NMIMS Global Access

School for Continuing Education (NGA-SCE)

Course: Essentials of HRM
Internal Assignment Applicable for December 2016 Examination
1.

Assignment Marks: 30

There is lot of emphasis that the processes like HR audit and HR accounting can only be successful if
accurate HR information is available. Validate this statement with proper explanation on needs and
application of HRIS.
Training and development
Performing appraisal
Retention Strategy
(10 Marks)

Answer:
HR Audit: HR Audit is the process of examining and evaluating HR policies, procedures, and practices to
determine the effectiveness of the HRM functions of an organization. The main aim of the HR audit is to facilitate
the optimum utilization of human resources and accurate human resource planning in an organization. HR audit
helps organizations in ensuring complains with all regulatory norms; correcting, existing gaps in the in the HRM
function, establishing sound HR policies, and so on.
HR Accounting: HR accounting is an attempt to estimate the cost incurred on employees towards their recruitment,
training and development, salaries and other benefits paid in return for their contribution to organizations
profitability. It aims at calculating the total amount to be spent on acquiring, allocating, developing and maintaining
human resource, making effective decision related to recruitment, selection promotions and transfer retrenchment
etc.
HRIS: HRIS is the system which gives complete information of an organization about total number of employees,
salaries, education level of the employees, age, vintage, designation, working functions, technical qualifications and
skills etc.
In this era of highly competitive environment, it is essential for an organization to have a system which can give
these informations accurately. An organization must plan resources correctly to maximize its profit and meets the
need of the competitive market in the segment organization operates. In the lack of information weather incomplete
or wrong, planning of an origination will be completely wrong or miss- leaded which cannot give desire results. Any
organization if want to plan their resources accurately to obtain maximum profit must follow accurate HR Audit and
HR Accounting process. Both HR accounting and HR auditing can only be successful if accurate information is
available. HR information system is a set of interrelated components that collects, stores, processes, generates, and
disseminates human resource information for effective decision making. It manages, analyses, and reports of all
information are related to the employees and HR policies of an organization. Therefore if any organization wants to
become successful must plan their resources correctly and for that it is essential to get accurate data from HRIS.

The need of HRIS arises in business organization having a large number of employees. In such organization it is
extremely difficult to manage and maintain employee data manually. HRIS enable organizations to maintain
employee database and retrieve it as and when required. Below are the benefits explain the need HRIS in an
organizations.
1.
2.
3.
4.

Effective planning and policy formulation

Monitoring and evaluation
Decision making
Increased accuracy

5.

Increased productivity

Effective planning and policy formation: HRIS aims to provide support to managers for future planning and
formulation HR policies. This support is extended to both at macro and micro levels. At the macro levels, HRIS is
concerned with overall organizational productivity. On the other hand at the micro level, it specifically relates to the
performance of the HR department.
Monitoring and evaluating: In an organization, HRIS aims to monitor an organizations requirements related to
HR demand and supply. This further helps in preventing the situations of shortage and excess of human resource.
Decision making: HRIS intended to provide inputs to managers in making strategic decisions related to
technological changes, employee turnover, competency profiling of employees etc.
Increased accuracy: HRIS is free from human errors and provides accurate information to managers related to
employees. This ultimately leads to sound HR decisions; thereby increasing overall organizational effectiveness.
Increased productivity: HRIS contributes largely to an increase in organizational productivity by providing
information on any gaps in the skills and competency of employees and training and development requirements.
Example: If any organization is have wrong data of number of employees, salary, qualification or any other
information, HR Auditing and HR Accounting will not be successful due to wrong figures of information.
Assume organization X is having 300 employees who are not technically qualified and company want to give
technical training to them but as per data it says only 125 employees are not technically qualified . In this scenario
planning of training for 125 employees will not give maximum productivity as compared to planning of 300
employees. Hence HR accounting and auditing both are not correct in this case.
Training and development: HRIS facilitates performance evaluation of an employee understanding proper training
methods, utilizing the knowledge imparted to employees in an accessible manner. Training & Development function
play a strategic role in improving the overall productivity and steering organizational growth as well.
HRIS Applications in Training and development is essential to achieve the desired purpose of standardizing
performed works. HRIS application helps in analyzing designing, developing, executing and evaluating.

