Dibrugarh
University B. Com 3rd Sem Solved Question Papers
3
SEM TDC HRM (NON CBCS Pattern)
Human
Resource Management 2012 (November)
COMMERCE
(General/Speciality)
Full
Marks: 80
Pass
Marks: 32
Time:
3 hours
The
figures in the margin indicate full marks for the questions
1. Write true or false:
a) Human resource of management is a proactive function. True
b) Human resource Planning is not concerned with future requirement of human resources in an organization. True
c) Job evaluation as a comparative process of establishing the value of different jobs in a hierarchical order. True
d) There are some difference between recruitment and selection. True
e) Career planning of an organization cannot attract competent person and retain them. False
f) Compensation package is concerned with the value of the goods or commodities destroyed by the employees of an organization. False
g) Induction is the orientation training to the newly appointed people about the organization. True
h) The popular methods of organization development are Kurt Levin’s method, Greiner’s method and Leavitt’s model. True
2. (a) Answer the following question:
a. Mention four objective of Human Resource Management.
Ans: Objectives of HRM
The primary objective of HRM is to ensure the availability of competent and willing workforce to an organization. The specific objectives include the following:
1) Societal Objectives: seek to ensure that the organization becomes socially responsible to the needs and challenges of the society while minimizing the negative impact of such demands upon the organization. The failure of the organizations to use their resources for the society’s benefit in ethical ways may lead to restriction.
2) Organizational Objectives: it recognizes the role of HRM in bringing about organizational effectiveness. It makes sure that HRM is not a standalone department, but rather a means to assist the organization with its primary objectives. The HR department exists to serve the rest of the organization.
3) Functional Objectives: is to maintain the department’s contribution at a level appropriate to the organization’s needs. Human resources are to be adjusted to suit the organization’s demands. The department’s value should not become too expensive at the cost of the organization it serves.
4) Personnel Objectives: it is to assist employees in achieving their personal goals, at least as far as these goals enhance the individual’s contribution to the organization. Personal objectives of employees must be met if they are to be maintained, retained and motivated. Otherwise employee performance and satisfaction may decline giving rise to employee turnover.
b. Write down four problems of Human Resource Planning.
Ans: Disadvantages of human resource planning
Although human resource planning comes with so many advantages, it can also have some disadvantages, which sometimes prevent some organizations from engaging in it. Some of the disadvantages associated with human resource planning include the following:
1. The future is uncertain: The future in any country is uncertain i.e. there are political, cultural, technological changes taking place every day. This effects the employment situation. Accordingly the company may have to appoint or remove people. Therefore HRP can only be a guiding factor. We cannot rely too much on it and do every action according to it.
2. Conservative attitude of top management: Much top management adopts a conservative attitude and is not ready to make changes. The process of HRP involves either appointing. Therefore it becomes very difficult to implement HRP in organization because top management does not support the decisions of other department.
3. Problem of surplus staff: HRP gives a clear out solution for excess staff i.e. Termination, layoff, VRS,. However when certain employees are removed from company it mostly affects the psyche of the existing employee, and they start feeling insecure, stressed out and do not believe in the company. This is a limitation of HRP i.e. it does not provide alternative solution like re-training so that employee need not be removed from the company.
4. Time consuming activity: HRP collects information from all departments, regarding demand and supply of personnel. This information is collected in detail and each and every job is considered. Therefore the activity takes up a lot of time.
c. Mention four external sources of recruitment.
Ans: Advertisement: Advertisement is the best method of recruiting persons for higher and experienced jobs. The advertisements are given in local or national press, trade or professional journals. The requirements of jobs are given in the advertisement. The prospective candidates evaluate themselves against the requirement of jobs before sending their applications. Management gets a wider range of candidates for selection. The flood of applications may create difficulties in the process.
Employment Exchanges: Employment Exchanges run by the government are also a good source of recruitment. Unemployed persons get themselves registered with these exchanges. The vacancies may be notified with the exchanges, whenever there is a need. The exchange supplies a list of candidates fulfilling required qualification. Exchanges are a suitable source of recruitment for filling unskilled, semi-skilled, skilled and operative posts.
Education Institutions: The jobs in trade and industry are becoming technical and complex. These jobs require certain amount of educational and technical qualifications. The employers maintain a close liaison with universities and technical institutions. The students are spotted during the course of their studies. Junior level, executives or managerial may be recruited in this way.
Unsolicited Applicants: Persons in search of employment may contact employers through telephone, by post or in person. Generally, employers with good reputation get unsolicited applications. If an opening is there or is likely to be there then these persons are considered for such jobs. Personnel department may maintain a record of unsolicited applications. When jobs suitable for these persons are available these persons are available these are considered for employment.
d. Mention four methods of identifying training needs.
Ans: Methods of training for managers/methods of managerial development/executive development:
A) On the job method: On the job method refers to training given to personnel inside the company. There are different methods of on the job training.
