Q1. Elaborate each step in the recruitment & selection process.

Choose the position/designation, now design a

structured interview questionnaire that you would ask candidates as an interviewer

Recruitment:

In simple terms, recruitment is understood as the process of searching for and obtaining applicants for jobs, from among
whom the right people can be selected. Theoretically, recruitment process is said to end with the receipt of applications,
in practice the activity extends to the screening of applications so as to eliminate those who are not qualified for the job.

Selection:

Selection is the process of differentiating between applicants to identify & hire those with a greater likelihood of success
in the job.

Factors influencing recruitment

Internal Forces - Recruitment policy, HR Planning, Size of the company, Cost, Growth & expansion

External Forces - Supply & Demand, Unemployment rate, Labor market, Political-legal, Sons of soil, Image

Recruitment & selection process

Plan & Strategy - This is the first stage in recruitment process. Recruitment plan must specify: Number and (ii) Type of
applicants to be contacted Yield Ratio:

Offer Acceptance (20) Candidates

Job Offer (30) Candidates

Invited for final interview (40) Candidates

Screening (200) Candidates

Initial Contacts (2000) Candidates

2 Sourcing - Sources of recruitment:

Internal Sources Present Employees: Promotions & internal job posting, Employee Referrals, Buddy Get Buddy, Former
Employees, Previous Applicants.

Advantages - Less costly, Already oriented to the organization, Organizations have better knowledge about them,
Enhances morale & motivation, Good performance is rewarded.

Disadvantages - Perpetuates old concepts of doing things, May prevent poaching, Current work maybe affected, Politics
play greater role, Morale issue for those not promoted.

External Sources - Media Advertisement, Employment Exchange, Direct Recruitment, Casual Callers, Educational
Institutions or Campus Placement, Labor Contractors Walk-Ins, E-recruiting, Management Consultants.

Advantages - Benefits of new skills, new talent & experience to organization, Scope of jealousy, heartburns are avoided.

Disadvantages - Lesser/negative morale amongst current employees may arise, Expensive, Chances of errors,
Adjustment of new employee takes longer time.

3 Screening - This is also called first step in selection process. Purpose of screening is to remove those candidates who
are visibly unqualified for the job. Effective screening can save huge time & money. This is to be done carefully so as
good candidates are not filtered out of the process. In screening clear job specifications are invaluable – as candidates
are judged on basis of their knowledge, skills, abilities, qualification, location, interests to do a job.

4 Interview Evaluation – First round OR HR round: Preliminary interview – basic filters

Second round OR Selection Tests

Third round OR Final Interview

First round OR HR round: Preliminary interview – scrutiny of basic filters to eliminate unqualified applicants and misfits
that didn’t appear in the application form. This can be a good public relations exercise.

Second round OR Selection Tests: Job seekers or candidates who pass screening & preliminary interview are called for
tests. Different types of tests are conducted depending on type of job & the organization.

Ability test: How well an individual can perform tasks related to the job.

Aptitude test: Potential to learn in given area & capability to develop

Personality test: To understand motivation to function in a particular working department

Third round OR Final Interview: An interview is formal, in depth conversation conducted to evaluate applicant’s
acceptability. It is an excellent selection method. Interview is flexible & can be conducted for skilled, semi skilled &
unskilled applicants. It allows two way exchange of information.

Interviews could be:

(i) One to one interview (ii) Sequential interview (iii) Panel interview
5 Selection & Offer

Documentation

Salary & Notice Period Negotiation

Reference Check

Dispatch Offer Letter

Q2. Elaborate on inducting new hires & the purpose & contents of orientation.

Definition 1: Induction & Orientation is designed to provide a new employee with the information he or she needs to
function comfortably and effectively in the organization. It is a planned introduction of new hires to their jobs, their
peers and the company.

Definition 2: Orientation is a systematic and planned introduction of employees to their jobs, their co-workers and the
organization.

Typically, orientation conveys three types of information:

1. A review of the firm's history, founding fathers, objectives, operations and products or services, as well as how
the employee's job contributes to the organization's needs

2. A detailed presentation, perhaps, a brochure, of the organization's policies, work rules and employee benefits

3. General information about the daily work routine

Purpose of Orientation

• Firms are known to spend a few weeks or even months on orientation programs. The idea is to make the new
employees feel “at home” in the new environment. It is a well-known fact that employees feel anxious on
entering a new organization. They worry about how well they will perform on the new jobs. They feel
inadequate when they compare themselves with the more experienced employees, and they are concerned
about how well they will get along with their co-workers.

• Effective orientation programs reduce the anxiety new employees by providing them information on the job
environment and on supervisors, by introducing them to co-workers and by encouraging them to ask questions.

