Note: 1) All questions in Section I are compulsory

2) Attempt any three questions from Section II.

3) Figures to right indicate marks allocated to that question

Section I

Q1.Explain the concepts (3 marks each) (15)

(a) Delphi Technique
(b) Investiture and Divestiture
(c) Assessment Centers
(d) Vestibule Training
(e) Pluralistic Approach

Q2.Case Study on Training



Section II

Q3 .Define Human Resource Management. Discuss the improvements of HRM over Personnel
Management.

Q4.You are the HR manager of KITS Airways. Design a training programme for ground staff. Discuss the
job training methods used to conduct the programme.

Q5.Career Planning and development is a motivation tool for employees. Elaborate with suitable
examples.

Q6.Write short notes on (any 2):

A) Training V/S Management Development
B) Trade Unions
C) Collective Bargaining
Tilak Education Societys
S.K College of Science and Commerce, Nerul
Prelims Examination Sept - 2012

Class: TYBMS Subject: HRM Duration: 2hrs
Date: 29/09/12 Marks: 60
Tilak Education Societys
S.K College of Science & Commerce
Seawoods, Navi Mumbai. Phone 27711481/27710033
Model Solution

Q1a

Delphi Technique


Delphi forecasting is a non-quantitative technique for demand forecasting.
It draws its name from the Oracles of Delphi, which in Greek mythology advised people based
on intuition and common sense.
It solicits estimates of personnel needs from a group of experts, usually managers
The HRP experts act as intermediaries, summarize various responses and report the findings back
to the experts. Summaries and surveys are repeated till the experts agree.
The agreement reached is the forecast of the personnel needs.
The key feature of Delphi technique is the absence of interaction among the experts


Q1b

Investiture and Divestiture


Investiture orientation seeks to validate the usefulness of the characteristics that the person
brings to the new job.
Most high-level appointments like CEO follow this approach, because a person is appointed as an
executive on the basis of what he or she can bring to the organization.

Divestiture orientation seeks to make minor modifications in the characteristics of the new hire,
albeit, he or she was selected based on his or her potential for performance. This is done to seek a
better fit between a new member and organization.
The logic behind divestiture strategies is to dismantle the old mindset of the new member so
that instilling a new set of values or norms become easy
The new hire may even be made to undergo harassment at the hands of a senior staff to verify if he
/she can be molded to the requirements of the organization.
Divestiture strategies are followed for inducting new hires into military, professional football,
police academies etc.



Q1c

Assessment Centers


An assessment centre is a central location where managers may come together to have their
participation in job related exercises evaluated by trained observers. It was earlier, mainly used for
senior executives hiring, but now assessment centers are now being used for evaluating
executive or supervisory potential
The basic idea is to evaluate managers over a period of time, say one to three days, by observing
and evaluating their behavior across a series of selected exercises or work samples.
Assesses are requested to participate in-basket exercises, work groups (without leaders), computer
simulations, role playing, and other similar activities which require the same attributes for
successful performance, as in the actual job.
There are various parameters to measure, hence there would be a sizeable number of trained
observers and psychologists
The advantages are that a well conducted assessment centre can achieve better forecasts of
future performance than other methods. Also reliability, content validity and predictive validity
are said to be high in assessment centers.
The problem with assessment centre is the huge cost involved and strong and unhealthy sense of
competition between assesses, difficult in conducting the test frequently and possibility of
overemphasizing the test performance.

Q1 d

Vestibule Training

This method utilizes equipment which closely resembles the actual ones used in the job.
It is performed in a special area set aside for the purpose and not at the workplace.
The emphasis is placed on learning skills than on production.
It is however difficult to duplicate pressures and realities of actual situations. Even though the
kind of tension or pressure may be the same but the employee knows it is just a technique and not
a real situation.
Also the employees behave differently in real situations than in simulations. Also additional
investment is required for the equipment
Tilak Education Societys
S.K College of Science & Commerce
Seawoods, Navi Mumbai. Phone 27711481/27710033
This method is used in training airline pilots or in military combat training.

Q1 E

Pluralistic Approach


Pluralism is belief in the existence of more than one ruling principle, giving rise to a conflict of
interests. The pluralist approach to IR accepts conflict between management and workers as
inevitable but containable through various institutional arrangements ( like collective bargaining,
conciliation and arbitration etc) and is in fact considered essential for innovation and growth.
The pluralists see the employment relationship as a mixture of shared interests and conflicting
interests that are largely limited to the employment relationship.
It also perceives stability in IR as the product of concessions and compromises between
management and unions.
It perceives trade unions as legitimate representative of employee interests. Employees join
unions to protect their interests and influence decision making by the management. Unions thus
balance the power between management and employees. In pluralistic approach a strong unions is
not only desirable but necessary
In the workplace, pluralists therefore champion grievance procedures, employee voice
mechanisms such as works councils and labour unions, collective bargaining, and labour-
management partnerships.
In the policy arena, pluralists advocate for minimum wage laws, occupational health and safety
standards, international labour standards, and other employment and labour laws and
public policies. These institutional interventions are all seen as methods for balancing the
employment relationship to generate not only economic efficiency, but also employee equity and
voice.


