National Institute of Business Management

Chennai - 020

FIRST SEMESTER EMBA/ MBA

Subject : Human Resources Management

Attend any 4 questions. Each question carries 25 marks

(Each answer should be of minimum 2 pages / of 300 words)

1. Explain the three main categories of IHuman Resource Management Functions .

2. What are the Behavioural sciences input/ contribution to WPM?
3. Explain the salient features of Quality circle,
4. The demands of workplace functioning have prompted Organisations to
experiment with other forms of participation.Explain.
5. What are the benefits and drawbacks of MBO programs? Explain.
6. Explain the Characteristics of a good Training Programme

25 x 4=100 marks
1.Explain the three main categories of Human Resource
Management Functions .
Human Resource Management:

Human Resource Management is a management function concerned with hiring,

motivating, and maintaining workforce in an organization. Human resource management deals
with issues related to employees such as hiring, training, development, compensation,
motivation, communication, and administration. Human resource management ensures
satisfaction of employees and maximum contribution of employees to the achievement of
organizational objectives.

Some of the major functions of human resource management are as follows:

1. Managerial Functions

2. Operative Functions

3. Advisory Functions.

Human Resource or Personnel Department is established in most of the organisations, under the

charge of an executive known as Human Resource/Personnel Manager. This department plays an

important role in the efficient management of human resources.

The personnel department gives assistance and provides service to all other departments on
personnel matters. Though personnel or human resource manager is a staff officer in relation to

other departments of the enterprise, he has a line authority to get orders executed within his

department.

1. Managerial Functions:
The Human Resource Manager is a part of the organizational management. So he must perform

the basic managerial functions of planning, organizing, directing and controlling in relation to his

department.
There functions are briefly discussed below:

1. Planning:

To get things done through the subordinates, a manager must plan ahead. Planning is necessary

to determine the goals of the organisation and lay down policies and procedures to reach the

goals. For a human resource manager, planning means the determination of personnel programs

that will contribute to the goals of the enterprise, i.e., anticipating vacancies, planning job

requirements, job descriptions and determination of the sources of recruitment.

The process of personnel planning involves three essential steps.

Firstly, a supply and demand forecast for each job category is made. This step requires

knowledge to both labour market conditions and the strategic posture and goals of the

organisation.

Secondly, net shortage and excess of personnel by job category are projected for a specific time

horizon.

Finally, plans are developed to eliminate the forecast shortages and excess of particular

categories of human resources.

2. Organizing:

Once the human resource manager has established objectives and developed plans and programs

to reach them, he must design and develop organisation structure to carry out the various

operations.

The organisation structure basically includes the following:

ADVERTISEMENTS:

(i) Grouping of personnel activity logically into functions or positions;

(ii) Assignment of different functions to different individuals;

(iii) Delegation of authority according to the tasks assigned and responsibilities involved;

(iv) Co-ordination of activities of different individuals.

3. Directing:

The plans are to be pure into effect by people. But how smoothly the plans are implemented

depends on the motivation of people. The direction function of the personnel manager involves

encouraging people to work willingly and effectively for the goals of the enterprise.

In other words, the direction function is meant to guide and motivate the people to accomplish

the personnel programs. The personnel manager can motivate the employees in an organisation

through career planning, salary administration, ensuring employee morale, developing cordial

relationships and provision of safety requirements and welfare of employees.

The motivational function poses a great challenge for any manager. The personnel manager must

have the ability to identify the needs of employees and the means and methods of satisfy those

needs. Motivation is a continuous process as new needs and expectations emerge among

employees when old ones are satisfied.

4. Controlling:

Controlling is concerned with the regulation of activities in accordance with the plans, which in

turn have been formulated on the basis of the objectives of the organization. Thus, controlling

completes the cycle and leads back to planning. It involves the observation and comparison of

results with the standards and correction of deviations that may occur.

Controlling helps the personnel manager to evaluate the control the performance of the personnel

department in terms of various operative functions. It involves performance appraisal, critical

examination of personnel records and statistics and personnel audit.

2. Operative Functions:
The operative functions are those tasks or duties which are specifically entrusted to the human

resource or personnel department. These are concerned with employment, development,

compensation, integration and maintenance of personnel of the organisation.

The operative functions of human resource or personnel department are discussed below:
1. Employment:

The first operative function of the human resource of personnel department is the employment of

proper kind and number of persons necessary to achieve the objectives of the organisation. This

involves recruitment, selection, placement, etc. of the personnel.

