HUMAN RESOUCE MANAGEMENT

1. Discuss the evolution of HRM

a. The evolution of HRM can be traced back to Kautilya Artha Shastra where he
recommends government to provide a proper procedure for regulating employee
and employee relation. In the medieval times there were examples of kings like
Allaudin Khilji who regulated the market and charged fixed prices and provided
fixed salaries to their people. This was done to fight inflation and provide a
decent standard of living.
b. During the pre independence period of 1920 the trade union emerged. Many
authors who have given the history of HRM say that HRM started because of
trade union and the First World War.
c. The Royal commission in 1931 recommended the appointment of a labour
welfare officer to look into the grievances of workers. The factory act of 1942
made it compulsory to appoint a labour welfare officer if the factory had 500 or
more than 500 workers. The international institute of personnel management and
national institute of labour management were set up to look into problems faced
by workers to provide solutions to them.
d. The Second World War created awareness regarding workers rights and
introduction of new technology to help workers. Now it was a combination of
welfare, industrial relation, administration together it was called personnel
management. With the second 5 year plan, heavy industries started and
professional management became important. In the 70‘s the focus was on
efficiency of labour wile in the 80‘s the focus was on new technology, making it
necessary for new rules and regulations.
e. In the 90‘s the emphasis was on human values and development of people and
with liberalization and changing type of working people became more and more
important there by leading to HRM which is an advancement of personnel
management.

2. What are the future Challenges before managers?

a. Increasing Size of Workforce
b. Increase in Education Level
c. Technological Advances
d. Changes in Political Environment
e. Increasing Aspirations of Employees
f. Changing Psychosocial System
g. Computerized Information System
h. Mobility of Professional Personnel
i. Changes in Legal Environment
j. Management of Human Relations
3. Role of HR
 a. Administrative Role of HR
b. Operational and Employee Advocate Role for HR
c. Strategic Role for HR

4. Define Human Resource Accounting. Explain the issues and concepts of HRA.
HRA involves measuring the costs incurred by business firms and other
organizations to recruit, select, hire, train and develop human assets.
Issues:
a. HRA is based on the assumption that the employees are going to remain with the
organization for a specified period. However, this is not true in real scenario as
employee mobility is very high.
b. Many times, if the valuation is not done correctly or the results of the valuation
are not used properly, HRA may lead to the dehumanization in the organization.
c. There is no scientific and clear guideline for estimation of cost and values of
human resources of an organization.
d. There are no universal financial standards for HRA. Every organization has its
own standards for it.
e. The behavior of human being is uncertain. So calculating its value is also
uncertain.

5. Explain the steps involved in HRA.

Step 1 : HRA Objectives
Step 2 : Developing HRA Measurements -
Step 3 : Developing HR Accounting Database
Step 4 : Pilot Testing the System
Step 5 : Implementing the Human Resource Accounting System
6. Computer Application in HRM / HRIS
Human Resource Information System is a systematic way of storing data and
information for each individual employee to aid planning, decision making and
submitting of returns and reports to the external agencies.

• Inception Of Idea: The originator of the idea should prepare a preliminary report
showing the need. This preliminary report should be designed to get
management's attention.
• Feasibility Study: The feasibility study evaluates the present system and details
the benefits of Human Resource Information System. It evaluates the costs and
benefits and intangible savings, such as increased accuracy and fewer errors.
• Selecting A Project Team: Once the feasibility study has been accepted and the
resources allocated, a project team should be selected. The project team should
consist representatives from both management information systems and payrolls.
• Defining The Requirements: A statement of requirements specifies in detail
exactly what the Human Resource Information System will do. How users collect
and prepare data, obtain approvals, complete forms, retrieve data, and perform
other no technical tasks associated with HRIS use.
• Vendor Analysis: What hardware and software are available that will best meet
the organizations needs for the lowest price. This analysis will determine
whether to purchase an "off-the-shelf" package or develop the system internally.
• Package Contract Negotiation: after a vendor has been selected, the contract
must be negotiated. The contract stipulates the vendors responsibilities with
regard to software, installation service, maintenance, training, and
documentation.
• Training: Training usually begins as soon as possible after the contract has been
signed. First, the members of the project team are trained and HR representative
will train managers from other departments.
• Tailoring The System: This step involves making changes to the system to best fit
the needs of the organization. A general rule of thumb is not to modify the
vendor's package, because modifications frequently cause problems.
 • Collecting The Data: Prior to start-up of the system, data must be collected and
entered into the system.
• Testing The System: Once the system has been tailored to the organization need
and the data entered, a period of testing follows to verify the output of the HRIS
for accuracy.
• Starting Up: Start-up begins when all data and current actions are put into the
system and reports are produced. It is wise to attempt start-up during a lull
period so that as much time as possible can be devoted to the HRIS.
• Running In Parallel: It is desirable to run the new system in parallel with the old
system for a period of time.
• Maintenance: It normally takes several weeks or even months for the HR people
to feel comfortable with the new system. During this stabilization period, any
remaining errors and adjustments should be handled.
• Evaluate: After HRIS has been in place for a reasonable length of time, the
system should be evaluated. Is the HRIS right for the organization, and is it being
properly used?

