MBA Semester I

Human Resource Management

MB0043

Q-1 What do you mean by Human Resource Management? Describe the functions of Human
Resource Management.

Human resource management (HRM, or simply HR) is a function in organizations designed

to maximize employee performance in service of their employer's strategic objectives. HR is
primarily concerned with how people are managed within organizations, focusing on policies
and systems.
The major functional areas in human resource management are as follows:
Human Resource Planning:
In the human resource planning function, the number and type of employees needed to
accomplish organisational goals are determined. Research is an important part of this
function because planning requires the collection and analysis of information in order to
forecast human resources supplies and to predict future human resources needs. The basic
human resource planning strategy is staffing and employee development.
Job Analysis:
Job analysis is the process of describing the nature of a job and specifying the human
requirements, such as skills, and experience needed to perform it. The end product of the job
analysis process is the job description. A job description spells out work duties and activities
of employees. Job descriptions are a vital source of information to employees, managers, and
personnel people because job content has a great influence on personnel programmes and
practices.
Staffing:
Staffing emphasises the recruitment and selection of the human resources for an organisation.
Human resources planning and recruiting precede the actual selection of people for positions
in an organisation. Recruiting is the personnel function that attracts qualified applicants to fill
job vacancies. In the selection function, the most qualified applicants are selected for hiring
from among those attracted to the organisation by the recruiting function.
Training and Development:

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The training and development function gives employees the skills and knowledge to perform
their jobs effectively. In addition to providing training for new or inexperienced employees,
organisations often provide training programmes for experienced employees whose jobs are
undergoing change. Large organisations often have development programmes which prepare
employees for higher level responsibilities within the organisation.
Performance Appraisal:
Performance appraisal function monitors employee performance to ensure that it is at
acceptable levels. Human resource professionals are usually responsible for developing and
administering performance appraisal systems, although the actual appraisal of employee
performance is the responsibility of supervisors and managers.
Career Planning:
Career planning has developed partly as a result of the desire of many employees to grow in
their jobs and to advance in their career. Career planning activities include assessing an
individual employees potential for growth and advancement in the organisation.
Compensation:
Human resource personnel provide a rational method for determining how much employees
should be paid for performing certain jobs. Pay is obviously related to the maintenance of
human resources. Since compensation is a major cost to many organisations, it is a major
consideration in human resource planning.

Labour Relations:
The term labour relations refers to interaction with employees who are represented by
a trade union. Unions are organisation of employees who join together to obtain more voice
in decisions affecting wages, benefits, working conditions, and other aspects of employment.
With regard to labour relations, the personnel responsibility primarily involves negotiating
with the unions regarding wages, service conditions, and resolving disputes and grievances.

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Human Resource Management

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Q-2 Discuss the elements of a Career Planning Programme. Explain some of the benefits
of a Career Planning program to an organization.
Effective HRM encompasses career planning, career development and succession planning.
An organization without career planning and career development initiatives is likely to
encounter the highest rate of attrition, causing much harm to their plans and programmes.
Elements of Career Planning Program
Though programs differ, four distinct elements of career planning programs emerge. They
include
1. Individual assessments of abilities, interests, career needs, and goals
2. Organizational assessments of employee abilities and potential
3. Communication of information concerning career options and opportunities with the
organization
4. Career counselling to set realistic goals and plan for their attainment
Each of these elements is discussed in greater detail below:
Individual Assessments
Individual assessment of abilities, interests, career needs, and goals is basically a process of
self-exploration and analysis. Individuals are frequently guided by self-assessment exercises.
The self-assessment process is basically viewed as an individual responsibility; however,
organizations can aid in this process by providing the employee with materials and
opportunities for self-exploration and analysis.
Organizational Assessments
A key issue in career counselling sessions is whether an employee's goals are realistic in
terms of organizational possibilities and organizational assessments of employee abilities and
potential. Accurate assessments of employee abilities and potential are important to both the
organization and the individual.
Career Information within an Organization

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Before realistic goals can be set, employee need information about career options and
opportunities. This includes information about possible career directions; possible paths of
career advancement; and specific job vacancies.
Career Counselling
It is in counselling sessions, typically with supervisors and managers in developmental
performance appraisal interviews, that most employees explore career goals and opportunities
in the organization. Supervisors and managers need accurate assessments of employee
abilities and potential, as well as information about career options and opportunities in the
organization.
Benefits of a Career Planning Programme

Career planning helps the individual have the knowledge of various career
opportunities, his priorities etc.

It helps him select the career which is suitable to his life style, preference, family
environment, scope for self-development etc.

