Description
papers with solution
HRM November 2008
Section I Q. 1) Explain the concepts in brief: (10) a) Fringe benefits Ans. Fringe benefit is a very vast concept; it includes benefits such as, -Provident fund, gratuity, medical care, hospitalization, accident relief, canteen, uniform and the like. They also include benefits such as - Paid vacation, pension. Features of Fringe Benefits-Different from regular wages -Useful but avoidable expenditure -Not directly linked with efforts -Beneficial to all employees Objectives of Fringe Benefits-To supplement direct remuneration -To recruit and retain the employees -To protect employees -To create positive employees attitude
b) HRIS Ans. The computerized human resource system is known as human resource information system or HRIS. HRIS maintains the updated information relating to all aspects of human resources of the organization and works as decision support system. Its input is raw data and output is information. It is a system that acquires, manipulates, analyses, stores, retrieves and makes available the instant information in respect of human resources of the organization. c) VRS
Ans. VRS is Voluntary Retirement Scheme. VRS are announced when there is a huge pool of old aged manpower occupying senior positions amounting to surplus. Many organizations are providing liberal incentives to leave before age of superannuating. VRS in other words is a retirement before the age of retirement. d) Employee empowerment Ans. Employee empowerment is the redistribution of power determining the human resources in an organization. For employee empowerment to work successfully, the management team must be truly committed to allowing employees to make decisions. They may wish to define the scope of decisions made. Building decision-making teams is often one of the models used in employee empowerment, because it allows for managers and workers to contribute ideas toward directing the company. One easy way to begin employee empowerment in the workplace is to install a suggestion box, where workers can make suggestions without fear of punishment or retribution. e) Fair wages Ans. Fair Wage is understood in two ways. In a narrow sense, wage is fair if it is equal to the rate prevailing in the same trade and in the neighborhood for similar work. In a wider sense, it will be fair if it is equal to the predominant rate for similar work throughout the country and for traders in general. Thus, fair wage is equal pay for equal work i.e. wage payment to be fair to all workers to enjoy higher standard of living.
Section II
Q. 3) Explain the characteristics of today’s workforce. Ans. DefinitionIt is proposed that we take human resource management to be that part of management concerned with:
All the decisions, strategies, factors, principles, operations, practices, functions, activities and methods related to the management of people as employees in any type of organisation (including small and micro enterprises and virtual organisations); All the dimensions related to people in their employment relationships, and all the dynamics that flow from it (including in the realisation of the potential of individual employees in terms of their aspirations); All aimed at adding value to the delivery of goods and services, as well as to the quality of work life for employees, and hence helping to ensure continuous organisational success in transformative environments.
The functions of HRM can be broadly classified into two categories viz 1) Managerial Functions 2) Operative Functions : FUNCTIONS OF HRM Managerial Functions Operative Functions
Planning Organising Directing Controlling
Employment Human Resources Development Compensation Human Relations Industrial Relations Recent Trends in HRM
1. Managerial Functions: Managerial functions of personnel management involve planning, organizing, directing and controlling. Planning: It is pre-determined course of action. Planning pertains to formulating strategies of personnel programmes and changes in advance that will contribute to the organizational goals. It involves planning of human resources, requirements, recruitment, selection, training etc. It also involves forecasting of personnel needs, changing values, attitudes and behaviour of employees and their impact on the organization. Organising : An organization is a means to an end. It is essential to carry out the determined course of action. An organization is a structure and a process by which a co-operative group of human beings allocates its task among its members, identifies relationships and integrates its activities towards a common objective. Complex relationships exist between the specialized departments and the general departments as many top managers are seeking the advice of the personnel manager. Thus an organization establishes relationships among the employees so that they can collectively contribute to the attainment of company goals. Directing : The next logical function after completing planning and organizing is the execution of the plan. The basic function of personnel management at any level is motivating, commanding, leading and activating people. The willing and effective co-operation of employees for the attainment of organizational goals is possible through proper direction. Tapping the maximum potentialities of the people is possible through motivation and command. Coordination deals with the task of blending efforts in order to ensure successful attainment of an objective. Controlling: After planning, organizing and directing various activities of personnel management, the performance is to be verified in order to know that the personnel functions are performed in conformity with the plans and directions of an organization. Controlling also involves checking, verifying and comparing of the actuals with the plans, identification of deviations if any and standards through controls. Auditing training programmes, analyzing labour turnover records, directing morale surveys, conducting separate interviews are some of the means of controlling the personnel management function and making it effective.
2. Operative Functions: The operative functions of human resources management are related to specific activities of personnel management viz, employment, development, compensation and relations. All these functions are interacted with managerial functions. Employment: It is the first operative function of Human Resource Management. Employment is concerned with securing and employing the people possessing the required kind and level of human resources necessary to achieve the organizational objectives. It covers functions such as job analysis, human resource planning, recruitment, selection, placement, induction and internal mobility. Human Resource Development: It is a process of improving, molding and changing the skills, knowledge, creative ability, aptitude, values, commitment etc., based on present and future job and organizational requirements. It includes Performance Appraisal, Training, Management Development, Career Planning and Development, Internal Mobility, Transfer, Promotion, Demotion, Change and Organisational Development. Compensation: It is a process of providing adequate, equitable and fair remuneration to the employees. It includes job evaluation, wage administration and salary administration, incentives, bonus, fringe benefits, social security measures etc. Human Relations: Practicing various human resources policies and programmes like employment, development and compensation and interaction among employees create a sense of relationship between the individual worker and management, among workers and trade unions and the management. It is a process of interaction among human beings. Human relations is an rear of management in integrating people into work situations in a away that motivates them to work together productively co-operatively and with economic, psychological and social satisfaction. It includes: Understanding and applying the models of perception, personality, learning, intra and inter personnel relations, intra and inter group relations. Motivating the employees Boosting employee morale Developing the communication skills Developing the communications skills
Redressing employee grievances properly and in time by means of a well-formulated grievance procedure.
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Handling disciplinary cases by means of an established disciplinary procedure.
Counseling the employees in solving their personal, family and work problems and releasing their stress. Strain and tensions. Improving quality of work life of employees through participation and other means.
Industrial Relations: Industrial relations refer to the study of relations among employees, employer, government and trade unions. Industrial relations include: Indian labour market Trade unionism Collective bargaining Industrial conflicts Worker’s participation in management and Quality circles
Recent Trends in HRM : Human Resources Management has been advancing at a fast rate. The recent trends in HRM include: Quality of work life Total quality in human resources HR accounting, audit and research and Recent techniques of HRM
The challenges of HRM in the present organizational context. A goal seeking organizations especially one that seeks improvement over the current situation is a challenge, taking organization. When many such goals are pursued tremendous internal pressures some of them conflicting, tend to be generated. Unless the organization develops mechanisms for coping with these self-generated pressures, it may face major failure and suffer disastrous retreats from its goal.
