ASSIGNMENT 01 NAME ROLL NO.

. LEARNING CENTRE LEARNING CENTRE CODE COURSE SUBJECT SEMESTER SUBJECT CODE DATE OF SUBMISSION MARKS AWARDED DISRECTORATE OF DISTANCE EDUCATION SIKKIM MANIPAL UNIVERSITY IIND FLOOR , SYNIDICATE HOUSE MANIPAL-576 104 SAURABH VERMA 511220551 BHOPAL (MADHYA PRADESH) 1650 MBA HUMAN RESOUSE MANAGEMENT SET 1 SEMESTER 1 MB0043 JULY 3, 2012

_______________________ _____________ Signature of Coordinator __ Signature of Center

_________________ ___ Signature of Evaluator

MB0043-HUMAN RESOURCES MANAGEMENT ASSIGNMENT SET-1

Q.1 Training refers to the process of imparting specific skills. Training need analysis is required for effective training program. Explain in detail, all the three factors of Thayer and McGhee model of identify training needs.

Ans:- :- Given the investment that organizations make in training it is critical for organizations to ensure that the money is rightly spent. Training needs consider both the organizations demands and that of the individuals. Diversification of product lines, new technology, and hence a new kind of job or a shift in organizational culture or ways of conducting business are common organizational needs that cover most employees in the company. On the other hand demands that pertain to individuals growth and development, including induction training for new hires, or training necessitated by job rotation due to an organizations internal mobility policies are examples of individual need based training. The model we shall examine here is the Thayer and McGhee model. It is based on the following three factors: 1. Organization analysis 2. Task analysis 3. Individual analysis Organization Analysis Total Organization Analysis is a systematic effort to understand exactly where training effort needs to be emphasized in an organization. It involves a detailed analysis of the organization structure, objectives, human resources and future business plAns:- , and an understanding of its culture. The first step in organization analysis is establishing a clear understanding of both short-run and long-run business and people goals. Long-term objectives are the

broad directions in which the organizations would move over a long duration. These long-term objectives are then broken down into specific strategies and shortterm goals for each of the units/departments. In an organization, the cumulative effect of all these would ultimately lead to the long-term goal. Short-term goals are constantly in need of adaptation to the changing environment, both external and internal. For an organization analysis, there are three essential requirements: (1) an adequate number of employees available to ensure fulfillment of the business operation; (2) that employee performance is up to the required standard; and (3) that the working environment in their units/departments is conducive to fulfillment of tasks. In order to ensure the first two requirements a human resource inventory needs to be made. Data regarding positions, qualifications, vacancies, replacements and training time required for replacements have to be worked out. Job standards must also be worked out. Various efficiency and productivity indexes, or ratios such a productivity ratios, cost per unit etc, can be worked out to determine not only efficiency but also adequacy, in terms of under-manning or over-manning, of the workforce. An important dimension of organizational need-based analysis, is the diagnosis of the state of the organization "climate" or culture. While rules, procedures, systems and methods all contribute to the making of the environment, much of it is also determined by the attitude that the "people" have in the organization-for instance, the attitude that top management has towards its subordinate staff and the attitudes that members have towards work, Managers and company procedures. These attitudes are learnt, they result from the persons experience both within and outside the organization, and training inputs could be used to effect changes of attitude and consequently of the organizational climate. In analyzing the organization climate, both direct and indirect methods could be used. Direct methods are observation, use of questionnaires, and interviews. Reliance or indirect methods would not give a clear understanding of the attitudes and predispositions of employees. In fact, factors such as low absenteeism and low turnover are not by themselves indicators of positive or negative attitudes, and high or low morale. It would be better to make a careful analysis and study each indicator in a particular situation in conjunction with more direct methods like

