
them are actually selected by the company.
(v) 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.
(vi) 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.
(vii) Central Application File: 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.
(viii) 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.
(ix) Labour Contractors: This method of recruitment is still prevalent in India for hiring
unskilled and semi-skilled workers in brick klin 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.
(x) 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 their record is good.
Benefits/uses of external sources:
a. Fresh talent and skill come into the organization.
b. New employees may try to change old habits.
c. New employees may be selected at the latest terms and conditions of the organization.
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 d. Since employees are recruited from a large market, the best selection can be made.
e. External sources provide the requisite type of personnel having the required skill and
standard.
Q24. What are the various steps involved Selection Process. Explain with the help
of a suitable example.
Ans. Selection is the process in which candidates for employment are divided into two
classes those who are to be offered employment and those who are not. Selection means
a process by which qualified personnel may be chosen from applicants offering their
services to the organization for employment. The basic purpose is to choose the individual
who can most successfully perform the job, from the pool of qualified candidates.
Selection is usually a series of hurdles or steps. Each one must be successfully cleared
before the applicant proceeds to the next.
(i) Reception – A company is known by the people it employs. Therefore a company must
create a favourable impression at the initial reception stage. The hiring team must extend
help towards the new recruit in a friendly way. All employment opportunities must be
presented honestly and clearly to all candidates.
(ii) Screening Interview – An initial screening interview is done to cut the costs of hiring
by letting only suitable candidates go through further selection process. A junior executive
screens out applicants against norms such as age, education, experience, pay
expectations, aptitude, location choice etc. If the hiring team finds a suitable candidate a
prescribed application form is provided to the applicant to fill and submit.
(iii) Application Blank – An application blank is a common method to collect information
on various aspects of the applicant`s academics, social background, work background,
demographics and references. Contents of an Application Blank –
Personal Data
Marital Data
Physical Data
Education Data
Employment Data
Extra-curricular Activities
References
(iv) Selection Testing – Selection testing is performed to analyse the applicant`s
behaviour, performance and aptitude. Tests provide a systematic basis for comparison and
selection. Different types of tests include intelligence test, aptitude test, personality test,
achievement test, integrity test, graphology test, assessment centre & polygraph test.
(v) Selection Interview – It is an oral examination of candidates for employment. Types
of Interviews are non directive Interview, directive interview, situational interview,
behavioural interview, stress interview, panel interview. Process of interview involves
preparation, reception, information exchange, termination and evaluation.
(vi) Medical Examination – Some jobs require physical qualities like clear vision, acute
hearing, stamina etc. A medical examination is conducted to check – Whether the
applicant is medically suitable for the job, Any health problems that may interfere with the
efficiency or future attendance of applicant For Bad health, drug abuse, that the
applicant`s health is in accordance with standards and requirements of the organization
(vii) Reference Check – The Applicants previous employer may provide useful and
reliable information about the applicant. Therefore the personnel department conducts
background checks of the applicant and references provided by them. It may be done
through a telephone call or a mail.
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 (viii) Hiring Decision – The line manager makes the final hiring decision. There must be
a good understanding between the line manager and the HR department so that the best
candidate is selected. The successful candidate is given a job offer followed by an
appointment letter.
(ix) Placement – After completion of all the formalities the recruit is placed on the job on
probationary basis. The probation period may range from two months to two years during
which the recruit is observed keenly. After the completion of the probation period the
recruit becomes the permanent part of the organization.
Q25. Discuss the various types of interviews and the various steps in interview
process.
Ans. The various types of interviews are as follows:
(i) Structured Interview: Here, every single detail of the interview is decided in advance.
The questions to be asked, the order in which the questions will be asked, the time given
to each candidate, the information to be collected from each candidate, etc. is all decided
in advance. Structured interview is also called Standardised, Patterned, Directed or Guided
interview. Structured interviews are preplanned. They are accurate and precise. All the
interviews will be uniform (same). Therefore, there will be consistency and minimum bias
in structured interviews.
(ii) Unstructured Interview: This interview is not planned in detail. Hence it is also called
as Non-Directed interview. The question to be asked, the information to be collected from
