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  • 8/13/2019 HRM Capsule





    1. There are two sets of human resource management functions-managerial and operational.Discuss these functions.

    Ans.There are two types of functions of HRM. These are:

    Managerial functions:

    1) Planning:This function deals with the determination of the future course of action to achievedesired results. Planning of personnel today prevents crises tomorrow. The personnel manager is

    expected to determine the personnel programme regarding recruitment, selection and training of


    2) Organizing:This function is primarily concerned with proper grouping of personnel activities,assigning of different groups of activities to different individuals and delegation of authority.

    Creation of a proper structural framework is his primary task. Organizing, in fact, is considered

    to be the wool of the entire management fabric and hence cannot afford to be ignored.3) Directing:This involves supervising and guiding the personnel. To execute plans, direction is

    essential for without direction there is no destination. Many a time, the success of the

    organization depends on the direction of things rather than their design. Direction then consists

    of motivation and leadership. The personnel manager must be an effective leader who can create

    winning teams. While achieving results, the personnel manager must, invariably, take care of the

    concerns and expectations of employees at all levels.

    4) Controlling: Controlling function of personnel management comprises measuring theemployees performance, correcting negative deviations and industrial assuring an efficient

    accomplishment of plans. It makes individuals aware of their performance through review

    reports, records and personnel audit programmes. It ensures that the activities are being carried

    out in accordance with stated plans.

    Operative Functions:

    1) Procurement function: The first operative function of personnel management is procurement. It isconcerned with procuring and employing people who possess necessary skill, knowledge and aptitude

    Under its purview you have job analysis, manpower planning, recruitment, selection, placement

    induction and internal mobility.

    i. Job Analysis:It is the process of study and collection of information relating to the operationsand responsibilities of a specific job.

    ii. Human Resources Planning: It is a process for determination and assuring that theorganization will have an adequate number of qualified persons, available at proper times,

    performing jobs which would meet the needs of the organization and which would provide

    satisfaction for the individuals involved.

    iii. Recruitment:It is the process of searching for prospective employees and stimulating them toapply for jobs in an organization. It deals with:

    a) Identification of existing sources of applicants and developing them.b) Creation / Identification of new sources of applicants.

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    c) Stimulating the candidates to apply for jobs in the organization.d) Striking a balance between internal and external sources.

    iv. Selection:It is the process of ascertaining the qualifications, experience, skill, knowledge etc., ofan applicant with a view to appraising his / her suitability to a job appraising.

    v. Placement: It is the process of assigning the selected candidate with the most suitable job interms of job requirements. It is matching of employees specifications with job requirements.

    vi. Induction and Orientation: Induction and orientation are the techniques by which a newemployee is rehabilitated in the changed surroundings and introduced to the practices, policies

    purposes and people etc., of the organization.

    2) Human Resource Development : Human resource development refers to the process whereby theemployees are continuously helped in a planed way to

    Acquire or sharpen capabilities required to perform various tasks associated with their present /futureexpected roles.

    Develop their general capabilities as individuals so that they are able to discover and exploit their owninner potential for their own and/or organizational development purpose.

    Develop an organizational work culture where superior subordinate relationships, team work andcollaboration among different units are strong and contribute to the professional well being

    motivation and pride.

    This Function includes:

    i. Trainingii. Management Development

    iii. Career Planning and Development: It is the planning of ones career and implementation ofcareer plans by means of education, training job search and acquisition of work experience. It

    includes internal and external mobility.

    a) Internal Mobility: It includes vertical and horizontal movement of an employee within anorganization. It consists of transfer, promotion and demotion.

    Transfer Promotionb) External Mobility:External mobility is of two types, viz., accessions and separations.

    Accessions: Accessions are additions of new candidates to the existing employees. Accessions

    include employment of new candidates, re-employment of former employees, employees called

    back to work after lay-off, etc.

    Separations: Separations mean termination of employment. They are also called employee

    turnover. They include:

    Voluntary Quit: Lay-off Disciplinary Lay-off or Discharge: Retirement, and Deaths:

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    Organization Development:It is a planned process designed to improve organization effectiveness and

    health through modifications in individual and group behavior, culture and systems of the organization

    using knowledge and technology of applied behavioral science.

    3) Compensation:It is process of providing adequate, equitable and fair remuneration to the employees. Itincludes job evaluation, wage and salary administration, incentives, bonus, fringe benefits, social

    security measures, etc.


    Job Evaluation:It is the process of determining relative worth of jobs; Select suitable job evaluation techniques. Classify jobs into various categories. Determining relative value of jobs in various categories.

    ii. Wage and Salary Administration: This is the process of developing and operating a suitable wagesalary program. It covers:

    Conducting wage and salary survey. Determining wage and salary .rates based on various factors. Administering wage and salary programs. Evaluating its effectiveness.

    iii. Incentives:It is the process of formulating, administering and reviewing the schemes of fir incentives inaddition to regular payment of wages and salary. It includes:

    Formulating incentive payment schemes. Helping functional managers on the operation. Review them periodically to evaluate effectiveness.

    iv. Bonus: It includes payment of statutory bonus according to the Payment of Bonus Act, 1956 and itslatest amendments.

    v. Fringe Benefits:These are the various benefits at the fringe of the wage Management provides thesebenefits to motivate the employees and to meet their lifes contingencies. These benefits include:

    Disablement benefit. Housing facilities Educational facilities to employees and children. Canteen facilities. Recreational facilities. Conveyance facilities. Credit facilities. Legal clinic. h) Medical, maternity and welfare facilities. i) Company stores.4) Maintenance:It aims at protecting and preserving the physical and psychological health of employees

    through various welfare measures.5) Integration function: This tries to integrate the goals of an organization with employee aspirations

    through various employee-oriented programmes, like redressing grievances promptly, instituting proper

    disciplinary measures, empowering people to decide things independently, encouraging a participative

    culture, offering constructive help to trade unions etc.

    2. Critically examine the relevance of HRM in todays scenario. Also enumerate the challenges ofhuman resource management.

    Ans. Relevance of HRM lies at the various levels, which are as follows:

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    1) Individual level:effective management of human resources help employees in the following ways:i. Promoting team work and team spirit among employees.

    ii. Offering excellent growth opportunities to people who have the potential to rise.iii. Allowing people to work with diligence and commitment.

    2) Professional level:By providing healthy working environment, it promotes teamwork in the employees.This is done by:

    i. Maintaining the dignity of the employees as a human-being.ii. Providing maximum opportunities for personnel development.

    iii. Providing healthy relationship between different workgroups so that work is effectivelyperformed.

    iv. Improving the employees working skill and capacity.v. Correcting the errors of wrong postings and proper re-allocation of work.

    3) Social level:Proper management of personnel enhances their dignity by satisfying their social needs.This is done by:

    i. Maintaining a balance between the jobs available and the job seekers, according to thequalifications and needs.

    ii. Providing suitable and most productive employment, which might bring them psychologicalsatisfaction.

    iii. Making maximum utilization of the resource in an effective manner and paying the employee areasonable compensation in proportion to the contribution made by him.

    iv. Eliminating waste or improper use of human resource.v. By helping people to make their own decisions, that are in their interests.

    4) Corporate level:HRM is useful in helping business organizations to attain its goals and objectivesmore efficiently and effectively in the following ways:

    i. HRM ensures that business organization has a team of dedicated, competent employees.ii. HRM effectively utilize all available human resources.

    iii. HRM attracts as well as retains requisite talent through effective HR planning, recruitment,selection, placement, orientation, compensation, and promotion policies.iv. HRM develops requisite skills and correct attitude amongst the employees through employee

    training, development, performance appraisal, and other schemes.

    v. HRM effectively secures the willing cooperation of employees through motivation, grievancehandling, and so on.

    5) National level:HRM plays a very important role in the development of nation in following ways:i. Efficient exploration and utilization of natural, physical, and financial resources of nation.

    ii. HRM helps to accelerate the process of economic growth.iii. HRM also helps in improving the standard of living and better employment.

