Human Resource Management

Terminal Questions
UNIT 1

Q. 1 What is human resources management? Discuss the scope of HRM.

➢ Human Resources Management (HRM) is the strategic approach to managing an
organization's most valuable asset: its people. It involves the effective and efficient
utilization of human resources to achieve the organization's goals and objectives
➢ A human resource manager has to build an effective workforce, handle the
expectations of the employees and ensure that they perform at their best. He or
she also has to take into account the firm’s responsibilities to the society that it
operates in.
We may classify the scope of HRM under the following heads:

HRM in personnel management – This is typically direct manpower management that involves
manpower planning, hiring (recruitment and selection), training and development, induction
and orientation, transfer, promotion, compensation, layoff and retrenchment, and employee
productivity. The overall objective is to ascertain individual growth, development and
effectiveness which indirectly contribute to organizational development.

HRM in employee welfare – This particular aspect of HRM deals with working conditions and
amenities at the workplace. This includes a wide array of responsibilities and services such as
safety services, health services, welfare funds, social security and medical services. It also covers
appointment of safety officers, making the environment conducive for working, eliminating
workplace hazards, support by top management, job safety, safeguarding machinery,
cleanliness, proper ventilation and lighting, sanitation, medical care, sickness benefits,
employment injury benefits, personal injury benefits, maternity benefits, unemployment
benefits and family benefits.

It also relates to supervision, employee counselling, establishing harmonious relationships with

employees, education and training. Employee welfare is about determining employees’ real
needs and fulfilling them with active participation of both the management and the employees.
HRM in industrial relations – Since employment relationship is a highly sensitive area, it needs
careful interactions with labour or employee unions, address their grievances and effectively
settle the disputes in order to maintain peace and harmony in the organization. Industrial
relations is the art and science of understanding the employment (union-management)
relations, joint consultations, disciplinary procedures, solving problems with mutual efforts,
understanding human behavior maintaining work relations, collective bargaining and
settlement of disputes.

Q.2 Explain the functions of HRM

Human resource management involves blending the traditional administrative functions along
with the changing concepts of employee welfare in the organization. Organizations now regard
employees as a precious resource and spend more efforts to retain them. The retention of
employees is dependent on how they are perceived and treated in the organization based on
their performance, abilities and skills.
➢ Human resource managers are involved right from identifying potential candidates
for jobs to their separation from the organization. They encourage communication
amongst the employees and also promote better employer – employee
relationship.
➢ Organizational performance depends directly on how efficiently and effectively the
HR department functions. It is the quality of the human resources available to the
organization that primarily determines the quality of the products and services
produced by the organization.
➢ The HR personnel are the key link between the top management and the
employees.
➢ The extent of activities carried out by the HR is dependent on the size and scope of
the organization, the nature of operations and the attitude of management
towards the employees.
➢ HRM functions can be broadly classified into the following two categories:
1. Managerial functions Planning, Organizing, Staffing, Directing, Controlling
2. Operative functions Employment, HR development, Compensation, Employee relations

Q.3 Discuss the main features of human relation approach. How does it differ from scientific
management?

Over the past several years, scientific management approach and the human relations approach
appeared and then disappeared too. However, the human resource approach has gained
prominence in recent times.
differences between the human relations approach and scientific management:
Human Relations Approach:
Focuses on the social aspect of work: The human relations approach recognizes that employees
are not just cogs in a machine, but rather individuals with social and emotional needs. This
approach emphasizes the importance of creating a positive work environment that fosters
collaboration, communication, and teamwork.
Emphasizes the importance of employee satisfaction and motivation: The human relations
approach recognizes that happy employees are more productive, and therefore places a strong
emphasis on creating a work environment that is supportive, engaging, and fulfilling.
Recognizes that happy employees are more productive: The human relations approach is based
on the idea that employees who feel valued and supported are more likely to be motivated,
engaged, and productive. By focusing on employee satisfaction, this approach aims to improve
overall productivity and performance.
Emphasizes communication, collaboration, and teamwork: The human relations approach
recognizes that effective communication, collaboration, and teamwork are essential for
achieving organizational goals. This approach emphasizes the importance of creating a culture
of openness, trust, and mutual respect.

Scientific Management:
Emphasizes efficiency and productivity: Scientific management is based on the idea that
efficiency and productivity can be improved by breaking down tasks into smaller, more
specialized components. This approach aims to optimize workflow by eliminating waste and
inefficiencies.
Breaks down tasks into smaller, more specialized components: Scientific management involves
breaking down complex tasks into smaller, more manageable components. By optimizing each
component for efficiency, this approach aims to improve overall productivity.
Uses time and motion studies to optimize efficiency and reduce waste: Scientific management
relies on time and motion studies to identify areas of waste and inefficiency. By carefully
analysing each step of a process, this approach aims to eliminate unnecessary steps and
maximize productivity.
Developed in the early 20th century (Taylorism): Scientific management was developed in the
early 20th century by Frederick Winslow Taylor. This approach was widely adopted by
manufacturers and other organizations seeking to improve efficiency and productivity.

Q.4 Briefly describe the different roles of HR professional in business.

Managing people is one of the biggest challenges for a manager. Few of the reasons are:
Individuals differ from each other in terms of their values, attitudes, beliefs and culture. This
leads to a very complex situation.
The stimulating and motivational factors might not be the same for all employees.
It is important to understand the individual needs of the employees and cater to those needs.
This involves taking up different roles by the HR. The specialist role of HR manager includes:

Let us now look into each of these roles in detail.

Service provider – Management needs to gather information such as market statistics, pay rates
and labour laws, and legislations from the market as well as from their competitors before
making decisions on various employee related issues.
Administrative expert – The administrative role involves recordkeeping and legal compliance.
The HR is responsible for maintaining all records of the employees relating to their employment
and also ensuringthe organisation complies to the statutory health and safety, employee
welfare measures.
Facilitator – They act as a facilitator when training and development actions are planned and
conducted, and when performance appraisals are done.

Consultant – While supervising the employees, managers face many problems. Their problems
may be due to lack of motivation, lack of training, job misfit and grievances relating to pay. They
should know how to smoothly resolve such problems.
Auditor – HR specialists are responsible for ensuring that all members of the management
perform their respective roles efficiently and also ensures that there is effective use of the
human resources of the organization.
Change agent – It is the HR that helps organizations to implement changes and help employees
adapt to changes. The HR is the first department that recognizes the changes in the external
environment and makes necessary changes within the organisation to help the organisation
adjust to the changes without any hitches. When the market is not favorable, the HR may be
busy with downsizing and when there are new prospects in future, the HR tries to ensure that
the employees are well trained to take full advantage of it.
Employee advocate – HR employees are the link between the top management and the
employees. The concerns of the employees are first reported to the HR personnel. They report
these issues to the top management and try to resolve the issues.

UNIT NO. 2

Q. 1 Discuss the concept of HRM in India.

Human Resource Management (HRM) in India is similar to HRM in other countries, but there
are some unique cultural, legal, and economic factors that shape HRM practices in India.
One of the key cultural factors that influences HRM in India is the importance of family and
social relationships. In Indian culture, relationships and connections are highly valued, and this
can impact recruitment and selection practices. For example, referrals from family or friends
may be given more weight than other factors when making hiring decisions.
Another important factor is the legal framework governing HRM in India. Indian labour laws are
complex and highly regulated, with strict rules governing issues such as minimum wage, working
hours, and employee benefits. Employers must comply with these laws to avoid legal penalties
and protect employee rights.
Economic factors also play a role in HRM in India. The country has a large and diverse workforce,
with significant variations in education, skills, and experience. This can make recruitment and
selection challenging, as employers must identify the right candidates for specific roles while
also considering issues such as language barriers and cultural differences
Despite these challenges, HRM in India is evolving rapidly to meet the changing needs of
organizations and employees. Many companies are adopting modern HRM practices such as
performance management systems, employee engagement programs, and talent development
initiatives to attract and retain top talent.
Overall, the concept of HRM in India recognizes the importance of managing human resources
effectively to drive organizational success. By taking into account the unique cultural, legal, and
economic factors that shape HRM practices in India, organizations can develop effective HRM
strategies that maximize employee performance and achieve organizational objectives

Q. 2 Discuss the impact of changing roles of human resource in India.

The role of HR has undergone several changes in India. From being considered as compliance
checking body, human resource managers are now being considered as strategic partners to the
organisation. They are involved in all the crucial business decisions made by the company. Their
role is not limited to designing the organisational structure to meet the changing market
demands, attracting high performing talent, evaluating performance, retaining top talent and
also ensuring that employees are motivated and engaged.
The roles that HR in India has to take up have increased. They are the change agents, counselors,
motivators, trainers and also the spoke man of the employees.

HRM challenges
One of the challenges HR managers faces is the issue of upgrading the skill set of employees
through training and development. Indian companies are recognising their responsibilities to
enhance the employee’s opportunity to develop skills and abilities for full performance within
the position and for career advancement.
The fast pace in which the global business environment is changing has kept HR managers in
India also on toes. Every little change in the business environment bring along with it subsequent
changes in the workforce. This has become a challenge for the HR personnel to handle several
complex issues such as attracting the right talent who meets international work standards,
designing work teams, creating faster communication patterns, creating innovative employee
recognition strategies and devising measures to ensure that the top-quality talent is retained.

Managing changes in technology is also one of the challenges that an HR of any organisation in
India faces. Technology is changing rapidly, and every day we are witnessing innovative
technological advancements. All organisations want to be technologically oriented. They want
their employees to aware of the changes and quickly adapt to them.

Developing Accountability: With the advent of Six Sigma methodologies, organizations have
lowered their tolerance levels for mistakes, errors and delays. It is a challenge which HRM in
India is facing like its global counterparts. It is not easy to train people to shoulder responsibility.

Managing workforce stress and employment relations: HR is the face of an organization. It

hires and fires employees and if the HR of an organization is not emphatic towards its workforce
it does not help in employment relations. This factor is fast becoming a challenge for HRM
especially in sectors like hospitality, IT and allied support services, media and entertainment.

Managing inter-functional conflict: Earlier it was the friction between different levels of an
organization and now the new emerging challenge for the HR is to manage inter-functional
conflict within an organization. With organizational restructuring becoming common in the past
few years, disputes and friction between different functions has been on the rise.

Managing workplace diversity: With globalization and India’s economy changing gears to
accelerate growth, organizations hire as well depend on a people from different countries,
cultures and ethnicity. To manage the diverse workforce who have fairly diverse physiological
and the psychological influences, is also a huge challenge for the HR in the emerging Indian
economy.

Q. 3 Discuss globalisation and its impact on HR.

A workforce that is knowledgeable and skilled at doing complex things keeps a company
competitive and attracts foreign investment. Well-trained workers attract global corporations,
which invest and provide employment opportunities to the workers, which in turn generate
additional training and experience.
Technology
The most important use of technology in HRM is in an organization’s Human Resource
Information system.
Trends in the nature of work
Technological and globalization trends are in turn producing changes in the nature of jobs and
work. Following are a few trends in the nature of work:
➢ Information technology and personal computers have allowed companies to
relocate operations to locations with lower wages.
➢ Increased use of part time and temporary workers.

A service society
➢ An enormous shift from manufacturing jobs to service jobs.
➢ For service jobs new types of knowledge workers and new HRM method to manage
them.

Knowledge work and human capital

➢ The distinguishing characteristics of companies today and tomorrow is the growing
emphasis on human capital–the knowledge, education, training skills and expertise
of a firm's workers.
➢ This growing emphasis on education and human capital reflects several social and
economic factors.
➢ Now companies are relying more on employee’s creativity and skills.

Other trends affecting HRM

➢ Equal employment opportunity laws that bar discrimination on the basis of race,
age, disability, religion, sex or national origin, have been passed.
➢ Virtually all managers are thus now legally bound to uncover and correct instances
of discrimination.
➢ Mandated health benefits, occupational safety and health requirements.
➢ Union-management relations.
➢ HR managers have to deal with all these legal constraints.

Workforce diversity
Diversity in the field of HRM can be defined as the situation that arises when employees differ
from each other in terms of age, gender, ethnicity, education, etc.
Managing diversity means establishing a heterogeneous workforce to perform to its potential
in an equitable work environment where no member or group of members has an advantage or
a disadvantage.
Young, skilful and knowledgeable employees are occupying positions of importance.
Organisations now cannot discriminate on the basis of age. They must listen to their experienced
employees, to draw from their expertise and initiate programmes that meet these needs.
At the same time companies have to understand and appreciate the changing values of the
young workers who join the company with lots of expectations.

UNIT NO. 3

Q.1 Define human resource planning. Discuss the need for human resource planning in an
organization.

Human Resource Planning (HRP) can be defined as the method of ensuring the right number of
qualified people, in the right job at the right time to bring the results in an efficient and effective
manner.

In simple words, HRP is understood as the process of forecasting an organisation’s future

demand for, and supply of, the right type of people in the right number. It is only after this that
the HR department can initiate the recruitment and selection process. HRP is a sub system in
the total organisational planning. Organisational planning includes managerial activities that set
the company objectives for the future and determines the appropriate means for achieving
those objectives.
The process of HRP starts with understanding the organisational objectives, and translating
them into a schedule of employee requirements over a period of time. The next step is to devise
plans to secure the right resource to meet these requirements.
In this unit, we will discuss the process involved in human resource planning and the need for
HRP. We will also study the HR forecasting technique and the factors to be considered for a
successful HRP.

HRP is a mandatory part of every organisation’s annual planning process. Every organisation
that plans for its business goals for the year also plans for how it will go about achieving them
and therein the planning for the human resource:

a. To carry on its work, each organisation needs competent staff with thenecessary
qualifications, skills, knowledge, work experience andaptitude for work.

b. Since employees exit the organisation both naturally (as a result ofsuperannuation)
and unnaturally (as a result of resignation), there is anon-going need for hiring
replacement staff to augment employee exit.Otherwise, work would be impacted.

c. In order to meet the need for more employees due to organizational growth and
expansion. This in turn calls for larger quantities of the same goods and services as
well as new goods. This growth could be rapid or gradual depending on the nature
 of the business, its competitors, its position in the market and the general
economy.

d. Often organisations might need to replace the nature of the present workforce as
a result of its changing needs, therefore the need to hire new set of employees. To
meet the challenge of the changed needs of technology/product/service
innovation the existing employees need tobe trained or new skill sets induced into
the organisation.

e. Manpower planning is also needed in order to identify an organisation’s need to

reduce its workforce. In situations where the organisation isfaced with severe
revenue and growth limitations it might need to plan well to manage how it will
reduce its workforce. Options such as redeployment and outplacement can be
planned for and executed properly.

