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CBSE/UGC-NET/JRF
Human Resource Management
& Labour Welfare

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 A Quick Mentor Book
For

CBSE/UGC-NET/JRF Human Resource

Management & Labour Welfare Useful for NET
Paper II and III/ PSU’s (MT)/Other Competitive
Exams. With HRM/OB & Labour Laws

Also Useful for PSU’s/ Management Trainee Exam./

Special exams of UPSC, Assistant Labour Commissioners
(Central)/Assistant Welfare Commissioners
(Central) /Assistant Labour Welfare Commissioners/
Asst. Provident Fund Commissioner Exam.

Objective Type Questions with Answer & Explanation

Also Chapters with One Liner Facts on HRM, OB & IR

Written and Compiled By Reviewed By

Abhishek Kumar Pandey Dr. Tarun Singh Gangwar
MBA (HR), Diploma in Ph.D, MBA
Labour Laws, Associate Professor
UGC-NET (Management) ICCMRT, Lucknow
Assistant Professor, ICCMRT
Lucknow

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(Since 2011)
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 Preface
I am very glad to present this book for all aspirants of various
competitive exams with the special emphasis on the UGC –NET
exam for the subjects Human Resource Management, Industrial
Relations/ Labor Laws/ Social Welfare also useful to HRM part of
PSU’s Exam. This book is very useful for PSU’s management trainee
exam with HR/personnel as a specialized subject. I believe that these
self-learning chapters will provide ample support in cracking any exam
of alternative Choices; explanations are given in such a manner that a
student can learn the difficulty and more concepts too. The one liner
facts on HRM, IR and O.B shall be helpful for quick revision and are
most important too.
This book will provide a lot of guidance to students. I have selected
previous year asked questions of UGC exams and memory based
questions of various PSU’exam of HR discipline and given them a
place in this present book. I am very thankful to Goddess Ma Sarswati;
it’s only her blessings that I am able to publish this book. I am expecting
yours valuable suggestions for any improvements or appreciation.
I dedicated this book to my mother Smt. Krishna Pandey; her
constant blessings always encourage me to achieve extra mile stone.
My friend Shubham Mishra is always a source of inspiration for me.
A special thanks to Dr Tarun Singh Gangwar Associate Professor,
ICCMRT Lucknow, as his constant encouragement is valuable for me.
All well-wishers are my strength. I am wishing all students, corporate
learners and scholars for their best Success. I always believe that only
hard work can give an amazing success. I also request to all readers
if this book contains any wrong facts or misprinting then please
write me at akpexam07@gmail.com , I will heartedly welcome your
suggesstions.
So keep reading this book. All the best!

(ABHISHEK KUMAR PANDEY)

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 About The Author
Author has completed his graduation (B.Sc maths) from Campus,
University of Gorakhpur and MBA from Institute of environment &
management, Lucknow affiliated to Dr A. P.J Abdul Kalam Technical
University (Formerly UPTU) Lucknow with specialization HRM
& Marketing. He has also qualified UGC-NET exam and completed
Diploma in Labour Laws. He has more than four year of experience
of teaching & Consultancy. He has two research paper publications.
He has also presented papers in National Seminars. His interest area
is Human resource management, Organizational behavior, Labour
Laws & Industrial Relations and General Management. Author has
good experience of competitive exams like PSU’s, Banking HR
officers exams, UPSC, State PSC and UGC-NET Exams so this book
is presented for the Aspirants of Various exam preparing with Subject
HRM, OB & Labour Laws. His aim is to write most useful books for
aspirants in management science domain.

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 About The Book
The book is written keeping in view the Syllabus & Question Patterns
of various competitive exams with specialization to the Subjects
Human resources Management, Organizational Behaviour and Labour
Laws. The Book Contains objectives type questions with Answers &
explanation of typical facts and concepts. It also includes Chapters of
One liner facts and brief concepts in HRM, OB and Labour Laws.
Books is very useful for UGC NET Exam and also dream Jobs
of PSU’s like Coal India, NTPC, SAIL, ONGC, PSU’s Banks,
Corporate Exams in HRM & Other organizations. The memory
based and other actual relevant previous year questions of PSU’s
Management trainees Exam & UGC-NET has been given place in
this book. Including Multiple Choice Questions (MCQ), one liners
and explanations, this book contains almost thousands of tricky
facts and concepts. Author is very much assured of Success of the
Aspirants. In the words of Author “This book will be useful for everyone
who has interest in HRM, OB and Labour Laws including faculties,
students and Corporate HR Professional”. This Quick Mentor book
contains almost thousands of most important facts of HRM, Labour
Laws & OB.
Proposed BOOK BY THE AUTHOR: The Next Book proposed
by The Author is ‘Human Resource Management & Organisational
Behaviour’ with Case Approach: A Clear modern Understanding.

