SECTION-A (5×3=15)

Answer any FIVE questions

All questions carry equal marks
Write short notes on:

1. Managerial functions
Managerial functions of personnel management involve planning ,organizing,
directing, and controlling. All these functions influence the operative functions
Planning
It is a pre-determined course of action. Planning is determination of personnel programs and
changes in advance that will contribute to the organizational goals. In other words, it
involves planning of human resources requirement, recruitment, selection, training etc. It
also involves forecasting of personnel needs, changing values attitude and behavior of
employees and their impact on organization.
Organizing
An organization is a means to an end .It is essential to carry out the determined course of
action In the words of JC Massie, an organization is a structure and a process by which co-
operative group of human beings allocated its task among its members, identifies
relationships and integrates its activities towards common objective. Complex relationships
exist between the specialized departments and the general departments as many top
managers are seeking the advice of personnel manager .Thus, 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. Thus,
direction is an important managerial function in building sound industrial and human
relations besides securing employee contributions. Co-ordination deals with the task of
blending efforts in order to ensure successful attainment of an objective. The personnel
manager has to co-ordinate various managers at different levels as far as personnel
functions are concerned .Personnel management function should also be co-ordinated with
other functions of management like management of material, machine and money.
Controlling
After planning, organizing and directing the various activities of the personnel management,
the performance is to be verified in order to know that thee personnel functions are
performed in conformity with the plans and directions. Controlling also involves checking,
verifying and comparing of the actual with the plans ,identification of deviations if any and
correcting of identified deviations. Thus, action and operation are adjusted to pre-
 2

determined plans and standard through control . Auditing training programs, analyzing labor
turnover records, directing morale surveys, conducting separation interviews are some of
the means for controlling the personnel management function.
2. Selection
The Selection is a process of picking the right candidate with prerequisite
qualifications and capabilities to fill the jobs in the organization.
The selection process is quite lengthy and complex as it involves a series of steps
before making the final selection. The procedure of selection may vary from
industry to industry, company to company and even from department to
department. Every organization designs its selection process, keeping in mind the
urgency of hiring people and the prerequisites for the job vacancy.
3. Interviews
Interviews may be defined as face to face communication method for knowing
some information about the potential job candidates. It is a process of collecting
some information whether the candidates like the job or not. Under these
processes, job seekers invited to appear at the interview board with their relevant
academic and other qualification records. Interview is generally taken by
one member committee several managers at different places, and several persons
sitting in a board.
4. Job Specifications
Also known as employee specifications, a job specification is a written statement of
educational qualifications, specific qualities, level of experience, physical, emotional,
technical and communication skills required to perform a job, responsibilities involved in a
job and other unusual sensory demands. It also includes general health, mental health,
intelligence, aptitude, memory, judgment, leadership skills, emotional ability, adaptability,
flexibility, values and ethics, manners and creativity, etc.
Purpose of Job Specification
 Described on the basis of job description, job specification helps candidates analyze
whether are eligible to apply for a particular job vacancy or not.
 It helps recruiting team of an organization understand what level of qualifications,
qualities and set of characteristics should be present in a candidate to make him or
her eligible for the job opening.
 Job Specification gives detailed information about any job including job
responsibilities, desired technical and physical skills, conversational ability and much
more.
 It helps in selecting the most appropriate candidate for a particular job.
Job description and job specification are two integral parts of job analysis. They define a job
fully and guide both employer and employee on how to go about the whole process of
recruitment and selection. Both data sets are extremely relevant for creating a right fit
between job and talent, evaluate performance and analyze training needs and measuring
the worth of a particular job.
 3

5. Job design
Job design (also referred to as work design or task design) is a core function
of human resource management and it is related to the specification of contents,
methods and relationship of jobs in order to satisfy technological and
organizational requirements as well as the social and personal requirements of
the job holder or the employee.[1] Its principles are geared towards how the
nature of a person's job affects their attitudes and behavior at work, particularly
relating to characteristics such as skill variety and autonomy. [2] The aim of a job
design is to improve job satisfaction, to improve through-put, to improve quality
and to reduce employee problems (e.g., grievances, absenteeism).
6. Case study
The case study is a method used as a part of, off-the-job managerial training and
development. It includes a detailed written description of a stimulated or real life
decision making scenario. Trainees are expected to solve the problems stated in
the case using their decision making ability complemented with teamwork skills.
The aim of the case study method is to develop managerial competency, problem solving
and decision making skills. The trainer will only act as a facilitator to guide the discussion but
will not provide any input in order to encourage the trainees to participate and master their
KSAs.

An advantage of the case study method is that it exposes the trainees to a wide range of
situations, which they otherwise may not have face and thereby allows them test their skills
and develop their strengths. Furthermore this method provokes real life behaviour to help
trainees understand and improve their behaviour in a crisis situation. Another advantage is
that case studies stimulate innovation and ideas which can be further implemented on the
job.

7. Discipline
What exactly is employee discipline? According to the business dictionary, employee
discipline is defined as the regulations or conditions that are imposed on employees by
management in order to either correct or prevent behaviors that are detrimental to an
organization.
The purpose of employee discipline is not to embarrass or degrade an employee. The
purpose is to ensure that an employee performs in a manner that is deemed acceptable by
the organization. Does this mean that employee discipline is nothing more than being
threatened with being fired? Of course it doesn't. Employee discipline is much more than
that.