Human Resource function cannot be performed in a vacuum. There are many challenges that it has to face to survive. All these challenges are discussed below. 1. Technological factors: Just as necessity is the mother of invention competition and a host of other reasons are responsible for the rapid technological changes and innovations. As a consequence of these changes, technical personnel, skilled workers, computer operators and machine operators are increasingly required while the demand for other categories of employers has declined. Hence procurement of skilled employees and their increase in numbers to match the changing job requirements has become a complicated task. 2. Human Resource in the Country: The structure, values and the level of education of human resource in a country influence much of the Human Resource function. The influence of manpower in the country can be studies through the changes in structure of employment. a. Change in the Structure of Employment: The structure of employment in an organization changes with the entrance of workforce with different backgrounds (Social economic, region, community, sex, religion, traditions culture etc). There has been a significant change in the structure of employment with the entry of 1) candidates belonging to the schedule castes, schedules tribes and backward communities. 2) More female employees, due to increased career orientation among women to the suitability of women for certain jobs and to women becoming more acclimatized to the working climate and higher level of commitment. 3) The workforce consists of different regions but due to increased transportation facilities and mobile character of people. These changes in workforce are a challenge and a complicated task of HR function. It has to deal with employees with different backgrounds. 3. Changes in employee Roles and their Values: Earlier the management could totally control its employees and get the desired output. Today the employees have to be considered as a partner in the organization. Changing structure of workforce has led to the introduction of new values in organization. Among these are moves 1) emphasis on quality of life rather than quantity ii) equality and justice for employees over economic efficiency iii) participation over authority. iv) Workers now prefer flexible working hours to fixed time schedule. v) Level of education in recent years is comparatively very higher. Increased formal education has led to the change of attitude of the employees. 4. Changing demands of employer: changes always are not on the side of employees. Organizations also undergo changes and consequently their demands on employees will also change. The information technological revolution and neck to neck marketing competition of most of the organizations due to globalization demand that the existing employees adopt to the ever-changing work situation and learn new skills, knowledge etc to cope with the new changes.
5. Government and Legal factors: Until 1940 the government was not involved or interested regarding the problems of labor or industry. But the need for Govt., interference arose out of the belief that Government is the custodian of industrial and economic activities. The role of the government in business has after 1991 with the announcement of economic liberalization. However awareness of legislations is very important like the Factory Act, 1948, Trade Union act 1962, Payment of wages Act 1936, The Minimum Wages Act 1923, The Payment of Bonus Act 1965, The Employment Exchange Act, Standing Order Act 1946, Maternity Benefit Act 1961, and The Apprentice Act 1961. All these acts if not complied with can get the organization into deep trouble. 6. Customers: Organizations produce products or render services for the ultimate consumption use by the customer. In other words organizations depend upon customers for their survival and growth. Customers revolt against employees, if the services rendered are less qualitative. The banks face such type of challenges. Customers may develop a negative attitude towards the organization, if it does not follow the social policies of the country. Hence the customers pose a challenge special ally in service industry. 7. Social factors: Social environment consists of class structure, mobility social roles social values nature and development of social institutions caste structure and occupational structure, traditions, religion culture etc. To cater to everyone’s requirement and keep them happy is a big challenge faced by HR today.
Q. 4) You have recruited few marketing executives recently, describe the induction procedure and methods for the same.- (10 marks)
Ans. Recruitment techniques are the means or media by which management contacts prospective
employees or provide necessary information or exchanges ideas in order to stimulate them to apply for jobs. Management uses different types of techniques to stimulate internal and external candidates.
The modern sources of Recruitment are: 1. Employee Referrals: Present employees are well aware of the qualifications, attitudes, experience and emotions of their friends and relatives. They are also aware of the job requirements and organizational culture of their company. As such they can make preliminary judgment regarding the match between the job and their friends and relatives. 2. Campus Recruitment: These candidates are directly recruited by the Co; from their college/educational institution. They are inexperienced as far as work experience is concerned. 3 Private Employment Agencies/Consultants: Public employment agencies or consultants like ABC Consultants in India perform recruitment functions on behalf of a client company by charging fees. Line managers are relieved from recruitment functions and can concentrate on operational activities. 4 Public Employment Exchanges: The Government set up Public Employment Exchanges in the country to provide information about vacancies to the candidates and to help the organization in finding out suitable candidates. As per the Employment Exchange act 1959, makes it obligatory for public sector and private sector enterprises in India to fill certain types of vacancies through public employment exchanges. 5. Professional Organizations: Professional organizations or associations maintain complete bio-data of their members and provide the same to various organizations on requisition. They act as an exchange between their members and recruiting firm. 6 Data Banks: The management can collect the bio-data of the candidates from different sources like Employment Exchange, Educational Training Institutes, candidates etc and feed them in the computer. It will become another source and the co can get the particulars as and when required. 7 Casual Applicants: Depending on the image of the organization its prompt response participation of the organization in the local activities, level of unemployment, candidates apply casually for jobs through mail or handover the application in the Personnel dept. This would be a suitable source for temporary and lower level jobs.
8 Similar Organizations: Generally experienced candidates are available in organizations producing similar products or are engaged in similar business. The Management can get potential candidates from this source. 9. Trade Unions: Generally unemployed or underemployed persons or employees seeking change in employment put a word to the trade union leaders with a view to getting suitable employment due to latter rapport with the management. 10.Walk In: The busy organization and rapid changing companies do not find time to perform various functions of recruitment. Therefore they advise the potential candidates to attend for an interview directly and without a prior application on a specified date, time and at a specified place. 11.Consult In: the busy and dynamic companies encourage the potential job seekers to approach them personally and consult them regarding the jobs. The companies select the suitable candidates and advise the company regarding the filling up of the positions. Head hunters are also called search consultants. 12.Body Shopping: Professional organizations and the hi-tech training develop the pool of human resource for the possible employment. The prospective employers contact these organizations to recruit the candidates. Otherwise the organizations themselves approach the prospective employers to place their human resources. These professional and training institutions are called body shoppers and these activities are known as body shopping. The body shopping is used mostly for computer professionals. Body shopping is also known as employee leasing activity. 13.Mergers and Acquisitions: Business alliances like acquisitions, mergers and take over help in getting human resources. In addition the companies do also alliances in sharing their human resource on adhoc basis. 14.E_recruitment: The technological revolution in telecommunications helped the organizations to use internet as a source of recruitment. Organizations advertise the job vacancies through the world wide wed (www). The job seekers send their applications through e-mail using the internet. 15.Outsourcing: Some organizations recently started developing human resource pool by employing the candidates for them. These organizations do not utilize the human resources; instead they supply HRs to various companies based on their needs on temporary or ad-hoc basis. Orientation/ Induction Programme-
A firm needs to make four strategic choices before designing its orientation programme. They arei) ii) iii) iv) Formal or informal Individual or collective Serial or disjunctive Investiture or divestiture i) ii) iii) iv) Formal ?----? Informal Individual ?--? Collective Serial ?---? Disjunctive Investiture ?--? Divestiture
i) Formal or Informal – In informal orientation, new hires are directly put on the jobs and they are expected to acclimatize themselves with the work and the organization. In contrast, orientation can be formal too. In formal orientation, the management has a structured programme which is executed when new employees join the organization. The choice between formal and informal orientation will depend on the management’s goals. The more formal the programme, the greater the likelihood that the new hire will acquire a known set of standards. That is, the new member is more likely to think and act like an executive, a management trainee, or a management professor. But an informal programme is desirable to maintain an individual differences. Innovative ideas to solve organizational problems and healthy questioning of the status quo are likely to be generated by a person who has been inducted informally. ii) Individual or CollectiveAnother choice to be made by the management is whether the new hires should be inducted individually or in groups. The individual approach is likely to develop far less homogeneous views than collective orientation. Individual orientation is more likely to preserve individual differences and perspectives. Orienting each person separately is an expensive and timeconsuming process. Collective orientation of the new hires solves the problems stated above. Most large organizations tend to have the collective orientation approach. But small firms, which have fewer
new appointees to socialize, frequently use the individual approach. Individual socialization is popular even with large firms when they hire executives whose number is small. iii) Serial or DisjunctiveOrientation becomes serial when an experienced employee inducts a new hire. The experienced employee acts as a tutor and model for the new hire. When new hires do not have predecessors available to guide them or to model their behavior upon, the orientation becomes disjunctive. Each option has its own advantages and pitfall. Serial orientation maintains traditions and customs. Consistent use of this strategy will ensure a minimum amount of change within the firm over time. Further, if the experienced employee is frustrated and apathetic towards work and the organization, it is likely that he or she would pass on the same to the new hire. iv) Investiture or DivestitureInvestiture orientation seeks to ratify the usefulness of the characteristics that the person brings to the new job. Most high-level appointments follow this approach. The final strategic choice relates to the need for maintaining or dismantling of the new hire’s identity. Investiture orientation seeks to ratify the usefulness of the characteristics that the person brings to the new job. Most high-level appointments follow this approach, because a person is appointed as an executive on the basis of what he or she can bring to the organization. The new hires are given freedom to select their office furnishings and subordinates and to make other decisions that will reflect on their performance.
