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1. Good HRM practices are instrumental in achieving departmental objectives in

2. the dimension of a great place to work are pride and camaraderie
3. People or employee can give the competitive advantages to the company.
4. HR audit is to get the clear judgments about the overall status organization.
5. HR audit is types of functional audit.
6. The concept of HR audit has emerged from the practices of financial audit.
7. Employee evaluation audit helps more towards employee promotions.
8. Organizational development audit helps to identify critical issues of human resource.
9. The essence of ethical organizational is codes of ethics.
10. Performance management audit helps in improving organizational performance.
11. It is necessary to communicate family medical leave Act leave policy, if applicable,
in writing to all employees.
12. Exit interview are an important part of an employee's separation from the company.
13. The HR scorecard metrics hierarchy consists of: Operational HR metrics that
focus on efficiencies
14. One of the problems for HR is that there is an almost limitless choice of HR matrices.
15. psychometric testing is part of the recruitment or selection process
16. Aptitude and ability tests are designed to assess your logical response or thinking
17. The human resource valuation system cannot be considered to be a complete
system of accounting unless it is followed by equally Competent System of
18. The concept of human resource valuation and the auditing concept was evolved
which emphasizes that human resources should be treated as physical assets and
should be shown in the balance sheet of the enterprise
19. As soon as employees come aboard, a company begins collecting information that
must be safeguarded to protect Employee Confidentiality
20. When testing is conducted to determine the skilled needed to do the job, the
requirements are straightforward
21. Critical areas of human resource management are Recruiting and Retention
22. HR audit is to get a clear judgment about the overall status of the organization
23. Organizations undertake HR audits for the reason : To instill a sense of
confidence in the human resource
24. Who can make the things happen in the organization? Employees or people in the
25. The Reward and Benefits Audit will enable to Analyses existing arrangements in
26. As a partner of the employees, the____________ must Endeavour to improve
_________of the staff HR Dept & meeting the needs
27. Double-Loop Feedback in traditional industrial activity, refers to Inspection and
28. Abstract Reasoning Test is based on: Intellectual ability
29. The objectives of human resource valuation are: Human resource cost and values
30. The non-disclosure of human resources accounting information in financial
statements distorts: Net income disclosed by the profit and loss account
31. HR audit covers safeguarding employees ___________________ managing and
supporting them, and participating in their Confidential Information & exit from the


32. Training and Development focuses on Managers' positive feedback on learners'


33. Organizations undertake HR audits for fundamental reason: To ensure effective utilization
of human resources.

34. One of the basic cost to be considered for recruitment metric are: Screening cost

35. Prescribed form of the employee's rights is explained in terms of Occupational Health and
Safety Act,
36. Compensation systems should be reviewed for: equity, competitiveness and
37. Kaplan and Norton describe the innovation of the balanced scorecard as follows: Financial
measures tell the story of past events
38. Many legal issues arise out of performance problems, the audit will review or recommend
standard items such as: A performance management/performance improvement plan

Unit: 1
1. Human resources are a relatively modern management term, coined in the 1960. The
origins of the function arose in organizations that introduced 'welfare
management' practices and also in those that adopted the principles of
scientific management'.
2. Personnel management is more administrative in nature.
3. Human resource planning is the term used to describe how companies
Ensure that their staff comprise of Right person for doing the job.
4. It is process of acquiring and utilizing Human Resource in the organization.
5. Objectives of HRP:

6. Downsizing forces re-thinking of Employment Strategy i.e. Lifelong employment

policies may not be credible after a downsizing.

7. process of HRP:
a) analyze organizational plans
b) forecast demand for Human Resources


c) forecasting supply of Human resource

d) estimating manpower gaps
e) actions to be taken for
f) Bridging those gaps is planned.
g) Monitoring and control
8. recruitment process:

9. staffing process:

10. Recruitment and staffing are crucial factors which define _________ of
An organization. Success

11. 6. On boarding is the process of helping new employees to get to know the
_________ Of the organization. Working Culture

12. Employee selection is the process comprised of _________ and _________

information about an individual. Collecting, evaluating
13. Scope of human resource audit
Audit of all the HR function.
Audit of managerial compliance of personnel policies, procedures and
legal provisions.
Audit of corporate strategy regarding HR planning, staffing, Industrial
Relations, remuneration and other HR activities.
Audit of the HR climate on employee motivation, morale and job

14. Techniques of performance appraisal:

a. Management by Objectives: This concept was introduced by Peter
Ducker in 1954



b. 360 Degree Appraisal: It is the forms of appraisal where employee get

feedback from all the sources that employee come in contact with in
his/her job.
self appraisal
superiors appraisal
subordinates appraisal
peers appraisal
c. assessment centers: methods
social/informal events,
tests and exercises,
assignments being given to a group of employees to assess their
Competencies to take higher responsibilities in the future.
d. Human Resource Accounting:
15. Human Resource depreciates its value with passage of time. F
16. Retaining highly skilled staff if not important for the organization. F
17. Downsizing programme is the simplest aspect of HRP. F
18. Measuring actual performance is the simplest step of performance appraisal
process. F
19. Training is mere wastage of money in any organization. F
20. Training helps in increasing employees productivity. T
21. Human resources are equally important as Financial resources. T
22. Last step of performance appraisal process is to take decisions based on
performance. T
23. Workforce: It is number of employed personnel in an organization.
24. Human Resource Planning: It is process of acquiring and utilizing Human
Resource in the organization.
25. Performance Appraisal: It is the process of measuring the performance of
employees and checking their progress towards the desired goals.
26. HR Audit: It is a tool which measures the effectiveness of various areas of HR.
27. Recruitment: It comprises of process of attracting, screening, and selecting
qualified people for a job at an organization or firm.