    Challenges of HRM

    In the last decade, a revolutionary change has taken place in business management practice across the world

    as well as in India. Some of these challenges are as follows:

    1) Globalization: - Growing internationalization of business has its impact on HRM in terms ofproblems of unfamiliar laws, languages, practices, competitions, attitudes, management styles, work

    ethics and more. HR managers have a challenge to deal with more functions, more heterogeneousfunctions and more involvement in employees personal life.

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    2) New Technology:Advanced technology has tended (regularly) to reduce the number of jobs that requirelittle skill and to increase the number of jobs that require considerable skill, a shift, moving from work

    to knowledge work. This displaces some employees and requires that others be re -trained.

    3) Market challenges: In order to respond to customer needs better, faster, and more economically,organizations have to institutionalize Total Quality Management (TQM) and re-engineering

    programmes. Each of these programmes requires that human resource management be involved in

    changing work processes, training, job design compensation, etc.

    4) Partnership between Line Management and Human Resource Management: In working with linemanagement to address the organizations challenges, human resources management plays a number ofimportant roles pertaining (related) to advice and counseling of various service activities for policy

    formulations and implementation and for employee advocacy.5) Contribution to the success of organizations: - The biggest challenge to an HR manager is

    to make all employees contribute to the success of the organization in an ethical and socially responsible

    way. Because societys well being to a large extent depends on its organizations.

    6) Change management:This is another challenge that more and more HR departments are facing. Beingable to deal with their own changing roles in corporate society, in addition to the changes to other jobs,

    the overlapping responsibilities, and more. Understanding that change is required is the first step toward

    accepting the change.

    7) Knowledge Management:With increasing use of knowledge, managing knowledge for the future is ofparamount importance. The challenge for human resource management is to create knowledge

    management system that promotes both the development of knowledge and its utilization.

    8) Training and development:This is another challenge that HR managers and personnel must deal withmore frequently. With the need to cut training costs, training itself often suffers. Yet the skills an

    employee needs must still be taught. Many companies are meeting this challenge by providing

    eLearning opportunities that allow employees to receive the training they need without the expenses

    associated with travel, on-site trainers, hours away from their jobs and high-priced materials.

    9) Dynamic Organization Culture:With increasing emphasis on human resource competency, buildingchanging and sustaining (supporting) a vibrant (existing), dynamic and responsive work culture is adaunting (demoralizing) task. Also, many managers fear modern methods of human resource

    management and are themselves obstacles in achieving the full potential of human resources and the

    benefits of human resource management techniques.

    3. Write a detailed note on environment of HRM.Ans.Environment is a very important variable in the HRM. Organizations are greatly influenced by changes

    taking place in internal as well as external environment. Environment of HRM refers to the aggregate of

    conditions, events and influences that surround and affect it. Following are the external and internal

    environment in which the HRM has to function.-

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    External Environment: -External environment exerts (bring something) considerable influence on HRM.

    Prominent (well-known) external factors affecting organizations human resource are as follows:

    1) Technological Factors: Technological environment refers to the sum total of knowledge providingways to do things. Technology not only affects the internal operations of organizations but it also affects

    how HR professionals work. By linking computers, fax machines, printers, and the likes, information

    can be disseminated (spread) more quickly. With that information, HR planning can be better facilitated,

    decisions can be made faster, and communication with employees and external community can be

    enhanced. Technology has changed HRM practices in the following areas:

    i. Recruitment & Selection: In recruitment and selection, the total process has been reduced tosuch an extent (degree) that the entire process can be completed within a very short time. By

    posting jobs on the internet, required information is assimilated (integrated) quickly; applications

    from prospective candidates can be received quickly; even interviews can be conducted through

    telephone; result of selection process can be communicated electronically.

    ii. Training and Development:In training and development, technology has dramatically changedthe way how HR professional train and develop their employees. The internet has providedopportunities to deliver specific information to employees on demand; Visual Display Terminal

    (VDT) is being used to make training programmes more effective.

    iii. Communication: In this, Open door policy has been introduced in which any one cancommunicate with anyone in the organization without being limited because of hierarchical


    2) Economic Factors:Economic factors include all those economic forces which affect the HR function.A brief description of these factors is as follows:

    i. Suppliers:As regard the HR department, the suppliers are those who provide human resourcesto the organization.

    ii. Customers:Nowadays, customers are considered the kings. They want high quality products atreasonable prices. It is the responsibility of every employee to ensure that their work is of the

    highest standard. Sales are affected by the product quality which is directly related to the skills

    and qualifications of the employees.

    iii. Competitors:Competition in a particular industry plays a very important role in the HRfunctions and activities.

    iv. Globalization:Due to globalization, the HR managers are required to play challenging roles andcreate competitive advantages for their concern. Global firms have to continually re-organize

    their operations and refocus their energies around their crucial areas of competence.

    HRM Social factors


    Cultural factors

    Technological factors

    Economic factors

    Political-Legal Factors


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    3) Cultural factors:Culture refers to the complex whole which includes knowledge, belief, art, morals,laws, customs and other capabilities and habits acquired by an individual as a member of a society.

    Culture influences HR functions in the following ways;

    i. The attitude of workers towards work is the result of their cultural background. For example,Indian workers are known to have a deep-seated apathy (boredom) towards work.

    ii. Time dimension, which influences HRM, has its roots in culture. in some societies, people areoriented towards the past.

    iii. Culture makes people confine (jail) themselves to certain occupations and regions. For example,workers employed in coffee estates or tea plantations in Malnad region cannot probably work in

    places like Bangalore.

    4) Social Factors:Firms do not operate in isolation (separation). They are stuck with society. Socialimpacts have to be carefully evaluated before undertaking any action programme. And society here

    includes the firms own employees and their friends, relations, neighbours as well. Society also exerts

    pressure on HRM.

    5) Professionalism:Job holders and seekers have become highly professionalized and knowledgeablenowadays. On the one hand, such organizations can boast of a progressive and modern outlook of its

    personnel; but on the other hand, the problems faced are also serious. A few of these problems are as


    i. It is a difficult job to motivate such employees. They are motivated only by opportunities whichoffer challenges, growth and achievement.

    ii. Retaining such employees in the organizations is another difficult job. The company has to makeseveral allowances to discourage such practices.

    6) Unions:A union is comprised of employees who have joined together for the purpose of dealing withtheir employer. Unions are treated as an environmental factor because, essentially, they become a third

    party when dealing with the company.

    7) Political-Legal factors:The political environment covers the impact of political institutions on theHRM department. In a democratic political setup, there are three institutions which together constitutethe total political environment. They are:

    i. Legislature:The legislature is also called parliament. The plethoras (excess) of labour actswhich are in force are enacted by the legislature.

    ii. Executive:The executive, popularly known as the government, is the law-implementing body.The legislature decides and the executive acts.

    iii. Judiciary:The judiciary has the role of a watchdog.Internal environment:Internal environment comprises of the factors which affect an organizations human

    resources from inside the organizations boundaries. Mission, Policies, Organizational culture, HR system

    etc. are the variable of hr internal environment.

    1) Mission: The mission is the very reason and justification for the existence of a firm. Anorganizations mission statement tells what it is, why it exists and the unique contribution it can

    make. At various levels, people must carry out assigned tasks keeping the overall mission of the firm

    in mind.

    2) Policies:Policies tell people what they may or may not do. Some of the important policies thatinfluence the work of an HR manager are listed as follows:

    i. To provide safe working conditions for employees.ii. To encourage the employees to achieve as much of their potential as possible.

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    iii. To provide such compensation to employees that encourages high level of performance.iv. To provide promotional avenues to employees.

    3) Organizational Culture:Organizational culture is the set of assumptions, beliefs, values, andnorms that are shared by an organizations members. Organizational culture is very important factor

    which affects organizational processes and practices including HRM practices. HRM practices are

    culture bound.

    4) Organizational Structure:Organization structure describes the allocation of tasks andresponsibilities among individuals and departments.

    5) HR System:HRM as a system signifies interconnected but separate elements (called sub-systems)functioning together to realize the overall goal of the organization.