Q.3 Describe the process of human resource planning.

The process of Human Resource Planning is one of the most critical, difficult and continuing
managerial functions which, according to the Tata Electric and Locomotive Company (now
known as Tata Motors), "embraces organisation development, management development,
career planning and succession planning."
'Manpower planning consists of projecting future manpower requirements and developing
manpower plans for the implementation of the projections.'

Objectives of the human resource planning are:

● to maintain the required quantity and quality of human resource requiredfor an even and
well-organised functioning of the organisation.
● to forecast the turnover/attrition rates.
● to plan to meet organisational human resource needs at the time ofexpansion or
diversification.

HRP may be rightly regarded as a multi-step process, including various issues such as:
● deciding goals or objectives.
● estimating future organisational structure and manpower requirements.
● auditing human resources both internally and externally.
● planning job requirements and job descriptions/person specifications.
● building a plan.
HRP, therefore is used for determining long term needs, rather than for momentary
replacement needs. It has to take into account the career planning for individual employees and
succession planning in the organisation.
Let us now go in to the detailed steps that are involved in the HR planning.

Steps in human resource planning

The basic steps of HRP include the following:

1.Considering the effect of organisational strategy and objectives ondifferent units of the
organisation in terms of the human resourcerequirement.
2.Forecasting the manpower requirements of the organisation by involvingthe line managers to
decide and finalise the human resource needs oftheir respective department. Forecasting may
be carried out usingmathematical projection tools or judgements.
3.Forecasting the quality and quantity of human resource required by eachdepartment/division.
4.Creating an inventory of present manpower resources.
5.Matching the current human resources position incumbents in theorganisation with the
numbers required in the future.
6.Developing an action plan to meet the future requirements in terms ofaddition or separation,
in a planned and phased manner. It involvesplanning the necessary programmes of recruitment,
selection, training,development, utilisation, transfer, promotion, motivation andcompensation
to ensure that future manpower requirements are properly met.

HRP is not only done by organisations and corporate bodies. It is a prevalent practice at different
levels of the organisation such as:

A. At the country’s national level, it is generally performed by the government and

covers items like population projections, programme for economic development,
 basic and advanced educational infrastructure and opportunities, occupational
distribution across urban and rural areas, industrial and geographical mobility of
employable people.
B. At the state level, it may be performed by the state government and would include
manpower planning for the needs of the agricultural, industrial and service sector.
C. At the specific industry level, it would include manpower needs forecast for specific
industries, such as engineering, heavy industries, consumer goods industries and
public utility industries.
D. At the level of the individual organisation/unit, it would relate to the planning of
manpower needs for each department and for various types of personnel.

Q.3 Examine the relevance of the different techniques used to forecast the human resources
available to an organisation.

Ans. The success of HR plans depends on the accuracy of the HR forecasts that are needed to
implement the organisational strategies. These forecasting involve estimating the future
requirements of the organisation in terms of the nature and the number of people. An
organisation may use one or more of the forecasting techniques available to assess the future
HR requirements. In fact, the accuracy of HR forecasting largely depends on the ability of the
forecasting techniques in rightly projecting the future.

Following are few of the HR forecasting techniques:

a) Index/Trend Analysis
b) Expert Forecasts/Delphi technique
c) Nominal Group Technique
d) HR Budgets:
–Staffing/Manning Tables
e) Envelope and Scenario Forecasting

a) Index/Trend analysis

Trend analysis forecasts the requirement for additional manpower by projecting trends of the
past and present to the future. It makes use of operational indices for this.
➢ Historical relationship between the operational index and the Demand for Labour.
➢ Operational indices used are:
1. Sales
2. Number of units produced
3. Number of clients serviced
4. Production/Direct Labour Hours
Trend analysis can be used for forecasting overall Organisation, Aub-units, or Indirect (Staff) and
Direct (Line) Manpower requirements.

b) Expert forecasting or Delphi technique:

This method is essentially a group process to achieve a consensus forecast. This method calls
for selection of a panel of experts either from within or outside the organisation. A series of
questions is prepared from the responses received from a prior set of questions in sequencing
manner.
The procedure of Delphi technique involves the following steps:
1.To start with, it requires selection of a coordinator and a panel of experts from both within
and outside the organisation.
2.The coordinator then circulates questions in writing to each such expert.
3.The experts then write their observations.
4.The coordinator then edits those observations and summaries, without however disclosing
the majority opinion in his summary.
5.On the basis of his summary, the coordinator develops a new set of questionnaires and
circulates those among the experts.

c) Nominal group method

Nominal group method involves a panel of experts similar to the Delphi technique.
The major difference between the two is that while under Delphi technique, experts are not
allowed to discuss among themselves, for assessing the questions, under nominal group
method, experts are given the opportunity to discuss among themselves.
Nominal group method involves the following steps:
1. The coordinator assumes the role of a facilitator, allowing the experts to sit together to
discuss their ideas and records of such discussion.
2. After these round table discussions on ideas, experts are asked to rank their ideas according
to their perceived priority.
3. The group consensus is then derived mathematically in terms of individual rankings.

The process affords creativity and facilities scientific group consensus unlike consensus by
qualification like Delphi technique.

d) HR budgets

The HR budget process produces what is referred to as a staffing and manning table, which
contains information related to a specific set of operational assumptions or levels of activity.
The staffing or manning table presents the total HR demand requirement as well as the number
of personnel required by level and function.
HR planner can determine short-run future demand requirements for sub-units and
organisation as a whole.

e) Envelope/Scenario forecasting

Envelope/Scenario forecasting is a flexible HR Demand forecasting technique which utilises

projections. Each scenario of possible future state contains its own set of assumptions (Time
and Activity). It produces a single Staffing/Manning Table for each Specific Course of Action.
Example: Overtime, Optimistic, Most Likely and Pessimistic Scenarios form an Envelope.

UNIT NO. 4

Q. 1 Define recruitment and discuss the factors affecting recruitment.

Recruitment is the process of searching for prospective employees and stimulating them to
apply for the jobs in the organisations. It is the process of seeking and attracting a pool of people
from which qualified candidates can be chosen for job vacancies. Recruitment, as a process,
starts with identification of the need for human resources and ends with getting the prospective
employees to apply for the vacancies available.

The aim of effective recruitment programme is to attract the best people for the job and aid the
recruiter by making a wide choice available.

The ability to identify the right talent for not just the role/job but also from the organisational
values perspective can be summarised as the key recruiting challenge. Under these conditions,
the pressure to properly match a candidate to a job is only one-sided, that is, from employer's
side only.

In the previous section, we discussed the concepts of recruitment. Let us now study the various
factors affecting recruitment.
There are many factors that affect the recruitment programme. These factors can be classified
as organisational or internal factors, and environmental or external factors.
Organisational factors include the following:

➢ Reputation of the organisation-an organisational reputation depends onits size,

area of business, profitability, management, etc.
➢ The organisational culture and the attitude of its management towards employees.
 ➢ Geographical location of the vacant position as potential candidates might not be
eager to work in a remote place unless they belong to that place.
➢ The amount of resources allocated.
➢ The channels and methods used to advertise the vacancy.
➢ The salary that the company offers also influences the decision of acandidate.

Environmental factors includes the following:

➢ The situation in the labour market, the demand for manpower, the demographics,
the knowledge and skill sets available.
➢ Stage of development of the industry to which the organisation belongs.
➢ Culture, social attitudes and beliefs also impact on recruitment.
➢ Law of the land and the legal implication.

Q. 2 Discuss selection process outcomes and its effect in the selection of candidates.
Selecting the wrong candidates and rejecting the right candidates could prove to be a costly
mistake.
The selection process involves a series of steps which help in evaluating the candidates. The
selection process in an organisation has to be in accordance with the organisational
requirements.
The selection process can have four possible outcomes. Two of the possible outcomes have a
positive effect on the organisation, whereas two have a negative impact.
Selection Decision Outcomes

First, let us see the positive outcomes of selecting the right candidates (as given in 1). It is quite
obvious that the impact of right candidate would be positive and effective for the organisation.
The candidate would prove to be a valuable asset to the organisation.
The second outcome (as given in 4) is to reject an unsuitable candidate, which also has a positive
effect on the organisation, because selecting an unsuitable candidate will affect the productivity
of the organisation.
One negative outcome is selecting an unsuitable candidate (as given in 3). In this case, the cost
of having an unsuitable candidate in the job is high. He or she would not add any value to the
organisation. The organisation will incur costs in training the candidate, would add to the cost
of the non-performance. If he has to be replaced, the cost of separation and recruiting another
candidate would also add to the cost of having hired the wrong candidate. This is known as
acceptance error.

The other negative outcome is not selecting the right candidate. This is a loss to the company
because they have selected the second or third best candidate instead of the best candidate.
Also the cost of not selecting the right candidate could mean continuing the search and thereby
increasing the cost of recruitment. This is known as rejection error.
Q. 3 Discuss the types of interviews.
organisations use interviews as an essential step in the selection process. An interview helps in
assessing the applicant’s profile and comparing it with the job profile for suitability.
Some applicant’s may provide some false information in their applications, just to gain
employment.

Interview process: The interview process involves preparation, conducting and closing the
interview.

Preparation
Interviewer should follow these steps when preparing for an interview:
● Determine the objectives
● Read the application
● Determine the mode of evaluation
● Time
● Without any prejudice and bias

Setting:
Interviewers should make the candidate feel comfortable and relaxed.
Conduct interview:
While conducting the interview the interviewer should:
● Demonstrate a basic liking and respect for people.
● Preferably ask open ended questions.
● Not invade the privacy of the candidate.
● Be an attentive listener.
● Note or mark the relevant points.
Closing an interview:
Closing an interview is an important part of the interview. It should be carried out in a smooth
manner. Interviewer should make an overt sign to indicate the end of the interview.
There are several types of interviews which are as follows:
Preliminary interview
Preliminary interviews are brief, first round interviews that aim to eliminate the applicants who
are obviously unqualified for the job. These interviews are generally informal and unstructured
and are conducted even before the candidates fill in the application blanks.

Selection interview
A selection or core interview is normally the interaction between the job applicant and the line
manager and/or experts, where the applicant's knowledge, skills, talent, etc. are evaluated and
ascertained. The selection interview can be of the following types:

Formal and structured interview

A structured interview is very rigid in its structure and contents. It is based on a thorough job
analysis. The interviewer selects the questions to be asked and plans the interview in advance.

To comprehensively cover all areas related to the job amount the candidate

Unstructured interview
An unstructured interview has no pre-determined framework of questions and takes its own
course depending on the responses of the candidate and the interest of the interviewer. An
unstructured interview contains more open ended questions.
Stress interview
The objective of a stress interview is to test the applicant’s ability to perform and deliver under
stress. Interviewers put the interviewee under stress by repeatedly interrupting him, criticising
his answers, asking him unrelated questions or keeping quiet for long periods after the
interviewee has finished speaking.

Group interview
In a group interview all candidates or a group of candidates are interviewed by a panel of
interviewers or a single interviewer.
This method is resorted to when the number of applicants is high and time available for
interviewing is short.

Panel interview method

In today’s organisations where all functions are interdependent and every job involves cross-
functional interactions, it is imperative that people from different functions interview a
candidate.
In-depth interview
In-depth interviews are more suitable for selection of candidates for high-end technology and
high skill jobs. Experts in the relevant area test the candidate’s knowledge and understanding
of the subject, and assess his expertise.

Decision – making interview

After the applicants’ knowledge in the core areas of the job is evaluated by experts including
line managers in the organisation, the applicants are finally interviewed by the departmental
heads and the HR function.
These interviews are generally informal discussions.

Q.4 Discuss the process of interview.

Most organisations use interviews as an essential step in the selection process. An interview
helps in assessing the applicant’s profile and comparing it with the job profile for suitability.
Some applicant’s may provide some false information in their applications, just to gain
employment.
The interview process is a multi-stage process for hiring new employees. The interview process
typically includes the following steps: writing a job description, posting a job, scheduling
interviews, conducting preliminary interviews, conducting in-person interviews, following up
with candidates and making a hire.

There is much debate by industry professionals on the best ways to improve the interview
process. And by improve, we mean attract and make better hires. One theory is that harder job
interviews actually lead to better job matches - but is this true? It turns out, yes. Candidates
who go through a rigorous interview process often find that the company places a high value on
finding employees who are a good match for both the position and the company culture.

Want to improve your company's interview process? Here are some steps to consider when
structuring your interview process:

Interview process: The interview process involves preparation, conducting and closing the
interview.
Preparation
Interviewer should follow these steps when preparing for an interview:
• Determine the objectives
• Read the application
• Determine the mode of evaluation
• Time
• Without any prejudice and bias
Setting:
Interviewers should make the candidate feel comfortable and relaxed.
Conduct interview:
While conducting the interview the interviewer should:
• Demonstrate a basic liking and respect for people.
• Preferably ask open ended questions.
• Not invade the privacy of the candidate.
• Be an attentive listener.
• Note or mark the relevant points.

Closing an interview:
Closing an interview is an important part of the interview. It should be carried out in a smooth
manner. Interviewer should make an overt sign to indicate the end of the interview.

Team members will get a sense of contribution, skills and personality during a job seeker's
presentation. However, you will need to make sure to be specific about the presentation topic
to the candidate, and also determine objectives for evaluation of the presenter with the team.
And don't forget to solicit feedback via a scorecard or a post-panel debrief.

While adding extra hoops for candidates raises the perceived difficulty of job interviews, it also
slows down the hiring process - which can lead to costly hiring delays and candidates lost to the
competition. Before adding additional layers to interviews, it's important for employers to
assure that each new screen actually helps identify great candidates, and doesn't just make
interviews harder without any offsetting benefit.

