Master of Business Administration-MBA Semester I Subject Code MB0043 Subject Name Human Resource Management Assignment Set- 2 (60

60 Marks) Note: Each question carries 10 Marks. Answer all the questions. Q.1 It is assumed that high morale leads to high productivity. Explain what morale is and how it is related to productivity? [10 Marks] Solution: Morale is also known as employee engagement in the modern day technology companies. Morale has been variously defined by different authors. Professor Ralph Ralph C. Davis says, Good organizational morale is a condition in which individuals and groups voluntarily make a reasonable subordination of their personal objectives for their organization. According to Dale Yoder and Paul D. Standohar, Morale means evident commitment that is demonstrated spirit enthusiasm, and confidence in the organizations policies, programmes and accomplishments. Morale is revealed by what individuals and groups say and do to show an interest in, understanding of and personal identification with work-team survival and success. Good morale is evidenced by employee enthusiasm, voluntary conformance with regulations and orders, and a willingness to co-operate with others in the surliness, insubordination, a feeling of discouragement and dislike of the job, company and associates. It is assumed that high morale and high productivity high quality and creative work all go hand in hand. Since morale manifests itself in the attitudes of employees, it is important to know about results of high and low morale. One of the most unpredictable effects of the level of morale is its impact on employee productivity. The productivity of a group is a composite of many factors, at least one of which is the general state of mind or the commitment of the group. Formerly it was thought it was thought that high morale resulted in high productivity. Research is repeatedly proving that this correlation is not as simple. Various studies have revealed that the group having the highest morale need not always be the highest in productivity. As morale is made up of so many factors, so is productivity, the result of a series of complex factors. When a group is convinced that high productivity will result in its getting the things it wants most, it is reasonable to believe that productivity will be high. It is likewise reasonable to believe that if the groups satisfactions in the work situation are high and high productivity will enable it to get the things it wants most, the productivity may be high. Though high morale may not be the single cause of the high productivity, a high-producing group nearly always has a reasonably high morale, in terms of the company successful operations where the individuals can relate their respective endeavors and objectives to the

success of the enterprise as a whole. A morale-building organization tends to utilize fully the skill, initiative, judgment and training of its members and through such utilization succeeds in building up these and other qualities in everyone, so that the abilities of all constantly expand and the organization thus is able to succeed and grow. However, research has shown that the relationship between the two is not so direct and positive as that. It is possible to find thigh morale related to low productivity and low morale associated with high productivity. High productivity goes with high morale when the workers are motivated and the supervision is of the right type (i.e., the supervisors treat the men with consideration). In fact, high productivity may push up productivity. In the absence of proper motivation, both morale and productivity may be low. High morale and low productivity will go together when the men are deficient in training and the supervisors and not wholly competent. Low morale and high productivity will go together when the management uses penalties and punishments and provides better equipment to the workmen. But it must be remembered that high productivity with low morale cannot be sustained for long. That shows that workers' attitudes towards the job, the supervisors and the organization and its policies are an important factors in productivity and the management must try to ensure favorable attitudes on the part of men while taking the other steps for raising productivity.

Q.2 Coxen is a medium size, plastic manufacturing company. In this Company, workers have developed grievances against management. For past 2 years, in spite of making profit, company is not paying bonus to workers. It is expected that, if the grievances are not dealt with, it might lead to severe consequences. Imagine this situation and explain the grievance handling procedure, list each steps of the procedure. Suggest few measures to avoid grievances. [10 Marks] Maintaining quality of work life for its employees is an important concern for the any organisation. The grievance handling procedure of the organisation can affect the harmonious environment of the organisation. The grievances of the employees are related to the contract, work rule or regulation, policy or procedure, health and safety regulation, past practice, changing the cultural norms unilaterally, individual victimization, wage, bonus, etc. Here, the attitude on the part of management in their effort to understand the problems of employees and resolve the issues amicably have better probability to maintain a culture of high performance. Managers must be educated about the importance of the grievance process and their role in maintaining favorable relations with the union. Effective grievance handling is an essential part of cultivating good employee relations and running a fair, successful, and productive workplace. Positive labor relations are two-way street both sides must give a little and try to work together. Relationship building is key to successful labor relations. (i) An arrived employee shall first present his grievance verbally in person to the officer designated by the management for this purpose. The response shall be given by the officer within 48 hours of the presentation of the complaint. If the worker is not satisfied wit the decision of the officer or fails to receive the answer within 48 hours he will, either in person