the candidates, etc. are not decided in advance. These interviews are non-planned and
therefore, more flexible. Candidates are more relaxed in such interviews. They are
encouraged to express themselves about different subjects, based on their expectations,
motivations, background, interests, etc. Here the interviewer can make a better judgment
of the candidate's personality, potentials, strengths and weaknesses. However, if the
interviewer is not efficient then the discussions will lose direction and the interview will be
a waste of time and effort.
(iii) Group Interview: Here, all the candidates or small groups of candidates are
interviewed together. The time of the interviewer is saved. A group interview is similar to a
group discussion. A topic is given to the group, and they are asked to discuss it. The
interviewer carefully watches the candidates. He tries to find out which candidate
influences others, who clarifies issues, who summarises the discussion, who speaks
effectively, etc. He tries to judge the behaviour of each candidate in a group situation.
(iv)Exit Interview: When an employee leaves the company, he is interviewed either by his
immediate superior or by the HRD manager. This interview is called an exit interview. Exit
interview is taken to find out why the employee is leaving the company. Sometimes, the
employee may be asked to withdraw his resignation by providing some incentives. Exit
interviews are taken to create a good image of the company in the minds of the
employees who are leaving the company. They help the company to make proper HRD
policies, to create a favourable work environment, to create employee loyalty and to
reduce labour turnover.
(v) Depth Interview: This is a semi-structured interview. The candidate has to give
detailed information about his background, special interest, etc. He also has to give
detailed information about his subject. Depth interview tries to find out if the candidate is
an expert in his subject or not. Here, the interviewer must have a good understanding of
human behaviour.
(vi) Stress Interview: The purpose of this interview is to find out how the candidate
behaves in a stressful situation. That is, whether the candidate gets angry or gets confused
or gets frightened or gets nervous or remains cool in a stressful situation. The candidate
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 who keeps his cool in a stressful situation is selected for the stressful job. Here, the
interviewer tries to create a stressful situation during the interview. This is done purposely
by asking the candidate rapid questions, criticising his answers, interrupting him
repeatedly, etc.
(vii) Individual Interview: This is a 'One-To-One' Interview. It is a verbal and visual
interaction between two people, the interviewer and the candidate, for a particular
purpose. The purpose of this interview is to match the candidate with the job. It is a two
way communication.
(viii) Informal Interview: Informal interview is an oral interview which can be arranged
at any place. Different questions are asked to collect the required information from the
candidate. Specific rigid procedure is not followed. It is a friendly interview.
(ix) Formal Interview: Formal interview is held in a more formal atmosphere. The
interviewer asks pre-planned questions. Formal interview is also called planned interview.
(x) Panel Interview: Panel means a selection committee or interview committee that is
appointed for interviewing the candidates. The panel may include three or five members.
They ask questions to the candidates about different aspects. They give marks to each
candidate. The final decision will be taken by all members collectively by rating the
candidates. Panel interview is always better than an interview by one interviewer because
in a panel interview, collective judgment is used for selecting suitable candidates.
Steps in interview process:
(i) The shortlist: The first step in the interview process is to get shortlisted for interview.
This may involve sending a tailored CV and cover letter in response to an advertised
position or going through an online application process. In some cases there may be
headhunted or called to interview on the basis of a strong referral.
(ii) The Screening Interview: Many companies now have screening interview to assess
whether the candidate possess the qualifications and general aptitude to do the job. This
may be carried out over the phone or in person, usually with a recruitment agency or an in-
house recruiter. The main function of the screening interview is to narrow down the number of
candidates to be called for First round Interviews.
(iii) The First Round Interview: This is often the first time that candidate will meet his
potential employer for the first time. Their objective is to assess whether the candidate
possess the skills, aptitude and experience to do the job. They will also attempt to
ascertain whether he can do the job, are willing to do the job and how he will fit in with the
organisation.
(iv) The Second Round Interview: The second round interview is normally where the
candidate get to meet different managers in the organisation. The most senior hirer from
the first round will often be attendance in the second round to offer continuity to the
process. The interviewer will normally attempt to delve deeper into particular interesting
items of interest from the First Round Interview. The key to the second round interview is
not top fear repetition and to re-iterate and re-tell compelling stories emphasising
candidate‘s Unique Selling Points.
(v) The Third Round Interview: Some companies may call the candidate back for a third
round interview in order to to be as close to 100% sure as possible that they are making
