HUMAN RESOURCE MANAGEMENT

UNIT –I

SECTION – A

1) Write the meaning of HRM.

The term HRM is basically concerned with the task of procuring,

developing, maintaining and utilising the manpower resource effectively in an

enterprise can be realised.

2) Define HRM.

According to Prof. Jucius, Human Resource or human factors refer to ‘’ a

whole consisting of inter-related, interdependent and interacting physiological,

psychological, sociological and ethical components’’.

3) List out any two objectives of HRM.

� Organizational objectives

� Functional objectives

4) What do you mean by HRP?

Human Resource Planning is the process of determining the manpower

needs of an enterprise so that it is possible to fill-up any vacancy as and when it

arises. Such a plan eliminates the risk of surplus or shortage of staff at any time.

5) Define HRP.

In the words of Aswattappa, “HRP is the process of forecasting demand for

and supply of the right type of people in the right number.

6) What do you mean by Recruitment?

‘Recruitment’ is the process of finding suitable candidates for the various

posts in an organisation.

7) Define Recruitment.

According to Edwin B. Flippo, “Recruitment is the process of searching for

prospective employees and stimulating them to apply for jobs in the

organisations”.

8) What is selection?

Selection is the process of choosing the most suitable persons out of all the

applicants.

9) Define Selection

According to Dale Yoder, “Selection is the process in which candidates for

employment are divided into 2 classes, those who are to be offered employment

and those who are not to be”.

SECTION –B

1) Distinguish between HRM and Personnel Management.

HRM Personnel Management

1. HRM is a contemporary

management.

This is a conventional name.

2. HRM refers to the task of

managing people belonging

to the different society.

Personnel Management refers to the

task of managing the employees of the

concern.

3. It has relevance for the

business organisation and

government as well.

It is relevant mainly for a business

establishment.

4. The employee is seen as a

resource of the enterprise.

Employees are seen as a commodity.

5. Measures are taken for the

overall progress of the

employee.

Measures are taken to satisfy the

economic needs of the employee

mainly.

6. The amount spent on the

employee is views as an

investment.

The amount spent on the employee is

only seen as expenditure incurred.

7. The term has wider scope. The term has limited scope.

2) Explain a note on objectives of HRM.

� Social Objectives

� Organizational Objectives

� Functional Objectives

� Personnel Objectives

3) Write the contents on nature of HRM.

� It is universally relevant.

� It is Goal Oriented.

� It adopts a systematic approach in handling the manpower approach.

� It is pervasive in nature.

� It is an on-going activity.

� It is a dynamic field of activity.

� It focuses on the development of manpower resources.

� It is a science as well as art.

� It is interdisciplinary.

� It is relatively new.

4) Describe the Scope of HRM.

� Setting general and specific management.

� Collective bargaining, Contract Negotiation, Contract administration

and grievance handling.

� Staffing the organisation.

� Aiding for the self-development of the employees.

� Developing and maintaining motivation for workers by providing

incentives.

� Reviewing and auditing manpower management in the organisation.

5) Discuss the objectives of HRP.

� To utilize the present employees.

� To post the right people, for right job, at right place and at the right

time.

� To bridge the gap between the demand and supply of workforce.

� To effectively and efficiently deal with surplus and deficit workforces.

� To evolve department programmes.

� To achieve organisational objectives.

6) Express the Characteristics of HRP.

� It is the continuous process.

� It is a predetermined course of action.

� It includes planning and development of Human Resource.

� It is futuristic.

� It has a systematic approach.

7) Explain the importance of HRP.

� Estimating future demand for human resources.

� Bridging the gap.

� Enhancing workforce.

� Coping with changes.

� Determining the cost of human resources.

� Cost of hiring and training.

� Diversification and expansion of business.

� Management Development Programmes.

� Optimal utilization of human resources.

� Essentials for strategic planning.

8) Write a brief note on limitations of HRP

� Expensive

� Uncertainties

� Resistance by trade unions

� Rigid

� Inaccurate Forecasts

� Not forced on quality of Human Resource

9) State the contents provided under recruitment process.

� Planning recruitment

� Determining the vacancies

� Identifying the sources

� Drafting information for advertisement

� Selecting the suitable mode for advertisement

� Facilitating selection process

� Evaluation and control

10) Write a note on importance of recruitment.

