Human+Resource+Management+2001 2005

HUMAN RESOURCE MANAGEMENT-2001
Attempt any five questions Total 100

marks
All questions carry equal marks
Answers should be in sufficient detail with case examples.
_______________________________________________________________________________________________
Q1. What steps should be a Human Resource Managers take to make a change
management programme successful?
Ans 1. Management is said to be an agent of change. In order to make a change management

programme successful the HR Manager has to implement the following steps:
1. Participation of Employees: Before introducing any change the employees should be

consulted and the purpose of change should be made known to them. Sufficient time
should be given for discussing the pros and cons to the employees.
2. Planning for Change: The change should be planned by the Management. Employees
should get an opportunity for planning and installing the change. This will help the group
affected to accept and understand the need for change.
3. Protecting Employees Interest: Management should ensure that employees are

protected from economic loss, loss in status or personal dignity.
4. Group Dynamics: Group dynamics refers to the ever changing interactions and
adjustments in the mutual perceptions and relationships among members of the groups.
Such associations are powerful instruments which facilitates or inhibit adaptation to
change. The management has to positively articulate such groups.
5. Cautious and Slow Introduction: The HR manager should cautiously and slowly
introduce change. He should not suddenly and abruptly introduce change. He must aim
bring about awareness of change and construct an attitude of welcoming change. Change
must be introduced in sequential parts, the results must be reviewed and required
adjustments have to be if required.
6. Positive Motion: The HR Manager should use the policy of positive motivation to
counteract negative resistance. Proper training and technical knowledge should be
imparted to the employees. The leadership style would be supportive and human oriented.
7. Sharing the Benefits of Change: Any change whether technical, social or economic will
least resisted by the employees if the management permits the employees to share the
benefits which will arise out of change.
8. Training and Development: Based on the change the job should be redesigned.
Management should train the employees before hand and prepare the employees to invite
change. Normally trained and developed employees will not resist change. They would feel
empowered with their enriched skills and knowledge.
9. Career Planning and Development: The HR Manager should plan careers of

employees, move them to higher levels and develop them.
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10. Organisation Development: HR Manager should also look into the psychological and
behavioural areas of the employee with a view to achieve organizational effectiveness.
Employees with enriched behaviour welcome change.
Q2. What are the special problems faced in an Indian company to make the Human
Resource Management function more successful?
Ans 2. Indian Companies basically face two factors viz Internal and External that pose a
problem in the smooth functioning of HRM function.
External Factors.
1. Government policies: Policies of the government like labour policy, industrial relations
policy, policy towards reserving certain jobs for certain communities.
2. Level of Economic Development: Level of economic development determines the level

of HRD in the country and thereby the supply of human resources in the future in the
country.
3. Business Environment: External business environmental factors influence the volume

and mix of production thereby the future demand for human resources.
4. Information Technology: Technology has made an amazing shift in the way to conduct
business. These shifts include business process re-engineering, supply chain management
etc. It also reduces obsolete machinery and traditional human resources. However in latter
stages it eliminates many categories of labour and reduces existing human resources.
5. Level of Technology: Level of technology determines the kind of human resources

required.
6. International factors: International factors like the demand for and supply of human
resources in various countries.
Internal factors:
1. Company Strategies: Company policies and strategies relating to expansion,

diversification, alliances etc. determine the human resources demand in terms of
quality and quantity.
2. Human Resource Policies: Human resource policies of the company regarding

quality of human resources, compensation level, quality of worklife etc.
3. Job Analysis: Fundamentally human resources plan is based on job analysis. Job
description and job specification.
4. Time Horizons: Companies in an unstable competitive environment can plan for only
short tern range. They have to face new competitors. Rapid change in socio and
economic conditions. Small organization size, poor management practices. Unstable
product/service demand patterns.
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5. Company’s Production/Operations Policy: Company’s policy regarding how much
to produce and how much to buy from outside to prepare a final product influences the
number and kind of people required.
6. Trade Unions: Influence of trade unions regarding the number of working hours per
week, recruitment sources etc. affect human resource management function.
Q.3. What are the different Internal and External sources of recruitment? Explain
the merits and demerits of each.
Ans. 3. The sources of recruitment are broadly divided into internal sources and external
sources consisting of the following:
Internal sources of Recruitment:
1. Present Permanent Employees : Organizations consider the candidates from this

source for higher level of jobs due to availability of most suitable candidates for jobs relatively
or equally to external sources, to meet the trade union demands and due to the policy of the
organization to motivate the present employees.
2. Present temporary/casual Employees: Organizations find this source to fill the

vacancies relatively at the lower level owing to the availability of suitable candidates or trade
union pressures or in order to motivate them on present job.
3. Retrenched or Retired Employees: Employees retrenched due to lack of work are given
employment by the organization due to obligation, trade union pressure etc. Sometimes they
are re-employed by the organization as a token of their loyalty to the organization or to
postpone some interpersonal conflicts for promotion.
4. Dependents of Deceased, Disabled, retired and present employees: Some

organizations function with a view to developing the commitment and loyalty of not only the
employee but also his family members.
5. Employee Referrals: Present employees are well aware of the qualifications, attitudes,
experience and emotions of their friends and relatives. They are also aware of the job
requirements and organizational culture of their company. As such they can make preliminary
judgment regarding the match between the job and their friends and relatives.
External Sources of Recruitment
1. Campus Recruitment: These candidates are directly recruited by the Co; from their
college/educational institution. They are inexperienced as far as work experience is
concerned.
2. Private Employment Agencies/Consultants: Public employment agencies or

consultants like ABC Consultants in India perform recruitment functions on behalf of a
client company by charging fees. Line managers are relieved from recruitment functions
and can concentrate on operational activities.
3. Public Employment Exchanges: The Government set up Public Employment Exchanges

in the country to provide information about vacancies to the candidates and to help the
organization in finding out suitable candidates. As per the Employment Exchange act
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1959, makes it obligatory for public sector and private sector enterprises in India to fill
certain types of vacancies through public employment exchanges.
4. Professional Organizations: Professional organizations or associations maintain

complete bio-data of their members and provide the same to various organizations on
requisition. They act as an exchange between their members and recruiting firm.
5. Data Banks: The management can collect the bio-data of the candidates from different
sources like Employment Exchange, Educational Training Institutes, candidates etc and
feed them in the computer. It will become another source and the co can get the
particulars as and when required.
6. Casual Applicants: Depending on the image of the organization its prompt response
participation of the organization in the local activities, level of unemployment, candidates
apply casually for jobs through mail or handover the application in the Personnel dept.
This would be a suitable source for temporary and lower level jobs.
7. Similar Organizations: Generally experienced candidates are available in organizations

producing similar products or are engaged in similar business. The Management can get
potential candidates from this source.
8. Trade Unions: Generally unemployed or underemployed persons or employees seeking

change in employment put a word to the trade union leaders with a view to getting
suitable employment due to latter rapport with the management.
9. Walk In: The busy organization and rapid changing companies do not find time to perform
various functions of recruitment. Therefore they advise the potential candidates to attend
for an interview directly and without a prior application on a specified date, time and at a
specified place.
10. Consult In: the busy and dynamic companies encourage the potential job seekers to
approach them personally and consult them regarding the jobs. The companies select the
suitable candidates and advise the company regarding the filling up of the positions. Head
hunters are also called search consultants.
11. Body Shopping: Professional organizations and the hi-tech training develop the pool of
human resource for the possible employment. The prospective employers contact these
organizations to recruit the candidates. Otherwise the organizations themselves approach
the prospective employers to place their human resources. These professional and training
institutions are called body shoppers and these activities are known as body shopping.
The body shopping is used mostly for computer professionals. Body shopping is also
known as employee leasing activity.
12. Mergers and Acquisitions: Business alliances like acquisitions, mergers and take over
help in getting human resources. In addition the companies do also alliances in sharing
their human resource on adhoc basis.
13. E_recruitment: The technological revolution in telecommunications helped the

organizations to use internet as a source of recruitment. Organizations advertise the job
vacancies through the world wide wed (www). The job seekers send their applications
through e-mail using the internet.
14. Outsourcing: Some organizations recently started developing human resource pool by
employing the candidates for them. These organizations do not utilize the human
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resources; instead they supply HRs to various companies based on their needs on
temporary or ad-hoc basis.
Merits and Demerits of Internal Sources of Recruitment
Sr. Merits of Internal Sources of Demerits of Internal Sources of

Recruitment Recruitment
1. Motivates present employees when Trade union pressure may not always give
they are upgraded internally. the right candidate for the job. The
management may have to consider some
concessions.
2. Retrenched workers get an opportunity Management’s gets a chance to postpone
to work again. promotion due to interpersonal conflicts.
3. Dependents of the deceased get a job Excessive dependence on this source
easily results in in-breeding, discourages flow of
new blood into the organization.
4. Morale of employees is improved The organization becomes dull without
innovations, new ideas, excellence and
expertise.
5. Loyalty, commitment, security of
present employees can be enhanced
6. Cost of recruitment, training, induction,
orientation, etc is reduced
7. Trade unions can be satisfied.
Merits and Demerits of External of Recruitment
Sr. Merits of External Sources of Demerits of External Sources of

1. The candidates with skill, knowledge Campus recruited employees lack work
talent etc is generally available. experience.
2. Cost of employees can be minimized. Cost of recruitment is high and there is no
confidentiality.
3. Expertise, excellence and experience in Specified vacancies have to be filled by
other organizations can be easily candidates referred by employment
brought into the organization. exchanges which do not allow other
candidates to be eligible.
4. Existing sources will also broaden their
personality.
5. Human Resource mix can be balanced
6. Qualitative human resource benefits the
organization in the long run.
7. Reduction in time for recruitment
8. Increase in the selection ratio i.e.
recruiting more candidates.
9. HR professionals can concentrate on
strategic issues.
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Q. 4. What is Human Resource Planning? What is the purpose and what are its
important elements?
Ans. 4. Human resource planning means deciding the number and type of the human resources
required for each job, unit and the total company for a particular date in order to carry out
organizational activities. It is a process by which an organization moves from its current
manpower position to its desired manpower position. It is influenced by the strategic
management of the co.
STRATEGY HUMAN RESOURCE PLAN NING

Expansion Additional human resources of existing categories.
Diversification Additional human resources of different categories
Acquisitions and Mergers Reduction of human resources of managerial
positions
Retrenchment Reduction of human resources of almost all the
categories through VRS and other means
Low Cost Leadership Reduction of human resources
Differentiation Strategy Additional human resources of different
categories.
Purpose of Human Resource Planning.
- To recruit and retain the human resource of required quantity and quality.
- To foresee the employee turnover and make the arrangements for minimizing
turnover and filling up of consequent vacancies.
- To foresee the impact of technology on work.
- To meet the needs of the programmers of expansion, diversification etc.
- To improve the standards, skill knowledge, ability discipline etc.
- To access the surplus or shortage of human resources and take measures
accordingly.
- To maintain congenial industrial relations by maintaining optimum level and
structure of human resources.
- To minimize imbalances caused due to non-availability of human resources of the
right kind, right number in the right time and right place.
- To make the best use of its human resources
- To estimate the cost of human resources.
Important Elements of Human Resource Planning.
- Analyzing Corporate and unit level strategies

- Demand Forecasting: Forecasting the overall human resources requirements in
accordance with the organizational plans.
- Supply Forecasting: Obtaining the data and information about the present inventory
of human resources and forecast the future changes in the human resources
inventory.
- Estimating the net human resources requirements
- In case of future surplus, plan for re-deployment, retrenchment and lay off.
- In case of future deficit, forecast the future supply of human resources from all
sources with reference to plans of other companies.
- Plan for recruitment, development and internal mobility if future supply is more
than or equal to net human resources requirements.
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- Plan to modify or adjust the organizational plan if future supply is more than or
equal to net human resource requirements.
- Plan to modify or adjust the organizational plan if future supply will be inadequate
with reference to future net requirements.
Q5a. What are the merits and demerits of incentive based schemes of remuneration?
Ans 5.a.
Sr. Merits of Incentive based Remuneration Demerits of Incentive based Remuneration
1. It is accepted as a sound technique for It is not considered a very good scheme in
the achievement of greater productivity countries in the West where it is mostly
prevalent.
2. For employers the need of vigorous It tends to create tension among different
supervision is reduced. workers in an organization.
3. Workers have the advantage of working A poor performer will earn very little.
in a relatively calm atmosphere
because of minimum vigilance on them
by the superior.
4. The incentive is directly linked with the Tensions caused by incentive schemes
productivity of the worker. would give rise to internal relations
problems which would be a serious matter
of concern for the management.
5. The more the worker produces the The tension created would eventually
more he earns. affect the total output.
6. Higher productivity is an important A great sense of understanding the
perquisite of economic development. problems of human relations and that of
engineering is required for the smooth
administration of such incentive schemes.
Q 5.b. Explain what is Job Evaluation?
Ans. 5b. Job Evaluation is the process of determining by observation and study and reporting
pertinent information relating to the nature of a specific job. It is the determination of the tasks
which comprise the job and of the skills, knowledge, abilities and responsibilities of the worker of
a successful performance and which differentiates one job from all others. It is concerned with
arrangement of jobs in order of relative value within a given organization. Once jobs have been
evaluated it is then possible to harness a wage or salary structure to the established hierarchy.
Q. 6a. What steps should an organization take to make training more effective?
Ans 6a. The important steps for a training to be effective are as follows:
1. Preparing the Instructor: The instructor must know both the job to be taught and how
to teach it. The job must be divided into logical parts so that each can be taught at a
proper time without the training losing plan. For each part one should have in mind the
desired technique of instruction i.e. whether a particular point is best taught by
illustration, demonstration or explanation.
• A serious and committed instructor must :

a. Know the job or subject he is attempting to teach
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b. Have the aptitude and ability to teach
c. Have willingness towards the profession
d. Have a pleasing personality and capacity for leadership
e. Have the knowledge of teaching principles and methods
f. Be a permanent student, in the sense that he should equip himself with the latest
concepts and knowledge.
2. Preparing the Trainee: The trainee should be made at ease. Most people are somewhat
nervous when approaching an unfamiliar task. Though the instructor may have executed
the training programme many times he or she should never forget the newness to the
trainee. The quality of empathy is a mark of a good instructor.
3. Getting ready to Teach : This stage of the programme is class hour teaching involving
the following activities :
- Planning the programme
- Preparing the instructors outline
- Too much material much be avoided
- The session should move logically
- Each item should be discussed in depth.
- Repetition should be in different words.
- The material should be taken from standardized text
- When the standardized text is not available then the programme should be
developed based on group approach consisting of employer, skilled employees,
supervisors, trade union leaders and others familiar with the job requirements.
- Teach about the standard for trainee like quality, quantity, waste or scrap, ability to
work without supervision, knowledge or procedure, safety rules, human relations
etc.
4. Presenting the Operation: There are various alternative ways of presenting the
operations viz. explanation, demonstration. An instructor mostly uses these methods of
explanation. In addition one may illustrate various points through the uses of picture,
charts diagrams and other training aids.
5. Try out the Trainees Performance: As a continuation of the training sequence, the
trainee should be asked to start the job or operative procedure. Some instructors prefer
that the trainee explains each step before doing it, particularly if the operation involves
any danger. The trainee through repetitive practice shall acquire more skills.
6. Follow Up: The final step in most training procedures is the follow-up when people are
involved in any problem or procedure it is unwise to assume that things are always
constant. Follow up can be adapted to a variable re-enforcement schedule as suggested in
the discussion of learning principles. Every training programme should have a follow up to
improve on the future programmes.
Q 6b. Critically examine Herzberg’s two factor theory.
Ans. 6b. Herzberg Theory of motivation deals with basically two factors.
DISSATISFIERS: The first group (factor) consists of needs such as company policy and
administration, supervision, working conditions, interpersonal relations, salary, status, job
security and personal life. These factors he called “DISSATISFIERS” and not motivators. Their
presence or existence does not motivate in the sense of yielding satisfaction, but their absence
would result in dissatisfaction. They are also known as hygiene factors.
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SATISFIERS: The second group are the”satisfiers’ in the sense that they are motivators which
are related to job content. It includes factors of achievement, recognition, challenging work,
advancement and growth in job. Their presence yields feeling of satisfaction or no satisfaction
but not dissatisfaction.
Another WAY to present the above question
Ans 6b. Herzberg’s Classification of Maintenance and Motivational Factors
Sr Maintenance Factors or Motivational Factors or Satisfiers

. Dissatisfiers or Hygiene Factors
1. Job Content Job Content
2. Extrinsic Factors Intrinsic Factors
3. Company Policy and Administration Achievement
4. Quality of supervision Recognition
5. Relations with superiors Advancement
6. Peer Relations Work Itself
7. Relations with subordinates Possibility of Growth
8. Pay Responsibility
9. Job security
10 Work Conditions
.
11 Status
.
Q7. What is the role of a constructive and positive Trade Union?
Ans 7. The Role of a constructive and positive Trade Union
- Achieving higher wages and better working and living conditions for the members
- Acquiring the control of industry by worker
- Minimizing the helplessness of the individual workers by making them stand
collectively and against victimization and injustice of the employers
- Raising the status of the workers as partners of the industry and citizens of society
by demanding the increasing share for the workers in the \management of industrial
enterprises
- Providing a worker self confidence and self esteem
- Imbibing sincerity and discipline in workers.
- To protect the right to be consulted on all matters affecting the workers interest.
Besides the above functions of the trade unions the national Commission of Labour has entrusted
the following responsibilities on to the trade unions which they execute:
- Promotion of national integration

- Instilling in their members a sense of responsibility towards the industry and the
community
- Generally influencing the socio-economic policies of the community through active
participation in their formulation at various levels.
The functions of the trade union can be divided into 5 categories. Viz
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a. Militant or Intra Mural Functions : these functions include protecting the workers
interest i.e. hike in wages, providing more benefits, job security etc. through collective
bargaining and direct action such as strikes, gheraos etc.
b. Fraternal Or Extra Mural Functions : These functions include providing financial and
nonfinancial assistance to workers during the period of strikes, lock-outs, extension of
medical facilities, during sickness and casualties, provision of education, recreation,
recreational and housing facilities, provision of social and religious benefits etc.
c. Social Functions: These functions include carrying out social service activities,
discharging social responsibilities through various sections of the society like educating
the customers etc.
d. Political Functions: These functions include affiliating a union to a political party, helping
the political party in enrolling members, collecting donations, canvassing during the
election period, seeking help of political parties during the strikes and lockouts.
e. Ancillary Functions: Ancillary functions of trade include Communications to its

members. Welfare activates like acquiring of house sites, construction of houses, and
establishment of co-operative societies. Educating its members and their family. Arranging
to conduct research programmes. Analyzing data for collective bargaining, preparing
notes for union officials, for court cases etc. They also arrange to analyze macro data
about the economy, industry and different sectors etc.
Q8. Write short notes on any three:

a. Identification of training needs
b. Job Rotation
c. Principle of Natural justice
d. Workers participation in Management
Ans.8a. Identification of training needs: Training needs are identified on the basis of
organizational anaylsis, job analysis and manpower analysis. Training needs are those aspects
necessary to perform the job in an organization in which employee is lacking attitude/aptitude,
knowledge and skills. Basically there are two type of analysis done to identify the training. One is
the Organizational Analysis and the other Individual Analysis.
Training needs = Job and organizational requirement-Employees specifications
Identification of Training Needs