or accompanied by is departmental head, present his grievance to the head of the department. (ii) The head of the department shall give his answer within 3 days or if action cannot be taken within this period, the reason for delay should be recorded. If the worker is dissatisfied with the decision of the department all head, he may request that his grievance be forwarded to the Grievance Committee. (iii) The Grievance committee shall make its recommendation to the manager within 7 days if the workers request. If decision cannot be given within this period, reason should be recorded. Unanimous decision of the committee shall be implemented by the management. If there is differences of opinion among the members of the committee, the matter shall be refereed to the manager along with the views of the members and the relevant papers for final decision. (iv) In either case, the final decision of the manger shall be communicated to the employee within three days from the receipt of the Grievance Committee's recommendations. (v) If the worker is not satisfied even with the final decision of the manager, he may have the right to appeal to the manager for revision. In making this appeal he may take a union official with him to facilitate discussion with the management . The management will communicate the decision within 7 days of workman's revision petition. (vi) If worker is still not satisfied, the mater may be referred to voluntary arbitration. (vii) Where a workers has taken a grievance for readdress under the grievance procedure the formal conciliation machinery shall not interview till all steps in the procedure have exhausted. A grievance shall be presumed to assume the form of a dispute only when the final decision of top management is turned down by the worker. Precautions and Prescriptions The management should take care of following aspects to develop a culture of trust and confidence upon the employees. 1. Always ensure that the managers involved in the grievance handling procedures have a quiet place to meet with the complainant. 2. Always ensure that managers have adequate time to be devoted to the complainant. 3. Explain manager's role, the policy and the procedures clearly in the grievance handling procedure. 4. Fully explaining the situation to the employee to eliminate any misunderstanding and promote better acceptance of the situation complained of. 5. Try to let employee present their issues without prejudging or commenting 6. Do use a positive, friendly ways to resolve the crisis than punitive steps, which disturb the system. 7. Do remain calm, cool, collected during the course of the meeting. 8. Always focus on the subject of the grievance than allied issues. 9. Don't make threats manage the grievances. 10. Never make use of allegations against personalities. 11. Be aware of the staff member's potential concerns to the possible repercussions of raising a grievance. 12. Don't become angry, belligerent, or hostile during grievance handling procedure.

13. Do listen for the main point of arguments and any possible avenue to resolve the grievance. 14. Listen and respond sensitively to any distress exhibited by the employees. 15. Eliminating the source of the irritation or discomfort being complained of. 6. Reassure them that the managers will be acting impartially and that your hope is to resolve the matter if possible. 17. Don't "horse trade" or swap one grievance for another (where the union wins one, management wins one). Each case should be decided on its merits. 18. Avoid usage of verbosisms like "it will be taken care of." 19. Ensure effective, sensitive and confidential communication between all involved. 20. Take all possible steps to ensure that no victimization occurs as a result of the grievance being raised. 21. The investigator or decision maker acts impartially, which means they must exclude themselves if there is any bias or conflict of interest. 22. All parties are heard and those who have had complaints made against others are given an opportunity to respond. 23. Try to look upon the problem on different angles for appropriate understanding. 24. Ensuring that there is proper investigation of the facts and figures related the problem under concern. 25. Consider all relevant information in the investigation process. 26. Ask the staff member their preferred resolution option, although it is important to make it clear that this may not be a possible outcome. 27. Be aware of the limits of authority of the person who involved in the grievance handling procedures. 28. If the manager feels that he/she is not the appropriate person (senior manager) to deal with the issue refer the complainant to the appropriate person as soon as possible. 29. Try to get a better idea of whether the alleged discrimination or harassment happened or didn't happen. 30. Tell them exactly what they are supposed to have done, to whom and explain, why this may be seen as discrimination/harassment or as inappropriate. 31. Grievances are preferably to be settled informally at the level of the employee's immediate supervisor. 32. Try the level best to involve team members to resolve the crisis at unit level itself. 33. Avoid as far as possible the union involvement in conflict resolution situation process. 34. Follow documentation the procedures, of all necessary steps taken to resolve the problem/complaint.

Q.3 Write a brief note on Succession planning.

