Human Resource Management

Q.
1
a) What is the impact of globalization and liberalization on industries in our
country?
b) What is the effect of competition on Human Resource Management?
Answer.1 (a)
During the mid 1980s, the Congress Government headed by Rajiv Gandhi made a move
to change the policies regarding business, licenses, and permits, as also its attitude
towards multinational companies (MNCs) operating in India. However, it was only
during the succeeding government of Narasimha Rao government that a strategy was
actually formulated in this direction and marketed both in India and abroad. The strategy
aimed to bring the Indian economy into the mainstream of the global economy, and at the
same time allow a whiff of competition and growth to Indian business. This it was hoped
would bring a new dimension to the concepts of quality, productivity, and growth.
Inevitably, the winds of liberalization that swept through the nation opened a variable
Pandora box, with far-reaching implications for human resources management. It bought
in a new era of technology, quality consciousness and competition which compelled
Indian business to wake up from its somnambulism and reassess its assumptions for
dealing with the complete-or-perish’ situation.
India has proven world that despite its chaotic political scenario, imbalance wealth
distribution, redundant bureaucracy, past baggage of Nehruvian socialism, and its sundry
other problem, it can implement sustainable economic restructuring in the world’s most
populous democracy. India has the potential, but the strong economic performance of
recent years requires continuing efforts to deepen it and make it work.
Since foreign entrants in India have distinct advantage in terms of state-of—art

technology R&D.
Strong brand equity, Indian companies will be ringlet carefully quality system, capital
and challenged to shape out. On the other hand, multinational companies (MNCs) have to
settle down and be accepted by the domestic consumer, which is not always an easy
process. Das gives guidelines to Indian companies for pursuing a winning strategy in the
face of global competition.
The after math of liberalization and globalization has made Indian companies conscious
of competition and quality and acquire a totally global mindset. According to Gurucharan
Das they need to:
1. Focus on a single area of competence and not haplessly diversity

2. Initially concentrate on the domestic market and then leverage their economies of
scable overseas
3. Be able to capitalize on global trade
4. Not ignore quality even when they are pursuing a low cost strategy
5. Be able to overcome their historic phobia for investing in product development.
Human Resource Management Page 1 of 38
Synergy between industry and government in an emerging country such as India is a
major requirement. Several factors from which private enterprise was barred, till the
recent past, have been opened up. Simultaneously the domestic industry is reforming
itself to meet the challenges of opportunity and competition from multinationals. The
latter being a fresh entrant in Indian business has an advantage of designing its systems
and procedure according to the challenged environment. Established Indian organizations
however will have considerable baggage to carry, in terms of systems and also
manpower.
Although India has significantly progressed due to the structural adjustment program, a
lot remains to be achieved. A free market economy demand a transparent set of laws and
quick disposal of litigation-something that the archaic Indian judicial system is ill-
equipped to cope with.
The conflict between labor and capital had formed the basis of unionization in India. The
unions demanded protection of labor against capital. With the introduction of technology
and competition, the very existence of their jobs had become a major area of concern for
the workers. Today due to restructuring programmed, in the short run job loss is quite
significant in May industries.
Liberalization has not liberated poor in villages from the clutches of the moneylender.
The rural poor are now perhaps even more under the grip of corrupt petards than say
years ago.
Although there is little doubt that liberalization and globalization will generally lead to a
buoyant economy, one needs to be watchful of the intense pain that change can cause to
the affected sections of society during the crucial transition period.
Answer 1 (b).
Effects of competition on HRM
As a result of domestic and international competition, human resource management is

being given a key role. Some of the effects in HRM are highlighted below:
• With manpower costs going up, and the need to bring product prices down to meet
competition, manpower productivity has become a central issue in organizations. HR
professionals will have to play a crucial role to fulfill this need.
• Another area of intervention would be in the case of joint ventures where
professionals will have to predict and manage culture-fir policies. Companies are
focusing on people with right profiles as also those who are capable.
• There is increasing emphasis on training and retraining to tap talent.
• Companies are showing increasing willingness to retain talent and redeploys
manpower necessary.
• In some industry, India employees are being sought after abroad. This coupled with
competition for employees among Indian companies, has led to an alarming attrition
rate for some companies. To meet ambitious career aspirations and salary

expectations, HR department are usually industry wise benchmarking for salary
revisions.
• Employee compensation is being linked and programmers are becoming more
focused, responsive and are also constantly reviewed against the external
environment.
• Globalization has resulted in an influx of foreign managers to India.
• Corporate restructuring and redefining of roles are areas also focus

Q.2
a) What is Performance Appraisal? What are the objectives of the Performance
Appraisal System?
Performance Appraisal:
Performance Appraisal is a formal exercise in which an organization makes an evaluation
form of its employees, in terms of contributions made towards achieving organizational
objectives and / or their personal strengths and weaknesses and in terms of attributes and
behaviors demonstrated for meeting whatever objectives the organization may consider
relevant. A formal definition of performance appraisal is that, it is the systematic
evaluation of the individual with respect to his or her performance on the job and his or
her potential for development.
A more comprehensive definition is: “Performance appraisal is a formal structured

system of measuring and evaluation an employee’s job, related behaviors and outcomes
to discover how and why the employee is presently performing on the job and how the
employee can perform more effectively in future so that the employee, organization, and
society all benefit”.
The other terms used for performance appraisal are: performance rating, employee
assessment, employee performance review, personnel appraisal, performance evaluation,
employee evaluation, and merit rating.
Performance appraisal systems though widely used today, are, in some cases subject to
failure especially in cases given below which impacts the effectiveness of the appraisal
system.
• Assessment of personality traits

• Need to identify the cause for a subordinate’s behavior
• A manager’s unwillingness to pass a negative judgment
Objectives of Performance Appraisal:

Data relating to performance assessment of employees are recorded, stored, and used for
several purposes. The main purposes of employee assessment are:
• To enable each employee to understand his role better and become more effective
on the job
• To understand his own strengths and weaknesses with respect to his role in the
organization
• To identify the development needs of each employee
• To improve relationship between the superior and the subordinate through the
realization that each is dependant on the other for good performance and success
• To serve as mechanisms for improving communication between the superior and
the subordinates. The subordinates come to know of the expectations of their
superiors and are able to communicate to the superiors in case of difficulties in
accomplishing assigned tasks.