Tilak Education Societys
S.K College of Science & Commerce
Seawoods, Navi Mumbai. Phone 27711481/27710033
Q2.Case Study on Training

1) Summary of the case
Harish Mehta has been employed in Accounts Department in an automobile company for last 4
years. He along with 21 other employees in his department had to undergo training due to
computerization in his company
On the basis of a random survey, it was found that Harish performance even after training was
poor and it was 20% less than others in his department.
2) Problem /I ssues in case/Cause and effect
The cause of this problem could be:
1. Harish Mehta is not happy with the process of computerization and lacked interest in training
2. Harish Mehta lacks confidence because he does not even have basic knowledge of computers
3) Solution to the problem
There is a need for HR to speak to Mr Harish and understand the root cause of the problem. This discussion
could be conducted after a job analysis session If he is not happy with the process of computerization and
he has an apprehension that he would lose his job. He needs to be explained the reasons for
computerization and he needs to be motivated. A proper counseling session is desirable.

In the Second case, an introductory course needs to be conducted for people like Harish Mehta so that they
can gain confidence before the actual training of computerization of accounts department can be
introduced.

Questions

a)

As Harish Supervisors, I would first do a complete job analysis of the Accounts department after the
process of computerization. Information regarding job description and job specification would be updated
through various data collection methods like observation method.

Then, I would compare Harish Mehtas skill sets and performance with the requirements of the job. Based
on my findings, I would have a one-one discussion with Harish Mehta to understand his problems and
conduct a detailed performance appraisal

Through a systemic study and discussions I would be able to understand the reasons for Harish Mehtas
poor performance.


B)

If Training has been conducted in a hurried manner, only Harish Mehtas performance would not be poor.
However it is possible that it was too early for Harish Mehta to undergo the training on computerization
without having any basic knowledge of computer. If this were the case, I would first conduct an
introductory course in computers for employees like Harish Mehta

C)

Yes I would monitor his work closely during the data collection process, to see the cause of the problem. I
would need to this without him or others being aware so that there is no change in their natural behavior or
performance. Based on the actual findings I could discuss the same with Harish and others if required.

D)


Yes, there is a strong need to discuss with Harish about his performance based on the findings. He needs to
be explained the parameters for the performance appraisal and expected level of performance. If it is found
that his performance has not improved even after corrective steps were taken from the companies side and
sufficient time was given to improve; he needs to be given the pink slip after the next performance
appraisal.
Tilak Education Societys
S.K College of Science & Commerce
Seawoods, Navi Mumbai. Phone 27711481/27710033
Q3 .

Michael Armstrong has defined HRM as

A strategic approach to the acquisition, motivation, development and management of the organizations
human resource. It is developed to shaping an appropriate corporate culture and introducing programs
which reflect and support the core values of the enterprise and ensure its success.

Organizations are not mere bricks, mortar, machineries or inventories. It is the people who staff & manage
organization .Employees have the capacity to feel, think & even to react. Management has to deal with the
employees in a careful & tactful manner. Peter Drucker, The prosperity of any business depends upon the
performance of its managers of tomorrow. Employees must be nurtured and decisions must be integrated
keeping in mind the organizations effectiveness and the peoples dimension.

HRM can be considered as an improvement over Personnel management as it has wider scope and takes the
human angle into consideration while handling employees. Some of the reasons are stated below:

Sr.No Dimension Personnel Management Human Resource Management
1 Employment contract Careful delineation of written
contracts
Aim to go beyond contract
2 Rules Importance of devising clear rules Can do outlook impatience with
rule
3 Guide to management action Procedures Business needs
4 Behaviour referent Norms/customs & practices Values/missions
5 Managerial task Monitoring Nurturing
6 Key relations Labour management Customer
7 Initiatives Piecemeal Integrated
8 Speed of decisions Slow Fast
9 Management role Transactional Transformational leadership
10 Communication Indirect Direct
11 Prized management skills Negotiation Facilitation
12 Selection Separate, marginal task Integrated, key task
13 Pay Job evaluation Performance related
14 Conditions Separately negotiated Harmonization
15 Labour management Collective bargaining contracts Individual contracts
16 Job categories & grades Many Few
17 Job design Division of labour Team work
18 Conflict handling Reach temporary truce Manage climate & culture
19 Training & development Controlled access to courses Learning companies
20 Focus of attention for
interventions
Personnel procedures Wide ranging cultural, structural
& personnel strategies
21 Respect for employees Labour is treated as a tool which is
expendable & replaceable
People are treated as assets to be
used for the benefit of an
organization, its employees & the
society as a whole
22 Shared interests Interests of organizational are
uppermost
Mutuality of interests
23 Evolution Precedes HRM Latest in the evolution of the
subject








Tilak Education Societys
S.K College of Science & Commerce
Seawoods, Navi Mumbai. Phone 27711481/27710033


Q4.