Before these processes are performed, it is better to determine the manpower requirements both

in terms of number and quality of the personnel. Recruitment and selection cover the sources of

supply of labour and the devices designed to select the right type of people for various jobs.

Induction and placement of personnel for their better performance also come under the

employment or procurement function.

2. Development:

Training and development of personnel is a follow up of the employment function. It is a duty of

management to train each employee property to develop technical skills for the job for which he

has been employed and also to develop him for the higher jobs in the organisation. Proper

development of personnel is necessary to increase their skills in doing their jobs and in satisfying

their growth need.

For this purpose, the personnel departments will device appropriate training programs. There are

several on- the-job and off-the-job methods available for training purposes. A good training

program should include a mixture of both types of methods. It is important to point out that

personnel department arranges for training not only of new employees but also of old employees

to update their knowledge in the use of latest techniques.

3. Compensation:

This function is concerned with the determination of adequate and equitable remuneration of the

employees in the organization of their contribution to the organizational goals. The personnel can

be compensated both in terms of monetary as well as non-monetary rewards.

Factors which must be borne in mind while fixing the remuneration of personnel are their basic

needs, requirements of jobs, legal provisions regarding minimum wages, capacity of the

organisation to pay, wage level afforded by competitors etc. For fixing the wage levels, the

personnel department can make use of certain techniques like job evaluation and performance

appraisal.

4. Maintenance (Working Conditions and Welfare):

Merely appointment and training of people is not sufficient; they must be provided with good

working, conditions so that they may like their work and workplace and maintain their

efficiency. Working conditions certainly influence the motivation and morale of the employees.

These include measures taken for health, safety, and comfort of the workforce. The personnel

department also provides for various welfare services which relate to the physical and social

well-being of the employees. These may include provision of cafeteria, rest rooms, counseling,

group insurance, education for children of employees, recreational facilities, etc.

5. Motivation:

Employees work in the organization for the satisfaction of their needs. In many of the cases, it is

found that they do not contribute towards the organizational goals as much as they can. This

happens because employees are not adequately motivated. The human resource manager helps

the various departmental managers to design a system of financial and non-financial rewards to

motivate the employees.

6. Personnel Records:

The human resource or personnel department maintains the records of the employees working in

the enterprise. It keeps full records of their training, achievements, transfer, promotion, etc. It

also preserves many other records relating to the behaviour of personnel like absenteeism and

labour turnover and the personnel programs and policies of the organisation.

7. Industrial Relations:

These days, the responsibility of maintaining good industrial relations is mainly discharged by

the human resource manager. The human resource manager can help in collective bargaining,

joint consultation and settlement of disputes, if the need arises. This is because of the fact that he

is in possession of full information relating to personnel and has the working knowledge of

various labour enactments.

The human resource manager can do a great deal in maintaining industrial peace in the

organization as he is deeply associated with various committees on discipline, labour welfare,

safety, grievance, etc. He helps in laying down the grievance procedure to redress the grievances

of the employees. He also gives authentic information to the trade union leaders and conveys

their views on various labour problems to the top management.

8. Separation:

Since the first function of human resource management is to procure the employees, it is logical

that the last should be the separation and return of that person to society. Most people do not die

on the job. The organisation is responsible for meeting certain requirements of due process in

separation, as well as assuring that the returned person is in as good shape as possible. The

personnel manager has to ensure the release of retirement benefits to the retiring personnel in

time.
3. Advisory Functions:
Human resource manager has specialized education and training in managing human resources.

He is an expert in his area and so can give advice on matters relating to human resources of the

organization.

He offers his advice to:

1. Advised to Top Management:

Personnel manager advises the top management in formulation and evaluation of personnel

programs, policies and procedures. He also gives advice for achieving and maintaining good

human relations and high employee morale.

2. Advised to Departmental Heads:

Personnel manager offers advice to the heads of various departments on matters such as

manpower planning, job analysis and design, recruitment and selection, placement, training,

performance appraisal.
3. Explain the salient features of Quality circle
a group of employees who meet regularly to consider ways of resolving problems and improving
production in their organization.

a. A people-building Philosophy:
It inculcates group or team work. Companies with selfish interest and vertical ambitions cannot
benefit from quality circles. In quality circles people get to know each other and there is a feeling
of 'togetherness' to combat growing competition, inflationary and other problems of the
company.

b. Voluntary in Nature:
Management usually fined this difficult to grasp and digest, and are unable to deal with it. The
voluntary nature in itself is sufficient proof that is mainly for the benefit of members whether to
take advantage of it or not.