1. The HRD audit is divided into three components:


Organization and Administration of Human Resource

Information Management through Documentation
Computerized HRIS
2. In computerized HRIS, there is needed to check the system requirements,
features and capabilities. (Fill in the blank)
3. 2. Information management through documentation keeps track of documents are
held in personnel files.
4. Major Human Resource Development strategies
a. Communications Strategy
b. Accountability and Ownership Strategy
c. Quality Strategy
d. Cost Reduction Strategy
e. Entrepreneurship Strategy
f. Culture Building Strategy
g. Systematic Training Strategy
h. Learning Strategy
5. HRD has five major systems and each of the systems has sub systems:
a. Career system
b. Work system
c. Development system
d. Self-renewal system
e. Culture system:
6. The commonly used HRM systems are as follows:
Human Resources Information System (HRIS)
Personnel Action Tracking System (PATS)
Financial Disclosure System (FINDIS)
Modular Ethics Training Tracking System (METTS)
Office of Workers Compensation Case Tracking System (OWCP)
Leave Transfer System
Research Position Evaluation System (RPES)
Awards Tracking System

OPF Tracking System

Electronic Performance Management System (e-PMS)
7. The various functions in HRD are carried out through its systems and sub-
8. Which of the following is not a culture building sub-systems? technical system

9. Role analysis and Role efficacy are sub systems of work system.

10. HR auditing must perform two basic functions [Cantera, 1995].

a. it must be a management information system

b. it must be a way of controlling and evaluating the policies
11. The results can be valued through their cost (a measurement internal to the
function) [Walker, 1998]
12. HRD culture does not pay attention to the learning behavior in the


13. There is a structure that is prescribed and is used in the organizations

14. Which of the following is not an objective of a functional audit?
(a) Diagnose (b) criticize (c) control (d) advise

15. The HR audit is not a functional audit. F

16. Aspects of HR Functions are not important while conducting HR Audit. F
17. To have elementary knowledge of compliance is important before conducting HRD
Audit. T

1. According to Dr. Parimalendu Bandyopadhyay, HR Audit means the
systematic verification of job analysis and design, recruitment and selection,
orientation and placement, training and development, performance appraisal and
job evaluation, employee and executive remuneration, motivation and morale,
participative management, communication, welfare and social security, safety and
health, industrial relations, trade unionism, and disputes and their resolution.
2. Human Resource Audit is a systematic assessment of the strengths, limitations, and
developmental needs of its existing human resources in the context of organizational
performance (Flamholtz, 1987).
3. HR Audit verifiers performance appraisal system used in the organization.
4. HR Audit does not involve verification of recruitment and selection process. F
5. HR Audit is useless tool for the organizations decreases the effectiveness of HR
functions of an organization. F
6. Financial audit is for financial functions while HR Audit is for HR Functions.
7. HR Audit helps to find out the reasons for low productivity & improve HRD
strategies. T
8. Which of the following are not accounted for by human resource audits?
(a) Skills of its employees (b) abilities of its employees
(c) Limitation of its employees (d) habits of its employees

9. Main goal of HR Audit is to verify whether HR Functions are properly co-coordinating

with the goal of organization.
10. HR Audit is always conducted by internal employees. F
11. Approaches to Human Resource Audit by Walker
Internal perspective
External perspective

12. Common approaches to Human Resource Audit

Comparative approach
Outside authority
Compliance approach
Management by Objectives (MOB)
13. Statistical approach relies on performance measures drawn from the companys
existing information system. T
14. 1 In an internal perspective approach to HR Audit there is a trend of valuing
actions as a result of the activities undertaken and their cost.
15. HR Audit has nothing to do with legal requirement of the companies. F
16. User-friendly HR systems are the consequence of HR Audit. T

17. Which of the following is not an immediate benefit of HR Audit?

a. Create an HR business plan
b. Streamline HR work processes
c. It provides timely legal requirements.
d. Monitor compliance with established regulations and procedures

1. An HR audit is like an annual health check, says EJ Sarma.
2. Conducting HR Audit

3. Methods used in the HR Audit process are:

Group discussions and workshops
Analysis of records and documents

4. Legal audit is necessary for compliance.

5. Preliminary Steps

Conduct Pre-Audit Self-Assessment

Collect Pre-Audit Information
6. A pre-audit information request should be forwarded to the client who compiles
the necessary information for review by auditors. T
7. Inaccuracy of data and improper decoding of results can create problems in HR
audit process. T
8. Compliance is the most important area of HR audit. T
9. Preliminary steps can be ignored if the audit manager is short of time. F


