UNIT – III

HUMAN RESOURCE AND MATERIALS MANAGEMENT

Introduction:

Human resource management focuses on all issues related to ‘people’ in the organization. The people in an
organization are the most important assets. Managing human resource is one of the key functions of business
organizations. The people in the organization instrumental to success. So managing g people in an efficient and
effective way is essential.

Definition: HRM is the art of procuring, developing, and maintaining competent work force to achieve the goals of
an organization is an organization is an effective and efficient manner.

Human resource management “the planning, organizing, directing and controlling of the various aspects of human
resources to the end that individual, organizational and social objectives are accomplished”.
- Flippo.
Concept of HRM:
HRM is a management function that helps managers to recruit, select, train and develop members for an
organization. HRM is concerned with the people’s dimension in organization. HRM is the planning, organizing,
directing and controlling of the procurement, development, compensation, integration and maintenance of human
resources so that the individual, organizational and social objectives are accomplished.
Significance / Importance / Advantages of HRM:

Achieving Objective: HRM helps a company to achieve from its objective from time-to-time by creating a positive
attitude among workers. Reducing wastage and making maximum use of resources etc.

Facilitates Professional Growth: Due to proper HR Policies employees are trained well and this makes them ready
for future promotions.

Better Relationships between Union and Management: Healthy HRM practices can help the organization to
maintain co-ordinal relationship with the unions.

Helps an Individual to Work in a Team / Group: Effective HR practices teach individuals team work and
adjustment. The individuals are now very comfortable while working in team thus work improves.

Allocating the Jobs to the Right Person: If proper recruitment and selection methods are followed, the company
will be able to select the right people for the right job.

FUNCTIONS OF HUMAN RESOURCE MANAGEMENT

HRM functions can be broadly classified into two categories:
i) Managerial functions. ii) Operative functions.
i) Managerial Functions:
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Managerial functions of the human resource department are planning, organizing, staffing, directing and
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controlling.
 ii) Operative Functions: Operative function may be discussed as under:
HUMAN RESOURCE PLANNING
Human resources planning is a process that identifies current and future human resources needs for an
organization to achieve its goals. Human resources planning should serve as a link between human resources
management and the overall strategic plan of an organization.

Human resource planning is a process through which the right candidate for the right job is ensured. For conducting
any process, the foremost essential task is to develop the organizational objective to be achieved through
conducting the said process.

Six steps in human resource planning are:

1. Analysing Organizational Objectives: The objective to be achieved in future in various fields such as production,
marketing, finance, expansion and sales gives the idea about the work to be done in the organization.

2. Inventory of Present Human Resources: From the updated human resource information storage system, the
current number of employees, their capacity, performance and potential can be analysed. To fill the various job
requirements, the internal sources (i.e., employees from within the organization) and external sources (i.e.,
candidates from various placement agencies) can be estimated.

3. Forecasting Demand and Supply of Human Resource: The human resources required at different positions
according to their job profile are to be estimated. The available internal and external sources to fulfill those
requirements are also measured. There should be proper matching of job description and job specification of one
particular work, and the profile of the person should be suitable to it.

4. Estimating Manpower Gaps: Comparison of human resource demand and human resource supply will provide
with the surplus or deficit of human resource. Deficit represents the number of people to be employed, whereas
surplus represents termination. Extensive use of proper training and development programme can be done to
upgrade the skills of employees.

5. Formulating the Human Resource Action Plan: The human resource plan depends on whether there is deficit or
surplus in the organization. Accordingly, the plan may be finalized either for new recruitment, training,
interdepartmental transfer in case of deficit of termination, or voluntary retirement schemes and redeployment in
case of surplus.

6. Monitoring, Control and Feedback: It mainly involves implementation of the human resource action plan.
Human resources are allocated according to the requirements, and inventories are updated over a period. The plan
is monitored strictly to identify the deficiencies and remove it. Comparison between the human resource plan and
its actual implementation is done to ensure the appropriate action and the availability of the required number of
employees for various jobs.

RECRUITMENT

Meaning:
Recruitment is a positive process of searching for prospective employees and stimulating them to apply for the jobs
in the organisation. When more persons apply for jobs then there will be a scope for recruiting better persons.
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Definition:
According to Edwin B. Flippo, “It is a process of searching for prospective employees and stimulating and
encouraging them to apply for jobs in an organisation.”

Methods of Internal Sources:

1. Transfers: Transfer involves shifting of persons from present jobs to other similar jobs. These do not involve any
change in rank, responsibility or prestige. The numbers of persons do not increase with transfers.

2. Promotions: Promotions refer to shifting of persons to positions carrying better prestige, higher responsibilities
and more pay. The higher positions falling vacant may be filled up from within the organisation. A promotion does
not increase the number of persons in the organisation.A person going to get a higher position will vacate his
present position. Promotion will motivate employees to improve their performance so that they can also get
promotion.

3. Present Employees: The present employees of a concern are informed about likely vacant positions. The
employees recommend their relations or persons intimately known to them. Management is relieved of looking out
prospective candidates.The persons recommended by the employees may be generally suitable for the jobs
because they know the requirements of various positions. The existing employees take full responsibility of those
recommended by them and also ensure of their proper behaviour and performance.

Advantages of Internal Sources:

 Improves morale:
 No Error in Selection:
 Promotes Loyalty:
 No Hasty Decision:
 Economy in Training Costs:
 Self-Development:

Disadvantages of Internal Sources:

(i) It discourages capable persons from outside to join the concern.

(ii) It is possible that the requisite number of persons possessing qualifications for the vacant posts may not be
available in the organisation.

(iii) For posts requiring innovations and creative thinking, this method of recruitment cannot be followed.

(B) External Sources:

All organizations have to use external sources for recruitment to higher positions when existing employees are not
suitable. More persons are needed when expansions are undertaken.

Methods of External Sources:

1. Advertisement: It is a method of recruitment frequently used for skilled workers, clerical and higher staff.
Advertisement can be given in newspapers and professional journals. These advertisements attract applicants in
large number of highly variable quality.
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Preparing good advertisement is a specialised task. If a company wants to conceal its name, a ‘blind advertisement’
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may be given asking the applicants to apply to Post Bag or Box Number or to some advertising agency.
2. Employment Exchanges: Employment exchanges in India are run by the Government. For unskilled, semi-skilled,
skilled, clerical posts etc., it is often used as a source of recruitment. In certain cases it has been made obligatory
for the business concerns to notify their vacancies to the employment exchange. In the past, employers used to
turn to these agencies only as a last resort. The job-seekers and job-givers are brought into contact by the
employment exchanges.

3. Schools, Colleges and Universities: Direct recruitment from educational institutions for certain jobs (i.e.
placement) which require technical or professional qualification has become a common practice. A close liaison
between the company and educational institutions helps in getting suitable candidates. The students are spotted
during the course of their studies. Junior level executives or managerial trainees may be recruited in this way.