You are the HR manager of KITS Airways. Design a training programme for ground staff. Discuss the job
training methods used to conduct the programme.


As the HR manager of KITS Airways,I need to plan out a training programme for the ground staff. In case
the training is to be given to fresh recruits.The steps can be shown as follows:




Step 1: Objectives and Strategies

Firstly I need to be clear on the objectives of the training programme and its benefits to the organization. In
this case the objective of the training is to brief the trainees about the security aspects to be followed at the
airport and various tasks handled by the ground staff. Based on the performance of training, the trainees
should be assigned to various ground staff departments like ticketing, baggage counter etc. At the end of
the training, the trainees should be in a position to be able to assist senior ground staff at the airport in
various departments.

Step 2 & Step 3: Needs Assessment & Goal Setting

Based on the kind of tasks performed by different ground staff personnel, training needs are assessed and
the goals of the training programme are determined for different departments.


Step 4.Devising training programme

The next important step is designing the training programmed which would involve the following steps:




In this case the trainees are fresh recruits to KITS Airways,the trainers are senior ground staff personnel
from various departments under whom the trainees would be working

The training in case would start with Off Job training through lectures and audiovisuals.This would be
followed by On Job training at the site where the recruits would assist the senior ground staff personnel.
Tilak Education Societys
S.K College of Science & Commerce
Seawoods, Navi Mumbai. Phone 27711481/27710033

The training would be basic in nature like Level I where the recruits would be given preliminary knowledge
about the various ground staff activities.

The principles of learning in this case would be through demonstration and regular reinforcement and
guidance.

The entire training need to be conducted in and around the airport for the trainees to get a feel of the actual
environment

STEP 5.IMPLEMENTATION OF THE PROGRAMME:

Once the training programme has been designed, it needs to be implemented. Implementation is beset with
certain problems:
a) Most ground staff are action oriented and frequently say they are too busy to engage in training
efforts.
b) Availability of senior staff is a problem. In addition to possessing communication skills, the trainers
must know the companys philosophy, its objectives, its formal and informal organizations, and the goals
of the training programme. Training requires a higher degree of creativity than, perhaps, any other
personnel specialty.
c) Scheduling training around the present work is another problem.

Programme implementation involves action on the following lines:
a) Deciding the location and organizing training and other facilities
b) Scheduling the training programme
c) Conducting the programme
d) Monitoring the progress of trainees


STEP 6. EVALUATION OF THE PROGRAMME:

Once the entire training has been conducted,the senior ground staff need to regularly assess the
performance of the new recruits and they need to be put into situations where there are capable of handling
various tasks on their own.


Tilak Education Societys
S.K College of Science & Commerce
Seawoods, Navi Mumbai. Phone 27711481/27710033
Q5.

Career Planning and Development :

Career planning refers to the formal programmes that organizations implement to increase the
effectiveness and efficiency of the human resources available.

Every individual who joins the organization desires to have a bright career in terms of status, compensation
payment and future promotions. From the point of view of an organization, career planning and
development have become crucial in management process

PURPOSE OF CAREER PLANNING

To map out careers of employees as per their ability and willingness and to train and develop them
for higher positions.
To attract and retain the right type of persons in the organization.
To utilize available managerial talent within the organization fully.
To achieve higher productivity and organizational development.
To provide guidance and assistance to employees to develop their potentials to the highest level.
To improve employee morale and motivation by providing training and opportunities for
promotion.


Career Planning& Development in organizations also serve as a motivational tool in the following ways.

1.An employee is aware and informed of the various future posts and positions available in the
organization and the requirements to get there. He knows that if he performs well in his current
position he has a good opportunity of reaching the desired position. Thus he is motivated to work
hard and give good results.

2. Through various career counseling seminars and sessions,he gets the necessary guidance to
reach the position of his choice.

3. Career planning also serves as a retention tool as an employee is aware of the opportunities he
has in the present company and would not leave the company.

4. Through a clearly drawn career path, he can plan out his future and would be motivated to
perform better.

5.Career Planning and development programmes in companies also include various management
training programmes which keep the employees motivated

6.Career planning and development programmes would also include Job enrichment,job
enlargement,job rotation which prevents boredom for the employees.

7.Career Planning and developments provides an opportunity for individuals to learn new
technologies through training programmes conducted every year.