SECTION-B (3×10=30)
Answer any THREE questions
 4

All questions carry equal marks

8. Discuss the problems of HRM.

Issues such as cash flow, competition, and revenue growth are top of mind for small business
owners and their teams. Along with these challenges comes another area many companies
struggle with: human resource management.
Human resource management (HRM) includes:
 Job design and analysis
 Workforce planning
 Training and development
 Performance management
 Compensation and benefits
 Legal issues
HRM can be a challenge for small businesses especially, which typically don’t have an HR
department to rely on. They may be limited to one HR person, or this responsibility may still
belong to the CEO. Regardless, small business owners need to understand the challenges
facing them so they’re prepared to tackle HR issues as their company, and workforce, grows.
Here are 10 of today’s most common human resource challenges along with solutions you
can quickly implement in your business.
#1 Compliance with Laws and Regulation
Keeping up with changing employment laws is a struggle for business owners. Many choose
to ignore employment laws, believing they don’t apply to their business. But doing so could
mean audits, lawsuits, and possibly even the demise of your company.
Solution:
No matter how large or small your business, it’s important to make sure you’re in
compliance with local, state, and federal labor laws. There are regulations on everything
from hiring practices, to wage payment, to workplace safety. Take a few minutes to read
through the U.S. Department of Labor’s Employment Law Guide.
#2 Management Changes

As a business grows, its strategies, structure, and internal processes grow with it. Some
employees have a hard time coping with these changes. A lot of companies experience
decreased productivity and morale during periods of change.
Solution:
Business owners should focus on communicating the benefits of the change for everyone.
Regular staff meetings are a good place to start. When your team understands the why, how,
and when of the change, they’ll be more likely to get on board.
#3 Leadership Development

A recent study showed more than a third of companies are doing an average job, at best,
at implementing leadership development programs. Thirty-six percent of companies
 5

surveyed in Brandon Hall Group’s State of Leadership Development Study admitted that
their leadership development practices are below average.
Solution:
Leadership development is critical in keeping your management team engaged and
motivated, and prepares them to take on more responsibilities in the future. Make it part of
the culture. Create opportunities for them to use their strengths every day. Accomplishing
goals will motivate them and give them a chance to develop their skills.
#4 Workforce Training and Development

Investing in the training and development of lower-level employees is another common HR

problem. Some businesses have trouble finding the resources to do so. Employees on the
front lines are some of your hardest workers, and may not have the time to take a training
course.
Solution:
Training and development doesn’t have to take a lot of time or money. Recruit managers and
senior leadership in mentoring their subordinate employees. You could also provide online
training courses so people can go at their own pace. Invest in your workforce and you will
have a loyal, productive team.
#5 Adapting to Innovation

Technology is constantly changing. Businesses must be quick to adapt, or risk being left in
the dust by their competitors. The challenge for small business owners is getting employees
to embrace innovation and learn new technology.
Solution:
Communication is critical. With any change, make sure your team understands the why,
when, and how. Set clear goals for the adoption of initiatives, and provide employees with
the training they need to get comfortable with it.
#6 Compensation

Many companies are struggling with how best to structure employee compensation. Small
businesses have to compete not only with businesses of a similar size, but also with
corporations with big payroll budgets. Plus, you have to factor in the cost of benefits,
training, taxes, and other expenses, which can range from 1.5 to 3 times the employee’s
salary.
Solution:
Even though salary is important, it isn’t always the most important factor for job candidates.
Creating a system to reward employees for excellent performance is one way to make up for
a lower salary. In addition, consider offering incentive programs such as profit sharing or
bonuses, which can be a win-win for the employee and the company.
#7 Understanding Benefits Packages
 6

The Affordable Care Act has been a pain point for many small businesses in the past few
years. Rising healthcare costs mean companies must either pass these costs on to
employees, or take a hit to their bottom line. Since good benefits packages can be a deciding
factor for potential hires, understanding them is key.
Solution:
For small business with fewer than 50 employees, there are many options for offering
healthcare benefits. One option is purchasing a plan through the Small Business Health
Options Program (SHOP) marketplace. Doing this gives you the opportunity to take a tax
credit, which can help offset costs.
And don’t forget about benefits such as:
 Unlimited vacation time
 Flex time
 Free snacks
 Wellness programs
 Commuter benefits
These benefits are affordable ways to offer extra perks—and they’re extremely popular with
today’s workforce!
#8 Recruiting Talented Employees

Attracting talent is a huge investment of time and money. It’s difficult for entrepreneurs to
balance between keeping a business running, and hiring the right people at the right time. In
addition, it’s impossible to know whether a candidate will actually be a good fit until they’ve
worked for you for a period of time.
Solution:
One of the best ways to find the right people for your business is to use a staffing company.
They provide temp-to-hire solutions that allow you to try out new employees with little to
no risk. You’ll save time, money, and frustration, and maybe even find a future executive or
business partner.
#9 Retaining Talented Employees

Competition for talented employees is fierce. Startups and small companies don’t have big
budgets for retirement plans, expensive insurance plans, and other costly items that their
larger competitors do—at least, not yet. Employee turnover is expensive and can negatively
impact business growth.
Solution:
Onboarding is highly effective for employee. Research shows having a structured onboarding
process means employees are 58 percent more likely to stay with a company for three years
or more. Read our article on 5 Employee Onboarding Technology Solutions Your Company
Needs to Be Using to learn about your options.
#10 Workplace Diversity
 7

Multiple generations. Ethnic and cultural differences. These are just a few of the many
factors that make workplace diversity a continual challenge for small businesses. The risk of
lawsuits for failing to protect employees from harassment is real.
Solution:
Creating a culture of teamwork and respect will keep the work environment positive and
productive. In addition, implementing a diversity training program is a must. Employers are
responsible for setting standards of behavior in the workplace. Standards and a system of
accountability should be set up early on.
Why Effective HR Management is Necessary

Employees are a company’s best asset. Small businesses that invest in their teams will enjoy
faster growth and outpace their competition.
Here are just a few more reasons to focus on effective HRM:
 Creates a unique workplace culture
 Emphasizes the rules, expectations, and standards for the workplace
 Helps everyone understand workplace diversity
 Facilitates communication between HR and employees
 Strengthens the importance of training and development
 Eliminates employee uncertainty
It’s important to know common HR issues so you can put the right policies and procedures in
place now. Understanding the complexities of employee benefits, employment laws,
leadership development, and other areas will help you stay ahead of the competition and
meet your business goals this year, and in the years to come.