7. Define selection test. Explain the different selection tests

Selection testing is a screening process that hiring managers use to judge an
applicant's fit for a certain job or company. A selection test is a standardized test that
the hiring manager gives to all applicants.
● Aptitude tests
● Personality tests
● Job Knowledge Test
● Integrity Test
● Intelligence Test

8. Explain the different techniques of Forecasting HR needs

Techniques
a. Delphi technique
b. Nominal technique
 c. Brainstorming
d. Ratio Analysis
e. Trend Analysis

9. Explain process of HRP

10. Explain the internal and external sources of recruitment.

Internal Recruitment
a. Transfers
b. Promotions
c. Re-employment of ex-employees
d. Job Posting
e. Employee Referrals
External Recruitment
a. Employment at Factory Level / Walk-in / Unsolicited applicants
b. Advertisement
c. Employment Exchanges
 d. Employment Agencies
e. Educational Institutions
f. Recommendations
g. Labour Contractors

11. Discuss the various sources of recruitment.

(Same as Above)

12. Explain the selection procedure of an organization.

13. Discuss few application of knowledge management

a. Communities of Practice (Groups of people who share an interest)
b. Methodologies (Policies, rules, techniques, and procedures that prescribe how
work is to be performed)
c. Knowledge Creation
d. Knowledge Capture
e. Knowledge Reuse
f. Knowledge Valuation
g. Lessons Learned (Explaining what an individual or team has learned as a result
of their experience, using documents, presentations, discussions, and

recordings )
 h. Collaboration
i. Content Management (Creating, managing, distributing, publishing, and
retrieving structured information)

14. Discuss the various area of non-financial compensation

Non Financial Benefit

● Flexible working time

● Paid Holidays
● Health Insurance
● Telecommuting Options
● Health club memberships
● Onsite gyms
● Regular Health Screenings
● Employee cafeterias with subsidized or free meals
● Holiday Trips

Financial Benefit

● Salary or Wage
● Commissions
● Overtime Pay
● Bonuses, Profit Sharing, Merit Pay
● Stock Options
● Retirement Benefits
15. Differentiate selection from recruitment

Recruitment Selection

Recruitment is a process of searching for Selection adopts the process through which
prospective employees and stimulating and more and more candidates are rejected and
encouraging them to apply for jobs in an fewer candidates are selected or sometimes
organisation. even not a single candidate is selected.

It is often termed positive as is It tends to be negative because it rejects a good

stimulates people to apply for jobs
The basic objective of recruitment is to attract
maximum number of candidates so that more
options are available.
Recruitment techniques are not very intensive,
and not require high skills.
The outcome of recruitment is application pool
which becomes input for selection process.
number of those who apply, leaving only the
best to be hired.
The basic objective of selection is to choose
best out of the available candidates.
Selection process requires highly specialized
techniques.
The outcome of selection process is in the form
of finalising candidates who will be offered
jobs.

16. Define motivation. Explain how process theories are useful to motivate
employees.
a. Operant conditioning states people do those things when rewarded and will
avoid when punished.
b. Reinforcement Theory
a. Positive Reinforcement
b. Negative Reinforcement
c. Non reinforcement
d. Punishment
c. Goal Setting Theory
17. What is compensation? Discuss the various incentive compensation plans.
Compensation refers to monetary payment given to an individual in exchange for
their services.
Various incentive compensation plans.
● Yearly bonuses
● Sales commissions
● Temporary wage increases
● Stock options
● Annual performance-based salary increases
● Retention bonus
● Referral bonus
● Profit-sharing bonus
Calculation of Incentive Schemes Bonus
● Halsey Plan (Actual Time * wage rate + 50% Time saved * wage rate)
● Rowan Plan (Actual Time * wage rate + Actual Time/Time Allotted * Time saved
* wage rate)

