Explain Techniques/Methods of conducting Performance Appraisal

Ans. There are several methods or techniques of performance appraisal. (I) Traditional Techniques : 1. Check List : In this case, a list is prepared containing various work related statements such as quality of work, speed, etc. The rater indicates the individual performance by checking yes or no squares to various statements. The main advantages are the simplicity, convenience, less time consuming, and less expensive. 2. Confidential Reports : This is an old and traditional method or appraising employees. A confidential report is a report on the subordinates strengths and weaknesses. The confidential report is used for a variety of personnel decisions such as transfers, promotions etc. This is a poor method of performance appraisal, as it does not provide proper feedback to the employees. 3. Critical Incident Method : In this method, the rater records important incidents involving the rate. If the ratee performs well in such incidents, then he is given high scores and vice-versa. For instance, in a particular incident in which a salesman convinces an argumentative customer to buy the product, then the salesmans performance may be given higher score. 4. Ranking Methods : There are various ranking methods which are commonly used to evaluate the performance of the employees. Ranking methods offer convenience to evaluate the performance and they are less time consuming. The ranking methods used are : (a) Simple ranking method. (b) (c) Alternation ranking method. Paired comparison method.

5. Graphic Rating Scale : In this method, the raters used a graphic scale to appraise certain specific factors such as quality of work, quantity of work, dependability, etc. The following is an example of graphic scale : Quality of Work Quantity of Work Dependability Excellent Good

Average Poor The graphic scale method is simple to understand, easy to conduct and less time consuming. However, there is lot of paper work and there are chances of rater bias. 6. Narrative Essay : The most simplest method is the narrative essay. In this, the rater describes in detail an employees strengths and weaknesses, and potential, together with suggestions for improvement. If essays are written well, they can give detailed feedback to the subordinates in respect of their performance.

(II)

Modern Techniques :

7. Role Analysis : Role analysis is a process of analyzing the role of a manager in relation to roles of other managers or members who are affected by his performance. The role set members can conduct performance appraisal of the focal role. The focal role can make necessary changes to improve his performance. 8. Assessment Centers : This technique is used more so in the case of selection rather than performance appraisal. However, now-a-days, some firms use this technique in performance appraisal, especially at the time of promoting managers to higher levels. The ratees are subject to various psychological tests, management games, oral presentations, and such other various exercises. 9. Management by Objectives (MBO) : This technique can be used to measure the performance of subordinate or lower level managers. In MBO, the process involved is as follows : The superior and subordinate managers jointly define common goals. Jointly frame plans. The subordinate manager implements the plan. Joint review of plans where performance appraisal of subordinate manager takes place. 10. Behaviourlly Anchored Rating Scale (BARS) : It is a variation of simple graphic scale. In this case, the behaviour or attitude towards the job is appraised. Employees who have a positive attitude towards the job may make every effort to upgrade and update their knowledge and skills to handle their activities. Such employees would be given higher performance appraisal.

11. Psychological Appraisal Method : Psychological appraisals are conducted to find out the employees potential. Psychological appraisals consists of : In-depth interviews, Psychological Tests, etc. 12. Human Resource Accounting (HRA) : HRA deals with cost of and contribution of human resources to the organisation. The cost of the employee includes cost of recruitment, selection, induction, training, compensation, etc. Employee contribution is the money value of employee service provided to the organisation. Employee performance can be taken as positive when contribution is more than the cost and viceversa.

Explain the Steps in Training Process

Ans. The steps of Training Process are as under : a) Organizational Objectives and Strategies : The first step in the training process is an organization in the assessment of its objectives and strategies. What business are we in? At what level of quality do we wish to provide this product or service? Where do we what to be in the future? Its only after answering these and other related questions that the organization must assess the strength and weakness of its human resources. b) Needs Assessment : Needs assessment diagnoses present problems and future challenge to be met through training and development. Needs assessment occurs at two levels i.e. group level and individual level, an individual obviously needs training when his or her performance falls short or standards that is when there is performance deficiency. Inadequate in performance may be due to lack of skills or knowledge or any other problem c) Training and Development Objectives : Once training needs are assessed, training and development goals must be established. Without clearly-set goals, it is not possible to design a training and development programme and after it has been implemented, there will be no way of measuring its effectiveness. Goals must be tangible, verifying and measurable. This is easy where skilled training is involved.

d) Conducting Training Activities : Where is the training going to be conducted and how?

At the job itself. On site but not the job for example in a training room in the company. Off site such as a university, college classroom hotel, etc. e) Designing training and development program : Who are the trainees? Who are the trainers? What methods and techniques? What is the level of training? What are the principles of learning? Where to conduct the program? f) Implementation of the training programme : Program implementation involves actions on the following lines :

Deciding the location and organizing training and other facilities. Scheduling the training programme. Conducting the programme. Monitoring the progress of the trainees. g) Evaluation of the Results : The last stage in the training and development process is the evaluation of the results. Since huge sums of money are spent on training and development, how far the programme has been useful must be judge/determined. Evaluation helps determine the results of the training and development programme. In the practice, however organizations either overlook or lack facilities for evaluation.

Explain methods of Training and Development

Ans. Training & development methods for managerial personnel can be divided into two groups as follows : (I) ON THE JOB METHODS : 1. Job Rotation : Job rotation involves the transfer of trainees from one job to another and sometimes from one branch to another. Job assignment under a rotation system may

last for a period of 3 months to 2 years. The trainee is given full duties and responsibilities of the rotated position. It is more suitable for lower level executives. Advantages : Job rotation promotes creative thinking and enables for executive development. It provides a rich experience to the candidate in a variety of matters. It does away with the monotony of routine duties. It creates a second line of competent executives to meet the problems of transfers, turnover, etc. It identifies the most suitable position for an executive. The position in which the trainee performs better is generally offered to him. 2. Planned Progression : It is similar to job rotation, except that every movement from one job to another involves higher pay, position and duties. In job rotation, every movement involves more or less same pay and position. Planned progression is more likely to occur at higher managerial levels, whereas, job rotation occurs mainly at lower level positions. 3. Coaching & Counselling : Coaching : In coaching, the superior plays an active role in training the subordinate. The superior may assign challenging task to the subordinate for the purpose of training. The superior may assist and advice the subordinate to complete the assigned task. In this case, the superior acts as a coach in training the subordinate. Counselling : In this case, the superior plays a passive role in training the subordinate. The superior may assign challenging task to the subordinate for the purpose of training. The superior may provide advice to the subordinate in the completion of task, if so required. In this case, the superior acts as a guide rather than a coach n training the subordinate. 4. Understudy Position : The trainee is given an understudy position. The trainee handles some important aspects of his superiors job. The trainee, at a future date, is likely to assume the duties and responsibilities of the position currently held by his immediate superior. The understudy technique ensures a company that a fully qualified person will be available to take over a present managers position whenever he leaves the position through promotion, transfer, retirement or resignation. The understudy person is generally asked to do the following :

He may be asked to investigate and make written recommendations about problems an projects related to a unit or department. He may also supervise a small group of employees to experience leadership qualities. He may be called to attend executive meetings either with or in place of the superiors. He may be called to assume superiors position in his absence. 5. Junior Boards : In western countries, junior boards are formed. It permit promising young middle-level managers to experience problems and responsibilities faced by top-level executives in their company. About 10 to 12 executives from diverse functions within the organisation serve on the board for a term of say 6 months or more. The board is allowed to study any problem faced by the organisation, in respect of personnel policies, organizational design, interdepartmental conflicts, etc, and to make recommendations to the senior board of directors. (II) OFF THE JOB METHODS 1. Classroom Methods : Classroom methods for training managerial personnel include lectures, discussion, role playing, and case study. Advantages : Training can be given to a large group of trainees at a time, especially in the case of lecture method. Both theoretical and practical aspects are emphasized. Training can be done in a short period of time. It is economical. Senior and qualified expert can train the executives. At times, an outside expert is invited to give a lecture or for debate. It generates interaction among different executives belonging to various departments, and ranks. 2. Simulation : A simulated learning situation in an imitation of reality. It is a technique wherein the trainee is trained in an environment that closely reflects and represents actual work place. It tries to duplicate actual conditions encountered on a job. Simulation is a very expensive training technique, but it is useful or even necessary, where actual on-the-job practice could result in a serious injury, a costly error, or the destruction of valuable company materials or resources. 3. Business or Management Games : Business games are classroom simulation exercises in which teams of individuals compete against each other to achieve given objectives. For instance, teams may be asked to make decisions concerning pricing, production volumes, research expenditures, advertising and sales promotion plans,

channels of distribution etc. Team actions and decisions are fed into a computer that has been programmed according to a particular model of the market. Business game participants learn by analyzing problems and by making trial-and-error decisions. 4. Committees and Conferences : Committee : A committee can be a method of training. The junior members of the committee can learn from the discussions and interaction with the senior members of the committee. The senior members also can learn from the opinions and views expressed by the junior members. Conferences : In the case of conferences, group discussion and meetings are held to discuss various issues and to provide solutions to various problems. The chairperson leads the discussion and then the participants attempt to provide solutions. The conference acts as a group interaction and exchange of views and ideas. It reshapes thinking of attitudes of the participants. 5. Readings, Television and Video Instructions : Planned reading of relevant and current management literature is one of the best methods of management development. It is essentially a self-development programme. A manager may be aided by training department, which often provides a list of valuable books. The manager can discuss the relevant articles with the senior manger and get necessary clarifications. 6. Seminar and Workshops : Management employees can be trained with the help of seminars and workshops. In seminars, trainees present their papers on work related developments. The paper presentations are reviewed by experts. The experts may give their insights on the topic presented y the trainee. In workshops there is a good interaction between the trainer and the trainees. The trainer may present his views on certain developments and then initiate interactive discussion. The trainees can get insights due to the views expressed by the trainer and other trainees.

Explain the different types of Interviews

Ans. Interviews may be classified into following categories : 1. Patterned or Structured Interview : This is the most common method of interview. It is based on the assumption that to be most effective every pertinent detail should be worked out in advance. Questions would be asked in a particular order, with very little deviation. The time to be allowed to each candidate and information to be sought are predecided. Such interviews are also called standardized interviews, for they

are pre-planned to a high degree of accuracy and precision. Such interview is also known as directed or guided interview.Patterned interview helps to minimize personal bias and prejudice and provides uniformity and consistency. It allows for a systematic coverage of the required information. But such an interview does not allow keep probing into the candidates mind. 2. Non-Directed or Unstructured Interview : This type of interview is free and is relatively non-planned as to format. The interview is not directed by questions or comments as to what the candidate should be asked. Non-directed interview is a more flexible approach and therefore the candidate feels more at case. Generally, the candidate is encouraged to express himself on a variety of subjects, on his expectations and motivations, background and upbringing, interests, etc. The interviewers look for traits of character and nature of his aspirations and his potentials, strengths and weaknesses. Thus, a better assessment of the candidates personality becomes possible. But unless the interviewer is very competent, the discussion may lose its direction and may become a rambling session with much wastage of time and effort. 3. Informal Interview : Such interview may take place anywhere. It is not planned and is used when the staff is required urgently. A friend or relative of the employer may introduce the candidate to the employer, who asks a few basic question like name, education, experience, etc. 4. Formal Interview : This type of interview is preplanned and is held in a formal atmosphere. All the formalities and procedures e.g. the venue, the time, the panel of interviewers, and the questions to be asked are decided in advance. 5. Depth Interview : It is a semi-structure approach wherein details concerning one key area are sought. It is designed to intensively examine the candidates proficiency in his area of special interest. The purpose is to get a true picture of the candidate through deep probing into his mind. This type of interview requires a mature understanding of human behaviour on the part of the interviewer. 6. Group Interview : In this type of interview, groups rather than individuals are interviewed. Generally, a topic for discussion is given to the group. The applicants enter into group discussions, knowing that the interview is a test, but do not know which qualities are being measured or tested. The candidates in the group are carefully watched as to who takes a lead in the discussion, who tries influencing others, who summarises and clarifies issues and who speaks effectively. In this type of interview, the emphasis is on the analysis of the interviewers impressions from discussions rather than a factual information. Such interview is based on the assumption that behaviour displayed in a group situation is related to potential success in the job.

7. Panel Interview : Such interview is conducted by a group of interviewer. It seeks to pool the collective wisdom and judgement of several interviewers. Question are asked in turn or at random. 8. Individual Interview : This is also called as one-to-one interview. It is a face to face interaction between the interviewer and the candidate. It is a two-way communication and there should be purposeful exchange of ideas. 9. Stress Interview : The purpose of such interview is to find out how a candidate behaves in a stressful situation i.e. whether he loses his temper, gets confused or frightened or feels frustrated. The interviewer deliberately puts the candidate on the defensive by trying on annoy, embarrass or frustrate him. In order to put the candidate under strain, the interviewer asks questions rapidly, criticizes his answers, interrupts him frequently and so on. Such interview must be handled with utmost care and skill. It may not necessarily reveal how the candidate will behave in a real stressful situation involved in the job. 10. Exit Interview : This type of an interview is conducted by an organisation with those employees who have put in their resignation papers. It may be conducted on the last day of employment of the employee. Exit interview helps to find out why the candidate is resigning from the job.

Explain the steps involved in the Selection Process

Ans. Selection is a process of choosing right person for the right job. The selection process consists of a series of steps or techniques as follows : 1. Job Analysis : The first step in selection process is analyzing the job. Job analysis consists of two parts : (a) Job Description, and (b) Job Specification. Proper job analysis helps to advertise the job properly. Accordingly, the right candidates may apply for the job, thus saving a lot of time and effort of the selectors. 2. Advertising the Job : The next step is to advertise the job. The job can be advertised through various media. The right details about the job and the candidate must be given in the advertisement.

3. Initial Screening : The initial screening can be done of the applications and of the applicant. Usually, a junior executive does the screening work. At this stage, the executive may check on the general personality, age, qualifications, family background of the candidate. The candidate may also be informed of salary, working conditions, etc. 4. Application Blank : It is a prescribed form of the company which helps to obtain information about candidate in respect of social, biographic, academic,work experience, references, etc. The application blank helps to It provides input for the interview. It provides basis to reject candidates if they do not meet eligibility criteria, such as experience, qualifications, etc. 5. Tests : Various tests are conducted to judge the ability and efficiency of the candidates. The type of tests depends upon the nature of job. An important advantage of testing is that it can be administered to a large group of candidates at a time and saves time and cost. The various tests are : (a) Personality test, (b) Intelligence test, (c) Performance test, (d) Stress test, etc. 6. Interview : It is face to face exchange of views, ideas and opinions between the

candidate and interviewer(s). There are various types of interviews such as : (a) Panel Interview, (b) Individual Interview, (c) Group Interview, (d) Stress Interview, (e) Exit Interview. 7. Reference Check : A candidate may be asked to provide references from those who are willing to supply or confirm about the applicants past life, character and experience. Reference check helps to know the personal character and family background of the candidate. It helps to guard against possible false information supplied by candidate. 8. Medical Check : Medical examination of the candidates is undertaken before they join the firm in order to Find out whether the candidate is physically fit to carry out duties and responsibilities effectively, Ensure the health and safety of other employees, Find out whether the candidate is sensitive to certain work place such as in a chemical factory.

9. Final Interview : Before making a job offer, the candidates may be subjected to one more oral interview to find out their interest in the job and their expectations. At this stage, salary and other perks may be negotiated. 10. Job Offer : This is the most crucial and final step in selection process. A wrong selection of a candidate may make the company to suffer for a good number of years and the loss is incalculable. Company should make a very important decision to offer right job to the right person.

Explain the sources of Recruitment

Ans. The sources of recruitment refers to the areas of recruitment from which the potential employees can be attracted to apply for the job and accordingly selected. The sources of recruitment can be broadly divided into two groups : (I) Internal Sources : The internal sources refer to sources from within the company. The various internal sources are as follows :

1. Promotions : When a vacancy arises at a higher level, qualified and experienced employee from within the company can be promoted at the higher level. For instance, an understudy candidate may be promoted to the post of his superior who has retired or promoted or transferred. 2. Transfers : The vacancy can also be filled through internal transfers. An existing executive who is experienced and capable of handling the duties in the new department can be transferred. 3. Retired Managers : At times, retired managers may be recalled, especially for a short duration, when it is difficult to find a suitable candidate for the post from which the manager has retired. Again, young mothers may retire early to take care of kids. Once the kids grow up, the company may recall such employees. 4. Internal Advertisements : The company may also display on its notice boards or inform the departmental head of a vacancy at executive levels. Accordingly, interested candidates may apply for the position. (II) External Sources : It refers to sources from outside the company. It includes :

1. Management Consultants : Some companies take the help of management consultants to select executive personnel for their organisation. 2. Advertisements : This is one of the most popular source of recruitment. Advertisement of the vacancy can be inserted in newspapers, or business magazines. The ads can also be placed on the job related web-sites on the internet. 3. Campus Recruitment : The company may also inform management institutes to send candidates studying management courses in such institutes. At times the company recruitment committee may personally visit the institute campus and recruit and candidates. There can be recruitment of summer trainees who are presently studying in various institutes. 4. Recommendations : The company may also recruit executives on the basis of recommendation received from existing managers or from sister concerns. 5. Other External Sources : There can be various other external sources, such as head hunting, deputation of personnel by parent company, etc.