1. Job rotation: This method enables the company to train managerial personnel in departmental work. They are taught everything about the department. Starting from the lowest level job in the department to the highest level job. This helps when the person takes over as a manager and is required to check whether his juniors are doing the job properly or not. Every minute detail is studied.
2. Planned progression: In this method juniors are assigned a certain job of their senior in addition to their own job. The method allows the employee to slowly learn the job of his senior so that when he is promoted to his senior job it becomes very easy for him to adjust to the new situation. It also provides a chance to learn higher level jobs.
3. Coaching and counseling: Coaching refers to actually teaching a job to a junior. The senior person who is the coach actually teaches his junior regarding how the work must be handled and how decisions must be taken, the different techniques that can be used on the job, how to handle pressure. There is active participation from the senior. Counseling refers to advising the junior employee as and when he faces problems. The counselor superior plays an advisory role and does not actively teach employees.
4. Under study: In this method of training a junior is deputed to work under a senior. He takes orders from the senior, observes the senior, attends meetings with him, learns about decision making and handling of day to day problems. The method is used when the senior is on the verge of retirement and the job will be taken over by the junior.
(b) Write short notes on:
a. Promotional Training
Ans: The Promotional Training means preparing the potential candidate to handle more duties and responsibilities, thereby making him/her eligible for promotion to higher jobs in the organization. Simply, training given to the efficient workers of an organization who are likely get promoted in the near future.
b. Financial Incentive
Ans: Ans: Financial/Incentives Techniques of Motivation: Financial techniques refer to monetary rewards. Incentives are nothing but the inducements provided to employees in order to motivate them. There should be direct relationship between efforts and rewards, financial reward should be substantial in value and must be in parity with others.
Under -paying staff sends the message that your firm doesn’t value their work. Money is not a prime motivator but this should not be regarded as a signal to reward employees poorly or unfairly.
The financial incentives include:
1. Pay and Allowances: It includes basic pay, grade pay, and dearness allowance; travelling allowance, pay increments, etc. Good pay and allowances help the organization to retain and attract capable persons. However, good pay and allowances need not motivate all the people, especially who are enjoying security of job in government organizations and those for whom corruption is a way of life.
Some of the other issues are associated with bad attitudes, grievances, absenteeism, turnover, poor organizational citizenship, and adverse effect on employees’ mental and physical health.
2. Incentive Pay: Incentive pay plans are meant to increase output, which can be measured quantitatively. For incentive plan targets, the employees must have confidence that they can achieve the targets.
3. Gain Sharing: It is a reward system in which team members earn bonus for increasing productivity or reduce wastages. To illustrate, if the wastage is reduced from 5% to less the benefits may be shared equally with the team.
4. Profit Sharing: It means sharing of profits with the employees by way of distribution of bonus. Profit sharing plan has its shortcomings – one, that it has become a regular feature in government departments irrespective of performance and two, it may have no relation with individual efforts.
5. Stock Options: Many companies use employee stock options plans to compensate, retain, and attract employees. These plans are contracts between a company and its employees that give employees the right to buy a specific number of the company’s shares at a fixed price within a certain period of time.
Employees who are granted stock options hope to profit by exercising their options at a higher price than when they were granted. In India, stock options have primarily been used as a retention tool for a more selective group of employees.
6. Retirement Benefits: It includes the accumulated provident fund, gratuity, leave encashment and pension. The provision of terminal benefits provides assurance to employees during the service for their future
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Also Read: Papers and Solutions for Dibrugarh University B.Com 3rd Sem
Human Resource Management Question Papers (CBCS Pattern): 2020 2021 (Held in 2022)
Human Resource Management Solved Papers (CBCS Pattern): 2020 2021 (Held in 2022
Human Resource Management Question Papers (NON CBCS Pattern): Nov' 2012 Nov' 2013 Nov'2014 Nov'2015 Nov'2016 Nov'2017 Nov'2018 Nov' 2019
Human Resource Management Solved Papers (NON CBCS Pattern): 2012 2013 2014 2015 2016 2017 2018
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3. (a) What do you mean by Human Resource Management? Explain its functions.
Ans: Meaning and Definition of Human Resource Management (HRM)
Human Resource Management (HRM) can be defined as the set of programs, functions, and activities designed and performed in order to maximize both employee as well as organizational effectiveness. It is a management function that helps organization in recruiting, selecting, training, developing and managing its members. HRM is concern with the management of people in the organization from Recruitment to Retirement.
According to Flippo, “human resource management is the planning , organizing , directing and controlling of the procurement, development, compensation, integration, maintenance, and separation of human resource to the end that individual, organizational and social objectives are accomplished.”
According to the Invancevich and Glueck, “HRM is concerned with the most effective use of people to achieve organizational and individual goals. It is the way of managing people at work, so that they give their best to the organization”.