9. Explain the factors influencing recruitment.

INTERNAL FACTORS
The internal factors likewise term as endogenous elements are the components inside the
association that impact selecting in the organisation
The internal forces i.e. the factors which can be controlled by the organization are:
1. Recruitment Policy
The recruitment policy of the organization i.e. recruiting from internal sources and external
also affect the recruitment process. The recruitment policy of an organization determines
the destinations or enlistment and gives a structure to usage of recruitment program.

Factors Affecting Recruitment Policy

 Need of the organization.
 Organizational objectives
 Preferred sources of recruitment.
 Government policies on reservations.
 Personnel policies of the organization and its competitors.
 Recruitment costs and financial implications.
 8

2. Human Resource Planning

Effective human resource process and procedure helps in fixing the loops present in the
existing manpower of the organization. This also helps in filter the number of employees to
be recruited and what kind qualification and skills they must possess.
3. Size of the Organization
The size of the organization affects the recruitment process. If the organization is planning to
increase its operations and expand its business, it will think of hiring more personnel, which
will handle its operations.
4. Cost involved in recruitment
Recruitment process also count the cost to the employer, thats why organizations try to
employ/outsource the source of recruitment which will be cost effective to the organization
for each candidate.
5. Growth and Expansion
Organization will utilize or consider utilizing more work force in the event that it is growing
its operations.
EXTERNAL FACTORS
The external forces are the forces which cannot be controlled by the organization. The major
external forces are:
1. Supply and Demand
The availability of manpower both within and outside the organization is an essential factor
in the recruitment process.
2. Labour Market
Employment conditions where the organization is located will effected by the recruiting
efforts of the organization.
3. Goodwill / Image of the organization
Image of the firm is another factor having its effect on the Different government controls
forbidding separation in contracting and work have coordinate effect on enlistment
practices. As taken Example, Govt. of India has the convention of reservation in work for
booked standings/planned clans, physically Disabled and so on. Additionally, exchange
associations have the significant part in enrollment. This limits management freedom to
select those individuals who can be the best performers.This can work as a potential
constraint for recruitment. A company with positive image as an employer able to easier to
attract and retain employees than an organization with negative image.
Organisations actions and activities like good public relations, public service like,charity,
contruction and developement roads, public parks, hospitals education and schools help
earn image or goodwill for organization.
4. Political-Social- Legal Environment
Different government controls forbidding separation in contracting and work have
coordinate effect on enlistment practices.
 9

5. Unemployment Rate
The Element that influence the availability of applicants is the economy growth rate . At the
point when the organization isn't making new jobs, there is frequently oversupply of
qualified work which thusly prompts unemployment.
6. Competitors
The recruitment policies and procedure an of the competitors also affect the recruitment
function of the organizations.Time to time the organizations have to change their
recruitment policies and manuals according to the policies being followed by the
competitors.
Recruitment is one of the main departments which place the right candidates to the right
job. The recruiters should identify the best candidates from different sources and job sites.
Recruiters have to identify the problems faced during recruitment and find an alternative to
make work efficiently which can fulfil recruitment goal on time .
10. Describe the limitations of selection.
(1) Interview cannot judge the skill and the ability of a candidate for the job. Interview can
test only his personality.
(2) Success of interview depends on the interviewer also. Interviewer is always not an expert
of the situation or of the job to be offered and therefore he may not be in a position to
extract maximum information from the candidate which is one of the purposes of the
interview.
(3) The technique of interview is not free from bias—The result of interview depends on the
personal judgment of the interviewer. The result of interview is decided on the basis of
personal judgment of the interviewer which is not always correct. Sometimes interviewer
forms a particular view about a candidate which deviates from the objective of purposeful
exchange of meanings.
(4) Sometimes interviewer confuses the candidate—Sometimes, the interviewer has not
been an expert of the situation and asks the questions of the candidate only to confuse him
or to defeat him and not to get the maximum information from him. The questions are
directed to the interviewee in such a fashion, as to allow him no time to answer.
(5) Interview is a costly technique—An interview involves the time consuming and expensive
technique.

11. Discuss the guidelines for job descriptions.

A best practice in Human Resources is to have job descriptions for all staff positions.
Job descriptions serve as the basis for a number of functions, including recruiting,
selection, training, career planning, performance evaluation, promotions, transfers, job
evaluation and legal purposes. Job descriptions also provide a standardized format of
job duties and qualifications for each position. In addition, job descriptions help those
interested in other positions to know what qualifications and experience are needed to
advance to that position.
 10