attitude surveys. Analysis and interpretation of the data may give clear clues not only to attitudinal training needs but possibly also to kill training needs. Task Analysis This activity entails a detailed examination of each job, its components, its various operations and the conditions under which it has to be performed. The focus here is on the "task" itself and the training required to perform it, rather than on the individual. Analysis of the job and its various components will indicate the skills and training required to perform the job at the required standard. Standard of Performance: Every job has an expected standard of performance (SOP). Unless such standards are attained, not only will inter-related jobs suffer, but organizational viability will be affected, and so will the expectations that have been set for that particular job itself. If the standards set for the performance of a job are known, then it is possible to know whether the job is being performed at the desired level of output or not. Knowledge of the "task" will help in understanding what skills, knowledge and attitudes an employee should have. Methods: If an employee is asked to perform a job, the exact components of the job and the standard of performance must be known. Task analysis entails not merely a simple listing of the various job components, but also of the various subtasks. Conventional methods of job analysis are usually suitable for task analysis. They are: 1. Literature review regarding the job. 2. Job performance. 3. Job observation, 4. Data Collection regarding job interviews. For blue-collar employees, more precise industrial-engineering techniques, like time and motion studies, could be used, and for white-collar employees, work sampling observation, interviews, and job performance data analysis could be employed. The focus in task analysis approach to identifying training needs is with the clear objective of enhancing the performance standard of a given task. This information is then utilised to establish the training programme for the employee. It helps identify the skill required, either in terms of education or training, to perform the job, knowledge, and finally attitudinal pre-dispositions such as the attitudes,

towards safety, or interpersonal competence that will ensure that the job is performed optimally. Individual Analysis Individual analysis is the third component in identifying training needs. The focus of individual analysis is on the individual employee, his abilities, and the inputs required for job performance, or individual growth and development in terms of career planning. The common source for this needs analysis usually forms parts of the performance assessment process. Clues to training needs can also come from an analysis of an individuals or a groups typical behavior. The primary sources of such information are: (1) Observation at place or work, examination of job schedules, quantum of spoilage, wastage, and clues about interpersonal relations of the employees; (2) interviews with superiors and employees; (3) comparative studies of good vs. poor employees, to identify differences, skills and training gaps; (4) personnel records; (5) production reports; and (6) review of literature regarding the job and machines used. Job-knowledge tests, work sampling and diagnostic psychological tests also provide information about employees.

Q.2 India is considered as the leading emerging economy. Indias organizational success is rooted in its culture; bring out Indian culture and historical perspective to HRM. Write a brief note on Human relations movement in India. Ans:- Human Relations Movement Kautilya provides an account of the techniques of human resources management as early as 4th century B.C. in the "Artha-Shastra". As per the book, there existed logical procedures and principles in organizing labour namely the Shreni or guild system and in the principles of the co-operative sector. The wages were in terms of quantity and quality of work turned out and punishment for unnecessarily delaying the work or spoiling it. The writing of Kautilya provides an excellent discussion on staffing and personnel management, including the detailing of what today are called job descriptions, qualifications for jobs, methods of selection, employee and supervisor development, formally established incentive methods (Sarasa- saamadaana- bheda- danda- catura, the Carrot and Stick approach) and even the science of performance evaluation. The guild system was pioneered and closely followed by the establishment of the co-operative sector of craftsmen and traders organizing themselves to promote their professional interests. Numerous professional societies were similarly formed each establishing systematic procedures and policies to nurture their own interests. Significantly, these practices also respected the principles of the division of labour, which can easily be traced to the caste system that even today is a inseparable part of the Indian cultural system. The society got divided into Individuals engaging themselves in activities such as teaching, sacrifice or state management were designated as Brahmins While those specializing in fighting were termed as Kshatriyas. Individuals engaged in the areas of trade, business and agriculture were called Vaishyas and Those devoting themselves in manual work were known as Shudras. Herein hereditary facilitated the trAns:- fer of skills and training from one generation to another. Quickly even specialised skills became hereditary suchas goldsmiths, weavers, potters, blacksmiths, carpenters, hunters, charioteers, snake

