Q. What are the components of Labor Law?

Q. Write a note on ESI Act.

THE EMPLOYEES STATE INSURANCE ACT, 1948 (ESI ACT)
(1) This Act may be called the
Employees State Insurance Act, 1948.
(2)It extends to The whole of India
(3)It shall come into force on such date or dates as the Central Government may,
by Notification in the Official Gazette, appoint, and different dates may be
appointed for different
Provisions of this Act and For different States or for different parts thereof
(4)It shall apply, in the first instance, to all factories (including factories belonging
to The [Government]other than seasonal factories.
[Provided that nothing contained in this sub-section shall apply to a factory or
establishment belonging to or under the control of the Government whose
employees are otherwise in receipt of benefits substantially similar or superior to
the benefits provided under this Act.].
(5)The appropriate Government may, in consultation with the Corporation and
[where the appropriate Government is a State Government, with the approval of
the Central Government], after giving[one months]notice of its intention of so
doing by notification in the Official Gazette, extend the provisions of this Act or
any of them, to any other establishment, or class of establishments, industrial,
commercial, agricultural or otherwise.[Provided that where the provisions of this
Act have been brought into force in any part of a State, the said provisions shall
stand extended to any such establishment or class of establishments within that part
if the provisions have already been extended to similar establishment or class of
establishments in another part of that State.

(6)A factory or an establishment to which this Act applies shall continue to be

governed by this Act notwithstanding that the number of persons employed therein
at any time falls below the limit specified by or under this Act or the manufacturing
process therein ceases to be carried on with the aid of power.

Q. Write in detail about the Leave Act

Family and Medical Leave Act of 1993
The Family and Medical Leave Act of 1993 (FMLA) is a United States federal
law requiring covered employers to provide employees job-protected and unpaid
leave for qualified medical and family reasons. Qualified medical and family
reasons include: personal or family illness, family military leave, pregnancy,
adoption, or the foster care placement of a child.
Benefits for employees mandated by the law
To qualify for the FMLA mandate, a worker must be employed by a business with
50 or more employees within a 75-mile radius of his or her worksite, or a public
agency, including schools and state, local, and federal employers (the 50-employee
threshold does not apply to public agency employees and local educational
agencies). He or she must also have worked for that employer for at least 12
months (not necessarily consecutive) and 1,250 hours within the last 12 months.
(There are special hours rules for certain airline employees.[15])
The FMLA mandates unpaid, job-protected leave for up to 12 weeks a year:
to care for a new child, whether for the birth of a son or daughter, or for the
adoption or placement of a child in foster care;

 to care for a seriously ill family member (spouse, son, daughter, or parent)
(Note: Son/daughter has been clarified by the Department of Labor to mean
a child under the age of 18 or a child over the age of 18 with a mental or
physical disability as defined by the American Disabilities Act, which
excludes among other conditions, pregnancy and post-partum recovery from
childbirth);[16]
to recover from a workers own serious illness;
to care for an injured service member in the family; or
to address qualifying exigencies arising out of a family members
deployment.
twenty-six workweeks of leave during a single 12-month period to care for a
covered servicemember with a serious injury or illness if the eligible
employee is the servicemembers spouse, son, daughter, parent, or next of
kin (military caregiver leave).[17]
Q. What do you understand by Labor union?
'Labour Union'
Labour unions or trade unions are organizations formed by workers from related
fields that work for the common interest of its members.
Definition: Labour unions or trade unions are organizations formed by workers
from related fields that work for the common interest of its members. They help
workers in issues like fairness of pay, good working environment, hours of work
and benefits. They represent a cluster of workers and provide a link between the

management and workers.

Description: The purpose of these unions is to look into the grievances of wagers
and present a collective voice in front of the management. Hence, it acts as the
medium of communication between the workers and management.
Regulation of relations, settlement of grievances, raising new demands on behalf of
workers, collective bargaining and negotiations are the other key principle
functions that these trade unions perform.
Function of labor union
Unions may organise a particular section of skilled workers (craft unionism),[2] a
cross-section of workers from various trades (general unionism), or attempt to
organize all workers within a particular industry (industrial unionism). The
agreements negotiated by a union are binding on the rank and file members and the
employer and in some cases on other non-member workers. Trade unions
traditionally have a constitution which details the governance of their bargaining
unit and also have governance at various levels of government depending on the
industry that binds them legally to their negotiations and functioning.
Originating in Great Britain, trade unions became popular in many countries
during the Industrial Revolution. Trade unions may be composed of individual
workers, professionals, past workers, students, apprentices and/or the unemployed
Q. Write a note on Labor court?
A labor court (or labour court or industrial tribunal) is a governmental
judiciary body which rules on labor or employment-related matters and disputes. In
a number of countries, labor cases are often taken to separate national labor high

courts. Other states, such as the United States, possess general non-judiciary labour
relations boards which govern union certifications and elections.
Definition of LABOR COURT
: a governmental agency established to adjudicate a management-labor dispute not
resolved by the parties involved or any dispute over contract interpretation; also :
a similar agency empowered only to subject disputants to compulsory investigation
LABOUR ACT 6 OF 1992
In this Act, unless the context indicates otherwise"casual employee"means a day worker who is em
ployed by the same employer on not more than two days in any week;
"collective agreement"means any agreement
in writing, the terms of which are negotiated by, entered into between, and signed
by or on behalf of- (a) on the one hand(i) any employer or group of employers;
(ii) any registered employers' organization or group of registered
employers' organizations;
(iii) any employer or group of employers and any registered employers'
organization or group of registered employers' organizations; and
(b) on the other hand any registered trade union or group of registered trade
unions, in relation to any terms and conditions of employment and any othermatter
of mutual interest
Offences relating to orders of Labour Court or district labour courts
Any person who contravenes or fails to comply with an order of the Labour Court
or district labour court shall be guilty of an offence and on conviction be liable to
the penalties which may by law be imposed for contempt of court.

