2021 Human Resource Management HRM Solved Paper, B.Com 3rd Sem CBCS Pattern, Dibrugarh University

Dibrugarh University B. Com 3rd Sem Solved Question Papers
Human Resource Management Question Paper’ 2021
(Held in January/February, 2022)
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) HRD develops capabilities and competencies only at the individual level. (Write True or False)                 1

Ans: False, it develops competence at individual, inter-personal, group and organisational level to meet organisational goal.

b) Mention one of the causes of industrial disputes.                         1

Ans: 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.

c) HRD is an interdisciplinary concept. (Write True or False)          1

Ans: True

d) What do you mean by ‘induction’?                      1

Ans: Induction or Orientation is a process through which a new employee is introduced to the organisation. It is the process wherein an employee is made to feel comfortable and at home in the organisation.

e) State two points of distinction between job description and job specification.                  2

Ans: 1. Job description is a written record of the duties, responsibilities and requirements of a particular job. On the other hand, the job specification states the minimum acceptable qualifications that the incumbent must possess to perform the job successfully.

2. It is a statement describing the job in such terms as its title, location, duties, working conditions and hazards. The job specification identifies the knowledge, skills, and abilities needed to do the job effectively.

f) Mention one of the basic advantages of making seniority as the basis of promotion.                      1

Ans:  It develops a sense of loyalty among the employees and the morale of the employees will be higher.

g) Promotion means decrease in rank and demotion means increase in rank. (Write True or False) 1

Ans: False

2. Write short notes on any four of the following (within 150 words each):          4x4=16

a) HR policies.

Ans: A policy is a predetermined course of action established to guide the performance of work towards accepted objectives. It is a type of a standing plan that serves to guide subordinates in the execution of their tasks. Human resource policies are statements of human resource objectives of an organisation and provide a board framework within which decisions on human resource matters can be made without reference to higher authorities. Human resource policies lay down the criteria for decision-making in the field of human resource management.

These policies define the intentions of the organisation in the area of human resource management. According to Yoder, “Human resource or labour or industrial relations policy provides guidelines for a wide variety of employment relationships in the organisation. These guidelines identify the organisation’s intentions in recruitment, selection, promotion, development, compensation, motivation and otherwise leading and directing people in the working organisation. Human resource policies serve as a road map for managers.”1 In the words of Calhoon, “Human resource policies constitute guides to actions. They furnish the general standards or bases on which decisions are reached. Their genesis lies in an organisation’s values, philosophy, concepts and principles.”2

The need for human resource policies arises basically from the fact that in order to achieve the human resource and overall objectives of the organisation, a corporate thinking is required which will guide decision-making at operating level. Human resource policies provide the basis for uniformity and consistency. Sound human resource policies set the tone for proper administration of human resource programmes so as to achieve the objectives of the organisation.

b) Importance of Human Resource Planning (HRP)

Ans: 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 an 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.

c) Objectives of Management Development Programmes.

Ans: The programme of executive development aims at achieving following purposes:

a)       To sustain good performance of managers throughout their careers by exploiting their full potential.

b)      To understand economic, technical, and institutional forces in order to solve business problems.

c)       To acquire knowledge about problems of human resources.

d)      To think through problems which may confront the organization now or in the future?

e)      To develop responsible leaders.

f)        To inculcate knowledge of human motivation and human relationships.

g)       To increase proficiency in management techniques such as work study, inventory control, operations research and quality control.

d) Advantages of job evaluation.

Ans: Advantages of Job evaluation

1.    Job evaluation is a logical and objective technique of ranking jobs and thereby removing wages inequities.

2.    It helps in fitting new jobs at their appropriate places in the existing wage structure.

3.    It simplifies wage administration by making wages rates more uniform.

4.    It facilitates job redesign by re-allocating the easy and difficult tasks equally among different jobs.

5.    It reveals jobs which require less or more skilled workers than those already performing these jobs.

e) Fringe benefits.

Ans: Employees are paid several benefits in addition to wages, salary, allowances and bonus. These benefits and services are called ‘fringe benefits’ because these are offered by the employer as a fringe. Employees of the organization are provided several benefits and services by the employer to maintain and promote employee’s favorable attitude towards the work and work environment. It not only increases their morale but also motivate them. These provided benefits and services forms the part of salary and are generally refereed as fringe benefits.

