Human Resource Management

UNIT-I
2 MARKS

1. Define HRM?
“HRM is concerned with the most effective use of people to achieve organisational and
individual goals”.

-Invancevich and Glueck

2. How the HRM is action oriented?

HRM focuses attention on action, rather than on record-keeping, written procedures or

rules.
The problems of employees at work are solved through rational policies.

3. Mention any three challenges of HRM?

Knowledge Management
Market Challenges
New Technology

4. Define Personnel Management?

“Personnel management is that part of management process which is primarily

concerned with the human constituents of an organization”.

-E.F.L. Breach

5. What is EPSS?

Electronic Performance Support System will provide online coaching and mentoring
services.
Manager and Employee can access organizational knowledge through an EPSS
application.
It also provides manager a very effective tool to communicate and establish employee key
result areas, objectives, and required competencies.

Unit- 1 Page 1
6. What is E-Payroll?

E-Payroll models automatically collect data regarding employee attendance and work
record for the purpose of evaluating work performance.
They calculate various deductions including tax, and generate periodic pay-cheques and
tax reports.

7. Mention any four operational role of HR manager?

Recruiter
Trainer and motivator
Mediator
Employee Champion

8. Define HR policies?

“HR policies are a set of proposals and actions that act as a reference point for
managers in their dealings with employees”

-Brewster and Ricbell

9. Mention any five types of policies?

Originated Policies
Implied Policies
Imposed Policies
General Policies
Written Policies

10. What is the Strategic role of HR manager?

Strategic Partner
Change Champion

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5 MARKS/10 MARKS

1. Nature of HRM?

Nature of HRM

Pervasive in Nature People Oriented

People Oriented Development Oriented

Auxiliary Service Challenging Function

2. Evolution of Human Resource Management?

Industrial Revolution

Scientific Management

Trade Unionism

Human Relations Movement

Human Resource Approach

Unit- 1 Page 3
 3. Scope of Human Resource Management?

Training and Development

Procurement

Job analysis and Job Description

Remuneration / Rewards

Personnel Records

Welfare

Industrial Relations

4. Why Human factor is important?

Activate Non – Human Resources

Develops competitive Advantages

Acts as a Sources of Creative Energy

5. Importance of HRM?

Individual Level

Professional Level

Social Level

Corporate Level

National Level

6. Computer Applications in Human Resource Management?

E-Recruitment / Applicant Tracking

E-Training

Electronic Performance Support System

E-Payroll

Unit- 1 Page 4
 E-Benefits

E-Self Service Human Resource

E-Time and Labour

Telecommuting / Teleworking

E-Enterprise Human Resources

7. Difference between Personnel Management and HRM?

Basis of Difference Personnel Management HRM

Careful declination of written Aim to go beyond contract

1. Employement
contracts
Contract

Importance of devising clear rules Can do, outlook, impatience

2. Rules
with rule.

Procedures Business Road

3. Guide to

Management

Action

Values / Mission
Norms / Customs and Practices
4. Behaviour

Referent

Unit- 1 Page 5
 5. Managerial Monitoring Nurturing

Task

6. Key Relations Labour Management Customer

7. Management Transactional Leadership Transformational leadership

Role

8. Pay Job Evaluation (Fixed Grades) Performance related

9. Communication Indirect Direct

10. Job Design Division of labour Team Work

11. Labour Collective-bargaining contracts Individual Contracts

Management

12. Speed of Slow Fast

decision

8. Characteristics of sound Human Resource Policies?

Related to Objective

Easy to Understand

Precise

Stable as well as Flexible

Based on Facts

Appropriate Number

Just, Fair and Equitable

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 Encourage Self – Development

Reasonable

Review

9. Formulation of Human Resource Policies?

1. Identifying the Need

2. Gathering Information

3. Examining Policy Alternatives

4. Putting the policy in writing

5. Getting Approval

6. Communicating the policy

7. Evaluating the policy

10. Scope of Human Resource Planning?

Employment

Training and development

Transfer and Promotions

Unit- 1 Page 7
 Compensation

Working Conditions

Employee Services and Welfare

Industrial Relations

11. Need of Human Resource Policies?

Provide definite Guidelines to Achieve consistent treatment of all

employees

Serve as standards of Performance

Helps to build employee enthusiasm and Loyalty

Serves as a Management Tool

Unit- 1 Page 8
 UNIT II

2MARKS:

1. What is human resource planning?

Armstrong defines human resource planning (HRP)

‘Both quantitative and qualitative process of ensuring that the
organisation has the right people at the right time
doing the right job’. The emphasis is on employee competencies and their stability
rather
than the precision of the numbers obtained through rigorous forecasting techniques.
Pattanayak considers,
HRP as a process of analysing an organisation’s
Human resource needs under changing conditions, and developing the solutions
Necessary for satisfying those needs. Therefore, an organisational mission, goals,
objectives,strategies and policies must guide HRP.