the correct hiring decision. Again the personalities may change for the third round and
candidate may even be introduced to co-workers for the first time. By the third round he
will be expected to possess a lot more knowledge about the company than displayed in
the first and second rounds. It is important to showcase this extensive research to prove to
the interview panel that the candidate has done his homework.
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 (vi) The Job Offer and Background Check: The final phase in the process is usually a
job offer contingent on candidate‘s referees giving him a good reference and perhaps the
candidate himself providing scripts/copies of his relevant qualifications. For some
positions and companies employers may insist on a background check to ensure the
candidate is who he says in CV or that he has no criminal convictions.
Q26. Describe the process involved in conducting Job analysis. Describe Methods
of Job Analysis.
Ans. Job analysis is a procedure to determine the duties and responsibilities, nature of
the jobs and finally to decide qualifications, skills and knowledge to be required for an
employee to perform particular job. Job analysis helps to understand what tasks are
important and how they are carried on. Job analysis forms basis for later HR activities such
as developing effective training program, selection of employees, setting up of
performance standards and assessment of employees ( performance appraisal)and
employee remuneration system or compensation plan.
Steps in job analysis:
Step 1: Collection of Background Information: The information can be reviewed from
the background information such as organization charts, which tells us how the job in
question relates to the other jobs and where they fit in an organization the structure; class
specification, which describes the general requirements of class of job to which the job
under analysis belongs; job description, which provides a starting point from which to
build the revised job description.
Step 2: Selection of Representative Position to be Analysed: Since the analysis of
job is time consuming, flow representative positions should be analysed.
Step 3: Collection of Job Analysis Data: Job data on features of the job, required
employee qualifications and requirements should be collected from the employees who
actually perform a job.
Step 4: Developing a Job Description: The information collected is to be developed in
the form of a job description. This is written statement that describes the main features of
the job, as well the qualifications/activities which the job holder must possess.
Step 5: Developing a Job Specification: The last step is to convert Job Description into
Job Specifications i.e., to specifically mention what personal qualities, traits, skills and
background is necessary for getting the job done.
Job Analysis can be classified into two broad categories:
(i)Job Description (ii)Job Specification.
(i) Job description: Job description is a written statement explaining the contents and
essential needs of a job and a summary of the duties to be performed. It describes ‗jobs‘
not the ‗job holders‘. It defines the scope of job activities, major responsibilities and
positioning of the job in the organization.
Advantages of job description:
i. It helps in the development of job specification.
ii. It helps in the orientation to new employees.
iii. It is useful in developing performance standard.
iv. It can be used for job evaluation, wage and salary administration techniques.
v. It helps in job grading and classification.
vi. It helps in defining and outlining promotional steps.
Disadvantages of job description:
i. Job descriptions are not the perfect reflections of the job.
ii. Jobs tend to be dynamic, not static and a job description can quickly get
outdated.
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 (ii) Job specification: Job specification is a statement of the minimum acceptable
human qualities necessary to perform a job satisfactory. Job specifications translate the
job description into terms of the human qualifications which are required for a successful
performance of a job. It tells what kind of person to recruit and for what qualities that
person should be tested.
Advantages of job specification:
i. It is helpful in preliminary screening in the selection procedure.
ii. It helps in giving due justification to each job.
iii. It also helps in designing training and development programmes.
iv. It helps the supervisors for counseling and monitoring performance of
employees.
v. It helps in job evaluation.
vi. It helps the management to take decisions regarding promotion, transfers and
giving extra benefits to the employees.
Disadvantages of job specification:
i. Preparing a correct and complete job specification is difficult as compared with
preparing a correct job description.
ii. There is always considerable disagreement concerning the human requirement
for work.
iii. There is a difference of opinion on whether a requirement should be
‗mandatory‘ or ‗desirable‘.
Methods/ Techniques for Job Analysis
(i) Personal Observation: Direct observation is especially useful in jobs that consist
primarily of observable physical ability, like the jobs of draftsman, mechanic, spinner or
weaver. A trained observer observes a worker, recording what the worker does, how the
work is done, and how long it takes. There are two types of observation:
(a) Continuous observation involves observing a job over a given period of time.
(b) Sampling involves observing several incumbents over random, relatively short periods
of time. Observation is a simple and frequently used method of job analysis.
(ii) Questionnaires: Properly drafted questionnaires are sent out to job-holders for