Q. 5) ‘Failure in planning and developing HR could be a limiting factor in attaining organizational goal’ – Explain the statement in reference to the objectives and importance of HR planning. Ans. Manpower planning / Human Resource Planning means deciding the number and type of the human resources required for each job, unit and the total company for a particular future date in order to carry out organizational activities. Manpower planning may be viewed as foreseeing the human resources requirement of an organization and the future supply of human resources and (i) making necessary adjustments between these two and organizational plans and (ii) foreseeing the possibility of developing the supply of manpower resources in order to match it with the requirements by introducing necessary changes in the functions of human resources management. The process of human resource/manpower planning in an organization. Analysing the corporate and unit level strategies.
Demand Forecasting: Forecasting the overall human resources requirements in accordance with the organisational plans. Supply Forecasting: Obtaining the data and information about the present inventory of manpower and forecast the future changes in the human resources inventory.
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Estimating the net manpower requirement. In case of future surplus than plan for redeployment.
In case of future deficit, forecast the future supply of manpower from all sources with reference to plans of other companies. Plan for recruitment, development and internal mobility if future supply is more than or equal to net manpower requirements. Plan to modify and adjust the organizational plan if future supply will be inadequate with reference to future net requirements. Degree of uncertainty and length of planning period.
The above points are discussed in details: Demand Forecasting: The existing job design and analysis may thoroughly be reviewed keeping in view the future capabilities, knowledge and skills of present employees. Further the jobs should be redesigned and reanalyzed keeping in view the organizational and unit wise plans and programmes, future work quantum, future activity or task analysis, future skills, values, knowledge and capabilities of present employees and prospective employees. The jobs generally should be designed and analysed reflecting the future human resources and based on future organizational plans. Job analysis and forecast about the future components of human resources facilitate demand forecasting. One of the important aspects of demand forecasting of the quantity of human resources (skill, knowledge values, capabilities etc) in addition to quantity of human resources. Important forecasting methods are: -Managerial Judgment: Under this method, managers decide the number of employees required for future operations based on their past experience. -Statistical Techniques Include: ratio trend analysis and econometric models. Under ratio trend analysis, ratios are calculated for the past data and these ratios are used for the estimation of the future manpower requirements For eg. Present level of production (1-1-2005) Present number of foremen (1-1-2005) Ratio is 2000/4 2000 units 5 500
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Estimated production as on (1-1-2005) Foreman required as on (1-1-2005)
5000 units 5000/500 = 10
Econometric models for manpower planning are built up by analyzing the past statistical data and by bringing the relationship among variables. Work Study Techniques: Under this method, total production and activities in terms of clear units are estimated in a year. Then man-hours required to produce each unit is calculated, Later the required number of employees is calculated. For eg. Planned operations during 2005 = 1,60,000 units 0.25 40,000 2,000
Standard man-hours needed to perform each unit in 2005 = Planned man-hours needed per year in 2005 Work ability per employee in man-hours in 2005 Number of employees required in 2005 = = =
40000/20000=20
Supply Forecasting The first step of forecasting the future supply of human resources is to obtain the data and information about the present human resources inventory. Existing Inventory: The data relating to present human resources inventory in terms of humans components, number, designation-wise and department wise would be obtained. Principal dimensions of manpower planning are: 1. Head counts regarding total, department wise, sex-wise, designation-wise, skill-wise, pay roll wise etc. 2. Job Family Inventory: It includes number and category of employees of each job family i.e. all jobs related to the same category like clerks, cashiers, sub job family i.e. all jobs having common job characteristics (skill, qualification, similar operations) like production engineer (mechanical) and maintenance engineer (mechanical) and broad families like general administration, production etc. 3. Age Inventory: It includes age-wise number and category of employees. It indicates age wise imbalances in present inventory, which can be correlated in future selections and promotions.
Existing inventory at a future date is calculated as follows: Existing inventory at A future date = Present Inventory as on today+ Potential additions – Potential Losses Estimating the Net Man Power Requirements: Net manpower requirements in terns of number and components are to be determined in relation to the overall manpower requirements for a future date and supply forecast for that date. The difference between overall manpower and future supply of manpower is to be found out. The difference is the net manpower requirement. Action Plan for Redeployment, Redundancy/Retrenchment: If future surplus is estimated, the organization has to plan for redeployment, redundancy etc. If surplus is estimated in some jobs/departments, employees can be redeployed in other jobs/departments where the deficit of employees is estimated. The organization should also plan for training or re-orientation before redeployment of employees. Redeployment takes place in the form of transfers. If the deficit is not estimated in any job/department and surplus is estimated for the entire organization, the organization, in consultation with the trade unions has to plan for redundancy or retrenchment. Recruitment and Selection Plan: Recruitment and selection plan covers the number and type of employees required, when they are required for the job, time necessary for recruitment and selection process, recruitment sources, recruitment techniques to be used, selection procedure to be adopted and selection techniques to be used to subsequently recruiting the required candidates. It also covers the time factor for induction, preliminary training and placement. The importance of human resource / manpower planning in an organization is : 1. to recruit and retain the manpower of required quality and quantity. 2. to foresee the employee turnover and make the arrangements for minimizing turnover and filling up of consequent vacancies. 3. to meet the needs of the programmes of expansion, diversification etc. 4. to foresee the impact of technology on work, existing employees and future human resource requirements. 5. to improve the standards, skill, knowledge, ability, discipline etc. 6. to assess the surplus or shortage of manpower and take measures accordingly. 7. to maintain congenial industrial relations by maintaining optimum level and structure of human resources. 8. to minimize the imbalances caused sue to non-availability of human resources of the right kind, right number in right time and right place. 9. to make the best use of its human resources and 10. to estimate the cost of human resources.
Q. 6) ‘Regular feedback improves the performance of employees.’ Explain the importance and latest techniques of performance appraisal in brief. Ans. Performance appraisal is a method of evaluating the behaviour of employees in the work place normally including both the quantitative and qualitative aspects of job performance.
Performance refers to the degree of accomplishment of the tasks that make up an individual’s job. It indicates how ell an individual is fulfilling the job demands. Every organization has to decide upon the content to be appraised before the programme is approved on the basis of job analysis. The content to be appraised may vary with the purpose of appraisal and type and level of employees. The key factor in an organization to support an effective performance appraisal system is as follows: Organizational planning based on potentialities of human resources.