c. Everyone Participates:
Quality circle is a participative programme. The leader has to bring forward the more dormant
member and make him participate locally as well as physically. This promotes job involvement
and motivation and develops pride in good wor4kmanship. It becomes the duty of each member
to look out for the development and growth of others.

d. Creativity is encouraged:
A -non-threatening environment is created for individual ideas. Normally, a person says from
putting forward an idea if he fears chance of being ridiculed or rejected. Quality Circle infuses
among its member's confidence, a problem preventing and problem solving attitude.

e. Projects are Circle Efforts:

The circle, as a whole team, receives recognition for any achievement, it has accomplishes. No
individual, whether the management or the shop-floor workers, can individually claim any
success of a project.

f. Training is a Must for Members:

It is imperative to impart some sort of training to members. It may be formal or informal.
Members need to know the effective techniques in finding solutions or they may become
frustrated and disillusioned at their ineptitude.

Management, likewise, have to undertake training for their supportive role rather than one
domination. Through eight to ten hours training, members become familiar with problem solving
techniques such as pare to diagrams, Cause and Effect analysis, Check sheets, etc.
g. Projects are Work-related:
Individuals or other departmental problems are not dealt with. Problems have to be related to
member's own department of work area, though advice may be sought from other quality circles.
It is based on the assumption that members are experts in their own field at what they do, but not
at what other people do.

h. To Obtain Management Support:

Quality circles cannot flourish unless there is encouragement from the management in the form
of advice and commitment. In fact, experience has shown that the initiative for formation of
quality circles primarily came from the management rather than shop-floor workers. This further
brings flexibility in otherwise water-tight departments.

i. Development of Quality Consciousness:

Quality circle inculcates cost consciousness and infuses safety awareness. In Japan it is referred
to as 'value analysis' More than 20% of circle activities there, are involved in correcting quality
errors. This becomes a continuous process. Consumer's satisfaction not quality services are best
reflected in the increased demand for Japanese products.

j. Mental Awareness Regarding 'We' and 'they':

Quality circle encourages leadership quality and personal development within a group. It
facilitates effective use of channels of communication thereby assuring improved interpersonal
relations and bonds of brotherhood. It urges people to receive ideas with an open mind and to
participate positively.

k. Absenteeism and Grievances are reduced:

Members have realised that quality circle programmes have helped them to enjoy work, a feeling
of belongingness which has made them attend offices enthusiastically rather than abstaining for
minor reasons. Grievances, too automatically get reduced since most of the work area problems
are solved by the members themselves.

l. Optimum Utilisation of Human Resources:

Better organisation, specialization, maximum out-put-all can be obtained from one important
resource - that of human resource. Each worker contributes his best, towards reducing costs,
wastes and anomalies.

m. Work-Ethic, Discipline and Trust:

These lead to success of quality circles. Trust is a corner-stone of organisations in Japan where it
is considered fundamental to success. Self-discipline, Ethics and intangible, unquantifiable trust
among all result in incalculable benefits for the organisations.
5. What are the benefits and drawbacks of MBO programs?
Explain.

Management by Objectives (MBO):

MBO helps in implementing goal oriented management. It can be applied in various areas of

organisation such as performance appraisal, organisational development, long range planning,

integration of individual and organisational objectives and so on.

Benefits of MBO:

Benefits of MBO can be stated as follows:

1. Better Managing:

MBO results in improved and better managing. Better managing requires setting goals for each

and every activity and individual and ensuring that these are achieved. MBO not only helps in

setting objectives but also ensures balancing of objectives and resources. For establishing

objectives there is a need for better and result oriented planning. Management by objectives

forces managers to think about planning for results, rather than merely planning activities or

work. Managers will devise ways and means for achieving objectives. The objectives also act as

controls and performance standards. So MBO is helpful in improving management.

2. Clarifying Organisation:

MBO helps in clarifying organisational roles and structures. Responsibility and authority are

assigned as per the requirements of the tasks assigned. There is no use of fixing objectives

without delegating requisite authority. The positions should be built around the key results

expected of people occupying them. Implementation of MBO will help in spotting the

deficiencies in the organisation.

3. Encouraging Personal Commitment:
The main benefit of MBO is that it encourages personnel to commit themselves for the
achievement of specified objectives. In a normal course people are just doing the work assigned
to them. They follow the instructions given by the superiors and undertake their work as a
routine matter. In MBO the purpose of every person is clearly defined with his or her own
consent. People in the organisation have an opportunity to put their own ideas before superiors,
discuss the pros and cons of various suggestions and participate in setting the final objectives.
When a person is a party for setting objectives then he will make honest endeavor to achieve
them. He will feel committed to reach the goals decided with his consent. A feeling of
commitment brings enthusiasm and helps in reaching the goals.