completion and are returned to supervisors. The information received is often unorganized
and incoherent. The idea in issuing questionnaire is to elicit the necessary informati on
from job holders so that any error may first be discussed with the employee and after due
corrections, may be submitted to the job analyst. There are two types of questionnaires:
The structured questionnaire uses a standardized list of work activities, called a task
inventory that job incumbents or supervisors may identify as related to the job. In addition,
the respondent may also identify additional information such as how much time is spent
on the task, the amount of supervision required, and/or the expertise required. The open-
ended questionnaire asks the job incumbent to describe the work in his or her own words.
(iii) Maintenance of Log Records: The employee maintains daily records of duties he
performs, marking the time at which each task is started and finished. It is a time
consuming process and moreover it does not give desirable information on supervisor
relationship, the equipment used and working conditions.
(iv) Personal Interviews: May be held by the analysts with the employee and answer to
relevant questions may be recorded. The method is time-consuming and costly. A trained
job analyst interviews a job incumbent, usually utilizing a standardized format. Sometimes
more than one worker are interviewed, and the results are aggregated. Another variation is
the group interview, where several incumbents are interviewed.
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 (v) Critical Incident: Behaviorally based critical incidents are used to describe work, and
a job analyst determines the degree of each behavior that is present or absent in the job.
(vi)Diary: The job incumbent records activities and tasks in a log or diary as they are
performed.
(vii) Checklist: A worker or supervisor checks items on a standardized task inventory that
apply to the job. Checklists may be custom-made or purchased from an outside vendor.
(viii) Technical Conference: Several experts (often called "subject matter experts") on
the job collaborate to provide information about the work performed. A job analyst
facilitates the process and prepares the job description based on the consensus of the
technical experts.
Q27.Describe the process involved in conducting Job evaluation along with its
objectives and methods.
Ans. Job evaluation is a process of determining the relative worth of a job. It is a process
which is helpful even for framing compensation plans by the personnel manager. This is
the process of establishing the value or worth of jobs in a job hierarchy. It attempts to
compare the relative intrinsic value or worth of jobs within an organisation. Thus, job
evaluation is a comparative process.
Objectives of job evaluation:
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:
(i) 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.
(ii) 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.
(iii) 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.
(iv) 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.
(v) External Evaluation Stage: In this stage, information is collected on market rates at
that time.
(vi) Design Stage: Having ascertained grades for jobs, salary structure is designed in this
stage.
(vii) Grading Stage: This is the stage in which different jobs are slotted into the salary
structure as designed in the preceding stage 6.
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 (viii) 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.
Methods of job evaluation:
1. NON- ANALYTICAL OR NON – QUANTITATIVE METHOD: It includes:-
i. Ranking method: According to this method, jobs are arranged from highest to
lowest, in order of their value or merit to the organization. Jobs can also be
arranged according to the relative difficulty in performing them. The jobs are
examined as a whole rather than on the basis of important factors in the job; the
job at the top of the list has the highest value and obviously the job at the bottom
of the list will have the lowest value.
ii. Job-classification method: According to this method, a predetermined number
of job groups or job classes are established and jobs are assigned to these
classifications. This method places groups of jobs into job classes or job grades.
Separate classes may include office, clerical, managerial, personnel, etc. The
system is very easy to understand and acceptable to almost all employees without
hesitation. One strong point in favour of the method is that it takes into account
all the factors that a job comprises
2. ANALYTICAL OR QUANTITATIVE METHOD: It includes:-
i. Point ranking method: In this method jobs are expressed in terms of key
factors. Points are assigned to each factor after prioritizing each factor in order of
importance. The points are summed up to determine the wage rate for the job.
Jobs with similar point totals are placed in similar pay grades. Once the worth of a
job in terms of total points is expressed, the points are converted into money
values keeping in view the hourly/daily wage rates. A wage survey is usually
undertaken to collect wage rates of certain key jobs in the organization.
ii. Factor comparison method: Under this method, instead of ranking complete
jobs, each job is ranked according to a series of factors. These factors include
mental effort, physical effort, skill needed, responsibility, supervisory
responsibility, working conditions and other such factors. Pay will be assigned in
this method by comparing the weights of the factors required for each job, i.e.,
the present wages paid for key jobs may be divided among the factors weighted
by importance. Wages are assigned to the job in comparison to its ranking on
each job factor.

