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There are two sets of human resource management functions-managerial and operational. Discuss these functions. Ans. There are two types of functions of HRM. These are: Managerial functions: 1) Planning: This function deals with the determination of the future course of action to achieve desired results. Planning of personnel today prevents crises tomorrow. The personnel manager is expected to determine the personnel programme regarding recruitment, selection and training of employees. 2) Organizing: This function is primarily concerned with proper grouping of personnel activities, assigning of different groups of activities to different individuals and delegation of authority. Creation of a proper structural framework is his primary task. Organizing, in fact, is considered to be the wool of the entire management fabric and hence cannot afford to be ignored. 3) Directing: This involves supervising and guiding the personnel. To execute plans, direction is essential for without direction there is no destination. Many a time, the success of the organization depends on the direction of things rather than their design. Direction then consists of motivation and leadership. The personnel manager must be an effective leader who can create winning teams. While achieving results, the personnel manager must, invariably, take care of the concerns and expectations of employees at all levels. 4) Controlling: Controlling function of personnel management comprises measuring the employees performance, correcting negative deviations and industrial assuring an efficient accomplishment of plans. It makes individuals aware of their performance through review reports, records and personnel audit programmes. It ensures that the activities are being carried out in accordance with stated plans. Operative Functions: 1) Procurement function: The first operative function of personnel management is procurement. It is concerned with procuring and employing people who possess necessary skill, knowledge and aptitude. Under its purview you have job analysis, manpower planning, recruitment, selection, placement, induction and internal mobility. i. Job Analysis: It is the process of study and collection of information relating to the operations and responsibilities of a specific job. ii. Human Resources Planning: It is a process for determination and assuring that the organization will have an adequate number of qualified persons, available at proper times, performing jobs which would meet the needs of the organization and which would provide satisfaction for the individuals involved. iii. Recruitment: It is the process of searching for prospective employees and stimulating them to apply for jobs in an organization. It deals with: a) Identification of existing sources of applicants and developing them. b) Creation / Identification of new sources of applicants.

c) Stimulating the candidates to apply for jobs in the organization. d) Striking a balance between internal and external sources. Selection: It is the process of ascertaining the qualifications, experience, skill, knowledge etc., of an applicant with a view to appraising his / her suitability to a job appraising. v. Placement: It is the process of assigning the selected candidate with the most suitable job in terms of job requirements. It is matching of employees specifications with job requirements. vi. Induction and Orientation: Induction and orientation are the techniques by which a new employee is rehabilitated in the changed surroundings and introduced to the practices, policies, purposes and people etc., of the organization. 2) Human Resource Development : Human resource development refers to the process whereby the employees are continuously helped in a planed way to Acquire or sharpen capabilities required to perform various tasks associated with their present /future expected roles. Develop their general capabilities as individuals so that they are able to discover and exploit their own inner potential for their own and/or organizational development purpose. Develop an organizational work culture where superior subordinate relationships, team work and collaboration among different units are strong and contribute to the professional well being , motivation and pride. This Function includes: i. Training ii. Management Development iii. Career Planning and Development: It is the planning of ones career and implementation of career plans by means of education, training job search and acquisition of work experience. It includes internal and external mobility. a) Internal Mobility: It includes vertical and horizontal movement of an employee within an organization. It consists of transfer, promotion and demotion. Transfer Promotion b) External Mobility: External mobility is of two types, viz., accessions and separations. Accessions: Accessions are additions of new candidates to the existing employees. Accessions include employment of new candidates, re-employment of former employees, employees called back to work after lay-off, etc. Separations: Separations mean termination of employment. They are also called employee turnover. They include: Voluntary Quit: Lay-off Disciplinary Lay-off or Discharge: Retirement, and Deaths: iv.

Organization Development: It is a planned process designed to improve organization effectiveness and health through modifications in individual and group behavior, culture and systems of the organization using knowledge and technology of applied behavioral science. 3) Compensation: It is process of providing adequate, equitable and fair remuneration to the employees. It includes job evaluation, wage and salary administration, incentives, bonus, fringe benefits, social security measures, etc. i. Job Evaluation: It is the process of determining relative worth of jobs; Select suitable job evaluation techniques. Classify jobs into various categories. Determining relative value of jobs in various categories. ii. Wage and Salary Administration: This is the process of developing and operating a suitable wage salary program. It covers: Conducting wage and salary survey. Determining wage and salary .rates based on various factors. Administering wage and salary programs. Evaluating its effectiveness. iii. Incentives: It is the process of formulating, administering and reviewing the schemes of fir incentives in addition to regular payment of wages and salary. It includes: Formulating incentive payment schemes. Helping functional managers on the operation. Review them periodically to evaluate effectiveness. iv. Bonus: It includes payment of statutory bonus according to the Payment of Bonus Act, 1956 and its latest amendments. v. Fringe Benefits: These are the various benefits at the fringe of the wage Management provides these benefits to motivate the employees and to meet their lifes contingencies. These benefits include: Disablement benefit. Housing facilities Educational facilities to employees and children. Canteen facilities. Recreational facilities. Conveyance facilities. Credit facilities. Legal clinic. h) Medical, maternity and welfare facilities. i) Company stores. 4) Maintenance: It aims at protecting and preserving the physical and psychological health of employees through various welfare measures. 5) Integration function: This tries to integrate the goals of an organization with employee aspirations through various employee-oriented programmes, like redressing grievances promptly, instituting proper disciplinary measures, empowering people to decide things independently, encouraging a participative culture, offering constructive help to trade unions etc. 2. Critically examine the relevance of HRM in todays scenario. Also enumerate the challenges of human resource management. Ans. Relevance of HRM lies at the various levels, which are as follows:

1) Individual level: effective management of human resources help employees in the following ways: i. Promoting team work and team spirit among employees. ii. Offering excellent growth opportunities to people who have the potential to rise. iii. Allowing people to work with diligence and commitment. 2) Professional level: By providing healthy working environment, it promotes teamwork in the employees. This is done by: i. Maintaining the dignity of the employees as a human-being. ii. Providing maximum opportunities for personnel development. iii. Providing healthy relationship between different workgroups so that work is effectively performed. iv. Improving the employees working skill and capacity. v. Correcting the errors of wrong postings and proper re-allocation of work. 3) Social level: Proper management of personnel enhances their dignity by satisfying their social needs. This is done by: i. Maintaining a balance between the jobs available and the job seekers, according to the qualifications and needs. ii. Providing suitable and most productive employment, which might bring them psychological satisfaction. iii. Making maximum utilization of the resource in an effective manner and paying the employee a reasonable compensation in proportion to the contribution made by him. iv. Eliminating waste or improper use of human resource. v. By helping people to make their own decisions, that are in their interests. 4) Corporate level: HRM is useful in helping business organizations to attain its goals and objectives more efficiently and effectively in the following ways: i. HRM ensures that business organization has a team of dedicated, competent employees. ii. HRM effectively utilize all available human resources. iii. HRM attracts as well as retains requisite talent through effective HR planning, recruitment, selection, placement, orientation, compensation, and promotion policies. iv. HRM develops requisite skills and correct attitude amongst the employees through employee training, development, performance appraisal, and other schemes. v. HRM effectively secures the willing cooperation of employees through motivation, grievance handling, and so on. 5) National level: HRM plays a very important role in the development of nation in following ways: i. Efficient exploration and utilization of natural, physical, and financial resources of nation. ii. HRM helps to accelerate the process of economic growth. iii. HRM also helps in improving the standard of living and better employment. Challenges of HRM In the last decade, a revolutionary change has taken place in business management practice across the world as well as in India. Some of these challenges are as follows: 1) Globalization: - Growing internationalization of business has its impact on HRM in terms of problems of unfamiliar laws, languages, practices, competitions, attitudes, management styles, work ethics and more. HR managers have a challenge to deal with more functions, more heterogeneous functions and more involvement in employees personal life.

2) New Technology: Advanced technology has tended (regularly) to reduce the number of jobs that require little skill and to increase the number of jobs that require considerable skill, a shift, moving from work to knowledge work. This displaces some employees and requires that others be re-trained. 3) Market challenges: In order to respond to customer needs better, faster, and more economically, organizations have to institutionalize Total Quality Management (TQM) and re-engineering programmes. Each of these programmes requires that human resource management be involved in changing work processes, training, job design compensation, etc. 4) Partnership between Line Management and Human Resource Management: In working with line management to address the organizations challenges, human resources management plays a number of important roles pertaining (related) to advice and counseling of various service activities for policy formulations and implementation and for employee advocacy. 5) Contribution to the success of organizations: - The biggest challenge to an HR manager is to make all employees contribute to the success of the organization in an ethical and socially responsible way. Because societys well being to a large extent depends on its organizations. 6) Change management: This is another challenge that more and more HR departments are facing. Being able to deal with their own changing roles in corporate society, in addition to the changes to other jobs, the overlapping responsibilities, and more. Understanding that change is required is the first step toward accepting the change. 7) Knowledge Management: With increasing use of knowledge, managing knowledge for the future is of paramount importance. The challenge for human resource management is to create knowledge management system that promotes both the development of knowledge and its utilization. 8) Training and development: This is another challenge that HR managers and personnel must deal with more frequently. With the need to cut training costs, training itself often suffers. Yet the skills an employee needs must still be taught. Many companies are meeting this challenge by providing eLearning opportunities that allow employees to receive the training they need without the expenses associated with travel, on-site trainers, hours away from their jobs and high-priced materials. 9) Dynamic Organization Culture: With increasing emphasis on human resource competency, building, changing and sustaining (supporting) a vibrant (existing), dynamic and responsive work culture is a daunting (demoralizing) task. Also, many managers fear modern methods of human resource management and are themselves obstacles in achieving the full potential of human resources and the benefits of human resource management techniques. 3. Write a detailed note on environment of HRM. Ans. Environment is a very important variable in the HRM. Organizations are greatly influenced by changes taking place in internal as well as external environment. Environment of HRM refers to the aggregate of conditions, events and influences that surround and affect it. Following are the external and internal environment in which the HRM has to function.-

External Environment: - External environment exerts (bring something) considerable influence on HRM. Prominent (well-known) external factors affecting organizations human resource are as follows: Technological factors Cultural factors Professionalism HRM Economic factors Social factors


Political-Legal Factors

1) Technological Factors: Technological environment refers to the sum total of knowledge providing ways to do things. Technology not only affects the internal operations of organizations but it also affects how HR professionals work. By linking computers, fax machines, printers, and the likes, information can be disseminated (spread) more quickly. With that information, HR planning can be better facilitated, decisions can be made faster, and communication with employees and external community can be enhanced. Technology has changed HRM practices in the following areas: i. Recruitment & Selection: In recruitment and selection, the total process has been reduced to such an extent (degree) that the entire process can be completed within a very short time. By posting jobs on the internet, required information is assimilated (integrated) quickly; applications from prospective candidates can be received quickly; even interviews can be conducted through telephone; result of selection process can be communicated electronically. ii. Training and Development: In training and development, technology has dramatically changed the way how HR professional train and develop their employees. The internet has provided opportunities to deliver specific information to employees on demand; Visual Display Terminal (VDT) is being used to make training programmes more effective. iii. Communication: In this, Open door policy has been introduced in which any one can communicate with anyone in the organization without being limited because of hierarchical pressures. 2) Economic Factors: Economic factors include all those economic forces which affect the HR function. A brief description of these factors is as follows: i. Suppliers: As regard the HR department, the suppliers are those who provide human resources to the organization. ii. Customers: Nowadays, customers are considered the kings. They want high quality products at reasonable prices. It is the responsibility of every employee to ensure that their work is of the highest standard. Sales are affected by the product quality which is directly related to the skills and qualifications of the employees. iii. Competitors: Competition in a particular industry plays a very important role in the HR functions and activities. iv. Globalization: Due to globalization, the HR managers are required to play challenging roles and create competitive advantages for their concern. Global firms have to continually re-organize their operations and refocus their energies around their crucial areas of competence.

3) Cultural factors: Culture refers to the complex whole which includes knowledge, belief, art, morals, laws, customs and other capabilities and habits acquired by an individual as a member of a society. Culture influences HR functions in the following ways; i. The attitude of workers towards work is the result of their cultural background. For example, Indian workers are known to have a deep-seated apathy (boredom) towards work. ii. Time dimension, which influences HRM, has its roots in culture. in some societies, people are oriented towards the past. iii. Culture makes people confine (jail) themselves to certain occupations and regions. For example, workers employed in coffee estates or tea plantations in Malnad region cannot probably work in places like Bangalore. 4) Social Factors: Firms do not operate in isolation (separation). They are stuck with society. Social impacts have to be carefully evaluated before undertaking any action programme. And society here includes the firms own employees and their friends, relations, neighbours as well. Society also exerts pressure on HRM. 5) Professionalism: Job holders and seekers have become highly professionalized and knowledgeable nowadays. On the one hand, such organizations can boast of a progressive and modern outlook of its personnel; but on the other hand, the problems faced are also serious. A few of these problems are as follows: i. It is a difficult job to motivate such employees. They are motivated only by opportunities which offer challenges, growth and achievement. ii. Retaining such employees in the organizations is another difficult job. The company has to make several allowances to discourage such practices. 6) Unions: A union is comprised of employees who have joined together for the purpose of dealing with their employer. Unions are treated as an environmental factor because, essentially, they become a third party when dealing with the company. 7) Political-Legal factors: The political environment covers the impact of political institutions on the HRM department. In a democratic political setup, there are three institutions which together constitute the total political environment. They are: i. Legislature: The legislature is also called parliament. The plethoras (excess) of labour acts which are in force are enacted by the legislature. ii. Executive: The executive, popularly known as the government, is the law-implementing body. The legislature decides and the executive acts. iii. Judiciary: The judiciary has the role of a watchdog. Internal environment: Internal environment comprises of the factors which affect an organizations human resources from inside the organizations boundaries. Mission, Policies, Organizational culture, HR system etc. are the variable of hr internal environment. 1) Mission: The mission is the very reason and justification for the existence of a firm. An organizations mission statement tells what it is, why it exists and the unique contribution it can make. At various levels, people must carry out assigned tasks keeping the overall mission of the firm in mind. 2) Policies: Policies tell people what they may or may not do. Some of the important policies that influence the work of an HR manager are listed as follows: i. To provide safe working conditions for employees. ii. To encourage the employees to achieve as much of their potential as possible.

iii. To provide such compensation to employees that encourages high level of performance. iv. To provide promotional avenues to employees. 3) Organizational Culture: Organizational culture is the set of assumptions, beliefs, values, and norms that are shared by an organizations members. Organizational culture is very important factor which affects organizational processes and practices including HRM practices. HRM practices are culture bound. 4) Organizational Structure: Organization structure describes the allocation of tasks and responsibilities among individuals and departments. 5) HR System: HRM as a system signifies interconnected but separate elements (called sub-systems) functioning together to realize the overall goal of the organization. 4. Describe various barriers to SHRM. Discuss the ways to overcome these barriers. Barriers to SHRM: Although the concept of strategic HR may make sense logically and automatically, many organizations have a difficult time taking a strategic approach to HR. few issues that delay effective SHRM implementation are as follows: 1) Absence of Long-Term Orientation: SHRM requires long-term planning, orientation, and HR interventions strategies. However, organizations often content themselves with short-term goals and gains. 2) Lack of Strategic Reasoning: When HR managers lack training and experience in strategic management, they find it difficult to develop HR strategies, align the same with corporate strategies, and then influence the employees to support them. 3) Lack of Adequate Support from Top management: If the top management support would not be there, so HR cannot execute the strategic decisions in a proper manner. 4) Resistance from Labour Unions: The introduction of SHRM usually requires extensive changes in the work culture, HR practices and processes. The real or perceived consequences of such changes may frighten the employees. 5) Fear of Failure: Since SHRM include with many uncertainties, HR manager often hesitate to undertake strategic HR initiatives due to the fear of failure. Overcoming Barriers to SHRM Ways to overcome barriers to SHRM are as follows: 1) Conduct a Rigorous Initial Analysis: The initial analysis should cover business needs, corporate culture, and internal and external environment factors. 2) Formulate Strategy: The formulation should set out the rationale for the strategy and spell out its aims, cost and benefit. 3) Gain Support: Particular care needs to be taken to obtain the support of top managers (for whom a business case must be prepared), line managers, employees generally and trade unions. 4) Manage Change: Change management processes should be used to gain acceptance for any new initiatives contained in the strategy. 5) Prepare Action Plans: The action plan should indicate the consultation, involvement, communication and training programmes that will be required. It should also state how progress will be monitored, and the criteria for measuring success against objectives. 6) Project Management and Implementation: This should be conducted by reference to the action or project plan, and would involve monitoring progress and dealing with problems as they arise.

