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HRM NOVEMBER 2009 Section I

Q. 1) Explain the concepts in brief:- (10 marks) a) Industrial Relations Ans. According to ILO, industrial relations comprise relationships between the State on the one hand and the employers and employees organizations on the other hand and the relationship among the occupational organizations themselves. The basic objective about industrial relations is to bring about good and healthy relations between the employers and employees. The other objectives include i) Avoiding industrial conflicts and developing harmonious labour management relations ii) safeguarding the interests of labour and management through mutual understanding and goodwill among all sections connected with production process. Iii) introducing the concept of industrial democracy at the level of industrial unit.

b) Personnel Manual Ans. A document/booklet which contains the details of an organization is called personnel policy manual. It is a comprehensive document which serves as a guide to employee supervisors managers etc. They can refer to it as & when required dealing with personnel problems or else. A personnel policy manual is a companion volume to the employee handbook. The personnel policy manual is written primarily for the information & guidance of managers. They are supposed to know the personnel policy & administrative decisions relating to such policies.

c) Assessment Centre Ans. This method of appraising was first applied in the German Army in 1930. Later, business and industrial houses started using this method. This is not a technique of performance appraisal by itself. In fact it is a system or organisation, where assessment of several individuals is done by

various experts by using various techniques. It includes techniques like in basket, role playing, case studies, stimulation exercises, structured in sight, transactional analysis etc. d) Downsizing Ans. Downsizing necessarily means reducing work force to an optimal level depending upon the business conditions and organizational needs. It is said that an organization should be rightly staffed ie. It should not be overstaffed and or understaffed. There are broadly following methods used to downsize the workforce as mentioned below. i) Retrenchment, ii) Layoffs, iii) VRS

e) ESOPs Ans. Under the scheme of Employee Stock Option, employees including managers of a company are offered an option to buy shares (stock) of the company at concessional rates. The amount of stock an employee can buy is limited and is dependent upon his pay / wage level. Generally employees are restricted from selling the stock for some time. This restriction period is called as lock-in-period. The cost of shares is wholly deducted from the pay. Stock option plans are useful for both the employees and the company because: (1) Employees have an extra financial interest in the success of the company. Employees will gain when the company performs well and the stock market price of its shares goes up. (2) Employees have to invest some of their money to buy stock options. (3) Employees can build up a sizeable capital for themselves through regular purchase of stock options.

Section II
Q. 3) What is Human Resource Management? What are its objectives? (10 marks) Ans. Definition 1 Integration HRM is a series of integrated decisions that form the employment relationships; their quality contributes to the ability of the organizations and the employees to achieve their objectives. Definition 2 Influencing HRM is concerned with the people dimensions in management. Since every organization is made up of people, acquiring their services, developing their skills, motivating them to higher levels of performance and ensuring that they continue to maintain their commitment to the organization are essential to achieving organizational objectives. This is true, regardless of the type of the organization government, business, education, health, recreational, or social action. Definition 3 Applicability HRM planning, organizing, directing and controlling of the procurement, development, compensation, integration, maintenance and separation of human resources to the end that individual, organizational and social objectives are accomplished. MEANING OF HRM: HRM is management function that helps managers to recruit, select, train and develop members for an organization. Obviously HRM is concerned with the peoples dimensions in organizations. HRM refers to set of programs, functions, and activities designed and carried out Core elements of HRM

People: Organizations mean people. It is the people who staff and manage organizations. Management: HRM involves application of management functions and principles for acquisitioning, developing, maintaining and remunerating employees in organizations. Integration & Consistency: Decisions regarding people must be integrated and consistent. Influence: Decisions must influence the effectiveness of organization resulting into betterment of services to customers in the form of high quality products supplied at reasonable cost. Applicability: HRM principles are applicable to business as well as non-business organizations too, such as education, health, recreation and the like.