Sr. Group or Organizational Analysis Individual Analysis
1. To identify Organizational goals and objectives Performance appraisal
2. Personnel/skill inventories Work sampling
3. Organizational Climate indices Interviews
4. Efficiency indices Questionnaires
5. Exit interviews Attitude survey
6. MBO or work planning systems Training progress
7. Quality circles Rating scales
8. Customer survey/satisfaction data Observation of behavior
9. Consideration of current and projected changes
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b. Job Rotation: This type of training involves the movement of the trainee from one job to
another. The trainee received job knowledge and gains experience from his supervisor or
trainer in each of the different job assignments. Though this method of training is common in
training managers for general management positions, trainees can also be rotated from job to
job in workshop jobs. This method gives an opportunity to express his own ideas.
c. Principle of Natural Justice: It is a fair practice of decision making and running the
organization.
- All decisions are transparent
- All decisions are adequately documented
- A review process exits for affected employees, with agencies utilizing existing or revised
Grievance processes to enable employees to raise issues arising from the change process.
- Decision making takes into account both the individual and employers needs
- Relevant and current policy and procedures are well documented and accessible by
employees.
d.Workers Participation in Management: The concept of WPM is considered as a mechanism

where workers have a say in the decision making process of an enterprise. The concept
crystallizes the concept of industrial democracy and indicates an attempt on the part of an
employer to build his employees into a team which works towards the realization of a
common objective. It is a mental and emotional involvement of a person in a group situation
which encourages him to contribute to goals and share responsibilities in them.
The main objective of WPM in management include
- To promote increased productivity for the advantage of the organization, workers

and society at large.
- To provide a better understanding to employees about their role and place in the
process of attainment of organizational goals.
- To satisfy the workers social and esteem needs
- To strengthen labour management co-operation and thus maintaining industrial
peace and harmony.
- To develop social education for effective solidarity among the working community
and for tapping latent human resources.
- An ideological point of view to develop self management in industry
- To build the most dynamic human resource
- To build the nation through entrepreneurship and economic development.
Forms of WPM include works committees, Joint Management councils, Joint Councils and Shop
Councils.
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marks
Answers should be in sufficient detail with case examples.
Q1. What are the challenges before the Human Resource function in today’s Indian
business scenario?
Ans 1. A goal seeking organizations especially one that seeks improvement over the current
situation is a challenge, taking organization. When many such goals are pursued tremendous
internal pressures some of them conflicting, tend to be generated. Unless the organization
develops mechanisms for coping with these self-generated pressures, it may face major failure
and suffer disastrous retreats from its goal.
Human Resource function cannot be performed in a vacuum. There are many challenges that it
has to face to survive. All these challenges are discussed below.
1. Technological factors: Just as necessity is the mother of invention competition and a

host of other reasons are responsible for the rapid technological changes and innovations.
As a consequence of these changes, technical personnel, skilled workers, computer
operators and machine operators are increasingly required while the demand for other
categories of employers has declined. Hence procurement of skilled employees and their
increase in numbers to match the changing job requirements has become a complicated
task.
2. Human Resource in the Country: The structure, values and the level of education of
human resource in a country influence much of the Human Resource function. The
influence of manpower in the country can be studies through the changes in structure of
employment.
a. Change in the Structure of Employment: The structure of employment in an
organization changes with the entrance of workforce with different backgrounds (Social
economic, region, community, sex, religion, traditions culture etc). There has been a
significant change in the structure of employment with the entry of 1) candidates
belonging to the schedule castes, schedules tribes and backward communities. 2) more
female employees, due to increased career orientation among women to the suitability of
women for certain jobs and to women becoming more acclimatized to the working climate
and higher level of commitment. 3) The workforce consists of different regions but due to
increased transportation facilities and mobile character of people. These changes in
workforce are a challenge and a complicated task of HR function. It has to deal with
employees with different backgrounds.
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3. Changes in employee Roles and their Values: Earlier the management could totally
control its employees and get the desired output. Today the employees have to be
considered as a partner in the organization. Changing structure of workforce has led to
the introduction of new values in organization. Among these are moves 1) emphasis on
quality of life rather than quantity ii) equality and justice for employees over economic
efficiency iii) participation over authority. iv) Workers now prefer flexible working hours to
fixed time schedule. v) Level of education in recent years is comparatively very higher.
Increased formal education has led to the change of attitude of the employees.
4. Changing demands of employer: changes always are not on the side of employees.
Organizations also undergo changes and consequently their demands on employees will
also change. The information technological revolution and neck to neck marketing
competition of most of the organizations due to globalization demand that the existing
employees adopt to the ever-changing work situation and learn new skills, knowledge etc
to cope with the new changes.
5. Government and Legal factors: Until 1940 the government was not involved or
interested regarding the problems of labor or industry. But the need for Govt., interference
arose out of the belief that Government is the custodian of industrial and economic
activities. The role of the government in business has after 1991 with the announcement
of economic liberalization. However awareness of legislations is very important like the
Factory Act, 1948, Trade Union act 1962, Payment of wages Act 1936, The Minimum
Wages Act 1923, The Payment of Bonus Act 1965, The Employment Exchange Act,
Standing Order Act 1946, Maternity Benefit Act 1961, and The Apprentice Act 1961. All
these acts if not complied with can get the organization into deep trouble.
6. Customers: Organizations produce products or render services for the ultimate

consumption use by the customer. In other words organizations depend upon customers
for their survival and growth. Customers revolt against employees, if the services
rendered are less qualitative. The banks face such type of challenges. Customers may
develop a negative attitude towards the organization, if it does not follow the social
policies of the country. Hence the customers pose a challenge special ally in service
industry.
7. Social factors: Social environment consists of class structure, mobility social roles social
values nature and development of social institutions caste structure and occupational
structure, traditions, religion culture etc. To cater to everyone’s requirement and keep
them happy is a big challenge faced by HR today.
Q. 2.a Give a brief outline of the Human Resource Planning System.
Ans. 2a. Human resource planning means deciding the number and type of the human resources
required for each job, unit and the total company for a particular date in order to carry out
organizational activities. It is a process by which an organization moves from its current
manpower position to its desired manpower position. It is influenced by the strategic
management of the co.
STRATEGY HUMAN RESOURCE PLANNING

Expansion Additional human resources of existing categories.
Diversification Additional human resources of different categories
Acquisitions and Mergers Reduction of human resources of managerial
positions
Retrenchment Reduction of human resources of almost all the
1
categories through VRS and other means
Low Cost Leadership Reduction of human resources
Differentiation Strategy Additional human resources of different
categories.
Purpose of Human Resource Planning.
- To recruit and retain the human resource of required quantity and quality.
- To foresee the employee turnover and make the arrangements for minimizing
turnover and filling up of consequent vacancies.
- To foresee the impact of technology on work.
- To meet the needs of the programmers of expansion, diversification etc.
- To improve the standards, skill knowledge, ability discipline etc.
- To access the surplus or shortage of human resources and take measures
accordingly.
- To maintain congenial industrial relations by maintaining optimum level and
structure of human resources.
- To minimize imbalances caused due to non-availability of human resources of the
right kind, right number in the right time and right place.
- To make the best use of its human resources
- To estimate the cost of human resources.
Important Elements of Human Resource Planning.
- Analyzing Corporate and unit level strategies

accordance with the organizational plans.
of human resources and forecast the future changes in the human resources
inventory.
- Estimating the net human resources requirements
- In case of future surplus, plan for re-deployment, retrenchment and lay off.
- In case of future deficit, forecast the future supply of human resources from all
sources with reference to plans of other companies.
than or equal to net human resources requirements.
- Plan to modify or adjust the organizational plan if future supply is more than or
equal to net human resource requirements.
- Plan to modify or adjust the organizational plan if future supply will be inadequate
Q2. b. What is Job Evaluation?
Ans. 2b. Job Evaluation is the process of determining by observation and study and reporting
pertinent information relating to the nature of a specific job. It is the determination of the tasks
which comprise the job and of the skills, knowledge, abilities and responsibilities of the worker of
a successful performance and which differentiates one job from all others. It is concerned with
arrangement of jobs in order of relative value within a given organization. Once jobs have been
evaluated it is then possible to harness a wage or salary structure to the established hierarchy.
Q3 a. Steps to overcome Resistance to Change.

Ans 3. a. Although change is inevitable it is a common experience that employees resist change
whether in the context of their pattern of life or in the context of their situation in the
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organization. The best eg. Is resistance of employees to computerization. Change of and type
requires readjustment. Man always fears the unknown and a change represents the unknown.
Management is said to be an agent of change and has to introduce change successfully.

Management has to take the following steps to implement change successfully.
1. Participation of Employees: Before introducing any change the employees

should be consulted and the purpose of change should be made known to them.
Sufficient time should be given for discussing the pros and cons to the
employees.
2. Planning for Change: The change should be planned by the Management.

Employees should get an opportunity for planning and installing the change. This
will help the group affected to accept and understand the need for change.
3. Protecting Employees Interest: Management should ensure that employees

are protected from economic loss, loss in status or personal dignity.
4. Group Dynamics: Group dynamics refers to the ever changing interactions and
adjustments in the mutual perceptions and relationships among members of the
groups. Such associations are powerful instruments which facilitates or inhibit
adaptation to change. The management has to positively articulate such groups.
5. Cautious and Slow Introduction: The HR manager should cautiously and

slowly introduce change. He should not suddenly and abruptly introduce change.
He must aim bring about awareness of change and construct an attitude of
welcoming change. Change must be introduced in sequential parts, the results
must be reviewed and required adjustments have to be if required.
6. Positive Motion: The HR Manager should use the policy of positive motivation
to counteract negative resistance. Proper training and technical knowledge
should be imparted to the employees. The leadership style would be supportive
and human oriented.
7. Sharing the Benefits of Change: Any change whether technical, social or

economic will least resisted by the employees if the management permits the
employees to share the benefits which will arise out of change.
8. Training and Development: Based on the change the job should be

redesigned. Management should train the employees before hand and prepare
the employees to invite change. Normally trained and developed employees will
not resist change. They would feel empowered with their enriched skills and
knowledge.
9. Career Planning and Development: The HR Manager should plan careers of

employees, move them to higher levels and develop them.
10. Organisation Development: HR Manager should also look into the

psychological and behavioural areas of the employee with a view to achieve
organizational effectiveness. Employees with enriched behaviour welcome
change.
3.b. Write short notes on different methods of on the job training.

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Ans 3. b. On-the-job training, also known as job instruction training is the most commonly used
method. Under this method the individual is placed on a regular job and taught the skills
necessary to perform the job. The trainee leans under the supervision and guidance of a
qualified worker or instructor. On the job training has the advantage of giving first hand in
knowledge and experience under the actual working conditions. While trainee learns how to
perform a job, he is also a regular worker rendering the services for which he is paid. On the job
training includes job rotation, coaching, job instruction or training through step by step and
committee assignments.
a. Job Rotation: This type of training involves the movement of the trainee from one job to
another. The trainee received job knowledge and gains experience from his supervisor or
trainer in each of the different job assignments. Though this method of training is common in
training managers for general management positions, trainees can also be rotated from job to
job in workshop jobs. This method gives an opportunity to express his own ideas.
b. Coaching: the trainee is placed under a particular supervisor who functions as a coach in
training the individual. The supervisor provides feedback to the trainee on his performance and
offers him some suggestions for improvement. Often the trainee shares some of the duties and
responsibilities of the coach and relieves him of his burden. A limitation of this method is
training is that the trainee may not have the freedom or opportunity to express his own ideas.
c. Job Instruction: This method is also known as training through step by step. Under this
method the trainer explains to the trainee the way of doing jobs, job knowledge and skills and
allows him to do the job. The trainer appraises the performance of the trainee, provides
feedback information and corrects the trainee.
d. Committee Assignments: Under the committee assignment, a group of trainees are given
and asked to solve an actual organizational problem. The trainees solve the problem jointly. It
develops team work.
Q.4.a. Describe the profile of a demotivated worker.
Ans. 4.a. A demotivated worker often shows sign of low morale. Generally not noticed till it is
obviously low or when something has gone amiss. By the time the management recognizes the
fact that worker is demotivated, it is faced with one crisis or another. Perceptive managers are
therefore constantly on the look out for clues to any deterioration in the morale of the employees.
Among the more significant of the warning signals of a demotivated worker are:
1. High rate of absenteeism

2. Tardinees
3. High labour turnover
4. Strikes and sabotage
5. Lack of pride in work and
6. Wastage and spoilage
7. No job satisfaction
8. Many grievances
9. Does not follow rules and regulations of the company.
10.No Team building spirit hence contribution towards achieving organization
goals is very low.
11.Increases Accidents
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To curb demotivation the cause should be detected. It may be that the policies or practices of
the company are defective, or that if executives are at fault, or that the views of those workers
who are demodulated do not match with those of the company or its executives. May the
managers are committing a mistake and accepting it. The demotivated worker should be
counseled. He should be explained the responsibilities and rewards clearly.
4. b. Write short notes on the importance of succession planning.
Ans. 4.b. Succession planning is to identify, develop and make the people ready to occupy higher
level jobs as and when they fell vacant. Succession may be from internal employees or
external people. Organizations appraise employee potentialities, identify training gaps
for future vacancies, develop them for higher and varied jobs.
The scope of succession plan would be more when the organization grows steadily and employees
have
Potentialities to take up higher responsibilities. Successions planning practices followed by various
Companies:
Sr. Company Succession Planning Practices Adopted

1. GE Capital, Lucent Weigh key leadership characteristics accordingly to
technologies company culture and values
2. Eli Lilly Align succession plans with the corporate culture to create
a foundation for success.
3. Clorox Use Performance Metric Tools that are aligned with
corporate culture to organize top potentials
4. GE Customize pieces of the succession planning process to fit
individual business units
5. Glaxo Wellcome Conduct a division by division succession planning process
6. Novartis Match succession planning and development processes to
emerging trends in corporate culture.
Q.5a. What are the organization factors needed to support an effective performance
appraisal system.
Ans 5.a. Performance appraisal is a method of evaluating the behaviour of employees in the work
place normally including both the quantitative and qualitative aspects of job performance.
Performance refers to the degree of accomplishment of the tasks that make up an individual’s job.
It indicates how ell an individual is fulfilling the job demands.
Every organization has to decide upon the content to be appraised before the programme is
approved on the basis of job analysis. The content to be appraised may vary with the purpose of
appraisal and type and level of employees.
The key factor in an organization to support an effective performance appraisal system is as

follows:
- Organizational planning based on potentialities of human resources.
- Human Resource Planning based on weakness, strengths and potentialities of
human resources.
- Organizational effectiveness through performance improvement
- Fixation and re-fixation of salary, allowances, incentives and benefits
- Original placement or placement adjustment decisions
- Identifying training and development needs and to evaluate effectiveness of
training and development
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Needs and to evaluate effectiveness of training and development programmes
- Career planning and development and movement of employees
The indicators of a successful performance appraisal system at ICODE Software are:

- Culture of the system
- Employees fully trust the system
- Employees treat the system as a means to evaluate their arrears of improvement
- Employees do not see the system as a mere assessment tool
- Openness and transparency in the organization
Sr. Company Performance Appraisal

1. Xerox Provide a core set of metrics for use across organization
2. Toyota Focus performance reviews on goals rather than numbers
to ensure employee alignment
3. Federal Express Daily Performance Measurement Reporting. CEO team
weekly analysis review.
4. Fed Ex Design a balanced scorecard performance measurement
system
Q.5.b. Write short notes on Assessment Centre.

Ans. 5.b. This method of appraising was first applied in the German Army in 1930. Later,
business and industrial houses started using this method. This is not a technique of performance
appraisal by itself. In fact it is a system or organisation, where assessment of several individuals
is done by various experts by using various techniques. It includes techniques like in basket, role
playing, case studies, stimulation exercises, structured in sight, transactional analysis etc.
Q.6.a. Role of a constructive trade union in meeting workers expectation and

employers requirement of higher productivity.
Ans 6.a. Role of trade union towards workers expectation:

- To attain economic security. Ensuring permanent employment with higher salary
and benefits to the workers.
- To improve their bargaining power and balance it that of the management. To
negotiate and monitor management decisions, regarding policy, promotions
transfers, work assignment, grievance redressal and disciplinary issues.
- To ventilate the workers grievances to the management
- To inform workers views, aims, ideas and dissatisfaction/frustrations to the
management
- To secure protection from unexpected economic needs like illness, accidents, injury
etc.
- To satisfy their social needs
- To satisfy their psychological needs
- To satisfy their needs for belongingness.
- To provide a worker self confidence
- To acquire control of industry by workers
- To take up welfare measures for improving the morale of the workers
- To raise the status of the workers as partners of the industry and citizens of society
by demanding increasing share for the workers in the management of industrial
enterprises.
- Protecting the workers against victimization.
- To provide housing facilities
- To provide for educational, cultural and recreational facilities
Role of trade union towards employer’s requirement of higher productivity:
1
- To place industry under national ownership and control in a suitable form.
- To organize workers in such a manner as to ensure full employment and the best
utilization of its manpower, other resources and to achieve management objectives.
- To establish just industrial relationships
- To secure redressal of grievances without stoppage of work, by means of
negotiation, conciliation and failing these arbitration and adjunction.
- To make necessary arrangements for the efficient conduct and satisfactory and
speedy conclusion of authorized strikes and satyagraha.
- To foster the spirit of solidarity, service, brotherhood, co-operation and mutual help
among the workers.
- To develop in the workers a sense of responsibility towards the management,
industry and community.
- To raise the workers standard of efficiency and discipline which in turn will help to
achieve higher productivity.
- To make the workers understand the objectives of the management and accept the
same for the betterment and interest of both.
6.b. Write short notes on unfair labour practices of management.
Ans 6.b. Unfair Labour Practices: Normally prevail in an unorganized labour market and
especially in the third world countries. It includes small industries, tiny industrial units, cottage
industries, shops and establishments, hotels, restaurants, mobile business, trading unit’s taxi
operator’s agriculture etc. Demand for and supply of labour is normally casual and contract in
nature. They do not follow any systematic or scientific method of recruitment and selection.
Candidates are, mostly employed if they accept low wages. Organizations normally do not
design the jobs. Normally they do not provide employee benefits, welfare measures, fringe
benefits etc. The employees have no choice but accept low wages and are governed by the
employer. There is a lot of ignorance and illiteracy. Superior strength of employer. Weakest
bargaining power of the employee. Casual nature of employment. The employers exploit the
employees. Bonded Labour. Child Labour is a part of unfair labour practices.
Q7.a. What are the different forms of organizational structure.
Ans. 7a. Organisations are economic and social entities in which a number of persons perform
multifarious task in order to attain common goal. These objectives are best met collectively. But
it has to be structured so as to achieve specific ends. This structure is known as an
organizational structure and can be differentiated into 3 types.
Sr. Organisational structure in Organisational structure

in Broad Banding*
1950’s 1950’s (hierarchy containing
smaller number of level or
grades
1. Multi layers Flat/delayered Few levels
2. Manufacturing/labour Feed forward and very less Empowerment/ownership
Intensive control
3. Autocratic Team Focused Pay the person based on
Merit
4. Centralized Adaptive/Mobility Horizontal reinforces
5. Tightly held ownership Flexible Few Rules
6. Individual contributors Decentralized Market Driven
7. Narrow Responsibilities Externally focused
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7.b. Distinguish between Induction and Orientation Systems.
Sr. Induction Orientation

1. Introducing the new employee who is Orientation is getting familiar with the policies
designated as a probationer to the and practices followed in the Company.
job, job location, surroundings,
organization and various employees.
2. Induction is the process of receiving The new employee has to report to the HR
and welcoming an employee when he Department at stipulated date and time. From
first joins a company about the thereon he shall be guided by the HR
environment of the job and the Chief/Executive. He will be given brochures
organization in order to make the new describing the organization’s history, products
employee acquainted and philosophy. Review of the overall structure,
authority structure and policies and practices of
the company.
3. Gives a sense of belonging and Personnel/HR department will discuss company
commitment to the new employee benefits. New employee is to fill out health, tax
and other relevant forms.
4. Attaching a colleague to the new Tour of the main building and auxiliary facilities.
employee to reduce the new
employee anxiety.
5. Providing written and documented Introduction to the workplace and the dept head
information through CD/floppies. and co-workers.
6. If the first impression is good then it Detailed discussion with the Chief Executive HRM
helps the new employee to adjust to /Dept Head about daily jobs routine and
the work quickly and the supervisor’s department policies and rules.
time is saved to a great extent.
New employee on his own to get familiarized with
the job.
Q 8.Write short notes on any three.

a) Job Description b) Training Needs Analysis c) Employee Manual d) Organization
Downsizing e) Team Effectiveness
Ans 8a. Job Description: Job description is an important document which is basically descriptive
in nature and contains a statement of job analysis. It serves to identify a job for continuation by
other job analysts. It tells us what should be done, why it should be done and where it should be
performed.
- The job description should indicate the scope and nature of the work including all
important relationships.
- The job description should be clear regarding the work of the position, duties etc.
- More specific words should be selected to show (a) the kind of work (b) the degree
of complexity (c) the degree of skill required (d) the extend to which problems are
standardized (e) the degree and type of accountability. (f) Supervisory responsibility
should be shown to the incumbents. (g) The basic requirement, experience, works
wise, age qualifications etc., should be stated very clearly.
And 8b. Training Needs Analysis: Training needs are identified on the basis of organizational
analysis, job analysis and manpower analysis. Training programme, training methods and course
content are to be planned on the basis of training needs. Training needs are those aspects
necessary to perform the job in an organization in which is lacking attitude/aptitude, knowledge
and skill.
2
Training needs = Job and organizational requirement-Employees Specifications
Methods used in Training Need Analysis.