� To encourage candidates to apply for a new job in the organization.

� To forward a talented candidates for further selection processes for

the job.

� To determine present and future requirements of the organization.

� To bridge the gap between job seekers and job providers.

� To facilitate Human Resource Planning more effectively and

efficiently.

SECTION –C

1) Discuss the functions of HRM.

I. MANAGERIAL FUNCTIONS

� Planning – Planning is the process of deciding the goals

and formulating policies and programmes to achieve the

goals.

� Organising – In order to implement the plans a sound

organisation structure is required organising is the

process of allocating tasks among the members of the

groups.

� Directing – It is the process of motivating, activating,

leading and supervising people. It includes all those

activities that influence the actions of subordinates.

� Controlling – It implies checking, verifying and

regulating to ensure that everything Occurs in

conforming to the plans adopted and the instructions

issued.

II. OPEREATIVE FUNCTIONS

� Procurement – The first and foremost function of

human resource management is procuring the

manpower needed for an organization for

accomplishing organizational objectives.

� Development – Human Resource Development

envisages improving the knowledge, skills, aptitude and

values of employees. So that they can perform the future

jobs more efficiently and effectively.

� Compensation – HRD has to facilitate equitable and fair

remuneration to employees.

� Integration – It is concerned with the performance of

all those activities.

� Maintenance – Promoting job satisfaction among

employees.

2) Trace the factors which influence HRP.

I. INTERNAL FACTORS

� Recruitment Policy

� Availability of Funds

� Job requirements

� Trade Union Influence

� Scale of Operations

II. EXTERNAL FACTORS

� Demand & Supply of manpower

� Reservation Policy

� Terms & Conditions of job seekers

� Technology

� Trend in the Industry

3) Enumerate the Internal and External sources of Recruitment.

I. INTERNAL SOURCES

� Transfer

� Upgrading

� Promotion

� Demotion

� Job Rotation

� Retention

� Dependents

� Previous applicants

� Acquisition and

� Mergers

II. EXTERNAL SOURCES

� DIRECT SOURCES

� Advertisements

� Unsolicited

� Applicants

� Walk-ins

� Recruitment at factory gate

� E – recruitment

� INDIRECT SOURCES

� Employee referral

� Government / Public

� Employment Exchanges

� Employment Agencies

� Employment Consultancies

� Word of mouth

� Labour Contractors

4) Elucidate the factors affecting recruitment.

I. INTERNAL FACTORS

� Size

� Image

� Growth

� Nature

� Finance

� Policies

� Union

II. EXTERNAL FACTORS

� Government Policies

� Labour laws

� Labour market

� Competition

� Level of Unemployment

� External Influences

5) Trace the methods of selection process.

I. Scrutinizing the application / Initial screening

II. Application blank

III. Selection Tests

a) ABILITY TESTS

� Aptitude test

� Achievement tests

� Judgement tests

b) PERSONALITY TESTS

� Interest tests

� Personality, Inventory tests

� Attitude tests

� Projective tests

c) EMERGING TESTS

� Intelligence Quotient (IQ) tests

� Emotional Quotient (EQ) tests

� Proficiency Quotient (PQ) tests

� Sequential Quotient (SQ) tests

IV. Interview Method

� Preliminary interviews

� Structured interviews

� Unstructured interviews

� Stress interviews

� In-depth interview

� Panel interview

� Telephonic interview

� Online interview

V. Physical Examination

VI. Reference Check

VII. Final Selection

UNIT – II

SECTION –A

1. What is training?

Training is the process of imparting skill or job knowledge to a

person. It takes an individual from where he is to where he should be.

2. Define Training.

Training is the act of increasing the knowledge and skills of an employee for

doing a particular job. – Edwin B. Flippo.

3. What is Performance Appraisal?

Performance appraisal is the process of making an assessment of the

performance and progress of the employees of an organization.

4. What is Promotion?

Promotion may be defined as an upward movement of an employee’s

position in the enterprise.

5. Define the term “Transfer”.

Transfer of an employee takes place when he is shifted:

• From one section to another.

• From one department to another.

• From one branch to another.

• From one town to another.

• From one state to another.

• From one country to another.

