MBA 028(SOULTION)

Managing Human Resources(2011-12)

SECTION A
1.Attempt all questions
ANSWER A) Key Differences Between Personnel Management and Human
Resource Management
The following are the major differences between Personnel Management and Human Resource
Management:
1. The part of management that deals with the work force within the enterprise is known as
Personnel Management. The branch of management, which focuses on the best possible
use of the enterprises man power is known as Human Resource Management.
2. Personnel Management treats workers as tools or machines whereas Human Resource
Management treats it as an important asset of the organization.
3. Human Resource Management is the advanced version of Personnel Management.
4. Decision Making is generally slow in Personnel Management but the same is
comparatively fast in Human Resource Management.
5. In Personnel Management there is a piecemeal distribution of initiatives. However,
integrated distribution of initiatives is there in Human Resource Management.
6. In Personnel Management, the basis of job design is the division of work while, in the
case of Human Resource Management, employees are divided into groups or teams for
performing any task.
7. In PM, the negotiations are based on collective bargaining with the union leader.
Conversely, in HRM, there is no need for collective bargaining as individual contracts
exist with each employee.

8. In PM, the pay is based on job evaluation. Unlike HRM, where the basis of pay is
performance evaluation.
ANSWER B) Human Resource Development
Human Resource Development is the part of human resource management that specifically deals
with training and development of the employees in the organization.
Human resource development includes training a person after he or she is first hired, providing
opportunities to learn new skills, distributing resources that are beneficial for the employee's
tasks, and any other developmental activities.
ANSWER C) Job Description and Job Specification
Both job description and job specification are essential parts of job analysis information. Writing
them clearly and accurately helps organization and workers cope with many challenges while
onboard.

ANSWER D) The 360 evaluation feedback method was first used in the 1940s. Analogous to the
multiple points on a compass, the 360 method provides each employee the opportunity to receive
performance feedback from his or her supervisor, peers, staff members, co-workers and
customers.
360-degree feedback or multi-source feedback is an appraisal or performance assessment tool
that incorporates feedback from all who observe and are affected by the performance of a
candidate.
ANSWER E) Fringe benefits are forms of compensation you provide to employees outside of a
stated wage or salary. Common examples of fringe benefits include medical and dental
insurance, use of a company car, housing allowance, educational
assistance, vacation pay, sick pay, meals and employee discounts.

ANSWER F) Grievance is formal complaint which demonstrates any kind of dissatisfaction in

an employee, arising out of the factors which are related to his job.
The important steps in grievance handling procedure are:
i.) Accepting the grievance and acknowledging it
ii.) Carefully listening the problem
iii.) Understanding the redefining the problem to ensure that both the parties are at the same level
of understanding
iv.) Gathering the information all facts and figures .
vi.) Offering the best solution
vii.) Follow up
ANSWER G) Fair WagesA fair wage is something more than the minimum wages. Fair wage
is a mean between the living wage and the minimum wage. While the lower limit of the fair
wage must obviously be the minimum wage, the upper limit is the capacity of the industry to pay
fair wage compares reasonably with the average payment of similar task in other trades or
occupations requiring the same amount of ability. Fair wage depends on the present economic
position as well as on its future prospects.
Thus the fair wages depends upon the following factors :
(1) Minimum Wages
(2) Capacity of the industry to pay
(3) Prevailing rates of wages in the same or similar occupations in the same or neighbouring
localities
(4) Productivity of labour
(5) Level of national income and its distribution.
(6) The place of the industry in the economy of the country.
ANSWER H) Voluntary retirement scheme is a method used by companies to reduce surplus
staff. This mode has come about in India as labour laws do not permit direct retrenchment of
unionized employees.
VRS applies to an employee who has completed 10 years of service or is above 40 years of
age. ?It should apply to all employees (by whatever name called), including workers and
executives of a company or of an authority or of a co-operative society, excepting directors of a
company or a co-operative society.
ANSWER I) It is a blank form in which we can collect the required information from the
applicant. The content of application blanks are:
Personal Data (Address, contact number, etc)

Marital Data
Educational details.
Experience details.
Extracurricular activities.
References.
ANSWER J) Advantages of External Sources
The benefits / merits / advantages of using external sources of recruitment:

It encourages young blood with new ideas to enter the organisation.

It offers wide scope for selection. This is because a large number of suitable candidates
will come for the selection process.
There are less chances of bias or partiality.
Here there is no need to maintain confidential records.

SECTION B
ANSWER 2.
ANSWER A) The evolution of human resource management as a distinct profession dates back
to the industrial revolution when factories established personnel departments to look into wages
and welfare of workers.
To understand the evolution of Human Resource Management, one must first understand its
basis.

The origins of workforce management lies in the arrangements made for the welfare of
apprentices working with the master craftsmen in the putting out system that prevailed during the
medieval ages. The industrial revolution that led to the establishment of factories displaced the
putting out system.
The workers in the early factories faced long hours of works under extremely unhygienic
conditions, and mostly lived in slums. This soon resulted in several labor riots, the most famous
being Ludds riots of 1811 in Nottingham, England, precipitated by reduced wages. The
government soon intervened to provide basic rights and protections for workers, and the need to
comply with such statutory regulations forced factory owners to set up a formal mechanism to

look into workers wages and welfare, and redress other issues concerning labor. This led to the
emergence of Personnel Management as a distinct profession.
The Personnel ManagementApproach
The Personnel Management approach that remained in vogue for much of the 20th Century
remained administrative in nature. Arising out of the need to enforce statutory compliance, it
concerned itself primarily with

employee record keeping

adherence to the stated policies while implementing functions such as recruitment,
training and wage administration
taking welfare oriented measures such as providing medical care, vaccinations, housing
facilities and the like
attempting to increase productivity through wage increases and training, and enforcement
of standards derived from work studies influenced by the scientific management approach
promulgated by Frederick Taylor and the like
dealing with trade unions and trying to solve industrial disputes through collective
bargaining and other industrial relations approaches.
conducting performance appraisals or report card of past performance to determine pay
and promotions

The Personnel Management approach tried to convince workers of the business interests,
and convince management of workers interest and social obligations. It rarely had a direct
say in the companys strategy and did not involved itself with operations aspects,
remaining a purely staff function.