charmers, architects, sculptors, armourers identified as separate communities by themselves. Between the employer and employees justice and equity laid a sound foundation for successful enterprise. During the medieval period, India experienced aggressions for around 700 years, during the Mughal rule. While trade and commerce flourished, majority of the artisAns:- and the craftsmen remained poor and lived simple lives compounded by the large and joint family system that prevailed. Low wages, oppressive political conditions and poor physique characterised the workplace. Nothing significantly changed during the British rule. Oppression and poor working conditions prevailed in all industries and intensified in the tea estates that were the key focus of the British for obvious reasons that tea was a key export product. This prevailed till the enactment of the Factory Act of 1881. This coincided with the waves of industrialization and urban growth that India witnessed. The Act brought about the first set of formal guidelines and rules that the industries had to comply with. Workers employed in the factories were allowed a week off-day and provisions were made for supervision, quality and hours of work. Sadly the act also established the minimum age of children for employment to be seven years and the maximum working hours for them to not exceed seven hours a day and only in the day-shift. This set the stage for the organization of employees to ensure fair work and pay and in 1890, the first labour organization Bombay Mill Hands Association was established. In 1905, the printers Union at Calcutta and in 1907, the Postal Union at Bombay were established. The Madras Labour Union was organized thereafter in 1918. The Central Labour Board was established in 1922 to bring together the different unions in the Bombay city and the All India Trade Union Congress was organized. The formal implementation of the Indian Trade Unions Act took place in 1926, one more landmark in the history of industrial relations in the country. There was a large scale expAns:- ion of the trade union movement after the Second World War especially after the independence. The union-government interactions significantly stepped up to accommodate for the removal of the wartime restrictions on strikes, formation of three more central labour organizations and the competition among them and the use of adjudication rather than collective bargaining techniques to resolve issues. In 1960, 45 percent of the total industrial workforce was claimed to be unionised. Today, the total membership is estimated to be around 4.3 million i.e., 28 percent of total workforce.

The post-independence period also marked the formation of the Personnel Department in different public and private sectors. Under the Factories Act, 1948, employers had to employ a Welfare Officer in a factory employing 500 or more workers. Similarly the Mines Act, 1952, empowers the Government to specify employment of welfare officer/officers. While welfare constituted a large part of the responsibilities of the Personnel department, there were other tasks and responsibilities that were assigned as well. The responsibilities included other varied functions including the employment of suitable people, workplace safety and driving awareness, training and wage and salary administration. The Personnel department however operated in a somewhat isolated manner and executed tasks as assigned by the head of the organization / core business teams. The interactions with the other heads of departments were limited and only on a need-based rationale. In the past two decades the workforce in India has evolved rapidly to emerge as a nation of intelligent, skilled and highly aware and mature professional, who stand shoulder-to-shoulder with the professional from the world over. The workplace is an equitable one which believes in the values of respect for the individual and aspiration to be the best in the world. The role of the Human Resources function can no longer be ignored or sidelined. It is viewed as a strategic partner and has found a place at the top management table. The Head of Human Resources function is selected with as much care and attention as the CEO and is consulted in all business decisions, irrespective of its direct/ indirect implications to human resources. Being a HR professional is a conscious decision that a individual takes early in his / her life and pursues it with dedication and commitment.

Human relations movement in Human relations movement in India has evolved very differently as compared to what we see in the developed economies of the USA and the UK. What is currently acting as a limitation is the enhanced awareness on the need for research based HRM practices. While there is a lot of work happening in the Indian education system to promote this, it is going to take a while before it can create a distinct body of knowledge that is reference-able. For now the industry relies on emulating westerns HR practices and customizing on a as-needed basis for the Indian corporation. For the rest the Industry forums and consortiums like the NASSCOM act as a hub bringing together organizations on a regular basis to discuss challenges

and share best practices and identify ways and meAns:- to overcome them together. So far this has been successful and working to the advantage of the Indian corporate. Leading MNC research and consulting firms like Mercer and Hewitt too contribute to the industry through carrying out research and sharing reports on a regular basis. The approach however remains analytical and less prescriptive.