Q. Explain in detail the need of Training & Development program

in organization
The Importance of Training & Development in the Workplace
Training presents a prime opportunity to expand the knowledge base of all
employees, but many employers find the development opportunities expensive.
Employees also miss out on work time while attending training sessions, which
may delay the completion of projects. Despite the potential drawbacks, training
and development provides both the company as a whole and the individual
employees with benefits that make the cost and time a worthwhile investment.
Addressing Weaknesses
Most employees have some weaknesses in their workplace skills. A training
program allows you to strengthen those skills that each employee needs to
improve. A development program brings all employees to a higher level so they all
have similar skills and knowledge. This helps reduce any weak links within the
company who rely heavily on others to complete basic work tasks. Providing the
necessary training creates an overall knowledgeable staff with employees who can
take over for one another as needed, work on teams or work independently without
constant help and supervision from others.
Improved Employee Performance
An employee who receives the necessary training is better able to perform her job.
She becomes more aware of safety practices and proper procedures for basic tasks.
The training may also build the employee's confidence because she has a stronger
understanding of the industry and the responsibilities of her job. This confidence

may push her to perform even better and think of new ideas that help her excel.
Continuous training also keeps your employees on the cutting edge of industry
developments. Employees who are competent and on top of changing industry
standards help your company hold a position as a leader and strong competitor
within the industry.
Consistency
A structured training and development program ensures that employees have a
consistent experience and background knowledge. The consistency is particularly
relevant for the company's basic policies and procedures. All employees need to be
aware of the expectations and procedures within the company. This includes safety,
discrimination and administrative tasks. Putting all employees through regular
training in these areas ensures that all staff members at least have exposure to the
information.
Employee Satisfaction
Employees with access to training and development programs have the advantage
over employees in other companies who are left to seek out training opportunities
on their own. The investment in training that a company makes shows the
employees they are valued. The training creates a supportive workplace.
Employees may gain access to training they wouldn't have otherwise known about
or sought out themselves. Employees who feel appreciated and challenged through
training opportunities may feel more satisfaction toward their jobs.
For delivering the customer expectations, it is essential that employees have the
requisite skills to perform the job assigned to them as per the job description. Just
theoretical knowledge is not enough. Employees need to have the skills to do their
jobs, i.e. technical, analytical and people skills. this necessitates requisite training

by trained and competent professionals. Training helps people to improve their

competencies, and is necessary for doing still better on the job in present and
future. Good training received also leads to better performance appraisal, which
leads to employee satisfaction, and even engagement. A well trained person goes
up high in his own esteem, and derives better job satisfaction from his work. Often,
skills become obsolete also due to the emergence of new technology, which
changes fast in some industries. So, employees need to update their skills to cope
with the new challenges. trining helps in the requisite updation of skills.
The importance of training and development to organisations cannot be
overemphasized. training and development empowers employees with requisite
skills and abilities to deliver quality performance, especially when all other things
are equal. sometimes though training and development may not yield the desired
results if its design did not consider transferability factors; i mean when trainnee
cannot transfer training skills to the job they do.
Training and development in organizations is very essential; they increase
knowlege to the participants, improve skills, and can amend attitudes.
It is very essential for the following reasons:
1. Help in addressing employee weaknesses
2. Improvement in workers performance
3. Consistency in duty performance
4. Ensuring worker satisfaction
5. Increased productivity
6. Improved quality of services and products
7. Reduced cost
8. Reduction in supervision

Training and development is geared at 1)addressing the weakest areas of an

organization 2) improve performance and productivity 3)improving the quality of
products and services of an organization 4) creates a sense of belonging for
workers 5) team work and 6) Innovation.
Q. Explain in detail different Training Method
List of Training Methods
Many methods of training are available- each has certain advantages and
disadvantages. Here we list the different methods of training...you can comment on
the pros and cons and make the examples concrete by imagining how they could be
applied in training truck drivers.
1. Technology-Based Learning
Common methods of learning via technology include:
Basic PC-based programs
Interactive multimedia - using a PC-based CD-ROM
Interactive video - using a computer in conjunction with a VCR
Web-based training programs
The forms of training with technology are almost unlimited. A trainer also gets
more of the learner''s involvement than in any other environment and trainees have
the benefit of learning at their own pace.

Example: In the trucking industry one can imagine interactive multimedia training
on tractor-trailers followed by a proficiency test to see how well the employee
knows the truck.
2. Simulators
Simulators are used to imitate real work experiences.
Most simulators are very expensive but for certain jobs, like learning to fly a 747,
they are indispensable. Astronauts also train extensively using simulators to imitate
the challenges and micro-gravity experienced on a space mission. The military also
uses video games (similar to the "shoot-em-up" ones your 14-year old plays) to
train soldiers.
Example: Truck drivers could use simulators to practice responding to dangerous
driving situations.
3. On-The-Job Training
Jumping right into work from day one can sometimes be the most effective type of
training.
Here are a few examples of on-the-job training:
Read the manual - a rather boring, but thorough way of gaining knowledge
of about a task.
A combination of observation, explanation and practice.
Trainers go through the job description to explain duties and answer
questions.

 Use the intranet so trainees can post questions concerning their jobs and
experts within the company can answer them.
On-the-job training gives employees motivation to start the job. Some reports
indicate that people learn more efficiently if they learn hands-on, rather than
listening to an instructor. However, this method might not be for everyone, as it
could be very stressful.
Example: New trucking employees could ride with experienced drivers. They
could ask questions about truck weigh stations, proper highway speeds, picking up
hitchhikers, or any other issues that may arise.
4. Coaching/Mentoring
Coaching/mentoring gives employees a chance to receive training one-on-one from
an experienced professional. This usually takes place after another more formal
process has taken place to expand on what trainees have already learned.
Here are three examples of coaching/mentoring:
Hire professional coaches for managers (see our HR.com article on
Understanding Executive Coaching)
Set up a formal mentoring program between senior and junior managers
Implement less formal coaching/mentoring to encourage the more
experienced employees to coach the less experienced.

Coaching/mentoring gives trainees the chance to ask questions and receive

thorough and honest answers - something they might not receive in a classroom
with a group of people.
Example: Again, truck drivers could gain valuable knowledge from more
experienced drivers using this method.
5. Lectures
Lectures usually take place in a classroom-format.
It seems the only advantage to a lecture is the ability to get a huge amount of
information to a lot of people in a short amount of time. It has been said to be the
least effective of all training methods. In many cases, lectures contain no form of
interaction from the trainer to the trainee and can be quite boring. Studies show
that people only retain 20 percent of what they are taught in a lecture.
Example: Truck drivers could receive lectures on issues such as company policies
and safety.
6. Group Discussions & Tutorials
These most likely take place in a classroom where a group of people discuss issues.
For example, if an unfamiliar program is to be implemented, a group discussion on
the new program would allow employees to ask questions and provide ideas on
how the program would work best.

