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Master of Business Administration-MBA Semester I Subject Code MB0043 Subject Name Human Resource Management 4 Credits (Book ID:

D: B1132) Assignment Set- 1 (60 Marks)

Note: Each question carries 10 Marks. Answer all the questions. Q1. Write down the difference between Personnel management and Human Resource management.[10 Marks] A1. Personnel Management is that management that deals with the control and reactive problem solving approach to resolve employee issues in a organizations. The philosophy for the PM approach is classified into two types of theorys. Theory X & Theory Y Theory X is believed that people who do not naturally like to work and need to be pushed to do work. It is commonly or generally known as the Stick approach, rules of dos and donts exist and these provide the framework for employees behaviour at the work place. Employee welfare and formal grievance systems play a significant role here and there by managing industrial relations with high amount of trade union activity are highlighted. HRM is clearly based on the foundation of behavioural science knowledge relating to the handling of employees to motivate organizational goals. The focus is more proactive and pays attentions to employee satisfaction and delight. Business goals and objectives and the strategies that will enable this to happen are the foundation for the HRM.The basic philosophy is driven by the Theory Y approach where the belief is that people like to work and do not prefer to be supervised and made to perform. The employee becomes a champion for the organization and its product/service.

HRM EMPHASIZES on training as an important area of people management which covers the below. 1) Increasing productivity. 2) Improving quality 3) Improving organisational climate 4) Ensuring personnel growth. Q2. Write a note on scope of HR in India. [10 Marks] A2. The scope of HRM is very wide: 1. Personnel aspect-This is concerned with manpower planning, recruitment, selection, placement, transfer, promotion, training and development, layoff and retrenchment, remuneration, incentives, productivity etc. 2. Welfare aspect-It deals with working conditions and amenities such as canteens, crches, rest and lunch rooms, housing, transport, medical assistance, education, health and safety, recreation facilities, etc. 3. Industrial relations aspect-This covers union-management relations, joint consultation, collective bargaining, grievance and disciplinary procedures, settlement of disputes, etc. Since there is a fast growth from the past 10-12 years in our IT industry and MNCs started up their operations in India, The FDI went up steeply as it saw the potential in the countrys human resources; As India became a proffered location for the MNCs which was followed by other developed countries. It was natural for the MNCs who set up their operations in India to establish their existing and proven management practices that were successfully working in the organizations which helped them to manage their business smoothly. HRM practices gave a new scopes, by new hiring methods such as new ways of paying salaries new employment terms and mostly importantly increased focus on individuals performance and outcomes. There was emphasis on deliverables and team performance to business results and success. It also focussed on ethics and ethical practices in the business. Which helped the professional managers of getting the work done.

The levers for low cost, highly skilled and English medium of education and it being the corporate language were the key drivers that enabled the flow of global business in India, since there was a rapid growth in employment directly (both domestic and international)as well as indirectly as support industries like transport, catering and ancillary industries. The investment of the government in the infrastructure and its share of providing impetus towards creating more jobs for the people of the country. once the people who were abroad(Foreign people)who were more specialised in their countries who come to India who brought some more inputs and formalities into the system which helped to the management of work and labour to make it more streamlined and professional.

Q3.Explain the critical steps in Human Resource planning system? A3. The steps in the HRP process is a systematic set of activities carried out in a chronological manner. Each step needs to be evaluated and debated with all possible information gathered from the external as well as internal environment. Identifying the purpose for Human Resource Planning

Estimating/Forecasting the future Manpower Requirements

Auditing Human Resources Job Analysis

Figure : Human Resource Planning System

Developing a Human Resource Plan

The critical steps that are part of the Human resource planning system are Purpose of Human Resource Planning .

Estimating/Forecasting the future Manpower Requirements. Auditing Human Resources . Job Analysis. Developing a Human Resource Plan . a) Purpose of Human Resource Planning: o Human Resource Planning fulfils individual as well as organizational goals. o Essentially amounts to is striking a balance between the future human resources needs and the future enterprise needs. o Done with the clear objective of maximizing the future return on investment in human resources. o Objective may be laid down for a short-term. b) Estimating/Forecasting the future Manpower Requirements: o The process is to arrive at the desired organizational structure at a given point in time. o Mapping this structure with the existing structure helps in identifying the gap in resources requirement. o The number and type of employees needed have to be determined. o The structure and external factors that affect the determination is: Include business forecasts. Competitor strategy. Expansion plan.