Human Resource Planning based on weakness, strengths and potentialities of human resources. Organizational effectiveness through performance improvement Fixation and refixation of salary, allowances, incentives and benefits Original placement or placement adjustment decisions
Identifying training and development needs and to evaluate effectiveness of training and development Needs and to evaluate effectiveness of training and development programmes Career planning and development and movement of employees.
Objectives of Performance Appraisal System :- Performance appraisal aims at attaining the different purposes. They are :
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To create and maintain a satisfactory level of performance. To contribute to the employee growth and development through training, self and management development programmes. Tata Power aims at employee development through performance appraisal. To help the superiors to have a proper understanding about their subordinates. To guide the job changes with the help to continuous ranking. To facilitate fair and equitable compensation based on performance. To facilitate for testing and validating selection tests, interview techniques through comparing their scores with performance appraisal ranks.
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To provide information for making decisions regarding lay-off, retrenchment etc. as in the case of Hyundai Engineering.
Q. 7) Write short notes on any two: a) Organization downsizing Ans. Downsizing necessarily means reducing work force to an optimal level depending upon the business conditions and organizational needs. It is said that an organization should be rightly staffed ie. It should not be overstaffed and or understaffed. There are broadly following method used to downsize the workforce as mentioned below.
Retrenchment: It means termination of service. It is a termination for reasons other than disciplinary actions, retirement or superannuating, expiry and termination of contract or prolonged illness. Retrenchment compensation and notice for retrenchment are only pre-conditions for retrenchment and not a right, which a retrenched worker can claim. If notice and compensation are not given, the worker will not be called as retrenched. Compensation is payable for 15 days wages for every completed year of service besides one month’s notice or pay in lieu of notice. But employee should have completed at least one year of complete service in order to receive compensation.
Lay Offs Lay of is inability of the employer to provide employment to workers due to circumstances beyond his control such as shortage of power, coal, breakdown of machinery, natural calamity etc. It is not a termination of service. Lay off compensation can be claimed as a statutory right by the worker if he has completed one year of continuous service or has worked for 240 days
on the surface or 190 days underground in 12 calendar months. Compensation payable is half of the wages.
Voluntary Retirement Schemes VRS are announced when there is a huge pool of old aged manpower occupying senior positions amounting to surplus. Many organizations are providing liberal incentives to leave before age of superannuating. VRS in other words is a retirement before the age of retirement.
b) Participation management Ans. The concept of Workers Participation Management is considered as a mechanism where Workers have a say in the decision making process of an enterprise. The concept crystallizes the Concept of industrial democracy and indicates an attempt on the part of an employer to build his Employees into a team which works towards the realization of a common objective. It is a mental and Emotional involvement of a person in a group situation which encourages him to contribute to goals and share responsibilities in them. The main objective of WPM in management include To promote increased productivity for the advantage of the organization, workers and society at large. To provide a better understanding to employees about their role and place in the process of attainment of organizational goals. To satisfy the workers social and esteem needs
To strengthen labour management co-operation and thus maintaining industrial peace and harmony.
To develop social education for effective solidarity among the working community and for tapping latent human resources. An ideological point of view to develop self management in industry To build the most dynamic human resource To build the nation through entrepreneurship and economic development.
Forms of WPM include works committees, Joint Management councils, Joint Councils and Shop Councils. c) Career stages Ans. According to Boehlert, the five definite stages of development from the guidance point of view are: 1. Stage of Growth until 13 years: This stage is regarded as the stage of fantasy. The individual has rapid physical and mental development and participates in all types of activities irrespective of whether it suits his abilities, temperament or not. He fantasies himself in future roles without considering whether he can actually accomplish them. He has still not developed his value system and a definite plan of action to forge ahead. The need for guidance at this stage is most important in the area of development and adjustment. If for any reason, he feels thwarted or strangulated, it would permanently damage his personality, e.g. if parental attitudes are dominant or overprotective; or there is tremendous sibling jealousy, or there is unhealthy antagonistic environment at school. Guidance is also needed in the area of educational and professional development. 2. Stage of Exploration: This is the second stage of development from ages 13 to 25 and is called the tentative stage. By 13, the individual begins to show specialization as special abilities or aptitudes come into prominence. From the world of fantasy, he begins to settle down to a certain plan of action or shows consistency in his participation of activities, not randomly selected or visualizes an educational course which will lead him to his vocational choice and so on. As mentioned, he begins to explore all opportunities coming his way and makes a choice, not out of sheer pleasure or fancy but out of careful considerations of what is possible for him or good for him.
Guidance is needed most in the adjustment area, as the individual enters adolescence and finds himself lost with the world around him. Most of the work of a guidance counselor is concentrated at this stage of development. If the individual is properly guided at this stage, his further development will be facilitated. 3. Stage of Establishment: This is the third stage in the development progress between the age group of 25 and 40 years, and it is called the realistic stage. By now, the individual is in a career and has completed formal training and education. He has to gain vocational development, adjustment and maturity. Guidance may be required, if the individual finds that his inter-personal relationship is not in order and is not able to get along with his colleagues or his boss. If he has developed sensitiveness to the miseries of the people around him and desires to do some civic or community service to the disturbed or the handicapped, he may ask guidance in the area and plan his time and energy to gain maximum satisfaction. 4. Stage of Maintenance: The fourth stage is referred to as a stage of stability, between ages 40 and 65. He has by now accomplished all what he needs to and has almost come to the stage of retirement. The guidance that he needs, at this stage is with regard to economic matters and leisure time. If he is dependent on his children, at this stage, he normally intends passing his time in religious activities and projects connected with religious institutions.
5. Stage of Decline: This is the fifth stage, around the age of 65 to 75, when the adjustments become the most. Unless the individual has had a full, contented life, this period becomes one of trials and tribulations. The greatest need is to help the individual to feel that he is wanted, that he is still useful and that his family members care for him. Also gradually, he needs to be prepared to face death and whatever his ailments be, he has to learn to bear them with courage and cheerfulness till the very end. Thus, we see that at each stage of development, guidance is required and is necessarily sought and if given systematically and scientifically it will help to make the individual fully satisfied and life worth living.
d) Job Evaluation Ans. Job evaluation deals with money and work. It determines the relative worth or money value of jobs. The International Labour Organisation defined job evaluation as “an attempt to determine and compare demands which the normal performance of a particular job makes on normal workers without taking into account the individual abilities or performance of the workers concerned”. Wendell L. French defined job evaluation as “a process of determining the relative worth of the various job within the organisation, so that different wages may be paid to jobs of different worth”. Job evaluation is defined as “the overall activity of involving an orderly, systematic method and procedure of ranking, grading and weighing of jobs to determine the value of a specific job in relation to other jobs”. British Institute of Management (1970) defined job evaluation as, “the process of analysing and assessing the content of jobs, in order to place them in an acceptable rank order which can then be used as a basis for a remuneration system. Job evaluation, therefore, is simply a technique designed to assist in the development of new pay structures by defining relatives between jobs on a consistent and systematic basis”. Thus, job evaluation may be defined as a process of determining the relative worth of jobs, ranking and grading them by comparing the duties, responsibilities like skill, knowledge of a job with other jobs with a view to fix compensation payable to the concerned job holder.