OBJECTIVES OF HRM: 1. Societal Objectives: To be ethically and socially responsible to the needs and challenges of the society while minimizing the negative impact of such demands upon the organization. 2. Organizational Objectives: To recognize the role of HRM in bringing about organizational effectiveness. HRM is only means to achieve to assist the organization with its primary objectives. 3. Functional Objectives: To maintain departments contribution and level of services at a level appropriate to the organizations needs. 4. Personal Objectives: To assist employees in achieving their personal goals, at least in so far as these goals enhance the individuals contribution to the organization. This is necessary to maintain employee performance and satisfaction for the purpose of maintaining, retaining and motivating the employees in the organization. FUNCTIONS OF HRM ALONG WITH OBJECTIVES HRM Objectives Supporting HRM Functions Social Objectives Legal Compliance Benefits Union Management Relations Human Resource Planning Employee Relations Recruitment & Selection

Organizational Objectives -

Training & Development Performance Appraisals Placement & Orientation Employee Assessment Performance Appraisals Placement & Orientation Employee Assessment Training & Development Performance Appraisals Placement & Orientation Compensation Employee Assessment Managerial Functions of HRM 1. Planning: Plan and research about wage trends, labor market conditions, union demands and other personnel benefits. Forecasting manpower needs etc. 2. Organizing: Organizing manpower and material resources by creating authorities and responsibilities for the achievement of organizational goals and objectives. 3. Staffing: Recruitment & Selection 4. Directing: Issuance of orders and instructions, providing guidance and motivation of employees to follow the path laid-down. 5. Controlling: Regulating personnel activities and policies according to plans. Observations and comparisons of deviations Operational Functions of HRM 1. 2. 3. 4. Procurement: Planning, Recruitment and Selection, Induction and Placement Development: Training, Development, Career planning and counseling. Compensation: Wage and Salary determination and administration Integration: Integration of human resources with organization.

Functional Objectives-

Personal Objectives -

5. Maintenance: Sustaining and improving working conditions, retentions, employee communication 6. Separations: Managing separations caused by resignations, terminations, lay offs, death, medical sickness etc.

SCOPE OF HRM: From Entry to the Exit of an employee in the organization Scope of HRM can be described based on the following activities of HRM. Based on these activities we can summarize the scope of HRM into 7 different categories as mentioned below after the activities. Lets check out both of them. HRM Activities 1. 2. 3. 4. 5. 6. 7. 8. 9. HR Planning Job Analysis Job Design Recruitment & Selection Orientation & Placement Training & Development Performance Appraisals Job Evaluation Employee and Executive Remuneration

10. Motivation 11. Communication 12. Welfare 13. Safety & Health 14. Industrial Relations 7 Categories of Scope of HRM 1. Introduction to HRM 2. Employee Hiring

3. 4. 5. 6. 7.

Employee and Executive Remuneration Employee Motivation Employee Maintenance Industrial Relations Prospects of HRM

ROLE OF HRM 1. Advisory Role: HRM advises management on the solutions to any problems affecting people, personnel policies and procedures. a.Personnel Policies: Organization Structure, Social Responsibility, Employment Terms & Conditions, Compensation, Career & Promotion, Training & Development and Industrial Relations.b.Personnel Procedures: Relating to manpower planning procedures, recruitment and selection procedures, and employment procedures, training procedures, management development procedures, performance appraisal procedures, compensation procedures, industrial relations procedures and health and safety procedures. 2. Functional Role: The personnel function interprets and helps to communicate personnel policies. It provides guidance to managers, which will ensure that agreed policies are implemented. 3.Service Role: Personnel function provides services that need to be carried out by full time specialists. These services constitute the main activities carried out by personnel departments and involve the implementation of the policies and procedures described above.

Q. 4) Define the term Job Evaluation. Explain the process of Job evaluation. (10 marks) Ans. Job evaluation deals with money and work. It determines the relative worth or money value of jobs. The International Labour Organisation defined job evaluation as an attempt to determine and compare demands which the normal performance of a particular job makes on normal workers without taking into account the individual abilities or performance of the workers concerned. Wendell L. French defined job evaluation as a process of determining the relative worth of the various job within the organisation, so that different wages may be paid to jobs of different worth. Job evaluation is defined as the overall activity of involving an orderly, systematic method and procedure of ranking, grading and weighing of jobs to determine the value of a specific job in relation to other jobs. British Institute of Management (1970)