Define Outsourcing and explain its advantages

Ans. Outsourcing is contracting with another company or person to do a particular function. Almost every organisation outsourcers in some way. Typically, the function being outsourced is considered non-core to the business. An insurance company, for example, might outsource its janitorial and landscaping operations to firms that specialize in those types of work since they are not related to insurance or strategic to the business. The outside firms that are providing the outsourcing services are thirdparty providers, or as they are more commonly called, service providers. Advantages of Outsourcing : 1. Focus On Core Activities : In rapid growth periods, the back-office operations of a company tax will expand also. This expansion may start to consume resources (human and financial) at the expense of the core activities that have made your c(x company successful. Outsourcing those activities will allow refocusing on those business activities that are important without sacrificing quality or service in the backoffice. Example : A company lands a large contract that will significantly inc0( increase the volume of purchasing in a very short period of time; Outsource purchasing.

2. Cost and Efficiency Savings : Back-office functions that are complicated in nature, but the size of your company is preventing you from performing it at a consistent and reasonable cost, is another advantage of outsourcing. Example : A small doctors office that wants to accept a variety of insurance plans. One part-time person could not keep up with all the different providers and rules. Outsource to a firm specializing in medical billing. 3. Reduced Overhead : Overhead costs of performing a particular back-office function are extremely high. Consider outsourcing those functions which can be moved easily. Example : Growth has resulted in an increased need for office space. The current location is very expensive and there is no room to expand Outsource some simple operations in order to reduce the need for office space. For example, outbound telemarketing or data entry. 4. Operational Control: Operations whose costs are running out of control must be considered for outsourcing. Departments that may have evolved over time into uncontrolled and poorly managed areas are prime motivators for outsourcing. In addition, an outsourcing company can bring better management skills to your company than what would otherwise be available. Example : An information technology department that has too many projects, not enough people and a budget that far exceeds their S contribution to the organization. A contracted outsourcing agreement will force management to prioritize their requests and bring control back to that area. 5. Staffing Flexibility : Outsourcing will allow operations that have seasonal or cyclical demands to bring in additional resources when you need them and release them when youre done. Example : An accounting department that is short-handed during tax season and auditing periods. Outsourcing these functions can a provide the additional resources for a fixed period of time at a consistent cost. 6. Continuity & Risk Management : Periods of high employee turnover will add uncertainty and inconsistency to the operations. Outsourcing will provided a level of Continuity to the company while reducing the risk that a substandard level of operation would bring to the company. Example : The human resource manager is on an extended medical leave and the two administrative assistants leave for new jobs in a very short period of time. Outsourcing the human resource function would reduce the risk and allow the company to keep operating.

Explain the steps in HRP/Manpower Planning

Ans. The following are the STEPS in the HRP process :

1. Review of Organisational Objectives : The first step in HRP is to review the objectives of the organisation. Proper review of the objectives will enable the organization to make a proper list of the various activities that would be required to achieve the objectives. To undertake the activities, the organisation can determine the required work-force in terms of quantity and quality. A proper job analysis needs to be conducted at this stage. 2. HR Requirements Forecast : The HRD manager should find out the requirement of human resources undertake the various activities. The human requirements forecast must be both in terms of quantity and quality. 3. HR Supply Forecast : The HRD manager should also forecast the availability of manpower. The required manpower may be available within the company, or they may be required to be hired from the labour market. 4. Make Comparison : The HRD manager must make a comparison between HR requirement and HR supply, to find out whether the required personnel is available or not. 5. If no Differences : The comparison between HR requirements and HR supply would indicate whether there are any differences. If human resource requirements are equal to human resource supply, then there are no differences and as such no action need to be taken. 6. If thee are Differences : The comparison may reveal differences between the human resource requirements and human resource supply. There may be HR surplus, or shortage. Action needs to be taken to deal with the problem of HR shortage or surplus. For instance, if there is shortage, management may hire, provide overtime, etc. If there is surplus, management may terminate, lay off, etc. 7. Motivating the Manpower : An important aspect of human resource planning is to motivate the personnel by providing monetary and non-monetary incentives. 8. Monitoring HR Requirements : The organisation needs to monitor the requirement of HR. If required necessary action to be taken.

What are the Objectives of Personnel Policies?

Ans. Written polices maybe given a wide circulation among the workers to that they may know the organizational objectives and may help the management in achieving them. i) To Achieve the objectives of the organisation : Polices are guide to action towards the objectives of the organisation so they must be known to ever concerned person in order to concentrate their efforts towards the objectives. ii) Uniformity in decisions : Personnel polices furnish the general standard or basis on which decisions are reached. Decisions in one organisation are taken by the various line authorities keeping in view the personnel polices and thus uniformity of action is maintained similar cases. There is the least possibility of workers exploitation through base decisions. iii) Delegation of authority possible : Delegation of authority means assigning work to others and gives them authority to do it. Personnel policies help the executives at various levels of decision centers to act with confidence without consulting the superiors every time. They give a manger liberty to choose the alternatives provided an to decide upon the action. iv) Better control : As personnel polices specify relationship among organisation, management and workers, each group works for the achievement of the large objectives of the organization without any policy conflicts. Thus it provides better control. v) Evaluating Efficiency : Policy provides standards the execution of work. Efficiency of each group may be evaluated by performance in the light of the policy. It may be assessed whether organisation has achieved the desired results set in the policy. Policy maybe amended or a new policy mat be formulated in the light of the actual performance. vi) Confidence : Policy provides the workers a security against exploitation. It creates confidence in the in the employees. They may know where they stand in relation to the organisation. vii) Motivation of workers : Policy makes the employee aware of the objectives of the organisation and guides the workers in achieving them. So they work enthusiastically and with loyalty to get those objectives. viii) Guide to management : Policy provides guidance to management in relation to the personnel problems they resolve how to g t work done by the people at work or how to behave them.

Distinction between Personnel Management and HRM

Personnel Management HRM 1. Evolution HRM is the latest development in the Personnel management precedes HRM. evolution of management of men. 2. Employment It has favoured contractual employment It has favoured all round development of based on written agreement. employees. 3. Rules It has attached highest importance to It has attached more importance to the rules. Performance is evaluated within the abilities of employees. Rules are to make framework of rules. the life of employees convenient. 4. Initiative It works on the basis of piecemeal It works on the basis of integrated initiative. initiative. 5. Speed of decision making Its speed of decision making is slow. Its speed of decision making is fast. 6. Remuneration It supports performance related It supports fixed remuneration. remuneration. 7. Job design It practices division of work along with It practices division of work. team work. 8. Conflict handling It reaches out temporary truce through collective bargaining. Its uses fixed procedures to deal with employee grievances. It manages congenial work climate and culture. It implements wide ranging personnel strategies.

9. Training and development It uses outdated methods of training and It uses latest techniques of training and development. development with audio-visual facilities. 10. Behaviour norms It decides behaviour norms based on It decides behaviour norms based on customs and practices. individual values and mission of business.

What are the challenges before the HR Management?

Ans. 1. Challenges relating to recruitment selection & development of manpower: A personnel manager is concerned with recruitment, selection, training and development of manpower. Here, he faces many challenges. For example, job seekers are many but really capable persons (employable) are few and are in great demand in the employment market. How to get most suitable persons and how to make them stable in the organization is one challenge before the personnel manager. 2. Challenges relating to globalization : The HR Managers of firms competing in global market have to cope up with the problems of varied laws, languages, culture, business practices such as Human Resources Planning, Staffing, Compensation etc. would therefore be affected by Globalisation of business. Business firms from India & other developing countries may find it difficult to compete with large global corporations from developed nations. Therefore, Indian firms have to face the challenges of developing & enhancing the Quality of Human resources so as to face the challenges from global corporation. 3. Challenges relating to balancing work with life : Balancing work with life assumes relevant when both husband and wife are employed. Work life balance is becoming a major challenge to HR management as more women are taking up jobs to add to finances of their families or to become careerists. Organisations should undertake work life balancing programmes, as in their absence both men and women will be exposed to stress, depression and anxiety. 4. Challenges relating to Attrition Rate : Attrition rate is on the rise with around 20-25% of the people leaving their job every year. Rewriting & Training new people every year is costly. Companies now have to take extra efforts to retain the employees. 5. Challenges relating to manpower management : a personnel manager has to look after certain functional activities such as promotions and transfers, administration of grievance procedure, execution of labour legislations and so on. This work is also complicated and leads to dissatisfaction among the employees. Charges of partiality and favouritism are made as regards promotions and transfers. It is necessary to introduce fair personnel policies so as to avoid dissatisfaction among the employees. 6. Challenges relating to trade union activities : The job of personnel manager relates to people employed in the organisation. He has to manage them properly for the benefit of the organisation. However, human behaviour is always

uncertain. Employees may not appreciate personnel policies which are actually favourable to them. They may not appreciate personnel policies which are actually favourable to them. They may come under the influence of trade union leaders or political leaders and oppose management as regards certain policies and programmes. This leads to new labour problem which are difficult to deal with. In short, a personnel manager will have to face new challenges of varied nature in the normal course. 7. Challenges relating to trade union activities : Employees demand participative management and open system of communication. Therefore, there is a need to change the attitude and style of functioning of the managerial personnel. It is necessary to look after the Career Development of employees. Career development involves finding out the aptitude & expectations of employee and assigning them such work which will help them develop their career and achieve organisation goal. 8. Challenges relating to Reservation Issue : Disadvantaged Section of society have now become more and more articulate and private up their claim of selection & promotion. Theses are the ethnic minorities, Son of Soil who are displaced from the factory site, handicapped & the like Public Opinion and Government support also go into their favour. This might be a challenge to merit in selection and promotion. Modern manager are exposed to such forces. 9. Challenges relating to collective bargaining and other techniques of labour participation in management : A personnel manager has to play an important role in the process of collective bargaining and workers participation in management. Both the activities are important but difficult t introduce due to the negative attitude of employees and their trade union leadership. How to secure co-operation of employees and their unions in this regard is one challenge before the present day personnel manager. 10. Challenges relating to the execution of personnel policies :Execution of various personnel policies is the responsibility of personnel manager. Such policies need to be fair and also acceptable to employees in general. In the absence of their support, new problems, disputes and grievances are likely to develop. Here, the challenge before the personnel manager is how to prepare fair personnel policies and how to secure co-operation of employees in their execution.

What are the activities that describe the scope of HRM?

Ans. The scope of HRM is based on the various functions or activities of HIL. The various activities that describe the scope of HRM are as follows : 1. Human Resource Planning : The HR manager has to undertake HR planning. The HR needs to review the organizational goals or objectives. On the basis of the goals or objectives, the HR manager needs to understand the various activities required achieve the goals. Accordingly, the manager has to make human resource requirement forecast, and then human resources supply forecast. If there are differences between human resource requirement forecast and human resource supply, then the HR manager needs to take appropriate action. For instance, if there is shortage of human resources, then he has to make arrangement for acquiring human resources. 2. Acquisition Function : The acquisition function begins with human resource planning. For acquiring the right type of manpower, the HR manager should make necessary arrangements for recruitment and selection of human resources. Proper procedure needs to be followed to select the right type of manpower in the organization. 3. Placement Function : The HR manager is also responsible for proper placement o f employees in the organisation. Placement refers to fitting the right person at the right place of work. Proper placement not only brings job satisfaction to the employees, but it also results in higher efficiency of the employees. 4. Performance Appraisal : The HR manager may be involved in designing and/or undertaking performance appraisal programmes in the organization. Proper performance feedback to the employees, help to correct their weakness, and to consolidate their strength. 5. Training and Development : One of the major activities of HRM is to provide training and development to the employees of the organisation. Training and development programmes enable the employees to : Acquire additional knowledge. Develop attitudes Improve skills, and Develop social behaviour

6. Career Development : HRM facilitates career development of the employees in the Career development refers to the continuous effort to match long-term individual and organisational needs. HRM should fulfill career aspirations of the employees and should facilitate to the future requirements to the employees in the light of organizational goals. Career development not only helps the employees concerned but also the organisation to become dynamic and growth oriented. 7. Employees Welfare : HRM is responsible for the employees welfare. Welfare measures include creche facilities, holidays with pay, medical, insurance, canteen facilities, recreation facilities rest rooms, transport facilities, and so on. Appropriate and timely welfare facilities motivate employees and make them committed and dedicated towards their work and the organization. 8. Compensation Function: Employees must be re-warded and recognized for their performance. HRM is responsible to design proper compensation package to the employees. Appropriate rewards not only motivate employees but such actions on the part of the organisation communicate the organisations values to the employees. Rewards are provided to the individuals, and to the teams. The rewards may be in the form of higher pay, bonus, other monetary incentives, and non-monetary incentives such as certificate of appreciation, and so on. 9. Labour Relations : HRM is also concerned with the industrial relations. It includes Union management relations, joint consultations, negotiating, collective bargaining, grievance handling, disciplinary actions, settlement of industrial disputes, etc 10. Maintenance Function : HRM is concerned with the maintenance function. It involves protecting and promoting health and safety of the employees. For this purpose, the organisation may adopt health and safety measures, and provide other fringe benefits such as medical aid. Social security measures like provident fund, pension, gratuity, maternity benefits, injury or accident compensation, etc., are also provided to the workers

Write short notes on Identification of training needs, Job Rotation, Principle of Natural Justice, Workers participation in Management

Ans.a. Identification of training needs: Training needs are identified on the basis of organizational anaylsis, job analysis and manpower analysis. Training needs are those aspects necessary to perform the job in an organization in which employee is lacking attitude/aptitude, knowledge and skills. Basically there are two type of analysis done to identify the training. One is the Organizational Analysis and the other Individual Analysis.

Training needs = Job and organizational requirement-Employees specifications

Identification of Training Needs Sr. 1. 2. 3. 4. 5. 6. 7. 8. 9. Group or Organizational Analysis To identify Organizational goals and objectives Personnel/skill inventories Organizational Climate indices Efficiency indices Exit interviews MBO or work planning systems Quality circles Customer survey/satisfaction data Consideration of current and projected changes Individual Analysis Performance appraisal Work sampling Interviews Questionnaires Attitude survey Training progress Rating scales Observation of behavior

b. Job Rotation: This type of training involves the movement of the trainee from one job to another. The trainee received job knowledge and gains experience from his supervisor or trainer in each of the Different job assignments. Though this method of training is common in training managers for general

Management positions, trainees can also be rotated from job to job in workshopjobs. This method Gives an opportunity to express his own ideas.

c. Principle of Natural Justice: It is a fair practice of decision making and running the organization. - All decisions are transparent All decisions are adequately documented

- A review process exits for affected employees, with agencies utilizing existing or revised Grievance processes to enable employees to raise issues arising from the change process. - Decision making takes into account both the individual and employers needs - Relevant and current policy and procedures are well documented and accessible by employees.

d.Workers Participation in Management: The concept of WPM 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.

What is the role of a constructive and positive Trade Union?

Ans. The Role of a constructive and positive Trade Union

Achieving higher wages and better working and living conditions for the members Acquiring the control of industry by worker

Minimizing the helplessness of the individual workers by making them stand collectively and against victimization and injustice of the employers Raising the status of the workers as partners of the industry and citizens of society by demanding the increasing share for the workers in the \management of industrial enterprises Providing a worker self confidence and self esteem Imbibing sincerity and discipline in workers. To protect the right to be consulted on all matters affecting the workers interest.

Besides the above functions of the trade unions the national Commission of Labour has entrusted the following responsibilities on to the trade unions which they execute:

Promotion of national integration

Instilling in their members a sense of responsibility towards the industry and the community Generally influencing the socio-economic policies of the community through active participation in their formulation at various levels.