A better form of training than lectures, it allows all trainees to discuss issues
concerning the new program. It also enables every attendee to voice different ideas
and bounce them off one another.
Example: Truck drivers could have group discussions and tutorials on safety
issues they face on the road. This is a good way to gain feedback and suggestions
from other drivers.
7. Role Playing
Role playing allows employees to act out issues that could occur in the workplace.
Key skills often touched upon are negotiating and teamwork.
A role play could take place between two people simulating an issue that could
arise in the workplace. This could occur with a group of people split into pairs, or
whereby two people role play in front of the classroom.
Role playing can be effective in connecting theory and practice, but may not be
popular with people who dont feel comfortable performing in front of a group of
people.
Example: Truck drivers could role play an issue such as a large line-up of trucks is
found at the weighing station and one driver tells another that he might as well go
ahead and skip the whole thing. Or role play a driver who gets pulled over by a
police officer and doesnt agree with the speeding charge.
8. Management Games
Management games simulate real-life issues faced in the workplace. They attract
all types of trainees including active, practical and reflective employees.

Some examples of management games could include:

Computer simulations of business situations that managers play.
Board games that simulate a business situation.
Games surrounding thought and creativity - to help managers find creative
ways to solve problems in the workplace, or to implement innovative ideas.
Example: In a trucking business, managers could create games that teach truckers
the impact of late deliveries, poor customer service or unsafe driving.
9. Outdoor Training
A nice break from regular classroom or computer-based training, the usual purpose
of outdoor training is to develop teamwork skills.
Some examples include:
Wilderness or adventure training - participants live outdoors and engage in
activities like whitewater rafting, sailing, and mountain climbing.
Low-impact programming - equipment can include simple props or a
permanently installed "low ropes" course.
High-impact programming - Could include navigating a 40-foot "high ropes"
course, rock climbing, or rappelling.
Outgoing and active participants may get the most out of this form of training. One
risk trainers might encounter is distraction, or people who dont like outdoor
activities.

Example: As truck drivers are often on the road alone, they could participate in a
nature-training course along with depot personnel to build esprit de corps.
10. Films & Videos
Films and videos can be used on their own or in conjunction with other training
methods.
To be truly effective, training films and videos should be geared towards a specific
objective. Only if they are produced effectively, will they keep the trainees
attention. They are also effective in stimulating discussion on specific issues after
the film or video is finished.
Films and videos are good training tools, but have some of the same disadvantages
as a lecture - i.e., no interaction from the trainees.
A few risks to think about - showing a film or video from an outside source may
not touch on issues directly affecting a specific company. Trainees may find the
information very interesting but irrelevant to their position in the company.
Some trainers like to show videos as a break from another training method, i.e. as a
break from a lecture instead of a coffee break.
This is not a good idea for two reasons. One: after a long lecture, trainees will
usually want a break from any training material, so a training film wouldnt be too
popular. Two: using films and videos solely for the purpose of a break could get
expensive.
Example: Videos for truckers could show the proper way to interact with
customers or illustrate preventive maintenance techniques.

11. Case Studies

Case studies provide trainees with a chance to analyze and discuss real workplace
issues. They develop analytical and problem-solving skills, and provide practical
illustrations of principle or theory. They can also build a strong sense of teamwork
as teams struggle together to make sense of a case.
All types of issues could be covered - i.e. how to handle a new product launch.
Example: Truck drivers could use case studies to learn what issues have been
faced in the trucking industry in the past and what they could do if a similar
situation were to occur.
12. Planned Reading
Basically planned reading is pre-stage preparation to more formal methods of
training. Some trainees need to grasp specific issues before heading into the
classroom or the team-building session.
Planned reading will provide employees with a better idea of what the issues are,
giving them a chance to think of any questions beforehand.
Example: Here we may be stretching if we think that truckers are going to read
through a lot of material the training department sends them.
Conclusion
Many avenues exist to train employees. The key is to match the training method to
the situation. Assess each training method implemented in the organization and get

feedback from trainees to see if they learned anything. Then take the results from
the most popular and most effective methods to design a specific training program.
Q. Write a note on Job analysis
Job analysis (also known as work analysis[1]) is a family of procedures to identify
the content of a job in terms of activities involved and attributes or job
requirements needed to perform the activities. Job analysis provides information to
organizations which helps to determine which employees are best fit for specific
jobs. Through job analysis, the analyst needs to understand what the important
tasks of the job are, how they are carried out, and the necessary human qualities
needed to complete the job successfully. The process of job analysis involves the
analyst describing the duties of the incumbent, then the nature and conditions of
work, and finally some basic qualifications. After this, the job analyst has
completed a form called a job psychograph, which displays the mental
requirements of the job.[2] The measure of a sound job analysis is a valid task list.
This list contains the functional or duty areas of a position, the related tasks, and
the basic training recommendations. Subject matter experts (incumbents) and
supervisors for the position being analyzed need to validate this final list in order
to validate the job analysis.[3] Job analysis is crucial for first, helping individuals
develop their careers, and also for helping organizations develop their employees
in order to maximize talent. The outcomes of job analysis are key influences in
designing learning, developing performance interventions, and improving
processes.[4] The application of job analysis techniques makes the implicit
assumption that information about a job as it presently exists may be used to
develop programs to recruit, select, train, and appraise people for the job as it will
exist in the future.[5]

Job analysts are typically industrial-organizational (I-O) psychologists or human

resource officers who have been trained by, and are acting under the supervision of
an I-O psychologist. One of the first I-O psychologists to introduce job analysis
was Morris Viteles. In 1922, he used job analysis in order to select employees for a
trolley car company. Viteles' techniques could then be applied to any other area of
employment using the same process
Purpose
One of the main purposes of conducting job analysis is to prepare job descriptions
and job specifications which in turn helps hire the right quality of workforce into
an organization. The general purpose of job analysis is to document the
requirements of a job and the work performed. Job and task analysis is performed
as a basis for later improvements, including: definition of a job domain; description
of a job; development of performance appraisals, personnel selection, selection
systems, promotion criteria, training needs assessment, legal defense of selection
processes, and compensation plans.[8] The human performance improvement
industry uses job analysis to make sure training and development activities are
focused and effective.[3] In the fields of human resources (HR) and industrial
psychology, job analysis is often used to gather information for use in personnel
selection, training, classification, and/or compensation.[9]
Industrial psychologists use job analysis to determine the physical requirements of
a job to determine whether an individual who has suffered some diminished
capacity is capable of performing the job with, or without, some accommodation.
Edwin Flieshman, Ph.D. is credited with determining the underlying factors of
human physical fitness.[10] Professionals developing certification exams use job
analysis (often called something slightly different, such as "task analysis" or "work

analysis") to determine the elements of the domain which must be sampled in order
to create a content valid exam. When a job analysis is conducted for the purpose of
valuing the job (i.e., determining the appropriate compensation for incumbents)
this is called "job evaluation."
Job analysis aims to answer questions such as:
Why does the job exist?
What physical and mental activities does the worker undertake?
When is the job to be performed?
Where is the job to be performed?
How does the worker do the job?
What qualifications are needed to perform the job?
Knowledge, skills, abilities and other characteristics (KSAOs)
Regardless of which approach to job analysis is taken, the next step in the process
is to identify the attributesthe KSAOs that an incumbent needs for either
performing the tasks at hand or executing the human behaviors described in the job
analysis.[15]
Knowledge: "A collection of discrete but related facts and information about
a particular domain...acquired through formal education or training, or
accumulated through specific experiences."
Skill: "A practiced act".