4. Recommendation of Existing Employees: The present employees know both the company and the candidate
being recommended. Hence some companies encourage their existing employees to assist them in getting
applications from persons who are known to them.In certain cases rewards may also be given if candidates
recommended by them are actually selected by the company. If recommendation leads to favouritism, it will impair
the morale of employees.

5. Factory Gates: Certain workers present themselves at the factory gate every day for employment. This method
of recruitment is very popular in India for unskilled or semi-skilled labour. The desirable candidates are selected by
the first line supervisors. The major disadvantage of this system is that the person selected may not be suitable for
the vacancy.

6. Casual Callers: Those personnel who casually come to the company for employment may also be considered for
the vacant post. It is most economical method of recruitment. In the advanced countries, this method of
recruitment is very popular.

7. Central Application File: A file of past applicants who were not selected earlier may be maintained. In order to
keep the file alive, applications in the files must be checked at periodical intervals.

8. Labour Unions: In certain occupations like construction, hotels, maritime industry etc., (i.e., industries where
there is instability of employment) all recruits usually come from unions. It is advantageous from the management
point of view because it saves expenses of recruitment. However, in other industries, unions may be asked to
recommend candidates either as a goodwill gesture or as a courtesy towards the union.

9. Labour Contractors: This method of recruitment is still prevalent in India for hiring unskilled and semi-skilled
workers in brick klin industry. The contractors keep themselves in touch with the labour and bring the workers at
the places where they are required. They get commission for the number of persons supplied by them.

10. Former Employees: In case employees have been laid off or have left the factory at their own, they may be
taken back if they are interested in joining the concern (provided their record is good).

Merits of External Sources:

 Availability of Suitable Persons:
 Brings New Ideas:
 Economical:

Demerits of External Sources:

 Demoralisation:
 Lack of Co-Operation:
 Expensive:
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 Problem of Maladjustment
 SELECTION

Selection is a process of choosing right person for the right job.

The selection process consists of a series of steps or techniques as follows

1. Job Analysis : The first step in selection process is analyzing the job. Job analysis consists of two parts :

(a) Job Description, and

(b) Job Specification.
Proper job analysis helps to advertise the job properly. Accordingly, the right candidates may apply for the job, thus
saving a lot of time and effort of the selectors.

2. Advertising the Job: The next step is to advertise the job. The job can be advertised through various media.
The right details about the job and the candidate must be given in the advertisement.

3. Initial Screening: The initial screening can be done of the applications and of the applicant. Usually, a junior
executive does the screening work. At this stage, the executive may check on the general personality, age,
qualifications, family background of the candidate. The candidate may also be informed of salary, working
conditions, etc.

4. Application Blank: It is a prescribed form of the company which helps to obtain information about candidate
in respect of social, biographic, academic, work experience, references, etc.It provides basis to reject candidates if
they do not meet eligibility criteria, such as experience, qualifications, etc.

5. Tests: Various tests are conducted to judge the ability and efficiency of the candidates. The type of tests
depends upon the nature of job. An important advantage of testing is that it can be administered to a large group
of candidates at a time and saves time and cost.The various tests are: (a) Personality test, (b) Intelligence test, (c)
Performance test, (d) Stress test, etc.

6. Interview: It is face to face exchange of views, ideas and opinions between the candidate and
interviewer(s).There are various types of interviews such as : (a) Panel Interview, (b) Individual Interview, (c) Group
Interview, (d) Stress Interview, (e) Exit Interview.

7. Reference Check: A candidate may be asked to provide references from those who are willing to supply or
confirm about the applicant’s past life, character and experience.

 Reference check helps to know the personal character and family background of the candidate.
 It helps to guard against possible false information supplied by candidate.

8. Medical Check: Medical examination of the candidates is undertaken before they join the firm in order to –

 Find out whether the candidate is physically fit to carry out duties and responsibilities effectively,
 Ensure the health and safety of other employees,
 Find out whether the candidate is sensitive to certain work place such as in a chemical factory.

9. Final Interview: Before making a job offer, the candidates may be subjected to one more oral interview to find
out their interest in the job and their expectations. At this stage, salary and other perks may be negotiated.
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10. Job Offer: This is the most crucial and final step in selection process. A wrong selection of a candidate may
make the company to suffer for a good number of years and the loss is incalculable. Company should make a very
important decision to offer right job to the right person.

TRAINING AND DEVELOPMENT

“Training & Development is any attempt to improve current or future employee performance by increasing an
employee's ability to perform through learning, usually by changing the employee's attitude or increasing his or her
skills and knowledge.”

A. On-the-job training Methods:

Under these methods new or inexperienced employees learn through observing peers or managers performing the
job and trying to imitate their behaviour. These methods do not cost much and are less disruptive as employees are
always on the job, training is given on the same machines and experience would be on already approved standards,
and above all the trainee is learning while earning. Some of the commonly used methods are:

1. Coaching: Coaching is a one-to-one training. It helps in quickly identifying the weak areas and tries to focus on
them. It also offers the benefit of transferring theory learning to practice. The biggest problem is that it perpetrates
the existing practices and styles. In India most of the scooter mechanics are trained only through this method.

2. Mentoring: The focus in this training is on the development of attitude. It is used for managerial employees.
Mentoring is always done by a senior inside person. It is also one-to- one interaction, like coaching.

3. Job Rotation: It is the process of training employees by rotating them through a series of related jobs. Rotation
not only makes a person well acquainted with different jobs, but it also alleviates boredom and allows to develop
rapport with a number of people. Rotation must be logical.

4. Job Instructional Technique (JIT): It is a Step by step (structured) on the job training method in which a suitable
trainer (a) prepares a trainee with an overview of the job, its purpose, and the results desired, (b) demonstrates the
task or the skill to the trainee, (c) allows the trainee to show the demonstration on his or her own, and (d) follows
up to provide feedback and help. The trainees are presented the learning material in written or by learning
machines through a series called ‘frames’. This method is a valuable tool for all educators (teachers and trainers). It
helps us:

a. To deliver step-by-step instruction

b. To know when the learner has learned

c. To be due diligent (in many work-place environments)

5. Apprenticeship: Apprenticeship is a system of training a new generation of practitioners of a skill. This method of
training is in vogue in those trades, crafts and technical fields in which a long period is required for gaining
proficiency. The trainees serve as apprentices to experts for long periods. They have to work in direct association
with and also under the direct supervision of their masters.

The object of such training is to make the trainees all-round craftsmen. It is an expensive method of training. Also,
there is no guarantee that the trained worker will continue to work in the same organisation after securing training.
The apprentices are paid remuneration according the apprenticeship agreements.
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6. Understudy: In this method, a superior gives training to a subordinate as his understudy like an assistant to a
manager or director (in a film). The subordinate learns through experience and observation by participating in
handling day to day problems. Basic purpose is to prepare subordinate for assuming the full responsibilities and
duties.