defined job evaluation as, the process of analysing and assessing the content of jobs, in order to place them in an acceptable rank order which can then be used as a basis for a remuneration system. Job evaluation, therefore, is simply a technique designed to assist in the development of new pay structures by defining relatives between jobs on a consistent and systematic basis. Thus, job evaluation may be defined as a process of determining the relative worth of jobs, ranking and grading them by comparing the duties, responsibilities like skill, knowledge of a job with other jobs with a view to fix compensation payable to the concerned job holder. Job Evaluation involves determination of relative worth of each job for the purpose of establishing wage and salary differentials. Relative worth is determined mainly on the basis of job description and job specification only. Job Evaluation helps to determine wages and salary grades for all jobs. Employees need to be compensated depending on the grades of jobs which they occupy. Remuneration also involves fringe benefits, bonus and other benefits. Clearly remuneration must be based on the relative worth of each job. Ignoring this basic principle results in inequitable compensation. A perception of inequity is a sure way of de-motivating an employee. Job evaluation is a process of analyzing and assessing the various jobs systematically to ascertain their relative worth in an organization. Jobs are evaluated on the basis of content, placed in order of importance. This establishes Job Hierarchies, which is a purpose of fixation of satisfactory wage differentials among various jobs. Jobs are ranked (not jobholders) Objectives of Job EvaluationThe objective of job evaluation is 1.to provide a standard procedure for fixing salary job evaluation aims to provide a standard procedure for fixing salary of employees doing a particular job and belonging to a particular level in the organization . This is required so that the employee is remunerated according to his capabilities and therefore feels satisfied on the job 2. to determine the rate of pay: Job evaluation determines how much to pay the employee according to his efforts in the organization . the rate of pay is decided by looking into various factors on the job . 3. to ensure that wages and salaries are paid according to the qualification and work Job evaluation recognizes the importance of qualification of the employee and the efforts put in by him on the job and decides the salary based on these factors. This

ensures that the employees are judged on similar factors and there is no bias. 4. to decide salary using scientific methods of evaluation: The job evaluation methods are scientific in nature, i.e they have been decided after looking into the issues concerned with a scientific approach. Thus it is obvious that the results too will be very much appropriate. Job evaluation is not based on personal bias or personal choice. 5. Involves a fair study of the job factors to avoid ambiguity Job evaluation studies the job factors in a fair and just manner so that ambiguity can be avoided and the factors for judging the job are very clear and accurate. This gives more credibility to the entire job evaluation processScope of Job Evaluation The job evaluation is done for the purpose of wage and salary differentials, demand for and supply of labor, ability to pay, industrial parity, collective bargaining and the like. Process of Job Evaluation: 1. Defining objectives of job evaluation a. Identify jobs to be evaluated (Benchmark jobs or all jobs) b. Who should evaluate job? c. What training do the evaluators need? d. How much time involved? e. What are the criteria for evaluation? f. Methods of evaluation to be used 2. Wage Survey 3. Employee Classification 4. Establishing wage and salary differentials. Methods of Job Evaluation Analytical Methods Point Ranking Methods: Different factors are selected for different jobs with accompanying differences in degrees and points. Factor Comparison Method: The important factors are selected which can be assumed to be common to all jobs. Each of these factors are then ranked with other jobs. The worth of the job is then taken by adding together all the point values. Non-Analytical Methods Ranking Method: Jobs are ranked on the basis of its title or contents. Job is not broken down into factors etc.

Job Grading Method: It is based on the job as a whole and the differentiation is made on the basis of job classes and grades. In this method it is important to form a grade description to cover discernible differences in skills, responsibilities and other characteristics. Pitfalls of Job Evaluation: Encourages employees on how to advance in position when there may be limited opportunities for enhancement as a result of downsizing. It promotes internal focus instead of customer orientation Not suitable for forward looking organizations, which has trimmed multiple job titles into two or three broad jobs.

Q. 5) What is the meaning of Induction? Explain the steps in Induction Programme. (10 marks) Ans. MeaningInduction or orientation is the task of introducing the new employees to the organisation and its policies, procedures and rules. At FMC and its subsidiaries, all the new employees are given induction training program so that they will become familiar to their working conditions and also the employees in the particular unit. This is given by the respective departments. All the queries of the new employees are answered during this induction program.

