2020 Human Resource Management HRM Solved Paper, B.Com 3rd Sem CBCS Pattern, Dibrugarh University

Dibrugarh University B. Com 3rd Sem Solved Question Papers
3 SEM TDC HRM (CBCS) C 305
Human Resource Management Question Paper’ 2021
(Held in January/February, 2022)
COMMERCE (Core)
Paper: C-305
Full Marks: 80
Pass Marks: 32
Time: 3 hours
The figures in the margin indicate full marks for the questions

1. Answer the following as directed:

a) State two points of distinction between HRM and HRD.           2

Ans: Differences between Human Resource Management (HRM) and Human Resource Development (HRD)

1.       HRM is a subset of the entire management processes of an organization. HRD is a subset of HRM.

2.       Scope of HRM is wider. Scope of HRD as compared to HRM is narrower.

b) Demotion is a source of recruitment. (Write True or False)     1

Ans: True

c) _____ is the process of stimulating capable applicants for employment. (Fill in the blank) 1

Ans: Recruitment

d) Write the full form of (i) VRS and (ii) HRIS.        2

Ans: VRS: Voluntary Retirement Scheme

HRIS: Human Resource Information System

e) State two points of distinction between recruitment and selection.  2

Ans: Difference between Recruitment and Selection

Meaning

It is the process of searching and Motivating candidates to apply for Job.

It is that process of staffing which rejects the unsuitable candidates and choose the suitable candidates.

Purpose

The basic purpose is to create a large pool of applicants for the jobs.

The basic purpose is to eliminate as many candidates as possible until the most suitable candidates get finalized.

2. Give short accounts on the following (any four):          4×4=16

a) Uses of ‘Job Analysis’.

Ans: Importance/Uses of Job analysis

1.       Achievement of Goals: Weather and Davis have stated, “Jobs are at the core of every organization’s productivity, if they are designed well and done right, the organization makes progress towards its objectives. Otherwise, productivity suffers, profits fall, and the organization is less able to meet the demands of society, customer, employees, and other with a stake in its success.”

2.       Organizational Design: Job analysis will be useful in classifying the jobs and the interrelationships among the jobs. On the basis of information obtained through job analysis, sound decisions regarding hierarchical positions and functional differentiation can be taken and this will improve operational efficiency.

3.       Organization and Manpower Planning: It is helpful in organization planning, for it defines labour in concrete terms and co-ordinates the activities of the work force, and clearly divides duties and responsibilities.

4.       Recruitment and Selection: Job analysis provides you with information on what the job entails and what human requirements are required to carry out these activities. This information is the basis on which you decide what sort of people to recruit and hire.

b) Job Specification.

Ans: Job Specification

The job specification states the minimum acceptable qualifications that the incumbent must possess to perform the job successfully. Based on the information acquired through job analysis, the job specification identifies the knowledge, skills, and abilities needed to do the job effectively.

According to Dale Yoder, “The job specification, as such a summary properly described is thus a specialized job description, emphasizing personnel requirement and designed specially to facilitate selection and placement.”

A Job Specification should include:

a. Physical characteristics, which include health, strength, endurance, age, height, weight, vision, voice, eye, hand and foot co-ordination, motor co- ordination, and colour discrimination.

b. Psychological and social characteristics such as emotional stability, flexibility, decision making ability, analytical view, mental ability, pleasing manners, initiative, conversational ability etc.

c. Mental Characteristics such as general intelligence, memory, judgment, ability to concentrate, foresight etc.

d. Personal Characteristics such as sex, education, family background, job experience, hobbies, extracurricular activities etc.

c) Employee Empowerment.

Ans: In the modern days many organizations make changes in such a way that their individual employees exert more control on their work as compared to their superiors. This individual control of employees is called empowerment which helps the employees to work with enthusiasm, commitment & learn new skills because they are more make normal decisions about their work by themselves & hence enjoy their work.

d) Social Security.

Ans: The concept of social justice is primarily an instrument of social and economic justice. It is essentially related to the high ideals of human dignity and social justice. The social security system of a country consists of its social insurance and social assistance schemes and a clear cat demarcation cannot be made between these two.

According to William Beveridge:  “Social security means the security of an income to take the place of earnings when they are interrupted by unemployment, sickness or accident to provide for the retirement through old age, to provide against loss of support by death of another person and to meet exceptional expenditure connected with birth, death or marriage.

The purpose of social security is to provide an income up to a minimum and also medical treatment to bring the interruption of earnings to an end as soon as possible.”

On the basis of the above mentioned definitions, the following characteristics of social security can be listed:

(1) Social security is an instrument of ensuring social and economic justice.

(2) In a welfare state, social security is an essential part of public policy.

(3) Social security is not static; it is a dynamic concept which changes with the change in social and economic conditions prevailing in a country at a particular point of time.

(4) The basic aim of social security is to provide protection to people of small means against risks or contingencies.

(5) The contingencies which may impair a person’s ability to support himself and his family may include sickness, old age, invalidity, unemployment, death etc.

(6) Social security measures are generally guided by social legislations.

e) Identification of Training Needs.

Ans: Methods of identify training needs

1. Management audit method:

a) Environmental assessment- environmental (political-legal, economic, socio-cultural, technological) changes are identified to determine training needs.

b) Objectives, strategies and structure change- training needs are identified to manage such changes.

