HUMAN RESOURCE MANAGEMENT

END TERM EXAMINATION (MAIN)

MBA‐BATCH‐2014‐2016.

Answer the following questions. Each question carries 10 marks.

1. A clerk is reported to have misused Rs.100, 000/‐ belonging to the company. You are the
disciplinary authority. Describe the steps you will take. (1&1/2 pages) Suggested Answers
This is a serious misconduct. Hence, the following steps are to be taken.
ISSUE OF CHARGESHEET
A charge sheet will be issued to the clerk. The charge sheet will contain every detail regarding the
misconduct in concrete terms without any ambiguity. The clerk will be asked to submit his
explanation within a stipulated period depending on rules applicable.
CONSIDERATION OF THE EXPLANATION
On receipt of the explanation, the same should be considered. If the explanation is found not
satisfactory or if no explanation is received after the expiry of the stipulated period, an Enquiry
Officer should be appointed to inquire into the charges.
APPOINTMENT OF ENQUIRY OFFICER
The Enquiry Officer should be well versed in the conduct of domestic enquiries in accordance with
principles of natural justice.
CONSIDERATION OF THE REPORT OF THE ENQUIRY OFFICER
On receipt of the report of the Enquiry Officer along with the proceeding, the disciplinary authority will
consider the same and either agree with the finding of the Enquiry Officer or disagree with him with
reasons recorded in writing. The following points will be considered in this process:
Whether reasonable opportunity has been given to the clerk to defend himself.
Whether the findings of the Enquiry Officer is based on materials on record.
In case the clerk is found guilty beyond all reasonable doubts, this being a serious misconduct, the
punishment of dismissal will be proposed.
ISSUE OF SECOND SHOW CAUSE NOTICE
A second show cause notice will be served on the clerk to give him an opportunity to explain why the
punishment of dismissal should not be confirmed. There again should be a stipulated period of time
to reply as per rules applicable.
ISSUE OF FINAL ORDER
If the clerk replies to the second show cause, his explanation should be considered and decision taken. If
it is decided to dismiss him, appropriate letter will be issued.

2. Mr. Shroff is a talented and well experienced human resources manager of Britestar Company. He
undertakes his role of HR manager by being an administrative expert and a change agent. He has
always been an inspiration for his subordinates and the employees whose performance is
measured and appraised by him. It is because of Mr.Shroff’s 15 years of experience of working in
HR departments helped him to get acquainted with various Performance Appraisal methods for
evaluating the performance of his employees in a better way every time. Currently he wants to
combine Graphic rating scale and critical incident method in his new Appraisal System . What is
this new method called and how would this new method work ? Explain in detail. (1&1/2 pages)
Suggested Answer
Behaviorally anchored rating scales: Also known as the behavioral expectations scale, this
method represents the latest innovation in performance appraisal. It is a combination of the
rating scale and critical incident techniques of employee performance evaluation. The critical
incidents serve as anchor statements on a scale and the rating form usually contains six to eight
specifically defined performance dimensions.
How to construct BARS? Developing a BARS follows a general format which combines techniques
employed in the critical incident method and weighted checklist ratings scales. Emphasis is pinpointed on
pooling the thinking of people who will use the scales as both evaluators and evaluees.

Step 1: Collect critical incidents: People with knowledge of the job to be probed, such as job holders and
supervisors, describe specific examples of effective and ineffective behavior related to job performance.

Step 2: Identify performance dimensions: The people assigned the task of developing the instrument
cluster the incidents into a small set of key performance dimensions. Generally between five and ten
dimensions account for most of the performance. Examples of performance dimensions include
technical competence, relationships with customers, handling of paper work and meeting day‐to‐day
deadlines. While developing varying levels of performance for each dimension (anchors), specific
examples of behavior should be used, which could later be scaled in terms of good, average or below
average performance.

Step 3: Reclassification of incidents: Another group of participants who are knowledgeable about the job
is instructed to retranslate or reclassify the critical incidents generated (in Step II) previously. They are
given the definition of job dimension and told to assign each critical incident to the dimension that it best
describes. At this stage, incidents for which there is not 75 per cent agreement are discarded as being
too subjective.

Step 4: Assigning scale values to the incidents: Each incident is then rated on a one‐to‐seven or one‐
tonine scale with respect of how well it represents performance on the appropriate dimension. A rating
of one represents ineffective performance; the top scale value indicates very effective performance. The
second group of participants usually assigns the scale values. Means and standard deviations are then
calculated for the scale values assigned to each incident. Typically incidents that have standard
deviations of 1.50 or less (on a 7‐point scale) are retained.

Step 5: Producing the final instrument: About six or seven incidents for each performance dimension – all
having met both the retranslating and standard deviation criteria – will be used as behavioral anchors.
The final BARS instrument consists of a series of vertical scales (one for each dimension) anchored (or
measured) by the final incidents. Each incident is positioned on the scale according to its mean value.