 Ability: "The stable capacity to engage in a specific behavior"

Other characteristics: "Personality variables, interests, training, and
experiences"
Methods
There are several ways to conduct a job analysis, including: interviews with
incumbents and supervisors, work methods of analysis can be laborious and time
consuming, and there is always a tendency on the part of management to over
analyze some jobs and under analyze some others. These traditional job analysis
methods include: one-on-one interviewing; behavioral event interviews; phone
interviews; surveys; work assessments; Developing a Curriculum (DACUM); job
analysis worksheets; observations and procedural review.[16] Job analysis at the
speed of reality. Amherst, Mass.: HRD Press. All of these methods can be used to
gather information for job analysis. The DACUM process developed in the late
1960s has been viewed as the fastest method used, but it can still can take two or
three days to obtain a validated task list.
Observation: This was the first method of job analysis used by I-O
psychologists. The process involves simply watching incumbents perform their
jobs and taking notes. Sometimes they ask questions while watching, and
commonly they even perform job tasks themselves. Near the end of World War II,
Morris Viteles studied the job of navigator on a submarine. He attempted to steer
the submarine toward Bermuda. After multiple misses by over 100 miles in one
direction or another, one officer suggested that Viteles raise the periscope, look for
clouds, and steer toward them since clouds tend to form above or near land masses.
The vessel reached Bermuda shortly after that suggestion. The more jobs one

seriously observes, the better one's understanding becomes of both the jobs in
question and work in general.
Interviews: It is essential to supplement observation by talking with
incumbents. These interviews are most effective when structured with a specific set
of questions based on observations, other analyses of the types of jobs in question,
or prior discussions with human resources representatives, trainers, or managers
knowledgeable about jobs.
Critical incidents and work diaries: The critical incident technique asks
subject matter experts to identify critical aspects of behavior or performance in a
particular job that led to success or failure. For example, the supervisor of an
electric utility repairman might report that in a very time-pressing project, the
repairman failed to check a blueprint and as a result cut a line, causing a massive
power loss. In fact, this is what happened in Los Angeles in September 2005 when
half the city lost power over a period of 12 hours. The second method, a work
diary, asks workers and/or supervisors to keep a log of activities over a prescribed
period of time. They may be asked to simply write down what they were doing at
15 minutes after the hour for each hour of the work day. Or, they may list
everything they have done up to a break.
Questionnaires and surveys: Expert incumbents or supervisors often respond
to questionnaires or surveys as a part of job analysis. These questionnaires include
task statements in the form of worker behaviors. Subject matter experts are asked
to rate each statement form their experience on a number of different dimensions
like importance to overall job success, frequency performance and whether the task
must be performed on the first day of work or can be learned gradually on the job.
Questionnaires also ask incumbents to rate the importance of KSAOs for
performing tasks, and may ask the subject matter experts to rate work context.
Unlike the results of observations and interviews, the questionnaire responses can

be statistically analyzed to provide a more objective record of the components of

the job. To a greater and greater extent, these questionnaires and surveys are being
administered online to incumbents.
Position Analysis Questionnaire: The Position Analysis Questionnaire (PAQ)
is a well-known job analysis instrument. Although it is labeled a questionnaire, the
PAQ is actually designed to be completed by a trained job analyst who interviews
the SMEs (e.g., job incumbents and their supervisors).[2] The PAQ was designed
to measure job component validity of attributes presented in aptitude tests. Job
component validity is the relationship between test scores and skills required for
good job performance. There are 195 behavior-related statements in the PAQ
divided into six major sections: information input, mental process, work output,
relationships with others, job context, and other job characteristics.
Checklists: Checklists are also used as a job analysis method, specifically with
areas like the Air Force. In the checklist method, the incumbent checks the tasks he
or she performs from a list of task statements that describe the job. The checklist is
preceded by some sort of job analysis and is usually followed by the development
of work activity compilations or job descriptions. The scope of task statements
listed depends upon the judgment of the checklist constructor.
Uses of information
1. Recruitment and selection: Job analysis provides information about what
the job entails and what human characteristics are required in order to
perform these activities. This information, in the form of job descriptions
and specifications, helps management officials decide what sort of people
they need to recruit and hire and select.

2. Compensation: Job analysis information is crucial for estimating the value

of each job and its appropriate compensation. Compensation (salary and
bonus) usually depends on the job's required skill and education level, safety
hazards, degree of responsibility, etc. -- all factors which can be assessed
through job analysis. Also, many employers group jobs into classes. Job
analysis provides the information to determine the relative worth of each job
and its appropriate class.
3. Performance appraisal: A performance appraisal compares each
employee's actual performance with his or her performance standards.
Managers use job analysis to determine the job's specific activities and
performance standards.
4. Training: The job description should show the activities and skills, and
therefore training, that the job requires
5. Discovering unassigned duties: Job Analysis can also help reveal
unassigned duties. For example, a company's production manager says an
employee is responsible for ten duties, such as production scheduling and
raw material purchasing. Missing, however, is any reference to managing
raw material inventories. On further study, it is revealed that none of the
other manufacturing employees are responsible for inventory management,
either. From review of other jobs like these, it is clear that someone should
be managing raw material inventories. Therefore, an essential unassigned
duty has been revealed.
6. EEO compliance: Job analysis plays a large role in EEO compliance.
United States Federal Agencies' Uniform Guidelines on Employee Selection

stipulate that job analysis is a necessary step in validating all major

personnel activities. For example, employers must be able to show that their
selection criteria and job performance are actually related. Doing this
requires knowing what the job entails, which in turn requires job analysis.[18]
Additional purposes: In addition to the 6 purposes above, Ash and Levine listed
determining KSAOs needed for promotion, determining workplace hazards to
make jobs safer, job classification, job description, designing the content of jobs,
and strategic human resource planning.
Q. Write a short note on : Welfare Of Workers
Employee Welfare - What Is Employee Welfare
Employee welfare is a term including various services, benefits and facilities
offered to employees by the employers. The welfare measures need not be
monetary but in any kind/forms. This includes items such as allowances, housing,
transportation, medical insurance and food. Employee welfare also includes
monitoring of working conditions, creation of industrial harmony through
infrastructure for health, industrial relations and insurance against disease, accident
and unemployment for the workers and their families. Through such generous
benefits the employer makes life worth living for employees.
Importance of Employee Welfare
As a business, you have to provide various benefits to ensure your employees'
welfare. While this may increase your business expense and negatively affect your
bottom line, looking after your employees will benefit you in other ways.

