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CBSE/UGC-NET/JRF Human Resource Management

& Labour Welfare


ii

Publishing-in-support-of,

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Shubham Vihar, Mangla, Bilaspur, Chhattisgarh - 495001

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A Quick Mentor Book

For

CBSE/UGC-NET/JRF Human Resource Management & Labour Welfare Useful for NET Paper II and III/ PSU’s (MT)/Other Competitive

Exams. With HRM/OB & Labour Laws

Also Useful for PSU’s/ Management Trainee Exam./Special exams of UPSC, Assistant Labour Commissioners

(Central)/Assistant Welfare Commissioners (Central) /Assistant Labour Welfare Commissioners/

Asst. Provident Fund Commissioner Exam.

Objective Type Questions with Answer & Explanation Also Chapters with One Liner Facts on HRM, OB & IR

Written and Compiled By Reviewed ByAbhishek Kumar Pandey Dr. Tarun Singh GangwarMBA (HR), Diploma in Labour Laws,

Ph.D, MBA Associate Professor

UGC-NET (Management) ICCMRT, LucknowAssistant Professor, ICCMRT Lucknow

EDUCREATION PUBLISHING (Since 2011)

www.educreation.in


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v

Preface

I am very glad to present this book for all aspirants of various competitive exams with the special emphasis on the UGC –NET exam for the subjects Human Resource Management, Industrial Relations/ Labor Laws/ Social Welfare also useful to HRM part of PSU’s Exam. This book is very useful for PSU’s management trainee exam with HR/personnel as a specialized subject. I believe that these self-learning chapters will provide ample support in cracking any exam of alternative Choices; explanations are given in such a manner that a student can learn the diffi culty and more concepts too. The one liner facts on HRM, IR and O.B shall be helpful for quick revision and are most important too.

This book will provide a lot of guidance to students. I have selected previous year asked questions of UGC exams and memory based questions of various PSU’exam of HR discipline and given them a place in this present book. I am very thankful to Goddess Ma Sarswati; it’s only her blessings that I am able to publish this book. I am expecting yours valuable suggestions for any improvements or appreciation.

I dedicated this book to my mother Smt. Krishna Pandey; her constant blessings always encourage me to achieve extra mile stone. My friend Shubham Mishra is always a source of inspiration for me. A special thanks to Dr Tarun Singh Gangwar Associate Professor, ICCMRT Lucknow, as his constant encouragement is valuable for me. All well-wishers are my strength. I am wishing all students, corporate learners and scholars for their best Success. I always believe that only hard work can give an amazing success. I also request to all readers if this book contains any wrong facts or misprinting then please write me at [email protected] , I will heartedly welcome your suggesstions.So keep reading this book. All the best!

(ABHISHEK KUMAR PANDEY)


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About The Author

Author has completed his graduation (B.Sc maths) from Campus, University of Gorakhpur and MBA from Institute of environment & management, Lucknow affi liated to Dr A. P.J Abdul Kalam Technical University (Formerly UPTU) Lucknow with specialization HRM & Marketing. He has also qualifi ed UGC-NET exam and completed Diploma in Labour Laws. He has more than four year of experience of teaching & Consultancy. He has two research paper publications. He has also presented papers in National Seminars. His interest area is Human resource management, Organizational behavior, Labour Laws & Industrial Relations and General Management. Author has good experience of competitive exams like PSU’s, Banking HR offi cers exams, UPSC, State PSC and UGC-NET Exams so this book is presented for the Aspirants of Various exam preparing with Subject HRM, OB & Labour Laws. His aim is to write most useful books for aspirants in management science domain.


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About The Book

The book is written keeping in view the Syllabus & Question Patterns of various competitive exams with specialization to the Subjects Human resources Management, Organizational Behaviour and Labour Laws. The Book Contains objectives type questions with Answers & explanation of typical facts and concepts. It also includes Chapters of One liner facts and brief concepts in HRM, OB and Labour Laws. Books is very useful for UGC NET Exam and also dream Jobs of PSU’s like Coal India, NTPC, SAIL, ONGC, PSU’s Banks, Corporate Exams in HRM & Other organizations. The memory based and other actual relevant previous year questions of PSU’s Management trainees Exam & UGC-NET has been given place in this book. Including Multiple Choice Questions (MCQ), one liners and explanations, this book contains almost thousands of tricky facts and concepts. Author is very much assured of Success of the Aspirants. In the words of Author “This book will be useful for everyone who has interest in HRM, OB and Labour Laws including faculties, students and Corporate HR Professional”. This Quick Mentor book contains almost thousands of most important facts of HRM, Labour Laws & OB.

Proposed BOOK BY THE AUTHOR: The Next Book proposed by The Author is ‘Human Resource Management & Organisational Behaviour’ with Case Approach: A Clear modern Understanding.