• To provide an opportunity to the employee for introspection, self evaluation and
goal setting so that he remains on the path to development
• To enable every employee to internalize the norms and values of the organizations
so that an organizational entity and commitment is developed throughout the
organization
• To prepare employees for higher jobs by continuously reinforcing development of
behavior and qualities for these higher level positions
• To be an instrument for creating a positive and healthy climate in the organization
that moves people to give their best and enjoy doing so
• To help in a variety of personal decisions by generating relevant data on each
employee periodically.
b) Explain the concept of 360-degree appraisal. How is this concept used in industry
to appraise the employees?
Answer 2 (b)
360-degree appraisal is a Multi-Rater Appraisal and Feedback System, where an
individual (employee) is assessed by a number of assesses including superiors,
subordinates, peers, internal customers, and external customers. The assessment is made
on the questionnaire specially designed to measure behaviour considered critical to
performance. The appraisal is done anonymously by the concerned persons and the final
assessment is collected by the HRD. The assessment is made on questionnaire designed
to measure behaviors considered critical for performance.
Objectives of a 360-degree feedback

• Insights into the strong and weak areas of the candidate in terms of effective
performance of roles, activities, styles, traits, qualities, competencies and its
impact on others
• Identification of developmental needs and preparing development plans more
objectively to current or future roles and performance improvements for an
individual or a group of individuals
• Data generation to serve as a more objective basis for rewards and other
personnel decisions
• Reinforcement of other change management efforts and organization
effectiveness directed interventions.
• Basis for performance linked pay or performance rewards
• Alignment of individuals and group goals with the organization vision, values and
goals.
A 360-degree appraisal helps in

• Culture building
• Leadership development
• Potential appraisal and development
• Career planning and development
• Succession planning and development

• Team building
• Planning internal customer satisfaction improvement measures
• Role clarity and increased accountabilities.
Advantages of a 360-degree feedback
A 360-degree feedback have certain advantages. These advantages are not substitutes
for those of traditional appraisals but in addition to them
• It is more objective than one person assessment of traits and qualities

• It adds objectivity and supplements the traditional appraisal system
• It provides normally more acceptable feedback to the employees
• It can serve all the purposes served by the traditional appraisal system like
identifying the developmental needs, rewards management and performance
development etc
• It helps in focus on internal customer satisfaction
• It has the potential of pointing out the supervisory biases in the traditional
appraisal systems
• It is a good tool for enhancing customer service and quality inputs and service
to the internal customers
• It provides scope for the candidate to get multiple inputs to improve his role,
performance, styles and ideas and enhances the acceptability of the individual.
• It is more participative and enhances the quality of HR decisions
• It is suitable for new organizational culture being promoted by most world-
class organizations.
360-degree appraisal system involves 5 main phases to appraise the employees.

a. Participants Orientation and modalities of the exercise – where participants are
briefed on the exercise, the anonymity related to it, and the number of people who
are eligible to give feedback in each category – such as superiors, subordinates,
peers etc.
b. Questionnaire distribution - The questionnaire is distributed the list of people
whom the appraisee gives, along with instructions for filling up the questionnaire.
c. Monitoring and Follow-up - The receipt of filled up questionnaires are
monitored and reminders are sent to those who haven’t yet sent in their
questionnaires.
d. Data feeding reports and analysis - On receipt of questionnaires filled in, the
data is fed into a computer where for each question, the rating given by self, the
superior, subordinate and peer groups are calculated.
e. Workshop – A workshop is conducted wherein the feedback is given to the
appraisee.

Q. 3
a) What is Performance Counseling? Explain the process involved in
performance Counseling.
Answer 3(a)
Performance Counseling refers to the help provided by a manager to his subordinates in
objectively analyzing their performances. It essentially focuses on the analysis of
performance and identification of training and development needs for bringing about
further improvement. It attempts to help the employee in
• Understanding himself – his strengths and weaknesses

• Improving his professional and interpersonal competence by giving him feedback
about his behaviour
• Setting goals and formulating action plans for further improvement
• Generating alternatives for dealing with various problems
• By providing a supportive and empathetic atmosphere in which the employee
feels encouraged to discuss his aspirations, tensions, conflicts, concerns and
problems
Conditions for effective counseling
• A climate of trust, confidence and openness is essential for effective counseling.

Counseling cannot be effective if the subordinate does not trust his boss
• It is necessary that the subordinate should feel free to participate, without
inhibition or fear in the process of review and feedback.
• The main purpose of counseling is employee development.
Phases in Performance Counselling
The counselling process has three phases.
• Rapport building
• Exploration
• Action planning
I. Rapport Building - Here, the counselor attempts to establish a climate of

acceptance, warmth, support, openness and mutuality. This involves building
confidence in the employee to open up and frankly share his perceptions, problems,
concerns and feelings. The subordinate must be made to feel that he is wanted and
that his superior is genuinely interested in his development

II. Exploration Besides listening to the employee and establishing a climate of
openness, the counselor should attempt to help the employee understand and
appreciate his strengths and weaknesses. He should also understand his own
situation, problems and needs. Counselling skill lies in making the employee
discover these on his own. This could be by asking several open ended questions.
III. Action Planning Counseling interviews should end with specific plans for action
for the development of the employee. The main contribution of the superior to this
phase is in helping the employee think of alternative ways of dealing with a
problem. The primary responsibility for generating alternative solutions must
however rest with the employee himself. After the alternative solutions have been
identified, the superior should help the employee assess the advantages and
disadvantages of each and assist the employee implement the agreed upon action
plan.
Process involved in performance counseling
The superior should be an excellent listener. He should pay careful attention to the ideas
and feelings of the subordinates. This requires both patience and skill on the part of the
superior who is doing performance counseling.
Questions play an important role in performance counselling. They help in gathering

more information and stimulating thinking. The type of questions which may be directed
towards a person who needs performance counselling could be critical, which are
designed to criticize, reprimand or expose, testing questions designed to evaluate how
much a person knows, and leading questions which would indicate the kind of questions
we would like to hear. A leading question prevents free exploration and it forces the
subordinate to think along the lines of the person asking the question.
b) What are the objectives of Potential Appraisal?
Answer 3 (b)
In making potential appraisal of managers, the levels of talent and ambition have to be
clearly identified. There are limits beyond which any individual employee will be over-
stretched and likely to succeed. Doing the present job exceedingly well is no guarantee
that the same person will do a good job if given higher responsibilities. Promoting them
without assessing their potential may be a lose-lose situation for the organization.
The objectives of potential appraisal are:

a. To assess an individual in terms of the highest level of work the individual will be
able to handle comfortably and successfully in future without being over-
stretched.
b. To assist the organization in discharging its responsibility of selecting and
developing managers for the future to ensure continuous growth of the
organization.
Based on past experience and research, the following qualities determine the potential of
an employee
• Analytical power
• Creative imagination
• Sense of reality
• Capability of taking a holistic view from a detached position
• Effective leadership

Q. 4
a) Define TQM. Examine the elements involved in TQM and evaluate the
advantages and disadvantages of TQM.
Answer 4 (a)
According to Ron Collard and Gill Sivyer TQM is a cost effective system for integrating
the continuous quality improvement efforts of people at all levels in the organization to
deliver products and services which ensure customer satisfaction.
TQM is the conformance to the requirements what the customers expect. It is about
building quality rather than merely inspecting defects out.
Total Quality Management is a structured system for satisfying internal and external
customers and suppliers by integrating the business environment, continuous
improvement, and breakthroughs with development, improvement, and maintenance
cycles while changing organizational culture.
Total Quality Management is the culture of an organization committed to customer
satisfaction through continuous improvement.
Features of TQM
The basic features of TQM approach are
1. TQM is a business philosophy based on customer satisfaction
2. It consists of two strands i.e quality of design and quality of conformance to
design
3. TQM cannot be purchased and installed like other equipments It requires
continuous care and improvements
4. TQM believes that the quality reduces cost through reduced wastage, greater
productivity and increased sales.
5. TQM aims at changing the system rather than bringing change within the system.
For this the concern for short term profits must be reversed.
6. TQM requires managers to produce solutions instead of merely demanding
results.
7. TQM aims at improvements both in the business processes and functional
processes.
Elements involved in TQM
The key concepts of TQM are
1. Management Commitment to quality: The commitment to implement TQM has
to start at the top. The commitment of the top level reflects the seriousness
towards quality.