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papers with solution
HRM November 2008
Section I Q. 1) Explain the concepts in brief: (10) a) Fringe benefits Ans. Fringe benefit is a very vast concept; it includes benefits such as, -Provident fund, gratuity, medical care, hospitalization, accident relief, canteen, uniform and the like. They also include benefits such as - Paid vacation, pension. Features of Fringe Benefits-Different from regular wages -Useful but avoidable expenditure -Not directly linked with efforts -Beneficial to all employees Objectives of Fringe Benefits-To supplement direct remuneration -To recruit and retain the employees -To protect employees -To create positive employees attitude
b) HRIS Ans. The computerized human resource system is known as human resource information system or HRIS. HRIS maintains the updated information relating to all aspects of human resources of the organization and works as decision support system. Its input is raw data and output is information. It is a system that acquires, manipulates, analyses, stores, retrieves and makes available the instant information in respect of human resources of the organization. c) VRS
Ans. VRS is Voluntary Retirement Scheme. VRS are announced when there is a huge pool of old aged manpower occupying senior positions amounting to surplus. Many organizations are providing liberal incentives to leave before age of superannuating. VRS in other words is a retirement before the age of retirement. d) Employee empowerment Ans. Employee empowerment is the redistribution of power determining the human resources in an organization. For employee empowerment to work successfully, the management team must be truly committed to allowing employees to make decisions. They may wish to define the scope of decisions made. Building decision-making teams is often one of the models used in employee empowerment, because it allows for managers and workers to contribute ideas toward directing the company. One easy way to begin employee empowerment in the workplace is to install a suggestion box, where workers can make suggestions without fear of punishment or retribution. e) Fair wages Ans. Fair Wage is understood in two ways. In a narrow sense, wage is fair if it is equal to the rate prevailing in the same trade and in the neighborhood for similar work. In a wider sense, it will be fair if it is equal to the predominant rate for similar work throughout the country and for traders in general. Thus, fair wage is equal pay for equal work i.e. wage payment to be fair to all workers to enjoy higher standard of living.
Section II
Q. 3) Explain the characteristics of today’s workforce. Ans. DefinitionIt is proposed that we take human resource management to be that part of management concerned with:
All the decisions, strategies, factors, principles, operations, practices, functions, activities and methods related to the management of people as employees in any type of organisation (including small and micro enterprises and virtual organisations); All the dimensions related to people in their employment relationships, and all the dynamics that flow from it (including in the realisation of the potential of individual employees in terms of their aspirations); All aimed at adding value to the delivery of goods and services, as well as to the quality of work life for employees, and hence helping to ensure continuous organisational success in transformative environments.
The functions of HRM can be broadly classified into two categories viz 1) Managerial Functions 2) Operative Functions : FUNCTIONS OF HRM Managerial Functions Operative Functions
Planning Organising Directing Controlling
Employment Human Resources Development Compensation Human Relations Industrial Relations Recent Trends in HRM
1. Managerial Functions: Managerial functions of personnel management involve planning, organizing, directing and controlling. Planning: It is pre-determined course of action. Planning pertains to formulating strategies of personnel programmes and changes in advance that will contribute to the organizational goals. It involves planning of human resources, requirements, recruitment, selection, training etc. It also involves forecasting of personnel needs, changing values, attitudes and behaviour of employees and their impact on the organization. Organising : An organization is a means to an end. It is essential to carry out the determined course of action. An organization is a structure and a process by which a co-operative group of human beings allocates its task among its members, identifies relationships and integrates its activities towards a common objective. Complex relationships exist between the specialized departments and the general departments as many top managers are seeking the advice of the personnel manager. Thus an organization establishes relationships among the employees so that they can collectively contribute to the attainment of company goals. Directing : The next logical function after completing planning and organizing is the execution of the plan. The basic function of personnel management at any level is motivating, commanding, leading and activating people. The willing and effective co-operation of employees for the attainment of organizational goals is possible through proper direction. Tapping the maximum potentialities of the people is possible through motivation and command. Coordination deals with the task of blending efforts in order to ensure successful attainment of an objective. Controlling: After planning, organizing and directing various activities of personnel management, the performance is to be verified in order to know that the personnel functions are performed in conformity with the plans and directions of an organization. Controlling also involves checking, verifying and comparing of the actuals with the plans, identification of deviations if any and standards through controls. Auditing training programmes, analyzing labour turnover records, directing morale surveys, conducting separate interviews are some of the means of controlling the personnel management function and making it effective.
2. Operative Functions: The operative functions of human resources management are related to specific activities of personnel management viz, employment, development, compensation and relations. All these functions are interacted with managerial functions. Employment: It is the first operative function of Human Resource Management. Employment is concerned with securing and employing the people possessing the required kind and level of human resources necessary to achieve the organizational objectives. It covers functions such as job analysis, human resource planning, recruitment, selection, placement, induction and internal mobility. Human Resource Development: It is a process of improving, molding and changing the skills, knowledge, creative ability, aptitude, values, commitment etc., based on present and future job and organizational requirements. It includes Performance Appraisal, Training, Management Development, Career Planning and Development, Internal Mobility, Transfer, Promotion, Demotion, Change and Organisational Development. Compensation: It is a process of providing adequate, equitable and fair remuneration to the employees. It includes job evaluation, wage administration and salary administration, incentives, bonus, fringe benefits, social security measures etc. Human Relations: Practicing various human resources policies and programmes like employment, development and compensation and interaction among employees create a sense of relationship between the individual worker and management, among workers and trade unions and the management. It is a process of interaction among human beings. Human relations is an rear of management in integrating people into work situations in a away that motivates them to work together productively co-operatively and with economic, psychological and social satisfaction. It includes: Understanding and applying the models of perception, personality, learning, intra and inter personnel relations, intra and inter group relations. Motivating the employees Boosting employee morale Developing the communication skills Developing the communications skills
Redressing employee grievances properly and in time by means of a well-formulated grievance procedure.
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Handling disciplinary cases by means of an established disciplinary procedure.
Counseling the employees in solving their personal, family and work problems and releasing their stress. Strain and tensions. Improving quality of work life of employees through participation and other means.
Industrial Relations: Industrial relations refer to the study of relations among employees, employer, government and trade unions. Industrial relations include: Indian labour market Trade unionism Collective bargaining Industrial conflicts Worker’s participation in management and Quality circles
Recent Trends in HRM : Human Resources Management has been advancing at a fast rate. The recent trends in HRM include: Quality of work life Total quality in human resources HR accounting, audit and research and Recent techniques of HRM
The challenges of HRM in the present organizational context. A goal seeking organizations especially one that seeks improvement over the current situation is a challenge, taking organization. When many such goals are pursued tremendous internal pressures some of them conflicting, tend to be generated. Unless the organization develops mechanisms for coping with these self-generated pressures, it may face major failure and suffer disastrous retreats from its goal.