The induction programme consists of the following: Organisation 1. Companys history 2. Employees title and department 3. Executives of the company 4. Probationary period 5. Policy and rules 6. Codes of conduct 7. Safety measures Employee benefits 1. Salary 2. Holidays (festival and national) 3. Training 4. Counselling 5. Insurance, retirement policies and other benefits About the job 1. Tasks 2. Job location 3. Safety measures 4. Job objectives 5. Shifts Introductions 1. To department head 2. To co- workers 3. To trainers

Orientation/ Induction ProgrammeA firm needs to make four strategic choices before designing its orientation programme. They arei) ii) iii) iv) Formal or informal Individual or collective Serial or disjunctive Investiture or divestiture i) ii) iii) iv) Formal ---- Informal Individual -- Collective Serial --- Disjunctive Investiture -- Divestiture

i) Formal or Informal In informal orientation, new hires are directly put on the jobs and they are expected to acclimatize themselves with the work and the organization. In contrast, orientation can be formal too. In formal orientation, the management has a structured programme which is executed when new employees join the organization. The choice between formal and informal orientation will depend on the managements goals. The more formal the programme, the greater the likelihood that the new hire will acquire a known set of standards. That is, the new member is more likely to think and act like an executive, a management trainee, or a management professor. But an informal programme is desirable to maintain an individual differences. Innovative ideas to solve organizational problems and healthy questioning of the status quo are likely to be generated by a person who has been inducted informally. ii) Individual or CollectiveAnother choice to be made by the management is whether the new hires should be inducted individually or in groups. The individual approach is likely to develop far less homogeneous views than collective orientation. Individual orientation is more likely to preserve individual differences and perspectives. Orienting each person separately is an expensive and timeconsuming process.

Collective orientation of the new hires solves the problems stated above. Most large organizations tend to have the collective orientation approach. But small firms, which have fewer new appointees to socialize, frequently use the individual approach. Individual socialization is popular even with large firms when they hire executives whose number is small. iii) Serial or DisjunctiveOrientation becomes serial when an experienced employee inducts a new hire. The experienced employee acts as a tutor and model for the new hire. When new hires do not have predecessors available to guide them or to model their behavior upon, the orientation becomes disjunctive. Each option has its own advantages and pitfall. Serial orientation maintains traditions and customs. Consistent use of this strategy will ensure a minimum amount of change within the firm over time. Further, if the experienced employee is frustrated and apathetic towards work and the organization, it is likely that he or she would pass on the same to the new hire. iv) Investiture or DivestitureInvestiture orientation seeks to ratify the usefulness of the characteristics that the person brings to the new job. Most high-level appointments follow this approach. The final strategic choice relates to the need for maintaining or dismantling of the new hires identity. Investiture orientation seeks to ratify the usefulness of the characteristics that the person brings to the new job. Most high-level appointments follow this approach, because a person is appointed as an executive on the basis of what he or she can bring to the organization. The new hires are given freedom to select their office furnishings and subordinates and to make other decisions that will reflect on their performance.

Q. 6)Participative management results in improved performance. Justify. (10 marks) Ans. The concept of Workers Participation Management is considered as a mechanism where Workers have a say in the decision making process of an enterprise. The concept crystallizes the Concept of industrial democracy and indicates an attempt on the part of an employer to build his Employees into a team which works towards the realization of a common objective. It is a mental and Emotional involvement of a person in a group situation which encourages him to contribute to goals and share responsibilities in them. The main objective of WPM in management include To promote increased productivity for the advantage of the organization, workers and society at large. To provide a better understanding to employees about their role and place in the process of attainment of organizational goals. To satisfy the workers social and esteem needs

To strengthen labour management co-operation and thus maintaining industrial peace and harmony.

To develop social education for effective solidarity among the working community and for tapping latent human resources. An ideological point of view to develop self management in industry To build the most dynamic human resource To build the nation through entrepreneurship and economic development.

Forms of WPM include works committees, Joint Management councils, Joint Councils and Shop Councils. Importance: Unique motivational power and a great psychological value. Peace and harmony between workers and management. Workers get to see how their actions would contribute to the overall growth of the company. They tend to view the decisions as `their own and are more enthusiastic in their implementation. Participation makes them more responsible. o They become more willing to take initiative and come out with cost-saving suggestions and growth-oriented ideas. Scope and ways of participation: One view is that workers or the trade unions should, as equal partners, sit with the management and make joint managerial decisions. The other view is that workers should only be given an opportunity, through their representatives, to influence managerial decisions at various levels. In practice, the participation of workers can take place by one or all the methods listed below: o Board level participation o Ownership participation o Complete control o Staff or work councils o Joint councils and committees o Collective Bargaining o Job enlargement and enrichment o Suggestion schemes o Quality circles