1. To identify Organizational goals and objectives Performance appraisal
9. Consideration of current and projected changes
Ans. 8. c. Employee Manual: The Employee Manual is a document that an employee can refer
to for any kind of query about the rules and guidelines of an organization. The Employee Manual
contains the following :
• History, growth, organisation and management, products, market, customers etc. of the
company.
• Basic conditions of employment - hours of work, shift, holidays, retirement benefits.
• Pay, allowances, deductions.
• Sickness rules, information - pay - sick leave.
• Leave rules - casual, special, earned - holidays, vacation.
• Work rules - work-load, use of materials, equipment, and machine.
• Disciplinary rules and procedure.
• Grievance procedure.
• Career path, promotion channel.
• Unions, negotiating machinery.
• Education, training and development facilities.
• Health, Safety, medical care arrangements.
• Canteen and restaurant facilities.
• Social benefits and welfare measures.
• Telephone calls and correspondence.
• Traveling and subsistence expenses.
• Uniforms, clothing.
• Various employees - their designations - position in the organisation.
Ans 8 d. Organisational Downsizing: When there is a surplus of labour the organization is

faced with a problem of downsizing the organization. Because maintaining surplus of labour will
eat into the profits of the Co. It is not easy to pay employees without extracted work from them.
In such cases the organization is faced with a problem of using the existing surplus for some
higher category of work by giving them training or employing them with their sister concern or
simply giving the employees a golden handshake through Voluntary Retirement Scheme (VRS).
Another way of downsizing is delayering the organization and rectifies the situation of
overstaffing.
Ans 8 e. Team Effectiveness: Team effectiveness is the result of team work which consists of a
group of jobs that are linked and interconnected with each other for the purpose of performing a
total operation. The total operation is assigned to a group of employees. Though each employee
is allotted a job in the team, he is expected to take up the job of other employees when they fail
2
to do it perfectly. Thus jobs in a team overlap with each other. Teamwork gains more significance
rather than individual jobs. In fact individual jobs are losing their relevance in the re-engineered
businesses, organizations based on supply chain management. Team effectiveness is essential
to serve the customer completely. These days’ organizations started designing teams and
analyzing team work. Most recent organization has realized that teamwork produces better
results than the performance of individual work. Infact practices of Enterprise Resource Planning
(ERP), Business Process Re-engineering (BPRE) and Supply Chain Management require
teamwork. The impact of synergy results in high productivity of teamwork than that of the total
of individual employees. Team effectiveness pertains to minimum acceptable human qualities
and relationships necessary to perform all kinds of activities in a team.

marks
Answers should be in sufficient detail with Practical examples and illustrations.
_______________________________________________________________________________________________
Q1. What are the special problems faced by Indian Corporates in Making Human
Resource Management functions more successful?
Ans 1. Indian Companies basically face two factors viz Internal and External that pose a problem
in the smooth functioning of HRM function.
External Factors.
1 Government policies: Policies of the government like labour policy, industrial relations
policy, policy towards reserving certain jobs for certain communities.
2 Level of Economic Development: Level of economic development determines the level

of HRD in the country and thereby the supply of human resources in the future in the
country.
3 Business Environment: External business environmental factors influence the volume

and mix of production thereby the future demand for human resources.
4 Information Technology: Technology has made an amazing shift in the way to conduct
business. These shifts include business process re-engineering, supply chain management
etc. It also reduces obsolete machinery and traditional human resources. However in latter
stages it eliminates many categories of labour and reduces existing human resources.
5 Level of Technology: Level of technology determines the kind of human resources

required.
6 International factors: International factors like the demand for and supply of human
resources in various countries.
2
Internal factors:
7. Company Strategies: Company policies and strategies relating to expansion,

diversification, alliances etc. determine the human resources demand in terms of
quality and quantity.
8. Human Resource Policies: Human resource policies of the company regarding

quality of human resources, compensation level, quality of work life etc.
9. Job Analysis: Fundamentally human resources plan is based on job analysis. Job
description and job specification.
10. Time Horizons: Companies in an unstable competitive environment can plan for only
short tern range. They have to face new competitors. Rapid change in socio and
economic conditions. Small organization size, poor management practices. Unstable
product/service demand patterns.
11. Company’s Production/Operations Policy: Company’s policy regarding how much

to produce and how much to buy from outside to prepare a final product influences the
number and kind of people required.
12. Trade Unions: Influence of trade unions regarding the number of working hours per
week, recruitment sources etc. affect human resource management function.
Q.2. What are the different sources of recruitment? Explain the merits and
demerits of each.
1. Present Permanent Employees : Organizations consider the candidates from this

source for higher level of jobs due to availability of most suitable candidates for jobs relatively
or equally to external sources, to meet the trade union demands and due to the policy of the


2
1) Campus Recruitment: These candidates are directly recruited by the Co; from
their college/educational institution. They are inexperienced as far as work
experience is concerned.
2) Private Employment Agencies/Consultants: Public employment agencies or

consultants like ABC Consultants in India perform recruitment functions on behalf of
a client company by charging fees. Line managers are relieved from recruitment
functions and can concentrate on operational activities.
3) Public Employment Exchanges: The Government set up Public Employment

Exchanges in the country to provide information about vacancies to the candidates
and to help the organization in finding out suitable candidates. As per the
Employment Exchange act 1959, makes it obligatory for public sector and private
sector enterprises in India to fill certain types of vacancies through public
employment exchanges.
4) Professional Organizations: Professional organizations or associations maintain

complete bio-data of their members and provide the same to various organizations
on requisition. They act as an exchange between their members and recruiting firm.
5) Data Banks: The management can collect the bio-data of the candidates from
different sources like Employment Exchange, Educational Training Institutes,
candidates etc and feed them in the computer. It will become another source and
the co can get the particulars as and when required.
6) Casual Applicants: Depending on the image of the organization its prompt

response participation of the organization in the local activities, level of
unemployment, candidates apply casually for jobs through mail or handover the
application in the Personnel dept. This would be a suitable source for temporary and
lower level jobs.
7) Similar Organizations: Generally experienced candidates are available in

organizations producing similar products or are engaged in similar business. The
Management can get potential candidates from this source.
8) Trade Unions: Generally unemployed or underemployed persons or employees

seeking change in employment put a word to the trade union leaders with a view to
getting suitable employment due to latter rapport with the management.
9) Walk In: The busy organization and rapid changing companies do not find time to
perform various functions of recruitment. Therefore they advise the potential
candidates to attend for an interview directly and without a prior application on a
specified date, time and at a specified place.
10) Consult In: the busy and dynamic companies encourage the potential job seekers
to approach them personally and consult them regarding the jobs. The companies
2
select the suitable candidates and advise the company regarding the filling up of
the positions. Head hunters are also called search consultants.
11) Body Shopping: Professional organizations and the hi-tech training develop the
pool of human resource for the possible employment. The prospective employers
contact these organizations to recruit the candidates. Otherwise the organizations
themselves approach the prospective employers to place their human resources.
These professional and training institutions are called body shoppers and these
activities are known as body shopping. The body shopping is used mostly for
computer professionals. Body shopping is also known as employee leasing activity.
12) Mergers and Acquisitions: Business alliances like acquisitions, mergers and take
over help in getting human resources. In addition the companies do also alliances in
sharing their human resource on adhoc basis.
13) E_recruitment: The technological revolution in telecommunications helped the

organizations to use internet as a source of recruitment. Organizations advertise the
job vacancies through the world wide wed (www). The job seekers send their
applications through e-mail using the internet.
14) Outsourcing: Some organizations recently started developing human resource

pool by employing the candidates for them. These organizations do not utilize the
human resources; instead they supply HRs to various companies based on their
needs on temporary or ad-hoc basis.
Merits and Demerits of Internal Sources of Recruitment
Sr. Merits of Internal Sources of Demerits of Internal Sources of

1. Motivates present employees when they are Trade union pressure may not always give
upgraded internally. the right candidate for the job. The
management may have to consider some
concessions.
2. Retrenched workers get an opportunity to Management’s gets a chance to postpone
work again. promotion due to interpersonal conflicts.
3. Dependents of the deceased get a job easily Excessive dependence on this source results
in in-breeding, discourages flow of new blood
into the organization.
4. Morale of employees is improved The organization becomes dull without
innovations, new ideas, excellence and
expertise.
5. Loyalty, commitment, security of present
employees can be enhanced
6. Cost of recruitment, training, induction,
orientation, etc is reduced
7. Trade unions can be satisfied.
Merits and Demerits of External of Recruitment
Sr. Merits of External Sources of Demerits of External Sources of

1. The candidates with skill, knowledge talents Campus recruited employees lack work
etc are generally available. experience.
2
2. Cost of employees can be minimized. Cost of recruitment is high and there is no
confidentiality.
3. Expertise, excellence and experience in other Specified vacancies have to be filled by
organizations can be easily brought into the candidates referred by employment
organization. exchanges which do not allow other
candidates to be eligible.
4. Existing sources will also broaden their
personality.
5. Human Resource mix can be balanced
6. Qualitative human resource benefits the
organization in the long run.
7. Reduction in time for recruitment
8. Increase in the selection ratio i.e. recruiting
more candidates.
9. HR professionals can concentrate on strategic
issues.
Q 3. Define Motivation. Discuss any two theories of Motivation.
Ans 3. Motivation is derived from the word “Motive”. A motive is an inner state that energizes,
activates or moves and directs or channels behavious towards goals. It represents an unsatisfied
need which creates a state of tension or disequilibrium causing the individual to move in a goal
directed pattern towards restoring a state of equilibrium by satisfying the need. Motivation is a
process that starts with a physiological deficiency or need that activates behavious or a drive that
is aimed at a goal or incentive. Thus the process of motivation lies in the meaning of and
relationship among needs, drives and incentives.
The Basic Motivation Process = Needs----------- Drives-------------------------- Goals/Incentives

(Deficiency) (Deficiency with Direction) Reduction of
drives
and fulfills deficiencies.
It is a bare fact that most of us use only a small portion of our mental and physical abilities. To
exploit the unused potential in people they are to be motivated. Needless to say that such
exploitation results in greater efficiency, higher production and better standard of living of the
people. There are basically two types of motivation vis 1) Positive Motivation and Negative
Motivation.
1. Positive Motivation: People are said to be motivated positively when they are shown a rewards
and the way to achieve it. Such a reward may be financial or non financial. Monetary motivation
may include different incentives, wage plans, productive bonus schemes etc. Non monetary
include praise for work, participation in management, social recognition. Monetary incentives
provide the worker a better standard of life while non monetary incentives satisfy the ego of a
man.
2. Negative Motivation: It is induced by installing fear in the minds of people; one can get the
desired work done. In this method of motivation fear of consequences of doing something or not
doing something keeps the worker in desired direction. This method has got several limitations.
Fear Creates frustration, a hostile state of mind and an unfavorable attitude towards the job
which hinder efficiency and productivity. So the use of it should be kept minimum.
Theories of Motivation: There are several theories on motivation. The significant among them are
Maslow’s Hierarchy of Needs, Herzber’s Two Factor Theory, Vrooms Expectancy Theory, Porter
2
and Lawler’s Expectancy Theory and Equity Theory of Work Motivation. We shall discuss 1.
Maslows Theory of Hierarchy of Needs and 2. Herzberg Two Factor Theory.
1. Maslow’s Theory of Hierarchy of Needs :

According to Maslow, human needs form a hierarchy, staring at the bottom with the
physiological needs and ascending to the highest need of self actualization. He says when
one set of needs is satisfied; they no longer work as motivators as a man seeks to satisfy the
next higher level of needs.
__________________________________________________
Need for Self-Actualization
__________________________________________________
Physiological Needs
__________________________________________________
Esteem Needs
__________________________________________________
Social Needs -Affiliation or Acceptance Needs
__________________________________________________
Security of Safety Needs
__________________________________________________
Physiological Needs
__________________________________________________
MASLOW”S HIERACHY OF NEEDS
==========================================
The Need Hierarchy:
1. Physiological Needs: These are the basic necessities of human life, food, water, warmth,
shelter, sleep and sexual satisfaction. Maslow says that until these needs are satisfied to
the required level, man does not aim for the satisfaction of next level of needs. As far as
work environment is concerned, these needs include basic needs like pay, allowance,
incentives and benefits.
2. Security/Safety Needs: These refer to the need to be free of physical danger or the
feeling of loss of food, job or shelter. When the physiological needs are satisfied, man
starts thinking of the way by which he can satisfy his safety needs. Security needs spring
up the moment he makes an effort in the direction of providing himself the source of
continuity of physiological needs. In a work environment these needs include conformity,
security plans, membership in unions, severance pay etc.
3. Social Needs: (Affiliation or Acceptance Needs) When the physiological and security
needs are satisfied, these social needs begin occupying the mind of a man. This is
exactly why he looks for the association of other human beings and strives hard to be
accepted by this group. Social needs at the work place include: Human relations, formal
and informal work groups.
4. Esteem Needs: These needs are power, status and self confidence. Every man has a
feeling of importance and he wants others to regard him highly. These needs makes
people aim high and make them achieve something great. These needs for employees
include status symbols, awards, promotions, titles etc.
5. Self Actualization Needs: This is the highest need in the hierarchy. This refers to the
desire to become what one is capable of becoming. Man tries to maximize his potential
and accomplish something, when this need is activated in him.
2. Herzberg Theory of Motivation: Deals with basically two factors Dissatisfiers and
Satisfiers.
2
SATISFIERS: The second group are the” satisfiers’ in the sense that they are motivators which
Herzberg’s Two Factor Theory: Classification of Maintenance and Motivational Factors

9. Job security
10 Work Conditions
.
11 Status
.
Q4. What are the merits of formal organization structure?

Ans. 4. A formal organizational structure composes of job descriptions, organization charts,
procedures and other written documents which describe and define how individuals should work
with each other. A formal organizational structure is the organization as it exist son paper. It is
the official sanctioned way of doing things. It tells you who reports to whom and how various
problems should be handled. The merits of a formal organizational structure are as follows:
1. Overall Effectiveness: Overall effectiveness is high because the delegation

of work and attainment of the organisational goals and objectives is well
defined.
2. Goal Attainment: The organization accomplishes what it sets out to
accomplish.
3. Profit Making: A favourable ‘bottom line” which is the main aim of an
organization is achieved.
4. Staying within Budget: Due to limited resources and guidelines for budgets
and spending the co is a lesser risk of running into losses.
5. Achieving New Goals: A successful organization emphasizes the attainment
of new and important goals.
6. Adaptability to change: A well structured organization has good problem
solving ability and capacity to change as per the need of the hour.
7. Stability: An organization that is able to maintain its basic charter and size
over time is considered to be stable.
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8. Quality: High quality of goods and services can be expected of well
structured organizations.
9. Growth: There is an increase in factors like work force, plant capacity,
assets, sales, profits, market share and no of innovations.
10.Managerial Skills: A well structured organization gives a lot of emphasis on
the quality and qualifications of the employees. Professionals/specialist is
employed to guide, perform and achieve the organizational goals and
objectives. Without competent managers the Co., will not able to survive.
11.Control: The management has a good control over the employees and also
inventory which is very essential for the smooth functioning of an
organization.
12.Proper management of conflict: An organization may require some conflict
to be effective, but too much conflict detracts from effectiveness. In an
organized structure people conform to the same code of conduct and
conflict is usually held in check.
13.Participation in decision making: The employees are sometimes given a
chance to participate in decisions pertaining to them. This also boosts them
and keeps them motivated. It gives them a sense of belonging and a sense
of loyalty to the Co.
14.Absenteeism: Since the employees are highly motivated problems like
absenteeism etc are minimum.
15.Job satisfaction: The job satisfaction is very high among employees. It
induces high morale which in turn leads to high productivity.
16.Training and Development of employees: Helps in the up gradation and
development of the employee and gives him an opportunity to grow within
the organization.
Q5. What are the objectives of “Performance Appraisal System” What are sources of
error in the appraisal process.
Ans. 5. Performance appraisal is a method of evaluating the behaviour of employees in the work
Performance refers to the degree of accomplishment of the tasks that make up an individual’s job.
It indicates how ell an individual is fulfilling the job demands.
appraisal and type and level of employees Performance Appraisal is a method of evaluating the
behaviour of employees in the workplace.
Objectives of Performance Appraisal System:
1. To create and maintain a satisfactory level of performance.