• The ease with which employees adjust to a new job and work environment is often a function of expectations
they bring to the job.

• If expectations are realistic, adjustments will be relatively simple.

• However, expectations are unrealistic or unreasonable, adjustment will be more difficult.

In the second case, an orientation can be instrumental in modifying employee expectations.

Examples- Joining forms & its contents, E-on boarding process followed at few organizations, Concept Employee Ageing
& its practical implementation

Contents of orientation program

Organizational Aspects

History of employer, Names and titles of key executives, Employee's title and department, Layout of physical facilities,
Attendance & Salary cycle, Probationary period, Company policies and rules Disciplinary regulations, Employee
handbook, Safety procedure and enforcement, Product line or services provided, Overview of production process.
Employee Benefits

Pay scale and pay days, Vacations and holidays, Rest breaks, Training and education benefit, Insurance benefits,
Retirement program, Employer-provided services to employees, Other policies.

Introduction

To Supervisor, To trainers, To co workers, To employee counsellor

Job Duties

Job Location, Job tasks, Job Objectives, Overview of job, Job safety requirements, Relationship to other jobs

Inducting & placing new hires Case Study - Naik, AGM threw the resignation letter on Kamath, GM table

Naik had quit the prestigious SAIL plant at Vishakhapatnam.As a manager materials, Naik enjoyed powers-he could even

place an order for materials worth Rs 25 lakh needed nobody's prior approval. Naik joined a pulp-making plant, Naik
realize that he needed approval to place an order for materials worth Rs 12 lakh. He placed the order, materials arrived,
were received, accepted and used up in the plant. The accounts department withheld payment for the reason that the
bill was not endorsed by Kamath. Kamath refused to sign on the bill as his approval was not taken by Naik before placing
the order.
Q3. What is HRM & its functions?

Case Study:- Anant Dalvi and Akhtar Khan Vs Tata Electric Company

Human Resource Management is a function within an organization which focuses mainly on the recruitment of,
management of, and providing guidelines to the manpower in a company. It is a function of the company or organization
which deals with concerns that are related to the staff of the company in terms of hiring, compensation, performance,
safety, wellness, benefits, motivation and training.

Simple statement: HRM refers to the application of management principles to “dooables” & “deliverables” for the
management of people in an organization.

Human Resource Management is also a premeditated approach to manage people and the work culture. An efficient
human resource management enables the workforce of an organization to contribute efficiently and effectively towards
the overall achievement of a company’s goals and objectives.

The traditional method of human resource management involved planned exploitation of staffs. This new function of
human resource management involves HRM Metrics and measurements and strategic direction to display value. Under
the influence of giving away the traditional method, HRM has got a new terminology called Talent Management.
Human Resource Management functions can be of three types like Operative, Managerial, and advisory. Let’s see them
one by one.

Functions of Human Resource Management

☆ Operative Functions

Recruitment: This is the most challenging task for any HR manager. A lot of attention and resources are required to
draw, employ and hold the prospective employees. A lot of elements go into this function of recruitment, like
developing a job description, publishing the job posting, sourcing the prospective candidates, interviewing, salary
negotiations and making the job offer.

Training and Development: On the job training is the responsibility of the HR department. Fresher training may also be
provided by some companies for both new hires and existing employees. This Fresher training is mainly done to make
the employees up to date in their respective areas as required by the company. This function makes the employees
understand the process and makes it easy for them to get on their jobs with much ease. During the process of the
training and development, the results are monitored and measured to find out if the employees require any new skills in
addition to what he/she has.

Professional Development: This is a very important function of Human Resource Management. This function helps the
employees with opportunity for growth, education, and management training. The organization undertakes to sponsor
their employees for various seminars, trade shows, and corporal responsibilities. This, in turn, makes the employees feel
that they have been taken care by their superiors and also the organization.

Compensation and Benefits: A company can attain its goals and objectives if it can acclimatize to new ways of providing
benefits to the employees. Some of the benefits given by companies are listed below for our understanding:

Working hour flexibility

Extended vacation

Dental/Medical Insurance

Maternal/Paternal Leave

Education Reimbursement for children

Performance Appraisal: The employees of any organization will be evaluated by the HR department as per the
performance. This function of Human Resource Management is to help the organization in finding out if the employee
they have hired is moving towards the goals and objectives of the organization. On the other hand, it also helps the
company to evaluate whether the employees needs improvement in other areas. It also helps the HR team in drawing
certain development plans for those employees who have not met the minimal requirements of the job.