10. HR Audit process involves no challenges and is an easy and relaxed

process. F
11. Professional Development and Training is the only area of HR which does not
require any audit. F
12. The goals of the audit can be of two types i.e. short or long.
13. The goal of the audit is to ensure effective utilization of human resources

UN IT: 5
1. According to Socrates, the unexamined work-life is not worth living. Pfeffer
(1998) identified seven practices of successful organisations on the basis of his review
of various research studies. It followed properly, these dimensions, as written
below, ensure profits through people.
Employment Security
Selective hiring of new personnel
Self managed teams and decentralization of decision making as the basic
principles of organizational design
Comparatively high compensation contingent on organizational performance
Extensive training
Reduced status distinctions and barriers including dress, language, office
arrangements and wage differences across levels
Extensive sharing of financial and performance information throughout the
2. recruitment refers to the process of attracting, screening, and selecting qualified
people for a job at an organization.
3. Various steps in the audit in recruiting involve:
Applicant pool generation
Employment advertising
Employee referral programs
Applicant screening
Employment interviewing techniques and processes
Stress testing
HR audit and recruitment
4. Results of an analysis conducted by Mary L. Connerley, Kevin D. Carlson, Ross L.
Mecham on 391 applicant pools representing 18 different job families suggest that
applicant pool quality can vary substantially within and across job families.
5. Grade Point Average (GPA)
6. AIDA as follows:
Attention catch the attention of the target audience
Interest hold the interest until the whole message is read
Desire Arouse desire for the opportunity offered
Action Stimulate action in the form of applications
7. Applicant screening covers background checks.
8. Application testing deals with tests for the entire application.
9. Tests and preliminary tests play a vital role in interviewing process.
10. Proficiency test seeks to measure the skills and abilities.
11. Achievement tests aims to measure the knowledge and proficiency the candidate
already posses in his field.


12. Dexterity tests examine how quickly and efficiently the candidate can learn about the
nature of his job.
13. Movement tests seek to measure the speed and accuracy of the candidate.
14. A good test should always ensure
Assessment of the candidate in all aspects
Establishment of standards.
15. Phone interviews are generally conducted in two steps.
The first step is with a recruiter in Human Resources.
The second step is a technical interview, usually with one of the
people you would be working with.
16. Stress testing deals with the quality of the application in the environment.
17. Staffing is a term that refers to the management of employee schedules.
18. recruitment involves the process of identifying and hiring best-qualified candidate
(from within or outside of an organization) for a job vacancy
19. Workeforce starts with analysis of the strategic position of the business.
20. Staffing is the process of a acquiring, deploying and retaining workforce of
sufficient quantity and quality to create positive impacts on the organization's
21. Process for an interview
Interview should be effectively planned and executed properly.
Getting information about his background.
Formulating a question plan.
Candidate should be made comfortable during the interview.
Drawing the best from candidates.
Concluding the interview
22. Professional Employment Organization (PEO)
23. "In today's labor market, new employees know they can quit and start
somewhere else tomorrow," says Mel Kleiman, author of Hire Tough,
Manage Easy How to Find and Hire the Best Hourly Employees
24. Orientation should be geared toward reinforcing new employees' buying decision.
25. The process of new employee orientation strengthen the new employees
relationship with an organisation.
26. The employee workshop focuses on identifying harassment, understanding the
complaint procedure, and avoiding retaliation.
27. Diversity training usually includes explanation about how people have different
perspectives and views.
28. Individual coaching sessions are provided to modify inappropriate behavior when
termination is unwarranted.
29. Benefit administration involves the creation and management of employee
30. Higher the employee competitiveness, higher is the benefit to the organization.

Unit: 6
1. WERS: workplaces employments relation survey 1998.


2. In a June 2004 Harvard Business Review article titled "Understanding 'People'

People," Timothy Butler and James Waldroop identified four dimensions to
optimize interpersonal communications.
a. influence
b. interpersonal facilitation
c. relational creativity
d. team leadership
3. Employee Opinion Survey is also known as an employee satisfaction survey.
4. A focus group is a form of qualitative research in which a group of
employees are asked about their perceptions, opinions, beliefs and attitudes
towards the culture and policies of the organization. Focus groups are interviews,
but of 6-10 people at the same time in the same group.
5. Scheduling: Plan meetings to be one to 1-1.5 hours long. Over lunch tends to be a
very good time for others to find time to attend.
6. Focus groups are usually conducted with 6-10 members who have some similar
7. One should try to schedule a meeting at a convenient time and place. T
8. Counseling is known by many names like 'therapy' or 'helping.
9. To ensure zero or close to zero performance lag, you must
Promote self-discipline
Coach for improved performance
Hold a conversation
Tackle annoying employee habits and issues
Issue disciplinary warning
Provide the concerned employee with a performance improvement plan
Manage a deadbeat employee
Communicate disciplinary action
10. A job description is a list of the general tasks, or functions, and
responsibilities of a position.
11. What enables your organization to identify talented employees and provide
education to develop them for future higher level? (choose the right option)
a) Employee turnover
b) Promotions
c) Succession planning
d) Bonus plans
12. While terminating an employee, you should remember take off his dignity to
set an example for the others. F
13. The 80-20 principle: Twenty percent of the salespeople make eighty percent
of the sales and profits.
14. There are primarily two ways to offer team based incentives, viz.
1. Team based
2. Gain sharing
15. The methods of team based incentive allocation are:
Equal incentive payments
Differential payments based on contribution to goals
Differential payment according to base pay
15. Fair Labor Standards Act (FLSA).
16. Compensation systems should be both externally competitive and internally


17. There are primarily two ways to offer team based incentives, viz. team
based and gain sharing. T
18. The workers should be given _________ the normal salary for the time they work
(a) Same as
(b) Double
(c) treble
(d) four times
19. In a good team building system, the team leader has good people skills and is
committed to individualistic approach. F
20. Team members should know how to examine team and individual errors without
personal attacks.