    4. Describe various barriers to SHRM. Discuss the ways to overcome these barriers.Barriers to SHRM:Although the concept of strategic HR may make sense logically and automatically,

    many organizations have a difficult time taking a strategic approach to HR. few issues that delay

    effective SHRM implementation are as follows:

    1) Absence of Long-Term Orientation:SHRM requires long-term planning, orientation, and HRinterventions strategies. However, organizations often content themselves with short-term goals

    and gains.

    2) Lack of Strategic Reasoning: When HR managers lack training and experience in strategicmanagement, they find it difficult to develop HR strategies, align the same with corporate

    strategies, and then influence the employees to support them.

    3) Lack of Adequate Support from Top management:If the top management support would notbe there, so HR cannot execute the strategic decisions in a proper manner.

    4) Resistance from Labour Unions: The introduction of SHRM usually requires extensivechanges in the work culture, HR practices and processes. The real or perceived consequences of

    such changes may frighten the employees.

    5) Fear of Failure:Since SHRM include with many uncertainties, HR manager often hesitate toundertake strategic HR initiatives due to the fear of failure.Overcoming Barriers to SHRM

    Ways to overcome barriers to SHRM are as follows:

    1) Conduct a Rigorous Initial Analysis: The initial analysis should cover business needscorporate culture, and internal and external environment factors.

    2) Formulate Strategy:The formulation should set out the rationale for the strategy and spell outits aims, cost and benefit.

    3) Gain Support: Particular care needs to be taken to obtain the support of top managers (forwhom a business case must be prepared), line managers, employees generally and trade unions.

    4) Manage Change:Change management processes should be used to gain acceptance for any newinitiatives contained in the strategy.

    5) Prepare Action Plans: The action plan should indicate the consultation, involvement,communication and training programmes that will be required. It should also state how progress

    will be monitored, and the criteria for measuring success against objectives.

    6) Project Management and Implementation: This should be conducted by reference to theaction or project plan, and would involve monitoring progress and dealing with problems as they


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    7) Follow-Up and Evaluate: Nothing can be taken for granted. It is essential to follow up andevaluate the results of the initiative. Follow up can take place through interviews; focus group

    and desirably, attitude surveys. The evaluation should point the way to action in the form of

    amendments to the original proposals, the provision of supporting processes, additional support

    to line managers, intensified communication and training, or getting more resources.

    5. Enumerate the nature and importance of SHRM.Strategy:Strategy is a way of doing something. It includes the formulation of goals and set of action plans for

    accomplishment of that goal.

    Strategic Management:

    A Process of formulating, implementing and evaluating business strategies to achieve organizational

    objectives is called Strategic Management

    Nature of SHRM

    1) Long-Term Focus: SHRM has long-term focus, more than a year, as the business strategiesitself are long-term oriented.

    2) Associated with Goal-Setting:Strategic human resource management is closely associated withgoal-setting, policy formulation and allocation of resources. It is performed at top management


    3) Interrelated with Business Strategies: Strategic human resource management is interrelatedwith business strategies.

    4) Fosters Corporate Excellence Skills:Strategic human resource management views employeesas the strategic capability of the organization and attempts to distinguish the organization from

    its competitors in the markets on that basis. It also facilitates learning of new age skills.

    Importance of SHRM

    SHRM is important because of the following reasons:1) Helps Firm in Achieving Cost-Effective Engagement of Labour: SHRM helps firm in

    achieving cost-effective engagement of labour as part of the competitive advantage initiative.

    2) Enables Firm to Meet Changing Needs:The flexible structure and dynamic policies of SHRMenable the firm to meet the changing needs and expectations of the customers effectively and


    3) Provides Clear-Cut Goals, Direction, and Future Focus:Since SHRM requires a well-definedmission and vision for its effective implementation, it is able to provide clear-cut goals,

    direction, and future focus to the entire organization.

    4) Helps Organization in Planning and Executing Organizational Changes: It provides aplatform for the organization to plan and execute organizational changes in a timely and effective


    5) Ensures Optimum Utilization of Organizational Resources: It ensures the optimumutilization of organizational resources by constantly matching the internal strength of the firm

    with the external opportunities.

    6) Develops, Managers, and Sustains Skills and Knowledge: For a learning organization, itprimarily focuses on developing, managing and sustaining the skills and knowledge of its human

    resources, which should enable firms to get a long-term strategic advantage in the market.

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    7) Helps in Exploitation of Emerging Opportunities: It enables the firm to pre-empt itscompetitors by exploiting the emerging opportunities through a continuous scanning of the

    external environment.

    8) Develops a Base for Measurement: It makes it necessary to develop a quantifiable base formeasuring the efficacy of the various HR policies and practices.

    6. Policies are general statements that guide thinking and action in decision-making. Comment.What are the characteristics of good HR policy?Ans.policies are standing plans that provide guidelines for decision making. They are guides to thinking

    that establish the boundaries or limits within which decisions are to be made. Within these boundaries,

    judgment must be exercised. The degree of discretion permitted will vary from policy to policy.

    Policies perform several important functions in organizations. First and foremost, they simplify decision

    making. They delimit the area of search for possible alternatives and preclude the need for repeated, in-

    depth analysis of recurring, similar problems. Consequently, they promote efficiency in the utilization of

    managerial time.

    Policies also permit managers to delegate to subordinates more decisions and more important decisions

    than they would otherwise. Thus, if a manager establishes a policy governing a specific class of

    decisions, he or she will feel more comfortable delegating these decisions to subordinates because they

    will have set guidelines within which to make choices. The delegation of decision-making authority is

    important because it frees up managerial time for activities such as opportunity finding and planning that

    typically is put off. Finally, policies help secure consistency and equity in organizational decisions.

    Characteristics of Sound HRM Policy

    While developing sound personnel policies management should pay attention to the following things:

    1. Related to Objectives:Policies must be capable of relating objectives functions, physical factors and

    company personnel.

    2. Easy to Understand:Policies should be stated in define, positive, clear and understandable language.

    3. Precise:Policies should be sufficiently comprehensive and prescribe limits and yardsticks for future


    4. Stable as well as Flexible:Personnel policies should be stable enough assure people that there will

    not be drastic overnight changes. They should be flexible enough to keep the organization in tune with

    the times.

    5. Based on Facts:Personnel policies should be built on the basis of facts and sound judgment and not

    in personal feelings or opportunistic decision.

    6. Appropriate Number:There should be as many personnel policies as necessary to cover conditions

    that can be anticipated, but not so many policies as to become confusing or meaningless.

    7. Just, Fair and Equitable:Personnel policies should be just, fair and equitable to internal as well as

    external groups. For example, a policy of recruitment from within may limit opportunities to bright

    candidates from outside: and a policy of recruitment from outside only would limit promotiona

    avenue to promising internal candidates. To ensure justice, it is necessary to

    Pursue both the policies scrupulously and apply them carefully.

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    8. Reasonable: Personnel policies must be reasonable and capable of being accomplished. To gain

    acceptance and commitment from employees, the policy should be conditioned by the suggestions and

    reactions of those who are affected by the policy.

    9. Review:Periodic review of personnel policies is essential to keep in tune with changing times, and to

    avoid organizational complacency or managerial stagnation. For instance, if the current thinking is in

    favor of workers participation in management, the personnel policy should be suitably adjusted to

    accommodate the latest fad, accepted by many in the organization

    Personnel policies to be sound should also have broad coverage in addition to satisfying the aboveconditions. Hence, it would be appropriate to discuss the coverage of personnel policies here.

    7. Outline the factors affecting human resource planning.Ans. Factors Affecting HRP

    HRP is influenced by several considerations. The more important of them are:-

    Type and strategy of Organization:- The type of organization is an important consideration because it

    determines the production process involved, number and type of staff needed, and the supervisory and

    managerial personnel required. Manufacturing organizations are more complex in this respect than those

    that render services.

    1) Cycles and Planning: -The stage of an organizations growth can have considerable influenceon HRP. Need for planning is felt when the organization enters the growth stage. Internal

    development of people also begins to receive attention in order to keep up with the growth.