Q.3 A company is being set up by a group of 3 professionals. The business objective is to sell mobile phones of a Chinese company which has come up with an inexpensive range of handset ranging from Rs.1200 to Rs.7000. They need to submit a human resource plan to their investors. Explain the process of Human Resource Planning system for this company, which covers all important steps needed for HRP. Ans:- :- Thus, it will be noted that manpower planning consists in projecting future manpower requirements and developing manpower plAns:- for the implementation of the projections. A company is being set up by a group of 3 professionals. The business objective is to sell mobile phones of a Chinese company which has come up with an inexpensive range of handset ranging from Rs.1200 to Rs.7000. Human Resource Planning Human resource or manpower planning is the process by which a management determines how an organization should move from its current manpower position to its desired manpower position. Through planning, a management strives to have the right number and the right kind of people at the right places, at the right time, to do things which result in both the organization and the individual receiving the maximum long-range benefit". The organizations business plan to invest in a particular product/market or a service will drive the HRP activity towards hiring to meet the business need. In the event an organization is divesting or shutting down a particular business unit or a manufacturing division the HRP activities would focus on the redeployment of the workforce that will be rendered unemployed as a result of the business decision. An organization wanting to retain its current market share and revenue projection at status quo would be supported by HRP activities that are limited to only filling positions falling vacant due to natural organizational attrition. Hence the HRP focus in a organizations is closely linked to the business plan and acts as a bridge between what an organization wishes to achieve and how it will go about achieving it w.r.t. the human resources requirements.

The scope of HRP is futuristic in nature and usually runs parallel to the annual business planning exercise. It commences prior to the start of the companys new financial year. For example if the business year for a company runs April to March. The business planning and the HR planning activities for the New Year beginning in April is usually completed and in place by the 1st week of April. Once the HR plan is in place it is broken up into a quarterly or even a monthly plan which then is the input for the recruitment team to go and hire accordingly. Steps in Human Resource Planning: The Human Resource Planning process consists of a set of activities, viz. a) Forecasting: manpower requirements, either by using mathematical tools to project trends in the economic environment and development in industry, or in by using simple judgmental estimates based on the specific future business plAns:- of the company; b) Creating an inventory: of present manpower resources and assessing the extent to which these resources are employed/ optimally; c) Identifying: manpower problems by projecting present resources into the future to determine their adequacy, both quantitatively and qualitatively; and d) Planning: the necessary programs of requirement selection, training, development, utilization, trAns:- fer, promotion, motivation and compensation to ensure that future manpower requirements are properly met.

Q.4 Organizations hire candidate through various sources. Discuss all the possible sources of recruitment. ? Ans:- :- Recruitment Recruitment and selection is the process of identifying the need for a job, defining the requirements of the position and the job holder, advertising the position and choosing the most appropriate person for the job. Retention meAns:- ensuring that once the best person has been recruited, they stay with the business and are not poached by rival companies. The Recruitment Sources in the recruitment process are the sources of candidates. Generally, the HRM Function recognizes two main sources of candidates for the job positions: internal and external sources of candidates. The internal recruitment sources : are very important, but they cannot be used to fill every vacancy in the organization. It is very important to realize, that in many organization, the internal recruitment is divided into two separate processes: internal recruitment and promotions. The promotion is the move of the employee when the organization initiates the whole process. The real internal recruitment is than a move of the employee initiated by the employee him or herself. The external recruitment sources : bring job candidates from the external environment using different techniques. The oldest, but still pretty efficient is a newspaper job advertisement. Many HRM Professionals do not believe in the power of the newspaper advertising, but for many jobs it is still one of the best techniques with the best cost/income ratio. The modern recruitment source: fully managed by the organization is the web job advertisement. It is very cheap, but it can flood the organization with many useless job resumes. This can make the final decision almost impossible. The cost/income ratio is always attractive, but the success rate can be really low. The other external recruitment sources :are the recruitment agencies and executive search companies. Their services are not cheap, but the organization does not have to handle all that job resumes and the good agency also makes follow ups of the job candidates in the recruitment process. A very special kind of the recruitment source :is the referral recruitment, when the employees are paid to provide the organization with their friends as potential

