HR-II-E

1. This paper consists of 50 Questions of multiple-choice type to be completed in 75

minutes.

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darken the circle as indicated below on the correct response against each item.

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1. Which of the following is/are not a part of

classical approach to management?

(A) Scientific Management

(B) Administrative Management

(C) Decision Theory

(D) Bureaucratic Organization

2. The Chairman of the Second National

Commission on Labour was

(A) Gajendra Gadkar

(B) Ravindra Verma

(C) George Fernandes

(D) Vallabh Bhai Patel

3. In which of the following systems, minimum

wage is guaranteed but beyond a certain efficiency

level, bonus is given in addition to minimum day

wages?

(A) Straight piece rate system

(B) Differential piece rate system

(C) Gantt task and Bonus system

(D) Emerson’s Efficiency system

4. Which one of the following identifies the basic

function or task of an organisation?

(A) Policy

(B) Objective

(C) Mission

(D) Programme

5. In ______, a person is perceived on the basis of

a single trait.

(A) Halo Effect

(B) Hawthorne Effect

(C) Stereotyping

(D) None of the above

6. Which of the following aims at control through

setting goals and productivity measures based on

best industry practices?

(A) Pareto diagram

(B) Quality circles

(C) Kaizens

(D) Benchmarking

7. Arrange the following steps of planning in a

proper sequence

(i) Developing premises

(ii) Evaluating alternative courses

(iii) Being aware of opportunities

(iv) Selecting a course

(v) Establishing objectives

(A) (i) (iii) (iv) (ii) (v)

(B) (i) (iii) (ii) (v) (iv)

(C) (iii) (v) (i) (ii) (iv)

(D) (iii) (v) (i) (iv) (ii)

8. Match the following:

Name of Thinker

(a) F.W. Taylor

(b) Max Weber

(c) Chester Barnard

(d) Hugo Munsterberg

Major Contribution

(i) Application of psychology to industry and

management

(ii) Systems approach to management

(iii) Emphasis on rules and regulations

(iv) Increased productivity through efficiency in

production

Codes:

(a) (b) (c) (d)

(A) (iv) (iii) (ii) (i)

(B) (iii) (ii) (iv) (i)

(C) (ii) (iii) (iv) (i)

(D) (iv) (iii) (i) (ii)

9. Which of the following is not true in case of

manpower planning?

(A) It is a process by which an organisation should

move from its current manpower position to its

desired manpower position.

(B) It is an integrated approach to performing the

personnel function required to meet organisational

and individual objectives.

(C) It involves forecasting human resource

requirements.

(D) It is a process to discover the sources of

manpower.

10. Match the following:

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List – I

(a) Collective Bargaining

(b) Wage Boards

(c) Wage

(d) Salary

List – II

(i) Institutions set up by the Government for

fixation and revision of wages.

(ii) It is a procedure in which compromise is

reached through balancing of opposed strengths.

(iii) Remuneration paid to the clerical and

managerial personnel on monthly or annual basis.

(iv) Remuneration paid by the employer for the

services of hourly, daily, weekly and fortnightly

employees.

Codes:

(a) (b) (c) (d)

(A) (i) (ii) (iii) (iv)

(B) (iv) (ii) (i) (iii)

(C) (ii) (iv) (i) (iii)

(D) (ii) (i) (iv) (iii)

11. Grievance is

(A) A feeling of dissatisfaction.

(B) A dispute raised by a trade union.

(C) Refusal of the management of a demand.

(D) An act of indiscipline.

12. Which of the following is called a negative

process?

(A) Recruitment

(B) Selection

(C) Induction

(D) Performance Appraisal

13. Which of the following is not a function of

human resource management?

(A) Planning

(B) Organising

(C) Directing

(D) Accounting

14. When situation is duplicated in such a way that

it carries a closer resemblance to the actual job

setting, it is called

(A) Sensitivity Training

(B) Simulation

(C) Managerial Grid

(D) In Basket Method

15. Behaviourally Anchored Rating Scale is

associated with

(A) Training and Development

(B) Performance Appraisal

(C) Career Planning

(D) Workers’ Participation in Management

16. Moonlighting means

(A) Working simultaneously in two organisations.

(B) Working under moonlight.

(C) Working in the night.

(D) Encouraging employee to improve

productivity.

17. Which of the following is not a content theory

of motivation?