According to Dessler (2008) the policies and practices involved in carrying out the “people” or human resource aspects of a management position, including recruiting, screening, training, rewarding, and appraising comprises of HRM.
Generally HRM refers to the management of people in organizations. It comprises of the activities, policies, and practices involved in obtaining, developing, utilizing, evaluating, maintaining, and retaining the appropriate number and skill mix of employees to accomplish the organization’s objectives. The goal of HRM is to maximize employees’ contributions in order to achieve optimal productivity and effectiveness, while simultaneously attaining individual objectives (such as having a challenging job and obtaining recognition), and societal objectives (such as legal compliance and demonstrating social responsibility). In short Human Resource Management (HRM) can be defined as the art of procuring, developing and maintaining competent workforce to achieve the goals of an organization in an effective and efficient manner.
Functions of HRM:
The function performed by the resource management can broadly be classified into two categories, viz.
(1) Managerial functions, and
(2) Operative functions
(1) Managerial Functions:
Planning: Planning is a predetermined course of actions. It is a process of determining the organisational goals and formulation of policies and programmes for achieving them. Thus planning is future oriented concerned with clearly charting out the desired direction of business activities in future. Forecasting is one of the important elements in the planning process. Other functions of managers depend on planning function.
Organising: Organising is a process by which the structure and allocation of jobs are determined. Thus organising involves giving each subordinate a specific task establishing departments, delegating authority to subordinates, establishing channels of authority and communication, coordinating the work of subordinates, and so on.
Staffing: It is a process by which managers select, train, promote and retire their subordinates This involves deciding what type of people should be hired, recruiting prospective employees, selecting employees, setting performance standard, compensating employees, evaluating performance, counseling employees, training and developing employees.
Directing/Leading: Directing is the process of activating group efforts to achieve the desired goals. It includes activities like getting subordinates to get the job done, maintaining morale motivating subordinates etc. for achieving the goals of the organisation.
Controlling: It is the process of setting standards for performance, checking to see how actual performance compares with these set standards, and taking corrective actions as needed.
(2) Operative Functions: The operative, also called, service functions are those which are relevant to specific department. These functions vary from department to department depending on the nature of the department Viewed from this standpoint, the operative functions of HRM relate to ensuring right people for right jobs at right times. These functions include procurement, development, compensation, and maintenance functions of HRM.
Procurement: It involves procuring the right kind of people in appropriate number to be placed in the organisation. It consists of activities such as manpower planning, recruitment, selection placement and induction or orientation of new employees.
Development: This function involves activities meant to improve the knowledge, skills aptitudes and values of employees so as to enable them to perform their jobs in a better manner in future. These functions may comprise training to employees, executive training to develop managers, organisation development to strike a better fit between organisational climate/culture and employees.
Compensation: Compensation function involves determination of wages and salaries matching with contribution made by employees to organisational goals. In other words, this function ensures equitable and fair remuneration for employees in the organisation. It consists of activities such as job evaluation, wage and salary administration, bonus, incentives, etc.
Maintenance: It is concerned with protecting and promoting employees while at work. For this purpose virus benefits such as housing, medical, educational, transport facilities, etc. are provided to the employees. Several social security measures such as provident fund, pension, gratuity, group insurance, etc. are also arranged.
Or
(b) Distinguish between Human Resource Management and Personnel Management. Discuss the importance of Human Resource Management in a Modern enterprise.
Ans: Difference Between Personnel Management And Human Resource Management
Human resource management is the new version of personnel management. There is no any watertight difference between human resource management and personnel management. However, there are some differences in the following matters.
1. Personnel management is a traditional approach of managing people in the organization. Human resource management is a modern approach of managing people and their strengths in the organization.
2. Personnel management focuses on personnel administration, employee welfare and labor relation. Human resource management focuses on acquisition, development, motivation and maintenance of human resources in the organization.
3. Personnel management assumes people as a input for achieving desired output. Human resource management assumes people as an important and valuable resource for achieving desired output.
4. Under personnel management, personnel function is undertaken for employee's satisfaction. Under human resource management, administrative function is undertaken for goal achievement.
5. Under personnel management, job design is done on the basis of division of labor. Under human resource management, job design function is done on the basis of group work/team work.
6. Under personnel management, employees are provided with less training and development opportunities. Under human resource management, employees are provided with more training and development opportunities.
7. In personnel management, decisions are made by the top management as per the rules and regulation of the organization. In human resource management, decisions are made collectively after considering employee's participation, authority, decentralization, competitive environment etc.
8. Personnel management focuses on increased production and satisfied employees. Human resource management focuses on effectiveness, culture, productivity and employee's participation.
9. Personnel management is concerned with personnel manager. Human resource management is concerned with all level of managers from top to bottom.
10. Personnel management is a routine function. Human resource management is a strategic function.
Significance/Importance or Advantages of training programs/training to the company and employees:
The following are the advantages of training program to the company:
1. Increase in efficiency of worker: Training programs can help workers to increase their efficiency levels, improve quality and thereby increase sales for the company.
