Summer 20016 HRM

Q3.

b) Write a note on Ethnocentric, polycentric and

Geocentric as to classify top executives values?

ANS:

Definition of Ethnocentric: Evaluating other cultures according

to preconceptions originating in the standards and customs of
one's own culture.

Ethnocentrism: is a major reason for divisions amongst

members of different ethnicities, races, and religious groups in
society. Ethnocentrism is the belief of superiority is one's personal
ethnic group, but it can also develop from racial or religious
differences.

Ethnocentric individuals believe that they are better than other

individuals for reasons based solely on their heritage. Clearly, this
practice is related to problems of both racism and prejudice.

While many people may recognize the problems, they may not
realize that ethnocentrism occurs everywhere and everyday at
both the local and political levels.
Definition Polycentric marketing: is a type of global marketing
in which companies attempt to spread out the appeal of their
products or services among multiple countries. It occurs when
a business decides to broaden its operations and focus on sales
outside of its home country.

Polycentric staffing: is an international staffing method in which

multinational corporations treat each subsidiary as a separate
national entity with some individual decision-making authority
and hire host-country nationals as managers .
Geocentric model: (also known as geocentrism, or the Ptolemaic
system) is a superseded description of the universe with
the Earth at the center. Under the geocentric model,
the Sun, Moon, stars, and planets all circled Earth.[1]The
geocentric model served as the predominant description of the
cosmos in many ancient civilizations, such as those
of Aristotle and Ptolemy.

Two observations supported the idea that the Earth was the
center of the Universe. First, the Sun appears to revolve around
the Earth once per day. While the Moon and the planets have their
own motions, they also appear to revolve around the Earth about
once per day. The stars appeared to be on a celestial sphere,
rotating once each day along an axis through the north and south
geographic poles of the Earth.[2] Second, the Earth does not
seem to move from the perspective of an Earth-bound observer; it
appears to be solid, stable, and unmoving.

Ancient Greek, ancient Roman and medieval philosophers usually

combined the geocentric model with a spherical Earth. It is not
the same as the older flat Earth model implied in
some mythology.[n 1][n 2][5] The ancient Jewish
Babylonian uranography pictured a flat Earth with a dome-shaped
rigid canopy named firmament placed over it. (- rqa').[n 3]
[n 4][n 5][n 6][n 7][n 8]However, the ancient Greeks believed that
the motions of the planets were circular and not elliptical, a view
that was not challenged in Western culture until the 17th century
through the synthesis of theories by Copernicus and Kepler.

OR
Q3 a) Explain the provisions of strike and lock-out under Industrial
Dispute Act, 1947

Ans:
Provision of valid strike under the Industrial Dispute Act,
1947-

Section 2(q) of said Act defines the term strike, it says, "strike"
means a cassation of work by a body of persons employed in any
industry acting in combination, or a concerted refusal, or a
refusal, under a common understanding of any number of persons
who are or have been so employed to continue to work or accept
employment. Whenever employees want to go on strike they
have to follow the procedure provided by the Act otherwise there
strike deemed to be an illegal strike. Section 22(1) of the
industrial
Dispute Act, 1947 put certain prohibitions on the right to strike. It
provides that no person employed in public utility service shall go
on strike in breach of contract:
Without giving to employer notice of strike with in six weeks
before striking; or
Within fourteen days of giving such notice; or
Before the expiry of the date of strike specified in any such notice
as aforesaid; or
During the pendency of any conciliation proceedings before a
conciliation officer and seven days after the conclusion of such
proceedings.
It is to be noted that these provisions do not prohibit the workmen
from going on strike but require them to fulfill the condition before
going on strike. Further these provisions apply to a public utility
service only. The Industrial Dispute Act, 1947 does not specifically
mention as to who goes on strike. However, the definition of strike
itself suggests that the strikers must be persons, employed in any
industry to do work.

Notice of strike
Notice to strike within six weeks before striking is not necessary
where there is already lockout in existence. In mineral Miner
Union vs. Kudremukh5 Iron Ore Co. Ltd., it was held that the
provisions of section 22 are mandatory and the date on which the
workmen proposed to go on strike should be specified in the
notice. If meanwhile the date of strike specified in the notice of
strike expires, workmen have to give fresh notice. It may be noted
that if a lock out is already in existence and employees want to
resort to strike, it is not necessary to give notice as is otherwise
required. In Sadual textile Mills v. Their workmen6 certain
workmen struck work as a protest against the lay-off and the
transfer of some workmen from one shift to another without
giving four days notice as required by standing order 23. On these
grounds a question arose whether the strike was justified. The
industrial tribunal answered in affirmative. Against this a writ
petition was preferred in the High Court of Rajasthen. Reversing
the decision of the Tribunal Justice Wanchoo observed:
"We are of opinion that what is generally known as a lightning
strike like this take place without notice. And each worker
striking .(is) guilty of misconduct under the standing orders
and liable to be summarily dismissed(as) the strike cannot be
justified at all. "

General prohibition of strike-

The provisions of section 23 are general in nature. It imposes
general restrications on declaring strike in breach of contract in
the both public as well as non- public utility services in the
following circumstances mainly: -
During the pendency of conciliation proceedings before a board
and till the expiry of 7 days after the conclusion of such
proceedings;
During the pendency and 2 months after the conclusion of
proceedings before a Labour court, Tribunal or National Tribunal;
During the pendency and 2 months after the conclusion of
arbitrator, when a notification has been issued under sub- section
3 (a) of section 10 A;
During any period in which a settlement or award is in operation
in respect of any of the matter covered by the settlement or
award.
The principal object of this section seems to ensure a peaceful
atmosphere to enable a conciliation or adjudication or arbitration
proceeding to go on smoothly. This section because of its general
nature of prohibition covers all strikes irrespective of the subject
matter of the dispute pending before the authorities. It is
noteworthy that a conciliation proceedings before a conciliation
officer is no bar to strike under section 23.
In the Ballarpur Collieries Co. v. H. Merchant7 it was held that
where in a pending reference neither the employer nor the
workmen were taking any part, it was held that section 23 has no
application to the strike declared during the pendency of such
reference.

Illegal Strike-

Section 24 provides that a strike in contravention of section 22

and 23 is illegal. This section is reproduced below:
A strike or a lockout shall be illegal if,
It is commenced or declared in contravention of section 22 or
section 23; or
It is continued on contravention of an order made under sub
section (3) of section 10 or sub section (4-A) of section 10-A.
Where a strike or lockout in pursuance of an industrial dispute has
already commenced and is in existence all the time of the
reference of the dispute to a board, an arbitrator, a Labour court,
Tribunal or National Tribunal, the continuance of such strike or
lockout shall not be deemed to be illegal;, provided that such
strike or lockout was not at its commencement in contravention of
the provision of this Act or the continuance thereof was not
prohibited under sub section (3) of section 10 or sub section (4-A)
of 10-A.
A strike declared in the consequence of an illegal lockout shall not
be deemed to be illegal.

B)Explain the objectives and limitation of Minimum Wages

Act.

Ans:

Introduction :

In this unit we are going to discuss on Minimum wages Act

1948.According to the Act, the Act enables the Central and State
Government to fix minimum rates of wages payable to employees
in a selected number of sweated industries. There are certain
provisions under the Act. You will get a fair idea on the important
provisions of the Act while going through this unit.

OBJECT AND SCOPE

The main objective of this Act, is fixing a minimum rate of wages

in number of industries where the labours are not organized and
sweated labours are most dominant. The Act aims at preventing
the exploitation of workers or labours in some industries, for
which, the appropriate Government is empowered to take steps to
prescribe minimum rates of wages in certain employment.
The Minimum Wages Fixing Machinery convention was held at
Geneva in the year 1928 by ILO with reference to remuneration of
workers in those industries where the, level of wages was
substantially low and the labour was vulnerable to exploitation,
being not well organised and having less effective bargaining
power.
This Act may be called the Minimum Wages Act 1948.The Act
enables the Central and State Government to fix minimum rates
of wages payable to employees in selected number of sweated
industries. The Act extends to the whole of India

DEFINITIONS

Following are some of the definitions and sections under the Act:

1. Adolescent [2. (a)]: adolescent" means a person who has

completed his fourteenth year of age but has not completed
his eighteenth year.
2. Adult [2. (aa)]: "adult" means a person who has completed
his eighteenth year of age.
3. Appropriate government [2. (b)]: "appropriate government"
means:
(i) in relation to any scheduled employment carried on by or
under the authority of the Central Government or a railway
administration] or in relation to a mine oil field or major port
or any corporation established by a Central Act the Central
Government and
 (ii) in relation to any other scheduled employment the State
Government;
4. Child [2. (bb)]: "child" means a person who has not
completed his fourteenth year of age.
5. Competent authority [2. (c)]: "competent authority" means
the authority appointed by the appropriate government by
notification in its Official Gazette to ascertain from time to
time the cost of living index number applicable to the
employees employed in the scheduled employments
specified in such notification.
6. Cost of living index number [2. (d)]: "cost of living index
number" in relation to employees in any scheduled
employment in respect of which minimum rates of wages
have been fixed means the index number ascertained and
declared by the competent authority by notification in the
Official Gazette to be the cost of living index number
applicable to employee in such employment.
7. Employer [2. (e)]: "employer" means any person who
employs whether directly or through another person or
whether on behalf of himself or any other person one or
more employees in any scheduled employment in respect of
which minimum rates of wages have been fixed under this
Act and includes except in sub-section (3) of section 26:
i. in a factory where there is carried on any scheduled
employment in respect of which minimum rates of wages
have been fixed under this Act any person named under
clause (f) of sub-section (1) of section 7 of the Factories Act
1948 (63 of 1948) as manager of the factory;

ii. in any scheduled employment under the control of any

government in India in respect of which minimum rates of
wages have been fixed under this Act the person or authority
appointed by such government for the supervision and
control of employees or where no person or authority is so
appointed the head of the department
 iii. in any scheduled employment under any local authority
in respect of which minimum rates of wages have been fixed
under this Act the persons appointed by such authority for
the supervision and control of employees or where no person
is so appointed the chief executive officer of the local
authority;
iv. in any other case where there is carried on any scheduled
employment in respect of which minimum rates of wages
have been fixed under this Act any person responsible to the
owner for the supervision and control of the employees or for
the payment of wages;
8. Prescribed [Sec.2 (f)]: "prescribed" means prescribed by
rules made under this Act.
9. Schedule employment [Sec.2 (f)]: "schedule employment"
means an employment specified in the Schedule or any
process or branch of work forming part of such employment
10. Wages [Sec.2(h)] : "wages" means all remuneration capable
of being expressed in terms of money which would if the
terms of money which would be payable to a person
employed in respect of his employment or of work done in
such employment and includes house rent allowance but
does not include
i. the value of:

a) Any house accommodation supply of light water

medical attendance or
b) Any other amenity or any service excluded by
general or special order of the appropriate government;
ii. any contribution paid by the employer to any person
fund or provident fund or under any scheme of social
insurance;
iii. Any traveling allowance or the value of any traveling
concession;
 iv. any sum paid to the person employed to defray special
expenses entailed on him by the nature of his
employment; or
v. any gratuity payable on discharge;
11. Employee [Sec.2 (i)]: "employee" means any person who is
employed for hire or reward to do any work skilled or
unskilled manual or clerical in a scheduled employment in
respect of which minimum rates of wages have been fixed;
and includes an out-worker to whom any articles or materials
are given out by another person to be made up cleaned
washed altered ornamented finished repaired adapted or
otherwise processed for sale for the purposes of the trade or
business of that other person where the process is to be
carried out either in the home of the out-worker or in some
other premises not being premises under the control and
management of that other person; and also includes an
employee declared to be an employee by the appropriate
government; but does not include any member of the Armed
Forces of the Union.
FIXATION AND REVISION OF WAGES (Sec 3 to Sec 5)

The fixation and revision of wages falls under the Sec 3, Sec 4 and
sec 5. Sec 3 deals with, the appropriate government fix the
minimum wages that is payable to the employees in any
scheduled employment. The sec 4 describes on the contents of
minimum wages. Sec 5 lays down the procedure for fixing and
revising the minimum rates of wages.

Minimum Number of Employees: The appropriate government can

forbear from fixing minimum rate of wages of any scheduled
employment in which there are less than 1,000 employees in the
organization. But if the appropriate government find after an
inquiry that there are more than 1,000 employees in any
scheduled employment, it shall fix the minimum rate of wages
payable as soon as after the finding.
1. Fixing of minimum rates of wages (Sec. 3): Under sec 3, the
appropriate Government fix the minimum rate of wages .The
appropriate government-
a. shall fix the minimum rate of wages payable to the employees
employed in the employment specified in Part I or part II of the
schedule( the schedule is reproduced at the end of the unit) and
in an employment to either by notification in official Gazette.

b. the employees employed in the employment specified in Part II

of the schedule ( the schedule is reproduced at the end of the
unit), fix the minimum rate of wage for apart of the state or for
any specified class, instead of fixing the minimum rate of wages
for the whole state.

c. shall review the minimum rate of wages so fixed and revise the
same , at such intervals not exceeding 5 years.

Minimum rates: The Appropriate Government may fix:

a. minimum rate of wages for time work (hereinafter referred to

as "a minimum time rate");
b. minimum rate of wages for piece work (hereinafter referred
to as "a minimum piece rate");
c. a minimum rate of remuneration to apply in the case of
employees employed on piece work for the purpose of
securing to such employees a minimum rate of wages on a
time work basis (hereinafter referred to as "a guaranteed
time rate");
d. a minimum rate (whether time rate or piece rate) to apply in
substitution for the minimum rate which would otherwise be
applicable in respect of overtime work done by employees
(hereinafter referred to as "over time rate").
Different minimum rates: The different minimum rates of
wages may be fixed for-
a. different scheduled employments;
b. different classes of work in the scheduled employment;
c. adults, adolescents, children and apprentice
2. Minimum Rate of Wages (Sec 4): The appropriate governments
fix or revise minimum rate of wages may consists of-

a. a basic rate of wages and special allowance

b. a basic rate of wages with or with the cost of living allowance

c. an all inclusive rate allowing for the basic rate, the cost of living
allowance and the cash value of the concessions

3. Procedure for fixing and revising minimum wages (Sec 5):

There are two separate modes of procedure for fixing and revising
minimum wages under sec 4.the main object of both the
procedures is to enable the government to reach a balanced
conclusion with regard to fixation of a minimum wage. The two
modes are as follows:

a. Mode one: Appointment of Committee: The appropriate

government should appoint as many committees or sub-
committees as to hold necessary inquires for fixation of minimum
rates of wages.

b. Mode two: Publication of proposals in the official gazette: The

appropriate government shall by notification in the official
Gazette, publish its proposals for the information of the person
who is likely to be affected by the fixation of minimum rates of
wages.

Q4. A) Discuss some major mistakes that take place during

interview process. If you are an interviewer, how would you avoid
them?

Ans:

20 Common interview mistakes to avoid the biggest job interview mistakes

The following are the ost common mistakes people make in
interviews the biggest make or break interviewing mistakes:

1. Lack of a good preparation: A research failure and lack of

knowledge are the first mistakes one want to avoid. One has to
prepare himself making a good research on the company, the
position and for every related questions that may be asked.
Therefore, refine your answers to the technical questions, the
hard questions and to the frequently asked interview questions.
The more you practice, the more professional answers you deliver.

2. Failure to highlight your achievements: you should provide

good examples of your background and skills against the position.
Why you are good fit for the position? Sell yourself. Take the
opportunity to talk about your past experience and
achievements sell yourself to the said position.

3. Few words answers or talking too much: uttering

unexpected answers like saying the wrong things, wrong ideas,
too-short-answers or at the opposite too-long-answers are the
guaranteed ways to get eliminated from consideration.

4. Arriving late: avoid arriving late to job interviews.

Though it may happen because of many good reasons, you should
apologize first for recovering from this first interaction failure.

5. Dressing inappropriately: you should dress for an interview

success as your job interview dress code is the first impression
you make. So, show up like one who really wants the job.

6. Body language failures: a poor eye contact, bad handshake,

sitting inappropriately and not smiling naturally are the best
recipes for losing a job interview. Dont let nerves get the better
of you relax before an interview. Smile when it seems the right
time and keep an eye contact with the interviewer as these little
things make a difference.
7. Lack of integrity un-loyal a complainer: avoid negative
speeches and complain dont say bad things about previous jobs
and employers as this reflects back to you. The first impression
you create when youre negative about someone is that your
loyalty and integrity is questionable. How you speak about your
previous employers gives an idea of how youll speak about the
next employers.

8. Interrupting the interviewer: you should firstly listen

carefully to the interviewer questions before answering. You want
your answers to be precise and professional. Therefore, respond
only after you fully understand the question.

9. Rambling the answer to weaknesses and strengths: refer

to the article how to answer weakness and strength question.

10. Bringing up personal details: when answering the

questions tell me about yourself candidates sometimes think
the interviewer wants personal stories sadly this is not the case.
In fact, this is one of the most common interview mistakes. Be
sure you have a set clear story about who you are, what you are
about this career and most importantly what you want to achieve
from this position. Therefore, avoid offering irrelevant personal
details unless you are asked. Refer to the article interview
question tell us about yourself.

11. Failure to ask good questions: when it is your turn to ask

questions, you should show your interest about the job by asking
intelligent questions about the job opportunities and the position
duties. Asking questions clearly indicates that you have done your
homework about the organization. However, do not ask too many
questions for the sake of asking questions connect yourself to
the job and take the initiative to ask technical questions and other
questions that present your ambitious to advance your career.

12. Asking about salary: you should avoid asking about salary
during an interview unless and until the interviewer mention this
issue. You dont want the employer think that all you are
interested in is how much they pay. Many interviewers want have
some details about your salary expectations so let them make the
first move. You may ask about salary range only after several
interview interactions and at the very end of an interview as a
curious question.

13. Being unprofessional: do not forget why you are there

keep it professional and be serious. Though some interviews are
set in a comfortable atmosphere that may trick you, remember to
focus on your objectives and the said job description.

14. Not asking about the next interviewing process: once

the interview has concluded, you should state that you are
interested in the job and like to know about the next interview
stage. Let the interviewer know your thoughts dont let him guess
that the job is in your best interests.

15. Smoking before the interview: it smells and draws a

negative impression before you even start the interview.

16. Answering cell phone calls in an interview: this is one of

the biggest interview mistakes and one of the worse manners. You
dont want the interviewer wait for you to hang up the cell-phone
during the job interview. Needless to say that answering a call
during an interview is the worse thing you can do.

17. Failure to show an interest and motivation about the

said job: and about the company and the profession. Your
answers as well as your questions as an interviewee should reflect
your enthusiasm about the industry that you are applying for. The
attitude is one of the must have interactions between two
professionals. Therefore, lack of passion and failure to show
ambition is one of these job interview mistakes you want to avoid.

18. Over confidence: an inflated ego drives bad reactions and

antagonism. Do not exaggerate your achievements be honest
and humble. Many employers follow up asking your
references about every aspect you have provided them.

19. Lying: lies have short legs. If the interview goes to delicate
topics, the best way is being honest and mature enough to handle
these questions properly. The employers may call your references
and other colleges to verify your answers.

20. Not following up after the interview: if you dont follow

up with a thank you email/note or a letter after an interview, you
may miss a good opportunity to present your interest about the
said job. Read follow up after interview.

Q4 b) Define Industrial Dispute? Explain the method to

resolve Industrial Dispute.

Ans:

Introduction:

According to Sec. 2 of the Industrial Dispute Act, 1947, Industrial

dispute means any dispute or difference between employers and
employers or between employers and workmen or between
workmen and workmen, which is connected with the employment
or non-employment or the terms of employment or with the
conditions of labour of any person Industrial disputes are of
symptoms of industrial unrest in the same way that boils are
symptoms of a disordered body.

Whenever an industrial dispute occurs, both management and

workers try to pressurize each other. The management may resort
to lock-out and the workers may resort to strike, gherao,
picketing, etc

Strike:
Strike is a very powerful weapon used by a trade union to get its
demands accepted. It means quitting work by a group of workers
for the purpose of bringing pressure on their employer to accept
their demands. According to Industrial Disputes Act, 1947, Strike
means a cessation of work by a body of persons employed in any
industry acting in combination, or a concerted refusal or a refusal
under a common understanding of any number of persons who
are or have been so employed, to continue to work or to accept
employment

(i) Primary Strikes:

These strikes are generally aimed against the employers with

whom the dispute exists. They may include the form of a stay-
away strike, stay-in, sit-down, pen-down or tools- down, go-slow
and work-to-rule, token or protest strike, cat-call strike, picketing
or boycott.

(ii) Secondary Strikes:

These strikes are also called the sympathy strikes. In this form of
strike, the pressure is applied not against the employer with
whom the workmen have a dispute, but against the third person
who has good trade relations with the employer.

Lock-out:

Lock-out is declared by the employers to put pressure on their

workers. It is an act on the part of the employers to close down
the place of work until the workers agree to resume the work on
the terms and conditions specified by the employers.
The Industrial Disputes Act, 1947 has defined lock-out as closing
of a place of employment or the suspension of work or the refusal
by an employer to continue to employ any number of persons
employed by him. Lock-outs are declared to curb the activities of
militant workers. Generally, lock-out is declared 25 a trial of
strength between the management and its employees

4 Methods used for Preventing and Settling Industrial Disputes

Some of the methods used for preventing and settling industrial

disputes are: 1. Collective bargaining 2. Mediation, 3. Conciliation
and 4. Arbitration

1. Collective Bargaining:

Collective Bargaining is the process of negotiating terms of

employment and other conditions of work between the
representatives of management and organised labour. When it is
free of intimidation and coercion and is conducted in good faith,
collective bargaining culminates in a workable contract i.e., labour
contract

A labour contract is a collective agreement between the

representatives of labour and management for the sale of labour
services at designated wage rates, hours of work, and other terms
of employment and conditions of work for a stated period of time.

The contract usually calls for joint enforcement and

administration of the agreement. Responsible labour leaders and
employers are increasingly settling their differences around the
conference table rather than through industrial warfare. The
process of bargaining the settlement of disputes is often
facilitated through outside assistance in the form of conciliation,
mediation, or arbitration.

2. Mediation:

Mediation is an attempt to settle disputes with the help of an

outsider who attempts to stimulate labour and management to
reach some type of agreement. The mediator, unlike an arbitrator,
cannot decide the issue. He listens, suggests, communicates and
persuades. He does not give any award.

3. Conciliation:

Conciliation is merely the bringing together by a third party the

two parties in disputes.

4. Arbitration:

Arbitration is resorted to by the parties fail to arrive at a

settlement by voluntary method. The parties to the dispute may
then appoint an arbitrator and refer the dispute to him. The
arbitration award is binding upon the parties who referred the
dispute to arbitration. Arbitration can be either voluntary or
compulsory.

OR

Q4 a) Discuss Safety provision as contained in Factories

Act, 1948.
Ans:

It is has been repeated

Q4.b) Explain the objectives of Workers Participation in

Management with different methods?