(A) Maslow’s Need Hierarchy Theory

(B) Alderfer’s ERG Theory

(C) Vroom’s Expectancy Theory

(D) Herzberg’s Two Factor Theory

18. Theory X represents

(A) Democratic style of leadership

(B) Autocratic style of leadership

(C) Laissez-faire style of leadership

(D) Humanistic style of leadership

19. Which of the following is not a correct

statement?

(A) Informal groups always hamper the

performance of formal groups.

(B) Informal groups do not have prescribed goals

and relationships.

(C) Informal and formal groups co-exist in

organisations.

(D) Informal groups provide safety valve for

employee emotions.

20. The change procedure of unfreezing, moving

and refreezing was given by

(A) Kurt Lewin

(B) P.F. Drucker

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(C) French and Bell

(D) Katz and Kahn

21. ________ means willingness to exert high

levels of effort on behalf of the organisation.

(A) Organisational commitment

(B) Organisation Effectiveness

(C) Organisational Control

(D) None of the above

22. Which of the following is not a tripartite body?

(A) Indian Labour Conference

(B) Standing Labour Committee

(C) Wage Boards

(D) Joint Management Councils

23. As per Industrial Disputes Act, 1947 works

committee is constituted if there are

(A) 100 workers

(B) 50 workers

(C) 80 workers

(D) None of the above

24. Which of the following cannot be said to be a

body in the field of industrial relations?

(A) Joint Management Council

(B) Works Committee

(C) Shop Level Council

(D) Canteen Committee

25. Which of the following can be said to be the

first Trade Union in India?

(A) Amalgamated Society of Railway Servants of

India and Burma

(B) Kamgar Hitvardhak Sabha

(C) Madras Labour Union

(D) Bombay Mill hand’s Association

26. Which of the following cannot be said to be

the short-term objective of trade unions?

(A) Higher wages

(B) Shorter Hours of work

(C) Establishment of Socialist society

(D) Better conditions of Employment

27. Match the following:

Trade Union/Federation

(a) AITUC

(b) CITU

(c) INTUC

(d) HMS

Year of Formation

(i) 1947

(ii) 1948

(iii) 1920

(iv) 1970

Codes:

(a) (b) (c) (d)

(A) (iv) (iii) (i) (ii)

(B) (iii) (i) (iv) (ii)

(C) (iii) (iv) (i) (ii)

(D) (ii) (iii) (iv) (i)

28. Which of the following cannot be said to be a

labour legislation?

(A) Industrial Employment (Standing Orders) Act,

1946

(B) Payment of Bonus Act, 1965

(C) Protection of Civil Rights Act, 1955

(D) Trade Unions Act, 1926

29. Fish bone analysis as a tool of quality circle

was advanced by

(A) Edward Deming

(B) Joseph Juran

(C) Kouru Ishi Kawa

(D) Phillip Crosby

30. Which of the following is not a benefit under

the Employees State Insurance Act, 1948?

(A) Sickness and Maternity Benefit

(B) Disablement and Dependents’ Benefit

(C) Medical Benefit and Funeral Assistance

(D) Child Allowance and Unemployment Benefit

31. The terms ‘arising out of employment’ and

‘during and in the course of employment’ have

been used in

(A) Maternity Benefit Act, 1961

(B) Payment of Gratuity Act, 1972

(C) Workmen’s Compensation Act, 1923

(Employees’ Compensation Act, 1923)

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(D) Employees Provident Fund (and

Miscellaneous Provisions) Act, 1952

32. Assertion (A): At least seven persons can

apply to the Registrar for registration of their

trade union.

Reason (R): The Trade Unions Act, 1926 has

provision for recognition of trade union.

(A) (A) is correct, but (R) is wrong.

(B) Both (A) and (R) are correct.

(C) Both (A) and (R) are wrong.

(D) (A) is wrong, but (R) is correct.

33. Which of the following cannot be said to be a

public utility service under the Industrial Disputes

Act, 1947?

(A) Railways/Airlines

(B) Post, telegraph and telephone service

(C) Automobile Industry/Jute and Cotton

industries

(D) Undertakings related to power, electricity and

water supply

34. Which of the following is not an authorised

deduction under the Payment of Wages Act, 1936?

(A) Fines

(B) Income-tax

(C) Contributions for LIC premiums

(D) Deductions made for payment of debt to

money lender

35. Under the Minimum Wages Act, 1948 which

of the following has/have been provided for

fixation of minimum wages?

