Hall Ticket No: R18 Set No: 1

QIS COLLEGE OF ENGINEERING & TECHNOLOGY: ONGOLE

(AUTONOMOUS)
II M. B. A- II SEMESTER- REGULAR EXAMINATION-(R18), May - 2020
COMPENSATION AND BENEFITS MANAGEMENT (18A12005)
Master of Business Administration (MBA)
Date: DD/MM/YY Time: 3.00 Hours Max.Marks:6 0 Marks
Question Paper Consists of Part-A, Part-B, Part-C & Part-D.
Answering the question in Part-A, Part- B & Part-D is Compulsory.
Five Questions should be answered either or Procedure in Part-C.

    PART – A      
    Answer ALL the Following Questions (5X1 =5M)      
CO
1 A Write about Remuneration? 1M BTL3
1
CO
  B What are the elements of Job Evaluation system? 1M BTL1
2
CO
  C Write about Competency Mapping? 1M BTL2
3
CO
  D What are the Employee benefits programs? 1M BTL4
4
CO
  E What is meant by straight Piece Rate Plan? 1M BTL1
5
    PART – B      
   
Answer ALL the Following Questions (5X1= 5M)      
_____ made conventions on labour welfare especially on regularly in CO
2 A 1M BTL2
payment of wages & salaries 1
CO
  B _____ is the easiest and least expensive method of evaluation. 1M BTL1
2
_______is a visual assessment tool that evaluates an employee’s current CO
  C 1M BTL4
performance versus their growth potential within the organization. 3
_______are awarded on an ad-hoc basis to employees who demonstrate
CO
a. D exceptional performance, often without consideration of pre-defined goals and 1M BTL3
objectives. 4

CO
  E _____ theory was first introduced by Adam Smith. 1M BTL5
5

    PART – C      
    Answer any one question from each unit (5X8=40M)      
This part consists of 10 essay type questions (Two Questions from each unit of the
syllabus),
   
out of which FIVE Questions are to be answered in Either or Procedure. Each question
carries 8 Marks.
    Unit –I      
What is meant by Compensation Management? Explain the Importance
3   8M CO1 BTL2
of Industrial Relations?
    (OR)      
4   Define Wage board and critically examine the role of the wage board? 8M CO1 BTL3
    Unit –II      
Write about Job Evaluation System? Explain the methods of Job
5   8M CO2 BTL5
Evaluation System?
    (OR)      
Demonstrate the strategies to develop a compensation and explain the
6   8M CO2 BTL3
key components of compensation?

    Unit –III      
What is the need of Pay for Performance? Define the objectives of Pay for
7   8M CO3 BTL2
Performance?
    (OR)      
8
8   What is Group Incentive Plan? Explain the types of Group Incentives Plans? CO3 BTL1
M
    Unit –IV      
What are the Security Benefits to employees? Explain the Advantages of
9   8M CO4 BTL1
Security Benefits to employees?
    (OR)      
Explain Discretionary Benefits? Write the importance of the Discretionary
10   8M CO4 BTL5
Benefits?
    Unit –V      
11   What is a wage? Explain the Principles of Wage and Salary Administration? 8M CO5 BTL1
    (OR)      
Explain the difference between wage, salary and Compensation? Explain
12   8M CO5 BTL5
their Objectives?

    PART – D      
10 CO
13   Case Study (Compulsory) (1X10 = 10M) BTL5
M 3

One of the leading Indian IT companies. TCS' compensation management system was based on the
EVA model. With the implementation of Economic Value Added (EVA)-based compensation, the
salary of employees comprised of two parts – fixed and variable. The variable part of the salary
was arrived after considering business unit EVA, corporate EVA, and also individual performance
EVA.

During the fourth quarter of the financial year (FY) 2007-2008, TCS announced its plans to slash
1.5 percent of the variable component of employee salaries since its EVA targets for the third
quarter of FY 2007-2008 were not met.

The announcement came as jolt not only to TCS employees but also to the entire Indian IT
industry. The company came in for severe criticism and it was accused of not being transparent
with respect to EVA calculation. However, some analysts felt that the pay cuts were a result of the
macroeconomic challenges that the Indian IT companies were facing -- rapid appreciation of the
 rupee against the US dollar and the recession in the US economy (USA was the largest market for
the Indian IT companies)
Question:
1. Discuss various concepts related to compensation management?
2. Discuss the pros and cons of the EVA-based compensation management system and also
analyse EVA as a performance measurement tool.