2. Reduced supervision: When workers have been formally trained they need not be supervised constantly. This reduces the work load on the supervisor and allows him to concentrate on other activities in the factory.
3. Reduction in wastage: The amount of material wasted by a trained worker is negligible as compared to the amount of material wasted by an untrained worker. Due to this the company is able to reduce its cost its cost of production.
4. Less turnover of labour: One of the advantages of the training program is that it increases the confidence of employees and provides them with better career opportunities. Due to this employee generally do not leave the company. There by reducing labour turnover.
5. Training helps new employees: A person, who is totally new to the company, has no idea about its working. Training helps him to understand what is required from him and helps him to adjust to the new environment.
6. Union management relations: When employees are trained and get better career opportunities. The union starts having a possible attitude about the management. They feel that the management is genuinely interested in workers development. This improves union management relations.
The following are the advantages of training program to the employee
1. Better career opportunities: Training programs provide the latest information, develops talent and due to this the employee is in a position to get better jobs in the same company or other companies.
2. High rewards: Effective training programs result in improved performance. When performance appraisal is done excellent performance from the employee is rewarded by giving him incentives and bonus.
3. Increased motivation: Employees who have been trained are generally more confident as compared to others. Since their efforts will be rewarded in future they are very much interested in improving their performance. Therefore we can say that their motivation levels are very high.
4. Group efforts: Training programs are not only technical programs but are also conducted in areas like conflict management, group dynamics (formal and informal groups), behavioral skills, stress management etc. this enables employees to put in group effort without facing problems that groups normally face. In other words training teaches people to work in a group.
5. Promotion: People who attend training programs learn from them and improve themselves are generally considered for promotion. Thus training increases chances of promotion.
4. (a) Discuss the nature and significance of Human Resource Planning.
Ans: Meaning and Definition of Human Resource Planning
Human resource planning can be defined as the process of identifying the number of people required by an organization in terms of quantity and quality. All human resource management activities start with human resource planning. So we can say that human resource planning is the principle/primary activity of human resource management.
According to Gordon Mc Beath, “HRP is concerned with two things: Planning of manpower requirements and Planning of Manpower supplies”.
According to Beach, “HRP is a process of determining and assuming that the organization will have an adequate number of qualified persons, available at proper times, performing jobs which meet the needs of the enterprise and which provides satisfaction for the individuals involved”
Simply HRP can be understood as the process of forecasting an organization’s future demands for and supply of the right type of people in the right number. In other words HRP is the process of determining manpower needs and formulating plans to meet these needs.
Characteristics of Human Resource Planning
Characteristics of effective human resource planning are as follows:
1. Future Oriented: Human resource planning is prepared to assess the future requirement of manpower in the organization. It helps identify the size and composition of resources for future purpose.
2. Continuous Process: Human resource planning is a continuous process. The human resource planning prepared today may not be applicable for future due to ever changing external forces of the environment.
3. Optimum Utilization of Human Resources: Human resource planning focuses on optimum utilization of resources in the organization. It checks how the employees are utilized in a productive manner.
4. Right Kinds and Numbers: Human resource planning determines the right number and kind of people at the right time and right place that are capable of performing the required jobs.
5. Determination of Demand and Supply: Human resource planning is a process of determining demand for and supply of human resources in the organization. Then a match between demand and supply estimates the optimum level of manpower.
6. Environmental Influence: Human resource planning is influenced by environmental changes, hence, it is to be updated as per the change occupied in the external environment.
7. Related to Corporate Plan: Human resource planning is an integral part of overall corporate plan of the organization. It can be formulated at strategic, tactical and operational levels.
8. A Part of Human Resource Management System: As a part of total human resource management system, human resource planning is regarded as a component or element of HRM which is concerned with acquisition and assessment of manpower.
Significance or need or Importance of Human Resource Planning
Human resource planning aims at fulfilling the objectives of manpower requirement. It helps to mobilize the recruited resources for the productive activities. The human resource planning is and important process aiming to link business strategy and its operation. The importances of human resource planning are as follows:
1. Future Manpower Needs: Human resource planning ensures that people are available to provide the continued smooth operation of an organization. It means, human resource planning is regarded as a tool to assure the future availability of manpower to carry on the organizational activities. It determines the future needs of manpower in terms of number and kind.
2. Coping with Change: Human resource planning is important to cope with the change associated with the external environmental factors. It helps assess the current human resources through HR inventory and adapts it to changing technological, political, socio-cultural, and economic forces.
3. Recruitment of Talented Personnel: Another purpose of HR planning is to recruit and select the most capable personnel to fill job vacancies. It determines human resource needs, assesses the available HR inventory level and finally recruits the personnel needed to perform the job.
4. Development of Human Resources: Human resource planning identifies the skill requirements for various levels of jobs. Then it organizes various training and development campaigns to impart the required skill and ability in employees to perform the task efficiently and effectively.