Ensuring Legal Compliance: To protect the organization this function plays a crucial role. The HR department of every
organization should be aware of all the laws and policies that relate to employment, working conditions, working hours,
overtime, minimum wage, tax allowances etc. Compliance with such laws is very much required for the existence of an
organization.

☆ Managerial Functions

Planning: This function is very vital to set goals and objectives of an organization. The policies and procedures are laid
down to achieve these goals. When it comes to planning the first thing is to foresee vacancies, set the job requirements
and decide the recruitment sources. For every job group, a demand and supply forecast is to be made, this requires an
HR manager to be aware of both job market and strategic goals of the company. Shortage versus the excess of
employees for that given job category is determined for a given period. In the end, a plan is ascertained to eliminate this
shortage of employees.
Organizing: The next major managerial function is to develop and design the structure of the organization. It
fundamentally includes the following:

Employees are grouped into positions or activities they will be performing.

Allocate different functions to different persons.

Delegate authority as per the tasks and responsibilities that are assigned.

Directing: This function is preordained to inspire and direct the employees to achieve the goals. This can be attained by
having in place a proper planning of career of employees, various motivational methods and having friendly relations
with the manpower. This is a great challenge to any HR manager of an organization; he/she should have the capability of
finding employee needs and ways to satisfy them. Motivation will be a continuous process here as new needs may come
forward as the old ones get fulfilled.

Controlling: This is concerned with the apprehension of activities as per plans, which was formulated on the basis of
goals of the company. The controlling function ends the cycle and again prompts for planning. Here the HR Manager
makes an examination of outcome achieved with the standards that were set in the planning stage to see if there are
any deviations from the set standards. Hence any deviation can be corrected on the next cycle.

☆ Advisory Functions

Top Management Advice: HR Manager is a specialist in Human Resource Management functions. She/he can advise the
top management in formulating policies and procedures. He/she can also recommend the top management for the
appraisal of manpower which they feel apt. This function also involves advice regarding maintaining high-quality human
relations and far above the ground employee morale.

Departmental Head advice: Under this function, he/she advises the heads of various departments on policies related to
job design, job description, recruitment, selection, appraisals.

)Planning: Forecasting future HR needs in light of organization’s environment, strategies, internal strengths &
weaknesses, structure, culture, technologies & leadership.

Staffing/Talent Acquisition: Obtaining people with appropriate skills, abilities, knowledge & experience to fill jobs in the
organization. Job Analysis, recruitment & selection.

Developing: Analyzing learning requirements to ensure that employee possess the knowledge & skills to perform well in
their jobs & advance within the organization. Performance appraisal identifies key skills & performances.

Monitoring: The design & administration of reward systems. HR practices job evaluation, performance appraisal, pay &
benefits.

Managing: Office & Relationships: Maintain workplace safety, health, welfare policies to retain a competent workforce &
comply with statutory compliances.
Maintaining relationships with all the stakeholders for smooth operations of all tasks like contracts, unions etc.

Managing change: Helping others to envision future, communicating this vision, setting clear expectations for
performance, reorganizing people & other resources.

Evaluating: Designing the procedures & processes that measure of value added HR practices)

Q4. What are the Internal & External Forces of HRM

External Forces

1. Political-Legal:
There are three institute which constitute total political environment:

- Legislature: Parliament – Law making body

- Executive: Government: law implementing body

- Judiciary: Role of a watchdog – both legislature & executives work within confines of Constitution & public interest

“Labor Laws” are major influencers in political environment

Eg: Equal opportunity in the matter of public employment Prohibits employment of children in factories, mines & other
hazardous jobs, Equal pay for equal work for men & women, Maternity leaves, insurance, ESIC, PF, Pension etc

All HR activities are affected in one way or the other by laws (political-legal)

2. Economic:

All economic forces that have impact on business & HR

Agriculture, industrial production, population, industrial labor etc

Suppliers: kind of people hired in an organization depends on suppliers (recruiters)

Competitors: As the number of organizations competing for “human resources” is increases, so does the importance of
staffing function & its appraisal & compensation activities

3. Technological:

Skill building: When new technology is adopted then employees need to be trained in the ways of handling operations &
machines HRIS, job searching etc

4. Cultural:

Culture refers to complex whole which includes knowledge, belief, art, morals, laws, customs & other capabilities &
habits acquired by an individual as a member of a society.

When people with different cultural backgrounds promote, own & manage organizations they themselves tend to
acquire different cultures.

It is considered that attitude of workers towards work is a result of their cultural background. In this respect Indians
score over others. For Indians, work is not means of living – it is equated with God. A rickshaw puller, bus driver,
shopkeeper often close their eyes & pray in the worship of God for a few seconds before starting their work. For them
the occupation not only gives livelihood but gives them status & standard of living. They equate their welfare with the
prosperity of their organizations.