(A) Wage Boards

(B) Awards of Labour Court

(C) Notification method and Committee method

(D) None of the above

36. Which of the following stands for bonus in the

context of Indian situation?

(A) Profit sharing

(B) Deferred wage

(C) Incentive

(D) None of the above

37. According to the Factories’ Act, 1948 crèche

must be provided in a factory if there are

(A) 10 or more women workers

(B) 20 or more women workers

(C) 25 or more women workers

(D) 30 or more women workers

38. Which of the following is not a labor welfare

agency?

(A) Bharat Sewak Samaj

(B) Harijan Sewak Sangh

(C) Central Social Welfare Board

(D) Standing Labour Committee

39. Which of the following are not the theories of

Labor Welfare?

(A) Policing Theory and Placating Theory

(B) Religious Theory and Trusteeship Theory

(C) Functional Theory and Public Relations

Theory

(D) Subsistence Theory and Residual Claimant

Theory

40. Which of the following is not an intra-mural

labour welfare measure?

(A) Canteen

(B) Creche

(C) Rest room, shelter and lunch room

(D) Housing and hospital facility

41. Which of the following does not affect the

supply of labor?

(A) Population

(B) Strike

(C) Labour force participation

(D) Mobility of labour

42. Which of the following can be said to be a

correct concept of wages?

(A) Wage is a reward.

(B) Wage is compensation.

(C) Wage is the price of labour.

(D) Wage is an incentive to work more.

43. “A desirable state of existence comprehending

physical, mental, moral and emotional health or

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well being” is the theme of which concept of

Labour Welfare?

(A) Social Concept

(B) Total Concept

(C) Relative Concept

(D) Positive Concept

44. Which of the following is not a principle of

Labour Welfare?

(A) The Principle of Uniformity

(B) The Principle of Co-ordination and Integration

(C) The principle of Association

(D) The Principle of Timeliness

45. Equal Remuneration Act, 1976 was enacted to

check :

(A) Occupational wage differentials.

(B) Geographical wage differentials.

(C) Wage differential based on sex.

(D) Inter-industry wage differentials.

46. The scheme of workers’ participation in

management in industry in India was introduced

through

(A) Code of Discipline in industry

(B) 20-point Economic Programme

(C) Industrial Employment (Standing Orders) Act

(D) None of the above

47. “Labour is not a commodity” – is the assertion

made by

(A) the Declaration of Philadelphia adopted by

26th session of ILO

(B) the Magna Carta

(C) the Constitution of India

(D) the International Labour Conference

48. Match the following:

Concept

a. Industrial Democracy

b. Industrial Citizenship

c. Class Conflict

d. Welfare Movement

Propagators i. Karl Marx

ii. Robert Owen

iii. Peter F. Drucker

iv. Sydney & Beatrize Webbs

Codes:

a b c d

(A) iii i ii iv

(B) iv iii i ii

(C) ii i iv iii

(D) ii iv i iii

49. Match the following:

Theory of wages

a. Wage Fund Theory

b. Marginal Productivity Theory

c. Bargaining Theory

d. Investment Theory

Propagators

i. John Bates Clark

ii. John Davidson

iii. John Stuart Mill

iv. Gilelman

Codes:

a b c d

(A) ii iv i iii

(B) iii i ii iv

(C) iv ii iii i

(D) i iii ii iv

50. The “Marginal Discounted Product of Labour”

as a modified version of Marginal Productivity

Theory was advanced by

(A) Taussig

(B) Kalecki

(C) Ricardo

(D) Adam Smith

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1. Ans. C

Exp. Classical organization theory includes the scientific management approach, Weber's bureaucratic

approach, and administrative theory. The scientific management approach (proposed by Taylor) is based on

the concept of planning of work to achieve efficiency, standardization, specialization and simplification. The

approach to increased productivity is through mutual trust between management and workers. Weber's

bureaucratic approach considers the organization as a part of broader society. The organization is based on

the principles of: structure, specialization, predictability and stability, rationality and democracy.

Administrative theory was propounded by Henry Fayol and is based on 14 principles of management.

Neoclassical theory emphasizes individual or group behaviour and human relations in determining

productivity. The main features of the neoclassical approach are individual, work group and participatory

management. Modern theories are based on the concept that the organization is an adaptive system which

has to adjust to changes in its environment. Modern theories include the systems approach, the socio-

technical approach, and the contingency or situational approach. The systems approach considers the

organization as a system composed of a set of inter-related - and thus mutually dependent - sub-systems.