5. Proper Utilization of Human Resources: Human resource planning measures that the organization acquires and utilizes the manpower effectively to achieve objectives. Human resource planning helps in assessing and recruiting skilled human resource. It focuses on the optimum utilization of human resource to minimize the overall cost of production.
6. Uncertainty Reduction: This is associated with reducing the impact of uncertainty which are brought by unsudden changes in processes and procedures of human resource management in the organization.
Or
(b) Explain in detail the process of job analysis in a large business organization.
Ans: Meaning and Definition Job analysis:
The process of studying and collecting informations relating to the operations and responsibilities of a specific job. The immediate product of this analysis are job description and job specification. It analyze the content & characteristics of the job and requirements/ qualifications needed to perform those jobs.
According to Michael L. Jucius, “Job analysis refers to the process of studying the operations, duties and organizational aspects of jobs in order to derive specifications or as they called by some, job descriptions.”
According to DeCenzo and P. Robbins, “A job analysis is a systematic exploration of the activities within a job. It is a basic technical procedure, one that is used to define the duties, responsibilities, and accountabilities of a job.”
Thus, job analysis involves the process of identifying the nature of a job (job description) and the qualities of the likely job holder (job specification).
Process/Steps in Job Analysis
The various steps of job analysis are given below:
1. Determine the Use of the Job Analysis Information: Start by identifying the use to which the information will be put, since this will determine the type of data you collect and the technique you use to collect them.
2. Collection of Background Information: According to Terry, “The make-up of a job, its relation to other jobs, and its requirements for competent performance are essential information needed for a job evaluation. This information can be had by reviewing available background information.
3. Selection of Jobs for Analysis: To do job analysis is a costly and time consuming process. It is hence, necessary to select a representative sample of jobs for purposes of analysis. Priorities of various jobs can also be determined. A job may be selected because it has undergone undocumented changes in job content. The request for analysis of a job may originate with the employee, supervisor, or a manager.
When the employee requests an analysis it is usually because new job demands have not been reflected in changes in wages. Employee’s salaries are, in part, based upon the nature of the work that they perform. Some organizations establish a time cycle for the analysis of each job. For example: A job analysis may be required for all jobs every three years. New jobs must also be subjected to analysis.
4. Collection of Job Analysis Data: Job data on features of the job, requited employee qualification and requirements, should be collected either form the employees who actually perform a job; or from other employees (such as foremen or supervisors) who watch the workers doing a job and there by acquire knowledge about it; or from the outside persons, known as the trade job analysis who are appointed to watch employees performing a job. The duties of such a trade job analyst are (i) to outline the complete scope of a job and to consider all the physical and mental activities involved in determining what the worker does.; (ii) find out why a worker does a job; and for this purpose he studies why each task is essential for the overall result; and (iii) the skill factor which may be needed in the worker to differentiate between jobs and establish the extent of the difficulty of any job.
5. Processing the Information: Once job analysis information has been collected, the next step is to place it in a form that will make it useful to those charged with the various personnel functions. Several issues arise with respect to this. First, how much detail is needed? Second, can the job analysis information be expressed in quantitative terms? These must be considered properly.
6. Preparing Job Descriptions and Job Classifications: Job information which has been collected must be processed to prepare the job description form. It is a statement showing full details of the activities of the job. Separate job description forms may be used for various activities in the job and may be compiled later on. The job analysis is made with the help of these description forms. These forms may be used as reference for the future.
7. Developing Job Specifications: Job specifications are also prepared on the basis of information collected. It is a statement of minimum acceptable qualities of the person to be placed on the job. It specifies the standard by which the qualities of the person are measured. Job analyst prepares such statement taking into consideration the skills required in performing the job properly. Such statement is used in selecting a person matching with the job.
5. (a) Describe the internal and external sources of recruitment.
Ans: Sources of Recruitment:
The finding out where suitable candidates are available and informing them about the openings in the organization is the most important aspect of recruitment process. The candidates may be available inside the organization as well outsider it. Recruitment sources can be described as: internal and external sources.
A. Internal Sources: Internal source is one of the important sources of recruitment the employees already working in the organization may be more suitable for higher jobs than those recruited from outside. The present employees may help in the recruitment of new persons also internal sources are discussed as follows:
Transfers: Transfer involves shifting of persons from present jobs to other similar places. These don't involve any change in rank, responsibility and prestige. The numbers of persons don't increase with transfer but vacant posts may be attended to.
Promotions: Promotions refers to shifting of persons to positions carrying better prestige, higher responsibilities and more salaries. The higher positions falling vacant may be filled up from within the organization. A promotion doesn't increase the number of persons in the organization. A person going to get a higher position will vacate his present position. Promotion avenues motivate employees to improve their performance so that they get promotions to higher position.