Conclusion

Finding candidates who have the right skills and who are also great culture fits with the ability
to weather adversity, manage stress, deal with ambiguity, work constructively as part of a team
and demonstrate resourcefulness will serve you well in both the short and long term.
Glassdoor's recruiting solution is a perfect tool to attract high-quality candidates to make your
interview process more productive. After you attract high-quality candidates, it takes a little
planning ahead - choosing which interview format you'll use, what questions to ask and who will
ask them - but the payoff is high.

UNIT NO. 5

Q. 1. What is training? What are its objectives?

Training and development in Human Resource Management (HRM) refers to a system of
educating employees within a company. It includes various tools, instructions, and activities
designed to improve employee performance. It’s an opportunity for employees to increase their
knowledge and upgrade their skills.
To understand training and development a bit better, let’s go back in time and look at it through
a historical lens. It all started during the World War II period in the United States. All of a sudden,
the need for skilled workers started growing.
It was at this time that the U.S. labor movement was established. This movement largely
contributed to the rise of employee training and development.
In the early 1900s, corporation schools were formed to provide production workers with the
needed skills for their tasks. It was also at this time that people started using personal computers
to train employees.
This computer-based training became the foundation of today’s modern employee training
systems.
Companies are business entities and in order to survive in the market, profit-making is an
essential precondition. The employees are the backbone of the organisation and they possess
the skills which help the organisation to attain its goals. Rapidly changing technology results in
changes in the production process and thereby in order to attain the goals of the organisation,
the skills of the employees have to be upgraded.
Training is an essential activity that is undertaken by the organisation to enhance the skills of
the employees by helping them in acquiring new knowledge and skills which are required to
perform their present jobs more efficiently. It is usually a short term skills development exercise
that is meant for non-managerial employees to learn a job or overcome their deficiency in the
performance of a present job.
Previously, organisations did not attach much importance to training activities. But with evolving
world, the importance of training has been realized and it is established that in order to achieve
the goals of the organisation in a better manner, the skills of employees have to be constantly
upgraded.

In order to make any training program successful, it is important that the training needs of the
organisation are recognised and then an appropriate training program is designed and
implemented to upgrade the knowledge, skills and employee attitude.
Training enhances the skills and capabilities of employees in an organisation. A successful
training programme improves the performance of an employee which in turn enhances
organisational performance.

Training is an essential part of the orientation programme for new recruits in an organisation.
The main objectives of training are:
Improving employee performance: When an employee is recruited by an organisation, he might
not have all the skills required to carry out hisjob. Training at this stage helps him learn his job
faster and ensures better performance.

Updating employee skills: It is important for the management tocontinuously evaluate and
adopt any technological advances that canhelp the organisation function more effectively and
efficiently.

Avoiding managerial obsolescence: Managerial obsolescence is thefailure to adopt new

methods and processes that can improve employeeand organisational performance. Rapid
changes in technical, legal andsocial environments have an impact on the way managers
perform theirjobs.

Q.2. Discuss the methods of training.

In the previous section, we discussed the different areas where employees are normally trained.
Let us now study the various methods of training.
Following are a few methods of training:

1.On-the-job training
2.Off the job training

On-the-job training
It’s a real job environment where the trainee is exposed to actual work situations. The major
advantage of this method is that the trainee gets hands-on experience of the job that has to be
performed. The different types of on-the-job training are:

Job instruction training: In this method trainees can discuss the problems in performing the job
immediately with the trainer.

Apprenticeship and coaching: Individuals seeking to enter skilled trades, like those of
carpenters, electricians etc, are required to go through formal apprenticeship under
experienced employees, before they join their regular job.

Job rotation: In this method the trainee is placed on various jobs across different functions in
the organisation. The trainee gains cross-functional knowledge and is equipped to take up
different jobs.
Committee assignments: In this method, a group of employees areassigned an actual
organisational problem and are asked to find asolution. The trainees develop their team-
management skills,interpersonal skills, communication skills, problem-solving skills
andleadership skills while solving the problem as a group.

Off the job training

Off the job training refers to training imparted away from the employee’s immediate work area.
When training is performed on the job, any mistake by the trainee might result in damage to
the organisation. Hence, off the job training can be conducted to minimise this damage. The
different types of off the job training are:

Classroom lectures: This approach is widely used for helping the employees. The trainer should
actively involve the trainees and make the session more interactive.

Simulation exercises: In this method of training, the trainee is exposed toan artificial work
situation that closely resembles the actual situation. Simulation exercises are of great help to
the employee to learn the task on hand. It can be in the form of case exercises, experiential
exercises, complex computer modelling, Vestibule training and role play. Following area few
types of simulation exercises:

Case exercise – In case study a real-life problem encountered in the organisation is presented
to the trainees.

Experiential exercise – In this method, the trainer simulates situations where the employees
are exposed to actual work problems. The trainercan create a situation where employees are
asked to work in teams .After the exercise is complete, the trainer discusses the behaviour of
the employees during the exercise, with the group. He appraises the trainees about their
performance, and discusses the exercise with thehelp of theoretical concepts.

Computer modelling – Computer modelling is a technique whereby the dimensions of the job
are programmed into the computer. Computer modelling helps in learning directly. In this
training, trainees get real life experience by working on a computer.

Vestibule training – In this method, the actual work conditions are simulated and the equipment
used by the trainees is similar to what issued in job.

Role playing – Roleplay is described as a method of human interaction involving realistic

behavior in an imaginary situation.

Q.3. Discuss management development programme.

 Ans. Management development is related to the development and growth of the employees in
an organisation through a systematic process. This development is future-oriented and prepares
managers for a career of valuable contribution to the organisation. It is concerned with the
learning and development of the employees. It helps in the development of the intellectual,
managerial and people management skills of managers. It trains managers to understand and
analyse different situations, and to arrive at and implement the correct solutions.

The major components of Management Development Programme are:

1. Selection: To identify innate potentiality or managerial abilities of executives.

2. Intellectual conditioning: To educate executives and managers on different managerial tools &
techniques.
3. Supervised training: To guide executives and managers on application and use of knowledge in
the course of day to day activities.

Objectives of management development

The main objectives of management development programmes are:

➢ Improving the performance of the managers.
➢ Enabling the senior managers to have an overall perspective about the organization
and also equipping them with the necessary skills to handle various situations.

For top management MDP intends to develop better comprehension & decision-making
power, while for middle level it is meant to develop their intellectual capability besides
awareness of managerial problems. For specialists MDP is to increase functional
knowledge in specific fields and proficiency in various management techniques. One of
the interesting study of management development comparing the processes of two
different countries suggested a number of objectives of MDP.

● As a device to engineer organizational change -particularly in cultural change

● As a tool in pursuit of quality, cost reduction and profitability
● To structure attitudes
● To contribute to the development of learning in an organization
● To assist with self-development

Steps of Management Development Programme

1. To look at the Organization’s objective.

2. To ascertain the development needs.
3. To appraise the present performance of managerial staff.
4. To propose manpower Inventory.
5. To plan & establish training and development programme.
6. To evaluate different programmes.

Benefits of Management Development

There are different benefits the MDP seek for different stakeholders like individual employee,
managers and organisation itself.

Benefits for individual employee include

● An increased ability to develop individual performance

● A reduction in stress about un-tackled gaps in personal performance requirements
● An increased chance of holding on to a desired present job
● An increased chance of developing potential for other job
● A clearer process for establishing personal aspirations
● A clearer process for establishing commitment of my manager and the organisation to my
development

Q.4 Distinguish between training and management development.

Ans.

Q. 5. Explain the evaluation process of training programme.

Ans. The process of examining a training programme is called training evaluation. Training
evaluation checks whether the training has had the preferred outcome. Training evaluation
makes sure whether candidates are able to implement their learning in their respective
workplaces, or to the regular work schedules.
Purpose of training evaluation: The five main purposes of training evaluation are as given in
Figure.

Feedback: It helps in giving feedback to the candidates by defining the objectives and linking it
to learning outcomes.
Research: It helps in determining the relationship between acquired knowledge, transfer of
knowledge at the work place, and training.
Control: It helps in managing the training programme because if the training is not effective,
then it can be dealt with accordingly.
Power games: At times, the top management (higher authoritative employee) uses the
evaluative data to manipulate it for their own benefits.
Intervention: It helps in determining whether the actual outcomes are aligned with the
expected outcomes.
Process of training evaluation
The process of training evaluation entails the following:
Before training: The trainee's skills and knowledge are assessed before the training programme.
During the start of training, candidates generally perceive it as a waste of time and resources
because at most of the times candidates are unaware of the objectives and learning outcomes
of the programme. Once aware, they are asked to give their opinions on the methods used and
whether those methods confirm to the candidates preferences and learning style.
During training: It is the phase at which instruction is started. This phase usually consists of short
tests at regular intervals.
After training: In this phase trainee’s skills and knowledge are assessed again to measure the
effectiveness of the training. This phase is designed to determine whether the training has had
the desired effect at individual, department and organisational levels. There are various
evaluation techniques for this phase.

Unit no. 6
Q. 1 What is career planning?
Ans. Career can be defined as a sequence of positions, roles or jobs held by one person over a
relatively long time span and over his/her life-time.
Managing career planning may include the following aspects:

Career path: It is the sequential pattern of jobs that form a career.

Career goals: They are the future positions that an individual strives to reach as part of a
career.
Career planning: It refers to the process by which an individual selects career goals and the
path to these goals. The process whereby each employee personally plans careers goals is
known as individual career.Planning and the process whereby the organisation plans career
goals for its employees is known as organisational career planning.
Following are the benefits of career planning to an organisation:
Ensures availability of resources for the future: Career development in an organisation should
be in alignment with the HRP. HRP determines the changing requirements of an organisation
and career development helps in meeting the resource requirements.
Enhances organisational ability to attract and retain talent: In a competitive market
environment, talented employees have career opportunities. Therefore, an organisation that
shows concern for the employees’ future by providing them the best opportunities can attract
and retain talented people.
Ensures growth opportunities for all: A comprehensive planning exercise by the organisation
ensures growth opportunities for all the employees.
Handles employee frustration: Today’s workforce is more knowledgeable and has greater
expectations. They desire more responsibility and greater challenges. A good career
development programme can help in handling the expectations of the employees.
Career management: is the process of designing and implementing goals, plans and strategies
that enable HR professionals and managers to satisfy workforce needs and allow individuals to
achieve their career objectives.
Career development programmes help in the achievement of career objectives.
Career anchors: It is attitudinal characteristics that guide people throughout their careers.
Autonomy/Independence: Desire to have freedom and not to be bossed over.
Security/Stability:Individuals who want to be free from any anxiety of uncertainty or
insecurity prefer to remain in the same kind of job and with the same employer.
Technical/Functional competence:-Those with a technical/functional competence exhibit a
strong inclination to develop something which they can call their own, e.g., engineers,
scientists, technologists etc.
General management: Have good planning, organising, managing and controlling skills. They
have a broader view of things and play a facilitating role.
Entrepreneurial creativity: Individuals with creativity as an anchor are more often successful
as artists, free lancers, entrepreneurs.
Service: Service as a career anchor drives individuals to take up jobs in not for profit service
organisations.
Pure challenge: People who just love to solve difficult problems.
Life-style: For some people, nothing is more important than enjoying life. They have a
disinclination to sacrifice life-style solely for career advancement.

Q.2 Discuss the elements of a career planning programme

Ans. There are four distinct elements of career planning programme:
➢ Individual assessment and need analysis
➢ Organisational assessment and opportunity analysis
➢ Need – opportunity alignment
➢ Career counselling

Individual assessment and need analysis

Many people begin their careers without any formal assessment of their abilities, interests,
career needs and goals. This phenomenon of people entering their jobs, occupations and
careers with little attention to career planning and then feeling disengaged is known as career
drift.
Organisational assessment and opportunity analysis
For an employee’s goals and aspirations to be fulfilled, a basic requirement is that the goals
must be realistic and achievable. They have to be realistic not only in terms of the employee’s
own capabilities, but also in terms of the organisation’s possibilities.
Need – opportunity alignment
The organisation plays an important role in helping the employee make this alignment. The
organisation also has to make its own alignments to match the aspirations with the
organisational opportunities.
Career counselling
This is the final stage of career planning. The supervisor as well as the HR department, has to
counsel the employee regarding the available opportunities, the employee’s aspirations and of
course, his competencies.

Q. 3 What is succession planning? What are the benefits of having a formal Succession
Planning System in an organisation?
Ans. Traditionally succession planning was restricted to senior-level management positions
and this was either an informal or formal process.

Over the years succession planning has established itself as a key HR activity in most
organisations with formal processes that ensure it is reviewed regularly and scientifically. In
smaller organisations it is yet an informal process where the individual manager identifies and
grooms his or her own successor.

Succession planning involves an examination of strategic (long-range) plans and HR forecasts for
all identified key positions in an organisation. It includes positions that are critical for the
business and for its continuity, and not just the senior level positions. It includes a review of the
data on all potential candidates who might be able to move to these positions either right-away
or in the near future. The objective is to identify employees with potential and managerial depth
as well as promoting from within the company. This exercise is carried out by the senior
management team of the unit/subsidiary and facilitated by the HR team. Usually, committees
of top managers work together to identify high potential candidates within their team and then
outline developmental activities for them. They may also include a formal assessment of the
performance and potential of candidates, and written individual development plans for
candidates.
Following are the benefits of having a formal Succession Planning System:
➢ Provides a clear framework to strategic business planning as the key positions for the
business’s success are what are being planned for.
➢ Aligns strategic goals and human resources to enable the “right people in the right place
at the right time” to achieve desired business results.
➢ Develops qualified pools of candidates ready to fill critical or key positions.
➢ Provides stability in leadership and other critical positions to sustain ahigh-performing
service.
➢ Identifies workforce renewal needs as a means of targeting necessary employee training
and development.
➢ Helps individuals realise their career plans and aspirations within theocratization.
 ➢ Improves employees’ ability to respond to changing environmental demands.
➢ Provides opportunity for timely corporate knowledge transfer.
➢ Regardless of what type of succession planning programme is used (formal or informal),
most successful programmes obtain the support oftop management.