Unit: 7
1. HR Planning is the process by which management ensures that it has the
right personnel, who are capable of completing those tasks that help the
organization to accomplish its goals.
2. HR Audit verifies all areas of HR except training. F
3. HR Audit involves verification of HR Planning.
4. Audit of Training suggests future improvements based on past activities
measurement. T
5. raining increases productivity of the employees but at the same time
decreases their efficiency. F
6. HR audit includes audit of managerial compliance of the following except
Personnel Policies,Operational Departments , Procedures ,Legal Provisions
7. Audit of Managerial Compliance must be performed once in life time of the
8. Audit of HR Climate
Employee Turnover
Safety Records
Attitude Surveys
9. Organizations should keep records of accidents in the workplace so as to avoid the
same in future.
10. Unauthorized Absence costs money and reflect dissatisfaction with
organisation. T
11. In order to overcome the competition, revision of corporate strategies should
be frequently pursued.
12. Corporate strategies gains competitive advantage through appropriate HR
policies. T



2. Description of the staff of the company : The complete staff can be described by:
hierarchic levels
years of service
the number of permanent and temporary employees, interns and physically or
mentally challenged employees indexes of personnel rotation and absenteeism
3. Job analysis :The various indicators of Job analysis are as follows:
The number of described posts
Occupants per post
Degree to which the job description cards have been updated
The degree of detail in the job description cards
The methods used to analyze and describe the jobs.
4. The training indicators are as follows:
the procedures followed
frequency to which personnel training needs are analyzed
the criteria followed in the training programs
the evaluation criteria of the efficiency of the training programs
the percentage of the HR budget dedicated to training
the average number of hours of training per employee
The percentage of employees that participate in training programmes by work place
5. Development of professional careers
the percentage of people promoted per number of employees;
the percentage of vacancies covered internally and externally and the average time
per employee it takes to receive a promotion.
6. While conducting HR audit, it is mandatory to audit all the functions. f

7. Which of the following is not a training indicator?

(a) the percentage of people promoted per number of employees;


(b) the procedures followed

(c) frequency to which personnel training needs are analyzed
(d) the criteria followed in the training programs
8. Paid Time-Off [PTO] : A paid time off policy combines vacation, sick time and personal
time into a single bank of days for employee paid time off.
9. Planning questions in audit process should be avoided as it is wastage of time. F
10. performance and contribution of HR should be audited regularly.
11. An outside agency can also conduct HR audit. T
12. One should use the elements of HR information system to find out whether the HR
activities comply with the law and organizational policies.
13. Post Audit Steps
Process-Final Meeting
Report Distribution
Implementing Changes
14. Which of the following is not among the options available to organizations for dealing
with audit results? Distribute the report to the people concerned
15. The audit is a prescriptive instrument. F

unit: 9
1. The purpose of the audit is to reveal the strengths and weaknesses in the non-profit human
resources system, and any issues needing resolution.

1. The HR scorecard framework was specifically designed for following reasons:

It reinforces the distinction between HR doables and deliverables
It helps in controlling cost control and value creation
It measures leading indicators
It assesses HRs contribution to strategy implementation
It lets HR managers to manage their strategic responsibilities
It encourages flexibility and change
2. HR scorecard should be periodically re-evaluated. F
3. The basic nature of the scorecard helps fight against measurement systems getting to
4. Which of the following is not a reason behind the designing of the HR
scorecard framework?
(a) It helps in controlling cost control and value creation
(b) It encourages flexibility and change
(c) It measures all the indicators




6. Many leading organizations use their performance management systems as a key tool for
7. Performance management systems are key tools for aligning business goals. T
8. This system measures indicators divided into four categories which are as follows:
Internal processes
learning and growth
9. There is set format of HR scorecard irrespective of type of business. F
10. Which of the following is not a category measured by HR scorecard system?
(a) Strategic
(b) Customer
11. financial indicators, emphasize more on the KPI.
12. The balanced scorecard is a strategic planning and management system that is used widely
in various organizations including government, and non-profit organizations worldwide for
following main objectives:
To align business activities to the vision and strategy of the organization
To improve internal and external communications
To monitor organization performance against strategic goals.