It helps the organisation identify talented employees who can be promoted.

Internal promotions, upgradation and transfers motivate the employees, boost their
morale and also result in increased job satisfaction.

Each employee will await his turn of promotion rather than changing to another
organisation. This would lower employee turnover.

It improves employee's performance on the job by tapping their potential abilities and
stimulating their personal growth.

Increased job satisfaction enhances employee commitment and creates a sense of

belongingness and loyalty to the organisation.

Being an integral part of the manpower planning and corporate planning, career
planning contributes towards individual development and organisational development
and effective achievement of corporate goals.

An organisation with well-designed career plans is able to have a better image in the
employment market, and it will attract and retain competent people.

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Human Resource Management

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Q-3 what do you mean by HRIS? Explain the components of HRIS. Describe the different
applications of HRIS in Human Resource Management.
A HRIS, which is also known as a human resource information system or human resource
management system (HRMS), is basically an intersection of human resources and
information technology through HR software. This allows HR activities and processes to
occur electronically.
These are the five key functions that any good HRIS can provide, and although you may not
need them all at the moment there may come a time when you're glad your HRIS already has
them included.
1. Payroll
This is the most common feature of any HRIS, and included in any of them. A variety of
payroll systems exist in an HRIS including some that are fully automated and synced with
external time clocks and others that allow each employee to enter their time into the system
for managerial approval.
2. Benefits Administration
Some figures state that an HR employee could spend as much as forty percent of their time
managing employee benefits. A great HRIS can eliminate the majority of this time
completely. Many HRIS programs will even allow each employee to manage their own
benefits, adding a spouse to their insurance or checking the total of their FSA when they want
without having to bother HR at all.
3. Training Systems
With the extra time an HRIS will give your HR department, they'll likely be able to devote
more time and energy into developing training strategies to improve your workforce. An
HRIS with a training system will allow your HR department to track and manage all aspects
of employee training and is a great feature to have in any HRIS.
4. Recruiting

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Human Resource Management

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Your HRIS will also allow your HR department more time to focus on their recruitment
efforts. New hires are valuable, but the recruitment process can be complex. A good HRIS
will provide many different features designed to help your HR department manage each step
of the recruitment phase with ease. It's a vital component to any HRIS, and one that can really
improve your overall ROI on employees.
5. HR Metrics
The best HRIS will give you the chance to review a wealth of data about your company and
your employees. This feature gives you the ability to see where your company thrives and
where it struggles and lets you develop new strategies for improving your company.
Applications of HRIS
1. HR planning and analysis
2. Equal employment
3. Staffing
4. HR development
5. Compensation benefits
6. Health, safety and security
7. Employee and labour relations

Q-4 Discuss the objectives of Discipline. Explain the Action penalties of Discipline
In simple words, the word discipline connotes orderly behaviour by the members/employees.
In other words, discipline implies behaving in a desired manner. By that we mean that
employees confirm to the rules and regulations framed by the organisation for an acceptable
behaviour. Following definitions of discipline will make its meaning more clear.
The objectives of discipline are to:
1. Motivate an employee to comply with the companys performance standards
2. Maintain respect and trust between the supervisor and employee:
3. Improve the performance of the employee:

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4. Increase the morale and working efficiency of the employees.

5. Foster industrial peace which is the very foundation of industrial democracy.
Disciplinary Action
When a problem occurs, the manager/supervisor will have to determine the seriousness of the
situation and the appropriate response. In making this decision the manager/supervisor needs
to be fair towards the employee.
When discipline becomes necessary, the goal is to impose the minimum remedy that can
reasonably be expected to meet this objective.

Disciplinary actions include:

o Letters of Reprimand
o Suspensions
o Demotions
o Removals

Disciplinary actions are usually progressive; however, there may be an incident of

misconduct which is so serious that it warrants severe action, including removal from
employment, for the first offense.

Remedies for offenses may vary. Greater or lesser penalties than set out in the
Guideline Schedules of Offenses and Remedies may be imposed depending on
mitigating or aggravating factors.

In considering past offenses, oral counseling sessions and written admonishments

may not be counted as prior offenses in determining a remedy. These may be cited,
however, to show that the employee was informed of acceptable level of conduct and
performance.

Letters of reprimand may be counted as prior offenses provided the reckoning periods
for the letters have not expired.

There are several useful tools that can be used in lieu of or in addition to disciplinary
actions to assist you with correcting conduct problems. These tools should be
considered during the early stages of conduct issues.
o Document oral counselling.