The functions of the trade union can be divided into 5 categories. Viz

1. Militant or Intra Mural Functions : these functions include protecting the workers interest i.e. hike in wages, providing more benefits, job security etc. through collective bargaining and direct action such as strikes, gheraos etc.

2. Fraternal Or Extra Mural Functions : These functions include providing financial and nonfinancial assistance to workers during the period of strikes, lock-outs, extension of medical facilities, during sickness and casualties, provision of education, recreation, recreational and housing facilities, provision of social and religious benefits etc.

3.

Social Functions: These functions include carrying out social service activities,

discharging social responsibilities through various sections of the society like educating the customers etc.

4. Political Functions: These functions include affiliating a union to a political party, helping the political party in enrolling members, collecting donations, canvassing during the election period, seeking help of political parties during the strikes and lockouts.

5. Ancillary Functions: Ancillary functions of trade include Communications to its members. Welfare activates like acquiring of house sites, construction of houses, and establishment of co-operative societies. Educating its members and their family. Arranging to conduct research programmes. Analyzing data for collective bargaining, preparing notes for union officials, for court cases etc. They also arrange to analyze macro data about the economy, industry and different sectors etc.

What steps should an organization take to make training more effective? Critically examine Herzbergs two factor theory
Ans a. The important steps for a training to be effective are as follows:

1. Preparing the Instructor: The instructor must know both the job to be taught and how to teach it. The job must be divided into logical parts so that each can be taught at a proper time without the training losing plan. For each part one should have in mind the desired technique of instruction i.e. whether a particular point is best taught by illustration, demonstration or explanation.

a)

A serious and committed instructor must :

1. Know the job or subject he is attempting to teach 2. Have the aptitude and ability to teach 3. Have willingness towards the profession 4. Have a pleasing personality and capacity for leadership 5. Have the knowledge of teaching principles and methods 6. Be a permanent student, in the sense that he should equip himself with the latest concepts and knowledge.

2. Preparing the Trainee: The trainee should be made at ease. Most people are somewhat nervous when approaching an unfamiliar task. Though the instructor may have executed the training programme many times he or she should never forget the newness to the trainee. The quality of empathy is a mark of a good instructor.

3. Getting ready to Teach : This stage of the programme is class hour teaching involving the following activities : Planning the programme Preparing the instructors outline Too much material much be avoided The session should move logically Each item should be discussed in depth. Repetition should be in different words.

The material should be taken from standardized text

When the standardized text is not available then the programme should be developed based on group approach consisting of employer, skilled employees, supervisors, trade union leaders and others familiar with the job requirements. Teach about the standard for trainee like quality, quantity, waste or scrap, ability to work without supervision, knowledge or procedure, safety rules, human relations etc.

4. Presenting the Operation: There are various alternative ways of presenting the operations viz. explanation, demonstration. An instructor mostly uses these methods of explanation. In addition one may illustrate various points through the uses of picture, charts diagrams and other training aids.

5. Try out the Trainees Performance: As a continuation of the training sequence, the trainee should be asked to start the job or operative procedure. Some instructors prefer that the trainee explains each step before doing it, particularly if the operation involves any danger. The trainee through repetitive practice shall acquire more skills.

6. Follow Up: The final step in most training procedures is the follow-up when people are involved in any problem or procedure it is unwise to assume that things are always constant. Follow up can be adapted to a variable re-enforcement schedule as suggested in the discussion of learning principles. Every training programme should have a follow up to improve on the future programmes.

Q b. Critically examine Herzbergs two factor theory. Ans. b. Herzberg Theory of motivation deals with basically two factors.

DISSATISFIERS: The first group (factor) consists of needs such as company policy and administration, supervision, working conditions, interpersonal relations, salary, status,

job security and personal life. These factors he called DISSATISFIERS and not motivators. Their presence or existence does not motivate in the sense of yielding satisfaction, but their absence would result in dissatisfaction. They are also known as hygiene factors.

SATISFIERS: The second group are thesatisfiers in the sense that they are motivators which are related to job content. It includes factors of achievement, recognition, challenging work, advancement and growth in job. Their presence yields feeling of satisfaction or no satisfaction but not dissatisfaction.

Another WAY to present the above question Ans b. Herzbergs Classification of Maintenance and Motivational Factors

Maintenance Factors or Sr. Dissatisfiers or Hygiene Factors 1. 2. 3. 4. 5. 6. 7. 8. 9. Job Content Extrinsic Factors Company Policy and Administration Quality of supervision Relations with superiors Peer Relations Relations with subordinates Pay Job security

Motivational Factors or Satisfiers Job Content Intrinsic Factors Achievement Recognition Advancement Work Itself Possibility of Growth Responsibility

10. Work Conditions 11. Status

What are the challenges before the Human Resource function in todays Indian business scenario?
Ans. A goal seeking organizations especially one that seeks improvement over the current situation is a challenge, taking organization. When many such goals are pursued tremendous internal pressures some of them conflicting, tend to be generated. Unless the organization develops mechanisms for coping with these self-generated pressures, it may face major failure and suffer disastrous retreats from its goal.

Human Resource function cannot be performed in a vacuum. There are many challenges that it has to face to survive. All these challenges are discussed below.

1. Technological factors: Just as necessity is the mother of invention competition and a host of other reasons are responsible for the rapid technological changes and innovations. As a consequence of these changes, technical personnel, skilled workers, computer operators and machine operators are increasingly required while the demand for other categories of employers has declined. Hence procurement of skilled employees and their increase in numbers to match the changing job requirements has become a complicated task.

2. Human Resource in the Country: The structure, values and the level of education of human resource in a country influence much of the Human Resource function. The influence of manpower in the country can be studies through the changes in structure of employment. a. Change in the Structure of Employment: The structure of employment in an organization changes with the entrance of workforce with different backgrounds (Social economic, region, community, sex, religion, traditions culture etc). There has been a significant change in the structure of employment with the entry of 1) candidates belonging to the schedule castes, schedules tribes and backward communities. 2) more female employees, due to increased career orientation among women to the suitability of women for certain jobs and to women becoming more acclimatized to the working climate and higher level of commitment. 3) The workforce consists of different regions

but due to increased transportation facilities and mobile character of people. These changes in workforce are a challenge and a complicated task of HR function. It has to deal with employees with different backgrounds.

3. Changes in employee Roles and their Values: Earlier the management could totally control its employees and get the desired output. Today the employees have to be considered as a partner in the organization. Changing structure of workforce has led to the introduction of new values in organization. Among these are moves 1) emphasis on quality of life rather than quantity ii) equality and justice for employees over economic efficiency iii) participation over authority. iv) Workers now prefer flexible working hours to fixed time schedule. v) Level of education in recent years is comparatively very higher. Increased formal education has led to the change of attitude of the employees.

4. Changing demands of employer: changes always are not on the side of employees. Organizations also undergo changes and consequently their demands on employees will also change. The information technological revolution and neck to neck marketing competition of most of the organizations due to globalization demand that the existing employees adopt to the ever-changing work situation and learn new skills, knowledge etc to cope with the new changes.

5. Government and Legal factors: Until 1940 the government was not involved or interested regarding the problems of labor or industry. But the need for Govt., interference arose out of the belief that Government is the custodian of industrial and economic activities. The role of the government in business has after 1991 with the announcement of economic liberalization. However awareness of legislations is very important like the Factory Act, 1948, Trade Union act 1962, Payment of wages Act 1936, The Minimum Wages Act 1923, The Payment of Bonus Act 1965, The Employment Exchange Act, Standing Order Act 1946, Maternity Benefit Act 1961, and The Apprentice Act 1961. All these acts if not complied with can get the organization into deep trouble.

6. Customers: Organizations produce products or render services for the ultimate consumption use by the customer. In other words organizations depend upon customers for their survival and growth. Customers revolt against employees, if the services rendered are less qualitative. The banks face such type of challenges. Customers may develop a negative attitude towards the organization, if it does not follow the social policies of the country. Hence the customers pose a challenge special ally in service industry.

7.

Social factors: Social environment consists of class structure, mobility social

roles social values nature and development of social institutions caste structure and occupational structure, traditions, religion culture etc. To cater to everyones requirement and keep them happy is a big challenge faced by HR today.

Give a brief outline of the Human Resource Planning System. What is Job Evaluation?
Ans.a. Human resource planning means deciding the number and type of the human resources required for each job, unit and the total company for a particular date in order to carry out organizational activities. It is a process by which an organization moves from its current manpower position to its desired manpower position. It is influenced by the strategic management of the co.

STRATEGY Expansion Diversification

HUMAN RESOURCE PLANNING Additional human resources of existing categories. Additional human resources of different categories Reduction of human resources of managerial

Acquisitions and Mergers Retrenchment

positions

Reduction of human resources of almost all the

categories through VRS and other means Low Cost Leadership Differentiation Strategy Reduction of human resources Additional human resources of different categories.

Purpose of Human Resource Planning.

To recruit and retain the human resource of required quantity and quality.

To foresee the employee turnover and make the arrangements for minimizing turnover and filling up of consequent vacancies. To foresee the impact of technology on work. To meet the needs of the programmers of expansion, diversification etc. To improve the standards, skill knowledge, ability discipline etc.

To access the surplus or shortage of human resources and take measures accordingly. To maintain congenial industrial relations by maintaining optimum level and structure of human resources. To minimize imbalances caused due to non-availability of human resources of the right kind, right number in the right time and right place. To make the best use of its human resources To estimate the cost of human resources.

Important Elements of Human Resource Planning.

Analyzing Corporate and unit level strategies

Demand Forecasting: Forecasting the overall human resources requirements in accordance with the organizational plans. Supply Forecasting: Obtaining the data and information about the present inventory of human resources and forecast the future changes in the human resources inventory. Estimating the net human resources requirements In case of future surplus, plan for re-deployment, retrenchment and lay off.

In case of future deficit, forecast the future supply of human resources from all sources with reference to plans of other companies. Plan for recruitment, development and internal mobility if future supply is more than or equal to net human resources requirements. Plan to modify or adjust the organizational plan if future supply is more than or equal to net human resource requirements. Plan to modify or adjust the organizational plan if future supply will be inadequate with reference to future net requirements.

Q b. What is Job Evaluation? Ans. b. Job Evaluation is the process of determining by observation and study and reporting pertinent information relating to the nature of a specific job. It is the determination of the tasks which comprise the job and of the skills, knowledge, abilities and responsibilities of the worker of a successful performance and which differentiates one job from all others. It is concerned with arrangement of jobs in order of relative value within a given organization. Once jobs have been evaluated it is then possible to harness a wage or salary structure to the established hierarchy.

Steps to overcome Resistance to Change. Write short notes on different methods of on the job training
Ans a. Although change is inevitable it is a common experience that employees resist change whether in the context of their pattern of life or in the context of their situation in the organization. The best eg. Is resistance of employees to computerization. Change of and type requires readjustment. Man always fears the unknown and a change represents the unknown.

Management is said to be an agent of change and has to introduce change successfully. Management has to take the following steps to implement change successfully.

Participation of Employees: Before introducing any change the employees should be consulted and the purpose of change should be made known to them. Sufficient time should be given for discussing the pros and cons to the employees. Planning for Change: The change should be planned by the Management. Employees should get an opportunity for planning and installing the change. This will help the group affected to accept and understand the need for change.

Protecting Employees Interest: Management should ensure that employees are protected from economic loss, loss in status or personal dignity. Group Dynamics: Group dynamics refers to the ever changing interactions and adjustments in the mutual perceptions and relationships among members of the groups. Such associations are powerful instruments which facilitates or inhibit adaptation to change. The management has to positively articulate such groups. Cautious and Slow Introduction: The HR manager should cautiously and slowly introduce change. He should not suddenly and abruptly introduce change. He must aim

bring about awareness of change and construct an attitude of welcoming change. Change must be introduced in sequential parts, the results must be reviewed and required adjustments have to be if required. Positive Motion: The HR Manager should use the policy of positive motivation to counteract negative resistance. Proper training and technical knowledge should be imparted to the employees. The leadership style would be supportive and human oriented. Sharing the Benefits of Change: Any change whether technical, social or economic will least resisted by the employees if the management permits the employees to share the benefits which will arise out of change. Training and Development: Based on the change the job should be redesigned. Management should train the employees before hand and prepare the employees to invite change. Normally trained and developed employees will not resist change. They would feel empowered with their enriched skills and knowledge. Career Planning and Development: The HR Manager should plan careers of employees, move them to higher levels and develop them. Organisation Development: HR Manager should also look into the psychological and behavioural areas of the employee with a view to achieve organizational effectiveness. Employees with enriched behaviour welcome change.

b. Write short notes on different methods of on the job training.

Ans b. On-the-job training, also known as job instruction training is the most commonly used method. Under this method the individual is placed on a regular job and taught the skills necessary to perform the job. The trainee leans under the supervision and guidance of a qualified worker or instructor. On the job training has the advantage of giving first hand in knowledge and experience under the actual working conditions. While trainee learns how to perform a job, he is also a regular worker rendering the

services for which he is paid. On the job training includes job rotation, coaching, job instruction or training through step by step and committee assignments.

a. Job Rotation: This type of training involves the movement of the trainee from one job to another. The trainee received job knowledge and gains experience from his supervisor or trainer in each of the Different job assignments. Though this method of training is common in training managers for general Management positions, trainees can also be rotated from job to job in workshop jobs. This method Gives an opportunity to express his own ideas.

b. Coaching: the trainee is placed under a particular supervisor who functions as a coach in training the individual. The supervisor provides feedback to the trainee on his performance and offers him some suggestions for improvement. Often the trainee shares some of the duties and responsibilities of the coach and relieves him of his burden. A limitation of this method is training is that the trainee may not have the freedom or opportunity to express his own ideas. c. Job Instruction: This method is also known as training through step by step. Under this method the trainer explains to the trainee the way of doing jobs, job knowledge and skills and allows him to do the job. The trainer appraises the performance of the trainee, provides feedback information and corrects the trainee.

d. Committee Assignments: Under the committee assignment, a group of trainees are given and asked to solve an actual organizational problem. The trainees solve the problem jointly. It develops team work.

Describe the profile of a demotivated worker. Write short notes on the importance of succession planning.
Ans. a. A demotivated worker often shows sign of low morale. Generally not noticed till it is obviously low or when something has gone amiss. By the time the management recognizes the fact that worker is demotivated, it is faced with one crisis or another. Perceptive managers are therefore constantly on the look out for clues to any deterioration in the morale of the employees.

Among the more significant of the warning signals of a demotivated worker are:

1. 2. 3. 4.

High rate of absenteeism Tardinees High labour turnover Strikes and sabotage

5. Lack of pride in work and 6. Wastage and spoilage 7. No job satisfaction 8. Many grievances 9. Does not follow rules and regulations of the company. 10. No Team building spirit hence contribution towards achieving organization goals is very low. 11. Increases Accidents

To curb demotivation the cause should be detected. It may be that the policies or practices of the company are defective, or that if executives are at fault, or that the views of those workers who are demodulated do not match with those of the company or its executives. May the managers are committing a mistake and accepting it. The demotivated worker should be counseled. He should be explained the responsibilities and rewards clearly.

b. Write short notes on the importance of succession planning. Ans. b. Succession planning is to identify, develop and make the people ready to occupy higher level jobs as and when they fell vacant. Succession may be from internal employees or external people. Organizations Appraise employee potentialities, identify training gaps for future vacancies, develop them for higher and Varied jobs.

The scope of succession plan would be more when the organization grows steadily and employees have Potentialities to take up higher responsibilities. Successions planning practices followed by various Companies:

Sr. 1. 2. 3. 4. 5. 6.

Company GE Capital, Lucent technologies Eli Lilly Clorox GE Glaxo Wellcome Novartis

Succession Planning Practices Adopted Weigh key leadership characteristics accordingly to company culture and values Align succession plans with the corporate culture to create a foundation for success. Use Performance Metric Tools that are aligned with corporate culture to organize top potentials Customize pieces of the succession planning process to fit individual business units Conduct a division by division succession planning process Match succession planning and development

processes to emerging trends in corporate culture.

What are the organization factors needed to support an effective performance appraisal system. Write short notes on Assessment Centre
Ans .a. Performance appraisal is a method of evaluating the behaviour of employees in the work place normally including both the quantitative and qualitative aspects of job performance. Performance refers to the degree of accomplishment of the tasks that make up an individuals job. It indicates how ell an individual is fulfilling the job demands.

Every organization has to decide upon the content to be appraised before the programme is approved on the basis of job analysis. The content to be appraised may vary with the purpose of appraisal and type and level of employees.