B. Off-the-job Training Methods:

Off-the-job training methods are conducted in separate from the job environment, study material is supplied, there
is full concentration on learning rather than performing, and there is freedom of expression. Important methods
include:

1. Lectures and Conferences: Lectures and conferences are the traditional and direct method of instruction. Every
training programme starts with lecture and conference. It’s a verbal presentation for a large audience. However,
the lectures have to be motivating and creating interest among trainees. The speaker must have considerable
depth in the subject. In the colleges and universities, lectures and seminars are the most common methods used
for training.

2. Vestibule Training: Vestibule Training is a term for near-the-job training, as it offers access to something new
(learning). In vestibule training, the workers are trained in a prototype environment on specific jobs in a special part
of the plant.

An attempt is made to create working condition similar to the actual workshop conditions. After training workers in
such condition, the trained workers may be put on similar jobs in the actual workshop.

This enables the workers to secure training in the best methods to work and to get rid of initial nervousness. During
the Second World War II, this method was used to train a large number of workers in a short period of time. It may
also be used as a preliminary to on-the job training. Duration ranges from few days to few weeks. It prevents
trainees to commit costly mistakes on the actual machines.

3. Simulation Exercises: Simulation is any artificial environment exactly similar to the actual situation. There are
four basic simulation techniques used for imparting training: management games, case study, role playing, and in-
basket training.

(a) Management Games: Properly designed games help to ingrain thinking habits, analytical, logical and reasoning
capabilities, importance of team work, time management, to make decisions lacking complete information,
communication and leadership capabilities. Use of management games can encourage novel, innovative
mechanisms for coping with stress.

(b) Case Study:Case studies are complex examples which give an insight into the context of a problem as well as
illustrating the main point. Case Studies are trainee centered activities based on topics that demonstrate
theoretical concepts in an applied setting.

(c) Role Playing: Each trainee takes the role of a person affected by an issue and studies the impacts of the issues
on human life and/or the effects of human activities on the world around us from the perspective of that person.

(d) In-basket training: In-basket exercise, also known as in-tray training, consists of a set of business papers which
may include e-mail SMSs, reports, memos, and other items. Now the trainer is asked to prioritise the decisions to
be made immediately and the ones that can be delayed.

4. Sensitivity Training:
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Sensitivity training is also known as laboratory or T-group training. This training is about making people understand
about themselves and others reasonably, which is done by developing in them social sensitivity and behavioral
flexibility. It is ability of an individual to sense what others feel and think from their own point of view.

PERFORMANCE APPRAISAL

It is the process of evaluating the relative merit of the person on a given job. It is an essential task of the personnel
manager to distinguish the meritorious employees from the others. The data collected from this task is used for
strategic decisions such as releasing an increment in pay, promotion, transfer, transfer on promotion to a critical
assignment, or even discharge.\

Objectives

 To determine salary increments

 To decide who has to be transferred, promoted, or demoted
 To enhance employee morale, and thus, stimulate positive thinking among employees about the work and
the organization
 To discover the worker’s needs for retraining and advanced training.
 To unfold the exceptional skills among the employees, based on their innate potentials
 To guide and monitor the performance of those who are lagging behind
While evaluating the merit of an employee, the following traits of the employee are closely observed and
analyzed:

 Ability to carry out the instructions to do the job assigned

 Knowledge of every detail of the job
 Ability to solve problems on the job
 Special qualities such as creativity, quality of interaction, and so on
 Supervisory capabilities
 Ability to adapt or manage crisis
 Ability to work in a team
 Capability to work against hard targets

The list is, however, not a standard one. The list of such traits can be flexible considering the requirements of the
organizations. The purpose for which the employee is evaluated is, more often, the better guide to suggest the
parameters of evaluation.

Methods of Performance appraisal

There are different methods of assessing the performance of the person on the job. While most of them are based
on supervisor’s remarks, some of them are based on self-evaluation. In other words, particularly at higher
executive positions, the employee is given an opportunity to evaluate his own performance against his own preset
objectives. Such reports are evaluated based on the merits of each case. The following are the different methods
merit rating.
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Ranking method
In this method, all the staff of a particular cadre or a department are arranged either in the ascending or the
descending order in order of merit or value to the firm. Though this is a simple method, it cannot be followed
where the employees in the department are many in number. This method fails to identify the degree of
differential merit among the staff.

Paired comparison method

Here, every employee is compared with all others in a particular cadre in the department. By comparing each pair
of employees, the rater can decide which of the employees is more valuable to the organization. This method is
more useful for an overall comparison of employees and if the number of employees is reasonable.

Rating scale

Here, the factors dealing with the quantity and quality of work are listed and rated. A numeric value may be
assigned to each factor and the factors could be weighed in the order of their relative importance. All the variables
are measured against three or five point scale. For instance, if a variable such as skill on the job is evaluated, a three
point scale could be:

Traits good Fair poor

Skills on the job 3 2 1

Punctuality 3 2 1

Cooperation 3 2 1

Care towards the equipment and tools 3 2 1

Similarly, a five point scale could be excellent, good, satisfactory, average, and poor in which case the weightage
could be 5, 4, 3, 2 and 1 respectively. Several traits or attributes such as punctuality, efficiency, cooperation,
initiative, and others are evaluated on such a scale. The indication is recorded by marking the concerned number
representing the degree to which the individual satisfies the standard. The numbers also serve as weights, which
can be added to judge the relative merit of the each employee.

The rating scale is a widely used method of evaluating performance because it is economical to develop and easily
understood by the workers and the evaluator. A major weakness is that each evaluator is apt to interpret the
factors such as skills on the job and the degrees describing that factor are marked off along the scale (such as good,
fair, poor). This method is simple to administer but cannot sharply differentiate the employees.

Forced distribution method here, employees are given a set of alternatives and they have to choose one, which
reflects their understanding of the true nature of the job. Their thinking is conditioned by the given set of answers.
In other words, employees are forced to select one, from the given set of answers, which they think correct. Based
on their answers, their judgment skills, analytical, and reasoning skills are assessed. The answers given may be very
close to each other and to select the right answer, the candidate has to understand the job and scope for
promotion.

Narrative or essay method here, the candidate is required to narrate in an essay format his/her strengths,
weaknesses, and potential to perform. Here, the candidate is not restricted by any given set of alternatives. The
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candidate is free to decide what to furnish or what not furnish. The advantage with this method is that the
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evaluator is also not bound by any constraints such as scaling, and others. This method is often used in evaluating
employees, mostly in the service organization. All the eligible candidates may be asked to enclose in their
application for promotion, a page write up on ‘Why they should promoted ‘. The one who presents his arguments
in a logical and justifiable manner is likely to emerge victorious. One difficulty with this method is the comparison.
Since the candidates are likely to cover different aspects of performance and personal traits, it is difficult to
compare the relative merit of each employee.