The Traditional Human Resource Approach

The latter decades of the twentieth century saw the winds of change starting to affect the
personnel management profession. Elton Mayos Hawthorne Studies had debunked Taylors
Scientific Management approach toward productivity increase, and established that the major
drivers of productivity and motivation were non-monetary factors. A host of new theories
emerged based on this new behavioral perspective. Some of the popular theories that struck
ground was Douglas McGregors Theory X and Theory Y, Abraham Maslows hierarchy of needs
theory that recognized the concept of individuals aspiring to reach a state of self actualization,
Victor Vrooms Expectation Theory, Alderfers ERG Theory, and more. Government
interventions led to the enactment of new legislations that guaranteed workers more rights.

What is the difference between HRD and HRM?

HRD and HRM are both practices that deal with human resources of a company. Usually in large
organizations, there exists entire departments dedicated to HRM where trained professionals
work together solely towards the amelioration of this aspect, dealing with both HRD and HRM
functions. HRD is human resource development. HRM is human resource management.
HRD deals with functions such as performance development and management, training, career
development, mentoring, coaching, succession planning, tuition assistance, key employee
identification, etc. HRM deals with functions such as employee training, recruitment,
performance appraisals as well as duly rewarding the employees.
HRD is a part of HRM. HRM deals with all HR initiatives while HRD only deals with the
development factor.
HRM functions are more formal than of HRD functions.

ANSWER B)
A HRIS, or Human Resource Information System, is a software solution for small to midsized businesses to help automate and manage their HR, payroll, management and accounting
activities.
A HRIS generally should provide the capability to more effectively plan, control and manage
HR costs; achieve improved efficiency and quality in HR decision making; and improve
employee and managerial productivity and effectiveness.
A HRIS offers HR, payroll, benefits, training, recruiting and compliance solutions
Most are flexibly designed with integrated databases, a comprehensive array of features, and
powerful reporting functions and analysis capabilities that you need to manage your workforce.
This can give back hours of the HR administrators day previously spent attending to routine
employee requests.
A HRIS also facilitates communication processes and saves paper by providing an easilyaccessible, centralized location for company policies, announcements, and links to external
URLs. Employee activities such as time-off requests and W-4 form changes can be automated,
resulting in faster approvals and less paperwork.

An affordable Human Resource Information System (HRIS), for example Sage HRMSs ecapabilities, allows companies to manage their workforce through two powerful main
components: HR & Payroll. In addition to these essential software solutions, HRIS offers other
options to help companies understand and fully utilize their workforces collective skills, talents,
and experiences.

Some of the most popular modules are:

Organization charts (Create professional looking, dynamic organization charts)
Employee self service (Employees can update personal information and view benefits
elections, absence transactions, time-off balances and payroll information)
Benefits Administration (Save paper and postage, take weeks off the benefits open
enrollment period, reduce administration time, and improve data accuracy)
Track training for employees
Selecting the right HRIS is important. Your company will need to make sure that they can
customize the system to meet its specific and unique needs and that it is a system that will grow
with your company.

ANSWER C)
Training an erudition process that embroils the procurement of knowledge, honing of skills,
rubrics, or change in insolences and components to enhance the employees performance.
Difference between Training and Development?
Training: The emphasis of training is on the development of skills. Training is about divulging
new information and making us cognizant on how to make use of the information. Training is
also hooked on to the awareness of the trainer.
Development: Development is an incessant, general and vigorous expansion of skills and
knowledge. Development is targeted at long-term career growth rather than instantaneous
performance.
Explain following job training methods:
a. Coaching The goal of coaching is to improve the performance of the employee.
Coaching focuses on the individual needs of an employee and is considered to be less
formal than any other type of training.
b. Mentoring There is a very thin line to differentiate between coaching and

mentoring. Where coaching is done online, mentoring is done offline and is just a help
offered by one person to another in carrying out the work without any hurdles.
c. Job rotation Job rotation is usually done to give an enlarged perspective of the
business or to give global opportunities to the employee. It is mostly used for junior
employees who can prospectively replace senior level employees.
d. Job Instruction Technique This training method focuses on knowledge, skills and
attitude development. It consists of 4 steps,
i. Plan Making the trainer aware of the kind of work you carry.
ii. Present the trainer presents the synopsis as well as the different aspects of the work
iii. Trial You actually step into the shoes of the other person and perform the chores to
gain practical experience before taking over completely
iv. Follow up the trainer follows up with the employee so as to avoid any kind of
mistakes made by the trainee.
The need for Training and Development
Before we say that technology is responsible for increased need of training inputs to employees,
it is important to understand that there are other factors too that contribute to the latter. Training
is also necessary for the individual development and progress of the employee, which motivates
him to work for a certain organisation apart from just money. We also require training update
employees of the market trends, the change in the employment policies and other things.
The following are the two biggest factors that contribute to the increased need to training and
development in organisations:
1. Change: The word change encapsulates almost everything. It is one of the biggest factors
that contribute to the need of training and development. There is in fact a direct
relationship between the two. Change leads to the need for training and development and
training and development leads to individual and organisational change, and the cycle
goes on and on. More specifically it is the technology that is driving the need; changing
the way how businesses function, compete and deliver.
2. Development: It is again one the strong reasons for training and development becoming
all the more important. Money is not the sole motivator at work and this is especially
very true for the 21st century. People who work with organisations seek more than just
employment out of their work; they look at holistic development of self. Spirituality and
self awareness for example are gaining momentum world over. People seek happiness at
jobs which may not be possible unless an individual is aware of the self. At ford, for
example, an individual can enrol himself / herself in a course on self awareness, which