3. A number of quantitative and qualitative techniques for forecasting human resources demand
were discussed in this chapter. Identify which strategies would be most appropriate for (a) small
versus large companies, (b) businesses/industries in which there are seasonal variations
Suggested Answer:
In large organizations, needs forecasting is primarily quantitative in nature and is the
responsibility of highly trained specialists. Quantitative techniques for determining human resources
requirements include trend analysis, ratio analysis, scatter plot analysis, and regression analysis. These
are often viewed as numerically or mathematically grounded, and therefore more objective in nature.
Qualitative
approaches to forecasting range from sophisticated analytical models to informal expert opinions about
future needs, often involving subjective interpretations or estimates, such as the nominal group
technique or the Delphi technique. While the costs of developing these forecasting methods used to be
quite high, advances in technology and computer software have made rather sophisticated forecasting
more affordable to even small businesses.
1. B. ) businesses/industries in which there are seasonal variations

(a) a trend could be a gradual and regular increasing or decreasing level of employment, probably over
some years; (b) cyclical effects which could be a gradual and repeated upward and downward
movement over a period. This may well be associated with some events such as economic activity in the
country; (c) seasonality, which may occur one when more than one time point per annum, is recorded. It
records the different levels of activity between say summer and winter; (d) a step is a sudden change in
the level of employment which will probably accompany some identifiable change in the environment,
such as decrease/increase in sales or introduction of new machinery; and (e) random fluctuations in a
series of changes in levels of employment that do not follow any obvious pattern. In this case "moving
average" will help to highlight the trend and suggest the amount of possible error in the forecast".

4. Zenith a Global brand in Cosmetics wants to set up its base in India. It has hired experienced HR
professionals to frame its new compensation policies.. What are the various factors which
influence can a firm when framing its compensation policy which the HR professionals should
keep in mind? Also briefly mention some of the focal issues in modern day compensation
management. (1&1/2 pages)

Factors affecting compensation management

• Business & HR strategies
• Culture, Climate & management practices • Type of people employed
• History & present arrangement for reward
• Market considerations
• Government regulations/ Legal considerations
Trends
• Golden Hellos
Recruitment bonus/ up‐front bonus to entice sought after individuals to join the company •
Golden Handshakes
Essentially termination payments to ensure that employees leave with a financial cushion
• Golden Parachute
Ensures provision of compensation or lucrative benefits for the loss of job following a change of control.
• Cafeteria Benefit plan
Customized benefit plan giving employees a choice to select most suitable benefit scheme.
• Broadbanding
• Variable Pay
• Executive Compensation

5. Arun Sharma, a recent recruit from a reputed management institute in Pune, has just joined the
sales office of a large computer hardware firm at Hyderabad as a new sales trainee. Rajesh
Adhikari, the Zonal Sales Manager was there to greet him. Rajesh's job consisted of overseeing
the work of sales officers, field executives and trainee salespersons numbering over 50 of three
areas namely Hyderabad, Bangalore & Cochin. The sales growth of computers, parts and other
office equipment in his area was highly satisfactory, especially in recent years – thanks to the
 developmental initiatives taken by respective State Governments in spreading computer
education in offices, schools, colleges, banks and other institutions. Rajesh collected several
sales reports, catalogues & pamphlets describing in detail the types of office equipment sold by
the company. After a pleasant chat about their backgrounds, Rajesh gave Arun the material and
showed him to his assigned desk. Thereafter Rajesh excused himself and did not return. Arun
spent the whole day scanning the material and at 5.00 p.m. he picked up his things and left.
What do you think about Rajesh's training program? What method of training would have been
best under the circumstances? Which method would you consider & why? (1&1/2 pages)

Suggested Answer
Considering the fact that Arun is a fresh recruit straight out from college, the training given by Rajesh
does not seem appropriate. Under the given circumstances the ideally the immediate superior
should first spend some time with the employee familiarizing him with the company culture and
working environment. Proper induction involving a brief outlook of the company background,
policies an introduction of employee to his colleagues and other officers with whom he needs to
deal with should be the first step in the process.
As per the circumstances an On‐the‐job training method appears to be the most suitable one. Rajesh
being a Zonal Sales Manager is heading around 50 sales personnel distributed over three major
areas, may not be able to personally guide Arun. In such condition, Arun could be assigned to any of
the senior sales officer, who could have acted as a coach and a mentor for Arun.