o Empowered teams o TQM o Financial participation Participation at the Board level: This would be the highest form of industrial democracy. The workers representative on the Board can play a useful role in safeguarding the interests of workers. He or she can serve as a guide and a control element. o He or she can prevail upon top management not to take measures that would be unpopular with the employees. o He or she can guide the Board members on matters of investment in employee benefit schemes like housing, and so forth. The Government of India took the initiative and appointed workers representatives on the Board of Hindustan Antibiotics (Pune), HMT (Bangalore), and even nationalized banks. The Tatas, DCM, and a few others have adopted this practice. Problems associated with this method: o Focus of workers representatives is different from the focus of the remaining members of the Board. o Communication and subsequently relations between the workers representative and the workers suffers after the former assumes directorship. He or she tends to become alienated from the workers. o As a result, he or she may be less effective with the other members of the Board in dealing with employee matters. o Because of the differences in the cultural and educational backgrounds, and differences in behaviour and manners, such an employees representative may feel inferior to the other members, and he or she may feel suffocated. Hence, his or her role as a director may not be satisfying for either the workers or the management. o Such representatives of workers on the Board, places them in a minority. And the decisions of the Board are arrived at on the basis of the majority vote. Participation through ownership: This involves making the workers shareholders of the company by inducing them to buy equity shares. o In many cases, advances and financial assistance in the form of easy repayment options are

extended to enable employees to buy equity shares. Examples of this method are available in the manufacturing as well as the service sector. Advantage: o Makes the workers committed to the job and to the organization. Drawback: o Effect on participation is limited because ownership and management are two different things. Participation through complete control: Workers acquire complete control of the management through elected boards. The system of self-management in Yugoslavia is based on this concept. Self-management gives complete control to workers to manage directly all aspects of industries through their representatives. Advantages: o Ensures identification of the workers with their organization. o Industrial disputes disappear when workers develop loyalty to the organization. o Trade unions welcome this type of participation. Conclusion: Complete control by workers is not an answer to the problem of participation because the workers do not evince interest in management decisions. Participation through Staff and Works Councils: Staff councils or works councils are bodies on which the representation is entirely of the employees. There may be one council for the entire organization or a hierarchy of councils. The employees of the respective sections elect the members of the councils. Such councils play a varied role. o Their role ranges from seeking information on the managements intentions to a full share in decision-making. Such councils have not enjoyed too much of success because trade union leaders fear the erosion of their power and prestige if such workers bodies were to prevail.

Participation through Joint Councils and Committees: Joint councils are bodies comprising representatives of employers and employees. o This method sees a very loose form of participation, as these councils are mostly consultative bodies.

Work committees are a legal requirement in industrial establishments employing 100 or more workers. o Such committees discuss a wide range of topics connected to labour welfare. o Examples of such committees are welfare committee, safety committee, etc. o Such committees have not proven to be too effective in promoting industrial democracy, increasing productivity and reducing labour unrest. Participation through Collective Bargaining: Through the process of CB, management and workers may reach collective agreement regarding rules for the formulation and termination of the contract of employment, as well as conditions of service in an establishment. Even though these agreements are not legally binding, they do have some force. For CB to work, the workers and the employers representatives need to bargain in the right spirit. But in practice, while bargaining, each party tries to take advantage of the other. This process of CB cannot be called WPM in its strongest sense as in reality; CB is based on the crude concept of exercising power for the benefit of one party. o WPM, on the other hand, brings both the parties together and develops appropriate mutual understanding and brings about a mature responsible relationship. Participation through Job Enlargement and Job Enrichment: Excessive job specialization that is seen as a by-product of mass production in industries, leads to boredom and associated problems in employees. Two methods of job designing job enlargement and job enrichment are seen as methods of addressing the problems. o Job enlargement means expanding the job content adding task elements horizontally. o Job enrichment means adding `motivators to the job to make it more rewarding. This is WPM in that it offers freedom and scope to the workers to use their judgment. But this form of participation is very basic as it provides only limited freedom to a worker concerning the method of performing his/her job. The worker has no say in other vital issues of concern to him issues such as job and income security, welfare schemes and other policy decisions. Participation through Suggestion Schemes: Employees views are invited and reward is given for the best suggestion.