    2) Environmental Uncertainties: -HR managers rarely have the privilege of operating in a stableand predictable environment. Political, social and economic changes affect all organizations.

    Personnel planners deal with uncertainties by carefully formulating recruitment, selection, and

    training and development policies and programmes.

    3) Time Horizons: -Yet another major factor affecting personnel planning is the time horizon. Onone hand, there are short-term plans spanning six months to one year. On the other hand, thereare long-term plans which spread over three to twenty years. In general, the greater the

    uncertainty, the shorter the plans time horizon and vice versa.

    4) Type and quality of Information:- The information used to forecast personnel needs originatesfrom a multiple of sources. A major issue in personnel planning is the type of information which

    should be used in making forecasts.

    5) Nature of jobs being filled: -Personnel planners must consider the nature of jobs being filled inthe organization. Job vacancies arise because of separations, promotions and expansion


    6) Off-loading the work: - Several organizations off-load part of their work to outside partieseither in the form of sub-contracting or ancillarisation. Off-loading is a regular feature both in the

    public sector as well as in the private sector. Most organizations have surplus labour and they do

    not want to worsen the problem by hiring more people. Hence, the need for off-loading.

    8. Human resource planning is more than matching demand and supply gaps. Do you agree?Justify your answer.

    Ans.People are indeed the greatest assets to an organization; they are the foundation, but also one of the

    largest expenses. Thus it is critical that an organization ensures that these human assets are properly

    utilized before going ahead and hiring new staff. However, when you have hundreds of projects and

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    many employees, there is bound to be resource allocation inefficiency - right? Wrong. Resource

    inefficiency can be greatly reduced - if we make the right choice.

    In today's organizations, it is increasingly difficult to manually calculate an accurate demand and supply

    of human resources across the organization. This is because when there are complex organizational

    structures, matrix management and many projects, the visibility of the work and resources goes down. If

    you want to enable accurate human resource planning in order to maximize the utilization of your

    employees, then it is important that you implement a proper centralized system with the right processes.This means not just any old system, but one that will keep up with the pace of your dynamic

    organization and continuously track the supply and demand of human resources in order to support you

    bridge the inefficiency gap. When finding the right system for your human resource planning, the

    following steps are a must:

    Determine current and future Supply of human resources Determine current and future Demand of human resources Match Demand with Supply and determine the gap Create and implement plan to bridge the gap between Demand & Supply

    9. Explain the process of human resource planning in detail.HRP SYSTEM

    HRP System as such includes following elements or sets for planning.

    Overall Organization Objectives Business Environment Forecasting Manpower Needs Assessing Manpower Supply Matching Manpower Demand-Supply factors

    Based on these elements we can draw HRP System Architecture as under.

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    Business Environment

    Organization Objectives & Goals

    Manpower Forecast Manpower Supply Assessment

    Manpower Programming

    Manpower Implementation

    Control & Manpower


    Surplus Manpower Shortage of Manpower

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    Organizational Objectives & Policies: -

    The objectives of HR plan must be derived from organizational objectives like specific requirements of

    numbers and characteristics of employees etc. HRP needs to sub-serve the overall objectives by ensuring

    availability and utilization of human resources. Specific policies need to be formulated to address the

    following decisions.

    Internal Hiring or External Hiring Training & Development plans Union Constraints Job enrichment issues Rightsizing organization Automation needs Continuous availability of adaptive and flexible workforce

    Manpower Demand Forecasting: -

    It is the process of estimating the future quantity and quality of people required.

    The basis should be annual budget and long term corporate plans

    Demand forecasting should be based on following factors.

    Internal Factors: - Budget constraints Production levels New products and services Organizational structure Employee separation

    External Factors: -

    Competition environment Economic climate Laws and regulatory bodies Technology changes Social Factors

    Reasons for Manpower Demand Forecasting: - To quantify jobs To determine the Staff-mix To assess staffing levels and avoid unnecessary costs Prevent shortages of people Monitor compliances of legal requirements with regards to reservations

    Manpower Forecasting Techniques: -

    Management Judgment: In this technique managers across all the levels decide the forecast on theirown judgment. This can be bottom-up or top-down approach and judgments can be reviewed across

    departments, divisions and top management can conclude on final numbers of manpower required.

    Ration-Trend Analysis: This technique involves studying past ratios, and forecasting future ratiosmaking some allowance for changes in the organization or its methods.

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    Work Study Techniques: It is possible when work measurement to calculate the length of operationsand the amount of manpower required. The starting point can be production budget, followed by

    standard hours, output per hour; man-hours required etc could be computed.

    Delphi Techniques: This technique solicits estimates from a group of experts, and HRP expertsnormally act as intermediaries, summarizes various responses and report the findings back to experts.

    Flow Models: This technique involves the flow of following components. Determine the time required,Establish categories, Count annual movements, Estimate probable transitions. Here demand is a function

    of replacing those who make a transition.

    Manpower Supply Forecasting: This process measures the number of people likely to be

    available from within and outside the organization after making allowance for absenteeism, internal

    movements and promotions, wastages, changes in hours and other conditions of work.

    Reasons for Manpower Supply Forecasting:

    Clarify Staff-mixes exist in the future Assess existing staff levels Prevent shortages Monitor expected future compliance of legal requirements of job reservationsSources of Supply:

    Internal Supply: Internal supply techniques help to assess the following Inflows and outflows (transfers, promotions, separations, resignations, retirements etc.) Turnover rate (No. Of separations p.a. / Average employees p.a. X 100) Conditions of work (working hours, overtime, etc.) Absenteeism (leaves, absences) Productivity level Job movements (Job rotations or cross functional utilizations)

    External Supply: External sources are required for following reasons New blood, New experiences Replenish lost personnel Organizational growth Diversification

    External sources can be colleges and universities, consultants, competitors and unsolicited applications.

    HR Plan Implementation: A series of action programs are initiated as a part of HR plan

    implementation as under.


    Recruitment & Selection:Employees are hired against the job vacancies. Based on the manpowerdemand and supply forecasts made, hiring of employees is initiated based on supply forecasts. For this

    internal and external sources of manpower are utilized. A formal selection board is established to

    interview and select the best of the candidates for the required vacancies.

    ii. Training and Development: The training and development program is charted out to cover thenumber of trainees, existing staff etc. The programs also cover the identification of resource personnel

    for conducting development program, frequency of training and development programs and budget


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    iii. Retraining and Redeployment; New skills are to be imparted to existing staff when technologychanges or product line discontinued. Employees need to be redeployed to other departments where they

    could be gainfully employed.

    iv. Retention Plan: Retention plans cover actions, which would reduce avoidable separations ofemployees. Using compensation plans, performance appraisals, avoiding conflicts, providing green

    pastures etc, can do this.

    v. Downsizing plans: Where there is surplus workforce trimming of labor force will be necessary. Forthese identifying and managing redundancies is very essential.

    vi. Managerial Succession Planning; Methods of managerial succession plans may vary. Mostsuccessful programs seem to include top managements involvement and commitment, high-level review

    of succession plans, formal performance assessment and potential assessment and written development

    plans for individuals. A typical succession planning involves following activities.

    Analysis of demand for managers and professionals Audit of existing executives Projection of future likely supply from internal and external sources Individual career path planning Career counseling Accelerated promotions Performance related training and development Strategic recruitmentControl & Evaluation of HRP: HR Plan must also clarify responsibilities for control and establish

    reporting procedures, which will enable achievements to be monitored against the plan. The HR Plan shouldinclude budgets, targets and standards. These plans may simply be reports on the numbers employed

    recruited against targets etc.

    10.Explain the steps involved in job analysis.Ans.Stages in the Job Analysis Process

    The process of job analysis must be conducted in a logical manner, following appropriate managementand professional psychometric practices. Therefore, a multistage process usually is followed, regardless

    of the job analysis methods used. The stages for a typical job analysis are outlined here, but they may

    vary with the methods used and the number of jobs included. Figure illustrates the basic stages of the


    1) Collection of Factual Material:Collection of the factual information relating to job is the firststep in job analysis process. According to Terry "the make-up of a job, its relation to other jobs

    and its requirements for competent performance are essential information needed for a job

    evaluation." Two types of information are collected information regarding job such as its

    physical environment, its social environment, financial conditions etc. and (b) information

    relating to qualities of persons holding the job.