2. Task analysis method: Collection and analysis of task related information- performance standards for each task are set- details are found about how tasks are done- training needs are identified for effective task performance. Job description, job specification, job performance standard

3. Performance analysis method

a) Organizational performance method- specifies desired performance standard. Overall performance such as- goal achievement, production performance, quality control, sales performance,cost, absenteeism, labour turnover,accident rates etc. It determines the overall training needs.

b) Employee performance analysis- identifies actual performance on the current job. Performance deficiencies and problem faced by the employees are identified to determine training needs through- employees performance appraisal reviews, career planning discussion, exit interview, performance test etc.

4. Supervisory recommendation method: In this method supervisor identify gap in knowledge and skills and recommend needed training for the employees.

5. Training need survey method: In this method direct questioning is used to gather opinion about training needs through individual survey (each employee), group survey (group of present employees, former employees and supervisors). The result of survey becomes training needs. Competency survey- experts are asked to give opinion on desired competencies to perform the job effectively. This desired competencies determines training needs.

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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? Discuss the basic functions of Human Resource Management.      3+8=11

Ans: 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, and 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.

Functions of HRM

Management of human resources consists of several inter-related functions. These functions are common to all organisations though every organisation may have its own human resource management programme. These functions of human resource management may broadly be classified into two categories, viz.,

(1) managerial functions, and

(2) operating 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, counselling 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.

1.   Procurement Function: It is concerned with securing and employing the right kind and proper number of people required to accomplish the organisational objectives. It consists of the following activities:

(a)  Job Analysis: It is the process of studying in details the operations and responsibilities involved in a job so as to identify the nature and level of human resources required to perform the job effectively. Job descriptions and job specifications are prepared with the help of information provided by job analysis.

(b) Human Resource Planning: It is the process of estimating the present and future manpower requirements of the organisation, preparing inventory of present manpower and formulating action programmes to bridge the gaps in manpower.

(c)  Recruitment: It is the process of searching for required human resource and stimulating them to apply for jobs in the organisation.

(d) Selection: It implies judging the suitability of different candidates for jobs in the organisation and choosing the most appropriate people.

(e) Placement: It means assigning suitable jobs to the selected candidates so as to match employee qualifications with job requirements.

(f)   Induction or Orientation: It involves familiarizing the new employees with the company, the work environment and the existing employees so that the new people feel at home and can start work confidently.

2.   Development Function: Human resource development is the process of improving the knowledge, skills, aptitudes and values of employees so that they can perform the present and future jobs more effectively. This function comprises the following activities:

(a)  Performance and Potential Appraisal: It implies systematic evaluation of employees with respect to their performance on the job and their potential for development.

(b) Training: It is the process by which employees learn knowledge, skills and attitudes to further organisational and personal goals.

(c)  Executive Development: It is the process of developing managerial talent through appropriate programmes.

(d) Career Planning and Development: It involves planning the career of employees and implementing career plans so as to fulfill the career aspirations of people.

3.   Compensation Function: It refers to providing equitable and fair remuneration to employees for their contribution to the attainment of organisational objectives. It consists of the following activities:

(a)  Job Evaluation: It is the process of determining the relative worth of a job.

(b) Wage and Salary Administration: It implies developing and operating a suitable wage and salary programme.

(c)  Bonus: It involves payment of bonus under the Payment of Bonus Act, 1965 as well as non-statutory bonus and other incentives.

4.   Integration Function: It is the process of reconciling the goals of the organisation with those of its members. Integration involves motivating employees through various financial and non-financial incentives, providing job satisfaction, handling employee grievances through formal grievance procedures, collective bargaining, workers’ participation in management, conflict resolution, developing sound human relations, employee counseling, improving quality of work life, etc.

5.   Maintenance Function: It is concerned with protecting and promoting the physical and mental health of employees. For this purpose, several types of fringe benefits such as housing, medical aid, educational facilities, conveyance facilities, etc. are provided to employees. Social security measures like provident fund, pension, gratuity, maternity benefits, injury/disablement allowance, group insurance, etc. are also arranged. Health, safety and welfare measures are designed to preserve the human resources of the organisation. Human resource records and research are also important elements of the maintenance function.

Or

(b) Discuss in brief the evolution of Human Resource Management in our country.        11

Ans: Evolution and Growth of Human Resource management

People – The Principal Resource: The principal resource of any organization is people and managing people is the most important and challenging aspect of an organization. What we call human resource management today, dates back to 1800 B.C., which is evident from the inscriptions of Babylonian code of Hammurabi and Kautilya’s Arthasashtra, which explains in detail the importance of selection, incentives, performance evaluation, quality of a manager and wage rates. So, we understand that the concept of managing people has existed even in the previous eras through ancient literature and philosophy. India, China and Greece have been the origin points of human resource management concepts.

hrm evolution

Evolution of Human Resource Management

Industrial Revolution:

Till, 1930’s, there was no such department called “personnel management” that was considered necessary to cater to the needs and welfare of the labor society. The factory manager was acting as a link between the workers and the management, and most of the time he had to comply with the rules of the management to satisfy them, even if it were against the welfare of the workers. Also proper attention was not given to areas like, worker safety, security and living conditions. Industrial revolution saw mass exodus of workers to urban areas in search of jobs.

Need for employment Department:

Application of science and technology in production made the rich owners even richer; the poor workers were not paid adequately and their life became miserable. Since the owners lost direct contact with the employees, managers came into the picture to take over control of production and administration. Machines ruled the industry and importance of labor got reduced. This condition existed for some time until the advent of new and improved management concepts by people like F.W.Taylor who is considered to be the father of scientific management and B.F.Goodrich who was instrumental in forming the “employment department” which can be considered the fore runner of present human resource department.