13. Kaplan and Norton describe the innovation of the balanced scorecard as follows:
"The balanced scorecard retains traditional financial measures. But financial measures tell the story
of past events, an adequate story for industrial age companies for which investments in long-
term capabilities and customer relationships were not critical for success. These financial
measures are inadequate, however, for guiding and evaluating the journey that information age


companies must make to create future value through investment in customers, suppliers,
employees, processes, technology, and innovation."
14. When effectively implemented, the balanced scorecard transforms strategic planning from an
academic exercise into the nerve center of an organization. T
15. Which of the following is not true with respect to the description given by Kaplan and Norton
about the innovation of the balanced scorecard?
a) The balanced scorecard retains traditional financial measures.
b) Financial measures tell the story of current events,
16. HR Scorecard: It is a tool for measuring the contribution of human resource management practices
to the financial performance of an organization.
17. Balanced Scorecard: It is strategic planning and management system used to align business
activities to the vision statement of an organization.
18. KPI: stands for Key Performance Indicators. They are quantifiable

1. Competency Management can be understood as a strategy and approach to work structurally on
the development of employee competencies in order to increase the performance of an
2. Competency Management can help you direct the changes in line with the organizations vision,
mission as well as strategic objectives - whether the organization wants to exclusively enhance
its performance, or completely transform its way of doing business.
3. Competency Management may also contribute to the improvement of the organizations
overall performance, and can build an environment where the employees are motivated.
4. Competency framework is a method of describing the underpinning values that shape and
define the culture of an organisation.
5. There are two generic frameworks that an organisation can use and the auditor can check:
Management Competency Framework
Generic Competency Framework
6. Competency management assists in providing management with impartial information. T
7. Which of the following is not true with respect to the HR audit framework?
a) Informs prospective employees about what is expected of them
b) Informs staff of the attitudes and behaviours encouraged by the organisation.
c) Informs staff of what they can expect from their managers
d) Supports staff at some specific levels in their development
8. generic competency framework applies if an employees job does not include supervisory or
management responsibilities.
9. There are three ways in which competencies models may be developed:
1. Behavioral Indicators: Behavioral indicators describe the behaviors, thought patterns,
abilities and traits that contribute to superior performance.
2. Evaluative Competency Levels: Exceptional competencies of high performers are set as
standards for evaluating competency levels of employees.
3. Competencies Describing Job Requirements: This approach is useful for organizations having
multiple competency models
10. The approach for developing a competency framework for a particular role is as proposed
Understand strategic business context
Detail role description for position
Develop competency framework
Validate the competency framework
11. The assessment centre is a powerful tool in the hands of the management for selection and
development. As a selection tool it can be used for management promotions, fast tracks


schemes, high potential list and change of functional role.

12. Designing and conducting a potential assessment centre should follow basic principles in term of
accuracy, fairness, reliability, legality, efficiency, multiple assessors, multiple tests and
optimal stress to increase performance. It would involve two types of exercises, i.e., group
exercises and individual exercises.
13. Group Exercises :
Assigned Role Exercises
Unassigned Role Exercises
Team Exercises
For potential assessment, the following individual exercises are conducted
In-Basket Exercises: Used to assess ability to plan, organize, decide, manage and
Learning skill Inventory/Psychometric Inventories: Used to assess ability to learn,
leverage knowledge and indicate behavioral patterns; and
Interpersonal Effectiveness Module
14. The competencies gaps can be found out by comparing the desired competency (proficiency)
levels and displayed competency levels
15. Behavioral indicators describe the behaviors, thought patterns, abilities and traits that
contribute to superior performance.
16. In-basket exercises are used to develop ability to plan, organize, decide, manage and delegate. F
17. Competency mapping forms an excellent tool for optimizing the human capital
18. Competency mapping involves identifying the competencies that will be needed by people
working in an organization.
19. competency mapping:



1. Which of the following is not an element of counseling ability?

(a) Understanding skill
(b) Empathy
(c) Body language
(d) Information searching
2. Success is possible in business only if proper understanding and analysis of the happenings of
the business environment is made. (fill in te blanks)
3. To be successful in professional world, one has to possess the ability to foresee future changes and
competitions. T
4. the competencies are a broader term referring to an individuals demonstrated knowledge, skills,
behaviors, experience, life view and values and constitute observable, behavioral acts that
require a combination of all these attributes to execute.


1. There are four elements in the performance management process against which managers
are assessed. These are:
Strategic Contribution: What managers need to do in terms of the achievement of
Role Performance: What managers need to do in terms of maintaining and continually
improving their core role;
Common Responsibilities and Behaviors: A measure of behavior in accordance with
company values; and
Competency Assessment: What managers need to do in terms of developing their
underlying skills and knowledge.
2. Various human resource systems in an organization can be integrated with competencies as the
focal point.
3. Competencies are demonstrated in a job success. F
4. Succession Planning: A process for identifying and developing internal personnel with the
potential to fill key or critical organizational positions

