Name : PRASHANT D.

DEVALE

Roll Number : 510932455

Learning Centre : KARROX TECHNOLOGIES LTD,

Andheri

Subject : Human Resource Management

Date Of Submission : 13th June, 2009

Assignment No. : MB0027

 HUMAN RESOURCE MANAGEMENT
MB0027

SET – 1

Q.1 Discuss the difference between personnel

management and Human Resource Management.

Answer –

The genesis of Human Resources Management traces its roots to

the erstwhile Personnel Management that was prevalent in the
companies of a few decades ago. Though the two terms'
Personnel Management' and 'Human Resources Management' are
interchangeably used by most of the authors, there are some
differences between them. Management of Human Resources is a
new field of study embodying behavioral science knowledge
relating to the working of line and staff officials and union leaders
to motivate organizational goals. On the other hand, Personnel
Management is that phase of management which deals with the
effective control and use of manpower. Yoder, Henemen and
others agreed that the HRM is a broad concept which covers many
personnel aspects and include social, professional and individual
enterprise aspects, whereas Personnel Management focuses only
on personnel aspects such as leadership, justice determination,
task specialization, staffing, performance appraisal, etc. HRM is
more growth oriented whereas Personnel Management is slightly
narrow. Human Resource Planning is very vital in HRM. This is
because it leads to the maximum utilization of human resources,
reduces excessive labour turnover and high absenteeism;
improves productivity and aids in achieving the objectives of an
organization. In addition to the above function, HRM emphasizes
on training, an important area of personnel, which covers the
following aspects:
1. Increasing productivity
2. Improving quality
3. Improving organisational climate
4. Ensuring personnel growth etc.
While in practice both pertained to people management
philosophically the approach is vastly different. The expectations
from Personnel management approach is to ‘take care’ of the
people working in a organization, addressing grievances and
complaints formed a large part of the Personnel Management
function. The focus is largely reactive and followed the Theory X
approach that believed that people do not naturally like to work
and need to be coerced to work and often need to be driven to
work. The philosophy is more the ‘stick’ approach rather than
‘carrot’ approach. Employee welfare is of paramount importance
and managing industrial relations as a result of heightened trade
union activity formed the highlights of the Personnel Management
functions. Human Resources Management on the other hand
adopts a proactive approach to managing people and the focus is
on employee development and delight. Hiring the right talent,
providing for ample opportunities for career growth and job
satisfaction are the highlights of this management style. The basic
philosophy is driven by the Theory Y approach where the belief is
that people like to work and do not prefer to be supervised and
made to perform.

Q.2 Explain the Human Resource Planning System.

Answer –

Human Resource Planning System:-

A. Objectives of Human Resource Planning: Human Resource

Planning fulfils individual, organizational and national goals; but,
according to Sikula, "the ultimate mission or purpose is to relate
future human resources to future enterprise needs, so as to
maximise the future return on investment in human resources. In
effect, the main purpose is one of matching or fitting employee
abilities to enterprise requirements, with an emphasis on future
instead of present arrangements."
The objectives may be laid down for a short term (i.e. for one
year).

B. Estimating the Future Organizational Structure or

Forecasting the Manpower Requirements: The management
must estimate the structure of the organization at a given point in
time. For this estimate, the number and type of employees
needed have to be determined. Many environmental factors affect
this determination. They include business forecasts, expansion
and growth, design and structural changes, management
philosophy, government policy, product and human skills mix, and
competition. Forecasting provides the basic premises on which
the manpower planning is built.
Forecasting is necessary for various reasons, such as:

a. The eventualities and contingencies of general economic

business cycles (such as inflation, wages, prices, costs and raw
material supplies) have an influence on the short range and long
run plans of all organizations.
b. An expansion following enlargement and growth in business
involves the use of additional machinery and personnel, and a
reallocation of facilities, all of which call for advance planning of
human resources.
c. Changes in management philosophies and leadership styles.
d. The use of mechanical technology (such as the introduction of
automatic controls, or the mechanization of materials handling
functions) necessitates changes in the skills of workers, as well as
a change in the number of employees needed.
e. Very often, changes in the quantity or quality of products or
services require a change in the organization structure. Plans
have to be made for this purpose as well.