7) Follow-Up and Evaluate: Nothing can be taken for granted. It is essential to follow up and evaluate the results of the initiative. Follow up can take place through interviews; focus group, and desirably, attitude surveys. The evaluation should point the way to action in the form of amendments to the original proposals, the provision of supporting processes, additional support to line managers, intensified communication and training, or getting more resources. 5. Enumerate the nature and importance of SHRM. Strategy: Strategy is a way of doing something. It includes the formulation of goals and set of action plans for accomplishment of that goal. Strategic Management: A Process of formulating, implementing and evaluating business strategies to achieve organizational objectives is called Strategic Management Nature of SHRM 1) Long-Term Focus: SHRM has long-term focus, more than a year, as the business strategies itself are long-term oriented. 2) Associated with Goal-Setting: Strategic human resource management is closely associated with goal-setting, policy formulation and allocation of resources. It is performed at top management levels. 3) Interrelated with Business Strategies: Strategic human resource management is interrelated with business strategies. 4) Fosters Corporate Excellence Skills: Strategic human resource management views employees as the strategic capability of the organization and attempts to distinguish the organization from its competitors in the markets on that basis. It also facilitates learning of new age skills. Importance of SHRM SHRM is important because of the following reasons: 1) Helps Firm in Achieving Cost-Effective Engagement of Labour: SHRM helps firm in achieving cost-effective engagement of labour as part of the competitive advantage initiative. 2) Enables Firm to Meet Changing Needs: The flexible structure and dynamic policies of SHRM enable the firm to meet the changing needs and expectations of the customers effectively and promptly. 3) Provides Clear-Cut Goals, Direction, and Future Focus: Since SHRM requires a well-defined mission and vision for its effective implementation, it is able to provide clear-cut goals, direction, and future focus to the entire organization. 4) Helps Organization in Planning and Executing Organizational Changes: It provides a platform for the organization to plan and execute organizational changes in a timely and effective manner. 5) Ensures Optimum Utilization of Organizational Resources: It ensures the optimum utilization of organizational resources by constantly matching the internal strength of the firm with the external opportunities. 6) Develops, Managers, and Sustains Skills and Knowledge: For a learning organization, it primarily focuses on developing, managing and sustaining the skills and knowledge of its human resources, which should enable firms to get a long-term strategic advantage in the market.

7) Helps in Exploitation of Emerging Opportunities: It enables the firm to pre-empt its competitors by exploiting the emerging opportunities through a continuous scanning of the external environment. 8) Develops a Base for Measurement: It makes it necessary to develop a quantifiable base for measuring the efficacy of the various HR policies and practices. 6. Policies are general statements that guide thinking and action in decision-making. Comment. What are the characteristics of good HR policy? Ans. policies are standing plans that provide guidelines for decision making. They are guides to thinking that establish the boundaries or limits within which decisions are to be made. Within these boundaries, judgment must be exercised. The degree of discretion permitted will vary from policy to policy. Policies perform several important functions in organizations. First and foremost, they simplify decision making. They delimit the area of search for possible alternatives and preclude the need for repeated, indepth analysis of recurring, similar problems. Consequently, they promote efficiency in the utilization of managerial time. Policies also permit managers to delegate to subordinates more decisions and more important decisions than they would otherwise. Thus, if a manager establishes a policy governing a specific class of decisions, he or she will feel more comfortable delegating these decisions to subordinates because they will have set guidelines within which to make choices. The delegation of decision-making authority is important because it frees up managerial time for activities such as opportunity finding and planning that typically is put off. Finally, policies help secure consistency and equity in organizational decisions. Characteristics of Sound HRM Policy While developing sound personnel policies management should pay attention to the following things: 1. Related to Objectives: Policies must be capable of relating objectives functions, physical factors and company personnel. 2. Easy to Understand: Policies should be stated in define, positive, clear and understandable language. 3. Precise: Policies should be sufficiently comprehensive and prescribe limits and yardsticks for future action. 4. Stable as well as Flexible: Personnel policies should be stable enough assure people that there will not be drastic overnight changes. They should be flexible enough to keep the organization in tune with the times. 5. Based on Facts: Personnel policies should be built on the basis of facts and sound judgment and not in personal feelings or opportunistic decision. 6. Appropriate Number: There should be as many personnel policies as necessary to cover conditions that can be anticipated, but not so many policies as to become confusing or meaningless. 7. Just, Fair and Equitable: Personnel policies should be just, fair and equitable to internal as well as external groups. For example, a policy of recruitment from within may limit opportunities to bright candidates from outside: and a policy of recruitment from outside only would limit promotional avenue to promising internal candidates. To ensure justice, it is necessary to Pursue both the policies scrupulously and apply them carefully.

8. Reasonable: Personnel policies must be reasonable and capable of being accomplished. To gain acceptance and commitment from employees, the policy should be conditioned by the suggestions and reactions of those who are affected by the policy. 9. Review: Periodic review of personnel policies is essential to keep in tune with changing times, and to avoid organizational complacency or managerial stagnation. For instance, if the current thinking is in favor of workers participation in management, the personnel policy should be suitably adjusted to accommodate the latest fad, accepted by many in the organization Personnel policies to be sound should also have broad coverage in addition to satisfying the above conditions. Hence, it would be appropriate to discuss the coverage of personnel policies here. 7. Outline the factors affecting human resource planning. Ans. Factors Affecting HRP HRP is influenced by several considerations. The more important of them are:Type and strategy of Organization:- The type of organization is an important consideration because it determines the production process involved, number and type of staff needed, and the supervisory and managerial personnel required. Manufacturing organizations are more complex in this respect than those that render services. 1) Cycles and Planning: - The stage of an organizations growth can have considerable influence on HRP. Need for planning is felt when the organization enters the growth stage. Internal development of people also begins to receive attention in order to keep up with the growth. 2) Environmental Uncertainties: - HR managers rarely have the privilege of operating in a stable and predictable environment. Political, social and economic changes affect all organizations. Personnel planners deal with uncertainties by carefully formulating recruitment, selection, and training and development policies and programmes. 3) Time Horizons: - Yet another major factor affecting personnel planning is the time horizon. On one hand, there are short-term plans spanning six months to one year. On the other hand, there are long-term plans which spread over three to twenty years. In general, the greater the uncertainty, the shorter the plans time horizon and vice versa. 4) Type and quality of Information: - The information used to forecast personnel needs originates from a multiple of sources. A major issue in personnel planning is the type of information which should be used in making forecasts. 5) Nature of jobs being filled: - Personnel planners must consider the nature of jobs being filled in the organization. Job vacancies arise because of separations, promotions and expansion strategies. 6) Off-loading the work: - Several organizations off-load part of their work to outside parties either in the form of sub-contracting or ancillarisation. Off-loading is a regular feature both in the public sector as well as in the private sector. Most organizations have surplus labour and they do not want to worsen the problem by hiring more people. Hence, the need for off-loading. 8. Human resource planning is more than matching demand and supply gaps. Do you agree? Justify your answer. Ans. People are indeed the greatest assets to an organization; they are the foundation, but also one of the largest expenses. Thus it is critical that an organization ensures that these human assets are properly utilized before going ahead and hiring new staff. However, when you have hundreds of projects and

many employees, there is bound to be resource allocation inefficiency - right? Wrong. Resource inefficiency can be greatly reduced - if we make the right choice. In today's organizations, it is increasingly difficult to manually calculate an accurate demand and supply of human resources across the organization. This is because when there are complex organizational structures, matrix management and many projects, the visibility of the work and resources goes down. If you want to enable accurate human resource planning in order to maximize the utilization of your employees, then it is important that you implement a proper centralized system with the right processes. This means not just any old system, but one that will keep up with the pace of your dynamic organization and continuously track the supply and demand of human resources in order to support you bridge the inefficiency gap. When finding the right system for your human resource planning, the following steps are a must: Determine current and future Supply of human resources Determine current and future Demand of human resources Match Demand with Supply and determine the gap Create and implement plan to bridge the gap between Demand & Supply

9. Explain the process of human resource planning in detail. HRP SYSTEM HRP System as such includes following elements or sets for planning. Overall Organization Objectives Business Environment Forecasting Manpower Needs Assessing Manpower Supply Matching Manpower Demand-Supply factors Based on these elements we can draw HRP System Architecture as under.

Business Environment

Organization Objectives & Goals

Manpower Forecast

Manpower Supply Assessment

Manpower Programming Manpower Implementation

Control & Manpower Evaluation

Surplus Manpower

Shortage of Manpower

HRP PROCESS Organizational Objectives & Policies: The objectives of HR plan must be derived from organizational objectives like specific requirements of numbers and characteristics of employees etc. HRP needs to sub-serve the overall objectives by ensuring availability and utilization of human resources. Specific policies need to be formulated to address the following decisions. Internal Hiring or External Hiring Training & Development plans Union Constraints Job enrichment issues Rightsizing organization Automation needs Continuous availability of adaptive and flexible workforce Manpower Demand Forecasting: It is the process of estimating the future quantity and quality of people required. The basis should be annual budget and long term corporate plans Demand forecasting should be based on following factors. Internal Factors: Budget constraints Production levels New products and services Organizational structure Employee separation External Factors: Competition environment Economic climate Laws and regulatory bodies Technology changes Social Factors Reasons for Manpower Demand Forecasting: To quantify jobs To determine the Staff-mix To assess staffing levels and avoid unnecessary costs Prevent shortages of people Monitor compliances of legal requirements with regards to reservations Manpower Forecasting Techniques: Management Judgment: In this technique managers across all the levels decide the forecast on their own judgment. This can be bottom-up or top-down approach and judgments can be reviewed across departments, divisions and top management can conclude on final numbers of manpower required. Ration-Trend Analysis: This technique involves studying past ratios, and forecasting future ratios making some allowance for changes in the organization or its methods.

Work Study Techniques: It is possible when work measurement to calculate the length of operations and the amount of manpower required. The starting point can be production budget, followed by standard hours, output per hour; man-hours required etc could be computed. Delphi Techniques: This technique solicits estimates from a group of experts, and HRP experts normally act as intermediaries, summarizes various responses and report the findings back to experts. Flow Models: This technique involves the flow of following components. Determine the time required, Establish categories, Count annual movements, Estimate probable transitions. Here demand is a function of replacing those who make a transition. Manpower Supply Foreca sting: This process measures the number of people likely to be available from within and outside the organization after making allowance for absenteeism, internal movements and promotions, wastages, changes in hours and other conditions of work. Reasons for Manpower Supply Forecasting:

Clarify Staff-mixes exist in the future Assess existing staff levels Prevent shortages Monitor expected future compliance of legal requirements of job reservations Sources of Supply: Internal Supply: Internal supply techniques help to assess the following Inflows and outflows (transfers, promotions, separations, resignations, retirements etc.) Turnover rate (No. Of separations p.a. / Average employees p.a. X 100) Conditions of work (working hours, overtime, etc.) Absenteeism (leaves, absences) Productivity level Job movements (Job rotations or cross functional utilizations) External Supply: External sources are required for following reasons New blood, New experiences Replenish lost personnel Organizational growth Diversification External sources can be colleges and universities, consultants, competitors and unsolicited applications. HR Plan Implementation: A series of action programs are initiated as a part of HR plan implementation as under.



Recruitment & Selection: Employees are hired against the job vacancies. Based on the manpower demand and supply forecasts made, hiring of employees is initiated based on supply forecasts. For this internal and external sources of manpower are utilized. A formal selection board is established to interview and select the best of the candidates for the required vacancies. Training and Development: The training and development program is charted out to cover the number of trainees, existing staff etc. The programs also cover the identification of resource personnel for conducting development program, frequency of training and development programs and budget allocation.



v. vi.

Retraining and Redeployment; New skills are to be imparted to existing staff when technology changes or product line discontinued. Employees need to be redeployed to other departments where they could be gainfully employed. Retention Plan: Retention plans cover actions, which would reduce avoidable separations of employees. Using compensation plans, performance appraisals, avoiding conflicts, providing green pastures etc, can do this. Downsizing plans: Where there is surplus workforce trimming of labor force will be necessary. For these identifying and managing redundancies is very essential. Managerial Succession Planning; Methods of managerial succession plans may vary. Most successful programs seem to include top managements involvement and commitment, high-level review of succession plans, formal performance assessment and potential assessment and written development plans for individuals. A typical succession planning involves following activities. Analysis of demand for managers and professionals Audit of existing executives Projection of future likely supply from internal and external sources Individual career path planning Career counseling Accelerated promotions Performance related training and development Strategic recruitment

Control & Evaluation of HRP: HR Plan must also clarify responsibilities for control and establish reporting procedures, which will enable achievements to be monitored against the plan. The HR Plan should include budgets, targets and standards. These plans may simply be reports on the numbers employed, recruited against targets etc. 10. Explain the steps involved in job analysis. Ans. Stages in the Job Analysis Process The process of job analysis must be conducted in a logical manner, following appropriate management and professional psychometric practices. Therefore, a multistage process usually is followed, regardless of the job analysis methods used. The stages for a typical job analysis are outlined here, but they may vary with the methods used and the number of jobs included. Figure illustrates the basic stages of the process. 1) Collection of Factual Material: Collection of the factual information relating to job is the first step in job analysis process. According to Terry "the make-up of a job, its relation to other jobs and its requirements for competent performance are essential information needed for a job evaluation." Two types of information are collected information regarding job such as its physical environment, its social environment, financial conditions etc. and (b) information relating to qualities of persons holding the job. 2) Developing a Job-Description: The information collected is to be developed in the form of a job description. Job description is a written statement that describes the main features of the job as well as the qualifications which the job incumbents must possess. 3) Developing Job Specification: The next step is to convert the job description statements into job specifications. Job specification is a statement of minimum acceptable qualities of a job incumbent. It specifies the standard by which the qualities of the person are measured. Such statement is used in selecting a person matching with the job.