Internal Forces

1. Strategy, Task & Leadership:

Strategy indicates the direction in which organization moves. Eg. Infosys

Some organizations believe that long term success is more important and towards this objective they issue more human
resources in terms of employee training, safety, security, welfare & harmonious industry relations.

It is the leader who matters in any functional area of business. HRM is no exception. Leader must plan & coordinate
distinctive skills, experience, personalities & motives of employee. Leader must also facilitates interactions that occur
within the work group. The leader is an important source of knowledge about the tasks, the organization, the HRM
policies, programs & goals

2. Unions:
A trade union maybe understood as an association of workers or management formed to protect their own individual
interest. Some organizations have single trade union whereas on other hand some have multiple unions. Eg. Bokaro
Steel Plant has more than 50 unions. Also there are organizations like Jindal Aluminium & Khoday Distelleries that have
single union. Hindalco does not have any unions as is the case with most new economy firms like WIPRO & Infosys.

3. Organizational Culture & Conflicts:

Every organization has its own culture. It is the job of HR Specialists to adjust proactively to the culture of the
organization. Eg. Objectives can be achieved in several acceptable ways means there are multiple paths to reach
objectives. The key to success is picking the path that best fits organization’s culture.

Few Examples: Get the best people & set them free – JRD Tata

L&T: professional approach; Reliance Industries: Competitive spirit is imbibed in every executive & employee; IBM: its
service; GE: Product innovation

There is often conflict between organizational culture & employee’s attitudes. Conflict arises due the following dualities:

Q5. Explain nature & importance of HR Planning

Case Study

It was late 1990s, a reputed South Indian University appointed 200 people on temporary basis all in administration

typically called non-teaching. The university already had surplus of these employees who together have been eating

away 22 percent of the annual budget allocations. the university made a decision to regularize the services of the
provisional employees as and when vacancies arise- vacancies arising on retirement or death of permanent staff. Right
now, there are 50 of such vacancies and these would be filled up soon. This would cost the university an extra
expenditure of Rs. 30 lakh per annum. When the remaining are also regularized the extra drain on the university
exchequer would be Rs. 1.2 crores per annum.

In simple words HRP is understood as the process of forecasting an organization’s demand & supply of the right type of
people in the right number. It is only after this that HR department can initiate the recruitment process.

Cost of HR is wide aspect & not just the salary cost.

HRP is a sub system in total organizational planning. Organizational planning includes managerial activities that set
company’s objectives & determines the appropriate means for achieving those objectives.

HRP is an integrated part of Strategic Management & can be called Strategic Manpower Planning or Employment
Planning.
Importance of HR Planning

Planning is significant as it helps to determine future needs. A surplus of insufficiency in the staff strength is the result of
absence or defective planning.

All public sector enterprises find themselves overstaffed now as they had never planned their manpower requirements
as seen in the case study. They went on a hiring spree till the late 1980’s. Since then recruitment has almost been halted
but it happened too late.

The private sector is no exception: as many as 75% of organizations have surplus labor & the excess varies from 10% to
20% of the total workforce.

Such surplus staff issue has become so excess that they had started resorting to VRS to remove such staff.

This excess or shortage of labor would not have occurred if there was proper HR Planning

The government organizations have too many employees than needed is a well known problem however what is not
known is the lack of succession planning in most public sector units.

Lack of succession plan arises a situation where many organizations function without a chief executives.

Highly talented personnel: Today jobs are becoming highly intellectual & employees are becoming vastly professional.
Nearly 60% to 70% of employee strength could be MBAs engineers & technicians in large organizations. They are
generally considered as job hoppers & HR manager must use his ingenuity to attract & retain qualified & skilled
professional.

International Strategies: Expansion in different countries depend a lot on HRP & the department’s ability to fill key jobs
with foreign nationals & the re assignment of employees within the organization. (Colgate-Palmolive case study)

Foundation for personnel functions: HRP provides essential information for designing & implementing personnel
functions such as recruitment, movements like transfers, deputation promotions & layoff; training & development.

Unite perspectives of Line & Staff Managers: Although HRP is initiated & executed by corporate HR, it requires input &
cooperation of all managers. No one knows better need of a particular unit or department than an individual responsible
for that area. Communication of HR staff with line managers is essential for HR planning.

Other benefits: Upper management gets a better view of HR dimensions of business decisions; salary costs can be
controlled; more time can be given to find the right talent; grooming managers for next level.

