HR-II-E

1. This paper consists of 50 Questions of multiple-choice type to be completed in 75

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darken the circle as indicated below on the correct response against each item.
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HR-II-E
1. Which of the following is/are not a part of
classical approach to management?
(A) Scientific Management
(B) Administrative Management
(C) Decision Theory
(D) Bureaucratic Organization
2. The Chairman of the Second National
Commission on Labour was
(A) Gajendra Gadkar
(B) Ravindra Verma
(C) George Fernandes
(D) Vallabh Bhai Patel
3. In which of the following systems, minimum
wage is guaranteed but beyond a certain efficiency
level, bonus is given in addition to minimum day
wages?
(A) Straight piece rate system
(B) Differential piece rate system
(C) Gantt task and Bonus system
(D) Emersons Efficiency system
4. Which one of the following identifies the basic
function or task of an organisation?
(A) Policy
(B) Objective
(C) Mission
(D) Programme
5. In ______, a person is perceived on the basis of
a single trait.
(A) Halo Effect
(B) Hawthorne Effect
(C) Stereotyping
(D) None of the above
6. Which of the following aims at control through
setting goals and productivity measures based on
best industry practices?
(A) Pareto diagram
(B) Quality circles
(C) Kaizens
(D) Benchmarking

7. Arrange the following steps of planning in a

proper sequence
(i) Developing premises
(ii) Evaluating alternative courses
(iii) Being aware of opportunities
(iv) Selecting a course
(v) Establishing objectives
(A) (i) (iii) (iv) (ii) (v)
(B) (i) (iii) (ii) (v) (iv)
(C) (iii) (v) (i) (ii) (iv)
(D) (iii) (v) (i) (iv) (ii)
8. Match the following:
Name of Thinker
(a) F.W. Taylor
(b) Max Weber
(c) Chester Barnard
(d) Hugo Munsterberg
Major Contribution
(i) Application of psychology to industry and
management
(ii) Systems approach to management
(iii) Emphasis on rules and regulations
(iv) Increased productivity through efficiency in
production
Codes:
(a) (b) (c) (d)
(A) (iv) (iii) (ii) (i)
(B) (iii) (ii) (iv) (i)
(C) (ii) (iii) (iv) (i)
(D) (iv) (iii) (i) (ii)
9. Which of the following is not true in case of
manpower planning?
(A) It is a process by which an organisation should
move from its current manpower position to its
desired manpower position.
(B) It is an integrated approach to performing the
personnel function required to meet organisational
and individual objectives.
(C) It involves forecasting human resource
requirements.
(D) It is a process to discover the sources of
manpower.
10. Match the following:

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HR-II-E
List I
(a) Collective Bargaining
(b) Wage Boards
(c) Wage
(d) Salary
List II
(i) Institutions set up by the Government for
fixation and revision of wages.
(ii) It is a procedure in which compromise is
reached through balancing of opposed strengths.
(iii) Remuneration paid to the clerical and
managerial personnel on monthly or annual basis.
(iv) Remuneration paid by the employer for the
services of hourly, daily, weekly and fortnightly
employees.
Codes:
(a) (b) (c) (d)
(A) (i) (ii) (iii) (iv)
(B) (iv) (ii) (i) (iii)
(C) (ii) (iv) (i) (iii)
(D) (ii) (i) (iv) (iii)
11. Grievance is
(A) A feeling of dissatisfaction.
(B) A dispute raised by a trade union.
(C) Refusal of the management of a demand.
(D) An act of indiscipline.
12. Which of the following is called a negative
process?
(A) Recruitment
(B) Selection
(C) Induction
(D) Performance Appraisal

(B) Simulation
(C) Managerial Grid
(D) In Basket Method
15. Behaviourally Anchored Rating Scale is
associated with
(A) Training and Development
(B) Performance Appraisal
(C) Career Planning
(D) Workers Participation in Management
16. Moonlighting means
(A) Working simultaneously in two organisations.
(B) Working under moonlight.
(C) Working in the night.
(D) Encouraging employee to improve
productivity.
17. Which of the following is not a content theory
of motivation?
(A) Maslows Need Hierarchy Theory
(B) Alderfers ERG Theory
(C) Vrooms Expectancy Theory
(D) Herzbergs Two Factor Theory
18. Theory X represents
(A) Democratic style of leadership
(B) Autocratic style of leadership
(C) Laissez-faire style of leadership
(D) Humanistic style of leadership

13. Which of the following is not a function of

human resource management?
(A) Planning
(B) Organising
(C) Directing
(D) Accounting

19. Which of the following is not a correct

statement?
(A) Informal groups always hamper the
performance of formal groups.
(B) Informal groups do not have prescribed goals
and relationships.
(C) Informal and formal groups co-exist in
organisations.
(D) Informal groups provide safety valve for
employee emotions.