vii

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 Table of Contents

Contents Page
Numbers
Self-Learning Chapter - 1 1
Self-Learning Chapter - 2 29
Self-Learning Chapter - 3 52
Self-Learning Chapter - 4 63
Self-Learning Chapter - 5 72
Self-Learning Chapter - 6 82
Self-Learning Chapter - 7 92
One Liners facts on Human Resource Management 102
One Liners Facts on Organisational Behaviour 111
One Liners Facts On Labour Laws/Industrial Relations 121
References 135

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 CBSE/UGC-NET/JRF Human Resource Management & Labour Welfare

SELF-LEARNING CHAPTER - 1
___________________________________________________________

1. Term MBE stands in Management for,

(a) Management By Expression
(b) Management By Exit
(c) Management By Exhaustion
(d) Management By Exception
1. Ans: (d)
This Concept tells that only crucial and exceptional work should
be given to Top Management as their time is very important for other
more important work than small work or issues.
2. The welfare is a state of living of an individual or a group in desirable
relation to the environment, animate and inanimate, according to
(a) K.N.Vaid
(b) A.M.Sharma
(c) M.V Moorthy
(d) S.D Punekar
2. Ans: (c)
The book ‘Principles of Labor Welfare’ was written By
M.V.Moorthy in 1968.In this book, he listed the welfare facilities in
two broad group one is welfare measures inside the work place and
second welfare practices outside the workplace also he defined welfare
is a state of living of an individual or a group in desirable relation to the
environment, animate and inanimate.
3. Match the followings:
Welfare Funds Years
(a) Coal mines welfare fund Act (i) 1973
(b) The Mica Mines Welfare Funds Act (ii) 1961
(c) The iron ore mines labor welfare fund (iii) (iii) 1946
(d) The Lime Stone and Dolomite Mines Labor
Welfare Act (iv) 1947

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 Abhishek Kumar Pandey

Codes:
(a) (b) (c) (d)
(A) (ii) (iii) (i) (iv)
(B) (iv) (ii) (iii) (i)
(C) (ii) (iv) (i) (iii)
(D) (iv) (iii) (ii) (i)
3. Ans :(d)
Coal mines welfare fund Act, 1947; is an Act to make better
provision for financing measures for promoting welfare of labor
employed in coal-mining Industry. The Mica Mines Welfare Funds
Act; 1946 is An Act to constitute a fund for the financing of activities
to promote the welfare of labor employed in the mica mining industry.
The Limestone and Dolomite Mines Labor Welfare Fund Act,
1972, is An Act to provide for the levy and collection of a cess on
limestone and dolomite for the financing of activities to promote the
welfare of persons employed in the limestone and dolomite mines.
4. Which of the following recommended to the government of India
to consider making social security as a fundamental human right?
(a) The labor investigation committee
(b) The royal commission on labor
(c) The first national commission on labor
(d) The second national commission on labor
Ans: (b)
The Whitley or Royal commission on labor was appointed
in 1929, the social securityas a fundamental rights with the tune of
this Act. The first National Commission on Labor was set up on 24
December 1966 under the Chairmanship of Justice P.B Gajendragadkar.
The Commission submitted its report in August, 1969 after detailed
examination of all aspects of labor problems, both in the organized
and unorganized sectors. The second National Commission on Labor
(NCL) was set up in 2002 under the chairmanship ofRavindraVerma.
5. Which of the following can’t be regarded as a statutory welfare
facility for factory workers?
(a) Canteen
(b) Housing
(c) Shelter, Restrooms and Lunch Rooms.
(d) First Aid Box
5. Ans: (b)