Product/skills mix changes. Profit/revenue growth projections. o The management philosophy and government policies includes an analysis of the external labour/talent environment, its demographics, demand/supply of the required talent, and cost considerations. o Forecasting provides the basic premises on which manpower planning is done. o Forecasting is necessary for various reasons, such as: a) The challenges of the general economic business cycles have an influence on the short-range and long-run plans of all organizations. These are inflation, wages, prices, costs and raw material supplies. b) An expansion / growth initiative might need the business to use additional machinery and personnel, and a re-allocation of facilities, all of which call for adequate advance planning of human resources. c) Changes in management philosophies and top management leadership styles. d) The use of new technology (such as the introduction of automatic controls, or the mechanization of materials handling functions) requiring a change in the skills of workers, as well as a change in the number of employees needed. e) Very often, changes in the quantity or quality of products or services require a change in the organization structure. Plans have to be made for this purpose as well. c) Auditing Human Resources: o Is to determine the present supply of manpower resources done through "Skills Inventory".

o A skills inventory contains data about each employee's skills, abilities, work preferences and other items of information which indicate his worth to the company. o Skills inventory are also referred to as competency dictionaries. o Information is usually retained as part of the performance management system with the HR department. o In the HRP system helps identify the existing profile of the manpower and its efficiency. o HRP helps highlight where the organization is vs. where it ought to be. The step concludes with identifying clear gaps in the skills / manpower mix required to meet the upcoming business objectives. d)Job Analysis: o After having decided how many persons would be needed, it is necessary to prepare a job analysis. o The recorded details of training, skills, qualification, abilities, experience and responsibilities, etc. as needed for a job are studied. Job analysis includes the preparation of job descriptions and job specifications.

e) Developing a Human Resource Plan: o Refers to the development and implementation of the human resource plan, which consists in finding out the sources of labour supply with a view to making an effective use of these sources. o Some important considerations at this point are: Specific roles/disciplines being hired for, of them which roles are pivotal for the business . Competencies and capabilities needed. Manager vs. employee hiring . Hire internally vs. External sourcing.

Planning for new skills through training existing staff vs. hiring new teams. In case of surpluses, planning for redeployment / reduction in workforce as required . Succession planning for key positions in the company.

Q4. With reference to the compensation and salary system what are the systems that are helpful to raise the effectiveness of employees. [10 Marks] A4. Compensation/Salary systems are one of the key aspects which will helps to gain motivation in the employee that he thinks that he will be rewarded in the organisation for which whom is working for his skills and knowledge required for doing a specific job. The below mentioned factors are helpful to raise the effectiveness of the employees. Signal to the employee the major objectives of the organisations: This must link to the overall goals and objectives of the company. If a person is doing a quality job is critical for the company its compensation system has to ensure that is adequately rewarded, or else if the company values productivity and units produced the compensation system would be designed such a that productivity is rewarded. Attract /Motivation/Effectiveness/and retain the talent an organization needs: This is one the major and one of the important aspect where the company has to think and be a quite liberal to pay a good salary to the employee if he is talented and the company thinks that he is worth for that particular job, In case if any company pays less than the what other organisations are offering for the same job, naturally it may lose the right and a talented person who may be suitable for that job, so it is always a better part of this aspect where the organisation will have to think twice and have an idea of how much other companys are paying for that position appx so that his company matches the compensation to the market rate or with a marginal increase to compensation apart from the market rate helps to retain the right person for the right Job which will also increase the productivity and

efficiency in the employee to work more with his new ideas and new explorations where his ideas can be used to the growth of the company. Since Money is the key motivator in this world to lead our lives it is the most common and basic motivator for most of the employees, therefore ensuring that compensation is appropriately given to the employee while designing the compensation system. Jobs in the brick and motor, production setups would focus on higher incentive policies that would motivate the employee to produce more while the base salary would be low. Create the type of culture the company seeks to engender: Compensations systems play a critical role as sponsors for the organizations culture. A performance driven culture would build compensation policies that clearly and significantly reward performance. A company that rewards loyalty would reward employees who stay longer in the company with significantly better incentive programs. These are the few thing which will help to raise the effectiveness of the employees in any organization.

Q5. What is competency? How it can be linked to the HR system? [10 Marks] A5. Competence is the ability of an individual and his individual capacity to perform a job properly which the job demands within the parameters of the organization and in turn bring the desired results to the company .Competence is a combination of knowledge, skills and behaviour used to improve performance; or as the state or quality of being adequately or well qualified, having the ability to perform a specific role. Competency tag can be only given to the person who performs his job to the best which in turn who have met the expectations or more than the expectations of the organizations. Knowledge is that the person who has in his basket which he would have studied or have a good sense of accumulated knowledge in his particular area of subject, SkillThe accumulated knowledge in his basket who will demonstrate to the max level, MotiveThis is one which drives his behaviour, Attitude, self concept, value and self image, Traits-A general disposition to behave in a particular way.