2. To contribute to the employee growth and development through training, self and management
development programmes. Tata Power aims at employee development through performance
appraisal.
3. To help the superiors to have a proper understanding about their subordinates
4. to guide the job changes with the help to continuous ranking
5. To facilitate fair and equitable compensation based on performance.
6. To facilitate for testing and validating selection tests, interview techniques through comparing
their scores with performance appraisal ranks.
7. to prove information for making decisions regarding lay off, retrenchment etc as in the case of
Hyundai Engineering
HYUNDAI 1,00O JOBS TO GO CUT

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In an attempt to counter continuing employee low performance and business troubles, Hyundai
engineering and Construction announced its decision to lay –off employees and cut 1000 jobs.
Sources of Error in Performance Appraisal:
1. Rating Biases: It is a subjective measure of rating performance which is not verifiable by

others and has the opportunity for bias. There rater biases include: a) the halo effect b)
the error of central tendency c) the leniency and strictness biases d) personal prejudice
and e) the recency effect.
a. Halo Effect: it is the tendency of the raters to depend excessively on the rating of
one trait or behaviourial consideration in rating all other traits or behavioural
considerations. One way of minimizing the halo effect is appraising all employees by
one trait before going to rate them on the basis of another trait.
b. The Error of Central Tendency: Some raters follow play safe policy in rating by
rating all the employees around the middle point of the rating scale and they avoid
rating the people at both the extremes scale. They follow play safe policy because
of answerability to the management or lack of knowledge about the job and person
he is rating or has least interest in the job.
c. The Leniency and Strictness: the leniency bias crops when some raters have a
tendency to be liberal in their rating by assigning higher rates consistently. Such
ratings do not serve any purpose. Equally damaging is assigning consistently low
rates.
d. Personal Prejudice: If the rater dislikes any employee or any group, he may rate
them at the lower end, which may distort the rating purpose and affect the career
of these employees.
e. The Recency Effect: The raters generally remember the recent actions of the
employee at the time of rating them on the basis of these recent actions
favourable or unfavourable-rather than on the whole activities.
Q6. How would you evaluate a training programme? Does its evaluation have any
bearing on its design?
Ans. 6. The specification of values forms a basis of evaluation. The process of training evaluation
has been defined as “any attempt to obtain information on the effects of training performance
and to access the value of training in the light of that information. The various methods of
training evaluation are:
1. Immediate assessment of trainee’s reaction to the programme.
2. Trainee’s observation during the training programme.
3. Knowing trainees expectations before the training programme and collecting their views
regarding the attainment of the expectations after the training
4. Seeking opinion of the trainee’s superior regarding his/her job performance and behaviour
before and after training.
5. Evaluation of trainee’s skill level before and after the training programme.
6. Measurement of improvement in trainees on the job behaviour.
7. Examination of the testing system before and after sometime of the training programme.
8. Measurement of trainee’s attitudes after training programme.
9. Cost-benefits analysis of the training programme.
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10.Seeking opinion of trainee’s colleagues regarding his/her job performance and behaviour.
11.Measurement of levels in absenteeism, turnover, wastage/scrap, accidents, breakage of
the machinery during pre and post period of the training programme.
12.Seeking opinions of trainees subordinates regarding his/her job performance and
behaviour
The Evaluation of a Training has bearing on its Design. It should be well defined in
meeting specific objectives. The nomination of employees should be based on the need of
training. The trainers should be qualified and experienced. The training calendar should be
discussed with the manager. Training needs should be identified through job description,
performance appraisal and potential appraisal discussions.
1. Reaction: The design of the training depends on the trainee’s reaction to the usefulness
of coverage of the matter, depth of the course content, method of presentation, teaching
methods etc.
2. Learning : Training programme, trainers ability and trainee ability are evaluated on the
basis of quantity of content learned and time in which it is learned and the learners ability
to use or apply the content he learned. All these factors depend on the Training Design.
3. Job Behaviour : The training design helps in identifying the manner and extent to which
the trainee has applied his learning to his job.
4. Organisation : The training design helps in measuring the use of training, learning and
change in the job behaviour of the department/organization in the form of increased
productivity, quality, morale, sales turnover and the like.
5. Ultimate Value: It is the measurement of the ultimate result of the contributions of the
training programme to the Company goals like survival, growth, profitability etc. and to
the individual goals like development of personality and social goals like maximizing social
benefits.
Q7. Discuss the methods of reliability. How is reliability of “interview” as a selection

instrument found?”
Ans 7. Selection is a process of selecting the right candidate for the right job. It is about
collecting information about the candidate’s qualifications, experience, physical and mental
ability, nature and behaviour, knowledge, aptitude etc for judging whether a given applicant is
suitable or not for the job. The test of reliability in the selection process can be carried out
through various methods as discussed below:
1. Written Examination: The organization have to conduct written examination for the
qualified candidates after they are screened on the basis of the application blanks so as to
measure the candidate’s ability in arithmetical calculations, to know the candidates
attitude towards the job, to measure the candidates aptitude, reasoning, knowledge in
various disciplines, general knowledge and English language.
2. Preliminary Interview: The preliminary interview is to solicit necessary information from

the prospective applicants and to assess the applicant’s suitability to the job. The
information provided by the candidate may be related to the job or personal specifications
regarding education, experience, salary expected aptitude towards the job, age physical
appearance and other physical requirements etc. Thus preliminary interview is useful as a
process of eliminating the undesirable candidates. If a candidate satisfies the job
requirement regarding most of the arrears he may be selected for further process.
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Preliminary interviews are short and known as stand-up interviews or sizing up of the
applicants or screening interview. This interview is also useful to provide the basis
information about the company to the candidate.
3. Business Games: Business games are widely used as a selection technique for selecting
management trainees, executive trainees and managerial personnel at junior, middle and
top management positions. Business games help to evaluate the applicants in the areas of
decision making, identifying the potentialities, handling the situations, problem-solving
skills, human relations skills etc. Participants are placed in a hypothetical work situation
and are required to play the role situations in the game.
4. Group Discussions: The technique of group discussion is used in order to secure further
information regarding the suitability of the candidate for the job. Group discussion is a
method where groups of the successful applicants are brought around a conference table
and are asked to discuss either a case study or a subject matter. The candidates in the
group are required to analyze, discuss, find alternative solutions and select the sound
solution. A selection panel then observes the candidates in the areas of initiating the
discussion, explaining the problem, soliciting unrevealing information based on the given
information and using common sense, keenly observing the discussion of others, clarifying
controversial issues, influencing others, speaking effectively, concealing and mediating
arguments among the participants and summarizing or concluding aptly. The selection
panel, based on its observations, judges the candidates skills and ability and ranks them
according to their merit.
BUSINESS GAMES AND THEIR UTILITY IN THE SELECTION PROCESS

Business Games Utility
(1) Case Study Analytical, judgmental and decision-making skills
(2) Role Play Human relations skills.
(3) In-basket method Situational judgment, social relations, decision-making
skills, problem-solving skills.
(4) Sensitivity Degree of openness, concern for others, tolerance for
individual differences.
(5) Simulations Encountering skills.
5. Test: Psychological tests play a vital role in employee selection. A psychological test is
essentially an objective and standardized measure of sample of behaviour from which
inferences about future behaviour and performance of the candidate can be drawn.
Types of Test
1. Aptitude Tests:
(a) Intelligence Test (IQ) (b) Emotional Quotient
(c) Skill Tests (d) Mechanical Aptitude
(e) Psychomotor Tests (f) Clerical Aptitude Tests
2. Achievement Tests:
(a) Job Knowledge Test (b) Work Sample Test
3. Situational Tests:
(a) Group Discussion (b) In Basket
4. Interest Test
5. Personality Tests:
(a) Objective Tests (b) Projective Tests
6. Multi-Dimensional Testing
Eg.: Multi-Skilling : Multi-Dimensional Testing : L&G has realised that most of the company
operations whether they are production or marketing or finance or human resources can be done
by almost all the employees. Experts are needed only in rare cases. Infact, services of the
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experts can be outsourced. As such, L&G started selecting the candidates with multi-skills and
who can perform a variety of functions. L&G developed multi-dimensional testing.
Reliability of Interview: This is the most essential step in the process of selection. In this step,
the interviewer matches the information obtained about the candidate through various means to
the job requirements and to the information obtained through his own observation during the
interview.
Types of Interview: The types of Employment interviews are:

1. Preliminary Interview
(a) Informal Interview

This is the interview which can be conducted at any place by any person to secure the basic
and non-job related information. It is the interaction between the candidate and the
personal manager when the former meets the latter to enquire about the vacancies or
additional particulars in connection with the employment advertisement etc.
(b) Unstructured Interview

In this interview the candidate is given freedom to tell all about himself by revealing his
knowledge on various items/arrears, his background, expectations, interest etc. The
interviewer also may answer some information required by the candidate.
2. Core Interview: It is normally the interaction between the candidate and the line
executive or experts on various areas of job knowledge, skill, talent etc.
(a) Background information interview

This interview is intended to collect the information which is not available in the application
blank and to check that information provided in the application blank regarding education,
place of domicile, family, health, likes, dislikes and extra curricular activities of the
applicant.
(b) Job and probing interview

This interview aims at testing the candidate’s job knowledge about duties, activities,
methods of doing the job, critical/problematic areas, and methods of handling those areas.
(c) Stress interview

This interview aims at testing the candidate’s job behaviour and level of withstanding
during the period of stress and strain. The interviewer tests the candidate by putting him
under stress and strain by interrupting the applicant from answering, criticizing his
opinions, asking questions pertaining to unrelated areas etc. Stress during the middle
portion of the interview gives effective results.
(d) Group discussion interview

There are two methods of conducting group discussion interviews viz group interview
method and discussion method. This type of interview helps the interviewer in appraising
certain skills of the candidates like initiative; inter personal skills, dynamism, presentation,
leading, comprehension, collaboration etc.
(e) Formal and structured interview

In this type of interview, all the formalities, procedures like fixing the value, time, panel of
interviewers, opening and closing, intimating the candidates officially etc. are strictly
followed in arranging and conducting the interview. The course of the interview is pre-
planned and structured, in advance depending on job requirements. The questions for
discussion are structured and experts are allotted different areas and questions to be
asked.
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(f) Panel interview
A panel of experts interviews each candidate, judges his performance individually and
prepares consolidated judgement. This type of interview is known as panel interview.
(g) Depth interview

The candidate is examined extensively in core areas of job skills and knowledge. Experts
test the candidate’s knowledge in depth. Depth interviews are conducted for specialized
jobs.
(h) On Line Interview: Information technology brought significant developments in the

selection process of employees. The vital development is on-line interview where the
interview is conducted online. These techniques include, on-line submission, internet based
recruiting, outsourcing employment function, sophisticated scanning and searching.
3. Decision-Making Interview
After the candidates are examined by the experts including the line managers of the
organization in the core areas of the job, the head of the department/section concerned
interviews the candidate once again, mostly through informal discussion. The interviewer
examines the interest of the candidate in the job, organization, reaction/adaptability to the
working conditions, career planning, promotional opportunities, work adjustment and
allotment etc. The Personnel Manager also interviews the candidates with a view to find out
his reaction/acceptance regarding salary, allowances, benefits, promotions, opportunities
etc.
During various types of interviews depending on the job requirement the interviewer can see and
analyse the strengths, weaknesses and potentials of the candidate. Whether he is suitable for
the job, whether he is the right candidate. Various types of interviews help the interviewer to
arrive at different conclusion. Eg. A Stress Interview helps to analyse whether a candidate can
perform under stress and pressure and whether he can take a right decision at such times. Most
of the organizations have realized recently that the employees’ positive attitude contribute much
rather than employees skills and knowledge. Employees with positive attribute contribute much
to the organization. Hence the interviewers look for the candidates with the right attitude while
making final decisions.
Attitude Counts Much, but not the Skill
InfoTech Limited discovered that the employees with right attitude take up the activities willingly
on their own. They acquire the necessary skills, if they do not possess them. They never say ‘no’
to other employees, superiors and customers. Hence the interviewers with right and or positive
attitude, irrespective of their technical al skills and knowledge.
Q 8.Write short notes on any three of the following :-

a) Job Rotation b) Multi Skilling c) Job Evaluation
d) Managing Change e) Resolving Conflict
Ans 8a. Job Rotation: Job rotation refers to the movement of an employee from one job to the
other. Jobs themselves are not actually changed, only the employees are rotated among various
jobs. An employee who works on a routine/respective job moves to and works on another job for
some hours/days/months and backs up to the first job. This measure relieves the employee from
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boredom and monotony, improves employee’s skills regarding various jobs, prepares the
competent employees and provides competitive advantages to the company. These measures
also improve worker’s self-image and provide personal growth. However, frequent job rotations
are not advisable in view of their negative impact on the organisation and the employee.
b. Multi Skilling : The transferring of executives from job to job and from department to
department in a systematic manner is called Job Rotation. When a manger is posted to a new
job as part of such a programme, it is not merely an orientation assignment. He has to assume
the full responsibility and perform all kinds of duties. The ideal behind this is to give him the
required diversified skills and a broader outlook which are very important at the senior
management levels. It is upto the management to provide a variety of job experiences for those
who have the potential for higher ranks before they are promoted. Job rotation increases the
inter-departmental co-operation and reduces the monotony of work. It makes the executives in
general management and does not allow them to confine themselves to their specialised field
only.
c. Job Evaluation : Job evaluation deals with money and work. It determines the relative
worth or money value of jobs. The International Labour Organisation defined job evaluation as
“an attempt to determine and compare demands which the normal performance of a particular
job makes on normal workers without taking into account the individual abilities or performance
of the workers concerned”. Wendell L. French defined job evaluation as “a process of
determining the relative worth of the various job within the organisation, so that different wages
may be paid to jobs of different worth”. Job evaluation is defined as “the overall activity of
involving an orderly, systematic method and procedure of ranking, grading and weighing of jobs
to determine the value of a specific job in relation to other jobs”. British Institute of Management
(1970) defined job evaluation as, “the process of analysing and assessing the content of jobs, in
order to place them in an acceptable rank order which can then be used as a basis for a
remuneration system. Job evaluation, therefore, is simply a technique designed to assist in the
development of new pay structures by defining relatives between jobs on a consistent and
systematic basis”. Thus, job evaluation may be defined as a process of determining the relative
worth of jobs, ranking and grading them by comparing the duties, responsibilities like skill,
knowledge of a job with other jobs with a view to fix compensation payable to the concerned job
holder.
d. Managing Change : The term ‘Organisational Change’ implies the creation of imbalances in
the existent pattern or situation. Adjustment among people, technology and structural set up is
established when an organisation operates for a long time. People adjust with their jobs, working
conditions, colleagues, superiors etc. Similarly, an organisation establishes relationship in the
external environment. Change requires individuals and organisations to make new adjustments.
Complexity and fear of adjustment gives rise to resistance and problem of change. Human
resource is an important factor in relation to the adjustments among individuals as well as
between the organisation and environment, as an organisation is mostly composed of people.
Individual members can resist either individually or in a group. Change could be both reactive
and proactive. A proactive change has necessarily to be planned to attempt to prepare for
anticipated future challenges. A reactive change may be an automatic response or a planned
response to change taking place in the environment.
e. Resolving Conflict : The methods of resolving conflicts generally include:
Methods of Resolving Conflicts

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InvestigationMediation Conciliation Voluntary Arbitration Compulsory
Arbitration/Adjunction
1. Investigation: This is conducted by a board or court appointed by the government. It may

be voluntary or compulsory. If the investigation is conducted on an application by either or
both the parties to the dispute it is voluntary. If the Government appoints a Court of
Inquiry without the consent of the parties it is compulsory. Investigations analyse the facts
and aim at an amicable solution. When the investigation is compulsory, the strikes and
lockouts are required to be stopped and employers should not make any change in the
conditions of employment.
2. Mediation: Another attempt to settle disputes is Mediation. In this method, an outsider

assists the parties in their negotiations. It takes place with the consent of both the parties.
The main aim of mediator is the settlement of disputes by bringing about a voluntary
agreement. There may be three kinds of mediation:
a. The Eminent Outsider
b. Non-Government Board and
c. Semi Government Board.
If mediation is conducted skillfully and sympathetically then it can bring about the
adjustments of differences that might otherwise contribute to stoppage of work.
3. Conciliation: The main objective of a conciliation and arbitration is to reunite the two
conflicting groups in the industry in order to avoid interruption of production, distrust etc.
Conciliation is a process by which representatives of both workers and employers are
brought together before a third party with a view to persuading them to arrive at some
sort of settlement. It is an extension of collective bargaining with third party assistance.
Conciliation machinery consists of conciliation officer and board of conciliations. The
conciliator induces the parties to a course of action. He plays the role of an innovator,
protector, discussion leader, stimulator, advisor, face saver. He acts as a safety value and
a communication link. The task of conciliation is to offer advice and make suggestions to
the parties to the dispute on controversial issues.
4. Voluntary Arbitration: if the two parties to the dispute fail to come to an agreement,
either by themselves or with the help of a mediator or conciliator, who agrees to submit
the dispute to an impartial authority, whose decision, they are ready to accept. The
essential elements in voluntary arbitration are :
15) The voluntary submission of dispute to an arbitrator.
16) The subsequent attendance of witness and investigations and
17) The enforcement of an award may not be necessary
5. Compulsory Arbitration/Adjudication: Where trade unions are weak the method of

compulsory Arbitration is used. Compulsory Arbitration is utilized generally when the
parties fail to arrive at a settlement through the voluntary methods. It is at times
necessary and desirable. The objective of state intervention in the field of industrial
relations should be to do social justice and make the weaker party equally strong to
enable it ultimately to stand and survive on its own and settle its differences through
negotiations and collective bargaining. Compulsory arbitration is one where the parties are
required to arbitrate without any willingness on their part. Any one of the parties may
apply to the appropriate governments to refer the dispute to adjudication machinery.
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marks
__________________________________________________________________________________________________
Q1. What is Personnel Policy? Describe the important personnel policies that affect
the job of a Personnel Manager.
Ans 1. A personnel policy is a plan of action, a set of proposals and actions that act as a
reference point for managers in their dealings with employees. Personnel policies
constitute guides to action. They furnish the general standards or bases on which
decisions are reached. Their genesis lies in an organization’s values, philosophy, concepts
and principles”. Personnel guide the course of action intended to accomplish personnel
objectives. A policy is a guideline for making wise decisions. It brings about stability in
making decisions. A policy is a stance, often a choice made between two or more
alternatives, such as the choice between promoting employees on than basis of merit
versus promoting them on the basis of seniority.
Example:
HRM Policy in Indian Railways
One of the personnel objectives of Indian Railways is to provide equal employment opportunities
to the people of minority sections. Personnel policy of Indian Railways relating to the above
objectives is to fill 15% and 7.5% of the vacancies from those candidates belonging to Scheduled
Castes and Scheduled Tribes respectively.
The Health & Safety Policy: The policy statement should be a declaration of the intention of the
employer the health and safety of his employees. It should emphasize four fundamental points
1. The safety of employees and the public is of paramount importance.
2. that safety will take precedence over expediency
3. that every effort will be made to involve all managers, supervisors and
employees in the development and implementation of health and safety
procedures
4. That health and safety legislation will be compiled within the spirit as well
as the letter of the law.
Recruitment Policy: In order to have consistency throughout an organization, it is necessary to

lay down certain principles as guidelines for both management and staff. The basic principle is
the organizations attitude towards filling vacancies, whether from within or outside. If the
organization is strongly unionized it is probable that a policy or promotion from within wherever
possible is agreed with the unions. It takes care of providing the right man for the right job at the
right time. Recruitment policy takes into consideration the government’s reservation policy,
policy regarding sons of the soil etc. Personnel policies regarding merit, internal sources, social
responsibility in absorbing minority sections, women etc.Recruitment policy commits itself to the
organizations personnel policy like enriching the organization’s human resources, motivating the
employees through internal promotions, improving the employee’s loyalty to the organization.
While formulating a recruitment policy the following factors should be taken care of by the
Personnel manager:
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1. Government Policies
2. Personnel policies of other competing organizations
3. Organization’s personnel policies
4. Recruitment sources
5. Recruitment needs
6. Recruitment cost
7. Selection criteria and preference
Working Conditions Policy: This policy deals with the hours of work, shift, holidays, and
retirement benefits.
Pay Allowances & deductions Policy: It defines the rules and eligibility for payment of different
allowances. It also states the heads of deductions applicable.
Leave Policy: The Leave policy defines the sickness rules, the leave allowed every year which
includes casual, special, earned, holiday leave. LTA payment etc. The Maternity Leave benefits
etc.
Work Rules Policy: It defines the work load, use of materials, equipment and machines.
Disciplinary Policy: This policy defines the code of conduct to be followed by every employee in
his workplace. It defines the business ethics that are expected to be followed by every employee.
It clearly states the consequences to for violating such rules.
Grievance Policy: It defines the procedure to be followed to address any grievance that an
employee may wish to address.
Social Benefit Policy: Most of the organizations have some social benefit scheme which is defined
under this policy.
Superannuation/Pension Policy: The employees need to be taken care after superannuation too.
The policy for the same and the procedure for availing pension are also defined.
Gratuity/PF Policy: The rules for gratuity are defined under this policy. It includes eligibility etc
and the maximum about that will be paid. In Pf it defines the process of availing loan/
withdrawing/transferring the PF as the case may be applicable.
Housing loan Policy: Some Co’s take care of their employees housing needs too. They give them
subsidiary in interest on housing etc. Or they provide them with a house too. The eligibility and
deduction of HRA etc., if the co.’ provides the house etc. is all defined.
Promotion Policy: This is one of the most important policies. A well defined promotion policy will
keep the employees motivated and achieve the Co’s goals for the betterment of the Co and self
too.
Transfer Policy: The guidelines for transfer etc are defined here. This policy becomes a very
important document of reference in banks etc where transfers are done on a frequent basis.
Q2. What is Manpower Planning? What factors do you consider while forecasting,
manpower needs of an organization?
Ans 2. Manpower planning means planning means deciding the number and type of the human
resources required for each job, unit and the total company for a particular future date in order
to carry out organizational activities. Manpower planning may be viewed as foreseeing the
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human resources requirement of an organization and the future supply of human resources and
(i) making necessary adjustments between these two and organizational plans and (ii) foreseeing
the possibility of developing the supply of manpower resources in order to match it with the
requirements by introducing necessary changes in the functions of human resources
management.
The important objectives of manpower in an organization are