1. Human Resources Audit Checklist can be a useful tool for HR audit. T
2. Which of the following is not included in the areas of HRD Audit evaluation?
(a) recruiting new employees
(b) safeguarding confidential information of the employees
(c) providing increased leaves to the employees
3. List of various Central Labour Acts
1. Laws related to Industrial Relations
A. The Trade Unions Act, 1926
The Trade Unions (Amendments) Act, 2001
B. The Industrial Employment (Standing Orders) Act, 1946
The Industrial Employment (Standing Orders) Rules, 1946
C. The Industrial Disputes Act, 1947
2. Laws related to Wages
A. The Payment of Wages Act, 1936
The Payment of Wages Rules, 1937
The Payment of Wages (Amendment) Act, 2005
B. The Minimum Wages Act, 1948
The Minimum Wages (Central) Rules, 1950
C. The Working Journalist (Fixation of Rates of Wages) Act, 1958
Working Journalist (Conditions of Service) and Miscellaneous
Provisions Rules, 1957
D. The Payment of Bonus Act, 1965
The Payment of Bonus Rules, 1975
3. Laws related to Working Hours, Conditions of Services and
A. The Factories Act, 1948
B. The Dock Workers (Regulation of Employment) Act, 1948
C. The Plantation Labour Act, 1951
D. The Mines Act, 1952
E. The Working Journalists and other Newspaper Employees
(Conditions of Service and Misc. Provisions) Act, 1955
The Working Journalists and other Newspaper Employees
(Conditions of Service and Misc. Provisions) Rules, 1957
F. The Merchant Shipping Act, 1958


G. The Motor Transport Workers Act, 1961

H. The Beedi & Cigar Workers (Conditions of Employment) Act, 1966
I. The Contract Labour (Regulation & Abolition) Act, 1970
The Contract Labour Regulation Rules
J. The Sales Promotion Employees (Conditions of Service) Act, 1976
The Sales Promotion Employees (Conditions of Service) Rules,
K. The Inter-State Migrant Workmen (Regulation of Employment and
Conditions of Service) Act, 1979
L. The Shops and Establishments Act
M. The Cinema Workers and Cinema Theatre Workers (Regulation of
Employment) Act, 1981
The Cinema Workers and Cinema Theatre Workers (Regulation of
Employment) Rules, 1984
The Cine Workers Welfare Fund Act, 1981.
N. The Dock Workers (Safety, Health & Welfare) Act, 1986
O. The Building & Other Construction Workers (Regulation of
Employment & Conditions of Service) Act, 1996
P. The Dock Workers (Regulation of Employment) (inapplicability to
Major Ports) Act, 1997
4. Laws related to Equality and Empowerment of Women
A. The Maternity Benefit Act, 1961
B. The Equal Remuneration Act, 1976
5. Laws related to Deprived and Disadvantaged Sections of the
A. The Bonded Labour System (Abolition) Act, 1976
B. The Child Labour (Prohibition & Regulation) Act, 1986
C. The Children (Pledging of Labour) Act, 1933
6. Laws related to Social Security
A. The Workmens Compensation Act, 1923
The Workmen's Compensation (Amendments) Act, 2000
B. The Employees State Insurance Act, 1948
C. The Employees Provident Fund & Miscellaneous Provisions Act,
The Employees Provident Fund & Miscellaneous Provisions
(Amendment) Act, 1996
D. The Payment of Gratuity Act, 1972
The Payment of Gratuity Rules
E. The Unorganised Wokers' Social Security Act, 2008
The Unorganised Workers' Social Security Rules, 2008
7. Laws related to Labour Welfare
A. The Mica Mines Labour Welfare Fund Act, 1946
B. The Limestone & Dolomite Mines Labour Welfare Fund Act, 1972
C. The Beedi Workers Welfare Fund Act, 1976
D. The Beedi Workers Welfare Cess Act, 1976
The Beedi Workers Welfare Cess Rules, 1977
E. The Iron Ore Mines, Manganese Ore Mines & Chrome Ore Mines
Labour Welfare Fund Act, 1976
F. The Iron Ore Mines, Manganese Ore Mines & Chrome Ore Mines
Labour Welfare Cess Act, 1976
G. The Cine Workers Welfare Fund Act, 1981


H. The Cine Workers Welfare Cess Act, 1981

I. The Employment of Manual Scavengers and Construction of Dry
Latrines Prohibition Act, 1993
8. Laws related to Employment & Training
A. The Employment Exchanges (Compulsory Notification of Vacancies)
Act, 1959
The Employment Exchanges (Compulsory Notification of Vacancies)
Rules, 1959
B. The Apprentices Act, 1961
9. Others
A. The Fatal Accidents Act, 1855
B. The War Injuries Ordinance Act, 1943
C. The Weekly Holiday Act, 1942
D. The National and Festival Holidays Act
E. The War Injuries (Compensation Insurance) Act, 1943
F. The Personal Injuries (Emergency) Provisions Act, 1962
G. The Personal Injuries (Compensation Insurance) Act, 1963
H. The Coal Mines (Conservation and Development) Act, 1974
I. The Emigration Act, 1983
The Emigration Rules, 1983
J. The Labour Laws (Exemption from Furnishing Returns and
Maintaining Register by Certain Establishments) Act, 1988
K. The Public Liability Insurance Act, 1991
4. Employment application may or may not be legally compliant. F
5. The EMPLOYEE HABDBOOK is an effective tool for communicating company culture and
expectations from the employees towards the company.
6. Annual salary should be mentioned on the offer letter so as to avoid future legal problems. F
7. Permanent should NEVER be used to describe an employees status.
8. Which of the following is not true as regards the new employee orientation process? (choose
the right option)
(a) New employee orientation process should be personal.
(b) Daily schedule should involve more of paperwork
1. Companies policies are told to employees in the orientation process. T
2. An audit can review companys job descriptions for compliance. T
3. Government of India does not provide any laws regarding safe work environment. F
4. Employee handbook: It is manual for the employees containing companys policy , culture and
expectations from the employee.
5. Affiliation: Being adopted or accepted as a member of a recognized society or association.
6. Benchmarking: The process of comparing one's business processes and performance metrics
to industry bests and/or best practices from other industries.
7. Collective Bargaining: A process between employers and employees to reach an agreement
regarding the rights and duties of people at work.