Human Resource function cannot be performed in a vacuum. There are many challenges that it has to face to survive. All these challenges are discussed below. 1. Technological factors: Just as necessity is the mother of invention competition and a host of other reasons are responsible for the rapid technological changes and innovations. As a consequence of these changes, technical personnel, skilled workers, computer operators and machine operators are increasingly required while the demand for other categories of employers has declined. Hence procurement of skilled employees and their increase in numbers to match the changing job requirements has become a complicated task. 2. Human Resource in the Country: The structure, values and the level of education of human resource in a country influence much of the Human Resource function. The influence of manpower in the country can be studies through the changes in structure of employment. a. Change in the Structure of Employment: The structure of employment in an organization changes with the entrance of workforce with different backgrounds (Social economic, region, community, sex, religion, traditions culture etc). There has been a significant change in the structure of employment with the entry of 1) candidates belonging to the schedule castes, schedules tribes and backward communities. 2) More female employees, due to increased career orientation among women to the suitability of women for certain jobs and to women becoming more acclimatized to the working climate and higher level of commitment. 3) The workforce consists of different regions but due to increased transportation facilities and mobile character of people. These changes in workforce are a challenge and a complicated task of HR function. It has to deal with employees with different backgrounds. 3. Changes in employee Roles and their Values: Earlier the management could totally control its employees and get the desired output. Today the employees have to be considered as a partner in the organization. Changing structure of workforce has led to the introduction of new values in organization. Among these are moves 1) emphasis on quality of life rather than quantity ii) equality and justice for employees over economic efficiency iii) participation over authority. iv) Workers now prefer flexible working hours to fixed time schedule. v) Level of education in recent years is comparatively very higher. Increased formal education has led to the change of attitude of the employees. 4. Changing demands of employer: changes always are not on the side of employees. Organizations also undergo changes and consequently their demands on employees will also change. The information technological revolution and neck to neck marketing competition of most of the organizations due to globalization demand that the existing employees adopt to the ever-changing work situation and learn new skills, knowledge etc to cope with the new changes.
5. Government and Legal factors: Until 1940 the government was not involved or interested regarding the problems of labor or industry. But the need for Govt., interference arose out of the belief that Government is the custodian of industrial and economic activities. The role of the government in business has after 1991 with the announcement of economic liberalization. However awareness of legislations is very important like the Factory Act, 1948, Trade Union act 1962, Payment of wages Act 1936, The Minimum Wages Act 1923, The Payment of Bonus Act 1965, The Employment Exchange Act, Standing Order Act 1946, Maternity Benefit Act 1961, and The Apprentice Act 1961. All these acts if not complied with can get the organization into deep trouble. 6. Customers: Organizations produce products or render services for the ultimate consumption use by the customer. In other words organizations depend upon customers for their survival and growth. Customers revolt against employees, if the services rendered are less qualitative. The banks face such type of challenges. Customers may develop a negative attitude towards the organization, if it does not follow the social policies of the country. Hence the customers pose a challenge special ally in service industry. 7. Social factors: Social environment consists of class structure, mobility social roles social values nature and development of social institutions caste structure and occupational structure, traditions, religion culture etc. To cater to everyone’s requirement and keep them happy is a big challenge faced by HR today.
Q. 4) You have recruited few marketing executives recently, describe the induction procedure and methods for the same.- (10 marks)
Ans. Recruitment techniques are the means or media by which management contacts prospective
employees or provide necessary information or exchanges ideas in order to stimulate them to apply for jobs. Management uses different types of techniques to stimulate internal and external candidates.
The modern sources of Recruitment are: 1. Employee Referrals: Present employees are well aware of the qualifications, attitudes, experience and emotions of their friends and relatives. They are also aware of the job requirements and organizational culture of their company. As such they can make preliminary judgment regarding the match between the job and their friends and relatives. 2. Campus Recruitment: These candidates are directly recruited by the Co; from their college/educational institution. They are inexperienced as far as work experience is concerned. 3 Private Employment Agencies/Consultants: Public employment agencies or consultants like ABC Consultants in India perform recruitment functions on behalf of a client company by charging fees. Line managers are relieved from recruitment functions and can concentrate on operational activities. 4 Public Employment Exchanges: The Government set up Public Employment Exchanges in the country to provide information about vacancies to the candidates and to help the organization in finding out suitable candidates. As per the Employment Exchange act 1959, makes it obligatory for public sector and private sector enterprises in India to fill certain types of vacancies through public employment exchanges. 5. Professional Organizations: Professional organizations or associations maintain complete bio-data of their members and provide the same to various organizations on requisition. They act as an exchange between their members and recruiting firm. 6 Data Banks: The management can collect the bio-data of the candidates from different sources like Employment Exchange, Educational Training Institutes, candidates etc and feed them in the computer. It will become another source and the co can get the particulars as and when required. 7 Casual Applicants: Depending on the image of the organization its prompt response participation of the organization in the local activities, level of unemployment, candidates apply casually for jobs through mail or handover the application in the Personnel dept. This would be a suitable source for temporary and lower level jobs.
8 Similar Organizations: Generally experienced candidates are available in organizations producing similar products or are engaged in similar business. The Management can get potential candidates from this source. 9. Trade Unions: Generally unemployed or underemployed persons or employees seeking change in employment put a word to the trade union leaders with a view to getting suitable employment due to latter rapport with the management. 10.Walk In: The busy organization and rapid changing companies do not find time to perform various functions of recruitment. Therefore they advise the potential candidates to attend for an interview directly and without a prior application on a specified date, time and at a specified place. 11.Consult In: the busy and dynamic companies encourage the potential job seekers to approach them personally and consult them regarding the jobs. The companies select the suitable candidates and advise the company regarding the filling up of the positions. Head hunters are also called search consultants. 12.Body Shopping: Professional organizations and the hi-tech training develop the pool of human resource for the possible employment. The prospective employers contact these organizations to recruit the candidates. Otherwise the organizations themselves approach the prospective employers to place their human resources. These professional and training institutions are called body shoppers and these activities are known as body shopping. The body shopping is used mostly for computer professionals. Body shopping is also known as employee leasing activity. 13.Mergers and Acquisitions: Business alliances like acquisitions, mergers and take over help in getting human resources. In addition the companies do also alliances in sharing their human resource on adhoc basis. 14.E_recruitment: The technological revolution in telecommunications helped the organizations to use internet as a source of recruitment. Organizations advertise the job vacancies through the world wide wed (www). The job seekers send their applications through e-mail using the internet. 15.Outsourcing: Some organizations recently started developing human resource pool by employing the candidates for them. These organizations do not utilize the human resources; instead they supply HRs to various companies based on their needs on temporary or ad-hoc basis. Orientation/ Induction Programme-
A firm needs to make four strategic choices before designing its orientation programme. They arei) ii) iii) iv) Formal or informal Individual or collective Serial or disjunctive Investiture or divestiture i) ii) iii) iv) Formal ?----? Informal Individual ?--? Collective Serial ?---? Disjunctive Investiture ?--? Divestiture
i) Formal or Informal – In informal orientation, new hires are directly put on the jobs and they are expected to acclimatize themselves with the work and the organization. In contrast, orientation can be formal too. In formal orientation, the management has a structured programme which is executed when new employees join the organization. The choice between formal and informal orientation will depend on the management’s goals. The more formal the programme, the greater the likelihood that the new hire will acquire a known set of standards. That is, the new member is more likely to think and act like an executive, a management trainee, or a management professor. But an informal programme is desirable to maintain an individual differences. Innovative ideas to solve organizational problems and healthy questioning of the status quo are likely to be generated by a person who has been inducted informally. ii) Individual or CollectiveAnother choice to be made by the management is whether the new hires should be inducted individually or in groups. The individual approach is likely to develop far less homogeneous views than collective orientation. Individual orientation is more likely to preserve individual differences and perspectives. Orienting each person separately is an expensive and timeconsuming process. Collective orientation of the new hires solves the problems stated above. Most large organizations tend to have the collective orientation approach. But small firms, which have fewer
new appointees to socialize, frequently use the individual approach. Individual socialization is popular even with large firms when they hire executives whose number is small. iii) Serial or DisjunctiveOrientation becomes serial when an experienced employee inducts a new hire. The experienced employee acts as a tutor and model for the new hire. When new hires do not have predecessors available to guide them or to model their behavior upon, the orientation becomes disjunctive. Each option has its own advantages and pitfall. Serial orientation maintains traditions and customs. Consistent use of this strategy will ensure a minimum amount of change within the firm over time. Further, if the experienced employee is frustrated and apathetic towards work and the organization, it is likely that he or she would pass on the same to the new hire. iv) Investiture or DivestitureInvestiture orientation seeks to ratify the usefulness of the characteristics that the person brings to the new job. Most high-level appointments follow this approach. The final strategic choice relates to the need for maintaining or dismantling of the new hire’s identity. Investiture orientation seeks to ratify the usefulness of the characteristics that the person brings to the new job. Most high-level appointments follow this approach, because a person is appointed as an executive on the basis of what he or she can bring to the organization. The new hires are given freedom to select their office furnishings and subordinates and to make other decisions that will reflect on their performance.