C. Auditing Human Resources: Once the future human

resource needs are estimated, the next step is to determine the
present supply of manpower resources. This is done through what
is called "Skills Inventory". A skills inventory contains data about
each employee's skills, abilities, work preferences and other items
of information which indicate his overall value to the company.

D. Job Analysis: After having decided how many persons would

be needed, it is necessary to prepare a job analysis, which records
details of training, skills, qualification, abilities, experience and
responsibilities, etc., which are needed for a job. Job analysis
includes the preparation of job descriptions and job specifications.

E. Developing a Human Resource Plan: This step refers to the

development and implementation of the human resource plan,
which consists in finding out the sources of labour supply with a
view to making an effective use of these sources. The first thing,
therefore, is to decide on the policy should the, personnel be hired
from within through promotional channels or should it be obtained
from an outside source. The best policy which is followed by most
organizations is to fill up higher vacancies by promotion and lower
level positions by recruitment from the labour market.

Q.3 Write a detailed note on training needs identification.

Answer –

Training Needs Identification:-

Training could be a useful aid in improving the transformation
process that takes place in an organization in terms of the
processing of inputs to outputs. Training needs have to be related
both in terms of the organization's demands and that of the
individual's. Diversification of product lines, new technology, and
hence a new kind of job demands the individual's growth and
development through induction, training, or training necessitated
by job rotation due to an organization's internal mobility policies.

A survey conducted by A.D. Sinha, listed in rank order the

following methods of identifying training needs:
1. Views of the line manager
2. Performance appraisal
3. Company and departmental plans
4. Views of training manager
5. Analysis of job difficulties.

The model we shall examine here is the Thayer and McGhee

model. It is based on the following three factors:
1. Organization analysis
2. Task analysis
3. Man analysis

Q.4 Explain different types of appraisal methods.

Answer –

Types of Appraisal Methods:-

When it has been decided who will evaluate, when, and on what
basis, the technique to be used will be selected. A number of
approaches will be described here. There are several ways to
classify these tools. The three categories used here will be;
Individual evaluation methods; Multiple person evaluation
methods; and other methods.

Individual evaluation Methods:

There are five ways to evaluate an employee individually. In these
systems, employees are evaluated one at a time without directly
comparing them with other employees.

Graphic rating scale: The most widely used performance

evaluation technique is a graphic rating scale. In this technique,
the evaluator is presented with a graph and asked to rate
employees on each of the characteristics listed. The number of
characteristics rated varies from a few to several dozen. A factor
analysis of the results indicates that only two traits were being
rated: quality of performance and ability to do the present job.
The ratings can be in a series of boxes, or they can be on a
continuous scale (0-9) or so. In the latter case, the evaluator
places a check above descriptive words ranging from none to
maximum. Typically, these ratings are then assigned points. For
example, outstanding may be assigned a score of 4 and
unsatisfactory a score of 0. Total scores are then computed. In
some plans, greater weights may be assigned to more important
traits. Evaluators are often asked to explain each rating with a
sentence of two.

Forced choice: The forced choice method of evaluation was

developed because other methods used at the time led to a
preponderance of higher ratings, which made promotion decisions
difficult. In forced choice, the evaluator must choose from a set of
descriptive statements about the employee. The two, three, or
four statement items are grouped in a way that the evaluator
cannot easily judge which statements apply to the most effective
employee. Typically, personnel specialists prepare the items for
the form, and supervisors or other personnel specialists rate the
items for applicability; that is, they determine which statements
describe effective and ineffective behaviour. The supervisor then
evaluates the employee. The Personnel Department adds up the
number of statements in each category, and they are summed
into an effectiveness index. Forced choice can be used by
superiors, peers, subordinates, or a combination of these in
evaluating employees.