14. When situation is duplicated in such a way that

it carries a closer resemblance to the actual job
setting, it is called
(A) Sensitivity Training

20. The change procedure of unfreezing, moving

and refreezing was given by
(A) Kurt Lewin
(B) P.F. Drucker

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HR-II-E
(C) French and Bell
(D) Katz and Kahn
21. ________ means willingness to exert high
levels of effort on behalf of the organisation.
(A) Organisational commitment
(B) Organisation Effectiveness
(C) Organisational Control
(D) None of the above
22. Which of the following is not a tripartite body?
(A) Indian Labour Conference
(B) Standing Labour Committee
(C) Wage Boards
(D) Joint Management Councils
23. As per Industrial Disputes Act, 1947 works
committee is constituted if there are
(A) 100 workers
(B) 50 workers
(C) 80 workers
(D) None of the above
24. Which of the following cannot be said to be a
body in the field of industrial relations?
(A) Joint Management Council
(B) Works Committee
(C) Shop Level Council
(D) Canteen Committee
25. Which of the following can be said to be the
first Trade Union in India?
(A) Amalgamated Society of Railway Servants of
India and Burma
(B) Kamgar Hitvardhak Sabha
(C) Madras Labour Union
(D) Bombay Mill hands Association
26. Which of the following cannot be said to be
the short-term objective of trade unions?
(A) Higher wages
(B) Shorter Hours of work
(C) Establishment of Socialist society
(D) Better conditions of Employment
27. Match the following:
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Trade Union/Federation
(a) AITUC
(b) CITU
(c) INTUC
(d) HMS
Year of Formation
(i) 1947
(ii) 1948
(iii) 1920
(iv) 1970
Codes:
(a) (b) (c) (d)
(A) (iv) (iii) (i) (ii)
(B) (iii) (i) (iv) (ii)
(C) (iii) (iv) (i) (ii)
(D) (ii) (iii) (iv) (i)
28. Which of the following cannot be said to be a
labour legislation?
(A) Industrial Employment (Standing Orders) Act,
1946
(B) Payment of Bonus Act, 1965
(C) Protection of Civil Rights Act, 1955
(D) Trade Unions Act, 1926
29. Fish bone analysis as a tool of quality circle
was advanced by
(A) Edward Deming
(B) Joseph Juran
(C) Kouru Ishi Kawa
(D) Phillip Crosby
30. Which of the following is not a benefit under
the Employees State Insurance Act, 1948?
(A) Sickness and Maternity Benefit
(B) Disablement and Dependents Benefit
(C) Medical Benefit and Funeral Assistance
(D) Child Allowance and Unemployment Benefit
31. The terms arising out of employment and
during and in the course of employment have
been used in
(A) Maternity Benefit Act, 1961
(B) Payment of Gratuity Act, 1972
(C) Workmens Compensation Act, 1923
(Employees Compensation Act, 1923)
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HR-II-E
(D)
Employees
Provident
Fund
Miscellaneous Provisions) Act, 1952

(and

32. Assertion (A): At least seven persons can

apply to the Registrar for registration of their
trade union.
Reason (R): The Trade Unions Act, 1926 has
provision for recognition of trade union.
(A) (A) is correct, but (R) is wrong.
(B) Both (A) and (R) are correct.
(C) Both (A) and (R) are wrong.
(D) (A) is wrong, but (R) is correct.
33. Which of the following cannot be said to be a
public utility service under the Industrial Disputes
Act, 1947?
(A) Railways/Airlines
(B) Post, telegraph and telephone service
(C) Automobile Industry/Jute and Cotton
industries
(D) Undertakings related to power, electricity and
water supply
34. Which of the following is not an authorised
deduction under the Payment of Wages Act, 1936?
(A) Fines
(B) Income-tax
(C) Contributions for LIC premiums
(D) Deductions made for payment of debt to
money lender
35. Under the Minimum Wages Act, 1948 which
of the following has/have been provided for
fixation of minimum wages?
(A) Wage Boards
(B) Awards of Labour Court
(C) Notification method and Committee method
(D) None of the above
36. Which of the following stands for bonus in the
context of Indian situation?
(A) Profit sharing
(B) Deferred wage
(C) Incentive
(D) None of the above