Thus the organization consists of components, linking processes and goals. The socio-technical approach

considers the organization as composed of a social system, technical system and its environment. These

interact among themselves and it is necessary to balance them appropriately for effective functioning of the

organization. The contingency or situational approach recognizes that organizational systems are inter-

related with their environment and that different environments require different organizational relationships

for effective working of the organization.

2. Ans. B

Exp. The first National Commission on Labour was set up in 1966 under the Chairmanship of Justice P. B.

Gajendragadkar. The Commission submitted its report in 1969 after detailed examination of all aspects of

labour problems, both in the organised and unorganised sectors. The second National Commission on

Labour was set up on 2002 under the chairmanship of Ravindra Varma.

3. Ans. D

Exp. Some of wages system are: 1) Time Rate System: Under this system, the worker is paid by the hour,

day, week, or month. 2) High Wage plan: Under this plan a worker is paid a wage rate which is

substantially higher than the rate prevailing in the area or in the industry. In return, he is expected to maintain

a very high level of performance, both quantitative and qualitative. 3) Measured day work: According to

this method the hourly rate of the time worker consists of two parts, namely, fixed and variable. The fixed

element is based on the nature of the job i.e. the rate for this part is fixed on the basis of job requirements.

The variable portion varies for each worker depending upon his merit rating and the cost-of-living index. 4)

Differential time rate: According to this method, different hourly rates are fixed for different levels of

efficiency. 5) Straight piecework system: The wages of the worker depend upon his output and rate of each

unit of output; it is in fact independent of the time taken by him. 6) Differential piece work system: This

system provide for higher rewards to more efficient workers. For different levels of output below and above

the standard, different piece rates are applicable. 7) Gantt task and bonus system: the system consists of

paying a worker on time basis if he does not attain the standard and on piece basis (high rate) if he does. 8)

Emerson’s efficiency system: Under this system minimum time wages are guaranteed, but beyond a certain

efficiency level, bonus in addition to minimum day wages is given.

4. Ans. C

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Exp. A mission statement is a statement of the purpose of a company, organization or person, its reason for

existing. The mission statement should guide the actions of the organization, spell out its overall goal,

provide a path, and guide decision-making. It provides "the framework or context within which the

company's strategies are formulated." It's like a goal for what the company wants to do for the world

5. Ans. A

Exp. Halo effect refers to a bias whereby the perception of a positive trait in a person or product positively

influences. Drawing general impression of individual on the basis of a single characteristic. i.e. if someone is

good at one dimension, he/she is perceived to be good at other dimensions as well. Example: He is very

amiable, so he must definitely be a good husband. Stereotyping is tendency to assign attributes to someone

solely on the basis of a category of people to which that person belongs. e.g. all New Zealanders are

destructive and money grubbers. Stereotyping can lead to inaccuracies and negative consequences to our

stereotypes. Projection: Under certain conditions, people tend to see in another person traits that they

themselves possess i.e. they project their own feelings, tendencies, or motives into their judgment of others.

e.g. an individual who is himself not very energetic may see others as lazy or may explain their lack of

achievement as resulting from their unwillingness to work

6. Ans. D

Exp. Benchmarking is the process of comparing one's business processes and performance metrics to

industry bests or best practices from other companies. Dimensions typically measured are quality, time and

cost. A Pareto diagram is a simple bar chart that ranks related measures in decreasing order of occurrence.

The principle was developed by Vilfredo Pareto. It is used in Total Quality Management. A quality circle is

a group of workers who do the same or similar work, who meet regularly to identify, analyze and solve

work-related problems. Kaizan is a philosophy of continuous improvement of working practices that

underlies total quality management and just-in-time business techniques.

7. Ans. C

Exp. Planning process involves a cycle of eight comprehensive and systematic steps. They are; 1) Being

aware of opportunity 2) Setting objective or goals 3) Considering planning premises 4) Identifying

alternative 5) Comparing alternatives in light of goals sought 6) Choosing and alternative 7) Formulating

supporting plans 8) Numbering plans by making budgets.

