Master of Business Administration- MBA Semester 3 MU0010 Manpower Planning and Resourcing - 4 Credits (Book ID: B1228) Assignment

t Set- 1 (60 Marks)

Q6. Mr. Aravind works at K&D Company. Recently two fellow team members were shifted to another team and their work was handed over to him. This affected his performance and also left him dissatisfied. Finally, he forwarded his resignation letter to the HR Department. The HR Manager decided to conduct an exit interview with Mr. Aravind. What questions do you think that the HR manager would want to ask Mr.Aravind? Answer: Possible Exit Interview Questions Tell me about how you decided to leave the organization? What could have been done early on to prevent this situation developing or lend a basis for you to stay with us? How do you feel about this organization? What extra responsibility or position would you have welcomed that you were not given? How could the organization have enabled you to make fuller use of your competency and potential? What training would you have liked or required that you did not get, and what effect did this have? How well do think your training and development requirements were evaluated and met? What do you say about communications within the organization and your department? What changes would you make towards the environment or feel of the organization? What changes or improvement could be made to the way that you were inducted for your role? What will you say about the way your performance was measured, and the feedback given for your performance results? What will you say about how you were motivated, and how that can be improved? Can you provide any unreasonable examples of policy, rules or instructions you have encountered here? What particularly is it about the other organization that makes you want to join them? What are they offering that we are not? (If appropriate) Can you be persuaded to renegotiate or discuss the possibility of staying? A proper closure in the exit interview, for both the organization and departing employee encourages positive and professional ties between the two

Master of Business Administration- MBA Semester 3 MU0010 Manpower Planning and Resourcing - 4 Credits (Book ID: B1228) Assignment Set- 2 (60 Marks) Q2. What are the steps involved in manpower planning? Answer: Steps in Manpower Planning Manpower planning requires that an estimate of the present and future needs of the organization should be compared with the available manpower and future predicted manpower. Appropriate steps are then taken to bring demand and supply into balance. The outcome of this planning is a well thought out and logical manpower demand plan for varying dates in the future which can then be compared with the crude manpower supply schedules. The comparisons will then indicate what steps should be taken to achieve a balance. The 5 steps in the manpower planning process are: Evaluate present manpower inventory Manpower forecasting Develop a manpower sourcing plan or retrenchment plan Manpower allocation Building requisite competencies 1. Evaluate Present Manpower Inventory It is very important to evaluate the present manpower status before making a forecast for future manpower planning. To evaluate the present manpower status a department by department analysis and a job-role by job-role analysis is conducted to arrive at the required manpower versus the available manpower. This is accumulated across the organization at different levels and departments. The final report will consolidate and state the required manpower versus the available manpower in terms of the quantitative analysis. Another analysis on the qualitative side conducted similarly shows the competencies required versus competencies available for each of the job roles. This provides the present manpower inventory. There may be excess or deficit or in extremely few cases just the right number quantitatively. The report on the qualitative front may rarely have a 100% match between required competencies versus available competencies. 2. Manpower Forecasting Manpower planning is done based on the manpower forecasts. The common manpower forecasting techniques are: (i) Expert Forecasts: This includes formal expert surveys, informal decisions and the Delphi technique. (ii) Trend Analysis: Manpower needs can be seen through the past practice of the firm or organization keeping the principle year as a basis and a central tendency of measure (iii) Work Load Evaluation: This depends on the nature of the work load in a branch, department, or a division in a firm or organization. (iv) Work Force Evaluation: As production and the time duration are to be kept in mind, allotments have to be made for getting the total manpower requirements. (v) Other Methods: A few mathematical models with the help of computers are also used to forecast manpower needs.

3. Develop a Manpower Sourcing Plan or Retrenchment Plan Once the current inventory is compared with the future manpower forecasts then the manpower sourcing or retrenchment plan is drawn. The sourcing plan includes recruitment, selection, placement, hiring temporary staff and outsourcing. You will learn more about the sourcing plan in unit 6. The retrenchment plan involves sending show-cause notices to bottom performers called bottom scraping, asking people to leave the organization by providing the requisite severance allowance, allowing employees to go on a sabbatical and finally out-placing employees in other organizations to reduce the manpower. It is harder to retrench manpower. The need for retrenchment could also be minimized by very objectively approving any additional manpower. 4. Manpower Allocation & Retention Manpower allocation helps in managing the impact of deficits and excess in manpower supply through promotions, transfers and job-rotations. Enhancing manpower utilization requires managing the dynamics of leadership and motivation. Manpower retention would mean taking necessary steps to ensure that the organization provides a conducive-atmosphere to the employees to perform and keeps each employee engaged. 5. Building Requisite Competencies Once the future manpower forecasts are compared to the current inventory, there may be some gaps in competencies amongst the available internal resources for them to qualify for the future manpower forecasts. In such cases organizations may choose to develop resources through training programs. A training calendar is designed to ensure competencies of existing staff are enhanced to meet the future manpower forecasts. Additional training programs may be designed when organizations are diversifying or expanding. Training programs may be designed to train existing resources on the latest improvements and advancements in technology or the related business subject. Training is provided to improve the knowledge, skill and capability of the employee.