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 CBSE/UGC-NET/JRF Human Resource Management & Labour Welfare

As per the section-46 of Factories Act, 1948 canteen is a statutory

welfare facility also in section section-45 provisions of First-aid
appliances and in section-47 Shelters, rest rooms and lunch rooms. In
every factory wherein more than 150 workers are ordinarily employed,
adequate and suitable shelters or rest rooms and a suitable lunch room
should be provides to workers by employer. As per the section 15 of
the plantation labor Act 1951, it shall be the duty of every employer
to provide and maintain necessary housing accommodation.
6. The seven approaches to philosophy or theory of labour welfare
were first identified by
(a) K.N. Vaid
(b) M.V. Moorthy
(c) A.M. Sharma
(d) I.D. Punekar
6. Ans: (b)
The book ‘Principles of Labor Welfare’ was written By
M.V.Moorthy in 1968.In this book, he listed the welfare facilities in
two broad group one is welfare measures inside the work place and
second welfare practices outside the workplace also he defined welfare
is a state of living of an individual or a group in desirable relation
to the environment, animate and inanimate. The seven theories are
mainly religion, functional, policing, public relations, placating,
philanthropic, and paternalistic theory.
7. The term Scientific Management was for the first time by
(a) Louis Brandeis
(b) F W Taylor
(c) Max weber
(d) Robert Owen
Ans: (a)
8. Match the following
(a)Royal commission on labour 1. Rege
(b)First National Labour Commission 2. Whitley
(c)Second National Labour Commission 3. Gadkar
(d)Labour Investigation Committee 4. RavindraVerma
Codes:
1 2 3 4
a) b a d c
b) a b c d

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 Abhishek Kumar Pandey

c) d a b c
d) c d a b
Ans: (c)
9. Which of the following cannot be regarded as extra mural labor
welfare facility?
(a) Canteen
(b) Housing
(c) Hospital
(d) Playground
9. Ans: (a)
Canteen is an Intramural facility. Extra-mural facilities cover
the services and facilities provided outside the factory. An Intra
mural welfare amenity consists of facilities provided within the
factory
10. Who among the following is not regarded as welfare agency for
factory workers?
(A) Employer
(B) Trade Unions
(C) N.G.Os
(D) State and Central Government
10. Ans: (c)
In tripartite mechanism Of Industrial Relations, Employers’,
employees and Government are the main part of the IR system and
each of these have their trademarks for the welfare of the employee
and promoting industrial democracy.
11. Housing is a statutory welfare under which of the following
Acts?
(A) Factories’ Act
(B) Mines Act
(C) Shops and Commercial Establishment Act
(D) Plantation Labor Act
11 Ans: (d)
As per the section 15 of the plantation labor Act 1951, it shall be
the duty of every employer to provide and maintain necessary housing
accommodation.

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 CBSE/UGC-NET/JRF Human Resource Management & Labour Welfare

12. What has been the impact of Globalization in India on State

Regulation of Wages?
(A) Scope of State Regulation has increased.
(B) Scope of State Regulation has decreased.
(C) There has been no impact.
(D) None of the above
12. Ans: (b)
Two claims about the impact of globalisation have been made in
India. One, made by the corporate lobby, is that globalization requires
the dilution of existing labor standards and, a forteriori, strong resistance
to any strengthening of workers’ rights, since these are an obstacle to
competitiveness in the global economy as well as to attracting foreign
investment. The other, made by mainstream Left parties and their
trade unions, is that globalization, through the agency of transnational
corporations, the World Bank, IMF and WTO, is driving the dilution of
labor standards and assault on workers’ rights. Coming from seemingly
opposite quarters, these claims converge on one common point:
globalization inevitably leads to an attack on workers’ rights.
13. Arrange the following according to their comparative position from
lowest to the highest:
(a) Statutory Minimum Wage
(b) Subsistence Wage
(c) Living Wage
(d) Fair Wage
(A) (a) (c) (b) (d)
(B) (b) (d) (a) (c)
(C) (b) (a) (d) (c)
(D) C (d) (b) (a)
13. Ans: (a)
A living wage is the minimum income necessary for a worker to
meet their needs that are considered to be basic. Subsistence, which
refers to a biological minimum these needs include shelter (housing)
and other incidentals such as clothing and nutrition. Minimum wage
is set by law to meet the requirements to have a basic quality of life
and leaves the family to rely on government programs for additional
income. Fair wage is that level of wage that not just maintains a level
of employment, but seeks to increase it keeping in perspective the
industry’s capacity to pay