Management by objectives (MBO) the short term objectives mutually agreed upon by the management and the
employee are used as performance standards. This method considers the actual performance as the basic for
evaluation. It is a systematic method of goal setting. Also, it provides for reviewing performance based on results
rather than personality traits or characteristics. However, this is not practical at all levels and for all kinds of work in
the organizations.
WAGE PAYMENT PLANS
INTRODUCTION:
What is a one line answer to a question: “Why people work?” The first thing which comes to our mind is money or
payment for work. Since money comes in the form of wages and incentives for an employee, it’s planning and
administration is a crucial issue. Next thing, which needs to be answered, is: “Should the wage be fixed or be
proportional to the output?” Now, this is a ticklish issue and no straight-forward answer is forthcoming. We
address this issue in this chapter. For this, following definitions are needed:
Wages
It is the payment for the use of effort, which may be physical or manual. It includes both financial and non-financial
payments.
Fair Wages : It is the wages which are fair to the efforts (or labour) and work-accomplishment of an employee.
These should be sufficient to fulfill the basic needs of life.
Salary: salary is employee compensation calculated weekly, monthly, or annual basis. It is usually paid to white-
collar workers such as office personnel, executives and professional employees.
Fringe-Benefits: Non-financial part of wages is called as fringe-benefits. Examples are: free official car, free house,
attendant for house-hold work, gratuity, PF, etc.
Incentives: Incentives are the rewards an employee earns in addition to regular wages or salary based on the
performance of the individual, the team or the organization.
Incentives may be direct or indirect. Direct incentives are given to an employee while indirect incentives are given
to a group. Direct or indirect monetary payment is termed as financial incentives, such as: bonus, profit sharing,
etc. Non-monetary payment of this type is non-financial incentives, such as: social benefits, recognition,
appreciation, good work condition, job satisfaction, chances of promotion, job security, training, etc. Some
incentives are semi-financial, such as: subsidized ration, subsidized medical facility, subsidized education for
children, pension, etc.
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Type of Wage payment Plans:

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Laborers are paid with two systems. Both systems can be used but same labor cannot be paid with both systems.
1. Time Wage System or Time Rate System: under this system, laborers get wage on the basis of time which is
utilized in organization. This wages may be charged on per hour, per day, per month or per year basis. There is no
relation or quantity of output and wages in this method. In India's industry, this method is most popular. Its other
name is day wages system or time wok system.
We can calculate wages with following formula
Formula: Total Wages = Time taken X Rate
for Example: A worker produced 10000 articles in 7600 hours. His hourly wage rate is Rs. 2 /- . Calculate the wage
of the worker when he is paid on the basis of time.
Solution: Applying the formula, we get:
Wage = T.T. X R = 7600 X 2 = Rs. 15200/-.
2. Piece Wage System or Work Rate System: under this method or system, laborers can get the wages on the basis
of their work done. No time element will be used for calculation of wages. Rate is also on the basis of quantity or
unit produced. Under this, method, laborer tries to best for producing the products fastly for getting more wages.
This method is also called payment by result.
FORMULA: Total Wages = Unit Produced X Rate per unit
For Example: 2500 units were produced by a worker in 1200 hrs. Rate of production is Rs. 3 /- per unit. Calculate
the wage of the worker if he is paid according piece rate method.
Solution: By applying formula, we get:
Wages = units produced X rate per unit = 2500 X 3 = Rs. 7500/-

GRIEVANCE

Grievance may be any genuine or imaginary feeling of dissatisfaction or injustice which an employee experiences
about his job and it’s nature, about the management policies and procedures. It must be expressed by the
employee and brought to the notice of the management and the organization.

Grievances take the form of collective disputes when they are not resolved. Also they will then lower the morale
and efficiency of the employees. Unattended grievances result in frustration, dissatisfaction, low productivity, lack
of interest in work, absenteeism, etc. In short, grievance arises when employees’ expectations are not fulfilled from
the organization as a result of which a feeling of discontentment and dissatisfaction arises. This dissatisfaction must
crop up from employment issues and not from personal issues.

Grievance may result from the following factors-

a. Improper working conditions such as strict production standards, unsafe workplace, bad relation with
managers, etc.
b. Irrational management policies such as overtime, transfers, demotions, inappropriate salary structure, etc.
c. Violation of organizational rules and practices
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The manager should immediately identify all grievances and must take appropriate steps to eliminate the causes of
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such grievances so that the employees remain loyal and committed to their work. Effective grievance management
is an essential part of personnel management. The managers should adopt the following approach to manage
grievance effectively-

1. Quick action- As soon as the grievance arises, it should be identified and resolved. Training must be given to the
managers to effectively and timely manage a grievance. This will lower the detrimental effects of grievance on the
employees and their performance.

2. Acknowledging grievance- The manager must acknowledge the grievance put forward by the employee as
manifestation of true and real feelings of the employees. Acknowledgement by the manager implies that the
manager is eager to look into the complaint impartially and without any bias. This will create a conducive work
environment with instances of grievance reduced.

3. Gathering facts- The managers should gather appropriate and sufficient facts explaining the grievance’s nature.
A record of such facts must be maintained so that these can be used in later stage of grievance redressal.

4. Examining the causes of grievance- The actual cause of grievance should be identified. Accordingly remedial
actions should be taken to prevent repetition of the grievance.

5. Decisioning- After identifying the causes of grievance, alternative course of actions should be thought of to
manage the grievance. The effect of each course of action on the existing and future management policies and
procedure should be analyzed and accordingly decision should be taken by the manager.

6. Execution and review- The manager should execute the decision quickly, ignoring the fact, that it may or may
not hurt the employees concerned. After implementing the decision, a follow-up must be there to ensure that the
grievance has been resolved completely and adequately.

MATERIALS MANAGEMENT
Introduction:

Materials management plays a very significant role in controlling the costs and reducing the wastage, particularly,
in a manufacturing industry.

Materials refer to inputs into the production process, most of which are embodied in the finished goods being
manufactured. It may be raw materials, work-in-progress, finished goods, spare parts and components, operating
supplies such as lubricating oil, cleaning materials, and others required for maintenance and repairs.
Definition:
Materials management is the process of planning, organizing and controlling the materials in a given organization.
Among some government organizations, it is better known as supply management.
Material management as the management of the flow of materials in to an organization to the point, where, those
materials are converted in to the firm’s end product.
Objectives of material management: The objectives of material management are as follows.
1: Material selection: material selection includes correct specification of material. Material requirements are
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decided with the help of sales programme. The standardization of raw material ensures lower cost and ease in
procurement, replacement etc.
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2: Low cost: purchase of material required quality at reasonable cost is of greater importance. Slight saving per unit
cost of material can improve total profitability.

3: Receiving and controlling of material: Receiving and controlling of material in good condition is very important.
When material is received it is checked in terms of quality and quantity. Then it is stored at proper location so that
it can be issued immediately whenever necessary.

