MASTER OF BUSINESS ADMINISTRATION

SEMESTER - 1

SUBJECT CODE & NAME

MBA106 – HUMAN RESOURCE MANAGEMENT

SET 1

Q.1 Discuss – HR forecasting techniques with example.

Answer:

The success of HR plans depends on the accuracy of the HR forecasts that are needed to
implement the organisational strategies. These forecasting involve estimating the future
requirements of the organisation in terms of the nature and the number of people. An
organisation may use one or more of the forecasting techniques available to assess the
future HR requirements.

In fact, the accuracy of HR forecasting largely depends on the ability of the forecasting
techniques in rightly projecting the future.

Following are few of the HR forecasting techniques:

a) Index/Trend Analysis

b) Expert Forecasts/Delphi technique

c) Nominal Group Technique

d) HR Budgets– Staffing/Manning Tables

e) Envelope and Scenario Forecasting

f) Regression Analysis, etc.

g) Productivity Ration

h) Personal Ratio

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i) Time Series

a) Index/Trend analysis

Trend analysis forecasts the requirement for additional manpower by projecting trends of
the past and present to the future. It makes use of operational indices for this.

b) Expert forecasting or Delphi technique:

This method is essentially a group process to achieve a consensus forecast. This method
calls for selection of a panel of experts either from within or outside the organisation. A
series of questions is prepared from the responses received from a prior set of questions in
sequencing manner.

c) Nominal group method

Nominal group method involves a panel of experts similar to the Delphi technique. The
major difference between the two is that while under Delphi technique, experts are not
allowed to discuss among themselves, for assessing the questions, under nominal group
method, experts are given the opportunity to discuss among themselves.

d) HR budgets

The HR budget process produces what is referred to as a staffing and manning table, which
contains information related to a specific set of operational assumptions or levels of activity.
The staffing or manning table presents the total HR demand requirement as well as the
number of personnel required by level and function.

e) Envelope/Scenario forecasting

Envelope/Scenario forecasting is a flexible HR Demand forecasting technique which utilises

projections. Each scenario of possible future state contains its own set of assumptions . It
produces a single Staffing/Manning Table for each Specific Course of Action.

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f) Regression analysis

Past levels of various work load indicators, such as sales, production levels, are examined for
statistical relationships with staffing levels. Where sufficiently strong relationships are
found, a regression (or multiple regression) model is derived. Forecasted levels of the
retained indicator(s) are entered into the resulting model and used to calculate the
associated level of human resource requirements.

g) Personnel ratio

Past personnel data is examined to determine historical relationships among the employees
in various jobs or job categories. Regression analysis or productivity ratios are then used to
project either total or key-group human resource requirements and personnel ratios are
used to allocate total requirements to various job categories or to estimate for non-key
groups.

h) Time series

Past staffing levels (instead of work load indicators) are used to project future human
resource requirements. Past staffing levels are examined to isolate cyclical variation, long-
tem terms, and random movement. Long-term trends are then extrapolated or projected
using moving average, exponential smoothing or regression technique.

Q.2 Discuss the various methods of training. Also state how On-the-job training is used in
IT industry?

Answer:

Various methods of training are as follows:

Following are a few methods of training:

 On-the-job training
 Off the job training

On-the-job training

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It’s a real job environment where the trainee is exposed to actual work situations. The major
advantage of this method is that the trainee gets hands-on experience of the job that has to
be performed. The different types of on-the-job training are:

 Job instruction training: In this method trainees can discuss the problems in
performing the job immediately with the trainer.

 Apprenticeship and coaching: Individuals seeking to enter skilled trades, like those
of carpenters, electricians etc, are required to go through formal apprenticeship
under experienced employees, before they join their regular job.

 Job rotation: In this method the trainee is placed on various jobs across different
functions in the organization. The trainee gains cross-functional knowledge and is
equipped to take up different jobs.

 Committee assignments: In this method, a group of employees are assigned an

actual organizational problem and are asked to find a solution. The trainees develop
their team-management skills, interpersonal skills, communication skills, problem-
solving skills and leadership skills while solving the problem as a group.

Off the job training

Off the job training refers to training imparted away from the employee’s immediate work
area.

When training is performed on the job, any mistake by the trainee might result in damage to
the organization. Hence, off the job training can be conducted to minimize this damage. The
different types of off the job training are:

(i) Classroom lectures: This approach is widely used for helping the employees. The trainer
should actively involve the trainees and make the session more interactive.

(ii) Simulation exercises: In this method of training, the trainee is exposed to an artificial
work situation that closely resembles the actual situation. Simulation exercises are of great

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help to the employee to learn the task on hand. Following are a few types of simulation
exercises:

Case exercise – In case study a real life problem encountered in the organization is
presented to the trainees.