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 Abhishek Kumar Pandey

14. Which of the following statements appear to be correct?

(A) Wage differential is desirable for the growth and development of
the society.
(B) There should be no wage differential in the country.
(C) The state through regulation of wages can eliminate wage
differentials.
(D) None of the above
14. Ans: (c)
As per our constitution it is the duty of state to watchdog about
equal remuneration both for male as well as female workers.
15. Match the following:
Theories of Wages Propounder
(a) SubsistenceTheory (i) Karl Marx
(b) Wage Fund Theory (ii) Francis Walker
(c) Residual Claimant Theory (iii) J.S. Mill
(d) Surplus Value Theory (iv) David Ricardo
Codes:
(a) (b) (c) (d)
(A) (iii) (iv) (i) (ii)
(B) (iv) (iii) (ii) (i)
(C) (ii) (i) (iii) (iv)
(D) (i) (iii) (iv) (ii)
15. Ans: (b)
Subsistence theories emphasize the supply aspects of the labor
market while neglecting the demand aspects it was given by David
Ricardo. Wage-fund theory was first suggested by Adam Smith when
he intimated that a store of funds was available out of which wages could
be paid, J.S Mill has also added more concepts to wage fund theory.
The residual-claimant theory of wages, originated by the American
economist Francis A. Walker, held that wages were the remainder of
total industrial revenue after rent, interest, and profit (which were
independently determined) were deducted. In Marx’s estimation, it
was not the pressure of population that drove wages to the subsistence
level but rather the existence of large numbers of unemployed workers.
Marx blamed unemployment on capitalists.
16. Which of the following is not a Characteristic of labor market?
(A) Same wage rate
(B) More sellers than buyers

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 CBSE/UGC-NET/JRF Human Resource Management & Labour Welfare

(C) Heterogeneity in labor Services

(D) Limited mobility of labor
16. Ans: (a)
Same Wage Rate cannot be found in labor market due to imperfect
mobility of workforce.
17. Which of the following factors affect Supply of labor?
(A) Population and Labor Force Participation Rate
(B) Skill, Experience and Job Qualification
(C) Mobility of Labor and Organization of Buyers and Sellers
(D) All the above
17. Ans: (d)
18. Which of the following cannot be said to be a type of wage
differential?
(A) Occupational Wage Differential
(B) Geographical Wage Differential
(C) Inter-industry Wage Differential
(D) National Wage Differential
Answer: (d)
Wage differential as per skill (or occupation) and by industry
known as occupational. Geographic differentials are market-driven
pay variations between locations. Inter-industry wage differentials
have implications for the types of tasks and duties that are expected
to be most closely associated with wage differences among industries.
National Wage Differential is not a type of wage differential.
19. Fixing lower retirement age for workers will result in
(A) Increased supply of labour
(B) Reduced supply of labour
(C) Will have no effect on supply of labor
(D) None of the above
19. Ans: c
20. Which of the following industries lead to seasonal unemployment?
(A) Sugar industry
(B) Construction industry
(C) Ice-cream industry
(D) All the above
20 Ans: (d)

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 Abhishek Kumar Pandey

21.Which of the following can be said to be a correct concept of wages?