The key factor in an organization to support an effective performance appraisal system is as follows: Organizational planning based on potentialities of human resources.

Human Resource Planning based on weakness, strengths and potentialities of human resources. Organizational effectiveness through performance improvement Fixation and refixation of salary, allowances, incentives and benefits Original placement or placement adjustment decisions

Identifying training and development needs and to evaluate effectiveness of training and development

Needs and to evaluate effectiveness of training and development programmes Career planning and development and movement of employees

The indicators of a successful performance appraisal system at ICODE Software are: - Culture of the system Employees fully trust the system Employees treat the system as a means to evaluate their arrears of improvement Employees do not see the system as a mere assessment tool Openness and transparency in the organization

Sr. 1. 2. 3. 4.

Company Xerox Toyota Federal Express Fed Ex

Performance Appraisal Provide a core set of metrics for use across organization Focus performance reviews on goals rather than numbers to ensure employee alignment Daily Performance Measurement Reporting. CEO team weekly analysis review. Design a balanced scorecard performance measurement system

Q.b. Write short notes on Assessment Centre. Ans. b. 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.

What are the different forms of organizational structure. Distinguish between Induction and Orientation Systems
Ans. a. Organisations are economic and social entities in which a number of persons perform multifarious task in order to attain common goal. These objectives are best met collectively. But it has to be structured so as to achieve specific ends. This structure is known as an organizational structure and can be differentiated into 3 types. Broad Banding* (hierarchy Organisational structure in Sr. 1950s 1. Multi layers Manufacturing/labour 2. Intensive 3. 4. 5. Autocratic Centralized Tightly held ownership Organisational structure in 1950s Flat/delayered Feed forward and very less control Team Focused Adaptive/Mobility Flexible containing smaller number of level or grades Few levels Empowerment/ownership Pay the person based on Merit Horizontal reinforces Few Rules

6. Individual contributors Decentralized Market Driven 7. Narrow Responsibilities Externally focused .b. Distinguish between Induction and Orientation Systems. Sr. Induction Orientation Introducing the new employee who is designated as a probationer to the job, job location, surroundings, organization and various Orientation is getting familiar with the policies 1. employees. and practices followed in the Company. The new employee has to report to the HR Department at stipulated date and time. From Induction is the process of receiving thereon he shall be guided by the HR and welcoming an employee when Chief/Executive. He will be given brochures he first joins a company about the describing the organizations history, products environment of the job and the organization in order to make the new employee acquainted and philosophy. Review of the overall structure, authority structure and policies and practices of the company.

2.

3.

4. 5.

Gives a sense of belonging and commitment to the new employee Attaching a colleague to the new employee to reduce the new employee anxiety. Providing written and documented information through CD/floppies. If the first impression is good then it helps the new employee to adjust to the work quickly and the

Personnel/HR department will discuss company benefits. New employee is to fill out health, tax and other relevant forms. Tour of the main building and auxiliary facilities. Introduction to the workplace and the dept head and co-workers.

Detailed discussion with the Chief Executive

6.

supervisors time is saved to a great HRM /Dept Head about dailyjobs routine and extent. department policies and rules. New employee on his own to get familiarized with the job.

Write short notes on Job Description, Training Needs Analysis, Employee Manual, Organization Downsizing, Team Effectiveness
Ans a. Job Description: Job description is an important document which is basically descriptive in nature and contains a statement of job analysis. It serves to identify a job for continuation by other job analysts. It tells us what should be done, why it should be done and where it should be performed. The job description should indicate the scope and nature of the workincluding all important relationships. The job description should be clear regarding the work of the position, duties etc. More specific words should be selected to show (a) the kind of work (b) the degree of complexity (c) the degree of skill required (d) the extend to which problems are standardized (e) the degree and type of accountability. (f) Supervisory responsibility should be shown to the incumbents. (g) The basic requirement, experience, works wise, age qualifications etc., should be stated very clearly.

And b. Training Needs Analysis: Training needs are identified on the basis of organizational analysis, job analysis and manpower analysis. Training programme, training methods and course content are to be planned on the basis of training needs. Training needs are those aspects necessary to perform the job in an organization in which is lacking attitude/aptitude, knowledge and skill.

Training needs = Job and organizational requirement-Employees Specifications

Methods used in Training Need Analysis. Sr. 1. 2. 3. 4. 5. 6. 7. 8. 9. Group or Organizational Analysis To identify Organizational goals and objectives Personnel/skill inventories Organizational Climate indices Efficiency indices Exit interviews MBO or work planning systems Quality circles Customer survey/satisfaction data Consideration of current and projected changes Individual Analysis Performance appraisal Work sampling Interviews Questionnaires Attitude survey Training progress Rating scales Observation of behavior

Ans. c. Employee Manual: The Employee Manual is a document that an employee can refer to for any kind of query about the rules and guidelines of an organization. The Employee Manual contains the following : History, growth, organisation and management, products, market, customers etc. of the company. Basic conditions of employment hours of work, shift, holidays, retirement benefits. Pay, allowances, deductions. Sickness rules, information pay sick leave.

Leave rules casual, special, earned holidays, vacation. Work rules work-load, use of materials, equipment, and machine. Disciplinary rules and procedure. Grievance procedure. Career path, promotion channel. Unions, negotiating machinery. Education, training and development facilities. Health, Safety, medical care arrangements. Canteen and restaurant facilities. Social benefits and welfare measures. Telephone calls and correspondence. Traveling and subsistence expenses. Uniforms, clothing. Various employees their designations position in the organisation.

Ans d. Organisational Downsizing: When there is a surplus of labour the organization is faced with a problem of downsizing the organization. Because maintaining surplus of labour will eat into the profits of theCo. It is not easy to pay employees without extracted work from them. In such cases the organization is faced with a problem of using the existing surplus for some higher category of work by giving them training or employing them with their sister concern or simply giving the employees a golden handshake through Voluntary Retirement Scheme (VRS). Another way of downsizing is delayering the organization and rectifies the situation of overstaffing.

Ans e. Team Effectiveness: Team effectiveness is the result of team work which consists of a group of jobs that are linked and interconnected with each other for the purpose of performing a total operation. The total operation is assigned to a group of employees. Though each employee is allotted a job in the team, he is expected to take up the job of other employees when they fail to do it perfectly. Thus jobs in a team overlap with each other. Teamwork gains more significance rather than individual jobs. In fact individual jobs are losing their relevance in the re-engineered businesses, organizations based on supply chain management. Team effectiveness is essential to serve the customer completely. These days organizations started designing teams and analyzing team work. Most recent organization has realized that teamwork produces

better results than the performance of individual work. Infact practices of Enterprise Resource Planning (ERP), Business Process Re-engineering (BPRE) and Supply Chain Management require teamwork. The impact of synergy results in high productivity of teamwork than that of the total of individual employees. Team effectiveness pertains to minimum acceptable human qualities and relationships necessary to perform all kinds of activities in a team.

What are the special problems faced by Indian Corporates in Making Human Resource Management functions more successful?
Ans. Indian Companies basically face two factors viz Internal and External that pose a problem in the smooth functioning of HRM function.

External Factors. Government policies: Policies of the government like labour policy, industrial relations policy, policy towards reserving certain jobs for certain communities.

Level of Economic Development: Level of economic development determines the level of HRD in the country and thereby the supply of human resources in the future in the country.

Business Environment: External business environmental factors influence the volume and mix of production thereby the future demand for human resources.

Information Technology: Technology has made an amazing shift in the way to conduct business. These shifts include business process re-engineering, supply chain management etc. It also reduces obsolete machinery and traditional human resources.

However in latter stages it eliminates many categories of labour and reduces existing human resources.

Level of Technology: Level of technology determines the kind of human resources required.

International factors: International factors like the demand for and supply of human resources in various countries.

Internal factors:

Company Strategies: Company policies and strategies relating to expansion, diversification, alliances etc. determine the human resources demand in terms of quality and quantity.

Human Resource Policies: Human resource policies of the company regarding quality of human resources, compensation level, quality of work life etc.

Job Analysis: Fundamentally human resources plan is based on job analysis. Job description and job specification.

Time Horizons: Companies in an unstable competitive environment can plan for only short tern range. They have to face new competitors. Rapid change in socio and economic conditions. Small organization size, poor management practices. Unstable product/service demand patterns.

Companys Production/Operations Policy: Companys policy regarding how much to produce and how much to buy from outside to prepare a final product influences the number and kind of people required.

Trade Unions: Influence of trade unions regarding the number of working hours per week, recruitment sources etc. affect human resource management function.

What are the different sources of recruitment? Explain the merits and demerits of each
Ans. The sources of recruitment are broadly divided into internal sources and external sources consisting of the following:

Internal sources of Recruitment:

1. Present Permanent Employees : Organizations consider the candidates from this source for higher level of jobs due to availability of most suitable candidates for jobs relatively or equally to external sources, to meet the trade union demands and due to the policy of the organization to motivate the present employees.

2. Present temporary/casual Employees: Organizations find this source to fill the vacancies relatively at the lower level owing to the availability of suitable candidates or trade union pressures or in order to motivate them on present job.

3. Retrenched or Retired Employees: Employees retrenched due to lack of work are given employment by the organization due to obligation, trade union pressure etc. Sometimes they are re-employed by the organization as a token of their loyalty to the organization or to postpone some interpersonal conflicts for promotion.

4. Dependents of Deceased, Disabled, retired and present employees: Some organizations function with a view to developing the commitment and loyalty of not only the employee but also his family members.

5. Employee Referrals: Present employees are well aware of the qualifications, attitudes, experience and emotions of their friends and relatives. They are also aware of the job requirements and organizational culture of their company. As such they can make preliminary judgment regarding the match between the job and their friends and relatives.

External Sources of Recruitment

6 Campus Recruitment: These candidates are directly recruited by the Co; from their college/educational institution. They are inexperienced as far as work experience is concerned.

1 Private Employment Agencies/Consultants: Public employment agencies or consultants like ABC Consultants inIndia perform recruitment functions on behalf of a client company by charging fees. Line managers are relieved from recruitment functions and can concentrate on operational activities.

2 Public Employment Exchanges: The Government set up Public Employment Exchanges in the country to provide information about vacancies to the candidates and to help the organization in finding out suitable candidates. As per the Employment Exchange act 1959, makes it obligatory for public sector and private sector enterprises inIndia to fill certain types of vacancies through public employment exchanges.

3 Professional Organizations: Professional organizations or associations maintain complete bio-data of their members and provide the same to various organizations on requisition. They act as an exchange between their members and recruiting firm.

4 Data Banks: The management can collect the bio-data of the candidates from different sources like Employment Exchange, Educational TrainingInstitutes, candidates etc and feed them in the computer. It will become another source and the co can get the particulars as and when required.

5 Casual Applicants: Depending on the image of the organization its prompt response participation of the organization in the local activities, level ofunemployment, candidates apply casually for jobs through mail or handover the application in the Personnel dept. This would be a suitable source for temporary and lower level jobs.

6 Similar Organizations: Generally experienced candidates are available in organizations producing similar products or are engaged in similar business. The Management can get potential candidates from this source.

7 Trade Unions: Generally unemployed or underemployed persons or employees seeking change in employment put a word to the trade union leaders with a view to getting suitable employment due to latter rapport with the management.

8 Walk In: The busy organization and rapid changing companies do not find time to perform various functions of recruitment. Therefore they advise the potential candidates to attend for an interview directly and without a prior application on a specified date, time and at a specified place.

Consult In: the busy and dynamic companies encourage the potential job seekers

to approach them personally and consult them regarding the jobs. The companies select the suitable candidates and advise the company regarding the filling up of the positions. Head hunters are also called search consultants.

10 Body Shopping: Professional organizations and the hi-tech training develop the pool of human resource for the possible employment. The prospective employers contact these organizations to recruit the candidates. Otherwise the organizations

themselves approach the prospective employers to place their human resources. These professional and training institutions are called body shoppers and these activities are known as body shopping. The body shopping is used mostly for computer professionals. Body shopping is also known as employee leasing activity.

11 Mergers and Acquisitions: Business alliances like acquisitions, mergers and take over help in getting human resources. In addition the companies do also alliances in sharing their human resource on adhoc basis.

12 E_recruitment: The technological revolution in telecommunications helped the organizations to use internet as a source of recruitment. Organizations advertise the job vacancies through the world wide wed (www). The job seekers send their applications through e-mail using the internet.

13 Outsourcing: Some organizations recently started developing human resource pool by employing the candidates for them. These organizations do not utilize the human resources; instead they supply HRs to various companies based on their needs on temporary or ad-hoc basis.

Merits and Demerits of Internal Sources of Recruitment

Merits of Internal Sources of Sr. Recruitment

Demerits of Internal Sources of

1. 2. 3.

Recruitment Trade union pressure may not always give the right candidate for the job. The Motivates present employees when management may have to consider some they are upgraded internally. concessions. Retrenched workers get an opportunity Managements gets a chance to postpone to work again. promotion due to interpersonal conflicts. Dependents of the deceased get a job Excessive dependence on this source

easily

4. 5. 6. 7.

Morale of employees is improved Loyalty, commitment, security of present employees can be enhanced Cost of recruitment, training, induction, orientation, etc is reduced Trade unions can be satisfied.

results in in-breeding, discourages flow of new blood into the organization. The organization becomes dull without innovations, new ideas, excellence and expertise.

Merits and Demerits of External of Recruitment

Sr. 1. 2.

Merits of External Sources of Recruitment The candidates with skill, knowledge talents etc are generally available.

Demerits of External Sources of Recruitment Campus recruited employees lack work experience.

3. 4. 5. 6. 7. 8. 9.

Cost of recruitment is high and there is no Cost of employees can be minimized. confidentiality. Specified vacancies have to be filled by Expertise, excellence and experience in candidates referred by employment other organizations can be easily exchanges which do not allow other brought into the organization. candidates to be eligible. Existing sources will also broaden their personality. Human Resource mix can be balanced Qualitative human resource benefits the organization in the long run. Reduction in time for recruitment Increase in the selection ratio i.e. recruiting more candidates. HR professionals can concentrate on strategic issues.

Discuss the importance of training and development in organizations. How do you identify the training needs in an organization? Describe the different methods of training.
Ans. Importance of training and development in organizations : The importance of HRM to a large extend depends on human resources development and training is its most important technique. No organization can get a candidate who exactly matches with the job and the organizational requirements. Hence training is important to develop the employee and make him suitable to the job. Training works towards value addition to the company through HRD. Organisational efficiency, productivity, progress and development to a large extend depends on training. If training is not provided it leads to performance failure of the employees. Organizational objectives, like stability, viability and growth can also be achieved through training. Training is important as it constitutes a significant part of management control. Training enhances 4Cs viz competence, commitment, creativity and contribution for the organization.

Identification of training needs: Training needs are identified on the basis of organizational anaylsis, job analysis and manpower analysis. Training needs are those aspects necessary to perform the job in an organization in which employee is lacking attitude/aptitude, knowledge and skills. Basically there are two type of analysis done to identify the training. One is the Organizational Analysis and the other Individual Analysis.

Training needs = Job and organizational requirement-Employees specifications

Identification of Training Needs Sr. Group or Organizational Analysis To identify Organizational goals and 1. objectives 2. Personnel/skill inventories 3. Organizational Climate indices 4. Efficiency indices

Individual Analysis Performance appraisal Work sampling Interviews Questionnaires

5. 6. 7. 8. 9.

Exit interviews MBO or work planning systems Quality circles Customer survey/satisfaction data Consideration of current and projected changes

Attitude survey Training progress Rating scales Observation of behavior

The different methods of training: There are basically two methods of training. 1) On-the-Job Methods and 2) Off-the jobMethods.

TRAINING METHODS On the Job Methods 1. Job Rotation 2. Coaching 3. Job Instruction 4. Training through Step by Step 5. Committee Assignments

Off The Job Methods Vestibule Training Role Playing Lecture Methods Conference or discussion Programmed Instruction

On the Job Training Methods : This type of training is also known as job instruction training. Under this method the individual is place on a regular job and taught the skills necessary to perform that job The trainee learns under the supervision and guidance of a qualified worker or instructor. On the job training has the advantage of giving first hand knowledge and experience under the actual working conditions. While the trainee learns how to perform a job, he is also a regular worker rendering the services for which he is paid. The emphasis is placed on rendering services in the most effective manner rather than learning how to perform the job.