6. State any six needs of transfer.

• Transfer due to vacancy.

• Promotion Transfer.

• Compulsory Transfer.

• Punishment Transfer.

• Request Transfer.

• Mutual Transfer.

7. What is Demotion?

It is just the opposite of promotion. An employee who has been demoted

will move from a higher position to a lower position.

8. What is Suspension?

An employee who is placed under suspension will be relieved of his post

temporarily.

9. What do you mean by Dismissal or Termination of Service?

This is yet another punishment measure. An employee may be dismissed

from service.

SECTION – B

1. What are the needs of training?

• To enable the new recruits to understand work.

• To enable existing employees to update skill and knowledge.

• To enable an employee who has been promoted to understand his

responsibilities.

• To enable an employee to become versatile.

• To enable the employees to adapt to change in work methods.

2. Discuss the importance of Training

• Improvement in skill and knowledge.

• Higher production and productivity.

• Job satisfaction.

• Better use of resources.

• Reduction in accidents.

• Reduced supervision.

• Reduction in complaints.

• Adaptability.

• Scope for Management by Exception.

• Stability.

3. Write the essentials of a Good Training Programme.

• It should have a specific goal.

• The training method should be appropriate.

• It should be relevant.

• There may be Provision of suitable incentives.

• It should consider individual differences.

• It should make the trainees accountable.

• The emphasis should be on practical aspects.

• There must be provision of certain facilities.

4. Describe the Processes of Training.

The process of training involves the following stages:

• Identifying the training needs of the staff.

• Establishment of training goal.

• Selecting the right method of training and.

• Making an evaluation of training effectiveness.

• Identifying the training needs of the staff:

The training needs of different categories of employees in an organization

are not the same.

• Establishment of training goal:

The management should have short-term and long-term training goals.

• Selecting the right method of training:

The third stage in the training process is to select the most suitable

method of training.

• Making an evaluation of training effectiveness:

Training is meaningful only if its effectiveness is measured.

5. Explain the various factors in performance appraisal.

• Knowledge of work.

• Extent of co-operation with colleagues and superiors.

• Initiative.

• Quality of work.

• Target attainment.

• Aptitude.

• Degree of skill.

• Discipline.

• Punctuality.

• Honesty.

• Ambition.

• Crisis management, etc.

3. Describe the features of Performance Appraisal.

The following are the silent features of performance appraisal:

• It considers both the job performance as well as the personal qualities of

an employee.

• Every subordinate is assessed by his immediate superior.

• Both the managers and the subordinates are subjected to appraisal.

• The manner of evaluation is standardized to facilitate comparisons.

• Appraisal is done periodically and in a systematic manner.

4. State the advantages of Performance Appraisal.

The benefit of performance appraisal may be explained as follows:

• It helps to ensure that the right man has been inducted into the

organization.

• Performance appraisal helps to know whether the training given to an

employee has been really effective.

• The various incentives provided to an employee may be determined in

accordance with his performance evaluation report.

• Performance appraisal also provides a basis for promotion, transfer or

even removal of an employee from service.

• It motivates efficient employees to perform even better as they know that

if they perform well they will be suitably rewarded.

• Performance appraisal is basically necessary to enable the employee

himself to know where he stands in relation to the other employees of the

organization.

• An employee whose performance is below the expected level may be

given the necessary training to do better.

• The performance appraisal records serve as evidence of an employee’s

progress.

SECTION – C

1. Enumerate the “On – the job training” and “off – the job training”

training methods.

The various methods of training may be grouped under two categories:

• On – the job training.

• Off – the job training.

On – the – job training refers to training given to an employee in the place

where he is employed. Work and learn is the philosophy of such a training

concept. The following are some of the important on – the – job training

methods:

• Induction training.

• Apprenticeship training.

• Refresher training.

• Job rotation.

• Placement as assistants.

• Vestibule training.

Most of the on – the – job training methods is suitable for training clerical

employees and factory workers.

Off – the – job training refers to training given to staff at a place away from the

actual work place. The following are some of the important off – the – job

training methods:

• Lectures and Conferences.

• Role playing.

• Case study.

• Management games.

• Brain storming.

• Sensitivity training.

The off – the – job training methods are suitable for training junior executives.