Q5. What are the major hindrances that one encounters while carrying out manpower planning? Answer: Hindrances in Manpower Planning The major hindrances in manpower planning are as follows: Non Optimal Utilization of Manpower The biggest obstacle for manpower planning is the fact that organizations cannot optimally use their manpower once manpower planning begins. During manpower planning, the number of resources required for a job is decided based on the total work load, the process to be followed and the criticality of the job. Once the analysis is done, it is decided that one person can only handle a certain portion of the workload and hence for any additional workload, additional resources need to be hired proportionately. Over a period of time, the total workload may change, the processes may change, the criticality of the job may change and new technological innovations may make the job far easier to accomplish. However when the same employees are asked to step up the productivity, they resist accepting any additional workload and resist even deployment of new technology, hence making it hard for the management to maximize the use of their manpower. This makes the organizational processes ineffective or inefficient and hence the organization as a whole becomes ineffective or inefficient and loses out to competition which may be able to remain lean in terms of number of resources and highly effective and efficient. Absenteeism Every organization has witnessed an increase in absenteeism. This has lead to errors creeping in the manpower planning exercise. If the plan stated that 4 employees are required to manage the total workload, increased degree of absenteeism leads to the partial failure of the manpower planning exercise. Lack of Employable Labor People are not employable. The slow pace of acquiring business required competencies by people at large also result in low employee productivity. All manpower planning is done basis a certain productivity level considered as a benchmark. And low productivity has negative implications for manpower planning. Modern Manpower Control and Review Processes Any increase in manpower is to be approved by the top most levels of the management today. Manpower budgets created on the basis of manpower planning act as control mechanisms to keep the manpower cost and headcount under certain defined limits. Usually the productivity of any organization is calculated using the formula: Productivity = Output / Input. Example: 5 products are sold during the day/ 8 hours of effort put in during the day. i.e., the sales productivity of the employee is 5 products per day. But a rough guide of employee productivity used today is: Employee Productivity = Total Production / Total no. of employees Example: 50 products are sold during the day/12 employees were responsible for selling 50 products during the day. i.e., the sales productivity of each employee is 4.17 products per day.

The rate of manpower turnover, exit interviews and absenteeism are sources of measuring dissatisfaction level of manpower. To eliminate employee dissatisfaction and to ensure better utilization of resources a study of the reasons causing the dissatisfaction level is required. Overtime is paid to employees due to real shortage of manpower, inefficient management or improper utilization of manpower. Manpower planning requires a study of the overtime statistics. The current pace at which business is done today is very fast. Many organizations either do not have data or are overwhelmed with data. Non availability and non utilization of the data are also reasons for complicating the situation. In some organization even the existing technologies available for manpower planning are not optimally used. This also creates obstacles in manpower planning. Example: Business Scenario for Obstacles in Manpower Planning employable labor) (Lack of

The entire BPO industry is suffering with this scenario of lack of employable labor. In a dynamic business scenario, manpower planning is critical to organizational growth and stability. It is integral to recruiting, retaining, retraining and redeployment of talent. Linked to business needs of the organization, the process of manpower planning is much more complicated than it seems. Manpower planning involves developing skills and competencies of existing employees to meet market demands which can change with time. Manpower planning also requires having a contingent plan in place in case of any eventuality (talent shortage). Out of every 100 candidates interviewed only 10 of them are employable. Majority of them are unemployable by the BPO industry. Its a known fact in the BPO industry. The manpower planning exercise requires BPO companies to budget for travel to the interiors of the state, travel to other states. It also needs to budget for providing new joiners with relocation allowance. It has to make provision for some joining bonuses as well when the hiring by all companies was at its peak. It decided to lower the level of hiring and spend additional time on training candidates. It needed to engage external organizations to evaluate the voice and accent capability or the potential of the candidate in order to validate its own findings with that of an independent agency, so that no potential candidate was rejected and no candidate who was not trainable was hired. The manpower planning required inclusion of non standard practices to ensure that the hiring targets were met so as to ensure that migration of client business processes from other countries to India was as per committed timelines. In fact some of the BPOs in India also have operations in countries like Philippines. Due to the inability of the India BPOs to hire in some cases, work is split up between India and Philippines.