Present Employees: The present employees of an enterprise may be informed about likely vacant position. The employees recommend their relations or persons intimately known to them. Management is relieved of botheration for looking out prospective candidates. The persons recommended by the employees will be suitable for the job because they know the needs & requirement of various positions. The existing employees take full responsibility for those recommended by them and try to ensure their proper behavior and performance. This method of recruiting employees is suitable for lower position only. It may create nepotism and favoritism. The workers may be employees on the basis of their recommendations and not suitability.
Merits of Internal Sources: The following are the merits of internal sources of recruitment:
a) It creates a sense of security among employees when they are assured that they would be preferred in filling up vacancies.
b) It improves the morale of employees, for they are assured of the fact that they would be preferred over outsiders when vacancies occur.
c) It promotes loyalty and commitment among employees due to sense of job security and opportunities for advancement.
d) The employer is in a better position to evaluate those presently employed than outside candidates.
e) This is because the company maintains a record of the progress, experience and service of its employees.
f) Time and costs of training will be low because employees remain familiar with the organisation and its policies.
g) Relations with trade unions remain good. Labour turnover is reduced.
h) As the persons in the employment of the company are fully aware of, and well acquainted wit, its policies and know its operating procedures, they require little training, and the chances are that they would stay longer in the employment of the organisation than a new outsider would.
i) It encourages self-development among the employees. It encourages good individuals who are ambitious.
j) It encourages stability from continuity of employment.
k) It can also act as a training device for developing middle and top-level managers.
Demerits of Internal Sources: Internal sources of recruitment have certain disadvantages as follows -
a) Recruitment of internals leads to inbreeding and discourages new blood with new ideas from entering into the organization.
b) It is possible that internal sources ultimately dry up and hence it may be difficult to find suitable persons from within the organization.
c) In case of certain jobs such as advertising, style, designing, basic research etc recruitment from within is not desirable.
d) As promotion is based on seniority, the danger is that really capable hands may not be chosen. The likes and dislikes of the management may also play an important role in the selection of personnel.
e) Since the learner does not know more than the lecturer, no innovations worth the name can be made. Therefore, on jobs which require original thinking, this practice is not followed.
f) Generally for middle level managers internal source is rarely used, however for promoting blue collar workers to white collar jobs internal source is more desirable.
B. External Sources: Every enterprise has to use external sources for recruitment to higher positions when existing employees are not suitable. More person are needed when expansion are undertaken. External methods are discussed as follows.
Advertisement: Advertisement is the best method of recruiting persons for higher and experienced jobs. The advertisements are given in local or national press, trade or professional journals. The requirements of jobs are given in the advertisement. The prospective candidates evaluate themselves against the requirement of jobs before sending their applications. Management gets a wider range of candidates for selection. The flood of applications may create difficulties in the process.
Employment Exchanges: Employment Exchanges run by the government are also a good source of recruitment. Unemployed persons get themselves registered with these exchanges. The vacancies may be notified with the exchanges, whenever there is a need. The exchange supplies a list of candidates fulfilling required qualification. Exchanges are a suitable source of recruitment for filling unskilled, semi-skilled, skilled and operative posts.
Education Institutions: The jobs in trade and industry are becoming technical and complex. These jobs require certain amount of educational and technical qualifications. The employers maintain a close liaison with universities and technical institutions. The students are spotted during the course of their studies. Junior level, executives or managerial may be recruited in this way.
Unsolicited Applicants: Persons in search of employment may contact employers through telephone, by post or in person. Generally, employers with good reputation get unsolicited applications. If an opening is there or is likely to be there then these persons are considered for such jobs. Personnel department may maintain a record of unsolicited applications. When jobs suitable for these persons are available these persons are available these are considered for employment.
Casual Callers: Management may appoint persons who casually call on them for meeting short-term demands. This will avoid following a regular procedure of selection. These persons are appointed for short periods only. They need not be paid retrenchment or layoff allowance. This method of recruitment is economical because management does not incur a liability in pensions, insurance and fringe benefits.
Labour Contractors: It is quite common to engage contractors for the supply of labour. When workers are required for short period and are hired without going through the full procedure of selection etc.., contractors maintain regular contracts with works at their places and also bring them to the cities at their own expense. The persons hired under this system are generally unskilled workers.
Labour Unions: Labour unions are one of the sources of external recruitment. The job seekers are required to register with labour unions, & the labour unions are require to supply the names of persons for filing the vacancies. This method may encourage good co-operation between business firms and labour unions, active participation of persons in labour unions, the development of leadership qualities in workers, etc.,
Consulting Agencies: Consulting agencies are one of the important sources of recruitment, especially for big companies. Consulting agencies are specialised agencies which recruit people on behalf of their clients. They invite application for jobs specified by their clients from job seekers through advertisements, screen the application, interview the candidates and select the suitable candidate. They do these services for their clients for some Fees.
Educational Institutions: Universities, Colleges & Management institute are also one of the sources of recruitment of personnel, particularly for the posts of Scientists, Engineers & Management specialist. They have there own employment bureaus to help business organizations in recruiting the students for various jobs.