8. Ans. A

Exp. A bureaucracy (Weber) is a way of administratively organizing large numbers of people who need to

work together. Organizations in the public and private sector, including universities and governments, rely

on bureaucracies to function. The term bureaucracy literally means “rule by desks or offices,” a definition

that highlights the often impersonal character of bureaucracies. Scientific management, also called

Taylorism, is a theory of management that analyzes and synthesizes workflows. Its main objective is

improving economic efficiency, especially labor productivity. It was one of the earliest attempts to apply

science to the engineering of processes and to management. Barnard was the first to utilise the systems

approach to management. He believed that organisational survival and success depended on the creation of

co-operation by managers, and their navigation of the tension between individuals' personal motives (which

he called efficiency) in order to satisfy the objectives of the organisation (which he called effectiveness) to

achieve a balance between the two. Hugo Munsterberg was father of Industrial Psychology.

9. Ans. D

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Exp. Manpower Planning which is also called as Human Resource Planning consists of putting right

number of people, right kind of people at the right place, right time, doing the right things for which they are

suited for the achievement of goals of the organization. Human Resource Planning has got an important

place in the arena of industrialization.

10. Ans. D

Exp. Collective bargaining is a process of negotiations between employers and a group of employees aimed

at reaching agreements to regulate working conditions. The interests of the employees are commonly

presented by representatives of a trade union to which the employees belong. In the 1950s and 1960s, when

the organized labour sector was at a nascent stage of its development without adequate unionization or with

trade unions, without adequate bargaining power, the Government of India, in appreciation of the problems

which arise in the arena of wage fixation due to absence of such bargaining power, constituted various

Wage Boards. The Wage Boards are tripartite in character in which representative of workers, employers,

independent members participate and finalize the recommendation. Wages are remuneration paid by the

employer for the services of hourly, daily, weekly and fortnightly employees. Salary is remuneration paid to

the clerical and managerial personnel on monthly or annual basis.

11. Ans. B

Exp. In general, grievance is a wrong or hardship suffered, whether real or supposed, which forms legitimate

grounds of complaint. A grievance is a complaint. It can be formal, like an employee files grievance because

of unsafe working conditions, or more of an emotional matter, like a grievance against an old friend who

betrayed you. A grievance is a complaint that may or may not be justified. Disciplinary and grievance

procedures are frameworks which provide clear and transparent structures for dealing with difficulties which

may arise as part of the working relationship from either the employer’s or employee’s perspective.

12. Ans. B

Exp. Recruitment is a positive process i.e. encouraging more and more employees to apply where as

selection is a negative process as it involves rejection of the unsuitable candidates. An induction

programme is the process used within many businesses to welcome new employees to the company and

prepare them for their new role. Performance Appraisal is the process by which a manager examines and

evaluates an employee's work behavior by comparing it with preset standards and uses the results

to provide feedback to the employee to show where improvements are needed and why.

13. Ans. D

Exp. Accounting is not a function of HRM.

14. Ans. B

Exp. There are two types of training. On The Job Techniques: 1 Coaching: In coaching the trainee is place

under a particular supervisor who acts as an instructor and teaches job knowledge and skills to the trainee. 2.

Job Rotation: The transferring of executive s from job to job and from department to department in a

systematic manner is called job rotation. 3. Under Study: An under study is as person who is in training to

assure at a future time, the full responsibility of the position currently held by his superior. 4 Multiple

Management: Multiple management is a system in which permanent advisory committees of managers study

problems of the company and make recommendations to higher management. Off The Job Technique: Case

Study: Cases are prepared on the basis of actual business situations that happened in various organizations.

Incident Method: This method was developed by Paul Pigors. It aims to develop the trainee in the area of

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intellectual ability, practical judgment and social awareness. Role Playing: A problem situation is simulated

by asking the participants to assume the role of particular person in the situation. In Basket Method: The

trainees are first given background information about a simulated company, its products, key personnel,

various memoranda and all data pertaining to the firm. The trainee has to understand all of this and make

notes of it. Sensitivity Training: The main objective of sensitivity training is the “Development of awareness

of and sensitivity of behavioral patterns of oneself and others”. Simulation: Under this technique the

situation is duplicated in such a way that it carries a closer resemblance to the actual job situation.

Managerial grid: It is a six-phase programme lasting from three to five years. It starts with upgrading

managerial skills, continues to group improvement, improves inter group relations, goes into corporate

planning, develops implementation method and ends with an evaluation phase. Conference: A conference is

a meeting of several people to discuss the subject of common interest. Lectures: It is the simplest technique.

The lacquerer organizes the material and gives it to a group of trainees in the form of talks.

15. Ans. B

Exp. The BARS (behaviorally anchored rating scales) method of evaluating employees carries typical job

appraisals one step further: Instead of relying on behaviors that can be appraised in any position in a

company, the BARS method bases evaluations on specific behaviors required for each individual position in

an individual company.