Ans:
6 Forms of Worker Participation in Management

Some of the forms of worker participation in management of the

company are: 1. Co-Ownership 2. Seat On Board Of Directors 3.
Works Committee 4. Joint Management Councils 5. Profit Sharing
and 6. Suggestion Scheme.

The form or the way in which the workers can participate in the
management varies a great deal. The form varies from country to
country and even from undertaking to undertaking. Even in
Communist countries, the methods of participation are not
uniform.

Besides, the form also varies from organisation to organisation

depending upon the level of power or authority enjoyed by the
managers at different levels in different types of organisations.
Workers participation in management may take the form of
ascending or descending participation. In ascending participation
an opportunity is given to the workers to participate in the
decision making process at a higher level.

1. Co-Ownership:

Workers are made shareholders by allotting those shares in the

company. They are employees as well as owners of the business
concern. Thus, their participation in the management is
automatically guaranteed

2. Seat On Board Of Directors:

In this case the workers representative is given a seat on the

boards of directors. In advanced countries like Britain and U.S.A.,
trade unions have already rejected this idea. It is generally felt
that the workers do not understand the intricacies of
management.

Moreover, their representatives being in minority may not have

much say in the decision making whereas that decision will be
applicable to all the employees. By remaining out of the board,
they can keep a better check on the management.

The Sachar Committee studied the problems of workers

participation in management and observed Conditions must be
created where the worker directors are able to play a helpful and
effective role. It is apparent that as a member of the board, the
worker director will familiarise himself with subjects with which he
was not associated before. The training of the employees must,
therefore, be immediately taken in hand.

3. Works Committee:

These committees have been regarded as the most effective

social institution of industrial democracy. The need for their
constitution has been emphasised as early as 1931 by the Royal
Commission on Labour

It was again emphasised by the Industrial Truce Resolution on

1947, which recommended their constitution in each industrial
undertaking for the settlement of any dispute which may arise in
future.

This recommendation was given effect to in the Industrial

Disputes Act of 1947. Section 3 of the Act provides for these
bodies in every undertaking employing 100 or more workmen.

4. Joint Management Councils:

Joint committees for settlement of grievances or specific problems

may be set up for promoting workers participation in
management. Workers representatives sit with the management
across the table to discuss matters which fall within its purview.
The main object of such councils is to give an opportunity to
workers to understand the working of the industry and satisfy
their urge for self-expression.
5. Profit Sharing:

Workers feel involved in the management especially when they

are given a share in profits of the business.

6. Suggestion Scheme:

Suggestion scheme may also be introduced for creating interest in

the work by announcing a suitable reward for original and useful
suggestions. Employees can put their suggestions in the
suggestion boxes which are installed in the various departments.
 GUJARAT TECHNOLOGICAL UNIVERSITY

MBA SEMESTER II EXAMINATION WINTER 2015

Q1.b) Explain the following terms?

1. Outsourcing: In business, outsourcing involves

the contracting out of a business process (e.g. payroll
processing, claims processing) and operational, and/or non-
core functions (e.g. manufacturing, facility management, call
center support) to another party (see also business process
outsourcing). The concept "outsourcing" came from the
American Glossary 'outside resourcing' and it dates back to
at least 1981.[1][2] Outsourcing sometimes involves
transferring employees and assets from one firm to another,
but not always.[3]Outsourcing is also the practice of handing
over control of public services to private enterprise.[4]

Outsourcing includes both foreign and domestic contracting,

[5] and sometimes includes off shoring (relocating a
business function to a distant country)[6] or near
shoring (transferring a business process to a nearby
country). Many people confuse outsourcing and off shoring
however they are different. A company can outsource (work
with a service provider) and not offshore to a distant country.
 For example, in 2003 Procter and Gamble outsourced their
facilities management support, but it did not involve off
shoring. Financial savings from lower international labor
rates can provide a major motivation for outsourcing or off
shoring. There can be tremendous savings from lower
international labor rates when off shoring.

1. Structured Interview: A structured interview (also known as

a standardized interview or a researcher-administered survey)
is a quantitative research method commonly employed in
survey research. The aim of this approach is to ensure that
each interview is presented with exactly the same questions in
the same order.

2. De jobbing: dejobbing pertains to broadening the

responsibilities of individuals & departments In a company, and
encouraging employees not to limit themselves to their job
description . It represents the gradual reverse of the process
that created on employment driven economy now becoming
obsolete.

3. Layoff: Suspension or termination of employment (with or

without notice) by the employer or management. Layoffs are
not caused by any fault of the employees but by reasons such
 as lack of work, cash, or material. Permanent layoff is called
redundancy.

Q1: c) Briefly explain case study as a method of

Management Development

Q2. A) Define Job Analysis. Discuss in detail the methods

of collecting Job Analysis

Job analysis is the process of gathering and analyzing information about the content

and the human requirements of jobs, as well as, the context in which jobsare

performed. This process is used to determine placement of jobs

Job analysis, contains a simple term called "analysis", which means detailed study or

examination of something (job) in order to understand more about it (job). therefore job

analysis is to understand more about a specific job in order to optimise it. Job analysis

is a systematic process of collecting complete information pertaining to a job. Job

analysis is done by job analyst who is an officer have been trained for it.

Job analysis is a procedure through which you determine the duties and responsibilities,

nature of the jobs and finally to decide qualifications, skills and knowledge to be

required for an employee to perform particular job. Job analysis helps to understand
what tasks are important and how they are carried on. Job analysis forms basis for later

HR activities such as developing effective training program, selection of employees,

setting up of performance standards and assessment of employees ( performance

appraisal)and employee remuneration system or compensation plan.

Methods of Data Collection for

Job Analysis
Job analysis is based on job data. Hence the question: how to collect job related data?

A variety of methods are available for collecting job data.The method that was

historically linked to the concept of job analysis was observation supplemented by the

interview.

In recent years, questionnaires, check lists, critical incidents, diaries, personnel records

and technical conference method have also been experimented for collecting job-

related data. A brief description of each method is in order

Observation:

Under this method, data is collected through observing an employee while at work. The

job analyst on the basis of observation carefully records what the worker does, how

he/she does, and how much time is needed for completion of a given task. This is the

most reliable method of seeking first hand information relating to a job.

This method is suitable for jobs that consist primarily of observable physical ability, short

job cycle activities. The jobs of draftsman, mechanic, spinner or weaver are the

examples of such jobs. However, the flip side of this method is that this method is not
suitable for jobs that involve unobservable mental activities reveal overlaps and grey

areas and have not complete job cycle.

Interview:

In this method, the job analyst directly interviews the job holder through a structured

interview form to elicit information about the job. This method is found suitable

particularly for jobs wherein direct observation is not feasible. By way of directly talking

to the job holder, the interviewer job analyst may extract meaningful information from

the job holder about his/her job.

However the interview method is both time consuming and costly. Particularly, the

professional and managerial jobs due to their complicated nature of job, require a longer

interview This may also be a possibility that bias on the part of the analyst and the job

holder i.e., the respondent may cloud the accuracy and objectivity of the information

gathered through interview. Nonetheless, the effectiveness of the interview method will

depend on the ability of both interviewer and respondent in asking questions and

responding them respectively

Questionnaire:

Questionnaire method of job data collection is desirable especially in the following two

situations:

First, where the number of people doing the same job is large and to personally

interview them is difficult and impracticable.

Second, where giving enough time to employees is desirable to enable them to divulge

and explore the special aspects of the jobs.

In this method, the employee is given structured questionnaire to fill in, which are then

returned to the supervisors. The supervisor, after making the required and necessary

corrections in the information contained in the questionnaire, submits the corrected

information to the job analyst. Questionnaire provides comprehensive information about

the job.

Checklists:

The checklist method of job data collection differs from the questionnaire method in the

sense that it contains a few subjective questions in the form of yes or no. The job holder

is asked to tick the questions that are related to his/her job. Checklist can be prepared

on the basis of job information obtained from various sources such as supervisors,

industrial engineers, and other people who are familiar with the particular job.

Once the checklist is prepared, it is then sent, to the job holder to check all the tasks

listed in the list he/she performs. He/she is also asked to mention the amount of time

spent on each task by him/her and the type of training and experience required to do

each task. Information contained in checklist is, then, tabulated to obtain the job-related

data.

Critical Incidents:

This method is based on the job holders past experiences on the job. They are asked

to recapitulate and describe the past incidents related to their jobs. The incidents so

reported by the job holders are, then, classified into various categories and analysed in

detail. Yes, the job analyst requires a high degree of skill to analyse the incidents

appropriately described by the job holders. However, this method is also time-

consuming one.
Q2.b) Prepare a detailed note on various stages of Selection Process of

Salespeople of FMCG products.

1. Receiving applications from Salesperson

Applications are received from eligible candidates for the salesperson job. The

candidates might have been asked to send their applications in a plain paper along with

their bio-data.

Some organizations make available what are called Application Blanks, which may be

obtained on payment of the prescribed fee. Unlike the application form, which is

prepared by the candidate himself in a plain paper, the application blank made available

by the employer, has certain advantages. These are:

Advantages of Application blanks

1. Application Blanks contains fixed data pertaining to the name of the candidate, his

qualification, address, etc., and the candidate has to just fill it up.

2. It ensures uniformity.

3. Application blanks facilitates quick processing of applications.

4. The employer can get all the necessary information, he wants, from the candidates. A

candidate submitting his application in a plain paper will only state his plus points. For

example, if he has secured only third class in his degree he may not mention it.
2. Scrutinizing Applications of Salespersons

The applications received from all the candidates for the salesperson job will then have

to be processed. Incomplete applications will be set aside. Applications of those

candidates who fail to fulfill the eligibility criteria will be not be accepted for the

salesperson job.

3. Written test for Salespersons

All the eligible candidates for the salesperson job may then be called for a written test.

The test paper usually contains two parts, objective and descriptive questions. The

objective questions may test the candidates knowledge of English, mathematics and

also his level of general knowledge.

The descriptive part will test the candidates ability to draft a letter and prepare a

general essay.

4. Interview of Salesperson

The candidates who have been successful in the written test during he salesperson

selection process will then be called for an interview. Interview is a face-to-face oral

examination of the candidate. The candidate may be asked questions on a wide range

of subjects like politics, sports, marketing, banking and so on.

The objective of interview is to test the candidates ability to face a panel of experts and

communicate his ideas. The interview will help the employer to know whether the
candidate is a shy person or is bold enough to undertake any assignment. The

candidates, who are going to be selected as salesperson, shall possess good

communication ability.

5. Checking references of Salespersons

Applicants for jobs of salesperson are usually asked to give the names of a couple of

eminent persons in their applications. Such persons, who are called referees, may be

contacted by the employer to know the conduct and character of the candidate.

6. Medical examination for Salespersons

Successful candidates for the salesperson job shall be medically examined to find out

whether they are physically fit. The candidates height, weight, eyesight, etc., are

checked. Physical fitness is important for any kind of job. It is even more important for a

salesperson as he has to undertake lot of traveling.

7. Appointment of Salespersons

Candidates found to be medically fit may be appointed on probation for the salesperson

job. Probation is the initial training period during which the salesperson has to learn his

work and also perform to the satisfaction of the employer.

The period of probation may vary from six months to two years. Only those

salespersons, who have lived up to the expectations of the employer, during the period
of probation, will be retained. During probation, the salesperson usually gets a

consolidated salary. He will be put on scale of pay only on confirmation of his service.

OR

Q2 b) Clarify the concept of Human Resource Planning. Being Human Resource

Manager, bring out any four methods of HR Forecasting.

Concept of human resource planning:

Human resource (HR) planning or manpower planning is the process by which the

organization ensures that it has the right kind of people, at right time, at right place and

they are working effectively and efficiently and help the organization in achieving the

overall objective. It is a continuous process. Of developing and determining objectives,

policies that will procure, develop and utilize human resources to achieve the goal of the

organization.

An HR Planning process simply involves the following four broad steps:

Current HR Supply: Assessment of the current human resource availability in the

organization is the foremost step in HR Planning. It includes a comprehensive
study of the human resource strength of the organization in terms of numbers,
skills, talents, competencies, qualifications, experience, age, tenures,
performance ratings, designations, grades, compensations, benefits, etc. At this
stage, the consultants may conduct extensive interviews with the managers to
understand the critical HR issues they face and workforce capabilities they
consider basic or crucial for various business processes .

Future HR Demand: Analysis of the future workforce requirements of the business

is the second step in HR Planning. All the known HR variables like attrition, lay-
 offs, foreseeable vacancies, retirements, promotions, pre-set transfers, etc. are
taken into consideration while determining future HR demand. Further, certain
unknown workforce variables like competitive factors, resignations, abrupt
transfers or dismissals are also included in the scope of analysis.

Demand Forecast: Next step is to match the current supply with the future demand
of HR, and create a demand forecast. Here, it is also essential to understand the
business strategy and objectives in the long run so that the workforce demand
forecast is such that it is aligned to the organizational goals.

HR Sourcing Strategy and Implementation: After reviewing the gaps in the HR supply
and demand, the HR Consulting Firm develops plans to meet these gaps as per
the demand forecast created by them. This may include conducting
communication programs with employees, relocation, talent acquisition,
recruitment and outsourcing, talent management, training and coaching, and
revision of policies. The plans are, then, implemented taking into confidence the
mangers so as to make the process of execution smooth and efficient. Here, it is
important to note that all the regulatory and legal compliances are being followed
by the consultants to prevent any untoward situation coming from the employees.

Forecasting Basics
Forecasting is a systematic process of predicting demand and supply. Human
resources forecasting seeks to secure the necessary number and quality of
employees for a business to achieve strategic goals. Although forecasting
techniques can be complex and full of statistical calculations, a more practical
approach is just as effective and less difficult for a small business to implement.
Demand and supply forecasting techniques use sales or production projections
for the coming year as well as quantitative and qualitative assessments.
Quantitative assessments identify how many and when, while qualitative
3assessments identify desired personal qualities and role-related qualifications.

Trend Analysis
Trend analysis is more appropriate for an existing business because it requires
historical staffing data to make future staffing predictions. This creates a
relationship between past and future staffing needs by linking the two using a
performance or financial metric called an operational index. A service business,
for example, might base future staffing requirements on the number of customers
each customer service representative effectively handled in the past, while a
retail business might compare sales volume per sales employee.

Ratio Analysis
 A new businesses, or one having less than five years of historical staffing data,
often uses a ratio analysis forecasting technique. Ratio analysis uses elements
called causal factors that can be linked to and help predict future staffing needs.
A business might identify production or sales volume as a causal factor and
estimate, for example, that it needs one customer service representative for
every five clients or one production line worker for every 5,000 widgets. If
projections determine the business will handle 500 clients or produce 500,000
widgets over the coming year, forecasting sets demand at 100 employees for
each.

Supply Forecasting
Supply forecasting techniques often start internally for human resources.
Replacement charts are a visual tool for identifying internal candidates available
and qualified to fill demand estimations. Replacement charts include both a
hierarchical diagram and information relating to current employee performance,
education and an assessment of how ready the employee is to move into upward
or lateral position. External supply side forecasting typically involves a labor
market analysis that also considers hiring practice legislation to avoid the
possibility of facing a discrimination lawsuit. Market analysis information such as
employment and wage trends is available on The Society for Human Resource
Management website, as well as national and state labor information websites.
Information on these sites can help businesses document the current strengths
and weaknesses of the workforce, define emerging employment trends and
economic opportunities and assist businesses in finding qualified workers.

Q3. A) Elucidate methods of settling Industrial disputes.

Industrial dispute means any dispute or difference between employers and

employers or between employers and workmen, or between workmen and
workmen, which is connected with employment or non-employment or the terms
of employment or with the conditions of labour of any person

The settlement machinery as provided by the Act consists of the three methods

1. Conciliation:

In simple sense, conciliation means reconciliation of differences between

persons. Conciliation refers to the process by which representatives of workers
and employers are brought together before a third party with a view to
persuading them to arrive at an agreement by mutual discussion between them.
The alternative name which is used for conciliation is mediation. The third party
may be one individual or a group of people.

According to the Industrial Disputes Act 1947, the conciliation machinery in India consists of the following:
1. Conciliation Officer

2. Board of Conciliation
3. Court of Enquiry.

Conciliation Officer:

The Industrial Disputes Act, 1947, under its Section 4, provides for the appropriate
government to appoint such number of persons as it thinks fit to be conciliation officers.
Here, the appropriate government means one in whose jurisdiction the disputes fall.

While the Commissioner /additional commissioner/deputy commissioner is appointed as

conciliation officer for undertakings employing 20 or more persons, at the State level,
officers from central Labour Commission office are appointed as conciliation officers, in
the case of Central government. The conciliation officer enjoys the powers of a civil
court. He is expected to give judgment within 14 days of the commencement of the
conciliation proceedings. The judgement given by him is binding on the parties to the
dispute.

Board of Conciliation:

In case the conciliation officer fails to resolve the dispute between the disputants, under
Section 5 of the Industrial Disputes Act, 1947, the appropriate government can appoint
a Board of Conciliation. Thus, the Board of Conciliation is not a permanent institution
like conciliation officer. It is an adhoc body consisting of a chairman and two or four
other members nominated in equal numbers by the parties to the dispute.

The Board enjoys the powers of civil court. The Board admits disputes only referred to it
by the government. It follows the same conciliation proceedings as is followed by the
conciliation officer. The Board is expected to give its judgment within two months of the
date on which the dispute was referred to it.

In India, appointment of the Board of Conciliation is rare for the settlement of disputes.
In practice, settling disputes through a conciliation officer is more common and flexible.

2. Arbitration:

Arbitration is a process in which the conflicting parties agree to refer their dispute to a
neutral third party known as Arbitrator. Arbitration differs from conciliation in the sense
that in arbitration the arbitrator gives his judgment on a dispute while in conciliation, the
conciliator disputing parties to reach at a decision.

The arbitrator does not enjoy any judicial powers. The arbitrator listens to the view
points of the conflicting parties and then gives his decision which is binding on all the
parties. The judgment on the dispute is sent to the government. The government
publishes the judgment within 30 days of its submission and the same becomes
enforceable after 30 days of its publication. In India, there are two types of arbitration:
Voluntary and Compulsory.

Voluntary Arbitration:

In voluntary arbitration both the conflicting parties appoint a neutral third party as
arbitrator. The arbitrator acts only when the dispute is referred to him/her. With a view to
promote voluntary arbitration, the Government of India has constituted a tripartite
National Arbitration Promotion Board in July 1987, consisting of representatives of
employees (trade employers and the Government. However, the voluntary arbitration
could not be successful because the judgments given by it are not binding on the
disputants. Yes, moral binding is exception to it.

Compulsory Arbitration:

In compulsory arbitration, the government can force the disputing parties to go for
compulsory arbitration. In other form, both the disputing parties can request the
government to refer their dispute for arbitration. The judgment given by the arbitrator is
binding on the parties of dispute.

The ultimate legal remedy for the settlement of an unresolved dispute is its reference to
adjudication by the government. The government can refer the dispute to adjudication
with or without the consent of the disputing parties. When the dispute is referred to
adjudication with the consent of the disputing parties, it is called voluntary adjudication.
When the government herself refers the dispute to adjudication without consulting the
concerned parties, it is known as compulsory adjudication.

Q3.b) Briefly write about various deductions under Payment of Wages Legislation.

Deductions which may be made from wages

(1) Notwithstanding the provisions of sub-section (2) of section 47 of the Indian

Railways Act 1890 (9 of 1890) the wages of an employed person shall be paid to him
without deductions of any kind except those authorised by or under this Act.

Explanation I: Every payment made by the employed person to the employer or his
agent shall for the purposes of this Act be deemed to be a deduction from wages.

Explanation II: Any loss of wages resulting from the imposition, for good and sufficient
cause upon a person employed of any of the following penalties namely:-

(i) the withholding of increment or promotion (including the stoppage of increment at an

efficiency bar);
(ii) the reduction to a lower post or time scale or to a lower stage in a time scale; or

(iii) suspension; shall not be deemed to be a deduction from wages in any case where
the rules framed by the employer for the imposition of any such penalty are in
conformity with the requirements if any which may be specified in this behalf by the
State Government by notification in the Official Gazette.

(2) Deductions from the wages of an employed person shall be made only in
accordance with the provisions of this Act and may be of the following kinds only
namely:

(a) fines;

(b) deductions for absence from duty;

(c) deductions for damage to or loss of goods expressly entrusted to the

employed person for custody or for loss of money for which he is required to
account where such damage or loss is directly attributable to his neglect or
default;

(d) deductions for house-accommodation supplied by the employer or by

government or any housing board set up under any law for the time being in
force (whether the government or the board is the employer or not) or any other
authority engaged in the business of subsidising house-accommodation which
may be specified in this behalf by the State Government by notification in the
Official Gazette;

(e) deductions for such amenities services supplied by the employer as the State
Government or any officer specified by it in this behalf may by general or special
order authorise.

Explanation: The word "services" in this clause does not include the supply of
tools and raw materials required for the purposes of employment;

(f) deductions for recovery of advances of whatever nature (including advances

for travelling allowance or conveyance allowance) and the interest due in respect
thereof or for adjustment of over-payments of wages;

(ff) deductions for recovery of loans made from any fund constituted for the
welfare of labour in accordance with the rules approved by the State Government
and the interest due in respect thereof;

(fff) deductions for recovery of loans granted for house-building or other purposes
approved by the State Government and the interest due in respect thereof;

(g) deductions of income-tax payable by the employed person;

(h) deductions required to be made by order of a court or other authority
competent to make such order;

(i) deductions for subscriptions to and for repayment of advances from any
provident fund to which the Provident Funds Act 1952 (19 of 1952) applies or any
recognised provident funds as defined in section 58A of the Indian Income Tax
Act 1922 (11 of 1922) or any provident fund approved in this behalf by the State
Government during the continuance of such approval;

(j) deductions for payments to co-operative societies approved by the State

Government or any officer specified by it in this behalf or to a scheme of
insurance maintained by the Indian Post Office and

(k) deductions made with the written authorisation of the person employed for
payment of any premium on his life insurance policy to the Life Insurance
Corporation Act of India established under the Life Insurance Corporation 1956
(31 of 1956) or for the purchase of securities of the Government of India or of any
State Government or for being deposited in any Post Office Saving Bank in
furtherance of any savings scheme of any such government.

(kk) deductions made with the written authorisation of the employed person for
the payment of his contribution to any fund constituted by the employer or a trade
union registered under the Trade Union act 1926 (16 of 1926) for the welfare of
the employed persons or the members of their families or both and approved by
the State Government or any officer specified by it in this behalf during the
continuance of such approval;

(kkk) deductions made with the written authorisation of the employed person for
payment of the fees payable by him for the membership of any trade union
registered under the Trade Union Act 1926 (16 of 1926);

(l) deductions for payment of insurance premia on Fidelity Guarantee Bonds;

(m) deductions for recovery of losses sustained by a railway administration on

account of acceptance by the employed person of counterfeit or base coins or
mutilated or forged currency notes;

(n) deductions for recovery of losses sustained by a railway administration on

account of the failure of the employed person to invoice to bill to collect or to
account for the appropriate charges due to that administration whether in respect
of fares freight demurrage wharfageand carnage or in respect of sale of food in
catering establishments or in respect of sale of commodities in grain shops or
otherwise;
 (o) deductions for recovery of losses sustained by a railway administration on
account of any rebates or refunds incorrectly granted by the employed person
where such loss is directly attributable to his neglect or default;

(p) deductions made with the written authorisation of the employed person for
contribution to the Prime Minister's National Relief Fund or to such other Fund as
the Central Government may by notification in the Official Gazette specify;

(q) deductions for contributions to any insurance scheme framed by the Central
Government for the benefit of its employees.