1. Job Rotation : This type of training involves the movement of the trainee from one job to another. The trainee receives job knowledge and gains experience from his supervisor or trainer in each of the different job assignments. Though this method of

training is common in training managers for general management positions, trainees can also be rotated from job to job in workshop jobs. This method gives an opportunity to the trainee to understand the problems of the employees on other jobs and respect them.

2. Coaching : The trainee is placed under a particular supervisor who functions as a coach in training the individual. The supervisor provides feedback to the trainee on his performance and offers some suggestions for improvement. Often the trainee shares some of the duties and responsibilities of the coach and relieves him of his burden. A limitation of this method of training is that the trainee may not have the freedom or opportunity to express his own ideas.

3. Job Instruction : This method is also known as training through step by step. Under this method, the trainer explains to the trainee the way of doing the jobs, job knowledge and skills and allows him to do the job. The trainer appraises the performance of the trainee, provides feedback information and corrects the trainee.

4. Committee Assignments : Under the committee assignments a group of trainees are given and asked to solve an actual organizational problem. The trainees solve the problem jointly. It develops team work.

Off the Job Methods : Under this method of training, the trainee is separated from the job situation and his attention is focused upon learning the material related to his future job performance. Since te trainee is not distracted by job requirements, he can place his entire concentration on learning the job rather than spending his time in performing it. There is an opportunity for freedom of expression for the trainees.

1. Vestibule Training : In this method, actual work conditions are stimulated in a class room. Material files and equipments which are used in actual job performance are also

used in training. This type of training is commonly used for training personnel for clerical and semi skilled jobs. The duration of tis type of training ranges from days to a few weeks. Theory can be related to practice in this method.

2. Role Playing : It is defined as a method of human interaction that involves realistic behaviour in imaginary situations. This method of training involves action, doing and practice. The participants play the role of certain characters such as the production manager, mechanical engineer, superitentents, maintenance engineers, quality control inspectors, foremen, workers and the like. This method is mostly used for developing inter-personal interactions and relations.

3. Lecture Method : The lecture is a traditional and direct method of instruction. The instructor organises the material and gives it to a group of trainees in the form of a talk. To be effective, the lecture method must motivate and create interest among the trainees. An advantage of the lecture method is that it is direct and can be used for a large group of trainees. Thus costs and time involved are reduced. The major limitation of the lecture method is that it does not provide for training effectively.

4. Conference or Discussion : It is a method in training the clerical, professional and supervisory personnel. This method involves a group of people who pose ideas, examine and share facts, ideas and data, test assumptions and draw conclusions, all of which contribute to the improvement of job performance. Discussion has the distinct advantage over lecture method as it involves two way communication. The participants feel free to speak in small groups. The success of this method depends on the leadership qualities of the person who leads the group.

5. Programmed Instruction : In recent years this method has become popular. The subject matter tobe learned is presented in a series of carefully planned sequential units. These units are arranged from simple to more complex levels of instructions. The

trainee goes through these units by answering or filling the blanks. This method is expensive and time consuming.

Define Motivation. Discuss any two theories of Motivation

Ans. Motivation is derived from the word Motive. A motive is an inner state that energizes, activates or moves and directs or channels behavious towards goals. It represents an unsatisfied need which creates a state of tension or disequilibrium causing the individual to move in a goal directed pattern towards restoring a state of equilibrium by satisfying the need. Motivation is a process that starts with a physiological deficiency or need that activates behavious or a drive that is aimed at a goal or incentive. Thus the process of motivation lies in the meaning of and relationship among needs, drives and incentives.

The Basic Motivation Process = Needs Drives Goals/Incentives (Deficiency) (Deficiency with Direction) Reduction of drives and

fulfills deficiencies. It is a bare fact that most of us use only a small portion of our mental and physical abilities. To exploit the unused potential in people they are to be motivated. Needless to say that such exploitation results in greater efficiency, higher production and better standard of living of the people. There are basically two types of motivation vis 1) Positive Motivation and Negative Motivation.

1. Positive Motivation: People are said to be motivated positively when they are shown a rewards and the way to achieve it. Such a reward may be financial or non financial. Monetary motivation may include different incentives, wage plans, productive bonus

schemes etc. Non monetary include praise for work, participation in management, social recognition. Monetary incentives provide the worker a better standard of life while non monetary incentives satisfy the ego of a man. 2. Negative Motivation: It is induced by installing fear in the minds of people; one can get the desired work done. In this method of motivation fear of consequences of doing something or not doing something keeps the worker in desired direction. This method has got several limitations. Fear Creates frustration, a hostile state of mind and an unfavorable attitude towards thejob which hinder efficiency and productivity. So the use of it should be kept minimum.

Theories of Motivation: There are several theories on motivation. The significant among them are Maslows Hierarchy of Needs, Herzbers Two Factor Theory, Vrooms Expectancy Theory, Porter and Lawlers Expectancy Theory and Equity Theory of Work Motivation. We shall discuss 1. Maslows Theory of Hierarchy of Needs and 2. Herzberg Two Factor Theory.

1. Maslows Theory of Hierarchy of Needs : According to Maslow, human needs form a hierarchy, staring at the bottom with the physiological needs and ascending to the highest need of self actualization. He says when one set of needs is satisfied; they no longer work as motivators as a man seeks to satisfy the next higher level of needs.

__________________________________________________ Need for Self-Actualization __________________________________________________ Physiological Needs __________________________________________________ Esteem Needs

__________________________________________________ Social Needs -Affiliation or Acceptance Needs __________________________________________________ Security of Safety Needs __________________________________________________ Physiological Needs __________________________________________________ MASLOWS HIERACHYOF NEEDS ==========================================

The Need Hierarchy:

1. Physiological Needs: These are the basic necessities of human life, food, water, warmth, shelter, sleep and sexual satisfaction. Maslow says that until these needs are satisfied to the required level, man does not aim for the satisfaction of next level of needs. As far as work environment is concerned, these needs include basic needs like pay, allowance, incentives and benefits. 2. Security/Safety Needs: These refer to the need to be free of physical danger or the feeling of loss of food, job or shelter. When the physiological needs are satisfied, man starts thinking of the way by which he can satisfy his safety needs. Security needs spring up the moment he makes an effort in the direction of providing himself the source of continuity of physiological needs. In a work environment these needs include conformity, security plans, membership in unions, severance pay etc. 3. Social Needs: (Affiliation or Acceptance Needs) When the physiological and security needs are satisfied, these social needs begin occupying the mind of a man. This is exactly why he looks for the association of other human beings and strives hard to be

accepted by this group. Social needs at the work place include: Human relations, formal and informal work groups. 4. Esteem Needs: These needs are power, status and self confidence. Every man has a feeling of importance and he wants others to regard him highly. These needs makes people aim high and make them achieve something great. These needs for employees include status symbols, awards, promotions, titles etc. 5. Self Actualization Needs: This is the highest need in the hierarchy. This refers to the desire to become what one is capable of becoming. Man tries to maximize his potential and accomplish something, when this need is activated in him.

2. Herzberg Theory of Motivation: Deals with basically two factors Dissatisfiers and Satisfiers.

DISSATISFIERS: The first group (factor) consists of needs such as company policy and administration, supervision, working conditions, interpersonal relations, salary, status, job security and personal life. These factors he called DISSATISFIERS and not motivators. Their presence or existence does not motivate in the sense of yielding satisfaction, but their absence would result in dissatisfaction. They are also known as hygiene factors.

SATISFIERS: The second group are the satisfiers in the sense that they are motivators which are related to job content. It includes factors of achievement, recognition, challenging work, advancement and growth in job. Their presence yields feeling of satisfaction or no satisfaction but not dissatisfaction.

Another WAY to present the above question Herzbergs Two Factor Theory: Classification of Maintenance and Motivational Factors

Maintenance Factors or Sr. Dissatisfiers or Hygiene Factors

Motivational Factors or Satisfiers

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Job Content Extrinsic Factors Company Policy and Administration Quality of supervision Relations with superiors Peer Relations Relations with subordinates Pay Job security Work Conditions

Job Content Intrinsic Factors Achievement Recognition Advancement Work Itself Possibility of Growth Responsibility

11. Status

What are the objectives of Performance Appraisal System What are sources of error in the appraisal process
Ans. Performance appraisal is a method of evaluating the behaviour of employees in the work place normally including both the quantitative and qualitative aspects of job performance. Performance refers to the degree of accomplishment of the tasks that make up an individuals job. It indicates how ell an individual is fulfilling the job demands.

Every organization has to decide upon the content to be appraised before the programme is approved on the basis of job analysis. The content to be appraised may vary with the purpose of appraisal and type and level of employees Performance Appraisal is a method of evaluating the behaviour of employees in the workplace.

Objectives of Performance Appraisal System:

1. To create and maintain a satisfactory level of performance.

2. To contribute to the employee growth and development through training, self and management development programmes. Tata Power aims at employee development through performance appraisal. 3. To help the superiors to have a proper understanding about their subordinates 4. to guide the job changes with the help to continuous ranking 5. To facilitate fair and equitable compensation based on performance. 6. To facilitate for testing and validating selection tests, interview techniques through comparing their scores with performance appraisal ranks. 7. to prove information for making decisions regarding lay off, retrenchment etc as in the case of Hyundai Engineering

HYUNDAI 1,00O JOBS TO GO CUT In an attempt to counter continuing employee low performance and business troubles, Hyundai engineering and Construction announced its decision to lay off employees and cut 1000 jobs.

Sources of Error in Performance Appraisal:

1. Rating Biases: It is a subjective measure of rating performance which is not verifiable by others and has the opportunity for bias. There rater biases include: a) the halo effect b) the error of central tendency c) the leniency and strictness biases d) personal prejudice and e) the recency effect.

1. Halo Effect: it is the tendency of the raters to depend excessively on the rating of one trait or behaviourial consideration in rating all other traits or behavioural considerations. One way of minimizing the halo effect is appraising all employees by one trait before going to rate them on the basis of another trait.

2. The Error of Central Tendency: Some raters follow play safe policy in rating by rating all the employees around the middle point of the rating scale and they avoid rating the people at both the extremes scale. They follow play safe policy because of

answerability to the management or lack of knowledge about the job and person he is rating or has least interest in the job.

3. The Leniency and Strictness: the leniency bias crops when some raters have a tendency to be liberal in their rating by assigning higher rates consistently. Such ratings do not serve any purpose. Equally damaging is assigning consistently low rates.

4.

Personal Prejudice: If the rater dislikes any employee or any group, he may rate

them at the lower end, which may distort the rating purpose and affect the career of these employees.

5. The Recency Effect: The raters generally remember the recent actions of the employee at the time of rating them on the basis of these recent actions favourable or unfavourable-rather than on the whole activities.

How would you evaluate a training programme ? Does its evaluation have any bearing on its design?
Ans. The specification of values forms a basis of evaluation. The process of training evaluation has been defined as any attempt to obtain information on the effects of training performance and to access the value of training in the light of that information. The various methods of training evaluation are: 1. Immediate assessment of trainees reaction to the programme. 2. Trainees observation during the training programme. 3. Knowing trainees expectations before the training programme and collecting their views regarding the attainment of the expectations after the training 4. Seeking opinion of the trainees superior regarding his/her job performance and behaviour before and after training. 5. Evaluation of trainees skill level before and after the training programme. 6. Measurement of improvement in trainees on the job behaviour.

7. Examination of the testing system before and after sometime of the training programme. 8. Measurement of trainees attitudes after training programme. 9. Cost-benefits analysis of the training programme. 10. Seeking opinion of trainees colleagues regarding his/her job performance and behaviour. 11. Measurement of levels in absenteeism, turnover, wastage/scrap, accidents, breakage of the machinery during pre and post period of the training programme. 12. Seeking opinions of trainees subordinates regarding his/her job performance and behaviour

The Evaluation of a Training has bearing on its Design. It should be well defined in meeting specific objectives. The nomination of employees should be based on the need of training. The trainers should be qualified and experienced. The training calendar should be discussed with the manager. Training needs should be identified through job description, performance appraisal and potential appraisal discussions.

1. Reaction: The design of the training depends on the trainees reaction to the usefulness of coverage of the matter, depth of the course content, method of presentation, teaching methods etc. 2. Learning : Training programme, trainers ability and trainee ability are evaluated on the basis of quantity of content learned and time in which it is learned and the learners ability to use or apply the content he learned. All these factors depend on the Training Design. 3. Job Behaviour : The training design helps in identifying the manner and extent to which the trainee has applied his learning to his job. 4. Organisation : The training design helps in measuring the use of training, learning and change in the job behaviour of the department/organization in the form of increased productivity, quality, morale, sales turnover and the like. 5. Ultimate Value: It is the measurement of the ultimate result of the contributions of the training programme to the Company goals like survival, growth, profitability etc. and to the individual goals like development of personality and social goals like maximizing social benefits.

Write short notes on Job Rotation, Multi Skilling, Job Evaluation, Managing Change, Resolving Conflict
Ans a. Job Rotation: Job rotation refers to the movement of an employee from one job to the other. Jobs themselves are not actually changed, only the employees are rotated among various jobs. An employee who works on a routine/respective job moves to and works on another job for some hours/days/months and backs up to the first job. This measure relieves the employee from boredom and monotony, improves employees skills regarding various jobs, prepares the competent employees and provides competitive advantages to the company. These measures also improve workers selfimage and provide personal growth. However, frequent job rotations are not advisable in view of their negative impact on the organisation and the employee.

b. Multi Skilling : The transferring of executives from job to job and from department to department in a systematic manner is called Job Rotation. When a manger is posted to a new job as part of such a programme, it is not merely an orientation assignment. He has to assume the full responsibility and perform all kinds of duties. The ideal behind this is to give him the required diversified skills and a broader outlook which are very important at the senior management levels. It is upto the management to provide a variety of job experiences for those who have the potential for higher ranks before they are promoted. Job rotation increases the inter-departmental co-operation and reduces the monotony of work. It makes the executives in general management and does not allow them to confine themselves to their specialised field only.

c. Job Evaluation : 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.

d. Managing Change : The term Organisational Change implies the creation of imbalances in the existent pattern or situation. Adjustment among people, technology and structural set up is established when an organisation operates for a long time. People adjust with their jobs, working conditions, colleagues, superiors etc. Similarly, an organisation establishes relationship in the external environment. Change requires individuals and organisations to make new adjustments. Complexity and fear of adjustment gives rise to resistance and problem of change. Human resource is an important factor in relation to the adjustments among individuals as well as between the organisation and environment, as an organisation is mostly composed of people. Individual members can resist either individually or in a group. Change could be both reactive and proactive. A proactive change has necessarily to be planned to attempt to prepare for anticipated future challenges. A reactive change may be an automatic response or a planned response to change taking place in the environment.

e. Resolving Conflict : The methods of resolving conflicts generally include:

Methods of Resolving Conflicts | | | | | |

Investigation Mediation Arbitration/Adjunction

Conciliation

Voluntary Arbitration Compulsory

1. Investigation: This is conducted by a board or court appointed by the government. It may be voluntary or compulsory. If the investigation is conducted on an application by either or both the parties to the dispute it is voluntary. If the Government appoints a Court of Inquiry without the consent of the parties it is compulsory. Investigations analyse the facts and aim at an amicable solution. When the investigation is compulsory, the strikes and lockouts are required to be stopped and employers should not make any change in the conditions of employment.

2. Mediation: Another attempt to settle disputes is Mediation. In this method, an outsider assists the parties in their negotiations. It takes place with the consent of both the parties. The main aim of mediator is the settlement of disputes by bringing about a voluntary agreement. There may be three kinds of mediation: 1. The Eminent Outsider 2. Non-Government Board and 3. Semi Government Board.

If mediation is conducted skillfully and sympathetically then it can bring about the adjustments of differences that might otherwise contribute to stoppage of work.

3. Conciliation: The main objective of a conciliation and arbitration is to reunite the two conflicting groups in the industry in order to avoid interruption of production, distrust etc. Conciliation is a process by which representatives of both workers and employers are brought together before a third party with a view to persuading them to arrive at some sort of settlement. It is an extension of collective bargaining with third party assistance. Conciliation machinery consists of conciliation officer and board of conciliations. The conciliator induces the parties to a course of action. He plays the role of an innovator, protector, discussion leader, stimulator, advisor, face saver. He acts as a safety value and a communication link. The task of conciliation is to offer advice and make suggestions to the parties to the dispute on controversial issues.