UNIT: 12
1. In Pareek and Raos model of HRD department the objective of this department is
to facilitate the environment of learning and change in the organizations so as to
achieve organizational goal.
2. The nature of interventions undertaken by the HRD departments includes:
Cultural change through new performance management systems
TQM based interventions (in most cases these are undertaken also by a separate
group of Professionals)
Survey feedback
Role clarity and role negotiation exercises
Career planning and succession exercise
Assessment centers and promotion policies
Visioning and value clarification exercises
Performance coaching workshops
Team building interventions
3. Jomon (1997) conducted a research study to identify the factors influencing the use of
audit as a change tool. He studied four organizations that have got them audited. They
were studied about three years after the first audit. He tried to assess the influence of the
following variables in the effective use of HRD Audit:
Management styles


Organizational characteristics
Profile of the HRD Department
Competency levels of HRD Department
CEO commitment
HRD Chief's commitment
4. Jomon's study indicated the following in each of the four companies

5. Managerial Profile: Majority of managers is professionally qualified, average age between

30-40, and more than eight years of work experience.
6. Support Staff Profile: Majority of the support staff is secretarial certificate holders,
average age between 35-45, and above 10 years of work experience.
7. Worker Profile: Majority are skilled, with above 10 years of work
experience, and average age between 35-45 years.
8. India is the first country to formally establish a totally dedicated Human Resources development
Department separated from the personnel department.
9. There is a direct relationship between the CEOs commitment towards HRD and the
effectiveness of the HRD function.
10. The organizations with a highly competent HRD Staff derive less benefit from the audit process
as compared to the others. F
11.Which of the following organisational characteristics will definitely have a relation to the
utilization of the audit inputs? (choose the right option)
a) Market Positioning
b) Tendency of groupism among employees
c) Linkage with Industries
d) Productivity of the employees
12. HR Audit betters recruitment policies and more professional staff.
13. The HRD audit also examines the LINKAGES between HRD and other systems.
14. Which of the following is not a business goal?
a. Internal operational efficiencies;
b. Government authorities satisfaction
c. Internal customer satisfaction;
d. External customer satisfaction;
15. The interaction of HR practices results in explaining higher variation in the measures of
objective organizational performance. T
16. Intervention: It refers to set of sequenced and planned actions or events intended to
increase its effectiveness.
17. Exploratory Study: A study is undertaken when not much is known about the situation at hand
or no information is available on how similar problem or research issues have been solved in the
18. Attitude Survey: Survey to discover the attitude of the people being surveyed to find out
reactions and behavioural aspects towards a specific situational aspect.

1. The main rationale behind the human resource valuation can be understood by going
through the following discussion.
Guarantee to Customers/Clients
Establishing Investor Confidence
Planning Outgo
Monitoring Performance


Employee Motivation
Costing Exercise
Assessing Segment Efficiency
2. The human resource valuation system cannot be considered to be a complete system
of accounting unless it is followed by an equally competent system of auditing.
3. Audit of human resources could help in finding out the efficiency of every segment.

4. The application and usefulness of human resource valuation depends

on the future efforts and experiments to be made by practising managers, accountants
and academicians. T
5. In the absence of human resource valuation, the management may not realize the negative
effects of certain programmes aimed at improving profits in the short run. (Fill appropriate
word in the blank)
6. Which of the following does not suggest a rationale behind human resource
(a) helps in assessing segment efficiency
(b) helps in monitoring performance of human resource
(c) helps in planning income
(d) establishes investor confidence.
7. According to Lev and Schwarts, the value of human capital represented by a person of age is
the present value of his remaining future earnings from his employment. The value of human
capital embodied in a person who is y years old, is the present value of his/her future
earnings from employment and can be calculated by using the following formula:

8. Rewards evaluation model suggests a five steps approach for assessing the value of an
individual to the organisation. These steps are discussed as under:
Step 1: Forecasting the period will remain in the organisation, i.e., his expected
service life;
Step 2: Identifying the services states, i.e., the roles that the might occupy including, of
course, the time at which he will leave organisation;
Step 3: Estimating the value derived by the organisation when a person occupies a
particular position for a specified time period;
Step 4: Estimation of the probability of occupying each possible mutually
exclusive state at specified future times; and
Step 5: Discounting the value at a predetermined rate to get the present value of
human resources.
9. Morse (1973) suggested this approach. Under it the value of human resources is
equivalent to the present value of the net benefits derived by the enterprise from the
service of its employees. The following steps are involved under this approach:
1. The gross value of the services to be rendered in future by the
employees in their individual and collective capacity.
2. The value of direct and indirect future payments to the employees is
3. The excess of the value of future human resources over the value of
future payments is ascertained. This represents the net benefit to the


enterprise because of human resources

4. By applying a predetermined discount rate (usually the cost of capital) to
the net benefit, the present value is determined. This amount represents
the value of human resources to the enterprises.

