NAME: GUPTA ROLL NO:

13

CLASS : T.Y.B.COM / DIV. B Subject :MARKETING & HUMAN RESOURCE MANAGEMENT

Q1.

What is Human resource Accounting? State its limitations.

Ans: Human Resource Accounting(HRA) relates to the valuation of human resource employed in an organization. It involves assessment of cost and value of the people as organizational assets. HRA is a tools which informs management about the changes taking place in the valuation of human resource working in an organization. Limitations: a) The valuation of HRA is based on the assumption that the employees are going to remain in the organization for a specified person. This assumption is not good since labor turnover is very common. b) HRA may lead to dehumanization in the organization if the valuation is done incorrectly. c) Various organizations conducting HRA adopt their own models. As a result, the value calculated can not be compared. d) The trade unions prefer parity of wages/salaries with value of employees. e) There is no specific and clear cut guidelines for cost and value of human resources in an organization. f) The life of human resource is uncertain and valuation under uncertainty is unrealistic. Q2. Importance of group dynamics

Ans : a) Group dynamics increases our knowledge about ourselves : The basis for comfortable group living is adequate self knowledge. Man must first understand himself before he can understand others. The study of group dynamics forces a man into introspection which increases his knowledge about himself by making him more sensitive to the impact of his own personality on others. b) Develops ability to anticipate the actions and reactions of others : One major benefit of understanding group dynamics is that it increases the most useful attribute empathy, which is a measure of how well a man understand the thoughts and feelings of others.

c) Smooth interpersonal relationship : The study of group dynamics facilitates smooth interpersonal relationships. Once a man knows himself better and has learnt enough about others, his inter personnel relationships will improve. He will keep good relations with others and will get the work done easily with the co-operations of others. d) Increase in satisfaction of self-actualization needs : Every individual has a desire to grow into a larger and better self. Group dynamics helps an individual in satisfying this need through success in group living. e) Motivation, leadership and communication : Group dynamics is useful in motivation, leadership and communication as these activities and relate to group behavior. Here, the group influences members in improving their job performance.

Q3. Importance of team building. Ans : Team building is an important and useful activity of raising organizational efficiency in terms of speed, output, and quality of production. Organizations encourage team building activities as such teams are useful to the organizations in different such as quality improvement, cost reduction and introduction of new production methods and techniques. Team building is important as it contributes to the organizational performance in the following ways : a) Team building improves overall performance of an organization in teams of production, productivity, sales, marketing and so on. b) Team building makes business economical by reducing costs in production, marketing and so on. c) Team building leads to industrial democracy and participative management in an organization. d) Team building develops cordial industrial relations and creates better understanding among employees as well as between employees and their superiors.

e) Team building improves the organizations ability/ capacity in problem solving and decision making. f) Team building helps in developing interpersonal relationships. g) Team building facilitates effective communication within the organization as well at different organizational levels. Q4. Importance of mentoring.

Ans : More and more companies are using this technique because of its superior quality, comprehensive character and practical result-oriented nature. The training is given by an expert occupying high and influential position in the organization. The mentor provides support to develop the overall personality of the mentee. Mentoring as a tool of HR development will be effective if the following conditions exist: a) The mentor is properly qualified and has adequate time for teaching, counseling and guiding his mentees. b) The mentees are selected properly. c) The top management of the organization offers support to mentoring process. d) Mentors and mentees are taking genuine interest in the mentoring process. e) Mentoring process is well planned and introduced in a systematic manner. Q5. Need for succession planning.

Ans : Succession planning ensures long term existence even when personnel come in and go out on regular basis. If they are able to adopt right type of plans and policies, the organization may expand and rise to a great light. The following points suggest the need of succession planning:
a) Opportunities to existing staff succession planning is needed as it provides

opportunities to existing employees for progress in their career and self development.
b) Avoiding frustration among existing employees- succession planning is needed

in order to avoid frustration among the top executives.

c) Avoiding high turnover- succession planning is needed in order to avoid high

rate of turnover among higher level personnel.

d) Motivating employees- succession planning is needed as it motivates existing

executives/officers responsibilities.
e)

to

grow

and

develop

for

additional

duties

and

Facilitates continuity of the organization- it bring stability and prosperity to the company. This gives strong justification to succession planning and supports its need. Promotion to suitable persons- succession planning is needed as it ensures identification of right persons for higher positions. an organization to groom the successors for key positions so that there is a level of match between the role requirements and personal abilities.

f)

g) Grooming of successors systematically- succession planning is needed as it helps

h) Ensuring loyalty- succession planning develops a feeling among executives that

the merits are counted/honored in the organization.

i)

Creating talent pools- succession planning develops talent pools in the organization from which selection of top positions is easily possible.

Q6.

Advantages of career planning.

