Professional Documents
Culture Documents
Course MBA-Semester-1
HUMAN RESOURCE
Subject
MANAGEMENT
Subject
Code
MB0027-Set-1
The term Hawthorne effect has been linked with numerous other terms,
including:
In the light of the various critiques, we can see the Hawthorne effect at
several levels:
At the top level, it seems clear that in some cases there is a large
effect that experimenters did not anticipate, that is due to participants'
reactions to the experiment itself.
At a middle level the most important (though not the only) aspect of
this is how the participants interpret the situation. Interviewing them
(after the "experiment" part) would be the way to investigate this.
This is important because factory workers, students, and most experimental
participants are doing things at the request of the experimenter.
At the lowest level is the question of what the direct causal factors
might be.
2 .Trace the growth of Trade Union Movement from Factories Act 1881 to
Factories Act 1948.
Ans.
Growth of Indian trade union movement can be divided into three phases:
The first phase falls between 1850 and 1900 during which the
inception of trade unions took place. During this period of the growth of
Indian Capitalist enterprises, the working and living conditions of the labour
were poor and their working hours were long. Capitalists were only interested
in their productivity and profitability. In addition to long working hours, their
wages were low and general economic conditions were poor in industries. In
order to regulate the working hours and other service conditions of the
Indian textile labourers, the Indian Factories Act was enacted in 1881. As a
result, employment of child labour was prohibited. Mr. N M Lokhande
organized people like rickshawalas etc., prepared a study report on their
working conditions and submitted it to the Factory Labour Commission. The
Indian Factory Act of 1881 was amended in 1891 due to his efforts. Guided
by educated philanthropists and social workers like Mr.Lokhande, the growth
of trade union movement was slow in this phase. Many strikes took place in
the two decades following 1880 in all industrial cities. These strikes taught
workers to understand the power of united action even though there was no
union in real terms. Small associations like Bombay Mill-Hands Association
came up.
The second phase of The Indian trade union movement falls between 1900
and 1947.This phase was characterized by the development of organized
trade unions and political movements of the working class. It also witnessed
the emergence of militant trade unionism. The First World War (1914-1918)
and the Russian revolution of 1917 gave a new turn to the Indian trade union
movement and organized efforts on part of the workers to form trade unions.
In 1918, B P Wadia organized trade union movements with Textile mills in
Madras. He served strike notice to them and workers appealed to Madras
High Court because under ‘Common Law’, strike is a breach of law. In 1919,
Mahatma Gandhi suggested to let individual struggle be a Mass movement.
In 1920, the First National Trade union organization (The All India Trade
Union Congress (AITUC)) was established. Many of the leaders of this
organization were leaders of the national Movement. In 1926, Trade union
law came up with the efforts of Mr. N N Joshi that became operative from
1927.
The third phase began with the emergence of independent India (in 1947),
and the Government sought the cooperation of the unions for planned
economic development. The working class movement was also politicized
along the lines of political parties. For instance Indian national trade Union
Congress (INTUC) is the trade union arm of the Congress Party. The AITUC is
the trade union arm of the Communist Party of India. Besides workers,
white-collar employees, supervisors and managers are also organized
by the trade unions, as for example in the Banking, Insurance and Petroleum
industries.
Ans.
Ans.
Ranking method
The ‘whole man’ is compared with another ‘whole man’ in this method.
In practice, it is very difficult to compare individuals possessing varied
behavioral traits.
This method speaks only of the position where an employee stands in
his group. It does not tell anything about how much better or how
much worse an employee is when compared to another employee.
When a large number of employees are working, ranking of individuals
becomes a toxicating issue.
There is no systematic procedure for ranking individuals in the
organization. The ranking system does not eliminate the possibility of
snap judgments.
Group appraisal
Assessment centre
This method of appraising was first applied in German Army in 1930. Later
business and industrial houses started using this method. This is not a
technique of performance appraisal by itself. In fact it is a system or
organization, where assessment of several individuals is done by various
experts using various techniques. These techniques include the methods
discussed before in addition to in-basket, role playing, case studies,
simulation exercises, structured in sight, transactional analysis, etc.
Field Review Method
Subsistence theory: This theory, also known as ‘Iron Law of Wages’, was
propounded by David Ricardo (1772-1823). According to this theory, wages
tend to settle at a level just sufficient to maintain the workers and his family
at minimum subsistence levels. The theory applies only to backward
countries where labourers are extremely poor and are unable to get their
share from the employers.