2. Focus on the customer: The TQM philosophy is based on customer focus. The
basic aim is to assure that customer needs and expectations are met and
understood.
3. Prevention rather than detection of defects: This philosophy seeks to prevent
poor quality rather than detecting and sorting out defects. This is done through
tools such as statistical process control, continuous process improvement,
problem solving and systems failure analysis.
4. Universal quality responsibility: TQM is based on the precept that quality is not
just the responsibility of the Quality Control department but a guiding philosophy
that everyone shares in the organization.
5. Quality measurement: TQM believes that quality is a measurable commodity
and in order to improve we need to know the current quality levels and what we
need to aspire.
6. Continuous improvement: TQM strives for continuous improvement in all areas
– aiming at ironing out process deficiencies pursued in small incremental,
manageable steps.
7. Root cause corrective action: The root cause of the problem or defect is
identified and steps taken to take corrective action at that level.
8. Employees’ involvement and empowerment: This ensures that the employee is
an active participant in the TQM process and provides employees with the
necessary tools and authority to overcome obstacles to achieve goals.
9. Synergy of teams: The team concept is an important part of TQM philosophy.
10. Benchmarking: This element involves adopting the best practices of

other organizations and use them as a yardstick for improvement performance and
quality of products.
11. Inventory reduction: Also known as ‘Just in Time’ inventory
management, it seeks to reduce the inventories and improve the quality of the
product.
12. Value improvement: It is the ability to meet customer expectations while
removing unnecessary costs.
13. Training: This is one of the basic elements of TQM. This concept can be
developed by encouraging continuous improvement for which training appears to
be the basic and important tool.
Advantages and Disadvantages of TQM
Advantages
a. Customer satisfaction: TQM aims at producing goods and services in accordance
with customer expectation. This approach improves customer satisfaction.

b. Enhancing quality: TQM helps in manufacturing better quality products at a
lower cost.
c. Reduction in waste: TQM seeks to prevent poor quality rather than detecting and
correcting defects. It stresses on things being done right the first time.
d. Reduction in Inventory: TQM aims at eliminating shortage in the supply of inputs.

It also ensures that the organization does not purchase excessive inventory.
e. Improving Productivity: Productivity is the input output relationship. Productivity
improves when the same output is attained at a lower cost or higher output is
achieved at the same cost.
f. Reducing Product Developing time: TQM analyses and improves the basic
business systems and subsystems to match customer requirements.
g. Flexibility: TQM increases the flexibility in meeting market demands.
h. Motivates Human Resource: TQM demands employee involvement and

empowerment.
i. Enhances competitiveness: TQM enables a company to face competition
Disadvantages
a. Difficult in bringing change: TQM requires significant changes in methods,

processes, attitudes, and behavior. This realization not only takes time to set in
but the change is painful.
b. Rising expectations: As people become more knowledgeable about what quality

organization is, their expectations keep rising. This creates anxiety.
b) What are Quality Circles? Examine the process involved in Quality Circles
and evaluate the advantages and disadvantages of Quality Circles.
Answer 4 (b)
Quality Circle is a small group to perform voluntarily quality control activities within the
same workshop. This small group carries on continuously as a part of company wide
quality control activities self development and mutual development and improvement
within the workshop, utilizing quality control techniques with all member participating.
QC Circle is a small group in which people who work in the first line work place,
continually improve and maintain the quality of products, services, job and so on.
This small group promotes the activity in such a way as to autonomously administer it,
utilize the QC concept and technique and others, display creativity and make self
development and mutual development.

These activity intents to:
- Develop their capability, perform the self-actualization for QC Circle members, make
its work place full of brightness and vitality.
- Enhance customer satisfaction and make a social contribution.
- The executives and the mangers in order to make QC Circle activities successful,
contribute to improving the enterprises, constitute and implement company wide TQM or
similar one by themselves. Facilitate the environment for the activity and continually,
conduct appropriate guidance and support based on the respect to humanity, aiming at the
participation by everybody and positioning the activity as important for human resources
development and work place utilization.
Characteristics of Quality Circles
• QCs are usually small groups between 4 and 15 members
• All members come from the same work area – giving the group an identity
• The members work under a supervisor who moderates discussions and promotes
consensus.
• The members usually meet once a week to discuss and solve the problems they
face
• The circle members receive training in the rules of quality circle participation, the
mechanics of running a meeting and problem solving.
• Technical specialists and management consultants assist the circles with

information and expertise when required.
Process involved in Quality Circle

The process of QCs involves:
a. Problem collection – The creation of a problem bank is one of the primary tasks
that the circle members perform. Each problem bank is given a priority number
depending on its benefits and urgency. Problem collection is an on-going process.
b. Problem analysis – Problem analysis depends on facts and not on feelings. A
good number of data collection tools, charts, and statistical technique to establish
facts before proceeding to find solutions.
c. Problem solution – A proper environment and group thinking together with

expertise in work area generate appropriate solutions to problems. Various
alternative solutions are explored and the optimum solution is chosen.
d. Management presentation – The solutions chosen by the circle members are

presented to the management, highlighting the benefits anticipated. Acceptance of
the solution acts as a powerful motivator.

e. Implementation, review, and follow-up – After getting the sanction of the
management, the circle members chalk out a schedule for the implementation of
the solutions. The results are constantly reviewed and follow-up action is taken if
required.
Advantages of Quality Circles
1. Self Development: QCs facilitate self-development of individuals by bringing

about attitudinal change, improving self-confidence and a sense of
achievement.
2. Social Development: QC is a participative and consultative program where

each member interacts with others – thus fostering team spirit.
3. Opportunity to acquire knowledge: QC members have an opportunity to

acquire new knowledge by sharing ideas, opinions and experience.
4. Potential leader: Every individual gets an opportunity to develop his

leadership potential, since every member can become a leader.
5. Job satisfaction: QCs encourage creativity by tapping the dormant

intellectual skills of the people and perform activities different from the
routine work, which boosts their self confidence and gives them immense job
satisfaction.
6. Improved communication skills: Frequent interaction among the members

helps the members improve their communication skills.
7. Healthy work environment: QCs generate a tension-free environment which

each members likes, understands and cooperates with others.
8. Organizational benefits: The individual benefits generate a synergistic effect

leading to higher productivity, better quality, reduction in waste and cost
effectiveness.
Disadvantages of Quality Circles
1. Unconditional support: The top management should offer unconditional support

to the QC movement. The support should be made visible by the top management
participating frequently in the QC meetings.
2. Prompt approval: The acceptable recommendations of the circle should be
promptly approved to boost the enthusiasm of the members. If the
recommendations cannot be accepted or if there is a delay in its implementation,
sufficient explanation should be given to the members.
3. Long-term approach: The objectives intended to be achieved are on a long term
basis. Miracles cannot be achieved overnight regarding QC’s

4. Proper orientation: The QC philosophy should be appreciated by one and all.
For this a proper orientation at all levels need to be undertaken.
5. Dispel fears: The middle management often entertains fears like losing
importance, becoming redundant or being exposed. The top level needs to take
steps to dispel such fears.
6. Identification of interests: Cooperation from the middle management and
identifying the interests with the Quality circles is important. Lack of
understanding of objectives lead to diversity of interests and to misdirected goals.
7. Regular communication: All communication channels should be kept open to
ensure the success of the QC.
8. Proper environment: A proper environment with mutual trust, faith and respect
is essential for QC’s to thrive.
9. Effective leader: The success of a QC depends largely on the leader. The leader
should take initiative, appreciate the objectives, motivate the members, and foster
a feeling of oneness. He should also take responsibility for all the actions of the
Quality circles.

