Master of Business Administration- MBA Semester 1 MB0043 Human Resource Management - 4 Credits

Assignment Set- 2 (60 Marks)

Q. 1 Explain the elements of a career planning programme.

Answer: Increasingly, organisations have become more active in implementing employee growth programmes. Companies are designing employee growth programmes to increase employee productivity, control attrition, prevent job burnout and obsolescence, and improve the quality of employees work lives. HR departments of almost all large companies and most medium sized companies have taken a greater interest in employee development programmes. HR professionals have never before faced so many challenges in meeting the needs of individual employees and organisations in designing career systems. It is the employees responsibility to manage his or her own career, while it is the employers responsibility to provide employees with the tools and opportunities to enhance their skills. The end objective however remains, for the organisations to have a career-resilient workforce, one that has self reliant workers who are capable of reinventing themselves to keep up with the fast pace of organisational changes and fulfil their career aspirations, without feeling the need to move to another company in search of better career opportunities. What this essentially means can be summarised under the following key initiatives that are commonly practiced in organisations today: Career planning and development Promotions and internal job postings Succession planning Other talent management activities focused on employee growth While these activities are normally part of the core HR functions, often organisations (depending on the size of the organisations) might have a dedicated individual supported by a small team leading all of these activities and reporting to the Head of HR or even the CEO/MD. Career can be defined as a sequence of positions, roles or jobs held by one person over a relatively long time span and over his/her life-time. Managing career planning may include the following aspects: Career path: It is the sequential pattern of jobs that form a career. Career goals: They are the future positions that an individual strives to reach as part of a career. Career planning: It refers to the process by which an individual selects career goals and the path to these goals. The process whereby each employee personally plans careers goals is known as individual career. Planning and the process whereby the

organisation plans career goals for its employees is known as organisational career planning. ------------------

Following are the benefits of career planning to an organisation: Ensures availability of resources for the future: Career development in an organisation should be in alignment with the HRP. HRP determines the changing requirements of an organisation and career development helps in meeting the resource requirements. Enhances organisational ability to attract and retain talent: In a competitive market environment, talented employees have career opportunities. Therefore, an organisation that shows concern for the employees future by providing them the best opportunities can attract and retain talented people. Ensures growth opportunities for all: A comprehensive planning exercise by the organisation ensures growth opportunities for all the employees. Handles employee frustration: Todays workforce is more knowledgeable and has greater expectations. They desire more responsibility and greater challenges. A good career development programme can help in handling the expectations of the employees. Career management: is the process of designing and implementing goals, plans and strategies that enable HR professionals and managers to satisfy workforce needs and allow individuals to achieve their career objectives. Career development programmes help in the achievement of career objectives. Career anchors: It is attitudinal characteristics that guide people throughout their careers. Autonomy/Independence: Desire to have freedom and not to be bossed over. Security/Stability:Individuals who want to be free from any anxiety of uncertainty or insecurity prefer to remain in the same kind of job and with the same employer. Technical/Functional competence:-Those with a technical/functional competence exhibit a strong inclination to develop something which they can call their own, e.g., engineers, scientists, technologists etc. General management: Have good planning, organising, managing and controlling skills. They have a broader view of things and play a facilitating role. Entrepreneurial creativity: Individuals with creativity as an anchor are more often successful as artists, free lancers, entrepreneurs. Service: Service as a career anchor drives individuals to take up jobs in not for profit service organisations. Pure challenge: People who just love to solve difficult problems. Life-style: For some people, nothing is more important than enjoying life. They have a disinclination to sacrifice life-style solely for career advancement.