4. Voluntary Arbitration: if the two parties to the dispute fail to come to an agreement, either by themselves or with the help of a mediator or conciliator, who agrees to submit the dispute to an impartial authority, whose decision, they are ready to accept. The essential elements in voluntary arbitration are : 1. The voluntary submission of dispute to an arbitrator. 2. The subsequent attendance of witness and investigations and 3. The enforcement of an award may not be necessary

5. Compulsory Arbitration/Adjudication: Where trade unions are weak the method of compulsory Arbitration is used. Compulsory Arbitration is utilized generally when the parties fail to arrive at a settlement through the voluntary methods. It is at times necessary and desirable. The objective of state intervention in the field of industrial relations should be to do social justice and make the weaker party equally strong to enable it ultimately to stand and survive on its own and settle its differences through negotiations and collective bargaining. Compulsory arbitration is one where the parties are required to arbitrate without any willingness on their part. Any one of the parties may apply to the appropriate governments to refer the dispute to adjudication machinery.

What is Job Design? How is it different from Job Analysis? Explain with suitable examples
Ans. Job design is defined as the process of deciding on the content of a job interms of duties, responsibilities of job holders; on the methods to be used in carrying out the job, in terms of techniques, systems and procedures and on the relationships that should exist between the job holder and his superiors, subordinates and colleagues. Factors affecting job design include: organizational factors, environmental factors and behavioural factors. Two important goals to job design are to meet the organizational requirements such as higher productivity, operational efficiency, quality of product/services etc. and to satisfy the needs of individual employees like interests, challenges, achievement or accomplishment etc. Finally the goal of the job design is to integrate the needs of the individuals with the organizational requirements. There are three important approaches to job design viz 1) engineering approach 2) human approach and 3) job characteristics approach.

Job Analysis is the process of determining, by observation and study and reporting pertinent information relating to the nature of a specific job. It is the determination of the tasks which comprise the job and of skills, knowledge, abilities and responsibilities required of the worker of a successful performance and which differentiate one job from all others.

Job Design It has an engineering approach which studies the work scientifically, and is based on scientific management principles. These principles seem to be quite rational and appealing as they point towards increased organizational performance. It has a human relations approach and

Job Analysis

Description of Work activties, like how is a task performed? Why is a task performed? When is a task performed? Interface with other jobs and equipments

recognizes the need to design the jobswhich are interesting and rewarding. It has a job characteristics approach which assumes that employees will work hard when they are rewarded for the work they do and when the work gives them satisfaction. Motivation, satisfaction and performance should be integrated in the job design. Jobs with skill variety, task identity, Procedures used. Analysis of Behaviours task significance, autonomy and feedback required on the job. Physical movements are called core job dimensions. and demands required to perform the job. The goal of job design is to integrate the needs of the individual with the organization requirements. Unlike job analyses which List of Machine Tools, Equipment and Work aims at studying the nature of the job etc. Aids used. Job Design has options like Job Rotation, Job enlargement, Job bandwidth, Job enrichment. Within Job Bandwidth there is Job Context. Physical working conditions. a narrow job design (multi layers, narrow Whether exposed to heat, dust, toxic authority and responsibility) and Broad job design (job satisfaction due to variety of task, empowerment, horizontal re-enforces and high productivity). substances. Indoor versus outdoor environment Organisational context. Social context. Work schedule. Incentives (financial and non financial) Personnel Requirements: Specific skills, specific education and training. Work experience. Physical characteristics. Aptitude.

What are the modern sources and techniques of Recruitment?

Ans. The modern sources of Recruitment are:

1. Employee Referrals: Present employees are well aware of the qualifications, attitudes, experience and emotions of their friends and relatives. They are also aware of the job requirements and organizational culture of their company. As such they can make preliminary judgment regarding the match between the job and their friends and relatives.

2. Campus Recruitment: These candidates are directly recruited by the Co; from their college/educational institution. They are inexperienced as far as work experience is concerned.

3 Private Employment Agencies/Consultants: Public employment agencies or consultants like ABC Consultants inIndia perform recruitment functions on behalf of a client company by charging fees. Line managers are relieved from recruitment functions and can concentrate on operational activities.

4 Public Employment Exchanges: The Government set up Public Employment Exchanges in the country to provide information about vacancies to the candidates and to help the organization in finding out suitable candidates. As per the Employment Exchange act 1959, makes it obligatory for public sector and private sector enterprises inIndia to fill certain types of vacancies through public employment exchanges.

5. Professional Organizations: Professional organizations or associations maintain complete bio-data of their members and provide the same to various organizations on requisition. They act as an exchange between their members and recruiting firm.

6 Data Banks: The management can collect the bio-data of the candidates from different sources like Employment Exchange, Educational Training Institutes, candidates etc and feed them in the computer. It will become another source and the co can get the particulars as and when required.

7 Casual Applicants: Depending on the image of the organization its prompt response participation of the organization in the local activities, level of unemployment, candidates apply casually for jobs through mail or handover the application in the Personnel dept. This would be a suitable source for temporary and lower level jobs.

8 Similar Organizations: Generally experienced candidates are available in organizations producing similar products or are engaged in similar business. The Management can get potential candidates from this source.

9. Trade Unions: Generally unemployed or underemployed persons or employees seeking change in employment put a word to the trade union leaders with a view to getting suitable employment due to latter rapport with the management.

10.Walk In: The busy organization and rapid changing companies do not find time to perform various functions of recruitment. Therefore they advise the potential candidates to attend for an interview directly and without a prior application on a specified date, time and at a specified place.

11.Consult In: the busy and dynamic companies encourage the potential job seekers to approach them personally and consult them regarding the jobs. The companies select the suitable candidates and advise the company regarding the filling up of the positions. Head hunters are also called search consultants.

12.Body Shopping: Professional organizations and the hi-tech training develop the pool of human resource for the possible employment. The prospective employers contact these organizations to recruit the candidates. Otherwise the organizations themselves approach the prospective employers to place their human resources. These professional and training institutions are called body shoppers and these activities are known as body shopping. The body shopping is used mostly for computer professionals. Body shopping is also known as employee leasing activity.

13.Mergers and Acquisitions: Business alliances like acquisitions, mergers and take over help in getting human resources. In addition the companies do also alliances in sharing their human resource on adhoc basis.

14.E_recruitment: The technological revolution in telecommunications helped the organizations to use internet as a source of recruitment. Organizations advertise the job vacancies through the world wide wed (www). The job seekers send their applications through e-mail using the internet.

15.Outsourcing: Some organizations recently started developing human resource pool by employing the candidates for them. These organizations do not utilize the human resources; instead they supply HRs to various companies based on their needs on temporary or ad-hoc basis.

Techniques of Recruitment: Recruitment techniques are the means or media by which management contacts prospective employees or provide necessary information or exchanges ideas in order to stimulate them to apply for jobs. Management uses different types of techniques to stimulate internal and external candidates.

Techniques of Recruitment are divided into two viz Traditional and Modern:

Traditional Techniques Promotions Transfers Advertising

Modern Techniques Scouting Salary & Perks ESOPs

Traditional Techniques of Recruitment:

1. Promotions: Most of the internal candidates would be stimulated to take up higher responsibilities and express their willingness to be engaged in the higher level jobs if the management gives them the assurance that they will be promoted to the next higher level. 2. Transfers: employees will be stimulated to work in the new sections or places if the management wishes to transfer them to the places of their choice. 3. Advertising: Advertising is a widely accepted technique of recruitment, though it mostly provides one way communication. It provides the candidates in different sources, the information about the job and company and stimulates them to apply for jobs. It includes advertising through different media like newspapers, magazines of all kind, television etc. The technique of advertising should aim at attracting attention of the prospective candidates ii) creating and maintaining interest and stimulating action by the candidates.

Management in order to achieve these objectives of advertising has to: Analyse job requirements Decide who does what Write the copy Design the advertisement Plan and select the media and Evaluate response.

Modern Techniques of Recruitment: 1. Scouting: Scouting means sending the representation of the organizations to various sources of recruitment with a view to persuading or stimulating the candidates to apply for jobs. The representatives provide information about the company and exchange information and ideas and clarify the doubts of the candidates.

2. Salary and Perks: Companies stimulate the prospective candidates by offering higher level salary, more perks, quick promotions etc. 3. ESOPs: Companies recently started stimulating the employees by offering stock ownership to the employees through their Employees Stock Ownership Programmes (ESOPs)

ESOP AT ALCATEL

Alcatel, the first every global stock option programme has received the highest percentage of subscriptions fromIndia. 84% of the Indian employees have taken up the offer. The stock option plan covered 50 countries and almost 60,000/- put of the total 1.2lakh employees participated in the plan. Alcatel offered 2.25 million shares and 9 million stock options under the programme. For each share subscribed, the employee had the right of four stock options and they were allowed to invest upto one fourth of the gross annual salary. ESOP stimulated may candidates to seek jobs in ALCATEL.

360 degrees Performance Appraisal mostly can do away with biased approach while assessing an employee. Do you agree with the above statement. Give your views.
Ans. Yes, it is true that 360 degrees of Performance Appraisal can do away with biased approach while assessing an employee. The appraiser may be any person who has thorough knowledge about the job content, contents to be appraised, standards of contents and who observes the employee while performing a job. The appraiser should be capable of determining what is more important and what is relatively less important. He should prepare reports and make judgements without bias. Typical appraisers are supervisors, peers, subordinates, employees themselves, user of service and

customers. Performance appraisal by all these parties is called 360 degree performance appraisal. Ponds, General Electric, Hindustan Lever Limited. Grasim, Colgate Palmolive, Hewett Packard, practice 360 degree performance appraisal. Appraisal is an appraisal which is an appraisal which is an unbiased way of appraisal and is conducted.

Examples of Performance Appraisal Xerox Toyota Federal Express Provide a core set of metrics for use across the organization. Focus performance reviews on goals rather than number to ensure employee alignment. Daily Performance Measurement Reporting. Design a Balanced Scorecard performance Fed Ex measurement system. Here the performance appraisal is not just done across the table. In this technique the employee is observed while performing a job. A report is done by the appraiser based on what he has observed. These are facts that cannot be disputed by either the appraiser or employee. This kind of appraisal is more performance and result based. There is no room for manipulation of performance on paper by the appraiser. Hence the appraiser cannot be biased or favour the employee he wishes too. Secondly it involves the opinion of other too, like peers, other employees, the employee himself etc. It is not the report of just one person who could be biased otherwise.

The whole process of a 360 degree appraisal is discussed as under:

Supervisors: Supervisors include superiors of the employee, other superiors having knowledge about the work of the employee and department head or manager. General practice is that immediate superior appraises the performance which in turn is reviewed by the departmental head/manager. Peers: Peer appraisal may be reliable if the work group is stable over a reasonably long period of time and performs tasks that require interaction. However, little research has

been conducted to determine how peers establish standards for evaluating others or the overall effect of peer appraisal on the groups attitude.

Subordinates: The concept of having superiors rated by subordinates is being used in most organizations today, especially in developed countries. Such a novel method can be useful in other organizational settings too provided the relationships between superiors and subordinates are cordial.

Self Appraisal: If individuals understand the objectives they are expected to achieve and the standards by which they are to be evaluated, they are to a great extend in the best position to appraise their own performance. Also since employees development means self development, employees who appraise their own performance may become highly motivated. Thermax, escorts, Wipro etc implement self appraisal.

Users of Services/Customers: Employee performance in service organizations relating to behaviours, promptness, speed in doing the job and accuracy can be better judged by the customer or users of services. For eg. Teachers performance is better judged by students and performance of a doctor is judged by patients.

Consultants: Sometimes consultants may be engaged for appraisal when employees or employers do not trust supervisor appraisal and the management does not trust self appraisal, peer appraisal or subordinate appraisal. In this situation, consultants are trained and they observe the employee at work for a sufficiently long time for the purpose of appraisal.

Discuss the sources of recruitment for an organization. Describe the steps in the selection procedure in an organization.

Ans. The sources of recruitment are broadly divided into internal sources and external sources consisting of the following:

Internal sources of Recruitment:

1. Present Permanent Employees: Organizations consider the candidates from this source for higher level of jobs due to availability of most suitable candidates for jobs relatively or equally to external sources, to meet the trade union demands and due to the policy of the organization to motivate the present employees.

2. Present temporary/casual Employees: Organizations find this source to fill the vacancies relatively at the lower level owing to the availability of suitable candidates or trade union pressures or in order to motivate them on present job.

3. Retrenched or Retired Employees: Employees retrenched due to lack of work are given employment by the organization due to obligation, trade union pressure etc. Sometimes they are re-employed by the organization as a token of their loyalty to the organization or to postpone some interpersonal conflicts for promotion.

4. Dependents of Deceased, Disabled, retired and present employees: Some organizations function with a view to developing the commitment and loyalty of not only the employee but also his family members.

5. Employee Referrals: Present employees are well aware of the qualifications, attitudes, experience and emotions of their friends and relatives. They are also aware of the job requirements and organizational culture of their company. As such they can make preliminary judgment regarding the match between the job and their friends and relatives.

External Sources of Recruitment

1. Campus Recruitment: These candidates are directly recruited by the Co; from their college/educational institution. They are inexperienced as far as work experience is concerned.

2.

Private Employment Agencies/Consultants: Public employment agencies or

consultants like ABC Consultants inIndia perform recruitment functions on behalf of a client company by charging fees. Line managers are relieved from recruitment functions and can concentrate on operational activities.

3.

Public Employment Exchanges: The Government set up Public Employment

Exchanges in the country to provide information about vacancies to the candidates and to help the organization in finding out suitable candidates. As per the Employment Exchange act 1959, makes it obligatory for public sector and private sector enterprises inIndia to fill certain types of vacancies through public employment exchanges.

4.

Professional Organizations: Professional organizations or associations maintain

complete bio-data of their members and provide the same to various organizations on requisition. They act as an exchange between their members and recruiting firm.

5.

Data Banks: The management can collect the bio-data of the candidates from different

sources like Employment Exchange, Educational TrainingInstitutes, candidates etc and feed them in the computer. It will become another source and the co can get the particulars as and when required.

6.

Casual Applicants: Depending on the image of the organization its prompt response

participation of the organization in the local activities, level ofunemployment, candidates apply casually for jobs through mail or handover the application in the Personnel dept. This would be a suitable source for temporary and lower level jobs.

7.

Similar Organizations: Generally experienced candidates are available in organizations

producing similar products or are engaged in similar business. The Management can get potential candidates from this source.

8.

Trade Unions: Generally unemployed or underemployed persons or employees seeking

change in employment put a word to the trade union leaders with a view to getting suitable employment due to latter rapport with the management.

9.

Walk In: The busy organization and rapid changing companies do not find time to

perform various functions of recruitment. Therefore they advise the potential candidates to attend for an interview directly and without a prior application on a specified date, time and at a specified place.

10.

Consult In: the busy and dynamic companies encourage the potential job seekers to

approach them personally and consult them regarding the jobs. The companies select the suitable candidates and advise the company regarding the filling up of the positions. Headhunters are also called search consultants.

11.

Body Shopping: Professional organizations and the hi-tech training develop the pool of

human resource for the possible employment. The prospective employers contact these organizations to recruit the candidates. Otherwise the organizations themselves approach the prospective employers to place their human resources. These professional and training institutions are called body shoppers and these activities are known as body shopping. The body shopping is used mostly for computer professionals. Body shopping is also known as employee leasing activity.

12.

Mergers and Acquisitions: Business alliances like acquisitions, mergers and take over

help in getting human resources. In addition the companies do also alliances in sharing their human resource on adhoc basis.

13.

E_recruitment: The technological revolution in telecommunications helped the

organizations to use internet as a source of recruitment. Organizations advertise the job vacancies through the worldwide wed (www). The job seekers send their applications through email using the Internet.

14.

Outsourcing: Some organizations recently started developing human resource pool by

employing the candidates for them. These organizations do not utilize the human resources; instead they supply HRs to various companies based on their needs on temporary or ad-hoc basis.

Steps in the selection procedure in an organization. Selection is a process of selecting the right candidate for the right job. It is about collecting information about the candidates qualifications, experience, physical and mental ability, nature and behaviour, knowledge, aptitude etc for judging whether a given applicant is suitable or not for the job. The selection process is discussed below:

1. Job Analysis: Job analysis is the basis for selecting the right candidate. Every organisation should finalise the job analysis. Job description, job specification and employee specifications before proceeding to the next step of selection.

2. Human Resource Plan: Every company plans for the required number of and kind of employees for a future date. This is the basis for recruitment function.