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37. According to the Factories Act, 1948 crche

must be provided in a factory if there are
(A) 10 or more women workers
(B) 20 or more women workers
(C) 25 or more women workers
(D) 30 or more women workers
38. Which of the following is not a labor welfare
agency?
(A) Bharat Sewak Samaj
(B) Harijan Sewak Sangh
(C) Central Social Welfare Board
(D) Standing Labour Committee
39. Which of the following are not the theories of
Labor Welfare?
(A) Policing Theory and Placating Theory
(B) Religious Theory and Trusteeship Theory
(C) Functional Theory and Public Relations
Theory
(D) Subsistence Theory and Residual Claimant
Theory
40. Which of the following is not an intra-mural
labour welfare measure?
(A) Canteen
(B) Creche
(C) Rest room, shelter and lunch room
(D) Housing and hospital facility
41. Which of the following does not affect the
supply of labor?
(A) Population
(B) Strike
(C) Labour force participation
(D) Mobility of labour
42. Which of the following can be said to be a
correct concept of wages?
(A) Wage is a reward.
(B) Wage is compensation.
(C) Wage is the price of labour.
(D) Wage is an incentive to work more.
43. A desirable state of existence comprehending
physical, mental, moral and emotional health or
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HR-II-E
well being is the theme of which concept of
Labour Welfare?
(A) Social Concept
(B) Total Concept
(C) Relative Concept
(D) Positive Concept
44. Which of the following is not a principle of
Labour Welfare?
(A) The Principle of Uniformity
(B) The Principle of Co-ordination and Integration
(C) The principle of Association
(D) The Principle of Timeliness
45. Equal Remuneration Act, 1976 was enacted to
check :
(A) Occupational wage differentials.
(B) Geographical wage differentials.
(C) Wage differential based on sex.
(D) Inter-industry wage differentials.
46. The scheme of workers participation in
management in industry in India was introduced
through
(A) Code of Discipline in industry
(B) 20-point Economic Programme
(C) Industrial Employment (Standing Orders) Act
(D) None of the above
47. Labour is not a commodity is the assertion
made by
(A) the Declaration of Philadelphia adopted by
26th session of ILO
(B) the Magna Carta
(C) the Constitution of India
(D) the International Labour Conference

iii. Peter F. Drucker

iv. Sydney & Beatrize Webbs
Codes:
abcd
(A) iii i ii iv
(B) iv iii i ii
(C) ii i iv iii
(D) ii iv i iii
49. Match the following:
Theory of wages
a. Wage Fund Theory
b. Marginal Productivity Theory
c. Bargaining Theory
d. Investment Theory
Propagators
i. John Bates Clark
ii. John Davidson
iii. John Stuart Mill
iv. Gilelman
Codes:
abcd
(A) ii iv i iii
(B) iii i ii iv
(C) iv ii iii i
(D) i iii ii iv
50. The Marginal Discounted Product of Labour
as a modified version of Marginal Productivity
Theory was advanced by
(A) Taussig
(B) Kalecki
(C) Ricardo
(D) Adam Smith