Elements of a Career Planning Programme In the previous section, we discussed how to manage career planning. Let us now study the elements of a career planning programme. There are four distinct elements of career planning programme:
Individual assessment and need analysis Organisational assessment and opportunity analysis Need opportunity alignment Career counselling

Individual assessment and need analysis Many people begin their careers without any formal assessment of their abilities, interests, career needs and goals.This phenomenon of people entering their jobs, occupations and careers with little attention to career planning and then feeling disengaged is known as career drift. Organisational assessment and opportunity analysis For an employees goals and aspirations to be fulfilled, a basic requirement is that the goals must be realistic and achievable. They have to be realistic not only in terms of the employees own capabilities, but also in terms of the organisations possibilities. Need opportunity alignment The organisation plays an important role in helping the employee make this alignment. The organisation also has to make its own alignments to match the aspirations with the organisational opportunities. Career counselling This is the final stage of career planning. The supervisor as well as the HR department, has to counsel the employee regarding the available opportunities, the employees aspirations and of course, his competencies.

Q. 2

Explain the application of HRIS in human resource management.

Answer:

Applications of HRIS in Human Resource Management In the previous section, we discussed the types of HRIS. Let us now discuss the applications of HRIS in HRM. HR needs to handle many things in an organisation including increasing numbers of employees and different HR activities. It became important for many organisations to bring almost all HR activities under HRIS. Different applications of an HRIS are as follow:
Applicant tracking system Many organisations are now gradually adopting and installing applicant tracking system software. The purpose of this system is to give support to recruitment process and to streamline the overall recruitment process. Training and development system The purpose of a training and development system is to help the employees gain new knowledge. HRIS facilitates workplace e-learning by the employees as part of their training programme. Compensation management system The compensation management system aims at computing employee payments through an integrated payroll system. This compensation system normally considers employee working hours, attendance and productivity for computing the salary of the employees. Performance management system The main goal of the performance management system is to track employee performance reviews and due dates for next reviews. Manpower planning system The manpower planning system manages the employee inventory and supports several HR activities. Succession planning system The succession planning module brings the identified and selected employees into the succession channel. Grievance management system The grievance management assists the management in pre-empting employee grievance by analysing the nature, sources and frequency of earlier grievances.

Q. 3. What are the factors that affect recruitment? Answer:

Factors Affecting Recruitment In the previous section, we discussed the concepts of recruitment. Let us now study the various factors affecting recruitment. There are many factors that affect the recruitment programme. These factors can be classified as organisational or internal factors, and environmental or external factors. Organisational factors include the following:
Reputation of the organisation-an organisational reputation depends on its size, area of business, profitability, management, etc. The organisational culture and the attitude of its management towards employees. Geographical location of the vacant position as potential candidates might not be eager to work in a remote place unless they belong to that place. The amount of resources allocated. The channels and methods used to advertise the vacancy. The salary that the company offers also influences the decision of a candidate. Environmental factors includes the following: The situation in the labour market, the demand for manpower, the demographics, the knowledge and skill sets available. Stage of development of the industry to which the organisation belongs. Culture, social attitudes and beliefs also impact on recruitment. Law of the land and the legal implication.

Q. 4 Write a short note on minimum wage, fair wage and living wage
Answer: Wages are commonly understood as price of labour. In ordinary parlance, any remuneration paid for services is etymological wage. Benham defines wage as a sum of money paid under contract by an employer to a worker for services rendered. Labour was always looked upon as a commodity governed by the law of supply and demand. Certain theories were propounded for determination of wages but these could not stand the test of time. A few theories are discussed below: Subsistence theory: This theory, also known as 'Iron Law of Wages', was propounded by David Ricardo (1772-1823). According to this theory, wages tend to settle at a level just sufficient to maintain the workers and their families at minimum subsistence levels. The theory applies only to backward countries where labourers are extremely poor and are unable to get their share from the employers. Standard of living theory: This theory is a modified form of subsistence theory. According to this theory, wages are determined not by subsistence level but also by the standard of living to which a class of labourers become habituated. Residual claimant theory: Francis A. Walker (1840-1897) propounded this theory. According to him, there were four factors of production/business activity i.e., land, labour, capital and entrepreneurship. Wages represent the amount of value created in the production which remains after payment has been made for all these factors of production. In other words, labour is the residual claimant. The wage fund theory: According to this theory, after rent and raw materials are paid for, a definite amount remains for labour. The total wage fund and the number of workers determine the average worker's share in the form of wages. Demand and supply theory: According to this theory, wages depend upon the demand and supply of labour. Marginal productivity theory: This is an improved form of demand and supply theory. Wages are determined by the value of the net product of the marginal unit of labour employed. Purchasing power theory: According to this theory the prosperity, productivity and progress of an industry depend on the presence of sufficient demand to ensure the sale of its products and pocketing of reasonable profits. A large part of the products of industry is consumed by workers and their families, and if wages are high, demand will be good. However, if wages and the purchasing power of the workers are low, some of the goods will remain unsold, output will go down, which will result in unemployment. Bargaining theory of wages: John Davidson propounded this theory. According to him, wages are determined by the relative bargaining power of workers or trade unions and of employers. When a trade union is involved, basic wages, fringe benefits, job differentials and individual differences tend to be determined by the relative strength of the organisation and the trade union.