(A) Wage is a reward.
(B) Wage is compensation.
(C) Wage is the price of labour.
(D) Wage is an incentive to work more.
21. Ans: (c)
22. Tripartite Wage Boards in India followed which of the following
principles while making their recommendations?
(A) Minimum Wage Principle
(B) Fair Wage Principle
(C) Living Wage Principle
(D) None of the above
22. Ans: (b)
Fair wage is that level of wage that not just maintains a level
of employment, but seeks to increase it keeping in perspective the
industry’s capacity to pay. To achieve this in its first session during
November 1948, the Central Advisory Council appointed a Tripartite
Committee of Fair Wage.
23.Karl Marx is said to be the proponent of which of the following
theories of wages?
(A) Subsistence Theory of Wage
(B) Wage Fund Theory
(C) Surplus Value Theory of Wage
(D) Marginal Value Theory of Wage
23. Ans: (c)
In Surplus Value Theory of wages Marx’s estimation, it was not
the pressure of population that drove wages to the subsistence level but
rather the existence of large numbers of unemployed workers. Marx
blamed unemployment on capitalists. Subsistence theories emphasize
the supply aspects of the labor market while neglecting the demand
aspects it was given by David Ricardo. Wage-fund theory was first
suggested by Adam Smith when he intimated that a store of funds
was available out of which wages could be paid, J.S Mill has also
added more concepts to wage fund theory. The marginal revenue
productivity theory of wages also referred to as the marginal revenue
product of labor and the value of the marginal product or VMP is the
change in total revenue earned by a firm that results from employing
one more unit of labor. It is a neoclassical model that determines,

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 CBSE/UGC-NET/JRF Human Resource Management & Labour Welfare

under some conditions, the optimal number of workers to employ at

an exogenously determined market wage rate.
24. Equal Remuneration Act, 1976 was enacted to check –
(A) Occupational wage differentials.
(B) Geographical wage differentials.
(C) Wage differential based on sex.
(D) Inter-industry wage differentials.
24. Ans :(c)
Equal Remuneration Act, 1976 was enacted to check the payment
of equal remuneration to men and women workers and for the
prevention of discrimination, on the ground of sex, against women
in the matter of employment and for matters connected therewith or
incidental thereto.
25. The scheme of workers’ participation in management in industry in
India was introduced through
(A) Code of Discipline in industry
(B) 20-point Economic Programme
(C) Industrial Employment (Standing Orders) Act
(D) None of the above
25. Ans: (a)
To maintain harmonious relations and promote industrial peace, a
Code of Discipline has been laid down which applies to both public
and private sector enterprises. It specifies various obligations for
the management and the workers with the objective of promoting
cooperation between their representatives. The 20 point programme
first initially launched by the Prime minister late Indira Gandhi for
poverty eradication in the year 1975.
26. Outsourcing, when it is done internationally, affects which of the
following in the country which out–Sources:
(A) Supply of labour
(B) Demand for labour
(C) Both supply and demand
(D) None of the above
26. Ans :(c)
In business, outsourcing involves the contracting out of a business
process to another party (compare business process outsourcing).
The term “outsourcing” dates back to at least 1981. Outsourcing

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 Abhishek Kumar Pandey

sometimes involves transferring employees and assets from one firm to

another, but not always.
27. The Chapter on “Annual Leave with Wages” is provided under the
(A) Payment of Wages Act, 1936
(B) Minimum Wages Act, 1948
(C) Factories Act, 1948
(D) Employees’ State Insurance Act, 1948
27.Ans: (c)
As per the section -79 of the factories Act 1948, Every worker
who has worked for a period of 240 days or more in a factory during
a calendar year shall be allowed during the subsequent calendar year,
leave with wages for a number of days calculated at the rate of—(i)
if an adult, one day for every twenty days of work performed by him
during the previous calendar year;(ii) if a child, one day for every
fifteen days of work performed by him during the previous calendar
year.
28. ‘Consumer Price Index’ is taken into account in connection with
which of the following:
(A) Payment of Bonus Act, 1965
(B) Payment of Gratuity Act, 1972
(C) Minimum Wages Act, 1948
(D) Payment of Wages Act, 1936
Ans: (c)
The Minimum Wages Act, 1948 was enacted to safeguard the
interests of workers, mostly in the unorganized sector by providing
for the fixation of minimum wages in certain specified employments.
It binds the employers to pay their workers the minimum wages fixed
under the Act from time to time. Minimum wage and an allowance
linked to the cost of living index and is to be paid in cash, though
payment of wages fully in kind or partly in kind may be allowed in
certain cases. The minimum rate of wages consists of a basic wage and
a special allowance, known as ‘Variable Dearness Allowance (VDA)’
linked to the Consumer Price Index Number. The allowance is revised
twice a year, once in April and then in October.
29. Which of the following Legislations took into account the provision
81 A of the Defense of India Rules?
(A) Trade Unions Act, 1926
(B) Industrial Disputes Act, 1947

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