A job description enables someone who knows little or nothing about the job to read
the description and quickly understand the nature, scope and requirement of the job as
well as how the job impacts GVSU. As you write the description, describe the job in
general terms and describe the job as it exists now, not how it may change in the
future. Describe only permanent responsibilities, not occasional or temporary duties.
Avoid abbreviations and acronyms. Write the description so that someone unfamiliar
with the department can understand it. This job description indicates in general the
nature and levels of work, knowledge, skills, abilities and other essential functions
expected. It's not designed to contain a comprehensive list of responsibilities or initiate
a title and/or salary change request. In designing the description, the staff member
must refrain from overstating or inflating responsibilities.
Essential Functions A job function is essential when performance of the function is the
REASON the job exists. List the functions in order of importance. Functions can include
a grouping of tasks that constitute one major, distinct set of activities. Essential
functions are those that the incumbent must be able to perform. You can tell if the
responsibilities are essential if they meet the following criteria:
 The job exists primarily to perform the responsibilities
 If the responsibilities are not done, the results for the university will be serious
 The time spent performing the responsibilities is significant (more than 10%).
Use brief and concise sentences or phrases. Readers should be able to understand each
responsibility without further clarification. Begin each sentence with a present tense
action verb such as Develops, Monitors, Negotiates, Supervises, Manages, Leads,
Responsible for
Non-Essential Functions A non-essential function is not mandatory to the existence of
the job.
Required Education The minimum formal education, certifications and licenses
required to perform the job functions.
Preferred Education - Education beyond the required education which would be
desirous but not required to perform the job functions.
Required Experience The minimum work related experience required to perform the
job.
Preferred Experience Work related experience above the required experience that
would be desirous but not required to perform the job functions.
12. Explain the disciplinary procedure followed in Indian industry.
The disciplinary procedure involves the following steps:
a. Preliminary Investigation:
First of all, a preliminary inquiry should be held to find out whether a prima facie case of
misconduct exists.
b. Issue of a Charge-sheet:
Once the prima facie case of misconduct is established, charge sheet is issued to the
employee. Charge sheet is merely a notice of the charge and provides the employee an
 11

opportunity to explain his conduct. Therefore, charge sheet is generally known as a show
cause notice.
In the charge sheet, each charge should be clearly specified. There should be a separate
charge for each allegation and charge should not relate to any matter which has already
been decided upon. The charges so framed should be communicated to the individual
along with the statement of allegations on which the charges are based.
c. Suspension Pending Enquiry:
Depending on the gravity of charges, an employee may be suspended along with serving
him the charge sheet. The various circumstances which may warrant suspension of an
individual are:
i. When disciplinary proceeding is pending or contemplated.
ii. When engaged in the activities prejudicial to the interest or security of the
state.
iii. Where a case in respect of any criminal offence is under investigation,
inquiry or trial.
iv. Where continuance in office will prejudice investigation/ inquiry/trial.
v. When the presence of the employee in office is likely to affect discipline.
vi. When his continuous presence in office is against the wider public interest.
vii. Where a prima face case has been established as a result of criminal or
departmental proceedings leading to the conviction, revival, dismissal, etc.
viii. In case of the following acts of misconduct:
 Moral Turpitude
 Corruption, embezzlement
 Serious negligence in duty resulting in loss
 Desertion of duty
 Refusal or failure to carry out written orders
According to the Industrial Employment (Standing Orders) Act, 1946, the suspended
worker is to be paid subsistence allowance equal to one-half of his wages for the first
ninety days of suspension and three-fourths of the wages for the remaining period of
suspensions, if the delay in the completion of disciplinary proceedings is not due to the
worker’s own conduct.
d. Notice of Enquiry:
In case the worker admits the charge, in his reply to the charge sheet, without any
qualification, the employer can go ahead in awarding punishment without further inquiry.
But if the worker does not admit the charge and the charge merits major penalty, the
employer must hold an enquiry to investigate into the charges. Proper and sufficient
advance notice should be given to the employee indicating the date, time and venue of
the enquiry so that the worker may prepare his case.
e. Conduct of Enquiry:
 12

The enquiry should be conducted by an impartial and responsible officer. He should

proceed in a proper manner and examine witnesses. Fair opportunity should be given to
the worker to cross-examine the management witnesses.
f. Recording the Findings:
On the conclusion of the enquiry, the enquiry officer must record his findings and the
reasons thereof. As far as possible, he should refrain from recommending punishment and
leave it to the decision of the appropriate authority.
g. Awarding Punishment:
The management should decide the punishment purely on the basis of findings of the
enquiry, past record of the worker and gravity of the misconduct.
h. Communicating Punishment:
The punishment awarded to the worker should be communicated to him in written and
the earliest available opportunity. The letter of communication should contain reference
to the charge sheet, the enquiry and the findings. The date from which the punishment is
to be effective should also be mentioned.
SECTION-C (1×15=15)
13. Explain the functions of Human resource management.
Human Resource Management is a function within an organization which focuses mainly on
the recruitment of, management of, and providing guidelines to the manpower in a
company. It is a function of the company or organization which deals with concerns that are
related to the staff of the company in terms of hiring, compensation, performance, safety,
wellness, benefits, motivation and training.

Human Resource Management is also a premeditated approach to manage people and the
work culture. An efficient human resource management enables the workforce of an
organization to contribute efficiently and effectively towards the overall achievement of a
company’s goals and objectives.

The traditional method of human resource management involved planned exploitation of

staffs. This new function of human resource management involves HRM Metrics and
measurements and strategic direction to display value. Under the influence of giving away
the traditional method, HRM has got a new terminology called Talent Management.

Human Resource Management functions can be of three types like Operative, Managerial,
and advisory. Let’s see them one by one.