Essay evaluation: In the essay technique of evaluation, the

evaluator is asked to describe the strong and weak aspects of the
employee's behaviour. In some enterprises, the essay technique is
the only one used; in others, the essay is combined with another
form, such as a graphic rating scale. In this case, the essay
summarizes the scale, elaborates on some of the ratings, or
discusses added dimensions not on the scale. In both of these
approaches the essay can be open ended, but in most cases there
are guidelines on the topics to be covered, the purpose of the
essay, and so on. The essay method can be used by evaluators
who are superiors, peers, or subordinates of the employee to be
evaluated.

Management by objectives: Another individual evaluation

method in use today is management by Objectives (MBO). In this
system, the supervisor and employee to be evaluated jointly set
objectives in advance for the employee to try to achieve during a
specified period. The method encourages, if not requires, them to
phrase these objectives primarily in quantitative terms. The
evaluation consists of a joint review of the degree of achievement
of the objectives. This approach combines the superior and self
evaluation systems.

Critical incident technique: In this technique, personnel

specialists and operating managers prepare lists of statements of
very effective and very ineffective behaviour for an
employee.These are the critical incidents. The personnel
specialists combine these statements into categories, which vary
with the job. Once the categories are developed and statements
of effective and ineffective behaviour are provided, the evaluator
prepares a log for each employee. During the evaluation period,
the evaluator "records examples of critical (outstandingly good or
bad) behaviours in each of the categories, and the log is used to
evaluate the employee at the end of the period. It is also very
useful for the evaluation interview, since the evaluator can be
specific in making positive and negative comments, and it avoids
“recency” bias. The critical incident technique is more likely to be
used by superiors than in peer or subordinate evaluations.

Checklists and weighted checklists: Another type of individual

evaluation method is the checklist. In its simplest form, the
checklist is a set of objectives or descriptive statements. If the
Rater believes that the employee possesses a trait listed, the
Rater checks the items; if not, the Rater leaves it blank. A rating
score from the checklist equals the number of checks. A more
recent variation is the weighted checklist. Supervisors or
personnel specialists familiar with the jobs to be evaluated
prepare a large list of descriptive statements about effective and
ineffective behaviour on jobs, similar to the critical incident
process. Judges who have observed behaviour on the job sort the
statements into piles describing behaviour that is scaled from
excellent to poor (usually on a 711 scale). When there is
reasonable agreement on an item (for example, when the
standard deviation is small), it is included in the weighted
checklist. The weight is the average score of the Raters to the
checklist's use. The supervisors or other Raters receive the
checklists without the scores, and they check the items that
apply, as with an un weighted checklist. The employee's
evaluation is the sum of the scores (weights) on the items
checked. Checklists and weighted checklists can be used by
evaluators who are superiors, peers, or subordinates, or by a
combination.

Behaviourally anchored rating scales: Another technique

which essentially is based on the critical incident approach is the
behaviourally anchored rating scale (BARS). This technique is also
called the behavioural expectation scale (BES). This is a new,
relatively infrequently used technique. Supervisors give
descriptions of actually good and bad performance, and personnel
specialists group these into categories (five to ten is typical). As
with weighted checklists, the items are evaluated by supervisors
(often other than those who submitted the items). A procedure
similar to that for weighted checklists is used to verify the
evaluations (outstandingly good, for example) with the smallest
standard deviation, hopefully around 1.5 on a 7point scale. These
items are then used to construct the BARS.

Q.5 Write a note on Motivation Techniques.

Answer –

Following Michael Jucius, let us see how management may

proceed to motivate employees.

This activity may be divided into two parts:

a.what is to be done and b. how and why what is done. The
former are steps in motivation and the latter are rules governing
the steps. Both are performed simultaneously.

The steps of motivation are listed below:

1. Size up situation requiring motivation: The first stage of

motivation is to make sure of motivational needs. Every employee
needs motivation. However, all people do not react in exactly the
same way to the same stimuli. Keeping this in mind the executive
shall size up how much and what kind of motivation is needed and
when and by which individuals.