4: Issue of material: whenever there is requisition of material, it is immediately issued to the concerned
department.

5: Continuous supply: uninterrupted flow of material is necessary for smooth production. In uncertainties in
market can create shortage of material in the market if materials department has good relations with the suppliers,
in shortages suppliers can make materi8al available on priority to the company.

6. Cordial and good relations with suppliers : there are various benefits of having good and cordial relations with
suppliers they inform about probable shortage of materials, new materials and new substitutes etc. suppliers can
offer greater credit period in situations of financial crisis.

7. New materials in product: material department should always in search of new materials good relation with
suppliers helps to get information about new materials.

8. Maintaining safety stock: safety stock of raw materials, parts and finished goods is maintained to absorb
uncertainties and supply of material and demand for finished products .if demand for products excess this safety
stock can be used.

9. Purchasing at competitive prices: materials department try to purchase best quality items at competitive prices
this needs constant contacts with suppliers and market. material manager should always be in search of new
source of supply new materials.

10. Inventory control: inventory control is absolutely necessary proper steps are taken to reduce inventory level
are over stocking. Inventory is properly maintained to reduce damages brekage, deterioration of material.

INVENTORY MANAGEMENT

Meaning of inventory:

Inventory refers to all the physical stocks, which have economic value. It covers the items i.e. own stores, in
addition to the materials in transit and materials in process.

Need for inventory:

 Un interrupted supply of materials.
 Optimal stock (not too much, not too little).
 Adequate control over materials used, un-used.
Definition of Inventory control:

Inventory control is defined as “the scientific method of providing the right type of material at the right time in the
right quantities and at right place to sustain the given production schedules”. Inventory control is essentially
concerned with two aspects:
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 Minimizing investments for the organization in the materials, and

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 Maximizing the service levels to the customers and its own operating departments.
Need for inventory control:
It is an established fact that through the practice of scientific inventory control, the stocks can be reduced any
where between 10 to 40 %. The need for inventory control in the organizations is mainly due to the benefits
derived such as:
 Reduction in investment on inventory.
 Proper and efficient use of raw materials.
 Ensures against scarcity of materials in the market.
 No interruption in production.
 Avoids over stocking.
 Eliminates the possibility of duplicate stocking.
 Economy in purchasing.
 Helps in minimizing loss due to deterioration, obsolescence and damage.
Functions of inventory control:
 Ensures availability of raw material continuously with out causing any disturbance to the production
process.
 Manages stores of the organization effectively.
 Effective Stock control system: it includes physical verification, proper record maintenance of stored raw
materials, ordering policies & procedures for the purchase of the goods.
 Inventory is required to meet the anticipated demand of the company.
Inventory control tools and techniques:
 EOQ – Economic order quantity.
 ABC – Analysis (Always better control).
 Purchase Procedure
 Stores and Store records.
ECONOMIC ORDER QUANTITY (EOQ)
Economic order quantity is defined as that quantity of material, which can be ordered at one time to minimize the
cost of ordering and carrying the stocks. In other words, it refers to the size of each order that keeps the total cost
low.

Given the annual demand, the cost of acquisition, and carrying costs, what should be the size of each order? This is
EOQ. This concept is explained below:

Inventory costs:

The inventory costs can be classified into two categories: inventory ordering costs and inventory carrying costs.

Inventory ordering costs refer to the costs incurred to procure the materials. Particularly in large organizations,
these costs are significant. Several departments such as purchasing and stores department, engineering
department, computing department, and others, are associated with the procurement of inventory. It costs a lot to
maintain these departments in terms of wages and salaries, other operating expenses such as stationery and
supplies, and the cost of services such as computer time, telephone, fax, and so on.
14

Inventory carrying costs include insurance costs, property taxes (such as corporate tax for a storage premises etc.),
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storage costs, cost of obsolescence and deterioration, and the opportunity costs of invested funds. Normally, all
these work out to 20 to 30 percent of the total value of inventory. Carrying costs per year are computed as a
percentage of average inventory value. The more the inventory is, the more the inventory carrying costs.

The special feature of inventory costs is that they do not depend upon the volume of inventory. They are the
function of the number of orders placed during a given time period. The more the number of orders, the more are
the procurement costs.

Graphical representation of EOQ: Total cost (TC)

Carrying cost (C)

Annual cost

Order cost (O)

EOQ Order quantity.

Determining the Economic Order Quantity:

Given the annual requirement of inventory, the question-what should be the size of each order?-is best addressed
by the economic order quantity. The economic order quantity is that quantity of the order, which minimizes the
related material costs, the ordering costs, and the carrying costs. Consider that the sum of ordering costs and
carrying costs is the total cost. EOQ is that order quantity at which the total cost is minimum. This is graphically
represented in figure as shown below

EOQ can be determined by the algebraic method also

Algebraic method of determining method of EOQ : Let us determined by the EOQ variables as below
A=Annual demand
S=size of each order (units per orders)
O=ordering cost per unit
C=carrying cost per unit
Step-I: find out the total ordering cost per year

Total ordering cost per year= number of orders placed year X Ordering cost per order.
15

= A/S XO
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Step- II: Find out the total carrying cost per year.
Total carrying cost per year= average inventory level X Carrying cost per year.

= S/2 X O

Step- III: Determining economic order quantity (EOQ).

A/S X O = S/2 X C

2AO = S square C

S square = 2AO / C

S = square root of 2AO / C.

Here, we assume that the material prices and transportation costs are constant for a given range of order
quantities. In other words, the quantity discounts, which are normally available for large size orders, are not
considered here.

A-B-C ANALYSIS
A-B-C analysis is an American terminology for selective control or selective or split inventory management or
proportional value analysis. It is the basic technique of materials management and is the commencing event.
annual consumption if itemized in rupee value consideration we find that ground 10% of the items are
contributing for about 70% of total annual consumption cost. Around 20% will account for 25% of annual
consumption cost while balance of 70% will embrace only 5-10% of that cost. The small number of high
consumption value items is called as A items. The medium consumptions value items are B items while large
number of items whose annual consumption value is very low is C items.

The following table summarises the concept of ABC analysis.

Category Value (%) Volume (%) Desired degree of control

A 70 10 Strict
B 20 20 Moderate
C 10 70 Low

The purpose of A-B-C analysis must by now be quite clear. It is to separate predominant few from the point of
view annual consumption value. The methodological and systematic approach by A-B-C analysis will assist to have
more or less equal attention to all items. In the absence of which; control will be too diffused and desultory to
remain efficient .Selective inventory control is the other name of A-B-C analysis. The estimate of requirement of A
items should be worked out more precisely. Critically on activities such as scheduling, safety stock receiving and
inspection be examined for a type of items .This pace substantial dividends way of reduced costs.
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 100

90

80 Low value High volume

70 Class C Items.
60 Mid value

50 mid

High value 40 Volume

Low volume 30 Class B

Class A items 20

10

0 10 20 30 40 50 60 70 80 90 100

Here ‘A’ refers to high value items.