Q. 5
a) What is Manpower Planning? Explain the various steps involved in the
Manpower Planning.
Answer 5 (a)
Manpower planning attempt to recruit, retain and efficiently distribute and channel
employees both laterally and hierarchically through an organization. Traditionally,
manpower planning has attempted to reconcile an organization’s need for human
resources with the available supply of labour in the local and national labour market. In
essence manpower planners initially seek to estimate their current and future employment
needs.
According to Vetter, Manpower planning is defined as the process by which the

management determines how the organization should move from the current man power
position to desired man power position. Through planning, management strives to have
the right time, doing things that result in both organization and the individual receiving
maximum long run benefits.
Advantages of Manpower planning
• Forecasting long term manpower requirements helps forecast the compensation

costs involved.
• Anticipating manpower needs, there lies an opportunity for developing existing
manpower needs to fill the future openings through promotions.
• Manpower planning enables, through performance appraisals, determining the
weaknesses of the existing manpower so that corrective training could be
incorporated.
However, there are a few limitations of manpower planning as well.
• It is difficult to predict long range forecast accurately.

• Changes in economic condition and technology in future, tend to make long range
forecasts unreliable.
Steps involved in Manpower Planning
• Anticipating manpower needs

• Planning job requirements and description
• Analyzing skills to determine the nature of manpower needs
• Selecting adequate source of recruitment
I. Anticipating Manpower needs
1. Anticipating manpower needs : For securing maximum motivation, it is

always better to encourage existing employees, rather than going in for new
recruitment. It is more effective to try and meet, as far as possible, manpower

requirements from the supplies existing within the organization. Internal
promotion can motivate employees and ensure their retention within the
organization.
2. Manpower inventory: An inventory of existing personnel to compare what

exists in stock with what can be expected in future with their job descriptions
is necessary. This would indicate possible shortfalls in the organizational
requirement and go in for recruitment if required.
3. Expected loss and extra needs: While doing long term forecasts, the
expected loss situation needs to be evaluated in terms of retirement, transfer,
and other causes such as death and disability. In this way future vacancies can
be anticipated. Forecast must also be done to the number of additions to the
organization because of anticipated growth of the organization.
The four methods generally used to determine the requirements of personnel are
• Annual estimate of vacancies
• Long range estimate of vacancies
• Fixed minimum manpower specification requirements
• Specific position estimations
Steps in Manpower planning
Manpower planning can be done by observing the steps mentioned below
1. Determine the period of forecasting requirements of manpower in future

i.e requirements at the end of the first year, second year, third year and so
on and forecast the manpower required at the end of such period.
2. From the number available at the commencement of the period, deduct the
expected wastage through deaths, resignations, retirements and discharges.
This would give the manpower available from existing staff at the end of
the period concerned. A comparison of figures arrived at in steps one and
two, would indicate shortages or surpluses in manpower requirements.
3. In case of shortages, decide how shortages are to be met – whether
through fresh recruitment or promotions and whether any training or
developmental facilities would be required. If surpluses are anticipated,
decide how these surpluses will be dealt with through early retirements,
discharges or lay offs.
Manpower planning thus seeks to ensure that the required personnel possessing the
necessary skills are available at the right time.
i. Planning job
requirements and
description

An important step in manpower planning consists of planning job requirements. The
requirements of a particular job must be clearly delineated through a minute study of the
duties to be performed in that job. A job analysis has first to be made to secure the
relevant information about the job.
• Job information - It is important to collect the important parts of a job

which identify it and distinguish it from other jobs. Job information helps
in adequate recruitment to be done, adequate training to be given, salary
structure according to the job grading and fair appraisals.
• Job description - This can be defined as a written record of duties,
responsibilities and conditions of the job. The methods which provide the
required data are
i. Observation of employees while performing their work
ii. Study of specially maintained diaries.
iii. Review of critical incidents
iv. Discussions with departmental head and/or supervisors
v. Discussion with outside consultants and experts.
i. Skills Analysis
The skills required in different jobs must be analysed in terms of job description
following job analysis. Skills required by successful managers can be broadly divided
into Desirable Managerial skills and Basic Managerial skills.
Desirable Managerial skills can be subdivided into

• Decision making skills – ability to take correct decisions either intuitively
or by making use of mathematical skills and concepts
• Leadership skills - ability to motivate his subordinates and make use of
effective delegation
• Communication skills – effective communication can improve the
managerial and leadership skills of an individual
• Organizational and social skills – ability to view from an organizational
perspective.
Basic Managerial skills can be classified as

• To plan operations, delegate duties appropriately and coordinate day to day
activities
• Appreciate changing conditions and trends affecting the work of his unit
• Select appropriate personnel for specific assignments
• Direct and guide the work of subordinates
• Stimulate, motivate and lead subordinates
• Supervise, followup and appraise the performance of subordinates

i. Selecting Adequate
source or
recruitment
Recruitment can be done from two sources – Internal or External.
a. Internal sources - The best employees can often be found within the
organization itself. Many organizations give preference to people within the
company – either through promotions or through inter-departmental transfers.
Vacancies in the organization are advertised in the notice boards, bulletin boards,
departmental announcements for eligible candidates to apply.
b. External sources – External sources of recruitment include

• Recruitment advertising – receiving applications by mail or personally in
response to an advertisement by the company
• Reference to employment exchanges
• Recruitment from colleges
• Study of central applications file maintained of past applicants
• Use of specialized consultants for recruitment
b) Explain what is meant by Human Resource Planning?
Answer 5 (b)
Human Resource Planning is the process by which an organization ensures that it has the
right number and kinds of people, at the right place, at the right time, capable of
effectively and efficiently completing those tasks that will help the organization achieve
its overall objectives.
Roles of HRP
1. Future personnel needs
Planning is helps in determining future personnel needs. Surplus or deficiency in
staff strength is the result of the absence or due to deficiency planning.
2. Coping with change

HRP enables an organization to cope with changes in competitive forces, markets,
technology, products, and government regulations. Such changes generate
changes in job content, skill demands, number, and type of personnel.
3. Creating highly talented personnel

Jobs are becoming highly intellectual and incumbents are getting vastly
professionalized. The HR manager uses his/ her ingenuity to attract and retain
qualified and skilled personnel. Technology changes will often upgrade some jobs
and degrade others.
4. Protection of weaker sections