Q6. Ms. Lalita Singh has joined Triumphant India Private Limited. As an HR Manager, how would you prepare an induction programme for her? Answer: Company Induction We will prepare an induction programme for Ms. Lalita as follows : HR Department The Human Resource department handles all the details of recruitment and gives the official start date as a new employee of staff. The HR Department also issues the staff identification card, keeps your record and will issue you with some information when you collect your staff ID card/number. Department The department where new employees will work and the management team will welcome new employee and ensure that he/she becomes familiar with the work area, colleagues, important policies and procedures, health and safety issues and most importantly a new employees immediate work needs. Finance Department This will take care of the new employees salary and pension arrangement plans.

Employee Training and Development HR department co-ordinate the welcome, induction and orientation process information and formal induction events. Employee training and development will provide details of training courses, dates and financial assistance for training and development for all new employees. Information is generally available in hardcopy format or on the company website. 1.Information Technology This will provide new employees with IT support, online access login details and e-mail account etc. As a new employee joining this large organisation it will take time to settle in and fit in, find out what you need to know. In all cases the HR manager or other experienced employees should help new employees with any immediate questions you may have. Other key staff contacts are ready to help and welcome new colleagues. Formal Induction Informal Induction 1.Informal Induction In this the new employees are instructed to report to the HR department for an explanation of organization policies before being referred to the manager for on the job briefing on specific work process. In informal orientation, new employees are put directly on the job and are expected to adjust themselves on the new job and organization. Informal orientation tends to be brief; may last for an hour or may be less than an hour. Example: A sales person is asked to go along with a tenured high performing sales person or his manager to make sales calls and learn about the product and the selling skills during the calls.

2. Formal Induction Here the management has a structured programme which is executed when new employees join the firm. Formal induction is more elaborate and is spread over a couple of weeks or months. Most formal induction programmes consist of three stages: General introduction to the organization often given by the HR department. Specific orientation to the job and the department, typically given by the supervisor or manager. Follow up meeting to verify that the important issues have been addressed and employee questions have been answered. This follow up meeting usually takes place after a week of joining between the new employee and the manager. A formal induction programme is shared by the HR specialists and managers. The HR manager covers areas as: Introduction: to supervisors, trainers and colleagues. Organization issues: organization history, history of the employer, names and titles of important executives, departments, layout of physical facilities, probationary period, product line, production procedure, organization policies and procedures, disciplinary regulations, safety procedures. Employee benefits: pay scale, pay days, vacation and holidays, rest breaks, training and education benefits, counselling, insurance benefits, retirement programme etc. Supervisors outline the main job duties: job location, task and overview of job, safety requirements and relationship to other jobs. The choice between formal and informal induction will depend mainly on the goals and objectives of the organization. The more formal the programme the more the new employee will acquire a set of standards. Many organizations prepare certain induction manual and induction powerpoint presentations which they keep on the intranet . These can be accesed only by the company employees. It is helpful when employees join in small numbers at different point of time, when a separate induction programme cannot be held. This is also helpful to clarify any doubts an employee may have regarding certain organizational practices. In an informal programme individual differences are maintained.

Master of Business Administration- MBA Semester 3 MU0011 Management and Organizational Development - 4 Credits (Book ID: B1229) Assignment Set- 1 (60 Marks)
Q6. Suppose you are an OD practitioner. What are the challenges that you have be prepared for while carrying out organization development? Answer: The following are Challenges of OD for which I would be prepared while carrying out organizational development:Meeting goals and objectives of an organization by the support and execution of defined strategies. Maintaining and addressing organizational culture during implementation of the change management efforts. Applying change management concepts to organization and well as products or services provided. Enhancing productivity and profitability of an organization by effective change management. Aligning performance of individuals and teams with organizational goals and objectives. Communicating change management objectives and processes to participants. Motivate the workforce to implement and accept the organizational changes Attracting and retaining employees and their talent while implementing change management efforts. Effective usage of IT to attain organizational goals while managing change effectively. Using IT for KM, innovation, competitive advantage, and business strategies. Ensuring business objectives are attained by following organizational values and ethics. Building leadership and capable management workforce for today and future. Improving the problem solving process by managing change. During and after implementation of change efforts, maintaining same relationship with the business partners, customers, and vendors. Reducing the six gaps - communication gap, cultural gap, confidence gap, skills gap, information gap, and timing gap.