1. to recruit and retain the manpower of required quality and quantity.
2. to foresee the employee turnover and make the arrangements for minimizing turnover
and filling up of consequent vacancies.
3. to meet the needs of the programmes of expansion, diversification etc.
4. to foresee the impact of technology on work, existing employees and future human
resource requirements.
5. to improve the standards, skill, knowledge, ability, discipline etc.
6. to assess the surplus or shortage of manpower and take measures accordingly.
7. to maintain congenial industrial relations by maintaining optimum level and structure
of human resources
8. to minimize the imbalances caused sue to non-availability of human resources of the
right kind, right number in right time and right place.
9. to make the best use of its human resources and
10. to estimate the cost of human resources.
Factors to be considered while forecasting, manpower needs of an organization.
- Analysing the corporate and unit level strategies.

accordance with the organisational plans.
of manpower and forecast the future changes in the human resources inventory.
- Estimating the net manpower requirement.
- In case of future surplus than plan for redeployment.
- In case of future deficit, forecast the future supply of manpower from all sources
with reference to plans of other companies.
than or equal to net manpower requirements.
- Plan to modify and adjust the organizational plan if future supply will be inadequate
- Degree of uncertainty and length of planning period.
The above points are discussed in details:
Demand Forecasting: The existing job design and analysis may thoroughly be reviewed
keeping in view the future capabilities, knowledge and skills of present employees. Further the
jobs should be redesigned and reanalyzed keeping in view the organizational and unit wise plans
and programmes, future work quantum, future activity or task analysis, future skills, values,
knowledge and capabilities of present employees and prospective employees. The jobs generally
should be designed and analysed reflecting the future human resources and based on future
organizational plans. Job analysis and forecast about the future components of human resources
facilitate demand forecasting. One of the important aspects of demand forecasting of the
quantity of human resources (skill, knowledge values, capabilities etc) in addition to quantity of
human resources. Important forecasting methods are:
1. Managerial Judgement: Under this method, managers decide the number of employees
required for future operations based on their past experience.
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2. Statistical Techniques Include: ratio trend analysis and econometric models. Under
ratio trend analysis, ratios are calculated for the past data and these ratios are used for
the estimation of the future manpower requirements For eg.
- Present level of production (1-1-2005) 2000 units

- Present number of foremen (1-1-2005) 5
- Ratio is 2000/4 500
- Estimated production as on (1-1-2005) 5000 units
- Foreman required as on (1-1-2005) 5000/500 = 10
Econometric models for manpower planning are built up by analyzing the past
statistical data and by bringing the relationship among variables.
3. Work Study Techniques: Under this method, total production and activities in terms of
clear units are estimated in a year. Then man-hours required to produce each unit is
calculated, Later the required number of employees is calculated. For eg.
- Planned operations during 2005 = 1,60,000 units

- Standard man-hours needed to perform each unit in 2005 = 0.25
- Planned man-hours needed per year in 2005 = 40,000
- Work ability per employee in man-hours in 2005 = 2,000
- Number of employees required in 2005 = 40000/20000=20
Supply Forecasting
The first step of forecasting the future supply of human resources is to obtain the data and
information about the present human resources inventory.
Existing Inventory: The data relating to present human resources inventory in terms of
humans components, number, designation-wise and department wise would be obtained.
Principal dimensions of manpower planning are:
1. Head counts regarding total, department wise, sex-wise, designation-wise, skill-wise, pay
roll wise etc.
2. Job Family Inventory : It includes number and category of employees of each job family i.e.
all jobs related to the same category like clerks, cashiers, sub job family i.e. all jobs having
common job characteristics (skill, qualification, similar operations) like production
engineer (mechanical) and maintenance engineer (mechanical) and broad families like
general administration, production etc.
3. Age Inventory: It includes age-wise number and category of employees. It indicates age
wise imbalances in present inventory which can be correlated in future selections and
promotions.
Existing inventory at a future date is calculated as follows:
Existing inventory at = Present Inventory + Potential additions - Potential Losses

A future date as on today
Estimating the Net Man Power Requirements: Net manpower requirements in terns of
number and components are to be determined in relation to the overall man power
requirements for a future date and supply forecast for that date. The difference between
overall manpower and future supply of manpower is to be found out. The difference is the net
manpower requirement.
Action Plan for Redeployment, Redundancy/Retrenchment: If future surplus is

estimated, the organization has to plan for redeployment, redundancy etc. If surplus is
estimated in some jobs/departments, employees can be redeployed in other jobs/departments
where the deficit of employees is estimated. The organization should also plan for training or
4
re-orientation before redeployment of employees. Redeployment takes place in the form of
transfers. If the deficit is not estimated in any job/department and surplus is estimated for the
entire organization, the organization, in consultation with the trade unions has to plan for
redundancy or retrenchment.
Recruitment and Selection Plan : Recruitment and selection plan covers the number and
type of employees required, when they are required for the job, time necessary for recruitment
and selection process, recruitment sources, recruitment techniques to be used, selection
procedure to be adopted and selection techniques to be used to subsequently recruiting the
required candidates. It also covers the time factor for induction, preliminary training and
placement.
Q.3. What is Job Design? How is it different from Job Analysis? Explain with suitable
examples.
Ans 3. Job design is defined as the process of deciding on the content of a job in terms of
duties, responsibilities of job holders; on the methods to be used in carrying out the job, in
terms of techniques, systems and procedures and on the relationships that should exist
between the job holder and his superiors, subordinates and colleagues. Factors affecting job
design include: organizational factors, environmental factors and behavioural factors. Two
important goals to job design are to meet the organizational requirements such as higher
productivity, operational efficiency, quality of product/services etc. and to satisfy the needs of
individual employees like interests, challenges, achievement or accomplishment etc. Finally the
goal of the job design is to integrate the needs of the individuals with the organizational
requirements. There are three important approaches to job design viz 1) engineering approach
2) human approach and 3) job characteristics approach.
Job Analysis is the process of determining, by observation and study and reporting pertinent
information relating to the nature of a specific job. It is the determination of the tasks which
comprise the job and of skills, knowledge, abilities and responsibilities required of the worker of
a successful performance and which differentiate one job from all others.
Job Design Job Analysis

It has an engineering approach which studies the Description of Work activties, like how is a
work scientifically, and is based on scientific task performed? Why is a task performed?
management principles. These principles seem to When is a task performed?
be quite rational and appealing as they point
towards increased organizational performance.
It has a human relations approach and recognizes Interface with other jobs and equipments
the need to design the jobs which are interesting
and rewarding.
It has a job characteristics approach which Procedures used. Analysis of Behaviours
assumes that employees will work hard when they required on the job. Physical movements and
are rewarded for the work they do and when the demands required to perform the job.
work gives them satisfaction. Motivation,
satisfaction and performance should be integrated
in the job design. Jobs with skill variety, task
identity, task significance, autonomy and feedback
are called core job dimensions.
The goal of job design is to integrate the needs of List of Machine Tools, Equipment and Work
the individual with the organization requirements. Aids used.
Unlike job analyses which aims at studying the
nature of the job etc.
4
Job Design has options like Job Rotation, Job Job Context. Physical working conditions.
enlargement, Job bandwidth, Job enrichment. Whether exposed to heat, dust, toxic
Within Job Bandwidth there is a narrow job design substances. Indoor versus outdoor
(multi layers, narrow authority and responsibility) environment Organisational context. Social
and Broad job design (job satisfaction due to context. Work schedule. Incentives (financial
variety of task, empowerment, horizontal re- and non financial)
enforces and high productivity).
Personnel Requirements: Specific skills,
specific education and training. Work
experience. Physical characteristics. Aptitude.
Q. 4. What are the modern sources and techniques of Recruitment?
Ans 4. The modern sources of Recruitment are:
concerned.
3 Private Employment Agencies/Consultants: Public employment agencies or

consultants like ABC Consultants in India perform recruitment functions on behalf of a client
company by charging fees. Line managers are relieved from recruitment functions and can
concentrate on operational activities.
4 Public Employment Exchanges: The Government set up Public Employment Exchanges

organization in finding out suitable candidates. As per the Employment Exchange act 1959,
makes it obligatory for public sector and private sector enterprises in India to fill certain types
of vacancies through public employment exchanges.

6 Data Banks: The management can collect the bio-data of the candidates from different
sources like Employment Exchange, Educational Training Institutes, candidates etc and feed
them in the computer. It will become another source and the co can get the particulars as and
when required.
7 Casual Applicants: Depending on the image of the organization its prompt response
apply casually for jobs through mail or handover the application in the Personnel dept. This
would be a suitable source for temporary and lower level jobs.
8 Similar Organizations: Generally experienced candidates are available in organizations

4
change in employment put a word to the trade union leaders with a view to getting suitable
employment due to latter rapport with the management.
10.Walk In: The busy organization and rapid changing companies do not find time to perform
various functions of recruitment. Therefore they advise the potential candidates to attend for
an interview directly and without a prior application on a specified date, time and at a
specified place.
11.Consult In: the busy and dynamic companies encourage the potential job seekers to
suitable candidates and advise the company regarding the filling up of the positions. Head
hunters are also called search consultants.
12.Body Shopping: Professional organizations and the hi-tech training develop the pool of
organizations to recruit the candidates. Otherwise the organizations themselves approach the
prospective employers to place their human resources. These professional and training
institutions are called body shoppers and these activities are known as body shopping. The
body shopping is used mostly for computer professionals. Body shopping is also known as
employee leasing activity.
13.Mergers and Acquisitions: Business alliances like acquisitions, mergers and take over
help in getting human resources. In addition the companies do also alliances in sharing their
human resource on adhoc basis.
14.E_recruitment: The technological revolution in telecommunications helped the

vacancies through the world wide wed (www). The job seekers send their applications through
e-mail using the internet.
15.Outsourcing: Some organizations recently started developing human resource pool by

employing the candidates for them. These organizations do not utilize the human resources;
instead they supply HRs to various companies based on their needs on temporary or ad-hoc
basis.
Techniques of Recruitment:
Recruitment techniques are the means or media by which management contacts prospective
employees or provide necessary information or exchanges ideas in order to stimulate them to
apply for jobs. Management uses different types of techniques to stimulate internal and
external candidates.
Techniques of Recruitment are divided into two viz Traditional and Modern:
Traditional Techniques Modern Techniques

Promotions Scouting
Transfers Salary & Perks
Advertising ESOP’s
Traditional Techniques of Recruitment:
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1. Promotions: Most of the internal candidates would be stimulated to take up higher
responsibilities and express their willingness to be engaged in the higher level jobs if the
management gives them the assurance that they will be promoted to the next higher level.
2. Transfers: employees will be stimulated to work in the new sections or places if the
management wishes to transfer them to the places of their choice.
3. Advertising: Advertising is a widely accepted technique of recruitment, though it mostly
provides one way communication. It provides the candidates in different sources, the
information about the job and company and stimulates them to apply for jobs. It includes
advertising through different media like newspapers, magazines of all kind, television etc.
The technique of advertising should aim at attracting attention of the prospective
candidates ii) creating and maintaining interest and stimulating action by the candidates.
Management in order to achieve these objectives of advertising has to:

- Analyse job requirements
- Decide who does what
- Write the copy
- Design the advertisement
- Plan and select the media and
- Evaluate response.
Modern Techniques of Recruitment:

1. Scouting: Scouting means sending the representation of the organizations to various
sources of recruitment with a view to persuading or stimulating the candidates to apply for
jobs. The representatives provide information about the company and exchange
information and ideas and clarify the doubts of the candidates.
2. Salary and Perks: Companies stimulate the prospective candidates by offering higher level
salary, more perks, quick promotions etc.
3. ESOP’s: Companies recently started stimulating the employees by offering stock
ownership to the employees through their Employees Stock Ownership Programmes
(ESOPs)
ESOP AT ALCATEL
Alcatel, the first every global stock option programme has received the highest percentage of
subscriptions from India. 84% of the Indian employees have taken up the offer. The stock
option plan covered 50 countries and almost 60,000/- put of the total 1.2lakh employees
participated in the plan. Alcatel offered 2.25 million shares and 9 million stock options under
the programme. For each share subscribed, the employee had the right of four stock options
and they were allowed to invest upto one fourth of the gross annual salary. ESOP stimulated
may candidates to seek jobs in ALCATEL.
Q5. A situational combination of rewards and punishments can effectively motivate

men, Is the statement true or false. Explain.
And 5. This statement can be considered true as well as false depending on the situation and
also the leadership style that the Co., adopts to get the job done from its employees in the
most fruitful way. In some cases this situation will work and in some cases it may not. Hence as
a general statement it cannot be wholly considered true or wholly considered false. Every
human being needs to be motivated to work in a desired way and give a desired output.
4
Motivation is derived from the word Motive. Motive is an inner state that energizes, activates or
moves and directs or channels behaviour towards goals”.
Motivation represents an unsatisfied need which creates a state of tension or disequilibrium

causing the individual to move in a goal directed pattern towards restoring a state of
equilibrium by satisfying the need. It is a degree of readiness of an organization to pursue
some designated goal and implies the determination of the nature and locus of the forces,
including the degree of readiness.
The Basic Process of Motivation = Needs------------------Drives----------------------

Goals/Incentives
(Deficiency) Deficiency with Direction Reduction of
drives & fulfils
deficiencies.
To understand the relationship of rewards and punishments tactic used to motivate men one
must understand the Objective of motivation. It is a bare fact that most of us use only a small
portion of our mental and physical abilities. To exploit the unused potential in people they are
to be motivated. Such exploitation leads to greater efficiency, higher production and better
standards of living of the people. To achieve this un tapped potential one must either use the
rewards or punishment way to achieve the desired goals.
Types of motivation: There are two ways by which people can be motivated. One is a positive
approach or pull mechanism which can be considered as a reward approach and the second is
a negative approach or push mechanism which can be considered as punishment tactic.
Positive Motivation (Reward): People are said to be motivated positively when they are
shown a reward and the way to achieve it. Such a reward way may be financial or non-financial.
Monetary motivation may include different incentives, wage plans, productive bonus schemes
etc. Non-monetary motivation may include praise for work, participation in management, social
recognition etc. Monetary incentives provide the worker a better standard of life while non-
monetary incentives satisfy the ego of a man. Positive motivation seeks to create an optimistic
atmosphere in the enterprise. Human beings also have an inherent desire to prosper, and be
financially strong. To achieve this psychological need an employee would work hard to achieve
desired goals and in such a case the Reward mechanism will work to motivate him and prove
an efficient worker.
Negative Motivation (Punishment): By installing fear in the minds of people, one can get
the desired work done. In this method of motivation, fear of consequences of doing something
or not doing something keeps the worker in the desired direction. This method has got several
limitations. Fear creates frustration, a hostile state of mind and an unfavorable attitude towards
the job which hinders efficiency and productivity. So the use of it should be kept minimum. It
may work in a small organization but it is a very risky strategy to adopt in a unionized firm.
In short a combination of rewards and punishment is not the only way to effectively motivate
an employee. An employee responds very well only if rewards are seen. He may be
demotivated when punishment is used. It he is fearless, and a trouble maker and have a
backing by the union he may not fear any punishment. He may influence the others who are
afraid of the punishment not to perform. In such a situational there will be difference of opinion,
industrial dispute, and unrest at the work place. In such a situation meeting deadline and goals
of the Co., will go in the background.
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Q.6. 360 degrees Performance Appraisal mostly can do away with biased approach
while assessing an employee. Do you agree with the above statement. Give your
views.
Ands 6. Yes, it is true that 360 degrees of Performance Appraisal can do away with biased
approach while assessing an employee. The appraiser may be any person who has thorough
knowledge about the job content, contents to be appraised, standards of contents and who
observes the employee while performing a job. The appraiser should be capable of determining
what is more important and what is relatively less important. He should prepare reports and
make judgements without bias. Typical appraisers are supervisors, peers, subordinates,
employees themselves, user of service and customers. Performance appraisal by all these
parties is called 360 degree performance appraisal. Pond’s, General Electric, Hindustan Lever
Limited. Grasim, Colgate – Palmolive, Hewett Packard, practice 360 degree performance
appraisal. Appraisal is an appraisal which is an appraisal which is an unbiased way of appraisal
and is conducted.
Examples of Performance
Appraisal
Xerox Provide a core set of metrics for use across the
organization.
Toyota Focus performance reviews on goals rather than number to
ensure employee alignment.
Federal Express Daily Performance Measurement Reporting.
Fed Ex Design a Balanced Scorecard performance measurement
system.
Here the performance appraisal is not just done across the table. In this technique the
employee is observed while performing a job. A report is done by the appraiser based on what
he has observed. These are facts that cannot be disputed by either the appraiser or employee.
This kind of appraisal is more performance and result based. There is no room for manipulation
of performance on paper by the appraiser. Hence the appraiser cannot be biased or favour the
employee he wishes too. Secondly it involves the opinion of other too, like peers, other
employees, the employee himself etc. It is not the report of just one person who could be
biased otherwise.
The whole process of a 360 degree appraisal is discussed as under:
Supervisors: Supervisors include superiors of the employee, other superiors having

knowledge about the work of the employee and department head or manager. General practice
is that immediate superior appraises the performance which in turn is reviewed by the
departmental head/manager.
Peers: Peer appraisal may be reliable if the work group is stable over a reasonably long period
of time and performs tasks that require interaction. However, little research has been
conducted to determine how peers establish standards for evaluating others or the overall
effect of peer appraisal on the group’s attitude.
Subordinates: The concept of having superiors rated by subordinates is being used in most
organizations today, especially in developed countries. Such a novel method can be useful in
other organizational settings too provided the relationships between superiors and
subordinates are cordial.
Self Appraisal: If individuals understand the objectives they are expected to achieve and the
standards by which they are to be evaluated, they are to a great extend in the best position to
appraise their own performance. Also since employee’s development means self development,
4
employees who appraise their own performance may become highly motivated. Thermax,
escorts, Wipro etc implement self appraisal.
Users of Services/Customers: Employee performance in service organizations relating to

behaviours, promptness, speed in doing the job and accuracy can be better judged by the
customer or users of services. For eg. Teacher’s performance is better judged by students and
performance of a doctor is judged by patients.
Consultants: Sometimes consultants may be engaged for appraisal when employees or

employers do not trust supervisor appraisal and the management does not trust self appraisal,
peer appraisal or subordinate appraisal. In this situation, consultants are trained and they
observe the employee at work for a sufficiently long time for the purpose of appraisal.
Q7. For internal mobility Management Development Programme is a must.

Comment.
Ans 7. Management development is a systematic process of growth and development by which

the managers develop their abilities to manage. So it is the result of not only participation in
formal courses of instruction but also of actual job experience. It is concerned with improving
the performance of the manager by giving them opportunities for growth and development,
which in turn depends on organization structure of the company. The role of the company in
management development is to establish the programme and develop opportunities for its
present and potential managers.
Management development concept works on a technique that help develop the Manager and
hence helps in internal mobility. It makes a manager helps a manager to think differently and
take wise decisions. The Management Development Programme is designed with a view to
achieving specific objectives which are very essential for internal mobility in an organization.
The need can be defined as under:
1. It overhauls the management machinery.