Analyze: The department, functional areas, employees should be identified to strategize the process of
training. The requirement of training and the cost incurred for the method should be analyzed.

Design: A structured design is framed to meet the required needs through formulation of objectives, steps
and contents of the training program.

Develop: Developing the training program to accomplish organizational goals.

Execute: It is the implementation of the training program.

Evaluate: It is a sort of performance evaluation in order to improve the work performance through
necessary changes.

Performing appraisal: When HRIS is used regularly to track employee achievements, training, and errors,
generating performance reviews becomes much easier. It is no longer necessary for managers to try to remember
events from immediately after the last review or to arbitrarily gauge overall progress. Concrete facts and notes are
available in the system, so managers can review the employees performance and give a review based on the whole
picture of the employees life within the company rather than pieces gleaned from past reviews and impressions.
Retention Strategy: Employee retention is a major worry for business organizations. It costs much more to hire,
train, and properly onboard a new employee rather than keeping an old employee happy. Companies institute a
number of policies and awards to improve employee satisfaction. Trough HRIS reports organizations can monitor
and form strategy to retain employees.
2.

It is continuously heard from employees that their performance evaluation wasn't a valuable progressive
experience. The most important part of the difficulty is that most managers will avoid discussing
performance issues that are related to behaviour. Its more on ease to discuss about concrete job
responsibilities, skills and goals. There may be a grave concern that is never brought up because the
manager is afraid of your reaction or may lack the ability to translate it into the right words. Keeping in
view the above sentence discusses any two future oriented performance appraisal methods which can help
resolve such problems. (10 Marks)
Answer :
Performance Appraisal: With the ever-increasing competition, the success of organizations can only be
ensured if the manage their overall performance from time to time. Performance management is a process
of determining, assessing, and sustaining the performance of all the aspects of an organization, such as
processes, departments, and human resource. Performance management is the systematic analysis and
measurement of overall performance of an organization. The main of the process is to improve
organizational performance over time.
Performance appraisal is an on-going process of assessing the performance of employees. It involves
comparing the actual performance of employees with the established standards which are already
communicated to employees. In case of deviations, feedback is provided to the employees about their
performance level and suggestions are given to improve their performance.
Process of Performance Appraisal: Performance appraisal is a systematic and cyclic process that involves a
number of steps. However the implementation of performance appraisal process varies across organizations
depending their requirements and performance standards. Standard steps of performance appraisal are
given below.

Esta b lis hing Per fo rm an ce S ta nd ard s

Ta ki ng Correcti ve Ac ti on

Com municati ng the s tandar ds

Comm uni cati ng

Res ult s O f Ap pra is al s to the con cer ed Empl oy ee

Determi ni ng pe rs onne l re spo nsi bl e for conducti ng Performanc e Appraisa l

Meas uri ng t he per fo rm an ce

Methods of Performance Appraisal: There are numerous methods are used by organization for
performance appraisal. These methods can be broadly grouped into two categories.
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Past- Oriented Methods: These are oldest techniques of performance appraisal. Past-oriented appraisal methods
are based on trait-oriented approach wherein the performance of employee s is evaluated on the basis on established
standards of traits or qualities of the employees, such as personality, attitude, initiative, ability to judge, versatility,
leadership, commitment, domain knowledge, and punctuality .
Future Oriented Methods: With rapid change in technology, appraisal methods in an organization have also got
modified. Now-a days, organizations use various future-oriented appraisal methods. Some of the future-oriented
methods are...