(3) Notwithstanding anything contained in this Act the total amount of deductions which may be made
under sub-section (2) in any wage-period from the wages of any employed person shall not exceed -

(i) in cases where such deductions are wholly or partly made for payments to co-operative
societies under clause (j) of sub-section (2) seventy-five per cent of such wages and

(ii) in any other case fifty per cent of such wages:

Provided that where the total deductions authorised under sub-section (2) exceed seventy five per cent
or as the case may be, fifty per cent of the wages the excess may be recovered in such manner as may
be prescribed.

(4) Nothing contained in this section shall be construed as precluding the employer from recovering from
the wages of the employed person or otherwise any amount payable by such person under any law for
the time being in force other than the Indian Railways Act 1890 (9 of 1890).

OR

Q3 a) Discuss the safety provisions as contained in Factories Act, 1948

PROVISIONS REGARDING THE SAFETY OF WORKERS

Sections 21 to 40A, 40B and 41 of the Act lay down rules for the purpose of securing
the safety of workers. Summary of the provisions of the Factories Act regarding the
safety of the workers are stated below: (Sections 2l to 41).

1. Fencing ot machinery. All dangerous machinery must be securely fenced

e.g., moving .parts- of prime movers and flywheels connected to every prime
mover. electric generators. etc.-Sec. 2l.
2. Work on or near machinery in motion. Work on or near machinery in
motion must be carried out only by specially trained adult male workers
wearing tightly fitting c1othes.-Sec. 22.
3. Employment of young persons on dangerous machines. No young
person shall work at any danger()us machine' unless he has been specially
instructed as to the dangers and the precautions to be observed. has
received sufficient training about th~ work. and is under the supervision of
 some person having thorough knowledge and experience of the machine.-
Sec. 23.
4. Striking gear and devices for cutting off power. In every factory suitable
devices for cutting off power in emergencies from running machinery shall be
provided and maintained in every workroom.~. 24.
5. Self-acting machines. Moving parts of a self-acting machine must not be
allowed to come within 45 cms. of any fixed structure which is not part of the
machine.-Sec. 25.
6. Casing of new machinery. In all machinery installed after the
commencement of the Act. certain parts must be sunk, encased or otherwise
effectively guarded e.g.. set screw. bolt. toothed gearing etc. -sec. 26.
7. Women and children near cotton Openers. Women and children must not
be allowed to work near cot/On openers, except In certain cases.-Sec. 27
8. Hoists, lifts, chains etc, Every hoist and lift must be so constructed as to be
safe. There are detailed rules as to how such safety is to be secured. There
are similar provisions regarding lifting machines. chains, ropes and lifting
tackle .Sec. 28. 29.
9. .Revolving machinery. Where grinding is . carried on the maximum safe
working speed of every revolving machinery connected therewith must be
notified. Steps must be taken to see that the safe speed is not exceeded.-
Sec. 30.
10. Pressure plant. Where any operation is carried on at a pressure higher than
the atmospheric pressure, steps must be taken to ensure that the safe
working pressure is not exceed~cL-.sec. 31.
11. Floors, stairs and means of access. All floors, steps, stairs, passage and
gangways shall be of sound construction and properly maintained. Handrails
shall be provided where necessary. Safe means of access shall be provided
to the place where the worker will carry on any work.-Sec. 32.
12. Pits, sumps. openings in floors etc. Pits. sumps. openings in floors etc.
must be securely covered or fenced.-Sec. 33.
13. Excessive weights. No worker shall be made to carry a load so heavy as to
cause him injury.-8ec. 34.
14. Protection of eyes. Effective screen or suitable goggles shall be provided to
protect the eyes of the worker from fragments thrown off in course of any
manufacturing process and from excessive light if any.-Sec. 35.
15. Precautions against dangerous fumes. No person shall be allowed to enter
any chamber. tank etc. where dangerous fumes are likely to ,be present.
unless it is equipped with a manhole or other means of going out. In such
space no portable electric light of more than 24 ,volts shall be used. Only a
lamp or light of flame proof construction can be used in such space. For
people entering such space suitable breathing apparatus, reviving apparatus
etc. shall be provided. Such places shall be cooled by ventilation before any
person is allowed to enter.-8ecs. 36 and 36A.
16. Explosive or inflammable gas etc. where a manufacturing process
produces inflammable gas. dust. fume. etc. steps must be taken to enclose
 the machine concerned, prevent the accumulation of substances and exclude
all possible sources of ignition. Extra precautionary measures are to be taken
where such substances are worked at greater than the atmospheric.
pressure.-Sec. 37.
17. Precaution in case of fire. Fire escapes shall be provided. Windows and
doors shall be constructed to open outwards. The means of exit in case of the
fire shall be clearly marked in red letters. Arrangements must be made to give
warning in case or fire -sec. 38
18. Specifications of defectives etc. and safety of buildings and machinery.
If any building or machine is in a defective or dangerous condition, the
inspector of factories can ask fer the holding of tests to determine how they
can be made safe. He can also direct the adoption of the measure necessary
to make them safe. In case of immediate danger, the use of the building or
machine can be prohibited.-Secs. 39. 40.
19. Maintenance of Buildings. If the Inspector of Factories thinks that any
building in a factory, or any. part of it. is in such a state of disrepair that it is
likely to affect the health and welfare of the workers. he may serve on the
occupier or manager or both in writing specifying the measures to be done
before the specified date. Sec. 4OA.
20. Safety Officers. The State Government may notify to the occupier to employ
a number of Safety Officers in a factory (i) wherein one thousand or more
workers are ordinarily employed. or (ii) wherein any manufacturing process or
operation which involves the risk of bodily injury, poisoning. disease or any
other hazard to health of the persons employed in the factory .-Sec. 40B.
21. Rules. The State Government may make rules providing for the use of such
further devices for safety as may be necessary. Sec. 41.

Q3 b) Describe the different steps in a Collective Bargaining

Process in India.

Collective bargaining has been defined by the Supreme Court (SC) as the
technique by which dispute as to conditions of employment is resolved
amicably by agreement rather than coercion.10 It is a process of discussion
and negotiation between employer and workers regarding terms of
employment and working conditions. Workers are generally represented by
trade unions with respect to expressing their grievance concerning service
conditions and wages before the employer and the management. Refusing to
bargain collectively in good faith with the employer is considered to be an
unfair labour practice as per the provisions of the Industrial Disputes Act,
1947 (IDA) . This is generally an effective system as it usually results in
employers undertaking actions to resolve the issues of the workers. However,
the legal procedure for pursuing collective bargaining in India is complicated,

I. Stages of Collective Bargaining in India

A. Charter of Demands Typically, the trade union notifies the employer of a call
for collective bargaining negotiations. However, in certain cases the employer
may also initiate the collective bargaining process by notifying the union(s).
The representatives of the trade union draft a charter of demands through
various discussions and consultations with union members. The charter
typically contains issues relating to wages, bonuses, working hours, benefits,
allowances, terms of employment, holidays, etc. In an establishment with
multiple unions the employer generally prefers a common charter of demands,
but in principle, all unions may submit different charters.
B. Negotiation: As a next step, negotiations begin after the submission of the
charter of demands by the representatives of the trade union. Prior to such
negotiations, both the employer and the trade unions prepare for such
negotiations by ensuring collection of data, policy formulation and deciding
the strategy in the negotiations.13 After such preparation, the negotiations
take place wherein the trade unions and the employer engage in debates and
discussions pertaining to the demands made by the trade unions.14 In the
event that such demands are rejected, the trade union may decide to engage
in strikes. The collective bargaining process obviously takes long where the
employer has to engage with multiple unions. In the public sector, it may take
months or even years. For example, the Joint Wage Negotiating Committee for
the Steel Industry, covering workers in four large unions, took more than three
years from the date of the submission of the charter of demands to the Steel
Authority of India Ltd. (SAIL)
C. Collective Bargaining Agreement Next:, a collective bargaining agreement will
be drawn up and entered into between the employer and workmen
represented by trade unions. These may be structured as bipartite
agreements, memorandum of settlements or consent awards. For more details
on the same please refer to section III below.
D. Strikes: If both parties fail to reach a collective agreement, the union(s) may
go on strike. As per the IDA, public utility sector employees must provide six
weeks notice of a strike, and may strike fourteen days after providing such
notice (a cooling off period) Under the IDA, neither side may take any
industrial action while the conciliation proceeding is pending, and not until
seven days after the conclusion of conciliation or two months after the
conclusion of legal proceedings.17
E. Conciliation: A conciliation proceeding begins once the conciliation officer
receives a notice of strike or lockout. During the cooling off period, the state
government may appoint a conciliation officer to investigate the disputes,
mediate and promote settlement.18 On the other hand, it may also appoint a
Board of Conciliation which shall be appointed in equal numbers on the
recommendation of both parties, and shall be composed of a chairman and
either two or four members.19 No strikes may be conducted during the course
of the conciliation proceeding.20 Conciliation proceedings are concluded with
one of the following recommendations: (i) a settlement, (ii) no settlement or
(iii) reference to a labour court or an industrial tribunal.21
F. Compulsory Arbitration or Adjudication by Labour Courts, Industrial Tribunals
and National Tribunals When conciliation and mediation fails, parties may
either go for voluntary or compulsory arbitration. In the case of voluntary
arbitration, either the state or central government appoints a Board of
Arbitrators, which consists of a representative from the trade union and a
 representative from the employer. In the case of compulsory arbitration, both
parties submit the dispute to a mutually-agreed third party for arbitration,
which is typically a government officer. Arbitration may be compulsory
because the arbitrator makes recommendations to the parties without their
consent, and both parties must accept the conditions recommended by the
arbitrator.

Q4 a) Enumerate the meaning, merits and limitations of the 360 Degree feedback Method?

Ans:

What is 360 Degree Feedback?

360 Degree Feedback is a system or process in which employees receive
confidential, anonymous feedback from the people who work around them.
This typically includes the employee's manager, peers, and direct reports. A
mixture of about eight to twelve people fill out an anonymous online feedback
form that asks questions covering a broad range of workplace competencies.
The feedback forms include questions that are measured on a rating scale and
also ask raters to provide written comments. The person receiving feedback
also fills out a self-rating survey that includes the same survey questions that
others receive in their forms.
Managers and leaders within organizations use 360 feedback surveys to get a
better understanding of their strengths and weaknesses. The 360 feedback
system automatically tabulates the results and presents them in a format that
helps the feedback recipient create a development plan. Individual responses
are always combined with responses from other people in the same rater
category (e.g. peer, direct report) in order to preserve anonymity and to give
the employee a clear picture of his/her greatest overall strengths and
weaknesses.
360 Feedback can also be a useful development tool for people who are not in
a management role. Strictly speaking, a "non-manager" 360 assessment is not
measuring feedback from 360 degrees since there are no direct reports, but
the same principles still apply. 360 Feedback for non-managers is useful to
help people be more effective in their current roles, and also to help them
understand what areas they should focus on if they want to move into a
management role.

Advantages and Disadvantages of 360-Degree Feedback

Advantages

Individuals get a broader perspective as to how they are perceived by others

The feedback provides a more rounded view of their performance
Enhanced awareness and relevance of competencies
Awareness for senior management too, as they will get to know their need for
development
 Feedback is perceived more valid and objective as its collected from varied
sources.

Disadvantages

Frank and honest opinion may not be received

Stress might be put on individuals for giving feedback
Lack of action following feedback
Over reliance on technology
Too much bureaucracy (Official Procedure might slow the process)

Q4.(b) Evaluate the challenges facing the Trade Union Movements in

India.

Ans:

Introduction: The year 2001 was a year of centenary celebration for the Indian
Trade Union Movement (ITUM). During these celebrations various leaders glorified
their contribution to improving the lot of working class in India. They claimed
various achievements on economic, social and political fronts. As per their claims
economically they had secured a large number of benefits for workers in the
organized sector. Politically they had produced a mighty secular, equalitarian, anti-
capitalist, anti-imperialist and socialistic force of national economy. Socially they
had become a unique force of national integration as their members belonged to
various communities, castes, regions, languages and religious faiths.

Internal Challenges:

1. Challenges Related to Leadership: Leadership is considered to be the

lynch-pin of the management of trade unions. Union-management relations
are largely influenced by the nature of union leadership. Unfortunately in
India, majority of unions are managed by professional politicians and lawyers
who have no experience of physical work and no association with the
corresponding union. It is not leadership by the workers, but leadership by
intellectuals.
The emergence of outside leadership in trade unions can be attributed to
some factors. For example most of the union members are illiterate and
ignorant, hence incapable of taking up the leadership of the union. Many of
the members have a poor command over language; as such they cannot
communicate effectively with the management. Similarly, lack of leadership
qualities among workers, their low level of knowledge about labor legislation,
fear of victimization of employee office- bearers of the union, lack of sufficient
financial resources to appoint and support whole time office bearers and
unions lack of formal power also contribute to the emergence of outside
leadership. One of the very significant factors is that the Trade Union Act
(1926) has itself provided a scope for outside leadership. According to Section
22 of this Act, ordinarily not less than half of the office bearers of the
registered union shall be actively engaged and employed in an industry to
 which the union relates. That means 50% of the office bearers can be
outsiders.
2. Multiplicity of Trade Unions: The situation of multiplicity of unions is set to
prevail when many unions in the same industry or plant compete with each
other for enrolling more members and getting recognition from the
management. These unions start functioning with overlapping jurisdiction.
One of the most important reasons for emergence of multiple trade unions is
that most of the trade unions in India are linked to political parties. The
existence of a large number of political parties in India has thus resulted in a
large number of trade unions. Splitting of political parties also leads to split in
trade unions, further enhancing their number. Another important factor is the
provision of the Indian trade union Act itself. As per this Act, any seven
workers in the organization can form a union. So a little misunderstanding
among union members, an ego clash or instigation by political parties can
lead to a split and result in formation of a new union. Moreover, no conditions
have been stipulated in the central law for recognition of unions. Hence each
union tries to influence the management for recognition. Outside leaders and
political parties could provide direct or indirect support for establishing and
getting recognition for a particular union.
3. Inter Union Rivalry: The existence of multiple unions in the same
establishment may lead to rivalry among unions. These unions try to play
down one another to gain greater influence among workers. Inter-union
rivalry often results from factors like domination of unions by outside leaders,
the desire of various political parties to make their bases among workers, the
self-interest of the employers to divide and rule the workers, factional
politics of local union leaders, and the weak legal framework regulating trade
unions. Existence of inter-union rivalry in the organization weakens the
strength of collective bargaining and slows down the growth of trade union
movement in the country. Unions may obstruct the normal functioning of
other unions so that they can prove them to be inefficient.
4. Small Size of Unions: Barring a few unions operating at regional or national
level most of the unions are characterized by small size. Comparing the size
of Indian unions with those in UK and USA we find an average of 800
members per union in India while in UK and USA it is 17600 and 9500
members per union respectively. In India itself we have witnessed declining
membership per union. The average number of workers per union was
reportedly 3594 in 1927-28 which reduced to about 1552 in 1944-45 and to
877 in 1950-51. A very slight increase was noted in 1998 when the average
number of workers per union was reported to be 979. More than 75% of the
trade unions which have submitted returns have less than 500 members. The
trade unions not submitting returns could have an even lesser membership.
Though the number of unions has been increasing in India, it was not
accompanied by an increase in membership. Rather the trend suggests a
decline in membership.
5. Financial Weakness: To function effectively trade unions require sufficient
financial resources. A variety of programs, events and functions have to be
organized by the unions for rendering the services expected of them or for
fulfilling their goals. Unions have to strengthen their financial position to
organize such events and programs But unfortunately trade unions in India
are generally plagued by financial crunch. The primary source of finances for
 the unions is the membership subscription. The unions items of expenditure
include salaries to office staff, allowances to office bearers, annual
meeting/convention expenses, rents, printing, stationary and postage etc.
Trade unions have to struggle hard to balance their income and expenditure.
Low rate of membership fee is the main reason for unsound financial position
of unions. Owing to multiplicity of unions each union vies for enhancing its
membership so they usually keep their subscription rate very low. Workers
also often feel that unions are not doing enough for them so they dont
deserve higher fee. It has also been observed that union members prefer
making ad hoc payments if a dispute arises than making regular payment.
This shows lack of workers commitment to the unions.
6. Uneven Growth of the Unions: Trade unionism is more or less restricted to
major metros in India and that too in large scale units like automobiles,
textiles, plantations, food industries, coal mines, chemicals, transport and
communication, commerce and utility services etc. These are the main
organized industries where unionism seems to have made progress, failing to
influence other smaller industries. In large scale industries also, the degree of
unionization seems to vary widely from industry to industry. Some industries
with a high rate of unionism are tobacco manufacturing (75%); iron and steel
(63%); coal (61%); cotton textile (56%); banks (51%); mining (51%); railways
(33%); insurance (33%) and plantation (28%). It varies from 30 to 37 percent
in communication and transport; electricity and gas; and manufacturing
industry etc.
7. Politicization: Historically, the growth of trade unionism in India has been
inseparably intermingled with freedom struggle, giving it a political base.
Initially it helped the trade union movement to record a rapid growth as well
as gain considerable influence with the incumbent government. But gradually
the political affiliation of unions started corroding the unity of workers.
Politicization of unions has mostly led to the exploitation of workers strength
and unity by political parties for achieving their political objectives. These
political leaders have no commitment to the organization. Another negative
effect of politicization is the fragmentation of unions and emergence of
multiple trade unions because of the split in parent political parties. For
example, split of communist party of India into CPM and CPI led to the split of
union members owing allegiance to the two factions leading to the
emergence of two trade unions. Similarly, inter union rivalry and disunity
resulting from politicization reduces the bargaining power of the unions.
8. Undemocratic Leadership: Trade unions should stand for workers rights.
Their basic objective should be to promote industrial democracy. But in
practice union leadership rarely encourages participation, transparency and
openness. Workers are rarely involved in decision making. Office bearers are
quite often nominated than elected. The outside undemocratic leadership
reduces the effectiveness of the unions and hinders the emergence of
internal leadership.
9. Workers Illiteracy and Ignorance: The labor class in India is mostly
illiterate, poor and ignorant. They can be easily exploited by unscrupulous
union leaders. Workers are also divided on caste, creed, ethnic and religious
basis which again goes against the trade union objectives of unity and
identity.
 10. Apathy of Workers: Workers are often caught up in the race of
earning their living and have no time, energy or interest in getting involved in
union activities. Even those who take membership of the union show very
little enthusiasm for participating in the union work. Workers may also
sometimes lose interest in the union activities if they get disillusioned with
union leadership or when their grievances are not addressed. The apathy of
workers can gradually corrode the very basis of unionism.
11. Lack of Statutory Support: Unfortunately there is no potent central
legislation in India to strengthen the position of trade unions. The Indian
Trade Union Act, 1926, makes provision for any seven workers to join
together and form a trade union. This can result in multiplicity of trade unions
which defeats the very concept of unity of workers. This Act further provide
for 50% office bearers and 10% leadership from outside the organization. This
has led to politicization of unions and outside interference in union activities.
There is no central legislation to make it mandatory for management to
recognize one or more unions. Code of discipline, at best, recommends
voluntary recognition of trade unions.

External challenges:
1. Global Competition: Cut throat competition resulting from globalization
of business is leading to massive workforce reduction. Companies are
cutting on workers to one-fourth of their existing number doubling their
wages and getting four times the output. Hence trade unions are resisting
the productivity- enhancing measures of the company as they render the
workers redundant. Trade unions have to fight hard to save workers jobs.
2. Changes in Technology: Rapid changes in technology have led to skill
obsolescence in workers, hence loss of their control over jobs. This has
become a major challenge for trade unions. Workers skills have to be
updated for security of their jobs and survival of their company. Lost jobs
also mean depletion in union membership.
3. Lack of Government Support: Governments attitude is shifting from
being labor friendly to being investor friendly. The introduction of
liberalization privatization and globalization policy in India has led to a
decline in unionism.
4. Managerial Strategies and HRM Policies: In pre LPG era security of
jobs was almost ensured, even if the private or public companies became
sick. Governments labor friendly policies provided assurance against
retrenchment. Introduction of new technology has transformed a large
number of blue collar jobs into a few white collar jobs. It has also
increased managements control over work as workers face skill
obsolescence. New HR practices are emerging that emphasize
individualism, direct participation of workers, unit level (rather than
industry level) bargaining etc. This has further weakened the union power
and increased the managerial power.

OR

Q4.a) Define Strategic Human Resource Management and explain the

steps in strategic management process.
Definition:

Strategic human resource management is the practice of attracting, developing,

rewarding, and retaining employees for the benefit of both the employees as
individuals and the organization as a whole. HR departments that practice strategic
human resource management do not work independently within a silo; they interact
with other departments within an organization in order to understand their goals
and then create strategies that align with those objectives, as well as those of the
organization. As a result, the goals of a human resource department reflect and
support the goals of the rest of the organization. Strategic HRM is seen as a partner
in organizational success, as opposed to a necessity for legal compliance or
compensation. Strategic HRM utilizes the talent and opportunity within the human
resources department to make other departments stronger and more effective.

Importance of Strategic HRM

When a human resource department strategically develops its plans for recruitment,
training, and compensation based on the goals of the organization, it is ensuring a
greater chance of organizational success. Let's think about this approach in relation
to a basketball team, where Player A is the strategic HR department and Players B
through E are the other departments within the organization. The whole team wants
to win the ball game, and they all may be phenomenal players on their own, but one
great player doesn't always win the game. If you've watched a lot of sports, you
understand that five great players won't win the game if each one of those five
great players is focused on being the MVP.
That's not how a basketball team wins, and it's not how an organization wins either.
A team wins when its members support each other and work together for a common
goal. Player A, our strategic HR department, must work with players B, C, D and E,
our different organizational departments. They must run plays that they have
planned out beforehand, assist when necessary to help another player get the
basket, and compensate for the weaknesses of one in order to create a stronger
team as a whole. When a team works together to reach that common goal, only
then can they be truly successful.

The 6 Step Process Of Strategic Management

Step 1: Establish the vision, mission and goals of the organizationThis step
involves the clarification of what the company is and who they do business for. At
the very basic level, it defines what product, service or good is going to be offered.
The vision of the company refers to the future of its existence and serves the
purpose to inspire and motivate members to work hard to achieve this vision.
Establishing these 3 things helps the company to zone in on the ultimate goal so
they know where to focus their energies.