Compliance:
As an owner, you are required by law to provide certain benefits for the welfare of
your employees. You may have to match the Social Security taxes your employees
pay and obtain a worker's compensation insurance policy. If you terminate an
employee, you may have to funds to extend his health insurance.
Hiring and Retention:
The benefits an employee receives from his employer for his welfare are often a
significant reason why he decides to accept a job offer. As such, providing
employee benefits allow you to compete with other businesses to recruit and retain
qualify employees. If other employers offer better benefits, good employees may
choose to go there.
Employees Motivation:
By providing a plan that's good for employees' welfare, you show them that you
value them. This can help make them feel welcome and happy in your company,
motivating them to work harder. If your health plan has wellness coverage and
preventative care, employees are more likely to stay healthy, cutting down on
absenteeism and sick days.
Employees' Well-Being:
For companies that have a large base of employees working under stressful
conditions or living away from family, it is important to look at fostering personal
happiness and professional growth. Investing in employees pays dividends in terms
of higher productivity and greater loyalty
Company Image:
Providing a good employee welfare plan reflects well on your business, building a
good company image. It may even earn you some press coverage, giving you free

publicity to improve awareness among potential customers. This may boost your
sales and increase your profits.
Features of Employee Welfare
Employee welfare is a comprehensive term including various services,
facilities and amenities provided to employees for their betterment.
Welfare measures are in addition to regular wages and other economic
benefits available to employees under legal provisions and collective
bargaining.
The basic purpose of employee welfare is to improve the lot of the working
class and thereby make a worker a good employee and a happy citizen.
Employee welfare is an essential part of social welfare. It involves
adjustment of an employee's work life and family life to the community or
social life.
Welfare measures may be both voluntary and statutory.
How to Develop an Effective Employee Welfare Program
Conduct employee surveys to understand their needs and expectations
Indentify key areas of building skills and engagement and facilitating
trainings for the same
Propose solutions for personal upkeep, family uplifting and future security

 Create opportunities for greater synergies between the management and

employees
Conduct impact assessments and feedback surveys
Q. Write a short note on: Annual leave with wages
(1) Every worker who has worked for a period of 240 days or more in a factory
during a calendar year shall be allowed during the subsequent calendar year, leave
with wages for a number of days calculated at the rate of :i.

if an adult, one day for every twenty days of work performed by him during
the previous calendar year ;

ii.

if a child, one day for every fifteen days of work performed by him during
the previous calendar year.
Explanation1: For the purposes of this sub-section :a. any days of lay-off; by agreement or contract or as permissible under the
standing orders;
b. in the case of a female worker, maternity leave for any number of days not
exceeding twelve weeks; and
c. the leave earned in the year prior to that in which the leave is enjoyed; shall
be deemed to be days on which the worker has worked in a factory for the
purpose of computation of the period of 240 days or more, but he shall not
earn leave for these days.

Explanation 2: The leave admissible under this sub-section shall be

exclusive of all holidays whether occurring during or at either end of the
period of leave.
(2) A worker whose service commences otherwise than on the first day of January
shall be entitled to leave with wages at the rate laid in clause (i) or, as the case may
be, clause (ii) of sub-section (1) if he has worked for two-thirds of the total number
of days in the remainder of the calendar year.
26

[(3) If a worker is discharged or dismissed from service or quits his employment

or is superannuated or dies while in service,during the course of the calendar year,

he or his heir or nominee, as the case may be,shall be entitled to wages in lieu of
the quantum of leave to which he was entitled immediately before the discharge,
dismissal, quitting of employment, superannuating or death calculated at the rates
specified in sub-section (1),even if he had not worked for the entire period
specified i sub- section(1) or sub-section(2) making him eligible to avail of such
leave, and such payment shall be madei.

where the worker is discharged or dismissed or quits employment, before the

expiry of the second working day from the date of such discharge, dismissal
or quitting; and

ii.

where the worker is superannuated or dies while in service, before the expiry
of two months from the date of such superannuating or death.]

(4) In calculating leave under this section, fraction of leave of half a day or more
shall be treated as one full day's leave and fraction of less than a half a day shall be
omitted.

(5) If a worker does not in any one calendar year take the whole of the leave
allowed to him under sub-section (1) or sub-section (2),as the case may be, any
leave not taken by him shall be added to the leave to be allowed to him in the
succeeding calendar year :
Provided that the total number of days of leave that may be carried forward
to a succeeding year shall not exceed thirty in the case of an adult or forty in
the case of a child :
Provided further that a worker, who has applied for leave with wages but has
not been given such leave in accordance with any scheme laid down in subsections (8) and (9) 27[or in contravention of sub-section (10)] shall be
entitled to carry 2 forward the 28[leave refused] without any limit.
(6) A worker may at any time apply in writing to the manager of a factory not less
than fifteen days before the date on which he wishes his leave to begin, to take all
the leave or any portion thereof allowable to him during the calendar year :
Provided that the application shall be made not less than thirty days before
the date on which the worker wishes his leave to begin, if he is employed in
a public utility service as defined in clause (n) of section 2 of the Industrial
Disputes Act, 1947 (XIV of 1947) :
Provided further that the number of times in which leave may be taken
during any year shall not exceed three.
(7) If a worker wants to avail himself of the leave with wages due to him to cover a
period of illness, he shall be granted such leave even if the application for leave is
not made within the time specified in sub-section (6); and in such a case wages as

admissible under section 81 shall be paid not later than fifteen days, or in the case
of a public utility service not later than thirty days from the date of the application
for leave.
(8) For the purpose of ensuring the continuity of work, the occupier or manager of
the factory, in agreement with the Works Committee of the factory constituted
under section 3 of the Industrial Disputed Act, 1947 (XIV of 1947), or a similar
Committee under any other Act or if there is no such Works Committee or a similar
Committee in the factory, in agreement with the representatives of the workers
therein chosen in the prescribed manner, may lodge with Chief Inspector a scheme
in writing whereby the grant of the leave allowable under this section may be
regulated.
(9) A scheme lodged under sub-section (8) shall be displayed at some conspicuous
and convenient places in the factory and shall be in force for a period of twelve
months from the date on which it comes into force, and may thereafter be renewed
with or without modification for a further period of twelve months at a time, by the
manager in agreement with the Works Committee or a similar Committee, or as the
case may be,in agreement with the representatives of the workers as specified in
sub-section (8), and a notice of renewal shall be sent to the Chief Inspector before
it is renewed.
(10) An application for leave which does not contravene the provisions of subsection (6) shall not be refused, unless refusal is in accordance with the scheme for
the time being in operation under sub-sections (8) and (9).
(11) If the employment of a worker who is entitled to leave under sub-section(1) or
sub-section (2), as the case may be, is terminated by the occupier before he has