Standard of living theory: This theory is a modified form of subsistence
theory. According to this theory, wages are determined not by subsistence
level but also by the standard of living to which a class of labourers become
habituated.
Residual claimant theory: Francis A. Walker(1840-1897) propounded this
theory. According to him, there were four factors of production/ business
activity viz., land, labour, capital and entrepreneurship. Wages represent the
amount of value created in the production which remains after payment has
been made for all these factors of production. In other words, labour is the
residual claimant.
The wage fund theory: According to this theory, after rent and raw
materials are paid for, a definite amount remains for labour. The total wage
fund and the number of workers determine the average worker’s share in the
form of wages.
Demand and supply theory: According to this theory, wages depend upon
the demand and supply of labour.
Marginal productivity theory: This is an improved form of demand and
supply theory. Wages are determined by the value of the net product of the
marginal unit of labour employed.
Purchasing power theory: According to this theory the prosperity,
productivity and progress of industry depend on there being sufficient
demand to ensure the sale of its products and pocketing of reasonable
profits. A large pact of the products of industry is consumed by workers and
their families and if wages are high m demand will be good. However, if
wages and the purchasing power of the workers are low, some of the goods
will remain unsold; output will go down which will result in unemployment.
The bargaining theory of wages: John Davidson propounded this theory.
According to him, wages are determined by the relative bargaining power of
workers or trade unions and of employers, When a trade union is involved,
basic wages, fringe benefits, job differentials and individual differences tend
to be determined by the relative strength of the organization and the trade
union.
There are four basic methods of job evaluation: ranking method, job
grading method, point method and factor comparison method. Out of these,
first two methods are non-quantitative and also known as traditional, non
analytical or summary methods. The last two methods are quantitative, also
known as analytical methods, and use various quantitative techniques in
evaluating a job.
Ranking Method
In the ranking method, a whole job is compared with others and rank is
provided on the basis of this comparison.
Advantages:
Ranking method has certain facial merits. Some of these merits are as
follows:
1. The method is comparatively simple, easily understandable, and mostly
acceptable by labour unions. It is suitable for comparatively smaller
organisations which may not like to undertake more laborious exercises.
2. The method is less costly to undertake and maintain as compared to other
systems.
Limitations:
Since ranking method of job evaluation is qualitative and non-analytical.
it suffers from the following limitations:
1. Ranking method is judgmental and, therefore, it is affected by personal
preferences of job evaluators.
2. This method ranks various jobs in order of their relative worth. It does not
specify the real difference between two jobs.. For example, the exact
difference between job ranked at first and the job ranked at second cannot
be specified.
Grading Method
Job grading method also known as job classification method establishes
various grades for different categories of jobs
Advantages:
Grading system of job evaluation particularly in government jobs. is
quite popular as this has certain merits over the ranking method. These are
as follows:
1. It is quite simple to operate and understand as the relevant information
is provided by job analysis which serves other purposes too.
2. Job evaluation done on grading method makes wage and salary
determination easier as these are fixed in terms of various grades of
jobs.
Limitations:
This system of job evaluation suffers with the following limitations:
1. Job grade description is vague and personal biases may distort job
grading as the method is not based on any scientific analysis.
2. There are chances of employees' resistance when new clusters of jobs
are prepared. This is evident by the fad that government employees
agitate when recommendations of a new pay commission come.
Point Method
Point method of job evaluation is widely used in business organisations.
It is an analytical and quantitative method which determines the relative
Worth of a job on the basis of points allotted to each specific factor of a job.
Course MBA-Semester-1
HUMAN RESOURCE
Subject
MANAGEMENT
Subject
Code
MB0027-Set-2
1 Mention and briefly explain different sources of recruitment
Ans.
Every organization has the option of choosing the candidates for its
recruitment processes from two kinds of sources: internal and external
sources. The sources within the organization itself (like transfer of
employees from one department to other, promotions) to fill a position
are known as the internal sources of recruitment. Recruitment
candidates from all the other sources (like outsourcing agencies etc.)
are known as the external sources of recruitment.
INTERNAL SOURCES:
1. TRANSFERS
The employees are transferred from one department to another
according to their efficiency and experience.
2. PROMOTIONS
The employees are promoted from one department to another
with more benefits and greater responsibility based on efficiency
and experience.
3. Others are Upgrading and Demotion of present employees according to
their performance.