With this scheme, the employees interest in the problems of the organization is aroused and maintained. Progressive managements increasingly use the suggestion schemes. Suggestions can come from various levels. The ideas could range from changes in inspection procedures to design changes, process simplification, paper-work reduction and the like. o Out of various suggestions, those accepted could provide marginal to substantial benefits to the company. The rewards given to the employees are in line with the benefits derived from the suggestions. Participation through Quality Circles: Concept originated in Japan in the early 1960s and has now spread all over the world. A QC consists of seven to ten people from the same work area who meet regularly to define, analyze, and solve quality and related problems in their area. Training in problem-solving techniques is provided to the members. QCs are said to provide quick, concrete, and impressive results when correctly implemented. Advantages: o Employees become involved in decision-making, acquire communication and analytical skills and improve efficiency of the work place. o Organization gets to enjoy higher savings-to-cost ratios. o Chances of QC members to get promotions are enhanced. The Indian Scenario: o Tried by BHEL, Mahindra and Mahindra, Godrej and Boyce among others. o Experienced mixed results: M&M (jeep division) with 76 QCs has experienced favourable results. Technical problems got solved. Workers got to get out of their daily routine and do something challenging. Trade unions look at it as: A way of overburdening workers, and An attempt to undermine their role. These circles require a lot of time and commitment on the part of members for regular meetings, analysis, brainstorming, etc. Most QCs have a definite life cycle one to three years. o Few circles survive beyond this limit either because they loose steam or they face simple problems.

QCs can be an excellent bridge between participative and non-participative approaches. For QCs to succeed in the long run, the management needs to show its commitment by implementing some of the suggestions of the groups and providing feedback on the disposition of all suggestions.

Q. 7) Write short notes on- (Any two) (10 marks) a) Job enlargement Ans. It means expanding the number of tasks, or duties assigned to a given job. Job enlargement is naturally opposite to work simplification. Adding more tasks or duties to a job does not mean that new skills and abilities are needed. There is only horizontal expansion. It is with same skills taking additional responsibilities like extending working hours etc. Job enlargement may involve breaking up of the existing work system and redesigning a new work system. For this employees also need to be trained to adjust to the new system. Job enlargement is said to contribute to employee motivation but the claim is not validated in practice. Benefits of Job Enlargement: 1. Task Variety 2. Meaningful Work Modules 3. Full Ability Utilization 4. Worker Paced Control 5. Meaningful Performance Feedback Disadvantages of Job Enlargement 1. High Training Costs 2. Redesigning existing work system required 3. Productivity may not increase necessarily 4. Workload increases 5. Unions demand payhike 6. Jobs may still remain boring and routine Thus, Job Enlargement like job simplification and Job Rotation is also an incentive for motivation which has been adopted also as a means for motivating people in an organisation. As against Enrichment, Job Enlargement involves performing a variety of jobs or operations at the same time., it involves horizontal job loading as compared to a vertical one. Argyris feels that job enlargement avoids monotony which is a result of high degree of specialisation and division of labour. A person performs a variety of jobs, as such it removes the dullness associated with the jobs, thus he remains interested in this variety, however Herzberg feels that merely by giving an individual a variety of jobs is not enough because the job inherently remains the same, as such its not motivating, therefore there should be an upgradation of authority and responsibility.

b) Promotion Ans. A promotion is the appointment of a member to another position, within the same department or elsewhere in the organization, involving duties and responsibilities of a more complex or demanding nature and are recognized by a higher pay grade and salary. A transfer is the appointment of a member to another position within the same department or elsewhere in the organization, involving duties and responsibilities of a comparable nature and having a similar pay grade and salary. In certain circumstances, the transfer may be at a lesser pay grade or salary A promotion is a move up the organizational ladder; job rotation and transfers are lateral moves; demotions are downward moves; and layoffs move employees out. Layoffs, in contrast to dismissals are terminations, sometimes temporary, required for business needs unrelated to worker behavior or performance. All of these changes bring about shifts in status, and often in pay, of the employees involved. Seniority vs. Merit in Promotions Seniority is an employees length of service in a position, job grouping, or farm operation. An individual who has worked on a farm for three years has more seniority than one who has worked for two.Merit, in contrast, refers to "worth" or "excellence." Merit is more difficult to measure than seniority. In the context of promotion, it relates to relevant qualifications as well as effectiveness of past performance. Promotion by seniority In a straight seniority systemwhere the only factor in allocating jobs is length of servicea worker would enter the organization at the lowest possible level and advance to higher positions as vacancies occur. All prospective farm supervisors and managers would work their way up