‘B’ refers to medium items.
‘C’ refers to low value items.

A-B-C analysis is also symbolical of ALWAYS BETER CONTROL and HML for high, medium and low value. To
counteract the limitations; vital, essential and desirable analysis should be computed together.

PURCHASE PROCEDURE
When we produce any product, investment in raw material is of 50% to 60% of the total cost of product. So, it is
very necessary to buy the raw material at low cost. If we reduce the 10% cost of buying of raw material, it means,
we have increased our 10% profit. Purchase department will make full planning of his purchase. Everything should
be planned. What to buy, when to buy and how to buy? By using following material purchase procedure, you can
reduce your cost of buying any material.

1. Classification of Material
In the first step of purchasing procedure, purchase department will classify all the its material according to the
nature of material. For example, we can classify our material with following way.
a) Raw material
b) Machine and Equipment
c) Tool & d) Other Material
2. Recognition of Need
Purchase department studies the purchase requisition which it gets from different department.
Purchase requisition is the document which shows the demand of material of any department. It makes the list of
important material requirement. Suppose, C material is very limited, purchase department will buy C material first
17

instead of buying other material.

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3. Specification of Required Material
Every department will make the specification of required material. This will be helpful for purchase department to
identify that material. Because some material is of technical configuration, so, its detail should be given to purchase
department. For things should be included in it.

i) Date
ii) Identification
iii) Originating Department
iv) Account to be Charged
v) Complete Description relating to quality and quantity of material desired
vi) Other Special Information
vii ) Date on which material is required for use
viii) Signature of issuing authority of requisition
We also say purchase requisition as purchase requirement list or purchase indent.

4. Inviting Tenders and Quotations

For saving money and placing the order to best vendor, purchase department will invite the quotations and
tenders. This work can be done through offline and online advertising. Tender may be open, limited, oral.

a) Opening of Tenders
Tender is opening at a specific date, time and at specific place.

b) Preparation of Summary of Quotations

After receiving the tenders from different seller, a comparative statement is made in which prices and conditions
are compared. Best vendor will be selected for supply.

5. Selection of Source
There is the big source of suppliers. But purchase department has to be limited this on the basis of following point.

a) On the basis of financial resource: Purchase department will see his pocket before selecting the source.
b) Service after buying: Purchase department will choose that supplier which provide the service after buying.
c) On the basis of sample: Purchase department will get the sample for selecting the source of supplier.

6. Placing of Order
When the tender and source of supplier is selected, purchase department places his purchase order. Purchase
order is the written agreement in which purchaser and sellers will bind its terms and condition. Purchaser will be
responsible the price of material. Seller is responsible for supplying the material.

7. Follow Up Service
After placing the order, purchase officer will send the reminder. He can also get the written promise from vendor
for supplying goods at a specific time.

8. Receipt and Checking of Invoice

It is the duty of accountant to receipt and checking of invoice. He will compare it with the original copy of purchase
order. If there is any mistake, he will inform the purchase department. Only after confirmation from purchase
department, payment will be made by cashier.

9. Receipt and Checking of Goods

After getting goods, purchase department will check the quality and quantity of material which has been
18

mentioned in the purchase order. With this, we see whether everything is OK or not. After this receipt material's
report will be made. With this, technical inspection is also necessary.
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10. Completion of Record
To record relating to purchase is done by accounts department. If there is VAT and excise obligations, accounts
department will complete.
STORES AND STORE RECORDS

A storehouse is a building provided for preserving materials, stores and finished goods. The in-charge of store is
called storekeeper or stores manager.

Objectives of storekeeping:

1. To ensure uninterrupted supply of materials and stores without delay to various production and service
departments of the organisation.

2. To prevent overstocking and understocking of materials,

3. To protect materials from pilferage, theft fire and other risks.

4. To minimise the storage costs.

5. To ensure proper and continuous control over materials.

6. To ensure most effective utilisation of available storage space and workers engaged in the process of
storekeeping.

Functions of Storekeeping:

In the light of above objects, the functions performed by the stores department are outlined below:

1. Issuing purchase requisitions to Purchase Department as and when necessity for materials in stores arises.
2. Receiving purchased materials from the purchase department and to confirm their quality and quantity with the
purchase order.
3. Storing and preserving materials at proper and convenient places so that items could be easily located.
4. Storing the materials in such a manner so as to minimise the occurrence of risks and to prevent losses due to
defective storage handling.
5. Issuing materials to various departments against material requisition slips duly authorized by the respective
departmental heads.
6. Undertaking a proper system of inventory control, taking up physical inventory of all stores at periodical intervals
and also to maintain proper records of inventory.
7. Providing full information about the availability of materials and goods etc., whenever so necessary by
maintaining proper stores records with the help of bin cards and stores ledger etc.
19
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 MARKETING MANAGEMENT

Introduction:
Marketing is an essential function of a modern organization whether it deals in products or services. In other
words, marketing constitutes an essential function of modern business organizations to ensure that demand for a
product or service persists along with customer retention. It has become vital ingredient in the success of a
business.
Market:
Market is a place where buyers and sellers gather to exchange goods and services.

Definition of Marketing:

Marketing is the performance of business activity that direct the flow of goods and services from production centre
to consumption centre.
- American Marketing Association.
Marketing as societal process by which individuals and groups obtain what they need and want through creating,
offering and freely exchanging products and services of value with others.
-Philip Kotler
Objectives of marketing:
 Ensuring profit to the manufacturers.
 Providing satisfaction to the consumers.
 To provide best solutions for the marketing problems.
 To develop the guiding policies and their implementation for good results.
 To review existing marketing functions.
MARKETING CONCEPT:
The marketing concept is the way of life in which all the resources of an organization are mobilized to create,
stimulate and satisfy the consumer at a profit. Here mainly we have to know about two concepts namely: i) The
selling concept. ii) The marketing concept.
The selling concept:
Selling refers to the act of transferring the ownership of the goods and services from the seller to buyer. Selling is
the term applied to the process of distributing goods from producer to consumer. It is a function of marketing. The
selling concept is practiced most aggressively with unsought goods, goods that buyers normally don’t think of
buying such as insurance, encyclopedia etc.
Most of the firms practice the selling concept when they have over capacity. Their aim is to sell what they make
rather than make what they market wants.
20

The marketing concept:

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The marketing concept holds that key to achieve its organizational goals consists of the company being more
effective and efficient in determining the needs, wants, interests of the target markets and delivering the desired
satisfactions than the competitors. It is a customer centric approach which focuses on customer needs and wants
and not on the product. “Marketing starts and ends with the customer only the concept is shown in the diagram.
Starting point Focus Means Ends