    2) Developing a Job-Description:The information collected is to be developed in the form of ajob description. Job description is a written statement that describes the main features of the job

    as well as the qualifications which the job incumbents must possess.

    3) Developing Job Specification:The next step is to convert the job description statements into jobspecifications. Job specification is a statement of minimum acceptable qualities of a job

    incumbent. It specifies the standard by which the qualities of the person are measured. Such

    statement is used in selecting a person matching with the job.

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    4) Preparation of Report:The job analyst prepares a report mentioning the analysis of variousactivities on the job and the qualities of the individual to be placed on the job. The report is

    revised in the light of the suggestions given by the supervisor or the personnel manager.

    5) Approval:The complete report is now submitted to the top executive for approval. The officebearers of the trade unions may also be taken into confidence before approving the report. The

    final report should be approved by the top executive who is responsible for making final decision

    on the matter.

    11.Describe the methods of collecting job analysis information. Also describe the various problems injob analysis.

    Ans.Methods:There are different methods used by organization to collect information and conduct the

    job analysis. These methods are

    1) Personal observation: -In this method the observer actually observes the concerned worker. Hemakes a list of all the duties performed by the worker and the qualities required to perform those

    duties based on the information collected, job analysis is prepared.

    2) Interview method: - In this method an interview of the employee is conducted. A group ofexperts conduct the interview. They ask questions about the job, skilled levels, and difficulty

    levels. They question and cross question and collect information and based on this information

    job analysis is prepared.

    3) Critical incident method: -In this method the employee is asked to write one or more criticalincident that has taken place on the job. The incident will give an idea about the problem, how it

    was handled, qualities required and difficulty levels etc. critical incident method gives an idea

    about the job and its importance. (A critical means important and incident means anything which

    takes place in the job).

    4) Questioner method: - In this method a questioner is provided to the employee and they areasked to answer the questions in it. The questions may be multiple choice questions or openended questions. The questions decide how exactly the job analysis will be done. The method is

    effective because people would think twice before putting anything in writing.

    5) Log records/Daily Diary:-Companies can ask employees to maintain log records or daily diaryand job analysis can be done on the basis of information collected from the record. A log record

    is a book in which employee records /writes all the activities performed by him on the job. The

    records are extensive as well as exhausted in nature and provide a fair idea about the duties and

    responsibilities in any job. In this method worker actually does the work himself and idea of the

    skill required, the difficulty level of the job, the efforts required can be known easily.

    6) HRD records: - Records of every employee are maintained by HR department. The recordcontain details about educational qualification, name of the job, number of years of experience

    duties handled, any mistakes committed in the past and actions taken, number of promotions

    received, area of work, core competency area, etc. based on these records job analysis can be


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    Problems in Job Analysis

    1) Lack of Management Support: The biggest problem arises when a job analyst does not get propersupport from the management. The top management needs to communicate it to the middle level

    managers and employees to enhance the output or productivity of the process. In case of improper

    communication, employees may take it in a wrong sense and start looking out for other available

    options. They may have a notion that this is being carried out to fire them or take any action against

    them. In order to avoid such circumstances, top management must effectively communicate the right

    message to their incumbents.


    Lack of Co-operation from Employees:If we talk about collecting authentic and accurate job-data, itis almost impossible to get real and genuine data without the support of employees. If they are not ready

    to co-operate, it is a sheer wastage of time, money and human effort to conduct job analysis process. The

    need is to take the workers in confidence and communicating that it is being done to solve their

    problems only.

    3) Inability to Identify the Need of Job Analysis:If the objectives and needs of job analysis process arenot properly identified, the whole exercise of investigation and carrying out research is futile. Managers

    must decide in advance why this process is being carried out, what its objectives are and what is to be

    done with the collected and recorded data.

    4) Biasness of Job Analyst: A balanced and unbiased approach is a necessity while carrying out theprocess of job analysis. To get real and genuine data, a job analyst must be impartial in his or herapproach. If it cant be avoided, it is better to outsource the process or hire a professional job analyst.

    5) Using Single Data Source:A job analyst needs to consider more than one source of data in order tocollect true information. Collecting data from a single source may result in inaccuracy and it therefore

    defeats the whole purpose of conducting the job analysis process.

    12.Discuss various techniques of job design. Explain the factors affecting job design.Ans. Techniques of Job Design

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    1) Work Simplification:Job is simplified or specialized. The job is broken down into small partsand each part is assigned to an individual. To be more specific, work simplification is

    mechanical pacing of work, repetitive work processes, working only on one part of a product,

    predetermining tools and techniques, restricting interaction amongst employees, few skills

    requirement. Work simplification is used when jobs are not specialized.

    2) Job Rotation:When incumbents become bore of routine jobs, job rotation is an answer to itHere jobs remain unchanged, but the incumbents shift from one job to another. On the positive

    side, it increases the intrinsic reward potential of a job because of different skills and abilitiesneeded to perform it. Workers become more competent in several jobs, know variety of jobs and

    improve the self-image, personal growth. Further the worker becomes more valuable to the

    organization. Periodic job changes can improve interdepartmental cooperation.

    3) Job Enlargement: It means expanding the number of tasks, or duties assigned to a given job.Job enlargement is naturally opposite to work simplification. Adding more tasks or duties to a

    job does not mean that new skills and abilities are needed. There is only horizontal expansion

    Benefits of Job Enlargement:

    Task Variety Meaningful Work Modules Full Ability Utilization Worker Paced Control Meaningful Performance Feedback

    Disadvantages of Job Enlargement:

    High Training Costs Redesigning existing work system required Productivity may not increase necessarily Workload increases Unions demand payhike Jobs may still remain boring and routine

    4) Job Enrichment: An enriched job will have more responsibility, more autonomy (verticalenrichment), and more variety of tasks (horizontal enrichment) and more growth opportunities

    The employee does more planning and controlling with less supervision but more self-

    evaluation. In other words, transferring some of the supervisors tasks to the employee and

    making his job enriched.

    5) Autonomous of Self-Directed Teams:Empowerment results in self-directed work teams. A selfdirected team is an intact group of employees responsible for whole work segment, they work

    together, handle day-to-day problems, plan and control, and are highly effective teams.

    6) High Performance Work Design: Improving performance in an environment where positiveand demanding goals are set leads to high performance work design. It starts from the principle

    of autonomous groups working and developing an approach, which enables group to work

    effectively together in situations where the rate of innovation is very high. Operational flexibility

    is important and there is the need for employees to gain and apply new skills quickly with

    minimum supervision. However due to bureaucracy high performance work design does not


    Factors Affecting Job Design

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    The guidelines influencing or factors affecting job design are depicted below.

    Proper scope of job:The scope of the job should be proper. If the scope is narrow (less), then the jobwill not be challenging. It will not give an opportunity for development. The manager will not get

    satisfaction after completing an easy job. If the scope of the job is very wide, then the manager will not

    be able to handle it properly. This will cause stress, frustration and loss of control. Therefore, scope of

    the job must be balanced and proper. Full-time challenge of the job:The job should be so challenging that it takes up the full-time and effort

    of the manager. So, the service of the manager must be fully utilized.

    Managerial skills: The skills of the manager should be considered before designing his job. Allmanagers do not have equal skills. So jobs should be designed after considering the skills of the


    Organizations requirements: Jobs must be designed according to the requirements of theorganization. We cannot use the same job design for all organizations.

    Individual likes and dislikes: People have different likes and dislikes. Some people like to work alonewhile some people prefer to work in groups. Some people want to do only planning and decision making

    while other people like to implement these plans and decision. So, individual likes and dislikes must be

    considered while designing the job.

    Organizational structure:Organizational structure also affects the job design. Individual jobs must fitinto the organizations structure.