taken the entire leave to which he is entitled, or if having applied for and having
not been granted such leave, the worker quits his employment before he has taken
the leave, the occupier of the factory shall pay him the amount payable under
section 80 in respect of the leave not taken,and such payment shall be made, where
the employment of the worker is terminated by the occupier, before the expiry of
the second working day after such termination, and where a worker who quits his
employment, on or before the next pay day.
(12) The unavailed leave of a worker shall not be taken into consideration in
computing the period of any notice required to be given before discharge or
dismissal.
Q. state the object of Employees' Provident Fund And Miscellaneous
Provisions Act, 1952 and explain Employees' Provident Funds scheme.
The Employees' Provident Fund And MP Act, 1952
Purpose & Object
The Employees' Provident Funds & Miscellaneous Provisions Act, 1952 has
been enacted with the main objective of protecting the interest of the employees
after their retirement and their dependents after death of the employee. The Act
provides insurance to workers and their dependents against risks of old age,
retirement, discharge, retrenchment or death.
THE EMPLOYEES PROVIDENT FUNDS AND MISCELLANEOUS
PROVISIONS ACT, 1952
4thMarch, 1952
An Act to provide for the institution of provident funds, pension fund and deposit
linked insurance fund for employees in factories and other establishments.

Object of the act is

1. to provide substational security
2. timely monatry assistance to (i) employes
(ii)family members

Objective: To provide for the institution of Provident Funds, Pension Funds and
Deposit Linked Savings Insurance Funds for employees in factories and other
establishments.
Employer responsible for depositing employees and employers share into the
fund
Extended to plantations of Tea, Coffee, Rubber, Cardamom and Pepper
employing 50 or more workers
Central Government by a two-month notice can extend the Act to other
establishments even when it has less then 20 members
Two conditions for applying the act in Scheduled industry:
Manufacturing process must be carried. Establishment must be engaged in
an industry specified in Schedule I
Not less then 20 persons should be employed
The expression '20 persons' was replaced later with '20 employees'.
EPF Act will apply to establishments after 5 years of the starting of the
manufacturing process by the establishment

 Once the condition for application of the scheme under the Act are fulfilled, it
applies (and continues to apply) even if the Act ceases to apply to the
establishment. This is because the scheme depends on its own and not on the Act
for its functioning. The admission on the part of the employer that 20 employees
worked only at least one day is sufficient for the Act to apply.
Employees' Provident Fund Scheme, 1952 :.
SHORT TITLE AND APPLICATION.1. (1) This Scheme may be called the Employees' Provident Funds Scheme, 1952.
(2) 1Save as otherwise provided in the Scheme, this Chapter and Chapters II and
III shall come into force at once and the remaining provisions shall come into force
on such date or dates as the Central Government may by notification in the Official
Gazette appoint and different dates may, be appointed for different provisions.
The Employees' Provident Fund Scheme, 1952.
he Employees' Provident Fund Organization (EPFO) is a statutory body of the
Government of India under the Ministry of Labour and Employment. It administers
a compulsory contributory Provident Fund Scheme, Pension Scheme and an
Insurance Scheme. It is one of the largest provident fund institutions in the world
in terms of members and volume of financial transactions that it has been carrying
on.
Applicability Of The Employees' Provident Fund Scheme, 1952.
The Employees' Provident Fund and Miscellaneous Provisions Act 1952 applies to
the whole India except Jammu & Kashmir.

Employees' Provident Fund and Miscellaneous Provisions Act 1952 is applicable

to:
Every establishment which is engaged in any one or more of the
industries specified in Schedule I of the Act or any activity notified by
Central Government in the Official Gazette. (List of
Industries/Establishments)
Employing 20 or more persons .
Cinema Theatres employing 5 or more persons.

The Act does not apply to:

The co-operative societies employing less than 50 persons and working
without the aid of power. 16(1)(a)
The establishment to which this Act applies shall continue to be governed by
this Act , even if the number of employees falls below 20 at a later date.
[ 1(5)].
16(1)(b) Establishments under the control of state/central Govt.& employees
who are getting benefits in the nature of 16(1) (b) contributory P.F. or old
age pension as per rules framed by the Govt.

 16(1)(c) Establishment set up under any central, provincial or state act and
the employees who are getting benefits in the nature of contributory P.F. or
old age pension as per rules.
Employee Definition:
"Employee" as defined in Section 2(f) of the Act means any person who is
employee for wages in any kind of work manual or otherwise, in or in connection
with the work of an establishment and who gets wages directly or indirectly from
the employer and includes any person employed by or through a contractor in or in
connection with the work of the establishment.
Basic Wages:
"Basic Wages" means all emoluments which are earned by employee while on duty
or on leave or holiday with wages in either case in accordance with the terms of the
contract of employment and witch are paid or payable in cash, but dose not include
1. The cash value of any food concession;
2. Any dearness allowance (that is to say, all cash payment by whatever name
called paid to an employee on account of a rise in the cost of living), house
rent allowance, overtime allowance, bonus, commission or any other
allowance payable to the employee in respect of employment or of work
done in such employment.
3. Any present made by the employer.
Employee Provident Fund Scheme:
Employees' Provident Fund Scheme takes care of following needs of the members:

(i) Retirement
(iv) Family obligation

(ii) Medical Care

(iii) Housing

(v) Education of Children

(vi) Financing of Insurance Polices

Q. Explain the provision in sickness benefit & maternity benefit. Of the employees'
state insurance act, 1948
THE EMPLOYEES' STATE INSURANCE ACT, 1948
ACT NO. 34 OF 1948 1*
[19th April, 1948.]
An Act to provide for certain benefits to employees in case of sickness, maternity and
employment injury and to make provision for certain other matters in relation thereto.
WHEREAS it is expedient to provide for certain benefits to employees in case of sickness,
maternity and employment injury and to make provision for certain other matters in relation
thereto;

SICKNESS BENEFIT

Benefits
1) Free medical treatment is offered to covered employees at hospital and
dispensaries run by the ESI Corporation.