Step 2: Analyze opportunities & threats: This step is to analyze outside

resources and competition. Through market research and studying the industry and
any regulation requirements, the organization will be better able to anticipate the
needs of its clientele. Studying competitors can help companies realize potential
things that they should avoid doing or certain strategies that they can adopt that
has worked for the other company.
Step 3: Analyze the internal strengths and potential weaknesses of the
organization: This step is meant for companies to see where they can improve
within the confines of the business itself. Pinpointing any weak links or potential
problems can save the company a lot of time and money if they can fix the issue
before it becomes a bigger one. This includes an audit of every department and can
be accomplished by performance reviews of employees and an audit of all assets
and resources the company has.

step 4: Analyzing strengths, weakness, opportunities and threats (SWOT)

and begin forming the strategy: This step consists of analyzing the information
that was discovered in steps 2 & 3 in a side-by-side comparison. The strengths and
weaknesses of the internal resources plus knowing the existing opportunities and
threats that exist outside of the company help to identify the main issues an
organization needs to deal with when forming their strategy.

Step 5: Implementing the strategy: In order to get a strategic plan to work

effectively, it must be implemented and executed properly. Some of the ways that
strategies tend to fail are because of miscommunication among different levels of
the organization and losing clarity of the tasks at hand. Strategic tasks should be
defined and the abilities of the organization should be determined. There should be
a timetable/agenda created that outlines the implementation as well as a plan.
There are many different types of strategies but some of the main ones to note are:
corporate strategy, business strategy, low-cost strategy, differentiation strategy and
functional strategies.

Step 6: Strategic Follow up: After the strategy has been implemented, there
needs to be a way to make sure that it is working. A control system should be put in
place so that managers can evaluate the process. They need to be able to identify
whats working and what isnt. The faster problems can be identified, the faster they
can be resolved and improved.

Q4.b) Write short notes

1. Employees Stock Option Plan
2. Fringe Benefits

Definition of 'Employee Stock Option Plan'

Definition: An Employee Stock Option Plan (ESOP) is a benefit plan for employees
which makes them owners of stocks in the company. ESOPs have several features
which make them unique compared to other employee benefit plans. Most
companies, both at home and abroad, are utilising this scheme as an essential tool
to reward and retain their employees. Currently, this form of restructuring is most
prevalent in IT companies where manpower is the main asset.
Description: Abroad, ESOP (where the 'O' often stands for ownership) is seen when
employees buy over the stock of an owner or promoter who is relinquishing charge.
In India, ESOP is used largely to motivate employees to put in their best and in turn,
help the company enjoy lower employee turnover and retain its talent pool. These
two uses probably account for over two-thirds of all ESOPs now in existence, and
their numbers are expected to increase with time.
Interestingly, many companies abroad use ESOPs as a technique of corporate
finance for a variety of purposes -- to finance expansion, to make an acquisition, to
spin off a division, to take a company private, and so on. This has yet to catch on in
India, perhaps because the scale of ESOP so far is too small for many of these uses.
So far as the future of ESOPs in India is concerned, as more and more companies
realise the need to retain their best talent in a world which would be dominated by
companies with the best intellectual capital, this management technique would be
the phenomenon of the new century.

What are 'Fringe Benefits'

Fringe benefits are benefits provided by an employer to an employee, independent

contractor or partner, some of which are tax-exempt when certain conditions are
met. Recipients of taxable fringe benefits have to include the fair market value of
the benefit in their taxable income for the year.

BREAKING DOWN 'Fringe Benefits'

Fringe benefits commonly include health insurance, group-term life insurance

coverage, educational assistance, childcare and assistance
reimbursement, cafeteria plans, employee discounts, employee stock options,
personal use of a company-owned vehicle and others. Whether a fringe benefit is
tax-exempt depends on the type and, in some cases, the value of the benefit. By
default, all fringe benefits are taxable unless they are specifically named as being
tax-exempt
 GUJARAT TECHNOLOGICAL UNIVERSITY
MBA SEMESTER-II EXAMINATION SUMMER 2015
Subject Code: 2820004 Date: 27/05/2015
Subject Name: Human Resource Management (HRM)
Time: 10.30 AM TO 01.30 PM Total Marks: 70

Q1. B) On the job and off the job training ?

Ans:
A large variety of methods of training are used in business. Even within one
organization different methods are used for training different people. All the
methods are divided into two classifications for:
A. On-the-job training Methods:
Under these methods new or inexperienced employees learn through observing
peers or managers performing the job and trying to imitate their behaviour. These
methods do not cost much and are less disruptive as employees are always on the
job, training is given on the same machines and experience would be on already
approved standards, and above all the trainee is learning while earning. Some of the
commonly used methods are:
1. Coaching:
Coaching is a one-to-one training. It helps in quickly identifying the weak areas and
tries to focus on them. It also offers the benefit of transferring theory learning to
practice. The biggest problem is that it perpetrates the existing practices and styles.
In India most of the scooter mechanics are trained only through this method.
2. Mentoring:
The focus in this training is on the development of attitude. It is used for managerial
employees. Mentoring is always done by a senior inside person. It is also one-to-
one interaction, like coaching.
3. Job Rotation:
It is the process of training employees by rotating them through a series of related
jobs. Rotation not only makes a person well acquainted with different jobs, but it
also alleviates boredom and allows to develop rapport with a number of people.
Rotation must be logical.
4. Job Instructional Technique (JIT):
It is a Step by step (structured) on the job training method in which a suitable
trainer (a) prepares a trainee with an overview of the job, its purpose, and the
results desired, (b) demonstrates the task or the skill to the trainee, (c) allows the
trainee to show the demonstration on his or her own, and (d) follows up to provide
feedback and help. The trainees are presented the learning material in written or by
learning machines through a series called frames. This method is a valuable tool
for all educators (teachers and trainers). It helps us:
a. To deliver step-by-step instruction
b. To know when the learner has learned
c. To be due diligent (in many work-place environments)
5. Apprenticeship:
Apprenticeship is a system of training a new generation of practitioners of a skill.
This method of training is in vogue in those trades, crafts and technical fields in
which a long period is required for gaining proficiency. The trainees serve as
apprentices to experts for long periods. They have to work in direct association with
and also under the direct supervision of their masters.
The object of such training is to make the trainees all-round craftsmen. It is an
expensive method of training. Also, there is no guarantee that the trained worker
will continue to work in the same organisation after securing training. The
apprentices are paid remuneration according the apprenticeship agreements.
6. Understudy:
In this method, a superior gives training to a subordinate as his understudy like an
assistant to a manager or director (in a film). The subordinate learns through
experience and observation by participating in handling day to day problems. Basic
purpose is to prepare subordinate for assuming the full responsibilities and duties.

B. Off-the-job Training Methods:

Off-the-job training methods are conducted in separate from the job environment,
study material is supplied, there is full concentration on learning rather than
performing, and there is freedom of expression. Important methods include:
1. Lectures and Conferences:
Lectures and conferences are the traditional and direct method of instruction. Every
training programme starts with lecture and conference. Its a verbal presentation for
a large audience. However, the lectures have to be motivating and creating interest
among trainees. The speaker must have considerable depth in the subject. In the
colleges and universities, lectures and seminars are the most common methods
used for training.
2. Vestibule Training:
Vestibule Training is a term for near-the-job training, as it offers access to something
new (learning). In vestibule training, the workers are trained in a prototype
environment on specific jobs in a special part of the plant.
An attempt is made to create working condition similar to the actual workshop
conditions. After training workers in such condition, the trained workers may be put
on similar jobs in the actual workshop.
This enables the workers to secure training in the best methods to work and to get
rid of initial nervousness. During the Second World War II, this method was used to
train a large number of workers in a short period of time. It may also be used as a
preliminary to on-the job training. Duration ranges from few days to few weeks. It
prevents trainees to commit costly mistakes on the actual machines.
3. Simulation Exercises:
Simulation is any artificial environment exactly similar to the actual situation. There
are four basic simulation techniques used for imparting training: management
games, case study, role playing, and in-basket training.

(a) Management Games:

Properly designed games help to ingrain thinking habits, analytical, logical and
reasoning capabilities, importance of team work, time management, to make
decisions lacking complete information, communication and leadership capabilities.
Use of management games can encourage novel, innovative mechanisms for coping
with stress.
Management games orient a candidate with practical applicability of the subject.
These games help to appreciate management concepts in a practical way. Different
games are used for training general managers and the middle management and
functional heads executive Games and functional heads.

(b) Case Study:

Case studies are complex examples which give an insight into the context of a
problem as well as illustrating the main point. Case Studies are trainee centered
activities based on topics that demonstrate theoretical concepts in an applied
setting.
A case study allows the application of theoretical concepts to be demonstrated, thus
bridging the gap between theory and practice, encourage active learning, provides
an opportunity for the development of key skills such as communication, group
working and problem solving, and increases the trainees enjoyment of the topic
and hence their desire to learn.

(c) Role Playing:

Each trainee takes the role of a person affected by an issue and studies the impacts
of the issues on human life and/or the effects of human activities on the world
around us from the perspective of that person.
It emphasizes the real- world side of science and challenges students to deal with
complex problems with no single right answer and to use a variety of skills beyond
those employed in a typical research project.
In particular, role-playing presents the student a valuable opportunity to learn not
just the course content, but other perspectives on it. The steps involved in role
playing include defining objectives, choose context & roles, introducing the exercise,
trainee preparation/research, the role-play, concluding discussion, and assessment.
Types of role play may be multiple role play, single role play, role rotation, and
spontaneous role play.

Q1. C) What do you mean by Human Resource Planning? Elaborate the steps involved in HRP
Repeat

Q2. A) Define Trade Union. How can the Union get registered? Its roles and importance.
Problem of Trade Union in India
Meaning and Definition:
Trade union is a voluntary organisation of workers formed to protect and promote their
interests through collective action. It may be formed on plant basis, industry basis, firm basis,
regional basis or national basis. Different writers and thinkers have defined the trade union
differently
A trade union means an association of workers in one or more occupation an association
carried on mainly, for the purpose of protecting and advancing the members economic
interests in connection with their daily work.
Procedures for the Registration of Trade Unions
The four procedure involved in registration of trade unions are as follows: 1. Appointment of
Registrar 2. Mode of Registration 3. Rights and Duties of Registrar 4. Legal Status of Registered
Trade Union.
1. Appointment of Registrar:
Section 3 of the Trade Union Act, 1926 empowers the appropriate Government to appoint a person to
be registrar of Trade Unions. The appropriate Government be it State or Central, as the case may be
is also empowered to appoint additional and Deputy Registrars as it thinks fit for the purpose of
exercising and discharging the powers and duties of the Registrar. However, such person will work
under the superintendence and direction of the Registrar. He may exercise such powers and functions
of Registrar with local limit as may be specified for this purpose.
2. Mode of Registration:
Any seven or more persons who want to form trade union, can apply for its registration to the
Registration of Trade Unions under Section 4 (1) of the Trade Unions Act, 1926. These applicants
must be members of a trade union.
In order to check the multiplicity of trade unions, one school of thought has proposed the number of
persons farming a trade union for the purposes of registration be reasonably increased to 10 per cent
of employees of the unit, subject to minimum of seven persons employed therein This is expected to
strengthen the trade union movement. The application for registration must be sent to the Registrar of
Trade Unions in Form A as required by the Trade Union Act, 1926 under Section 5.
3. Rights and Duties of Registrar:
Section 7 of the Act empowers the Registrar of Trade Union to make, if required so, further enquiries
on receipt of an application for registration to fully satisfy himself that the application complies with
the provisions of section 5. However, such enquiries can be made only from the application and not
from any other source.
The duties of the Registrar of Trade Unions in matters of registration of trade union are laid down
under Section 8 of the Act. On having being satisfied with the requirements for the registration of the
union, the Registrar shall register the trade union by entering in a register. The letter to this effect will
be issued to the Trade Union. In case of non-satisfaction of registrar with the compliance of require -
ments, the refusal for registration will be issued to the trade union.
No time limit for the grant or refusal of registration has been prescribed in the Trade Union Act,
1926. However, there are legal directives issued by the Court to the Registrar of Trade Unions to
perform me statutory duty imposed upon mm under sections 7 and 8 to deal with the application of
the Trade Union according to law at an early date
The National Commission on Labour has suggested 30 days excluding the time which the Union
takes in answering queries from the Registrar for the grant or refusal of registration by the Registrar.
The Trade Unions (Amendment) Bill, 1982 has provided for insertion of the words within a period
of 60 days from the date of such compliance after the words Register the Trade Unions in Section
8 of the Trade Unions Act, 1926. Where, however, Registrar refuses to grant registration to a trade
union, he is under an obligation to state reasons for refusing to grant registration.
The Societies of Registration Act, 1860, Co-operative Societies Act, 1912 and the Companies Act,
1956 do not apply to trade unions and registration thereof under any of these Acts is void ab initio.

4. Legal Status of Registered Trade Union:

Upon the registration, a trade union assumes to a corporate body by the name under which it is
registered. A registered trade union shall have perpetual succession and its common seal. A registered
trade union is an entity distinct from the members of which, the trade union is composed of It enjoys
power to contract and to hold property both moveable and immoveable and to sue and be sued by the
name in which it is registered.

Q2.a) Job rotation, Job enlargement and job Enrichment are simply attempts by managers to
avoid individuals at work- Comment

Job Rotation: is a management approach where employees are shifted between two or more
assignments or jobs at regular intervals of time in order to expose them to all verticals of an
organization. It is a pre-planned approach with an objective to test the employee skills and
competencies in order to place him or her at the right place. In addition to it, it reduces the monotony
of the job and gives them a wider experience and helps them gain more insights.
Job rotation is a well-planned practice to reduce the boredom of doing same type of job everyday and
explore the hidden potential of an employee. The process serves the purpose of both the management
and the employees. It helps management in discovering the talent of employees and determining
what he or she is best at. On the other hand, it gives an individual a chance to explore his or her own
interests and gain experience in different fields or operations.

Job enrichment: Job enrichment means, adding a few more motivators to a job to make it more
rewarding. A job is enriched when the nature of the job is made more exciting, challenging and
creative or gives the job holder more decision making, planning and controlling powers.
According to Beatty and Schneider, Job enrichment is a motivational technique which emphasis the
need for challenging and interesting work. It suggests that jobs should be redesigned so that intrinsic
satisfaction can be derived from doing the job. In its best applications, it leads to a vertically
enhanced job by adding functions from other organizational levels, making it contain more variety
and challenging and offer autonomy and pride of the employees.
Job enrichment is thus, an important practice in meeting whole man needs. It represents a new and
popular non-monetary motivational technique. It applies to improvement of job in such a way that it
has more motivators than before and at the same time maintaining the degree of maintenance factors.

According to Herzberg, enriched job has eight characteristics. These characteristics are as
explained below
1. Direct Feed Back: There should be a direct feed back of the employees performance. Employees
should be able to get immediate knowledge of the results they are achieving. The job evaluation can
be inbuilt in the job or provided by a supervisor.
2. Client Relationship: When an employee serves a client or customer directly, he has an enriched
job. The client can be outside the organization or inside.
3. New Learning: An enriched job allows the employees to learn more. He should feel that he is
growing mentally, an employee, who is doing some intellectual work, is having an enriched job.
4. Scheduling Own Work: Freedom to schedule ones own work contributes to enrichment.
Deciding when to tackle assignment is an example of self scheduling. Employees who perform
creative work have more opportunity to schedule their assignment as compared to employees
performing routine jobs.
5. Unique Experience: An enriched job has some unique qualities or features as compared to the
other jobs.
6. Control over Resources: One approach to job enrichment is that each employee should have
control over his own resources and expenses.
7. Direct Communication Authority: An employee holding the enriched job will be allowed to
communicate directly with people who use his output.
8. Personal Accountability: An enriched job holds the incumbent responsible for the results. He
receives praise for good work and blame for poor work. From the above features of job enrichment
we conclude than the management should allow sufficient freedom to employees regarding the
methods, sequence, pace etc of the work
Job Enlargement

Job enlargement is another method of job design when any organization wishes to adopt proper job
design it can opt for job enlargement. Job enlargement involves combining various activities at the
same level in the organization and adding them to the existing job. It increases the scope of the job. It
is also called the horizontal expansion of job activities.

Definition: Job Enlargement is the horizontal expansion of a job. It involves the addition of tasks at
the same level of skill and responsibility. It is done to keep workers from getting bored. It is different
than job enrichment.

Examples: Small companies may not have as many opportunities for promotions, so they try to
motivate employees through job enlargement.

Job enlargement can be explained with the help of the following example - If Mr. A is working as an
executive with a company and is currently performing 3 activities on his job after job enlargement or
through job enlargement we add 4 more activities to the existing job so now Mr. A performs 7
activities on the job.
It must be noted that the new activities which have been added should belong to the same hierarchy
level in the organization. By job enlargement we provide a greater variety of activities to the
individual so that we are in a position to increase the interest of the job and make maximum use of
employees skill. Job enlargement is also essential when policies like VRS are implemented in the
company.

Job enlargement is doing different tasks and not just the same thing all the time. It may involve
taking on more duties and adds variety to a person's job. Horizontal loading is often used which is
giving people more jobs to do that require the same level of skill.

OR
Q2.b) Evaluate 360-degree feedback as a technique of appraisal also compare the same with
720 degree technique
720 degree feedback is performing a feedback after the main 360 appraisal. Many management
experts feel that doing a comprehensive 360 degree appraisal is not complete in itself. They feel that
an effective procedure to measure Improvement and receive feedback is essential for the success of
any appraisal. This gives a pre and a post intervention result. The pre intervention result sets the
baseline. The development intervention is then done to improve the participants behavior ( e.g.
training, coaching) the post intervention survey then shows the amount of improvement in the results.
720 degree as the name suggests is 360 degree twice doing the appraisal once where the performance
of the employee is analyzed and having a good feedback mechanism where the boss sits down with
the employee another time and gives him feedback and tips on achieving the targets set. Too often,
employees complain that they never receive feedback until the next performance appraisal. They say
that by then it is too late. 720 degree appraisal seeks to address these concerns by giving the
employees feedback on their performance and help to attain the goals set for them.
360 degree of performance appraisal has been explained in above question

Q3. A) Define Strategic Human Resource Management. Explain seven steps in strategic
management process.
This question has been explained in above questions

Q3. B) Define Job Analysis.

Why is HR Planning more common among large organizations than among small ones with
examples?
Ans:
Job analysis has been defined in above question

Is human resource planning only relevant to large companies or should small

businesses do HR planning too?
Many people associate human resource planning with what very large companies do -- IBM, or Ford.
That's because, almost by necessity, large companies need to have a much more formal and
comprehensive approach to HR planning because of their size and the complexity of their businesses.
That said, even a business owner with a very few employees need to think (that is, plan) about
various personnel and human resources issues. Many small business owners do this without really
thinking about it. For example, a small business owner needs to think and plan about what benefits to
offer, how to manage growth of staff, how to plan how many staff are needed, how to evaluate
employee performance, and so on.
So, even if you have one or two employees, it's useful to "plan like the big boys" regarding human
resource and personnel issues. The methods you use may be simpler but you still need to do it, so you
are prepared
OR
Q3. A) Compare and contrast the following methods of Job evaluation: Ranking, Classification
and Factor Comparison Method.
Job Evaluation Defined
Beth is a human resource specialist for a toy manufacturing company. Her boss has asked her to
perform a job evaluation for all the positions currently held by employees of the company. Job
evaluation is a systematic and objective process used by organizations to compare the jobs within the
organization to determine the relative value or worth of each job. Keep in mind that the focus is on
evaluating the job, not the people that perform the job.
Beth's employer will use job evaluations to determine the comparative worth of each job, which will
then help determine the basis of the wages and salaries offered for each job. It helps ensure that
everyone is paid fairly relative to one another based upon the value they bring to the organization.
For example, if a mail clerk is paid more than an engineer, then there's probably a problem with pay
equity because an engineer generally brings more value than a mail clerk.
Criteria used in job evaluations can include factors such as education qualifications, skills needed,
working conditions and job responsibilities. Moreover, there are different types of methods available
for Beth to use. Let's take a look at some of her options.

Job Ranking
Perhaps the easiest method that Beth can use for job evaluation is the job ranking method. This
method involves putting all jobs in an organization in rank order of importance based upon their
contributions towards the achievement of an organization's goals. Beth may perform the ranking
herself after performing a job analysis of each position or bring in subject matter experts more
familiar with the jobs. For example, a marketing analyst will receive a higher ranking than a janitor

Classification
Classification uses categories, or classes, of similar job content and value. Examples of categories
include executive, managerial, skilled and semi-skilled. The number of categories and their relative
content, value and associated pay grades are determined by your organization. This method works
well for large organizations, such as government agencies and worldwide corporations with
numerous locations. Jobs within the same class have comparable compensation packages
Factor Comparison definition
A scientific method designed to rank job roles based on a breakdown of factors rather than the role as
a whole. The ultimate goal of factor comparison is to assign the relative parts of each job role a
financial value i.e. the amount of compensation offered for that part of the role.
Factor comparison breaks down a job into a small number of key factors, such as skills, effort,
knowledge and responsibilities. The next stage is to identify benchmark jobs, which are well-known
positions that retain consistency across different companies and organisations. Each job is then
assigned a salary, which is further broken down for each factor.
Advantages of factor comparison include its broad application it can be applied to a wide range of
job roles and industries, and can also be applied to new roles in order to compare them to similar
positions. Distilling the value of the job in monetary terms can also help organisations make sure
their recruitment methods provide a decent ROI. One of the main disadvantages is that someone has
to make a decision on the relative worth of each factor e.g. someone may believe knowledge is worth
more than skills and give this factor too much salary.

Q3.b) Marketing Manager of Intelligence Pharmaceutical company identify the performance

deficiency in his medical representatives. He came to know the reasons of deficiency are lack
of technical as well as communication skill. Which training programme will you suggest for
the medical representatives? Why? Explain meticulously.

Q4. A) Define what Industrial dispute is. Discuss the various causes that lead to industrial
dispute and different methods of settling industrial disputes.