    Technology: The level of technology used by the organization also affects the job design. Anorganization having a high level of technology will have different job designs compared to an

    organization having a low level of technology.

    13.Why is it important for manager to understand the concept of job design?

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    Ans. Why is job design important?

    Good job design increases the value of the position to the organization, engages the worker and reduces

    individual and organizational risk. It leads to greater organizational effectiveness and efficiency and

    better results from employees. Key benefits include:

    Organizational Benefits:

    i. Increased productivity and efficiencyii. Less need for close staff supervision, checking and control

    iii. More effective work teamsiv. Skilled, flexible, responsive and able workforce to meet work requirementsv. Targeted training to maximize value from training investment

    vi. Improved talent management and succession planningvii. Safer and healthier workplace

    viii. Improved employee attraction, engagement and retentionEmployee Benefits:

    i. Greater clarity of work role, purpose and accountabilitiesii. Shared understanding of work expectations with supervisor

    iii. Good team cohesion as roles, relationships and resources are clearly definediv. Varied work and challenges, opportunity to develop work skills, flexibility and experiencev. Targeted training to meet current and future job needs

    vi. Better career pathways and developmental opportunitiesvii. Safer and healthier workplace, Support for work/life balance

    viii. Increased job satisfaction and engagement14.Define job specification and distinguish it from job description.

    Ans. Job Description and SpecificationJob descriptionsdescribe the job and not the individual who fills the job. They are the result of job

    analysis within a given organization and are essential to the selection and evaluation of employees. Job

    advertisements or postings are based on the job description.

    The character of the organization is the basis for the description of positions. Information about the

    organization might include:

    Name of Company

    Main Product(s) and/or Service(s)


    Number of Employees

    Company Structure

    Names of Officers

    Hours of Work

    Job description:Job description is a written statement that defines the duties, relationships and results

    expected of anyone in the job. It is an overall view of what is to be done in the job. Typically it includes

    is a written statement that defines the duties, relationships and results expected of anyone in the job. It is

    an overall view of what is to be done in the job. Typically it includes

    Job Title


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    Title of immediate supervisor

    Statement of the Purpose of the Job

    Job Specifications: Job Specification involves listing of employee qualifications, skills and abilities

    required to meet the job description. These specifications are needed to do job satisfactorily. In other

    words it is a statement of minimum and acceptable human qualities necessary to perform job properly.

    Job specifications seeks to indicate what kind of persons may be expected to most closely approximate

    the role requirements and thus it is basically concerned with matters of selection, screening andplacement and is intended to serve as a guide in hiring.

    Degree of education Desirable amount of previous experience in similar work Specific Skills required Health Considerations

    15.Discuss the factors governing recruitment. Enumerate the steps involved in recruitment process.Ans. Factors Governing Recruitment:

    External Factors:Demand and Supply (Specific Skills)

    Unemployment Rate (Area-wise)

    Labor Market Conditions

    Political and Legal Environment (Reservations, Labor laws)


    Internal Factors:Recruitment Policy (Internal Hiring or External Hiring?)

    Human Resource Planning (Planning of resources required)

    Size of the Organization (Bigger the size lesser the recruitment problems)

    CostGrowth and Expansion Plans

    Recruitment Process: Recruitment is a process consisting of various activities.

    Evaluation and Control

    1) Recruitment Planning: Recruitment process starts with its planning which involves thedetermination of following:

    i. Number of Contacts: The organization has to plan about the number of applicants itshould receive in order to fulfill all its vacancies with right personnel.

    ii. Type of Contacts: This refer to the type of personnel to be informed about the jobopening based on job description and job specification.





    t Sources






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    2) Identifying Recruitment Sources: The second step is to identify the sources as it is a mediumof choosing candidates for the recruitment process.

    3) Contacting Sources: After the finalization of sources from where the prospective candidateswill be selected, the process of contacting these sources starts. Recruitment is a two-way street; it

    involves recruiter and recruitee.

    4) Application Pool: Whenever the method of recruitment is adopted, the ultimate objective is toattract as many candidates as possible o as to have flexibility in selection.

    5) Selection Process: Selection is the process of differentiating between applicants in order toidentify (and hire) those with a greater likelihood of success in a job.

    6) Evaluation and Control: Evaluation and control is essential to improve the efficiency of futurerecruitment efforts.

    16. Selectionis a negative process. Elucidate. Discuss the various steps in selection process.Ans. Selection is Negative:

    Selection is the process of picking up individuals (out of the pool of job applicants) with requisite

    qualifications and competence to fill jobs in the organization. A formal definition of Selection is asunder.

    Selection is a powerful force in evolution, and it works in many ways. In the end, however, selection

    constantly sorts through the variation that is produced by mutations to select the fit and remove the unfitwhile ignoring neutral changes. A few distinct types of selection are illustrated in Figure 1.

    Stabilizing selection keeps the population at one stable optimal value. Directional selection transforms the value of a trait by increasing the frequency of individuals closer to a

    distant optimum.

    Disruptive selection increases the frequency of large and small values of a trait at the expense ofintermediate values.

    Balancing selection selects the optimal compromise among several constraintsAt their core, all forms of selection involve individuals with inherited differences in fitness competingwithin the same population. This competition is about fitness as measured by survival rates, fecundity

    or some other trait that correlates with fitness. The "winner" of the competition is positively selected,

    and its genotype increases in frequency; on the other hand, the "loser" is negatively selected, and the

    frequency of its genotype decreases. Thus, negative selection and positive selection cannot be separated.To make communication easier, however, scientists talk about positive selection when the focus of a

    particular study is on an increase in rare variants that improve optimal fitness, and they speak of

    negative selection when the focus is on the removal of harmful variants.

    If negative selection is too weak to remove harmful mutations, then deleterious mutation accumulationwill occur, and a gradual decay of genomic integrity will be the result. This can lead to extinction for

    some species if it continues long enough; however, the resulting widespread existence of deleteriousmutations in such a genome will eventually also lead to the occurrence of back mutations, which (among

    many other factors) can significantly contribute toward maintenance of a reasonable level of integrity in

    the genome of other species in the long term.

    If negative selection is too strong for the whole population, extinction will occur, unless the population

    is rescued in time. Extinction can occur if the negative selection considered is "hard" selection, whichactually reduces the number of surviving offspring that are produced. "Soft" selection (which occurs

    when the reproductive capacity of an organism is high enough) can also be negative, but it will lead only

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    to competition over who will increase in frequency within the population, effectively without a

    reduction of the maximal number of offspring that can be produced. Thus, no extinction risk exists withsoft selection.


    1. Preliminary Interview: The purpose of preliminary interviews is basically to eliminate unqualifiedapplications based on information supplied in application forms. The basic objective is to reject misfits.

    On the other hands preliminary interviews is often called a courtesy interview and is a good publicrelations exercise.

    2. Selection Tests: Jobseekers who past the preliminary interviews are called for tests. There arevarious types of tests conducted depending upon the jobs and the company. These tests can be AptitudeTests, Personality Tests, and Ability Tests and are conducted to judge how well an individual can

    perform tasks related to the job. Besides this there are some other tests also like Interest Tests (activity

    preferences), Graphology Test (Handwriting), Medical Tests, Psychometric Tests etc.

    3. Employment Interview: The next step in selection is employment interview. Here interview is aformal and in-depth conversation between applicants acceptability. It is considered to be an excellent

    selection device. Interviews can be One-to-One, Panel Interview, or Sequential Interviews. Besides there

    can be Structured and Unstructured interviews, Behavioral Interviews, Stress Interviews.

    4. Reference & Background Checks: Reference checks and background checks are conducted toverify the information provided by the candidates. Reference checks can be through formal letters,telephone conversations. However it is merely a formality and selections decisions are seldom affected

    by it.

    5. Selection Decision: After obtaining all the information, the most critical step is the selectiondecision is to be made. The final decision has to be made out of applicants who have passed preliminary

    interviews, tests, final interviews and reference checks. The views of line managers are consideredgenerally because it is the line manager who is responsible for the performance of the new employee.