Sponsored

Functions of Human Resource Management

☆ Operative Functions
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Recruitment: This is the most challenging task for any HR manager. A lot of attention and
resources are required to draw, employ and hold the prospective employees. A lot of
elements go into this function of recruitment, like developing a job description, publishing
the job posting, sourcing the prospective candidates, interviewing, salary negotiations and
making the job offer.
Training and Development: On the job training is the responsibility of the HR department.
Fresher training may also be provided by some companies for both new hires and existing
employees. This Fresher training is mainly done to make the employees up to date in their
respective areas as required by the company. This function makes the employees
understand the process and makes it easy for them to get on their jobs with much ease.
During the process of the training and development, the results are monitored and
measured to find out if the employees require any new skills in addition to what he/she has.
Professional Development: This is a very important function of Human Resource
Management. This function helps the employees with opportunity for growth, education,
and management training. The organization undertakes to sponsor their employees for
various seminars, trade shows, and corporal responsibilities. This, in turn, makes the
employees feel that they have been taken care by their superiors and also the organization.
Compensation and Benefits: A company can attain its goals and objectives if it can
acclimatize to new ways of providing benefits to the employees. Some of the benefits given
by companies are listed below for our understanding:
Working hour flexibility
Extended vacation
Dental/Medical Insurance
Maternal/Paternal Leave
Education Reimbursement for children
Performance Appraisal: The employees of any organization will be evaluated by the HR
department as per the performance. This function of Human Resource Management is to
help the organization in finding out if the employee they have hired is moving towards the
goals and objectives of the organization. On the other hand, it also helps the company to
evaluate whether the employees needs improvement in other areas. It also helps the HR
team in drawing certain development plans for those employees who have not met the
minimal requirements of the job.
Ensuring Legal Compliance: To protect the organization this function plays a crucial role. The
HR department of every organization should be aware of all the laws and policies that relate
to employment, working conditions, working hours, overtime, minimum wage, tax
allowances etc. Compliance with such laws is very much required for the existence of an
organization.

☆ Managerial Functions
 14

Planning: This function is very vital to set goals and objectives of an organization. The
policies and procedures are laid down to achieve these goals. When it comes to planning
the first thing is to foresee vacancies, set the job requirements and decide the recruitment
sources. For every job group, a demand and supply forecast is to be made, this requires an
HR manager to be aware of both job market and strategic goals of the company. Shortage
versus the excess of employees for that given job category is determined for a given period.
In the end, a plan is ascertained to eliminate this shortage of employees.
Organizing: The next major managerial function is to develop and design the structure of the
organization. It fundamentally includes the following:
Employees are grouped into positions or activities they will be performing.
Allocate different functions to different persons.
Delegate authority as per the tasks and responsibilities that are assigned.
Directing: This function is preordained to inspire and direct the employees to achieve the
goals. This can be attained by having in place a proper planning of career of employees,
various motivational methods and having friendly relations with the manpower. This is a
great challenge to any HR manager of an organization; he/she should have the capability of
finding employee needs and ways to satisfy them. Motivation will be a continuous process
here as new needs may come forward as the old ones get fulfilled.
Controlling: This is concerned with the apprehension of activities as per plans, which was
formulated on the basis of goals of the company. The controlling function ends the cycle and
again prompts for planning. Here the HR Manager makes an examination of outcome
achieved with the standards that were set in the planning stage to see if there are any
deviations from the set standards. Hence any deviation can be corrected on the next cycle.

☆ Advisory Functions
Top Management Advice: HR Manager is a specialist in Human Resource Management
functions. She/he can advise the top management in formulating policies and procedures.
He/she can also recommend the top management for the appraisal of manpower which
they feel apt. This function also involves advice regarding maintaining high-quality human
relations and far above the ground employee morale.
Departmental Head advice: Under this function, he/she advises the heads of various
departments on policies related to job design, job description, recruitment, selection,
appraisals.
14. Discuss the job evaluation methods followed in Indian industry.
A job evaluation is a systematic way of determining the value/worth of a job in relation
to other jobs in an organization. It tries to make a systematic comparison between jobs
to assess their relative worth for the purpose of establishing a rational pay structure.
Job evaluation needs to be differentiated from job analysis. Job analysis is a systematic
way of gathering information about a job. Every job evaluation method requires at least
some basic job analysis in order to provide factual information about the jobs
 15

concerned. Thus, job evaluation begins with job analysis and ends at that point where
the worth of a job is ascertained for achieving pay equity between jobs and different
roles.

Contents
1 Process
1.1 Installing the programme
1.2 Reviewing periodically
2 Methods
2.1 Ranking method
2.2 Classification method (Grading method)
2.3 Factor comparison method or Point method
2.4 Market Pricing
3 Merits and demerits
4 Vendors
5 Limitations
6 Concept of job design
7 Techniques for designing jobs
7.1 Job simplification
7.2 Job enlargement
7.3 Job rotation
7.4 Job enrichment
8 References
Process
The process of job evaluation involves the following steps:

Gaining acceptance: Before undertaking job evaluation, top management must explain
the aims and uses of the programme to managers, emphasizing the benefits. Employees
and unions may be consulted, depending on the legal and employee relations
environment and company culture. To elaborate the program further, presentations
could be made to explain the inputs, process and outputs/benefits of job evaluation.
Creating job evaluation committee: It is not possible for a single person to evaluate all
the key jobs in an organization. Often a job evaluation committee consisting of
experienced employees, union representatives and HR experts is created to set the ball
rolling.
Finding the jobs to be evaluated: Every job need not be evaluated. This may be too
taxing and costly. Certain key jobs in each department may be identified. While picking
up the jobs, care must be taken to ensure that they represent the type of work
performed in that department, at various levels.
 16

Analysing and preparing job description: This requires the preparation of a job
description and also an analysis of job specifications for successful performance. See
job analysis.
Selecting the method of evaluation: The method of evaluating jobs must be identified,
keeping the job factors as well as organisational demands in mind. Selecting a method
also involves consideration of company culture, and the capacity of the compensation
and benefits function or job evaluation committee.
Evaluating jobs: The relative worth of various jobs in an organisation may be
determined by applying the job evaluation method. The method may consider the
"whole job" by ranking a set of jobs, or by comparing each job to a general level
description. Factor-based methods require consideration of the level of various
compensable factors (criteria) such as level and breadth of responsibility, knowledge
and skill required, complexity, impact, accountability, working conditions, etc. These
factor comparisons can be one with or without numerical scoring. If there is numerical
scoring, weights can be assigned to each such factor and scores are associated with
different levels of each factor, so that a total score is determined for the job. All
methods result in an assigned grade level.
Installing the programme
Once the evaluation process is over and a plan of action is ready, management must
explain it to employees and put it into operation.