48. Match the following:

Concept
a. Industrial Democracy
b. Industrial Citizenship
c. Class Conflict
d. Welfare Movement
Propagators
i. Karl Marx
ii. Robert Owen
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HR-II-E
1. Ans. C
Exp. Classical organization theory includes the scientific management approach, Weber's bureaucratic
approach, and administrative theory. The scientific management approach (proposed by Taylor) is based on
the concept of planning of work to achieve efficiency, standardization, specialization and simplification. The
approach to increased productivity is through mutual trust between management and workers. Weber's
bureaucratic approach considers the organization as a part of broader society. The organization is based on
the principles of: structure, specialization, predictability and stability, rationality and democracy.
Administrative theory was propounded by Henry Fayol and is based on 14 principles of management.
Neoclassical theory emphasizes individual or group behaviour and human relations in determining
productivity. The main features of the neoclassical approach are individual, work group and participatory
management. Modern theories are based on the concept that the organization is an adaptive system which
has to adjust to changes in its environment. Modern theories include the systems approach, the sociotechnical approach, and the contingency or situational approach. The systems approach considers the
organization as a system composed of a set of inter-related - and thus mutually dependent - sub-systems.
Thus the organization consists of components, linking processes and goals. The socio-technical approach
considers the organization as composed of a social system, technical system and its environment. These
interact among themselves and it is necessary to balance them appropriately for effective functioning of the
organization. The contingency or situational approach recognizes that organizational systems are interrelated with their environment and that different environments require different organizational relationships
for effective working of the organization.
2. Ans. B
Exp. The first National Commission on Labour was set up in 1966 under the Chairmanship of Justice P. B.
Gajendragadkar. The Commission submitted its report in 1969 after detailed examination of all aspects of
labour problems, both in the organised and unorganised sectors. The second National Commission on
Labour was set up on 2002 under the chairmanship of Ravindra Varma.
3. Ans. D
Exp. Some of wages system are: 1) Time Rate System: Under this system, the worker is paid by the hour,
day, week, or month. 2) High Wage plan: Under this plan a worker is paid a wage rate which is
substantially higher than the rate prevailing in the area or in the industry. In return, he is expected to maintain
a very high level of performance, both quantitative and qualitative. 3) Measured day work: According to
this method the hourly rate of the time worker consists of two parts, namely, fixed and variable. The fixed
element is based on the nature of the job i.e. the rate for this part is fixed on the basis of job requirements.
The variable portion varies for each worker depending upon his merit rating and the cost-of-living index. 4)
Differential time rate: According to this method, different hourly rates are fixed for different levels of
efficiency. 5) Straight piecework system: The wages of the worker depend upon his output and rate of each
unit of output; it is in fact independent of the time taken by him. 6) Differential piece work system: This
system provide for higher rewards to more efficient workers. For different levels of output below and above
the standard, different piece rates are applicable. 7) Gantt task and bonus system: the system consists of
paying a worker on time basis if he does not attain the standard and on piece basis (high rate) if he does. 8)
Emersons efficiency system: Under this system minimum time wages are guaranteed, but beyond a certain
efficiency level, bonus in addition to minimum day wages is given.
4. Ans. C