Factors affecting HR Planning

• Type & Strategy of organization

• Org growth cycle & planning

• Environmental uncertainties

• Time Horizons

• Type & quality of information

• Labor Market

• Outsourcing

Q6. Describe the nature & process of Job Analysis. Prepare a job analysis of any one job in the Finance Sector

Nature of job analysis

  Job analysis is the process of collecting job related information. Such information helps in preparation of job
description & job specification

 Work has two perspectives:

Psychological perspective looks at individual behavior – Organizational Behavior – it is all concerned with
managerial problems of learning, attitudes, perception, motivation and job satisfaction

Sociological dimension of work is concerned with the broader contextual and structural factors affecting
people's experience of work. At the core of the sociological perspective are such managerial issues as leadership,
communication, power and politics, division of labor and group dynamics.

Job analysis refers to the process of collecting information about a job. It involves collection of information that should
include knowledge, skill and ability (KSA) the person should possess to complete a job effectively.

 Knowledge may be understood as the extent to which the job holder is familiar with his or her job.

 Skill refers to the specific capability to operate a machine/system. This also includes information about the use
of tools, equipment and machinery.

 Abilities refer to the physical and mental capacities needed to perform tasks not requiring the use of tools,
equipment or machinery.

In addition to KSA's, other details about the job may include the place where the job is completed and performance
standards.

The process of job analysis results in two sets of data:

(i) Job description (ii) Job specification

There must be a fit in between job description & job specification. Any mismatch results in job dissatisfaction that results
in low productivity, absenteeism & turnover.

Job Analysis

A Process of Obtaining Job Related Information

Job Description: A statement containing items

• Job Title

• Location

• Job Summary

• Duties

• Software, tools & machinery

• Materials & processes used

• Supervision given or received

• Working conditions

• Hazards

Job Specification: A statement of human qualifications necessary to do the job:

 • Education

• Experience

• Training

• Judgement

• Initiative & physical effort

• Physical skills

• Communication skills

• Emotional characteristics

• Any other unusual demands

THE PROCESS OF JOB ANALYSIS

 Strategic Choices

With regard to job analysis, an organization is required to make at least five choices:

1. The extent of employee involvement in job analysis.

2. Timing & Frequency of the analysis

3. Past vs Future oriented job analysis

1. Employee involvement:

The focus is on job bust not on the individual holding the job. However individuals are consulted. To what extent
employees need to be involved is a debatable point. Too much involvement may result in bias in favor of a job, as the
employee is likely to inflate the duties and responsibilities of his jobs, just to make it appear more important than it
actually is. On the ether hand, if employees are not involved or only minimally involved, they tend to become suspicious
about the motives behind the job analysis. Besides, lack of involvement from employees may lead to inaccurate and
incomplete information.

2. Time & frequency of analysis:

Another strategic choice relates to when & how often is are we analyzing a job:

Job analysis is generally conducted when

(i) an organization is newly established and the job analysis is initiated for the first time;

(ii) a new job is created in an established company;

(iii) a job is changed significantly due to change in technology, methods, procedures or systems;

(iv) the organization is contemplating a new remuneration plan;

(v) the employees or managers feel that there exist certain inequities between job demands and the remuneration
it carries.

3. Past vs Future oriented job analysis

If an organization is changing rapidly due to fast growth or technological change, a more future-oriented approach to
job analysis may be desired. Traditional job analysis information describes how the job has been done in the past and
the manner in which it is being currently done. If necessary, a future orientation can be given to the job analysis and
predictions may be made as to how the job will be done in future and the way it should be done.

 Information gathering

1. What type of data is to be collected?

2. What methods are to be employed for data collection?

3. Who should collect the data?

1 What type of data is to be collected?

Work activities:

• Job-oriented activities: description of the work activities performed, expressed in "job" terms, usually indicating
what is accomplished, such as galvanizing, weaving, cleaning, and so on: sometimes such activity descriptions
also indicate how, why and when a worker performs an activity, usually the activities are those involving active
human participation.

• Work activities/processes.

• Procedures used.

• Activity records (such as films)

• Personal accountability/responsibility.

Worker-Oriented Activities

• Human behaviors performed in work (such as sensing, decision making, performing physical actions or
communicating)

• Elemental motions (such as those used in time and motion studies).

• Personal job demands (human expenditures involved in work, such as energy expenditure).

Machines, Tools, Equipment, and Work Aids Used

• Computers (hardware and software).

• Safety equipment (goggles and groves).

• Office tools (pone, fax, books).

Job-Related Tangibles and Intangibles

• Materials processed.

• Products made.

• Knowledge dealt with or applied (such as law or chemistry).

Work Performance

• Work measurements (i.e. time taken).