Ans : Career is a systematic process by which an individual selects/decides his career goal and the path to achieve/reach these goals. Benefits:
a) Quality production and employee loyalty- organizations can achieve superior

quality of work from their employees and foster positive attitudes and corporate loyalty among employees through career planning.
b) Employee motivation- career planning ensures that the goals of individuals and

organizations are fairly identical and tries to keep the motivation of employees/ managers high.
c) Linking of individual career goals with organizational goals- career planning

helps employees to identify themselves with organizational goals and help achieve its objectives.
d) Facilitates managerial succession- career planning anticipates the future

vacancies that may arise due to retirement etc.

e) Facilitates career success- a well planned career planning programme leads to

career success of majority of employees of an organization.

f)

Job satisfaction to employees- career planning leads to job satisfaction, higher achievement motivation, higher efficiency and initiative on the part of employees. labor turnover and absenteeism due to job attraction, increased job satisfaction.

g) Reduces turnover and absenteeism- career planning brings down the rate of

h) Understanding of career opportunities- career planning helps employees to

know the career opportunities available in an organization.

i)

Better image in the employment market- an organization with well prepared program has a better image as a progressive organization in the employment market. Significance of employee empowerment.

Q7.

Ans : Empowerment develops self confidence among employees. It facilitates increased use of their talent. It is practiced at the global level as a means of motivating employees. Empowerment offers certain benefits to the management in the form of better performance from employees, loyal customers, higher quality, lower costs and greater productivity. In order to get full benefit of empowerment, these companies adopt the following principles while empowering their employees: a) Tell people / employees what their responsibilities are and authority equalk to the responsibility assigned to them. b) Set standard of excellence. c) Give them knowledge, information and training so as to enable them to reach to standards of excellence set. d) Provide them feedback on their performance. e) Allow them to fail but guide them when needed. f) Trust them ad create trust worthiness in the organization. g) Treat them with dignity and respect. Q8. Features of participative management.

Ans : Participation refers to mental and emotional involvement of a person in a group situation which encourages him to contribute to group goals and share in the responsibility of achieving them. Features:
a) Provides higher status to employees- in participative management, employees

are given higher status with power to participate in the decision making and running of their business enterprise.
b) Provides psychological satisfaction to employees- In participative management,

employees are consulted and their views are given due consideration by the management.
c) Facilitates attention to views of employees- the views of employees are given

special attention in regard to the following matters: Social matters Personnel Economic

d) Universally recognized concept- participative management concept has

universal recognition.
e) Participation is indirect- employee participation in the management is indirect

through the representatives of employees.

f)

Brings employees and management closure- it facilitates meaningful communication between them which ensures cordial industrial relations. only when management is professional.

g) Beneficial to both parties- participative management is beneficial to both parties

h) Revolutionary concept- participative management is a powerful tool which can

make industrial democracy a reality.

i)

Importance of communication system- participative management may be formal or informal. Levels of participative management- the coverage of participative management is comprehensive.

j)

k) Participative management concept has limitations- employees will not be

allowed to participate in the major financial and other decisions of the management. Q9. Aspects of workforce diversity. parts of the country. Employment opportunity should not be denied on the basis of religion, language or the state from which people have come for employment purpose. Such practices are unconstitutional as well as unethical.
b) Diversity as regards expectations- there is vast difference among employees as regards

a) Diversity in the workforce- in production organizations, workforce comes from different

their expectations from management. They want attractive wage scale, allowances and incentive payments. They expect training development. Wage difference exists in all organizations. Too much difference leads to problems.
c) Growth of knowledge workers- there is vast difference between knowledge workers

and other type of workers. Managing knowledge workers poses serious challenge before HR professional because of the unique characteristics of knowledge workers.
d) Lifestyle diversity- every employee prefers a lifestyle which suits him most. They prefer

employees who are willing to adjust their jobs as per their lifestyle. The workers in other categories have to face different situations.
e) Growing number of women employees- there is a rapid increase in the number of

women employees throughout the world. They work in managerial cadre as well as in non-managerial cadre. They are not treated at par with male employees. Q10. Measures of down sizing.

Ans : For reduction of excessive manpower in an organization, suitable downsizing plan will be necessary. Where there is surplus work force, trimming of labor force will be necessary. The trimming or downsizing plan prepared for this purpose will indicate: a) Who is to be made redundant and where and when, b) Plans for re-training where this has not been covered in the re-development plan, c) Steps to be taken to help redundant employees find new jobs, d) Policy for declaring redundancies and making redundancy payments and,

e) Programme for consulting unions or staff associations and informing those likely to be effected. For reducing surplus employees, some other methods can also be used. Such as: a) To retain all existing employees but to reduce the work hour for reduction in the total salary payment, b) To transfer or reassign employees in other parts i.e. branches etc. of the organization where there is need of additional employees. c) To offer incentives for early retirement in the forms of VRS. d) To declare lay-off for dealing with surplus staff.