Q. 4 What are some other career planning initiatives that are being practised in the industry
these days?

Ans. In addition to the career planning initiatives mentioned earlier, there are several other
practices and programs being practiced in the industry today to support employees' career
development. Here are some more examples:

1. Cross-Functional Projects and Rotations: Organizations offer employees the

opportunity to work on cross-functional projects or temporary rotations in different
departments. This allows employees to gain exposure to various aspects of the business,
develop new skills, and explore different career paths within the organization.
2. Job Enrichment: Job enrichment involves redesigning job roles to make them more
challenging and fulfilling. Organizations can add more responsibilities, autonomy, and
decision-making authority to employees' current positions, providing opportunities for
skill development and personal growth.
3. Leadership Development Programs: Leadership development programs aim to identify
and groom high-potential employees for future leadership roles. These programs
typically involve specialized training, coaching, and mentoring to help individuals build
the skills required for leadership positions.
4. Succession Planning and Talent Reviews: Succession planning is a strategic HR practice
that involves identifying and developing potential successors for critical positions within
the organization. Talent reviews help HR and management assess employees' readiness
for advancement and potential future roles.
5. Online Learning Platforms: Many organizations provide access to online learning
platforms and resources that allow employees to pursue self-directed learning and
acquire new skills at their own pace. These platforms often offer a wide range of courses
and certifications, enabling employees to tailor their learning to align with their career
goals.
6. Stretch Assignments: Stretch assignments are challenging projects or tasks that push
employees beyond their current comfort zones and require them to develop new skills
and competencies. These assignments can be an excellent way for employees to
demonstrate their capabilities and potential for career advancement.
7. Employee Development Plans: Employee development plans are personalized
roadmaps outlining an individual's short-term and long-term career goals, along with
 the actions needed to achieve them. HR and managers can collaborate with employees
to create these plans, which act as a guide for career growth.
8. External Networking and Conferences: Encouraging employees to attend industry
conferences, seminars, and networking events provides opportunities to expand their
professional network, learn from industry experts, and gain insights into emerging
trends and best practices.
9. Employee Resource Groups (ERGs): ERGs are voluntary, employee-led groups that bring
together individuals with shared characteristics or interests. ERGs can provide support,
mentoring, and networking opportunities, fostering an inclusive environment that
supports diverse career paths.
10.Performance Incentives and Recognition: Rewarding employees for exceptional
performance through performance-based incentives and recognition programs can
motivate them to excel in their current roles and pursue further career development
within the organization.

These career planning initiatives, along with the previously mentioned practices, demonstrate
a commitment from organizations to invest in their employees' professional growth and
development. By providing various opportunities and resources, companies can nurture talent,
foster loyalty, and create a positive and engaging work environment

Unit no. 7
Q. 1 Explain the five ways of individually evaluating an employee.

Ans. Individual evaluation methods

There exists five ways to evaluate an employee individually. Here the employee is evaluated one
at a time without directly comparing him/her with other employees.
● Graphic rating scale: The most widely used performance rating technique is a graphic
rating scale (e.g., 3, 4 or 5 or even 10-point rating scale). In this technique, the evaluator
is presented with a list of assessment characteristics and asked to assign a number rating
to the employee on each of the characteristics listed. The number of characteristics might
vary from a few to several dozen. It aims to measure the quality of performance and
ability to do the present job. The ratings are in a continuous scale (0-9). Typically, these
ratings are then assigned points

● Forced choice: In forced choice method, the evaluator must choose from a set of
descriptive statements about the employee. The two-, three- or four-statement items are
 grouped in a way that the evaluator cannot easily judge which statements apply to the
most effective employee.
Typically, HR specialists/consultants prepare the items for the form and managers or
other HR specialists rate the items for applicability, that is, they determine which
statements describe effective and ineffective behaviour. The manager then evaluates the
employee.
● Essay evaluation: In the essay technique of evaluation, the evaluator is asked to describe
the strong and weak aspects of the employee's behaviour in the form of an essay. In very
few organisations, the essay technique is the only one used, in others the essay is
combined with another form, such as a graphic rating scale. Wherever it is used the essay
is open ended or as in most cases there are guidelines on the topics to be covered, the
purpose of the essay, etc. The essay method is a supervisor oriented method that does
not provide sufficient room for the employee’s comments, therefore, it is not very
popularly used.
● Management by Objectives (MBO): This method is one of the most popular methods of
performance appraisal for individuals. In this system, the manager and the employee to
be evaluated jointly set objectives/targets in advance for the employee to achieve during
a specified period. And usually the objectives framed are of quantitative nature. MBO is
a very common industry practice. At the beginning of the year, clear objectives are laid
down for achievement during the course of the year. These objectives are popularly called
by the following names:
▪ KRA-key result areas
▪ KPA-key performance areas
▪ Targets
▪ Commitments
These performance objectives are designed using the SMART framework. SMART refers
to Specific, Measurable, Achievable, Results and Timebound. All objectives must conform
to this framework.
● e) Critical incident technique: In this technique the performance is assessed on critical
incidents-the performance incidents that are particularly effective or ineffective. The HR
specialists combine these statements into categories, which vary with the job. Once the
categories are developed, the statements of effective and ineffective behaviour are
provided to the managers. The manager maintains a log for each employee right through
the evaluation period.

Q.2 Define performance.?

Ans. Research confirms that effective performance management systems impact corporate
performance and the bottom line positively. A person’s job performance is a combination of
ability, effort and opportunity that is measured in terms of outcomes or results produced.
Thereby, performance is defined as the record of outcomes produced on a specific job function
or activity during a specific time period. For example, a sales representative would have number
of units sold or revenue achieved as an outcome while a customer service executive would have
number of queries handled and resolved or number of satisfied customers as a measure for
defining performance.

Performance includes a number of tasks or activities involved in performing the job. It is

important that the outcomes are measured. Unfortunately, many performance appraisal
systems confuse measures of performance with the characteristics of the person.
Summarised below are few aspects that need to be considered while establishing a PMS:

1.Validity of the PMS framework – A PMS framework should:

● Measure important job characteristics.
● Encompass the whole job, not parts of it.
● Measure what it claims to measure.
● Not assess other constructs besides performance.
● Be based on a sound job analysis of the jobs.
2.Reliability of the assessment tool – The assessment tool must:
● Guard against subjective evaluation. It must clearly identify the aspect that needs to be
assessed to reduce multiple interpretations.
● Clearly define the link between the outcome produced and its measure. For example,
sales target of 35 units in an FMCGcompany is split as:
● Below 25 Units – Poor Performance
● 25 to 33 Units – Below Expectations
● 34 to 36 Units – Met Expectations
● More than 36 Units – Exceeded Expectations

3.Clarity – Eliminate biases through objective assessment, by not having too many open-ended
or poorly defined criteria for assessment.
4.Practicality – Simple and easy to use/implement. Use of technology to reduce paperwork and
moving to an online workflow system that reduces the time required in managing it.

Q.3 Explain briefly the multiple-person evaluation methods.

Ans. Multiple-person evaluation methods

While the above techniques are used to evaluate employees one at a time, there are a number
of methods being used in organisations to evaluate an employee in comparison with other
employees. Following are few of the multiple-person evaluation methods:
a)Ranking – In ranking method, the manager/s rate the employees doing similar jobs on an
overall criteria from highest to lowest without repeating any rank. While it is easier to rank the
best and worst employees, it is difficult to evaluate the average ones. Therefore, simple ranking
is carried out by first picking the top and bottom employees, and then selecting the next highest
and next lowest, to move towards the middle. This gets difficult if the group is large.

b)Paired comparison: This approach makes the ranking method easier and more reliable. First,
the names of the persons to be evaluated are placed on separate sheets (or cards) in a
predetermined order, so that each person is compared to all others who are to be evaluated.
The evaluator then checks the person he feels is a better performer of the two on the set
criterion. Typically the criterion is the overall ability to do the present job. The person who has
been preferred in most of the listed criteria in comparison with others is the highest performer,
followed by the rest in the order of performance.

c)Forced distribution: The forced-distribution system is similar to 'grading on a curve’. The

evaluator rates the employees in fixed distribution of categories. The number of employees in
the group is segregated in the Bell curve that represents poor, below average, average, above
average and excellent performers. This method is ideal to rate potential. This method is effective
as it avoids rating errors where managers tend to rate employee towards the center of the scale
(average) or at the higher end of the scale(excellent).

Q.4. Write short note on the purpose of promotions.

Ans. Promotions in the workplace relate to an employee's advancement to a higher position or
rank within a company. The goal of promotions is diverse, serving a variety of strategic,
motivational, and organizational objectives. Here are some of the main reasons for promotions:

Recognition of Merit: Promotions are a mechanism for an organization to recognize and reward
individuals who have shown remarkable talents, dedication, and performance in their current
roles. It encourages employees to keep improving and adds to a healthy work environment.
Career Advancement: Promotions give personnel with possibilities for professional growth and
development. Aspiring to higher positions helps people to take on additional responsibilities,
difficulties, and opportunities to learn and grow in their careers.

Employee Engagement and Talent Retention: Promoting internal candidates creates loyalty
and motivates employees to stay with the firm. When employees see a clear path for career
growth within the organization, they are more likely to remain engaged and dedicated.

Succession Planning: Promotions are an important part of succession planning. When key
positions become available due to retirements, resignations, or other causes, identifying and
promoting internal talent to leadership roles facilitates a smooth transition.
Skill Development and Learning: Training and development programs are frequently used to
prepare employees for higher-level positions. Organizations can invest in their employees' skill
development and guarantee they have the appropriate skills for future responsibilities by
promoting from within.
Increasing Morale: Promotions not only boost the morale of the promoted employee, but they
also influence the motivation of their coworkers. Seeing their coworkers advance professionally
motivates others to work harder and aspire for comparable recognition.
Organizational Performance: A well-structured promotion system fosters healthy competition
and drives people to perform to their full potential. This, in turn, can improve organizational
performance and productivity.
Internal Talent Pipeline: A good promotion mechanism aids in the development and
maintenance of a pool of qualified applicants for higher-level roles. It guarantees that the
organization has capable people ready to take on leadership roles when they are required.
Attracting Top Talent: A company that is known for promoting from within becomes more
appealing to prospective employees. Job seekers may be more interested in working for a
company that provides clear and prospective chances for advancement.
Retention of Institutional Knowledge: Promoting experienced personnel who are familiar with
the company's culture, processes, and systems aids in the retention of institutional knowledge.
Overall, promotions are critical for employee development, organizational progress, and the
development of a motivated and committed workforce. An effective promotion process is one
that is aligned with the company's goals, values, and performance measures, ensuring that
deserving personnel are rewarded and motivated to provide their all to the organization's
success.
Q.5 Explain the concept of 360-degree appraisal.
Ans. performance appraisal has been limited to a feedback process between employees and
managers. However, with the increased focus on teamwork, employee development and
customer service, the emphasis has shifted to employee feedback from multiple sources as
depicted in figure 7.1. This multiple-input approach to performance feedback is called "360
degree assessment."
A variety of rating sources in addition to that of the manager help in getting a broader view of
the employee’s performance as well as to eliminate biases. Research has proved that
assessment approaches with multiple rating sources provide more accurate, reliable and
credible information. Hence, HR department supports the use of multiple rating sources as an
effective method of assessing performance for formal appraisal and other evaluative and
developmental purposes.
For example, subordinate assessments of a manager's performance can provide valuable
developmental guidance, peer feedback can be the heart of excellence in teamwork and
customer service feedback focuses on the quality of the team's or agency's results. We shall
discuss the contributions of each source of ratings and feedback. In addition, precautions are
listed to consider when designing a performance management programme that includes 360
degree assessment.

360-degree appraisal is a feedback mechanism that involves gathering feedback from multiple
sources, including the employee being evaluated, their manager, peers, subordinates, and
sometimes customers or clients. The purpose of this type of appraisal is to provide a
comprehensive and well-rounded assessment of an employee's performance, by taking into
account the perspectives of different stakeholders.

The process typically involves the use of a questionnaire or survey that covers various aspects
of the employee's job performance, such as their communication skills, teamwork, leadership
abilities, problem-solving skills, and other relevant competencies. The questionnaire is usually
designed to gather both quantitative and qualitative feedback, with questions that are open-
ended and allow respondents to provide detailed comments.
After the feedback is collected, it is compiled and analyzed by the HR department or an external
consultant. The results are then shared with the employee being evaluated, along with their
manager, who can use the information to identify areas for improvement and develop a
performance improvement plan.

The advantages of 360-degree appraisals include providing a more complete picture of an

employee's performance, promoting self-awareness and personal development, and increasing
accountability and transparency in the performance evaluation process. However, they also
have some limitations, such as the potential for bias and the need for a high degree of
confidentiality to ensure that feedback is honest and constructive.

UNIT NO.8
1. Define wage and salary. What are the factors for effective wage
administration?
ANS:- wage and salary
administration revolves around designing and managing policies and
methods of disbursing employee compensation. Traditionally it includes
areas such as job evaluation, maintenance of wage structures, wage
surveys, incentives administration, wage changes and adjustments,
supplementary payouts, profit sharing, control of compensation costs and
other related pay items.
Salaried often implies a status distinction, because those who are on salary
are generally white-collar, administrative, professional and executive
employees, whereas wage earners are designated as hourly, non-
supervisory or blue-collar. Wage earners in some organisations do receive
full wage if they are absent for such reasons as sickness, whereas salaried
employees, especially at the lower levels, often receive overtime pay when
they work over the standard work week.
Compensation/salary systems are designed to ensure that employees are
rewarded appropriately depending on what they do and the skills and
knowledge (intellect) required for doing a specific job.
It must therefore provide for the following key factors in order to be effective:
• Signal to the employee the major objectives of the organisations –
it must link to the overall goals and objectives of the company. For
example, if doing a quality job is critical for the company its
compensation system has to ensure that this is adequately rewarded.
On the other hand if a company values the productivity and the units
produced the compensation system should be designed such that
productivity is rewarded.
• Attract and retain the talent an organisation needs – The need to
benchmark salaries to the prevalent market standard for that job/skill so
that the company is able to attract the right talent. If an enterprise pays a
salary lower that what is the prevalent market standard for that
job/responsibilities, the probability that suitable candidates would take
the job offer and join the company is low. Even if they do join
subsequently when they find that the market pays more for that job they
would quickly find a more remunerative job and leave the company.
• Create the type of culture the company seeks – Compensation
systems play a critical role as sponsors for the organisation’s culture. A
performance driven culture would build compensation policies that
clearly and significantly reward performance. A company that rewards
loyalty would reward employees who stay longer in the company with
significantly better incentive programmes.