According to D. Belcher, “Fringe benefits are any wage cost not directly connected with the employee’s productive effort, performance, service or sacrifice”.

These are indirect compensation as they are extended condition of employment and are not related to performance directly.

Kinds of Fringe Benefits

The various organizations in India offer fringe benefits that may be categorized as follows:

1) Old Age and Retirement Benefits: These include provident fund schemes, pension schemes, gratuity and medical benefits which are provided to employee after their retirement and during old age as a sense of security about their old age.

2) Workman’s Compensation: These benefits are provided to employee if they are got ignored or die under the working conditions and the sole responsibility is of the employer.

3) Employee Security: Regular wage and salary is given to employee that gives a feeling of security. Other than this compensation is also given if there is lay-off or retrenchment in an organization.


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


3. (a) Explain the meaning of human resource. Examine the role of HR managers in a changing economic scenario. 4+8=12

Ans: Organisations are made up of people and function through people. Without people organisations cannot exist. The resources of men, money, materials and machinery are collected, coordinated and utilised through people. Therefore, people are the most significant resource of any organisation.

According to LF Urwick,” Business houses are made or broken in the long run not by markets or capital, patents or equipment but by men.” Of all the resources manpower is the only resource which does not depreciate, with the passage of time. This resource is called human resource.

Simply human resource represents the people at work. They are the sum-total of the inherent abilities, acquired knowledge and skills as exemplified in the talents and aptitudes of its employees.

Role of Human Resource Manager (HR Manager):

HR also plays significant role in managing finances and managing information systems.  HR manager also plays a vital role. His roles include role of conscience, of a counsellor, a mediator, a company spokesman, a problem solver and a change agent.

1. The Conscience Role: HR manager plays an important role of reminding the management its morals and obligations towards its employees.

2. The Counsellor: An important role of the HR manager is that of a counsellor. Whenever an employee is dissatisfied with the job he approaches the HR manager for counselling and guidance.

An employee can also approach the HR manager for counselling for other problems related to his/her personal life which is likely to influence his performance like, health, children education or marriage, mental and physical problems etc. The HR manager listens to their problems and offers suggestions to solve those problems.

3. The Mediator: In any organisation, there are times when there are differences of opinion and misunderstanding between the management and the employee or between employees themselves. Here, HR manager acts as a mediator, a peace-maker and a communication link between them.

4. As a Specialist: Human resource manager is an expert. As a specialist, he advises the heads of different functional departments on various aspects of human resource management, such as human resource planning, recruitment, selection, orientation, training, appraisal, compensation, etc. With his counsel and suggestions, functional managers can perform these functions successfully. The human resource manager should provide information, suggestions and assistance in such a way that he is considered a source of help rather than a source of threat to line managers. He should earn their confidence and goodwill. Staff assistance is likely to be effective when it is wanted rather than when imposed.

5. The Spokesman: HR manager acts as a spokesperson within the company, as well as are representative of the company.

6. The Change Agent: Change is something always resisted by the employees. HR manager acts as a change agent in order to bring about a change on the existing system or an introduction of a new system.

7. As a Controller: The human resource manager assists line managers in effective implementation of human resource policies and programmes. His advice and service is essential for monitoring and controlling the progress. As an arm of the top management, the human resource manager ensures that the human resource policies and procedures approved and adopted by the management are being consistently carried out in all the departments.

8. The Problem Solver: HR manager acts as a problem solver with respect to the issues that involve human resources management and over all long range organisational planning.

9. As a Housekeeper: The human resource manager looks after the safety, health, welfare, etc. of employees.

10. As a Fire Fighter: In union-management relations, the human resource manager acts as a shock absorber. He is the management’s defence against trade union activists. He acts as a trouble shooter.


(b) Explain the concept of HRIS and its significance in a dynamic global environment.                     4+8=12

Ans: A human resource information system (HRIS) is software that provides a centralized repository of employee master data that the human resource management (HRM) group needs for completing core human resource (core HR) processes.

An HRIS stores, processes and manages employee data, such as names, addresses, national IDs or Social Security numbers, visa or work permit information, and information about dependents. It typically also provides HR functions such as recruiting, applicant tracking, time and attendance management, performance appraisals and benefits administration. It may also feature employee self-service functions, and perhaps even accounting functions.

In some ways, an HRIS can be considered a smart database of employee information. The interaction of the data, the processes that can be performed and the reporting capabilities make the data stored in the system more accessible and usable.