It has been repeated in above questions

Economic Causes:
Economic causes
of
industrial disputes relate to interest disputes. These
include wages,
bonus, allowances, benefits, incentives, and working
conditions. History of industrial disputes reveals
that the most of industrial disputes arise out of the

economic reasons. Further, wages has been the major economic reason causing industrial disputes.
There are two reasons attributed to this.
First, the demand for wages has never been fully met because of continuously rising inflation and
high cost of living. These result in never-ending demand for upward revision of wages from the trade
unions.
Second, wage differential among industrial sectors, regional levels and geographical levels, also
become the bone of contention between the workers and the management. To quote, it was the wage
differentials prevailing at different plants of the TELCO that made the Lucknow plant of TELCO
pitch tents demanding parity of wages. This led to violence and lockout in the TELCO, Lucknow.
Management Practices:
Instances are gallore to report that the management practices too, at times, lead to industrial disputes

These include:

(i) Managements threat of use of coercion in exercising the rights of workers to organise themselves
in the form of union as per the legal provisions.
(ii) The managements unwillingness to recognize a particular trade union and its dilatory tactics in
verifying the representative character of the trade union.
(iii) Its unwillingness to talk over any dispute with the employees or refer it to arbitration even
when trade unions want it to do so.
(iv) Forcing workers either to join a particular trade union or refrain from joining a trade union,
(v) To discharge or dismiss workers by way of discrimination, victimization, or any other subjec tive
ground.
(vi)The managements denial for consulting workers in the matters of recruitment, promotion,
transfer, merit awards, etc.
(vii) The benefits offered by the management to workers are far from satisfactory.
(viii) Violation of norms by the management such as Code of Discipline, grievance procedures,
agreements entered into between workers and management, etc.
The above management practices enrage the workers and lead to industrial disputes.
Trade Union Practices:
Just like management practices, trade union practices also cause industrial disputes. Most of
organisations in India have multiple unions. To quote, Durgapur Steel Plant has 15 unions in exist -
ence. Such multiplicity of trade unions, among other things, leads to inter-union rivalry. Each union
tries to show its greater concern for the workers cause so as to attract more and more workers to its
folds.
In this tug of war, the settlement arrived at between one union and management is opposed by other
(rival) union. This show remains never ending one. This has exactly happened in the Singareni
Collierie which witnessed 445 strikes (or say, more than one strike each day) in the year 1990-91 As
a consequence, the unit suffered from a loss of production of the order of 3.12 million tonnes and
34.19 lakh mandays.
Added to it is the trade unions assumption what they do is only right and what management does is
wrong breed strife or dispute between the workers and the management. As such, trade unions
oppose settlements and the dispute remains unresolved. Ramaswamys observation in this context is
apt to quote: CITU follows a pristime model of trade unionism drawn from the theory of class
conflict.. The communists love to fight, but hate to win.
Victory for them appears to be defeat. CITU never signed a settlement. When we start discussion, we
know v/hat is fair settlement. Others may be willing to accept unfair terms, but we cannot. We are
also opposed to long-term settlements. Our position is that no settlement should be for more than
three years. In point of fact, the communists have managed to maintain their lily-white image by
refusing to sign any settlement for over fifteen long years.
Legal and Political Factors:
Last but no means the least, the legal and political factors also cause industrial disputes. Like
multiple trade unions, we also have multiple labour laws, totaling 108, to regulate IR in our country.
While there exists, contradiction among these laws with regard to IR, on the one hand, most of the
labour laws enacted long back have by now outlived their relevance to a great extent in the changed
industrial environment, on the other. Consider just one contradiction.
Minimum wages vary widely across different states, viz., Andhra Rs. 11, Maharashtra Rs. 8, Gujarat
Rs. 15, Assam Rs. 32.80, and Haryana Rs. 51.57. So is in case of notice period also. Such a situation
also at times is likely to lead to industrial disputes.
Like other countries in the world, most of the trade unions is our country are also affiliated to
political parties. In other words, the politicization of trade unions is erupted very much in the country.
Political parties divide unions on party lines.
These also engineer strikes, gheraos and bandhs to demonstrate their strengths. The political party
which is in power invariably favours a trade union which is affiliated to it. The outcome is
predictable, i.e., unending disputes in the organisation.

Q4. B) Define Factories Act, 1948. What are the various provisions related to health? State
examples to support your explanation.

Ans:
FACTORIES ACT
The object of the Factories Act is to regulate the conditions of work in manufacturing establishments
coming within the definition of the term "factory" as used in the Act.
The first Act, in India, relating to the subject was passed in 1881. This was followed by new Acts in
1891, 1911, 1922, 1934 and 1948. The Act of 1948 is more comprehensive than the previous Acts. It
contains detailed provisions regarding the health, safety and welfare
of workers inside factories, the hours of work, the minimum age 6f, workers, leave with pay etc. The
Act has been amended several times.
The Act is based on the .provisions of the Factories Act of Great
Britain passed in 1937.
In 1976 the Act was amended extensively. The provisions of the Amendment have been quoted and
summarised at the appropriate .places in this chapter.
APPLICATION OF THE ACT
The Factories Act of 1948 came into force on 1st April 1949; It applies to factories, as defined in. the
Act, all over India, including the State of Jammu and Kashmir.
Unless 'otherwise provided, the Factories Act applies to factories belonging to the Central or any
State Government.--Sec. 116.
DEFINITIONS UNDER THE FACTORIES ACT
Factory: The term Factory is defined in Section 2 (m) of the Act as follows: "Factory means any
premises including the precincts thereof- .
(i). whereon ten or more workers are working, or were working on any day of the preceding twelve
months, and in
any part of which a manufacturing process is being carried on with the aid of power or is ordinarily
so
carried on, or
(ii) whereon twenty or more workers are working, or were working on any day of the preceding
twelve months, and in any part of which a manufacturing process is being carried on without the
aid of power, or is ordinarily so carried on,___
but does not include a mine subject to the operation of the Indian Mines Act, 1952 (Act XXXV of
1952), or a mobile unit belonging to the armed forces of the Union, a railway running shed or a
hotel, restaurant or eating place.
Explanation.-For computing the number of workers for the purposes of this clause all the workers
in different relays in a day shall. be taken into account.
[Clause 2(m) as amended in 1976.]
Under Section 85, the State Government is empowered to declare any establishment
carrying on a manufacturing process to be a factory for the purposes of the Act even though it
employs less than the prescribed minimum number of workers, provided that the manufacturing
process is not being carried on by the owner only with the aid of his family.
Summary: From Sec. 2(m) of the Act it follows that m establishment comes within the definition of
a Factory if the conditions stated below are satisfied :
1. It is a place where a "manufacturing process" is carried on.
2. It employs the prescribed minimum number of "workers"
viz., ten if "'power" is used, and twenty if no "power" is used. It is sufficient if the prescribed
number of workers were employed on any day of the preceding twelve months.
3.It is not a mine coming within the purview of the Indian Mines Act of 1952, a railway running
shed, mobile unit belonging to the armed forces of the Union, a hotel, restaurant or eating place.
Health and Safety Provisions as per Factories Act
Occupational Health and Safety in India: Health and Safety provisions under Indian Factories Act
1948. The Act has been promulgated primarily to provide safety measures and to promote the
health and welfare of the workers employed in factories.
The Factories Act, 1948, has been promulgated primarily to provide safety measures and to
promote the health and welfare of the workers employed in factories. The object thuss brings this
Act, within the competence of the Central Legislature to enact. State Governments/Union Territory
Administrations have been empowered under certain provisions of this Act, to make rules, to give
effect to the objects and the scheme of the Act.
Applicability: This Act applies to factories, which qualify the definition of Factory under the
section 2(m) of the Act or to those industrial establishments, to whom section 85 have been made
applicable by the State Government, by notification in the Official Gazette. This applies to any
premises wherein 10 or more persons with the aid of power or wherein 20 or more workers without
aid of power are/were working on any day in the preceding 12 months, wherein manufacturing
process is being carried on.
What are the provisions relating to health for employees working in factories and the
manufacturing process addressed by the Factories Act, 1948?
The main focus of Factories Act is towards the Health benefits to the workers. Health Chapter of
the Act contains specification from Section 11 to 20. Detailed information of the sections of is
provided as under:

Section 11: This section basically specifies the issues of cleanliness at the workplace. It is
mentioned in the provision that every factory shall be kept clean and free from effluvia arising from
any drain, privy or other nuisance. This includes that there should be no accumulation of dirt and
refuse and should be removed daily and entire area should be kept clean.
Section 12: This section specifies on disposal of wastes and effluents. That every factory should
make effective arrangements for the treatment of wastes and effluents due to the manufacturing
process carried on therein, so as to render them innocuous and for their disposal.
Section 13: This section focuses on ventilation and temperature maintenance at workplace. Every
factory should work on proper arrangements for adequate ventilation and circulation of fresh air.
Section 14: This section details on the proper exhaustion of dust and fume in the Factory. In this it
is mentioned that factory which deals on manufacturing process should take care of the proper
exhaustion of dust, fume and other impurities from its origin point.
Section 15: This section specifies regarding the artificial humidification in factories. In this the
humidity level of air in factories are artificially increased as per the provision prescribed by the
State Government.
Section 16: Overcrowding is also an important issue which is specified in this section. In this it is
mentioned that no room in the factory shall be overcrowded to an extent that can be injurious to the
health of workers employed herein.
Section 18: This section specifies regarding arrangements for sufficient and pure drinking water
for the workers. There are also some specified provisions for suitable point for drinking water
supply. As in that drinking water point should not be within 6 meters range of any washing place,
urinal, latrine, spittoon, open drainage carrying effluents. In addition to this a factory where there
are more than 250 workers provisions for cooling drinking water during hot temperature should be
made.
Section 19: This section provides details relating to urinals and latrine construction at factories. It
mentions that in every factory there should be sufficient accommodation for urinals which should
be provided at conveniently situated place. It should be kept clean and maintained. There is
provision to provide separate urinals for both male and female workers.
Section 20: This section specifies regarding proper arrangements of spittoons in the factory. It is
mentioned that in every factory there should be sufficient number of spittoons situated at
convenient places and should be properly maintained and cleaned and kept in hygienic condition.

OR

Q4. A) What is collective bargaining? List down its features and also discuss why the collective
bargaining is important to the employer as well as the workers?
What is 'Collective Bargaining'
Collective bargaining is the process of negotiating the terms of employment between an employer
and a group of workers. The terms of employment are likely to include items such as conditions of
employment, working conditions and other workplace rules, base pay, overtime pay, work hours,
shift length, work holidays, sick leave, vacation time, retirement benefits and health care benefits .

Essential features of the collective bargaining

S. No. Features Description

Group and collective bargain for their common interests and benefits so that they and
1
action
2 Strength
3 Continuous process
4 Flexible
5 Voluntary
6 Dynamic
7 Power relationships
8 Bipartite process
9 Two-part process
It is a collective process in two ways. The workers collectively
the management jointly arrive at an amicable solution through
negotiations.
The bargaining strength of both parties is equal
It establishes a regular and stable relationship between the
parties involved. It involves not only negotiation of the contract
but also the continuous administration or application of the
contract.
It is flexible and the parties have to adopt a flexible attitude
throughout the process of bargaining. The special features of
collective bargaining are that both the parties concerned start
negotiations with completely divergent views but finally reach a
middle point acceptable to both.
It is a voluntary process on the part of the management and the
workers. The implementation of the agreement is also a
voluntary process.
In the past, the concept used to be amotional and turbulent but
has become scientific factual and systematic. Its coverage and
style have changed.
It involves a power relationship. Workers want to gain the
maximum from the management and the management wants to
extract the maximum from workers by paying as little as
possible.
The management and the workers negotiate the issues directly
across the table. There is no third party intervention.
It is a mutual give and take process rather than a take it or leave
it method of arriving at the settlement of a dispute.

Q4. B) Discuss the pre requisites required for the success of Workers Participation in
Management & what are the reasons for failure of expatriate assignments
Not available
 GUJARAT TECHNOLOGICAL UNIVERSITY
MBA I - SEMESTER - II EXAMINATION WINTER 2014
Subject Code: 2820004 Date: 26-12-2014
Subject Name: Human Resource Management (HRM)

Q1. A) Explain Recruitment and Selection Process, also mention some of the main
techniques used in employment planning and forecasting.

What Is Recruitment in Human Resources?

Recruitment is the process of finding and hiring the best-qualified candidate (from within or
outside of an organization) for a job opening in a timely and cost-effective manner. The recruitment
process includes analyzing the requirements of a job, attracting employees to that job, screening
and selecting applicants, hiring, and integrating the new employee into the organization

Selection

Definition: The Selection is the process of choosing the most suitable candidate for the vacant
position in the organization. In other words, selection means weeding out unsuitable applicants
and selecting those individuals with prerequisite qualifications and capabilities to fill the jobs in
the organization.

Most often, the selection and recruitment are used interchangeably but however both have
different scope. The former is a negative process that rejects as many unqualified applicants as
possible so as to hire the right candidate while the latter is a positive process that attracts more
and more candidates and stimulates them to apply for the jobs

Selection process steps

As discussed in last article, selection process or selection procedure involves a series of steps to
be followed for choosing the suitable person for the vacant job. This process starts after
recruitment and divides the candidates in two parts those who will be offered job and those will
not be. There is a need of well-organized selection process because only then right type of
candidate can be selected and unsuitable candidates are rejected. The selection process varies
from organization to organization and even from department to department within the same
organization. Like in some organizations medical examination is done after final selection while
in other it may be done before final selection. However every organization designs the selection
process as per its need. The main selection process steps are:
1. Preliminary interview: the selection process generally starts with this step where the
totally unsuitable applicant is eliminated. Thus the organization is saved from the
expenses of processing the applicant through the remaining steps of selection. The
candidates who pass this step are only asked to fill the application form.

2. Receiving applications: after passing the preliminary interview the candidate is asked to
fill the standard application form. The application form generally consists the information
about the age, qualification, experience etc. of the candidate on the basis of which the
interviewer gets the idea about the candidate and this information also helps in
formulating questions.

3. Screening of applications: after receiving the applications the screening committee

screens the applications. Only the candidates who qualify the criteria of the screening
committee are called for the interview. Usually the candidates selected for interview are
four to six times than the number of posts. Interview letter is sent to them or they are
called telephonically.

4. Employment test: after getting the interview letter and before going to the interview
there is one more step and that is the employment tests. These tests are done to check the
ability of the candidate. These tests vary from organization to organization and change as
per the need of the particular job. these tests are intelligence tests, aptitude tests, trade
tests, interest test, personality tests etc. these tests must be designed properly otherwise
they will not good indicator of one knowledge.

5. Employment interview: the candidates who qualify the above tests are called for the
employment interview. This interview is done to get more information about the
 candidate, to give him the actual picture of what is required from him, to check the
communication skill of the candidate etc. for senior position post; a panel is prepared
who take the interview. At the end of interview of each candidate the members of panel
discuss about the candidate and give him the grades.

There may be direct interview or indirect interview. The interview should be conducted in
a room free from the noise and disturbance only than the candidates will be able to speak
freely and frankly.

6. Checking references: before selecting the employ the prospective employee generally
look out for the referees given by the candidate. To check about the candidates past
record, reputation, police record etc.

7. Physical examination: The organizations generally prefer medical examination to be

incurred of the person to avoid time and expenditure spend on the medically unfit person.
Sometimes the organization may ask the candidate to get them examined from the
medical expert.

8. Final selection: after all these steps the candidate is selected finally. He is appointed by
issuing appointment letter. Initially he is appointed on probation basis after finding his
work satisfactory he is appointed as permanent employee of the organization or otherwise
he may be terminated.

Thus, all the above said steps of selection are important for the appointment of right kind of
person for the right job

Q1. B) What is Job Analysis? Discuss various methods for collecting Job analysis
data. Explain pros and cons of each method.

It has been repeated in above question

Q2. A) Explain why incentive plans fails? What guidelines should a management
follow to ensure effective implementation of Incentive plans?

Ans:

Definition of INCENTIVE
Something that incites or has a tendency to incite to determination or action

the theory behind incentive compensation is money motivates employees to perform well.
Unfortunately, many contractors spend a lot of money on employee incentives and receive little
value in return.

Employees may become angry with the company because their own expectations for bonuses are
not met. Morale is hurt when employees work hard all year, yet the profits of the company still
lag because employees are working inefficiently. Contractors that genuinely try to reward hard-
working employees are frustrated when they realize they unintentionally created a negative
company atmosphere. Unfortunately, this is what many companies face when they incorrectly
design and implement incentive compensation plans.

Getting Employees to Do the Right Things Consistently

A successful incentive plan must focus on achieving company goals by driving the right
behaviors in employees. For instance, if the business aims to secure repeat business and work
safely, the bonus system should compensate employees for good customer service, safe work
practices and profitability. Bonuses based solely on project and/or company profitability do not
drive important behaviors (such as safety, customer service and satisfaction, following best
practices and inter-company teamwork) that lead to long-term company success. Long-term
success is the end result of doing the right things consistently.

While it may seem counterproductive to focus on items besides profits, focusing solely on profits
can be dangerous to a companys viability.

The Top 10 Reasons Incentive Plans Fail

The reasons incentives plans (additional compensation paid to personnel as a bonus for the
successful achievement of specific individual and corporate objectives) fail are common among
companies and include the following:

1. Poor Communication With Employees Poor communication about the plan demoralizes
personnel. Management must communicate the following directly to each participant in
the plan.

The dollar amount of the bonus targeted for that employee with the understanding that it
will be paid only if both the employee and company meet all their objectives.

Company objectives that must be achieved before the bonus is paid (e.g., achieving some
threshold of profitability and meeting safety-related goals).
 The objectives the individual must achieve personally in their position.

Most employees base their perspective on how the company is performing by how hard
they personally are working. Management is responsible for communicating company
performance throughout the year so employees expectations for bonuses align with
reality. Keeping employees informed about company performance does not mean they
need to know how much the company is making. If a company is budgeted to make
$100,000 pretax profit this month but only makes $75,000, simply tell employees that the
company is achieving only 75 percent of its profit goal.

2. The Strategy for the Company is Not Developed One of the biggest failures of
incentive compensation programs is they often do not take into account all the key drivers
that will make the company successful. The best incentive plans promote behaviors that
are consistent with the companys strategic plan, marketing efforts, financial goals,
productivity processes, and personnel development. For example, if the company
performs negotiated, high margin, value-added work, the bonus should factor in the level
of customer satisfaction. If the companys strategic goal is to be involved in the local
community, a portion of the bonus should be tied to an employees individual
involvement in boards, associations, and other community events. Without purposeful
linkage to the companys strategy, incentive plans risk promoting behaviors that are
contradictory to the stated strategy

3. Best Practices Do Not Exist If the company lacks well-defined best practices in the
field or does not drive financial performance through strategic or business planning,
implementing an incentive plan alone will change little. The bottom line is employees
may work harder, but their hard work may not significantly impact profitability. They
will continue to install work unproductively, and the companys business strategy will
remain flawed. Examples of best practices that can significantly impact a construction
business performance include:

a zero-injury workplace;

pre-job planning;

short-interval planning;

daily crew planning;

a bid-selection process;

an estimate-review process;
 a change-order process;

post-job reviews;

people development; and

negotiated work.

4. The Plan is Ineffective at Driving the Right BehaviorsIf best practices are well defined
but employees do not follow them consistently, it is the same as having no processes at
all. The ultimate goal is profitability and providing an adequate return on investment to
shareholders. Unless the company has a market niche or performs negotiated work that
provides extraordinary profitability, the companys best chance of success comes when its
people:

work safely;

work efficiently by using best practices;

produce quality work;

satisfy customers;

motivate subordinates; and

Communicate well with others.

5. The Company Has a Poor Employee Performance-Evaluation Process The employee

evaluation process is a painful exercise in many companies. First, supervisors must write
a short summary of a subordinates performance on subjective issues that often include:

Job knowledge;

problem solving;

professionalism;

motivation; and

Interaction with others.

These criteria are subjective and rather meaningless in driving the right behaviors in employees.
The performance metrics for a controller may include the following objective (vs. subjective)
metrics:

timely financial statements (statements issued by the 10th of the month);

accurate financial statements;

timely and accurate work-in-process reports;

age of receivables equal to less than 40 days of sales (assures cash flow); and

timely filing and payment of payroll and other tax returns.

Performance metrics for a foreman may include:

safety (as measured by audits and number of incidents);

quality (as measured by rework and customer surveys);

customer satisfaction (as measured by customer surveys);

labor budget to actual labor costs (ability to meet the labor budget);

total cost budget to actual costs incurred (ability to meet the jobs budget); and

schedule performance (ability to meet the schedule).

The evaluation process should tie in with the incentive compensation plan. The metrics identified
for each position should be meaningful. Evaluations are of little value unless they are simple to
create and provide periodic feedback (at least quarterly) to the employee.

6. Performance is Measured by Profitability Alone The common measurement of success

is net income reported on a financial statement. However, it is not always the most
complete measurement. Consider cash flows. Profits are meaningless if a business cannot
collect receivables and runs out of cash. The worst case is the firm that must borrow
money to pay bonuses. If the company is truly profitable, then cash should be available.

Many bonus plans in other industries are not driven by profits, but free cash flow. Free
cash flow is the cash generated from business operations less the acquisition costs of new
capital assets such as equipment, trucks and cars (regardless if they are financed or paid
for with cash). A company that consumes most of its cash flow by acquiring new
 equipment will have little, none or negative free cash flow, but may be very profitable
because the cost of new fixed assets is allocated over several years on a financial
statement

Other issues such as safety, customer service, quality, and developing subordinates are
essential to the long-term profitability of the company and often are included as measures
of success and performance.

7. The Best People May Work on the Worst Jobs In a project-based beat-the-budget
incentive plan, the best people may suffer if they are placed on the toughest jobs.
Sometimes the best job a field manager can do for his company is to save it from losing a
considerable amount of money due to earlier estimating errors or unforeseen problems. In
a project-based incentive plan, this ends up affecting the compensation of the best people
because they spend the majority of time on jobs with little or no chance to beat the
estimate unless some allowance is made.

8. The Plan Promotes Divisional vs. Corporate Behavior Plans that primarily provide
bonuses for division vs. company-wide performance can promote me first behavior.
The companys success comes secondary to an individuals own financial success. Under
these plans, senior managers may go to extremes to promote their division at the expense
of the whole company. Then the firm suffers. An exception is the bonus paid to foremen
who save labor hours on a project. Labor hours are the main variable a foreman can
control and are the best measurement of field productivity.

9. Costs are Miscoded and Resources are Hoarded There are many different tricks of the
trade that field managers can use to make one project look good at the expense of
another. Plans that pay bonuses based on the success of individual projects but do not set
up any consequences for project losses promote a me first mentality at the cost of other
projects. Field managers may fight over the best people and equipment, hoarding them
without regard to any other projects in the company.

10. The Incentive Plan Itself Causes Division There is always some tension between
estimating and operations. However, with some incentive compensation programs, when
an estimator leaves something out of the estimate, it affects the project teams
compensation, adding to the tension. Additionally, if field managers are moved on and off
jobs, issues about how to split bonuses arise because everyone will not agree on who
really contributed to the projects success.

Q2. B) Elucidate various problems associated with Performance Appraisal;

also provide solutions to overcome these problems.
Important Problems in Performance Appraisal:

Since performance appraisal is conducted by human beings, it is subjected to a number of errors,

biases, weaknesses and pitfalls.

Some of these are discussed below.

1. The halo effect:

The halo effect is introduced when an overall impression of an individual is judged on the basis
of a single trait. A high rating on one trait leads automatically to high rating on all other trait.
Also, a very high rating may be given to protect an employee for whom there may be personal
sympathy.

2. Constant error:

This error is a reflection on the trait of the rater. Some raters are, by nature, too liberal, others too
strict and some tend towards rating most people in the middle.

3. Recency of events:

There is a tendency of many evaluators to give much more weight to the recent behaviour of the
candidate than the past behaviour. This is based on the reflection that the future trend is
established by the mere recent behaviour.