    6. Physical Examination: After the selection decision is made, the candidate is required to undergo aphysical fitness test. A job offer is often contingent upon the candidate passing the physica


    7. Job Offer: The next step in selection process is job offer to those applicants who have crossed all theprevious hurdles. It is made by way of letter of appointment.8. Contract of Employment: After the job offer is made and candidates accept the offer, certain

    documents need to be executed by the employer and the candidate. Here is a need to prepare a formal

    contract of employment, containing written contractual terms of employment etc.

    17.Describe the barriers related to selection. Also write a note on selection in Indian context.Ans.Barriers to Effective Selection: -

    i. Perception: We all perceive the world differently. Our limited perceptual ability is obviously astumbling block to the objective and rational selection of people.

    ii. Fairness:Barriers of fairness includes discrimination against religion, region, race or gender etc.iii. Validity:A test that has been validated can differentiate between the employees who can perform well

    and those who will not. However it does not predict the job success accurately.

    iv. Reliability:A reliable test may fail to predict job performance with precision.v. Pressure: Pressure brought on selectors by politicians, bureaucrats, relatives, friends and peers to

    select particular candidate are also barriers to selection.

    vi. Diversity of Selection Approaches: The diversity of selection approaches and tests indicatesthat there is no one perfect way to select managers.

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    Selection in Indian Context

    Conditions of labour market largely determine the selection process. As is well-known, there is a strange

    paradox in our country. There is large-scale unemployment juxtaposed with shortage of skilled labour

    Unemployment prevails among people who are unemployable individuals who have acquired

    university degrees but do not possess any specific skills. Matriculates, B.As, B.Coms and B.Scs fall

    into this category. All the evils associated with selection- corruption, favoritism and influence are

    found in hiring these people. Selection is, obviously, not systematic and at times bizarre too.

    Selection practices in hiring skilled and managerial personnel are fairly well-defined and systematicallypracticed. Particularly in hiring managerial personnel and executives, a lot of professionalism has come

    in, thanks to the realization that these individuals are difficult to come by and no effort is too excess to

    attract them. Specialist agencies are available whose services are retained for hiring technical and

    managerial personnel. Merit and not favouritism, objectivity and not subjectivity will be the criteria for

    such selections.

    Another trend observed is to attract and hire stars. Stars beget (lead to) stars is the belief. Monetary

    terms may not be attractive and there is a risk that the business might fail. But the stars join because they

    like to work with a charismatic leader.

    18.If employees are properly selected, there should be no need for an induction programme. Doyou agree or disagree. Justify your viewpoint.

    Ans: When a new employee joins a company, more often than not, there is a period of time that is

    required for a person to settle in to the new role before they are able to operate at full capacity. This is a

    common scenario when one is exposed to a new working environment and culture despite the

    credentials and competencies a new employee brings into the company. One reason however that

    precious time is wasted on unnecessary delays is the fact that some companies do not have induction

    programs or a process used within the business to welcome new employees and prepare them for their

    new role.

    A comprehensive and well-prepared induction program helps new staff quickly understand theresponsibilities of their new role and the employers expectation of them. Investing in such a program

    ensures that the learning curve is shorter, as not only are skills and knowledge of the company quickly

    obtained and understood, but interaction, communication and collaboration with others is likely to take

    place much quicker than if no program was outlined.

    As there are different kinds of employment, so induction programs also vary. For some this may include

    occupational, health, and safety training depending on the nature of the industry and the type of work

    environment. E.g hospitals, mining or manufacturing sectors may devote much of their induction

    program to this, whereas an office environment with less exposure to danger may not need to undertake

    as detailed training in this area, but spend the majority of the induction program on skill requirements,

    regulatory essentials, and company and client history.

    When investing in a good staff induction program, the rewards will be many to both the organization

    and the new employee. This process is important in providing an early introduction to the work

    environment, the outline of the role and setting up the employee so they can be functional and adding

    value to the organization in the quickest period of time.

    Orientating your new hire will mean that the terms of employment are clearing understood along with all

    other conditions around their employment, such as the legal and regulatory requirements for working in

    the organization as well as health and safety matters. From the employers perspective, an induction

    program forms part of a process that enables the new recruit to become immediately useful and

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    integrated into the team, rather than be thrown in the deep end without knowing and understanding

    how to do their job, or how their role fits within the rest of the organization.

    A well designed induction program can provide the company increased productivity in a shorter period

    of time than just waiting for the new employee to become acclimatized to the job. It may also lead to the

    reduction of short-term turnover of staff due to disorientation about what to do and what is expected of

    him or her.

    19.What are the benefits and problems associated with placement?Ans.Placement problems

    Placement is an important resource activity. If neglected, it may create employee adjustment problemsleading to absenteeism, turnover, accidents, poor performance, etc. the employee will also suffer

    seriously. He may quit the organization in frustration, complaining bitterly about everything.

    Proper placement is important to both employee as well as organization.Major benefits of proper placement

    Show good results on the job: Good placement enhance the morale of the candidate to give theirmaximum effort to the organization.

    Get along with people easily:In this people get involve with the others to make the good environmentand interact with them to learn more.

    Keep his spirits high, report for duty regularly: It helps to augment the dedication towards theorganization to achieve maximum result.

    Avoid mistakes and accidents: Proper placement carry to avoid the mistakes as they placed acompetent candidate in the organization.

    20.Discuss the typical orientation programme. State some important requisites for effective employeeorientation.


    Orientation or induction is the process of receiving and welcoming an employee when the first joins acompany and giving him/her the basic information he/she needs to settle down quickly and happily to

    start work.

    The purpose of orientation is to make the new entrant feel at home and develop a sense of pride in theorganization.

    Definition:Orientation is a systematic and planned introduction of employees to their jobs, their co-

    workers and the organization.

    Typical Orientation Programme

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    1) Planning an Induction Programme:Before the induction programme can be developed thisprocess normally takes between three to six monthsa number of planning considerations must

    be looked at. The following can be identified as key planning considerations:

    i. Induction policyii. Budget

    iii. Other planning consideration2) Designing an Induction Programme: It is important to note that the different groups of

    employees within the organization require different induction programmes. Separate inductionprogrammes should be designed to meet the needs of the different groups. For example

    induction that could be biased, inappropriate or infirming must be rectified immediately

    The induction programme should thus be designed to include all the information that the

    newcomer will need to do their job effectively and efficiently. The information the newcomer

    will require can be divided into two main categories:

    i. Job-Related Information:This information describes what the job entails and how it isdone.

    ii. General Information:This includes a great deal of information, such as fringe benefitssafety and accident prevention and physical facilities.

    3) Implementing an Induction programme: Induction can begin before the first day. Literaturesuch as company reports has a major influence on the manner in which a newcomer perceives the


    4) Evaluating an Induction programme:The evaluation of the induction programme is one of themost important steps in the process. Before developing an evaluation process, it needs to be clear

    about what to be evaluated. In evaluation training programme trainers can evaluate what the

    participants thought about the programme and about the trainers. Trainers can also found how

    much the participants have learned in the induction training.

    Requisites of Effective Orientation

    Requisites of effective orientation are as follows:

    1) Involvement of Top Management: Top management should take keen interest in theinduction process. It ensures a feeling of partnership and ownership in the minds of the new

    employee and helps him to integrate well to the organization.

    2) Prior Planning:Since induction is a process and not an event, therefore, prior planning forthe induction of the new employee must be carried-out carefully so that induction serves its

    purpose at the time of pre-during-, and post-induction stage.

    3) Assessment of Information Needs:Depending on the level and other factors, what the newemployee should know must be determined in advance to facilitate an effective learning

    experience during induction process.4) Feedback Session:All induction must end with a feedback session with line management

    and HR personnel so that doubts can be cleared and queries may be answered appropriately.

    5) Giving Knowledge to New Employees: Employees are given knowledge of whatsupervisors and co-workers like, telling how long it should take for them to reach an

    acceptable level of performance and encouraging them to seek help and advice when needed.

    6) Sufficient Time Should be Given to New Employees:New employees should be allowedsufficient time to adapt to a work situation before job demand is increased.