10. Pekin Ogan model (Certainty equivalent net benefit model)

Pekin Ogan Model has been suggested by Pekin Ogan (1976) is, in fact, an
extension of net benefit approach of Morse. This approach presents a newconcept of
determination of certainty equivalent net benefits stream for each employee in an organisation.
Under this approach, the value of human resources is determined by taking
into consideration the certainty with which the net benefits in future will
accrue to the enterprise. The method involves the following steps:
(a) each employees net benefit (as determined under the previous approach) which are a
function of the employees expected benefits and total costs.
(b) a certainty factor which is comprised of the employees probability of continued employment
and probability of survival.
(c) The certainty equivalent benefits will be calculated by multiplying the certainty factor with
the net benefits from all employees. This will be the value of human resources of the enterprise.
11. Under it the value of human resources is equivalent to the present value of the net benefits
derived by the enterprise from the service of its employees.
12. Under reward evaluation model, step 3 is to estimate the value derived by the organisation
when a person occupies a particular position for a specified time period.
13. Rewards evaluation is a three step model. F
14. Ogans model is an improvement over the other models of HR valuation.
14. Under which model, the value of human resources is determined by taking into
consideration the certainty with which the net benefits in future will accrue to the enterprise?
Pekin Ogan Model

15. Under the present value of future earning model, the training expenses incurred by the
company on its employees are not considered.
16. Human capitals valuation techniques used in most organisations dates back to the
industrial era. T
17. Only those employee competencies that are relevant to the HR issues should be valued. F
18. Careful usage of skill-centric automation technology is a proven method to increase retention
by better reorganisation. T
19. Retirement Benefit: A monthly payment made to someone who is retired from work.

1. An HR audit is like an annual health check. It plays a vital role in instilling a sense of confidence
in the management and the HR functions of an organisation. E J Sarma
2. In India, the prevalence of HR Audit has been quite popular since 1970s. It first promulgated by
BHEL (Bharat Heavy Electrical Ltd), a leading public enterprise, during the financial year
1972-73. Later it was also adopted by other leading public and private sector
organisations in the subsequent years. Some of them are Hindustan Machine Tools Ltd.
(HMTL). Oil and Natural Gas Corporation Ltd.(ONGC), NTPC, Cochin Refineries Ltd. (CRL),


Madras Refineries Ltd.,(MRL), Associated Cement Company Ltd.(ACC) and Infosys

Technologies Ltd.(ITL).
3. In India, HR audit was first promulgated by BHEL.
4. In all of the organisations, great support was given to all HRD activities by the employees. F

5. Which of the following would an auditor never suggest as regards the employee training?
(choose the right option)
a) Develop a training policy in accordance with the business plans of the company, but
do not tell it to every employee in the organisation.
b) All employees should work closely with the line managers to determine training needs.
c) Impact of training should be evaluated.
d) Make it mandatory for every person attending training to give a presentation and
submit an action plan on how inputs from training can be implemented.
6. Senior executives should be oriented towards the significance of the HRD function
7. An abstract of the personnel policies should be given to all employees at the time of
8. Which of the following is not a part of an HR audit? (Choose the right answer from the
options given below)
(a) Finding the strengths and weaknesses of HRD staff
(b) Auditing potential appraisal and promotions
(c) Administer HRD audit questionnaire
(d) Pacify trade unions
9. A job rotation policy should be tune with the departmental goals. F
10. Core Competency: A core competency is a specific factor that a business sees as being central
to the way it, or its employees, works.
11. Intermittent: Stopping and starting at intervals.

1. an assessment requires a 360 degree feedback, and, according to Ulrich, usually employs
the following five steps:
Developing a model of competencies: Before embarking on an assessment of competence,
it is necessary to first determine what arethe competencies that make a successful HR
Collect data using the model
Summarized data and give feedback to the HR professionals
Create action plans
Continuous improvement
2. Always all the functions of HR are covered in the audit irrespective of purpose of audit. F
3. Auditing HR function and the HR department may be an integration of individual HR
4. Competence for HR function is demonstrated by an extensive audit of all its ASPECTS.
5. Which of the following is not a human resource cost? (choose the right option)
a) hardware maintenance cost
b) labour cost
c) overtime
d) training cost
6. It is not necessary for the workforce to fit in the companys business objectives. F


8. Section 1: Business and human resources strategy

9. Section 2: Human resources policies
10.Section 3: Manpower planning
11. Section 4: Recruitment and selection
12. Section 5: Employee Retention
13. Section 6: Training and Development
14. Section 7: Performance management
15. Section 8: Compensation and reward
16. Section 9: Career development and succession planning
17. Section 10: Industrial relation
18. Section 11: Human Resources Information System
19. Section 12: Retirement
20. Section 13: Employee communication
21. Section 14: Human resources cost