4. The central tendency:

It is the most commonly found error. It is the tendency of most raters to give average ratings to
all or the center of the scale. This may be due to the fact that a very high rating or a very low
rating could invite questions, criticisms or explanations.

Accordingly, an average rating is safer. It could also be due to the fact that the rather lacks
sufficient knowledge about the applicant and hence, does not want to commit himself one way to
another.

5. Errors of variable standards:

It is quite possible that organisations follow different standards of performance. Some divisional
heads may require much higher quality of performance than others.
6. Other miscellaneous biases:

There may be some built - in biases in the minds of the rater, based upon his own perception of
things, people and performances. A person may be rated higher because he is a 'nice' person or
because of his seniority

Overcoming the problems of performance appraisal:

To overcome the appraisal problems, here are some tips that you might follow

1. Turn the confrontation into discussion: In most cases when an employee received poor rating,
then it is obvious that he will be a bit agitated. However, if you keep on giving him feedback on
his performance from time to time, then he will be aware of his performance as per company
standards. If someone is lagging in performance, then dont wait till the end of the year to tell
him or her where they are lagging, instead inform them right away, so that they have the time to
overcome it. This way you will be able to avoid the confrontation to a great extent.

2. Link between the salary and performance: If you perform well, then your salary will be
increased accordingly. It is a fact that we all are aware of, but the appraisal discussion is not all
about salary, instead it is about how the employee has performed and how much he has
developed since the last time. Therefore, no matter how much the employee shows interest in
discussing his or her salary, you must keep it aside and focus on the performance instead.

3. The appraisal must link to the job: This is one of the most important things in the appraisal
procedure. The performance rating must directly relate to the job of the employee, nothing else
matters. It must be strictly about his daily performance and how it affected the business goals in
a positive or negative manner.

4. Development plans put into place: If you do not put in a learning plan or a development plan,
in front of the employee, then how will you assess the performance? In order to achieve a result
or enhance performance, a proper plan is very important. You must include development of skills
in your plan along with the long term action and short term action plan with specific objectives
and goals.

5. Keep a note: Note down the performance of the employee all throughout the year. This way
you will be able to discuss the shortcomings and the achievement of the employee during the
appraisal discussion. If you are not keeping a note of that and when an employee asks you the
basis on which the rating has been provided, you will be in a big soup. Therefore, track the
performance on a daily basis.
OR
Q2. B) What is the purpose of Performance Appraisal? Explain how you would use
the alternation ranking method, the paired comparison method, and the forced
distribution method.

This question has been repeated in above question

Forced Distribution Method

The forced distribution method is one of the most widely used and also the most criticised
method of performance appraisal. This is a rating system that is used all over the world by
companies to evaluate their workforce. It requires the supervisor to assess each employee based
on certain pre-determined parameters, and thereafter rank them into 3 or more categories. Most
commonly, the employees fall into excellent, good or poor categories, which can be expanded by
the organisation to a 5-point scale as well. It was introduced by General Electric in 1980s, during
the era of Jack Welch who was infamous for cutting down GEs workforce regularly by firing
low performers.

The forced distribution method is also called bell-curve rating or stacked ranking. This method is
preferred by many employers as it creates a visible differentiation between performances of each
employee in the organisation. This method of performance management typically chooses the
normal distribution curve to represent the performance distribution. This ensures that a small
fraction of the entire workforce is to be placed at the extremes, which is the outstanding
performers and poor performers. A relatively large section of the workforce fall in the middle of
the distribution. This is illustrated in the image below.
For example, a manager of XYZ corporation evaluating 30 employees can be instructed to put 5
employees each in the outstanding and the poor category, whereas 20 will fall in the range of
average performers. In this manner, the ratee (manager) has forced the distribution of level of
performance of each of the 30 employees into one of the three categories.

Q3. A) Define Industrial Relations. Explain the major aspects of

Industrial relations.

Ans:

Definition of Industrial relations: The term "Industrial relations" refers to all the relationships
between the different stakeholders in an organization, such as employees, management and trade
unions. The purpose of this is to make sure that all needs are met and everyone involved can
move forward amicably Industrial relations are an important part of every organization,
particularly those that have workers who are represented by trade unions. Every company needs
employees, who in turn need to be compensated for their efforts. Industrial relations help to sort
out the differences between employees, management and trade unions so that a compromise can
be reached wherein each party is satisfied with the working arrangements.

DOMINANT ASPECTS OF INDUSTRIAL RELATIONS

There are two important aspects of the industrial relations scene in a modern industrial society:

Cooperationconflict.

Cooperation:

Modern industrial production is based upon cooperation between labour and capital. Here labour
stands for the workers who man the factories, mines and other industrial establishment or
services. Capital stands for the owners of business enterprises who supply the capital and own
the final product. The cooperation between the two is one of the basic requirements for the
smooth functioning of modern industries and the growth of industrialization.

Conflict:

The second aspect of the system of industrial relations obtaining today is the existence of
conflict, conflict, like cooperation is inherent in the industrial relations set up of today. The
prevailing industrial unrest, the frequency of work stoppages resulting either from strikes or
lock-outs, and the slowing down of production, are the occasional expressional of the ever
present and latent conflict between workers and the management.

Contemporary trends in industrial relations Percentage distribution of the causes of industrial

dispute resulting in work-stoppages

Q3. B) Discuss Health and Welfare provisions covered under the

Factories Act.

Factories Act, 1948 : Provisions for Labour Welfare in India

Some of the provisions relating to the Labour Welfare as mentioned in the Factories Act, 1948
are: (1) Washing Facilities (2) Facilities for storing and drying clothing (3) Facilities for sitting
(4) First aid appliances (5) Canteens (6) Shelters, rest rooms and lunch rooms (7) Creches and
(8) Welfare officer

(1) Washing Facilities:

In every factory (a) adequate and suitable facilities shall be provided and maintained for the use
of workers; (b) separate and adequately screened facilities shall be provided for the use of male
and female workers; (c) such facilities shall be easily accessible and shall be kept clean.

(2) Facilities for storing and drying clothing:

In every factory provision for suitable place should exist for keeping clothing not worn during
working hours and for the drying of wet clothing.

(3) Facilities for sitting:

In every factory, suitable arrangements for sitting shall be provided and maintained for all
workers who are obliged to work in a standing position so that the workers may take advantage
of any opportunity for rest which may occur in the course of work. If in any factory workers can
efficiently do their work in a sitting position, the Chief inspector may require the occupier of the
factory to provide such seating arrangements as may be practicable.

(4) First aid appliances:

Under the Act, the provisions for first-aid appliances are obligatory. At least one first-aid box or
cupboard with the prescribed contents should be maintained for every 150 workers. It should be
readily accessible during all working hours.

Each first-aid box or cupboard shall be kept in the charge of a separate responsible person who
holds a certificate in the first-aid treatment recognised by the State Government and who shall
always be readily available during the working hours of the factory.

In every factory wherein more than 500 workers are ordinarily employed there shall be provided
and maintained an ambulance room of the prescribed size containing the prescribed equipment.
The ambulance room shall be in the charge of properly qualified medical and nursing staff. These
facilities shall always be made readily available during the working hours of the factory.

(5) Canteens:

In every factory employing more than 250 workers, the State government may make rules
requiring that a canteen or canteens shall be provided for the use of workers. Such rules may
provide for (a) the date by which the canteen shall be provided, (b) the standards in respect of
constitution, accommodation, furniture and other equipment of the canteen; (c) the foodstuffs to
be served therein and charges which may be paid thereof; (d) the constitution of a managing
committee for the canteens and representation of the workers in the management of the canteen;
(e) the items of expenditure in the running of the canteen which are not to be taken into account
in fixing the cost of foodstuffs and which shall be borne by the employer; (f) the delegation to
the Chief inspector, of the power to make rules under clause (c).

(6) Shelters, rest rooms and lunch rooms:

In every factory wherein more than 150 workers are ordinarily employed, there shall be a
provision for shelters, rest room and a suitable lunch room where workers can eat meals brought
by them with provision for drinking water.

Where a lunch room exists, no worker shall eat any food in the work room. Such shelters or rest
rooms or lunch rooms shall be sufficiently lighted and ventilated and shall be maintained in a
cool and clean condition.
(7) Creches:

In every factory wherein more than 30 women workers are ordinarily employed there shall be
provided and maintained a suitable room or rooms for the use of children under the age of six
years of such women.

Such rooms shall provide adequate accommodation, shall be adequately lighted and ventilated,
shall be maintained in clean and proper sanitary conditions and shall be under the charge of
women trained in the care of children and infants.

The State government may make rules for the provision of additional facilities for the care of
children belonging to women workers including suitable provision of facilities:

(a) For washing and changing their clothing

(b) of free milk or refreshment or both for the children, and

(c) For the mothers of children to feed them at the necessary intervals.

(8) Welfare officers:

In every factory wherein 500 or more workers are ordinarily employed, the occupier shall
employ in the factory such number of welfare officers as may be prescribed under Sec. 49(1).
The State government may prescribe the duties, qualifications and conditions of service of such
officers.

OR
Q3. A Explain the meaning of Collective Bargaining and discuss importance of
Collective Barging in modern industrial societies.

It has been repeated in above question

Q3. B) Describe the registration process for new unions under Trade
Union act, 1926.
It has been repeated in above question

Q4.a) What is meant by strategy, mission and vision in an organization? Explain

how human resources management can be instrumental in helping an organization
create competitive strategy.

Strategy (from Greek stratgia,) "art of troop leader; office of general,

command, generalship"[1]) is a high level plan to achieve one or more goals under
conditions of uncertainty. In the sense of the "art of the general", which included several
subsets of skills including "tactics", siegecraft, logistics etc., the term came into use in the
6th century C.E. in East Roman terminology, and was translated into Western vernacular
languages only in the 18th century. From then until the 20th century, the word "strategy"
came to denote "a comprehensive way to try to pursue political ends, including the threat
or actual use of force, in a dialectic of wills" in a military conflict, in which both
adversaries interact.

Mission: A written declaration of an organization's core purpose and focus that normally
remains unchanged over time. Properly crafted mission statements (1) serve as filters to
separate what is important from what is not, (2) clearly state which markets will be
served and how, and (3) communicate a sense of intended direction to the entire
organization.
A mission is different from a vision in that the former is the cause and the latter is the
effect; a mission is something to be accomplished whereas a vision is something to be
pursued for that accomplishment. Also called company mission, corporate mission, or
corporate purpose.
A vision statement: is an organization's declaration of its mid-term and long-term
goals. Vision statements are often confused with mission statements. Some organizations
provide one or the other, and some provide a single message that combines elements of
both.

Explain how human resources management can be instrumental in helping an

organization create competitive strategy.
If we want to proof human resource as an instrument for gaining competitive advantages
in a company we should focus on two things, one is competitive advantage and another is
human resource management process.
We know if any side of a company is more efficient than other companies in between a
same industry is called competitive advantage. Competitive advantage is something that
means, to achieve the goals how my internal resources support me.
Competitive advantage is related to internal resources of an organization.
On the other side we know human resource is the most important and most effective
resource for any organization. Human resource is something that has no alternative for
achieving the organizational goals. By using this tool one organization can gain it's goals
The preconditions for achieving competitive advantage are many but low cost and high
productivity are the most important for gaining competitive advantages. If a company has
a efficient work force or human resource that is technologically advanced and flexible it's
may be possible for that company to gain more competitive advantages into the
respective industry. By formulating and executing the work force of a company it can
achieve its goals and it can also increase its productivity. More productive the company
more advantages in the market. Productive company can fulfill the demand of a market.
Definition of HRM
As outlined above, the process of defining HRM leads us to two different definitions. The
first definition of HRM is that it is the process of managing people in organizations in
a structured and thorough manner. This covers the fields of staffing (hiring people),
retention of people, pay and perks setting and management, performance management,
change management and taking care of exits from the company to round off the
activities. This is the traditional definition of HRM which leads some experts to define it
as a modern version of the Personnel Management function that was used earlier.
The second definition of HRM encompasses the management of people in
organizations from a macro perspective i.e. managing people in the form of a
collective relationship between management and employees. This approach focuses on
the objectives and outcomes of the HRM function. What this means is that the HR
function in contemporary organizations is concerned with the notions of people enabling,
people development and a focus on making the employment relationship fulfilling for
both the management and employees.
These definitions emphasize the difference between Personnel Management as defined in
the second paragraph and human resource management as described in the third
paragraph. To put it in one sentence, personnel management is essentially workforce
centered whereas human resource management is resource centered. The key
difference is HRM in recent times is about fulfilling management objectives of providing
and deploying people and a greater emphasis on planning, monitoring and control.

Importance of HRM
An organization cannot build a good team of working professionals without good Human
Resources. The key functions of the Human Resources Management (HRM) team
include recruiting people, training them, performance appraisals, motivating employees
as well as workplace communication, workplace safety, and much more. The beneficial
effects of these functions are discussed here:

Recruitment and Training

This is one of the major responsibilities of the human resource team. The HR managers
come up with plans and strategies for hiring the right kind of people. They design the
criteria which is best suited for a specific job description. Their other tasks related to
recruitment include formulating the obligations of an employee and the scope of tasks
assigned to him or her. Based on these two factors, the contract of an employee with the
company is prepared. When needed, they also provide training to the employees
according to the requirements of the organisation. Thus, the staff members get the
opportunity to sharpen their existing skills or develop specialised skills which in turn,
will help them to take up some new roles.

Performance Appraisals

HRM encourages the people working in an organisation, to work according to their

potential and gives them suggestions that can help them to bring about improvement in it.
The team communicates with the staff individually from time to time and provides all the
necessary information regarding their performances and also defines their respective
roles. This is beneficial as it enables them to form an outline of their anticipated goals in
much clearer terms and thereby, helps them execute the goals with best possible efforts.
Performance appraisals, when taken on a regular basis, motivate the employees.

Maintaining Work Atmosphere

This is a vital aspect of HRM because the performance of an individual in an
organisation is largely driven by the work atmosphere or work culture that prevails at the
workplace. A good working condition is one of the benefits that the employees can
expect from an efficient human resource team. A safe, clean and healthy environment can
bring out the best in an employee. A friendly atmosphere gives the staff members job
satisfaction as well.

Managing Disputes

In an organisation, there are several issues on which disputes may arise between the
employees and the employers. You can say conflicts are almost inevitable. In such a
scenario, it is the human resource department which acts as a consultant and mediator to
sort out those issues in an effective manner. They first hear the grievances of the
employees. Then they come up with suitable solutions to sort them out. In other words,
they take timely action and prevent things from going out of hands.

Developing Public Relations

The responsibility of establishing good public relations lies with the HRM to a great
extent. They organise business meetings, seminars and various official gatherings on
behalf of the company in order to build up relationships with other business sectors.
Sometimes, the HR department plays an active role in preparing the business and
marketing plans for the organization too.

Q4. B) Explain fundamental principles and Organization Structure of

International Labor Organization.

Ans:

Where the UN Global Compact labour principles come from: The ILO Declaration on
Fundamental Principles and Rights at Work The International Labour Organization
(ILO) is the United Nations agency that was established for the purpose of setting
international labour standards. The ILO has a tripartite structure and is governed by
representatives of governments, employers and workers. Labour principles derive
from ILO Conventions and Recommendations, which set international labour
standards on a broad range of subjects related to the world of work, including human
rights at work, occupational safety and health, employment policy and human
resources development. Increasing concerns about the social impact of globalization
led the members of the ILO - representatives of government, employers and workers
at the international level - to recognize in 1995 that there were four categories of
labour principles and rights, expressed in eight conventions (the so-called core
conventions), that should be considered as fundamental because they protect basic
workers rights. These categories are:
a. Freedom of association and the effective recognition of the right to
collective bargaining;
b. The elimination of all forms of forced or compulsory labour;
 c. The effective abolition of child labour; and
d. The elimination of discrimination in respect of employment and
occupation.
The process culminated in 1998 with the adoption of the ILO Declaration on
Fundamental Principles and Rights at Work. This Declaration affirms that all ILO
members States, even if they have not ratified the Conventions in question, have an
obligation arising from the very fact of membership in the Organization to respect, to
promote and to realize the principles concerning the fundamental rights which are the
subject of those Conventions.
Core Labour Conventions2 Freedom of association and the right to collective
bargaining
Freedom of Association and Protection of the Right to Organize Convention
(No. 87), 1948
Right to Organize and Collective Bargaining Convention (No. 98), 1949
Forced Labour
Forced Labour Convention (No. 29), 1930
Abolition of Forced Labour Convention (No. 105), 1957 Child Labour
Minimum Age Convention (No. 138), 1973
Worst Forms of Child Labour Convention (No. 182), 1999 Discrimination in
Respect of Employment and Occupation
Equal Remuneration Convention (No. 100), 1951
Discrimination (Employment and Occupation) Convention (No. 111), 1958

The adoption of this Declaration has underlined the international communitys determination to
take up the challenges posed by globalization. The Declaration aims to ensure that social
progress goes hand in hand with economic progress and development. It provides benchmarks
for responsible business conduct and is therefore often referred to in Corporate Social
Responsibility (CSR) initiatives such as the UN Global Compact.

The broader set of labour principles companies should be aware of The ILOs main instrument
for promoting labour standards and principles in the corporate world is the Tripartite Declaration
of Principles concerning Multinational Enterprises and Social Policy (ILO MNE Declaration).
The ILO MNE Declaration is unique in this area as it was developed by representatives of
governments, employers, and workers, and is the most comprehensive instrument in advancing
the labour dimension of CSR. The ILO MNE Declaration contains recommendations on how
companies should apply principles deriving from international labour standards in the areas of
general policies, employment promotion and security, equality of opportunity and treatment,
training, wages and benefits, minimum age, occupational safety and health, and industrial
relations. As such, it provides more detailed guidance on labour issues and a more complete
picture of how companies can maximize their positive contribution to society, and minimize any
negative impacts.
What does freedom of association mean ?

Freedom of association implies a respect for the right of all employers and all workers to freely
and voluntarily establish and join groups for the promotion and defence of their occupational
interests. Workers and employers have the right to set up, join and run their own organizations
without interference from the State or any another entity. Employers should not interfere in
workers decision to associate, try to influence their decision in any way, or discriminate against
either those workers who choose to associate or those who act as their representatives.

What does collective bargaining mean ?

The right of workers to bargain freely with employers is an essential element in freedom of
association. Collective bargaining is a voluntary process through which employers and workers
discuss and negotiate their relations, in particular terms and conditions of work. Participants
include employers themselves or their organizations, and trade unions or, in their absence,
representatives freely designated by the workers.

Collective bargaining can only function effectively if it is conducted freely and in good faith by
all parties. This implies:

Making efforts to reach an agreement;

Carrying out genuine and constructive negotiations;

Avoiding unjustified delays;

Respecting the agreements concluded and applying them in good faith; and

Giving sufficient time for the parties to discuss and settle collective disputes.

Bargaining in good faith aims at reaching mutually acceptable collective agreements.

Where agreement is not reached, dispute settlement procedures ranging from conciliation
through mediation to arbitration may be used. Workers representatives should be given
appropriate facilities, taking account of the needs, size, and capabilities of the enterprise
involved, that will enable them to do their work effectively and allow them to perform
their role without interference. Workers representatives should be provided with
information required for meaningful negotiations. The collective bargaining process also
covers the phase before actual negotiations information sharing, consultation, joint
assessments as well as the implementation of collective agreements. Collective
agreements should include provisions for the settlement of disputes. In order to facilitate
negotiations, the use of conciliation and mediation that is voluntary or established by law,
 may be accepted. On the other hand, arbitration is only legitimate if requested by both
parties or required by law.

OR
Q4. A) Explain ways to improve international assignments through selection process
with appropriate examples.

Not found it

Q4. B) Discuss meaning, goals and Forms of Workers Participation in

Management.

Workers Participation in Management

Definition:

Like other behavioural terms, WPM means different things to different people depending upon
their objectives and expectations. Thus, WPM is an elastic concept. For example, for
management it is a joint consultation prior to decision making, for workers it means co-
determination, for trade unions It is the harbinger of a new order of social relationship and a new
set of power equation within organisations, while for government it is an association of labour
with management without the final authority or responsibility in decision making.

Let us also go through some important definitions of WPM.

According to Keith Davis, Workers participation refers to the mental and emotional involve-
ment of a person in a group situation which encourages him to contribute to group goals and
share in responsibility of achieving them.

In the words of Mehtras Applied to industry, the concept of participation means sharing the
decision-making power by the rank and file of an industrial organisation through their
representatives, at all the appropriate levels of management in the entire range of managerial
action.

A clear and more comprehensive definition of WPM is given by the International Labour
Organisation (ILO)

According to the ILO:

Workers participation may, broadly be taken to cover all terms of association of workers and
their representatives with the decision-making process, ranging from exchange of information,
consultations, decisions and negotiations to more institutionalized forms such as the presence of
workers members on management or supervisory boards or even management by workers
themselves as practised in Yugoslavia.

In Yugoslavia, WPM is governed by the Law on Workers Management of State Economic

Enterprises and Higher Economic Association. The Act consists of a three-tier participation
structure: collective bargaining, workers council, and hoard of management.

In fact, the basic reason for differences in perception of WPM is mainly due to the differential
pattern of practices adopted by various countries while implementing workers participation in
management.

For example, in Great Britain and Sweden, WPM is in the form of Joint Consultation through
Joint Consultative Committees, Works Committees in France, Co-determination Committees in
West Germany, Joint Work Council in Belgium, Workers Council and Management Board in
Yugoslavia and Union Management Co-operation in USA.

In India, WPM is in the form of, what we call Labour Management Cooperation and Workers
Participation in Management. It is implemented through the agencies like Works Committees,
Joint Management Councils (JMCs) Shop Councils, Unit Councils and Joint Councils.
Notwithstanding, these different forms of WPM differ only in degree, not in nature.

Characteristics:

The following are the main characteristics of WPM:

1. Participation implies practices which increase the scope for employees share of influence in
decision-making process with the assumption of responsibility.

2. Participation presupposes willing acceptance of responsibility by workers.

3. Workers participate in management not as individuals but as a group through their

representatives.

4. Workers participation in management differs from collective bargaining in the sense that
while the former is based on mutual trust, information sharing and mutual problem solving;
the latter is essentially based on power play, pressure tactics, and negotiations.

5. The basic rationale tor workers participation in management is that workers invest their
Iabour and their fates to their place of work. Thus, they contribute to the outcomes of
 organization. Hence, they have a legitimate right to share in decision-making activities of
organization.

Objectives:

The objectives of WPM are closely netted to the ration-able for WPM. Accordingly, the
objectives of WPM vary from country to country depending on their levels of socio-economic
development political philosophies, industrial relations scenes, and attitude of the working class.

To quote, the objective of WPM is to co-determine at the various levels of enterprises in

Germany, assign the final to workers over all matters relating to an undertaking in Yugoslavia,
promote good communication and understanding between labour and management on the issues
of business administration and production in Japan, and enable work-force to influence the
working of industries in China, for example.

In India the objective of the government in advocating for workers participation in management,
as stated in the Industrial Policy Resolution 1956, is a part of its overall endeavour to create a
socialist society, wherein the sharing of a part of the managerial powers by workers is considered
necessary.