4) Preparation of Report: The job analyst prepares a report mentioning the analysis of various activities on the job and the qualities of the individual to be placed on the job. The report is revised in the light of the suggestions given by the supervisor or the personnel manager. 5) Approval: The complete report is now submitted to the top executive for approval. The office bearers of the trade unions may also be taken into confidence before approving the report. The final report should be approved by the top executive who is responsible for making final decision on the matter. 11. Describe the methods of collecting job analysis information. Also describe the various problems in job analysis. Ans. Methods: There are different methods used by organization to collect information and conduct the job analysis. These methods are 1) Personal observation: - In this method the observer actually observes the concerned worker. He makes a list of all the duties performed by the worker and the qualities required to perform those duties based on the information collected, job analysis is prepared. 2) Interview method: - In this method an interview of the employee is conducted. A group of experts conduct the interview. They ask questions about the job, skilled levels, and difficulty levels. They question and cross question and collect information and based on this information job analysis is prepared. 3) Critical incident method: - In this method the employee is asked to write one or more critical incident that has taken place on the job. The incident will give an idea about the problem, how it was handled, qualities required and difficulty levels etc. critical incident method gives an idea about the job and its importance. (A critical means important and incident means anything which takes place in the job). 4) Questioner method: - In this method a questioner is provided to the employee and they are asked to answer the questions in it. The questions may be multiple choice questions or open ended questions. The questions decide how exactly the job analysis will be done. The method is effective because people would think twice before putting anything in writing. 5) Log records/Daily Diary:- Companies can ask employees to maintain log records or daily diary and job analysis can be done on the basis of information collected from the record. A log record is a book in which employee records /writes all the activities performed by him on the job. The records are extensive as well as exhausted in nature and provide a fair idea about the duties and responsibilities in any job. In this method worker actually does the work himself and idea of the skill required, the difficulty level of the job, the efforts required can be known easily. 6) HRD records: - Records of every employee are maintained by HR department. The record contain details about educational qualification, name of the job, number of years of experience, duties handled, any mistakes committed in the past and actions taken, number of promotions received, area of work, core competency area, etc. based on these records job analysis can be done.

Problems in Job Analysis

1) Lack of Management Support: The biggest problem arises when a job analyst does not get proper support from the management. The top management needs to communicate it to the middle level managers and employees to enhance the output or productivity of the process. In case of improper communication, employees may take it in a wrong sense and start looking out for other available options. They may have a notion that this is being carried out to fire them or take any action against them. In order to avoid such circumstances, top management must effectively communicate the right message to their incumbents. 2) Lack of Co-operation from Employees: If we talk about collecting authentic and accurate job-data, it is almost impossible to get real and genuine data without the support of employees. If they are not ready to co-operate, it is a sheer wastage of time, money and human effort to conduct job analysis process. The need is to take the workers in confidence and communicating that it is being done to solve their problems only. 3) Inability to Identify the Need of Job Analysis: If the objectives and needs of job analysis process are not properly identified, the whole exercise of investigation and carrying out research is futile. Managers must decide in advance why this process is being carried out, what its objectives are and what is to be done with the collected and recorded data. 4) Biasness of Job Analyst: A balanced and unbiased approach is a necessity while carrying out the process of job analysis. To get real and genuine data, a job analyst must be impartial in his or her approach. If it cant be avoided, it is better to outsource the process or hire a professional job analyst. 5) Using Single Data Source: A job analyst needs to consider more than one source of data in order to collect true information. Collecting data from a single source may result in inaccuracy and it therefore, defeats the whole purpose of conducting the job analysis process. 12. Discuss various techniques of job design. Explain the factors affecting job design. Ans. Techniques of Job Design

1) Work Simplification: Job is simplified or specialized. The job is broken down into small parts and each part is assigned to an individual. To be more specific, work simplification is mechanical pacing of work, repetitive work processes, working only on one part of a product, predetermining tools and techniques, restricting interaction amongst employees, few skills requirement. Work simplification is used when jobs are not specialized. 2) Job Rotation: When incumbents become bore of routine jobs, job rotation is an answer to it. Here jobs remain unchanged, but the incumbents shift from one job to another. On the positive side, it increases the intrinsic reward potential of a job because of different skills and abilities needed to perform it. Workers become more competent in several jobs, know variety of jobs and improve the self-image, personal growth. Further the worker becomes more valuable to the organization. Periodic job changes can improve interdepartmental cooperation. 3) Job Enlargement: It means expanding the number of tasks, or duties assigned to a given job. Job enlargement is naturally opposite to work simplification. Adding more tasks or duties to a job does not mean that new skills and abilities are needed. There is only horizontal expansion Benefits of Job Enlargement: Task Variety Meaningful Work Modules Full Ability Utilization Worker Paced Control Meaningful Performance Feedback Disadvantages of Job Enlargement: High Training Costs Redesigning existing work system required Productivity may not increase necessarily Workload increases Unions demand payhike Jobs may still remain boring and routine 4) Job Enrichment: An enriched job will have more responsibility, more autonomy (vertical enrichment), and more variety of tasks (horizontal enrichment) and more growth opportunities. The employee does more planning and controlling with less supervision but more selfevaluation. In other words, transferring some of the supervisors tasks to the employee and making his job enriched. 5) Autonomous of Self-Directed Teams: Empowerment results in self-directed work teams. A self directed team is an intact group of employees responsible for whole work segment, they work together, handle day-to-day problems, plan and control, and are highly effective teams. 6) High Performance Work Design: Improving performance in an environment where positive and demanding goals are set leads to high performance work design. It starts from the principle of autonomous groups working and developing an approach, which enables group to work effectively together in situations where the rate of innovation is very high. Operational flexibility is important and there is the need for employees to gain and apply new skills quickly with minimum supervision. However due to bureaucracy high performance work design does not work. Factors Affecting Job Design

The guidelines influencing or factors affecting job design are depicted below.

Proper scope of job: The scope of the job should be proper. If the scope is narrow (less), then the job will not be challenging. It will not give an opportunity for development. The manager will not get satisfaction after completing an easy job. If the scope of the job is very wide, then the manager will not be able to handle it properly. This will cause stress, frustration and loss of control. Therefore, scope of the job must be balanced and proper. Full-time challenge of the job: The job should be so challenging that it takes up the full-time and effort of the manager. So, the service of the manager must be fully utilized. Managerial skills: The skills of the manager should be considered before designing his job. All managers do not have equal skills. So jobs should be designed after considering the skills of the manager. Organizations requirements: Jobs must be designed according to the requirements of the organization. We cannot use the same job design for all organizations. Individual likes and dislikes: People have different likes and dislikes. Some people like to work alone while some people prefer to work in groups. Some people want to do only planning and decision making while other people like to implement these plans and decision. So, individual likes and dislikes must be considered while designing the job. Organizational structure: Organizational structure also affects the job design. Individual jobs must fit into the organizations structure. Technology: The level of technology used by the organization also affects the job design. An organization having a high level of technology will have different job designs compared to an organization having a low level of technology.

13. Why is it important for manager to understand the concept of job design?

Ans. Why is job design important? Good job design increases the value of the position to the organization, engages the worker and reduces individual and organizational risk. It leads to greater organizational effectiveness and efficiency and better results from employees. Key benefits include: Organizational Benefits: i. Increased productivity and efficiency ii. Less need for close staff supervision, checking and control iii. More effective work teams iv. Skilled, flexible, responsive and able workforce to meet work requirements v. Targeted training to maximize value from training investment vi. Improved talent management and succession planning vii. Safer and healthier workplace viii. Improved employee attraction, engagement and retention Employee Benefits: i. Greater clarity of work role, purpose and accountabilities ii. Shared understanding of work expectations with supervisor iii. Good team cohesion as roles, relationships and resources are clearly defined iv. Varied work and challenges, opportunity to develop work skills, flexibility and experience v. Targeted training to meet current and future job needs vi. Better career pathways and developmental opportunities vii. Safer and healthier workplace, Support for work/life balance viii. Increased job satisfaction and engagement 14. Define job specification and distinguish it from job description. Ans. Job Description and Specification Job descriptions describe the job and not the individual who fills the job. They are the result of job analysis within a given organization and are essential to the selection and evaluation of employees. Job advertisements or postings are based on the job description. The character of the organization is the basis for the description of positions. Information about the organization might include: Name of Company Main Product(s) and/or Service(s) Location Number of Employees Company Structure Names of Officers Hours of Work Job description: Job description is a written statement that defines the duties, relationships and results expected of anyone in the job. It is an overall view of what is to be done in the job. Typically it includes is a written statement that defines the duties, relationships and results expected of anyone in the job. It is an overall view of what is to be done in the job. Typically it includes Job Title Date

Title of immediate supervisor Statement of the Purpose of the Job Job Specifications: Job Specification involves listing of employee qualifications, skills and abilities required to meet the job description. These specifications are needed to do job satisfactorily. In other words it is a statement of minimum and acceptable human qualities necessary to perform job properly. Job specifications seeks to indicate what kind of persons may be expected to most closely approximate the role requirements and thus it is basically concerned with matters of selection, screening and placement and is intended to serve as a guide in hiring. Degree of education Desirable amount of previous experience in similar work Specific Skills required Health Considerations 15. Discuss the factors governing recruitment. Enumerate the steps involved in recruitment process. Ans. Factors Governing Recruitment: External Factors: Demand and Supply (Specific Skills) Unemployment Rate (Area-wise) Labor Market Conditions Political and Legal Environment (Reservations, Labor laws) Image Internal Factors: Recruitment Policy (Internal Hiring or External Hiring?) Human Resource Planning (Planning of resources required) Size of the Organization (Bigger the size lesser the recruitment problems) Cost Growth and Expansion Plans Recruitment Process: Recruitment is a process consisting of various activities. Recruitment Planning Identifying Recruitmen t Sources Contacting Sources Application Pool ss

Evaluation and Control 1) Recruitment Planning: Recruitment process starts with its planning which involves the determination of following: i. Number of Contacts: The organization has to plan about the number of applicants it should receive in order to fulfill all its vacancies with right personnel. ii. Type of Contacts: This refer to the type of personnel to be informed about the job opening based on job description and job specification.

2) Identifying Recruitment Sources: The second step is to identify the sources as it is a medium of choosing candidates for the recruitment process. 3) Contacting Sources: After the finalization of sources from where the prospective candidates will be selected, the process of contacting these sources starts. Recruitment is a two-way street; it involves recruiter and recruitee. 4) Application Pool: Whenever the method of recruitment is adopted, the ultimate objective is to attract as many candidates as possible o as to have flexibility in selection. 5) Selection Process: Selection is the process of differentiating between applicants in order to identify (and hire) those with a greater likelihood of success in a job. 6) Evaluation and Control: Evaluation and control is essential to improve the efficiency of future recruitment efforts. 16. Selection is a negative process. Elucidate. Discuss the various steps in selection process. Ans. Selection is Negative: Selection is the process of picking up individuals (out of the pool of job applicants) with requisite qualifications and competence to fill jobs in the organization. A formal definition of Selection is as under. Selection is a powerful force in evolution, and it works in many ways. In the end, however, selection constantly sorts through the variation that is produced by mutations to select the fit and remove the unfit, while ignoring neutral changes. A few distinct types of selection are illustrated in Figure 1. Stabilizing selection keeps the population at one stable optimal value. Directional selection transforms the value of a trait by increasing the frequency of individuals closer to a distant optimum. Disruptive selection increases the frequency of large and small values of a trait at the expense of intermediate values. Balancing selection selects the optimal compromise among several constraints At their core, all forms of selection involve individuals with inherited differences in fitness competing within the same population. This competition is about fitness as measured by survival rates, fecundity, or some other trait that correlates with fitness. The "winner" of the competition is positively selected, and its genotype increases in frequency; on the other hand, the "loser" is negatively selected, and the frequency of its genotype decreases. Thus, negative selection and positive selection cannot be separated. To make communication easier, however, scientists talk about positive selection when the focus of a particular study is on an increase in rare variants that improve optimal fitness, and they speak of negative selection when the focus is on the removal of harmful variants. If negative selection is too weak to remove harmful mutations, then deleterious mutation accumulation will occur, and a gradual decay of genomic integrity will be the result. This can lead to extinction for some species if it continues long enough; however, the resulting widespread existence of deleterious mutations in such a genome will eventually also lead to the occurrence of back mutations, which (among many other factors) can significantly contribute toward maintenance of a reasonable level of integrity in the genome of other species in the long term. If negative selection is too strong for the whole population, extinction will occur, unless the population is rescued in time. Extinction can occur if the negative selection considered is "hard" selection, which actually reduces the number of surviving offspring that are produced. "Soft" selection (which occurs when the reproductive capacity of an organism is high enough) can also be negative, but it will lead only

to competition over who will increase in frequency within the population, effectively without a reduction of the maximal number of offspring that can be produced. Thus, no extinction risk exists with soft selection. PROCESS / STEPS IN SELECTION 1. Preliminary Interview: The purpose of preliminary interviews is basically to eliminate unqualified applications based on information supplied in application forms. The basic objective is to reject misfits. On the other hands preliminary interviews is often called a courtesy interview and is a good public relations exercise. 2. Selection Tests: Jobseekers who past the preliminary interviews are called for tests. There are various types of tests conducted depending upon the jobs and the company. These tests can be Aptitude Tests, Personality Tests, and Ability Tests and are conducted to judge how well an individual can perform tasks related to the job. Besides this there are some other tests also like Interest Tests (activity preferences), Graphology Test (Handwriting), Medical Tests, Psychometric Tests etc. 3. Employment Interview: The next step in selection is employment interview. Here interview is a formal and in-depth conversation between applicants acceptability. It is considered to be an excellent selection device. Interviews can be One-to-One, Panel Interview, or Sequential Interviews. Besides there can be Structured and Unstructured interviews, Behavioral Interviews, Stress Interviews. 4. Reference & Background Checks: Reference checks and background checks are conducted to verify the information provided by the candidates. Reference checks can be through formal letters, telephone conversations. However it is merely a formality and selections decisions are seldom affected by it. 5. Selection Decision: After obtaining all the information, the most critical step is the selection decision is to be made. The final decision has to be made out of applicants who have passed preliminary interviews, tests, final interviews and reference checks. The views of line managers are considered generally because it is the line manager who is responsible for the performance of the new employee. 6. Physical Examination: After the selection decision is made, the candidate is required to undergo a physical fitness test. A job offer is often contingent upon the candidate passing the physical examination. 7. Job Offer: The next step in selection process is job offer to those applicants who have crossed all the previous hurdles. It is made by way of letter of appointment. 8. Contract of Employment: After the job offer is made and candidates accept the offer, certain documents need to be executed by the employer and the candidate. Here is a need to prepare a formal contract of employment, containing written contractual terms of employment etc.

17. Describe the barriers related to selection. Also write a note on selection in Indian context. Ans. Barriers to Effective Selection: i. ii. iii. iv. v. vi. Perception: We all perceive the world differently. Our limited perceptual ability is obviously a stumbling block to the objective and rational selection of people. Fairness: Barriers of fairness includes discrimination against religion, region, race or gender etc. Validity: A test that has been validated can differentiate between the employees who can perform well and those who will not. However it does not predict the job success accurately. Reliability: A reliable test may fail to predict job performance with precision. Pressure: Pressure brought on selectors by politicians, bureaucrats, relatives, friends and peers to select particular candidate are also barriers to selection. Diversity of Selection Approaches: The diversity of selection approaches and tests indicates that there is no one perfect way to select managers.