Q. 5) ‘Failure in planning and developing HR could be a limiting factor in attaining organizational goal’ – Explain the statement in reference to the objectives and importance of HR planning. Ans. Manpower planning / Human Resource Planning means deciding the number and type of the human resources required for each job, unit and the total company for a particular future date in order to carry out organizational activities. Manpower planning may be viewed as foreseeing the human resources requirement of an organization and the future supply of human resources and (i) making necessary adjustments between these two and organizational plans and (ii) foreseeing the possibility of developing the supply of manpower resources in order to match it with the requirements by introducing necessary changes in the functions of human resources management. The process of human resource/manpower planning in an organization. Analysing the corporate and unit level strategies.
Demand Forecasting: Forecasting the overall human resources requirements in accordance with the organisational plans. Supply Forecasting: Obtaining the data and information about the present inventory of manpower and forecast the future changes in the human resources inventory.
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Estimating the net manpower requirement. In case of future surplus than plan for redeployment.
In case of future deficit, forecast the future supply of manpower from all sources with reference to plans of other companies. Plan for recruitment, development and internal mobility if future supply is more than or equal to net manpower requirements. Plan to modify and adjust the organizational plan if future supply will be inadequate with reference to future net requirements. Degree of uncertainty and length of planning period.
The above points are discussed in details: Demand Forecasting: The existing job design and analysis may thoroughly be reviewed keeping in view the future capabilities, knowledge and skills of present employees. Further the jobs should be redesigned and reanalyzed keeping in view the organizational and unit wise plans and programmes, future work quantum, future activity or task analysis, future skills, values, knowledge and capabilities of present employees and prospective employees. The jobs generally should be designed and analysed reflecting the future human resources and based on future organizational plans. Job analysis and forecast about the future components of human resources facilitate demand forecasting. One of the important aspects of demand forecasting of the quantity of human resources (skill, knowledge values, capabilities etc) in addition to quantity of human resources. Important forecasting methods are: -Managerial Judgment: Under this method, managers decide the number of employees required for future operations based on their past experience. -Statistical Techniques Include: ratio trend analysis and econometric models. Under ratio trend analysis, ratios are calculated for the past data and these ratios are used for the estimation of the future manpower requirements For eg. Present level of production (1-1-2005) Present number of foremen (1-1-2005) Ratio is 2000/4 2000 units 5 500
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Estimated production as on (1-1-2005) Foreman required as on (1-1-2005)
5000 units 5000/500 = 10
Econometric models for manpower planning are built up by analyzing the past statistical data and by bringing the relationship among variables. Work Study Techniques: Under this method, total production and activities in terms of clear units are estimated in a year. Then man-hours required to produce each unit is calculated, Later the required number of employees is calculated. For eg. Planned operations during 2005 = 1,60,000 units 0.25 40,000 2,000
Standard man-hours needed to perform each unit in 2005 = Planned man-hours needed per year in 2005 Work ability per employee in man-hours in 2005 Number of employees required in 2005 = = =
40000/20000=20
Supply Forecasting The first step of forecasting the future supply of human resources is to obtain the data and information about the present human resources inventory. Existing Inventory: The data relating to present human resources inventory in terms of humans components, number, designation-wise and department wise would be obtained. Principal dimensions of manpower planning are: 1. Head counts regarding total, department wise, sex-wise, designation-wise, skill-wise, pay roll wise etc. 2. Job Family Inventory: It includes number and category of employees of each job family i.e. all jobs related to the same category like clerks, cashiers, sub job family i.e. all jobs having common job characteristics (skill, qualification, similar operations) like production engineer (mechanical) and maintenance engineer (mechanical) and broad families like general administration, production etc. 3. Age Inventory: It includes age-wise number and category of employees. It indicates age wise imbalances in present inventory, which can be correlated in future selections and promotions.
Existing inventory at a future date is calculated as follows: Existing inventory at A future date = Present Inventory as on today+ Potential additions – Potential Losses Estimating the Net Man Power Requirements: Net manpower requirements in terns of number and components are to be determined in relation to the overall manpower requirements for a future date and supply forecast for that date. The difference between overall manpower and future supply of manpower is to be found out. The difference is the net manpower requirement. Action Plan for Redeployment, Redundancy/Retrenchment: If future surplus is estimated, the organization has to plan for redeployment, redundancy etc. If surplus is estimated in some jobs/departments, employees can be redeployed in other jobs/departments where the deficit of employees is estimated. The organization should also plan for training or re-orientation before redeployment of employees. Redeployment takes place in the form of transfers. If the deficit is not estimated in any job/department and surplus is estimated for the entire organization, the organization, in consultation with the trade unions has to plan for redundancy or retrenchment. Recruitment and Selection Plan: Recruitment and selection plan covers the number and type of employees required, when they are required for the job, time necessary for recruitment and selection process, recruitment sources, recruitment techniques to be used, selection procedure to be adopted and selection techniques to be used to subsequently recruiting the required candidates. It also covers the time factor for induction, preliminary training and placement. The importance of human resource / manpower planning in an organization is : 1. to recruit and retain the manpower of required quality and quantity. 2. to foresee the employee turnover and make the arrangements for minimizing turnover and filling up of consequent vacancies. 3. to meet the needs of the programmes of expansion, diversification etc. 4. to foresee the impact of technology on work, existing employees and future human resource requirements. 5. to improve the standards, skill, knowledge, ability, discipline etc. 6. to assess the surplus or shortage of manpower and take measures accordingly. 7. to maintain congenial industrial relations by maintaining optimum level and structure of human resources. 8. to minimize the imbalances caused sue to non-availability of human resources of the right kind, right number in right time and right place. 9. to make the best use of its human resources and 10. to estimate the cost of human resources.
Q. 6) ‘Regular feedback improves the performance of employees.’ Explain the importance and latest techniques of performance appraisal in brief. Ans. Performance appraisal is a method of evaluating the behaviour of employees in the work place normally including both the quantitative and qualitative aspects of job performance.
Performance refers to the degree of accomplishment of the tasks that make up an individual’s job. It indicates how ell an individual is fulfilling the job demands. Every organization has to decide upon the content to be appraised before the programme is approved on the basis of job analysis. The content to be appraised may vary with the purpose of appraisal and type and level of employees. The key factor in an organization to support an effective performance appraisal system is as follows: Organizational planning based on potentialities of human resources.