Human Resource accounting method

Assessment centre method
Management by objective method- MBO
360-degree appraisal method
Behaviourally Anchored Rating Scale BARS

Keeping the view of the concern behavior issue and fear of manager to communicate right feedback to the
concern employee I would suggest below performance appraisal methods.
Management by Objective (MBO) Method: This is one of the commonly used performance appraisal approach in
which employees are asked to establish goal for themselves in assistance with their superiors. At the end of each
year, employees discuss these goals with their superiors to identify the progress towards their goal accomplishment.
The mutual goal setting leads to high employee satisfaction, strong job commitment, and enhance motivation level.
360-degree appraisal method: This method provides an organization with a more comprehensive picture of an
employees performance. In this method, the organization appraises an employee based on the feedback received
from various sources, such as superiors, subordinates, colleagues and employee himself/ herself. The feedback
provided by these sources is kept anonymous to appraise the employee without any bias. In addition, the feedback
received from various sources helps employees to identify their strengths and weaknesses and exploit opportunity
for their self development.
Concern for behivour and fear to communicate can be eliminated as both the process are involving employee to
participate in appraisal process.
3. Ria joined Techno Geeks a software company as a GET (Graduate Engineer Trainee). On the very first day of her
joining she was given some brochure to read and subsequently some work was assigned to her. Whenever she had a
query she went to her peers and superiors which they sometime disliked Ria is very confused and doesnt carry a
good impression about the organisation. She then resigned from her work within a month of joining. The HR
realised that the employee turnover is increasing and the prominent reason behind is the lack of induction.
a) What new strategy the HR should come up with in terms of Induction? Discuss (5 Marks)
Answer:
New Induction Strategy : Corporates are adopting new methods of inducting their recruits, thus induction program
is no longer the same they used to be in earlier times. Corporate are aggressively coming out with new ideas and

methods of induction. There are various ways to develop induction strategies however few are the common pillars
to design induction strategy.
Pillars of Induction strategy

Relatio
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The
Structu
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Induc
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Strate
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Culture

Expect
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What are we about? The culture
What are the norms and values that matter here in an Organization?
What is our mission and how does each of us participate in an organization to accomplish.
How do we work? The structures
What are the procedures, routines and expectations, departments, subsidiaries, etc?
Who is involved? The relationships
Whom do we serve? How do we interact with the employees, superiors, subordinates, peers, stakeholders,
shareholders, and the broader community? How do we interact with our colleagues?
What is expected? Roles and responsibilities
Detailed description about job profile
Keeping in mind above pillars strategy can be designed for new employees such as production unit visit, Meeting
with top management, Interaction with different departments, meeting with superiors of other department as well as
within same department, Interaction with subordinates with other department as well as within same department, and
a brief introduction about companys vision, mission, values, beliefs, rules, regulation, policies, code of conduct, job
profile and expectations.
This strategy will work as an eye-opener about organization for new employees, they will be able to know and
understand the similarities and differences among the group and counterparts and the work culture at difference
locations of the organization. After visiting different locations, department and meeting with top management, new
employees will be able to know the communication network of the organization, how the centralization and

decentralization of decision making is done and how the organization is able to provide various growth options to
its employees.
b) Explain the purpose of induction that how things could have been different in above case if they followed a
proper induction pattern. (5 Marks)
Answer:
Induction and Orientation: Orientation and induction are two most important activities of the Human Resource
Management (HRM) function of an organization. These two activities aim at familiarizing newly appointed
employees to the work environment of the organization and the fellow employees.
Purpose for Induction: An effective induction program lays a foundation for strong employee-employer
relationship. The need for induction can be understood from two prospective Organizations prospective and
employees prospective
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Process of Induction: Induction is a systematic process that aims at informing employees about every aspect of the
organization that they should know to perform their job effectively . The induction process differs across
organizations depending on their requirements. However there are certain common steps of induction process across
all the organizations.

Step
1
2
Step3
Step
4
Step5

If the proper induction process could have been initiated in case of Ms. Ria at the time of joining, she might have
been resource to the organization in contributing growth and profit. Through proper induction she could have learn
about working environment , company objective, roles, responsibilities, well introduced to colleagues, working
hours ,and bonding between co-workers leads to job satisfaction ,clarity about roles and responsibilities healthy
working environment which could have help Ria to stay with the organization and perform job accurately .