Q5. A) Briefly describe each of the following types of interviews with appropriate examples.
Unstructured Panel Interview
Structured sequential Interview
Job-related structured interview

An unstructured interview or non-directive interview is an interview in which questions are not

prearranged.[1] These non-directive interviews are considered to be the opposite of a structured
interview which offers a set amount of standardized questions.[2] The form of the unstructured
interview varies widely, with some questions being prepared in advance in relation to a topic that
the researcher or interviewer wishes to cover. They tend to be more informal and free flowing
than a structured interview, much like an everyday conversation.

UNSTRUCTURED INTERVIEWS are typically used when an employer is creating a position.

They do not have any predetermined questions. You may be asked, Tell me about yourself or
What can you do for us? This technique gives you tremendous ability to present and sell
yourself. You need to be prepared to convey the points you want to make. You should always
attempt to build rapport. When an interviewer conducts an unstructured interview it is imperative
that you engage them in conversation. By engaging them in conversations you may be able to
determine what type of information they are looking for.

SEQUENTIAL INTERVIEWS are designed for several employees to have a chance to

participate in the interview.

This type of interview is used if the position requires teamwork or cross-departmental efforts.
You may interview with peer level employees from various departments as well as supervisors
from various departments. You could meet with one person at a time or several at the same time.
The goal of this technique is to allow the team to have input on who their teammates will be. It is
an effective technique of interviewing for most employers because it empowers employees to
make decisions. It also creates an environment where employees are committed to new hires.

A strong indicator that the interview will use a sequential interviewing technique is if you were
told the interview might last more than 2 hours in one day. However, some employers do practice
sequential interviews over multiple office visits.

When an employer practices sequential interviews, each interview is usually structured to

discover different things about you. For example: The first interview may be designed to give
you information about the employer and to ask you general information about your background.
The second to evaluate your background and position related skills. Third could be to test your
aptitude and evaluate your attitude. Fourth may be to inquire how you feel your background fits
into the employer. And the final would be for questions and answers.

It is important to build rapport with the people you talk to. From the moment you walk in the
door. An employer that practices sequential interviews empowers their employees, meaning that
every persons opinion is considered. If you need to wait for your interview to begin, make sure
you are friendly to the receptionist, they may be asked or volunteer input.

You may notice different interview styles from each person that you interview with. Some may
practice traditional interview techniques with predetermined questions while others may ask
behavior based interview type questions.

As a rule, you need to always answer all questions thoroughly, honestly, and to the best of your
ability. This rule is even more golden in sequential interviews because after the interviewers are
finished they compare notes. If you were not consistent with your answers, you could be
eliminated.

You should never ask any benefits or salary-related questions. Most of the people involved in
sequential interviews do not have anything to do with benefits or your salary. You may be
interviewing with peer level employees; your salary requirements may be different than their
income. These questions are more appropriate when you are at the offer stage or if the employer
brings them up first.

Sequential interviews can seem intimidating but actually they are beneficial to you. When you
have several interviews back to back, with each one you should build confidence.
Even though the interviewers are targeting different information about you, you can learn
valuable information from them. If you ask probing questions and listen to their answers, you
will become more educated and prepared for the next interview. In a sequential interview you
may meet with any number of people. You should always end a sequential interview by
expressing what you can offer to the team. At the very least you need to make sure every one of
them positively knows that you want to work with them and be a part of their team. Frequently
people are eliminated because just one person in the process did not feel that they were excited
or interested in the position

A structured job interview is a standardized way of comparing job candidates. The employer
creates interview questions focused on the skills and abilities the company is seeking. Each
interviewee is asked the exact same questions, in the exact same order.

The employer also creates a standardized scale for evaluating candidates. Every interviewee is
ranked on the same scale.

When Does an Employer Use a Structured Job Interview?

Employers use the structured job interview format when they want to assess candidates
impartially.

Because questions are pre-determined, and there is a ranking system, there is little chance for
unfair or subjective assessment. This helps interviewers avoid any legal issues related to unfair
hiring practices.

A structured job interview also allows the employer to focus on the specific skills and abilities
that are required for the position

With questions focused on specific skills, a structured job interview is often considered a more
effective way of testing a candidates potential performance on the job.

This interview format also allows employers to assess hard-to-measure skills, like interpersonal
skills and oral communication.
What Are the Benefits of a Structured Job Interview for the
Candidates?

With a structured job interview, candidates can feel confident that they are being judged on their
skills, rather than any subjective factors.

Also, because the questions are the same for every candidate, and asked in the same order, every
candidate knows he or she has an equal opportunity to provide the same information.

What Types of Questions Are Asked in a Structured Job Interview?

Questions in a structured job interview vary depending on the job. All questions relate to the
requirements of the position.

Typically, however, structured job interview questions are open-ended. Often they are behavioral
interview questions, which are questions about how a candidate has handled a work-related
situation in the past.

Sometimes structured job interviews also include situational interview questions. These are
questions in which the candidate is asked how he or she would handle a hypothetical work
situation.

Q5. B) Explain with necessary details Characteristics, Objectives and Process of Job
Evaluation.

Ans:

Concept of job evaluation:

In simple words, job evaluation is the rating of jobs in an organisation. This is the
process of establishing the value or worth of jobs in a job hierarchy. It attempts to
compare the relative intrinsic value or worth of jobs within an organisation. Thus, job
evaluation is a comparative process.

Below are given some important definitions of job evaluation:

According to the International Labour Office (ILO) Job evaluation is an attempt to

determine and compare the demands which the normal performance of a particular
job makes on normal workers, without taking into account the individual abilities or
performance of the workers concerned.

The British Institute of Management defines job evaluation as the process of

analysis and assessment of jobs to ascertain reliably their negative worth using the
assessment as the basis for a balanced wage structure. In the words of Kimball and
Kimball Job evaluation is an effort to determine the relative value of every job in a
plant to determine what the fair basic wage for such a job should be.

Now, we may define job evaluation as a process used to establish the relative worth
of jobs in a job hierarchy. This is important to note that job evaluation is ranking of
job, not job holder. Job holders are rated through performance appraisal. Job
evaluation assumes normal performance of the job by a worker. Thus, the process
ignores individual abilities of the job holder.

Objectives of job evaluation:

The main objective of job evaluation is to determine relative worth of different jobs
in an organisation to serve as a basis for developing equitable salary structure. States
an ILO Report the aim of the majority of systems of job evaluation is to establish, on
agreed logical basis, the relative values of different jobs in a given plant or machinery
i.e. it aims at determining the relative worth of a job. The principle upon which all job
evaluation schemes are based is that of describing and assessing the value of all jobs
in the firms in terms of a number of factors, the relative importance of which varies
from job to job.

a. Provide a standard procedure for determining the relative worth of each job in
a plant.

b. Determine equitable wage differentials between different jobs in the

organisation.

c. Eliminate wage inequalities.

d. Ensure that like wages are paid to all qualified employees for like work

e. Form a basis for fixing incentives and different bonus plans.

f. Serve as a useful reference for setting individual grievances regarding wage

rates.

g. Provide information for work organisation, employees selection, placement,

training and numerous other similar problems.
 h. Provide a benchmark for making career planning for the employees in the
organisation

The process of job evaluation involves the following steps:

Gaining acceptance: Before undertaking job evaluation, top management must

explain the aims and uses of the programme to the employees and unions. To
elaborate the program further, oral presentations could be made. Letters,
booklets could be used to classify all relevant aspects of the job evaluation
programme.

Creating job evaluation committee: It is not possible for a single person to

evaluate all the key jobs in an organization. Usually a job evaluation
committee consisting of experienced employees, union representatives
and HR experts is created to set the ball rolling.

Finding the jobs to be evaluated: Every job need not be evaluated. This may
be too taxing and costly. Certain key jobs in each department may be
identified. While picking up the jobs, care must be taken to ensure that they
represent the type of work performed in that department.

Analysing and preparing job description: This requires the preparation of a

job description and also an analysis of job needs for successful performance .

Selecting the method of evaluation: The most important method of evaluating

the jobs must be identified now, keeping the job factors as well as
organisational demands in mind.

Classifying jobs: The relative worth of various jobs in an organisation may be

found out after arranging jobs in order of importance using criteria such as
skill requirements, experience needed, under which conditions job is
performed, type of responsibilities to be shouldered, degree
of supervision needed, the amount of stress caused by the job, etc. Weights
can be assigned to each such factor. When we finally add all the weights, the
worth of a job is determined. The points may then be converted into monetary
values

OR
Q5. A) What is Training? Explain any three types of On-the-Job Training
Method with relevant examples.
Introduction: Training constitutes a basic concept in human resource development. It
is concerned with developing a particular skill to a desired standard by instruction
and practice. Training is a highly useful tool that can bring an employee into a
position where they can do their job correctly, effectively, and conscientiously.
Training is the act of increasing the knowledge and skill of an employee for doing a
particular job.

Definition of Training:

Dale S. Beach defines training as the organized procedure by which people learn
knowledge and/or skill for a definite purpose. Training refers to the teaching and
learning activities carried on for the primary purpose of helping members of an
organization acquire and apply the knowledge, skills, abilities, and attitudes needed
by a particular job and organization.

According to Edwin Flippo, training is the act of increasing the skills of an employee
for doing a particular job.

On-the-job training methods are as follows:

1. Job rotation: This training method involves movement of trainee from one job to
another gain knowledge and experience from different job assignments. This method
helps the trainee understand the problems of other employees.

2. Coaching: Under this method, the trainee is placed under a particular supervisor
who functions as a coach in training and provides feedback to the trainee. Sometimes
the trainee may not get an opportunity to express his ideas.

3. Job instructions: Also known as step-by-step training in which the trainer

explains the way of doing the jobs to the trainee and in case of mistakes, corrects the
trainee.

4. Committee assignments: A group of trainees are asked to solve a given

organizational problem by discussing the problem. This helps to improve team work.

5. Internship training: Under this method, instructions through theoretical and

practical aspects are provided to the trainees. Usually, students from the engineering
and commerce colleges receive this type of training for a small stipend.

Q5. B) Discuss critically the various external sources of recruitment. What are the
relative merits and demerits of these sources?
External Sources of Recruitment
 Definition: The External Sources of Recruitment means hiring people from outside
the organization. In other words, seeking applicants from those who are external to
the organization.

There are several methods for external recruiting. The firm must carefully analyze the
vacant positions and then use the method which best fulfills the requirement.
Following are the different types of external sources of recruitment:

1. Media Advertisement: The advertisement is the most common

and preferred source of external recruiting. The ads in newspapers,
professional journals, give a comprehensive detail about the organization,
type, and nature of job position, skills required, qualification and
experience expected, etc. This helps an individual to self-evaluate himself
against the job requirements and apply for the jobs which best suits him.

2.

3. Employment Exchange: The employment exchange is the office

run by the government wherein the details about the job seekers such as
name, qualification, experience, etc. is stored and is given to the
employers who are searching for men for their organizations.
 For certain job vacancies, it is mandatory for every organization to provide details
about it to the employment exchange. It is the most common source of external
recruitment that offers jobs to unskilled, semi-skilled and skilled workers.

4. Direct Recruitment: The direct recruitment also called as factory

gate recruitment is an important source of hiring, especially the unskilled
workers or badli workers who are paid on a daily-wage basis. Here, the
company puts up a notice on a notice board or on the factory gate
regarding the jobs available, such that the applicant sees it and apply for
the job directly.

5. Casual Callers: The casual callers, also called as unsolicited

applications are the job seekers who come to the well-renowned
organizations casually and either mail or drop in their job applications
seeking the job opportunity.

This could be considered as an important source of external recruitment as the

personnel department maintains the folder of unsolicited applications and call those
who fulfill the job requirements, whenever the vacancy arises.

6. Educational Institutions or Campus Placement: Creating a

close liaison with the educational institutes for the recruitment of students
with technical and professional qualifications has become a common
practice of external recruitment. Here, the companies, visit the technical,
management and professional colleges to recruit the students directly for
the job positions. The recruitment from educational institutions is also
termed as campus recruitment.

7. Labor Contractors: This is the most common form of external

recruitment wherein the labor contractors who are either employed with
the firm or have an agreement to supply workers to the firm for the
completion of a specific type of a task. This method is again used for
hiring the unskilled and semi-skilled workers. The contractor keeps in
touch with the workers and sends them to the places where their need
arises. In doing so, the contractors get the commission for each worker
supplied.

8. Walk-Ins: This is again a direct form of recruitment wherein the

prospective candidates are invited through an advertisement to come and
apply for the job vacancy. Here, the specified date, venue, and time are
mentioned, and the candidates are requested to come and give interviews
directly without submitting their applications in advance.

9. E-recruiting: The e-recruiting means searching and screening the

prospective candidates electronically. There are several online job portals
that enable the job seekers to upload their resume online which are then
forwarded to the potential hirers. Such as naukri.com, monster.com,
 shine.com, etc. are some of the well renowned online job portals.

10. Management Consultants: There are several private

management firms that act as a middleman between the recruiter and the
recruit. These firms help the organization to hire professional, technical
and managerial personnel, and they specialize in recruiting middle level
and top level executives.

These firms maintain data of all the job seekers, such as education, qualification,
experience, etc. and give their details to the companies who are looking for men.
Nowadays, the engineers, accountants, lawyers help their counterparts to get suitable
jobs in industrial organizations.

These are some of the commonly used methods of external recruiting that companies
select depending on the nature of the job position and the number and type of
candidates to be reached out.

Advantages of External Recruitment Process

In an external recruitment process, the company posts a job and invites different
candidates suitable for the job outside the company. In this decision of hiring a
candidate outside the company, the employer takes up a responsibility of finding a
candidate who is capable of handling the duty and responsibility of the job posted.

1. Increased chances: In this increased chance, the company receives a variety and number of
candidates who owns knowledge and ability of handling that job. If the company enters a
sel2ection procedure with an external recruitment then there are increased chances of
finding a suitable candidate for the job. And this increased chances provides better
availability of skilled and qualified employees for the company by using the external
recruitment method.

2. Fresher skill and input1: When a company goes with an external recruitment method, there
is a quite better possibility of finding and identifying a fresher candidate who is capable of
delivering new skills and inputs for the betterment of the company. Therefore, hiring a
candidate with an external recruitment makes things clear and better for the company who
is in desperate need of fresher skills and inputs for the overall growth of the company.

3. Qualified candidates: Nowadays, when a company posts an advertisement in the social

media or newspaper. There is one of the common things that need to be focused on and that
is well experienced and qualified candidate. And with an external recruitment process the
 company can find a variety of qualified candidates for the post offered. And eventually, this
process helps to identify the best candidates in a lot of skilled candidates.

4. Better competition: In the external recruitment process, there will be a chance of facing a
better competition in terms of hiring a new talent. Most of the time some of the company
looks for the candidates who are capable of handling certain skilled job and some of them
search those candidates who are better with their risk taking ability. And this is how the
company meets those two types of characteristics of candidates in a same interview
process.

5. Generation of creative ideas: Most p1robably when the company is in need of those
candidates who can provide creative ideas for the growth of the company, then the
company needs to go with an external recruitment process for the overall development of
the company. Therefore, once the company understands the working nature of an external
recruitment then there is a possibility that the company might select a candidate with new
and better creative ideas.

6. Lesser internal politics: In the external recruitment process, there is a very less possibility
that the candidate might face internal politics of existing candidates. And these lesser
internal politics avoids a number of internal issues and requests of the existing employees
of the company. And once the candidate is selected, then the company can be aware of all
the political and internal disputes of the company as well. Therefore, it is a process with a
high potential candidates who is capable of handling any type of situations in the company.

7. Better growth: By using an external recruitment process the company can expect growth
not just for the candidate, but actually the company can expect it for itself also. When a
company selects a candidate with high potential, then there a higher possibility of overall
growth of the company. The employees within the organization also broaden their capacity
and may try to match with the new talent. Therefore, external recruitment holds on to the
objective where it handles the selection procedure sorting by finding skilled and qualified
candidate for the position offered

8. Competitive spirit: When employees are recruited through external recruitment, there
whirls a competitive spirit in the organization amongst the employees. They present
themselves to be competitive with full enthusiasm to work and match with the new
employees. A healthy competition takes place between the internal and external employees
and employees become efficient and trained.

9. Being fair: External recruitment paves way for a fair means of recruitment. Since the
competition is open and wide, there is more opportunity for candidates where they can
 apply for vacant positions in organizations. The recruitment is done in a fair manner
equally for all candidates where internal politics is avoided.

10. Ideas from other industries: Another smart factor that can be observed from candidates
recruited from external recruitment is that, they offer unique and new ways which are
followed in the competitor or other companies they worked for. The organization can gain
insight about various other aspects from other industries by means of external recruitment.

Disadvantages of External Recruitment Process:

These disadvantages of external recruitment make a clear distinguish between its limitations and
it will also provide beneficial knowledge about the techniques of an external recruitment process.

1. A limited understanding about the company: When a candidate is selected from an

external recruitment process, there is a possibility that the candidate might have less
chance of understanding the environment of the company. And this lesser understanding
can make a big difference in the future activities of the company. Therefore, there is some
sort of issues with an external process which needs to be rectified for better
understanding of the company environment.

2. Higher risk: There is a possibility that the candidate selected for the post is not worthy
of the position offered and he/she can take advantage of their position in the company.
This type of risk is very much common in an external recruitment process as most of the
candidates applied for the job is total strangers to the company. And that is why it is
considered as one of the higher risk process of recruitment.

3. Time consuming: The main disadvantages of external recruitment is that it is time

consuming as most of the companies post an advertisement of their company recruitment
drive, then there is a quit possible chance of receiving a higher number applicants for the
post and the recruiter need to be very careful with their decision of selecting the best
candidate for each round selection process. And these different rounds of selection take a
bit longer than the internal recruitment process as it involves a number of processes.

4. High costs: As most part of the external recruitment process mainly deals with complete
new candidates then the company need to come up with a pay scale for that candidate
which should value his/her skill and ability. This can turn things a bit costly for the
company as they are in need of new ideas and to get such new and creative ideas from the
potential candidate. The company needs to provide him/her the best possible deal to
refuse. With all these aspects, the company needs to provide intense training for the
candidates. Screening large number of candidates consumes more money.
5. Internal disputes with existing employees: When a company considers fresh candidate
for the higher post than the existing candidates, then there is a higher possibility that the
company existing employees might show some sort of internal dispute among the
officials of the company. This kind of internal dispute can lead things into a completely
different level. And eventually the company can fall on their back with such differences
of opinions.

6. Issues of Maladjustment: There are a number of possible ways where the new employee
recruited may not adjust with the new environment. They also would not adjust with the
new employees in the organization. When such scenarios take place, they have to leave
the organization or the management should take initiatives to replace them. By this way
the management may lose good employees and need to hunt for another.

7. Agencies are not trusted: By recuiting candidates through external recruitment,

recruitment agencies play the role where they do not have adequate knowledge about the
culture of the organization and their intrinsic qualities. They also do not care much about
the key requirements of the post.

8. Invites unsuitable applicants: Advertising for external media is something that happens
in large scale through print media and hence large number of applicants who are not fit
for the job post are drawn in. There are number of unsuitable candidates who line up for
low level job positions.

9. Legal risks: There are chances for legal issues when external recruitment is carried on.
When hiring intact teams, top hiring talents are recruited with non-compete recruitment
which may lead to legal issues.

10. Varied category of applicants can be met: When external recruitment is considered,
there are a large pool of applicants who are met. Applicants with varied experience,
background, skills and abilities are met. Since there is abundant talents met, picking the
right candidate can be muddling. By this way new decision making and planning aspects
can be discovered.
 GUJARAT TECHNOLOGICAL UNIVERSITY
MBA - SEMESTERII EXAMINATION SUMMER 2014
Subject Code: 2820004 Date: 29-05-2014

Subject Name: Human Recourse Management (HRM)

Q1. A) Explain the difference between recruitment and selection.

Explain with relevant examples importance to conduct pre-employment
background investigations.

Ans:

Recruitment is a process of searching out the potential applicants and inspiring them to apply
for the actual or anticipated vacancy. On the other hand, Selection is a process of hiring
employees among the shortlisted candidates.

Due to increase in population, getting a good job is not an easy task. Employers want the right
candidate for the concerned position. The large supply of workforce has given them the
opportunity to select the best talent.

Nowadays, there is a very lengthy procedure for appointment of an employee to a post. There are
two major stages which may be heard by you hundreds and hundreds of times; they are
recruitment and selection. Most of us view them as the same thing. But, they are quite different
in meaning and behaviour. Read the article provided below that explains the difference between
recruitment and selection in human resource management (HRM) in tabular form

Definition of Recruitment

Recruitment is a process of finding out the prospective applicants and stimulating them to apply
for the vacancy. It is a long process which involves a series of activities that starts with analysing
the job requirements and ends on the appointment of the employee. The activities involved in the
recruitment of employees are as under:

Analysing job requirement

 Advertising the vacancy

Attracting candidates to apply for the job

Managing response

Scrutiny of applications

Shortlisting candidates

The recruitment is done by the Human Resource managers either internally or externally. The
sources of internal recruitment are promotion, transfers, retrenched employees, contact or
references, ex-employees, retired employees, etc. On the other hand, sources of external
recruitment are recruitment through advertisement, campus recruitment, recruitment by
employment exchanges, recruitment by third parties (recruitment agencies), internet recruiting,
unsolicited applicants, etc.

Definition of Selection

Selection is an activity in which the organisation selects a fixed number of candidates from a
large number of applicants. It involves the actual appointment of the employee for filling up the
vacancies of the enterprise. The term selection means the placement of the right man at the right
job. We all know that a lot of people apply for a single job at the time of recruitment, in which
the recruiters have to decide which candidate fits the best for the job.

The selection also involves a set of activities which are given as under:

Screening

Eliminating unsuitable candidates

Conducting the examination like aptitude test, intelligence test, performance test,
personality test, etc.

Interview

Checking References

Medical Test
The process of selection is a time-consuming one because the HR managers have to identify the
eligibility of every candidate for the post. Besides this, the educational qualification, background,
age, etc. are also some of the most important factors in which they have to pay more attention.
After this, the written examination and interview is also a very tough task.

Key Differences Between Recruitment and Selection

1. Recruitment is the process of finding candidates for the vacant position and stimulating
them to apply for it. The selection means picking up the best candidate from the list of
applicants and offering them the job.

2. Recruitment is a positive process as it attracts more and more job seekers to apply for the
post. Conversely, Selection is a negative process as it rejects all the unfit candidates.

3. Recruitment aims at inviting more and more candidates to apply for the vacant position.
On the contrary, selection aims at rejecting unsuitable candidates and appointing the right
candidates at the job.

4. The activity of recruitment is quite simple because in this the recruiter does not have to
pay more attention to scrutinising the candidate, whereas selection is a complex activity
because in this the employer wants to know every minute detail about each candidate so
that he can choose the perfect match for the job which requires thorough investigation.