Experiential exercise – In this method, the trainer simulates situations where the employees
are exposed to actual work problems. The trainer can create a situation where employees
are asked to work in teams. After the exercise is complete, the trainer discusses the
behavior of the employees during the exercise, with the group. He appraises the trainees
about their performance, and discusses the exercise with the help of theoretical concepts.

Computer modeling – Computer modeling is a technique whereby the dimensions of the

job are programmed into the computer. Computer modeling helps in learning directly. In
this training, trainees get real life experience by working on a computer.

Vestibule training – In this method, the actual work conditions are simulated and the
equipment used by the trainees is similar to what is used in job.

Role playing – Role-play is described as a method of human interaction involving realistic

behavior in an imaginary situation.

Q.3 What is performance appraisal? What are the different appraisal methods are been
used in current scenario?

Answer:

Research confirms that effective performance management systems impact corporate

performance and the bottom line positively. A person’s job performance is a combination of
ability, effort and opportunity that is measured in terms of outcomes or results produced.
Thereby, performance is defined as the record of outcomes produced on a specific job
function or activity during a specific time period. For example, a sales representative would
have number of units sold or revenue achieved as an outcome while a customer service

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executive would have number of queries handled and resolved or number of satisfied
customers as a measure for defining performance.

Types of Appraisal Methods

Ideally every individual in any organisation needs to be appraised. The appraisal system
should be able to take care of this and it should also meet the needs and objectives of the
organisation. In a broader sense, the type of appraisal template used to assess performance,
should focus on the organisational objectives. Following are the types of appraisal methods:

 Trait-based appraisal – This method is used to assess personality or personal

characteristics such as loyalty, communication skills, level of initiative, decision
making, etc. This assesses what the person is than what the person does on the job.

 Behaviour-based appraisal – This method focuses on the appraisal of what an

employee ‘does’ on the job. It evaluates the behaviour and measures what an
employee should do differently. This is common in organisations that have high
customer interface such as hospitality/NGO. As the focus is on the assessment of
behaviour, rater/manager bias remains a challenge here as well.

 Results-based appraisal – This method measures the work results objectively. The
focus is on the outcome/deliverables from the job that alone serves as the measure
for success. It is not possible to use this method in jobs that depend on team work or
where the job is service/support based.

Individual evaluation methods

There exists five ways to evaluate an employee individually. Here the employee is evaluated
one at a time without directly comparing him/her with other employees.

a) Graphic rating scale: The most widely used performance rating technique is a
graphic rating scale (e.g., 3, 4 or 5 or even 10 point rating scale). In this technique,

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 the evaluator is presented with a list of assessment characteristics and asked to
assign a number rating to the employee on each of the characteristics listed. The
number of characteristics might vary from a few to several dozen. It aims to measure
the quality of performance and ability to do the present job.

b) Forced choice: In forced choice method, the evaluator must choose from a set of
descriptive statements about the employee. The two-, three- or four-statement
items are grouped in a way that the evaluator cannot easily judge which statements
apply to the most effective employee.

c) Essay evaluation: In the essay technique of evaluation, the evaluator is asked to

describe the strong and weak aspects of the employee's behaviour in the form of an
essay. In very few organisations, the essay technique is the only one used, in others
the essay is combined with another form, such as a graphic rating scale.

d) Management by Objectives (MBO): This method is one of the most popular

methods of performance appraisal for individuals. In this system, the manager and
the employee to be evaluated jointly set objectives/targets in advance for the
employee to achieve during a specified period.

e) Critical incident technique: In this technique the performance is assessed on critical

incidents-the performance incidents that are particularly effective or ineffective. The
HR specialists combine these statements into categories, which vary with the job.

f) Checklists and weighted checklists: This is another type of individual evaluation

method. In its simplest form, checklist is a set of objectives or descriptive statements
of job-related characteristics or behaviour.

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 SET - 2

Q.1 State the advantages and disadvantages of job evaluation in detail.

Answer:

The advantages of job evaluation are:

1. Job evaluation is a logical and an objective method of ranking jobs relative to each other.
It may thus help in removing inequities in existing wage structures and in maintaining sound
and consistent wage differences in a plant or an industry.

2. The method replaces accidental factors occurring in less systematic procedures of wage
bargaining by more impersonal and objective standards, thus establishing a clearer basis for
negotiation.

3. The method may lead to greater uniformity in wage rates and simplify the process of
wage administration.

4. Information collected in a process of job description and analysis can be used for
improvement of selection, training, transfer and promotion, procedures on the basis of the
comparative job requirement.

The limitations of job evaluation are:

1. Methods of job evaluation are not considered to be completely objectives some amount
of subjectivity is involved in the selection of benchmarking jobs and key compensable
factors.

2. External factors of jobs are not considered in job evaluation. It would be difficult to fix
anything less than the prevailing wages even if job evaluation recommends so.

3. Due to the faster pace of changes in the external factors such as technology and labour
market characteristics, job characteristics requirements undergo changes in quick
succession. This makes job evolution results relevant for a short period only.