Introduction of Scientific Management:

Scientific methods were introduced to make the workers perform the job with ease and perfection. It also saved enormous time and reduced the monotony of work. Job-designs, job-specification, training and development and human relations were given due importance and the owners slowly started realizing the importance of labour. Through 1940’s to 1970’s behavioural approach was applied to professional management, the major architects being Abraham Maslow, Herzberg and Douglas McGregor. This approach suggested managers to modify their leadership styles to suit the type of followers and motivate the workers.

Consequences of World War I and II:

World War I and II also had profound influence on Human resource development. The concepts of role playing, improved training methods, supervision and group discussions came into the fray. The advent of labour unions also established a clear pathway for the workers to claim their rights, ably supported by the labour laws enacted by various governments. International labour organization was formed in 1919 which created sensation in the worker community all over the world. All said and done, empowerment of workers has been achieved only in developed nations where “job security” is no more a great concern because job opportunities are more. But in unorganized and small sectors, employers continue to exploit workers because “supply” is more than “demand”. The responsibility to develop and empower the employees solely lies on the shoulders of human resource department. It should try to address the problems of workers to the management and amicably settle issues relating to wages, welfare, safety and security.

Genesis and Growth of HRM in India

In India, the origin of human resource management can be traced to the concern for welfare of factory workers during the 1920s. The Royal Commission of Labour recommended in 1931 the appointment of labour officers in order to protect the workers from the evils of jobbery and indebtedness, to check corrupt practices in recruitment and selection in India industry, to act as a spokesman of labour and to promote an amicable settlement between the workers and management. Welfare officer was concerned mainly with the recruitment and welfare of workers. After independence, the factories Act, 1948 made it mandatory for factories employing 500 or more workers to appoint welfare officers. The Act also prescribed the qualifications and duties of welfare officers.

The appointment of welfare officers remained by and large symbolic, to satisfy statutory requirements. The welfare officers mainly play a policing and fire-fighting role i.e., assisting the factory in maintaining industrial discipline. They become an appendage to the industrial system. With rising expectations, the welfare needs of the working class increased. As trade union movement gathered momentum in the country, industrial relations became the major task. Two professional bodies, viz., the Indian Institute of Personnel Management (IIPM), Kolkata and the National Institute of Labour Management (NILM), Mumbai were established during the 1950s.

During the 1960s, the personnel function widened beyond the welfare aspect. Three major areas of practice, viz., labour welfare, industrial relation and human resource administration emerged as the complimentary parts of human resource management.

Rapid industrialisation and the opening of public sector during the five year plans accelerated the growth of human resource management and professionalization of management.

In the 1970s, concern for welfare shifted towards higher efficiency. A change in professional values of human resource managers was visible. During the 1980s, due to new technology and other environmental changes, human resource development (HRD) became a major issue. The two professional bodies IIPM and NILM were merged to form National Institute of Personnel Management (NIPM) at Kolkata.

During the 1990s, the overwhelming role of human factor in industry has been realised. Growing awareness about the significance of human side of organisation has led to the development of human resource management (HRM) as a distinct discipline. Focus on human values and a philosophical approach, are likely to provide this discipline the status of a profession.

Thus, the human resource function in India has grown through several stages, e.g., labour welfare, industrial relations, labour administration, personnel management and finally to human resource management and human relations and human resource development. HRM has come a long way from being just a support, hygiene related function to a strategic function.

 

4. (a) Define Human Resource Planning (HRP). Explain the significance of HRP to ensure effective utilization of manpower in a large organization.  3+8=11

Ans: 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.

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 importance of human resource planning is as follows:

1. Future Personnel Needs: Human resource planning is significant because it helps to determine the future personnel needs of the organization. If an organization is facing the problem of either surplus or deficiency in staff strength, then it is the result of the absence of effecting HR planning. All public sector enterprises find themselves overstaffed now as they never had any planning for personnel requirement and went of recruitment spree till late 1980’s. The problem of excess staff has become such a prominent problem that many private sector units are resorting to VRS ‘voluntary retirement scheme’. The excess of labor problem would have been there if the organization had good HRP system. Effective HRP system will also enable the organization to have good succession planning.

2. Part of Strategic Planning: HRP has become an integral part of strategic planning of strategic planning. HRP provides inputs in strategy formulation process in terms of deciding whether the organization has got the right kind of human resources to carry out the given strategy. HRP is also necessary during the implementation stage in the form of deciding to make resource allocation decisions related to organization structure, process and human resources. In some organizations HRP play as significant role as strategic planning and HR issues are perceived as inherent in business management.

3. Creating Highly Talented Personnel: Even though India has a great pool of educated unemployed, it is the discretion of HR manager that will enable the company to recruit the right person with right skills to the organization. Even the existing staff hope the job so frequently that organization face frequent shortage of manpower. Manpower planning in the form of skill development is required to help the organization in dealing with this problem of skilled manpower shortage

4. International Strategies: An international expansion strategy of an organization is facilitated to a great extent by HR planning. The HR department’s ability to fill key jobs with foreign nationals and reassignment of employees from within or across national borders is a major challenge that is being faced by international business. With the growing trend towards global operation, the need for HRP will as well will be the need to integrate HRP more closely with the organizations strategic plans. Without effective HRP and subsequent attention to employee recruitment, selection, placement, development, and career planning, the growing competition for foreign executives may lead to expensive and strategically descriptive turnover among key decision makers.