Present Employees: Present Employees are also one of the sources of recruitment of personnel. The present employees of the concern are asked by the management to recommend suitable persons for employment in the concern.
Advantages of External Recruitment: External sources of recruitment are suitable for the following reasons:
a) It will help in bringing new ideas, better techniques and improved methods to the organisation.
b) The cost of employees will be minimised because candidates selected in this method will be placed in the minimum pay scale.
c) The existing employees will also broaden their personality.
d) The entry of qualitative persons from outside will be in the interest of the organisation in the long run.
e) The suitable candidates with skill, talent, knowledge are available from external sources.
f) The entry of new persons with varied expansion and talent will help in human resource mix.
Disadvantages of External Sources:
a) Orientation and training are required as the employees remain unfamiliar with the organisation.
b) It is more expensive and time-consuming. Detailed screening is necessary as very little is known about the candidate.
c) If new entrant fails to adjust himself to the working in the enterprise, it means yet more expenditure on looking for his replacement.
d) Motivation, morale and loyalty of existing staff are affected, if higher level jobs are filled from external sources. It becomes a source of heart-burning and demoralisation among existing employees.
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(b) Discuss the importance of scientific selection in the management of a company.
Ans: Meaning of Scientific Recruitment and Selection: Meaning of Selection: Human resource selection is the process of choosing qualified individuals who are available to fill positions in an organization. In the ideal personnel situation, selection involves choosing the best applicant to fill a position. Selection is the process of choosing people by obtaining and assessing information about the applicants with a view to matching these with the job requirements. It involves a careful screening and testing of candidates who have put in their applications for any job in the enterprise. It is the process of choosing the most suitable persons out of all the applicants. The purpose of selection is to pick up the right person for every job.
It can be conceptualised in terms of either choosing the fit candidates, or rejecting the unfit candidates, or a combination of both. Selection involves both because it picks up the fits and rejects the unfits. In fact, in Indian context, there are more candidates who are rejected than those who are selected in most of the selection processes. Therefore, sometimes, it is called a negative process in contrast to positive programme of recruitment.
According to Dale Yoder, “Selection is the process in which candidates for employment are divided into two classes-those who are to be offered employment and those who are not”.
According to Thomas Stone, “Selection is the process of differentiating between applicants in order to identify (and hire) those with a greater likelihood of success in a job”.
In the words of Michael Jucius, “The selection procedure is the system of functions and devices adopted in a given company for the purpose of ascertaining whether or not candidates possess the qualifications called for by a specific job or for progression through a series of jobs.”
According to Keith Davis, “Selection is the process by which an organisation chooses from a list of screened applicants, the person or persons who best meet the selection criteria for the position available.”
Thus, the selection process is a tool in the hands of management to differentiate between the qualified and unqualified applicants by applying various techniques such as interviews, tests etc. The cost incurred in recruiting and selecting any new employee is expensive.
Importance of Scientific Recruitment and Selection
The scientific selection policy is given importance due to these reasons:-
a) Right job for the Right Person : Scientific selection policy helps to find the right man for the right job. It also helps to find the right job for the right person.
b) Reduces Labour Absenteeism and Turnover : Labour absenteeism refers to the employees remaining absent from regular duty (work). Labour turnover refers to the employees leaving the company. Scientific selection policy helps to reduce both labour absenteeism and labour turnover. This is because it helps to select the right candidates for the right jobs. These candidates get job satisfaction, and they have a high morale. So they will not remain absent, and they will not leave the company.
c) Reduces wastages, damages and accidents : The scientific selection policy results in the selection of qualified and interested employees. These employees will be very careful while handling machines and materials. This will reduce wastage, damages and accidents.
d) Reduces Training and Supervision Costs : The scientific selection policy results in the selection of qualified and interested employees. These employees require less training and supervision. This will reduce the training and supervision cost.
e) Improves Goodwill of the Company : Scientific selection policy results in the selection of interested employees. These employees will maintain very good relations with the shareholders, customers, public etc. This will improve the goodwill of the company.
f) High Morale : The employees who are selected through scientific selection policy do get job satisfaction. This will increase their morale. High morale brings many benefits to the company.
g) High Efficiency and Productivity : The employees selected through this policy will perform their jobs very efficiently. This will increase the productivity & profitability of the organisation.
6. (a) Write a detailed note on career development and management.
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(b) Briefly discuss the steps involved in conducting a training programme in a systematic way.
Ans: Steps in Training process.