apparently seems inconsequential to ones performance at work but contributes to the

spiritual well being of an individual which is all the more important.
The critical question however remains the implications and the contribution of training and
development to the bottom line of organisations performance. To assume a leadership position in
the market space, an organisation will need to emphasise on the kind of programs they use to
improvise performance and productivity and not just how much they simply spend on learning!
ANSWER D)
A monetary gift provided to an employee based on performance, which is thought of as one way
to entice the employee to continue delivering positive results. Incentive pay may come in
the form of a bonus, profit-sharing, or commission.
PRE-REQUISITES OF EFFECTIVE INCENTIVE SYSTEM
All things considered, it may be concluded that in many industries or undertakings and for a
large group of operations, well-designed systems of payment by results shall yield advantages to
all concerned. Many of these advantages will be realized provided sufficient safeguards are
provided. Such p re-requisites are:
1. The co-operation of workers in the implementation of an incentive scheme is essential because
the employees somehow devise, if they do not like a scheme, ingenious ways of evading or
sabotaging the plan, often with the tacit connivance of the foreman or supervisor,'' Workers' cooperation may be secured through proper discussion with their representatives. In particular,
workers' co-operation is necessary in:
(i) The methods followed in measuring the results or output upon which payment is based;
(ii) The methods followed in setting wage rates for different classes of work; and
(iii) Appropriate safeguards concerning earnings, job security and settlement of disputes over
piece-work rates and allotted time.
2. The scheme must be based on scientific work measurement. The standards set must be realistic
and must motivate workers to put in better performance. Workers must be provided with
necessary tools, equipment and materials so as to enable them reach their standards.
3. Indirect workers, such as supervisors, foremen, charge hands, helpers, crane operators, canteen
staff, store keepers, and clerical staff should also be covered by incentive schemes.
4. There should be management commitment to the cost and time necessary to administer
incentive schemes properly, and these must be carefully assessed before embarking on an
incentive programme. There are many situations in which the potential gains are just not worth
the cost and effort involved.

5. There is greater need for planning. Many incentive schemes, started hurriedly, planned
carelessly, and implemented indifferently have failed and have created more problems for the
organisation than they have tried to solve.
6. The other safeguards are:
(i) The incentive scheme should be appropriate to the type of work carried out and the workers
employed.
(ii) The reward should be clearly and closely linked 10 the efforts of the individual or group.
(iii) Individuals or groups should be able to calculate the reward they get at each of the levels of
output they are capable of achieving.
(iv) Individuals or groups should have a reasonable amount of control over their efforts and
therefore their rewards.
(v) The scheme should operate by means of a well-defined and easily- understood formula.
(vi) The scheme should be properly installed and maintained,
(vii) Provisions should be made for controlling the amounts paid, to en- sure that they are
proportionate to effort.
(viii) Provisions should be made for amending rates in defined circumstances
(ix) Create incentives for performance and disincentives for non-performance.
(x) Set and review specific objectives for each employee periodically.
Advertisements
ANSWER E)
promotion and what are the bases of promotion
It is the rising movement of an employee from current job to another, i.e. higher pay scale, more
responsibility and at higher organizational level. There may be DRY PROMOTION, in which an
employee is promoted at higher level job without increase in pay. Promotion is a motivational
tool for the employees.
Promotion may be on two bases:
Merit based promotion: when the promotion takes place on the basis of an employees
performance in the current job. It is done on the basis of his skills, knowledge and ability.

 Seniority based promotion: Here the employee who has given the long service in the
organization gets promoted. There is no scope for favoritism.
In simpler terms, promotion refers to upward movement in present job leading to greater
responsibilities, higher status and better salary. Promotion may be temporary or permanent
depending upon the organizational requirement. According to Clothier and Spriegel,
promotion is the transfer of an employee to a job which pays more money or one that carries
some preferred status.
In the corporate sector employee promotions doesn't make much difference as that of in
government sector. In the government the word promotion is the ultimate desire for an employee
for the service rendered by him in the organisation and this is the only way for an employee
career development in the government sector. Promotion is the ultimate motivating factor for any
employee because moves employee forward in hierarchy of concern organisation added with
additional responsibility, higher respect, honour, with increase in grade pay and allowances.
In countries like India, employee promotions are withhold by employers if any enquiry is
pending on concerned employee due to his disobedience of duties or misuse of his powers
especially in government departments. Until clearance of enquiry pending before COMPETENT
AUTHORITY on concerned employee promotion will not be given. It is the responsibility of
employee on whom enquiries pending should prove his innocence before concerned competent
authority.
Employers should not show any discrimination between men and women with regard to
promotion according to section 5 of Equal Remuneration Act, 1976.
Purpose and Advantages of Promotion
Promotion stimulates self-development and creates interest in the job. According
to Yoder, promotion provides incentive to initiative, enterprise and ambition; minimizes
discontent and unrest; attracts capable individuals; necessitates logical training for advancement
and forms an effective reward for loyalty and cooperation, long service etc. The purposes and
advantages of promotions are to:

recognize employees performance and commitment and

motivate him towards better performance;

develop competitive spirit among employees for acquiring knowledge and skills for
higher level jobs;

retain skilled and talented employees;

reduce discontent and unrest;

To fill up job's vacant position that is created due to retirement, resignation or demise of
an employee.In this case next senior employee will be promoted to the vacant job.

utilize more effectively the knowledge and skills of employees; and

attract suitable and competent employees.