Reviewing periodically
In the light of changes in environmental conditions (technology, products, services, etc.)
jobs need to be examined closely. For example, the traditional clerical functions have
undergone a rapid change in sectors like banking, insurance and railways, after
computerisation. New job descriptions need to be written and the skill needs of new
jobs need to be duly incorporated in the evaluation process. Otherwise, employees may
feel that all the relevant job factors - based on which their pay has been determined -
have not been evaluated properly.

For job evaluation to be practicable it is necessary:

that jobs can be easily identified

that there are sufficient differences between different jobs; and
that agreements know the relative importance or worth of different jobs can be
negotiated between the enterprise and its employees and/or their representatives.
Methods
There are primarily three methods of job evaluation: (1) ranking, (2) classification, (3)
Factor comparison method or Point method. While many variations of these methods
exist in practice, the three basic approaches are described here.
 17

Ranking method
Perhaps the simplest method of job evaluation is the ranking method. According to this
method, jobs are arranged from highest to lowest, in order of their value or merit to the
organization. Jobs can also be arranged according to the relative difficulty in performing
them. The jobs are examined as a whole rather than on the basis of important factors in
the job; the job at the top of the list has the highest value and obviously the job at the
bottom of the list will have the lowest value. Jobs are usually ranked in each
department and then the department rankings are combined to develop an
organizational ranking. The variation in payment of salaries depends on the variation of
the nature of the job performed by the employees. The ranking method is simple to
understand and practice and it is best suited for a small organization. Its simplicity
however works to its disadvantage in big organizations because rankings are difficult to
develop in a large, complex organization. Moreover, this kind of ranking is highly
subjective in nature and may offend many employees. Therefore, a more scientific and
fruitful way of job evaluation is called for.

Classification method (Grading method)

According to this method, a predetermined number of job groups or job classes are
established and jobs are assigned to these classifications. This method places groups of
jobs into job classes or job grades. Separate classes may include office, clerical,
managerial, personnel, etc. Following is a brief description of such a classification in an
office.

Class I - Executives: Further classification under this category may be Office Manager,
Deputy office manager, Office superintendent, Departmental supervisor, etc.
Class II - Skilled workers: Under this category may come the Purchasing assistant,
Cashier, Receipts clerk, etc.
Class III - Semiskilled workers: Under this category may come Stenotypists, Machine-
operators, Switchboard operator etc.
Class IV - Unskilled workers: This category may comprise peons, messengers,
housekeeping staff, Daftaris[clarification needed], File clerks, Office boys, etc.
The job grading method is less subjective when compared to the earlier ranking
method. The system is very easy to understand and acceptable to almost all employees
without hesitation. One strong point in favour of the method is that it takes into
account all the factors that a job comprises. This system can be effectively used for a
variety of jobs. The weaknesses of the Grading method are:

Even when the requirements of different jobs differ, they may be combined into a single
category, depending on the status a job carries.
It is difficult to write all-inclusive descriptions of a grade.
 18

The method oversimplifies sharp differences between different jobs and different
grades.
When individual job descriptions and grade descriptions do not match well, the
evaluators have the tendency to classify the job using their subjective judgements.
Factor comparison method or Point method
This method is widely used and is considered to be one of the reliable and systematic
approach for job evaluation in mid and large size organisations. Most consulting firms
adopt this method, which was pioneered by Edward Hay in 1943. Here, jobs are
expressed in terms of key factors. Points are assigned to each factor after prioritizing
each factor in order of importance. The points are summed up to determine the wage
rate for the job. Jobs with similar point totals are placed in similar pay grades. The
procedure involved may be explained thus:

1. Select key jobs. Identify the factors common to all the identified jobs such as skill,
effort, responsibility, etc.

2. Divide each major factor into a number of sub factors. Each sub factor is defined and
expressed clearly in the order of importance, preferably along a scale.

The most frequent factors employed in point systems are:

(i) Skill (key factor); Education and training required, Breadth/depth of experience
required, Social skills required, Problem-solving skills, Degree of discretion/use of
judgment, Creative thinking

(ii) Responsibility/Accountability: Breadth of responsibility, Specialized responsibility,

Complexity of the work, Degree of freedom to act, Number and nature of subordinate
staff, Extent of accountability for equipment/plant, Extent of accountability for
product/materials;

(iii) Effort: Mental demands of a job, Physical demands of a job, Degree of potential
stress

The educational requirements (sub factor) under the skill (key factor) may be expressed
thus in the order of importance.

3. Find the maximum number of points assigned to each job (after adding up the point
values of all sub-factors of such a job).

This would help in finding the relative worth of a job. For instance, the maximum points
assigned to an officer's job in a bank come to 540. The manager's job, after adding up
 19

key factors + sub factors points, may be getting a point value of say 650 from the job
evaluation committee. This job is now priced at a higher level.

4. Once the worth of a job in terms of total points is expressed, the points are
converted into money values keeping in view the hourly/daily wage rates. A wage
survey is usually undertaken to collect wage rates of certain key jobs in the organization.