2. Describe the process of Wage Fixation and the tools available for it.
ANS :- Wage fixation refers to the process by which the wages or salaries of employees are
determined, either by negotiation between employers and employees or through regulatory
mechanisms set by the government. The goal of wage fixation is to establish fair and equitable
compensation for work performed, taking into account various factors such as job
responsibilities, skill requirements, market conditions, and cost of living.

The process of wage fixation can vary depending on the country, industry, and specific
agreements between employers and employees. Here is a general overview of the process and
some tools available for wage fixation:

1. Job Evaluation: Job evaluation is a systematic process that assesses the relative value of
different jobs within an organization. It helps establish the hierarchy of jobs based on
factors like skill level, responsibilities, and working conditions. Several methods are used
for job evaluation, such as the Point Factor Method, Ranking Method, and Factor
Comparison Method.
2. Wage Surveys: Wage surveys involve collecting data on wage rates and salary structures
from various organizations within a specific industry or geographic region. This data is
used to benchmark salaries for similar positions and ensure that compensation remains
competitive.
3. Collective Bargaining: In unionized environments, wage fixation often involves collective
bargaining between employee representatives (unions) and employers. Negotiations are
conducted to reach a mutually agreed-upon wage and benefits package.
4. Minimum Wage Laws: Governments may establish minimum wage laws that set the
lowest permissible wage rate for certain job categories. These laws aim to protect
workers from exploitative pay and ensure a minimum standard of living.
5. Pay-for-Performance: Some organizations link wages to employee performance and
productivity. Performance-based pay systems, such as merit-based pay, bonuses, or
commission structures, tie compensation directly to individual or team achievements.
6. Cost of Living Adjustment (COLA): COLA is a periodic adjustment to wages or salaries
based on changes in the cost of living or inflation rate. This ensures that employees'
purchasing power remains relatively stable over time.

Q. 3. Explain long-term and short-term incentive plan.

ANS:- Organisation rewards are those that the employee earns as a result of his employment
with the organisation. Most organisations link their reward system to employee performance
and commitment to the organisation

Types of incentive plans

Incentive plans are of two types:

Short term incentive

Long term incentive

I. Short term incentive

Short term incentives include the following plans:

1. Halsey plan – This plan tries to eliminate the limitations of time and

piece rate system while trying to combine their merits. A certain amount of work is fixed as
standard output. A worker receives a percentage of wages as extra earning if he is completing
in a prescribed time. If hourly rate is 5 and the plan percentage of wages is fixed at 50%. Plan
percentage x Time saved x hourly rate

2. Rower plan – Standard Time is fixed also minimum wage on time basis. Time saved x Time
taken x Hourly rate/Standard rate

3. Barth system of wages - No guarantee of a minimum rate. Wages = √ Standard time x Time
taken x Hourly rate

4. Task bonus system – This method of incentive payment is generally used for a group. In
this method the task of each group member is predetermined and he has to achieve it to
earn a bonus in his standard pay.

5. Point-rating system – Each job is rated in terms of a standard time. At the end of a
specified period, the output of each worker is assessed. Example: an organisation fixes its
standard time value as 10 units of production per hour. Let the number of working hour per
day be 8 and the hourly rate is Rs 5. At the end of the day if any worker produces 100 units,
it is equivalent to 10 hours production.

6. Progressive bonus – Under this system of incentive payment, the earnings increase at a
progressive rate once the output crosses the minimum or standard out.

II. Long term incentives

Long term incentives include the following plans:

1) Annual bonus – The most common type of annual incentive plan is the annual cash bonus.

2) Profit sharing: In the profit sharing incentive method, employees earn a share of the
company’s profit, which is normally calculated as a percentage of local profit.

o Distribution plan: Annual or quarterly basis bonus is paid according to a pre-determined

formula and based on the company profits.

o Deferred plan: Employees earn profit sharing credits instead of cash payment, which are
distributed when the employee parts with the organisation.
 o Combination plan: Employees are allowed to receive a portion of each period’s profit in
case bonus.

3) Gain sharing: Rewarding groups for their successful performance. Groups are rewarded
for the team work, coordination and other characteristics that have determined their
success.

4) Employee stock plans: - This is a scheme in which employees are given a part of ownership
at a price lower than market price in consideration of their duration and meritorious
performance in the job.

Few of the employee stock plans are:

o Employee stock purchase plan: The employees are given the right to acquire stocks of the
company immediately after they earn them, normally at a price lower than the prevailing
market price.

o Employee stock option scheme: The company grants an option to its employees to acquire
shares at a future date.

o Stock appreciation right: Under this scheme, the employee does not have to put in any
money and has the right to withdraw the stock. The employee is given the appreciation in
the value of shares from the date the option was granted.

o Restricted stock plan: In this type of stock plan, the employees need not put in money.
Some restriction is there - one of them is that shares may be forfeited if they are not “earned
out” over a specific period of time. The employees are forced to continue their employment
with the organisation over this specific period.

Q 4. What are the challenges in benefits management and how do

organisations cope with it?
ANS:- Managing employee benefits is a critical part of the entire compensation
policy and particularly so as the cost is completely borne by the company.
There is no scientific way of ascertaining its impact on factors such as
employee satisfaction and employee retention or productivity. In designing benefits packages
organisations need to pay attention to the
following aspects:
• Legal and local laws of the land that require statutory compliance.
• The positioning of benefits in the total compensation strategy.
• Are the benefits provided consistent with the long term strategic
business objectives and plans ?
• Are the benefits meeting the needs and expectations of the employees
and their dependents?
• Are we competitive with respect to the choice of benefits, adequacy and
equity and costs vs. the industry/our competitors?
The components of a benefits package are commonly practiced as Security
and Health Benefits – which focuses on the provisions made by the
employer with respect to life insurance, worker compensation, accident
insurance, medical insurance for self and dependents (where different
companies could differently categorise dependents-some might include
parents as dependents, some might limit it to spouse and children only),
other medical coverage, Provident Fund and Pension Plans, Severance Pay
etc. Organisations might even have other health benefit programmes such
as health check-up camps, dental camps and other employee wellness
initiatives. Modern organisations provide for on-campus gymnasium facilities
or the reimbursement of gymnasium/health club memberships.

Organisations also provide for employee counselling/assistance

programmes and facilities. Some might tie-up with professional counsellors
to provide remote/over phone/e-mail counselling services, while some other
companies provide on-campus employee assistance kiosks manned by
professional counsellors visiting the facility 2-3 times a week. Some
organisations might insist on few benefits to be contributory where the
employee might need to bear part of the cost.

Most large and medium sized organisations manage compensation and

benefits through state-of-the-art Human Resource Management Systems
(HRMS) and the corporate intranet portals. Employee can enrol online for
the benefits, ask queries, look up the policies and review the outstanding
and balance status of the various benefits. They can view deadlines, apply
for the various benefit claims and track reimbursement status online. This
brings a lot of empowerment to the employee as well as awareness of the
total benefits that he/she and their dependents are eligible for.

UNIT NO.9

Q. 1. Define job evaluation and discuss its techniques.

ANS:- Job evaluation is a systematic process of analysing and evaluating jobs to

determine the relative worth of jobs in an organisation.
Job evaluation is the evaluation or rating of jobs to determine their position
in the job hierarchy. The evaluation may be achieved through assignment of
points or use of some other systematic method for essential job
requirements such as skill, experience and responsibility.
The decision to measure or rate jobs should only be made with the intent to
reach certain objectives which are important to both the management and
the employee. Although there are many side benefits of job evaluation, the
purpose is to work towards a solution of the many wage and compensation
related administrative problems which confront the industry and to determine the relative
worth of different jobs in the organisation and provide the basis for compensation management.

the different techniques of job evaluation.

The techniques of job evaluation are:
1. Quantitative
2. Non-quantitative

I. Quantitative techniques
There are two types of quantitative techniques:
• Point Rating Method
• Factor-Comparison Method
a) Point rating method
In this method a quantitative point scale is developed to evaluate the jobs.
The different steps in the point rating method are:
1. Determine the job factors or compensable factors.
2. Determine the sub factors.
3. Define the degree statement or profile statements.
4. Assign points to factors, sub factor and degree.
5. Preparation of a chart.
6. Applying the point system.

b) Factor-comparison method
This method is associated with the name of E. J. Benge. Each factor (as in
the point method) is ascribed a money value. Key jobs, representing the
various levels or grades are ranked factor-by-factor and upon this ranking, a
scale of pay/money value is prepared. The sum of the values for each factor
is taken to be the money value of the job

II. Non-quantitative techniques

There are two types of non-quantitative techniques:
• Ranking Method
• Job Classification or Grading Method
a) Ranking method
In this method the jobs in an organisation are assessed based on the
knowledge, skills effort and other job dimensions associated with each job.
Several techniques of ranking are:
i) Relative ranking – In this method a key job (representative) is identified
and its worth is determined, also the relative importance of each job in
comparison with the representative is determined and then ranked.
ii) Paired comparison: – Each job is compared with every other job in the
organisation.
iii) Single factor ranking:– Single most important factor of a job is identified
and is compared with the single most important factor of other jobs.
b) job classification on Grading Method – In this method jobs are classified
and graded based on their significance and their worth to the
organization. Grades are formulated on the nature of tasks and
responsibilities of the job.

Q. 2. Enumerate the merits and limitations of job evaluation.

ANS:- The merit of job evaluation are:

1. Job evaluation is a logical and an objective method of ranking jobs

relative to each other. It may thus help in removing inequities in existing
wage structures and in maintaining sound and consistent wage
differences in a plant or an industry.
2. The method replaces accidental factors occurring in less systematic
procedures of wage bargaining by more impersonal and objective
standards, thus establishing a clearer basis for negotiation.
3. The method may lead to greater uniformity in wage rates and simplify
the process of wage administration.
4. Information collected in a process of job description and analysis can be
used for improvement of selection, training, transfer and promotion,
procedures on the basis of the comparative job requirement.

The limitations of job evaluation are:

1. Methods of job evaluation are not considered to be completely objective
as some amount of subjectivity is involved in the selection of benchmarking jobs and key
compensable factors.
2. External factors of jobs are not considered in job evaluation. It would be
difficult to fix anything less than the prevailing wages even if job evaluation recommends so.
3. Due to the faster pace of changes in the external factors such as technology and labour market
characteristics, job characteristics requirements undergo changes in quick succession. This
makes job evolution results relevant for a short period only.
4. The determination of employee compensation is often influenced by the bargaining power of
the employees and their unions. However, the job evaluation process never considers this factor
while deciding the pay scale for jobs.
5. Since job evaluation is a time consuming, complex and costly process,
small and medium organisations give minimum importance on pay scale
fixing.

Q3. Define competency and its benefits in organisation.

ANS:- Competency framework defines the competency requirements in an

organisation. These consist of both work specific as well as behavioural
competencies. Each job in the organisation is profiled for the competencies
needed and these are then placed on to a common framework. Depending
on the value of that competency, the number of competencies, the
proficiency level of the competency and the competency’s’ uniqueness, the
job worth can be assessed in a comparative manner.
Organisations need to invest significantly and usually outsource the activity
of competency mapping. Once this is done it remains relevant and in active
use for the next 4-5 years unless there is a significant change in the way the
company conducts its business and its operating practices.
The benefits of competency framework are:
1. One universal set of competencies for all positions and employees in
these positions.
2. Builds a common language and frame of reference for everyone.
3. Merit of each positions/individual.
4. Makes it easier to compare positions and employees across the job
functions in the organisation.
5. Helps align everyone towards a common culture and can support any
culture change process .

Q 4. How is competency linked with HR system? Explain with examples.

ANS: - Linking competency to HR system

One of the key benefits of the competency-based management approach is
its usage to build all of the other HR systems such as recruitment,
performance management, training and development, career development,
compensation management and succession planning. Let us study them
one by one.
Recruitment and selection
The competency profile for a job serves as the reference for the candidate
hunt for the position. It is used at multiple stages in the recruitment and
selection process:
• Job description and competency profile is shared with the recruitment
consultant as well as hosted on the company intranet and internet site
for prospective applicants to view.
• The competencies are used to design the appropriate selection tests
and other methods.
• Assessment forms for interviewers to contain the competency list and
specify the desired proficiency levels.

Competency is a critical element of any HR system. Competencies are the knowledge, skills,
abilities, and other characteristics that are required for successful job performance. By
defining and measuring competencies, HR systems can help organizations identify and develop
the talent they need to achieve their goals.

One example of how competency is linked with HR systems is through the use of competency
frameworks. Competency frameworks are sets of competencies that are defined for specific
job roles or functions. They provide a clear understanding of the skills and knowledge required
for success in a particular role, and can be used to guide recruitment, training, and
performance management.

Another example is through the use of competency-based interviewing. In this approach,

interview questions are designed to assess specific competencies that are relevant to the job.
For example, an interviewer might ask a candidate to describe a time when they
demonstrated strong communication skills or problem-solving abilities.

Unit no. 10
Q1:-Discuss the concept of HRIS and its objectives.

Ans. HRIS, HR Technology or HR modules are an intersection between HRM and IT. It merges
HRM as a discipline and in particular its basic HR activities and processes with the IT field,
whereas the planning and programming of data processing systems evolved into standardised
routines and packages of Enterprise Resource Planning (ERP) software. On the whole, these ERP
systems have their origin in software that integrates information from different applications
into one universal database. The linkage of its financial and human resource modules through
one database is the most important distinction to the individually and proprietarily developed
predecessors, which makes this software application both rigid and flexible.