In emergencies, competent people may react to a situation following behaviours they have previously found to succeed. To be competent a person would need to be able to interpret the situation in the context and to have a repertoire of possible actions to take and have trained in the possible actions in the repertoire, if this is relevant. Regardless of training, competency would grow through experience and the extent of an individual to learn and adapt. Competencency is the usage to build all other system such as recruitment, performance management, training and development, career development, compensation management and succession planning. Recruitment-Here the job description and the candidates profile will be shared to the employer or the recruitment consultant as well will be hosted on the company web sites for prospective applicants to view & use the competencies to design the appropriate selection test and other methods, assessment form for the interviewers to contain the competency list and specify the desired proficiency levels. Performance Management-Here the employees performance is assessed on the core tasks and results as well as on the compensations required for the job he is doing, If any gaps found and, if the company feels that the person requires and reviewed for development initiatives to improve the competency and it the employee has competencies above the desired proficiency talent then hi will given for other roles and higher responsibilities Training-If any gaps found in between the desired and his currently proficiency here the organizations arrange for suitable training for improvement in usually action learning which indeed will help to increase the ability in the employee and also indeed helps the organization to fulfil its need by filling the gaps by giving training to is employees. Career Planning-Here assessments are popularly used for helping an employee discover his strength and therefore serve as effective means for the employee to identify what role or jobs will be best suitable for him which in term planning and assessments and activities are built on enhancing the employees strength areas and indentifying jobs that match the strengths. Compensation management-This is a framework providing a common benchmark of all jobs across the organisation on the competencies required and the proficiency level for the competency, this framework is mapped to levels or grades that create

a job to level mapping the levels have ranges of compensation that can be paid for any job at a specific level. here one more aspect is that the company would have given a slab(Min/Max) for each level of herieachy to fix the competent salary in their department, any way a new employee who takes up a job should not be paid less than the minimum specified for this job, any employee doing to his best of his performance and is recognised from the organization and been in the role close to 3 years should be matched to a salary closer to the maximum level. Succession Planning-Competency based management is most effective in succession planning initiatives which is widely used to identify and nurture talent in organizations. Most succession planning decisions use the competency data for the employee and this along with the cater planning date are used to ascertain employee readiness and inclination for new roles and responsibilities in the critical roles identified for succession planning. Q6. Dynamic Learning is an organization that wants to revise the HR policies. It has conducted a survey and the results of survey indicated that r=there is employee unrest, tardiness, absenteeism, more grievances. This all clearly indicates low morale. Suggest the measures that can be taken to improve employee morale. [10 Marks] A6. These are some of the positive measures that can improve the employee morale in the organizations. Creation of Whole Jobs-Under this method the complete jobs are assigned to the employees, the complexity of a job should be increased so that it may appeal to their higher needs. Job enrichment-job enrichment tries to deal with dissatisfaction by increasing job depth, under this the individual employees may be given responsibility for setting their own work pace, for concerning their own errors and /or deciding on the best way to perform a particular task. Building responsibility into a job-under this the employees should be encouraged to participate and if possible be held responsible for taking decisions some delegation of responsibility from the manager tot could be useful in improving employee ownership. Managerial effectiveness-This can be achieved by developing work groups, improving the social contacts of the employees-time away from work in

team building and fun activites,managerial coaching, employee stress management activities. Flexing working hours-Flex time/work from home provisions allow employees to arrange their work hours to suit their personal needs and life styles, this flex time employees are responsible for co-ordinating their functions with other employees and there by have more responsibility and autonomy. Rotation of Jobs-This is one of the aspect which reduces employee boredom which would have arise out of the nature of his work. Incentive and profit sharing-Effectiveness of the employees can also be made more productive with giving good incentives and profit sharing options. This intern is also helpful to increase the morale of the employee where his motivation to go more work will increase since he will have in his mind that he would be getting some reward apart from his regular salary is the assigned job given is completed to the expectation of the organization or if he exceeds his productivity more than the targets, one major example for the same is our variable pay where a employee can expect in the organization if the company achieves break evens or if the employee achieve the targets assigned to the him. These are some of the measures which help to improve employee morale.