Thus we see that through career planning and development programmes ,employees would
continue in the organization and would be motivated to perform better.
Tilak Education Societys
S.K College of Science & Commerce
Seawoods, Navi Mumbai. Phone 27711481/27710033
Q6.

A) Training V/S Management Development

Training Management Development
Training generally refers to teaching of new skill in
professional field of the employee

Development refers to enhancement of personal
managerial qualities of the employee which do not have
a one to one relationship with his current job but would
help him become a better manager in future

The focus is short term The focus is long term
Training is expected to reward the company
immediately in terms of better productivity of employee

Managerial Development does not lead to any
immediate and tangible benefits to the company but
provides the companies with a set of future managers.

Training Focuses on technical, mechanical oriented
operations

Managerial Development Focuses on theoretical skills
& conceptual ideas

Training is Mostly for non-managers Managerial development is for Managers & Executives

Training is a single step fast process Development is a gradual multi step process
Information about a new technology, new product etc
can be given by training
Managerial development would involves sessions on
team building, leadership ,stress management etc.


Q6.B

Trade Unions

The Trade Unions Act, 1926 defines a Trade union as
A combination, whether temporary and permanent, formed primarily for the purpose of regulating the
relation between
Workmen and workmen,
Workmen and employers, and
Employers and employers.

Or, for imposing restrictive conditions on the conduct of any trade or business and includes any federation
of two or more trade unions

Features of trade unions:

1. It is an association either of employers or employees or of independent workers. They may consist
of :-
Employers association (eg., Employers Federation of India, Indian paper mill association,
etc.)
General labor unions
Friendly societies
Unions of intellectual labor (eg, All India Teachers Association)

2. The trade union is an organized expression of the needs, aspirations and attitudes of the employees
of the organization.

3. It is formed on a continuous basis. It is a permanent body and not a casual or temporary one. They
persist throughout the year.

4. It is formed to protect and promote all kinds of interests economic, political and social-of its
members. The dominant interest with which a union is concerned is, however, economic.

5. It achieves its objectives through collective action and group effort. Negotiations and collective
bargaining are the tools for accomplishing objectives.

6. Trade Unions function on democratic principles. Office bearers are elected by members and major
decisions are taken in union meetings after discussion and voting.

7. Trade Unions have legal recognition. Unions can be registered under Indian Trade Unions Act,
1926.Workers are given right to form unions for their protection and self help.

8. Trade unions have shown remarkable progress since their inception; moreover, the character of
trade unions has also been changing. In spite of only focusing on the economic benefits of
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S.K College of Science & Commerce
Seawoods, Navi Mumbai. Phone 27711481/27710033
workers, the trade unions are also working towards raising the status of labors as a part of
industry.

Trade unions perform a number of functions in order to achieve the objectives. These functions can be
broadly classified into three categories:

(i) Militant functions,
(ii) Fraternal functions


Q6.C

Collective Bargaining

The phrase Collective bargaining is coined by Sydney & Beatrice Webb. According to
them collective bargaining is a method by which trade unions protect & improve the
conditions of their members working lives.
Workers realized the importance of fighting jointly on all work-related matters. This
collective fighting spirit is behind the back of collective bargaining
Collective bargaining is the process in which the representative of the employer and employer
and employees meet together to negotiate a contract government both the parties. It results
into signing an agreement thereby restricting each party that it cannot take unilateral decision
harming the interest of the other party. This sort of joint meeting can bring fruits proved
barraging is done in the right spirit with positive attitude.
Participation brings both the parties together and improves the understanding thus making the
way for the two way dialogue to sort out the problems.
Collective bargaining is a better alternative to strike and industrial disputes. It is peaceful
and democratic method for solving the problem and demands for workers through direct
negotiation between the representative of workers and management.
A strong trade union can protect the interest of worker can more effectively through direct
negotiation and consultation rather than through disputes and strike which are normally
harmful to workers, employer and society at large.


The main objectives of Collective bargaining are given below:

To settle disputes / conflicts relating to wages & working conditions.
To protect the interests of workers through collective plan.
To resolve the differences between workers & management though voluntary
negotiations & arrive at a customer.
To avoid third party intervention in matters relating to employment.

Functions of Collective Bargaining

Collective bargaining plays an important role in preventing industrial disputes, setting these
disputes & maintaining industrial peace by performing the following functions:

Increase the economic strength of employees & management.
Establish uniform conditions of employment.
Secure a prompt & fair redressal of grievances.
Lay down fair rates of wages & other norms of working conditions.
Achieve an efficient functioning of the organization.
Promote the stability & prosperity of the company.
It provides a method of the regulation of the conditions of employment of those who are
directly concerned about them. It provides a solution to the problem of sickness in the
industry & ensures old age pension benefits & other fringe benefits.
It builds up a system of industrial jurisprudence by introducing civil rights in the
industry. In other words, it ensures that the management is conducted by rules rather than
by arbitrary decisions.