18. Discuss the steps involved in identifying the training needs

Step 1: Identify the Business Need
Step 2: Perform a Gap Analysis
a. HR records.
b. Individual interviews
c. Focus groups
d. Surveys, questionnaires and self-assessments
e. Observations
Step 3: Assess Training Options
Step 4: Report Training Needs and Recommend Training Plans
19. Discuss the various levels of evaluation of effectiveness of training
a. Kirkpatrick model
● Level 1: Reaction – The first step is to evaluate the learners’ reactions and
responses to the training.
● Level 2: Learning – The second step is to measure the knowledge and skills
learned during the training.
● Level 3: Behavior – Step three assesses the behavioral change (if any and to what
extent) due to the training.
● Level 4: Impact – The final step is to measure the training’s impact on business
goals and results.
b. The Phillips ROI Model
Return on investment Model:
ROI = Net Training Benefit / Cost of training* 100
c. Kaufman's Five Levels of Evaluation
● Satisfaction
● Change in Knowledge
● Change in Practice
● Change in Organization
● Return on Investment
● Impact on Society

20. Differentiate training & development. Explain the importance of on-the-job

training.
Training
Training focus on Job role
Aims at specific Job
It revolves around present need
Enhances knowledge on current job
Organization takes responsibility of
training
Development
Development focus on person
Focus on overall progression of the individual
Development activities are future oriented
Focus on career building
Individuals are held responsible for creating
and owning their development

Importance of On-the-Job Training

 ● Faster training with real experience
● Faster adaptation to a new job
● easy to set up
● Trainee can perform simple job tasks from the beginning
● Retain good employees
● Attract the right people
● Team building
● Knowledge management
● Reduced training Cost

21. Explain the process of executive development

22. Describe the process of career planning

a. Self-Assessment
b. Research on Careers and Opportunities
c. Set Career Objectives
d. Learn & Improve Skills
e. Preparation of CV/Resume
f. Job Search
g. Revise Career Goals

23. Discuss the purpose of job changes and purpose of transfers

Purpose of Job Change
 a. Disputes with teammates
b. Clashes with management
c. Higher learning curve
d. Brand name
e. Location constraint
f. Work timing
g. Unhealthy work environment
h. Overall growth and development
Purpose of Transfer
a. To Meet Organizational Needs
b. To Satisfy Employee Needs
c. To Better Utilize Employee
d. Make the Employee More Versatile:
e. To Adjust the Workforce
f. To Provide Relief
g. To Punish Employee

24. Discuss the pros and cons of promotion policy based on merit, seniority, and
merit cum seniority
a. Seniority Based
Merits
● Simple to understand and operate
● Satisfies the aspiration and morale of the employee
● Much more economical
● Known man of good performance rather than unknown outsider
Demerits
● Inadequacy of internal source
● Demotivation to competent employees
● No differentiation between competent and incompetent
● Not necessary that employees learn with length of service
● Change in technology
b. Merit Based
Merits
● Motivation to competent employees
● Maximum utilization of human resources in an organization
 ● Continuously encourages the employee to acquire
● Upliftment of morale
Demerits
● Judging of merit is difficult
● Not supported by trade union
● Subjective
● No sense of certainty
● Create dissatisfaction

25. Explain method of Performance Evaluation

26. Explain the steps to be taken to reduce the labour turnover.
a. Hire the right people
b. Offer competitive salaries
c. Closely monitor toxic employees
d. Reward and recognize employees
e. Offer flexibility
f. Prioritize work-life balance
g. Pay attention to employee engagement
h. Standardize performance reviews
i. Provide opportunities for development
j. Be Transparent

27. How can a grievance be resolved empathically?

● Create the system
● Acknowledge the grievance
● Investigate
● Hold the formal meeting
● Take your decision and act accordingly
● Appeal process
● Review the situation
● Uproot the main cause of grievance
28. What are the elements of effective Grievance Redressal system and why is it
necessary?
Elements

● Free to raise grievances without fear of prejudice or discrimination

● Privacy of employees
● Time limit of reporting
● Fairness and Transparency
● Timeframe of grievance Redressal
Necessity

● Organization Health
● Improve Mutual Understanding
● Improve morale
● Corrective Action
● Improve Employee Satisfaction
● Avoid Employee Frustrations
● Improve productivity