Selection in Indian Context Conditions of labour market largely determine the selection process. As is well-known, there is a strange paradox in our country. There is large-scale unemployment juxtaposed with shortage of skilled labour. Unemployment prevails among people who are unemployable individuals who have acquired university degrees but do not possess any specific skills. Matriculates, B.As, B.Coms and B.Scs fall into this category. All the evils associated with selection- corruption, favoritism and influence are found in hiring these people. Selection is, obviously, not systematic and at times bizarre too. Selection practices in hiring skilled and managerial personnel are fairly well-defined and systematically practiced. Particularly in hiring managerial personnel and executives, a lot of professionalism has come in, thanks to the realization that these individuals are difficult to come by and no effort is too excess to attract them. Specialist agencies are available whose services are retained for hiring technical and managerial personnel. Merit and not favouritism, objectivity and not subjectivity will be the criteria for such selections. Another trend observed is to attract and hire stars. Stars beget (lead to) stars is the belief. Monetary terms may not be attractive and there is a risk that the business might fail. But the stars join because they like to work with a charismatic leader. 18. If employees are properly selected, there should be no need for an induction programme. Do you agree or disagree. Justify your viewpoint. Ans: When a new employee joins a company, more often than not, there is a period of time that is required for a person to settle in to the new role before they are able to operate at full capacity. This is a common scenario when one is exposed to a new working environment and culture despite the credentials and competencies a new employee brings into the company. One reason however that precious time is wasted on unnecessary delays is the fact that some companies do not have induction programs or a process used within the business to welcome new employees and prepare them for their new role. A comprehensive and well-prepared induction program helps new staff quickly understand the responsibilities of their new role and the employers expectation of them. Investing in such a program ensures that the learning curve is shorter, as not only are skills and knowledge of the company quickly obtained and understood, but interaction, communication and collaboration with others is likely to take place much quicker than if no program was outlined. As there are different kinds of employment, so induction programs also vary. For some this may include occupational, health, and safety training depending on the nature of the industry and the type of work environment. E.g hospitals, mining or manufacturing sectors may devote much of their induction program to this, whereas an office environment with less exposure to danger may not need to undertake as detailed training in this area, but spend the majority of the induction program on skill requirements, regulatory essentials, and company and client history. When investing in a good staff induction program, the rewards will be many to both the organization and the new employee. This process is important in providing an early introduction to the work environment, the outline of the role and setting up the employee so they can be functional and adding value to the organization in the quickest period of time. Orientating your new hire will mean that the terms of employment are clearing understood along with all other conditions around their employment, such as the legal and regulatory requirements for working in the organization as well as health and safety matters. From the employers perspective, an induction program forms part of a process that enables the new recruit to become immediately useful and

integrated into the team, rather than be thrown in the deep end without knowing and understanding how to do their job, or how their role fits within the rest of the organization. A well designed induction program can provide the company increased productivity in a shorter period of time than just waiting for the new employee to become acclimatized to the job. It may also lead to the reduction of short-term turnover of staff due to disorientation about what to do and what is expected of him or her. 19. What are the benefits and problems associated with placement? Ans. Placement problems Placement is an important resource activity. If neglected, it may create employee adjustment problems leading to absenteeism, turnover, accidents, poor performance, etc. the employee will also suffer seriously. He may quit the organization in frustration, complaining bitterly about everything. Proper placement is important to both employee as well as organization. Major benefits of proper placement Show good results on the job: Good placement enhance the morale of the candidate to give their maximum effort to the organization. Get along with people easily: In this people get involve with the others to make the good environment and interact with them to learn more. Keep his spirits high, report for duty regularly: It helps to augment the dedication towards the organization to achieve maximum result. Avoid mistakes and accidents: Proper placement carry to avoid the mistakes as they placed a competent candidate in the organization.

20. Discuss the typical orientation programme. State some important requisites for effective employee orientation. Ans. Orientation Orientation or induction is the process of receiving and welcoming an employee when the first joins a company and giving him/her the basic information he/she needs to settle down quickly and happily to start work. The purpose of orientation is to make the new entrant feel at home and develop a sense of pride in the organization. Definition: Orientation is a systematic and planned introduction of employees to their jobs, their coworkers and the organization. Typical Orientation Programme

1) Planning an Induction Programme: Before the induction programme can be developed this process normally takes between three to six months a number of planning considerations must be looked at. The following can be identified as key planning considerations: i. Induction policy ii. Budget iii. Other planning consideration 2) Designing an Induction Programme: It is important to note that the different groups of employees within the organization require different induction programmes. Separate induction programmes should be designed to meet the needs of the different groups. For example, induction that could be biased, inappropriate or infirming must be rectified immediately. The induction programme should thus be designed to include all the information that the newcomer will need to do their job effectively and efficiently. The information the newcomer will require can be divided into two main categories: i. Job-Related Information: This information describes what the job entails and how it is done. ii. General Information: This includes a great deal of information, such as fringe benefits, safety and accident prevention and physical facilities. 3) Implementing an Induction programme: Induction can begin before the first day. Literature such as company reports has a major influence on the manner in which a newcomer perceives the organization. 4) Evaluating an Induction programme: The evaluation of the induction programme is one of the most important steps in the process. Before developing an evaluation process, it needs to be clear about what to be evaluated. In evaluation training programme trainers can evaluate what the participants thought about the programme and about the trainers. Trainers can also found how much the participants have learned in the induction training. Requisites of Effective Orientation Requisites of effective orientation are as follows: 1) Involvement of Top Management: Top management should take keen interest in the induction process. It ensures a feeling of partnership and ownership in the minds of the new employee and helps him to integrate well to the organization. 2) Prior Planning: Since induction is a process and not an event, therefore, prior planning for the induction of the new employee must be carried-out carefully so that induction serves its purpose at the time of pre-during-, and post-induction stage. 3) Assessment of Information Needs: Depending on the level and other factors, what the new employee should know must be determined in advance to facilitate an effective learning experience during induction process. 4) Feedback Session: All induction must end with a feedback session with line management and HR personnel so that doubts can be cleared and queries may be answered appropriately. 5) Giving Knowledge to New Employees: Employees are given knowledge of what supervisors and co-workers like, telling how long it should take for them to reach an acceptable level of performance and encouraging them to seek help and advice when needed. 6) Sufficient Time Should be Given to New Employees: New employees should be allowed sufficient time to adapt to a work situation before job demand is increased.

21. What could be basis/principles to identify the criteria for promotion? Outline their merits and demerits. Ans. Principles/Basis of Promotion There are basically two bases of promotion merit and seniority, but the paradox is that in any type of organization, some employees want that promotion should be based on merit while others want it on seniority basis. Basis of promotion are explained below: 1. Promotion on Merit Basis: Merit is taken to denote an individual employees skill, knowledge, ability, efficiency and aptitude as measured from educational, training and past employment record. This competence is measured by analyzing the employees present performance and his/her potential for promotion. Merits of Promotion on Merit Basis: When merit is adopted as a basis for promotion it yields following benefits: i. It ignites employees to show better performance continuously, as they feel that their merit would be rewarded suitably. ii. It helps in attracting and retaining competent employees. iii. It works as a golden handcuff regarding employee turnover. iv. It continuously encourages the employees to acquire new skills, knowledge, etc., for their all round development. Demerits of Promotion on Merit Basis: Demerits of promotion on merit basis are as follows: i. The main difficulty in weighing merit in making promotion decisions is the lack of objective criteria. Traits, skills, attitudes, and other personality constructs that make up merit are frequently ambiguous. ii. Promotion on merit basis ignores the basic fact that a person matures with age and many of the emotional intelligence-related competencies increase with age. iii. Many people, particularly trade union leaders, distrust the managements integrity in judging merit. 2. Promotion on Seniority Basis: Seniority refers to relative length of service in the same job and in the same organization. This system is also based on the custom that the first in should be given first chance in all benefits and privileges. Merits of Promotion on Seniority Basis: i. It is relatively easy to measure the length of service and judge the seniority. ii. There would be full support of the trade unions to this system. iii. Every party trust the managements action as there is no scope for favouritism and discrimination and judgement. iv. It gives a sense of certainty of getting promotion to every employee and of their turn of promotion. Demerits: i. The assumption that the employees learn more relatively with length of service is not valid as this assumption has reverse effect. In other words employees learn up to a certain age and beyond that stage the learning ability of the cognitive process diminishes.

It demotivates the young and more competent employees and results in employee turnover particularly among the dynamic force. 3. Promotion on Merit-cum-Seniority Basis: Promotion on merit or seniority taken individually has certain demerits. None of these can be adopted as criterion for promotion in all cases. 22. Elaborate types of promotion. Mention the various reasons for promotion. Ans. Promotion A promotion is a move to a higher-level job with more authority, responsibility, and pay. In promotions, its important to consider not only how an employee performs in the current job, but also how he or she will adapt to a new one. Definition A movement to a position in which responsibilities and presumably, prestige are increased - Dale Yoder. A promotion involves a change from one job to another that is better in terms of status and responsibility. -Edwin. B. Flippo. Types of Promotion: Open promotions: An organization or a company considers all individuals within it as a potential candidate and announces it to various aspirants internally. Closed promotions: An organization or company in which the candidate for higher position opening or vacancies is restricted and not open for all the individuals, within the organization and also does not announce the vacancies internally. Multiple Chain promotions: This provides for a systematic linkage of each position to several others. Such promotions identify multi-promotional opportunities through clearly defined avenues of approach. Dry promotions: Dry promotions are those that are given in lieu of increase in remuneration. Horizontal promotion: Promotions have similar kind of work. Ex lower grade to higher grade without any change in work content. Vertical promotion: Those which change the nature of the work. Ex Supervisor to Manager.


Reasons/Purpose for Promotion Organizations promote the employees with a view to achieve the following purposes/ reasons: To Utilize Employee Skill: To utilize the employee skill, knowledge at the appropriate level in the organizational hierarchy resulting in organizational effectiveness and employee satisfaction. To Develop Competitive Spirit: To develop competitive spirit and inculcate the zeal in the employees to acquire the skill, knowledge, etc., required by higher-level jobs. To Develop Competent Sources: To develop competent internal source of employees ready to take up jobs at higher levels in the changing environment. To Promote Employee Self-Development: To promote employee self-development and make them await their turn of promotions. It reduces labour turnover.

To Promote Feeling of Content: To promote a feeling of content with the existing conditions of the company and a sense of belongingness. This helps in building loyalty and boosting morale of employees. To Promote Employees Interest: To promote interest in training, development programmes and in team development areas. To Reward Employees: To rewards employees for past performance, commitment, loyalty and to encourage them to continue their efforts. To Help in Problem-Solving: To get rid of the problems created by the leaders of workers unions by promoting them to the officers levels where they are less effective in creating problems.

23. Discuss the various types of transfer. State the purpose/reasons and principles of transfer. Ans. Types of Transfer On the Basis Of Purpose i. Production Transfer: When the transfers are being made for filling the position in such departments having lack of staff, from the departments having surplus manpower it is called production transfer. It prevents the layoffs form the organization. Also it is good to adjust existing staff rather than to hire the new one. ii. Remedial Transfer: Remedial transfer refers to rectification of wrong selection or placement of employees. If the employee can adjust himself in the given job he can be transferred to the job where he can use his skills and abilities accordingly. iii. Versatility Transfer: Such transfers are done to increase the versatility in the employees so that he can work different kind of jobs. This is done by transferring employee to different jobs closely related in same department or process line.. This is used as a training device. It helps employee to develop him and he is equipped for the high responsibility jobs as he is having knowledge of the whole process. iv. Shift Transfer: In many multi-shifts jobs such as Call centers employees are transferred from one shift to another due to their personal reasons like health problem or evening college for higher studies or any family problems. v. Replacement Transfers these are transfers of long service employees to similar jobs in other departments where they replace employees with shorter service. The object of these transfers is also to retain the efficient and trained employees as long as possible but in this process some short service employees may be thrown out of employment. vi. Precautionary Transfers such transfers are made as a precautionary measure to avoid the misuse of office or misappropriation of funds by the employees. vii. Personnel Transfers these transfers are made primarily to meet the personnel requests or needs of the employees. If a worker is not satisfied with his present assignment or he wants a change in job or place on some other personal grounds, he may be allowed to move from one job to another. On the Basis Of Unit i. Sectional Transfers these transfers are made within the department from one section to another. The main purpose of such transfers may be to train the workers and prepare them to handle the operations of the different sections of the department.

ii. iii.

Departmental Transfers these are the transfers from one department to another department within the plant. They are decided by mutual consultations among the departmental heads. Inter-plant Transfers if there are more than one plant under the control of same management transfer may be made from one plant to another on varied reasons. Such transfers are called inter- plant transfers.

Reason/Purpose of Transfer i. ii. iii. iv. v. vi. vii. viii. ix. x. To meet the organizational requirements. To meet Employees Requests. To Ensure Better Utilization of the Employees. To Make the Employees More Versatile. To Adjust the Workforce. Departmental vacancies can be filled with transfer of employees from overstaffed department. Employees can be transferred to the position or department with the higher priority workload. To Provide Relief to the Employee. To Reduce Conflicts and incompatibilities. To penalize the Employees.

Principles: i. ii. iii. iv. v. Transfer policy must be in writing and be made known to all the employees of the organization. The policy must very clearly specify the types and the circumstances under which company initiated the transfer will be made. Basis of the transfer should be clearly mentioned in the policy, whether it will be based seniority or on the skill and the competency or any other factors. It should indicate the executives who will be responsible for initiating and approving the transfers. The policy should specify the region or unit of the organization within which transfers will be administered.

24. What do you mean by the term separation? Elaborate the several types of separation. How retrenchment is being differed from lay-off? Ans. Separation The action or state of moving or being moved apart. It means termination of service with the organization for one or the other reason. The employees are separated from the payroll of the company.

DEFINITION In the words of keith Davis, Separation is a decision that the individual and the organization should apart. Separations can be taken the following forms: FORMS/TYPES OF SEPARATION Resignation: A resignation refers to the termination of employment at the instance of the employees. It may be of two types :

Voluntary resignation Compulsory resignation Dismissal or Discharge: Dismissal is the termination of the services of an employee as a punitive measure of some misconduct. Death: Some employees may be dying in service, when the death is caused by occupational hazards; the employees family gets the compensation as per the provision. Suspension: Suspension means prohibiting an employee from attending work and performs normal duties assigned to him. This is a serious punishment which may lead the termination, if the charges against the suspended are proved. Retrenchment: Retrenchment, too, results in the separation of an employee from his employers .The principle in the procedure of retrenchment is that the last person employed in each category must be the first person to be retrenched. Layoff: It is the temporary separation of the employee from his employers. 8 Major Differences between Lay-Off and Retrenchment are mentioned below: Lay-Off: 1. Section 2 (kkk) defines Lay-off. 2. Lay-off is purely temporary. 3. In lay-off, the employer is compelled to refuse employment under certain circumstances, viz. shortage of raw materials, power, finance, etc., which arise temporarily in the industry. 4. Where the employer declares lay-off, the industry stops its function. 5. In lay-off, all the employees or a group of employees are refused to employment. 6. The Conditions Precedent is not necessary in case of lay-off. 7. The laid-off employees are paid laid-off compensation. The payment of gratuity does not arise in layoff. 8. All of the laid-off employees should be taken back in their usual posts, as soonas the lay-off lifted out. Retrenchment: 1. Section 2 (oo) defines Retrenchment. 2. Retrenchment is permanent. Of course, the re-appointment of retrenched persons is not bar at law. They may again be appointed in appropriate cases. 3. In retrenchment, the employer lessens over burdened employees under circumstance s, viz. Government policies, loss in some departments, etc. 4. While the process of retrenchment is going on, the industry does not stop its function. It continues to function. 5. In retrenchment, the last comes, first goes. 6. The Conditions Precedent are to be followed in case of retrenchment, viz. notice, retrenchment compensation, notice to Government in the prescribed manner, etc. (Sec. 25-F). 7. The retrenched employees are paid retrenchment compensation + payment of gratuity 8. Re-employment of retrenched workmen also takes place in certain circumstances. But it is, not mandatory that all the retrenched workers should be appointed. (Sec. 25-H) 25. What are the importance of training & development in industry? Define.