16. Ans. A

Exp. Moonlighting is a term used to refer to holding a second job outside of normal working hours.

17. Ans. C

Exp. Content theories are also called needs theories, because they are generally associated with a view that

concentrates on the importance of determining 'what' motivates us. In other words they try to identify what

our 'needs' are and relate motivation to the fulfilling of these needs. Examples are Maslows Hierarchy of

Needs, "Management Assumptions" (Theory X and Theory Y), ERG Theory, McClellands Need for

Achievement, Affiliation and Power, Herzbergs' Two Factor Theory

18. Ans. B

Exp. Douglas McGregor further developed the needs concept of Maslow and specifically applied it to the

workplace. McGregor maintained that every manager made assumptions about their employees and adopted

a management approach based upon these assumptions. He maintained there were two main categories and

that managers adopted one or the other. The first category, which he termed Theory X, he maintained was

the dominant management approach and assumed 1) the average human being has an inherent dislike of

work and will avoid it if possible, 2) because of this most people needed to be coerced, controlled, directed

and threatened with punishment to get them to put adequate effort into the achievement of organisational

objectives, and 3) the average person prefers to be directed, wishes to avoid responsibility, has very little

ambition and wants security above all else. McGregor proposed an alternative set of assumptions which he

called Theory Y. The assumptions here are virtually the opposite to Theory X. They are: 1) Work is as

natural as play or rest. 2) External control and threat of punishment are not the only means of bringing about

effort towards organisational objectives. People will exercise self-direction and self-control towards the

achievement of objectives they are committed to. 3) Commitment to objectives is a function of the rewards

associated with their achievement. 4) The average person learns under proper conditions to not only accept

responsibility but also seek it.

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19. Ans. A

Exp. Informal group is of a social nature. Such groups are more for the benefit of its members than for the

organisation in which they belong. An instance of informal group is the office hiking club. Informal groups

are open groups; members could change their membership at anytime as they move up the ladder of

leadership. There are different reasons why individuals join groups in organisations. Becoming a member of

an informal group could most of the time be spontaneous than joining a formal group. People join groups

such as trade unions to defend their employment rights, support groups for emotional support, to help them

carry out difficult tasks in other words to help them grow.

20. Ans. A

Exp. Kurt Lewin developed a change model involving three steps: unfreezing, changing and refreezing.

The model represents a very simple and practical model for understanding the change process. For Lewin,

the process of change entails creating the perception that a change is needed, then moving toward the new,

desired level of behavior and finally, solidifying that new behavior as the norm.

21. Ans. A

Exp. organizational commitment is the individual's psychological attachment to the organization. The basis

behind study of organizational commitment is to find ways to improve how workers feel about their jobs so

that these workers would become more committed to their organizations.

22. Ans. D

Exp. Tripartism is a system of labour relations in which the state, employers, and workers are autonomous

yet interdependent partners, pursuing common interests and participating in decisions affecting them in a

binding spirit of mutuality and reciprocity. This can take place at either or both macro and micro levels.

Tripartite consultation is an important feature of India’s industrial relationssystem. It has a long history in

India as it was set up as early as 1942. The Indian Labour Conference (ILC) and the Standing Labour

Committee (SLC) are two main forums for Tripartite Consultation. There are a number of tripartite bodies

which operate at the Central and State levels. The Indian Labour Conference, Standing Labour Committees,

Wage Boards and Industrial Committees operate at the Central level and State Labour Advisory Boards

operate at the state level. All these bodies play an important role in reaching at voluntary agreements on

various labour matters.

23. Ans. A

Exp. According to Industrial Disputes Act, 1947 works committee can be constituted if there are 100

workers in an organization.

24. Ans. C

Exp. Joint Management Council, Works Committee and Canteen Committee are three joint forums for

settlement of industrial disputes. Shop Level Council (SLC) are Constituted to discuss department level

issues - Improvement of production, productivity & efficiency, elimination of wastage, improvement in

working conditions, safety etc. The members include - Head of Department as the Chairman, 8-12 members

equally representing the management and employees.

25. Ans. D

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Exp. It was in 1854 that the first textile mill was set up in Bombay. But it was in 1890 that the first trade

union—The Bombay Mill Hands Association—was founded by Narayan Meghaji Lokhande (Father of

Industrail relations in India). First Factory Act was passed and implemented in 1881.