3. Recruitment: Recruitment refers to the process of searching for prospective employees and stimulating them to apply for jobs in an organisation. It is the basis for the remaining techniques of the selection and the latter varies depending upon the former. It develops the applicants pool.

4. Application Form: Application form is also known as application blank. The technique of application blank is traditional and widely accepted for securing information

from the prospective candidates. It can also be used as a device to screen the candidates at the preliminary level. Many companies formulate their own style of application forms depending upon the requirements of information based on the size of the company, nature of business activities, type and level of the job etc. Information is generally required on the following items in the application forms : (i) Personal background information, (ii) Educational attainments, (iii) Work experiences, (iv) Salary, (v) Personal details and (vi) References.

1. Written Examination: The organization have to conduct written examination for the qualified candidates after they are screened on the basis of the application blanks so as to measure the candidates ability in arithmetical calculations, to know the candidates attitude towards the job, to measure the candidates aptitude, reasoning, knowledge in various disciplines, general knowledge and English language.

2.

Preliminary Interview: The preliminary interview is to solicit necessary information from

the prospective applicants and to assess the applicants suitability to the job. The information provided by the candidate may be related to the job or personal specifications regarding education, experience, salary expected aptitude towards the job, age physical appearance and other physical requirements etc. Thus preliminary interview is useful as a process of eliminating the undesirable candidates. If a candidate satisfies the job requirement regarding most of the arrears he may be selected for further process. Preliminary interviews are short and known as stand-up interviews or sizing up of the applicants or screening interview. This interview is also useful to provide the basis information about the company to the candidate. 3. Business Games: Business games are widely used as a selection technique for

selecting management trainees, executive trainees and managerial personnel at junior, middle and top management positions. Business games help to evaluate the applicants in the areas of decision making, identifying the potentialities, handling the situations, problem-solving skills, human relations skills etc. Participants are placed in a hypothetical work situation and are required to play the role situations in the game. 4. Group Discussions: The technique of group discussion is used in order to secure

further information regarding the suitability of the candidate for the job. Group discussion is a method where groups of the successful applicants are brought around a conference table and

are asked to discuss either a case study or a subject matter. The candidates in the group are required to analyze, discuss, find alternative solutions and select the sound solution. A selection panel then observes the candidates in the areas of initiating the discussion, explaining the problem, soliciting unrevealing information based on the given information and using common sense, keenly observing the discussion of others, clarifying controversial issues, influencing others, speaking effectively, concealing and mediating arguments among the participants and summarizing or concluding aptly. The selection panel, based on its observations, judges the candidates skills and ability and ranks them according to their merit.

BUSINESS GAMES AND THEIR UTILITY IN THE SELECTION PROCESS Business Games (1) Case Study (2) Role Play Utility Analytical, judgmental and decision-making skills Human relations skills. Situational judgment, social relations, decision-making (3) In-basket method skills, problem-solving skills. Degree of openness, concern for others, tolerance for (4) Sensitivity (5) Simulations individual differences. Encountering skills.

5. Test: Psychological tests play a vital role in employee selection. A psychological test is essentially an objective and standardized measure of sample of behaviour from which inferences about future behaviour and performance of the candidate can be drawn.
Types of Test Aptitude Tests:

(a) Intelligence Test (IQ) (b) Emotional Quotient

1.

(c) Skill Tests

(d) Mechanical Aptitude (e) Psychomotor Tests (f) Clerical Aptitude Tests
Achievement Tests:

(a) Job Knowledge Test

2.

(b) Work Sample Test

Situational Tests:

(a) Group Discussion

3. 4.

(b) In Basket
Interest Test Personality Tests:

(a) Objective Tests

5. 6.

(b) Projective Tests

Multi-Dimensional Testing

Eg.: Multi-Skilling: Multi-Dimensional Testing: L&G has realised that most of the company operations whether they are production or marketing or finance or human resources can be done by almost all the employees. Experts are needed only in rare cases. Infact, services of the experts can be outsourced. As such, L&G started selecting the candidates with multi-skills and who can perform a variety of functions. L&G developed multi-dimensional testing.

Types of Interview: The types of Employment interviews are:

Preliminary Interview

(a) Informal Interview This is the interview, which can be conducted at any place by any person to secure the basic and non-job related information. It is the interaction between the candidate and the personal manager when the former meets the latter to enquire about the vacancies or additional particulars in connection with the employment advertisement etc.

(b) Unstructured Interview In this interview the candidate is given freedom to tell all about himself by revealing his knowledge on various items/arrears, his background, expectations, interest etc. 1. The interviewer also may answer some information required by the candidate.
Core Interview: It is normally the interaction between the candidate and the line executive or experts on various areas of job knowledge, skill, talent etc.

(a) Background information interview This interview is intended to collect the information which is not available in the application blank and to check that information provided in the application blank regarding education, place of domicile, family, health, likes, dislikes and extra curricular activities of the applicant.

(b) Job and probing interview This interview aims at testing the candidates job knowledge about duties, activities, methods of doing the job, critical/problematic areas, and methods of handling those areas.
2.

(c) Stress interview This interview aims at testing the candidates job behaviour and level of withstanding during the period of stress and strain. The interviewer tests the candidate by putting him under stress and strain by interrupting the applicant from answering, criticizing his opinions, asking questions pertaining to unrelated areas etc. Stress during the middle portion of the interview gives effective results.

(d) Group discussion interview There are two methods of conducting group discussion interviews viz group interview method and discussion method. This type of interview helps the interviewer in appraising certain skills of the candidates like initiative; inter personal skills, dynamism, presentation, leading, comprehension, collaboration etc.

(e) Formal and structured interview In this type of interview, all the formalities, procedures like fixing the value, time, panel of interviewers, opening and closing, intimating the candidates officially etc. are strictly followed in arranging and conducting the interview. The course of the interview is pre-planned and structured, in advance depending on job requirements. The questions for discussion are structured and experts are allotted different areas and questions to be asked.

(f) Panel interview A panel of experts interviews each candidate, judges his performance individually and prepares consolidated judgement. This type of interview is known as panel interview.

(g) Depth interview The candidate is examined extensively in core areas of job skills and knowledge. Experts test the candidates knowledge in depth. Depth interviews are conducted for

specialized jobs.

(h) On Line Interview: Information technology brought significant developments in the selection process of employees. The vital development is on-line interview where the interview is conducted online. These techniques include, on-line submission, internet based recruiting, outsourcing employment function, sophisticated scanning and searching.

Decision-Making Interview
After the candidates are examined by the experts including the line managers of the organization in the core areas of the job, the head of the department/section concerned interviews the candidate once again, mostly through informal discussion. The interviewer examines the interest of the candidate in the job, organization, reaction/adaptability to the working conditions, career planning, promotional opportunities, work adjustment and allotment etc. The Personnel Manager also interviews the candidates with a view to find out his reaction/acceptance regarding salary, allowances, benefits, promotions, opportunities etc.
3.

During various types of interviews depending on the job requirement the interviewer can see and analyse the strengths, weaknesses and potentials of the candidate. Whether he is suitable for the job, whether he is the right candidate. Various types of interviews help the interviewer to arrive at different conclusion. Eg. A Stress Interview helps to analyse whether a candidate can perform under stress and pressure and whether he can take a right decision at such times. Most of the organizations have realized recently that the employees positive attitude contribute much rather than employees skills and knowledge. Employees with positive attribute contribute much to the organization. Hence the interviewers look for the candidates with the right attitude while making final decisions.

Attitude Counts Much, but not the Skill

InfoTech Limited discovered that the employees with right attitude take up the activities willingly on their own. They acquire the necessary skills, if they do not possess them. They never say no to other employees, superiors and customers. Hence the interviewers with right and or positive attitude, irrespective of their technical al skills and knowledge.

Medical Examination : Certain jobs require certain physical qualities like clear vision, perfect hearing, unusual stamina, tolerance of hardworking conditions, clear tone etc. Medical examination reveals whether or not a candidate possesses these qualities.

Reference Checks: After completion of the final interview and medical examination, the personnel department will engage in checking references. Candidates are required to give the names of references in their application forms. These references may be from the individuals who are familiar with the candidates academic achievement or from the applicants previous employer, who is well versed with the applicants job performance, and sometimes from co-workers.

Final Decision by Line Manager : The Line Manager concerned has to make the final decision whether to select or reject a candidate after soliciting the required information through different techniques discussed earlier. The line manager has to take much care in taking the final decision not only because of economic implications and of the decisions but also because of behavioural and social implications.

Job Offer : After taking the final decision the organization has to intimate this decision to the successful as well as unsuccessful candidates. The organization offers the job to the successful candidate either immediately. The candidate after receiving the job offer communicates his acceptance to the offer or requests the company to modify the terms and conditions of employment or rejects the offer.

Employment: The company may modify the terms and conditions of employment as requested by the candidate. The Company employs those candidates who accept the job offer with or without modifications of terms and conditions of employment and place them on the job.

Discuss the functions of Human Resource Management in an organization. Enumerate the challenges of HRM in the present organizational context.
Ans. The functions of HRM can be broadly classified into two categories viz 1) Managerial Functions 2) Operative Functions :

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 cooperation 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. Co-ordination 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 wellformulated 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

Recent Trends in HRM : Human Resources Management has been advancing at a fast rate. The recent trends in HRM include: Quality of work life Total quality in human resources HR accounting, audit and research and Recent techniques of HRM

The challenges of HRM in the present organizational context.

A goal seeking organizations especially one that seeks improvement over the current situation is a challenge, taking organization. When many such goals are pursued tremendous internal pressures some of them conflicting, tend to be generated. Unless the organization develops mechanisms for coping with these self-generated pressures, it may face major failure and suffer disastrous retreats from its goal.

Human Resource function cannot be performed in a vacuum. There are many challenges that it has to face to survive. All these challenges are discussed below.

1. Technological factors: Just as necessity is the mother of invention competition and a host of other reasons are responsible for the rapid technological changes and innovations. As a consequence of these changes, technical personnel, skilled workers, computer operators and machine operators are increasingly required while the demand for other categories of employers has declined. Hence procurement of skilled

employees and their increase in numbers to match the changing job requirements has become a complicated task.

2. Human Resource in the Country: The structure, values and the level of education of human resource in a country influence much of the Human Resource function. The influence of manpower in the country can be studies through the changes in structure of employment. a. Change in the Structure of Employment: The structure of employment in an organization changes with the entrance of workforce with different backgrounds (Social economic, region, community, sex, religion, traditions culture etc). There has been a significant change in the structure of employment with the entry of 1) candidates belonging to the schedule castes, schedules tribes and backward communities. 2) More female employees, due to increased career orientation among women to the suitability of women for certain jobs and to women becoming more acclimatized to the working climate and higher level of commitment. 3) The workforce consists of different regions but due to increased transportation facilities and mobile character of people. These changes in workforce are a challenge and a complicated task of HR function. It has to deal with employees with different backgrounds.

3. Changes in employee Roles and their Values: Earlier the management could totally control its employees and get the desired output. Today the employees have to be considered as a partner in the organization. Changing structure of workforce has led to the introduction of new values in organization. Among these are moves 1) emphasis on quality of life rather than quantity ii) equality and justice for employees over economic efficiency iii) participation over authority. iv) Workers now prefer flexible working hours to fixed time schedule. v) Level of education in recent years is comparatively very higher. Increased formal education has led to the change of attitude of the employees.

4. Changing demands of employer: changes always are not on the side of employees. Organizations also undergo changes and consequently their demands on employees will also change. The information technological revolution and neck to neck

marketing competition of most of the organizations due to globalization demand that the existing employees adopt to the ever-changing work situation and learn new skills, knowledge etc to cope with the new changes.

5. Government and Legal factors: Until 1940 the government was not involved or interested regarding the problems of labor or industry. But the need for Govt., interference arose out of the belief that Government is the custodian of industrial and economic activities. The role of the government in business has after 1991 with the announcement of economic liberalization. However awareness of legislations is very important like the Factory Act, 1948, Trade Union act 1962, Payment of wages Act 1936, The Minimum Wages Act 1923, The Payment of Bonus Act 1965, The Employment Exchange Act, Standing Order Act 1946, Maternity Benefit Act 1961, and The Apprentice Act 1961. All these acts if not complied with can get the organization into deep trouble.

6. Customers: Organizations produce products or render services for the ultimate consumption use by the customer. In other words organizations depend upon customers for their survival and growth. Customers revolt against employees, if the services rendered are less qualitative. The banks face such type of challenges. Customers may develop a negative attitude towards the organization, if it does not follow the social policies of the country. Hence the customers pose a challenge special ally in service industry.

7. Social factors: Social environment consists of class structure, mobility social roles social values nature and development of social institutions caste structure and occupational structure, traditions, religion culture etc. To cater to everyones requirement and keep them happy is a big challenge faced by HR today.

Discuss any two theories of motivation. Explain the strategies used by organizations to motivate employees.
Ans. Theories of Motivation: There are several theories on motivation. The significant among them are Maslows Hierarchy of Needs, Herzbergs Two Factor Theory, Vrooms Expectancy Theory, Porter and Lawlers Expectancy Theory and Equity Theory of Work Motivation. We shall discuss 1. Maslows Theory of Hierarchy of Needs and 2. Herzberg Two Factor Theory.

1. Maslows Theory of Hierarchy of Needs : According to Maslow, human needs form a hierarchy, staring at the bottom with the physiological needs and ascending to the highest need of self actualization. He says when one set of needs is satisfied; they no longer work as motivators as a man seeks to satisfy the next higher level of needs.

__________________________________________________ Need for Self-Actualization __________________________________________________ Physiological Needs __________________________________________________ Esteem Needs __________________________________________________ Social Needs -Affiliation or Acceptance Needs __________________________________________________

Security of Safety Needs __________________________________________________ Physiological Needs __________________________________________________ MASLOWS HIERACHYOF NEEDS ==========================================

The Need Hierarchy:

1. Physiological Needs: These are the basic necessities of human life, food, water, warmth, shelter, sleep and sexual satisfaction. Maslow says that until these needs are satisfied to the required level, man does not aim for the satisfaction of next level of needs. As far as work environment is concerned, these needs include basic needs like pay, allowance, incentives and benefits. 2. Security/Safety Needs: These refer to the need to be free of physical danger or the feeling of loss of food, job or shelter. When the physiological needs are satisfied, man starts thinking of the way by which he can satisfy his safety needs. Security needs spring up the moment he makes an effort in the direction of providing himself the source of continuity of physiological needs. In a work environment these needs include conformity, security plans, membership in unions, severance pay etc. 3. Social Needs: (Affiliation or Acceptance Needs) When the physiological and security needs are satisfied, these social needs begin occupying the mind of a man. This is exactly why he looks for the association of other human beings and strives hard to be accepted by this group. Social needs at the work placeinclude: Human relations, formal and informal work groups. 4. Esteem Needs: These needs are power, status and self confidence. Every man has a feeling of importance and he wants others to regard him highly. These needs makes people aim high and make them achieve something great. These needs for employees include status symbols, awards, promotions, titles etc.

5. Self Actualization Needs: This is the highest need in the hierarchy. This refers to the desire to become what one is capable of becoming. Man tries to maximize his potential and accomplish something, when this need is activated in him.

2. Herzberg Theory of Motivation: Deals with basically two factors Dissatisfiers and Satisfiers.

DISSATISFIERS: The first group (factor) consists of needs such as company policy and administration, supervision, working conditions, interpersonal relations, salary, status, job security and personal life. These factors he called DISSATISFIERS and not motivators. Their presence or existence does not motivate in the sense of yielding satisfaction, but their absence would result in dissatisfaction. They are also known as hygiene factors.

SATISFIERS: The second group are the satisfiers in the sense that they are motivators which are related to job content. It includes factors of achievement, recognition, challenging work, advancement and growth in job. Their presence yields feeling of satisfaction or no satisfaction but not dissatisfaction.

Another WAY to present the above question Herzbergs Two Factor Theory: Classification of Maintenance and Motivational Factors

Maintenance Factors or Sr. Dissatisfiers or Hygiene Factors 1. Job Content 2. Extrinsic Factors

Motivational Factors or Satisfiers Job Content Intrinsic Factors

3. 4. 5. 6. 7. 8. 9. 10. 11.

Company Policy and Administration Quality of supervision Relations with superiors Peer Relations Relations with subordinates Pay Job security Work Conditions Status

Achievement Recognition Advancement Work Itself Possibility of Growth Responsibility

Strategies used by organizations to motivate employees.