HRIS has become significant for decision-making and policy formulation as well as for ensuring
fairness and equity in HR policies and practices. There Is an increasing realisation that for
organisational survival and growth in a competitive environment, human resource is the most
critical resource.

HRIS is a key management tool which collects, maintains, analyses and reports information on
people and jobs. It is a system because it integrates all the relevant data, which otherwise might
have been lying in a fragmented and scattered way at various points in the larger system,
converts this data into meaningful conclusions or information and makes it accessible to the
persons who need it for their decisions.

The objectives of an HRIS are to:

increase the ability of the human resource management to influencenew emerging

opportunities and challenges in the business world.ensure efficient collection, storage and
distribution of HR-related information in a paperless environment. facilitate the HR managers
to devote more time to strategic issues by relieving them from routine operations through the
employee self-service system. facilitate employees’ direct and online access to information on
training,Payroll and other relevant matters.

Q.2 Discuss the types of HRIS.

Ans. Some organisations may use HRIS only for data storage and report generation, while some
others may use it in decision making processes and in simulation.

HRIS supports management at three levels of an organisation.

1. The electronic data processing level – The purpose of HRIS at the electronic data processing
level is collecting, storing, manipulating ,analyzing retrieving and distributing relevant
information of human resources in the organisation.
2. The Management Information System (MIS) level – MIS is the next level of HRIS in which HRIS
has much wider and advanced applications. It is a system that provides information to
managers, who use it for decision making.

3. The decision support system level – The last level of an HRIS is decision support system. The
primary users of this level are mainly top management and executives. It helps users in
simulating situations and making decisions.

Q. 3 Explain the applications of HRIS in human resource management.

Ans. HR needs to handle many things in an organisation including increasing

numbers of employees and different HR activities. It became important for
many organisations to bring almost all HR activities under HRIS.
Different applications of an HRIS are as follow:

Applicant tracking system – Many organisations are now gradually

adopting and installing applicant tracking system software. The purpose
of this system is to give support to recruitment process and to streamline
the overall recruitment process.
Training and development system – The purpose of a training and
development system is to help the employees gain new knowledge.
HRIS facilitates workplace e-learning by the employees as part of their
training programme.
Compensation management system – The compensation
management system aims at computing employee payments through an
integrated payroll system. This compensation system normally considers
employee working hours, attendance and productivity for computing the
salary of the employees.
Performance management system – The main goal of the
performance management system is to track employee performance
reviews and due dates for next reviews.
Manpower planning system – The manpower planning system
manages the employee inventory and supports several HR activities.
Succession planning system – The succession planning module
brings the identified and selected employees into the succession
channel.
Grievance management system – The grievance management assists
the management in pre-empting employee grievance by analysing the
nature, sources and frequency of earlier grievances.

Q. 4 Discuss of the benefits of HRIS in an organisation.

Ans. An HRIS, which is an interaction between human resource and information

technology, is an important tool for developing competitive advantage out of
human resource. HRIS keeps the organisation healthy by monitoring and
optimising the human resources available in the organisation constantly.
The benefits of HRIS are as follows:
Effective use of human resource: HRIS standardises the processes
for key HR functions which ensure that there is uniformity in the
performance of HR activities in the entire organisation.
Ability to manage voluminous data: An HRIS can handle large data.
This requires reconciliation with high speed and great accuracy.
Reduction in labour cost: HRIS has an ability to reduce the labour
requirement in the HR department significantly.
Faster and effective HR decisions: HRIS is capable of generating
alternative decision possibilities.
Better supervision and control over human resources: the
effectiveness of supervision and control exercised by the managers over
human resource is higher than in a manual environment. Accessible: HRIS enables its users to
have anytime, anywhere access with multiple channels.

Q.5 Explain the stages of HRIS implementation.

Ans. The management needs to choose a

specialized team for this purpose. The main task of this team is to supervise
the entire operation from planning to execution of the project, including post-
installation monitoring. It is extremely important that the organisation put the
same effort into picking who will handle the implementation that they did in
selecting an HRIS application.

Following steps can help to get the best HRIS implementation:

Find out exactly who will be doing the HRIS implementation and
check their background – It is very important to know how many
implementations have been done by the team. It is a tough job for an
organisation to find an expert or a team who can perform well in
handling HRIS implementation. The team may be certified on HR system
and/or HR payrolls, but until they have performed a large number of
installations they will not be able to handle all the pitfalls and issues that
inevitably arise. It is also a good idea to ask for references about the
individual who will be working on the HRIS implementation.

Set HRIS implementation expectations – First it needs to be verified

that the HRIS implementation consultant and/or staff are qualified
enough to handle the job - the organisation needs to make sure that
both sides are in full agreement as to what is included in the scope of
the project. Avoidable misunderstandings regarding expectations create
cost overruns and can lead to poor implementations. Make sure
everything is in writing and specifically they should provide a detailed list
of project requirements and an estimated time of completion for each.
Most companies will provide a low and high expected range (“two to
three months”, for example).

HRIS implementation project cost versus hourly or daily – HRIS implementation projects are
typically quoted either on daily rate basis or by project basis. Project costing has some
advantages, because organizations would not go over the quoted amount unless needs arise
that are outside of the project’s original scope. The disadvantage of project costing is that
companies are going to charge a higher rate since
they have to quote the project on the high side. Daily or hourly quotes for consulting are fine,
but make sure to get a detailed plan on the consulting time. Employers can break down the
hours according to each step in the implementation process: half aday for network installation,
one day for code table setup, one day for benefits setup, etc.
Preparation for HRIS implementation – Before the organisation begins the implementation,
make sure all information and data that the consulting staff will need is ready. It would not be
good for a consultant doing nothing while waiting for data on benefits plans. Organisations
should provide all the facilities that the consultant or the implementation team will work with
during the process (IT staff especially - make sure they know when their services will be needed).
Stay on track – As an HRIS system implementation is taking place and the customers are learning
more and more about the capabilities of their new HR software, make sure they don’t get off
track with work that is outside the scope of the project. They need to finish the core project first
and then determine how much quoted time is left for other considerations.

Q.6 Discuss the impacts of HRIS implementation in an organisation.

Ans. The HR department looks for improved reporting of employee data,

payroll is concerned with the system’s paycheck calculations and
regulatory reporting, while benefits may be looking for a more
streamlined enrollment process. The hiring process is a good example.
As a person is recruited, hired and paid each department may have its
own specialised system and process for managing the employee data.
As the team evaluates an HRIS software package, it begins to get a
better grasp on what the entire company’s business processes are, and
therefore what the company might require in an HRIS.
There are three primary activities in an HRIS implementation:
Configuring the HRIS for the organisation’s business processes and
policies.
Interfacing data with other systems and converting historical data into
the HRIS.
Preparing the organisation for the HRIS.
An HRIS comes with built-in processes for most HR activities, but an
organisation needs to customise the system to process according to their
specific needs. For example, every HRIS supports the process of benefits
open enrollment, but the system does not come delivered with a company’s
specific benefit providers and eligibility rules.
Configuration tasks then become a process of understanding the company’s business processes
well enough to programme that logic into the HRIS. This mapping of business processes and
policies into system control tables requires people who understand both the business process
and the HRIS–typically the existing IT support and HR business analysts.

Unit no. 11

Q.1 Define job analysis. What HR activities does job analysis provide?

Job analysis is the process of determining and recording all the pertinent
information about a specific job, including the tasks involved, the knowledge
and skill set required to perform the job, the responsibilities attached to the
job and abilities required to perform the job successfully. Job analysis is a
process to identify and determine in detail the particular job duties and
requirements and the relative importance of these duties for a given job. It is
a process where judgements are made from data collected on a job.
An important concept of job analysis is that the analysis is conducted of the
job and not the person. While job analysis data may be collected from
incumbents through interviews or questionnaires, the product of the analysis
is a description or specifications of the job, not a description of the person.
These activities depend on job analysis and its end products for their own functioning. Job
description and specifications are end products of job analysis (from the basis for recruitment).

Job analysis plays a key role in designing and managing the performance appraisal system in an
organisation:

1. It helps in identifying the Key Responsibility Area (KRAs) for a position.

2. It helps in setting of goals or objectives for the appraisal period.
3. This forms the basis for the evaluation of an employee’s performance.
4. A comparison of the job specifications arrived at the end of a job analysis to identify the
training needs for existing employee.
Q.2 Explain the process of job analysis.

Ans. Job analysis is the process of breaking down a specific job into parts and
scrutinizing each of them to gather the necessary information. It requires a
systematic and efficient examination of the tasks, duties, responsibilities and
accountability of a job. The process of job analysis involves the execution of
a series of related steps.
a) Information gathering
First stage in job analysis is to gather all the necessary information relating
to:
Organisation structure.
Role of the job in relation to other jobs in the organisation.
Class to which job belongs.
A detailed description of the activities and responsibilities involved in the job.
b) Job-specific competency determination Based on study and observation, the competencies
required for the job are identified.
c) Developing a job description A description of the tasks, responsibilities, duties and functions
of the job is prepared. This forms the job description.
d) Developing a job specification The job specification provides a complete list of competencies
and qualifications required to match the job description.

Q.3 Discuss all methods which are related to job analysis.

The following are the methods of job analysis:
Observation methods
In this method, individuals performing the job are observed and relevant
points are noted. It includes what was done and how it was done. Time and
motion study is the best example of observation method. In this method, the
observer knows what has to be noted and what can be ignored. Otherwise
whole observation method can result in a lengthy but superfluous document.
Individual interview method
This method is employed when the job in question is complex and has
varied tasks. It is effective when the interview is structured and the analyst is
clear about what information has to be obtained from the interview. An
unstructured interview might help in gathering all the information about the
job but it will be very time consuming.
Group interview method
In this method the employees performing the same job are interviewed in
groups. Information which might have been missed during individual interview will come up
during group interview. It is less time consuming.
Sometimes group dynamics might affect the direction of the interview.
Questionnaire methods
In this method, the analyst gives a long structural questionnaire to be filled
by the employees. Both objective and open-ended questions are included. It
is a good method to take the information from employees without disturbing
them on their job. Sometimes the analysis part becomes problematic,
especially when there is no clarity. Sometimes the analyst might fail to
convey what kind of information exactly they want to gather from
incumbents.
Technical conference methods
This is a method of gathering all the job related information from ‘Experts’
(Supervisors) and not from the employee(s).
Diary method
In this method, incumbents of that particular job make immediate note of the
activities they perform. A lot more information can be gathered about the job
from this method. This exercise takes longer time to complete as there are
many activities which take longer time intervals.

Q.4 Define job design. Discuss the characteristics of job design.

Ans. Job design specifies the content of job and methods of doing the job. It is
the process of determining specific tasks to be included in a job and the
methods of performing those tasks. According to DeCenzo and Robbins,
“Job design is the way in which job tasks are organised into a unit of work.”
According to Byars and Rue “Job design is the process of structuring work
and designing the specific work activities of an individual or group of
individuals to achieve certain organisational objectives.”
Job design is the process of structuring work and designating the specific
activities at individual or group levels.
The different approaches to job design are:
Engineering Approach
Sociotechnic Approach
Engineering approach
The key element of this approach is the ‘task idea’ that led to job specialisation. The task idea’
is the work of every workman that is fully planned and laid out by the management, at least one
day in advance.
Sociotechnical approach
The approach taken by the sociotechnical systems method is the design of work systems that
foster a locking of the technical and social aspects of jobs.
The basic characteristics of a job according to the sociotechnical approach are:
1. A little challenging and demanding
2. Variety and novelty
3. Social support and recognition
4. Desirable future
5. Decision-making authority
6. Correlation with social levies

Unit no. 12
Q. 1 Define discipline. What are its objectives?
Ans.- Discipline is employee self-control which prompts him/her to willingly co-
operate with the organisational standards, rules, objectives, etc.
Discipline is best defined as the observation of principles, rules or any other
laid down procedures, practices, written or otherwise in the organisation by
the employees or group of employees, to whom these apply, for smooth and
effective functioning of the organisation.

As per Dr. Spriegal, "discipline is the force that prompts an individual or a

group to observe the rules, regulations and procedures which are deemed
to be necessary to the attainment of an objective; it is force or fear of force
which restrains an individual or a group from doing things which are deemed
to be destructive of group objectives. It is also the exercise of restraint or the
enforcement of penalties for the violation of group regulations". Bremblett,
Earl R says that, "discipline in the broad sense means orderliness-the
opposite of confusion...”. According to Richard. D Calhoon, "discipline may
be considered as a force that prompts individuals or groups to observe the
rules, regulations and procedures which are deemed to be necessary for the
effective functioning of an organisation.

➢ The aims and objectives of discipline are:

• to ensure and enable employees to work in accordance with the rules
• and regulations of the organisation.
• to ensure that employees follow the organisational processes and
• procedures in spite of their different personalities and behaviour.
• to provide direction to the employees and fix responsibilities.
• to improve organisational performance by improving the efficiency of
• each employee.
• to maintain a sense of orderliness and confidence in the employees
• towards each other and towards the management.
• to maintain common feelings of trust and confidence in the employees
• towards each other and towards the management.

Q. 2 What are the basic principles to maintain discipline?

Ans. In the previous section, we discussed meaning and objective of discipline. Let us now study
the principles for maintenance of discipline. Since disciplinary measures have serious
implications for employees; they often are based on the principles of being fair, just and
acceptable to employees and, where applicable, the union as well. It cannot be enforced or
imposed on employees, as history has proved, it never benefits anyone. One of the most
significant transformations that have impacted the workplace in the past few years is the
‘reinstatement’ of discipline in a positive and employee-supported environment. The way it is
practiced in today’s organisations is extremely well communicated and adopts a discretionary
approach.
The most important principles to be observed in the maintenance of discipline have been
outlined by Yoder. Heneman, Turnball and Harold Stone:
1. As far as possible, all the rules should be framed in cooperation and collaboration with
the representatives of employees. If the latter have a share in formulating them, they will
be more likely to observe them.
2. All rules should be checked at regular intervals to ensure that they are working well
according to the organisational policy and practice.
3. Rules should vary with changes in the working conditions of employees. Those framed for
office employees, for example, may very well be different from those that are formulated
for workers in an industrial concern.
4. Rules should be uniformly enforced if they are to be effective. They must be applied
without exception and without bending them or ignoring them in favour of any one
worker.
5. Penalties for any violation of any rule should be clearly stated in advance. Employees have
the right to know what to expect in the event of any infringement of a rule or regulation.
For this purpose, it is better to publish them in the employees' handbook.
6. A disciplinary policy should have as its objective as the prevention of any infringement
rather than the simple administration of penalties, however just: it should be preventive
rather than punitive.
7. Extreme caution should be exercised to ensure that infringements are not encouraged.
This should be done as a matter of policy.
8. If violations of a particular rule are fairly frequent, the circumstances surrounding them
should be carefully investigated and studied in order to discover the cause or causes of
such violations.
9. For troublesome employees, the organisation should exercise more caution and take
extra measures to control them.
10.Definite and precise provisions for appeal and review of all disciplinary actions should be
expressly mentioned in the employees' handbook for collective agreements.