SECTION C

ANSWER 3
Functions of Human Resource Managers
The goal of a human resource manager is to strengthen the employer-employee relationship. This
goal is supported by a variety of functions within the human resources department and
throughout the organization. In a small business, the human resource manager may have a great
degree of latitude, as well as the time to devote to employee interaction with a small workforce.
Both of these are key elements of an effective human resources leader, although she must
accomplish a number of functions to achieve this goal.
Manage HR Department
The manager of the human resources department is responsible for ensuring that department
employees are well-versed in their areas of expertise. The various disciplines of HR require
expertise in compensation, benefits, safety, payroll, recruiting and training. Ideally, the human
resource manager is a generalist, which means his expertise is cross-discipline. An article on the
All Business website titled Should Your Office Manager Also Handle HR Duties? cautions
small businesses to reconsider a decision to combine two roles into one, such as the office
manager and the human resource manager. A thousand things can go wrong if this individual is
not aware of the potential liabilities inherent in HR management, the article warns.
Knowledge of Laws
Managing the human resources department also requires knowledge of federal and state
employment and labor laws and regulations that apply to human resources professionals. For
example, the human resource manager will designate the HIPAA (Health Insurance Portability
and Accountability Act) officer in charge of all medical and health-related records for the
workplace.
Interaction With Executive Leadership
An effective human resource manager is in constant communication with executive leadership.
The HR department is not a revenue-generating source. Consequently, it is important for an
organizations leaders to understand the return on investment (ROI) in human resources activities
as a contribution to the companys bottom line. In a small business, the ROI may be more readily
seen than in a large conglomerate. The human resource manager for a small business, and thus a

smaller workforce, can easily implement methods and strategies that may show faster results.
The bureaucratic hierarchy of a large organization often puts many more layers of authority
between the human resource manager and executive leadership.
Employee Relations
A human resource manager who stays in her office all day will not be effective at building strong
relationships with employees. Another function of the human resource manager is to gain the
trust and confidence of employees--the best way to establish trust and confidence is through
daily interaction with the workforce. According to the U.S. Bureau of Labor Statistics, Human
resources occupations require strong interpersonal skills. Again, with a smaller workforce, the
results of an HR manager's interpersonal skills may be seen more quickly than in a large
organization. Employee relations is a large part of the human resources managers job function,
because employee concerns encompass a wide range of issues over which the manager has
influence. The human resource manager is the face of HR and therefore relied upon to be both
human resources expert and employee advocate.

OR
Human Resource Management:

Human Resource Management has come to be recognized as an inherent part of management,

which is concerned with the human resources of an organization. Its objective is the maintenance
of better human relations in the organization by the development, application and evaluation of
policies, procedures and programs relating to human resources to optimize their contribution
towards the realization of organizational objectives.
In other words, HRM is concerned with getting better results with the collaboration of people. It
is an integral but distinctive part of management, concerned with people at work and their
relationships within the enterprise. HRM helps in attaining maximum individual development,
desirable working relationship between employees and employers, employees and employees,
and effective modeling of human resources as contrasted with physical resources. It is the
recruitment, selection, development, utilization, compensation and motivation of human
resources by the organization.
HRM vs Strategic HRM
HRM is Human Resources Management which is a strategic approach to the management of
employees. HRM involves the process of employing people, developing their skills/capacities,
and utilizing their services. But today, HRM has come across many changes, and the latest one is
the Strategic HRM which is the most powerful idea currently. Strategic HRM can be termed as a
branch of HRM.
In HRM, traditional methods are followed. Traditional methods means the selection or
recruitment process and imparting training. This HRM process did not have any specific rules for
different areas like recruitment, training, and utilizing the services. This is what makes the
Strategic HRM different from HRM. In Strategic HRM, there are specific rules specified for
specialized fields.
In HRM, there are no separate people for different areas whereas in Strategic HRM there are
different people who are skilled in specific areas. It is not that the same persons will handle
recruitment, training, and employee appraisal.
As the term itself denotes, Strategic HRM deals with strategic aspects of HRM. Unlike HRM,
Strategic HRM mainly focuses on the programs with long-term objectives. Though HRM and

Strategic HRM focus on increasing employee productivity, Strategic HRM uses many strategic
methods.
Unlike the traditional HRM, Strategic HRM uses more sophisticated methods for improving
overall employee motivation and productivity. Unlike the traditional HRM, Strategic HRM uses
more systematic tools.
While the traditional HRM focuses mainly on employee relations, Startegic HRM focuses on
partnerships with internal and external customers. When HRM has only short-term goals,
Strategic HRM has long-term goals.
When considering job design, there is a tight division of labor and independence specialization in
HRM. On the other hand, the job division in Strategic HRM is flexible. When HRM has staff
specialists, Strategic HRM has line managers.
Summary:
1. HRM involves the process of employing people, developing their skills/capacities, and
utilizing their services. Strategic HRM can be termed as a branch of HRM.
2. While traditional HRM focuses mainly on employee relations, Startegic HRM focuses on
partnerships with internal and external customers.
3. When HRM has only short-term goals, Strategic HRM is for long-term goals.
4. When HRM has staff specialists, Strategic HTM has line managers.
5. When considering job design, there is a tight division of labor and independence specialization
in HRM. On the other hand, job division in Strategic HRM is flexible.
ANSWER 4.
Manpower Planning which is also called as Human Resource Planning consists of putting right
number of people, right kind of people at the right place, right time, doing the right things for
which they are suited for the achievement of goals of the organization. Human Resource
Planning has got an important place in the arena of industrialization. Human Resource Planning
has to be a systems approach and is carried out in a set procedure. The procedure is as follows:

1. Analysing the current manpower inventory

2. Making future manpower forecasts
3. Developing employment programmes
Importance of Manpower Planning

1. Key to managerial functions- The four managerial functions, i.e., planning, organizing,
directing and controlling are based upon the manpower. Human resources help in the
implementation of all these managerial activities. Therefore, staffing becomes a key to all
managerial functions.
2. Efficient utilization- Efficient management of personnels becomes an important function
in the industrialization world of today. Seting of large scale enterprises require
management of large scale manpower. It can be effectively done through staffing
function.
3. Motivation- Staffing function not only includes putting right men on right job, but it also
comprises of motivational programmes, i.e., incentive plans to be framed for further
participation and employment of employees in a concern. Therefore, all types of
incentive plans becomes an integral part of staffing function.
4. Better human relations- A concern can stabilize itself if human relations develop and
are strong. Human relations become strong trough effective control, clear
communication, effective supervision and leadership in a concern. Staffing function also
looks after training and development of the work force which leads to co-operation and
better human relations.
5. Higher productivity- Productivity level increases when resources are utilized in best
possible manner. higher productivity is a result of minimum wastage of time, money,
efforts and energies. This is possible through the staffing and it's related activities
( Performance appraisal, training and development, remuneration)

Steps in Manpower Planning

1. Analysing the current manpower
inventory- Before a manager makes
forecast of future manpower, the current
manpower status has to be analysed. For
this the following things have to be
noted

Type of organization

Number of departments

Number and quantity of such

departments

Employees in these work units

Once these factors are registered by a

manager, he goes for the future
forecasting.

2. Making future manpower forecasts- Once the factors affecting the future manpower
forecasts are known, planning can be done for the future manpower requirements in
several work units.
The Manpower forecasting techniques commonly employed by the organizations are as
follows:
i.

Expert Forecasts: This includes informal decisions, formal expert surveys and
Delphi technique.

ii.

Trend Analysis: Manpower needs can be projected through extrapolation

(projecting past trends), indexation (using base year as basis), and statistical
analysis (central tendency measure).

iii.

Work Load Analysis: It is dependent upon the nature of work load in a

department, in a branch or in a division.

iv.

Work Force Analysis: Whenever production and time period has to be analysed,
due allowances have to be made for getting net manpower requirements.

v.

Other methods: Several Mathematical models, with the aid of computers are
used to forecast manpower needs, like budget and planning analysis, regression,
new venture analysis.

3. Developing employment programmes- Once the current inventory is compared with

future forecasts, the employment programmes can be framed and developed accordingly,
which will include recruitment, selection procedures and placement plans.
4. Design training programmes- These will be based upon extent of diversification,
expansion plans, development programmes,etc. Training programmes depend upon the
extent of improvement in technology and advancement to take place. It is also done to
improve upon the skills, capabilities, knowledge of the workers.
OR
Selection: Meaning and Steps Involved in Selection Procedure!
Finding the interested candidates who have submitted their profiles for a particular job is the
process of recruitment, and choosing the best and most suitable candidates among them is the
process of selection. It results in elimination of unsuitable candidates. It follows scientific
techniques for the appropriate choice of a person for the job.
The recruitment process has a wide coverage as it collects the applications of interested
candidates, whereas the selection process narrows down the scope and becomes specific when it
selects the suitable candidates.
Stone defines, Selection is the process of differentiating between applicants in order to identify
(and hire) those with a greater likelihood of success in a job.
Steps Involved in Selection Procedure:
A scientific and logical selection procedure leads to scientific selection of candidates. The
criterion finalized for selecting a candidate for a particular job varies from company to company.
Therefore, the selection procedure followed by different organizations, many times, becomes
lengthy as it is a question of getting the most suitable candidates for which various tests are to be

done and interviews to be taken. The procedure for selection should be systematic so that it does
not leave any scope for confusions and doubts about the choice of the selected candidate (Figure
5.6).

Brief details of the various steps in selection procedure are given as follows:
1. Inviting applications:
The prospective candidates from within the organization or outside the organization are called
for applying for the post. Detailed job description and job specification are provided in the
advertisement for the job. It attracts a large number of candidates from various areas.
2. Receiving applications:
Detailed applications are collected from the candidates which provide the necessary information
about personal and professional details of a person. These applications facilitate analysis and
comparison of the candidates.

3. Scrutiny of applications:
As the limit of the period within which the company is supposed to receive applications ends, the
applications are sorted out. Incomplete applications get rejected; applicants with un-matching job
specifications are also rejected.
4. Written tests:
As the final list of candidates becomes ready after the scrutiny of applications, the written test is
conducted. This test is conducted for understanding the technical knowledge, attitude and interest
of the candidates. This process is useful when the number of applicants is large.
Many times, a second chance is given to candidates to prove themselves by conducting another
written test.
5. Psychological tests:
These tests are conducted individually and they help for finding out the individual quality and
skill of a person. The types of psychological tests are aptitude test, intelligence test, synthetic test
and personality test
6. Personal interview:
Candidates proving themselves successful through tests are interviewed personally. The
interviewers may be individual or a panel. It generally involves officers from the top
management.
The candidates are asked several questions about their experience on another job, their family
background, their interests, etc. They are supposed to describe their expectations from the said
job. Their strengths and weaknesses are identified and noted by the interviewers which help them
to take the final decision of selection.

7. Reference check:
Generally, at least two references are asked for by the company from the candidate. Reference
check is a type of crosscheck for the information provided by the candidate through their
application form and during the interviews.
8. Medical examination:
Physical strength and fitness of a candidate is must before they takes up the job. In-spite of good
performance in tests and interviews, candidates can be rejected on the basis of their ill health.