Master of Business Administration- MBA Semester 3 MU0011 Management and Organizational Development - 4 Credits (Book ID: B1229) Assignment Set- 2 (60 Marks)
Q2. What are the major types of changes in an organization? Answer: Types of Change Types of organization changes vary from planned versus unplanned to organization-wide versus change primarily to one part of the organization to incremental versus transformational, etc. Knowing which types of change you are doing helps all participants to retain scope and perspective during the many complexities and frequent frustrations during change. The major types of changes in an organization are listed below: I) Organization-wide Versus Subsystem Change Organization-wide change includes major restructuring, collaboration or rightsizing. When organization need to evolve to a different level in their life cycle, for example, going from a highly reactive, entrepreneurial organization to one that has a more stable and planned development, then is the time when they should switch to organization-wide changes. Experts assert that successful organizational change requires a change in culture - cultural change is another example of organization-wide change. Addition or removal of a product or service, reorganization of a certain department, or implementation of a new process to deliver products or services is examples of these kinds of changes. II) Transformational Versus Incremental Change Changing an Organizations structure and culture from the traditional top-down, hierarchical structure to a large amount of self-directing teams are examples that form transformational changes. Examples of incremental change might include continuous improvement as a quality management process or implementation of new computer system to increase efficiencies. Many times, organizations experience incremental change and its leaders do not recognize the change as such. III) Unplanned Versus Planned Change A sudden, major surprise to the organization, which causes its members to respond in a highly reactive and disorganized fashion usually, causes an unplanned change. As the name suggests, in an unplanned change nothing happens in a planned way or in order. Examples of such change are when the Chief Executive Officer suddenly leaves the organization, significant public relations problems occur, poor product performance quickly results in loss of customers, or other disruptive situations arise. Planned change occurs when leaders in the organization recognize the need for a major change and proactively organize a plan to accomplish the change. Planned change occurs with successful implementation of a Strategic Plan, plan for reorganization, or other implementation of a change of this magnitude. Note that planned change, even though based on a proactive and well-done plan, often does not occur in a highly organized fashion. Instead, planned change tends to occur in more of a chaotic and disruptive fashion than expected by participants.

IV) Remedial Versus Developmental Change Remedial changes are changes that can bring remedy to current organizational situations. Improving the poor performance of a product or the entire organization, reduce burnout in the workplace, help the organization to become much more proactive and less reactive, or address large budget deficits. So these form examples of remedial changes. More focus of these projects is to solve a problem on an urgent basis because they are addressing a current, major problem. Change can also be developmental - to make a successful situation even more successful, for example, expand the amount of customers served, or duplicate successful products or services. Developmental projects can seem more general and vague than remedial, depending on how specific goals are and how important it is for members of the organization to achieve those goals. Some people might have different perceptions of what is a remedial change versus a developmental change. They might see that if developmental changes are not made soon, there will be need for remedial changes. Q4. Explain the life cycle of resistance to organizational change in detail. Answer: Adopting new innovations or new ideas and techniques involves altering human behavior, and the Resistance to Change acceptance of change. There is a natural resistance to change for several reasons. The reasons are as follows: People Resist change: When the change threatens to modify established patterns of working relationships between people. When communication about the change-timetables, personnel, monies, etc. - has not been sufficient. When the benefits and rewards for making the change are not seen as adequate for the trouble involved. When the change threatens jobs, power or status in an organization. When the reason for the change is unclear. When there is ambiguity, whether it is about costs, equipment, jobs, it can trigger negative reactions among users. When the proposed users have not been consulted about the change, and it is offered to them as an accomplished fact. People like to know whats going on, especially if their jobs may be affected. Informed workers tend to have higher levels of job satisfaction than uninformed workers. On the other hand, if the innovation is introduced gradually so that people can adjust to the resulting then decision makers are more responsive to changes: If the innovation requires marginal rather than major changes in their views or lives. If they have a demonstrated need for the innovation. If the information presented coincides with their current values, beliefs, and attitudes If they perceive that the change will benefit them more than it will cost them. 1. Factors in Resistance to Change People tend to evaluate the effect of change individually but they express it through group in collective form. Therefore, the reasons underlying resistance to change may be identified at these two levels:

Individual Resistance There are many factors operating at the individual level which are responsible for resistance. Degree of force in resistance depends on how people feel about change. These feeling may be based either on reality or there may be emotional feeling towards the change. These feelings, either real or emotional, may be seen in the context of three types of factors: economic, psychological and social. Economic Factors People feel attached to the organization for satisfying their needs and economic needs physiological, job security etc. precede over other needs. People may perceive that they will be adversely affected by the change in terms of their needs satisfaction in the following ways: 1. Skill Obsolescence: A change is generally meant for better methods of working which may involve new techniques, technology, etc., whenever people sense that new machinery (change) poses a threat of replacing or degrading them, they simply resist such a change. When computer was introduced in the business sector in India, it attracted a lot of resistance because of this reason. 2. Fear of Economic Loss: A change may create fear of economic loss in the sense that it may affect economic compensation adversely, reduce job options, and turn into technological unemployment. This feeling is created because people feel that those who can match the new requirements will be better off than those who cannot match. 3. Reduced Opportunities for Incentives: Employees are generally offered incentives linked to their output in the form of incentive schemes, bonus, etc. All these are wellestablished in the old system. Whenever there is change, people may feel that in the new system, they will have lower opportunity to earn incentives and bonus as the new system requires additional skills. Psychological Factors Psychological factors are based on peoples emotions, sentiments and attitudes towards change. These are qualitative and, therefore, may be logical from peoples point of view but may be illogical from the change agents point of view. Major psychological factors responsible for resistance are: ego defensiveness, status quo, lack of trust in change agent, low tolerance for change, and fear of unknown. Ego Defensiveness: A change may affect the ego of the people affected by the change and in order to defend their ego, people resist change. A change in itself suggests that everything is not right at a particular level. Thus, the change may be perceived as an instrument for exposing the weakness of the people. Status Quo: People want status quo i.e. they do not want any disturbance in their existing equilibrium of life and work pattern. The change initiated by the organization disturbs such equilibrium and people have to obtain another equilibrium which is a painful exercise. Therefore, everyone tries to avoid it. Low Tolerance for Change: In the context of maintaining status quo, people may differ. Some people have very low level of tolerance for change and ambiguity as compared to others. Therefore, these people resist any new idea. Lack of Trust in Change Agent: The effect of change is perceived in the context of change agent, that is, the person who initiates change. If people have low degree of confidence in the change agent, they show resistance to change efforts. This is the reason why labor union resists changes initiated by management because of the feeling that labor and management are two different interest groups in the organization.

Fear of Unknown: A change may be perceived as entering into unchartered area which is unknown. The change will bring results in future, which is always uncertain. This lack of certainty creates anxiety and stress in the minds of people and they want to avoid it. The lack of adequate information about the likely impact of change further complicates the problems. Social Factors People derive need satisfaction, particularly social needs, through their mutual compatible interactions. They form their own social groups at the work place for the satisfaction of their social needs. To the extent the satisfaction of these needs is affected by a change, people resist it. The major factors causing resistance to change are: desire to retain existing social interaction and feeling of outside interference. Desire to Maintain Existing Social Interaction: People desire to maintain existing social interaction since it is a satisfying one. When there is any change, their existing social interactions are likely to be changed, which people do not want. Therefore, they resist change. Feeling of Outside Interference: A change brought about by the change agent is considered to be interference in the working of people. This phenomenon is heightened if the change agent belongs to another social class, e.g., change initiated by managers affecting workers. The latter my feel that managers try to make workers an instrument for higher productivity but the outcome of this productivity will be retained by them. 2. Organizational Resistance to Change Not only individuals and groups within an organization resist change, even the organization itself resists many changes because of certain reasons. Many organizations are designed to be innovation-resisting. Many powerful organizations of the past have failed to change and they have developed into routines This statement suggests that organizations tend to stabilize at a particular level and if the change efforts are not brought, these organizations start falling. The major reasons for organizational failure to change are: counting past successes, stability of systems, resource limitations, sunk cost, and inter-organizational agreement. Some of these reasons are basic while others are by-products of those. For example, first two reasons are basic and others are by-products of the first two. Counting Past Successes: A major problem before the organizations which have past success stories is how to face challenges of the changing environment. Since these organizations have achieved success by following a particular set of management practices, they become too rigid to change and they hide their failure to change in the guise of past successes. This is the reason why many old industrial houses are languishing far behind and their places are being taken away by newer organizations. Stability of Systems: The organization may design a system through which it may derive many benefits. The system is stabilized and any change may be perceived as a threat by the organization itself. For example, a bureaucratic organization has certain fixed rules, prescribes rigid authority relationships, and institutes reward and punishment system.