2. It improves the performance of the manager.
3. It gives the specialists an overall view of the functions of an organization and equips them
to co-ordinate each others efforts effectively.
4. It increases the morale of the members of the management group.
5. It increases versatility of the management group.
6. It keeps the executives abreast with the changes and developments in their respective
fields.
7. It creates the management succession which can take over in case of contingencies.
8. It improves the thought process and analytical ability.
9. It broadens the outlook of the executives regarding his role position and responsibilities.
10.It helps to understand the conceptual issues relating to economic, social and technical
rears.
11.it helps understand the problems of human relations and improve human relation skills and
12.It stimulates creative thinking.
The need for Management Development for internal mobility arises due to the following reasons:
1. Techno managers like basic chemical engineers, mechanical engineers,

information/systems engineers need to be developed in the arrears of managerial
skills, knowledge and abilities.
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2. Professionalisation of management at all levels particularly in service organizations
need the development of managerial skills and knowledge particularly at lower and
middle levels.
3. The need for management development arises due to providing technical skills and
conceptual skills to non technical managers and managerial skills and conceptual skills
to technical managers.
4. The emergence of new concepts in management like Total Quality Management (TQM),
Enterprise Resource Planning, Business Process Re-engineering, Empowerment etc.
necessitates the management to offer developmental programmes.
5. Entry of multinational and transnational corporations brought new trends and
strategies for the domestic companies also. These factors necessitated the domestic
companies to undertake developmental programmes.
There are mainly two types of methods by which managers can acquire the knowledge, skills and
attitudes and make themselves competent managers. One is through formal training and the
other is through on job experiences. This is very essential because a manager will learn the
processes that take place for different jobs. He may specialize in one subject but to have an idea
of how things are in another area of specialization is the intention of MDP.
Some of the Job techniques that facilitate internal mobility are:
The important on the job techniques are coaching, job rotation, under study and multiple
management.
Technique Suitability
Job Rotation This is particularly useful in development of diversified skills and to give
executives a broader outlook, which are very important to the upper
management levels.
Understudy An understudy is normally chosen with forethought of making available to
the organization a subordinate who is equal to his superior in the event of
retirement, illness or death of the superior. The subordinate will be able to
take over his position and manage as effectively as his boss could.
Multiple This technique is mainly useful in bringing the managers out of their
Management narrow shells and helps them gain a broader outlook and knowledge in
different functional areas.
Case Study In the development of executive and analytical and decision making skills,
this technique is used.
Incident Method The technique improves one’s intellectual ability, practical judgment and
social awareness.
Role Playing Role playing helps executives in understanding people better by giving
them vicarious experiences.
In Basket Situational judgment and social sensitivity are the two important qualities
that can be developed with the help of this method.
Business Games This technique is used in order to develop organizational ability, quickness
of thinking and leadership.
Sensitivity Training This helps one know more about himself and the impact of his behaviour
on others, which are important to manage people better.
Simulation Problem solving through decision-making can be developed quite well
with the help of simulation.
Managerial Grid To develop leadership qualities in executives over a long period of time.
Conferences The most difficult thing for any one is to change his own attitude. This
technique develops the ability of the executives to modify their attitudes,
when needed in the interest of the organization.
Lectures This is the best technique to give more knowledge in a short period of
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time to a large number of participants.
With the above, it is very clear that Management Development Programme is just inevitable and
has to be conducted to facilitate internal mobility.
Q.8. Write short notes on any three of the following.

a) Probationary period b) Sons of soil theory in recruitment
c) Appraisal by Peers d) Career Development e) Maslows theory of
needs
a) Probationary Period: Probation period is a time when an employee is employed in the

organization with the intention of becoming permanent but subject to his performance during
the probation period. During this period he is not entitled to the benefits that a permanent
employee enjoys. The probation period is a period where the employee and employee get a
chance to review the suitability to the organization. The period is usually 6 months to 1 year.
During this period the employee’s performance is reviewed and his superior updates him if he
is not in line with the company’s expectation. If he needs to improve in any area than he is
informed to do so before the probationary period is over. This would thus help him in getting
a permanent placement in the organization. Every permanent employee is a liability to the
organization. There are many facilities, statutory dues etc., that the Co., needs to comply
towards a permanent employee. So every employer prefers to review an employee during the
probation period before he brings him on permanent roll. If the performance of the employee
is not satisfactory the employer may not employ him in his organization. In case of a
permanent employee it is not easy for the employer to throw him out of the Co., if he is not
satisfied with his performance.
b) Sons of the soil theory in Recruitment: The sons of the soil theory basically mean the
locals should be given a chance to work for a Co; that is set up in their area of residence or
the state that they belong too. The Co’s today are going to remote places for cheaper land
and setting up their businesses in remote arrears. In such cases the locals seek for
employment. The advantage is that cheap labour is available to the Co., compared to getting
its own people and paying them higher salaries and giving them additional facilities to work
at a place away from their regular set-up (residence). However in son of the soil there is a
great disadvantage. The locals may not be as educated and skillful as the job requirement. In
such case the Co., may not get the desired output even if they give them training etc. But in
certain places it is not easy to set up a Co., without the local support and hence the Co., is
forced to cater to the sons of the soil theory in recruitment.
c) Appraisal by Peers: It is performance appraisal used in a 360 degree performance

appraisal. The appraisal is done by the Peer group of the employee to be appraised. Peer
appraisal may be reliable if the work group is stable over a reasonably long period of time and
performs tasks that require interaction. However, little research has been conducted to
determine how peers establish standards for evaluating others or the overall effect of peer
appraisal on the group’s attitude.
d) Career Development: Career development is those personal improvements one undertakes

to achieve a personal career plan. Career development has four steps. They are 1. Needs-
defining the present system 2. Vision-determining new directions and possibilities 3. Action
plan-deciding on practical first steps and results – maintaining the change.
Needs: This step involves in the conducting of needs assessment as a training programme.
Vision: The needs of the career system must be linked with the interventions. An ideal
development system known as the vision links the needs with the interventions.
4
Action Plan: An action plan should be formulated in order to achieve the vision. The support of
the top management should be obtained in this process.
Results: Career development programme should be integrated with the organization’s on-going
employee training and management development programmes. The programme should
be evaluated from time to time in order to revise the programme.
e) Maslows Theory of Needs. According to Maslow, human needs form a hierarchy, staring at
the bottom with the physiological needs and ascending to the highest need of self
actualization. He says when one set of needs is satisfied; they no longer work as motivators
as a man seeks to satisfy the next higher level of needs.
__________________________________________________
__________________________________________________
Physiological Needs
__________________________________________________
Esteem Needs
__________________________________________________
Social Needs -Affiliation or
Acceptance Needs
__________________________________________________
__________________________________________________
Physiological Needs
__________________________________________________
MASLOW”S HIERACHY OF NEED
==========================================
The Need Hierarchy:
Physiological Needs: These are the basic necessities of human life, food, water, warmth,
Security/Safety Needs: These refer to the need to be free of physical danger or the feeling of
loss of food, job or shelter. When the physiological needs are satisfied, man starts thinking
of the way by which he can satisfy his safety needs. Security needs spring up the moment
he makes an effort in the direction of providing himself the source of continuity of
physiological needs. In a work environment these needs include conformity, security
plans, membership in unions, severance pay etc.
Social Needs: (Affiliation or Acceptance Needs) When the physiological and security needs are
satisfied, these social needs begin occupying the mind of a man. This is exactly why he
looks for the association of other human beings and strives hard to be accepted by this
5
group. Social needs at the work place include: Human relations, formal and informal work
groups.
Esteem Needs: These needs are power, status and self confidence. Every man has a feeling of
importance and he wants others to regard him highly. These needs makes people aim high
and make them achieve something great. These needs for employees include status
symbols, awards, promotions, titles etc.
Self Actualization Needs: This is the highest need in the hierarchy. This refers to the desire to
become what one is capable of becoming. Man tries to maximize his potential and
accomplish something, when this need is activated in him.
5

marks
__________________________________________________________________________________________________
Q1. Discuss the functions of Human Resource Management in an organization.

Enumerate the challenges of HRM in the present organizational context.
Ans 1. The functions of HRM can be broadly classified into two categories viz 1) Managerial
Functions 2) Operative Functions :
FUNCTIONS OF HRM
Managerial Functions Operative Functions
Planning Employment
Organising Human Resources Development
Directing Compensation
Controlling Human Relations
Industrial Relations
Recent Trends in HRM
1. Managerial Functions: Managerial functions of personnel management involve planning,

organizing, directing and controlling.
Planning: It is pre-determined course of action. Planning pertains to formulating strategies of

personnel programmes and changes in advance that will contribute to the organizational goals. It
involves planning of human resources, requirements, recruitment, selection, training etc. It also
involves forecasting of personnel needs, changing values, attitudes and behaviour of employees
and their impact on the organization.
Organising : An organization is a means to an end. It is essential to carry out the determined

course of action. An organization is a structure and a process by which a co-operative group of
human beings allocates its task among its members, identifies relationships and integrates its
activities towards a common objective. Complex relationships exist between the specialized
departments and the general departments as many top managers are seeking the advice of the
personnel manager. Thus an organization establishes relationships among the employees so that
they can collectively contribute to the attainment of company goals.
Directing : The next logical function after completing planning and organizing is the execution
of the plan. The basic function of personnel management at any level is motivating,
commanding, leading and activating people. The willing and effective co-operation of employees
for the attainment of organizational goals is possible through proper direction. Tapping the
maximum potentialities of the people is possible through motivation and command. Co-
ordination deals with the task of blending efforts in order to ensure successful attainment of an
objective.
Controlling: After planning, organizing and directing various activities of personnel

management, the performance is to be verified in order to know that the personnel functions are
performed in conformity with the plans and directions of an organization. Controlling also
involves checking, verifying and comparing of the actuals with the plans, identification of
deviations if any and standards through controls. Auditing training programmes, analyzing labour
5
turnover records, directing morale surveys, conducting separate interviews are some of the
means of controlling the personnel management function and making it effective.
2. Operative Functions: The operative functions of human resources management are related
to specific activities of personnel management viz, employment, development, compensation
and relations. All these functions are interacted with managerial functions.
Employment: It is the first operative function of Human Resource Management. Employment is

concerned with securing and employing the people possessing the required kind and level of
human resources necessary to achieve the organizational objectives. It covers functions such as
job analysis, human resource planning, recruitment, selection, placement, induction and internal
mobility.
Human Resource Development: It is a process of improving, molding and changing the skills,
knowledge, creative ability, aptitude, values, commitment etc., based on present and future job
and organizational requirements. It includes Performance Appraisal, Training, Management
Development, Career Planning and Development, Internal Mobility, Transfer, Promotion,
Demotion, Change and Organisational Development.
Compensation: It is a process of providing adequate, equitable and fair remuneration to the

employees. It includes job evaluation, wage administration and salary administration, incentives,
bonus, fringe benefits, social security measures etc.
Human Relations: Practicing various human resources policies and programmes like
employment, development and compensation and interaction among employees create a sense
of relationship between the individual worker and management, among workers and trade
unions and the management. It is a process of interaction among human beings. Human
relations is an rear of management in integrating people into work situations in a away that
motivates them to work together productively co-operatively and with economic, psychological
and social satisfaction. It includes:
- Understanding and applying the models of perception, personality, learning, intra and
inter personnel relations, intra and inter group relations.
- Motivating the employees
- Boosting employee morale
- Developing the communication skills
- Developing the communications skills
- Redressing employee grievances properly and in time by means of a well-formulated
grievance procedure.
- Handling disciplinary cases by means of an established disciplinary procedure.
- Counseling the employees in solving their personal, family and work problems and
releasing their stress. Strain and tensions.
- Improving quality of work life of employees through participation and other means.
Industrial Relations: Industrial relations refer to the study of relations among employees,
employer, government and trade unions. Industrial relations include:
- Indian labour market
- Trade unionism
- Collective bargaining
- Industrial conflicts
- Worker’s participation in management and
- Quality circles
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Recent Trends in HRM : Human Resources Management has been advancing at a fast rate.
The recent trends in HRM include:
- Quality of work life
- Total quality in human resources
- HR accounting, audit and research and
- Recent techniques of HRM
The challenges of HRM in the present organizational context.
A goal seeking organizations especially one that seeks improvement over the current situation is
a challenge, taking organization. When many such goals are pursued tremendous internal
pressures some of them conflicting, tend to be generated. Unless the organization develops
mechanisms for coping with these self-generated pressures, it may face major failure and suffer
disastrous retreats from its goal.
Human Resource function cannot be performed in a vacuum. There are many challenges that it
has to face to survive. All these challenges are discussed below.
1. Technological factors: Just as necessity is the mother of invention competition and a

host of other reasons are responsible for the rapid technological changes and innovations.
As a consequence of these changes, technical personnel, skilled workers, computer
operators and machine operators are increasingly required while the demand for other
categories of employers has declined. Hence procurement of skilled employees and their
increase in numbers to match the changing job requirements has become a complicated
task.
2. Human Resource in the Country: The structure, values and the level of education of
human resource in a country influence much of the Human Resource function. The
influence of manpower in the country can be studies through the changes in structure of
employment.
a. Change in the Structure of Employment: The structure of employment in an
organization changes with the entrance of workforce with different backgrounds (Social
economic, region, community, sex, religion, traditions culture etc). There has been a
significant change in the structure of employment with the entry of 1) candidates
belonging to the schedule castes, schedules tribes and backward communities. 2) More
female employees, due to increased career orientation among women to the suitability of
women for certain jobs and to women becoming more acclimatized to the working climate
and higher level of commitment. 3) The workforce consists of different regions but due to
increased transportation facilities and mobile character of people. These changes in
workforce are a challenge and a complicated task of HR function. It has to deal with
employees with different backgrounds.
3. Changes in employee Roles and their Values: Earlier the management could totally
control its employees and get the desired output. Today the employees have to be
considered as a partner in the organization. Changing structure of workforce has led to
the introduction of new values in organization. Among these are moves 1) emphasis on
quality of life rather than quantity ii) equality and justice for employees over economic
efficiency iii) participation over authority. iv) Workers now prefer flexible working hours to
fixed time schedule. v) Level of education in recent years is comparatively very higher.
Increased formal education has led to the change of attitude of the employees.
4. Changing demands of employer: changes always are not on the side of employees.
Organizations also undergo changes and consequently their demands on employees will
also change. The information technological revolution and neck to neck marketing
competition of most of the organizations due to globalization demand that the existing
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employees adopt to the ever-changing work situation and learn new skills, knowledge etc
to cope with the new changes.
5. Government and Legal factors: Until 1940 the government was not involved or
interested regarding the problems of labor or industry. But the need for Govt., interference
arose out of the belief that Government is the custodian of industrial and economic
activities. The role of the government in business has after 1991 with the announcement
of economic liberalization. However awareness of legislations is very important like the
Factory Act, 1948, Trade Union act 1962, Payment of wages Act 1936, The Minimum
Wages Act 1923, The Payment of Bonus Act 1965, The Employment Exchange Act,
Standing Order Act 1946, Maternity Benefit Act 1961, and The Apprentice Act 1961. All
these acts if not complied with can get the organization into deep trouble.
6. Customers: Organizations produce products or render services for the ultimate

consumption use by the customer. In other words organizations depend upon customers
for their survival and growth. Customers revolt against employees, if the services
rendered are less qualitative. The banks face such type of challenges. Customers may
develop a negative attitude towards the organization, if it does not follow the social
policies of the country. Hence the customers pose a challenge special ally in service
industry.
7. Social factors: Social environment consists of class structure, mobility social roles social
values nature and development of social institutions caste structure and occupational
structure, traditions, religion culture etc. To cater to everyone’s requirement and keep
them happy is a big challenge faced by HR today.
Q2. What is Manpower Planning? Discuss the process and importance of Man Power
Planning in an organization .
Ans2. Ans 2. Manpower planning means planning means deciding the number and type of the
human resources required for each job, unit and the total company for a particular future date in
order to carry out organizational activities. Manpower planning may be viewed as foreseeing the
human resources requirement of an organization and the future supply of human resources and
(i) making necessary adjustments between these two and organizational plans and (ii) foreseeing
the possibility of developing the supply of manpower resources in order to match it with the
requirements by introducing necessary changes in the functions of human resources
management.
The process of manpower planning in an organization.
- Analysing the corporate and unit level strategies.

accordance with the organisational plans.
of manpower and forecast the future changes in the human resources inventory.
- Estimating the net manpower requirement.
- In case of future surplus than plan for redeployment.
- In case of future deficit, forecast the future supply of manpower from all sources
with reference to plans of other companies.
than or equal to net manpower requirements.
- Plan to modify and adjust the organizational plan if future supply will be inadequate
- Degree of uncertainty and length of planning period.
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The above points are discussed in details:
Demand Forecasting: The existing job design and analysis may thoroughly be reviewed
keeping in view the future capabilities, knowledge and skills of present employees. Further the
jobs should be redesigned and reanalyzed keeping in view the organizational and unit wise plans
and programmes, future work quantum, future activity or task analysis, future skills, values,
knowledge and capabilities of present employees and prospective employees. The jobs generally
should be designed and analysed reflecting the future human resources and based on future
organizational plans. Job analysis and forecast about the future components of human resources
facilitate demand forecasting. One of the important aspects of demand forecasting of the
quantity of human resources (skill, knowledge values, capabilities etc) in addition to quantity of
human resources. Important forecasting methods are:
1. Managerial Judgment: Under this method, managers decide the number of employees
required for future operations based on their past experience.
2. Statistical Techniques Include: ratio trend analysis and econometric models. Under
ratio trend analysis, ratios are calculated for the past data and these ratios are used
for the estimation of the future manpower requirements For eg.
- Present level of production (1-1-2005) 2000 units
- Present number of foremen (1-1-2005) 5
- Ratio is 2000/4 500
- Estimated production as on (1-1-2005) 5000 units
- Foreman required as on (1-1-2005) 5000/500 = 10
Econometric models for manpower planning are built up by analyzing the past
statistical data and by bringing the relationship among variables.
Work Study Techniques: Under this method, total production and activities in terms of
clear units are estimated in a year. Then man-hours required to produce each unit is
calculated, Later the required number of employees is calculated. For eg.
- Planned operations during 2005 = 1,60,000 units

- Standard man-hours needed to perform each unit in 2005 = 0.25
- Planned man-hours needed per year in 2005 = 40,000
- Work ability per employee in man-hours in 2005 = 2,000
- Number of employees required in 2005 = 40000/20000=20
Supply Forecasting
The first step of forecasting the future supply of human resources is to obtain the data and
information about the present human resources inventory.
Existing Inventory: The data relating to present human resources inventory in terms of
humans components, number, designation-wise and department wise would be obtained.
Principal dimensions of manpower planning are:
4. Head counts regarding total, department wise, sex-wise, designation-wise, skill-wise, pay
roll wise etc.
5. Job Family Inventory: It includes number and category of employees of each job family i.e.
all jobs related to the same category like clerks, cashiers, sub job family i.e. all jobs having
common job characteristics (skill, qualification, similar operations) like production
engineer (mechanical) and maintenance engineer (mechanical) and broad families like
general administration, production etc.
6. Age Inventory: It includes age-wise number and category of employees. It indicates age
wise imbalances in present inventory, which can be correlated in future selections and
promotions.
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Existing inventory at a future date is calculated as follows:
Existing inventory at = Present Inventory + Potential additions - Potential Losses

A future date as on today
Estimating the Net Man Power Requirements: Net manpower requirements in terns of
number and components are to be determined in relation to the overall manpower
requirements for a future date and supply forecast for that date. The difference between
overall manpower and future supply of manpower is to be found out. The difference is the net
manpower requirement.
Action Plan for Redeployment, Redundancy/Retrenchment: If future surplus is

estimated, the organization has to plan for redeployment, redundancy etc. If surplus is
estimated in some jobs/departments, employees can be redeployed in other jobs/departments
where the deficit of employees is estimated. The organization should also plan for training or
re-orientation before redeployment of employees. Redeployment takes place in the form of
transfers. If the deficit is not estimated in any job/department and surplus is estimated for the
entire organization, the organization, in consultation with the trade unions has to plan for
redundancy or retrenchment.
Recruitment and Selection Plan: Recruitment and selection plan covers the number and
type of employees required, when they are required for the job, time necessary for recruitment
and selection process, recruitment sources, recruitment techniques to be used, selection
procedure to be adopted and selection techniques to be used to subsequently recruiting the
required candidates. It also covers the time factor for induction, preliminary training and
placement.
The importance of manpower planning in an organization is :
1. to recruit and retain the manpower of required quality and quantity.