Human Resource Planning based on weakness, strengths and potentialities of human resources. Organizational effectiveness through performance improvement Fixation and refixation of salary, allowances, incentives and benefits Original placement or placement adjustment decisions
Identifying training and development needs and to evaluate effectiveness of training and development Needs and to evaluate effectiveness of training and development programmes Career planning and development and movement of employees.
Objectives of Performance Appraisal System :- Performance appraisal aims at attaining the different purposes. They are :
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To create and maintain a satisfactory level of performance. To contribute to the employee growth and development through training, self and management development programmes. Tata Power aims at employee development through performance appraisal. To help the superiors to have a proper understanding about their subordinates. To guide the job changes with the help to continuous ranking. To facilitate fair and equitable compensation based on performance. To facilitate for testing and validating selection tests, interview techniques through comparing their scores with performance appraisal ranks.
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To provide information for making decisions regarding lay-off, retrenchment etc. as in the case of Hyundai Engineering.
Q. 7) Write short notes on any two: a) Organization downsizing Ans. Downsizing necessarily means reducing work force to an optimal level depending upon the business conditions and organizational needs. It is said that an organization should be rightly staffed ie. It should not be overstaffed and or understaffed. There are broadly following method used to downsize the workforce as mentioned below.
Retrenchment: It means termination of service. It is a termination for reasons other than disciplinary actions, retirement or superannuating, expiry and termination of contract or prolonged illness. Retrenchment compensation and notice for retrenchment are only pre-conditions for retrenchment and not a right, which a retrenched worker can claim. If notice and compensation are not given, the worker will not be called as retrenched. Compensation is payable for 15 days wages for every completed year of service besides one month’s notice or pay in lieu of notice. But employee should have completed at least one year of complete service in order to receive compensation.
Lay Offs Lay of is inability of the employer to provide employment to workers due to circumstances beyond his control such as shortage of power, coal, breakdown of machinery, natural calamity etc. It is not a termination of service. Lay off compensation can be claimed as a statutory right by the worker if he has completed one year of continuous service or has worked for 240 days
on the surface or 190 days underground in 12 calendar months. Compensation payable is half of the wages.
Voluntary Retirement Schemes VRS are announced when there is a huge pool of old aged manpower occupying senior positions amounting to surplus. Many organizations are providing liberal incentives to leave before age of superannuating. VRS in other words is a retirement before the age of retirement.
b) Participation management Ans. The concept of Workers Participation Management is considered as a mechanism where Workers have a say in the decision making process of an enterprise. The concept crystallizes the Concept of industrial democracy and indicates an attempt on the part of an employer to build his Employees into a team which works towards the realization of a common objective. It is a mental and Emotional involvement of a person in a group situation which encourages him to contribute to goals and share responsibilities in them. The main objective of WPM in management include To promote increased productivity for the advantage of the organization, workers and society at large. To provide a better understanding to employees about their role and place in the process of attainment of organizational goals. To satisfy the workers social and esteem needs
To strengthen labour management co-operation and thus maintaining industrial peace and harmony.
To develop social education for effective solidarity among the working community and for tapping latent human resources. An ideological point of view to develop self management in industry To build the most dynamic human resource To build the nation through entrepreneurship and economic development.
Forms of WPM include works committees, Joint Management councils, Joint Councils and Shop Councils. c) Career stages Ans. According to Boehlert, the five definite stages of development from the guidance point of view are: 1. Stage of Growth until 13 years: This stage is regarded as the stage of fantasy. The individual has rapid physical and mental development and participates in all types of activities irrespective of whether it suits his abilities, temperament or not. He fantasies himself in future roles without considering whether he can actually accomplish them. He has still not developed his value system and a definite plan of action to forge ahead. The need for guidance at this stage is most important in the area of development and adjustment. If for any reason, he feels thwarted or strangulated, it would permanently damage his personality, e.g. if parental attitudes are dominant or overprotective; or there is tremendous sibling jealousy, or there is unhealthy antagonistic environment at school. Guidance is also needed in the area of educational and professional development. 2. Stage of Exploration: This is the second stage of development from ages 13 to 25 and is called the tentative stage. By 13, the individual begins to show specialization as special abilities or aptitudes come into prominence. From the world of fantasy, he begins to settle down to a certain plan of action or shows consistency in his participation of activities, not randomly selected or visualizes an educational course which will lead him to his vocational choice and so on. As mentioned, he begins to explore all opportunities coming his way and makes a choice, not out of sheer pleasure or fancy but out of careful considerations of what is possible for him or good for him.
Guidance is needed most in the adjustment area, as the individual enters adolescence and finds himself lost with the world around him. Most of the work of a guidance counselor is concentrated at this stage of development. If the individual is properly guided at this stage, his further development will be facilitated. 3. Stage of Establishment: This is the third stage in the development progress between the age group of 25 and 40 years, and it is called the realistic stage. By now, the individual is in a career and has completed formal training and education. He has to gain vocational development, adjustment and maturity. Guidance may be required, if the individual finds that his inter-personal relationship is not in order and is not able to get along with his colleagues or his boss. If he has developed sensitiveness to the miseries of the people around him and desires to do some civic or community service to the disturbed or the handicapped, he may ask guidance in the area and plan his time and energy to gain maximum satisfaction. 4. Stage of Maintenance: The fourth stage is referred to as a stage of stability, between ages 40 and 65. He has by now accomplished all what he needs to and has almost come to the stage of retirement. The guidance that he needs, at this stage is with regard to economic matters and leisure time. If he is dependent on his children, at this stage, he normally intends passing his time in religious activities and projects connected with religious institutions.
5. Stage of Decline: This is the fifth stage, around the age of 65 to 75, when the adjustments become the most. Unless the individual has had a full, contented life, this period becomes one of trials and tribulations. The greatest need is to help the individual to feel that he is wanted, that he is still useful and that his family members care for him. Also gradually, he needs to be prepared to face death and whatever his ailments be, he has to learn to bear them with courage and cheerfulness till the very end. Thus, we see that at each stage of development, guidance is required and is necessarily sought and if given systematically and scientifically it will help to make the individual fully satisfied and life worth living.
d) Job Evaluation Ans. Job evaluation deals with money and work. It determines the relative worth or money value of jobs. The International Labour Organisation defined job evaluation as “an attempt to determine and compare demands which the normal performance of a particular job makes on normal workers without taking into account the individual abilities or performance of the workers concerned”. Wendell L. French defined job evaluation as “a process of determining the relative worth of the various job within the organisation, so that different wages may be paid to jobs of different worth”. Job evaluation is defined as “the overall activity of involving an orderly, systematic method and procedure of ranking, grading and weighing of jobs to determine the value of a specific job in relation to other jobs”. British Institute of Management (1970) defined job evaluation as, “the process of analysing and assessing the content of jobs, in order to place them in an acceptable rank order which can then be used as a basis for a remuneration system. Job evaluation, therefore, is simply a technique designed to assist in the development of new pay structures by defining relatives between jobs on a consistent and systematic basis”. Thus, job evaluation may be defined as a process of determining the relative worth of jobs, ranking and grading them by comparing the duties, responsibilities like skill, knowledge of a job with other jobs with a view to fix compensation payable to the concerned job holder.
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