Classification of wages The International Labour Organisation (ILO) in one of its publications, classified wages as under: 1. The amount necessary for mere subsistence. 2. The amount necessary for health and decency. 3. The amount necessary to provide a standard of comfort. In India, wages are classified as below: 1. Minimum wage: 2. Fair wage 3. Living wage Minimum wage: Minimum wage has been defined by the Committee as "the wage which must provide not only for the bare sustenance of life, but for the preservation of the efficiency of the worker. For this purpose, the minimum wage must provide for some measure of education, medical requirements and amenities." In other words, a minimum wage should provide for the sustenance of the worker's family, for his efficiency, for the education of his family members, for their medical care and for some amenities. It is very difficult to determine the minimum wage because conditions vary from place to place, industry to industry and from worker to worker. However, the principles for determining minimum wages were evolved by the Government and have been incorporated in the Minimum Wages Act, 1948, the important principle being that minimum wages should provide not only for the bare sustenance of life but also for the preservation of the efficiency of the workers by way of education, medical care and other amenities. Fair wage: According to the Committee on Fair Wages, "Fair wage is the wage which is above the minimum wage but below the living wage." The lower limit of the fair wage is obviously the minimum wage, the upper limit is set by the "capacity of the industry to pay". Between these two limits, the actual wages should depend on considerations of such factors as: The productivity of labour. The prevailing rates of wages in the same or neighbouring localities. The level of the national income and its distribution. The place of industry in the economy. Living wage: Living wage was recommended by the Committee as a fair wage and as ultimate goal in a wage policy. It defined Living Wage as "one which should enable the earner to provide for himself and his family not only the bare essentials of food, clothing and shelter but a measure of frugal comfort, including education for his children, protection against ill health, requirements of essential social needs and a measure of insurance against the more important misfortunes including old age." In other words, a living wage was to provide for a standard of living that would ensure good health for the worker and his family as well as a measure of decency, comfort, education for his children, and protection against misfortunes. Generally, ascertaining wages and deciding who to pay what, is an activity undertaken in the beginning when an organisation is set up. Thereafter, it is annually reviewed to make corrections per the countrys economic and market/industry trends. The management

considers the state of the labour market and takes into account of what the worker can afford to pay and the value of the worker. The workers willingness for employment at the rate offered implies that they agree to work at that rate, though they have had no part in fixing it.

Q. 5

List the advantages and limitations of job evaluation.