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4. The determination of employee compensation is often influenced by the bargaining
power of the employees and their unions. However, the job evaluation process never
considers this factor while deciding the pay scale for jobs.

5. Since job evaluation is a time consuming, complex and costly process, small and medium
organisations give minimum importance on pay scale fixing.

Q.2 What do you mean by Discipline? Describe – Disciplinary actions and penalty in

any industry.

Answer:

Discipline is employee self-control which prompts him/her to willingly cooperate with the
organisational standards, rules, objectives, etc.

Discipline is best defined as the observation of principles, rules or any other laid down
procedures, practices, written or otherwise in the organisation by the employees or group
of employees, to whom these apply, for smooth and effective functioning of the
organisation.

According to Richard. D Calhoon, "discipline maybe considered as a force that prompts

individuals or groups to observe the rules, regulations and procedures which are deemed
to be necessary for the effective functioning of an organisation.”

Principal ingredients of a sound disciplinary system in organisations are:

1. Location of responsibility: The responsibility of creating awareness regarding discipline is

entrusted with every individual in the organisation. In case of employee indiscipline, the line
manager issues only verbal and written warnings. In serious cases, which warrant discharge
or suspension, the Industrial Relations Officer and other independent legal consultants need
to be consulted.

2. Proper formulation and communication of rules: The employees are expected to

conform to rules and regulations, and behave in responsible manner.

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3. Rules and regulations should be reasonable: Today’s organisation spay a lot of attention,
and rightly so, towards formulating equitable polices that protect employee as well as the
organisation’s values and rights.

4. Equal treatment: An employee should realise the consequence of his/her inappropriate

behaviour and if he/she is going against the norms or the rules.

5. Disciplinary action should be taken in private: While the policies governing the
acceptable code of conduct are communicated publicly, the reprimand for non-compliance
needs to be carried out in private.

6. Importance of promptness in taking disciplinary action: As goes the popular saying –

justice delayed is justice denied. If the action for review and reprimand is taken long after a
violation of a policy/rule has happened, it loses its positive and corrective influence.

7. Innocence is presumed: Again as per the fundamental rights of human being, an

individual is presumed to be innocent until he is proven to be guilty.

8. Get the facts: Before taking any disciplinary action, it is important tonsure that records of
the offence and any previous warnings are reviewed closely.

9. Action should be taken in a non-threatening atmosphere: Based inappropriate evidence

management can take proper action against the accused employee.

There are varying penalties for first, second, and third offences of the same rule. Following
are the commonly practiced actions in business organisations:

1. Oral reprimand

2. Written warning

3. Denial of increments, promotions and pay hikes

4. Pay reductions and disciplinary demotions

5. Suspension

6. Discharge or dismissal

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Q.3 Discuss about the statutory welfare facilities.

Answer:

Statutory welfare facilities are facilities offered by the organisations in compliance with the
central and state government regulations. The relevant provisions of various acts that deals
with employee welfare measures are:

The statutory welfare schemes include the following provisions:

1. Drinking water: At all working places safe hygienic drinking water should be provided.

2. Facilities for sitting: In every organisation, especially factories, suitable seating

arrangements are to be provided.

3. First aid appliances: First aid appliances are to be provided and should be readily
accessible, so that initial medication can be provided to the needed employee in case of any
minor accidents.

4. Latrines and urinals: Sufficient number of latrines and urinals are to be provided in the
office and factory premises and are to be maintained in neat and clean condition.

5. Canteen facilities: Cafeteria or canteens are to be provided by the employer so as to

provide hygienic and nutritious food to the employees.

6. Spittoons: In every work place, such as warehouses, store places, dock area and office
premises spittoons are to be provided in convenient places and are to be maintained in a
hygienic condition.

7. Lighting: Proper and sufficient lights are to be provided for employees so that they can
work safely during the night shifts.

8. Washing places: Adequate washing places such as bathrooms, washbasins with tap and
tap on the stand pipe are to be provided in the port area in the vicinity of the work places.

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9. Changing rooms: Adequate changing rooms are to be provided for workers to change
their clothes in the factory area and office premises. Adequate lockers are also to be
provided to the workers to keep their clothes and belongings.

10. Restrooms: Adequate numbers of restrooms are provided to the workers with
provisions of water supply, wash basins, toilets, bathrooms, etc.

Non-statutory welfare schemes

Organisations are increasingly offering some form of personal financial education as part of
their employee benefits programmes. They recognise that this service increases workplace
productivity and morale, while reducing stress levels. Other benefits to offering some form
of workplace financial education include:

1. helping employees improve their personal financial wellness.

2. Assisting employees with workplace stress associated with financial problems.

3. Helping employees navigate major financial milestones, including managing credit and
debt, insurance needs, investing basics, tax planning and others

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