Ans. Importance of Training and Development 1) Optimum Utilization of Human Resources: Training and Development helps in optimizing the utilization of human resource that further helps the employee to achieve the organizational goals as well as their individual goals. 2) Development of Human Resources: Training and Development helps to provide an opportunity and broad structure for the development of human resources technical and behavioral skills in an organization. It also helps the employees in attaining personal growth. 3) Development of skills of employees: Training and Development helps in increasing the job knowledge and skills of employees at each level. It helps to expand the horizons of human intellect and an overall personality of the employees. 4) Productivity: Training and Development helps in increasing the productivity of the employees that helps the organization further to achieve its long-term goal. 5) Team spirit: Training and Development helps in inculcating the sense of team work, team spirit, and inter-team collaborations. It helps in inculcating the zeal to learn within the employees. 6) Organization Culture: Training and Development helps to develop and improve the organizational health culture and effectiveness. It helps in creating the learning culture within the organization. 7) Organization Climate: Training and Development helps building the positive perception and feeling about the organization. The employees get these feelings from leaders, subordinates, and peers. 8) Quality: Training and Development helps in improving upon the quality of work and work-life. 9) Healthy work environment: Training and Development helps in creating the healthy working environment. It helps to build good employee, relationship so that individual goals aligns with organizational goal. 10) Health and Safety: Training and Development helps in improving the health and safety of the organization thus preventing obsolescence. 11) Morale: Training and Development helps in improving the morale of the work force. 12) Image: Training and Development helps in creating a better corporate image. 13) Profitability: Training and Development leads to improved profitability and more positive attitudes towards profit orientation. Training and Development aids in organizational development i.e. Organization gets more effective decision making and problem solving. It helps in understanding and carrying out organizational policies. Training and Development helps in developing leadership skills, motivation, loyalty, better attitudes, and other aspects that successful workers and managers usually display. 26. Explain the different methods of training which are generally used in industries now-a-days? Methods of Training: On the Job Training Methods: 1) Job Rotation: In this method, usually employees are put on different jobs turn by turn where they learn all sorts of jobs of various departments. The objective is to give a comprehensive awareness about the jobs of different departments. Advantage employee gets to know how his own and other departments also function. Interdepartmental coordination can be improved, instills team spirit. Disadvantage It may become too much for an employee to learn. It is not focused on employees own job responsibilities. Employees basic talents may remain under utilized.

2) Job Coaching: An experienced employee can give a verbal presentation to explain the nitty-grittys of the job. 3) Job Instruction: It may consist an instruction or directions to perform a particular task or a function. It may be in the form of orders or steps to perform a task. 4) Apprenticeships: Generally fresh graduates are put under the experienced employee to learn the functions of job. 5) Internships and Assistantships: An intern or an assistant are recruited to perform a specific timebound jobs or projects during their education. It may consist a part of their educational courses. Off the Job Training Methods 1) Classroom Lectures: It is a verbal lecture presentation by an instructor to a large audience. Advantage It can be used for large groups. Cost per trainee is low. Disadvantages Low popularity. It is not learning by practice. It is One-way communication. No authentic feedback mechanism. Likely to boredom. 2) Audio-Visual: It can be done using Films, Televisions, Video, and Presentations etc. Advantages Wide range of realistic examples, quality control possible, Disadvantages One-way communication, No feedback mechanism. No flexibility for different audience. 3) Simulation: creating a real life situation for decision-making and understanding the actual job conditions give it. Following are some of the simulation methods of trainings Case Studies: It is a written description of an actual situation and trainer is supposed to analyze and give his conclusions in writing. The cases are generally based on actual organizational situations. It is an ideal method to promote decision-making abilities within the constraints of limited data. Role Plays: Here trainees assume the part of the specific personalities in a case study and enact it in front of the audience. It is more emotional orientation and improves interpersonal relationships. Attitudinal change is another result. These are generally used in MDP. Sensitivity Trainings: This is more from the point of view of behavioral assessment, under different circumstances how an individual will behave himself and towards others. There is no preplanned agenda and it is instant. Advantages increased ability to empathize, listening skills, openness, tolerance, and conflict resolution skills. Disadvantage Participants may resort to their old habits after the training. 4) Programmed Instructions: Provided in the form of blocks either in book or a teaching machine using questions and Feedbacks without the intervention of trainer. Advantages Self paced, trainees can progress at their own speed, strong motivation for repeat learning, and material is structured and selfcontained. Disadvantages Scope for learning is less; cost of books, manuals or machinery is expensive. 5) Computer Aided Instructions: It is extension of PI method, by using computers. Advantages Provides accountabilities, modifiable to technological innovations, flexible to time. Disadvantages High cost.

27. Training and development acts as a source of competitive advantage. Comment. Explain the inputs of training and development. Ans. Training and Development as a Source of Competitive Advantage 1) Increased job satisfaction and morale among employees. This has an added benefit of making your company more attractive to prospective employees. 2) More motivated workers, which in turn tends to increase productivity and spur profits.

3) More effective and efficient use of workers' time as a result of higher skill levels, combined with a better understanding of the job function. 4) Employees who know they are competent, and therefore feel more confident. Self assured, welltrained employees are important in the debt collection function. 5) An increase from employees in the number of ideas, recommendations and suggestions for improving performance, or processes and procedures. 6) Lower overall employee turnover, and less absenteeism. 7) Investing in employee training enhances the company image as: a good place to work a company that offers its employees the opportunity to grow and meet their individual goals and aspirations a company that values employees a company that nurtures its employees 8) Creating a pool of cross-trained employees can bridge gaps when someone unexpectedly leaves the company - or if they accept a transfer or a promotion. 9) Doing so tends to create more efficient employees that require less supervision and who need less detailed instructions. This frees management's time for higher value added activities. 10) Employees that receive in houses training tend to be better equipped to adapt to changes and challenges facing the credit department in particular, and the company as a whole. Inputs in Training and Development 1) Skills: Training is imparting skills to employees. Training activities nowadays encompasses activities ranging from the acquisition of a simple motor skill to a complex administrative one. Training an employee for a particular skill is undertaken to enable him to be more effective on the job. 2) Knowledge: Training aimed at imparting knowledge to employees in the organization provides for understanding of all the problems of modern industry. 3) Education: The purpose of education is to teach theoretical concepts and develop a sense of reasoning and judgement. 4) Development: Another component of a training and development programme is development which is less skill-oriented but stresses on knowledge. 5) Ethics: There is need for imparting greater ethical orientation to a training and development programme. 28. Elaborate the training & development process. Differentiate between training & development. Ans. The Five-Step Training and Development Process: 1. Needs Analysis: Identify specific lob performance skills needed to improve performance and productivity. Analyze the audience to ensure that the program will be suited to their specific levels of education, experience, and skills, as well as their attitudes and personal motivations. Use research to develop specific measurable knowledge and performance objectives. 2. Instructional Design: Gather instructional objectives, methods, media, description of and sequence of content, examples, exercises, and activities. Organize them into a curriculum that supports adult learning theory and provides a blueprint for program development.

Make sure all materials, such as video scripts, leaders guides, and participants workbooks, complement each other, are written clearly, and blend into unified training geared directly to the stated learning objectives. Carefully and professionally handle all program elementswhether reproduced on paper, film, or tapeto guarantee quality and effectiveness. 3. Validation: Introduce and validate the training before a representative audience. Base final revisions on pilot results to ensure program effectiveness. 4. Implementation: When applicable, boost success with a train-the-trainer workshop that focuses on presentation knowledge and skills in addition to training content. 5. Evaluation and Follow-Up: Assess program success according to: Reaction Document that learners immediate reactions to the training. Learning Use feedback devices or pre- and posttests to measure what learners have actually learned. Behavior Note supervisors reactions to learners performance following completion of the training. This is one way to measure the degree to which learners apply new skills and knowledge to their jobs. Results Determine the level of improvement in job performance and assess needed maintenance. Difference between Training and Development Training Training is skills focused Training is presumed to have a formal education Training needs depend upon lack or deficiency in skills Trainings are generally need based Training is a narrower concept focused on job related skills Training may not include development Development Development is creating learning abilities Development is not education dependent Development depends on personal drive and ambition Development is voluntary Development is a broader concept focused on personality development Development includes training wherever necessary

Training is aimed at improving job related efficiency Development aims at overall personal effectiveness and performance including job efficiencies

29. An effective performance appraisal system can lead to competitive advantage. Comment. Describe in detail the various steps involved in performance appraisal process. Ans. Competitive Advantages of Performance Appraisal It helps the supervisors to chalk out the promotion programs for efficient employees. In this regards, inefficient workers can be dismissed or demoted in case. It helps in chalking out compensation packages for employees. Merit rating is possible through performance appraisal. PA tries to give worth to a performance. Compensation packages which include bonus, high salary rates, extra benefits, allowances and pre-requisites are dependent on performance appraisal. The criteria should be merit rather than seniority.

The systematic procedure of PA helps the supervisors to frame training policies and programs. It helps to analyze strengths and weaknesses of employees so that new jobs can be designed for efficient employees. It also helps in framing future development programs. It helps the supervisors to understand the validity and importance of the selection procedure. The supervisors come to know the validity and thereby the strengths and weaknesses of selection procedure. Future changes in selection methods can be made in this regard. For an organization, effective communication between employees and employers is very important. It serves as a motivation tool. Through evaluating performance of employees, a person's efficiency can be determined if the targets are achieved. This very well motivates a person for better job and helps him to improve his performance in the future. Process of Performance Appraisal 1) Establishing Performance Standards: The first step in the process of performance appraisal is the setting up of the standards which will be used to as the base to compare the actual performance of the employees. This step requires setting the criteria to judge the performance of the employees as successful or unsuccessful and the degrees of their contribution to the organizational goals and objectives. The standards set should be clear, easily understandable and in measurable terms. In case the performance of the employee cannot be measured, great care should be taken to describe the standards. 2) Communicating the Standards: Once set, it is the responsibility of the management to communicate the standards to all the employees of the organization. The employees should be informed and the standards should be clearly explained to them. This will help them to understand their roles and to know what exactly is expected from them. The standards should also be communicated to the appraisers or the evaluators and if required, the standards can also be modified at this stage itself according to the relevant feedback from the employees or the evaluators. 3) Measuring the Actual Performance: The most difficult part of the Performance appraisal process is measuring the actual performance of the employees that is the work done by the employees during the specified period of time. It is a continuous process which involves monitoring the performance throughout the year. This stage requires the careful selection of the appropriate techniques of measurement, taking care that personal bias does not affect the outcome of the process and providing assistance rather than interfering in an employees work. 4) Comparing the Actual with the Desired Performance: The actual performance is compared with the desired or the standard performance. The comparison tells the deviations in the performance of the employees from the standards set. The result can show the actual performance being more than the desired performance or, the actual performance being less than the desired performance depicting a negative deviation in the organizational performance. It includes recalling, evaluating and analysis of data related to the employees performance. 5) Discussing Results: The result of the appraisal is communicated and discussed with the employees on one-to-one basis. The focus of this discussion is on communication and listening. The results, the problems and the possible solutions are discussed with the aim of problem solving and reaching consensus. The feedback should be given with a positive attitude as this can have an effect on the employees future performance. The purpose of the meeting should be to solve the problems faced and motivate the employees to perform better.

6) Decision Making: The last step of the process is to take decisions which can be taken either to improve the performance of the employees, take the required corrective actions, or the related HR decisions like rewards, promotions, demotions, transfers etc. 30. Explain critically traditional and modern methods of performance appraisal. Ans. Techniques / Methods of Performance Appraisals Numerous methods have been devised to measure the quantity and quality of performance appraisals. Each of the methods is effective for some purposes for some organizations only. None should be dismissed or accepted as appropriate except as they relate to the particular needs of the organization or an employee. Broadly all methods of appraisals can be divided into two different categories. Traditional Method/Past Oriented Methods Modern Method/Future Oriented Methods

Traditional Method/Past Oriented Methods 1. Rating Scales: Rating scales consists of several numerical scales representing job related performance criterions such as dependability, initiative, output, attendance, attitude etc. Each scales ranges from excellent to poor. The total numerical scores are computed and final conclusions are derived. Advantages Adaptability, easy to use, low cost, every type of job can be evaluated, large number of employees covered, no formal training required. Disadvantages Raters biases. 2. Checklist: Under this method, checklist of statements of traits of employee in the form of Yes or No based questions is prepared. Here the rater only does the reporting or checking and HR department does the actual evaluation. Advantages economy, ease of administration, limited training required, standardization. Disadvantages Raters biases, use of improper weighs by HR, does not allow rater to give relative ratings 3. Forced Choice Method: The series of statements arranged in the blocks of two or more are given and the rater indicates which statement is true or false. The rater is forced to make a choice. HR department does actual assessment. Advantages Absence of personal biases because of forced choice. Disadvantages Statements may be wrongly framed. 4. Forced Distribution Method: here employees are clustered around a high point on a rating scale. Rater is compelled to distribute the employees on all points on the scale. It is assumed that the performance is conformed to normal distribution. AdvantagesEliminates Disadvantages assumption of normal distribution, unrealistic, errors of central tendency. 5. Critical Incidents Method: The approach is focused on certain critical behaviors of employee that makes all the difference in the performance. Supervisors as and when they occur record such incidents. Advantages Evaluations are based on actual job behaviors, ratings are supported by descriptions, feedback is easy, reduces regency biases, chances of subordinate improvement are high. Disadvantages Negative incidents can be prioritized, forgetting incidents, overly close supervision; feedback may be too much and may appear to be punishment. 6. Behaviorally Anchored Rating Scales: statements of effective and ineffective behaviors determine the points. They are said to be behaviorally anchored. The rater is supposed to say, which behavior describes the employee performance. Advantages helps overcome rating errors. Disadvantages Suffers from distortions inherent in most rating techniques. 7. Field Review Method: This is an appraisal done by someone outside employees own department usually from corporate or HR department. Advantages Useful for managerial level promotions, when comparable information is needed, Disadvantages Outsider is generally not familiar with employees work environment, Observation of actual behaviors not possible. 8. Confidential Records: Mostly used by government departments, however its application in industry is not ruled out. Here the report is given in the form of Annual Confidentiality Report (ACR) and may record ratings with respect to following items; attendance, self expression, team work,

leadership, initiative, technical ability, reasoning ability, originality and resourcefulness etc. The system is highly secretive and confidential. Feedback to the assessed is given only in case of an adverse entry. Disadvantage is that it is highly subjective and ratings can be manipulated because the evaluations are linked to HR actions like promotions etc. 09. Essay Method: In this method the rater writes down the employee description in detail within a number of broad categories like, overall impression of performance, promote ability of employee, existing capabilities and qualifications of performing jobs, strengths and weaknesses and training needs of the employee. Advantage It is extremely useful in filing information gaps about the employees that often occur in a better-structured checklist. Disadvantages It its highly dependent upon the writing skills of rater and most of them are not good writers. They may get confused success depends on the memory power of raters. 10. Cost Accounting Method: Here performance is evaluated from the monetary returns yields to his or her organization. Cost to keep employee, and benefit the organization derives is ascertained. Hence it is more dependent upon cost and benefit analysis. 11. Comparative Evaluation Method (Ranking & Paired Comparisons): These are collection of different methods that compare performance with that of other co-workers. The usual techniques used may be ranking methods and paired comparison method. Ranking Methods: Superior ranks his worker based on merit, from best to worst. However how best and why best are not elaborated in this method. It is easy to administer and explanation. Paired Comparison Methods: In this method each employee is rated with another employee in the form of pairs. The number of comparisons may be calculated with the help of a formula as under. N x (N-1) / 2 Modern/Future Oriented Methods 1. Management by Objectives: It means management by objectives and the performance is rated against the achievement of objectives stated by the management. MBO process goes as under. Establish goals and desired outcomes for each subordinate Setting performance standards Comparison of actual goals with goals attained by the employee Establish new goals and new strategies for goals not achieved in previous year. Advantage It is more useful for managerial positions. Disadvantages Not applicable to all jobs, allocation of merit pay may result in setting short-term goals rather than important and long-term goals etc. 3. Assessment Centers: This technique was first developed in USA and UK in 1943. An assessment center is a central location where managers may come together to have their participation in job related exercises evaluated by trained observers. It is more focused on observation of behaviors across a series of select exercises or work samples. Assesses are requested to participate in in-basket exercises, work groups, computer simulations, role playing and other similar activities which require same attributes for successful performance in actual job. The characteristics assessed in assessment center can be assertiveness, persuasive ability, communicating ability, planning and organizational ability, self confidence, resistance to stress, energy level, decision making, sensitivity to feelings, administrative ability, creativity and mental alertness etc. 4. 360-Degree Feedback: It is a technique which is systematic collection of performance data on an individual group, derived from a number of stakeholders like immediate supervisors, team members, customers, peers and self. In fact anyone who has useful information on how an employee does a job may be one of the appraisers. This technique is highly useful in terms of broader perspective, greater self-development and multi-source feedback is useful. 360-degree appraisals are useful to measure inter-personal skills, customer satisfaction and team building skills. However on the negative side, receiving feedback from multiple sources can be intimidating, threatening etc. Multiple raters may be less adept at providing balanced and objective feedback.