employees. This can look strange, but it can provide the organization with many interesting candidates, who are not reachable via any other recruitment source. INTERNAL RECRUITMENT Internal sources of Recruitment: 1. Present Permanent Employees: Organizations consider the candidates from this source for higher level of jobs due to availability of most suitable candidates for jobs relatively or equally to external sources, to meet the trade union demands and due to the policy of the organization to motivate the present employees. 2. Present temporary/casual Employees: Organizations find this source to fill the vacancies relatively at the lower level owing to the availability of suitable candidates or trade union pressures or in order to motivate them on present job. 3. Retrenched or Retired Employees: Employees retrenched due to lack of work are given employment by the organization due to obligation, trade union pressure etc. Sometimes they are reemployed by the organization as a token of their loyalty to the organization or to postpone some interpersonal conflicts for promotion. 4. Dependents of Deceased, Disabled, retired and present employees: Some organizations function with a view to developing the commitment and loyalty of not only the employee but also his family members. 5. Employee Referrals: Present employees are well aware of the qualifications, attitudes, experience and emotions of their friends and relatives. They are also aware of the job requirements and organizational culture of their company. As such they can make preliminary judgment regarding the match between the job and their friends and relatives. Campus Recruitment: These candidates are directly recruited by the Company from their college/educational institution. They are inexperienced as far as work experience is concerned. 6. Private Employment Agencies/Consultants: Public employment agencies or consultants like ABC Consultants in India perform recruitment functions on behalf of a client company by charging fees. Line managers are relieved from recruitment functions and can concentrate on operational activities. 7. Public Employment Exchanges: The Government set up Public Employment Exchanges in the country to provide information about vacancies to the candidates and to help the organization in

finding out suitable candidates. As per the Employment Exchange act 1959, makes it obligatory for public sector and private sector enterprises in India to fill certain types of vacancies through public employment exchanges. 8. Professional Organizations: Professional organizations or associations maintain complete bio-data of their members and provide the same to various organizations on requisition. They act as an exchange between their members and recruiting firm. 9. Data Banks: The management can collect the bio-data of the candidates from different sources like Employment Exchange, Educational Training Institutes, candidates etc and feed them in the computer. It will become another source and the co can get the particulars as and when required. 10. Casual Applicants: Depending on the image of the organization its prompt response participation of the organization in the local activities, level of unemployment, candidates apply casually for jobs through mail or handover the application in the Personnel dept. This would be a suitable source for temporary and lower level jobs. 11. Similar Organizations: Generally experienced candidates are available in organizations producing similar products or are engaged in similar business. The Management can get potential candidates from this source. 12. Trade Unions: Generally unemployed or underemployed persons or employees seeking change in employment put a word to the trade union leaders with a view to getting suitable employment due to latter rapport with the management. 13. Walk In: The busy organization and rapid changing companies do not find time to perform various functions of recruitment. Therefore they advise the potential candidates to attend for an interview directly and without a prior application on a specified date, time and at a specified place. 14. Consult In: The busy and dynamic companies encourage the potential job seekers to approach them personally and consult them regarding the jobs. The companies select the suitable candidates and advise the company regarding the filling up of the positions. Headhunters are also called search consultants. 15. Body Shopping: Professional organizations and the hi-tech training develop the pool of human resource for the possible employment. The prospective employers contact these organizations to recruit the candidates. Otherwise the organizations themselves approach the prospective employers to place their human resources. These