4. Retired and Retrenched employees may also be recruited once again in
case of shortage of qualified personnel or increase in load of work.
Recruitment such people save time and costs of the organizations as the
people are already aware of the organizational culture and the policies and
procedures.
5. The dependents and relatives of Deceased employees and disabled
employees are also done by many companies so that the members of the
family do not become dependent on the mercy of others.
EXTERNAL SOURCES:
To combines the two methods, the interviewer may start with the
guided interview, which should be not too long or cover too much territory.
The interviewer is then invited to discuss any subject that he may like to talk
about. During the guided interview some persons tend to bring in material
that has no special significance in relation to the information sought. The
interviewer should observe such instances and encourage the interviewee
should observe such instances and encourage the interviewee to follow up
these leads during the unguided position of the interview. As a matter of fact,
few guided interviews are strictly kept on the detailed subjects laid out in the
formal programme and a conscious effort has to be put forth to get the most
out of the unguided phases of the interview.
3 Discuss the techniques to motivate employees.
Ans.
Motivated employees make fewer mistakes, have higher productivity,
and tend to remain with a company. Motivating employees is an element of
performance management. It is accomplished through several important
performance management strategies:
There are varying penalties for first, second, and third offences of the same
rule. Among the penalties available in business are:
1. Oral reprimand
2. Written reprimand
3. Loss of privileges
4. Fines
5. Lay off
6. Demotion
7. Discharge
The penalties are listed in the general order of severity, from mild to severe.
For most cases, an oral reprimand is sufficient to achieve the desired result.
The supervisor must know his or her personnel in determining how to give a
reprimand. For one person, a severe "chewing out" may be necessary in
order to get attention and co-operation; another person may require only a
casual mention of a deficiency. If the offence is more serious, the reprimand
may be put in written form. Since a written reprimand is more permanent
than an oral one, it is considered a more severe penalty.
For such offences as tardiness or leaving work without permission, fines or
loss of various privileges can be used. The fines usually have some
relationship to the work time actually lost. The loss of privileges includes
such items as good job assignments, right to select machine or other
equipment, and freedom of movement about the workplace or company. The
more severe penalties of layoff, demotion, and discharge are usually outside
the grant of authority to the immediate supervisor. Disciplinary layoffs can
vary in severity from one to several days' loss of work without pay. The use
of demotions as a penalty is highly questionable. If the employee is properly
qualified for the present assignment, he or she will be improperly placed on a
lower job. Discharge is the most severe penalty that a business organization
can give and constitutes "industrial capital punishment".
5. Follow up:
The objective of the grievance procedure is to resolve a disagreement
between an employee and the organization. Discussion and conference are
important to this process. The purpose of its follow up phase is to determine
whether the clash of interest has been resolved. If follow up reveals that the
case has been handled unsatisfactorily or that the wrong grievance has been
processed, then redefinition of the problem, further fact finding, analysis,
solution and follow up are required.
The grid theory has continued to evolve and develop. Robert Blake
updated it.The theory was updated with two additional leadership styles and
with a new element, resilience.
The Managerial grid
Blake and Mouton developed a two – dimensional matrix of leadership
styles.
The model consists of nine rows and columns.
The rows represent the leader’s concern for production, while the
columns represent the concern for people.
The model is represented as a grid with concern for production as the
X-axis and concern for people as the Y-axis; each axis ranges from 1 (Low)
to 9 (High).
With nine possible positions on each side, leaders can be located at
one of a total of 81 position on this grid. Blake and Mouton found five
intersection points in this model – 1,9; 1,1; 9,1; 5,5 and 9,9. People whose
behavior falls into the 1,1 cell on the grid, called the impoverished style of
leadership, exhibit no concern for people or for work. Hence, they often fail
as leaders. People who follow the 1,9 style of leadership have high
concern for people but low concern for production. This is referred to as the
country club style of leadership. People who exhibit the 9,1 style of
leadership have high concern for production and low concern for people
This is referred to as authoritarian style of leadership. People whose
leadership style fall into the 9,9 cell show high concern for both people and
production. This position on the grid is referred to as team management style
of leadership.
Blake and Mouton suggested that managers who practice a 9.9 style
(team management) of leadership are more effective compared to the 9.1
style (authoritarian), or the 1,9 style (country club type). Leaders whose
behavior falls into the 5,5 style are also considered to be fairly effective