through the ranks.. In a seniority system, length of service is the chief criteria for moving up the ladder. More typically, seniority counts only within specified job groups. Some groups might contain only one job classification, others several. All managers, for instance, would have once worked as foremen. The benefits and disadvantages of using seniority in promotion decisions are summarized in the following Figure . The most obvious strength is its undisputed objectivity. Growers may deviate from a system based purely on seniority in order to avoid some of its inherent limitations. Seniority systems tend to reward loyalty and promote cooperationalbeit not excellence. Promotion by merit Promotions based on merit advance workers who are best qualified for the position, rather than those with the greatest seniority. When present employees are applying for a position, a workers past performance is also considered. Effective performance appraisal helps build trust in the system Merit is not easy to define and measureit often requires difficult subjective evaluations. At some point, someone has to make a judgment about an employees relative merit. Employees may find it difficult to make a distinction between meritbecause it is so hard to measure in an objective wayand favoritism. Seniority-based promotions Advantages Employees get to experience many jobs on the way up the promotional ladder, provided that they stay long enough and openings develop. Jobs can be grouped into different ladders such that experience on one job constitutes good training for the next. Cooperation between workers is generally not hindered by competition for subjectively determined promotions. Workers need not seek to gain favor with supervisors (through nonproductive means) to obtain advancement. If, for example, a supervisors direction violates the interests or policy of the ranch, employees would have less fear of reprisal for not following it.

Disadvantages Some employees may not be able or want to do certain jobs into which a strict seniority system would propel them. (Not all tractor drivers would make good foremen, or would like to be foremen.) Employees should be able to opt not to accept an opportunity for promotion. Ambitious workers may not be willing to "wait their turn" for higher level jobs that they want. Employee motivation to work as well as possible is not reinforced. Immigrant or ethnic groups new to agriculture, and women, would be underrepresented in higher levels for a long time (since they are the last hired and have least seniority). Employers would tend to hire overskilled people at entry level, so they have the capacity for promotion. Merit-based promotions Advantages Employee job-related abilities can be better matched with jobs to be filled. Motivated and ambitious employees can be rewarded for outstanding performance. Performance is fostered. People can be hired for a specific job, rather than for ability to be promotable. Disadvantages Merit and ability are difficult to measure in an objective, impartial way. Supervisors may reward their favorites, rather than the best employees, with high merit ratings. Disruptive conflict may result from worker competition for merit ratings. Unlawful discrimination may enter into merit evaluations.

c) Transfer Ans. Meaning: In business organizations, employees are shifted from one post to the other or from one department to other or one unit/ branch/ plant of the company to the other. This is called as job transfer of transfer of employees. Such transfers are quite common in case of Banks, government department, manufacturing companies and other business organizations.

A transfer is defined as, a change in job where the new job is substantially equal to the old in term of pay, status and responsibilities.

Transfers of employees do cerate some resentment from concerned employees. This is natural as transfers may create certain personal and family problems. In addition, an employee has to adjust with new situation. Finally it may be pointed out that transfer is neither promotion nor demotion but merely a horizontal or lateral movement of an employee from one job, to another at same other place where the salary, status and responsibilities are more or less the same.

Reasons of Job Transfer

1. Variation in the volume of work: Transfers are necessary due to variation in the volume of work in different department/ sections. Shortage of employees or increase in the work load in one department leads to transfer of employees. 2. Providing training to employee: Transfers are made for providing opportunities to employees for training and development.

3. Rectification of poor placement: Transfers are necessary for the rectification of poor placement made in the initial period. Similarly, transfers are necessary in order to utilize the service of an employee in the best possible manner.

4. Satisfied the personal need of employee: Transfers are necessary satisfy the personal needs (Personal Difficulties) of the employees. They include family problems, sickness, and education of children and so on. Such transfers take place especially among female employees.

5. Meeting mutual need of employees: Transfers are, sometimes, made in order to meet the mutual needs of to employees. It is a type of mutual exchange and is usually accepted by the management.

6. Meeting Organizational needs: transfers are necessary to meet the organizational needs developed out of expansion programmes or fluctuation in work requirements or changes in the organizational structure or dropping of existing product lines. For example, experienced workers and supervisors are transfer to new plants/ factories in order to manage the work smoothly.

7. Solution to poor performance: transfers are, sometimes, made when the worker fail to perform his job efficiently. He is transferred to and new place or post and is given an opportunity to improve his performance at a new place. Here, transfer is treated as a deter alternative to outright dismissal.