The steps of Training Process are as under:
a) Organizational Objectives and Strategies: The first step in the training process is an organization in the assessment of its objectives and strategies. What business are we in? At what level of quality do we wish to provide this product or service? Where do we what to be in the future? Its only after answering these and other related questions that the organization must assess the strength and weakness of its human resources.
b) Needs Assessment: Needs assessment diagnoses present problems and future challenge to be met through training and development. Needs assessment occurs at two levels i.e. group level and individual level, an individual obviously needs training when his or her performance falls short or standards that is when there is performance deficiency. Inadequate in performance may be due to lack of skills or knowledge or any other problem
c) Training and Development Objectives: Once training needs are assessed, training and development goals must be established. Without clearly-set goals, it is not possible to design a training and development programme and after it has been implemented, there will be no way of measuring its effectiveness. Goals must be tangible, verifying and measurable. This is easy where skilled training is involved.
d) Conducting Training Activities: Where is the training going to be conducted and how?
Ø At the job itself.
Ø On site but not the job for example in a training room in the company.
Ø Off site such as a university, college classroom hotel, etc.
e) Designing training and development program: Who are the trainees? Who are the trainers? What methods and techniques? What is the level of training? What are the principles of learning? Where to conduct the program?
f) Implementation of the training programme: Program implementation involves actions on the following lines :
Ø Deciding the location and organizing training and other facilities.
Ø Scheduling the training programme.
Ø Conducting the programme.
Ø Monitoring the progress of the trainees.
g) Evaluation of the Results: The last stage in the training and development process is the evaluation of the results. Since huge sums of money are spent on training and development, how far the programme has been useful must be judge/determined. Evaluation helps determine the results of the training and development programme. In the practice, however organizations either overlook or lack facilities for evaluation.
7. (a) What do you understand by compensation management? Explain its objectives.
Ans: Meaning and Definition of Compensation
In layman’s language the word ‘compensation’ means something, such as money, given or received as payment for service. The word compensation may be defined as money received in the performance of work, plus the many kinds of benefits and services that organization provides their employee. It refers to wide range of financial and non-financial rewards to employee for their service rendered to the organization. It is paid in the form of wages, salaries , special allowance and employee benefits such as paid vacation, insurance, maternity leaves, free travel facility , retirement benefits etc.
According to Wendell French,” Compensation is a comprehensive term which includes wages, salaries and all other allowance and benefits.”
Wages are the remuneration paid for skilled, semi-skilled and unskilled operative workforce. Salary is the remuneration of those employees who provides mental labour to the employer such as supervisor, office staff, executive etc wages are paid on daily or hourly basis where as salary is paid on monthly basis.
Objectives of Compensation Management
The compensation paid to employees is agency consideration. Each party to agency tries to fix this consideration in its own favor. The employers want to pay as little as possible to keep their costs low. Employees want to get as high as possible. The compensation management tries to strike a balance between these two with following specific objectives:
1. Attracting and Retaining Personnel: From organisation’s point of view, the compensation management aims at attracting and retaining right personnel in the organisation. In the Indian corporate scene, there is no dearth of personnel at operative levels but the problems come at the managerial and technical levels particularly for growing companies. Not only they require persons who are well qualified but they are also retained in the organisation. In the present day context, managerial turnover is a big problem particularly in high knowledge-based organisations.
2. Motivating Personnel: Compensation management aims at motivating personnel for higher productivity. Monetary compensation has its own limitations in motivating people for superior performance. Alfie Kohn (an American author and lecturer who has explored a number of topics in education, parenting, and human behavior.) has gone to the extent of arguing that corporate incentive plans not only fail to work as intended but also undermine the objectives they intend to achieve. He argues that this is due to inadequate psychological assumptions on which reward systems are based. His conclusions are as follows:
a. Rewards punish people-their use confirms that someone else is in control of the employee.
b. Rewards rupture relationships-they create competition where teamwork and collaboration are desired.
c. Rewards ignore reasons-they relieve managers from the urgent need to explore why an employee is effective or ineffective.
d. Rewards discourage risk taking-employees tend to do exactly what is required to earn the reward, and not any more.
e. Rewards undermine interest-they distract both manager and the employee from consideration of intrinsic motivation.
f. Notwithstanding these arguments, compensation management can be designed to motivate people through monetary compensation to some extent.
3. Optimizing Cost of Compensation: Compensation management aims at optimizing cost of compensation by establishing some kind of linkage with performance and compensation. It is not necessary that higher level of wages and salaries will bring higher performance automatically but depends on the kind of linkage that is established between performance and wages and salaries. Compensation management tries to attempt at this.
4. Consistency in Compensation: Compensation management tries to achieve consistency-both internal and external-in compensating employees. Internal consistency involves payment on the basis of criticality of jobs and employees’ performance on jobs. Thus, higher compensation is attached to higher-level jobs. Similarly, higher compensation is attached to higher performers in the same job. Level of jobs within an organisation is determined by job evaluation. External consistency involves similar compensation for a job in all organisations. Though there are many factors involved in the determination of wage and salary structure for a job in an organisation which may result into some kind of disparity in the compensation of a particular job as compared to other organisations, compensation management tries to reduce this disparity.
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(b) Explain the importance of employee’s health and safety measures.