professional and training institutions are called body shoppers and these activities are known as body shopping. The body shopping is used mostly for computer professionals. Body shopping is also known as employee leasing activity. 16. Mergers and Acquisitions: Business alliances like acquisitions, mergers and take over help in getting human resources. In addition the companies do also alliances in sharing their human resource on adhoc basis. 17. E-recruitment: The technological revolution in telecommunications helped the organizations to use internet as a source of recruitment. Organizations advertise the job vacancies through the worldwide wed (www). The job seekers send their applications through e-mail using the Internet. 18. Outsourcing: Some organizations recently started developing human resource pool by employing the candidates for them. These organizations do not utilize the human resources; instead they supply HRs to various companies based on their needs on temporary or ad-hoc basis. EXTERNAL RECRUITMENT External sources of Recruitment: 1. Press Advertisements Advertisements of the vacancy in newspapers and journals are a widely used source of recruitment. The main advantage of this method is that it has a wide reach 2. Educational Institutes Various management institutes, engineering colleges, medical Colleges etc. are a good source of recruiting well qualified executives, engineers, medical staff etc. They provide facilities for campus interviews and placements. This source is known as Campus Recruitment 3. Placement Agencies Several private consultancy firms perform recruitment functions on behalf of client companies by charging a fee. These agencies are particularly suitable for recruitment of executives and specialists. It is also known as RPO (Recruitment Process Outsourcing) 4. Employment Exchanges Government establishes public employment exchanges throughout the country.

These exchanges provide job information to job seekers and help employers in identifying suitable candidates 5. Labour contractor Manual workers can be recruited through contractors who maintain close contacts with the sources of such workers. This source is used to recruit labour for construction jobs 6. Unsolicited Applicants Many job seekers visit the office of well-known companies on their own. Such callers are considered nuisance to the daily work routine of the enterprise. But can help in creating the talent pool or the database of the probable candidates for the organization 7. Employee referrals / Recommendations Many organizations have structured system where the current employees of the organization can refer their friends and relatives for some position in their organization. Also, the office bearers of trade unions are often aware of the suitability of candidates. Recruitment Management can inquire these leaders for suitable jobs. In some organizations these are formal agreements to give priority in recruitment to the candidates recommended by the trade union. 8. RECRUITMENT AT FACTORY GATE Unskilled workers may be recruited at the factory gate these may be employed whenever a permanent worker is absent. More efficient among these may be recruited to fill permanent vacancies.

Q.5 Write short notes on A) MBO and B) 360 Degree ? ANS:- A) MBO - Management by Objectives (MBO) is a process in which a manager and an employee agree upon a set of specific performance goals, or objectives, and jointly develop a plan for reaching them. The objectives must be clear and achievable, and the plan must include a time frame and evaluation criteria. For example, a salesperson might set a goal of increasing customer orders by 15 percent in dollar terms over the course of a year. MBO is primarily used as a tool for strategic planning, employee motivation, and performance enhancement. It is intended to improve communication between employees and management, increase employee understanding of company goals, focus employee efforts upon organizational objectives, and provide a concrete link between pay and performance. An important factor in an MBO system is its emphasis on the results achieved by employees rather than the activities performed in their jobs. Implementing an MBO Program To be successful, an MBO program should be part of a small business's overall system of planning and goal setting. The first step in implementing MBO is to establish long-range company goals in such areas as sales, competitive positioning, human resource development, etc. A small business owner may find it helpful to begin by defining the company's current business and looking for emerging customer needs or market trends that may require adaptation. Such long-range planning provides a framework for charting the company's future staffing levels, marketing approaches, financing needs, product development focus, and facility and equipment usage. The next step in establishing an MBO system is to use these long-range plAns:- to determine company-wide goals for the current year. Then the company goals can be broken down further into goals for different departments, and eventually into goals for individual employees. As goal-setting filters down through the organization, special care must be taken to ensure that individual and department goals all support the long-range objectives of the business. Ideally, a small business's managers should be involved in formulating the company's long-range goals. This approach may increase their commitment to achieving the goals, allow them to communicate the goals clearly to employees, and help them to create their own short-range goals to support the company goals.