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    21.What could be basis/principles to identify the criteria for promotion? Outline their merits anddemerits.

    Ans. Principles/Basis of Promotion

    There are basically two bases of promotionmerit and seniority, but the paradox is that in any type of

    organization, some employees want that promotion should be based on merit while others want it on

    seniority basis. Basis of promotion are explained below:

    1. Promotion on Merit Basis:Merit is taken to denote an individual employees skill, knowledge,ability, efficiency and aptitude as measured from educational, training and past employmentrecord. This competence is measured by analyzing the employees present performance and

    his/her potential for promotion.

    Merits of Promotion on Merit Basis:

    When merit is adopted as a basis for promotion it yields following benefits:

    i. It ignites employees to show better performance continuously, as they feel that their meritwould be rewarded suitably.

    ii. It helps in attracting and retaining competent employees.iii. It works as a golden handcuff regarding employee turnover.iv. It continuously encourages the employees to acquire new skills, knowledge, etc., for their

    all round development.

    Demerits of Promotion on Merit Basis:

    Demerits of promotion on merit basis are as follows:

    i. The main difficulty in weighing merit in making promotion decisions is the lack of objectivecriteria. Traits, skills, attitudes, and other personality constructs that make up merit are

    frequently ambiguous.

    ii. Promotion on merit basis ignores the basic fact that a person matures with age and many of theemotional intelligence-related competencies increase with age.

    iii. Many people, particularly trade union leaders, distrust the managements integrity in judgingmerit.

    2. Promotion on Seniority Basis:Seniority refers to relative length of service in the same job andin the same organization. This system is also based on the custom that the first in should be given

    first chance in all benefits and privileges.

    Merits of Promotion on Seniority Basis:

    i. It is relatively easy to measure the length of service and judge the seniority.ii. There would be full support of the trade unions to this system.

    iii. Every party trust the managements action as there is no scope for favouritism anddiscrimination and judgement.

    iv. It gives a sense of certainty of getting promotion to every employee and of their turn ofpromotion.


    i. The assumption that the employees learn more relatively with length of service is notvalid as this assumption has reverse effect. In other words employees learn up to a certain

    age and beyond that stage the learning ability of the cognitive process diminishes.

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    To Promote Feeling of Content: To promote a feeling of content with the existingconditions of the company and a sense of belongingness. This helps in building loyalty and

    boosting morale of employees.

    To Promote Employees Interest:To promote interest in training, development programmesand in team development areas.

    To Reward Employees:To rewards employees for past performance, commitment, loyaltyand to encourage them to continue their efforts.

    To Help in Problem-Solving:To get rid of the problems created by the leaders of workersunions by promoting them to the officers levels where they are less effective in creating


    23.Discuss the various types of transfer. State the purpose/reasons and principles of transfer.Ans.Types of Transfer

    On the Basis Of Purposei. Production Transfer: When the transfers are being made for filling the position in such

    departments having lack of staff, from the departments having surplus manpower it is calledproduction transfer. It prevents the layoffs form the organization. Also it is good to adjust

    existing staff rather than to hire the new one.

    ii. Remedial Transfer: Remedial transfer refers to rectification of wrong selection or placement ofemployees. If the employee can adjust himself in the given job he can be transferred to the job

    where he can use his skills and abilities accordingly.

    iii. Versatility Transfer: Such transfers are done to increase the versatility in the employees so thathe can work different kind of jobs. This is done by transferring employee to different jobs

    closely related in same department or process line.. This is used as a training device. It helps

    employee to develop him and he is equipped for the high responsibility jobs as he is having

    knowledge of the whole process.iv. Shift Transfer: In many multi-shifts jobs such as Call centers employees are transferred from

    one shift to another due to their personal reasons like health problem or evening college for

    higher studies or any family problems.

    v. Replacement Transfersthese are transfers of long service employees to similar jobs in otherdepartments where they replace employees with shorter service. The object of these transfers is

    also to retain the efficient and trained employees as long as possible but in this process some

    short service employees may be thrown out of employment.

    vi. Precautionary Transferssuch transfers are made as a precautionary measure to avoid themisuse of office or misappropriation of funds by the employees.

    vii. Personnel Transfersthese transfers are made primarily to meet the personnel requests orneeds of the employees. If a worker is not satisfied with his present assignment or he wants a

    change in job or place on some other personal grounds, he may be allowed to move from one job

    to another.

    On the Basis Of Uniti. Sectional Transfersthese transfers are made within the department from one section to

    another. The main purpose of such transfers may be to train the workers and prepare them to

    handle the operations of the different sections of the department.

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    ii. Departmental Transfersthese are the transfers from one department to another departmentwithin the plant. They are decided by mutual consultations among the departmental heads.

    iii. Inter-plant Transfers if there are more than one plant under the control of samemanagement transfer may be made from one plant to another on varied reasons. Such transfers

    are called inter- plant transfers.

    Reason/Purpose of Transfer

    i. To meet the organizational requirements.ii. To meet Employees Requests.

    iii. To Ensure Better Utilization of the Employees.iv. To Make the Employees More Versatile.v. To Adjust the Workforce.

    vi. Departmental vacancies can be filled with transfer of employees from overstaffed department.vii. Employees can be transferred to the position or department with the higher priority workload.

    viii. To Provide Relief to the Employee.ix. To Reduce Conflicts and incompatibilities.x.

    To penalize the Employees.


    i. Transfer policy must be in writing and be made known to all the employees of the organization.ii. The policy must very clearly specify the types and the circumstances under which company

    initiated the transfer will be made.

    iii. Basis of the transfer should be clearly mentioned in the policy, whether it will be based seniorityor on the skill and the competency or any other factors.

    iv. It should indicate the executives who will be responsible for initiating and approving thetransfers.

    v. The policy should specify the region or unit of the organization within which transfers will beadministered.

    24.What do you mean by the term separation? Elaborate the several types of separation. Howretrenchment is being differed from lay-off?

    Ans. Separation

    The action or state of moving or being moved apart. It means termination of service with the organization for one or the other reason. The employees are separated from the payroll of the company.


    In the words of keith Davis,Separation is a decision that the individual and the organization should

    apart. Separations can be taken the following forms:


    Resignation:A resignation refers to the termination of employment at the instance of the

    employees. It may be of two types :

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    Voluntary resignation Compulsory resignation

    Dismissal or Discharge:Dismissal is the termination of the services of an employee as a

    punitive measure of some misconduct.

    Death:Some employees may be dying in service, when the death is caused by occupational

    hazards; the employees family gets the compensation as per the provision.

    Suspension:Suspension means prohibiting an employee from attending work and performsnormal duties assigned to him. This is a serious punishment which may lead the termination, ifthe charges against the suspended are proved.

    Retrenchment: Retrenchment, too, results in the separation of an employee from his employers

    .The principle in the procedure of retrenchment is that the last person employed in each category

    must be the first person to be retrenched.

    Layoff:It is the temporary separation of the employee from his employers.

    8 Major Differences between Lay-Off and Retrenchment are mentioned below:


    1.Section 2 (kkk) defines Lay-off.

    2. Lay-off is purely temporary.

    3. In lay-off, the employer is compelled to refuse employment under certain circumstances, viz. shortage

    of raw materials, power, finance, etc., which arise temporarily in the industry.

    4. Where the employer declares lay-off, the industry stops its function.

    5. In lay-off, all the employees or a group of employees are refused to employment.

    6. The Conditions Precedent is not necessary in case of lay-off.

    7.The laid-off employees are paid laid-off compensation. The payment of gratuity does not arise in lay-

    off.8.All of the laid-off employees should be taken back in their usual posts, as soonas the lay-off lifted out

    Retrenchment:1.Section 2 (oo) defines Retrenchment.

    2.Retrenchment is permanent. Of course, the re-appointment of retrenched persons is not bar at law.

    They may again be appointed in appropriate cases.

    3.In retrenchment, the employer lessens over burdened employees under circumstance s, viz.

    Government policies, loss in some departments, etc.

    4.While the process of retrenchment is going on, the industry does not stop its function.