In matters of employment and promotions, sufficient representation needs to be
given to SC/ ST candidates, physically handicapped, children of the socially and
politically oppressed and backward class citizens.
5. International strategies
International expansion strategies depend upon HRP. The department’s ability to
fill key jobs with foreign nationals and the re-assignment of employees from
within or across national borders is a major challenge facing international
business. With the growing trend towards global operation, the need for HRP will
grow, as will the need to integrate more closely HRP into the organization’s
strategic plan.
6. Foundation for personnel functions

Manpower planning provides essential information for designing and
implementing personnel functions such as recruitment, selection, personnel
movement (transfers, promotions, layoffs), training, and development.
7. Increasing investments in Human Resources

Another compelling reason for HRP is the investment an organization makes in its
human resources. Human assets, as opposed to physical assets, can increase in
value. An employee who gradually develops his skills and abilities becomes a
more valuable resource.
8. Resistance to change and move

There is a growing resistance among employees to change and move. There is
also growing emphasis on self-evaluation and on evaluation of loyalty and
dedication to the organization.

The HRP Process
Environment
Organizational
Objectives and
Policies
HR needs forecast HR supply forecast
HR programming
HRP implementation
Control and evaluation

of programme
Surplus
Shortage
Restricted hiring
Recruitment and
Reduced hours VRS,
selections
Lay off, etc.

Q. 6
a) Explain how the training needs can be identified.
Answer 6 (a)
Training can be defined as a planned process to modify attitude, knowledge, or skill
behavior through learning experience to achieve effective performance in an activity or
range of activities. Its purpose, in the work situation, is to develop the abilities of the
individual and to satisfy the current and future needs of the organization
A formal definition of training is it is any attempt to improve current or future employee

performance by increasing an employee’s ability to perform through learning, usually by
changing the employee’s attitudes or increasing his or her skills and knowledge. The need
for training is determined by the employee’s performance deficiency.
Training need = Standard performance – Actual performance
Training programmes, help remove performance deficiencies in employees. This is

particularly true when
1. The deficiency is caused by a lack of ability rather than a lack of motivation to
perform.
2. The individual(s) involved have the aptitude and motivation needed to learn to do
the job better and
3. Supervisors and peers are supportive of the desired behavior.
Training contributes to employee stability in at least two ways. Employees become

efficient after undergoing training. Trained employees tend to stay with the organization
for longer period.
Training needs can be identified through the following:

• Interview with job-holders: This is one of the most commonly used
method whereby a manager, supervisor or member of the personnel department
interviews the current job-holder about the duties and functions of the job.
• Interview with managers and supervisors: Alternatively a personnel
manager or senior manager can interview the immediate supervisors of the job.
• Performance objectives: The aim of increased quality will require
performance objectives to be laid down. In doing so assessment must take place
as to whether current employees need training to reach these objectives.
• Analysis of competencies: An analysis of competency requirements could
be useful to match certain set standards which are considered relevant to the
various jobs involved.
• Personal profiles: Increasingly used in organizations and useful for
training needs analysis are personal profile records which also include
information concerning career aspirations of employees which may well be of
significance in creating training initiatives.
• Performance appraisal: A good appraisal can reveal much about the
strengths and weaknesses of individuals in terms of their performance.

• Assessment center techniques: Using a variety of methods including in-
depth interviews and re-interviews, psychometric tests, team performance
simulation exercises and other techniques a detailed profile of employees can be
constructed useful for analyzing training needs.
• Global review and training audits: The most wide-ranging method of
training needs analysis is to undertake a global review or more modestly a
training audit.
• Introduction of new systems: When new systems and procedures are
introduced, it requires training. Implementation of new systems will be much
easier if the individuals / groups concerned are explained in advance of what they
can expect from the new system.
• Identify training needs through survey: This is another effective means of
ascertaining the training needs of various groups and departments.

The Training Process
Organizational Objectives and Strategies
Assessment of training needs
Establishment of training goals
Devising training programme
Implementation of training programme
Evaluation of results
b) Explain how the results of training can be evaluated.
Answer 6 (b)
A programme of training is important as it lends stability and flexibility to an
organization, besides contributing to its capacity to grow. Various methods can be
adopted to evaluate the training results:
• Questionnaires (Feedback forms) or ‘happiness sheets’ are a common way of
eliciting trainee responses to courses and programmers
• Tests or examinations are common on formal courses, which provide a
certificate.
• Projects are initially seen as learning methods but they can also provide valuable
information to instructors.
• Structured exercises and case studies are opportunities to apply learned skills
and techniques under the observation of tutors and evaluators.
• Tutor reports. It is important to have the opinions of those who deliver the
training. This gives a valuable assessment from a different perspective.
• Interviews of trainees post course or instruction period. This can be informal or
formal, individual or group or by telephone.

• Observation of courses and training by those devising training strategies in the
training department is very useful and information from these observations can be
compared with trainee responses.
• Participation and discussion during training needs people who are adept at
interpreting responses, as this can be highly subjective.
For complicated training evaluations it is recommended that a combination of these
approaches be used.

Q. 7
a) Examine the elements of Succession Planning.
Answer 7 (a)
In conjunction with reward and appraisal systems, careful consideration needs to be given
to career paths and progression, especially for younger managers. This requires a well-
prepared human resource plan that looks to the future. It links development to succession
planning where managers are ‘penciled into’ positions vacated by those who retire or
when employees leave and organization growth create new opportunities.
Elements of Succession Planning can be viewed as follows:

• Management Staffing plans – these plans should be prepared on an
individual basis for all anticipated needs in the immediate year ahead and for key
positions the intermediate and long-range future. The potential forecasts and
overall manpower market forecasts should be reviewed and considered. The
business plans should be reviewed to determine their effect on managerial needs.
Economic
Forecasts
Human Resources
Forecasts
Manpower
Market Forecasts Staffing
Plans
Business
Organization
Plans
Plans
• Staffing and Development – Staffing includes recruitment, selection, and

placement of candidates from outside, as well as selection and movement of
present employees through promotion and transfer. Development of managerial
personnel should be ensured through approaches such as formal training, both
within the organization and outside, planned job rotation, performance planning,
and appraisal, counseling and coaching.
• Creation of congenial environment – The organizational environment
should ensure the retention of the most desirable employees. In case the
nominated successor quits, the whole exercise will have to be repeated.
• Appraisals – Appraisal and analysis of results achieved should provide an
organization with essential feedback in the performance of managers.
• Preparation of management resource inventory – Management
Resource Inventory should include personal data, performance, potential, skills,
career goals, career plans.

b) Explain the advantages of promoting employee from within the organization
rather than employing outside persons.
Answer 7 (b)
Familiarity breeds contempt. It is so true in the corporate sector. Whenever a vacancy

comes up because of some manager retiring or resigning, top managers always think of
bringing some body from outside.
There are several impacts on the organization. Some of the following are:
• Firstly, the managers are not losing faith in the fairness of top management.
• Productivity is not suffering, as they are disturbed by the information of someone
from outside is taken to succeed.
• Many managers directly affected by the induction of a manager from outside decide
to separate from organization leading to further training & recruitment cost.
• It helps to avoid a state where fewer suitable candidates applying for jobs in the
organization. Further leading to be trapped in mediocrity and its long-term growth
and prosperity are hampered.
• It helps to avoid gang war with oust the outsider. Everybody gets gained except the
poor organization, which remains stagnant. Its growth gets stifled.
• Gets to retain the talented people which may be lost due to lot of above reasons or
insecurity
• The best can be received from all the employees if succession planning and congenial
environment is maintained.
• It helps to see their future in this organization.