9. Final selection:
At this step, the candidate is given the appointment letter to join the organization on a particular
date. The appointment letter specifies the post, title, salary and terms of employment. Generally,
initial appointment is on probation and after specific time period it becomes permanent.
10. Placement:
This is a final step. A suitable job is allocated to the appointed candidate so that they can get the
whole idea about the nature of the job. They can get adjusted to the job and perform well in
future with all capacities and strengths.
ANSWER 5
Compensation management is one of the most challenging human resource areas because it
contains many elements and has a far-reaching effect on the organisation's goals. The purpose of
providing compensation is to attract, retain and motivate employees. There are two main types of
financial compensation.
1. Direct financial compensation - the pay that a worker receives as wages, salaries,
commissions and bonuses, and

2. Indirect financial compensation - all financial rewards that are not included in direct
compensation (i.e. benefits).
An example of direct financial compensation is the money the worker receives as wages at the
end of the week, or as a salary paid at the end of the month. Many companies pay salaries
straight into the employee's bank account.
An example of indirect financial compensation is when the company contributes to an
employee's housing subsidy or a pension plan.
Not all compensation is financial. A worker can get great satisfaction from his work and enjoy
the environment in which he works. This is called non-financial compensation and cannot be
counted in terms of money. For example, a veterinarian might enjoy working outside, going to
farms to treat animals and deliver calves. A publisher might enjoy the challenge of producing
books that will enrich people's lives.
It is not always possible to provide a perfect pay package (the agreement between the
organisation and the employee about how much money and other benefits the employee will
receive). Because of this, some companies allow their employees to work out their own
compensation packages.

India: Central government employees draw more salary along with benefits than state
government employees, compared with private sector employees. There is a particular pay
structure fixed for every government employee in India which is not in private companies. The
pay structure of government employees in India is as follows
Employee salary : Basic pay + Grade pay + Dearness Allowance (DA) + House Rent
Allowance (HRA) + City Compensatory Allowance (CCA)
The details of above said components of salary of government employees are as follows.

Basic pay: The primary component of employee salary which is bases for calculation of
other components in the employee salary.

Grade pay: An amount which is fixed by the government on the range of employee in
government hierarchy. (for example; Group A officers have high grade pay than Group B
officers.)

Dearness Allowance: Certain percentage of the amount on basic pay. This percentage
varies from state government to Central government employees. An allowance paid to
employees on the basis of consumer Price index. Consumer price index denotes the cost
of the products which influences by the inflation. (in simple terms cost of living) At

present, 41% is for state government employees and 72 % is for Central government
employees as dearness allowance on their basic pay.

House Rent Allowance (HRA): Certain percentage of the amount on basic pay. This
percentage varies from state government to Central government employees. This
allowance is paid to employees are meeting house rent expenditure.

City Compensatory Allowance (CCA): An allowance paid according to the city or town
where employee do the job and the purpose of this allowance is to compensate high cost
of living especially in cities like Mumbai, Delhi, Calcutta and Hyderabad et cetera .
Government decides the amount of allowance to be paid to employees on basis of city or
town.
OR

Employee retention refers to the various policies and practices which let the employees
stick to an organization for a longer period of time. Every organization invests time and
money to groom a new joinee, make him a corporate ready material and bring him at par with the
existing employees. The organization is completely at loss when the employees leave their job
once they are fully trained. Employee retention takes into account the various measures taken so
that an individual stays in an organization for the maximum period of time.
Need & Importance of Employee Retention
Let us understand why retaining a valuable employee is essential for an organization.

Hiring is not an easy process: The HR Professional shortlists few individuals from a
large pool of talent, conducts preliminary interviews and eventually forwards it to the
respective line managers who further grill them to judge whether they are fit for the
organization or not. Recruiting the right candidate is a time consuming process.

An organization invests time and money in grooming an individual and make him
ready to work and understand the corporate culture: A new joinee is completely raw
and the management really has to work hard to train him for his overall development. It is
a complete wastage of time and money when an individual leaves an organization all of a
sudden. The HR has to start the recruitment process all over again for the same vacancy;
a mere duplication of work. Finding a right employee for an organization is a tedious job
and all efforts simply go waste when the employee leaves.

When an individual resigns from his present organization, it is more likely that he
would join the competitors: In such cases, employees tend to take all the strategies,
policies from the current organization to the new one. Individuals take all the important
data, information and statistics to their new organization and in some cases even leak the
secrets of the previous organization. To avoid such cases, it is essential that the new
joinee is made to sign a document which stops him from passing on any information even

if he leaves the organization. Strict policy should be made which prevents the employees
to join the competitors. This is an effective way to retain the employees.

The employees working for a longer period of time are more familiar with the
companys policies, guidelines and thus they adjust better: They perform better than
individuals who change jobs frequently. Employees who spend a considerable time in an
organization know the organization in and out and thus are in a position to contribute
effectively.

Every individual needs time to adjust with others: One needs time to know his team
members well, be friendly with them and eventually trust them. Organizations are always
benefited when the employees are compatible with each other and discuss things among
themselves to come out with something beneficial for all. When a new individual
replaces an existing employee, adjustment problems crop up. Individuals find it really
difficult to establish a comfort level with the other person. After striking a rapport with an
existing employee, it is a challenge for the employees to adjust with someone new and
most importantly trust him. It is a human tendency to compare a new joinee with the
previous employees and always find faults in him.

It has been observed that individuals sticking to an organization for a longer span
are more loyal towards the management and the organization: They enjoy all kinds
of benefits from the organization and as a result are more attached to it. They hardly
badmouth their organization and always think in favour of the management. For them the
organization comes first and all other things later.

It is essential for the organization to retain the valuable employees showing

potential:Every organization needs hardworking and talented employees who can really
come out with something creative and different. No organization can survive if all the top
performers quit. It is essential for the organization to retain those employees who really
work hard and are indispensable for the system.

The management must understand the difference between a valuable employee and an employee
who doesnt contribute much to the organization. Sincere efforts must be made to encourage the
employees so that they stay happy in the current organization and do not look for a change.
ANSWER 6:
Concept of Industrial Relations:
The term Industrial Relations comprises of two terms: Industry and Relations. Industry
refers to any productive activity in which an individual (or a group of individuals) is (are)
engaged. By relations we mean the relationships that exist within the industry between the
employer and his workmen..
The term industrial relations explains the relationship between employees and management
which stem directly or indirectly from union-employer relationship.