31. What are the steps involved in job evaluation process? Discuss. Ans. Job Evaluation Process: The steps in job evaluation are as follows: 1) Identification of Jobs for Evaluation: The first step is the determination of jobs to be covered under the evaluation process. It is usually difficult for an organization to evaluate all the jobs of the organization. It, therefore, choose few key jobs which can represent a group of similar jobs for job evaluation purpose. 2) Gathering the Relevant Data: The next phase of the job evaluation process is the collection of necessary information about the jobs being evaluated. Job analysis should precede the actual programme of evaluation as it provides job-related data which would be useful in drafting job description and job specification. At this stage, the evaluator should completely satisfy himself about the adequacy of information available for assessing the worth of the job. 3) Determination of Job Ranking: After analyzing all the information relating to the jobs, the evaluator assesses the extent of the presence of the chosen factors in the jobs. Based on the result of such an assessment, the evaluator determines the ratings for each job. 4) Selection of Benchmark Jobs: The primary purpose of job evaluation is the development of pay grades for each category of jobs. In this regard, it is necessary for an organization to know what the other organizations are paying for similar jobs. 5) Wage and Salary Surveys: Wage and Salary surveys may be conducted by an organization in a formal or informal way. Based on such survey, the monetary value of each job is determined. 6) Review and Feedback: Developments in the external environment influence the organizations continuously and also cause changes in the internal factors. 32. Elucidate various methods of job evaluation. Explain the objectives and principles of job evaluation. Ans. Methods of Job evaluation Non-quantitative method I. Ranking method: i. Simple ranking method: jobs and the employees who perform those jobs are ranked from highest to lowest depending on their quality and value to the organization. Ranking the key jobs: - the evaluator has to identify the key or representative jobs at the 1st stage, rank the key jobs at the 2nd stage, identify and rank all other jobs at the 3rd stage a) Paired comparison: the evaluator ranks each job in turn against all other jobs to be appraised, so that a series of paired ranking is produced. b) Single factor ranking method: the single most important task to be performed in a job is identified and compared with the single most important task to be performed in other jobs. II. Job Classification: The job classification method uses job classes or job groups to provide more customization in the evaluation. This method also uses scales to measure performance rather than comparing and ranking employees. Quantitative method Point Method: It was introduced by Merrill R. Lott. The earliest approach for evaluating job based on quantitative values.

This method is analytical and quantitative bcoz the component of the job is assigned a numerical value. Aspects or parts of the job such as education and experience required to perform the job are assessed and a points value awarded. The higher the educational requirements of the job the higher the points scored. The point method is usually seen as the most reliable and valid evaluation method by employees compared to more subjective methods such as the job ranking method. The most well known points scheme was introduced by Hay management consultants in 1951. This scheme evaluates job responsibilities in the light of three major factors - know how, problem solving and accountability.

Objectives of Job Evaluation To gather data and information relating to JD, job specification and employee specifications of various jobs in an organization. To compare the duties, responsibilities and demands of a job with that of other jobs. To determine the hierarchy /rank based on jobs in an organization. To ensure equal wages are fixed to the jobs of equal worth or value. To minimize wage discrimination based on sex, age, caste, region, religion etc. Principles of Job evaluation Rate the job but not the employee. Elements / tasks selected should be easily understood, defined clearly and properly selected. Employee concerned and supervisors should be educated and convinced about the program. Supervisors should be encouraged to participate in rating the jobs. Encourage employee cooperation to participate in the rating program. Consensus with the supervisors and employees on rating. Should be a collective effort, chance for equal representation from all departments.

33. Elaborate the process of devising remuneration plans. State the guidelines for designing remuneration plan. What are the various challenges associated with employee remuneration? Ans: Employers that want to succeed in this increasingly competitive environment must have a welldesigned compensation plan that motivates employees, controls compensation costs, and ensures equity. The best compensation plans mirror the culture of the employer. Therefore, employers should establish a compensation philosophy. Benefits programs should also be part of an employers compensation strategy. Employers have myriad options when it comes to designing a compensation plan, and they must consider and how it will fit into their overall strategy for recruiting and retaining employees. Many employers base their decisions on the marketthat is, they look at salary surveys to see what other employers are paying (external equity). Once they access the market data, they set their wages and salaries at some point above, below, or equal to the market data depending on the circumstances. For example, some employers decide that they will set wages for certain positions at well above the market rate to attract and retain highly valuable employees.

However, employers should also consider internal equitythat is, whether their compensation plan reflects how much they value positions in relation to other positions within the organization. To ensure both internal and external equity, employers must establish an effective compensation administration program. To do this, employers must conduct: Job analysis (thoroughly analyze and describe each job within the organization) Job evaluation (determine what jobs are worth on an absolute basis and relative to other jobs in the organization, such as giving jobs that are of greater value to the organization a higher labor grade) Job pricing (establish rate ranges; that is, minimum, midpoint, and maximum dollar values for each labor grade)

A growing number of employers are incorporating performance-based compensation plans to boost productivity and maximize their return on investment in compensation. These types of plans are designed to reward employees who produce. Some experts argue that traditional salary increases arent as connected to performance as they should be. By contrast, a well thought out performance-based bonus plan can be tied directly to the results the company sees as valuable. However, developing a performance-based compensation plan isnt easy. One mistake employers often make is setting performance targets too low. Another common mistake is for employers to use the wrong metrics in determining an employees performance. Challenges while devising a compensation plan All organizations have a compensation plan, written or unwritten, formal or informal. For some organizations, the purpose of that plan may be merely to meet compliance requirements. For other organizations, the goal of the compensation plan may be to attract qualified employees, to retain those employees, and to motivate employees to direct their efforts towards achieving the goals of the organization. Regardless of the goal, size and complexity of a compensation plan, there are generally many easilyidentified elements to any compensation plan. However there are various problems, deterrent and challenges while devising a compensation plan. An HR in an organization has to deal with various questions, both at the organizational and individual level while forming the compensation plan. Some of these questions are as follows: What is the goal of the organization's compensation system? In addition to attracting and retaining qualified employees, is there an intent to reward employees for good performance, motivate good performance, and/or create or reinforce a particular type of organizational climate? What is the communication policy? How is the organization going to communicate the compensation plan to employees once it has been developed? Is the organization prepared to evaluate the effectiveness of any such communication? If so, how? How will decisions regarding pay be made? Who will be involved in these decisions? What decision guidelines will need to be developed? What is the organizations desired market position relative to pay? Will the organization choose to pay market rates, above market or below market? How does the desired market position fit with other strategic goals? Are there any competitive factors involved that will determine the pay strategy?

What is the desired mix between benefits and cash? Since benefits are an important form of compensation, how does an organization use them to maximize the effectiveness of the compensation plan? What does the organization pay for? Does it pay for performance or seniority or some combination of the two? What is the role of performance appraisal in the organization? How important is performance appraisal and why? How will the organization manage change to the compensation plan once it has been developed? What systems need to be in place to implement any changes including deciding when change is necessary and who will make these decisions? How does the compensation philosophy and plan fit with the rest of the organization? How can the compensation practices reinforce other overall management philosophies and objectives?

34. Describe the factors influencing employee remuneration. Write the importance of an ideal remuneration system. Ans: Factors Influencing Employee Remuneration A number of factors influence the remuneration payable to employees. They can be categorized into: 1) External factors. 2) Internal factors. EXTERNAL FACTORS - Factors external to an organisation are labour market, cost of living, labor unions, government legislations, the society, and the economy'. Labour Market: Demand for and supply of labor influence wage and salary fixation. A low wage may he fixed when the supply of labour exceeds the demand for it.

A higher wage will have to he paid when he demand exceeds supply, as in the case of skilled labour. A paradoxical situation is prevailing in our countryexcessive unemployment is being juxtaposed with shortage of labour. While unskilled labour is available in plenty, there is a shortage of technicians, computer specialists and professional managers. High remuneration to skilled labour is necessary to attract and retain it. But exploitation of unskilled labour, like, for instance, paying niggardly wages because it is available in plenty, is unjustifiable. Going rate of pay is another labour-related factor influencing employee remuneration. Going rates are those that are paid by different units of an industry in a locality and by comparable units of the same industry located elsewhere. This is the only way of fixing salary and wage in the initial stages of plant operations. Subsequently, a comparison of going rates would be highly useful in resolving wage-related disputes. However, the argument that productively would increase if it is linked to remuneration is hardly acceptable to labour and labour organisations. Cost of Living: Next in importance to labour market is the cost of living.

This criterion matters during periods of rising prices, and is forgotten when prices are stable or falling. The justification for cost of living as a criterion for wage fixation is that the real wages of workers should not be

allowed to be whittled down by price increases- A rise in the cost of living is sought to be compensated by payment of dearness allowance, basic pay to remain undisturbed. Many companies include an escalatory clause in their wage agreements in terms of which dearness allowance increases or decreases depending upon the movement of consumer price index (CPI). Labour Unions: The presence or absence of labor organizations often determine the quantum of wages paid ID employees. Employers in non-unionized factories enjoy the freedom to fix wages and salaries as they please.

Because of large-scale unemployment, these employers hire workers at little or even less than legal minimum wages. An individual non-unionized company may be willing to pay more to its employees if only to discourage them from forming one, but will buckle under the combined pressure from the other nonunionized organizations. The employees of strongly unionized companies to have no freedom in wage and salary fixation. They are forced to yield to the pressure of labour representatives in determining and revising pay scales. Society: Remuneration paid to employees is reflected in the prices fixed by an organisation for its goods and services. For this reason, the consuming public is interested in remuneration decisions

Though the financial position of the employer and the state of the national economies have their say in the matter of wage fixation, "the requirements of a workman living in a civilized and progressive society also came to be recognized." According to the Supreme Court, the social philosophy of the period provides the background for decisions on industrial disputes relating to the wage structure. The Economy: The last external factor that has its impact on wage and salary fixation is the state of the economy. While it is possible for some organisations to thrive in a recession, there is no question that the economy affects remuneration decisions. For example, a depressed economy will probably increase the labour supply. This, in turn, should serve to lower the going wage rate.

In most cases, the cost of living will rise in an expanding economy. Since the cost of living is commonly used as a pay standard, the economy's health exerts a major impact upon pay decisions. Labour unions, the government, and the society are all less likely to press for pay increases in a depressed economy. Importance of an ideal remuneration system Labour therefore expects to have fair share in the business/production process. Therefore a fair compensation system is a must for every business organization. The fair compensation system will help in the following: An ideal compensation system will have positive impact on the efficiency and results produced by employees. It will encourage the employees to perform better and achieve the standards fixed. It will enhance the process of job evaluation. It will also help in setting up an ideal job evaluation and the set standards would be more realistic and achievable. Such a system should be well defined and uniform. It will be apply to all the levels of the organization as a general system. The system should be simple and flexible so that every employee would be able to compute his own compensation receivable. It should be easy to implement, should not result in exploitation of workers.

It will raise the morale, efficiency and cooperation among the workers. It, being just and fair would provide satisfaction to the workers.

35. Detailing the components of remuneration. Also state the essential features of remuneration. Ans: Components of Remuneration An average employee in the organized sector is entitled to several benefits both financial as well as nonfinancial. To be specific, typical remuneration of an employee compriseswages and salary, incentives, fringe benefits, perquisites, and non-monetary benefits. WAGES AND SALARY Wages represent hourly rates of pay, and salary refers to the monthly rate of pay, irrespective of the number of hours put in by an employee. Wages and salaries are subject to annual increments. They differ from employee to employee, and depend upon the nature of job, seniority, and merit. Incentives Also called 'payments by results', incentives are paid in addition to wages and salaries. Incentives depend upon productivity, sales, profit, or cost reduction efforts. There are: 1) Individual incentive schemes and 2) Group incentive programmes. Individual incentives are applicable to specific employee performance. Where a given task demands group effort for completion, incentives are paid to the group as a whole. The amount is later divided among group members on an equitable basis. Fringe Benefits These include such employee benefits as provident fund, gratuity, medical care, hospitalization, accident relief, health and group insurance, canteen, uniform, recreation and me like. Perquisites These are allowed to executives and include company car, club membership, paid holidays, furnished house, stock option schemes and the like- Perquisites are offered to retain competent executives. Non-monetary Benefits These include challenging job responsibilities, recognition of merit, growth prospects, competent supervision, comfortable working conditions, job sharing, and flexytime. Essential features of remuneration The plan provides substantial financial awards to key employees. A potential bonus equal to at least ten to thirty percent of annual compensation is necessary to motivate an employee to modify performance.

Performance standards are specific. There must be determinable performance standards such as certain company net income or revenue levels. Performance standards are tied directly to increase in the company's value. As the key employee achieves measurable objective standards, the net income of the company increases. Put another way, unless the company's net income increases, the key employee does not receive a bonus. Part of the bonus is deferred and subject to vesting. This characteristic of incentive plans is commonly referred to as "golden handcuffs." If the employee severs his employment before he is "fully vested," he forfeits at least part of the deferred compensation. The plan is communicated in writing to key employees. In order to be successful, key employees must understand exactly how the plan works. The plan must be simple, easy to read, communicated face-toface to employees with advisors present to answer any questions and contain a summary for easy reference.

36. Give a brief note on wage policy in India. Enumerate basic concepts of wages. Outline the methods of wage payment. Ans: Majority of the industrial disputes in India has centered round the issue of wages. The expectation of the working class is that it should be given a fair, adequate and just wage which should be sufficient decreases, productivity is reduced and discipline is thrown out of all decency . it has therefore, been realised by all concerned that wages should be attractive to act as a leading motivating factor in improving industrial relation , and a wage policy is considered as one of the strategic policies in the realm of ,industial relation. The term of wage policy refers to legislation or government action under . taken to regulate the level or structure of wages, or both for the purpose of achieving specific objective of social and economic policy .the social objective of wages policy may aim at eliminating the exceptionally low wages ,the establishing of fair standards, the protection of wages earners from the impact of inflationary tendencies ;and at increasing the economic welfare of the community as a whole. The social and economic aspects of wages policy are normally inter-related measures inspired by social considerations inevitably ,have economic effects and action designed to achieve specific economic results, measures of wages-policy conflict, a choice has to be made. Methods of Wage System Time Rate System: Under this system, the worker is paid by the hour, day, week, or month.