• Work standards.

• Error analysis.

Job Context
 • Physical working conditions

• Work schedule.

• Organized context.

• Social context.

• Incentives (financial and non-financial).

Personal Requirements

• Job-related knowledge and/or skills (such as education, training, or work experience required).

• Personal attributes (such as aptitudes, physical characteristics, personality, interests required).

2. What methods are to be employed for data collection?

i. Observation

ii. Interview

iii. Questionnaire

iv. Checklists

v. Technical conferences

vi. Position Analysis Questionnaire – Management position & Functional (worker’s position)

3. Who should collect the data?

Trained Analyst

Supervisor

Job Holder

job analysis of any one job in the Finance Sector

Gajanan Group of Companies

Commodity Dealer
Calcutta

JOB DESCRIPTION:

We are urgently looking for a Commodity Dealer-Male with (10 -12) Yrs of experience in Share/Trading
Market for Kolkata Location.

Educational Qualification: B.COM, BA ECONOMICS, M.COM, MA ECONOMICS, MBA FINANCE.

"NISM-Series-VIII: Equity Derivatives Certification Required"

Experience:10 to 12 years.
Salary: Negotiable

Shift: Evening/Night ( 4 PM TO 12 AM).

Responsibilities:

 Dealing in NSE, BSE Cash, F&O segment, commodity & currency segment.

 Responsible for generating brokerage primarily through Commodity Trading.

 Should have strong knowledge about Commodity & Currency Segment.

 Required to be constantly updated with the domestic markets.

 Responsible for achieving targets set by the organization from time to time.

Skills Required:

 Graduate with minimum experience of 10 to 12 years with knowledge of Commodity & Currency
Segment.
 Should have good communication Skills & stable career and should be a result oriented.

 Ability to work in a fast-paced and dynamic work environment.

 Well versed with Commodity Trading segment.

Male Candidate with own Bike will be preferred.

Right salary for the right candidate and also depends on previous take home salary.

“Candidate having more than 10 Yrs of experience in Share/Trading Market can only apply”.

Interested candidate required to drop his/her updated CV & recent full size photograph @
8585092341(whatsapp).

Job Type: Full-time

Benefits:

 Cell phone reimbursement

Schedule:

 Evening shift

 Rotational shift

Ability to commute/relocate:

 Kolkata - 700091, West Bengal: Reliably commute or planning to relocate before starting work
(Required)

Education:
  Bachelor's (Preferred)

Experience:

 total work: 10 years (Preferred)

Speak with the employer

+91 8585092341

Q7 Components of remuneration & design a CTC structure with benefits mentioned.

Remuneration is the compensation an employee receives in return for his or her contribution to the organization.

Remuneration occupies an important place in the life of an employee. His or her standard of living, status in the society,
motivation, loyalty and productivity depend upon the remuneration he or she receives. For the employer too, employee
remuneration is significant because of its contribution to the cost of production. Besides, many battles are fought
between the employer and the employees on issues relating to wages or bonus.

For HRM too, employee remuneration is a major function. The HR specialist has a difficult task of fixing wages and wage
differentials acceptable to employees and employers.

Components of remuneration

An average employee in the organized sector is entitled to several benefits both financial as well as non- financial. To be
specific, typical remuneration of an employee comprises wages and salary, incentives, statutory benefits, perquisites,
and non-monetary benefits.

Wages & Salary: Wages represent hourly rates of pay, and salary refers to the monthly rate of pay, irrespective of the
number of hours put in by an employee. Wages and salaries are subject to annual increments. They differ from
employee to employee, and depend upon the nature of job, type of industry, seniority, and merit.

Incentives: ‘Payments by results', incentives are paid in addition to wages and salaries. Incentives depend upon
productivity, sales, profit, or cost reduction efforts. There are:

(i) Individual incentive schemes

(ii) Group incentive programs. Individual incentives are applicable to specific employee performance. Where a given task
demands group effort for completion, incentives are paid to the group as a whole. The amount is later divided among
group members on an equitable basis.

Statutory Benefits: These include such employee benefits as provident fund, ESIC, gratuity, medical care.

Fringe & Perquisites: Fringe: hospitalization, accident relief, health and group insurance, canteen, uniform, recreation
and the like. Perquisites: These are allowed to executives and include company car, club membership, paid holidays,
furnished house, stock option schemes and the like. Perquisites are offered to retain competent executives.

Non-monetary Benefits: These include challenging job responsibilities, recognition of merit, growth prospects,
competent supervision, comfortable working conditions, job sharing, and flexitime.