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HR-II-E
Exp. A mission statement is a statement of the purpose of a company, organization or person, its reason for
existing. The mission statement should guide the actions of the organization, spell out its overall goal,
provide a path, and guide decision-making. It provides "the framework or context within which the
company's strategies are formulated." It's like a goal for what the company wants to do for the world
5. Ans. A
Exp. Halo effect refers to a bias whereby the perception of a positive trait in a person or product positively
influences. Drawing general impression of individual on the basis of a single characteristic. i.e. if someone is
good at one dimension, he/she is perceived to be good at other dimensions as well. Example: He is very
amiable, so he must definitely be a good husband. Stereotyping is tendency to assign attributes to someone
solely on the basis of a category of people to which that person belongs. e.g. all New Zealanders are
destructive and money grubbers. Stereotyping can lead to inaccuracies and negative consequences to our
stereotypes. Projection: Under certain conditions, people tend to see in another person traits that they
themselves possess i.e. they project their own feelings, tendencies, or motives into their judgment of others.
e.g. an individual who is himself not very energetic may see others as lazy or may explain their lack of
achievement as resulting from their unwillingness to work
6. Ans. D
Exp. Benchmarking is the process of comparing one's business processes and performance metrics to
industry bests or best practices from other companies. Dimensions typically measured are quality, time and
cost. A Pareto diagram is a simple bar chart that ranks related measures in decreasing order of occurrence.
The principle was developed by Vilfredo Pareto. It is used in Total Quality Management. A quality circle is
a group of workers who do the same or similar work, who meet regularly to identify, analyze and solve
work-related problems. Kaizan is a philosophy of continuous improvement of working practices that
underlies total quality management and just-in-time business techniques.
7. Ans. C
Exp. Planning process involves a cycle of eight comprehensive and systematic steps. They are; 1) Being
aware of opportunity 2) Setting objective or goals 3) Considering planning premises 4) Identifying
alternative 5) Comparing alternatives in light of goals sought 6) Choosing and alternative 7) Formulating
supporting plans 8) Numbering plans by making budgets.
8. Ans. A
Exp. A bureaucracy (Weber) is a way of administratively organizing large numbers of people who need to
work together. Organizations in the public and private sector, including universities and governments, rely
on bureaucracies to function. The term bureaucracy literally means rule by desks or offices, a definition
that highlights the often impersonal character of bureaucracies. Scientific management, also called
Taylorism, is a theory of management that analyzes and synthesizes workflows. Its main objective is
improving economic efficiency, especially labor productivity. It was one of the earliest attempts to apply
science to the engineering of processes and to management. Barnard was the first to utilise the systems
approach to management. He believed that organisational survival and success depended on the creation of
co-operation by managers, and their navigation of the tension between individuals' personal motives (which
he called efficiency) in order to satisfy the objectives of the organisation (which he called effectiveness) to
achieve a balance between the two. Hugo Munsterberg was father of Industrial Psychology.
9. Ans. D
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HR-II-E
Exp. Manpower Planning which is also called as Human Resource Planning consists of putting right
number of people, right kind of people at the right place, right time, doing the right things for which they are
suited for the achievement of goals of the organization. Human Resource Planning has got an important
place in the arena of industrialization.
10. Ans. D
Exp. Collective bargaining is a process of negotiations between employers and a group of employees aimed
at reaching agreements to regulate working conditions. The interests of the employees are commonly
presented by representatives of a trade union to which the employees belong. In the 1950s and 1960s, when
the organized labour sector was at a nascent stage of its development without adequate unionization or with
trade unions, without adequate bargaining power, the Government of India, in appreciation of the problems
which arise in the arena of wage fixation due to absence of such bargaining power, constituted various
Wage Boards. The Wage Boards are tripartite in character in which representative of workers, employers,
independent members participate and finalize the recommendation. Wages are remuneration paid by the
employer for the services of hourly, daily, weekly and fortnightly employees. Salary is remuneration paid to
the clerical and managerial personnel on monthly or annual basis.
11. Ans. B
Exp. In general, grievance is a wrong or hardship suffered, whether real or supposed, which forms legitimate
grounds of complaint. A grievance is a complaint. It can be formal, like an employee files grievance because
of unsafe working conditions, or more of an emotional matter, like a grievance against an old friend who
betrayed you. A grievance is a complaint that may or may not be justified. Disciplinary and grievance
procedures are frameworks which provide clear and transparent structures for dealing with difficulties which
may arise as part of the working relationship from either the employers or employees perspective.
12. Ans. B
Exp. Recruitment is a positive process i.e. encouraging more and more employees to apply where as
selection is a negative process as it involves rejection of the unsuitable candidates. An induction
programme is the process used within many businesses to welcome new employees to the company and
prepare them for their new role. Performance Appraisal is the process by which a manager examines and
evaluates an employee's work behavior by comparing it with preset standards and uses the results
to provide feedback to the employee to show where improvements are needed and why.
13. Ans. D
Exp. Accounting is not a function of HRM.
14. Ans. B
Exp. There are two types of training. On The Job Techniques: 1 Coaching: In coaching the trainee is place
under a particular supervisor who acts as an instructor and teaches job knowledge and skills to the trainee. 2.
Job Rotation: The transferring of executive s from job to job and from department to department in a
systematic manner is called job rotation. 3. Under Study: An under study is as person who is in training to
assure at a future time, the full responsibility of the position currently held by his superior. 4 Multiple
Management: Multiple management is a system in which permanent advisory committees of managers study
problems of the company and make recommendations to higher management. Off The Job Technique: Case
Study: Cases are prepared on the basis of actual business situations that happened in various organizations.
Incident Method: This method was developed by Paul Pigors. It aims to develop the trainee in the area of
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HR-II-E
intellectual ability, practical judgment and social awareness. Role Playing: A problem situation is simulated
by asking the participants to assume the role of particular person in the situation. In Basket Method: The
trainees are first given background information about a simulated company, its products, key personnel,
various memoranda and all data pertaining to the firm. The trainee has to understand all of this and make
notes of it. Sensitivity Training: The main objective of sensitivity training is the Development of awareness
of and sensitivity of behavioral patterns of oneself and others. Simulation: Under this technique the
situation is duplicated in such a way that it carries a closer resemblance to the actual job situation.
Managerial grid: It is a six-phase programme lasting from three to five years. It starts with upgrading
managerial skills, continues to group improvement, improves inter group relations, goes into corporate
planning, develops implementation method and ends with an evaluation phase. Conference: A conference is
a meeting of several people to discuss the subject of common interest. Lectures: It is the simplest technique.
The lacquerer organizes the material and gives it to a group of trainees in the form of talks.
15. Ans. B
Exp. The BARS (behaviorally anchored rating scales) method of evaluating employees carries typical job
appraisals one step further: Instead of relying on behaviors that can be appraised in any position in a
company, the BARS method bases evaluations on specific behaviors required for each individual position in
an individual company.
16. Ans. A
Exp. Moonlighting is a term used to refer to holding a second job outside of normal working hours.
17. Ans. C
Exp. Content theories are also called needs theories, because they are generally associated with a view that
concentrates on the importance of determining 'what' motivates us. In other words they try to identify what
our 'needs' are and relate motivation to the fulfilling of these needs. Examples are Maslows Hierarchy of
Needs, "Management Assumptions" (Theory X and Theory Y), ERG Theory, McClellands Need for
Achievement, Affiliation and Power, Herzbergs' Two Factor Theory
18. Ans. B
Exp. Douglas McGregor further developed the needs concept of Maslow and specifically applied it to the
workplace. McGregor maintained that every manager made assumptions about their employees and adopted
a management approach based upon these assumptions. He maintained there were two main categories and
that managers adopted one or the other. The first category, which he termed Theory X, he maintained was
the dominant management approach and assumed 1) the average human being has an inherent dislike of
work and will avoid it if possible, 2) because of this most people needed to be coerced, controlled, directed
and threatened with punishment to get them to put adequate effort into the achievement of organisational
objectives, and 3) the average person prefers to be directed, wishes to avoid responsibility, has very little
ambition and wants security above all else. McGregor proposed an alternative set of assumptions which he
called Theory Y. The assumptions here are virtually the opposite to Theory X. They are: 1) Work is as
natural as play or rest. 2) External control and threat of punishment are not the only means of bringing about
effort towards organisational objectives. People will exercise self-direction and self-control towards the
achievement of objectives they are committed to. 3) Commitment to objectives is a function of the rewards
associated with their achievement. 4) The average person learns under proper conditions to not only accept
responsibility but also seek it.