Let us now study these various training methods.

Vestibule Training

In the context of training, the term ‘vestibule’ refers to a training school

established within the factory premises.

The training activities do not in any way interfere with the regular process of

production. The trainee workers will also be able to concentrate on learning

better as they are away from the noise and work pressure they often experience

in the actual workplace.

5. Methods of Performance Appraisal

The following are the important methods of appraising the performance of

employees:

• Ranking method.

• Graphic scale rating method.

• Forced choice method.

• Essay appraisal method.

• Paired comparison method.

• Field review method.

• Critical incidents method.

6. Write a short note on MBO, and explain its advantages and

disadvantages.

Method (MBO – MANAGEMENT BY OBJECTIVES)

It is a technique by which the superior and the subordinate jointly identify the

objectives desired to be achieved by the subordinate in tune with the overall

results expected.

• Establishment of Objectives.

• Periodical Review.

• Final Review.

Advantages of MBO

• It promotes better communication relationship between the superior and

his subordinates.

• It gives the subordinate an opportunity to fix his own targets in

consultation with his superior.

• As the subordinates have the freedom to determine their own targets, they

feel motivated and also show keen interest in their attainment.

• The periodic review of the subordinate’s performance enables him to

know whether he is proceeding in the right direction.

Disadvantages of MBO

• The superior and his subordinate may have to meet several times for the

sake of setting the objectives mutually.

• Periodic review of the subordinate’s performance involves lot of time and

also paper work.

• MBO has not much to do with the lower levels of management.

2.

UNIT – III

SECTION – A

1. What do you mean by Incentives?

‘Incentive’ may be defined as any reward or benefit given to the

employee over and above his wage or salary with a view to motivating him to

excel in his work.

2. Define Incentives.

“It refers to all the plans that provide extra pay for extra performance in addition

to regular wages for a job” – Hummel and Nickerson.

3. What is Motivation?

The important task before every manager is to secure optimum

performance from each of his subordinates.

4. Definition of Motivation

Motivation means a process of stimulating people to action to accomplish

desired goals. – W. G. Scott.

SECTION – B

1. Differentiate financial and Non-Financial incentives.

Financial incentives involve monetary commitments on the part of

the management. These include:

• Performance bonus.

• A higher rate of commission to salesman for exceeding the target.

• Overtime payment (at a higher rate).

• Profit-sharing.

• Company’s shares given at a special price etc.

Non-financial incentives do not involve monetary commitments for the

employer. These include:

• Merit certificates.

• More interesting work.

• Participation in decision-making.

• Greater responsibility and freedom.

• Better designations etc.

2. Write the merits of Incentives.

The following are the advantages derived by providing incentives to employees:

• Higher output.

• Greater profits.

• No problem of idle time.

• Supervision does not pose any problem.

• Efficient workers are able to earn more.

• Possible to identify inefficient and dull workers.

• Rate of labour turnover is bound to be low.

• Reduction in complaints and grievances.

3. Explain the Problems arising out of incentives

The following problems are bound to arise while implementing an incentive

plan:

• Quality of work may suffer.

• Inter-personnel relationship may suffer.

• Wear and tear of machines may be more.

• Health of the workers may get affected.

• Increase in accidents.

• Increase in paper work.

4. State the characteristics of Motivation.

The following salient features of motivation explain its nature;

5. Motivation is a psychological concept.

6. Motivation is always total and not piece-meal.

7. Motivation may be financial or non-financial.

8. Method of Motivation may be positive as well as negative.

9. Motivation is a continuous process.

5. Write the importance of Motivation.

• Inducement of employees.

• Higher efficiency.

• Optimum use of resources.

• Avoidance of loss due to mishandling and breakage.

• No complaints and grievances.

• Better human relations.

• Avoidance of strikes and lock-outs.

• Reduction in labour turnover.

SECTION – C

1. Elucidate the various categories of Incentive Plans.

Incentive plans fall under two categories:

• Individual incentive plans and

• Group incentive plans.

In the case of individual incentive plans, an individual worker is rewarded for

achieving a certain level of performance. Such plans may be further divided

into:

• Time-based incentive plans and

• Output-based incentive plans.