26. Ans. C

Exp. Establishment of Socialist society is long term objective of trade unions.

27. Ans. C

Exp. AITUC was formed in 1920, INTUC in 1947, BMS in 1954 and CITU in 1970, HMS in 1948.

28. Ans. C

29. Ans. C

Exp. Ishikawa diagrams (also called fishbone diagrams, herringbone diagrams, cause-and-effect diagrams,

or Fishikawa) are causal diagrams created by Kaoru Ishikawa that show the causes of a specific event.

Common uses of the Ishikawa diagram are product design and quality defect prevention, to identify potential

factors causing an overall effect. Each cause or reason for imperfection is a source of variation. Causes are

usually grouped into major categories to identify these sources of variation

30. Ans. D

31. Ans. C

32. Ans. A

Exp. Sec 4. of the Trade Union Act, 1926 describes about mode of registration. Any seven or more members

of a Trade Union may, by subscribing their names to the rules of the Trade Union and by otherwise

complying with the provisions of this Act with respect to registration, apply for registration of the Trade

Union under this Act. Recognition of trade union is not done under Trade Union Act, rather it is done by

Code of Conduct.

33. Ans. C

Exp. As per Section 2(n) (vi) of the Industrial Disputes Act, 1947, the ‘appropriate Government’ may declare

any industry specified in the first Schedule of the Industrial Disputes Act, 1947 to be a public utility service

for a period of six months by issuing a Notification in the Official Gazette which may extend from time to

time for any period not exceeding six months if in the opinion of the appropriate Government public

emergency or public interest requires extension. Recently banking sector was included in the public utility

services.

34. Ans. D

Exp. Sec 7 of the payment of Wages Act , 1936 says about deduction. Deduction made for payment of debt

to money lender is not an authorized deduction under the payment of wages act,1936.

35. Ans. C

Exp. Under the Minimum Wages Act, 1948 there are two methods for fixation/revision of minimum wages,

namely:- 1) Committee method - Under this method, committees and sub-committees are set up by the

appropriate Governments to hold enquiries and make recommendations with regard to fixation and revision

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of minimum wages, as the case may be. 2) Notification method - Under this method, Government

proposals are published in the Official Gazette for information of the persons likely to be affected thereby

and specify a date not less than two months from the date of the notification on which the proposals will be

taken into consideration.

36. Ans. A

Exp. Payment of Bonus Act of 1965: This Act, applies to an enterprise employing 20 or more persons. The

Act requires employer to pay a bonus to persons on the basis of profits or on the basis of production or

productivity. The Act was modified to require companies to pay a minimum bonus, even if the employer

suffers losses during the accounting year

37. Ans. D

Exp. In every factory where more than 30 women are employed, a room shall be provided for the use of the

children (below 6 years) of such women. The room shall be adequate size. Well lighted and ventilated,

maintained in a clean and sanitary condition and shall be in charge of a woman trained in the care of children

and infants.

38. Ans. B

Exp. Harijan Sevak Sangh is a non-profit organisation founded by Mahatma Gandhi in 1932 to eradicate

untouchability in India, working for Harijan or Dalit people and up-liftment of Scheduled castes of India.

39. Ans. D

Exp. There are various theories of Labour welfare. 1- The Policing Theory 2- Religious Theory 3- The

Philanthropy Theory 4- The Trusteeship or Paternalistic Theory 5- Function Theory 6- The placating Theory

7- The Public Relation Theory

40. Ans. D

Exp. Intramural facilities - These are provided within the establishment such as rest centers canteen,

uniforms. Extramural facilities - These are activities which are undertaken outside the establishment such

as child welfare, transport facility etc.

41. Ans. C

42. Ans. D

43. Ans. B

Exp. Total concept emphasizes that the concept of labor welfare must spread to all levels of any

organizations. Health is one of the key issues for employees so its employer duty to provide an environment

for the same. Relative concept implies that welfare is related with time and place as it varies with its

context. Positive concept of labor welfare states that it gives employees a sense of safe, secure, healthy and

prosperous life. Social concept states that employer should ensure the welfare of employees, for their family

and society as a whole.

44. Ans. A

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Exp. Principles of Labour welfare are: Principle of co-ordination and integration. Principle of efficiency,

Principle of association, Principle of accountability, Principle of patronization, Principle of responsibility,

Workmen’s safety measures, Principle of timeliness.