Q. 8
a) Explain the importance of Career Planning in industry.
Answer 8 (a)
Career planning involves efforts on the part of the organizations to provide avenues for
growth to its employees. Certainly this growth should be accompanied by development.
The other side of the coin is the role of employees in career planning. It involves effort on
the part of employees to clearly think through and decided areas in which they would like
to make a career for themselves.
When employees have assessed their career needs and have become aware of
organizational career opportunities, the problem is one of alignment. The crucial role has
to be played by HRD in ensuring this alignment to build up morale in the organization. A
systematic choice of development techniques like training, special assignment,
counseling and rotational assignments should be made to ensure this alignment.
Employees are often uncertain as to the type of work that would suit them best. There are
a number of evaluation instruments available to determine basic aptitudes. Human
Resource Development Managers should be able to guide employees by administering
these instruments on them. Employees should also find out whether they are loners or
socially active. These exercises with some assistance from HRD Managers should help in
career need assessment.
Realizing that employees have definite career needs, organization should chart different
career paths. These should b made known to all employees. As every employee wishes to
see bright future for himself, these career paths do provide the hope to achieve success.
At certain stage the upward mobility stops for many employees. This is inescapable in
view of pyramid organizations structure. This phenomenon is called plateauing. It takes
place around the age of 40. Some suggested measures to deal with such employees are:
• Mentors should be assigned measures to deal with such employees are:
Depending on the maturity of such mentors, good results can be achieved
in assuaging the hurt feelings of plateaued employees
Additional career ladders could be established to retain some valuable
resource.
Giving them importance by assigning them to some important task force
or committee.
Assisting them to choose a new career. Some organizations assist their
plateau executives to start their own business.
Career path models developed by a large public sector undertaking:

This organization has developed career paths models for the major discipline
• Sales
• Technical services
• Operations
• Engineering

• Aviation
• LPG
• Finance
• Personnel
b) “Career Planning and Succession Planning are very vital to meet the
challenges thrown by the forces of globalization and liberalization.” Explain.
Answer 8 (b)
Career planning and succession planning is very vital to meet the challenges due to
globalization and liberalization.
Market is open and vast in India and lot of professionally managed companies are
entering the market, giving people a lot of scope in enhancing the career with very good
and managed companies. No longer a hierarchical an autocratic organizations where no
career planning and succession planning is performed.
Lot of recruitment and training cost is incurred due to lack or poor planning of career.
People do not see their career drafted and planned by organizations. HR only worries
about the present state. No training and induction on work is provided continuously keep
the gaps closed for all employees. Retention is the need of the hour. Talent and
knowledge of personnel needs to be kept alive. Corporate environment and congenial
atmosphere keeps employees motivated to do work.
Competition in the market to get best suitable candidates keep the HR to retain and curve
a need career for the employee.
With globalization and liberalization, working hours and freedom to employees in their
work, led to companies looking at the HR policies.
The survey recorded the most important changes in human resources in the different
companies from 1991-96.
• Virtually all companies starting placing emphasis on the up gradation of
managerial and professional skills.
• A flatter organizational structure had resulted in fewer levels of hierarchy and
enhanced empowerment; empowerment to all categories, from shop floor workers
to managers had facilitated decision-making, flexibility, and trust. This had led to
improved employee involvement and motivation.
• People at the middle levels of management were becoming more participated and
result-oriented. On the other hand, decision-making was increasingly being
handled at the group level.
• In security level among employees had diminished and their sense of
responsibility had increased.
• There was emphasis on openness and transparency. An improvement in the
communication channels within organization had resulted in better interpersonal

• Change in recruitment policy had led to the induction of professional with diverse
technical, managerial, and academic background.

Q. 9
a) What is Job evaluation? Explain the various methods used in conducting Job
Evaluation Studies.
Answer 9 (a)
Job evaluation is the process to determine in a systematic and analytical manner the
comparative worth of job with an organization. Job evaluation attempts to measure skills
needed, responsibilities involved, efforts required for individual jobs.
Job evaluation is not directly concerned with the quantitative and qualitative aspects of
output or at the speed at which the operations or workers perform a job. It lays down the
foundation for a rational wage structure. Job evaluation is only concerned with the
evaluation of jobs and not the men performing them. A properly developed structure
based on job evaluation will tend to reduce grievances relating to wages and improve
industrial relations. Also, job descriptions which are prepared as part of the process can
be used for writing up job specifications which then can be used for purposes of
recruitment, training, promotion, transfer and job evaluation.
The Job evaluation program must receive its unqualified and unstinted support from the
top management. It requires considerable planning at all stages. For job evaluation to
succeed, the support of the employees and the trade unions also is important. A well-
designed job evaluation helps business in more ways than one.
• Being a systematic process, job evaluation fixes the wage rate for each job
• It is considered to be simple and easily understood by all
• It establishes equal wage rate for all jobs, according to the requirements
• Company training programs, placement requirement, selection and long
range manpower planning always follows job evaluation.
• It enables the company to get data or incorporation in local wage surveys
to establish job classification.
Techniques of Job evaluation
Many techniques are used in the measurement of jobs. All forms of job evaluation are
designed to enable the management to determine how much one job should be paid
compared to the others. Basically, all systems of job evaluation can be classified under
two categories: 1. Non quantitative 2. Quantitative. Simple ranking and grading are
placed in the non quantitative while point system and factor comparison methods fall in
the quantitative category. The most widely used system is the point method.
Various method used in conducting job evaluation studies are as follows:

1. Job Ranking – This method is widely used in small organizations. Being a
very simple and not expensive method, it consumes less time and promises
enough potential in its usefulness. Before actual ranking, brief job descriptions
of all the jobs are taken. In the beginning of the process, the highest and
lowest jobs are determined, which serve as the bench mark for the ranking of
the others. The end product of this method is like this