At a minimum, a successful MBO program requires each employee to produce five to ten specific, measurable goals. In addition to a statement of the goal itself, each goal should be supported with a meAns:- of measurement and a series of steps toward completion. These goals should be proposed to the employee's manager in writing, discussed, and approved. It is the manager's responsibility to make sure that all employee goals are consistent with the department and company goals. The manager also must compare the employee's performance with his or her goals on a regular basis in order to identify any problems and take corrective action as needed. Formulating goals is not an easy task for employees, and most people do not master it immediately. Small business owners may find it helpful to begin the process by asking employees and managers to define their jobs and list their major responsibilities. Then the employees and managers can create a goal or goals based upon each responsibility and decide how to measure their own performance in terms of results. In the Small Business Administration publication Planning and Goal Setting for Small Business, Raymond F. Pelissier recommended having employees create a miniature work plan for each goal. A work plan would include the goal itself, the measurement terms, any major problems anticipated in meeting the goal, a series of work steps toward meeting the goal (with completion dates), and the company goal to which the personal goal relates. Small business owners may also find it helpful to break down employee goal setting into categories. The first category, regular goals, would include objectives related to the activities that make up an employee's major responsibilities. Examples of regular goals might include improving efficiency or the amount and quality of work produced. The second category, problem-solving goals, should define and eliminate any major problems the employee encounters in performing his or her job. Another category is innovation, which should include goals that apply original ideas to company problems. The final category is development goals, which should include those goals related to personal growth or the development of employees. Dividing goal setting into categories often helps employees think about their jobs in new ways and acts to release them from the tendency to create activity-based goals. Another requirement for any successful MBO program is that it provide for a regular review of employee progress toward meeting goals. This review can take place either monthly or quarterly. When the review uncovers employee performance that is below expectations, managers should try to identify the problem, assign responsibility for correcting it, and make a note in the MBO files.

Small Business Owner Involvement Given that MBO represents an unusual way of thinking about job performance for many employees, small business owners may find it best to introduce MBO programs gradually and to include a formal training component. A small business's managers can be introduced to MBO through a classroom seminar taught by the small business owner or by an outside consultant. Either way, it is important that the managers be allowed to express any doubts and reservations they may have, and that the training include preparation of an actual goal by each participant. When MBO is brought back to the small business, it may be best to start slowly, with each employee only preparing a few goals. This approach will allow employees to learn to prepare goals that are achievable, develop ways to measure their own performance, and anticipate problems that will prevent them from attaining their goals. Another factor determining the success of MBO programs is the direct involvement of the small business owner. Pelissier noted that the small business owner needs to champion the MBO system from the beginning, as well as set an example for the company's managers, in order for it to succeed. Since managers have a natural tendency to focus their attention upon their own functions rather than on the goals of the overall organization, it can be difficult to educate them about MBO. It is also important for the small business owner to remain patient during the implementation phase: in fact, Pelissier claimed that it may take three to four years before an MBO program creates quantifiable results in a small business. As David Dinesh and Elaine Palmer indicated in their article for Management Decision, partial implementation is one of the major potential problems associated with MBO programs. Implemented correctly, however, MBO can provide a number of benefits to a small business. For example, MBO may help employees understand how their performance will be evaluated and measured. In addition, by allowing them to contribute to goal setting, it may increase the motivation and productivity of a small business's employees. MBO also stands to provide a small business's employees with the meAns:- to prioritize their work on a daily basis. Although employee performance evaluation is still a complex task under an MBO system, MBO can also provide an objective basis for evaluation. However, it is important to note that an employee's failure to meet reestablished goals can be attributed to many things besides personal failure. For example, the failure to meet goals could result from setting the wrong objectives, not taking into account company

restrictions that may impinge upon performance, establishing an improper measures of progress, or a combination of all of these factors. Overall, establishing an MBO system in a small business may be difficult, but it is usually worth it. The most difficult aspect of implementing MBO may be simply getting people to think in terms of results rather than activities. Even when an MBO system is implemented well, a small business may encounter problems. For example, employees may set low goals to ensure attainment. Similarly, managers' objectives may focus on the attainment of short-term rather than long-term goals. Finally, employees and managers alike may fall victim to confusion and frustration. Some of the most common reasons for the failure of an MBO program include a lack of involvement among the top management of a small business, inadequate goal setting on a company-wide basis, implementation of an MBO system that occurs too rapidly, or the failure to instruct a company's managers and employees in the basics of MBO. But even though establishing an MBO program may be problematic, it can also offer significant rewards to small businesses.