Incentive Plans

Individual Incentive Plans Group Incentive

Plans

Time-based Plans Output-based Plans 1.Priestman’s

Plan

Financial and Non-Financial Incentives

Financial incentives involve monetary commitments on the part of the

management. These include:

• Performance bonus.

• A higher rate of commission to salesman for exceeding the target.

• Overtime payment (at a higher rate).

• Profit-sharing.

• Company’s shares given at a special price etc.

Non-financial incentives do not involve monetary commitments for the

employer. These include:

• Merit certificates.

• More interesting work.

• Participation in decision-making.

• Greater responsibility and freedom.

• Better designations etc.

2. Scanlon’s Plan

1. Hasley’s Plan 1.Taylor’s Differential

2. Rowan’s Plan Piece Rate Plan

3. Emerson’s Plan 2.Merrick’s Multiple

4. Bedeaux’s Plan Piece Rate Plan

3. Gnatt’s Task Plan

2. Explain the requirements of a sound incentive plan

A good incentive plan shall fulfill the following requirements:

• Trust and confidence.

• Consensus required.

• Assured minimum wage.

• No scope for bias or favouritism.

• Simple to operate.

• Beneficial to both the workers and the management.

• Sound system of evaluation.

• Redressing grievances.

• Review.

3. Enumerate the various Processes on Motivation.

The process of motivation involved the following stages:

• Recognition of an unfulfilled need.

• Finding the way out to satisfy the same.

• Fulfilment of the need and.

• Discovery of new need.

These various stages have been explained below:

• Recognition of an unfulfilled need.

The first stage in the process of motivation is that an individual has to

recognize or identify his unfulfilled needs.

• Finding the way out to satisfy the same.

Once the most urgent need out of the various needs of a person has been

identified, the next step is to find out the way by which it can be fulfilled.

• Fulfilment of the need.

Need fulfilment depends mainly on the credentials and performance of

the employee.

• Discovery of new need.

As mentioned earlier, man is a wanting animal. When one need is

fulfilled, another will appear in its place.

4. Explain the various theories on Motivation.

Many experts have developed different theories on the concept of motivation.

Popular ones are given below:

• Maslow’s Need Hierarchy Theory.

• McGregor’s X and Y Theories.

• Ouch’s Z Theory.

• Herzberg’s Two-Factor Theory.

• McClelland’s Need Theory

• Vroom’s Expectancy Theory.

I. Maslow’s Need Hierarchy Theory

Abraham H. Maslow, a psychologist, developed a theory called the ‘Need

Hierarchy Theory’. It is one of the oldest theories on motivation. Maslow was

of the view that human behaviour is directed towards the satisfaction of certain

needs. He classified human needs into five categories and arranged the same in

a particular order as given below:

• Physiological Needs.

• Safety Needs.

• Social Needs.

• Self-actualization Needs and.

• Esteem Needs.

II. McGregor’s ‘X’ and ‘Y’ Theories

Distinction between Theory ‘X’ and Theory ‘Y’

Theory ‘X’ Theory ‘Y’

• People, in general, have an • People love to do their work

inherent dislike for work.

• Most people are not ambitious

and do not voluntarily accept

any responsibility.

• People, in general, lack

creativity.

• Satisfaction of physiological and

safety needs alone is important.

• Close supervision is necessary.

provided they are given the

proper environment.

• With proper motivation, people

can certainly be made to accept

responsibility.

• If the management has a

positive outlook, it can certainly

encourage the workers to

display their creative ideas and

skills.

• Workers do many things to

satisfy their ego and also to

display their potentials.

• Workers are good at self-

direction.

III. William Ouchi’s ‘Z’ Theory

William Ouchi, a Japanese management expert developed a theory on

motivation. He gave the name ‘Z’ theory to it. The proposals of Ouchi in his ‘Z’

theory are given below:

• Lifetime employment should be granted to all employees in order to

establish a strong bond between them and the enterprise.

• In the manner of employee promotion, Ouchi favours horizontal mobility

of employees instead of vertical mobility.

• To motivate employees, they must be made to work with their

supervision on certain specific projects.

• Employees must be involved in the process of decision-making

particularly, on matters affecting their interests directly.

• Within the enterprise employees must be frequently shifted from one job

to another.

• There should be greater emphasis on co-operation and sharing

information and resources.