Answer:

Advantages and Limitations of Job Evaluation In the previous section, we discussed the different techniques of job evaluation. Let us now discuss the advantages and limitations of job evaluation. The advantages of job evaluation are:
1. Job evaluation is a logical and an objective method of ranking jobs relative to each other. It may thus help in removing inequities in existing wage structures and in maintaining sound and consistent wage differences in a plant or an industry. 2. The method replaces accidental factors occurring in less systematic procedures of wage bargaining by more impersonal and objective standards, thus establishing a clearer basis for negotiation. 3. The method may lead to greater uniformity in wage rates and simplify the process of wage administration. 4. Information collected in a process of job description and analysis can be used for improvement of selection, training, transfer and promotion, procedures on the basis of the comparative job requirement. The limitations of job evaluation are: 1. Methods of job evaluation are not considered to be completely objective as some amount of subjectivity is involved in the selection of benchmarking jobs and key compensable factors. 2. External factors of jobs are not considered in job evaluation. It would be difficult to fix anything less than the prevailing wages even if job evaluation recommends so. 3. Due to the faster pace of changes in the external factors such as technology and labour market characteristics, job characteristics requirements undergo changes in quick succession. This makes job evolution results relevant for a short period only. 4. The determination of employee compensation is often influenced by the bargaining power of the employees and their unions. However, the job evaluation process never considers this factor while deciding the pay scale for jobs. 5. Since job evaluation is a time consuming, complex and costly process, small and medium organisations give minimum importance on pay scale fixing.

Q. 6 Mr.Ajit Sakarkar is the HR Manager of a BPO. He feels that the organisation must provide
flexi timing for the employees as an HR initiative. What are benefits that you feel Mr.Ajits initiative will bring to the organisation and to the employees? Answer:

Flexi time Flexi time is a scheme where an organisation gives its employees the opportunity of a flexible working hours arrangement. Under flexi time, there is normally a core period of the day when employees must be at work (e.g., between 10 A.M. and 4 P.M.), whilst the rest of the working day is "flexi time", in which the staff can choose when they work, subject to achieving total daily, weekly or monthly hours. An employee must work between the basic core hours and has the flexibility to clock in/out between the other hours. An example of a typical flexi time day is below:
Begin work between 0700 1000 (flexitime) Must be there between 1000 1200 (core time) Lunch break between 1200 1400 (flexible lunch hour) Must be there from 1400 1600 (core time) Leave between 1600 1900 (flexitime)

The hours employees work between these times are credited to their flexi time balance. For example, if the employees work a 35-hour week, then, over four weeks, they will be obliged to work for 140 hours. If they work more than the required hours in those four weeks then they will be in credit. If they have enough flexi time credit they can turn that into time off, and this is one of the best liked features. This could be one or maybe 2 days a month depending on their scheme. Benefits of flexi time Utilising a flexi time policy in an organisation can benefit everyone involved employers, employees and their families. Benefits to an organisation Introducing flexible working hours could bring the following benefits in a business:
Greater staff morale and job satisfaction. Most employers offering flexi time working report

improvements in recruitment, reduced absenteeism and productivity.

Reduces stress and fatigue, and unfocussed employees. Increases employee satisfaction and production. Greater staff retention and increased ability to attract new staff. Recruitment costs are

thus reduced.
Ability to attract a higher level of skills because the business is able to attract and retain a

skilled and more diverse workforce.

 Work time visits to doctor/dentist are in employees time. Measures employees attendance you only pay for the time in attendance (delayed

arrival caused by traffic congestion, delayed trains etc. are at employees expense).
An incentive to complete the tasks the same day, instead of being carried forward to the

next day, since extra hours worked count towards the final target. Greater competitiveness, for example, being able to react more effectively to changing market conditions.
Increased customer satisfaction and loyalty as a result of the above.

Benefits to employees
Increased opportunity to fit other commitments and activities with work, and make better

use of their free time.

Better control of their workloads and manage a better balance between life and work.

Allows the employees to schedule their travel; time to avoid congestion.

Allows employees bank time to be used for leisure/personal activities. Avoid the stress of commuting at peak times if their start and finish times are staggered or if they

work from home.

Personal matters can be sorted without having to take time off. Helpful for people caring for children or other dependants, others also may find flexible

working helpful too. Disadvantages of flexi time If the scheme is not monitored properly, there is potential for employees to abuse the system. For example, if the time is recorded on paper or spreadsheets by staff they can easily fabricate their time. Administration of the system may make demands upon a HR department and create additional workload.