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Table of Contents

Contents Page NumbersSelf-Learning Chapter - 1 1Self-Learning Chapter - 2 29Self-Learning Chapter - 3 52Self-Learning Chapter - 4 63Self-Learning Chapter - 5 72Self-Learning Chapter - 6 82Self-Learning Chapter - 7 92One Liners facts on Human Resource Management 102One Liners Facts on Organisational Behaviour 111One Liners Facts On Labour Laws/Industrial Relations 121References 135


CBSE/UGC-NET/JRF Human Resource Management & Labour Welfare

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SELF-LEARNING CHAPTER - 1___________________________________________________________

1. Term MBE stands in Management for, (a) Management By Expression(b) Management By Exit(c) Management By Exhaustion(d) Management By Exception 1. Ans: (d)

This Concept tells that only crucial and exceptional work should be given to Top Management as their time is very important for other more important work than small work or issues.

2. The welfare is a state of living of an individual or a group in desirable relation to the environment, animate and inanimate, according to (a) K.N.Vaid(b) A.M.Sharma(c) M.V Moorthy(d) S.D Punekar2. Ans: (c)

The book ‘Principles of Labor Welfare’ was written By M.V.Moorthy in 1968.In this book, he listed the welfare facilities in two broad group one is welfare measures inside the work place and second welfare practices outside the workplace also he defi ned welfare is a state of living of an individual or a group in desirable relation to the environment, animate and inanimate.

3. Match the followings:Welfare Funds Years (a) Coal mines welfare fund Act (i) 1973(b) The Mica Mines Welfare Funds Act (ii) 1961(c) The iron ore mines labor welfare fund (iii) (iii) 1946(d) The Lime Stone and Dolomite Mines Labor Welfare Act (iv) 1947


Abhishek Kumar Pandey

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Codes: (a) (b) (c) (d)(A) (ii) (iii) (i) (iv) (B) (iv) (ii) (iii) (i)(C) (ii) (iv) (i) (iii)(D) (iv) (iii) (ii) (i) 3. Ans :(d)

Coal mines welfare fund Act, 1947; is an Act to make better provision for fi nancing measures for promoting welfare of labor employed in coal-mining Industry. The Mica Mines Welfare Funds Act; 1946 is An Act to constitute a fund for the fi nancing of activities to promote the welfare of labor employed in the mica mining industry. The Limestone and Dolomite Mines Labor Welfare Fund Act, 1972, is An Act to provide for the levy and collection of a cess on limestone and dolomite for the fi nancing of activities to promote the welfare of persons employed in the limestone and dolomite mines.

4. Which of the following recommended to the government of India to consider making social security as a fundamental human right?(a) The labor investigation committee (b) The royal commission on labor(c) The fi rst national commission on labor(d) The second national commission on laborAns: (b)

The Whitley or Royal commission on labor was appointed in 1929, the social securityas a fundamental rights with the tune of this Act. The fi rst National Commission on Labor was set up on 24 December 1966 under the Chairmanship of Justice P.B Gajendragadkar. The Commission submitted its report in August, 1969 after detailed examination of all aspects of labor problems, both in the organized and unorganized sectors. The second National Commission on Labor (NCL) was set up in 2002 under the chairmanship ofRavindraVerma.

5. Which of the following can’t be regarded as a statutory welfare facility for factory workers? (a) Canteen(b) Housing(c) Shelter, Restrooms and Lunch Rooms.(d) First Aid Box5. Ans: (b)



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As per the section-46 of Factories Act, 1948 canteen is a statutory welfare facility also in section section-45 provisions of First-aid appliances and in section-47 Shelters, rest rooms and lunch rooms. In every factory wherein more than 150 workers are ordinarily employed, adequate and suitable shelters or rest rooms and a suitable lunch room should be provides to workers by employer. As per the section 15 of the plantation labor Act 1951, it shall be the duty of every employer to provide and maintain necessary housing accommodation.

6. The seven approaches to philosophy or theory of labour welfare were fi rst identifi ed by (a) K.N. Vaid(b) M.V. Moorthy(c) A.M. Sharma(d) I.D. Punekar6. Ans: (b)

The book ‘Principles of Labor Welfare’ was written By M.V.Moorthy in 1968.In this book, he listed the welfare facilities in two broad group one is welfare measures inside the work place and second welfare practices outside the workplace also he defi ned welfare is a state of living of an individual or a group in desirable relation to the environment, animate and inanimate. The seven theories are mainly religion, functional, policing, public relations, placating, philanthropic, and paternalistic theory.