• The mutual relationships between the individuals in the organization must

be based on trust, openness and co-operation.

• For the sake of satisfying multiple employee needs, the work

environment must be made stable.

IV. Herzberg’s Two-Factor Theory

Herzberg classified the factors influencing human needs into two categories.

They are:

• Hygiene Factors and

• Motivational Factors.

• Hygiene Factors

� Company policies and Administration.

� Type of supervision.

� Inter-personal relationships.

� Working conditions.

� Salary.

� Job security and

� Status.

• Motivational Factors.

� Work it.

� Achievement.

� Recognition.

� Advancement.

� Growth and

� Responsibility.

V. McClelland’s need Theory

McClelland developed a theory on motivation by identifying three needs that

include people to work. They are:

• Achievement need.

• Affiliation need and

• Power need.

• Achievement need.

� They set goals that are neither impossible nor too easy to attain.

� These people are indifferent to rewards. They do not work for money

or recognition. They feel satisfied when they solve a certain problems

or achieve a certain goal.

� People with a desire for achievement always seek feedback

information on their performance to assess themselves.

� Further, these people will always be thinking of the task they have

undertaken and the ways of accomplishing it successfully.

• Affiliation need.

People with affiliation need want to be in the company of others. It is for

this reason that informal groups are formed within a formal organization.

The need for affiliation may be without any ulterior motive like financial

help and such other obligations.

• Power need.

Power may be defined as the capacity of a person to influence others.

Such a capacity may accrue to a person by virtue of his personality traits-

his knowledge, skill, intelligence and so on.

VI. Vroom’s Expectancy Theory

Vroom developed a theory on motivation called the ‘expectancy theory’. He

tried to explain motivation through the following concepts:

• Valence,

• Expectancy and

• Instrumentality.

According to Vroom’s theory, motivation is the sum of the product of valence,

expectancy and instrumentality. That is,

Motivation = Valence X Expectancy X Instrumentality.

• Valence

Valence refers to the strength of a person’s desire for a particular

outcome.

• Expectancy

The extent to which a person believes that his effort will lead to the

desired performance is what is called expectancy.

• Instrumentality

The extent to which the first outcome (attainment of sales target in the

above example) will lead to the desired second outcome (commission) is

what is called instrumentality.

UNIT – IV

COLLECTIVE BARGAINING, WORKERS PARTICIPATION IN MANAGEMENT

SECTION – A

1) Define collective bargaining.

According to Dale Yoder, “Collective bargaining is essentially a process in which

employees act as a group in seeking to shape conditions and relationships in their

employment”.

2) What is collective bargaining?

Collective bargaining consists of negotiations between an employer and a group of

workers to determine the conditions of employment. It is a voluntary process under which

the representatives of both employers and labour enter into an agreement. The result of

collective bargaining procedure is a collective agreement.

3) List out the types of bargaining?

The types of bargaining are;

� Distributive bargaining

� Integrative bargaining

� Productivity bargaining

� Intraorganisational bargaining and

� Composite bargaining

4) Define WPM.

According to Keith Davis, “Workers’ participation refers to the mental and emotional

involvement of a person in a group situation which encourages him to contribute to group

goals and share in responsibility of achieving them”.

5) What is workers participation in management?

WPM is an arrangement in which workers are involved in the decision making process.

Instead of the management alone taking decisions, workers are involved in the formulation

and implementation of decisions. Workers participation improves employee motivation,

commitment, productivity and job satisfaction.

SECTION – B

1) Write the objectives of collective bargaining.

� Protection of interest

� Resolve problems

� Prevent conflicts

� Better relations

� Industrial peace

� Improved productivity

� Prevents arbitrary actions

� Avoids third party intervention

� Promotes industrial democracy

2) Explain the characteristics of collective bargaining.

� Group activity

� On going process

� Bipartite activity

� Complementary process

� Voluntary

� Based on negotiations

� Flexible in nature

� Dynamic

� Mutual interest

� Builds and improves relationships

� Democratic process

3) Write a brief note on importance of collective bargaining.