PART – A
    Answer ALL the Following Questions (5X1 =5M)      
CO
1 A Write about the Significance of Industrial Relations 1M BTL3
1
CO
B What are the Functions of Trade Union? 1M BTL1
2
CO
C Write about the Need of Workers Participation in Management? 1M BTL2
3
 CO
D What are the Features of The Workmen’s Compensation Act? 1M BTL4
4
CO
E Write about Strikes and Lock out in Industrial Disputes Act? 1M BTL1
5
PART – B
Answer ALL the Following Questions (5X1= 5M)
1M CO
2 A Industrial Relation is ____________ in nature BTL2
1
As per Indian Trade Union Act, minimum number required to form a 1M CO
B BTL1
Trade Union is? 2
Worker Director is elected by all the ________ of the company through 1M CO
C BTL4
secret ballot 3
The Contribution of employer towards Employee Pension Scheme is CO
D __________ 1M BTL3
4
_______ is the process of settling a legal case through the court or 1M CO BTL5
E
justice system? 5
PART – C
Answer any one question from each unit (5X8=40M)
This part consists of 10 essay type questions (Two Questions from each unit of the
syllabus), out of which FIVE Questions are to be answered in Either or Procedure. Each
question carries 8 Marks.
Unit –I
What is Industrial Relations Management? Explain the Components of CO
3 8M BTL2
Industrial Relations System? 1
(OR)  
What are the causes of Poor Industrial Relations? Explain the CO
4 8M BTL3
common Approaches to Industrial Relations? 1
Unit –II  
Give an Overview about Trade Union Act 1926 and detail about Legal CO
5 8M BTL5
Framework. 2
(OR)  
What are Trade Unions in India? Explain the significance of Trade CO
6 8M BTL3
Unions. 2
Unit –III
What are the Objectives of Labour welfare? List out the Labour CO
7 8M BTL2
Welfare Acts detailed in Indian Constitution. 3
(OR)  
What is Collective Bargaining? Explain the Characteristics of
CO
8 Collective Bargaining in India? 8M BTL1
3
Unit –IV  
What is Worker’s Education Scheme in India? Explain the Objectives CO
9 8M BTL1
of Worker’s Education Scheme? 4
(OR)  
1 Explain the Features of The Workmen’s Compensation Act and The CO
8M BTL5
0 Employee’s State Insurance Act? 4
Unit –V
1 Explain Strikes, Lock out, Layoff, Retrenchment, Gheroas and Closure CO
8M BTL1
1 in Industrial Disputes. 5
(OR)  
1 Give an overview on Prevention and Settlement of Industrial Disputes CO
8M BTL5
2 in India. 5

PART – D

1 Case Study (Compulsory) (1X10 = 10 CO

10M) BTL5
3 M 3
Hindustan Textile Mills is a spinning unit of 50,000 spindles. The main product is cotton yarn
of 40 count. The mil is situated in central India. Mr. T Patel who is the General Manager of the
plant manages the unit. He is a B. tech of 1960 batch and is associated with the organization
for the last 15 years. The plant started its production in the year 1989. The total strength the
worker is 1750. All the workers are on the regular rolls of Hindustan Textile Mils and majority
of them belong to Bihar. The workers are not unionized but strong groups from particular
regions have influence on the workforce from a particular area. Mr. Pramod Mishra joined the
mill on 01.12.1995 as Trainee and he was promoted as Tenter from 8.8.2000 in the ring
department. He belongs to Chappra district of Bihar. On 25.9.2001, Pramod Mishra was taking
charge of the night shift and there was some argument that took place with the evening shift,
Mr. Babloo, Mr. Mahesh, shift officer intervened in the matter and the issue was resolved.
Babloo is a resident of Balia in U.P. On 10.10.2001, in the night shift at around 1:30 am, Rakesh
Kumar working as Tenter in blow room met with an accident. His right arm came in to contact
with the machine and he shouted for help. Pramod Mishra rushed to the spot and meanwhile 3
other workers of Speed frame and draw frame also reached the spot and started their effort to
pull Rakesh from the machine, Mr. Mahesh, shift officer with the timekeeper Mr. Kanhaiya Lal
also joined them. There was blood al around. Mr. Mahesh intervened in between and took
charge of the machine along with Mr. Gyan Singh, maintenance foreman. They were able to
pull Rakesh Kumar out of the machine and in the meanwhile there were group of 50 workers
gathered on the spot. Kanhaiya took Rakesh to the hospital. Meanwhile there was an argument
that started between Mr. Pramod Mishra and shift officer Mr. Mahesh that the machines are
not safe and the management is not keen about the safety of workers. Mr. Radhey, Mr.
Deendayal, Mr. Prabhu Prakash also joined Mr. Pramod Mishra. Pramod Mishra took an iron
rod from the blow room and started souting to all the workers to stop the plant. He along with
Mr. Radhey, Mr. Deendayal and Mr. Prabhu forced al workers to come out of the plant and
damaged window glasses of the main hall. The whole issue took an ugly turn. You are the
Personnel Manager.

Question:
How will you handle the situation and describe the legal as well as other actions to resolve the
issue.