5. Foundation for Personnel Functions: HRP provides essential information for designing and implementing personnel functions, such as recruitment, selection, training and development, personnel movement like transfers, promotions and layoffs.

6. Increasing Investments in Human Resources: Organizations are making increasing investments in human resource development compelling the increased need for HRP. Organizations are realizing that human assets can increase in value more than the physical assets. An employee who gradually develops his/ her skills and abilities become a valuable asset for the organization. Organizations can make investments in its personnel either through direct training or job assignment and the rupee value of such a trained, flexible, motivated productive workforce is difficult to determine. Top officials have started acknowledging that quality of work force is responsible for both short term and long term performance of the organization.

7. Resistance to Change: Employees are always reluctant whenever they hear about change and even about job rotation. Organizations cannot shift one employee from one department to another without any specific planning. Even for carrying out job rotation (shifting one employee from one department to another) there is a need to plan well ahead and match the skills required and existing skills of the employees.

Or

(b) What is ‘Selection’? Explain in brief the steps involved in selection procedure.           3+8=11

Ans: 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”.

Steps in Selection Process:

Selection is a process of choosing right person for the right job. The selection process consists of a series of steps or techniques as follows:

1.       Job Analysis: The first step in selection process is analyzing the job. Job analysis consists of two parts: Job Description, and Job Specification. Proper job analysis helps to advertise the job properly. Accordingly, the right candidates may apply for the job, thus saving a lot of time and effort of the selectors.

2.       Advertising the Job: The next step is to advertise the job. The job can be advertised through various media. The right details about the job and the candidate must be given in the advertisement.

3.       Initial Screening: The initial screening can be done of the applications and of the applicant. Usually, a junior executive does the screening work. At this stage, the executive may check on the general personality, age, qualifications, family background of the candidate. The candidate may also be informed of salary, working conditions, etc.

4.       Application Blank: It is a prescribed form of the company which helps to obtain information about candidate in respect of social, biographic, academic, work experience, references, etc. The application blank helps to:

Ø  It provides input for the interview.

Ø  It provides basis to reject candidates if they do not meet eligibility criteria, such as experience, qualifications, etc.

5.       Tests: Various tests are conducted to judge the ability and efficiency of the candidates. The type of tests depends upon the nature of job. An important advantage of testing is that it can be administered to a large group of candidates at a time and saves time and cost. The various tests are: (a) Personality test, (b) Intelligence test,   (c) Performance test, (d) Stress test, etc.

6.       Interview: It is face to face exchange of views, ideas and opinions between the candidate and interviewer(s). There are various types of interviews such as:  (a) Panel Interview, (b) Individual Interview, (c) Group Interview, (d) Stress Interview, (e) Exit Interview.

7.       Reference Check: A candidate may be asked to provide references from those who are willing to supply or confirm about the applicant’s past life, character and experience. Reference check helps to know the personal character and family background of the candidate. It also helps to guard against possible false information supplied by candidate.

8.       Medical Check : Medical examination of the candidates is undertaken before they join the firm in order to:

a)       Find out whether the candidate is physically fit to carry out duties and responsibilities effectively,

b)      Ensure the health and safety of other employees,

c)       Find out whether the candidate is sensitive to certain work place such as in a chemical factory.

9.       Final Interview: Before making a job offer, the candidates may be subjected to one more oral interview to find out their interest in the job and their expectations. At this stage, salary and other perks may be negotiated.

10.   Job Offer: This is the most crucial and final step in selection process. A wrong selection of a candidate may make the company to suffer for a good number of years and the loss is incalculable. Company should make a very important decision to offer right job to the right person.

5. (a) What do you mean by ‘Training’? Briefly outline the steps involved in designing a training programme in a systematic way. 3+8=11

Ans: Training refers to the imparting of specific skill, abilities and knowledge to  employee. System and practices get outdated due to new discoveries in technology, including technical, managerial and behavioral aspects. In this context training enhances the knowledge, skills and attitudes of employees to increase efficiency and effectiveness on the prsent job as well as expected future job.

Training is defined by Wayne Cascio as “training consists of planed programs undertaken to improve employee knowledge, skills, attitude, and social behavior so that the performance of the organization improves considerably.”

Training is normally viewed as a short process. It is applied to technical staff, lower, middle, senior level management. When applied to lower and middle management staff it is called as training and for senior level it is called managerial development program/executive development program/development program.

Steps in designing training programme

 design training

Designing a training programme is very important part of human resource management. Following are the steps involved in designing a training programme:

1)  Identification of training needs: The main cause of identification of training needs is the technological changes that are taking place. For example, computers are now days are used in all the offices which require training the employees. Except technological changes poor performance of workers which result in low production requires systematic training. Training needs can be identified through following types of analysis.

a)  Organizational analysis: it is the systematic study of organizational objectives, resources, its utilization, growth potential and climate. It involves following elements:

i) Analysis of objectives: all the objectives of the organization whether long-term or short-term should be analyzed properly. It is the responsibility of the management to check which kind of training programme is required to achieve these objectives.

ii) Climate analysis: organizational climate shows the attitude of organizational members. It helps in checking whether the environment in different departments is conducive or not and where there is the need of training programme to improve the climate of the organization.

iii)  Resource utilization analysis: it should be checked that whether the physical and human resources have been utilized properly or not otherwise there is the need of training to utilize them properly.

b)  Task analysis: it is analyzing the job systematically. To identify the job contents, knowledge, skill, aptitude required to perform the job. In task analysis focus is on the job. It basically studies the various types of skills and training required to perform the job.

c)   Manpower analysis: the quality or type of manpower the firm required should be checked properly. To achieve the proper quality standards specific training needs should be determined on the basis of capability of present workers to learn the new skills.