Rank Job
1 A
2 B
3 C
4 D
5 E
Here the main assumption is that the difference between A and B is equal to that of
between B and C, which always does not hold good. To avoid this limitation, key jobs
are selected and plotted on the graph against the money value of these jobs. The other
jobs are relatively compared with the key jobs and the money worth of these jobs are
determined.
2. Job Grading – In this approach, job factors approach is not considered. Jobs
are rather measured as whole. A scale of values consisting of grades and grade
description is prepared. Job grades are determined for a category of jobs.
From this, the grade descriptions are prepared which should be broad enough
to include several jobs. Such grade descriptions cover job description as well.
When the yardstick is established, the next step is to read out job description,
the grade description and allocation of jobs to one particular grade. The jobs
falling under the same grade get the same wage scale. However good this
method is, this suffers from some defects. By broadly generalizing jobs, there
are chances of dissatisfaction among the certain groups of employees. Also
the grading system requires multiple systems – since grading of clerical jobs
may be quite different from grading of operative jobs.
3. Factor Comparison System – Improved method of ranking system is known

as factor comparison system where job factors are compared rather than the
whole job. It consists of the following steps
a. Selection of job characteristics
b. Selection of key jobs
c. Determination of correct rates of key jobs
d. Ranking key jobs under each job factor
e. Allocation of correct rate to each key job
f. Evaluation of all other jobs
g. Designing, adjusting and operating the wage structure
4. Point Rating System – This system is widely used in job evaluation. It is

quantifying, analytical and detailed approach hammered out to derive a
balanced wage structure with least dispute among employees. This method
consists of the following steps
a. Select job factors or features – A job factor is defined as a specific
requirement levied upon the jobholder that he must endure. Eg if a
person occupies a position as a supervisor, he is expected to supervise
and motivate the employees. Job factors are generally grouped under
effort, skill, responsibility and working conditions and there could be
many subdivisions within these factors.
b. Prepare yardstick of value for each factor – the construction of
yardstick is done by deciding the total points assigned or to be utilised
in a system. The proportion of total points to be allocated to skill,
effort, responsibility and working conditions is to be decided.
c. Decide the value of all jobs against the predetermined yardstick
-Evaluation of the job demands the construction of reliable yardsticks
and detailed job specification. The process consists of reading the job
specification carefully and comparing the information with the degree
on the yardsticks and placing it accordingly. Adding up all the points
give the points worth of that job.
d. Build a wage survey for selected key jobs – once the job has been
summed up, the next step is placing all evaluated jobs according to
points in terms of money. This is the point when rated jobs are
translated into monetary values. The main purpose of a wage survey is
to find out the fair rate for various jobs in order to establish the entire
wage structure. For the wage survey, two types of sample are needed.
One the sample of key jobs and two a sample of firms in the job
market. The job content and available data are carefully analysed and
averaged out and this way the rupee values of job are prepared and
plotted on the chart.
e. Design, adjust and operate the wage structure - Here, similar jobs are
grouped and treated as a job class. All jobs which come under that job
class are paid the same wage. In the point system, suppose 120-150
points make a job class, all jobs which fetch total points between 120
and 150 will be having the same compensation. However there are
other factors such as labour market conditions, economic condition,
wage structure of other firms and adjustment and operation of the
wage structure also affect the designing of the wage structure.
b) What is meant by HRD Audit?
Answer 9 (b)
HRD audit is a comprehensive evaluation of the current HRD strategies, structure,

systems, styles and skills in the context of the short and long term business plans of a
company. It attempts to find out the future HRD needs of the company after assessing
the current HRD activities and inputs.
HRD Audit starts with an understanding of the future business plans and corporate
strategies. While HRD audit can be done even in organizations that lack well formulated
future plans and strategies, it is most effective as a tool when the organization already has
such a long term plans. HRD audit starts off by asking questions like
• Where does the company want to be in 10 years from now, 3 years from now and
one year from now? Here the nature of core competencies and skills at various
levels in the organization are identified which needs to be developed in the long
term / medium term and short term.
• What is the current skill base of the employees in the company vis-à-vis the roles
and role requirements – The qualification, job descriptions, training programs of
the existing set of employees are analysed.
• What are the HRD subsystems available today to help the organization build its
competency base for the present, immediate, and long term goals.
• What is the current level of effectiveness of these systems in developing people
and ensure human competencies are available at adequate levels in the company
• Is the existing HRD structure adequate enough to manage the HRD in the
company
• Are the top management and senior manager styles of managing people in tune
with the learning culture ?
Once this is done, HRD audit attempts linkages with other systems such as Quality
Management, personnel policies, strategic planning etc and evaluate HRD strategy,
structure and make suggestions on the basis of the evaluation. This could be in terms of
developing new competencies, strengthening the existing systems etc.
HRD audit is business driven – always keeping business goals in focus. It attempts to
bring in professionalism in HRD. In keeping with the business focus, HRD audit
attempts to evaluate HRD strategy, structure, system, staff and style and their
appropriateness.
Need for HRD Audit
Companies go in for HRD audit for the following reasons.
1. To make HR function business driven

2. To take stock of things and to improve HRD for expanding, diversifying and
entering into fast growth phases
3. For promoting professionalism among employees and to switch over to
professional management
4. Multinationals want to know the reasons for lower labour productivity and for
improving the HRD strategies in the Indian context
5. Companies use HRD audit as a tool for growth and diversification
6. Change of leadership
Role of HRD audit in business improvement
1. It can get the top management to thin in terms of strategic and long term business
plans – HRD audit has in some cases forced top management to share their long
term plans thus resulting in increase involvement and commitment from the
employees
2. Changes in the style of management – HRD audit provides subtle feedback to the
top management and initiating a change process in their working styles.
3. Role clarity of HRD department and the role of line managers in HRD – HRD
audit has brought about a better role clarity of the HRD department and the HRD

function resulting in increased understanding of line managers about their HRD
role and results of HRD audit.
4. Improvements in HRD systems – HRD audit has helped most organizations in
measuring the effectiveness of the HRD systems and designing or re-designing
the systems.
5. Increased focus on human resources and human competencies - HRD audit
focuses on new knowledge, attitudes and skills required by the employees.
6. Better recruitment policies and more professional staff
7. More planning and more cost effective training
8. Strengthening accountability through appraisal systems and other mechanisms
9. Streamlining of other management practices
10. Enhances the ROI of HR function – by eliminating non-value-adding HR systems
and sharpen the focus of HRD to get better results.
Thus we see that HRD audit is a comprehensive evaluation of the current HRD strategies,
structure, systems and styles and skills in the context of short and long term business
plans of the company. It provides inputs required to assess all aspects of HRD and assign
the HRD score for the company on a number of dimensions. Its main objective is to align
the HR function with the business goals. Experience has shown that HRD audit has
tremendous impact on business in areas of strategic planning, role clarity, streamlining
practices, better policies and improvement in HRD systems. However, it must be noted
that proper implementation and top management support are crucial for its success.