SHORT QUESTIONS (2 Marks)

Q1. What do you understand by the term fringe benefits?
Ans. Fringe benefits are benefits provided by an employer to an employee, independent
contractor or partner, some of which are tax-exempt when certain conditions are met.
Recipients of taxable fringe benefits have to include the fair market value of the benefit in
their taxable income for the year. Fringe benefits commonly include health
insurance, group-term life insurance coverage, educational assistance, childcare and
assistance reimbursement, cafeteria plans, employee discounts, employee stock options,
personal use of a company-owned vehicle and others. Whether a fringe benefit is tax-
exempt depends on the type and, in some cases, the value of the benefit. By default, all
fringe benefits are taxable unless they are specifically named as being tax-exempt.
Q2. Explain the term employee induction.
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 Ans. An induction programme is an important process for bringing staff into an
organisation. It provides an introduction to the working environment and the set-up of the
employee within the organisation. The process will cover the employer and employee
rights and the terms and conditions of employment. As a priority the induction
programme must cover any legal and compliance requirements for working at the
company and pay attention to the health and safety of the new employee. Induction of
Employee is the first step towards gaining an employees' commitment, Induction is aimed
at introducing the job and organization to the recruit and him or her to the organization.
Induction involves orientation and training of the employee in the organizational culture,
and showing how he or she is interconnected to (and interdependent on) everyone else in
the organization.
Q3. Define the Industrial Dispute.
Ans. Industrial dispute means any dispute or difference between employers and
employers or between employers and workmen or between workmen and workmen, which
is connected with the employment or non-employment or the terms of employment or
with the conditions of labour of any person‖ Industrial disputes are of symptoms of
industrial unrest in the same way that boils are symptoms of a disordered body. Whene ver
an industrial dispute occurs, both management and workers try to pressurize each other.
The management may resort to lock-out and the workers may resort to strike, gherao,
picketing, etc.
Q5. What is Job analysis?
Ans. Job analysis is a procedure to determine the duties and responsibilities, nature of the
jobs and finally to decide qualifications, skills and knowledge to be required for an
employee to perform particular job. Job analysis helps to understand what tasks are
important and how they are carried on. Job analysis forms basis for later HR activities such
as developing effective training program, selection of employees, setting up of
performance standards and assessment of employees ( performance appraisal)and
employee remuneration system or compensation plan.
Q6. What do you understand by performance appraisal system?
Ans. Performance Appraisal is the systematic evaluation of the performance of employees
and to understand the abilities of a person for further growth and development.
Performance appraisal is generally done in systematic ways which are as follows:
(i) The supervisors measure the pay of employees and compare it with targets and
plans.
(ii) The supervisor analyses the factors behind work performances of employees.
(iii) The employers are in position to guide the employees for a better performance.
Q7. What is expatriate?