2)   Setting the training objectives: after identification of training needs the next step is setting the training objectives. The aim of any training programme is to increase the organizational effectiveness. As each training programme must have specific objective like increase productivity, improved quality, higher the morale of employees, growth of employees, better human resource planning etc.

3)   Organization of training programme: as every training programme include the trainees, trainers, training period, training material so all these should be organized properly.

i) Selection of the trainees: it is the first step of organization of training programme. The trainee should be selected properly. They should be trained for the kind of the job they like. Careful selection of the trainees helps in effectiveness of training programme.

ii) Preparation of instructor: instructor I the important person in the training programme. Qualified instructor may be obtained from inside the organization or from the outside. He must have all the qualities of good trainer because he has to give training to other people.

iii) Determination of training period: the time duration of training depends upon the type of skill required. For the training of clerk training of a week is enough while for any other position it may require more or less training time.

iv) Training methods: the on the job training and off the job training has been already discussed. So the choice of training methods depends upon the objective of the training programme.

4) Evaluation of training: at the end it is very important to evaluate the effectiveness of training programme. As how much the employees have learnt from the training programme. It will help in modifying the future training programme.

Or

(b) What is ‘career development’? Explain the process of career development programme in a large organization with a diverse workforce. 3+8=11

Ans: Career development involves managing career either within or between organizations. It also includes learning new skills, and making improvements to help you in your career. Career development is an ongoing, lifelong process to help you learn and achieve more in your career. Whether we are looking at making a career change, or moving up within a company, planning our own career development will help you succeed. By creating a personal career development plan, we can set goals and objectives for our own personal career growth. Career planning is a lifelong process, which includes choosing an occupation, getting a job, growing in our job, possibly changing careers, and eventually retiring. The Career Planning Site offers coverage of all these areas.

Activities involved in Career Development

Career development is essential for implementing career plans. It consists of activities undertaken by the individual employees and the organisation to meet career aspirations and job requirements. The most important requirement of career development is that every employee must accept his/her responsibility for development. Career development involves the following activities:

1.   Career Need Assessment: Career needs of employees can be judged by evaluating their aptitudes, abilities and potential. Many employees may not be aware of what they want to become. The organisation should assist employees in assessing their career needs and in identifying their career goals. Life planning work-books can be used to help employees develop and clarify their career goals. Formal assessment workshops may be conducted by specialists. In these workshops, executives explore their strengths and weaknesses and develop plans for career growth. Psychological tests, depth interviews and simulation exercises may be used for exploring potential and developing future career goals for executives.

2.   Career Opportunities: Career opportunities that can be met should be identified through job analysis. Job description, job specification and job redesign reveal lines of advancement for employees. The available career opportunities are then published in a booklet form. Such a booklet will provide necessary information. On the basis of such information employees can plan their own career movement and progression.

3.   Need-Opportunity Alignment: In the next stage of career development, employee needs are aligned with available career opportunities. The organisation can design appropriate development programmes to help employees integrate their development needs with organisational opportunities. Some of these programmes are as follows:

(a)      Individualized Techniques: Special assignment, understudy, supervisory coaching, sabbaticals, planned job rotation, and job enrichment can be used to develop potential of employees.

(b)      Performance Appraisal: An effective appraisal system can provide an objective assessment of current performance and future potential of employees. Performance feedback helps employees in understanding and developing their potential.

(c)       Management by Objective: Under this system, employees are encouraged to set personal development goals and develop action plans for achieving them. Efforts are made through continuous self-monitoring to integrate the individual goals with the organisational goals. Management by objectives is thus a strategy for planned change.

(d)      Career Counselling: Supervisors or professional experts may provide career guidance to assist employees understand their strengths and weaknesses and to appreciate the career opportunities available in the organisation. It can help employees remove unrealistic expectations, set realistic career goals and formulate concrete action plans to achieve the goals.

4.   Monitoring Career Moves: It is necessary to maintain a record of career movements of employees and to monitor their progress towards the predetermined career goals. This will enable the human resource department to identify discrepancies and to adopt corrective measures at the right time. In case career opportunities are not available for some employees, they may be assisted in finding suitable openings outside the organisation.

A career development programme can be made effective by:

(a)      Creating awareness about individual strengths and weaknesses.

(b)      Developing appreciation of organisational constraints.

(c)       Making employees believe that their superiors care for their development.

(d)      Developing appropriate career plans.

(e)      Providing support systems to give a fair and equal opportunity for all to move within and among different job families.

6. (a) Define ‘Performance Appraisal’ and discuss the various techniques of appraising performance.     3+8=11

Ans: Performance Appraisal is a systematic way of judging the relative worth of an employee while carrying out his work in an organization. It also helps recognize those employees who are performing their tasks well and also- who are not performing their tasks properly and the reasons for such (poor) performance.

According to Flippo, a prominent personality in the field of Human resources, “performance appraisal is the systematic, periodic and an impartial rating of an employee’s excellence in the matters pertaining to his present job and his potential for a better job.”

In the words of Yoder, “Performance appraisal refers to all formal procedures used in working organizations to evaluate personalities and contributions and potential of group members.” Thus performance appraisal is a formal programme in an organization which is concerned with not only the contributions of the members who form part of the organization, but also aims at spotting the potential of the people.”