2. to foresee the employee turnover and make the arrangements for minimizing turnover
and filling up of consequent vacancies.
3. to meet the needs of the programmes of expansion, diversification etc.
4. to foresee the impact of technology on work, existing employees and future human
resource requirements.
5. to improve the standards, skill, knowledge, ability, discipline etc.
6. to assess the surplus or shortage of manpower and take measures accordingly.
7. to maintain congenial industrial relations by maintaining optimum level and structure
of human resources.
8. to minimize the imbalances caused sue to non-availability of human resources of the
right kind, right number in right time and right place.
9. to make the best use of its human resources and
10. to estimate the cost of human resources.
Q3. Discuss the sources of recruitment for an organization. Describe the steps in the
selection procedure in an organization.
1. Present Permanent Employees: Organizations consider the candidates from this source
for higher level of jobs due to availability of most suitable candidates for jobs relatively or
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equally to external sources, to meet the trade union demands and due to the policy of the


concerned.
16. Private Employment Agencies/Consultants: Public employment agencies or

consultants like ABC Consultants in India perform recruitment functions on behalf of a
client company by charging fees. Line managers are relieved from recruitment functions
and can concentrate on operational activities.
17. Public Employment Exchanges: The Government set up Public Employment Exchanges
organization in finding out suitable candidates. As per the Employment Exchange act
1959, makes it obligatory for public sector and private sector enterprises in India to fill
certain types of vacancies through public employment exchanges.

19. Data Banks: The management can collect the bio-data of the candidates from different
sources like Employment Exchange, Educational Training Institutes, candidates etc and
feed them in the computer. It will become another source and the co can get the
particulars as and when required.
20. Casual Applicants: Depending on the image of the organization its prompt response
apply casually for jobs through mail or handover the application in the Personnel dept.
This would be a suitable source for temporary and lower level jobs.
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21. Similar Organizations: Generally experienced candidates are available in organizations

change in employment put a word to the trade union leaders with a view to getting
suitable employment due to latter rapport with the management.
23. Walk In: The busy organization and rapid changing companies do not find time to perform
various functions of recruitment. Therefore they advise the potential candidates to attend
for an interview directly and without a prior application on a specified date, time and at a
specified place.
24. Consult In: the busy and dynamic companies encourage the potential job seekers to
suitable candidates and advise the company regarding the filling up of the positions.
Headhunters are also called search consultants.
25. Body Shopping: Professional organizations and the hi-tech training develop the pool of
organizations to recruit the candidates. Otherwise the organizations themselves approach
the prospective employers to place their human resources. These professional and training
institutions are called body shoppers and these activities are known as body shopping.
The body shopping is used mostly for computer professionals. Body shopping is also
known as employee leasing activity.
26. Mergers and Acquisitions: Business alliances like acquisitions, mergers and take over
help in getting human resources. In addition the companies do also alliances in sharing
their human resource on adhoc basis.
27. E_recruitment: The technological revolution in telecommunications helped the

vacancies through the worldwide wed (www). The job seekers send their applications
through e-mail using the Internet.
28. Outsourcing: Some organizations recently started developing human resource pool by
employing the candidates for them. These organizations do not utilize the human
resources; instead they supply HRs to various companies based on their needs on
temporary or ad-hoc basis.
Steps in the selection procedure in an organization.
Selection is a process of selecting the right candidate for the right job. It is about collecting
information about the candidate’s qualifications, experience, physical and mental ability, nature
and behaviour, knowledge, aptitude etc for judging whether a given applicant is suitable or not
for the job. The selection process is discussed below:
1. Job Analysis: Job analysis is the basis for selecting the right candidate. Every
organisation should finalise the job analysis. Job description, job specification and
employee specifications before proceeding to the next step of selection.
2. Human Resource Plan: Every company plans for the required number of and kind of
employees for a future date. This is the basis for recruitment function.
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3. Recruitment: Recruitment refers to the process of searching for prospective employees
and stimulating them to apply for jobs in an organisation. It is the basis for the remaining
techniques of the selection and the latter varies depending upon the former. It develops
the applicants’ pool.
4. Application Form: Application form is also known as application blank. The technique of
application blank is traditional and widely accepted for securing information from the
prospective candidates. It can also be used as a device to screen the candidates at the
preliminary level. Many companies formulate their own style of application forms
depending upon the requirements of information based on the size of the company, nature
of business activities, type and level of the job etc. Information is generally required on
the following items in the application forms : (i) Personal background information, (ii)
Educational attainments, (iii) Work experiences, (iv) Salary, (v) Personal details and (vi)
References.
6. Written Examination: The organization have to conduct written examination for the
qualified candidates after they are screened on the basis of the application blanks so as to
measure the candidate’s ability in arithmetical calculations, to know the candidates
attitude towards the job, to measure the candidates aptitude, reasoning, knowledge in
various disciplines, general knowledge and English language.
7. Preliminary Interview: The preliminary interview is to solicit necessary information from

the prospective applicants and to assess the applicant’s suitability to the job. The
information provided by the candidate may be related to the job or personal specifications
regarding education, experience, salary expected aptitude towards the job, age physical
appearance and other physical requirements etc. Thus preliminary interview is useful as a
process of eliminating the undesirable candidates. If a candidate satisfies the job
requirement regarding most of the arrears he may be selected for further process.
Preliminary interviews are short and known as stand-up interviews or sizing up of the
applicants or screening interview. This interview is also useful to provide the basis
information about the company to the candidate.
8. Business Games: Business games are widely used as a selection technique for selecting
management trainees, executive trainees and managerial personnel at junior, middle and
top management positions. Business games help to evaluate the applicants in the areas of
decision making, identifying the potentialities, handling the situations, problem-solving
skills, human relations skills etc. Participants are placed in a hypothetical work situation
and are required to play the role situations in the game.
9. Group Discussions: The technique of group discussion is used in order to secure further
information regarding the suitability of the candidate for the job. Group discussion is a
method where groups of the successful applicants are brought around a conference table
and are asked to discuss either a case study or a subject matter. The candidates in the
group are required to analyze, discuss, find alternative solutions and select the sound
solution. A selection panel then observes the candidates in the areas of initiating the
discussion, explaining the problem, soliciting unrevealing information based on the given
information and using common sense, keenly observing the discussion of others, clarifying
controversial issues, influencing others, speaking effectively, concealing and mediating
arguments among the participants and summarizing or concluding aptly. The selection
panel, based on its observations, judges the candidate’s skills and ability and ranks them
according to their merit.
BUSINESS GAMES AND THEIR UTILITY IN THE SELECTION PROCESS
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Business Games Utility
(1) Case Study Analytical, judgmental and decision-making skills
(2) Role Play Human relations skills.
(3) In-basket method Situational judgment, social relations, decision-making
skills, problem-solving skills.
(4) Sensitivity Degree of openness, concern for others, tolerance for
individual differences.
(5) Simulations Encountering skills.
5. Test: Psychological tests play a vital role in employee selection. A psychological test is
essentially an objective and standardized measure of sample of behaviour from which
inferences about future behaviour and performance of the candidate can be drawn.
Types of Test
1. Aptitude Tests:
(a) Intelligence Test (IQ) (b) Emotional Quotient
(c) Skill Tests (d) Mechanical Aptitude
(e) Psychomotor Tests (f) Clerical Aptitude Tests
2. Achievement Tests:
(a) Job Knowledge Test (b) Work Sample Test
3. Situational Tests:
(a) Group Discussion (b) In Basket
4. Interest Test
5. Personality Tests:
(a) Objective Tests (b) Projective Tests
6. Multi-Dimensional Testing
Eg.: Multi-Skilling: Multi-Dimensional Testing: L&G has realised that most of the company
operations whether they are production or marketing or finance or human resources can be done
by almost all the employees. Experts are needed only in rare cases. Infact, services of the
experts can be outsourced. As such, L&G started selecting the candidates with multi-skills and
who can perform a variety of functions. L&G developed multi-dimensional testing.
Types of Interview: The types of Employment interviews are:

1. Preliminary Interview
(a) Informal Interview

This is the interview, which can be conducted at any place by any person to secure the
basic and non-job related information. It is the interaction between the candidate and the
personal manager when the former meets the latter to enquire about the vacancies or
additional particulars in connection with the employment advertisement etc.
(b) Unstructured Interview

In this interview the candidate is given freedom to tell all about himself by revealing his
knowledge on various items/arrears, his background, expectations, interest etc. The
interviewer also may answer some information required by the candidate.
2. Core Interview: It is normally the interaction between the candidate and the line
executive or experts on various areas of job knowledge, skill, talent etc.
(a) Background information interview

This interview is intended to collect the information which is not available in the application
blank and to check that information provided in the application blank regarding education,
place of domicile, family, health, likes, dislikes and extra curricular activities of the
applicant.
(b) Job and probing interview
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This interview aims at testing the candidate’s job knowledge about duties, activities,
methods of doing the job, critical/problematic areas, and methods of handling those areas.
(c) Stress interview

This interview aims at testing the candidate’s job behaviour and level of withstanding
during the period of stress and strain. The interviewer tests the candidate by putting him
under stress and strain by interrupting the applicant from answering, criticizing his
opinions, asking questions pertaining to unrelated areas etc. Stress during the middle
portion of the interview gives effective results.
(d) Group discussion interview

There are two methods of conducting group discussion interviews viz group interview
method and discussion method. This type of interview helps the interviewer in appraising
certain skills of the candidates like initiative; inter personal skills, dynamism, presentation,
leading, comprehension, collaboration etc.
(e) Formal and structured interview

In this type of interview, all the formalities, procedures like fixing the value, time, panel of
interviewers, opening and closing, intimating the candidates officially etc. are strictly
followed in arranging and conducting the interview. The course of the interview is pre-
planned and structured, in advance depending on job requirements. The questions for
discussion are structured and experts are allotted different areas and questions to be
asked.
(f) Panel interview

A panel of experts interviews each candidate, judges his performance individually and
prepares consolidated judgement. This type of interview is known as panel interview.
(g) Depth interview

The candidate is examined extensively in core areas of job skills and knowledge. Experts
test the candidate’s knowledge in depth. Depth interviews are conducted for specialized
jobs.
(h) On Line Interview: Information technology brought significant developments in the

selection process of employees. The vital development is on-line interview where the
interview is conducted online. These techniques include, on-line submission, internet based
recruiting, outsourcing employment function, sophisticated scanning and searching.
3. Decision-Making Interview
After the candidates are examined by the experts including the line managers of the
organization in the core areas of the job, the head of the department/section concerned
interviews the candidate once again, mostly through informal discussion. The interviewer
examines the interest of the candidate in the job, organization, reaction/adaptability to the
working conditions, career planning, promotional opportunities, work adjustment and
allotment etc. The Personnel Manager also interviews the candidates with a view to find out
his reaction/acceptance regarding salary, allowances, benefits, promotions, opportunities
etc.
During various types of interviews depending on the job requirement the interviewer can see and
analyse the strengths, weaknesses and potentials of the candidate. Whether he is suitable for
the job, whether he is the right candidate. Various types of interviews help the interviewer to
arrive at different conclusion. Eg. A Stress Interview helps to analyse whether a candidate can
perform under stress and pressure and whether he can take a right decision at such times. Most
of the organizations have realized recently that the employees’ positive attitude contribute much
rather than employees skills and knowledge. Employees with positive attribute contribute much
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to the organization. Hence the interviewers look for the candidates with the right attitude while
making final decisions.
Attitude Counts Much, but not the Skill
InfoTech Limited discovered that the employees with right attitude take up the activities willingly
on their own. They acquire the necessary skills, if they do not possess them. They never say ‘no’
to other employees, superiors and customers. Hence the interviewers select candidates with
right and or positive attitude, irrespective of their technical skills and knowledge.
Medical Examination : Certain jobs require certain physical qualities like clear vision, perfect
hearing, unusual stamina, tolerance of hardworking conditions, clear tone etc. Medical
examination reveals whether or not a candidate possesses these qualities.
Reference Checks: After completion of the final interview and medical examination, the
personnel department will engage in checking references. Candidates are required to give the
names of references in their application forms. These references may be from the individuals
who are familiar with the candidates academic achievement or from the applicants previous
employer, who is well versed with the applicant’s job performance, and sometimes from co-
workers.
Final Decision by Line Manager : The Line Manager concerned has to make the final decision
whether to select or reject a candidate after soliciting the required information through different
techniques discussed earlier. The line manager has to take much care in taking the final decision
not only because of economic implications and of the decisions but also because of behavioural
and social implications.
Job Offer : After taking the final decision the organization has to intimate this decision to the
successful as well as unsuccessful candidates. The organization offers the job to the successful
candidate either immediately. The candidate after receiving the job offer communicates his
acceptance to the offer or requests the company to modify the terms and conditions of
employment or rejects the offer.
Employment: The company may modify the terms and conditions of employment as requested
by the candidate. The Company employs those candidates who accept the job offer with or
without modifications of terms and conditions of employment and place them on the job.
Q4. Discuss the importance of training and development in organizations. How do you
identify the training needs in an oraganisation? Describe the different methods of
training.
Ans. 4. Importance of training and development in organizations : The importance of HRM

to a large extend depends on human resources development and training is its most important
technique. No organization can get a candidate who exactly matches with the job and the
organizational requirements. Hence training is important to develop the employee and make him
suitable to the job. Training works towards value addition to the company through HRD.
Organisational efficiency, productivity, progress and development to a large extend depends on
training. If training is not provided it leads to performance failure of the
employees.Organisational objectives, like stability, viability and growth can also be achieved
through training. Training is important as it constitutes a significant part of management control.
Training enhances 4Cs viz competence, commitment, creativity and contribution for the
organization.
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Identification of training needs: Training needs are identified on the basis of organizational
anaylsis, job analysis and manpower analysis. Training needs are those aspects necessary to
perform the job in an organization in which employee is lacking attitude/aptitude, knowledge and
skills. Basically there are two type of analysis done to identify the training. One is the
Organizational Analysis and the other Individual Analysis.
Training needs = Job and organizational requirement-Employees specifications
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Identification of Training Needs
1. To identify Organizational goals and Performance appraisal
objectives
9. Consideration of current and projected
changes
The different methods of training:

There are basically two methods of training. 1) On-the-Job Methods and 2) Off-the job-Methods.
TRAINING METHODS
On the Job Methods Off The Job Methods
1. Job Rotation Vestibule Training
2. Coaching Role Playing
3. Job Instruction Lecture Methods
4. Training through Step by Step Conference or discussion
5. Committee Assignments Programmed Instruction
On the Job Training Methods : This type of training is also known as job instruction training.
Under this method the individual is place on a regular job and taught the skills necessary to
perform that job The trainee learns under the supervision and guidance of a qualified worker or
instructor. On the job training has the advantage of giving first hand knowledge and experience
under the actual working conditions. While the trainee learns how to perform a job, he is also a
regular worker rendering the services for which he is paid. The emphasis is placed on rendering
services in the most effective manner rather than learning how to perform the job.
1. Job Rotation : This type of training involves the movement of the trainee from one job to
another. The trainee receives job knowledge and gains experience from his supervisor or trainer
in each of the different job assignments. Though this method of training is common in training
managers for general management positions, trainees can also be rotated from job to job in
workshop jobs. This method gives an opportunity to the trainee to understand the problems of
the employees on other jobs and respect them.
2. Coaching : The trainee is placed under a particular supervisor who functions as a coach in
training the individual. The supervisor provides feedback to the trainee on his performance and
offers some suggestions for improvement. Often the trainee shares some of the duties and
responsibilities of the coach and relieves him of his burden. A limitation of this method of training
is that the trainee may not have the freedom or opportunity to express his own ideas.
3. Job Instruction : This method is also known as training through step by step. Under this
method, the trainer explains to the trainee the way of doing the jobs, job knowledge and skills
and allows him to do the job. The trainer appraises the performance of the trainee, provides
feedback information and corrects the trainee.
4. Committee Assignments : Under the committee assignments a group of trainees are given and
asked to solve an actual organizational problem. The trainees solve the problem jointly. It
develops team work.
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Off the Job Methods : Under this method of training, the trainee is separated from the job
situation and his attention is focused upon learning the material related to his future job
performance. Since te trainee is not distracted by job requirements, he can place his entire
concentration on learning the job rather than spending his time in performing it. There is an
opportunity for freedom of expression for the trainees.
1. Vestibule Training : In this method, actual work conditions are stimulated in a class room.
Material files and equipments which are used in actual job performance are also used in training.
This type of training is commonly used for training personnel for clerical and semi skilled jobs.
The duration of tis type of training ranges from days to a few weeks. Theory can be related to
practice in this method.
2. Role Playing : It is defined as a method of human interaction that involves realistic behaviour
in imaginary situations. This method of training involves action, doing and practice. The
participants play the role of certain characters such as the production manager, mechanical
engineer, superitentents, maintenance engineers, quality control inspectors, foremen, workers
and the like. This method is mostly used for developing inter-personal interactions and relations.
3. Lecture Method : The lecture is a traditional and direct method of instruction. The instructor
organises the material and gives it to a group of trainees in the form of a talk. To be effective,
the lecture method must motivate and create interest among the trainees. An advantage of the
lecture method is that it is direct and can be used for a large group of trainees. Thus costs and
time involved are reduced. The major limitation of the lecture method is that it does not provide
for training effectively.
4. Conference or Discussion : It is a method in training the clerical, professional and supervisory

personnel. This method involves a group of people who pose ideas, examine and share facts,
ideas and data, test assumptions and draw conclusions, all of which contribute to the
improvement of job performance. Discussion has the distinct advantage over lecture method as
it involves two way communication. The participants feel free to speak in small groups. The
success of this method depends on the leadership qualities of the person who leads the group.
5. Programmed Instruction : In recent years this method has become popular. The subject matter
tobe learned is presented in a series of carefully planned sequential units. These units are
arranged from simple to more complex levels of instructions. The trainee goes through these
units by answering or filling the blanks. This method is expensive and time consuming.
Q5. Discuss any two theories of motivation. Explain the stratergies used by
organizations to motivate employees.
Ans 5. Theories of Motivation: There are several theories on motivation. The significant among
them are Maslow’s Hierarchy of Needs, Herzberg’s Two Factor Theory, Vrooms Expectancy
Theory, Porter and Lawler’s Expectancy Theory and Equity Theory of Work Motivation. We shall
discuss 1. Maslows Theory of Hierarchy of Needs and 2. Herzberg Two Factor Theory.
1. Maslows Theory of Hierarchy of Needs :

According to Maslow, human needs form a hierarchy, staring at the bottom with the
physiological needs and ascending to the highest need of self actualization. He says when
one set of needs is satisfied; they no longer work as motivators as a man seeks to satisfy the
next higher level of needs.
__________________________________________________
__________________________________________________
Physiological Needs
6
__________________________________________________
Esteem Needs
__________________________________________________
Social Needs -Affiliation or
Acceptance Needs
__________________________________________________
__________________________________________________
Physiological Needs
__________________________________________________
MASLOW”S HIERACHY OF NEEDS
==========================================
The Need Hierarchy:
6. Physiological Needs: These are the basic necessities of human life, food, water, warmth,
7. Security/Safety Needs: These refer to the need to be free of physical danger or the
feeling of loss of food, job or shelter. When the physiological needs are satisfied, man
starts thinking of the way by which he can satisfy his safety needs. Security needs spring
up the moment he makes an effort in the direction of providing himself the source of
continuity of physiological needs. In a work environment these needs include conformity,
security plans, membership in unions, severance pay etc.
8. Social Needs: (Affiliation or Acceptance Needs) When the physiological and security
needs are satisfied, these social needs begin occupying the mind of a man. This is
exactly why he looks for the association of other human beings and strives hard to be
accepted by this group. Social needs at the work place include: Human relations, formal
and informal work groups.
9. Esteem Needs: These needs are power, status and self confidence. Every man has a
feeling of importance and he wants others to regard him highly. These needs makes
people aim high and make them achieve something great. These needs for employees
include status symbols, awards, promotions, titles etc.
10.Self Actualization Needs: This is the highest need in the hierarchy. This refers to the
desire to become what one is capable of becoming. Man tries to maximize his potential
and accomplish something, when this need is activated in him.
2. Herzberg Theory of Motivation: Deals with basically two factors Dissatisfiers and
Satisfiers.
SATISFIERS: The second group are the” satisfiers’ in the sense that they are motivators which
6
Herzberg’s Two Factor Theory: Classification of Maintenance and Motivational Factors