Ans. Expatriate is a person who has citizenship in at least one country, but who is living
in another country. Most expatriates only stay in the foreign country for a certain period of
time, and plan to return to their home country eventually, although there are some who
never return to their country of citizenship. In common usage, the term often refers to
professionals or skilled workers sent abroad by their employers, who can be companies,
governments, or non-governmental organisations. Effectively migrant workers, they
usually earn more than they would at home, and more than local employees. However, the
term 'expatriate' is also used for retirees and others who have chosen to live outside their
native country.
Q8. Define Strategic HRM.
Ans. Strategic human resource management is the practice of attracting, developing,
rewarding, and retaining employees for the benefit of both the employees as individuals
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 and the organization as a whole. HR departments that practice strategic human resource
management do not work independently within a silo; they interact with other
departments within an organization in order to understand their goals and then create
strategies that align with those objectives, as well as those of the organization. As a result,
the goals of a human resource department reflect and support the goals of the rest of the
organization. Strategic HRM is seen as a partner in organizational success, as opposed to
a necessity for legal compliance or compensation. Strategic HRM utilizes the talent and
opportunity within the human resources department to make other departments stronger
and more effective.
Q9. Define job enlargement.
Ans. Job enlargement is a job design technique wherein there is an increase in the
number of tasks associated with a certain job. In other words, it means increasing the
scope of one‘s duties and responsibilities. The increase in scope is quantitative in nature
and not qualitative and at the same level. Job enlargement is a horizontal restructuring
method that aims at increase in the workforce flexibility and at the same time reducing
monotony that may creep up over a period of time. It is also known as horizontal loading
in that the responsibilities increase at the same level and not vertically.
Q10.What is human resource planning?
Ans. The Human Resource Planning is a process of forecasting the organization‘s
demand for and supply of manpower needs in the near future.
It is used by organisations to ensure that they have the right number and the right kind of
people at the right place and at the right time. Where this process is carried out properly,
it brings maximum long-run benefits to both the
organization and the individual employee. It is also called manpower planning/ personnel
planning/ employment planning. It is only after Human Resource Planning that the Human
Resource department can initiate the recruitment and selection process. Therefore Human
Resource Planning is a sub-system of organisational planning.
Q11. Differentiate between personnel and human resource management.
Ans.
Basis for Personnel Management Human Resource Management
comparison
1. Meaning The aspect of management that The branch of management
is concerned with the work force that focuses on the most
and their relationship with the effective use of the manpower
entity is known as Personnel
Management.
of an entity, to achieve the
organizational goals is known
as Human Resource
Management.
2. Approach Traditional Modern
3.Treatment Machine or Tools Asset
of manpower
4.Type of Routine function Strategic function
function
5. Basis of Job evaluation Performance evaluation
Pay