45. Ans. C

Exp. Equal Remuneration Act, 1976 was enacted to check the payment of equal remuneration to men and

women workers and for the prevention of discrimination, on the ground of sex, against women in the matter

of employment and for matters connected therewith or incidental thereto.

46. Ans. B

Exp. In 1975, one of the populist measures adopted by the Government was a 20-point programme, and

workers’ participation was one of the points of this program.

47. Ans. A

Exp. ‘Labour is not a commodity is the principle’ is expressed in the preamble to the International Labour

Organization's founding documents. It expresses the view that people should not be treated like inanimate

commodities, capital, another mere factor of production, or resources. Instead, people who work for a living

should be treated as human beings, and accorded dignity and respect.

48. Ans. B

Exp. The term industrial democracy was also used by British socialist reformers Sidney and Beatrice Webb

in their 1897 book Industrial democracy. Industrial democracy is an arrangement which involves workers

making decisions, sharing responsibility and authority in the workplace. Peter Ferdinand Drucker contributed

to the philosophical and practical foundations of the modern business corporation. Industrial citizenship is

where employees have the right to form and join unions and to engage in actions such as strikes in pursuit of

higher wages and better conditions of employment. Class conflict, frequently referred to as class warfare or

class struggle, is the tension or antagonism which exists in society due to competing socio economic interests

and desires between people of different classes. The view that the class struggle provides the lever for radical

social change for the majority is central to the work of Karl Marx and the anarchist Mikhail Bakunin. Robert

Marcus Owen was a Welsh social reformer and one of the founders of utopian socialism and the welfare

movement.

49. Ans. B

Exp. Some of the most important theories of wages are as follows: 1. Wages Fund Theory 2. Subsistence

Theory 3. The Surplus Value Theory of Wages 4. Residual Claimant Theory 5. Marginal Productivity

Theory 6. The Bargaining Theory of Wages 7. Behavioural Theories of Wages. 1) Wages Fund Theory:

This theory was developed by Adam Smith. His theory was based on the basic assumption that workers are

paid wages out of a pre-determined fund of wealth. This fund, he called, wages fund created as a result of

savings. According to Adam Smith, the demand for labour and rate of wages depend on the size of the wages

fund. Accordingly, if the wages fund is large, wages would be high and vice versa. 2) Subsistence Theory:

This theory was propounded by David Recardo. According to this theory, “The labourers are paid to enable

them to subsist and perpetuate the race without increase or diminution”. This payment is also called as

‘subsistence wages’. The basic assumption of this theory is that if workers are paid wages more than

subsistence level, workers’ number will increase and, as a result wages will come down to the subsistence

level. 3) Surplus Value Theory of Wages: This theory was developed by Karl Marx . This theory is based

on the basic assumption that like other article, labour is also an article which could be purchased on payment

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of its price i.e. wages. This payment, according to Karl Marx, is at subsistence level which is less than in

proportion to time labour takes to produce items. The surplus, according to him, goes to the owner. Karl

Marx is well known for his advocation in the favour of labour. 4) Residual Claimant Theory: This theory

owes its development to Francis A. Walker. According to Walker, there are four factors of production or

business activity, viz., land, labour, capital, and entrepreneurship. He views that once all other three factors

are rewarded what remains left is paid as wages to workers. Thus, according to this theory, worker is the

residual claimant. 5) Marginal Productivity Theory: This theory was propounded by Phillips Henry Wick-

steed (England) and John Bates Clark of U.S.A. According to this theory, wages is determined based on the

production contributed by the last worker, i.e. marginal worker. His/her production is called ‘marginal

production’. 6) Bargaining Theory of Wages: John Davidson was the propounder of this theory. According

to this theory, the fixation of wages depends on the bargaining power of workers/trade unions and of

employers. If workers are stronger in bargaining process, then wages tends to be high. In case, employer

plays a stronger role, then wages tends to be low.

50. Ans. A

Exp. The American economist Taussig gives a modified version of the Marginal Productivity Theory of

Wages. According to him, wages represent the marginal discounted product of labour. According to Taussig,

the labourer cannot get the full amount of the marginal output. This is because production takes time and the

final product of labour cannot be obtained immediately. But the labourer has to be supported in the

meantime. This is done by the capitalist employer. The employer does not pay the full amount of the

expected marginal product of labour. He deducts a certain percentage from the final output in order to

compensate himself for the risk he takes in making an advance payment. This deduction, according to

Taussig, is made at the current rate of interest.