6. The Trade Union Act of 1926 was last amended in 1982 and was mainly enacted to provide for
the registration of trade unions and verification of their membership so as to help them acquire
a legal and corporate status. What are the main provisions of this act? (10 marks) (1&1/2 pages)

Suggested Answer:
The main provisions of the Act are:
¾ Registration of the trade unions
¾ Cancellation of the registration of the trade unions and appeals
¾ Re‐registration of the trade unions
¾ Duties and liabilities of a registered trade union
¾ Rights and privileges of a registered trade union
¾ Amalgamation and dissolution of a trade union
¾ Submission of returns
¾ Power to make regulations
¾ Penalties and procedures

7. There was a training program conducted few months ago for the Managers of Finance
Department of a large MNC. The HR Manager currently needs to assess the utility of the training
program. She has the feedback form of the participants. Is that data sufficient ? Justify your
answer. (1&1/2 pages)

Questions that should be answered in the evaluation process

 a. Did change occur?
b. Is the change due to training?
c. Is change positively related to achieving organizational goals?
d. Will new participants in training experience similar changes?
Reaction
How do participants feel about the training?
Learning
Have participants learned what was taught?
Behavior
Have on‐the‐job changes occurred?
Results
Have bottom line outcomes resulted?

8. “In the new world of work, careers are very different. Gone is the job for life with its planned
career structure and company training scheme. Gone is the clear functional identity and
progressive rise in income and security. Instead there is a world of customers and clients, adding
value, lifelong learning, portfolio careers, self development and an overwhelming need to stay
employable”. In the light of the above statement , compare and contrast the old and new
paradigms of career stages. How would career anchors provide assistance in such situations.
(1&1/2 pages)

• Traditional career paths.

– Entry and establishment: Involves on‐the‐job development of relevant skills and
abilities.
– Advancement: The individual seeks growth and increased responsibility.
– Maintenance, withdrawal, and retirement: Individuals may experience continued
growth of accomplishments or may encounter career stability. At some point, individuals
consider withdrawal and ultimate retirement.
Tthree fundamental changes in organisational career philosophy:
1 The employer–employee relationship is not now conceived as longterm, and thus the
futuretime orientation of careers now seems less appropriate
2 Whilst career progression may indeed still mean moving between positions over time, it
no longer necessarily means hierarchical movement
3 From both the organisational and individual perspectives it is no longer apparent how a
logical, ordered and sequential career may actually evolve.
As a result in these changes, ‘new’ careers are marked by ‘numerous transitions between jobs,
organizations, or fields of professional activity, as well as a lack of institutionalised and ordered
career paths and/or career rules’ with greater focus on the external labour market as a means
for advancement . Under this perspective, careers and career development are better understood
as chaotic systems, characterised by vcomplexity and unpredictability, cyclical rather than linear
progression, lateral rather than upward movement and periods of re‐skilling. Therefore, that for
some ‘the [career] ladder has unexpectedly turned into a hamster wheel’. The key contrasts
between the ‘old’ and ‘new’ career are
‘Old’ career ‘New’ career
Structured Unstructured
 Objective Subjective
Continuity Discontinuity Coherence
Irregularity
Career development Personal development
Status, power and authority ‘Psychological success’
Linear Cyclical
Security Employability
Bureaucracy Network
Organisationally bounded Boundaryless
Work‐focused Holistic
Jobs Skills, assignments and projects
Predictability Unpredictability
Relational psychological contract Transactional psychological contract
Long‐term Short‐term
Future orientation Present orientation

9. Aaron Inc., a multinational company with its headquarter in France and business units in 13
countries always followed an integrated system of centralized recruitment where the
headquarters undertook all the decisions and activities of recruitment for the entire organization
and its various subsidiaries across various countries. The selection was however localized with
the divisional heads. Recently Aaron Inc. has observed that the quality of applicants has gone
down. In the last few years, the dropout from the company induction program has risen from
2.5% to 11.3% which is much above the industry norms. The HR Vice President in the head
quarters, Mr. Smith would like to overcome this problem with expanding the applicant pool
base.

Questions:
a. Do you think that Aaron Inc. should maintain a centralized recruitment policy? What are the
advantages and disadvantages of centralizing the recruitment function?
b. Explain why generating large applicant pools are not always desirable for a multinational firm
like Aaron Inc. What implications exist for recruitment methods?

(10 + 10 = 20 marks) Suggested Answers for the Case

9a. Centralizing makes it easier to apply the company’s strategic priorities company‐wide. It reduces
duplication and makes it easier to spread costs over more departments. It is a disadvantage to use
centralized recruiting when the divisions are autonomous or when recruitment needs are varied.

9b. An employer seeks to attract qualified applicants rather than unqualified applicants. Some
recruitment methods result in large pools but the applicants are unqualified. Larger pools raise costs
of correspondence and screening. It also extends the time necessary to fill vacant positions because
of the additional time necessary to sort through the large pool of applicants. The implication is that
managers should evaluate different recruitment methods to determine which ones work best for the
firm. These methods should be evaluated in terms of the number of applicants produced and the
quality of applicants.