[10 Marks]

Solution: Succession planning is a process for identifying and developing internal personnel with the potential to fill key or critical organizational positions. Succession planning ensures the availability of experienced and capable employees that are prepared to assume these roles as they become available. Succession planning accelerates the transition of qualified employees from individual contributors to managers and leaders. Succession planning: Prepares current employees to undertake key roles Develops talent and long-term growth Improves workforce capabilities and overall performance Improves employee commitment and therefore retention Meets the career development requirements of existing employees Improves support to employees throughout their employment Counters the increasing difficulty of recruiting employees externally Focuses on leadership continuity and improved knowledge sharing Provides more effective monitoring and tracking of employee proficiency levels and skill gaps. Succession planning is a necessary part of an organisation's ability to reduce risk, create a proven leadership model, smooth business continuity and improve staff morale.

Q.4 Think of a situation in which an employee is to be dismissed from the organization, what will be the fair steps of dismissal followed by the organization? [10 Marks] Solution: According to Article 311 of the Indian Constitution, which states that no person shall be dismissed or removed from service until he has been given a reasonable opportunity to show cause as to why the proposed action should not be taken against him? The Model Standing Orders, similarly states that, before an employee is dismissed, he should be given an opportunity to explain the circumstances against him. The following steps are followed for dismissal of an employee: i. Charge Sheet is Framed and Issued: ii. Explanation Receipt iii. Issue of Notice of Enquiry iv. Conducting the Enquiry v. Sharing Findings
a) Charge Sheet is Framed and Issued: The first step in the procedure is to have in-place

a written complaint against the employee in question and which contains details of the offence with which he is charged, policy breach and the allegation of misconduct made against him and indicating the time limit within which a reply to the charge sheet should be submitted to the due authorities. The employee is called to put forth his case why a disciplinary action should not be taken against him. The contents and implications of the complaint/charge sheet may be explained to him in his own language and in the presence of some reputable witness, before a copy of it is handed over to him. If he refuses to accept it, it should be sent to his residential address registered post with acknowledgement due. If the employee refuses to take delivery of the registered letter, or when it has been returned undelivered, it should be published in a local paper to ensure its wide publicity.
b) Explanation Receipt:

The employee provides his explanation within the scheduled time allotted. He can also ask for an extension of time for its submission, all in good faith.

c) Issue of Notice of Enquiry: Upon receipt of the explanation from the employee it is

reviewed. If found unsatisfactory, a notice of enquiry, mentioning the time, date and place, has to be given to him in which the name of the person or officer conducting the enquiry would also be mentioned. The employee is required to be present at the appointed time and place, together with his witness, if he has any.

d) Conducting the Enquiry: On the appointed day and at the appointed place and time,

the enquiry is held by the Enquiry Officer in the presence of the employee. The contents of the charge sheet and an explanation of the procedure to be followed at the enquiry proceeds communicated to the worker. If he pleads his innocence, the enquiry proceeds but if he pleads guilty, unconditionally and in writing the enquiry is dropped.
e) Sharing Findings: Once the enquiry is over, the Enquiry Officer has to give his findings,

which should invariably contain the procedure which was followed, the employees statements, all of the documents produced and examined, the charges made and the explanations given and the evidence produced. The officer should then record his own findings on each of the charges and the grounds on which he has come to a particular conclusion. He should specifically mention which charges have been proved and which have not been proved. He then submits his findings to the authorities empowered to take the disciplinary action against the employee. He however, is not required to make any recommendations. i. On receiving the report, the executive authorized to take a decision thereon passes an order of action. ii. Communication of the decision. A copy if the order is then handed over to the employee.

Q.5 Describe the process of wage fixation and the machinery available for it. Solution:

[10 Marks]

The Tribunals and Wage Boards have generally followed the principles laid down in the Fair Wages Committees Report on fixing wages. The Committee, in its report, has focused on wage differentials and has identified the following factors for consideration for fixation of wages: 1. The degree of skill 2. The Strain of work 3. The experience involved 4. The training involved 5. The responsibility undertaken 6. The mental and physical requirements 7. The disagreeableness of the task 8. The hazard attended on the work 9. The fatigue involved