High Wage plan: Under this plan a worker is paid a wage rate which is substantially higher than the rate prevailing in the area or in the industry. In return, he is expected to maintain a very high level of performance, both quantitative and qualitative. Measured day work: According to this method the hourly rate of the time worker consists of two parts, namely, fixed and variable. The fixed element is based on the nature of the job i.e. the rate for this part is fixed on the basis of job requirements. The variable portion varies for each worker depending upon his merit rating and the cost-of-living index. Differential time rate: According to this method, different hourly rates are fixed for different levels of efficiency.

Payment on Result

Piece Work Straight piecework system: The wages of the worker depend upon his output and rate of each unit of output; it is in fact independent of the time taken by him. Differential piece work system: This system provide for higher rewards to more efficient workers. For different levels of output below and above the standard, different piece rates are applicable.

37. What do you mean by an incentive system? What are the prerequisites of an effective incentive system? Ans: An incentive is something that motivates an individual to perform an action. The study of incentive structures is central to the study of all economic activities (both in terms of individual decision-making and in terms of co-operation and competition within a larger institutional structure). Economic analysis, then, of the differences between societies (and between different organizations within a society) largely amounts to characterizing the differences in incentive structures faced by individuals involved in these collective efforts. Ultimately, incentives aim to provide value for money and contribute to organizational success. Prerequisites of an effective incentive system All things considered, it may be concluded that in many industries or undertakings and for a large group of operations, well-designed systems of payment by results shall yield advantages to all concerned. Many of these advantages will be realized provided sufficient safeguards are provided. Such p rerequisites are: 1. The co-operation of workers in the implementation of an incentive scheme is essential because the employees somehow devise, if they do not like a scheme, ingenious ways of evading or sabotaging the plan, often with the tacit connivance of the foreman or supervisor,'' Workers' co-operation may be secured through proper discussion with their representatives. In particular, workers' co-operation is necessary in: (i) The methods followed in measuring the results or output upon which payment is based; (ii) The methods followed in setting wage rates for different classes of work; and (iii) Appropriate safeguards concerning earnings, job security and settlement of disputes over piecework rates and allotted time. 2. The scheme must be based on scientific work measurement. The standards set must be realistic and must motivate workers to put in better performance. Workers must be provided with necessary tools, equipment and materials so as to enable them reach their standards. 3. Indirect workers, such as supervisors, foremen, charge hands, helpers, crane operators, canteen staff, store keepers, and clerical staff should also be covered by incentive schemes. 4. There should be management commitment to the cost and time necessary to administer incentive schemes properly, and these must be carefully assessed before embarking on an incentive programme. There are many situations in which the potential gains are just not worth the cost and effort involved. 5. There is greater need for planning. Many incentive schemes, started hurriedly, planned carelessly, and implemented indifferently have failed and have created more problems for the organisation than they have tried to solve. 6. The other safeguards are: (i) The incentive scheme should be appropriate to the type of work carried out and the workers employed. (ii) The reward should be clearly and closely linked 10 the efforts of the individual or group.

(iii) Individuals or groups should be able to calculate the reward they get at each of the levels of output they are capable of achieving. (iv) Individuals or groups should have a reasonable amount of control over their efforts and therefore their rewards. (v) The scheme should operate by means of a well-defined and easily- understood formula. (vi) The scheme should be properly installed and maintained, (vii) Provisions should be made for controlling the amounts paid, to en- sure that they are proportionate to effort. (viii) Provisions should be made for amending rates in defined circumstances (ix) Create incentives for performance and disincentives for non-performance. (x) Set and review specific objectives for each employee periodically. 38. Write a detailed note on types of incentive system. Ans: The kinds of incentives are as follows: a. Piece-work Piecework is an incentive system that compensates the worker for each unit output. Daily or weekly pay is determined by multiplying the output in units times the rate per unit. b. Productions Bonuses Production bonuses are incentive paid to workers for exceeding output goals. Often employees receive a base pay rate. Then, through extra effort that results in output above the standard, they get a supplemental bonus, which is usually figured at a given rate for each unit of production over the standard. c. Commissions In sales jobs, the seller may be paid a percentage of the selling price or a flat amount for each unit sold. When no base compensation is paid, total earnings come from commissions. d. Maturity Curves Another approach is maturity curves, which are adjustments to the top of the rate range for selected jobs. Employees are rated on productivity and experience. e. Merit Raises Merit raises are pay increases given after an evaluation of performance. These raises are usually decided by the employees immediate supervisor, often in conjunction with superiors. Although merit raises reward above-average performance; they are seldom tied to any specific payout standard. f. Nonmonetary Incentives Incentives usually mean money, but performance incentives also come in other forms. For example, many companies have recognition program in which employees receive plaques, novelty items, certificate, time-off, vacations and other non-cash incentives for job performance. g. Incentives Executives Incentives-especially executive incentives needed to achieve a balance between short-them results and long term performance. h. International Incentives To attract, retain and motivate international executives and key employees, many global companies are setting up foreign allowances that are incentives for international employees. 39. Who are responsible for formulating employee benefits and services? Ans. Roles and Responsibilities of Employee Benefits and Services

1) Line Managers: Role and responsibilities of line managers are as follows: i. Attend training programmes and stay current on legal issues relevant to benefits and services. ii. Work with HR professionals to ensure alignment of the benefits plan with strategic business objectives. iii. Work with employees to ensure that the benefits and services satisfy them and encourage retention. iv. Provide employees with the tools to make sound benefits choices. v. Fairly administer all benefits and services. 2) HR Professional: Roles and responsibilities of HR professionals are as follows: i. Ensure that all policies and practices are consistent with legal requirements. ii. With line managers, ensure alignment of the benefits plan with strategic business objectives. iii. Assess employees preferences and reactions to benefits and services systematically and regularly. 3) Employees: Roles and responsibilities of employee are as follows; i. Take responsibility for understanding the available benefits and services. ii. May participate in determining new benefits and services as the employers strategic objectives change. iii. Participate in surveys designed to assess benefits preferences and benefit satisfaction. iv. Use available assistance to enroll and receive needed benefits and services. v. Use the available tools to help make sound benefit choices. vi. May register complaints about benefits availability or administration. 40. Write a detailed note of various types of employee benefits and services. Ans. Types of Employee benefits and Services The classification of employee benefits and services in India is given below: 1) Payment for Time not Worked: This category includes: i. Hours of Work: Section 51 of the Factories Act, 1948 specifies that no adult worker shall be required to work in a factory for more than 48 hours in any week. ii. Paid Holidays: According to the factories Act, 1948, an adult worker shall have a weekly paid holiday, preferably Sunday. iii. Shift Premium: Companies operating second and third shifts, pay a premium to the workers who are required to work during the odd hours shift. iv. Holiday Pay: Generally organizations offer double the normal rate of the salary to those workers, who work on paid holidays. v. Paid Vacation: workers in manufacturing, mining and plantation who worked for 240 days during a calendar year are eligible for paid vacation at the rate of one day for every 20 days worked in case of adult workers and at the rate of one day for every 15 days worked in case of child workers. 2) Employee Security: Physical and job security to the employee should also be provided with a view to promoting security to the employee and his family members. Some other benefits are as follows: i. Retrenchment Compensation: The Industrial Disputes Act, 1947 provides for the payment of compensation in case of layoff and retrenchment. The non-seasonal

industrial establishments employing 50 or more workers have to give one months notice or one months wages to all the workers who are retrenched after one years continuous service. ii. Layoff Compensation: In case of layoff, employees are entitled to layoff compensation at the rate of 50% of the total of the basic wage and dearness allowance for the period of their layoff except for weekly holidays. Layoff compensation can normally be paid up to 45 days in a year. 3) Safety and Health Provisions: In India, legislation such as the Factories Act, 1948 and the shops and establishment Acts have made legal provisions with regard to employees safety, health, working conditions. In the Factories Act these are detailed under the following headings: i. Health provisions: The Factories Act provides that every factory must be kept clean and free from effluvia (harmful odor) arising from any drain, privy (toilet) or other nuisance. ii. Safety Provisions: The Factories Act provides for fencing of machinery to generate safety of the worker. iii. Welfare Provisions: The Factories Act makes it obligatory for a factory to provide suitable washing facilities for the workers; facilities for storing and drying cloths; and arrangement for sitting for workers obliged to work in a standing position, so that may take advantage of any opportunities for rest which occur in the course of their work. iv. Provisions Regarding Intervals for Rest: In case of adult workers in a factory, the periods of work must be so fixed each day that no period shall exceed 5 hours. 4) Welfare and Recreational Facilities: These benefits include the following: i. Canteens ii. Consumer Societies iii. Credit Societies iv. Housing v. Legal Aid vi. Employee Counseling vii. Holiday Homes viii. Educational Facilities ix. Transportation x. Parties and Picnics xi. Miscellaneous 5) Old Age and Retirement Benefits: These are the benefits provided to the employee after retirement and during the old age with a view to create a feeling of security about the old age. Various old age and retirement benefits are as follows: i. Employees Provident Funds ii. Deposit-Linked insurance iii. Gratuity iv. Medical benefits v. Pension 41. Define employee benefits. How to administer employee benefits and services? Ans: Employee benefits and (especially in British English) benefits in kind (also called fringe benefits, perquisites, perks) are various non-wage compensations provided to employees in addition to their normal wages or salaries. In instances where an employee exchanges (cash) wages for some other form of benefit is

generally referred to as a 'salary packaging' or 'salary exchange' arrangement. In most countries, most kinds of employee benefits are taxable to at least some degree. Examples of these benefits include: housing (employer-provided or employer-paid), group insurance (health, dental, life etc.), disability income protection, retirement benefits, daycare, tuition reimbursement, sick leave, vacation (paid and non-paid), social security, profit sharing, funding of education, and other specialized benefits. Administration of Benefits and Services Some of the considerations in administering benefits and services are as follows: 1) Determining Recipients of Benefits: As part of establishing its objectives, an employer must determine its responsibilities to various categories of persons who might be eligible for coverage under the firms overall benefit programme. It includes the following: i. Active full-time employees; ii. Dependents of active full-time employees; iii. Retired employees; iv. Dependents of retired employees; v. Part-time employees; vi. Dependents of part-time employees; vii. Disabled employees; viii. Dependents of disabled employees; ix. Survivors of deceased employees; x. Employees who have terminated employment; xi. Dependents of employees who have terminated employment; xii. Employees who are temporarily separated from employment (e.g., employees on family leave) ; and xiii. Dependents of employees who are temporarily separated from employment. Obviously, most benefits are given to employees, and some benefits are given to their dependents, such as medical expense coverage. 2) Deciding Whether to Include Retirees in the Plan: This includes the attitude of the employer and the degree to which protection is available under other programmes, such as social security. 3) Probationary Periods: Probation is a status given to new employees of a company or business. It is widely termed as the Probation Period of an employee. This status allows a supervisor or other company manager to evaluate closely the progress and skills of the newly hired worker, determine appropriate assignments, and monitor other aspects of the employee such as honesty, reliability, and interactions with co-workers, supervisors or customers. 4) Financing: Many benefit plans require that each employee pay a portion of the costs for his or her own coverage. This may lower the employers costs and/or may enable the employer to use these saved dollars to provide additional or improved benefits. 5) Employee Choice: There are various methods to know the opinion and choice of employees regarding various benefits plan which are as follows: i. Personal Interviews ii. Simplified questionnaires

iii. Sophisticated Research Methods 6) Cost Containment: The process of controlling the expenses required to operate an organization or perform a project within pre-planned budgetary constraints. The cost containment process is an important management function that helps keep costs down to only necessary and intended expenses in order to satisfy financial targets. 42. What is the future of employee benefits and services? Elucidate the significance of employee benefits and services in todays scenario. Ans. Future of Employee Benefits and Service Current benefit packages have evolved over the years from plans that addressed the basic needs of the workers and provided minimum benefits to the individuals. Employees in general are more educated, more sophisticated and more demanding of remuneration including fringe benefit. Employers are, therefore, required to devise newer benefit plans to attract and retain competent personnel, keeping a watch on the benefits costs. Certain guidelines for making employee benefits and services more effective are as follows: 1) Fringe benefit planning in this area will have to keep in view some fresh reference points. Non unionization and skills shortage are no more relevant for policy considerations. 2) Fringe benefit programmes should be looked at as a worthwhile corporate instrument in HRM. 3) Any meaningful package of benefits must reflect some perspective planning inflexibility brings stagnation. 4) Separate programmes directly beneficial to workers from those that are directed towards community welfare. Clubbing them together adds to their cost. This may not be liked by workers. 5) It is advisable not to have a facility rather than neglecting it in its administration. 6) Poor internal communication hurts the programme in at least three ways: i. More money is spent for officers welfare; ii. Excess money spent on corporate image building at the cost of more bonus; iii. Priority to officers children in admissions to schools. Therefore, make the internal communication system effective. 7) Devise new ways to involve workers and their representatives at all levels of planning and implementation. Significance of Employee Benefits and Services 1) Helps in employee retention 2) Provides financial security 3) Enhances employee satisfaction 4) Increases productivity 5) Helps in attracting best talents 6) Improves employee morale 7) Induces feeling of unity among employees 8) Improves industrial relations 9) Shows concern for employee well-being 10) Reduces HR cost 43. Elucidate the statutory and non-statutory provisions related to employee welfare.

Ans: Statutory Welfare Schemes The statutory welfare schemes include the following provisions: Drinking Water: At all the working places safe hygienic drinking water should be provided. Facilities for sitting: In every organization, especially factories, suitable seating arrangements are to be provided. First aid appliances: First aid appliances are to be provided and should be readily assessable so that in case of any minor accident initial medication can be provided to the needed employee. Latrines and Urinals: A sufficient number of latrines and urinals are to be provided in the office and factory premises and are also to be maintained in a neat and clean condition. Canteen facilities: Cafeteria or canteens are to be provided by the employer so as to provide hygienic and nutritious food to the employees. Spittoons: In every work place, such as ware houses, store places, in the dock area and office premises spittoons are to be provided in convenient places and some are to be maintained in a hygienic condition. Lighting: Proper and sufficient lights are to be provided for employees so that they can work safely during the night shifts. Washing places: Adequate washing places such as bathrooms, wash basins with tap and tap on the stand pipe are provided in the port area in the vicinity of the work places. Changing rooms: Adequate changing rooms are to be provided for workers to change their cloth in the factory area and office premises. Adequate lockers are also provided to the workers to keep their clothes and belongings. Rest rooms: Adequate numbers of restrooms are provided to the workers with provisions of water supply, wash basins, toilets, bathrooms, etc.

Non Statutory Schemes Many non statutory welfare schemes may include the following schemes: Personal Health Care (Regular medical check-ups): Some of the companies provide the facility for extensive health check-up Flexi-time: The main objective of the flextime policy is to provide opportunity to employees to work with flexible working schedules. Flexible work schedules are initiated by employees and approved by management to meet business commitments while supporting employee personal life needs Employee Assistance Programs: Various assistant programs are arranged like external counseling service so that employees or members of their immediate family can get counseling on various matters. Harassment Policy: To protect an employee from harassments of any kind, guidelines are provided for proper action and also for protecting the aggrieved employee. Maternity & Adoption Leave: Employees can avail maternity or adoption leaves. Paternity leave policies have also been introduced by various companies. Medi-claim Insurance Scheme: This insurance scheme provides adequate insurance coverage of employees for expenses related to hospitalization due to illness, disease or injury or pregnancy.

