Question 1: The success of HR plans depends on the accuracy of HR forecasts. What is the meaning of this HR forecasting?

Describe the following HR forecasting techniques: (a) Index/ Trend analysis and (b) Expert forecasting Answer:- Meaning OF HR Forcasting :- 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. 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. etween the operational index and the Demand for Labour. Sales Number of units produced Number of clients serviced Production/Direct Labour Hours Trend analysis can be used for forecasting overall Organisation, Aub-units, or Indirect (Staff) and Direct (Line) Manpower requirements. The Index/Trend analysis involves the following steps: 1. Select the appropriate business/operational index Select a readily available business index, sales level that is known to have direct influence on the organisational demand for labour. 2. Track the index over time Once the index has been selected, it is necessary to go back in time for at least four or five most recent years. 3. Track the workforce size over time Record the historical figures of the total number of employees. 4. Calculate the average (or most recent) ratio of the business index to the workforce size (Employee Requirement Ratio) In this step, the ratio of number of employees required for each thousand rupees of sales is obtained by dividing each years number of employees by the level of sales. 5. Calculate the forecasted HR demand Multiply the annual forecasting for the business index times the average employee requirement ratio for each future year to arrive at forecasted annual demand for labour. 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. 1

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 summarises, without however disclosing the majority opinion in his summary. 5. On the basis of his summary, the coordinator develops a new set of questionnaire and circulates those among the experts. 6. Experts then answer such set of questions. 7. The coordinator repeats the process till such time he is able to synthesise from the opinion of the experts.

Question: 2. Write a brief note on: (i) Selection test and (ii) Interviews
Answer:- a. Following are a few of the selection tests conducted by organisations:
Intelligence test Measures the general mental ability of individuals. This is the first standardised and most widely used test developed by psychologists. Aptitude test Measures the ability to learn a given job, when given adequate training. Achievement test Measures the job related proficiency and knowledge of the applicants. Situational test The candidates are exposed to simulated business situations and their responses are recorded and evaluated. Interest test If an individual has a genuine interest in a job, he is likely to perform well in the given task. Personality test Helps in assessing an individuals value system, emotions, maturity and other personal characteristics. Polygraph test Used to check the validity and truthfulness of an applicant by monitoring the physical changes in his body as he answers a series of questions. Normally used for screening applicants for defence and high-profile security jobs where it is essential that the candidate is completely trustworthy. Graphology Examines an individuals handwriting to assess his or her personality.

b. Interviews Most organisations use interviews as an essential step in the selection process. An interview helps in assessing the applicants profile and comparing it with the job profile for suitability. Some applicants 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
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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. interview The objective of a stress interview is to test the applicants 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 todays organisations where all functions are interdependent and every job involves crossfunctional 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 candidates 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.

Question 3. What do you mean by management development? What are its objectives and
methods? Answer:- 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. Objectives of management development The main objectives of management development programmes are: on and also equipping them with the necessary skills to handle various situations. Management Development Methods Following are a few management development methods: -the-job development methods

On-the-job development methods The different on-the-job development methods are: a) Coaching: Coaching involves one manager playing an active role in guiding another manager. The coach/trainer teaches the trainee what to do, how to do it, and rectifies any mistakes committed by the trainee. b) Job rotation: Job rotations play an important role in developing the skill set of a manager. c) Understudy assignments: In this method of development, a senior manager selects and trains a trainee manager from among his/her subordinates, who at a future time will be capable of handling the senior managers responsibilities. d) Multiple management: This technique enables junior managers to participate in board and committee meetings, which are normally attended only by senior and top level managers. Off the job development methods The different types of off the job development methods are: (i) Simulation exercises: The popularly used simulation exercises are:

a) Case study: Case studies are prepared based on actual experience of the organisation. Trainees study, analyse and discuss the case, identify the hidden problem and try to get an appropriate solution. b) Business games: In this method, the trainees are divided into different groups and teams. They play the roles of competing firms in a simulated market. c) Role play: In this method, participants enact roles to solve problems that are common in real life. They react to the situation and to one another, in the same way as they would do in their managerial jobs. d) Incidental method: This method aims to develop the intellectual ability, practical judgment and social awareness of the employees. Each employee is given a written incident which he analyses, identifies the problems and the probable causes and suggests a solution. e) In basket method: This is a method of development that simulates the aspects of a managers job. The trainee receives documents similar to the items normally found in managers in basket, such as memos, letters, reports etc. (ii) Sensitivity training: Sensitivity training or Laboratory training is a method which helps to change the behaviour through unstructured group interaction. Training groups (T-groups) that seek to change behaviour through unstructured group interaction. Provides increased awareness of others and self. Increases empathy with others, listening skills, openness, and tolerance for others. (iii) Transactional analysis: This is a theory of personality development which provides an approach for defining and analysing the interaction between people. The basic theory behind transactional analysis is that an individuals personality comprises three ego states, namely, the parent, the child and the adult ego states. The parent ego state is characterised by a feeling of superiority and authority. A person in the parent ego state is dominating and authoritative. The child ego state includes all those impulses that are common in an infant. A person in the child ego state is either obedient or manipulative, charming at one point of time and repulsive at another. The adult ego state is objective and rational. In the adult state, actions such as processing of data, estimation of probabilities or alternatives and making decisions are done systematically and logically. (iv) Conferences: A meeting of people to discuss a topic of common interest is referred to as a conference. (v) Lectures: A lecture is the simplest technique of presenting and explaining a series of facts, principles and concepts.

Question: 4 Suppose you have joined as HR executive in a software company.