7. The term Scientifi c Management was for the fi rst time by(a) Louis Brandeis(b) F W Taylor(c) Max weber(d) Robert OwenAns: (a)

8. Match the following(a) Royal commission on labour 1. Rege(b) First National Labour Commission 2. Whitley(c) Second National Labour Commission 3. Gadkar(d) Labour Investigation Committee 4. RavindraVerma

Codes:1 2 3 4

a) b a d cb) a b c d



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c) d a b cd) c d a bAns: (c)

9. Which of the following cannot be regarded as extra mural labor welfare facility?(a) Canteen(b) Housing(c) Hospital(d) Playground9. Ans: (a)

Canteen is an Intramural facility. Extra-mural facilities cover the services and facilities provided outside the factory. An Intra mural welfare amenity consists of facilities provided within the factory

10. Who among the following is not regarded as welfare agency for factory workers?(A) Employer(B) Trade Unions(C) N.G.Os (D) State and Central Government10. Ans: (c)

In tripartite mechanism Of Industrial Relations, Employers’, employees and Government are the main part of the IR system and each of these have their trademarks for the welfare of the employee and promoting industrial democracy.

11. Housing is a statutory welfare under which of the following Acts?(A) Factories’ Act(B) Mines Act(C) Shops and Commercial Establishment Act(D) Plantation Labor Act11 Ans: (d)

As per the section 15 of the plantation labor Act 1951, it shall be the duty of every employer to provide and maintain necessary housing accommodation.



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12. What has been the impact of Globalization in India on State Regulation of Wages?(A) Scope of State Regulation has increased.(B) Scope of State Regulation has decreased.(C) There has been no impact.(D) None of the above 12. Ans: (b)

Two claims about the impact of globalisation have been made in India. One, made by the corporate lobby, is that globalization requires the dilution of existing labor standards and, a forteriori, strong resistance to any strengthening of workers’ rights, since these are an obstacle to competitiveness in the global economy as well as to attracting foreign investment. The other, made by mainstream Left parties and their trade unions, is that globalization, through the agency of transnational corporations, the World Bank, IMF and WTO, is driving the dilution of labor standards and assault on workers’ rights. Coming from seemingly opposite quarters, these claims converge on one common point: globalization inevitably leads to an attack on workers’ rights.

13. Arrange the following according to their comparative position from lowest to the highest:(a) Statutory Minimum Wage(b) Subsistence Wage(c) Living Wage(d) Fair Wage(A) (a) (c) (b) (d)(B) (b) (d) (a) (c)(C) (b) (a) (d) (c)(D) C (d) (b) (a)13. Ans: (a)

A living wage is the minimum income necessary for a worker to meet their needs that are considered to be basic. Subsistence, which refers to a biological minimum these needs include shelter (housing) and other incidentals such as clothing and nutrition. Minimum wage is set by law to meet the requirements to have a basic quality of life and leaves the family to rely on government programs for additional income. Fair wage is that level of wage that not just maintains a level of employment, but seeks to increase it keeping in perspective the industry’s capacity to pay



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14. Which of the following statements appear to be correct?(A) Wage differential is desirable for the growth and development of

the society.(B) There should be no wage differential in the country.(C) The state through regulation of wages can eliminate wage

differentials.(D) None of the above14. Ans: (c)

As per our constitution it is the duty of state to watchdog about equal remuneration both for male as well as female workers.

15. Match the following:Theories of Wages Propounder(a) SubsistenceTheory (i) Karl Marx(b) Wage Fund Theory (ii) Francis Walker(c) Residual Claimant Theory (iii) J.S. Mill(d) Surplus Value Theory (iv) David RicardoCodes: (a) (b) (c) (d)(A) (iii) (iv) (i) (ii) (B) (iv) (iii) (ii) (i) (C) (ii) (i) (iii) (iv)(D) (i) (iii) (iv) (ii)

15. Ans: (b)Subsistence theories emphasize the supply aspects of the labor

market while neglecting the demand aspects it was given by David Ricardo. Wage-fund theory was fi rst suggested by Adam Smith when he intimated that a store of funds was available out of which wages could be paid, J.S Mill has also added more concepts to wage fund theory. The residual-claimant theory of wages, originated by the American economist Francis A. Walker, held that wages were the remainder of total industrial revenue after rent, interest, and profi t (which were independently determined) were deducted. In Marx’s estimation, it was not the pressure of population that drove wages to the subsistence level but rather the existence of large numbers of unemployed workers. Marx blamed unemployment on capitalists.

16. Which of the following is not a Characteristic of labor market?(A) Same wage rate(B) More sellers than buyers



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(C) Heterogeneity in labor Services(D) Limited mobility of labor16. Ans: (a)

Same Wage Rate cannot be found in labor market due to imperfect mobility of workforce.