Classification of wages: The International Labour Organization (ILO) in one of its publications, classified wages as under: 1. The amount necessary for mere subsistence 2. The amount necessary for health and decency and 3. The amount necessary to provide a standard of comport. In India, wages are classified as below: a. Minimum Wage b. Fair wage and c. Living wage Minimum Wage: A minimum wage has been defined by the Committee as the wage which must provide not only for the bare sustenance of life, but for the preservation of the efficiency of the worker. For this purpose, the minimum wage must provide for same measure of education, medical requirements and amenities. In other words, a minimum wage should provide for the sustenance of the workers family, for his efficiency, for some amenities. It is very difficult to determine the minimum wage because conditions vary from place to place, industry to industry and from worker to worker. However, the principles for determining minimum wages were evolved by the Government and have been incorporated in the Minimum Wages Act, 1948, the important principle being that minimum wages should provide not only for the bare sustenance of life but also for the preservation of the efficiency of the workers by way of education, medical care and other amenities. Fair Wage: According to the Committee on Fair Wages, it is the wage which is above the minimum wage but below the living wage. The lower limit of the fair wage is obviously the minimum wage; the upper limit is set by the capacity of the industry to pay. Between these two limits, the actual wages should depend on considerations of such factors as: I) II) III) IV) The The The The productivity of labour prevailing rates of wages in the same or neighboring localities level of the national income and its distribution and place of industry in the economy.

Living Wage: The wage was recommended by the Committee as a fair wage and as ultimate goal in a wage policy. It defined a Living Wage as one which should enable the earner to provide for himself and his family not only the bare essential of food, clothing and shelter but a measure of frugal comfort, including education for his children, protection against illhealth, requirements of essential social needs and a measure of insurance against the more important misfortunes including old age. In other words, a living wage was to provide for a standard of living that would ensure good health for the worker and his family as well as a measure of decency, comfort, education for his children and protection against misfortunes. Generally, ascertaining wages and deciding who to pay what is a activity undertaken in the beginning when a organization is set up. Thereon it is annual reviews to make corrections per

the countrys economic and market/industry trends. The management considers the state of the value of the worker to him. The workers willingness for employment at the rate offered implies that they agree to work at that rate, though they have had no part in fixing it. 1. Collective Bargaining 2. Voluntary Arbitration 3. Wage Legislation 4. Conciliation 5. Adjudication 6. Wage Boards

Q.6 Write short notes on: Solution:

[10 Marks]

Charismatic Leadership: This points out that charisma is a personal trait. Often it is confused and interpreted as the highest form of transformational leadership, but increasing research supports a different thought. Charismatic or heroic leaders easily build allegiance in followers but do not necessarily change the organization. Charismatic leadership is leadership based on the leader's ability to communicate and behave in ways that reach followers on a basic, emotional way, to inspire and motivate. We often speak of some sports and political leaders as charismatic (or not) -- an example being John F. Kennedy. It's difficult to identify the characteristics that make a leader "charismatic", but they certainly include the ability to communicate on a very powerful emotional level, and probably include some personality traits. Developing "charisma" is difficult, if not impossible for many people, but luckily charismatic leadership is not essential to be an effective leader. Many other characteristics are involved in leading effectively, and there is significant evidence to indicate that it simply is not necessary to have this elusive charisma to lead others well. Relying on charisma to lead also can be problematic. For example, there have been many charismatic leaders who lack other leadership characteristics and skills (e.g. integrity) and lead their followers into situations that turn out horribly -- think political leaders such as Stalin, Hitler, and even business leaders (Enron). Finally, in organizations lead by charismatic leaders, there is a major problem regarding succession. What happens when a leader who relies on charisma leaves? Often the organization founders because the ability to lead rested with one person's charisma. Participative Leadership: Lewins study found that participative (democratic) leadership is generally the most effective leadership style. Democratic leaders offer guidance to group members, but they also participate in the group and allow input from other group members.

While it is possible that this style productivity is lower than that in the authoritarian group, but the contributions were of much higher quality. This could also be more time taking. Participative leaders encourage group members to participate, but retain the final say over the decision-making process. Group members feel engaged in the process and are more motivated and creative. Lewins study found that participative (democratic) leadership is generally the most effective leadership style. Democratic leaders offer guidance to group members, but they also participate in the group and allow input from other group members. In Lewins study, children in this group were less productive than the members of the authoritarian group, but their contributions were of a much higher quality. Participative leaders encourage group members to participate, but retain the final say over the decision-making process. Group members feel engaged in the process and are more motivated and creative. Delegative Leadership: Delegative leaders offer little or no guidance to group members and leave decision-making entirely to group members. While this style can be effective in situations where group members are highly qualified in an area of expertise, it often leads to poorly defined roles and a lack of motivation. Delegative (Laissez-Faire) - Researchers found that children under delegative (laissez-fair) leadership were the least productive of all three groups. The children in this group also made more demands on the leader, showed little cooperation, and were unable to work independently. Delegative leaders offer little or no guidance to group members and leave decision-making up to group members. While this style can be effective in situations where group members are highly qualified in an area of expertise, it often leads to poorly defined roles and a lack of motivation.

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