5. Recruitment consumes less time as it only involves identifying the needs of the job and
stimulating candidates to apply for the same. Conversely, selection involves a wide range
of activities, right from shortlisting the candidates to appointing them.

6. In recruitment, the firm notifies the candidates regarding vacancy through different
sources such as the internet, newspaper, magazines, etc. and distributes the form to the
candidates so that they can easily apply. As against this, in the process of selection, the
firm makes sure that candidate passes through various stages such as form submission,
written exam, interview, medical exam, etc.

7. In recruitment, no contractual relation is created between the employer and employee.

Unlike selection, where both employer and employee are bound by the contract of
employment.

8. Recruitment is an economical process while the selection is an expensive process.

Results of a background check typically include past employment verification, credit history, and
criminal history. These checks are often used by employers as a means of judging a job
candidate's past mistakes, character, and fitness, and to identify potential hiring risks for safety
and security reasons.

Q1. B) Explain the Model Grievance Procedure.

The National Commission on Labour has suggested a model grievance procedure which would
ensure the speedy settlement of grievance.

The model comprises of the five steps as outlined below:

 1. The aggrieved employee shall convey his or her grievance verbally to the officer
designated by the management to deal with grievance. The officer will have to reply to
the complaints within forty-eight hours of its presentation to him or her.
2. If the grievant is not satisfied with the answer or does not receive the answer within 48
hours, he or she shall, then, present the grievance to the departmental head nominated for
this purpose. The head must give his or her reply within three days of the presentation of
the grievance.
3. If the aggrieved employee is still not satisfied with the decision of the departmental head
or does not receive within the stipulated period, the employee can approach to the
Grievance Committee for the settlement of his or her grievance. The Grievance
Committee has to give its recommendations in seven days and report the same to the
management. The management must communicate the decision to the grievant within
three days.
4. 4. If still employee is not satisfied either with the decision made by die Grievance
Committee or does not receive decision from the committee, he or she can make appeal
to the management for revision of the decision taken. The management can take a week
period for appeal to be considered and the revised decision to inform to the grievant..
5. 5. If the employee is still not satisfied with die managements decision, the grievance is
referred to a voluntary arbitration within a week after decision taken by the management
at stage 4. The decision of the arbitrator is final and binding on both the parties, i.e., the
management and the union.

Q2. A) Performance Appraisal should be multifaceted. Supervisors should evaluate their

employees, and employees should be able to evaluate their supervisors and customers
should evaluate them all Explain.
It has been repeated n above question

Q2. B) Collective Bargaining is the principal raison dtre of the trade union explain the
statement in relation with trade union and collective bargaining.
Ans:

It has been repeated in above question

OR
Q2. B) Write a note on Ethnocentric, Polycentric and Geocentric as to classify top
executives values.
Ans:
It has been repeated in above question

Q3. A) Short note on ILO.

Ans:
Not found it

Q3. B) Short note on Workers Participation in Management.

Ans:

It has been repeated in above question

OR

Q3. A) Discuss Safety provision as contained in Factories Act, 1948.

Ans:

It has been repeated in above question

Q3 b) Explain the techniques of Employee Demand Forecasting.

Ans:

Forecasting human resource demand is the process of estimating the future human resource
requirement of right quality and right number. As discussed earlier, potential human resource
requirement is to be estimated keeping in view the organisation's plans over a given period of
time. Analysis of employment trends; replacement needs of employees due to death,
resignations, retirement termination; productivity of employees; growth and expansion of
organisation; absenteeism and labour turnover are the relevant factors for human resourced
forecasting. Demand forecasting is affected by a number of external and internal factors.

Job analysis and forecasting about the quality of potential human resource facilitates demand
forecasting. So, existing job design must be thoroughly evaluated taking into consideration the
future capabilities of the present employees.

There are number of techniques of estimating/forecasting human resources demand:

(a) Managerial Judgement

(b) Work Study Technique
(c) Ratio-trend Analysis
(d) Econometric Models
(e) Delphi Model
(f) Other Techniques

(a) Managerial Judgement: Managerial judgement technique is very common technique of

demand forecasting. This approach is applied by small as well as large scale organisations. This
technique involves two types of approaches i.e. 'bottom-up approach' and 'top-down approach'.
Under the 'bottom-up approach', line mangers send their departmental requirement of human
resources to top management. Top management ultimately forecasts the human resource
requirement for the overall organisation on the basis of proposals of departmental heads. Under
the Top-down approach', top management forecasts the human resource requirement for the
entire organisation and various departments. This information is supplied to various departmental
heads for their review and approval. However, a combination of both the approaches i.e.
'Participative Approach' should be applied for demand forecasting. Under this approach, top
management and departmental heads meet and decide about the future human resource
requirement. So, demand of human resources can be forecasted with unanimity under this
approach.

(b) Work-Study Technique: This technique is also known as 'work-load analysis'. This
technique is suitable where the estimated work-load is easily measureable. Under this method,
estimated total production and activities for a specific future period are predicted. This
information is translated into number of man-hours required to produce per units taking into
consideration the capability of the workforce. Past-experience of the management can help in
translating the work-loads into number of man-hours required. Thus, demand of human resources
is forecasted on the basis of estimated total production and contribution of each employee in
producing each unit items. The following example gives clear idea about this technique.

Let us assume that the estimated production of an organisation is 3.00.000 units. The standard
man-hours required to produce each unit are 2 hours. The past experiences show that the work
ability of each employee in man-hours is 1500 hours per annum. The work-load and demand of
human resources can be calculated as under:

Estimated total annual production = 300000 units

Standard man-hours needed to produce each unit = 2 hrs

Estimated man-hours needed to meet estimated annual production (i x ii) = 600000 hrs

Work ability/contribution per employee in terms of man-hour = 1500 units

Estimated no. of workers needed (iii / iv) = 600000/1500 = 400 units

The above example clearly shows that 400 workers are needed for the year. Further, absenteeism
rate, rate of labour turnover, resignations, deaths, machine break-down, strikes, power-failure etc.
should also be taken into consideration while estimating future demand of human resources/
manpower.

(c) Ratio-Trend Analysis: Demand for manpower/human resources is also estimated on the
basis of ratio of production level and number of workers available. This ratio will be used to
estimate demand of human resources. The following example will help in clearly understanding
this technique

Estimated production for next year = 1,40,000 units

Estimated no. of workers needed

(on the basis of ratio-trend of 1: 200) will be = 700

(e) Delphi Technique: Delphi technique is also very important technique used for estimating
demand of human resources. This technique takes into consideration human resources
requirements given by a group of experts i.e. mangers. The human resource experts collect the
manpower needs, summarises the various responses and prepare a report. This process is
continued until all experts agree on estimated human resources requirement.

(f) Other Techniques: The other techniques of Human Resources demand forecasting are
specified as under:

(a) Following the techniques of demand forecasting of human resources used by other similar
organisations

(b) Organisation-cum-succession-charts

(c) Estimation based on techniques of production

(d) Estimates based on historical records

(e) Statistical techniques e.g. co-relation and regression analysis.

(d) Econometrics Models: These models are based on mathematical and statistical techniques for
estimating future demand. Under these models relationship is established between the dependent
variable to be predicted (e.g. manpower/human resources) and the independent variables (e.g.,
sales, total production, work-load, etc.). Using these models, estimated demand of human
resources can be predicted.

Q4. A) A well thought of orientation program is essential for all new employees, whether
they have experience or not. Explain why you agree or disagree with this statement.
Ans:

Employee Orientation: Keeping New Employees on Board

Orienting employees to their workplaces and their jobs is one of the most neglected functions in
many organizations. An employee handbook and piles of paperwork are not sufficient anymore
when it comes to welcoming a new employee to your organization.
The most frequent complaints about new employee orientation are that it is overwhelming,
boring, or that the new employee is left to sink or swim. Employees feel as if the organization
dumped too much information on them which they were supposed to understand and implement
in much too short of a time period.
The result is often a confused new employee who is not as productive as he could be. He is also
more likely to leave the organization within a year. This is costly to both the employer and the
employee. Multiply this by the number of employees that you hire each year and the cost of
turnover becomes significant.
With an ongoing labor crunch, developing an effective employee orientation experience
continues to be crucial. It is critical that new hire programs are carefully planned to educate the
employee about the organization's values and history and about who is who in the organization.

A well thought out orientation program, whether it lasts one day or six months, will help not only
in the retention of employees but also in the increases in employee productivity. Organizations
that have good orientation programs get new people up to speed faster, have better alignment
between what the employees do and what the organization needs them to do, and have lower
turnover rates.

Purposes of Orientation
Employers have to realize that orientation isn't just a nice gesture put on by the organization. It
serves as an important element of the new employee welcome and organization integration.

To Reduce Startup Costs: Proper orientation can help the employee get up to speed much more
quickly, thereby reducing the costs associated with learning the job.

To Reduce Anxiety: Any employee, when put into a new, strange situation, will experience
anxiety that can impede his or her ability to learn to do the job. Proper orientation helps to reduce
anxiety that results from entering into an unknown situation and helps provide guidelines for
behavior and conduct, so the employee doesn't have to experience the stress of guessing.

To Reduce Employee Turnover: Employee turnover increases as employees feel they are not
valued or are put in positions where they can't possibly do their jobs. Orientation shows that the
organization values the employee, and helps provide the tools necessary for succeeding in the
job.

To Save Time for the Supervisor: Simply put, the better the initial orientation, the less likely
that supervisors and coworkers will have to spend time teaching the employee. You can
effectively and efficiently cover all of the things about the company, the departments, the work
environment, and the culture during orientation. The manager and coworkers will then need to
only reinforce these concepts.

To Develop Realistic Job Expectations, Positive Attitudes and Job Satisfaction: It is

important that employees learn as soon as possible what is expected of them, and what to expect
from others, in addition to learning about the values and attitudes of the organization.

While people can learn from experience, they will make many mistakes that are unnecessary and
potentially damaging. The main reasons orientation programs fail: The program was not planned;
the employee was unaware of the job requirements; the employee does not feel welcome.
Employee orientation is importantorientation provides a lot of benefits, and you can use
feedback from participating employees to make your orientations even better.

Take a look at The Top Ten Ways to Turn Off a New Employee.

All new employees should complete a new employment orientation program that is designed to
assist them in adjusting to their jobs and work environment and to instill a positive work attitude
and motivation at the onset.

A thoughtful new employee orientation program can reduce turnover and save an organization
thousands of dollars. One reason people change jobs is because they never feel welcome or part
of the organization they join.

What Do You Need to Include in Your New Employee Orientation

Process?
The most important principle to convey during an orientation is your commitment to continuous
improvement and continual learning. That way, new employees become comfortable with asking
questions to obtain the information that they need to learn, problem solve and make decisions.

A well-thought-out orientation process takes energy, time and commitment, however, it usually
pays off for the individual employee, the department, and the organization. One such example is
Mecklenburg County's (North Carolina) success in revamping its employee orientation program.

The employer wanted to live up to its credo of employees being the organization's greatest
resource. In 1996, as part of a larger initiative to redesign services to meet customer needs, the
Mecklenburg County Human Resources Department staff made a smart decision. They viewed
new employees as part of their customer base and asked their customers what they wanted.

Employees were asked what they wanted and needed from orientation. They were also asked
what they liked and didn't like about orientation. New employees were asked what they wanted
to know about the organization. Additionally, the organization's senior managers were asked
what they believed was important for employees to learn when joining the county payroll.

Using feedback collected from employees, Mecklenburg's HR training staff first realized that
meeting employees' needs required more than a half day training session. Trusting employee
feedback, the trainers crafted a one-day orientation that gave employees what they said they
wanted and what senior management believed employees needed to know.

Essentially, the orientation mix now includes the less exciting topics such as W-2s and various
policies and procedures, but it also includes details that let the employee know something about
the organization.

Need more on how to plan an employee orientation that's beneficial and fun?
Q4. B) Compare and contrast following methods of Job Evaluation : ranking, factor
comparison and point method.
Ans:

Definition: Point Method

This method is used for job evaluation. It helps in evaluating jobs by giving a detailed, analytical
and quantitative evaluation. It identifies certain number of factors i.e. various characteristics of
jobs and the determining degree to which the ease of such factors is present in the job. Each
degree is assigned a different number of points of different factor.
Steps involved in point method:
1. Determining the type of a job: The jobs range from top senior position to watchman level.
Each involves different skills, responsibility, efforts and working conditions. Unskilled
jobs have a separate evaluating programme for them.
2. Selection of factors: A factor is the differentiating feature of a job. The following should
be kept in consideration for selecting a factor:
a. Factors must be ratable
b. Limited number of factors
c. Factors should not overlap in meaning
d. It must meet both employer and employee standards
There are mainly 4 Main job characteristics:
a. Skills: Education, work experience, training, expertise, judgement.
b. Responsibility: Machinery used, raw material used, work quality, output quality.
c. Effort: Physical and mental effort.
d. Working conditions: Work environment, accident hazard, discomfort.

3. Construction of factor scales: The next step is to construct a factor scale. It will include:

a. Relative value of each factor

b. Degree of each factor
c. Assigned point values to each factor

4. Evaluation of jobs: After the construction of factors scale, the evaluation of tasks can be
started. Job analysis information should be read carefully and it should be compared with
degree definitions. At which degree the job falls needs to be decided. It should be done
with all the factors and total points should be added up.

5. Conducting the wage survey: After getting the worth of jobs in terms of points it should be
converted to money value. A wage survey must be conducted to know what wages are
being given in the industry.

6. Design the wage structure: After taking the wage survey the management decided to form
a wage structure. There are 2 types of wage structure:
 a. In the first kind, the wages are being paid to each job falling in any particular job class.
The rates do not vary within a job class.
b. In the second kind, the wage changes not only between different job classes but also
within the job classes
Example of Point Method to hourly paid manual staff

OR
Q4. A) Explain in detail various types of Incentive Plan?

Types of Incentive Schemes: Individual and Group Incentive Scheme

the various types of incentives are classified into two broad categories: financial and non-
financial. Here, we are concerned with financial incentives only. Financial incentives may further
be classified as individual incentives and group incentives. Both are discussed now one by one.
1. Individual Incentive (PBR) Schemes:
Under this plan, employees are paid on the basis of results. The chief incentive plans included
in this category are discussed in seriatim.
Taylors Differential Piece Rate Plan:

Thisplan was developed by F. W. Taylor, the father of scientific management. Under this plan,
Taylor prescribed two piece work rates. One, a higher wage rate for those who reach the standard
work. Second, a lower wage rate whose performance is below the standard.

The standard work is determined on the basis of time and motion studies. This wage plan
encourages and rewards the employees who are efficient by giving them wages at a higher rate.
At the same time, the plan penalizes those who are slow performers by paying them at a low
wage rate.

Halsey Premium Plan:

This plan, originated by F. A. Halsey, an American engineer, is a combination of the time and the
piece wage in a modified form. Under this plan, a guaranteed wage based on past experience is
determined. If a worker saves time, he gets 50% of wages for time saved (called premium) in
addition to normal wages. It is optional for the worker to work on the premium or not. Thus, this
plan also provides incentive to efficient workers.

Rowan Premium Plan:

This plan was developed by D. Rowan in 1901. This plan, to a large extent IS similar to that of
Halsey Premium Plan. The only difference is in regard to the determination of the premium.
Unlike a fixed percentage in case of Halsey plan, it considers premium on the basis of the
proportion which the time saved bears to the standard time.

Emersson Efficiency Plan:

Under this scheme, both standard work and day wage are fixed. Bonus is paid on the basis of
workers efficiency. A worker becomes entitled to get bonus only when his/her efficiency reaches
to 67%. The rate of bonus goes on increasing till he achieves 100% efficiency. Above 100%
efficiency, bonus will be 20% of the basic rate plus 1% for each 1% increase in efficiency. In this
way, at 120% efficiency, a worker receives a bonus of 40% and at 140% efficiency worker gets
60% of the day wage as bonus.

Gantt Task and Bonus Plan:

This plan is devised by H. L. Gantt. This plan combines time, piece wage and bonus. Standard
time, piece wage and high rate per piece are determined. A worker who cannot complete standard
work within standard time is paid only the minimum guaranteed wage. A worker performing up
to the standard level of work gets time wage plus a bonus @ 20% of normal time wage. If the
worker exceeds the standard, he is paid a higher piece rate but there is no bonus.
2. Group Incentive Schemes:

The incentive schemes can be applied on a group basis also. Group incentive schemes are
appropriate where jobs are interdependent. It is difficult to meaningfully measure individual
performance and group pressures affect the performance of the members of the group. The chief
group incentive schemes are discussed here.

Profit-sharing:

The concept of profit-sharing emerged towards the end of the nineteenth century. Profit-sharing,
as the name itself suggests, is sharing of profit of organisation among employees. The
International Co-operative Congress held in Paris in 1889 considered the issue of profit-sharing
and defined it as an agreement (formal or informal) freely entered into by which an employee
receives a share fixed in advance of the profits.

The basic rationale behind profit-sharing is that the organisational profit is an outcome of the co-
operative efforts of various parties, therefore, employees should also share in profits as
shareholders share by getting dividend on their investment, i.e. share capital. The very purpose of
introducing profit-sharing is to strengthen the loyalty of employees to the organisation. Thus,
profit-sharing is regarded as a stepping stone to industrial democracy.

Both the share (percentage) of profit to be shared by employees and mechanism for its distribu-
tion are determined in advance and also made known to the employees. In order to be eligible to
participate in profit-sharing. An employee needs to serve for a certain number of years and, thus,
earn some seniority. As regards the forms of profit-sharing, Metzger has classified these into
three categories, namely,

(i) Current,

(ii) Deferred and

(iii) Combination.

(i) Current:

Under this form, profits are paid to the employees in cash or by cheque or in the form of Stock
option immediately after the determination of profits.

(ii) Deferred:

Profits are credited to employees accounts to be paid at the time of retirement or at a time of his
dissociation from organisation due to reasons like disability, death, severance, withdrawal from
employment, etc.
(iii) Combination:

In this case, a part of employee share of profit is paid in cash or cheque or stock and the
remaining part is deferred and credited to his/her account.

Employees receive their share in the organisational profit in the form of bonus. In India, the
employee bonus is governed by the Payment of Bonus Act, 1965.

The major apprehensions expressed against profit-sharing is mat management may dress up
profit figures, as is often done for tax evasion purposes, and deprive employees of their shares in
profit. It is also commented that profit-sharing, being a long-term scheme, does not work as
incentive due to the absence of immediate feedback about the efforts and rewards.

Co-partnership:

In a way, co-partnership is an improvement over profit-sharing. In this scheme, employees also

participate in the equity capital of a company. They can have shares either on the basis of cash
payment or in lieu of other incentives payable in cash like bonus. Thus, under co-partnership
scheme, employees become shareholders also by having company shares. Now, employees
participate in both profits and management of the company.

The finer points of this scheme are that it recognizes the dignity of labour and also of a partner in
the business. This would, in turn, develop a sense of belongingness among the employees and
encourage them to contribute their best for the development of the organisation.

Scanlon Plan:

The Scanlon plan was developed by Joseph N. Scanlon, a Lecturer at the Massachusetts Institute
of Technology in USA in 1937. The plan is essentially a suggestion scheme designed to involve
the workers in making suggestions for reducing the cost of operation and improving working
methods and sharing in the gains of increased productivity.

The plan is characterised by two basic features. First, both employees and managers can partici-
pate in the plan by submitting their suggestions for cost-cutting methods. Second, increase in
efficiency on account of cost-cutting is shared by the employees of the unit.

The Scanlon plan, wherever adopted, has been successful to encourage a sense of partnership
among employees, improved employee-employer management relations, and increased
motivation to work.

The criticism labelled against group incentive is that the incentive benefits being similar to all
members of the group, the best performers may loose incentive. However, this can be overcome
if group incentive scheme generates peer-level pressure for superior performance and also
reduces the need for supervision. Stability in group may be a necessary condition to make the
group incentive scheme successful.

As regards the ultimate impact of incentives on organisational performance, the research studies
conducted in India report that incentive schemes have a positive impact on productivity, labour
cost, and industrial relations. It is concluded that money has a salutary impact on production.

Q4. B) Discuss some major mistakes that take place during interview process. If you

are an interviewer, how would you avoid them?

Ans:

It has been repeated in above question

Q5. A) How inter-country differences affect HRM? Describe with example.

Ans:

It has been repeated in above question

Q5. B) Explain in briefly the five steps process of establishing pay rates.

Establishing Pay rates

The process of establishing pay rates while ensuring external, internal and (to some extent)
procedural equity consist of five steps:

1) Conduct a salary survey of what other employer are paying for comparable jobs (to help
ensure external equity).

2) Determine the worth of each job in your organizations through job evaluation (to ensure
internal equity).
 3) Group similar jobs into pay grades.

4) Price each pay grade by using wave curves.

5) Fine tune pay rates

Salary Survey

A survey aimed to determining prevailing wage rates. A good salary survey provides specific
wages rates for specific jobs. Formal written questionnaire surveys are the most comprehensive
but telephone surveys and newspaper ads are also sources of information.

Its difficult to set pay rates if you dont know what others are paying so salary surveys surveys
of what others are paying play a big role in pricing jobs. Virtually every employer conducts at
least informal telephone, newspaper, or internet salary survey.

Benchmark job

A job that is used to anchor the employers pay scale and around which other jobs are arranged in
order of relative worth.

Employers use these surveys in three ways. First, they use survey data to price benchmark jobs.
Benchmark jobs are the anchor jobs around which they slot their other job, based on each jobs
relative worth to the firm. (Job evaluation, explained next, helps determine the relative worth of
each job). Second, employers typically price 20% or more of their positions directly in the
marketplace (rather than relative to the firms benchmark jobs), based on a formal or informal
survey of what comparable firms are paying for comparable jobs. (Google might do this for jobs
like Web programmer whose salaries fluctuate widely and often). Third, surveys also collect data
on benefits like insurance, sick leave, and vacations to provide a basis for decisions regarding
employee benefits.

Salary surveys can be formal or informal. Informal phone or Internet surveys are good for
checking specific issues, such as when a bank wants to confirm the salary at which to advertise a
newly open tellers job, or if some banks are really paying tellers an incentive. Some large
employers can afford to send out their own formal surveys to collect compensation information
from other employers. Most of these ask about things like number of employee, overtime
policies starting salaries and paid vacations.

Commercial, Professional, and Government Salary surveys

Many employers use surveys published by consulting firms, professional associations, or

government agencies. For example, the US Department of Labors Bureau of Labor Statistics
(BLS) conducts three annual surveys: (1) area wage surveys; (2) industry wage surveys; and (3)
professional administrative, technical and clerical (PATC) surveys.

Private consulting and /or executive recruiting companies like Hay associates, Heidrick and
Struggles, and Hewitt Associates publish data covering compensation for top and middle
management and members of board of directors. Professional organizations like the Society for
Human Resource Management and the financial executives Institute publish surveys of
compensation practices among members of their associations.

OR

Q5. A) Define industrial relations.

It has been repeated in above question

What is the recent trends and future of industrial relation in India.

Q5. B) Explain the objectives and limitation of Minimum Wages Act.