2. Prepare a set of motivating tools: Having determined the

motivational needs of a particular person or group an executive
must have a list from which he should select and apply specific
tools of motivation. An executive from his personal experience
should prepare a list of what devices are likely to work with what
type of people and under what circumstances.

3. Selecting and applying the appropriate motivator: Proper

application of motivational plan is very important. This involves
selection of the appropriate technique, the method of application
and the timing and location of applications. Having selected
appropriate techniques, thought must be given to its application.

4. Follow-up the results of the application: The last stage of

motivation is to followup the results of the application of the plan.
The primary objective is to ascertain if an employee has been
motivated or not. If not, some other technique should be tried. A
secondary purpose of followup is to evaluate motivation plans for
future guidance.

Rules of Motivating: In following the steps of motivation a

manager should be guided by some fundamental rules which
should be based upon the following principles:

1. Self-interest and Motivation: Undoubtedly, motivation is

mainly built on selfishness. Psychologically speaking, selfishness
is a part and parcel of life. To deny this is to build the theory on
unrealistic foundation. To seek some other basis of motivation
would be to ignore the real nature of man. The aim should be to
learn more about selfishness.

2. Attainability: Motivation must establish attainable goals.

What is prescribed for a particular person must be attainable by
him. This does not mean that the goal is realized at once. Such
goals as promotion or desirable transfer may take years to attain.
But it must be within reach.Eight Ways to Motivate Plant
Employees Based on a fact-findingstudy conducted at
several manufacturing plants of the General Electric Company,
Sorcher and Meyer have made the following recommendations for
improving the motivation of employees in routine jobs.
1. Provide assembly line employees with more than minimum
training. Providing some sort of formal training for a factory
employee beyond the required minimum should result in greater
personal involvement in the job.

2. Create subgoals to measure accomplishment. A sense of

competition is important to good motivation. When people work
towards clearly defined goals they perform better. Moreover, they
are likely to be more interested in the work which will reduce
monotony and mental fatigue.

3. Provide regular feedback on performance. Psychological studies

show that people perform better when they receive positive as
well as negative feedback about their performance on a regular
basis.

4. Maintain a neat and orderly work area. If the foreman does not
care about neatness, employees may feel that they need not care
about it and this attitude may also affect the quality of their work.

5. Arrange work situations so that conversation between

employees is either easy or impossible. Experienced workers can
do routine jobs with little attention to the task. Conversation while
working may reduce monotony and fatigue and thus have a
favourable effect on output.

6. If possible, increase the number of operations performed by

one employee. This can be done by the simplification of manual
operations. It offers several advantages, viz.

i) the risk of errors is reduced;

ii) training costs are minimized;
iii) Management can hire employees at lower wages.
iv) Structure jobs, so that workers can, at least occasionally move
about the work area. Besides job rotation, there are other ways to
provide for physical movement such as setting employees secure
their own tools or by adding operations which require some
physical activity.
v) Explore ways to assign greater personal responsibility.
Increased responsibility means greater selfesteem and greater job
meaningfulness. One way to enlarge responsibility is to let an
employee inspect his own work

Q.6 Elaborate the importance of grievance handling.

Answer –

At one or other stage of the grievance procedure, the dispute

must be handled by some member of management. In the
solution of a problem, the greater burden rests on management.
The clearest opportunity for settlement is found at the first stage,
before the grievance has left the jurisdiction of the supervisor. For
this reason, many firms have specifically trained their supervisors
as to how to handle a grievance or complaint properly. The
dispute or grievance constitutes a managerial problem and the
scientific method is usually most productive in arriving at a
satisfactory solution. The following directions help in handling a
grievance:

1. Receive and define the nature of the dissatisfaction: The

manner and attitude with which the supervisor receives the
complaint of grievance is important. As a principle applicable to
this step, the supervisor should assume that the employee is fair
in presenting the complaint or grievance. Statements should not
be prejudged on the basis of past experience with this or other
employees. The supervisor should not be too busy to listen and
should not give an impression of condescension in doing so. Thus
supervisors who were nearly taskoriented, as contrasted with
peopleoriented, tended to experience a significantly greater
number of grievances being filed in their units.
2. Get the facts: In gathering facts, one quickly becomes aware
of the importance of keeping proper records such as performance
ratings, job ratings, attending records, and suggestions. In
addition, with the increasingly legalistic bent that is characteristic
of modern labourmanagement relations, the supervisor is wise to
keep records on each particular grievance. It is also important
that the supervisor possesses and exercise some skill in interview
conference, and discussion.