44. Describe the types of welfare activities. Ans: Types of Welfare Activities

The social and economic aspects of the life of a worker have direct influence on the social and economical development of the nation. There is every need to take care of the worker-to provide both statutory and non statutory facilities to him/her. WELFARE MEASURES INSIDE THE WORK PLACE i. a) b) c) d) e) Conditions of the work environment Neighborhood safety and cleanliness Housekeeping. Workshop (room) sanitation and cleanliness Control of effluents. Distribution of work hours and provision for rest hours, meal time and breaks

f) Workmens safety measures-maintenance of machine and tools, fencing of machine, goggles and First aid equipments etc. g) Notice board; poster, pictures, slogans ii. a) b) c) d) Conveniences

Rest room, wash basins, bathroom, provision for spittoons Provision of drinking water; water cooler Canteen services Management of workers cloak room, rest room, reading room library iii. Workers health services

Factory health centre; dispensary, ambulance, emergency aid, medical examination for workers; health education, health research; family planning services. iv. Women and child welfare

Antenatal and postnatal care, maternity aid, crche and child care; womens general education; separate services for women workers, that is, lunch rooms, toilet, rest rooms, womens recreation(indoor); family planning services. vi. Workers Recreation

Indoor game games; strenuous games to be avoided during intervals of work. vii. Labour-Management participation

a) Formation and working of various committees, that is works committee, safety committee, canteen committee; consultation in welfare area, in production area, in the area of administration, in the area of public relations.

b) c)

Workmens arbitration council. Research bureau. viii. Workers Education

Reading room, library, circulating library; visual education; adult education; factory news bulletin.

45. Explain the relevance of HRM ethics and various ethical issues in HRM. Ans: Lack of Cultural Awareness Multinational managers inevitably deal with miscommunication and lack of cultural awareness. They must prepare their employees for appropriate conduct before sending them to their overseas destination. Training and cultural classes help to enlighten employees about different customs and practices overseas. A lack of cultural awareness could be shown by a lack of respect for the conservative or liberal nature of other cultures. HR managers should assume responsibility for providing employees the right knowledge to successfully navigate cultural issues in foreign countries. Bribery The Foreign Corrupt Practices Act prohibits bribery. However, this law cannot possibly cover all of the range of payments that international businesses encounter. Things like facilitation payments may be required to operate in a foreign country, and the U.S. government has ruled differently on multiple situations surrounding these types of payments, which provides the company with a true ethical dilemma, particularly a human resources manager who must aid an employee facing bribery attempts overseas. In addition, international companies face an environment of pervasive corruption, according to a 2011 survey by Ernst and Young. In that survey, 39 percent of respondents said corruption occurred frequently in their country. Some countries, such as Brazil and Indonesia, had very high rates of reported corruption -- 84 percent and 64 percent, respectively. Human resources management must prepare its employee traveling to these hot-bed countries on how to properly interact with the people and authorities, as well as ensuring the employees remain safe and secure. Privacy Privacy is a pervasive issue for many companies. In addition, privacy laws vary in different locations. The European Union has much stricter privacy laws than the U.S. When the two sets of laws conflict, human resources managers must make a decision which to follow. For example, a European Union company that operates in the United States will have the choice to follow the EU's more restrictive policies or the more lax policies in the U.S. Some corporations choose to enforce the home country standards due to their belief that it is a better operating model that will produce better corporate results, as well as protection for their employees abroad. Compensation Another important issue to consider is the relative compensation levels for each country. Multinationals often have offices in both developed and developing countries where the salaries are quite different. For example, an American transferred to China might make 2 to 3 times their Chinese counterpart doing the same job. It is a bit unseemly to have people working side by side earning so differently for jobs requiring the exact same skill set. In this case, human resources management may face the ethical issue of whether to narrow the gap in compensation. 46. Explicate the nature and importance of ethics.

Ans: Ethics aims at systematic knowledge. So, ethics is a science. Every science is concerned with a particular sphere of nature. As a science ethics has its own particular sphere; it deals with certain judgments that we make about human conduct. It deals with systematic explanation of rightness or wrongness in the light of the highest Good of man. Ethics is a normative science: It is concerned with what ought to be done rather than what is the case. It differs from positive science. A positive science, natural science or descriptive science is concerned with what is. It deals with facts and explains them by their causes. In positive science there is no question of judging its objects in any way. But ethics does not deal with fact. Rather it deals with value. Therefore, it is clear that ethics is concerned with judgments of value, while positive science deals with judgments of facts. That is why ethics is not a positive science but a normative science. Normative ethics deals with standards or norms by which we can judge human actions to be right or wrong. For example, logic, aesthetics are also considered as normative sciences, because logic and aesthetics are concerned with truth and beauty. So, truth, beauty and value are the three ideals of logic, aesthetics and ethics respectively. Ethics is not a practical science: Practical science deals with means for the realization of an end or ideal. It teaches us to know how to do. As for instance, medical science is a practical science. It concerns with the means in order to remove the causes of ailments or diseases. But ethics is not concerned with means in order to achieve moral ideal that is rightness or goodness. It does not teach us how to live a moral life. So, ethics cannot be regarded as a practical science. Ethics is not an art: Ethics does not teach us an art as to how to lead a moral life. Rather it helps us to justify rightness or goodness which can lead to the supreme goal of human life that is to realize the sum mum bonus of human life. So, ethics is not a means to the highest ideal of human life. But, like the practical science, art is also a means for obtaining a goal. So, ethics is neither a practical science nor an art. Again the question is, is there any art of conduct? The reply is, in case of morality this is not true. Art especially deals with acquisition of skill to produce objects, while morality deals with motive, intention, purpose and choice which are considered right or wrong in the light of goodness. Therefore, morality consists of goodness, which is really an intrinsic end. A norm or ideal in the ethical sense is defined as any regulatory principle that controls or lays guidelines to thought and mode of acting. Ethics is a science of values as it discovers the forms of conduct or behaviour, which have the character of oughtness. Ethics deals with moral phenomena and it observes and classifies them and explains them by the moral ideal. It distinguishes moral judgments from logical judgments and aesthetic judgments and reduced them to a system. So, we may define the nature of ethics as scientific. However, from another perspective all sciences also lead to philosophical questions if we take philosophy to be quest for knowledge. That is way ethics is a branch of philosophy. There is no clear-cut boundary between science and philosophy, between descriptive science and normative science and between ethics and philosophy. A norm is more than a description. While philosophies have become more scientific and sciences have become more philosophical, the distinction between science and philosophy and between value-science like ethics and general philosophy is a matter of degree. That way ethics is both scientific and philosophical, both descriptive and normative science and both pure and applied, pure ethics and meta ethics. Ethics is an art as it sets guidelines for practical conduct and also for understanding the meaning of what it is to act in an ethical manner. Ethics is concerned with Goodness as an ultimate value while some other normative sciences like Aesthetics and Logic are oriented to the ideals of Beauty and Truth respectively.

47. An HR audit must cover the activities of the department and extend beyond. Comment on the statement and discuss the scope of HR audit. Ans: The basic objective of personnel audit is to know how the various units are functioning and how they have been able to meet the policies and guidelines which were agreed upon; and to assist the rest of the organization by identifying the gaps between objectives and results, for the end-product of an evaluation should be to formulate plans for corrections of adjustments (Gray). The objectives of personnel audit are: To review the organizational system, human resources subsystem in order to find out the efficiency of the organization in attracting and retaining human resources. To find out the effectiveness of various personnel policies and practices. To know how various units are functioning and how they have been able to implement the personnel policies, and To review the personnel system in comparison with organizations and modify them to meet the challenges of personnel management. The scope of personnel audit is very wide. It covers areas like personnel philosophy, policies, programmes, practices and personnel results. The major areas of personnel audit include programming, forecasting and scheduling to meet organization and personnel needs. The areas of recruitment, selection, careers, promotions, training and development also come within the scope of personnel audit. Further, the areas of leadership, welfare, grievances, performance appraisal, employee mobility, industrial relations are also included within the scope of personnel audit.

48. Explain various approaches of HR audit. Ans: HR auditing in recent years is not only considered mere instrument of control an but also has become a necessary decision making tool in personnel related matters according to the global objectives of the company. As a result, all of the functions and competencies of HR auditing are being progressively expanded. 1 Approaches to Human Resource Audit by Walker Walker [1998] differentiates between two approaches relative to HR auditing i.e. those centered in the functions internal aspect, and those centered on the external aspect. Internal perspective: From an internal perspective, as in any staff function, there is a trend of valuing its actions as a result of the activities undertaken and its costs. The way of judging departments capability would be on its ability to supply certain services to the organization at the lowest possible cost. According to this approach, the operational measurements traditionally used are those which refer to quantity, quality and reliability, or cost and speed, therefore placing the focus on activities, costs, or productivity ratios. External perspective: From an external perspective, if it is understood that the ultimate appraisal of the effectiveness of HR is based on their impact on the companys results, then the measurements. 2 Common approaches to Human Resource Audits There are five common approaches for the purpose of evaluation of HR in any organization: Comparative approach: In this approach, another division or company that has better practices or results is chosen as the model. The audit team audits and compares the audited firms results with the best practices of the model organization. This approach is commonly used to compare the results of specific activities or programs. The approach is often used with turnover, absence, salary data and staffing levels.

It helps detect areas where improvement is needed. It also makes sense to compare where a procedure is being used for the first time. Outside authority: In this approach, standards set by a consultant or taken from published research findings serve as the benchmark for the audit team. The consultant or research findings may help diagnose the cause of problems. Statistical: This approach relies on performance measures drawn from the companys existing information system. From existing records, the audit team generates statistical standards against which activities and programs are evaluated. With the mathematical standards as a base, the team may uncover errors while they are still minor. Often this approach is supplemented with comparative data from external sources such as other firms, or industry association surveys. The information is usually expressed in ratios or formulas that are easy to compute and use. Compliance approach: This approach reviews past practices, to determine if actions taken followed legal requirements and company policies and procedures. The audit team here often examines a sample of employment, compensation, discipline and employee appraisal forms. The purpose of the review is to ensure that the field offices and the operating managers have complied with internal rules and legal regulations, such as minimum wages and equal employment opportunity laws. By sampling elements of the human resources information system, the audit team looks for deviations from laws and company policies and procedures. The team can then determine the degree of compliance achieved. Management by Objectives (MBO): In this management by objectives approach, managers and specialists set objectives in their area of responsibility. Then they create specific goals against which this performance can be measured. The audit team researches actual performance and compares it with the previously set objectives. They can then evaluate the trends in this area. 49. Discuss the procedure for conducting HR audit. Ans: Determine the scope and type of the audit

To uncover the needed information, it is important to determine exactly what areas should be targeted for review. If the organization has never audited its HR function, or if there have been recent significant organizational or legal changes, the audit team may want to conduct a comprehensive review of all HR practice areas. On the other hand, if concerns are limited to the adequacy of a specific process or policy, the audit focus should be limited to a review of that particular area. Develop the audit questionnaire

Whether conducting a comprehensive audit or an audit of a specific practice, it is important to invest sufficient time in developing a comprehensive document that elicits information on all the subjects of the inquiry. A list of specific questions must be developed to ensure that the questionnaire is complete. Collect the data

The next phase includes the actual process of reviewing specific areas to collect the data about the company and its HR practices. Audit team members will use the audit questionnaire as a roadmap to review the specific areas identified within the scope of the audit.

Benchmark the findings

To fully assess the audit findings, they must be compared with HR benchmarks. This comparison will offer insight into how the audit results compare against other similarly sized firms. Typical information that might be internally benchmarked includes the companys ratio of total employees to HR professionals, general and administrative costs, cost per new employees hired, etc. Benchmarking might include the number of days to fill a position, average cost of annual employee benefits, absenteeism rates, etc. Provide feedback about the results

At the conclusion of the audit process, the audit team must summarize the data and provide feedback to the companys HR professionals and senior management team in the form of findings and recommendations. Findings typically are reduced to a written report with recommendations prioritized based on the risk level assigned to each item (e.g., high, medium and low). From this final analysis, a roadmap for action can be developed that will help determine the order in which to address the issues raised. In addition to a formal report, it is critically important to discuss the results of the audit with employees in the HR department, as well as the senior management team, so everyone is aware of necessary changes and approvals can be obtained quickly. Create action plans

It is critical actually to do something with the information identified as a result of an audit. The company must create action plans for implementing the changes suggested by the audit, with the findings separated by order of importance: high, medium and low. It actually increases legal risk to conduct an audit and then fail to act on the results. Foster a climate of continuous improvement

At the conclusion of the audit, it is important to engage in constant observation and continuous improvement of the companys policies, procedures and practices so that the organization never ceases to keep improving. This will ensure that the company achieves and retains its competitive advantage. On way to do this is to continuously monitor HR systems to ensure that they are up-to-date and to have follow-up mechanisms built into every one of them. Likewise, it is important to keep track of the audit findings/changes made, turnover, complaints filed, hotline issues, employee survey results, etc. to identify trends in the companys employment -related issues. Identifying problematic issues, growth areas or declining problem spots can help in the decision of where to allocate time, money and preventive training resources in the future.

50. Write a short note on the following: a) Difference between human resource management and personnel management b) Difference between recruitment and selection c) Difference between transfer and promotion Ans. Personnel Mgmt. versus HRM 1. Personnel management is a traditional approach of managing people in the organization. Human resource management is a modern approach of managing people and their strengths in the organization.

2. Personnel management focuses on personnel administration, employee welfare and labor relation. Human resource management focuses on acquisition, development, motivation and maintenance of human resources in the organization. 3. Personnel management assumes people as a input for achieving desired output. Human resource management assumes people as an important and valuable resource for achieving desired output. 4. Under personnel management, personnel function is undertaken for employee's satisfaction. Under human resource management, administrative function is undertaken for goal achievement. 5. Under personnel management, job design is done on the basis of division of labor. Under human resource management, job design function is done on the basis of group work/team work. 6. Under personnel management, employees are provided with less training and development opportunities. Under human resource management, employees are provided with more training and development opportunities. 7. In personnel management, decisions are made by the top management as per the rules and regulation of the organization. In human resource management, decisions are made collectively after considering employee's participation, authority, decentralization, competitive environment etc. 8. Personnel management focuses on increased production and satisfied employees. Human resource management focuses on effectiveness, culture, productivity and employee's participation. 9. Personnel management is concerned with personnel manager. Human resource management is concerned with all level of managers from top to bottom. 10. Personnel management is a routine function. Human resource management is a strategic function.

Ans. Differentiate between Recruitment & Selection. Both recruitment and selection are the two phases of the employment process. The differences between the two are: Recruitment is the process of searching the candidates for employment and stimulating them to apply for jobs in the organization WHEREAS selection involves the series of steps by which the candidates are screened for choosing the most suitable persons for vacant posts. The basic purpose of recruitments is to create a talent pool of candidates to enable the selection of best candidates for the organization, by attracting more and more employees to apply in the organization WHEREAS the basic purpose of selection process is to choose the right candidate to fill the various positions in the organization. Recruitment is a positive process i.e. encouraging more and more employees to apply WHEREAS selection is a negative process as it involves rejection of the unsuitable candidates. Recruitment is concerned with tapping the sources of human resources WHEREAS selection is concerned with selecting the most suitable candidate through various interviews and tests. There is no contract of recruitment established in recruitment WHEREAS selection results in a contract of service between the employer and the selected employee.

Ans. Distinction between Transfer and Promotion Promotion takes place when an employee moves to. a position higher than the one for merely occupied. Transfer is the movement of an employee from one job to another without involving any change in his status, duties and responsibilities and compensation. The distinction between promotion and transfer can be drawn on the following grounds. (a) Nature In case of promotion, new position carries higher pay, status and job conditions and compared with the old while in case of transfer, pay, status, responsibilities and job conditions are almost the same. (b) ObjectsPromotion aims at recruiting the right man on the job from the lower rank within the organization while transfer aims at maintaining equilibrium between demand and supply of the employees by shifting the employees from one job to another or from one department to another. PolicyPromotion as a part of personnel programmes, helps the employees to increase their efficiency but transfer is used as a technique in training programmes