these work in some circumstances. It a change is required in these aspects, the organization may not bring it easily because it is accustomed to a particular system. Resource Limitations: No doubt, an organization has to adapt to its environment but the adaptation has its own cost. If the organization is not fully equipped for meeting such demands, it may not be possible for the organization to bring necessary change. For example, if new technology is adopted, it will require resources to procure machine, building and training for its personnel, and commensurate expenses on other items also. Sunk Cost: Most of the organizations have sunk cost involved in various assets. Once the assets are acquired, these can be used for specific period. Now, if the change is required, what will happen to these assets? Naturally, the organization will like to make a comparison between the outcomes of changed program and continuing with old program in the light of this sunk cost. Sunk cost cannot be only in terms of various physical things. This can be in the form of people also. It an individual is not making commensurate contribution, it is not necessary that his services are done away with. In such a case, organization has to pay for his services though these may not be as useful. 3. Causes for Resistance to Change Resistance to change doesnt necessarily surface in standardized ways. Resistance can be overt, implicit, immediate, or deferred. It is easiest for management to deal with resistance when it is overt and immediate. For instance, a change is proposed and employees quickly respond by voicing complaints, engaging in a work showdown, threatening to go on strike, or the like. Lets look at the sources of resistance. For analytical purpose, weve categorized them by individual and organizational sources. Habit: As human beings, were creatures of habit. Life is complex enough; we dont need to consider the full range of options for the hundreds of decisions we have to make every day. To cope with this complexity, we all rely on habits, or programmed responses. When we are confronted with change, this tendency to respond in our accustomed ways becomes a source of resistance. So when your department is moved to a new office building across town, it means youre likely to have to change many habits: waking up 10 minutes earlier, taking a new set of streets to work, finding a new parking place, adjusting to the new office layout, developing a new lunchtime routine, and so on. Security: People who have a high need for security are likely to resist change because it threatens their feeling of safety. When Boeing announces its laying off 10,000 people or Ford introduces new robotic equipment, many employees at these firms may fear that their jobs are in jeopardy. Economic Factors: Another source of individual resistance is concern that changes will lower ones income. Changes in job tasks or established work routines also can arouse economic fear if people are concerned they wont be able to perform the new tasks or routines to their previous standards, especially when pay is closely tied to productivity. Fear of the Unknown: Change substitute ambiguity and uncertainty for the known. And people in general dont like the unknown. The same applies to employee. If for example, the introduction of a quality management program requires that production workers learn statistical process control techniques, some may fear theyll be unable to do so. They may, therefore, develop a negative attitude towards quality management or behave dysfunctional if required to use statistical techniques.

Q6. Suppose a cement industry wants to form a Quality Circle. What would be the criteria that you would set to form it? What are the benefits that you see in forming a quality circle? Answer: Quality Circles Quality Circle is a small volunteer group of six to twelve employees doing similar kind of work. They voluntarily meet together on a regular basis to carry out frequent checks in their respective work areas for improvements. They use certain proven techniques for analyzing and solving work related problems coming in the way of achieving and sustaining excellence so that they can bring about a mutual up liftment of employees as well as the organization. So basically a volunteer group is composed of workers, under the leadership of their supervisor who are trained to identify, analyze and solve work-related problems are collectively called Quality circle. They present their solutions to management for the improvement of organizational performance. Tue quality circles become self-managing after gaining management confidence. If anything could battle the dehumanizing concept of division of labor, it is Quality circle. It has brought back the concept of craftsmanship, which doesnt work well on an individual basis because it is uneconomic, but it proves a boon when used in group form. The prime motto of QC is improving occupational safety and health, improving product design, and improvement in the workplace and manufacturing processes. 1. Key Features of Quality Circle: They are formal groups. They hold meetings at least once a week on company time and are trained by competent persons who may be personnel and industrial relations specialists. Quality circles are generally free to select any topic they wish, but they cannot select salary related topics or other topics related to terms and conditions of work, because these issues are dealt with via other channels. 2. The Concept The concept of Quality Circle primarily focuses on a workers value recognition as a human being, as someone who willingly takes on his job, his wisdom, intelligence, experience, attitude and feelings. It is just another part of human resource management considered as one of the key factors in the improvement of product quality & productivity. Quality Circle concept has three major attributes: Quality Circle is a human resource development technique. Quality Circle is a problem solving technique. Quality Circle is a form of participation management. 3. Objective of QC There multi-faced objectives of Quality Circles: Change in Attitude. Self Development Development of Team Spirit Improved Organizational Culture Benefits of Quality Circles The quality control concept did not get an easy acceptance in India. It took two decades to get acceptance in India, after its introduction in Japan. The reason might be differences in the industrial context in the two countries. Japan needed it for its survival in a competitive market. India had a reasonably protected, sellers market, with consequent lethargy towards efforts to

improve quality and productivity. However, with the policy of liberalization of economy and privatization of infrastructure development, contexts changed. The concept now needs to be looked upon as a necessity because it benefits in the following ways: Team Work: It helps to eradicate inter-team conflicts and clashes and enhance the concept of team spirit. Positive Attitude: Employees start working with a positive attitude towards work, assuming it as their own work. They develop a Can Do and I care attitude. Personality advancement: Quality circle practice helps to learn new skills and also brings out the hidden potential of employees. Positive working environment: It improves the orga nizational working environment and involves employees in every process, right from a small decision to a big deal. Increased productivity: It helps in increasing overall productivity of organization by improvement of work processes and reduction of excessive costs. They increase operational efficiency, improve quality, and promote innovation.