According to International Labour Organization, “A regular and continuous evaluation of the quality, quantity and style of the performance along with the assessment of the factors influencing the performance and behaviour of an individual is called as performance appraisal.”

In short, we can say that performance appraisal is expected to result in an assessment of: development potential of the employees, training needs for the employees; capabilities of employees being placed in higher posts, behaviour and obedience of the employees; and the need of the organization to evolve a control mechanism.

Traditional and Modern Methods of Performance Appraisal

Performance appraisal methods are categorized in two ways traditional and modern methods. Each organization adopts a different method of performance appraisal according to the need of organization. In small organization, it may be on an informal basis where personal opinion of a superior about his subordinates may consider for appraisal.

Traditional Methods

1. Ranking Method: It is the oldest and simplest method of performance appraisal in which employees’ are ranked on certain criteria such as trait or characteristic. The employee is ranked from highest to lowest or from worst to best in an organization. Thus if there are seven employees to be ranked then there will be seven ranks from 1 to 7.

2. Paired Comparison: In method is comparatively simpler as compared to ranking method. In this method, the evaluator ranks employees by comparing one employee with all other employees in the group. The rater is given slips where, each slip has a pair of names, the rater puts a tick mark next those employees whom he considers to be the better of the two. This employee is compared number of times so as to determine the final ranking.

3. Grading Method: In this method, certain categories are defined well in advance and employees are put in particular category depending on their traits and characteristics. Such categories may be defined as outstanding, good, average, poor, very poor, or may be in terms of alphabet like A, B, C, D, etc. where A may indicate the best and D indicating the worst. This type of grading method is applied during Semester pattern of examinations. One of the major limitations of this method is that the rater may rate many employees on the better side of their performance.

4. Forced Distribution Method: This method was evolved to abolish the trend of rating most of the employees at a higher end of the scale. The fundamental assumption in this method is that employees’ performance level conforms to a normal statistical distribution. For example, 10 per cent employees may be rated as excellent, 40 per cent as above average, 20 per cent as average, 10 per cent below average, and 20 per cent as poor. It eliminates or minimizes the favoritism of rating many employees on a higher side. It is simple and easy method to appraise employees. It becomes difficult when the rater has to explain why an employee is placed in a particular grouping as compared to others.

Modern Methods

1. Management by Objectives (MB0): The concept of ‘Management by Objectives’ (MBO) was coined by Peter Drucker in 1954. It is a process where the employees and the superiors come together to identify some goals which are common to them, the employees set their own goals to be achieved, the benchmark is taken as the criteria for measuring their performances and their involvement is there in deciding the course of action to be followed.

The basic nature of MBO is participative, setting their goals, selecting a course of actions to achieve goals and then taking decision. The most important aspect of MBO is measuring the actual performances of the employee with the standards set by them. It is also said to be a process that integrates organizational objectives into individual objectives.

2. Behaviorally Anchored Rating Scales: This method is a combination of traditional rating scales and critical incidents methods. It consists of preset critical areas of job performance or sets of behavioral statements which describes the important job performance qualities as good or bad (for e.g. the qualities like inter personal relationships, flexibility and consistency, job knowledge etc.). These statements are developed from critical incidents.

These behavioral examples are then again translated into appropriate performance dimensions. Those that are selected into the dimension are retained. The final groups of behavior incidents are then scaled numerically to a level of performance that is perceived to represent. A rater must indicate which behavior on each scale best describes an employee’s performance. The results of the above processes are behavioral descriptions, such as anticipate, plan, executes, solves immediate problems, carries out orders, and handles urgent situation situations.

3. Assessment Centers: It is a method which was first implemented in German Army in 1930. With the passage of time industrial houses and business started using this method. This is a system of assessment where individual employee is assessed by many experts by using different technique of performance appraisal. The techniques which may be used are role playing, case studies, simulation exercises, transactional analysis etc.

In this method employees from different departments are brought together for an assignment which they are supposed to perform in a group, as if they are working for a higher post or promoted. Each employee is ranked by the observer on the basis of merit. The basic purpose behind assessment is to recognize whether a particular employee can be promoted, or is there any need for training or development.

4. 360 Degree Performance Appraisals: This method is also known as ‘multi-rater feedback’, it is the appraisal in a wider perspective where the comment about the employees’ performance comes from all the possible sources that are directly or indirectly related with the employee on his job.

In 360-degree performance appraisal an employee can be appraised by his peers, managers (i.e. superior), subordinates, team members, customers, suppliers/ vendors - anyone who comes into direct or indirect contact with the employee and can provide necessary information or feedback regarding performance of the employee the “on-the-job”.

The four major component of 360-degree performance appraisal are

1. Employees Self-Appraisal

2. Appraisal by Superior

3. Appraisal by Subordinate

4. Peer Appraisal.

Or

(b) Briefly discuss the various methods of wage payment and incentive plans.   11

Ans: Methods of Wages Payment

The methods of remuneration can be classified into:

a)       Time Rate System

b)      Pieced Rate System

c)       Incentive Schemes

a)       Time Rate System: In this system, a worker is paid on the basis of attendance for the day or according to the hours of the day, regardless of the output. This system is also known as time work, day work, day age rate or day rate. The wage rate of the day worker may be fixed on hourly, daily, weekly, fortnightly, or monthly basis depending on the practice followed in the concern. There are two variants of this system, each differing only in so far as the fixation of the time rate is concerned. They are:

1.       Measured Day work or Graduated Time Rate

2.       Differential Time Rate

Graduated Time Rate:   Under this method wages are paid at time rates which vary according to

a.       Merit-rating of the workers, or

b.       Changes in the cost of living index.