8. Avoiding fatigue and monotony: Transfers are made of avoiding fatigue and monotony of work. The productivity of an employee may decline due to monotony of his or her job. To break his monotony, the employee is transferred.

9. Removing poor personal relations: the relations between the workers and his supervisor may not be smooth and cordial. This may affect the work of department. One method to solve the problem is to transfer the worker that department. This transfer may be necessary for removal of the incompatibilities between the worker and his/her boss or between one worker and the other.

10. Providing relief and to punish employees: Transfers may be made in order to give relief to employees who are over burdened or are working under heavy risk or tension over a long period. Similarly, transfers are made as a disciplinary action for serious mistakes on the part of employees. This practice is widespread mainly in government offices and police department.

d) Characteristics of todays workforce Ans. FUNCTIONS OF HRM

Managerial Functions Planning Organising Directing Controlling

Operative Functions Employment Human Resources Development Compensation Human Relations Industrial Relations Recent Trends in HRM

1. Managerial Functions: Managerial functions of personnel management involve planning, organizing, directing and controlling. Planning: It is pre-determined course of action. Planning pertains to formulating strategies of personnel programmes and changes in advance that will contribute to the organizational goals. It involves planning of human resources, requirements, recruitment, selection, training etc. It also involves forecasting of personnel needs, changing values, attitudes and behaviour of employees and their impact on the organization. Organising : An organization is a means to an end. It is essential to carry out the determined course of action. An organization is a structure and a process by which a co-operative group of human beings allocates its task among its members, identifies relationships and integrates its activities towards a common objective. Complex relationships exist between the specialized departments and the general departments as many top managers are seeking the advice of the personnel manager. Thus an organization establishes relationships among the employees so that they can collectively contribute to the attainment of company goals. Directing : The next logical function after completing planning and organizing is the execution of the plan. The basic function of personnel management at any level is motivating, commanding, leading and activating people. The willing and effective co-operation of employees for the attainment of organizational goals is possible through proper direction. Tapping the maximum potentialities of the people is possible through motivation and command. Coordination deals with the task of blending efforts in order to ensure successful attainment of an objective. Controlling: After planning, organizing and directing various activities of personnel management, the performance is to be verified in order to know that the personnel functions are performed in conformity with the plans and directions of an organization. Controlling also involves checking, verifying and comparing of the actuals with the plans, identification of deviations if any and standards through controls. Auditing training programmes, analyzing labour turnover records, directing morale surveys, conducting separate interviews are some of the means of controlling the personnel management function and making it effective.

2. Operative Functions: The operative functions of human resources management are related to specific activities of personnel management viz, employment, development, compensation and relations. All these functions are interacted with managerial functions. Employment: It is the first operative function of Human Resource Management. Employment is concerned with securing and employing the people possessing the required kind and level of human resources necessary to achieve the organizational objectives. It covers functions such as job analysis, human resource planning, recruitment, selection, placement, induction and internal mobility. Human Resource Development: It is a process of improving, molding and changing the skills, knowledge, creative ability, aptitude, values, commitment etc., based on present and future job and organizational requirements. It includes Performance Appraisal, Training, Management Development, Career Planning and Development, Internal Mobility, Transfer, Promotion, Demotion, Change and Organisational Development. Compensation: It is a process of providing adequate, equitable and fair remuneration to the employees. It includes job evaluation, wage administration and salary administration, incentives, bonus, fringe benefits, social security measures etc. Human Relations: Practicing various human resources policies and programmes like employment, development and compensation and interaction among employees create a sense of relationship between the individual worker and management, among workers and trade unions and the management. It is a process of interaction among human beings. Human relations is an rear of management in integrating people into work situations in a away that motivates them to work together productively co-operatively and with economic, psychological and social satisfaction. It includes: Understanding and applying the models of perception, personality, learning, intra and inter personnel relations, intra and inter group relations. Motivating the employees Boosting employee morale Developing the communication skills Developing the communications skills

Redressing employee grievances properly and in time by means of a well-formulated grievance procedure.

Handling disciplinary cases by means of an established disciplinary procedure.

Counseling the employees in solving their personal, family and work problems and releasing their stress. Strain and tensions. Improving quality of work life of employees through participation and other means.

Industrial Relations: Industrial relations refer to the study of relations among employees, employer, government and trade unions. Industrial relations include: Indian labour market Trade unionism Collective bargaining Industrial conflicts Workers participation in management and Quality circles

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