B. 360 Degree 360 Degree Appraisal - Typically, 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 the full circle of sources depicted in the diagram below. This multiple-input approach to performance feedback is sometimes called "360-degree assessment" to connote that full circle.

The 360 degree matrix

There are no prohibitions in law or regulation against using a variety of rating sources, in addition to the employees Manager, for assessing performance. Research has shown assessment approaches with multiple rating sources provide more accurate, reliable, and credible information. For this reason, HR Management supports the use of multiple rating sources as an effective method of assessing performance for formal appraisal and other evaluative and developmental purposes. The circle, or perhaps more accurately the sphere, of feedback sources consists of Managers, peers, subordinates, customers, and ones self. It is not necessary, or always appropriate, to include all of the feedback sources in a particular appraisal program. The organizational culture and mission must be considered, and the purpose of feedback will differ with each source. For example, subordinate assessments of a Managers 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 teams or agencys results. The objectives of performance appraisal and the particular aspects of performance that are to be assessed must be established before determining which sources are appropriate. We shall discuss the contributions of each source of ratings and feedback. In addition, precautions are listed to consider when designing a performance management program that includes 360-degree assessment. Superiors: Evaluations by superiors are the most traditional source of employee feedback. This form of evaluation includes both the ratings of individuals by Managers on elements in an employees performance plan and the evaluation of programs and teams by senior managers

Q.6 Hawthorne study has played a critical role in human resource development: Elucidate the Hawthorne study and explain its contribution to human relations movement. Ans:- . The Hawthorne effect is a form of reactivity whereby subjects improve or modify an aspect of their behavior being experimentally measured simply in response to the fact that they are being studied, not in response to any particular experimental manipulation. The term was coined in 1955 by Henry A. Landsberge when analyzing older experiments from 1924-1932 at the Hawthorne Works (a Western Electric factory outside Chicago). Hawthorne Works had commissioned a study to see if its workers would become more productive in higher or lower levels of light. The workers' productivity seemed to improve when changes were made and slumped when the study was concluded. It was suggested that the productivity gain was due to the motivational effect of the interest being shown in them. Although illumination research of workplace lighting formed the basis of the Hawthorne effect, other changes such as maintaining clean work stations, clearing floors of obstacles, and even relocating workstations resulted in increased productivity for short periods. Thus the term is used to identify any type of short-lived increase in productivity The term gets its name from a factory called the Hawthorne Works, where a series of experiments on factory workers were carried out between 1924 and 1932. This effect was observed for minute increases in illumination. Evaluation of the Hawthorne effect continues in the modern era. Most industrial/occupational psychology and organizational behavior textbooks refer to the illumination studies. Only occasionally are the rest of the studies mentioned In the lighting studies, light intensity was altered to examine its effect on worker productivity Contiribution Human Relations Movement refers to those researchers of organizational development who study the behavior of people in groups, in particular workplace groups. It originated in the 1930s' Hawthorne studies, which examined the effects of social relations, motivation and employee satisfaction on factory productivity. The movement viewed workers in terms of their psychology and fit with companies, rather than as interchangeable parts.

"The hallmark of human-relation theories is the primacy given to organizations as human cooperative systems rather than mechanical contraptions." George Elton Mayo stressed the following:
1. Natural groups, in which social aspects take precedence over functional

organizational structures 2. Upwards communication, by which communication is two way, from worker to chief executive, as well as vice versa. 3. Cohesive and good leadership is needed to communicate goals and to ensure effective and coherent decision making (Wilson & Rosenfeld, Managing Organizations, McGraw Hill Book Company, London, p.9.) It has become a concern of many companies to improve the job-oriented interpersonal skills of employees. The teaching of these skills to employees is referred to as "soft skills" training. Companies need their employees to be able to successfully communicate and convey information, to be able to interpret others' emotions, to be open to others' feelings, and to be able to solve conflicts and arrive at resolutions. By acquiring these skills, the employees, those in management positions, and the customer can maintain more compatible relationships.