It the cost of living goes up, the wages also go up proportionately, and vice versa. Thus the works get the real wages. Similarly, the workers having higher merit rating get higher wages, and the workers with lower rating get lower wages.

Differential Time Rate: Workers are paid rate accounting to their individual efficiency. They are paid normal rate up to a certain percentage of efficiency and the rate increases in steps for efficiency slabs beyond the standard. As the efficiency is measured in terms of output, this method does not fall strictly under the area of time rate system.

b)      Piece Rate System: The payment of wages under this system is based upon the out turn of the worker. The rate is fixed per piece of work and the worker is paid according to the pieces of work completed or the volume of work done by him, irrespective of the time taken by him in completing that work. A workman is free to earn as much as his ability, energy, or skill would allow to him to produce. The piece rate System can be classified into:

a.       Straight Piece Rate.

b.       Differential Piece Rate.

Straight Piece Rates: It is a simple method of making payment at a fixed rate per unit for the units manufactured. Earnings = Number of units X Rate per unit.

Differential Piece Rates: Under this system, efficient workers are paid wages at a lower rate. A definite standard of efficiency is set for each job and for efficiency below or above the standard different piece rates are paid according to different levels of efficiency. The following two methods of wage payment are studied under this system:

a.       Taylor Differential Piece-rate Method, and

b.       Merrick Differential Piece rate Method

Taylor Differential Piece-Rate: F.W. Taylor thought to improve the efficiency of workers by suggesting two rates of payment of wages: A higher rate to the workers who product equal to or more than the standard fixed for production during the day (120%), and a lower rate to the workers who do not achieve the standard (80%).

Merrick Differential Piece-rate: In the Taylor Method, the effect on the wages is quite sharp in the marginal cases. To remove this defect Merrick suggested three piece rates for a job as follows:

Percentage of Standard Output Payment under Merrick Method

Upton 83%                                                          Normal piece rate

Above 83% and up to 100%                          110% of normal piece rate

Above 100%                                                       120% of normal piece rate

c)       Incentive Schemes: Under this heading, we study the following methods:

a.       Halsey Premium Scheme;

b.       Rowan Premium Scheme;

The Halsey premium plan: This system is known as fifty-fifty plan. It was introduced by F.A. Halsey, an American engineer. Under this method a standard time is fixed for the performance of each job; worker is paid for actual time taken at an hourly rate plus 50% of time saved as bonus. Total wages under this scheme is calculated with the help of the following formula:

Earnings = Time taken x Rate per hour + 50% (Time saved x Rate per hour)

Rowan System or Rowan Plan: The scheme was introduced in 1901 by David Rowan of Glasgow, England. The wages are calculated on the basis of hours worked whereas the ‘bonus is that proportion of the wages of time taken which the time saved bears to the standard time allowed’. Total wages under this scheme is calculated with the help of the following formula:

Earnings = Time taken x Rate per hour + Time saved / Standard time (Time taken x Rate per hour)

7. (a) Discuss the various measures to protect employee’s health in industries.                                 12

Ans: Measures to protect employee’s health and safety in industries

Factories Act contains certain rules to protect employee’s health and safety in industries. Sections 11-20 of the Act contain various provisions to ensure that the conditions under which the workers have to work in factories do not have an adverse effect on their health. These provisions are as discussed below:

(i) Cleanliness (Sec. 11): According to Sec. 11, the factory shall be kept clean and free from foul smell arising from any drain, toilet or any other nuisance. Dirt and refuse shall be removed daily by sweeping or washing the floor, benches, staircases and passages. The floor of every work room shall be cleaned at least once a week by washing, using disinfectants where necessary or by some other effective method.

Where a floor becomes wet during the manufacturing process, effective means of drainage shall be provided for. All inside walls and partitions, all ceilings or tops of the rooms and all walls, sides and tops of passages and staircases shall be kept white washed, colour washed or painted as the case may be from time to time as per provisions of the Act.

All doors and window frames and other wooden or metallic framework and shutters shall be kept painted or varnished and the painting or varnishing shall be carried out at least once in every five years.

(ii) Disposal of Wastes and Effluents: According to Sec. 12, effective arrangement shall be made in every factory for the disposal of wastes arising due to the manufacturing process carried on therein, so as to make them harmless. The State Government may make rules prescribing the arrangements to be made in this regard.

(iii) Ventilation and Temperature: According to Sec. 13, every factory must provide for adequate ventilation in every work room by the circulation of fresh air. It will also ensure in the work room such a temperature as will secure to workers therein reasonable conditions of comfort and prevent injury to health.

Thus, the walls and roofs of the work rooms shall be of such material and design as are helpful to keep the temperature reasonably low. The State Government may prescribe a standard of adequate ventilation and reasonable temperature and make rules providing for the keeping of thermometers in specified places and the adoption of methods which will keep the temperature low.

(iv) Dust and Fume: According to Sec. 14, effective arrangements must be made in every factory for the prevention of the inhalation or accumulation of dust or fume given off by any manufacturing process in any work room which may be injurious to the health of the workers.

If any exhaust appliance is necessary for this purpose it shall be installed as near as possible to the point of origin of the dust, fume or other impurity. No internal combustion engine which is stationary shall be operated unless its exhaust is conducted into the open air.