� Protection of interests

� Prevention of disputes

� Improved economic strength

� Restricts arbitrary management actions

� Improved morale and motivation

� Better labour management relations

� Prompt redressal of grievance

� Industrial democracy

� Reduced labour turnover

� Strong trade unions

� Prevents exploitation

� Promotes economic and social development

� Fairness and consistency

4) Bring out the functions of collective bargaining.

Collective bargaining plays a vital role on industrial troubleshooting and ensures

smooth relation between employer and employees. It does the following functions;

� It increases the economic strength of employees and management.

� Establishes uniform employment conditions.

� Secures prompt redressel of grievances.

� Achieves efficient functioning of the organization.

� Provides solution to the problem of industrial sickness, ensures old age pension

and other fringe benefits.

� Extends democratic principle from political field to industrial field.

5) State the characteristics of WPM.

o It implies increase in the share of worker’s influence in decision-making.

o It presupposes willing acceptance of responsibility by workers.

o It is a group activity.

o It is based on mutual trust, information sharing and problem solving.

o Workers invest their labour and tie their fate to the place of work and contribute

to the outcome of organization. So they have legitimate right to share in

decision-making.

6) Highlight the levels of participation.

Informative Participation

Management informs the members of committees of the decision taken

already. It does not seek the opinion of the participative committee members as

to the proposed step.

Consultative Participation

It is a shade better than informative participation. Committee members

are consulted before any decision is taken by the management.

Associative Participation

It is an improvement over consultative participation.

Administrative Participation

In the case of administrative participation, management consults

committees as to the mode of implementation.

Decisive Participation

This is the highest level of participation as decisions are made jointly by

committees and management.

SECTION – C

1) Examine the role-of-collective bargaining in India.

Collective bargaining has not made much progress in India in view of the following

reasons:

• Multiplicity of Union

Multiple unions reduce the bargaining power of each union. In case of employer

finds it difficult to negotiate with all unions.

• Sabotage by union

Unions sabotages the functioning of one another. It weakens the collective

action.

• Political Interference

Interference of political leaders in all aspects on union matters has increased

over the years. Thus, political leaders use the unions for making political capital

therefrom.

• Clout of adjudication

Increasing clout of adjudication is diminishing the importance of collective

bargaining.

• Lacks of will on the part of union leaders

The union leaders lack the will to address the problem in correct perspective.

• Mistrust of management

Few unions seeks the help of court. They do not have faith in holding talks

with the employer.

• Negative attitude towards union

In India, management has negative attitude towards the union. They feel that

unions are unnecessary interference.

• Contemporary Employee’s Reluctance to join union

Employees in most of the organizations do not want to join any union. They

bear victimisation from the management side or join the management-sponsored

unions.

• Non-recognising of union by management

Some managements do not recognize unions at all. They use all sorts of

punitive measures like intimidation, increment-cut, pay cut, suspension, demotion,

termination, etc., on employees taking initiative in organizing unions.

2) Describe the different forms of participation.

Works Committee

Enterprises with a workforce of 100 or more workers constitute a works

committee with equal number of representatives from employees and the

management.

Joint Management Council (JMC)

JMCs were introduced in 1958. These councils are formed at plant level

with equal number of employee and employer representatives.

Board of Representative

Under this scheme, one or two representatives of workers are nominated

or elected to the Board of Directors.

Participation through ownership

Workers by becoming shareholders take part in management.

Management sell share at reduced price to its committed and loyal workforce.

Participation through complete control

It is called self-management. Yugoslavia is the country practicing this

model. This gives a complete control to the workers to directly manage all

aspects of industries through their representatives.

Collective Bargaining

This mechanism gives the management and the employees to lay down

rules relating to working conditions and contract of employment.

Job Enlargement and Job Enrichment

Job enlargement means addition of task elements horizontally. Job

enrichment means adding motivators to the existing job.

Suggestion Scheme

Suggestions are invited from workers on the various aspects of work.

Management reviews the suggestions made and put the constructive

suggestions into action.

Quality Circle(QC)

A quality circle consists of 7 to 10 people drawn from same work area, who

meet regularly to define, analyse and solve quality and related problems in their

area.

Empowered Team and Autonomous Teams

� Empowered teams set its own goal.

� Decides the method of work.

� Decides the style of leadership and function.

� Hires own replacement.

� Assumes responsibility for the discipline of its members.

� Takes responsibility for the quality of the products and services.