Advantages and Uses of Computerised Human Resource Information System

Human resource information system refers to the system of gathering, classifying, processing, recording and disseminating the information required for efficient and effective management of human resources in an organisation. Need for such a system arises due to several factors. First, large organisations employ a very large number of people. It becomes necessary to employ data based technology for tackling human resource problems. Second, in a geographically dispersed company every office requires timely and accurate information for manpower management. If information is stored in multiple locations, cost and inaccuracy will increase. Third, modern day compensation package is complex consisting of many allowances and deductions. Fourth, an employer has to comply with several labour laws. A computerised information system would store and retrieve data quickly and correctly enabling the employer to comply with statutory requirements. Fifth, with the help of a computerised human resource information system employee records and files can be integrated for fast retrieval, cross referencing and forecasting. The system should be oriented towards decision-making rather than towards record-keeping. Lastly, necessary flexibility for adaptation to changes in environment can be built into a mechanized information system. In the field of human resource management, information system has been limited to payroll preparation, job status and work history, reports of new hires, terminations and insurance payments, Gradually, progressive companies have started applying computerised information systems in the area of collective bargaining, employee manuals, training, performance appraisal, etc. Shows that computer based information systems can be used in almost all the functions of human resource management.

A sound HRIS can offer the following advantages:

(1) Clear definition of goals.

(2) Reduction in the amount and cost of stored human resource data.

(3) Availability of timely and accurate information about human assets.

(4) Development of performance standards for the human resource division.

(5) More meaningful career planning and counselling at all levels.

(6) Individual development through linkage between performance, rewards and job training.

(7) Higher capability to quickly and effectively staff project teams for problem solving.

(8) Implementation of training programmes based on knowledge of organisational needs.

(9) Ability to respond to ever changing statutory and other environment.

(10) High status for the human resource functions due to its capability for strategic planning within the total organisation.

4. (a) What is Job Analysis? Elaborate the process of job analysis.                             3+8=11

Ans: The process of studying and collecting informations relating to the operations and responsibilities of a specific job is called job analysis. 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).

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.

4.       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.

5.       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.

6.       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.

7.       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.

8.       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.


(b) Briefly outline the most commonly used methods of recruiting people.                          11

Ans: Methods or 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:

1.       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.

2.       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.

3.       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.

B. External Sources: Every enterprise has to use external sources for recruitment to higher positions when existing employees are not suitable. More person is needed when expansion is 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 their 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.

5. (a) “Training offers innumerable benefits to both employers and employees.” Discuss.            11

Ans: 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 worker’s 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.


(b) Briefly explain the various methods of training.          11

Ans: Various Methods for Training of operating personnel/factory workers

Training is defined by Wayne Cascio as “training consists of planed programs undertaken to improve employee knowledge, skills, attitude, and social behaviour so that the performance of the organization improves considerably.” There are different methods of training for operating personnel (factory workers). Training these workers becomes important because they handle equipment worth crores of rupees.

1. On the job training method: In this method workers who have to be trained are taken to the factory, divided into groups and one superior is allotted to every group. This superior or supervisor first demonstrates how the equipment must be handled, and then the worker is asked to repeat whatever he has observed in the presence of the supervisor. This method makes it easy for the employee to learn the details about specific equipment. Once the worker studies the first equipment thoroughly the supervisor moves on to the next equipment and so on.

2. Apprenticeship training: In this method both theory and practical session are conducted. The employee is paid a stipend until he completes training. The theory sessions give theoretical information about the plant layout, the different machines, their parts and safety measures etc. The practical sessions give practical training in handling the equipment. The apprentice may or may not be continued on the job after training.

3. Vestibule training: In this method of training an atmosphere which is very similar to the real job atmosphere is created. The surroundings, equipment, noise level will be similar to the real situation. When an employee is trained under such conditions he gets an idea about what the real job situation will be like. Similarly, when he actually starts doing the job he will not feel out of place. This method is used to train pilots and astronauts. In some places graphics are also used to create the artificial surroundings. This method involves heavy investment.

4. Job rotation: In this method the person is transferred from one equipment to the other for a fixed amount of time until he is comfortable with all the equipment’s. At the end of the training the employee becomes comfortable with all the equipment. He is then assigned a specific task.

5. Classroom method: In this method the training is given in the classroom. Video, clippings, slides, charts, diagrams and artificial modules etc. are used to give training.