Q. 10
a) Explain the nature of Human Resource Development. Examine its nature
and scope.
Answer 10 a)
According to MM Khan, “HRD is the process of increasing knowledge, capabilities, and

positive work attitudes of all people working at all levels in a business undertaking”.
According to Schlem, “HRD is matching the organisation’s needs for human resource
with the individual need for personal career growth and development”
HRD is a process by which employees of an organization are helped, in a continuous,

planned way, to: acquire or sharpen capabilities required to perform various functions
associated with their present or expected future roles; develop their general capabilities as
individuals and discover and exploit their own inner potential for their own and/ or
organizational development purposes; develop an organizational culture in which the
supervisor-subordinate relationships, teamwork, and collaboration among subunits are
strong and contribute to the professional well being, motivation and pride of employees.
The concept of HRD has been gaining prominence and focus in management during the
last two decades. Human resources is considered to be the center of all development
processes of the economy.
Nature and scope of HRD
The dynamic environment in which an organization function demands regular updating

of job requirements. This is necessary to ensure a continuous flow of qualified persons
for the changed job.
1. HRD is a system made up of mutually dependant parts. Therefore the design of

the system cannot be considered in isolation. It must take into account its linkage
with other parts of the organization
2. HRD is a proactive function. Its function is not merely to cope with the needs of
the organization but to anticipate them and act them in advance in a continuous
and planned manner.
3. HRD aims at developing the capabilities of all line managers so that they can
increasingly handle functions like industrial relations, rewards and punishment,
performance appraisals etc
4. HRD emphasizes a lot on the need to motivate people. It considers informal
organization, job enrichment, participative management as motivating forces
5. HRD emphasizes on building the right work culture in the organization. The
work culture should identify, nurture and use the capabilities of the people.
6. HRD considers the better utilization of the human resources leads to improved
performance. This in turn results in improved job satisfaction and morale.
HRD has given us a diagnostic and problem solving capability and a more committed
work force.
b) What constitutes Good HR Practices? What is its impact on the
organizational performance
Answer. 10 (b)
Any practice that deals with enhancing competencies, commitments, and culture building
can be considered as Good HR Practices. The practice can take the form of a system, a
process, an activity, a norm, a rule, an accepted or expected habit, or just a way of doing
things.
Competencies are not merely related to a single individual. They can also relate to pairs
of individuals. For example, the boss and her/ his subordinate, two departmental heads,
two managers, or any two people who transact organization-related activities.
Competencies may also relate to a team or a group on individuals. This includes
departments, task forces, teams and other formal and informal groups and/ or teams that
may come into existence from time to time on a temporary, permanent, or semi-
permanent basis. Competencies may also be related to the organization as a whole. They
may also deal with various areas and functions; technology, organization and
management, behavioral, conceptual, etc. They may include a variety of skills and
abilities ranging from simple awareness, knowledge, and information to highly
sophisticated and complex ones. Attitude, values, and habits also become competencies
though they more often deal with patterns of working.
Developing commitment has a lot to do with motivation and work habits. Commitment is
indicated by work effort, zeal, involvement, and enjoyment of the work or the job.
Commitment building and its management are very much an HR function. Management
of commitment should go beyond incentives and rewards. Commitment should be
continuous and become part of life. Commitment building should be at the level of
individuals, dyads, the work unit, and the entire organization. Various HR systems,
processes, and activities contribute to developing commitment among employees. At the
more visible level, rewards, recognition, and similar interventions can lead to greater
commitment and motivation. At the less visible level, management style, work culture,
the behavior of seniors towards their juniors, etc, influence commitment. Unlike
competencies, which once developed are difficult to lose, it is easy to lose commitment,
though it can be as easily gained. Often, an individual does not respond to all
interventions in the same way in terms of commitment. Thus, salary increases may have a
high motivational value at one time, while even higher compensation increases may not
cut much ice on another occasion.
A strong culture can have a lasting effect and provide sustenance to an organization. It
gives a sense of pride and identity to individuals and teams. It enhances predictability,
reduces transactional costs, and also contributes to commitment. However, the culture
and values associated with an organization need to be appropriate and well articulated.
The instruments of culture building include organizational climate surveys, total quality
management (TQM) interventions, value-clarification exercises, vision-mission

workshops, organizational-renewal exercises, and various other organizational
development interventions.
Good HR Practices are those that contribute to one or more of the three C’s described
above. They need to be identified and implemented cost-effectively, reviewing and
revising them from time to time to enhance their effectiveness and appropriateness. The
researches indicate the following HR practices that effective firms adopt.
• Financial incentives for excellent performance
• Work organization practice that motivate employee effort and capture the
benefits to know-how and skill
• Rigorous selection and selectivity in recruiting
• Higher than average wages
• Employee share-ownership plans
• Extensive information sharing
• Decentralization of decision making and empowerment
• Work organization based on self-managing teams
• High investment in training and skill development
• Having people to do multiple jobs and job rotation
• Elimination of status symbols
• Promotions from within
• A long-term perspective
• Measurement of HR practices and policy implementation
• A coherent view of employment relation
• A more compressed distribution of salaries across and within levels
Impact on organization performance
By following good HR practices companies have benefited in the long term.
1. Ability to cope well with leadership changes

2. Ability to adjust to the changes due to liberalization and exploiting
opportunities to their advantage
3. Demonstrate as a changing and learning organization
4. HRD as a tool to initiate and manage changes
5. Investment in training
6. Integration with HRD and personnel departments

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Q.

b) What is the effect of competition on Human Resource Management?

Since foreign entrants in India have distinct advantage in terms of state-of—art

1. Focus on a single area of competence and not haplessly diversity

As a result of domestic and international competition, human resource management is

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A more comprehensive definition is: “Performance appraisal is a formal structured

• Assessment of personality traits

Objectives of Performance Appraisal:

Human Resource Management Page 4 of 38

Objectives of a 360-degree feedback

A 360-degree appraisal helps in

Human Resource Management Page 5 of 38

Advantages of a 360-degree feedback

• It is more objective than one person assessment of traits and qualities

360-degree appraisal system involves 5 main phases to appraise the employees.

Human Resource Management Page 6 of 38

• Understanding himself – his strengths and weaknesses

Conditions for effective counseling

• A climate of trust, confidence and openness is essential for effective counseling.

Phases in Performance Counselling

The counselling process has three phases.

I. Rapport Building - Here, the counselor attempts to establish a climate of

Human Resource Management Page 7 of 38

Process involved in performance counseling

Questions play an important role in performance counselling. They help in gathering

b) What are the objectives of Potential Appraisal?

The objectives of potential appraisal are:

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10. Benchmarking: This element involves adopting the best practices of

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d. Reduction in Inventory: TQM aims at eliminating shortage in the supply of inputs.

g. Flexibility: TQM increases the flexibility in meeting market demands.

h. Motivates Human Resource: TQM demands employee involvement and

i. Enhances competitiveness: TQM enables a company to face competition

a. Difficult in bringing change: TQM requires significant changes in methods,

b. Rising expectations: As people become more knowledgeable about what quality

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• QCs are usually small groups between 4 and 15 members

• Technical specialists and management consultants assist the circles with

Process involved in Quality Circle

c. Problem solution – A proper environment and group thinking together with

d. Management presentation – The solutions chosen by the circle members are

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Advantages of Quality Circles

1. Self Development: QCs facilitate self-development of individuals by bringing

2. Social Development: QC is a participative and consultative program where

3. Opportunity to acquire knowledge: QC members have an opportunity to

4. Potential leader: Every individual gets an opportunity to develop his

5. Job satisfaction: QCs encourage creativity by tapping the dormant

6. Improved communication skills: Frequent interaction among the members

7. Healthy work environment: QCs generate a tension-free environment which

8. Organizational benefits: The individual benefits generate a synergistic effect

Disadvantages of Quality Circles

1. Unconditional support: The top management should offer unconditional support

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According to Vetter, Manpower planning is defined as the process by which the

Advantages of Manpower planning

• Forecasting long term manpower requirements helps forecast the compensation

However, there are a few limitations of manpower planning as well.