4. Developing Controls:

MBO mechanism helps in devising effective controls. The need for setting controls is the setting

of standards and then finding out deviations if any. In MBO, verifiable goals are set and the

actual performance will help in finding out the deficiencies in results. Every person is clear about

what is expected from him and these standards act as clear cut controls. So controls can easily be

devised when MBO is followed.

Weaknesses of Management by Objectives:

Despite of its acceptability in recent times, MBO technique has not yet acquired a final shape.

This system suffers from a number of weaknesses which are discussed as under:

1. Failure to Teach MBO Philosophy:

The success of MBO will depend upon its proper understanding by managers. When managers

are clear about this concept only then they can explain to subordinates how it works, why it is

being done, what will be the expected results, how it will benefit participants, etc. This

philosophy is based on self direction and self control and aims to make managers professionals.
2. Failure to Give Guidelines to Goal setters:

If the goal setters are not given proper guidelines for deciding their objectives then MBO will not

be a success. The managers who will guide in goal setting should themselves understand the

major policies of the company and the role to be played by their activity. They should also know

planning premises and assumptions for the future. Failure to understand these vital aspects will

prove fatal for this system.

3. Difficulty in Setting Goals:

The main emphasis in MBO technique is on set ting objectives. The setting of objectives is not a

simple thing. It requires lot of information for arriving at the conclusions. The objectives should

be verifiable so that performance may be evaluated. Some objectives may not be verifiable,

precaution should be taken in defining such objectives. The objectives should not be set casually

otherwise MBO may prove liability for the business.

4. Emphasis on Short Term Objectives:

In most of the MBO programs there is a tendency to set short-term objectives. Managers are

inclined to set goals for a year or less and their thrust is to give undue importance to short term

goals at the cost of long term goals. They should achieve short term goals in such a way that they

help in the achievement of long term goals also. There may be a possibility that short term and

long term objectives may be incompatible because of specific problems. So proper emphasis

should be given to both short term and long term objectives.

5. Danger of Inflexibility:

There is a tendency to strict to the objectives even if there is a need for modification. Normally

objectives will cease to be meaningful if they are often changed, it will also be foolish to strive

for goals which have become obsolete due to revised corporate objectives or modified policies.
 7. Explain the Characteristics of a good Training Programme

Essentials of good training programme

Training helps the organization to achieve the goal of the organization. Training improves the
performance of the employees by filling the gap what is expected from them and what they
achieved. A good training programme must possess following characteristics:

 An effective training programme should be flexible.

 It should be able to prepare the trainees’ mentally before they impart any knowledge.

 It should emphasize on both theory and practical training.

 It should be given by qualified and trained trainer.

 An effective training programme should be supported by top management.

 The content of the training programme should be prepared before identifying the training
needs as they should be according to the job requirement.

Thus, all the above stated points are necessary for a good training programme.

(i) Training programme should be designed so as to achieve the predetermined objectives, goals
and needs of the organisation. It should be less expensive.

(ii) Training programme should be leopardess for all, in the organisation and not for a particular
group.

(iii) Training programme should pre-planed and well organised taking in view, the objectives of
training programme. For this purpose the whole task should be divided in various sub-activities
an such sub-activities should be arranged in a systematic order.

(iv) Training programme should be designed according to size, nature and financial position of
the concern. A small scale enterprise cannot afford much to the training programme.

(v) Training programme must be flexible enough.

(vi) The programme must be conducted by senior and experienced officer of the concern. In
large scale enterprises, training is conducted by the training director who is incharge of the
training section under personnel department. Such training director is well trained and
experienced in the art training.
(vii) Theoretical and practical aspects of training must be given due considerations while
preparing a training programme.

(viii) It should be designed in such a fashion as to incorporate the recent trends developed in the
industrial field. Psychological researches may guide the conducting of a programme. The main
purpose of the training programme should be to enable the employee to pick-up the work as soon
as he completes the training.

(ix) Training programme should be designed taking in view the interests of both employer and
the employees. Their group interests should not be suffered.

(x) It is not essential to follow a single method of training for all employees. The purpose of
training is to develop the men and not the methods, therefore, more than one method maybe
followed side by side for different groups.

(xi) The main purpose of the training programme should be to motivate the workers to learn
something to improve is job performance and therefore, a reward must be to expected at the
concussions of the learning process such as promotion or a better job.