9. Job security
10 Work Conditions
.
11 Status
.
Strategies used by organizations to motivate employees.
It is a bare fact that most of us use only a small portion of our mental and physical abilities. To
exploit the unused potential in people they are to be motivated. Needless to say that such
exploitation results in greater efficiency, higher production and better standard of living of the
people. There are basically two types of motivation vis 1) Positive Motivation and Negative
Motivation.
1. Positive Motivation: People are said to be motivated positively when they are shown a rewards
and the way to achieve it. Such a reward may be financial or non financial. Monetary motivation
may include different incentives, wage plans, productive bonus schemes etc. Non monetary
include praise for work, participation in management, social recognition. Monetary incentives
provide the worker a better standard of life while non monetary incentives satisfy the ego of a
man.
2. Negative Motivation: It is induced by installing fear in the minds of people; one can get the
desired work done. In this method of motivation fear of consequences of doing something or not
doing something keeps the worker in desired direction. This method has got several limitations.
Fear Creates frustration, a hostile state of mind and an unfavorable attitude towards the job
which hinder efficiency and productivity. So the use of it should be kept minimum.
Q6. What is organisational change? Discuss the sources of resistance to change in

organisations. How can effective change be implemented in an organisation?
Ans 6. The term “Organisational Change” implies the creation of imbalances in the existent
pattern or situation. Adjustment among people, technology and structural set up is established
when an organisation operates for a long time. People adjust with their jobs, working conditions,
colleagues, superiors etc. Similarly, an organisation establishes relationship in the external
environment. Change requires individuals and organisations to make new adjustments.
Complexity and fear of adjustment gives rise to resistance and problem of change. Human
resource is an important factor in relation to the adjustments among individuals as well as
6
between the organisation and environment, as an organisation is mostly composed of people.
Individual members can resist either individually or in a group.
Change could be both reactive and proactive. A proactive change has necessarily to be planned
to attempt to prepare for anticipated future challenges. A reactive change may be an automatic
response or a planned response to change taking place in the environment.
Changes relating to organisation include change in employees due to transfers, promotion,

retrenchment, lay-off, restructuring or organisation, introduction of new products or services,
imposition of regulation, changes in organisational goals or objectives etc.
The basic problem in the management to change is the study of causes of resistance to change.
Despite the fact that change is a persistent phenomenon, it is a common experience that
employees resist change whether in the context of their pattern of life or in the context of their
situation in the organisation. The best example is resistance of employees to computerisation.
Change of and type requires re-adjustment. ‘Man always fears the unknown, and a change
represents the unknown’.
Sources of resistance to change in an organization.
Reasons for Resistance :- Some of the important reasons for resistance to change are as
follows :
(a) Economic Reasons : Economic reasons for resistance are classified into three groups.
They are :
• Fear of reduction in employment - Due to the change in technology, methods of work,
quantity or quality of work etc. this fear leads to resistance to change on the part of the
people. Opposition to automation is an example to it.
• Fear to demotion - Employees may fear that they may be demoted if they do not possess
the new skills required for their jobs, after the introduction of change. Hence, they prefer
‘status quo’.
• Fear of workload - Change in work technology and methods may lead to the fear that
workload will be increased while there will not be any corresponding increase in their
salaries and benefits. This feeling creates resistance to change.
(b) Personal Reasons : Personal reasons for resistance are also divided into three classes.
They are:
• Need for training - If change in technology and work organisation necessitates training and
re-learning on the part of employees, it may lead to resistance, as all do not like to go for
refresher and retraining courses off and on.
• Boredom and monotony - If the proposed change is expected to lead to greater
specialisation resulting in boredom and monotony, it may also be resisted by employees.
• No participation in change - Some employees resist any change as they are critical of the
situation and thy are not being given any part in the decision making process for change
When they do not understand fully the implications of change they resist it.
(c) Social Reasons : Social reasons for resistance are also classified into three groups. They
are:
• Need for new social adjustment - an organisaitonal change requires new social adjustment
with the group, work situation and new boss etc. All individuals are not ready to accept
this challenge. Some people refuse transfers and promotions for this reason only, as they
will have to break their present social ties.
• Taking change as imposed from outside - some employees take any change as imposed
from outside upon them.
6
• Other considerations - some employees may consider that every change brought about is
for the benefit of the organisation only and not for them, their fellow workers or even the
general public. Hence they resist the change.
Resistance from the Side of Managers - It is not a common fact that change is always
resisted by the employees only. Managers also resist change sometimes. Any change sets in
new responsibilities and imposes new tension, stress and strains over them is normally resisted
by managers. The feeling of uncertainty, whether they will be able to handle new circumstances
successfully or not, motivates them to resist.
Effective change can be implemented in an Organisation by different approaches:
Approaches to Organisational Change :- Management is said to be an agent of change. It

means that the management has to introduce change successfully in its organisation. It has to
overcome the resistance and make it a successful venture. The management must realise that
resistance to change is basically a human problem, though on the surface, it may appear to be
related to the technical aspect of change. So, it must be tackled in a human and social manner.
Management has to take the following steps to implement the change successfully:
(1) Participation of Employees : Before introducing any change, the employees should be
fully consulted and they must be a party to any such decision. The meaning and purpose of the
change must be fully communicated to those who will be affected by it. Enough time should be
allowed for discussion and the pros and cons of the change should be explained in detail to the
employees. (see box below).
Qualities of a Counsellor
• Empathy • Knowledge • High Self Awareness
• Respect • Honesty • Capacity accept without
• Warmth • Credibility bias
• Personal • Excellent • Facilitator
characteristics communication • Excellent listener
• All round preparation
(2) Planning for Change : Before implementing any change, the management should plan for
it. Employees should get an opportunity to participate both in planning the change and installing
it. This will help the group of the affected employees to recognise the need for change and thus
prepare them for receiving it without any fear.
(3) Protecting Employees’ Interest : Management should ensure that employees are
protected from economic loss, loss in status or personal dignity. If those things are protected,
the degree of resistance to change will be at the lowest ebb.
(4) Group Dynamics : Group dynamics refers to the ever changing interactions and
adjustments in the mutual perceptions and relationships among members of the groups. Such
group interactions are the most powerful instruments which facilitate or inhibit adaptation to
change. Adaptation is a team activity which requires conformity to the new group norms,
moves, traditions and work patterns. If these could be positively articulated by the
management, the results are likely to be more successful and durable.
(5) Cautious and Slow Introduction : The management should not introduce any change
suddenly and abruptly. It must be an objective for the management to build in the organisation
an awareness of change and an ability to forecast it, and also to construct an attitude of
welcoming change. Change must be introduced in sequential parts, and if possible, the results
must be reviewed and required adjustments must be made in it.
7
(6) Positive Motion : The management should use the policy of positive motivation to
counteract negative resistance. It should be the attempt of the management to make the job
easier and less exerting. Te management should impart proper training to its employees in new
techniques and work knowledge etc. The leadership styles should also be supportive and human
oriented. The policy will also bring down the resistance to change.
(7) Sharing the Benefits of Change : Any change whether technical, social or economic will
be least resisted by the employees if the management permits the employees to share benefits
which arise out of the change. So, the management must see that employees are not only
assured of it, they are given due advantage of it as well.
(8) Training and Development : Management should plan for change. Based on the change
plan, the job should be redesigned. Management should train the employees before hand and
prepare the employees to invite change. Normally, trained and developed employees will not
resist change as they cannot keep quite with enriched skill and knowledge.
(9) Career Planning and Development : Organisation on the basis of change plans and
redesigned jobs should plan for careers of employees, possibilities to move the employees to the
higher levels and develop them. The developed employees for future careers demand the
management to implement change.
(10) Organisation Development : Organisation development aims at moulding and

development of employees in the psychological and behavioural areas with a view to achieve
organisational effectiveness. Employees with enriched behaviours welcome the change.
Q7. What is Performance Appraisal System and what are its objectives? Describe the
various sources of errors in the appraisal process. What is the difference between
the Performance Appraisal and Performance Management Systems in an
organisation?
Ans.7 Performance appraisal is a method of evaluating the behaviour of employees in the work
Performance refers to the degree of accomplishment of the tasks that make up an individual’s
job. It indicates how ell an individual is fulfilling the job demands.
appraisal and type and level of employees.
The key factor in an organization to support an effective performance appraisal system is as

follows:
- Organizational planning based on potentialities of human resources.
- Human Resource Planning based on weakness, strengths and potentialities of human
resources.
- Organizational effectiveness through performance improvement
- Fixation and re-fixation of salary, allowances, incentives and benefits
- Original placement or placement adjustment decisions
- Identifying training and development needs and to evaluate effectiveness of training and
development
- Needs and to evaluate effectiveness of training and development programmes
- Career planning and development and movement of employees.
Objectives of Performance Appraisal System :- Performance appraisal aims at attaining the

different purposes. They are :
7
• To create and maintain a satisfactory level of performance.
• To contribute to the employee growth and development through training, self and
management development programmes. Tata Power aims at employee development
through performance appraisal.
• To help the superiors to have a proper understanding about their subordinates.
• To guide the job changes with the help to continuous ranking.
• To facilitate fair and equitable compensation based on performance.
• To facilitate for testing and validating selection tests, interview techniques through
comparing their scores with performance appraisal ranks.
• To provide information for making decisions regarding lay-off, retrenchment etc. as in the
case of Hyundai Engineering.
Sources of Error in Performance Appraisal:
2. Rating Biases: It is a subjective measure of rating performance which is not verifiable by

others and has the opportunity for bias. There rater biases include: a) the halo effect b)
the error of central tendency c) the leniency and strictness biases d) personal prejudice
and e) the recency effect.
a. Halo Effect: it is the tendency of the raters to depend excessively on the rating of
one trait or behaviourial consideration in rating all other traits or behavioural
considerations. One way of minimizing the halo effect is appraising all employees by
one trait before going to rate them on the basis of another trait.
b. The Error of Central Tendency: Some raters follow play safe policy in rating by
rating all the employees around the middle point of the rating scale and they avoid
rating the people at both the extremes scale. They follow play safe policy because
of answerability to the management or lack of knowledge about the job and person
he is rating or has least interest in the job.
c. The Leniency and Strictness: the leniency bias crops when some raters have a
tendency to be liberal in their rating by assigning higher rates consistently. Such
ratings do not serve any purpose. Equally damaging is assigning consistently low
rates.
d. Personal Prejudice: If the rater dislikes any employee or any group, he may rate
them at the lower end, which may distort the rating purpose and affect the career
of these employees.
e. The Recency Effect: The raters generally remember the recent actions of the
employee at the time of rating them on the basis of these recent actions
favourable or unfavourable-rather than on the whole activities.
Difference between Perfomance Appraisal and Performance Management System.
Perfomance Appraisal Perfomance Management System

Performance Appraisal is Organisational Performance Management System
planning based on potentialities of its human performance of the employee is continuously
sources. monitored and developed in tune with the
organisational requirements.
It is human resource planning based on Emphasis on Documentation : Emphasis is

weakness, strengths and potentialities of required for goal setting of employees and
7
human resources. other important processes of a performance
management system.
The basic purpose is to find out how well the Computer-based Performance
employee is performing the job and to Management : Now-a-days software is
establish a plan of improvement. available for implementing the entire
performance management process.
It is not job evaluation. It refers to how Collaborative Performance Management :
someone is doing the assigned job. Job Both the Manager and the subordinates
evaluation determines how much a job is understand each other and both understand
worth to the organization and therefore, what the organisational goals and requirements with
range of pay should be assigned to the job. a common and collaborative mind.
It identifies training and development needs Customised Performance Management

and evaluates effectiveness of training and System : Organisations started adopting
development programmes. seperate performance appraisal techniques
and design the system for each employee
separately based on employee skills,
behaviour and his job needs.
Q 8.Write short notes on any three of the following :-

a) Job Satisfaction b) Employee Morale c) Job Evaluation
d) Job Analysis e) Employee Turnover f) H.R. Policies
Ans 8a. Job Satisfaction : Job satisfaction refers to a person’s feeling of satisfaction on the job,
which acts as a motivation to work. It is not self-satisfaction, happiness or self-contentment but
satisfaction on the job.
The term relates to the total relationship between an individual and the employer for which he is
paid. Satisfaction does mean the simple feeling state accompanying the attainment of any goal,
the end-state is feeling accompanying the attainment by an impulse of its objective. Job
dissatisfaction does mean absence of motivation at work. Research workers differently
described the factors contributing to job satisfaction and job dissatisfaction. Hoppock describes
job satisfaction as “any combination of psychological, physiological and environment
circumstances that cause any person truthfully to say that I am satisfied with my job.”
Job satisfaction is defined as the “pleasurable emotional state resulting from the appraisal of
one’s job as achieving or facilitating the achievement of one’s job values.” In contrast, job
dissatisfaction is defined as “the unpleasurable emotional state resulting from the appraisal of
one’s job as frustrating or blocking the attainment of one’s job values or as entailing disvalues.”
However, both satisfaction and dissatisfaction were seen as “a function of the perceived
relationship between what one perceives it as offering one entailing.
Ans 8b. Employee Morale : Morale is purely emotional. It is an attitude of an employee

towards his job, his superior and his organisation. This may range from very high to very low. It
is not a static thing but it changes depending on working conditions, superiors, fellow-workers,
pay and so on. When a particular employee has a favourable attitude towards his work, he is
said to have high morale. In the Organisational context, we usually talk of group morale as each
person has an influence over the other’s morale.
7
Ans 8c. Job Evaluation : Job evaluation deals with money and work. It determines the relative
worth or money value of jobs. The International Labour Organisation defined job evaluation as
“an attempt to determine and compare demands which the normal performance of a particular
job makes on normal workers without taking into account the individual abilities or performance
of the workers concerned”. Wendell L. French defined job evaluation as “a process of
determining the relative worth of the various job within the organisation, so that different wages
may be paid to jobs of different worth”. Job evaluation is defined as “the overall activity of
involving an orderly, systematic method and procedure of ranking, grading and weighing of jobs
to determine the value of a specific job in relation to other jobs”. British Institute of Management
(1970) defined job evaluation as, “the process of analysing and assessing the content of jobs, in
order to place them in an acceptable rank order which can then be used as a basis for a
remuneration system. Job evaluation, therefore, is simply a technique designed to assist in the
development of new pay structures by defining relatives between jobs on a consistent and
systematic basis”. Thus, job evaluation may be defined as a process of determining the relative
worth of jobs, ranking and grading them by comparing the duties, responsibilities like skill,
knowledge of a job with other jobs with a view to fix compensation payable to the concerned job
holder.
Ans 8d. Job Analysis : Te U.S. Department of Labour defined job analysis as “the process of
determining by observation and study and reporting pertinent information relating to the nature
of a specific job. It is the determination of the tasks which comprise the job and of the skills,
knowledge abilities and responsibilities required of the worker of a successful performance and
which differentiate one job from all others.”
Ans 8e. Employee Turnover : The movement of an employee from one job to the another.
Jobs themselves are not actually changed, only the employees are rotated among various jobs.
An employee who works on a routine / respective job moves to and works on another job for
some hours/days/months and abcks up to the first job. This measure relieves the employee from
boredom and monotony, improves employee’s skills regarding various jobs, prepares the
competent employees and provides competitive advantage to the company. These measures
also improves worker’s self-image and provides personal growth. However, a frequent job
rotations are not advisable in view of their negative impact on the organisation and the
employee.
Ans 8f. H.R. Policies :
Human resource policies are general statements that guide thinking and action in decision
making in an organisation. A HR policy is a plan of action, a set of proposals and actions
that act as a reference point for managers in their dealings with employees. HR policies
constitute guides to action. They furnish the general standards or bases on which
decisions are reached. Their genesis lies in an organization’s values, philosophy, concepts
and principles”. Personnel guide the course of action intended to accomplish personnel
objectives. A HR policy is a guideline for making wise decisions. It brings about stability in
making decisions. A HR policy is a stance, often a choice made between two or more
alternatives, such as the choice between promoting employees on than basis of merit
versus promoting them on the basis of seniority. It covers the norms and guidelines for
policies like safety, recruitment, wages etc.

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HUMAN RESOURCE MANAGEMENT-2001

Attempt any five questions Total 100

Ans 1. Management is said to be an agent of change. In order to make a change management

1. Participation of Employees: Before introducing any change the employees should be

3. Protecting Employees Interest: Management should ensure that employees are

9. Career Planning and Development: The HR Manager should plan careers of

2. Level of Economic Development: Level of economic development determines the level

3. Business Environment: External business environmental factors influence the volume

5. Level of Technology: Level of technology determines the kind of human resources

1. Company Strategies: Company policies and strategies relating to expansion,

2. Human Resource Policies: Human resource policies of the company regarding

Internal sources of Recruitment:

1. Present Permanent Employees : Organizations consider the candidates from this

2. Present temporary/casual Employees: Organizations find this source to fill the

4. Dependents of Deceased, Disabled, retired and present employees: Some

External Sources of Recruitment

2. Private Employment Agencies/Consultants: Public employment agencies or

3. Public Employment Exchanges: The Government set up Public Employment Exchanges

4. Professional Organizations: Professional organizations or associations maintain

7. Similar Organizations: Generally experienced candidates are available in organizations

8. Trade Unions: Generally unemployed or underemployed persons or employees seeking

13. E_recruitment: The technological revolution in telecommunications helped the

Merits and Demerits of Internal Sources of Recruitment

Sr. Merits of Internal Sources of Demerits of Internal Sources of

Merits and Demerits of External of Recruitment

Sr. Merits of External Sources of Demerits of External Sources of

STRATEGY HUMAN RESOURCE PLAN NING

Purpose of Human Resource Planning.

Important Elements of Human Resource Planning.

- Analyzing Corporate and unit level strategies

Q 5.b. Explain what is Job Evaluation?

• A serious and committed instructor must :

Q 6b. Critically examine Herzberg’s two factor theory.

Another WAY to present the above question

Ans 6b. Herzberg’s Classification of Maintenance and Motivational Factors

Sr Maintenance Factors or Motivational Factors or Satisfiers

Q7. What is the role of a constructive and positive Trade Union?

Ans 7. The Role of a constructive and positive Trade Union

- Promotion of national integration

e. Ancillary Functions: Ancillary functions of trade include Communications to its

Q8. Write short notes on any three:

Training needs = Job and organizational requirement-Employees specifications

Identification of Training Needs

d.Workers Participation in Management: The concept of WPM is considered as a mechanism

The main objective of WPM in management include

- To promote increased productivity for the advantage of the organization, workers

Attempt any five questions Total 100

1. Technological factors: Just as necessity is the mother of invention competition and a

6. Customers: Organizations produce products or render services for the ultimate

Q. 2.a Give a brief outline of the Human Resource Planning System.

STRATEGY HUMAN RESOURCE PLANNING

Purpose of Human Resource Planning.

Important Elements of Human Resource Planning.

- Analyzing Corporate and unit level strategies

Q2. b. What is Job Evaluation?

Q3 a. Steps to overcome Resistance to Change.

Management is said to be an agent of change and has to introduce change successfully.

1. Participation of Employees: Before introducing any change the employees

2. Planning for Change: The change should be planned by the Management.

3. Protecting Employees Interest: Management should ensure that employees

5. Cautious and Slow Introduction: The HR manager should cautiously and

7. Sharing the Benefits of Change: Any change whether technical, social or

8. Training and Development: Based on the change the job should be