Definitions:
The term industrial relations has been variously defined. J.T. Dunlop defines industrial
relations as the complex interrelations among managers, workers and agencies of the
governments.
According to Dale Yoder industrial relations is the process of management dealing with
one or more unions with a view to negotiate and subsequently administer collective
bargaining agreement or labour contract.
Importance of Industrial Relations:
The healthy industrial relations are key to the progress and success. Their significance may be
discussed as under

Uninterrupted production The most important benefit of industrial relations is that

this ensures continuity of production. This means, continuous employment for all from
manager to workers. The resources are fully utilized, resulting in the maximum possible
production. There is uninterrupted flow of income for all. Smooth running of an industry
is of vital importance for several other industries; to other industries if the products are
intermediaries or inputs; to exporters if these are export goods; to consumers and
workers, if these are goods of mass consumption.

Reduction in Industrial Disputes Good industrial relations reduce the industrial

disputes. Disputes are reflections of the failure of basic human urges or motivations to
secure adequate satisfaction or expression which are fully cured by good industrial
relations. Strikes, lockouts, go-slow tactics, gherao and grievances are some of the
reflections of industrial unrest which do not spring up in an atmosphere of industrial
peace. It helps promoting co-operation and increasing production.

High morale Good industrial relations improve the morale of the employees.
Employees work with great zeal with the feeling in mind that the interest of employer and
employees is one and the same, i.e. to increase production. Every worker feels that he is a
co-owner of the gains of industry. The employer in his turn must realize that the gains of
industry are not for him along but they should be shared equally
and generously with his workers. In other words, complete unity of thought and action is
the main achievement of industrial peace. It increases the place of workers in the society
and their ego is satisfied. It naturally affects production because mighty co-operative
efforts alone can produce great results.

Mental Revolution The main object of industrial relation is a complete mental

revolution of workers and employees. The industrial peace lies ultimately in a
transformed outlook on the part of both. It is the business of leadership in the ranks of
workers, employees and Government to work out a new relationship in consonance with
a spirit of true democracy. Both should think themselves as partners of the industry and
the role of workers in such a partnership should be recognized. On the other hand,

workers must recognize employers authority. It will naturally have impact on production
because they recognize the interest of each other.

Reduced Wastage Good industrial relations are maintained on the basis of cooperation
and recognition of each other. It will help increase production. Wastage of man, material
and machines are reduced to the minimum and thus national interest is protected.

Thus, it is evident that good industrial relations is the basis of higher production with minimum
cost and higher profits. It also results in increased efficiency of workers. New and new projects
may be introduced for the welfare of the workers and to promote the morale of the people at
work. An economy organized for planned production and distribution, aiming at the realization
of social justice and welfare of the massage can function effectively only in an atmosphere of
industrial peace. If the twin objectives of rapid national development and increased social justice
are to be achieved, there must be harmonious relationship between management and labor.
Objectives of Industrial Relations:
The main objectives of industrial relations system are:

To safeguard the interest of labor and management by securing the highest level of
mutual understanding and good-will among all those sections in the industry which
participate in the process of production.

To avoid industrial conflict or strife and develop harmonious relations, which are an
essential factor in the productivity of workers and the industrial progress of a country.

To raise productivity to a higher level in an era of full employment by lessening the

tendency to high turnover and frequency absenteeism.

To establish and promote the growth of an industrial democracy based on labor

partnership in the sharing of profits and of managerial decisions, so that ban individuals
personality may grow its full stature for the benefit of the industry and of the country as
well.

To eliminate or minimize the number of strikes, lockouts and gheraos by providing

reasonable wages, improved living and working conditions, said fringe benefits.

To improve the economic conditions of workers in the existing state of industrial

managements and political government.

Socialization of industries by making the state itself a major employer

Vesting of a proprietary interest of the workers in the industries in which they are
employed.

OR
Grievance means any type of dissatisfaction or discontentments arising out of factors related to
an employees job which he thinks are unfair. A grievance arises when an employee feels that
something has happened or is happening to him which he thinks is unfair, unjust or inequitable.
In an organization, a grievance may arise due to several factors such as:
1. Violation of managements responsibility such as poor working conditions
2. Violation of companys rules and regulations
3. Violation of labor laws
4. Violation of natural rules of justice such as unfair treatment in promotion, etc.
Various sources of grievance may be categorized under three heads: (i) management policies, (ii)
working conditions, and (iii) personal factors
1.Grievance resulting from management policies include:

Wage rates

Leave policy

Overtime

Lack of career planning

Role conflicts

Lack of regard for collective agreement

Disparity between skill of worker and job responsibility

2. Grievance resulting from working conditions include:

Poor safety and bad physical conditions

Unavailability of tools and proper machinery

Negative approach to discipline

Unrealistic targets

3. Grievance resulting from inter-personal factors include

Poor relationships with team members

Autocratic leadership style of superiors

Poor relations with seniors

Conflicts with peers and colleagues

Grievance Procedure
Grievance procedure is a Step by step process an employee must follow to get his or her
complaint addressed satisfactorily. In this process, the formal (written) complaint moves from
one level of authority (of the firm and the union) to the next higher level.
Grievance procedure is a formal communication between an employee and the management
designed for the settlement of a grievance. The grievance procedures differ from organization to
organization.
1. Open door policy
2. Step-ladder policy
Open door policy: Under this policy, the aggrieved employee is free to meet the top executives of
the organization and get his grievances redressed. Such a policy works well only in small
organizations. However, in bigger organizations, top management executives are usually busy
with other concerned matters of the company. Moreover, it is believed that open door policy is
suitable for executives; operational employees may feel shy to go to top management.
Step ladder policy: Under this policy, the aggrieved employee has to follow a step by step
procedure for getting his grievance redressed. In this procedure, whenever an employee is
confronted with a grievance, he presents his problem to his immediate supervisor. If the
employee is not satisfied with superiors decision, then he discusses his grievance with the
departmental head. The departmental head discusses the problem with joint grievance
committees to find a solution. However, if the committee also fails to redress the grievance, then
it may be referred to chief executive. If the chief executive also fails to redress the grievance,
then such a grievance is referred to voluntary arbitration where the award of arbitrator is binding
on both the parties.
GRIEVANCE PROCEDURE IN INDIAN INDUSTRY
The 15th session of Indian Labor Conference held in 1957 emphasized the need of an established
grievance procedure for the country which would be acceptable to unions as well as to
management. In the 16th session of Indian Labor Conference, a model for grievance procedure

was drawn up. This model helps in creation of grievance machinery. According to it, workers
representatives are to be elected for a department or their union is to nominate them.
Management has to specify the persons in each department who are to be approached first and
the departmental heads who are supposed to be approached in the second step. The Model
Grievance Procedure specifies the details of all the steps that are to be followed while redressing
grievances. These steps are:
STEP 1: In the first step the grievance is to be submitted to departmental representative, who is a
representative of management. He has to give his answer within 48 hours.
STEP 2: If the departmental representative fails to provide a solution, the aggrieved employee
can take his grievance to head of the department, who has to give his decision within 3 days.
STEP 3: If the aggrieved employee is not satisfied with the decision of departmental head, he
can take the grievance to Grievance Committee. The Grievance Committee makes its
recommendations to the manager within 7 days in the form of a report. The final decision of the
management on the report of Grievance Committee must be communicated to the aggrieved
employee within three days of the receipt of report. An appeal for revision of final decision can
be made by the worker if he is not satisfied with it. The management must communicate its
decision to the worker within 7 days.
STEP 4: If the grievance still remains unsettled, the case may be referred to voluntary
arbitration.

ANSWER 7:

SHORT NOTES:
i)Internal sources of Recruitment

(A) Internal Sources:

Best employees can be found within the organisation When a vacancy arises in the
organisation, it may be given to an employee who is already on the pay-roll. Internal sources
include promotion, transfer and in certain cases demotion. When a higher post is given to a
deserving employee, it motivates all other employees of the organisation to work hard. The
employees can be informed of such a vacancy by internal advertisement.
Methods of Internal Sources:
The Internal Sources Are Given Below:
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.

ii) Management Development programs

Management Development Program (MDP)
The UC Management Development Program (MDP) is a system wide initiative designed to
strengthen
leadership capabilities in four UC Core
Competency areas:

People Management
Employee Engagement
Exercising Influence
Change Management
An energizing program relevant to the demands
facing University managers, it benefits Middle
Managers who manage other Managers,
Supervisors and Leads. Managers whose primary

role involves translating strategy and executing work through others will find this program most
relevant.
Participants in the program increase their knowledge of best management practices by:

Learning from top professionals through interactive presentations, case studies and
exercises
Completing self-assessments
Building action plans
Developing an extended network of peers from other academic and administrative units
who share similar challenges and experiences
Working together to identify strategies for incorporating the information learned back on
the job
iii) Environmental scanning in SHRM
Environmental scanning refers to possession and utilization of information about occasions,
patterns, trends, and relationships within an organizations internal and external
environment. It helps the managers to decide the future path of the organization. Scanning must
identify the threats and opportunities existing in the environment. While strategy formulation, an
organization must take advantage of the opportunities and minimize the threats. A threat for one
organization may be an opportunity for another.
Internal analysis of the environment is the first step of environment scanning. Organizations
should observe the internal organizational environment. This includes employee interaction with
other employees, employee interaction with management, manager interaction with other
managers, and management interaction with shareholders, access to natural resources, brand
awareness, organizational structure, main staff, operational potential, etc. Also, discussions,
interviews, and surveys can be used to assess the internal environment. Analysis of internal
environment helps in identifying strengths and weaknesses of an organization.
While in external analysis, three correlated environment should be studied and analyzed

immediate / industry environment

national environment

broader socio-economic environment / macro-environment

Examining the industry environment needs an appraisal of the competitive structure of the
organizations industry, including the competitive position of a particular organization and its
main rivals. Also, an assessment of the nature, stage, dynamics and history of the industry is
essential. It also implies evaluating the effect of globalization on competition within the industry.

Analyzing the national environment needs an appraisal of whether the national framework
helps in achieving competitive advantage in the globalized environment. Analysis of macroenvironment includes exploring macro-economic, social, government, legal, technological and
international factors that may influence the environment. The analysis of organizations external
environment reveals opportunities and threats for an organization.
Strategic managers must not only recognize the present state of the environment and their
industry but also be able to predict its future positions.
iv) Performance Appraisal system
Performance Appraisal is the systematic evaluation of the performance of employees and to
understand the abilities of a person for further growth and development. Performance appraisal is
generally done in systematic ways which are as follows:
1. The supervisors measure the pay of employees and compare it with targets and plans.
2. The supervisor analyses the factors behind work performances of employees.
3. The employers are in position to guide the employees for a better performance.
Objectives of Performance Appraisal
Performance Appraisal can be done with following objectives in mind:
1. To maintain records in order to determine compensation packages, wage structure,
salaries raises, etc.
2. To identify the strengths and weaknesses of employees to place right men on right job.
3. To maintain and assess the potential present in a person for further growth and
development.
4. To provide a feedback to employees regarding their performance and related status.
5. To provide a feedback to employees regarding their performance and related status.
6. It serves as a basis for influencing working habits of the employees.
7. To review and retain the promotional and other training programmes.