Master of Business Administration- MBA Semester 3 MU0013 HR Audit- 4 Credits (Book ID: B1231) Assignment Set- 1 (60 Marks)
Q4. What are the trends in HR audit seen in Indian scenario? Answer An HR audit is like an annual health check. It plays a vital role in instilling a sense of confidence in the management and the HR functions of an organisation. - E J Sarma The same way as a doctor would first diagnose the ailment and then suggest an appropriate customised medication for all his patients, an HRD auditor should first diagnose the opportunities and problems, identify deficiencies in the strategy, structure, staff and systems of the HRD process in an organisation and then recommend steps for improvement. He should base his recommendations on the future responsibilities of the HRD department as derived from the business plans of the company he is working for. In India, the prevalence of HR Audit has been quite popular since 1970s. It first promulgated by BHEL (Bharat Heavy Electrical Ltd), a leading public enterprise, during the financial year 1972-73. Later it was also adopted by other leading public and private sector organisations in the subsequent years. Some of them are Hindustan Machine Tools Ltd. (HMTL). Oil and Natural Gas Corporation Ltd.(ONGC), NTPC, Cochin Refineries Ltd. (CRL), Madras Refineries Ltd.,(MRL), Associated Cement Company Ltd.(ACC) and Infosys Technologies Ltd.(ITL). Adaptability of various models, especially Lev and Schwartz model and Flamholtz model and discount rate fixation and disclosure pattern i.e. either age wise, skill wise etc., in BHEL,

SAIL, MMTC (Minerals & Metals Trading Corporation Of India Ltd.) HMTL, NTP, etc., made HR auditing even more popular in the country. All said and done though, let us mark the fact here despite this all, there has been no uniformity among Indian enterprises regarding HRA disclosure. HRD audits of different organisations have revealed different things. Let is make it clear at this point only that the names of the organisations have been changed because the audit process reveals the strengths and weaknesses of the organisation are brought to the fore and the organisations may not like it to get their weaknesses published. It is a point to mark that, in most of the organisations, great support was given to all HRD activities by the top management of the organisations. Thus we can for sure make out the success of an HRD intervention. It may be concluded that human resource auditing clearly encompasses such elements as the: Composition of employees grades; Productivity of human resources; Programmes for employee development; Personnel payments to the employees and expenses on social welfare per employee; Human asset valuation; Human assets vis-a-vis total assets; Value of human assets in an organization. Q6. Elaborate on the need for Human Resource Audit. Answer: Human Resource Audit is a systematic assessment of the strengths, limitations, and developmental needs of its existing human resources in the context of organizational performance. (Flamholtz, 1987). Human Resource Audits give an account of the skills, abilities and limitation of its employees. The audit of non-managers are called skills inventory while the audit of managers are called management inventories. Basically, the audit is an inventory that catalogues each employees skills and abilities which enables the planners to have an understanding of the organisations work force. (William B. Werther, Jr. and Keith Davies). o To make the HR function business-driven. o Change of leadership. o To take stock of things & to improve HRD for expanding, diversifying, & entering into a fast growth phase. o For growth & diversification. o For promoting professionalism among employees & to switch over to professional Management. o To find out the reasons for low productivity & improve HRD strategies. o Dissatisfaction with a particular component. o To become employer of choice. o To ensure effective utilization of human resources. o To review compliance with tons of laws and regulations. o To instill a sense of confidence in the human resource department that it is wellmanaged and prepared to meet potential challenges and opportunities.

o To maintain or enhance the organizations reputation in a community. For example, while many other PSUs stood losing on the profitability grounds, HR auditing at Bharat Heavy Electricals Limited (BHEL) ensured that the company remained a profit making heavy engineering public sector company, and thus maintained its reliability among the stakeholders.

Master of Business Administration- MBA Semester 3 MU0013 HR Audit- 4 Credits (Book ID: B1231) Assignment Set- 2 (60 Marks)
Q1. Explain the linkages between HR Audit and business functions. Answer: Human Resource Audit and Business Linkages The HRD audit also examines the linkages between HRD and other systems like total quality management, personnel policies, strategic planning etc. Suggestions are made on the basis of evaluation on the future HRD strategies required by the company, the structure the company needs to have for developing new competencies and the systems that need to be strengthened, the styles and culture that has compatibility with HRD processes in the company particularly the styles of the top management, etc. Business linkages of Human Resource Development It indicates the extent to which HRD efforts (tools, processes, culture etc.) are driven to achieve business goals. The business goals include: Business excellence including profitability and other outcomes the organization is expected to achieve; Internal operational efficiencies; Internal customer satisfaction; External customer satisfaction; Employee motivation and commitment; Cost effectiveness and cost consciousness among employees; Quality orientation. Role of HRD Audit in Business Improvements HRD audit is cost effective It can give many insights into a companys affairs. It could get the top management to think in terms of strategic and long term business plans. Changes in the styles of top management Role clarity of HRD Department and the role of line managers in HRD Improvements in HRD systems Increased focus on human resources and human competencies Better recruitment policies and more professional staff More planning and more cost effective training Strengthening accountabilities through appraisal systems and other mechanisms Streamlining of other management practices