Total Quality Management(TQM)

TQM denotes deep commitment of an organisation to quality. The quality of

product/services is the sole focus of an organisation. TQM is measured as one of

the participative methods as every employee is involved and assumes

responsibility for quality improvement.

Financial Participation

This type of participation has potential to involve the worker in the

decision-making process or consultation process intensively. Many schemes of

financial participation include profit sharing plan, ESOP, management buyout,

profit-linked pay, worker’s co-operatives, pension fund participation and wage

earner fund.

UNIT – V

HUMAN RESOURCE AUDITING

SECTION –A

1) What do you mean by HRA?

Human Resource Audit is concerned with the examination and evaluation of the

policies, procedures and practices with references to the human resources of the

organisation. It is a periodic review to measure the efficiency and effectively of human

resource management.

2) Define Human Resource Audit.

According to Rosemary Harrison, “HR audit is defined as a way of assessing the nature

and impact of human resource department activity at particular points in time”.

3) List any two approaches of HR audit.

i. Comparative approach

ii. Statistical approach

4) What is Benchmarking?

Benchmarking is a practice that enables the employees to learn the best practices

pursued by firms in the industry.

SECTION – B

1) Explain the features of an organisation.

i. HR audit is an objective assessment of the HR function of an organisation.

ii. It is carried out regularly, usually every one year.

iii. It can be conducted by company officials or by outside experts.

iv. HR audit measures actual performance with standards to identify deviations.

v. Report of HR audit is sent to the top management to ensure that corrective action is

taken in case of deficiencies.

2) State the objectives of HR audit.

i. To review the entire system of processing, developing, allocating and utilising the

human resources in an organisation.

ii. To seek explanation about human resources of the organisation.

iii. To evaluate and implement the HR policies and programmes.

iv. To evaluate the performance of the staff.

3) Describe the benefits of HR audit.

i. It serves as a check on the activities of HRM.

ii. It pinpoints deviations from the procedures and practices for remedial action.

iii. HR audit reveals with an optimum use of human resource.

iv. It indicates whether investment in HR is adequate, given the size and scale of its

operation.

v. It is possible to know whether the organisation has a satisfied workforce.

4) Explain the methods of HR audit.

i. Interview Method

ii. Questionnaire Method

iii. Observation Method

iv. Desk research Method

v. Workshop Method

vi. Task force Method

5) Trace the steps evolved in benchmarking.

i. Spotting out the best practices pursued by exemplary firms.

ii. Establishing the core team to handle benchmarking process

iii. Identifying benchmarking firms from the sources like some industry or competitors

and international firms.

iv. Collecting data from benchmarked firms.

v. Analysing and interpreting data.

vi. Preparing report on the basis of analysis.

vii. Designing action plans to improve HR practices.

SECTION – C

1) Elucidate the scope of HR audit.

i. Manpower planning and forecasting.

ii. Recruitment time and costs.

iii. Selection policies and practices.

iv. Compensation policies and practices.

v. Training time and cost.

vi. Details relating to internal and external training programmes such as duration,

cost, number of trainees and training outcomes.

vii. All files and records maintained by the HR department.

viii. HR related files maintained by other departments.

ix. Career planning and management.

x. Job description and job specification statements.

xi. Productivity and performance standards.

xii. Details of performance appraisal.

xiii. Records of promotion and transfer policies and practices.

xiv. Details of industrial relations policies and practices.

2) Elaborate the approaches of HR audit.

The following approaches are adopted for the purpose of evaluation:

i. Comparative approach

The auditors identify Competitor Company as a model. The result of their

organization will be compared from that company.

ii. Outside authority approach

The auditors use standards set by an outside consultant as benchmark for

comparison of own results.

iii. Statistical approach

In this, statistical measures are performance of developed considering the

company’s existing information.

iv. Compliance approach

Auditors review part actions to calculate whether those activities comply with

legal requirements and industry policies and procedures.

3) Enumerate the functions of HR audit.

i. HR planning

ii. Policies and procedures

iii. Recruitment, selection and placement

iv. Training

v. Promotion and transfer

vi. Performance management

vii. Compensation management

viii. Communication system

ix. Motivation and Morale

x. Job satisfaction

xi. Stress Management

xii. Attrition