Q. 3 Enumerate the steps for disciplinary procedure.

Ans. In the previous section, we discussed the disciplinary - action penalties. Let us now discuss
the procedure for disciplinary action.
Though there is no specific procedure to be followed, different organisations use a variety of
formal and informal methods to resolve these matters. The following steps are recommended.
The different stages in the disciplinary procedure of an Indian organisation are discussed below:
Forming and issuing a charge sheet: When the management of an organisation wants to initiate
an enquiry against an employee for alleged misconduct, the concerned employee is issued a
charge sheet. The charge sheet should clearly indicate the charges against the employee and
seek an explanation for the employee’s misconduct.
Considering the explanation: If the employee admits his misconduct or if the management is
satisfied with the explanation offered by the employee in response to the charge sheet, there is
normally no further enquiry.
Issuing the notice of enquiry: If it is decided that an enquiry be held. A notice of enquiry has to
be issued to the worker. The notice must mention the time, date and place of enquiry. An
enquiry officer is also appointed, preferably a person who has good knowledge in law.
Holding a full-fledged enquiry: The enquiry should be in conformity with the principles of
natural justice and the employee concerned must be given an opportunity to be heard. If it is
felt that the offence is serious or that the employee concerned might influence the enquiry
proceedings, he mighteither be asked to go on leave or may be suspended without pay, pending
enquiry.
Final order of action: The appropriate authority, based on the findings of the enquiry officer,
makes the judgment. He either acquits the employee or judges him guilty of the charges. Based
on the decision taken, the punishment for the employee’s misconduct is determined. Before
that, the manager should consider the employee’s previous record.
In case the employee feels that the enquiry is biased or improper, and that the disciplinary
action is unjust, he should be given a chance to make an appeal.
Follow-up: After administering disciplinary action, there should be proper follow-up. The
punishment for misconduct should be conveyed to the employee.

Q.4 Explain the action-penalties of discipline.

Ans.In the previous section, we discussed the basic guidelines of a disciplinary policy. Let us now
discuss the disciplinary - action penalties. There are varying penalties for first, second, and third
offences of the same rule. Following are the commonly practiced actions in business
organisations:
1. Oral reprimand
2. Written warning
3. Denial of increments, promotions and pay hikes
4. Pay reductions and disciplinary demotions
 5. Suspension
6. Discharge or dismissal
Oral reprimand: The penalties are listed in the general order of severity, from mild to severe.
For most cases, an oral reprimand is sufficient to achieve the desired result. The supervisor must
know his or her personnel in determining how to give a reprimand. For one person, a severe
"session" may be necessary in order to get attention and cooperation; another person may
require only a casual mention of a deficiency. If the offence is more serious, the reprimand may
be put in written form.
Written warning: When an oral warning or counselling to the employee does not produce the
desired result, the manager may issue a written warning to the employee. The employee is
normally asked to acknowledge the receipt of written reprimand, irrespective of whether he
agrees with the content of the letter or not.
Since a written reprimand is more permanent than an oral one, it is considered a more severe
offence and the penalty levied accordingly.
Denial of increments, promotions and pay hikes: On some incidents the management may
refuse promotions, increments or pay hike by blacklisting the employee for a specific period of
time. This is usually treated as a punishment for a certain period of time.
Pay reductions and disciplinary demotion: This is usually more severe than the denial of pay
hikes and promotions because the employee loses part of existing benefits and privileges
received by him from the organisation. In the case of demotion, an employee loses social status.
Suspension: A few offences normally require the direct suspension of the employee without any
prior warning, depending upon the nature of the misconduct committed by the employee. The
decision regarding suspension is generally made by higher authorities.
Discharge or dismissal: This is the severest punishment of all. Both discharge and dismissal
culminate in termination of employment. When the conduct of an employee is deemed to be
mismatched with the faithful discharge of his duties, and undesirable or against the interest of
the employer to continue him in employment, dismissal will be justified.
In case of discharge, an employer terminates the employment of an aberrant employee either
by giving agreed advance notice or by paying money in lieu of such notice.
Mc. Gregor’s Red Hot Stove Rule: One effective way to approach the disciplinary process is to
follow what is popularly known as the red hot stove rule. It suggests that administering discipline
is more like touching a hot stove.
According to Mc. Gregor, action should be immediate, impartial and consistent with a warning
such as the results of touching a red hot stove.
Immediate: The burn happens as soon as a person touches a red hot stove; like that an
employee should be made to realise immediately if he/she is going against the norms or the
rules.
Impersonal: Regardless of who touches it, the stove causes burns. In the same way the rule
applied for a particular act of indiscipline should reflect the offence and not the person who
committed it.
Consistent: Every time a person touches a red hot stove he receives burns. That is, the result is
consistent. In the same way discipline should be enforced and ensured across every employee
and for every situation.
Foreseeable: The red hot stove warns the individual through the heat it generates, that it will
burn if touched. In the same way employees should be made aware that poor conduct or
indiscipline will result in specific, predetermined consequences.

Unit no. 13
Q 1. What is grievance? Why does it arise? What is its importance?
Ans: - Grievance is a sign of an employee’s discontent with job and its value-any
dissatisfaction or feeling of injustice in connection with one’s employment
situation that is brought to the notice of the management.

The definition of grievance often varies from company to company and from
author to author. The broadest interpretation of the term would include any
discontent or dissatisfaction that affects organisational performance. As
such, it can be stated or voiced, written or oral, legitimate or ridiculous.
The word grievance is often used in a generic form to indicate various forms
and stages of an employee’s dissatisfaction while at work. While the
dissatisfaction could be defined as anything that disturbs an employee, a
complaint is a spoken or written dissatisfaction brought to the attention of
the manager or to the HR department/team member. Often employees view
the HR team as the custodian of employee content/discontent and take up
their grievances with the HR team. Grievance could also be voiced by a
group of employees, it need not necessarily be a single employee with a
complaint.

Dale Yoder defines grievance as "a written complaint filed by an employee

and claiming unfair treatment." Prof. Jucious defines grievance as “any
discontent or dissatisfaction, whether expressed or not and whether valid or
not, arising out of anything connected with the company that an employee
thinks, believes or even feels unfair, unjust or inequitable.

” Prof. Pigors and

Meyers define grievance as dissatisfaction. According to them,
dissatisfaction of an employee is anything that disturbs the employee,
whether expressed or not.

The International Labour Organisation (ILO)

classifies grievance as a complaint of one or more workers with respect to
wages and allowances, conditions of work, interpretations of service
stipulations, covering such areas as overtime, leave, transfer, promotion,
seniority, job assignment and termination of service.

Grievances may occur for a number of reasons:

(a) Economic: Wage fixation, over time bonus, wage revision etc.
Employees may feel that they are paid less when compared to others.
(b) Work environment: Poor physical conditions of workplace, tight
production norms, defective tools and equipment, poor quality of
materials, unfair rules, lack of recognitions etc.
(c) Supervision: Relates to the attitude of the supervisor towards the
employee such as perceived notion of bias, favoritism, nepotism, caste
affiliations, regional feelings etc.
(d) Work group: Employee is unable to adjust with his colleagues, suffers
from feelings of neglect, humiliations.
(e) Miscellaneous: These include issues related to certain violations with
respect to promotions, safety methods, transfer, disciplinary rules, fines,
granting leave, medical facilities, etc.

Q 2. Bring out the effects of grievance on employees

ANS :- Effect of grievance
Quite often when minor grievances are accumulated, major problems creep in like work-
stoppages – strikes, lockouts, and other forms of unpredictable eruption causing long-term
damage to productivity. Therefore, it becomes extremely essential to handle the grievances at
the earliest possible moment.

With the help of thorough analysis of the nature and pattern of grievances, the causes of
employee dissatisfaction can be removed. The HR manager has to probe deeper into the details
of grievances and explore the best possible method of settling them
Grievance can have several effects that are essentially adverse and
counterproductive to organisational purpose: Few of the effects of grievance
are:
a) Loss of interest in work and consequent lack of morale and
commitment.
b) Poor quality of production.
c) Low productivity.
d) Increase in wastage and costs.
e) Increase in employee turnover.
f) Increase in absenteeism.
g) Increase in the incidence of accidents.
h) Indiscipline.
i) Unrest.

Q. 3. Explain the grievance handling procedure.

ANS- the grievance handling procedure. Let us now learn the need for grievance redressal
procedure. A grievance redressal procedure is needed for the following reasons:
➢ In the absence of a grievance redressal procedure, an employee could either keep his or
her dissatisfaction to himself/herself or share with his/her colleagues. If he/she has no
means of express he/she will get frustrated.
➢ If the settlement does not satisfy at the first level he/she can approach the next level.
 ➢ Grievance procedures keep a check on arbitrary action.
➢ Grievance procedures help in upward communication.
➢ A good grievance redressal system ensures that employee grievances are settled before
they turn into an industrial conflict.
The guiding principles are:
1. Conformity with existing legislation: A grievance redressal procedure
should be acceptable to both the management and the employees and
also should conform to the existing legislation of the firm.
2. Simple and expeditious machinery: When a grievance arises, it has to
be settled at the lowest possible level in the redressal procedure.
3. Employee knowledge of grievance procedure: Employees should have thorough knowledge
about the grievance redressal procedure. They should know whom to approach.
4. Constitution of the grievance committee: The grievance committee consists of two
representatives from the management, two from the union and one from the same department
in which the concerned employee works.

UNIT NO.14

Q 1. What is employee welfare? Explain its basic objectives.

ANS: - Employee welfare is a comprehensive term including various services,
benefits and facilities offered to employees and by the employers. Through
such generous fringe benefits the employer makes life worth living for
employees.
Employee welfare entails all those activities of an employer which are
directed towards providing the employees with certain facilities and services
in addition to wages or salaries.
The very logic behind providing welfare schemes is to create an efficient,
healthy, loyal and satisfied labour force for the organisation. The purpose of
providing such facilities is to make the employees’ work life better and also
to raise their standard of living.

Objectives of employee welfare:

The most important purpose of employee welfare measures is to improve

the employer-employee relationship within an organisation. However, an
organisation can also achieve multiple objectives while developing
employee welfare measures. An organisation aims at accomplishing both
the long term and short-term objectives through employee welfare
measures.
Employee welfare has the following objectives:
1. To provide better life and health to the workers.
2. To make the workers happy and satisfied.
3. To relieve workers from industrial fatigue and to improve intellectual,
cultural and material conditions of living of the workers.

Q2. Discuss the types of welfare measures.

ANS:- The employee welfare schemes can be classified into two categories, i.e.,
statutory and non-statutory welfare schemes. The statutory schemes are
those schemes that are compulsory to be provided by an organisation as
compliance to the laws governing employee health and safety. These
include provisions provided in industrial acts such as Factories Act, 1948,
Dock Workers Act (safety, health and welfare), 1986, Mines Act, 1962. The
non-statutory schemes differ from organisation to organisation and from
industry to industry.

Statutory welfare facilities:

Statutory welfare facilities are facilities offered by the organisations in

compliance with the central and state government regulations. The relevant
provisions of various acts that deals with employee welfare measures are:
Factories Act, 1948
Contract Labour Act, 1970

The statutory welfare schemes include the following provisions:

1. Drinking water: At all working places safe hygienic drinking water
should be provided.
2. Facilities for sitting: In every organisation, especially factories, suitable
seating arrangements are to be provided.
3. First aid appliances: First aid appliances are to be provided and should
be readily accessible, so that initial medication can be provided to the
needed employee in case of any minor accidents.
4. Latrines and urinals: Sufficient number of latrines and urinals are to be
provided in the office and factory premises and are to be maintained in
a neat and clean condition.
5. Canteen facilities: Cafeteria or canteens are to be provided by the
employer so as to provide hygienic and nutritious food to the
employees.
6. Spittoons: In every work place, such as warehouses, store places, dock
area and office premises spittoons are to be provided in convenient
places and are to be maintained in a hygienic condition.
7. Lighting: Proper and sufficient lights are to be provided for employees
so that they can work safely during the night shifts.
8. Washing places: Adequate washing places such as bathrooms, wash
basins with tap and tap on the stand pipe are to be provided in the port
area in the vicinity of the work places.
9. Changing rooms: Adequate changing rooms are to be provided for
workers to change their clothes in the factory area and office premises.
Adequate lockers are also to be provided to the workers to keep their
clothes and belongings.
10. Restrooms: Adequate numbers of restrooms are provided to the
workers with provisions of water supply, wash basins, toilets,
bathrooms, etc.

Non-statutory welfare schemes

Organisations are increasingly offering some form of personal financial
education as part of their employee benefits programmes. They recognise
that this service increases workplace productivity and morale, while
reducing stress levels.
Other benefits to offering some form of workplace
financial education include: -
1. Helping employees improve their personal financial wellness.
2. Assisting employees with workplace stress associated with financial
problems.
3. Helping employees navigate major financial milestones, including
managing credit and debt, insurance needs, investing basics, tax
planning and others.

Q 3. Who all are responsible for welfare facilities in an organisation? Discuss.

ANS:- An employee’s welfare facilities rest not only with the employers but also with the central
government, state governments and trade unions.