17. Which of the following factors affect Supply of labor?(A) Population and Labor Force Participation Rate(B) Skill, Experience and Job Qualifi cation(C) Mobility of Labor and Organization of Buyers and Sellers(D) All the above17. Ans: (d)

18. Which of the following cannot be said to be a type of wage differential?(A) Occupational Wage Differential(B) Geographical Wage Differential(C) Inter-industry Wage Differential(D) National Wage DifferentialAnswer: (d)

Wage differential as per skill (or occupation) and by industry known as occupational. Geographic differentials are market-driven pay variations between locations. Inter-industry wage differentials have implications for the types of tasks and duties that are expected to be most closely associated with wage differences among industries. National Wage Differential is not a type of wage differential.

19. Fixing lower retirement age for workers will result in(A) Increased supply of labour(B) Reduced supply of labour(C) Will have no effect on supply of labor(D) None of the above19. Ans: c

20. Which of the following industries lead to seasonal unemployment?(A) Sugar industry(B) Construction industry(C) Ice-cream industry(D) All the above20 Ans: (d)



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21.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.21. Ans: (c)

22. Tripartite Wage Boards in India followed which of the following principles while making their recommendations?(A) Minimum Wage Principle(B) Fair Wage Principle(C) Living Wage Principle(D) None of the above22. Ans: (b)

Fair wage is that level of wage that not just maintains a level of employment, but seeks to increase it keeping in perspective the industry’s capacity to pay. To achieve this in its fi rst session during November 1948, the Central Advisory Council appointed a Tripartite Committee of Fair Wage.

23.Karl Marx is said to be the proponent of which of the following theories of wages?(A) Subsistence Theory of Wage(B) Wage Fund Theory(C) Surplus Value Theory of Wage(D) Marginal Value Theory of Wage23. Ans: (c)

In Surplus Value Theory of wages Marx’s estimation, it was not the pressure of population that drove wages to the subsistence level but rather the existence of large numbers of unemployed workers. Marx blamed unemployment on capitalists. Subsistence theories emphasize the supply aspects of the labor market while neglecting the demand aspects it was given by David Ricardo. Wage-fund theory was fi rst suggested by Adam Smith when he intimated that a store of funds was available out of which wages could be paid, J.S Mill has also added more concepts to wage fund theory. The marginal revenue productivity theory of wages also referred to as the marginal revenue product of labor and the value of the marginal product or VMP is the change in total revenue earned by a fi rm that results from employing one more unit of labor. It is a neoclassical model that determines,



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under some conditions, the optimal number of workers to employ at an exogenously determined market wage rate.

24. 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.24. Ans :(c)

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.

25. 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 above25. Ans: (a)

To maintain harmonious relations and promote industrial peace, a Code of Discipline has been laid down which applies to both public and private sector enterprises. It specifi es various obligations for the management and the workers with the objective of promoting cooperation between their representatives. The 20 point programme fi rst initially launched by the Prime minister late Indira Gandhi for poverty eradication in the year 1975.

26. Outsourcing, when it is done internationally, affects which of the following in the country which out–Sources:(A) Supply of labour(B) Demand for labour(C) Both supply and demand(D) None of the above26. Ans :(c)

In business, outsourcing involves the contracting out of a business process to another party (compare business process outsourcing). The term “outsourcing” dates back to at least 1981. Outsourcing



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sometimes involves transferring employees and assets from one fi rm to another, but not always.

27. The Chapter on “Annual Leave with Wages” is provided under the(A) Payment of Wages Act, 1936(B) Minimum Wages Act, 1948(C) Factories Act, 1948(D) Employees’ State Insurance Act, 194827.Ans: (c)

As per the section -79 of the factories Act 1948, Every worker who has worked for a period of 240 days or more in a factory during a calendar year shall be allowed during the subsequent calendar year, leave with wages for a number of days calculated at the rate of—(i) if an adult, one day for every twenty days of work performed by him during the previous calendar year;(ii) if a child, one day for every fi fteen days of work performed by him during the previous calendar year.

28. ‘Consumer Price Index’ is taken into account in connection with which of the following:(A) Payment of Bonus Act, 1965(B) Payment of Gratuity Act, 1972(C) Minimum Wages Act, 1948(D) Payment of Wages Act, 1936Ans: (c)

The Minimum Wages Act, 1948 was enacted to safeguard the interests of workers, mostly in the unorganized sector by providing for the fi xation of minimum wages in certain specifi ed employments. It binds the employers to pay their workers the minimum wages fi xed under the Act from time to time. Minimum wage and an allowance linked to the cost of living index and is to be paid in cash, though payment of wages fully in kind or partly in kind may be allowed in certain cases. The minimum rate of wages consists of a basic wage and a special allowance, known as ‘Variable Dearness Allowance (VDA)’ linked to the Consumer Price Index Number. The allowance is revised twice a year, once in April and then in October.

29. Which of the following Legislations took into account the provision 81 A of the Defense of India Rules?(A) Trade Unions Act, 1926(B) Industrial Disputes Act, 1947



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