Market Pricing
Market pricing is the process for determining the external value of jobs, allowing you to
establish wage and salary structures and pay rates that are market sensitive. Job
matching session is conducted.

Merits and demerits

The point method is a superior and widely used method of evaluating jobs. It forces
raters to look into all key factors and sub-factors of a job. Point values are assigned to all
factors in a systematic way, eliminating bias at every stage. It is reliable because raters
using similar criteria would get more or less similar answers. The methodology
underlying the approach contributes to a minimum of rating error (Robbins p. 361). It
accounts for differences in wage rates for various jobs on the strength of job factors.
Jobs may change over time, but the rating scales established under the point method
remain unaffected. On the negative side, the point method is complex. Preparing a
manual for various jobs, fixing values for key and sub-factors, establishing wage rates for
different grades, etc., is a time consuming process, According to Decenzo and Robbins,
"the key criteria must be carefully and clearly identified, degrees of factors have to be
agreed upon in terms that mean the same to all rates, the weight of each criterion has
to be established and point values must be assigned to degrees". This may be too
taxing, especially while evaluating managerial jobs where the nature of work (varied,
complex, novel) is such that it cannot be expressed in quantifiable numbers.
15. Discuss the problems of performance appraisal in India.
Below you’ll find 9 of the most common errors that occur in the performance
appraisal process, along with some handy advice for how to avoid them.
1. Bias. We all have our biases, whether they come out as a general positive or negative
feeling about something or someone. The trick, of course, is to not let those biases
cloud your approach to the performance appraisal process. Remind yourself that
you’re trying to be as objective as possible about reviewing an employee’s
performance, and your biases can steer the process into a highly subjective
direction. They can also make your appraisal efforts inconsistent across different
employees, and being consistent is a key feature of a process that is fair. Just because
you may not like a person doesn’t mean the evaluation of their performance must
reflect that. Keep it as objective as possible.
 20

2. Stereotyping. This one may feel similar towards bias, but it’s a little bit different. It’s
not so much about liking or disliking someone as just assuming a person fits a certain
mold, whether that stems from the person’s race, gender, ethnic background,
religious beliefs, political views or a host of other characteristics. When you start
applying labels based on a person’s membership in some kind of group, you’re
engaging in stereotyping. Like biases, stereotypes can also be either positive or
negative. What you have to do is look past the labels and really get to know the
person whose performance you’re evaluating.
3. The Halo (or Horns) Effect. Sometimes you’ll have a generally positive or negative
overall feel about an employee, and it’s all too easy to let that general feeling color
your appraisal of specific performance aspects. It’s important to take each criterion
and judge it on the evidence related to that specific criterion. If all the specific
performance aspects are coming out with similar appraisals, stop and check yourself
for the halo or horns effect. Any given employee will probably display areas of
weakness as well as areas of strength, so keep that in mind to avoid coloring the
entire appraisal by an overall impression.
4. Leniency, Central and Severity Tendencies. These three mistakes are all about
distribution errors, meaning the overall distribution of appraisals doesn’t match up
to the classic bell curve. Some appraisers are lenient and score everyone as above
average, while others might score everyone as average, while still others might tend
to score everyone as below average. More than likely, there should be a range of
evaluations where there are some standouts, some poor performers, and some
average performers as well. If all your appraisals are coming out the same, make sure
you’re giving the full range of performance measures adequate consideration.
5. Similarity Error. Birds of a feather do tend to flock together, which is the root of this
mistake. Some managers will automatically give higher scores to employees that are
more like themselves and lower scores to those who are different. Keep in mind that
you’re evaluating their performance and results, not how much they are or are not
like you. Objectivity and respect for diversity are the ways to keep from making this
appraisal error.
6. The Recency Effect. Another common error is when appraisers focus in only on a
short period of time right before an appraisal takes place. If performance appraisals
happen once or twice a year at your organization, it’s important to remember that
you’re evaluating performance over the entire period, not just a small part of it.
Otherwise, you’re not being fair to someone who has done a great job but only
recently begun to falter, or vice versa. Avoiding this error entails having a good
process in place to capture performance information throughout the period being
reviewed.
7. Compare/Contrast Error. It’s also important to keep in mind that you’re not
comparing or contrasting employees against each other. You should be appraising
each individual’s performance against a set of standards and criteria. Contrast error
 21

can bring down scores of good performers because if they are compared against high
performers, the contrast makes them seem less than average when in fact they are
good if they fulfill the specific criteria of what is good.
8. Attribution Error. This is a tricky one because it involves allowing your subjective
opinion on what might have caused certain behaviors or outcomes, and allowing
that to cloud your judgment. Never assume you understand why an employee
behaved a certain way, and don’t let that into your appraisal process. Stick to the
objective criteria that have been laid out and how the employee’s performance
compares to them.
As you can see, the performance appraisal process contains many places where
mistakes and errors can occur. This is why it so important to train your managers
and supervisors on how to engage in a fair and objective appraisal process.

SECTION-D (1×15=15)
Compulsory

16. Critically evaluate the appraisal process being followed in hospital. Suggest
measures which may provide useful for improving the effectiveness of the current
system.