3. Analyze and divide: With the problem defined and the facts
in hand, the manager must now analyze and evaluate them, and
them come to some decision. There is usually more than one
possible solution. The manager must also be aware that the
decision may constitute a precedent within the department as
well as the company.

4. Apply the answer: Though the solution decided upon by the

superior is adverse to the employee, some answer is better than
none. Employees dislike supervisors who will take no stand, good
or bad. In the event of an appeal beyond this stage of the
procedure, the manager must have the decision and the reasons
for his decisions should be properly recorded.

5. Follow up: The objective of the grievance procedure is to

resolve a disagreement between an employee and the
organization. Discussion and conference are important to this
process. The purpose of its followup
phase is to determine whether the clash of interest has been
resolved. If follow up reveals that the case has been handled
unsatisfactorily or that the wrong grievance has been processed,
then redefinition of the problem, further factfinding, analysis,
solution and follow up are required. Among the common errors of
management encountered in the processing of grievances are:
1. Stopping too soon in the search of facts.
2. Expressing a management opinion prior to the time when all
pertinent facts have been discovered.
3. Failing to maintain proper records.
4. Resorting to executive fiat or orders instead of discussion and
conference to change minds.
5. Setting the wrong grievancea mistake which may in turn
produce a second new grievance. Follow up is the step in the
procedure that tells us when a mistake in handling has been
made.

Case Study- MB0027

Quick post is a courier Services Company established for around
10 years. Its head quarters are at New Delhi and are having
around 200 employees. Since past two years the business of the
company in flourishing.
They introduce special schemes for students during the month of
May, June and July offering discounts to courier admission forms.
At that time the work load increases by about 20%
The North Zone is headed by Shiv Kapur for last 3 years. He is a
friendly leader, sometimes when the team members leave to stay
back he may make special arrangement, for snacks and tea. He
also tries to give them compensatory off or related work day when
the work load is less. He may also forward them some
motivational or humorous mails during a hectic day , and after he
may play some instrumental music records.
Employees have great respect for him and they gladly accept the
extra piece of work assigned to them. They enjoy their work and
the level of commitment is a high.
In the beginning of year 2000 Shiv Kapur has gone for a two years
study leave. Mr. Indroneil De has joined in his place.
Indroneil is a nice person, but is a bit short – tempered. Once
some customer called him regarding the consignment which has
not been delivered on time. Indroneil called a meeting and uses
very tough remarks for the team. He strictly sticks to the timings
and no flexibility is allowed to employees regarding the timings.
Things are going well through there is a bit of unrest amongst the
employees and they feel the work atmosphere has become too
mechanical.
Problems started in late may when the work pressure started
increasing. No one was ready to stay back even 2 minutes They
were not ready to postpone their leave plans and the productivity
and work place was quite low.Indroneil requested for the extra
manpower, but it was not possible so soon.
Indroneil is tense and sitting in his office he is wondering now, he
shall deal with the crisis. He calls Mr. Ghosh, one of the old
employee, and discuss the problem with him. Mr. Ghosh suggests
that he shall discuss things with Mr. Kapur.

1 Comment on Mr. Kapur’s style of leadership

2 What difference do you find in the behavior of employees
during the leadership a Mr. Kapur and Mr. Indroneil?
3 What suggestions you may give to Mr. Indroneil to improve the
situation and wish employee cooperation?
4 How will you try to measure the employee morale at quick
post?