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) Off the job training method: Off the job training refers to method of training given outside the company. The different methods adopted here are:

1. Classroom method: The classroom method is used when a group of managers have to be trained in theoretical aspects. The training involves using lectures, audio visuals, case study, role play method, group discussions etc. The method is interactive and provides very good results.

2. Simulation: Simulation involves creating atmosphere which is very similar to the original work environment. The method helps to train manager handling stress, taking immediate decisions, handling pressure on the jobs etc. An actual feel of the real job environment is given here.

3. Business games: This method involves providing a market situation to the trainee manager and asking him to provide solutions. If there are many people to be trained they can be divided into groups and each group becomes a separate team and play against each other.

4. Committee: A committee refers to a group of people who are officially appointed to look into a problem and provide solution. Trainee managers are put in the committee to identify how they study a problem and what they learn from it.

6. (a) What do you mean by ‘performance appraisal’? Discuss its significance.                   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.

Need and Importance of Performance Appraisal

Performance is always measured in terms of outcome and not efforts. Performance Appraisal is needed in most of the organizations in order:

(1) To give information about the performance of employees on the job and give ranks on the basis of which decisions regarding salary fixation, demotion, promotion, transfer and confirmation are taken.

(2) To provide information about amount of achievement and behavior of subordinate in their job. This kind of information helps to evaluate the performance of the subordinate, by correcting loopholes in performances and to set new standards of work, if required.

(3) To provide information about an employee’s job-relevant strengths and & weaknesses.

(4) To provide information so as to identify shortage in employee regarding ability, awareness and find out training and developmental needs.

(5) To avoid grievances and in disciplinary activities in the organization.

(6) It is an ongoing process in every large scale organization.

Performance appraisals in an organization provide employees and managers with an opportunity to converse in the areas in which employees do extremely well and those in which employees need improvement. Performance appraisals should be conducted on a frequent basis, and they need not be directly attached to promotion opportunities only. It is important because of several reason s such as:

1. Personal Attention: Performance appraisal evaluation, gives employee to draw personal concern from supervisor and talk about their own strengths and weaknesses.

2. Feedback: Employees on a regular basis get feedback of their performances and issues in which they lack, which needs to be resolved on a regular basis.

3. Career Path: It allows employees and supervisors to converse goals that must be met to grow within the company. This may encompass recognizing skills that must be acquired, areas in which improvement is required, and additional qualification that must be acquired.

4. Employee Accountability: Employees are acquainted that their evaluation will take place on a regular basis and therefore they are accountable for their job performance.

5. Communicate Divisional and Company Goals: It not only communicates employees’ individual goals but provides an opportunity for managers to explain organizational goals and in the manner in which employees can contribute in the achievement of those goals.


(b) How does an effective compensation management programme help an organization to achieve its strategic objectives?  11

Ans: 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 whereas salary is paid on monthly basis.

Objectives of Compensation Management

The basic purpose or objective of establishing sound compensation is to establish and maintain an equitable rewards system. The other aim is the establishment and maintenance of an equitable compensation structure i.e. an optimal balancing of conflicting personnel interest so that the satisfaction of employees and employers is maximised and conflicts minimized, the compensation management is concerned with the financial aspect of employees need, motivation and rewards. A sound compensation structure tries to achieve these objectives:

a) To attract manpower in a competitive market.

b) To control wages and salaries and labour costs by determining rate change and frequency of increment.

c) To maintain satisfaction of employees by exhibiting that remuneration is fair adequate and equitable.

d) To induce and improved performance, money is an effective motivator.

Importance of Compensation Management

a) To Employees:

i. Employees are paid according to requirement of their jobs i.e. highly skilled jobs are paid more compensation than low skilled jobs. This eliminates inequalities.

ii. The chances of favouritism are minimised.

iii. Jobs sequence and lines of promotion are established wherever they are applicable.

iv. Employee’s moral and motivation are increased because of the sound compensation structure.

b) To Employers:

i. They can systematically plan for and control the turnover in the organization.

ii. A sound compensation structure reduces the likelihood of friction and grievance over remunerations.

iii. It enhances an employee morale and motivation because adequate and fairly administrative incentives are basis to his wants and need.

iv. It attracts qualified employees by ensuring and adequate payment for all the jobs.

v. In dealing with a trade union, they can explain the basis of their wages programme because it is based upon a systematic analysis of jobs and wages facts.