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HR-II-E
19. Ans. A
Exp. Informal group is of a social nature. Such groups are more for the benefit of its members than for the
organisation in which they belong. An instance of informal group is the office hiking club. Informal groups
are open groups; members could change their membership at anytime as they move up the ladder of
leadership. There are different reasons why individuals join groups in organisations. Becoming a member of
an informal group could most of the time be spontaneous than joining a formal group. People join groups
such as trade unions to defend their employment rights, support groups for emotional support, to help them
carry out difficult tasks in other words to help them grow.
20. Ans. A
Exp. Kurt Lewin developed a change model involving three steps: unfreezing, changing and refreezing.
The model represents a very simple and practical model for understanding the change process. For Lewin,
the process of change entails creating the perception that a change is needed, then moving toward the new,
desired level of behavior and finally, solidifying that new behavior as the norm.
21. Ans. A
Exp. organizational commitment is the individual's psychological attachment to the organization. The basis
behind study of organizational commitment is to find ways to improve how workers feel about their jobs so
that these workers would become more committed to their organizations.
22. Ans. D
Exp. Tripartism is a system of labour relations in which the state, employers, and workers are autonomous
yet interdependent partners, pursuing common interests and participating in decisions affecting them in a
binding spirit of mutuality and reciprocity. This can take place at either or both macro and micro levels.
Tripartite consultation is an important feature of Indias industrial relationssystem. It has a long history in
India as it was set up as early as 1942. The Indian Labour Conference (ILC) and the Standing Labour
Committee (SLC) are two main forums for Tripartite Consultation. There are a number of tripartite bodies
which operate at the Central and State levels. The Indian Labour Conference, Standing Labour Committees,
Wage Boards and Industrial Committees operate at the Central level and State Labour Advisory Boards
operate at the state level. All these bodies play an important role in reaching at voluntary agreements on
various labour matters.
23. Ans. A
Exp. According to Industrial Disputes Act, 1947 works committee can be constituted if there are 100
workers in an organization.
24. Ans. C
Exp. Joint Management Council, Works Committee and Canteen Committee are three joint forums for
settlement of industrial disputes. Shop Level Council (SLC) are Constituted to discuss department level
issues - Improvement of production, productivity & efficiency, elimination of wastage, improvement in
working conditions, safety etc. The members include - Head of Department as the Chairman, 8-12 members
equally representing the management and employees.
25. Ans. D