(v) Artificial Humidification: According to Sec. 15, in respect of all the factories, in which the humidity of air is artificially increased, the State Government may make rules regarding the permissible standards of humidity, tests for determining humidity and methods to be adopted for securing adequate ventilation and cooling of the air in the work rooms.

The water used for humidification shall be taken from a public supply or other source of drinking water and must be purified before actual use. The inspector of factories may also specify measures in this regard which should be carried out before the specified date.

(vi) Overcrowding: According to Sec. 16, no room in any factory shall be overcrowded to an extent which is injurious to the health of the workers employed therein. At least 9×9 cubic metres of space per worker shall be provided in a factory which was in existence on the date of commencement of this Act.

However, in factories built after the commencement of this Act, at least 14.2 cubic metres of space per worker shall be provided. In determining the space, no account shall be taken of any space which is more than 4.2 metres above the level of the floor of the room.

The chief inspector may, however by order in writing specify the maximum number of workers who may be employed in a particular work room in compliance with the provision of this section if he is satisfied that such an order does not harm the health of the workers employed therein.

(vii) Lighting: According to Sec. 17, there shall be sufficient and suitable lighting arrangement, natural or artificial or both, in every part of a factory where workers are working or passing through. Under this provision, all glazed windows and sky lights used for the lighting of the workroom shall be kept clean or both the inner and the outer sides to allow free flow of light.

Effective provision shall be made for the prevention of glare, either directly from a source of light or by reflection. The formation of shadows that, causes strain on the eyes or risk of accident to any worker shall also be prevented. The State Government may prescribe standards of sufficient and suitable lighting for factories.

(viii) Drinking Water: According to Sec. 18, in every factory, effective arrangements shall be made to provide sufficient and pure drinking water to all the workers employed therein. The water points should be conveniently situated and properly maintained.

All such points shall be legibly marked “Drinking Water” in a language understood by majority of the workers employed in the factory. No such point shall be situated within six meters, of any washing place, urinal, latrine, spittoon, open drain etc. In a factory where more than 250 workers are employed, provision shall be made for cool drinking water during hot weathers.

Or

(b) Define the ‘Industrial Dispute’. Explain the important causes of industrial disputes.                 3+9=12

Ans: Industrial Disputes: Industrial disputes are conflicts, disorder or unrest arising between workers and employers on any ground. Such disputes finally result in strikes, lockouts and mass refusal of employees to work in the organization until the dispute is resolved. So it can be concluded that Industrial Disputes harm both parties employees and employers and are always against the interest of both employees and the employers.

Definitions of Industrial Disputes

According to Industrial Dispute Act – 1947 “Industrial Dispute is any dispute or difference between the employees and employers or between employers and workmen or between workmen and workmen, which is concerned with the employment or terms of employment or with the conditions of labour of any person.”

Industrial Disputes are frequently clouded by a sense of exploitation, distrust and discontent between employee and employers. In simple language, the disputes between employers and employees on any Industrial matters are known as industrial disputes. The term ‘dispute’ is characterized by the following factors:

1. Dispute mainly relate to the strife between employers and their employees.

2. There must actually be a difference.

3. Its work related or industrial matter issues.

4. Disputes must be raised by group or class of workmen.

5. Disputes between one or two workmen and their employers are not an industrial dispute.

Causes of Disputes

1) Wages and Allowances: The most important cause for disputes relates to wages. The demand for increase in wages and allowances is the most important cause of industrial disputes. The demand for wages and allowances has never been fully met because of inflation and high cost of living. High inflation results in increased cost of living resulting in never ending demands from unions. There are some more economic reasons who are the cause of industrial disputes are bonus, working conditions and working hours, modernization and automation and demand for other facilities.

2) Union Rivalry: Most organizations have multiple unions. Multiplicity of unions leads to interunion rivalries. If one union agrees to a wage settlement, another union will oppose it.

3) Political Interference: Major trade unions are affiliated to political parties. Political affiliated is not peculiar to our country alone. Even a cursory assessment of labour movements around the world would show that trade unions are, by their very nature, political and that politicization of the rule rather than the exception. Everywhere trade unions have been compelled to engage in political action to obtain enough freedom from legal restraint to exercise their main industrial functions.

4) Managerial Causes: These causes include autocratic managerial attitude and defective labour policies. In this includes failures of recognize the trade union, defective recruitment policies, irregular layoff and retrenchment, defiance of agreements and codes, defective leadership, weak trade unions.

5) Unfair labour Practices: The Industrial Dispute Act, 1947 is more specific about the unfair labour practices. According to the Act, the following constitute unfair labour practices:

Ø  To interfere with, restrain from or coerce workmen in the exercise of their right to organize, form, join or assist a trade union or to engage in concerted activities for the purpose of collective bargaining or other mutual aid or protection.

Ø  Threatening workmen with discharge if they join a trade union

Ø  Threatening a lockout or closure, if a trade union is organised

Ø  Granting wage increases to workmen at crucial periods of the trade union organization, with a view to undermine the efforts of the trade union at organization.

Ø  To, dominate, interfere with or contribute support, financial or otherwise, to any trade union.

6) To encourage or discourage membership in any trade union by discriminating against workmen.

7) To discharge or dismiss workmen.

8) To indulge in acts of force or violence.

9) To refuse to bargaining collectively, in good faith with the recognized trade unions.

10) To insist upon individuals workmen, who are on a legal strike, to sign a good conduct bond as a precondition to allowing them to resume work?

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