7. (a) Give a comprehensive view of workers’ health and safety measures offered in Indian industries. 11

Ans: Employee’s health and safety

Health is the state of well-being. It not only includes physical well-being, but also mental and emotional well-being. It is the responsibility of every employer to provide healthy work environment to his employees. If he is careful about their health, cost of disability payments, replace­ment of employees who are injured or killed could be avoided. Through employee safety and health programs the company can enhance the emotional and physical well-being of the employees.

Employee’s health and safety is needed to:

(a) Improve productivity of employees and the quality of their work. Healthy employees are more productive and give quality perfor­mance.

(b) Protect workers against any health hazard arising out of work conditions.

(c) Preserve physical and mental health of all employees.

(d) Reduce absenteeism, turnover, injuries and accidents.

(e) To improve the confidence of employees in their work environ­ment. Industrial health improves the morale of employees.

Recent years have witnessed rapid increase in the use of sophisticated machinery and plants in the industry. While technical progress in industry has made it possible to eliminate certain physically exact­ing jobs, it has also made work in the industry riskier. Workers’ safety, thus, has assumed more importance in recent times.

There is no doubt that proper pre­cautionary measures coupled with the inculcation of safety consciousness among workers can go a long way in preventing industrial accidents which may result in loss of life and property. An unsafe or unhealthy work environment can affect employees’ ability and motivation to work.

Poor safety and health conditions are likely to endanger fulfilment of the security needs of employees, and hence the importance of regulatory measures by various organizations in different sectors. Safety hazards are those aspects of working conditions which can cause immediate and sometimes violent harm to an employee. Examples of such loses are loss of hearing, eye sight, or body parts; sprains and broken bones; and burns and electric shocks.

Benefits of employee’s health and safety

Accidents cause personal injury or loss of life, damage of property, loss of production, loss of man-hours, and heavy cost in replacement of faulty machines and also loss to workers, employers and to the nation. This is very serious problem to be solved. We can control or reduce the above mentioned losses if we can prevent the accidents. Hence the need of safety is felt. Accident free company shall enjoy the following benefits due to safety:

(a) Controls number of accidents.

(b) Minimizes personal injuries.

(c) Checks the loss of life.

(d) Prevents production loss.

(e) Minimizes damages to property.

(f) Minimizes wage losses to workers.

(g) Ensures proper utilization of resources for production.

(h) Maintains morale of the workers.

(i) Saves costs.

(j) Fulfills legal requirements.


(b) Define the term ‘grievance’. Explain the advantages of having a grievance handling mechanism in an organization. 3+8=11

Ans: Meaning and Definition of Grievance:

A grievance is a sign of employee’s discontent with job and its nature. The employee has got certain aspirations and expectations which he thinks must be fulfilled by the organisation where he is working. When the organisation fails to satisfy the employee needs, he develops a feeling of discontent or dissatisfaction. Thus, grievance is caused due to the difference between the employee expectation and management practices.

According to Keith Davis “any real or imagined feeling of personal injustice which an employee has concerning his employment relationship”.

The International Labour Organisation defines grievance as “a complaint of one or more workers in respect of wages, allowances, conditions of work, and interpretation of service stipulations, covering such areas as overtime, leave, transfer, promotion, seniority, work assignment and termination of services”.

Advantages of a Grievance Procedure

Grievances are natural in any organisation. These should be solved as early possible, otherwise they can create serious problems for the organisation. A systematic procedure should, therefore, be developed to settle grievances. Such a procedure provides the following benefits:

i) It brings grievances into the open so that management can know them and take necessary action to settle them.

ii) It helps in preventing grievances from assuming dangerous proportions. Management can solve a grievance before it becomes a dispute. It is an orderly and expeditious means for redressal of grievances.

iii) It enables the management to know the attitudes and feelings of employee concerning the policies, rules and practices of the organisation. With such knowledge necessary improvements in policies and rules can be made.

iv) It provides the workers a formal opportunity for expressing their fears, anxiety and dissatisfaction. Such release of emotions helps to improve the morale and productivity of employees.

v) It helps to maintain cordial relations in the industry. It brings uniformity in the handling of grievances. It also stimulates confidence in employees and builds a sense of security among them. It enables both the parties to settle the grievances to their mutual satisfaction.

vi) It serves as a check upon arbitrary and biased action on the part of management. Managers know that their actions can be reviewed and challenged and, therefore, become more careful.


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