Q12. Differentiate between recruitment and selection.

Ans.
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 Basis Recruitment Selection

Meaning It is an activity of establishing It is a process of picking up more

contact between employers and competent and suitable
applicants. employees.

Objective It encourages large number of It attempts at rejecting unsuitable

Candidates for a job. candidates.

Process It is a simple process. It is a complicated process.

Hurdles The candidates have not to cross Many hurdles have to be crossed.
over many hurdles.

Approach It is a positive approach. It is a negative approach.

Sequence It proceeds selection. It follows recruitment.

Economy It is an economical method. It is an expensive method.

Time Less time is required. More time is required.

Consuming

Q13. What is induction?

Ans. After selection of employees, the first step is to orient them to organisational life.
Induction is the process for welcoming newly recruited employees and supporting them to
adjust to their new roles and working environments Induction or orientation programme
of an organisation is a process to guide and counsel the employees to familiarise them
with the job and the organisation. This process helps an organisation to clarify the terms
and conditions of employment, specific job requirements and also to inculcate confidence
in the minds of the new entrants.
Q14. What is quality of work life?
Ans. QWL is a process of work organisations which enable its members at all levels to
actively, participate in shaping the organizations environment, methods and outcomes.
This value based process is aimed towards meeting the twin goals of enhanced
effectiveness of organisations and improved quality of life at work for employees. Quality
of work life (QWL) refers to the favourableness or unfavourableness of a job environment
for the people working in an organisation. The period of scientific management which
focused solely on specialisation and efficiency, has undergone a revolutionary change. The
traditional management (like scientific management) gave inadequate attention to human
values. In the present scenario, needs and aspirations of the employees are changing.
Employers are now redesigning jobs for better QWL.
Q15. What is career planning?
Ans. Career planning refers to the planning done by an individual in terms of making a career
choice, advancing/growing in the career chosen or making a career shift. Career
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 planning involves a very important step of self-assessment. Self-assessment is necessary
to understand one‘s capabilities and drawbacks. The various career options should be
explored in detail to find a fit between one‘s abilities and the opportunities provided by a
career option. It involves continuous learning and improvement to build and growth in the
chosen career path.
Q16. Define reengineering.
Ans. Reengineering is systematic starting over and reinventing the way a firm, or a
business process, gets its work done. Defined by Michael Hammer and James Champy
reengineering is fundamental rethinking and radical redesign of business process to
achieve dramatic improvements in critical measures of performance such as cost, service,
and speed. Business process reengineering (BPR) involves the examination and redesign
of business processes and workflows in your organization. A business process is a set of
related work activities that are performed by employees to achieve business goals.
Basically, a business process is the way we perform our work and business process
reengineering is the process of changing the way we do our work so we do it better to
accomplish the goals of our business.
Q17. Define work life balance.
Ans. Work–life balance is a concept including proper prioritizing between "work"
(career and Ambition) and lifestyle (health, pleasure, leisure, family and spiritual
development/ meditation). This is related to the idea of lifestyle choice. A comfortable
state of equilibrium achieved between an employee's primary priorities of their
employment position and their private lifestyle. It essentially refers to the level of
prioritisation between personal and professional activities in an individual‘s life and the
level to which activities related to their job are present in the home.
Q18. Define workforce diversity.
Ans. Workforce diversity is a workforce consisting of a broad mix of workers from different
racial and ethnic background of different ages and genders, and of different domestic and
national cultures. It is concerned with similarities and differences among employees in
terms of age, cultural background, physical abilities and disabilities, race, religion, sex,
and sexual orientation.
Q19. What is competitive advantage?
Ans. Competitive advantages are conditions that allow a company or country to produce a
good or service at a lower price or in a more desirable fashion for customers. These
conditions allow the productive entity to generate more sales or superior margins than its
competition. Competitive advantages are attributed to a variety of factors, including cost
structure, brand, quality of product offerings, distribution network, intellectual property
and customer support.
Q20. What do you mean by HRD Matrix?
Ans. HRD Matrix identifies the interrelationships between HRD instruments, processes,
outcomes and organisational effectiveness. HRD instruments include performance
appraisal, counseling, role analysis, potential development, training, reward system, job
enrichment, etc. These mechanisms may vary depending upon the size of the
organisation, the commitment of the top management, the environment, the culture and
climate, the perception of the people, technology used, methods employed by the
competitors, etc. It is in the interest of the organisation that the top management should
give due weightage to these factors to keep the workforce motivated all the time providing
challenging jobs and designing career planning and suitable compensation packages so
that trained employees may not leave the organisation.
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