Q4. What are the components of human resource development audit? Answer: Components of Human Resource Development Audit The HRD audit is divided into three components: Organisation and Administration of Human Resource Information Management through Documentation Computerized HRIS 1. Organisation and administration of human resource In this you should consider following points: The way in which the organizations HR office is organized The operating standards and internal controls followed in the business unit. The ways of administrating retention rights, including notices, matrix, use of separation incentives, and outplacement practices. The procedure of making HR staff up to date with the HR field. The techniques used for communicating with employees and appointing authorities in department. 2. Information management through documentation You must be aware that information is managed in the business unit through documentation of various records of the employees and factors concerned to them. So following are some important considerations in this: The person with whom the personnel files currently held. The documents are held in personnel files. The ways to document following in your organization : -Hiring: Application, interviewing, and reference checks -Compensation and benefits -Leave and overtime information -Transitions -Training -Discipline -Work history -Work Assignments -Significant accomplishments -Emergency contact information -Performance evaluation and performance management Termination The duration of holding the files. The place at which they are stored after employees leave. It should be seen that whether there is training of managers and employees about personnel files.

Q6. Elaborate on the different aspects work place policies and practices to be considered by the employers. Answer: Workplace Policies and Practices Many smaller companies do not like writing certain aspects of ways of conducting business. For such companies, it is mere formality and they do not appreciate people -oriented culture. Though it should be avoided because it is patently illegal because laws require that companies should mention very clearly the policies about guaranteeing specific protections to employees 1. Safeguarding employee information Employees personal information should be safeguarded. Separate files should be maintained for personal information as contrasted with employment related information. Main objective behind it to ensure that while deciding the employees career with the company his personal information should not be considered. For example while deciding whether to promote employee or not, instead of his personal information like his religion, his work experience and capabilities should be considered. The employment decision needs to be made on work/performance-related information, not the personal information. Relevant materials in the work file include information on the employees education, related work experience, and performance evaluations in other positions within the company. An audit can clarify what information must be segregated and the laws that govern empl oyees access to and copying of their files. Other employee information that must be safeguarded includes any materials that contain medical information. 2. Employee performance management An audit can review companys job descriptions for compliance (i.e., to determine whether the descriptions list the essential functions of the job). Various legal issues can arise due to performance related problems of employees. Audit will help in following improvements and reviews: A 90-day written standard performance evaluation form, An annual written standard performance evaluation form, A performance management/performance improvement plan, A description of the companys policy for both voluntary resignation and company-initiated termination, Wage and salary administration program, Bonus/stock option criteria. 3. Safe work environment Audit practices may also help the companies to know about factors that contribute to a safe work environment. A company may choose to develop an audit sheet tailored to a particular issue, such as the companys zero-tolerance policy for harassment. For example, a company may wish to review and evaluate its practices of dealing with inappropriate harassing behaviour in its workplace. 4 Auditing workplace behaviors that support legal compliance A safe, dignified, and respectful work environment is not only mandated by the law, but also increases motivation and productivity of the employees. An example of review of business practices used to deal with allegations of harassment safe

working environments should be considered especially for the females in the offices so as to make them feel confident and concentrate on work is shown as under:

Tailored Reviews can be added to the General Audit Review of Business Practices used to deal with Allegations of Harassment Method of Review Area of Review Walk-through referring to the HR audit report: Are there posters visible throughout the company specifically prohibiting such behaviors? Review of new employee: Does each employee receive a copy of the policy upon package hire? Review of HR files Does the company redistribute a copy of the policy with a cover memo from a senior manager clearly stating the companys expectation of appropriate and respectful behaviors? Does the memo contain information regarding to whom/where to report violations of the policy? Review of policy manual: Does the company have a clearly published and posted employee handbook (both) non-retaliation policy? Review of HR files: Are reports of harassment or other inappropriate interviews behaviors investigated promptly by HR and handled discreetly? Review of HR files: Is there documentation representing such investigations with the results? Review of HR files: Is there documentation indicating various forms of sanction up to and including termination if an investigation indicates that inappropriate behaviors occurred? Review of files/interviews: Are managers trained on how to handle reports of harassment? Review of files/interviews: Are employees advised of their rights and informed on how and where to make a report of inappropriate behaviors? Review of files/interviews: Do employees indicate a thorough understanding of the companys beliefs regarding safe and respectful workplace behaviors?