Market Customer needs Integrated marketing Profits through

Customer satisfaction

The marketing concept

The marketing concept resets on 4 pillars.
Target market: Companies do best when they choose their target markets carefully and prepare marketing
programmes according to their target market.
Customer needs: Understanding customer needs and wants is not always simple. It is important to satisfy target
customer because each company’s sales each period come from two groups, new customer and repeat customers.
Customer retention is more important than customer attraction.
Integrated marketing: When all departments in the company work together to serve the customers interests, the
result is integrated marketing. All the different functions of business must be tightly integrated with one another
because every function has a bearing on the customer and all the functions make profitable impact on customer.
Profitability: The ultimate purpose of the marketing concept is to help organizations achieve their objectives. Any
company major objective is profit whether it is private company or in the case of non private company. A company
makes money by satisfying customer needs better than its competitors.
Benefits of the marketing:
 Marketing concept benefits the organization:
The practice of the concept brings substantial benefits to the organization that practices. Any organization which
practices the concepts of marketing audit, market research and consumer testing, it can easily faces any changes
regarding the buyer behavior, and capable to provide the satisfaction to the customers then automatically the
organization benefited.
 Marketing concept benefits the Consumer:
The consumer is in fact the major beneficiary of the marketing concept. the attempts of various computing firms to
satisfy the consumer put him in an enviable position. The concept prompts the producers to constantly improve
their products and to launch totally new products it is more beneficiary to consumers.
 Marketing concepts benefits the society:
The concept guarantees that only products that are required by the consumers are produced and thereby it
21

ensures that the societies economic resources or channelized in the right direction. It also makes economic
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planning more meaningful and relevant to the life of the people.

 CHANNELS OF DISTRIBUTION
Meaning: Distribution Channels are the paths that goods and title to them follow from producer to consumer. They
are the means by which all organization distribute the goods and services they are producing and marketing.
Definition:
According to Philip Kotler- “A channel of distribution is a set of independent organization involved in the process of
marketing a product or service available for use or consumption.
Factors Affecting the Choice of Channel of Distribution:
There are several factors that affect the choice of a channel. Some of the factors are listed below.
The nature of company’s business: choose the channel according to the nature of business activity such as
agricultural products, industrial products, and soon.
The type of product sold: The goods may be consumer goods (such as bread), consumer durable goods (TV or
refrigerator), or producer or industrial goods (engines, bearings), and others.
The price of unit of sale: If the price of one unit is as high as that of an aeroplane, the producer can contact the
consumer directly.
The profit margins and mark-ups: These, together with the extent of the seller’s product line, play a role in
attracting distributors to handle the goods.
Degree of competition: If the competition is intense, the manufacturer has to arrange for even door-to-door selling
or retail outlets such as automatic vending machines at prominent, busy, and crowded places.

LEVELS/TYPES OF CHANNELS
There are mainly two types of distribution channels namely
i) Direct Market Channel ii) Indirect Market Channel
Direct Market Channel:
Direct Market Channel is the simplest and shortest channel through which goods reach the ultimate consumer
without the services of middlemen and it is highly applicable in the case of industrial goods.
Ex: Amway Co. (Zero Level Channels)

0 Level Channel

Producer Consumer

Zero Level Channel

22
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Indirect Marketing Channels:
In this channel the manufacturer doesn’t sell the goods directly to the consumer. He sells goods to the middlemen,
the middle men sells goods to consumers. Various types of indirect marketing channels are in the distribution
network they are as follows:
i) One- Level Channel: As can be seen from figure in this type of channel there is only one intermediary between
producer and consumer. This intermediary may be a retailer or a wholesaler/distributor. This type of channel is
used for specialty products like washing machines. Refrigerators, televisions typewriters, and electric fans etc..,

One- Level channel

Producer Wholesaler / Distributor Consumer

ii) Two Level Channel: This type of channel has

Producer two intermediaries, namely, wholesaler/distributor
Retailer Consumer and retailer
between producer and consumer. Under this method, the producer sells the goods to the wholesaler, who in turn,
sells to the retailers. The retailers in turn sell the goods to the ultimate consumers. This channel is used for
consumer durable products.

Two- Level Channel

Producer Wholesaler / Distributor Retailer Consumer

iii) Three-Level Channel: As shown in the figure this type of channel has three intermediaries namely distributor,
wholesaler and retailer. In this method, the producer sells his goods to the distributors who sell them to the
wholesalers who in turn sell them to the retailers and the retailers sell them to the consumers. This pattern is used
for convenience products.

Three – Level Channel

Producer Distributor Wholesaler Retailer Consumer

iv) Four –Level Channel: This type of channel has four intermediaries, namely agent, distributor, wholesaler and
retailer. This type of channel is used for consumer durable products. This type of channel is very popular in
agricultural marketing and it is the longest route of distribution.

Four – Level Channel

23
Page

Producer Agent Distributor Wholesaler Retailer Consumer

UNIT – III

1. Explain the functions of HR Manager in brief. CO-3,BL-2,10M

2. What do you mean by recruitment? Explain the sources of recruitment. CO-3,BL-1,10M
3. What is the purpose of Training? Explain the different Training Methods? CO-3,BL-2,10M
4. Explain Manpower Planning process with a neat flowchart. CO-3,BL-2,10M
5. What is meant by selection? Explain and evaluate the selection process. CO-3,BL-2,10M
6. What is performance appraisal. Expiain its methods. CO-3,BL-2,10M
7. What is meant by grievance handling? What are the steps involved in handling a
Grievance? CO-3,BL-1,10M

8. Write short notes on (a)placement CO-3,BL-1,2M (b) induction CO-3,BL-1,2M (c) wage and salary CO-3,BL-
1,2M (d) Job evaluation . CO-3,BL-1,3M
9. UNIT-III
10. 1. Define HRM.
11. A) HRM is the art of procuring, developing, and maintaining competent work force to achieve the goals of
an organization is an organization is an effective and efficient manner.
12. 2. Define HRP.
13. A) Human resources planning is a process that identifies current and future human resources needs for an
organization to achieve its goals. Human resources planning should serve as a link between human
resources management and the overall strategic plan of an organization.
14. 3)What are the internal sources of recruitment?
15. A) (a) Internal Sources:
16. 1. Transfers
17. 2. Promotions
18. 3. Present Employees
19.
20. 4. Define Training & Development
21. A) Training & Development is any attempt to improve current or future employee performance by
increasing an employee's ability to perform through learning, usually by changing the employee's attitude
or increasing his or her skills and knowledge.
22.
23. 5. Whatis PERFORMANCE APPRAISAL?
24. A) It is the process of evaluating the relative merit of the person on a given job. It is an essential task of the
personnel manager to distinguish the meritorious employees from the others. The data collected from this
task is used for strategic decisions such as releasing an increment in pay, promotion, transfer, transfer on
promotion to a critical assignment, or even discharge.
24

25. 6) What is time and piece wage systems?