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Human Resource Management

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o Letters of counselling, cautions, warnings and letters of requirement that are

not placed in the eOPF.
o Placing the employee on a Letter of Requirement for leave abuse is an
effective tool.
o Training (team building, interpersonal skills, etc.) or closer supervision may
assist in correcting misconduct.

Q-5Suppose you have joined as an HR and you have been assigned a task to carry out the
grievance handling procedure in your organization. What according to you are the causes
of Grievance? Describe in detail the Grievance handling procedure
In the organization both employer and employee have mutual expectations. When an
employees expectations are not fulfilled he will have a grudge against the employer because
of the disagreement or dissatisfaction it causes. Similarly when an employees expectations
about an employee are not fulfilled, the employer will have a grudge against such
employee. It may be a problem of indiscipline. Broadly, a grievance can be defined as any
discount or dissatisfaction with any discount or dissatisfaction with any aspect of the
organization. It can be real or imaginary, legitimate or ridiculous, stated on invoiced, written
or oral. It must, find expression in some form or the other. Discount or dissatisfaction
parse is not a grievance. They initially find expression in the form of a complaint. When a
complaint remains unattended and the employee concerned feels a sense of lack of justice and
fair play, the dissatisfaction grows and assumes the status of a grievance.
What might happen if an organization does not provide some method by which an employee
can voice his complaints and obtain an explanation? The employee will be unhappy, his
productivity is impacted, he openly begins to share his discontent with not just his colleagues
but also outsiders, friends, relatives, maybe even customers and vendors. Just as the
employee has all the right to voice a grievance, as employer (or the management) owes it to
the employee to respond suitably to the grievance. It is but commonsense that the resolution
of a problem rests on management. The earliest and clearest opportunity for issue resolution
is found.

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MBA Semester I

Human Resource Management

MB0043

Write a short note on the following:

A) Index/Trend Analysis

Index/Trend Analysis is a relatively straightforward quantitative demand forecasting

technique that uses the historical relationship between the operational index (i.e. sales level)
and the number of employees required by the organization (demand for labour) to forecast
future requirements.
5 steps to conducting an effective index/trend analysis:
1. Select the appropriate business/operational index
The HR forecaster must select a readily available business index, such as sales level, that is
(a) known to have a direct influxes on the organizational demand for labour, and (b)
subjected to future forecasting as a result of the normal business planning process.
2. Track the business index over time
Once the index has been selected, it is necessary to go back in time for at least the four or five
most recent years, but preferably for a decade or more, to record the quantitative or numerical
levels of the index over time.
3. Track the workforce size over time
4. Calculate the average ratio of the business index to the workforce size
5. Calculate the forecasted demand for labour
Extrapolation - Extending

Indexation -

past rates of change into the future.

A method of estimating future employment needs by matching employment

growth with some index, such as the ratio of production employees to sales.
B) Delphi Technique

A carefully designed program of sequential, individual interrogations (usually conducted

through questionnaires) interspersed with information feedback on the opinions expressed by
the other participants in previous rounds.

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Human Resource Management

MB0043

Advantages of the Delphi technique include:

a) since experts don't meet, there is no reluctance to participate due to shyness or perceived
lower status/authority
b) can draw from a wide geographical area
Steps associated with using the Delphi Technique:

1. Define and refine the issue or question

Project coordinator is assigned, works with the HR staff to determine the specific personnel
category or activity that will be the focus of the Dephi Technique, the group targeted for
forecasting must be well defined so relevant, focused and detail feedback can be derived.
2. Identify the experts, terms, and time horizon
A team is selected that are deemed experts with respect to personnel grouping that requires
forecast, both parties must meet an agreement on terms and conditions for participation and
setting contact and explicitly defining nature of the work.
3. Orient the experts
Identifying relevant time horizons & clarifying which personnel groups are of interest,
overview of the demand forecasting decision process. Experts told either predetermined
number of questionnaire or sequence will continue until majority opinion exists.
4. Issue the first round questionnaire
Questionnaire sent by courier, fax, email, mail, includes time frame for completion and
return. First questionnaire focuses on defining explicit assumptions made by each expert and
background rationale supporting particular demand estimate.
5. Issue the first round questionnaire summary and the second round of questionnaires
Second subsequent rounds of questionnaire with written summary of findings, aim of second
questionnaire focus experts initial assumptions by providing feedback from all members
6. Continue issuing questionnaire

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Human Resource Management

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Continue issue questionnaire until either all predetermined questionnaire stages been
complete and summarized or group reaches a clear majority decision.

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