2) About 7/12th of employees normal wage will be payable to him by ESI

during sickness.
3) Maternity benefit for 12 weeks of which not more than 6 weeks should be
preceding confinement.
4) Injury during/in course of employment resulting in temporary/permanent
disablement entitles the covered employee to a regular payment to substitute
his lost wages.
5) Death during course of employment entitles specified dependents to a
regular payment.
6) One time payment of Rs. 1,500 to help meet funeral expenses.
a) Sickness

I.P. Should work91 days in any As per S.B.R.

Benefit.

for wages for 78 two consecutive

days in the

Only to the
insured person

B.P.

corresponding
C.P.(wef 19-94}Maternity

98).
Payment of

Benefits

contribution for which not more Subject t o min

12 weeks of

70 days in one than 6 weeks

or two

can precede the

consecutive

expected date of

periods.

confinement.

Twice S.B.R.
of Rs.20/- p.d.

Only to the
insured
person.

SICKNESS BENEFIT. [Section 49]

As prescribed by the central government,
Sickness Benefit represents periodical cash payments made to an IP during the
period of certified sickness occurring in a benefit period when IP requires medical
treatment and attendance with abstention from work on medical grounds. Sickness
benefit is roughly 60% of the average daily wages and is payable for 91 days
during 2 consecutive benefit periods.
Qualifying Conditions
To become eligible to Sickness Benefit, an Insured Person should have paid
contribution for not less than 78 days during the corresponding contribution
period.
A person who has entered into insurable employment for the first time has to
wait for nearly 9 months before becoming eligible to sickness benefit,
because his corresponding benefit period starts only after that interval.

Extended Sickness Benefit (ESB)

IPs suffering from long term diseases was experiencing great hardship on expiry of
91 days Sickness benefit. Often they, though not fit for duty, pressed for a Final
certificate. Hence, a provision for paying Sickness Benefit for an extended period
(Extended Sickness Benefit)of up to 2 years in a ESB period of 3 years.

An Insured Person suffering from certain long term diseases is entitled to ESB,
only after exhausting Sickness Benefit to which he may be eligible. A common list
of these long term diseases for which ESB is payable, is reviewed by the
Corporation from time to time. The list was last reviewed on 5.12.99 and revised
provisions of ESB became effective from 1.1.2000 and at present this list includes
34 diseases which are grouped in 11 groups as per International Classification of
diseases and the names of many existing diseases have been changed as under :I Infectious Diseases
1. Tuberculosis
2. Leprosy
3. Chronic Empyema
4. AIDS
II Neoplasms
5. Malignant Diseases
III Endocrine, Nutritional and Metabolic Disorders
6. Diabetes Mellitus-with proliferative retinopathy/diabetic foot/nephropathy.
IV Disorders of Nervous System
7. Monoplegia
8. Hemiplegia
9. Paraplegia
10. Hemiparesis
11. Intracranial Space Occupying Lesion
12. Spinal Cord Compression

13. Parkinsons disease

14. Myasthenia Gravis/Neuromuscular Dystrophies
V Disease of Eye
15. Immature Cataract with vision 6/60 or less
16. Detachment of Retina
17. Glaucoma
VI Diseases of Cardiovascular System
18. Coronary Artery Disease:a. Unstable Angina
b. Myocardial infraction with ejection less than 45%
19. Congestive Heart Failure- Left , Right
20. Cardiac Valvular Diseases with failure/complications
21. Cardiomyopathies
22. Heart disease with surgical intervention alongwith complications
VII Chest Diseases
23. Bronchiectasis
24. Interstitial Lung Disease
25. Chronic Obstructive Lung Diseases (COPD) with congestive heart failure (Cor
Pulmonale)
VIII Diseases of the Digestive System
26. Cirrhosis of liver with ascities/chronic active hepatitis
IX Orthopaedic Diseases

27. Dislocation of vertebra/prolapse of intervertebral disc

28. Non union or delayed union of fracture
29. Post Traumatic Surgical amputation of lower extremity
30. Compound fracture with chronic osteomyelitis
X Psychoses
31. Sub-group under this head are listed for clarification
a. Schizophrenia
b. Endogenous depression
c. Manic Depressive Psychosis (MDP)
d. Dementia
XI Others
32. More than 20% burns with infection/complication
33. Chronic Renal Failure
34. Reynauds disease/Burgers disease.
In addition to the above list, Director General/Medical Commissioner are
authorised to sanction ESB for a maximum period up to 730 in cases of rare but
treatable diseases or under special circumstances, such as, adverse reaction to
drugs which have not been included in the above list, depending on the merits of
each case, on the recommendations of RDMC/AMO or either authorised officers
running the medical scheme.
To be entitled to the Extended Sickness Benefit an Insured Persons should have
been in continuous employment for 2 years or more at the beginning of a spell of
sickness in which the disease is diagnosed and should also satisfy other

contributory conditions.
According to Section 69, employer shall be liable for payment of excess sickness
benefit, if the sickness to the insured person/ employee is caused by the negligence
and improper maintenance & no cleanliness of factory or establishment.

50. MATERNITY BENEFIT.

As prescribed by the central government,
Maternity Benefit is payable to an Insured Woman in the following cases subject to
contributory conditions: Confinement-payable for a period of 12 weeks (84 days)
Miscarriage or Medical Termination of Pregnancy (MTP)-payable for 6
weeks (42 days) from the date following miscarriage.
Sickness arising out of Pregnancy, Confinement, Premature birth-payable for
a period not exceeding one month.
In the event of the death of the Insured Woman during confinement leaving
behind a child, Maternity Benefit is payable to her nominee
Maternity benefit rate is double the Standard Benefit Rate, or roughly equal
to the average daily wage..