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Exp. It was in 1854 that the first textile mill was set up in Bombay. But it was in 1890 that the first trade
unionThe Bombay Mill Hands Associationwas founded by Narayan Meghaji Lokhande (Father of
Industrail relations in India). First Factory Act was passed and implemented in 1881.
26. Ans. C
Exp. Establishment of Socialist society is long term objective of trade unions.
27. Ans. C
Exp. AITUC was formed in 1920, INTUC in 1947, BMS in 1954 and CITU in 1970, HMS in 1948.
28. Ans. C
29. Ans. C
Exp. Ishikawa diagrams (also called fishbone diagrams, herringbone diagrams, cause-and-effect diagrams,
or Fishikawa) are causal diagrams created by Kaoru Ishikawa that show the causes of a specific event.
Common uses of the Ishikawa diagram are product design and quality defect prevention, to identify potential
factors causing an overall effect. Each cause or reason for imperfection is a source of variation. Causes are
usually grouped into major categories to identify these sources of variation
30. Ans. D
31. Ans. C
32. Ans. A
Exp. Sec 4. of the Trade Union Act, 1926 describes about mode of registration. Any seven or more members
of a Trade Union may, by subscribing their names to the rules of the Trade Union and by otherwise
complying with the provisions of this Act with respect to registration, apply for registration of the Trade
Union under this Act. Recognition of trade union is not done under Trade Union Act, rather it is done by
Code of Conduct.
33. Ans. C
Exp. As per Section 2(n) (vi) of the Industrial Disputes Act, 1947, the appropriate Government may declare
any industry specified in the first Schedule of the Industrial Disputes Act, 1947 to be a public utility service
for a period of six months by issuing a Notification in the Official Gazette which may extend from time to
time for any period not exceeding six months if in the opinion of the appropriate Government public
emergency or public interest requires extension. Recently banking sector was included in the public utility
services.
34. Ans. D
Exp. Sec 7 of the payment of Wages Act , 1936 says about deduction. Deduction made for payment of debt
to money lender is not an authorized deduction under the payment of wages act,1936.
35. Ans. C
Exp. Under the Minimum Wages Act, 1948 there are two methods for fixation/revision of minimum wages,
namely:- 1) Committee method - Under this method, committees and sub-committees are set up by the
appropriate Governments to hold enquiries and make recommendations with regard to fixation and revision
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of minimum wages, as the case may be. 2) Notification method - Under this method, Government
proposals are published in the Official Gazette for information of the persons likely to be affected thereby
and specify a date not less than two months from the date of the notification on which the proposals will be
taken into consideration.
36. Ans. A
Exp. Payment of Bonus Act of 1965: This Act, applies to an enterprise employing 20 or more persons. The
Act requires employer to pay a bonus to persons on the basis of profits or on the basis of production or
productivity. The Act was modified to require companies to pay a minimum bonus, even if the employer
suffers losses during the accounting year
37. Ans. D
Exp. In every factory where more than 30 women are employed, a room shall be provided for the use of the
children (below 6 years) of such women. The room shall be adequate size. Well lighted and ventilated,
maintained in a clean and sanitary condition and shall be in charge of a woman trained in the care of children
and infants.
38. Ans. B
Exp. Harijan Sevak Sangh is a non-profit organisation founded by Mahatma Gandhi in 1932 to eradicate
untouchability in India, working for Harijan or Dalit people and up-liftment of Scheduled castes of India.
39. Ans. D
Exp. There are various theories of Labour welfare. 1- The Policing Theory 2- Religious Theory 3- The
Philanthropy Theory 4- The Trusteeship or Paternalistic Theory 5- Function Theory 6- The placating Theory
7- The Public Relation Theory
40. Ans. D
Exp. Intramural facilities - These are provided within the establishment such as rest centers canteen,
uniforms. Extramural facilities - These are activities which are undertaken outside the establishment such
as child welfare, transport facility etc.
41. Ans. C
42. Ans. D
43. Ans. B
Exp. Total concept emphasizes that the concept of labor welfare must spread to all levels of any
organizations. Health is one of the key issues for employees so its employer duty to provide an environment
for the same. Relative concept implies that welfare is related with time and place as it varies with its
context. Positive concept of labor welfare states that it gives employees a sense of safe, secure, healthy and
prosperous life. Social concept states that employer should ensure the welfare of employees, for their family
and society as a whole.
44. Ans. A