Basic wage (45%)

HRA
Conveyance Allowances
 Medical Allowances
Other Allowances
Total Earnings (Gross Salary)
Deductions
PF
Health Insurance
Professional Tax
TDS
Total Deductions
Net Salary

Q8. What are the consequences of Pay Dissatisfaction & explain non-monetary benefits?

 Decreased motivation;
 Increased turnover;
 Decreased morale; and
 Poor quality work.

Q9. What are types of non-monetary rewards & why are they more important?
Q10. What are the type of separations? Importance of exit interviews & lay out a questionnaire

Involuntary Separations:

◦ Discharge or dismiss or termination: Employer decides there is no more requirement of an employee’s services.
This could be an outcome of absenteeism, false statement of qualification at the time of interview, theft,
 integrity etc. Such individual is likely to bad mouth about the company & should be considered as the very last
option.

◦ Layoffs: Layoff is temporary in nature. Section 2 of Industrial Disputes Act defines it as inability or failure of
employer to give employment to a worker whose name is present on the rolls but who has not been retrenched.
Layoff maybe for a definite period or can be extended by the employer. Section 25 of the same act makes half
payment to workers mandatory.

◦ Retrenchment: Separation of a department or particular area of employment due to closure, introduction of

machinery, lack of demand for the products where employees must leave for good.

◦ Rightsizing: Theoretically it means reducing or increasing size of the manpower to maintain employee strength
at desired levels.

This is triggered by 3 factors:

Company’s bottom line | technological advancements | Organizational restructuring

Downsizing is claimed as desirable corporate strategy creates more problems than it can solve. One of the biggest
problems is employee morale. Downsizing doesn’t create a ripple, but it creates a tidal wave in the organization. The
survivors experience trauma – they have lost identity, colleagues, security, power & control. Moreover, the economic
benefits expected by the by the organization fail to materialize. Downsizing should be handled carefully because of its
negative impact.

Guidelines to Manage Downsizing

◦ Consider human element

◦ Make “who goes who stays” judgements judiciously

◦ Freeze hiring

◦ Restrict overtime

◦ Retrain & redeploy employees

◦ Engage part time employees

◦ Switch to job sharing

◦ Resort to across-the-board pay cuts

◦ Implement early retirement programs

◦ Attend to morale of serving employees

What Is Functional Employee Turnover?

Functional employee turnover indicates that turnover numbers are primarily comprised of poor performers. Functional
turnover can include both voluntary and involuntary turnover:

• Functional voluntary turnover indicates a poor-performing employee chooses to leave because they cannot
maintain the company's performance standards and expectations.

• Functional involuntary turnover indicates the company is doing a good job of identifying and terminating or
reassigning poor-performing employees.

What Is Dysfunctional Employee Turnover?

Dysfunctional employee turnover indicates that highly capable employees are leaving their positions within the
organization. As with functional turnover, dysfunctional turnover can include both voluntary and involuntary
separations:

• Dysfunctional voluntary turnover indicates an employee left the company due to unhappiness with the work
environment, a better offer outside the organization, or both.

• Dysfunctional involuntary turnover occurs when high-performing employees are let go, such as with downsizing
or restructuring efforts.

Exit Interviews

Separations of whichever type results in exit of an employee from the organization. It is advisable for HR/Managers to
get the views of people who are exiting, particularly those who are resigning from their jobs.

Exit interviews are conducted to know why & what circumstances are compelling them to leave the organization.

Exit interviews are conducted just prior to employee leaving.

They give feedback about employee’s experience on the job. This feedback obtained helps strengthen retention
strategies.

This could be a best time to retain employees.

Besides this exit interviews are a good public relations exercise. Those who leave & those who stay shall feel good about
the organization.

Two negatives that impact exit interviews are:

Forgive & forget mood of employee – where employee may not say anything at all

Defensiveness on the part of the organization, can have no interview process itself

Sample Questions for Exit Interview

◦ What circumstances led to your decision of departure?

◦ What circumstances would have prevented your departure?

◦ Did you share your concerns with anyone in the company?

◦ What did you like the most about your job?

 ◦ What did you least like about your job?

◦ What would you say about overall company culture?

◦ Did you feel equipped & empowered to work here?

◦ What do you feel about your supervisor/manager?

◦ If given a chance, would you like to work again with the company?

Short Notes:

What is Halo Effect (5 marks)

Describe the common interviewing problems (5 marks)

Selection specialists must be aware of these problems and need to be trained to overcome them.

1. Interviewers do not seek applicants' information dimensions needed for successful job performance. Often, they
do not have a complete job description or an accurate appraisal of the critical job requirements. In addition, the
interviewer often does not know the conditions under which the job is performed.