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26. A) 1. Time Wage System or Time Rate System: under this system, laborers get wage on the basis of time
which is utilized in organization. This wages may be charged on per hour, per day, per month or per year
basis. There is no relation or quantity of output and wages in this method. In India's industry, this method is
most popular. Its other name is day wages system or time wok system.
27. 2. Piece Wage System or Work Rate System: under this method or system, laborers can get the wages on
the basis of their work done. No time element will be used for calculation of wages. Rate is also on the
basis of quantity or unit produced. Under this, method, laborer tries to best for producing the products
fastly for getting more wages.
28.
29.
30. 7) What is Grievance?
31. A)Grievance may be any genuine or imaginary feeling of dissatisfaction or injustice which an employee
experiences about his job and it’s nature, about the management policies and procedures. It must be
expressed by the employee and brought to the notice of the management and the organization.
32. 8. Define recruitment .
33. A) Recruitment : It is a process of searching for prospective employees and stimulating and encouraging
them to apply for jobs in an organisation.
34.
35. 9. What are the on-the -job methods?
36. A) . On-the-job training Methods:
37. Under these methods new or inexperienced employees learn through observing peers or managers
performing the job and trying to imitate their behaviour. Some of the commonly used methods are:
38. 1. Coaching
39. 2. Mentoring
40. 3. Job Rotation
41. 4. Job Instructional Technique (JIT)
42. 5. Apprenticeship
43. 6. Understudy
44.
45. 10. What are the off-the -job methods?
46. A). Important methods include:
47. 1. Lectures and Conferences
48. 2. Vestibule Training
49. 3. Simulation Exercises
50. (a) Management Games.
51. (b) Case Study.
52. (c) Role Playing
53. (d) In-basket training
54. 4. Sensitivity Training:
55.
56. 11.Write any three methods of performance appraisal.
57. Ans) 1. 360 Degree Appraisal
25

58. 2.Ranking method

59. 3.checklist method.
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60. 12. Explain the concept of job evaluation.

61. A) Job evaluation is the technique of assessing systematically the relative worth (in monetary terms) of
eachjob. It provides valuable insights into certain questions such as why the chief executive is paid the
highest, why the production supervisor in the shop floor is paid lesser, and so on.
62. 13. Define salary.
63. A)Salary: salary is employee compensation calculated weekly, monthly, or annual basis. It is usually paid to
white-collar workers such as office personnel, executives and professional employees.
64. 14. Define selection.
65. A) Selection: Selection is a process of choosing right person for the right job
66.
67. 15. Define wage.
68. A) Wage: It is the payment for the use of effort, which may be physical or manual. It includes both financial
and non-financial payments.
69. 16. What are the on-the -job methods?
70. A) On-the- job training Methods:
71. Some of the commonly used methods are:
72. 1. Coaching
73. 2. Mentoring
74. 3. Job Rotation
75. 4. Job Instructional Technique (JIT)
76. 5. Apprenticeship
77. 6. Understudy
78.
79. 17. What are the external sources of recruitment?
80. A) External Sources:
81. 1. Advertisement
82. 2. Employment Exchanges
83. 3. Schools, Colleges and Universities
84. 4. Recommendation of Existing Employees
85. 5. Labour Unions
86. 6. Labour Contractors
87.
88. 18. What is induction?
89. A)The main idea of this function is to share the information about the facts of the company with the new
employee so that he feels proud of his association with the company. At the time of getting inducted in to
the organization, the personnel manager provides orientation to the new employees about the profile of
the organization, its business, its departments and their job.
90. 19. Define placement.
91. A) After training the employee is placed in his/her position under the change of a manager. The new recruit
is allowed to exercise full authority and is held responsible for the results.
92. 20. What are the steps involved in HRP?
93. A) Six steps in human resource planning are:
94. 1. Analysing Organizational Objectives
95. 2. Inventory of Present Human Resources
26

96. 3. Forecasting Demand and Supply of Human Resource

97. 4. Estimating Manpower Gaps
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98. 5. Formulating the Human Resource Action plan

 99. 6.Monitoring, control and feedback

UNIT – III

1. What is a strategically driven process? ( )

A) HRD B) PM & IR C) HRM D) CRM
2. Who focused on compensation, integration and maintenance of people in the organization? ( )
A) Peter F Drucker B) Flippo C) Pigours & Myres D) Pyle
3. Who defined personnel mgt as a method of developing the employee potential? ( )
A) Clark & Clark B) MB Athreya C) Pigours & Myres D) Philip Kotler
4. What is an expression of the values and beliefs of the organisation? ( )
A) Induction B) Personnel Policy C) Recruitment D) Service
5. What states how the employees should behave conduct themselves in the organisation? ( )
A) Resources policy B) Finance policy C) Personnel policy D) Technology policy
6. What refers to the process of identifying the tasks comprising a particular job to assess whether they could be
organized in a productive manner? ( )
A) Job description B) Job analysis C) Job specification D) Job
7. What refers to the identification of the requirements on the part of the person to perform the given Job? (
)
A) Job specification B) Job analysis C) Job description D) Job design
8. Which of the following is not a strategy involved in manpower planning? ( )
A) Succession Strategy B) Performance strategy C) Recruitment Strategy
D) Staff development strategy
9. What sets forth the requirement sought in the person who is o perform the work? ( )
A) Job analysis B) Job specification C) Job description D) Job design
10. What considers the contingency arrangement in the event of non availability of the right candidates? ( )
A) Succession Strategy B) Performance strategy C) Recruitment Strategy
D) Staff development strategy
11. What refers to the relations between the employees and management? ( )
a. HRD B. personnel management c. industrial relations d. HRM

12. The process of formulating a personnel program, which is determined in advance, is called ( )
a. planning b. organization c. directing d. controlling

13. What is not function of a personnel manager? ( )

a. develop vision b. develop objectives c. develop cultures d. advise line manager
approximately
14. What is not a necessity of HRD? ( )
a. make organizational dynamics growth oriented b. make industrial policies
c. succeed in a fast changing environment d. make personnel policies

15. Which of the following is not a content of job description? ( )

a. job title b. personnel manager c. main objective d. what authority one has

16. Which one of the following is not a reason for labor turnover? ( )
a. resignation b. discharges c. layoffs d. promotions

17. Which of the following is not a stage in the recruitment strategy? ( )

a. Advertising the vacancy position b. screening the applications

b. Conducting the interview d. dismissing the employee
27

18. Which of the following relates to’on-the-job training’? ( )

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a. demonstration b. conferences c. seminars d. case study

19. Which of the following is a financial incentive? ( )
a. stock options b. job security c. flexi-time d. job rotation

20. Which of the following is a non- financial incentive? ( )

a. stock options b. performance linked pay c. flexi-time d. group bonus

UNIT – 3
1. C 6 B 11 C 16 D

2. B 7 A 12 A 17 D

3. C 8 B 13 B 18 A

4. B 9 B 14 B 19 A

5 C 10 C 15 B 20 C

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