ABSTRACT Health care professional are becoming more involved in performance

management as hospital restructure to increase effectiveness. Although they are hospital
employees, they are subject to performance appraisals because the hospitals are
accountable to patients and the community for the quality of hospital services. The purpose
for having a performance appraisal program in hospital is to monitor employees’
performance, motivate staff and improve hospital morale. The performance of a health care
professional may be appraised by the appropriate departmental manager, by other
professionals in a team or program or by peers, based on prior agreement on expectations.
Appraisal approaches vary. They include behavioural approaches such as rating scales, peer
rating, ranking or nomination and outcome approaches such as management by objectives
and goal setting. Professionals should give and receive timely feedback on a flexible
schedule. Feedback can be provided one-on-one, by a group assessing quality of care or
through an anonymous survey. The British Association of Medical Managers (BAMM, 1999)
has defined appraisal as "the process of periodically reviewing one's performance against
the various elements of one's job". This paper will describe the purpose & developmental
criteria of an appraisal program that will regularly assess the performance of hospital
employee.
The primary reason for having a performance appraisal program is to monitor employees’
performance, motivate staff and improve hospital morale. In the hospital, monitoring
employee performance requires routine documentation, which is accomplished through
 22

completing a performance appraisal form. When employees are aware that the hospital is
mindful of their performance and they could be rewarded with increment and promotions,
they will work harder. Morale is improved when employees receive recognition or reward
for their work. An effective performance appraisal program will assist the hospital in
achieving its goals and objectives. Not only, training needs will be identified and addressed
during a performance appraisal review, but also hidden talent can be discovered as well.
Through identifying these training needs, staff can perform their jobs at the highest level
and be in a better position to address clients’, members’ and customers’ concerns and
questions. A well-developed staff is more likely to be proactive, productive and resourceful,
all of which helps give the hospital a competitive edge, from improved customer relations to
increased profits. In hospital, thus the primary objective of performance appraisal is to
improve the quality of healthcare practice. This is the anticipated result of informing
physicians of possible performance deficiencies, as in the model of the quality improvement
cycle and the educational model of practice reflection (Berwick, D.M., 1989). If serious
performance deficiencies are identified during review by the Physician Performance
Committee, under its existing authority, may require and direct detailed evaluation,
remedial education and subsequent reassessment by methods appropriate to the
deficiencies.
Developing A Performance Appraisal System: Assessment is usually thought of as the
measurement of the performance of an individual against a predefined standard. The vast
majority of doctors are working independently as consultants or principals. In general
practice they do not encounter any form of formal assessment (of knowledge, skills or
performance) from the time that they take up their appointment until retirement. Even with
the adoption of total quality management the developmental and motivational functions of
performance appraisal will continue to be important for the organization's continued
existence. What makes judging another person's performance so difficult? Performance
appraisal involves important aspects of people's sense of who they are and what they can
accomplish – their competence and effectiveness. (Mohrman, A.M., Jr. Resnick-West S.M. &
Lawler, E.E. III, 1989). Fisher (1994) explained that the design and structure of the
performance appraisal system is important to staff and management and of equal
importance to the actual appraisal interview. In the appraisal of performance it is important
to consider who will conduct the appraisal, what performance will be appraised and how
and when it will be appraised. Who Will Appraise Performance? Physicians, nurses, social
workers, clinical pharmacists and other professionals often work interdependently to care
for patients; but during performance appraisal, they have formal input into each other's
appraisals. As hospitals increasingly focus on care delivery processes, physicians may be
appraised by other professionals who share the responsibility for patient care and
outcomes. Ensuring the quality of medical care is the responsibility of both regulatory
bodies and hospitals. The way an organization is structured has a direct bearing on who
conducts the appraisal. Hospitals generally use a combination of functional and, team or
 23

program approaches. In a functional approach, professionals focus on performing their own

functions under the direct supervision of one boss. Teams or programs comprise individual
What Performance Will Be Appraised? The nature of the performance to be evaluated is
ambiguous. In many cases the appraisal considers the practitioner's decisions about when
individual practice patterns take precedence over practice guidelines. The jury is out on how
to develop expectations for practice, but to assess the quality of a department's service such
expectations must be developed. Health Services Research Group (1992) wrote an article in
CMAJ and reviewed the challenge of developing standards, guidelines and clinical policies as
well as defining "quality" in relation to performance. Performance measures often include
both process expectations (how the work gets done) and outcome expectations (the results
of the process). Simon, L. (1992) suggested the following criteria to assess the performance
of department head in the hospital: quality of service in the specific department,
operational efficiency and effectiveness, and budget responsibility and accountability. Acute
Care Hospitals (1991) decided that in addition to evaluating clinical performance of the
hospital employee, appraisers also take into account that employee are expected to work
effectively with other staff; respect bylaws, regulations, policies and procedures; and
participate in committees, staff development activities and continuing education. The
College of Physicians and Surgeons of Alberta (1995) established the Physician Performance
Advisory Committee to establish a process to evaluate physician performance. Extensive
discussions within the committee generated six broad categories of physician performance
attributes - medical knowledge and skills, attitudes and behaviour, professional
responsibilities, practice improvement activities, administrative skills and personal health.
Moorhead and Griffin (1992) described that the process will evaluate work behaviors by
measurement and comparison to previously established standards, recording the results,
and communicating them back to the employee. It is an activity between a manager and an
employee. General Medical Council, London & Royal College of Physicians and Surgeons of
Canada wrote the seven key roles, which are being expected from specialist physician in the
hospital as a permanent employee, in their reports. So any physician can be evaluated on
the basis of these roles.
Conclusions: Health care organizations depend greatly on a professional work force that is
involved in defining its mission and carrying out its strategy. As such organizations become
increasingly concerned with their effectiveness they must pay attention to employee and
physician performance. The main challenges lies in developing performance appraisal
systems are the demand of flexible and appropriate system to the professional staff. This
paper has suggested that performance is improved when outcomes or expectations are
defined, goals are set and timely feedback is given. These principles also apply to physicians,
Nurses and other staff of hospital, particularly as their roles are affected by the restructuring
of health care.