Q. What Is the Difference Between Performance Appraisal &

Performance Management?
Although human resources purists point out the numerous distinctions between the
two, in practice, performance appraisal and evaluation are used interchangeably.
Both refer to a process by which your employer reviews how well you've done
your job and possibly determines any increases in salary or benefits you'll receive
as a result. In strict terms, however, an evaluation generally precedes an appraisal.
the basic difference is that once is a process & another an outcome .. An appraisal
has to be preceeded by evaluation but the converse is not true .. An evaluation need
not necessarily lead to appraisal , it may purely for providing development
opportunities or a basic snapshot/track down of the current level of performance
The basic difference between evaluation and performance is the earlier is the tool
to measure the strength and weakness of employees and the later is used to analyze
the individual's weakness and provide training to overcome the shortcomings.
What Are the Different Types of Performance Appraisal?
A performance appraisal, or performance review, is a formal interaction between
an employee and her manager. This is when the performance of the employee is
assessed and discussed in thorough detail, with the manager communicating the
weaknesses and strengths observed in the employee and also identifying
opportunities for the employee to develop professionally. In most instances, a
performance appraisal is completed quarterly or annually.
360-Degree Feedback
A common performance appraisal method is the 360-degree feedback. In this
scenario, whoever conducts the appraisal, such as a human resources manager,

interviews an employee’s supervisor, peers and any direct reports. This

technique allows an appraiser to gain a complete profile of the employee. In
addition to gauging the worker’s job performance and technical skill
set, an appraiser receives in-depth feedback on the employee's
behavior. Measuring areas of subjectivity, such as character and leadership skills,
allows an employer to manage an employee’s development.
Management By Objectives
Management by objectives (MBO) is another modern method of performance
appraisal. This technique was first promoted in the 1950s by management theorist
Peter Drucker. MBO requires a manager and employee to agree upon specific,
obtainable objectives with a set deadline. For example, a sales manager may be
required to increase his revenue by 25 percent within three months. Once this goal
is set, the responsibility is on the sales manager to direct himself towards the
objective. With this technique, success or failure is easily defined.
Ratings Scale
An alternate type of performance appraisal is the ratings scale. This methodology
requires an employer to develop an in-depth grading system, similar to the way
students in school are assessed. This scale is then used to evaluate an
employee’s success within a variety of areas, such as technical skill
set, teamwork and communication skills. There is typically a minimum required
grade an employee must receive in order for the performance appraisal to be
considered a success. Those that do not make the grade are often put on a
performance improvement plan. This method is viewed by some management
theorists as an egalitarian way of measuring individual performance.
Q. Explain in detail types of Performance Appraisal

Performance Appraisal - Types of Performance Appraisal

A performance appraisal, or performance review, is a formal interaction between
an employee and her manager. This is when the performance of the employee is
assessed and discussed in thorough detail, with the manager communicating the
weaknesses and strengths observed in the employee and also identifying
opportunities for the employee to develop professionally.
Here are some different types of performance appraisals that can be performed
depending upon the needs of the organization or the employee.
General Appraisal
In this method there is an ongoing communication between the manager and
employee throughout the entire year. At the end of the year they will determine
whether the pre-set goals and objectives were met, provide feedback, and set new
goals.
The 360-Degree Appraisal
In this process of appraisal involves allowing other employees to fill out a
questionnaire detailing their experiences with a specific employee. The feedback of
peers can be reviewed by the manager and considered during the appraisal.
Technological/Administrative Performance Appraisal
In this its focuses more on technical skill than anything else because these
employees have expert tasks. They are judged on specific skills, the amount of
work they produce/complete, and a variety of other tasks.
Manager Performance Appraisal
In this appraisal managers must go through the appraisal process. This type of
appraisal usually covers both job skill as well as human resource skill, as most

managers usually have clients to keep happy as well as a team to keep organized.
Most often a manager appraisal will include feedback from team members, usually
obtained secretly.
Employee Self-Assessment
This type of appraisal is one of the most dreaded by employees as no one seems to
enjoy rating themselves. Most often the self-assessment is compared to an
assessment completed by the manager and then discussion regarding the
differences follows.
Project Evaluation Review
A project evaluation review is a great project management tool. Instead of waiting
until the end of the year an employee or team is reviewed at the end of each
project. This gives them the tools necessary to make adjustments for the next
project.
Sales Performance Appraisal
Sales performance appraisals are often the easiest to conduct but the most painful.
A salesperson is simply judged on his results versus his set goals and salesmen are
often held to their financial goals more than any other section of the organization.
A manager and salesperson must discuss ways to achieve their goals or changes
that need to be made to make them reachable yet still realistic.
Performance appraisal
emphasizes measurement but not necessarily between pre agreed performances
goals, which makes it part of PM. Appraisals are an ongoing process and important
aspect of everyday life. (Tahvanainen, 1998) When it comes to appraisals it is
important that it is done by the right person with a good instrument, is objective
and give constructive feedback.(Latham, Almost, Mann & Moore, 2005) Even

though appraisal is an important part of the evaluation process, the others should
not be neglected. (Vance & Paik, 2006) Left out in this discussion is the
reward system, while many companies don t wish to link salary and bonus
discussions to the appraisal. Data used for determine pay and promotion should be
discussed in another meeting. Others, like Tahvanainen, 1998 includes
it in PM saying that performance is typically linked to pay. Without linking it to
pay or other reinforcement it is often difficult to sustain
Q.Explain Performance Measurement in Multinational Corporations
For multinational corporations (MNC) operating as global businesses with global
workforces, the challenge of managing diverse operations in diverse markets has
never been greater. These MNCs are concerned with the constraints in integrating
dispersed units without stifling local subsidiary initiatives while simultaneously
facilitating cross-border transfers of resources and information. Both academics
and practitioners have been urged to develop better metrics that ease the process of
performance management. While rigorous research has been conducted in relation
to generic performance measurement systems, little research has been done
regarding the implications of measurement paradigms for MNCs. In order to align
adequately the worldwide processes, decisions and actions with corporate goals, a
cross-functional, cross-process and cross-border approach is needed. By addressing
this deficiency, this paper explores the role of performance measurement within the
context of managing MNCs, and presents an integrated framework for performance
measurement, which is stated from the viewpoint of both the global headquarters
and local subsidiaries. This framework incorporates both financial and nonfinancial measures, and gives an adequate consideration to intangible assets. This
paper has practical implications on firms seeking international expansions.

Performance incentives in multinational companies can be a conflict issue.

Employees and management can have different views of fair and just pay and
rewards on performance. Furthermore there are cultural influences on the
employees and the managements understanding of good performance. These
cultural influences can differ from country to country and complicate the
standardization of performance management policies in multinational companies.
Right here, the WZB-research project comes in. Based on case studies of
multinational companies, the project explores cultural understandings of
performance and their relationship with performance management policies.
The project deals with two main questions. First, it analyses how cultural factors
influence the understanding of good performance and of fair rewards for
performance. Cultural factors refer among others also to traditions of industrial
relations and to trade unions views on performance and incentives. Second, the
project examines the fit between the employees understanding of performance and
fair rewards and the actual performance management policies in multinational
companies. The main interest lies on affinities between cultures and the usage of
individual, team based, monetary or career based incentives. The study includes in
addition factors which can influence the acceptance of performance management
policies such as the inclusion of employee representatives in the design of
performance management policies.