It is a bare fact that most of us use only a small portion of our mental and physical abilities. To exploit the unused potential in people they are to be motivated. Needless to say that such exploitation results in greater efficiency, higher production and better standard of living of the people. There are basically two types of motivation vis 1) Positive Motivation and Negative Motivation.

1. Positive Motivation: People are said to be motivated positively when they are shown a rewards and the way to achieve it. Such a reward may be financial or non financial. Monetary motivation may include different incentives, wage plans, productive bonus schemes etc. Non monetary include praise for work, participation in management, social recognition. Monetary incentives provide the worker a better standard of life while non monetary incentives satisfy the ego of a man. 2. Negative Motivation: It is induced by installing fear in the minds of people; one can get the desired work done. In this method of motivation fear of consequences of doing something or not doing something keeps the worker in desired direction. This method has got several limitations. Fear Creates frustration, a hostile state of mind and an

unfavorable attitude towards the job which hinder efficiency and productivity. So the use of it should be kept minimum.

What is Performance Appraisal System and what are its objectives? Describe the various sources of errors in the appraisal process. What is the difference between the Performance Appraisal and Performance Management Systems in an organisation?
Ans. Performance appraisal is a method of evaluating the behaviour of employees in the work place normally including both the quantitative and qualitative aspects of job performance. Performance refers to the degree of accomplishment of the tasks that make up an individuals job. It indicates how ell an individual is fulfilling the job demands.

Every organization has to decide upon the content to be appraised before the programme is approved on the basis of job analysis. The content to be appraised may vary with the purpose of appraisal and type and level of employees.

The key factor in an organization to support an effective performance appraisal system is as follows: Organizational planning based on potentialities of human resources.

Human Resource Planning based on weakness, strengths and potentialities of human resources. Organizational effectiveness through performance improvement Fixation and refixation of salary, allowances, incentives and benefits Original placement or placement adjustment decisions

Identifying training and development needs and to evaluate effectiveness of training and development Needs and to evaluate effectiveness of training and development programmes Career planning and development and movement of employees.

Objectives of Performance Appraisal System :- Performance appraisal aims at attaining the different purposes. They are :

To create and maintain a satisfactory level of performance. To contribute to the employee growth and development through training, self and management development programmes. Tata Power aims at employee development through performance appraisal.

To help the superiors to have a proper understanding about their subordinates. To guide the job changes with the help to continuous ranking. To facilitate fair and equitable compensation based on performance. To facilitate for testing and validating selection tests, interview techniques through comparing their scores with performance appraisal ranks. To provide information for making decisions regarding lay-off, retrenchment etc. as in the case of Hyundai Engineering.

Sources of Error in Performance Appraisal:

1. Rating Biases: It is a subjective measure of rating performance which is not verifiable by others and has the opportunity for bias. There rater biases include: a) the halo effect b) the error of central tendency c) the leniency and strictness biases d) personal prejudice and e) the recency effect.

1. Halo Effect: it is the tendency of the raters to depend excessively on the rating of one trait or behaviourial consideration in rating all other traits or behavioural considerations. One way of minimizing the halo effect is appraising all employees by one trait before going to rate them on the basis of another trait.

2.

The Error of Central Tendency: Some raters follow play safe policy in rating by rating

all the employees around the middle point of the rating scale and they avoid rating the people at both the extremes scale. They follow play safe policy because of answerability to the management or lack of knowledge about the job and person he is rating or has least interest in the job.

3.

The Leniency and Strictness: the leniency bias crops when some raters have a

tendency to be liberal in their rating by assigning higher rates consistently. Such ratings do not serve any purpose. Equally damaging is assigning consistently low rates.

4.

Personal Prejudice: If the rater dislikes any employee or any group, he may rate them

at the lower end, which may distort the rating purpose and affect the career of these employees.

5.

The Recency Effect: The raters generally remember the recent actions of the employee

at the time of rating them on the basis of these recent actions favourable or unfavourablerather than on the whole activities.

Difference between Perfomance Appraisal and Performance Management System.

Perfomance Appraisal

Perfomance Management System

Performance Management System performance of the employee is continuously monitored and developed in tune with the organisational

Performance Appraisal is Organisational planning based on potentialities of its human sources.

requirements.

Emphasis on Documentation : Emphasis is It is human resource planning based on weakness, strengths and potentialities of human resources. required for goal setting of employees and other important processes of a performance management system.

Computer-based Performance The basic purpose is to find out how well the a plan of improvement. Management : Now-a-days software is performance management process. Collaborative Performance Management : Both the Manager and the subordinates It is not job evaluation. It refers to how someone is doing the assigned job. Job understand each other and both understand the organisational goals and requirements with a evaluation determines how much a job is worth common and collaborative mind. to the organization and therefore, what range of pay should be assigned to the job. Customised Performance Management System : Organisations started adopting seperate performance appraisal techniques and It identifies training and development needs and evaluates effectiveness of training and development programmes. design the system for each employee separately based on employee skills, behaviour and his job needs. employee is performing the job and to establish available for implementing the entire

Write short notes on Job Satisfaction, Employee Morale, Job Evaluation, Job Analysis, Employee Turnover, H.R. Policies
Ans . Job Satisfaction : Job satisfaction refers to a persons feeling of satisfaction on the job, which acts as a motivation to work. It is not self-satisfaction, happiness or selfcontentment but satisfaction on the job.

The term relates to the total relationship between an individual and the employer for which he is paid. Satisfaction does mean the simple feeling state accompanying the attainment of any goal, the end-state is feeling accompanying the attainment by an impulse of its objective. Job dissatisfaction does mean absence of motivation at work. Research workers differently described the factors contributing to job satisfaction and job dissatisfaction. Hoppock describes job satisfaction as any combination of psychological, physiological and environment circumstances that cause any person truthfully to say that I am satisfied with my job. Job satisfaction is defined as the pleasurable emotional state resulting from the appraisal of ones job as achieving or facilitating the achievement of ones job values. In contrast, job dissatisfaction is defined as the unpleasurable emotional state resulting from the appraisal of ones job as frustrating or blocking the attainment of ones job values or as entailing disvalues. However, both satisfaction and dissatisfaction were seen as a function of the perceived relationship between what one perceives it as offering one entailing.

Ans 8b. Employee Morale : Morale is purely emotional. It is an attitude of an employee towards his job, his superior and his organisation. This may range from very high to very low. It is not a static thing but it changes depending on working conditions, superiors, fellow-workers, pay and so on. When a particular employee has a favourable attitude towards his work, he is said to have high morale. In the Organisational context, we usually talk of group morale as each person has an influence over the others morale.

Ans . Job Evaluation : 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.

Ans . Job Analysis : Te U.S. Department of Labour defined job analysis as the process of determining by observation and study and reporting pertinent information relating to the nature of a specific job. It is the determination of the tasks which comprise the job and of the skills, knowledge abilities and responsibilities required of the worker of a successful performance and which differentiate one job from all others.

Ans . Employee Turnover : The movement of an employee from one job to the another. Jobs themselves are not actually changed, only the employees are rotated among various jobs. An employee who works on a routine / respective job moves to and works on another job for some hours/days/months and abcks up to the first job. This measure relieves the employee from boredom and monotony, improves employees skills regarding various jobs, prepares the competent employees and provides competitive advantage to the company. These measures also improves workers self-image and provides personal growth. However, a frequent job rotations are not advisable in view of their negative impact on the organisation and the employee.

Ans . H.R. Policies :

Human resource policies are general statements that guide thinking and action in decision making in an organisation. A HR policy is a plan of action, a set of proposals and actions that act as a reference point for managers in their dealings with employees. HR policies constitute guides to action. They furnish the general standards or bases on

which decisions are reached. Their genesis lies in an organizations values, philosophy, concepts and principles. Personnel guide the course of action intended to accomplish personnel objectives. A HR policy is a guideline for making wise decisions. It brings about stability in making decisions. A HR policy is a stance, often a choice made between two or more alternatives, such as the choice between promoting employees on than basis of merit versus promoting them on the basis of seniority. It covers the norms and guidelines for policies like safety, recruitment, wages etc.

What are the merits and demerits of incentive based schemes of remuneration?
Ans P.S. In exams, you should not write differentiation in the below format. It should be written paragraphwise or pointwise. The below format is just for your better understanding. Demerits of Incentive based Sr. Merits of Incentive based Remuneration Remuneration It is not considered a very good scheme It is accepted as a sound technique for in countries in the West where it is mostly the achievement of greater productivity prevalent. For employers the need of vigorous It tends to create tension among different supervision is reduced. workers in an organization. Workers have the advantage of working in a relatively calm atmosphere because of minimum vigilance on them by the superior. A poor performer will earn very little. Tensions caused by incentive schemes would give rise to internal relations The incentive is directly linked with the problems which would be a serious productivity of the worker. matter of concern for the management. The more the worker produces the more The tension created would eventually he earns. affect the total output. Higher productivity is an important A great sense of understanding the

1. 2.

3.

4. 5. 6.

perquisite of economic development.

problems of human relations and that of engineering is required for the smooth administration of such incentive schemes.

What is Human Resource Planning? What is the purpose and what are its important elements?
Ans. Human resource planning means deciding the number and type of the human resources required for each job, unit and the total company for a particular date in order to carry out organizational activities. It is a process by which an organization moves from its current manpower position to its desired manpower position. It is influenced by the strategic management of the co.

STRATEGY Expansion Diversification Acquisitions and Mergers Retrenchment Low Cost Leadership Differentiation Strategy

HUMAN RESOURCE PLAN NING Additional human resources of existing categories. Additional human resources of different categories Reduction of human resources of managerial positions Reduction of human resources of almost all the categories through VRS and other means Reduction of human resources Additional human resources of different categories.

Purpose of Human Resource Planning. To recruit and retain the human resource of required quantity and quality.

To foresee the employee turnover and make the arrangements for minimizing turnover and filling up of consequent vacancies. To foresee the impact of technology on work. To meet the needs of the programmers of expansion, diversification etc. To improve the standards, skill knowledge, ability discipline etc.

To access the surplus or shortage of human resources and take measures accordingly. To maintain congenial industrial relations by maintaining optimum level and structure of human resources. To minimize imbalances caused due to non-availability of human resources of the right kind, right number in the right time and right place. To make the best use of its human resources To estimate the cost of human resources.

Important Elements of Human Resource Planning.

Analyzing Corporate and unit level strategies

Demand Forecasting: Forecasting the overall human resources requirements in accordance with the organizational plans. Supply Forecasting: Obtaining the data and information about the present inventory of human resources and forecast the future changes in the human resources inventory. Estimating the net human resources requirements In case of future surplus, plan for re-deployment, retrenchment and lay off.

In case of future deficit, forecast the future supply of human resources from all sources with reference to plans of other companies. Plan for recruitment, development and internal mobility if future supply is more than or equal to net human resources requirements. Plan to modify or adjust the organizational plan if future supply is more than or equal to net human resource requirements. Plan to modify or adjust the organizational plan if future supply will be inadequate with reference to future net requirements.

What are the different Internal and External sources of recruitment? Explain the merits and demerits of each.
Ans. 3. The sources of recruitment are broadly divided into internal sources and external sources consisting of the following:

Internal sources of Recruitment:

1. Present Permanent Employees : Organizations consider the candidates from this source for higher level of jobs due to availability of most suitable candidates for jobs relatively or equally to external sources, to meet the trade union demands and due to the policy of the organization to motivate the present employees.

2. Present temporary/casual Employees: Organizations find this source to fill the vacancies relatively at the lower level owing to the availability of suitable candidates or trade union pressures or in order to motivate them on present job.

3. Retrenched or Retired Employees: Employees retrenched due to lack of work are given employment by the organization due to obligation, trade union pressure etc. Sometimes they are re-employed by the organization as a token of their loyalty to the organization or to postpone some interpersonal conflicts for promotion.

4. Dependents of Deceased, Disabled, retired and present employees: Some organizations function with a view to developing the commitment and loyalty of not only the employee but also his family members.

5. Employee Referrals: Present employees are well aware of the qualifications, attitudes, experience and emotions of their friends and relatives. They are also aware of the job requirements and organizational culture of their company. As such they can make preliminary judgment regarding the match between the job and their friends and relatives.

External Sources of Recruitment

1. Campus Recruitment: These candidates are directly recruited by the Co; from their college/educational institution. They are inexperienced as far as work experience is concerned.

2. Private Employment Agencies/Consultants: Public employment agencies or consultants like ABC Consultants inIndia perform recruitment functions on behalf of a client company by charging fees. Line managers are relieved from recruitment functions and can concentrate on operational activities.

3. Public Employment Exchanges: The Government set up Public Employment Exchanges in the country to provide information about vacancies to the candidates and to help the organization in finding out suitable candidates. As per the Employment Exchange act 1959, makes it obligatory for public sector and private sector enterprises inIndia to fill certain types of vacancies through public employment exchanges.

4. Professional Organizations: Professional organizations or associations maintain complete bio-data of their members and provide the same to various organizations on requisition. They act as an exchange between their members and recruiting firm.

5. Data Banks: The management can collect the bio-data of the candidates from different sources like Employment Exchange, Educational TrainingInstitutes, candidates etc and feed them in the computer. It will become another source and the co can get the particulars as and when required.

6. Casual Applicants: Depending on the image of the organization its prompt response participation of the organization in the local activities, level ofunemployment, candidates apply casually for jobs through mail or handover the application in the Personnel dept. This would be a suitable source for temporary and lower level jobs.

7. Similar Organizations: Generally experienced candidates are available in organizations producing similar products or are engaged in similar business. The Management can get potential candidates from this source.

8. Trade Unions: Generally unemployed or underemployed persons or employees seeking change in employment put a word to the trade union leaders with a view to getting suitable employment due to latter rapport with the management.

9. Walk In: The busy organization and rapid changing companies do not find time to perform various functions of recruitment. Therefore they advise the potential candidates to attend for an interview directly and without a prior application on a specified date, time and at a specified place.

10. Consult In: the busy and dynamic companies encourage the potential job seekers to approach them personally and consult them regarding the jobs. The companies select the suitable candidates and advise the company regarding the filling up of the positions. Head hunters are also called search consultants.

11. Body Shopping: Professional organizations and the hi-tech training develop the pool of human resource for the possible employment. The prospective employers contact these organizations to recruit the candidates. Otherwise the organizations themselves approach the prospective employers to place their human resources. These professional and training institutions are called body shoppers and these activities are known as body shopping. The body shopping is used mostly for computer professionals. Body shopping is also known as employee leasing activity.

12. Mergers and Acquisitions: Business alliances like acquisitions, mergers and take over help in getting human resources. In addition the companies do also alliances in sharing their human resource on adhoc basis.

13. E_recruitment: The technological revolution in telecommunications helped the organizations to use internet as a source of recruitment. Organizations advertise the job vacancies through the world wide wed (www). The job seekers send their applications through e-mail using the internet.

14. Outsourcing: Some organizations recently started developing human resource pool by employing the candidates for them. These organizations do not utilize the human resources; instead they supply HRs to various companies based on their needs on temporary or ad-hoc basis.

Merits and Demerits of Internal Sources of Recruitment

Sr.

Merits of Internal Sources of Recruitment

1. 2.

Demerits of Internal Sources of Recruitment Trade union pressure may not always give the right candidate for the job. The Motivates present employees when management may have to consider some they are upgraded internally. concessions. Retrenched workers get an opportunity Managements gets a chance to postpone to work again. promotion due to interpersonal conflicts. Excessive dependence on this source Dependents of the deceased get a job results in in-breeding, discourages flow of easily new blood into the organization. The organization becomes dull without innovations, new ideas, excellence and expertise.

3.

4. 5. 6. 7.

Morale of employees is improved Loyalty, commitment, security of present employees can be enhanced Cost of recruitment, training, induction, orientation, etc is reduced Trade unions can be satisfied.

Merits and Demerits of External of Recruitment

Sr. 1. 2.

Merits of External Sources of Recruitment The candidates with skill, knowledge talent etc is generally available.

Demerits of External Sources of Recruitment Campus recruited employees lack work experience.

3. 4.

Cost of recruitment is high and there is no Cost of employees can be minimized. confidentiality. Specified vacancies have to be filled by Expertise, excellence and experience in candidates referred by employment other organizations can be easily exchanges which do not allow other brought into the organization. candidates to be eligible. Existing sources will also broaden their personality.

5. 6. 7. 8. 9.

Human Resource mix can be balanced Qualitative human resource benefits the organization in the long run. Reduction in time for recruitment Increase in the selection ratio i.e. recruiting more candidates. HR professionals can concentrate on strategic issues.