Employers:
Employers have the first and direct responsibility to provide welfare facilities
to the employees. They usually provide facilities to attract and retain their
talented employees. To facilitate their employees, organisations generally
appoint labour welfare officers to supervise the welfare activities carried out
in the organisation.

Central Government:
The central government is empowered to make rules to protect the health,
safety and welfare of the employees working in factory premises. The laws
that govern the welfare facilitates are Factories Act 1948, Contract Labour
Act 1970, the Employees’ State Insurance Act 1948, etc.

State Government:
The state governments are normally the enforcing authorities for laws
enacted by the central government from time to time. They can also create
their own laws to regulate the condition of the employees and their welfare.

Trade unions:
Trade unions take an active role in offering welfare facilities to the
employees to improve their well-being. In a few organisations the unions, as
a representative of the employees, undertake employee welfare activities to
improve the health and safety of their members.

Q 4. Explain the basic features of labour welfare measures

ANS:- The basic features of labour welfare measures are as follows:

• Labor welfare includes various facilities, services and amenities
provided to workers for improving their health and style of living, value,
economic betterment and social status.
• Welfare measures are in addition to regular wages and other economic
benefits available to workers due to legal provisions and collective
bargaining.
• Labour welfare schemes are flexible and ever-changing. New welfare
measures are added to the existing ones from time to time.
• Welfare measures may be introduced by the employers, government,
employees or by any social or charitable agency.
• The purpose of labour welfare is to bring about the development of the
whole personality of the workers to make a better workforce.

Q 5. How do the welfare benefits affect the business of an organisation?

ANS:- For the management and employees of organisations who have been struck
by the backlash of recession, it would take some time to handle the issue of
employee welfare. It is the responsibility of the management to ensure that
employee welfare initiatives should not be put on the back seat in the name
of cutting costs. One of the measures to overcome this situation is to handle
the situation carefully and with constant communication to ward off adverse
rumours and protect employee sentiments. It is not an easy task however, to
look beyond the profit margins and focus on employee wellbeing in times of
reduction of bottom line, but then that is perhaps the need of the times.
There are many organisations however, who consider employee welfare as
a hygiene issue. It needs to be combined with the motivation factor because
that is what brings about employee satisfaction and enhances their
productivity. Profitability of an organisation has a direct relationship with the
employees’ productivity. Therefore, an organisation’s attempt should be at
creating a motivating environment that promotes job satisfaction, thereby
developing employees who are motivated, productive and fulfilled.
Cost cutting measures do not mean employee welfare compromise. It does
not mean reducing the facilities provided to employees to reduce the cost.
An employer needs to eliminate all inefficient and unproductive activities in
the organisation to reduce wastage, increase productivity and reduce
turnaround time in all operations of the organisation which automatically
results in cost saving.
An attempt to bring about employee friendliness should never be driven by
the current economic scenario, it has to be an ongoing effort. An
organisation is made up of its people. Employee friendly HR policies are the
main sources to enhance productivity. It is also helps to maintain a synergy
between the employer and the employee.

It would be too impractical to mention that an organisation should simply

focus on employee welfare even if the profit margins are reducing, during
tough times. It becomes important for both – the employer as well as the
employee – to put in their best efforts to flow through the tough phase. The
company needs to accept a balanced approach in such a situation, cutting
down on all the benefits is also risky and taking no action is also hazardous
from the survival point of view.

UNIT NO.15

Q. 1. Describe competency mapping. Discuss the steps involved in

competency mapping with an end result of job evaluation.

Ans:- Employee skills, knowledge and abilities are not sufficient to achieve the
desired goals. Additional skills such as mind-set, values, belief and
commitment are required by employees to achieve their desired
performance. Thus competency is the sum of knowledge, skills, attitude and
personality of an individual as required for performing current and future
organisational needs.
Competency mapping is a process of identifying key competencies for
an organisation and/or a job and incorporating those competencies
throughout the various processes (i.e., job evaluation, training, recruitment)
of the organisation. We would define competency as a behaviour
(i.e., communication, leadership) rather than a skill or ability.

The steps involved in competency mapping with an end result of job

evaluation include the following:
1) Conduct a job analysis by asking incumbents to complete a Position
Information Questionnaire (PIQ). This can be provided for incumbents to
complete or you can conduct one-on-one interviews using the PIQ as a
guide. The primary goal is to gather, from incumbents, what they feel are
the key behaviours necessary to perform their respective jobs.

2) Using the results of the job analysis, you are ready to develop a
competency based job description. A sample of a competency-based job
description generated from the PIQ may be analysed. This can be
developed after carefully analysing the input from the represented group
of incumbents and converting it into standard competencies.

3) With a competency-based job description, you are on your way to begin

mapping the competencies throughout your human resources
processes. The competencies of the respective job description become
your factors for assessment on the performance evaluation. Using
competencies will help guide you to perform more objective evaluations
based on displayed or not displayed behaviours.

4) Taking the competency mapping one step further, you can use the
results of your evaluation to identify in what competencies individuals
need additional development or training. This will help you focus your
training needs on the goals of the position and the company and help
your employees develop to achieve the ultimate success of the
organisation.

2. Explain business process outsourcing.

ANS:- Business process outsourcing is the assignment of one or more important business
processes to external providers. Outsourcing is contracting with another company or person to
do a particular function. Almost every organisation outsources in some way. Typically, the
function being outsourced is considered non-core to the business. An insurance company, for
example, might outsource its janitorial and landscaping operations to firms that specialise in
those types of work
since they are not related to insurance or strategic to the business. The outside firms that are
providing the outsourcing services are third-party providers, or as they are more commonly
called, service providers. Although outsourcing has been around as long as work specialisation
has existed, in recent history, companies began employing the outsourcing model to carry out
narrow functions, such as payroll, billing and data entry. Those processes could be done more
efficiently and therefore more cost- effectively, by other companies with specialised tools and
facilities and specially trained personnel. Currently, outsourcing takes many forms.
Organisations still hire service providers to handle distinct business processes such as benefits
management. But some organisations outsource whole operations. The most common forms
are Information Technology Outsourcing (ITO) and
Business Process Outsourcing (BPO).

BPO includes call center outsourcing, Human Resources Outsourcing

(HRO), finance and accounting outsourcing, and claims processing
outsourcing. Dominant outsourcing providers in the information technology
outsourcing and business process outsourcing fields include IBM, EDS,
CSC, HP, ACS, Accenture and Capgemini.

Q 3. What are the benefits we can see if an organisation is providing flexi

time to their employees?

ANS:- Benefits of flexi time

Utilising a flexi time policy in an organisation can benefit everyone involved–
employers, employees and their families.
Benefits to an organisation
Introducing flexible working hours could bring the following benefits in a
business:
• Greater staff morale and job satisfaction. Most employers offering flexi
time working report improvements in recruitment, reduced absenteeism
and productivity.
• Reduces stress and fatigue, and unfocussed employees.
• Increases employee satisfaction and production.
• Greater staff retention and increased ability to attract new staff.
Recruitment costs are thus reduced.
• Ability to attract a higher level of skills because the business is able to
attract and retain a skilled and more diverse workforce.
• Work time visits to doctor/dentist are in employees’ time.
• Measures employee’s attendance – you only pay for the time in
attendance (delayed arrival caused by traffic congestion, delayed trains
etc. are at employee’s expense).
• An incentive to complete the tasks the same day, instead of being
carried forward to the next day, since extra hours worked count towards
the final target. Greater competitiveness, for example, being able to
react more effectively to changing market conditions.
• Increased customer satisfaction and loyalty as a result of the above.

Benefits to employees
• Increased opportunity to fit other commitments and activities with work,
and make better use of their free time.
• Better control of their workloads and manage a better balance between
life and work. Allows the employees to schedule their travel; time to
avoid congestion.
• Allows employees bank time to be used for leisure/personal activities.
• Avoid the stress of commuting at peak times if their start and finish times
are staggered or if they work from home.
• Personal matters can be sorted without having to take time off.
• Helpful for people caring for children or other dependants, others also
may find flexible working helpful too.

Q 4. What is right sizing and how do companies manage right sizing?

ANS:- Right sizing of workforce refers to
employing and maintaining exact number of employees with required skills,
abilities and knowledge to perform the existing number of jobs in an
organisation. Clear and systematic job analysis, job specification and job
description provide the basis for arriving at the exact number of employees
required.
Overstaffing results in high labour cost, high cost of production in addition in
organisational policies. This ultimately affects the profitability of the
companies.
Indian organisations retrench the employees through various schemes like
voluntary retirement schemes and golden handshakes.

Q5. Explain knowledge management.

ANS:- Knowledge management is one of the hottest topics today in both the
industrial world and the information research world. In our daily life, we deal
with huge amount of data and information. Data and information is not
knowledge until we know how to get the value out of it.
Knowledge Management (KM) refers to a multi-disciplined approach to
achieving organisational objectives by making the best use of knowledge.
KM focuses on processes such as acquiring, creating and sharing
knowledge, and the cultural and technical foundations that support them.
Some of the key features of KM are
• KM may be viewed in terms of:
o People – How do you increase the ability of an individual in the
organisation to influence others with their knowledge?
o Processes – Its approach varies from organisation to organisation.
There is no limit on the number of processes.
o Technology – It needs to be chosen only after all the requirements of
a KM initiative have been established.

Companies can retain the talented people by using KM so that they are
given an opportunity to transfer and share their knowledge. They can
enhance employee retention rates by recognising the value of employee
knowledge and rewarding them for it. As human capital, knowledge-based
perspective understands workers as human assets who create the value of
the organisation. By joining and staying in the organisation, employees
invest and put at risk some of their human capital. By taking advantage of
opportunities for continuous learning and development, their human capital
is deepened and expanded.
Employees have certain obligations outside of work, to their families,
communities and themselves; so sometimes, they cannot commit their full
energies to the organisation. Efforts are needed to integrate work and
personal aspects of life, and also to engage employees, individually and
collectively, in ways to simultaneously address organisational and individual
interests and expectations. Most of the people are hired to do specific
functions based on current needs and as they have certain limited
knowledge about that area, they never think beyond that limit. Employees
hired for a specific function may never have their full capabilities assessed
or explored.

Q6. Discuss talent management

Ans:- The term talent management is usually associated with competency-based

HRM practices. Talent management decisions are often driven by a set of
organisational core competencies as well as position-specific competencies.
The competency set may include knowledge, skills, experience and
personal traits. Talent management is the recruitment, development,
promotion and retention of people, planned and executed in line with the
organisation’s current and future business goals. Because it is aimed at
building leadership strength in depth, it creates flexibility to meet rapidly
changing market conditions. A structured talent management process will
systematically close the gap between the human capital an organisation
currently has and the leadership talent it will eventually need to respond to
future business challenges.
Talent management, with a focus on soft skills, leadership development and
succession planning, is the defining trend in HR.
Matching the right person to the right job is an acknowledged need in
organisations. But one of the toughest challenges in selection that is often
overlooked is matching the right candidate to his/her immediate boss. What
makes that goal particularly tough is when the boss does not have a clue
what kind of candidate would work well with him/her.. Employers also need
to identify critical competencies that people will need to develop for their
success.
Many organisations consider their employees or human resources as the
most valuable element in their asset portfolio. People are not organisational
assets; they cannot be owned or controlled. However, people are the
owners of human capital-talent, skills, knowledge and enthusiasm, some of
which are invested in their work.

We now live in a world where the job and job requirements are constantly
changing. Many of us are in jobs that didn’t exist three years ago and three
years from now many of us will be in jobs that don’t exist now. In this
context, succession planning needs to be re-engineered, to focus on
competencies rather than positions. Thus, succession planning will evolve
into a broader talent management, regardless of the organisation structure.

Q7. Explain employee engagement and discuss about the special activities
that an organisation can introduce to engage their employees?

ANS:- Employee engagement is the level of commitment and involvement an

employee has towards their organisation and its values. An engaged
employee is aware of business circumstances and works with his/her
organisation to improve the performance within the job for the benefit of the
organisation and to make an effective organisation.
The main idea of employee engagement is to offer a positive environment to
employees so that they are free to add and desire to contribute more of their
energy, efforts and thought processes in more ways than one, and
significantly and favourably impact the goals of the organisation. It’s about
having employees feel fully connected to their company and keen about
their job. It is empowering employees to imagine and to start change from
their viewpoint. Employee engagement activates increased job satisfaction
and employee retention. It maximises workforce productivity. Employee
engagement is essential for meeting corporate sales and effective
objectives.
Six factors that define employee engagement within an organisation are:
• Challenging work for employees
• Employees get appropriate decision-making authority
• Company gives importance to customer satisfaction
• Employees have excellent career opportunities
• Company has a reputation as a good employer

• Individual work is better than team work

Employee engagement can change any company’s right over best practices
to NEXT PRACTICES. How well an organisation manages talent acquisition
and develops human capital; the capital that delivers world class customer
service that truly differentiates that company from the rest.

Special employee engagement activities

1. Family employee engagement activities

These are the most promising employee engagement activities. Bringing the
employees together for a magnificent get-together with their families does
that extra little bit. Giving employees a day off for their birthday or even
anniversary for that matter can also be considered. It will hardly cause any
dip in your business. On the other hand, it will make the employees feel that
they belong and they will do what it takes to make the business flourish.

2. Introduce employee engagement activities at work

Organisations can provide meditation rooms and play ground for the people
who work for the organisation to help them combat stress. It will
undoubtedly cost a few thousands of rupees but then employers can expect
a lot more in return. Employee engagement activities are absolutely
essential if a company want their employees to truly engage in what they do.

3. Awards for high achievers

Organisations can also introduce employee engagement activities such as
spotlight awards for the employees who outdo themselves for the sake of
the business organisation. This is truly beneficial in the sense that not only
do they reward and acknowledge the hard work of some of their staff
members; they also encourage others to do so. Obviously, if employers do
choose to introduce such employee engagement activities, they need to
make sure to keep things healthy. Perhaps the one thing employees
absolutely dislike is unfair treatment.
4. Festivals
In a diverse work culture, one of the best things that can be done in terms of
employee engagement activities is organise parties to celebrate the different
festivals of different communities without showing any discrimination.
Celebrate Diwali, Eid, Christmas and this will keep the employees feel
united and happy.