The first task you have been assigned is to work on Career planning. What are the various career programs will you consider?
Answer:- There are four distinct elements of career planning programme:

opportunity alignment

Individual assessment and need analysis 5

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 employees 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 employees own capabilities, but also in terms of the organisations 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 employees aspirations and of course, his competencies.

Question 5.Define performance review. What are the types of appraisal methods? Describe the ways to evaluate an employee individually. Answer: Performance Reviews
Performance review is a systematic activity through which the organisation determines the extent to which the employee is delivering as per agreed objectives that is aligned to business results. Generally speaking, the HR specialists design and implement the Performance Management System (PMS). They work with the line managers to review the employees performance and maintain the records. Apart from focusing on performance, todays organisations are emphasising the need for employee development focus in implementing an effective PMS.

Types of Appraisal Methods: Ideally every individual in any organisation needs to be appraised. The appraisal system should be able to take care of this and it should also meet the needs and objectives of the organisation. In a broader sense, the type of appraisal template used to assess performance, should focus on the organisational objectives. Following are the types of appraisal methods:
Trait-based appraisal This method is used to assess personality or personal characteristics such as loyalty, communication skills, level of initiative, decision making, etc. This assesses what the person is than what the person does on the job. This is common in companies that are in the business of service and customer satisfaction. Since it is difficult to define the criteria for a trait accurately, rater/manager bias is high and providing feedback is a challenge as the focus is on personal attributes. Behaviour-based appraisal This method focuses on the appraisal of what an employee does on the job. It evaluates the behaviour and measures what an employee should do differently. This is common in organisations that have high customer interface such as hospitality/NGO. As the focus is on the assessment of behaviour, rater/manager bias remains a challenge here as well.

Results-based appraisal This method measures the work results objectively. The focus is on the outcome/deliverables from the job that alone serves as the measure for success. It is not possible to use this method in jobs that depend on team work or where the job is service/support based.

Most organizations use a combination of trait, behavior and results in their appraisal systems as all three are important. It provides a holistic and fair assessment of the individual.
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. a) 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. For example, outstanding may be assigned a score of 4 and unsatisfactory a score of 0. Total scores are then computed. In some plans, greater weights are assigned to more important traits. Evaluators are often asked to provide supporting comments for each rating in a sentence or two. b) 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. The HR Department adds the number of statements in each category (for example, effective behaviour), and they are summed into an effectiveness index. Forced choice can be used by superiors, peers, subordinates, or a combination of these in evaluating employees. c) 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. The essay summarises and elaborates on some or all of the ratings or discusses added dimensions which are not captured by the 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 employees comments, therefore, it is not very popularly used. d) 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: 1. KRA-key result areas 7

2. KPA-key performance areas 3. Targets 4. Commitments These performance objectives are designed using the SMART framework. SMART refers to Specific, Measurable, Achievable, Results and Time-bound. All objectives must conform to this framework. MBO is one of the most effective methods for performance review primarily because it is identified at the beginning of the review period and is regularly reviewed for achievements and modified again in consensus between the employee and the manager. The objectives are then broken up into half yearly, quarterly and monthly objectives, again keeping in mind the SMART framework. All along the process both the employee and the manager are in consensus of the objectives and the timelines, as well as the deliverables. At the end of the review year, the MBOs are reviewed for completion with the SMART framework. The evaluation is a joint review of the degree of achievement of the objectives. In case of a new joinee or internal movements between jobs/assignments/teams, the objectives are set after about 6-8 weeks of being in the new process. 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. The manager "records examples of critical (outstandingly good or bad) behaviours in each of the categories. This log is used to evaluate the employee at the end of the period. The manager can be specific in making positive and negative comments, and it avoids recency bias. The critical incident technique is normally used by superiors than in peer or subordinate evaluations.

f) Checklists and weighted checklists: This is another type of individual evaluation method. In its simplest form, checklist is a set of objectives or descriptive statements of job-related characteristics or behaviour. If the manager believes that the employee possesses the traits listed, the manager checks the items, if not it is left blank. The number of items selected from the list is the score of the employee. A recent variation is the weighted checklist. Managers or HR specialists familiar with the job of evaluation, prepare a large list of descriptive statements about effective and ineffective behaviour on jobs, similar to the critical incident process. Raters rate the elected items on a scale from excellent to poor (0-9).The managers or other raters receive the checklists without the scores, and they check the items that apply and assign their scores on the items. The
employee's evaluation is the average of sum of the scores (weights) on the items checked by all raters. Checklists and weighted checklists can be used by evaluators who are superiors, peers, or subordinates, or by a combination. Behaviourally Anchored Rating Scale (BARS): The most prevalent technique which is a variation of the critical incident approach is the Behaviourally Anchored Rating Scale (BARS). This technique is also called the Behavioural Expectation Scale (BES). In BARS, the anchor points are defined in detail using examples of behaviour that represent particular levels of performance. The development of BARS is a costly and time-consuming process. A group of knowledgeable employees identify and detail the important dimensions that 8

make up for effective performance. A second group illustrates the list of critical incidents to illustrate the differences in the dimensionseffective, average, ineffective, poor. Each critical incident is then assigned with the dimensions and then the rating for the employee is attached. For example, smiles and greets customers is the incident that is reliably sorted into the customer service dimension of performance, and for employee X it is rated as o whether it represents outstanding, above-average, average, or below-average.

Question: 6. Many organizations maintain a disciplinary policy or system to regulate the behavior of the employees and deal with acts of indiscipline. Describe such various disciplinary action penalties in business organizations. Answer: Disciplinary Action Penalties
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: 9

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. Gregors 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.

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