2. Interviewers may make snap judgements early in the interview. Consequently, they block potentially useful
information.

3. Interviewers permit one trait or job-related attribute to influence their evaluation of the remaining qualities of
an applicant. This process, called the Halo Effect, occurs when an interviewer judges an applicant's entire
potential for job performance on the basis of a single characteristic, such as how well the applicant dresses or
talks.

4. Interviewers have a tendency to be swayed by negative information about the such as how the applicant
applicants.

5. Information from interviews is not integrated or discussed in a systematic manner. If several interviewers share
information on an applicant, they may do so in a haphazard manner. They do not identify job-related
information or seek to examine any conflicting information. This casual approach may save time and
confrontation, but only in the short run. In the long run, everyone in the company will pay for poor hiring
decisions.

6. Interviewers' judgements are often affected by the pressure to favor a candidate or fill the position.

7. Gender, race and attitudes similar to those of the interviewer may lead to favorable evaluations.

Guidelines to interviewers

Do’s Don’ts

Plan the interview Start the interview unprepared

Establish an easy and informal relationship Plunge too quickly into demanding questions

Encourage the candidate to talk Ask leading questions

Cover the ground as planned Jump to conclusions on inadequate evidences

Probe where necessary Pay too much attention to isolated strengths or weaknesses
 Analyze career and interests to reveal Allow the candidate to gloss over important facts
strengths, weaknesses, patterns of behavior

Maintain control over the direction and time Talk too much
taken for the interview

Error during Induction & Orientation (5 marks)

Management by Objectives (MBO Process) (5 marks)

Training Needs Analysis (5 marks)

In simple terms training & development refers to imparting of specific skills, abilities & knowledge to an employee.

More clearly, training and development may be understood as any attempt to improve current or future employee
performance by increasing an employee's ability to perform through learning, usually by changing the employee's
attitude or increasing his or her skills and knowledge.

Difference between training & education:

Training Education

Application Theoretical Orientation

Job experience Classroom learning

Specific task General concepts

Narrow perspective Broad perspective

Training Process
1. Training Needs Analysis
2. Designing & Development of Program
3. Implementation of Training
4. Evaluation of Program

Step 1: Training Needs Analysis

• It diagnoses present problems and future challenges to be met through training and development

• Usually a percentage of turnover which is a large sum of amount is spent on Training & Development –
organizations well assess the training needs of their employees.

• Needs assessment occurs at two levels: Group & Individual

Organizational Support: The assessment tends to change patterns of behavior of employees. When needs
assessment is carefully designed & supported by the firm, errors are minimized & cooperation is much more likely to
occur. The analyst needs to take steps to work effectively with all parties & gain trust and support of the participants
in the needs assessment.
Organizational Analysis: Examine the short term & long term goals of the organization & trends that are likely to
affect these goals. Questions: Is there a sufficient supply of people ? Which are the target jobs that require training?
How do employees make firm competitive?

Task & KSA Analysis: In addition to organizational support it is necessary to identify what tasks are needed on each
job & which knowledge, skills & abilities are required to perform these tasks. These assessment helps prepare a
blueprint that describes the KSA to be achieved on completion of the training program. (Same like Job Analysis –
Chapter 5)

Person Analysis: Employees who need to undergo training are identified at this stage. Determine which necessary
KSA have already been learnt by the trainee/employee so time is not wasted.

Organizational Analysis Individual Analysis

Organizational goals and objectives Performance appraisal

Efficiency indices Work sampling

Exit interviews Interviews

MBO or work planning systems Questionnaires

Quality circles Attitude survey Training progress

Customer survey/satisfaction data Rating scales

Consideration of current and projected changes

Benefits Of Needs Analysis

Training programs are designed to achieve specific goals that meet needs.

1. Trainers may be informed about the broader needs of the trainees.

2. Trainers are able to pitch their course inputs closer to the specific needs of the trainees.

3. Assessment makes training department more accountable and more clearly linked to other human resource
activities, which may make the training program easier to sell to line managers.

Consequences of Absence of Training Needs Assessment

There is always the temptation to begin training without a thorough analysis of these needs. Should this happen, the
training program becomes inappropriate and its administration turns out to be perfunctory. Significance is often
better understood by looking at the consequences of inadequate or absence of needs analysis:

• Loss of business

• Constraints on business development

• High attrition

• Poor quality

• Higher rates of pay, overtime premiums

• Higher recruitment costs – ads, time, incentives

• Great stress on management & staff to provide cover

• Pressure on job evaluation schemes, grading structures, payment systems & career structures

• Need for job redesign & revision of job specification

• Higher training costs