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Exp. Principles of Labour welfare are: Principle of co-ordination and integration. Principle of efficiency,
Principle of association, Principle of accountability, Principle of patronization, Principle of responsibility,
Workmens safety measures, Principle of timeliness.
45. Ans. C
Exp. Equal Remuneration Act, 1976 was enacted to check the payment of equal remuneration to men and
women workers and for the prevention of discrimination, on the ground of sex, against women in the matter
of employment and for matters connected therewith or incidental thereto.
46. Ans. B
Exp. In 1975, one of the populist measures adopted by the Government was a 20-point programme, and
workers participation was one of the points of this program.
47. Ans. A
Exp. Labour is not a commodity is the principle is expressed in the preamble to the International Labour
Organization's founding documents. It expresses the view that people should not be treated like inanimate
commodities, capital, another mere factor of production, or resources. Instead, people who work for a living
should be treated as human beings, and accorded dignity and respect.
48. Ans. B
Exp. The term industrial democracy was also used by British socialist reformers Sidney and Beatrice Webb
in their 1897 book Industrial democracy. Industrial democracy is an arrangement which involves workers
making decisions, sharing responsibility and authority in the workplace. Peter Ferdinand Drucker contributed
to the philosophical and practical foundations of the modern business corporation. Industrial citizenship is
where employees have the right to form and join unions and to engage in actions such as strikes in pursuit of
higher wages and better conditions of employment. Class conflict, frequently referred to as class warfare or
class struggle, is the tension or antagonism which exists in society due to competing socio economic interests
and desires between people of different classes. The view that the class struggle provides the lever for radical
social change for the majority is central to the work of Karl Marx and the anarchist Mikhail Bakunin. Robert
Marcus Owen was a Welsh social reformer and one of the founders of utopian socialism and the welfare
movement.
49. Ans. B
Exp. Some of the most important theories of wages are as follows: 1. Wages Fund Theory 2. Subsistence
Theory 3. The Surplus Value Theory of Wages 4. Residual Claimant Theory 5. Marginal Productivity
Theory 6. The Bargaining Theory of Wages 7. Behavioural Theories of Wages. 1) Wages Fund Theory:
This theory was developed by Adam Smith. His theory was based on the basic assumption that workers are
paid wages out of a pre-determined fund of wealth. This fund, he called, wages fund created as a result of
savings. According to Adam Smith, the demand for labour and rate of wages depend on the size of the wages
fund. Accordingly, if the wages fund is large, wages would be high and vice versa. 2) Subsistence Theory:
This theory was propounded by David Recardo. According to this theory, The labourers are paid to enable
them to subsist and perpetuate the race without increase or diminution. This payment is also called as
subsistence wages. The basic assumption of this theory is that if workers are paid wages more than
subsistence level, workers number will increase and, as a result wages will come down to the subsistence
level. 3) Surplus Value Theory of Wages: This theory was developed by Karl Marx . This theory is based
on the basic assumption that like other article, labour is also an article which could be purchased on payment
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of its price i.e. wages. This payment, according to Karl Marx, is at subsistence level which is less than in
proportion to time labour takes to produce items. The surplus, according to him, goes to the owner. Karl
Marx is well known for his advocation in the favour of labour. 4) Residual Claimant Theory: This theory
owes its development to Francis A. Walker. According to Walker, there are four factors of production or
business activity, viz., land, labour, capital, and entrepreneurship. He views that once all other three factors
are rewarded what remains left is paid as wages to workers. Thus, according to this theory, worker is the
residual claimant. 5) Marginal Productivity Theory: This theory was propounded by Phillips Henry Wicksteed (England) and John Bates Clark of U.S.A. According to this theory, wages is determined based on the
production contributed by the last worker, i.e. marginal worker. His/her production is called marginal
production. 6) Bargaining Theory of Wages: John Davidson was the propounder of this theory. According
to this theory, the fixation of wages depends on the bargaining power of workers/trade unions and of
employers. If workers are stronger in bargaining process, then wages tends to be high. In case, employer
plays a stronger role, then wages tends to be low.
50. Ans. A
Exp. The American economist Taussig gives a modified version of the Marginal Productivity Theory of
Wages. According to him, wages represent the marginal discounted product of labour. According to Taussig,
the labourer cannot get the full amount of the marginal output. This is because production takes time and the
final product of labour cannot be obtained immediately. But the labourer has to be supported in the
meantime. This is done by the capitalist employer. The employer does not pay the full amount of the
expected marginal product of labour. He deducts a certain percentage from the final output in order to
compensate himself for the risk he takes in making an advance payment. This deduction, according to
Taussig, is made at the current rate of interest.

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