2. What is forecasting in human resource requirements?

Forecasting human resource demand is the process of estimating the

future human resource requirement of right quality and right number. As discussed
earlier, potential human resource requirement is to be estimated keeping in view the
organisation's plans over a given period of time.

By the consideration of:

replacement needs of employees due to death,

resignations,
retirement termination;
productivity of employees;
growth and expansion of organisation;
Absenteeism and labour turnover.
3. What is mean by labour market?

Description: A labour market in an economy functions with demand and

supply of labour. A labour market is the place where workers and employees
interact with each other. In the labour market, employers compete to hire the best,

Unit II Page 1
and the workers compete for the best satisfying job. Description: A labour
market in an economy functions with demand and supply of labour.

4. What you mean by labour demand forecost?

Labour demand forecast examines the present and future needs (looking at
the activitiesand budgets, current inventory of staff, known waste, and human
resource programmes).

depending on the organisation’s vision, mission, goals and objectives, human

resource managers will use these findings to forecast and plan how such demand
will be met.

5. What you mean by labour supply forecast?

Labour supply forecast deals with the identification of the existing human
resources,
the likely effect of changing working conditions if any, and sources of internal and
external
labour supply. The data from labour demand and supply forecast are compared
and decisions are made in the process of human resource planning.

6. What is ratio trend analysis in HRP?

Ratio analysis is the beginning of HR forecasting; it is not the entire process

Ratio analysis is the process of determining the future demand for human
resources by calculating the ratio between a particular business variable and the
number of employees a company needs. It especially helps you forecast those
growth-driven personnel needs.

Ratio analysis is one means of ensuring that you have the right amount of
employees for the amount of work by determining the number of employees needed
based on some element of production or sales.

7. levels of human resource management?

Review the stock of labour in the base year.

Translate the annual economic growth in terms of labour requirement
Consider the attrition rate due to retirement, deaths etc,
Consider the number of people leaving schools, colleges etc.
Monitor the unemployment rate,
Fill the gap between demand and supply by proposing action to be taken at
certain times in the planning stage.

Unit II Page 2
 Planning propositions may include emphasis on training
in certain disciplines;
controlling attrition rate, which may be a result of HIV Aids
through national campaigns, or altering the retirement age.

8. what is interview?

According to Scott and others, “an interview is a purposeful exchange of

ideas, the answering of questions and communication between two or more
persons”.

Bingham and others define an interview as a ‘conversation with a purpose”

Interview is the widely used (election method. It is a face-to-face interaction

between interviewee and interviewer. If handled carefully, it can be a powerful
technique in having accurate information of the interviewee.

9. What is recruitment?

In human resource management, “recruitment” is the process of finding and

hiring the best and most qualified candidate for a job opening, in a timely and cost-
effective manner.

It can also be defined as the “process of searching for prospective employees

and stimulating and encouraging them to apply for jobs in an organization”..

10. What is induction in HRM?

An induction programme is the process used within many businesses to

welcome new employees to the company and prepare them for their new role. It
helps in the effective integration of the employee into the organization.

It aims to:

To smoothen the preliminary stages for a better start up.

To establish a favourable attitude to the organisation.
To obtain effective output as early as possible.

11. Equal opportunity?

Equal opportunity means that members of a protected group or class must be
employee without being subjected to various forms of unfair discrimination. The
discrimination could be based on race, gender, age, or disability

Unit II Page 3
12.what is application pool blank application?

Application pool Blank application

Application blank is most
Applicant Pool. An applicant pool can commonly used to collect
be defined as the total number of information from the applicants. ...
people who have applied for a single When an applicant submits
position by sending their resume his application blank, he provides
and/or a filled application form. a brief bio-data about himself to the
organization

. 13. What is test in selection process?

Selection tests are popularly known as pshychological tests as they are

measure the psychological characteristics of a person.
It is an instrument designed to measure various characteristics of the
candidatesnot disclosed by their employment application form.
It is essentially an objective and standardized measure of a sample of behavior.

14. socialization, orientation,placement:

Socialization Orientation placement

Socialization is an Orientation is the process
Placement is essentially a
adoption of process that of introducing a new
process of matching jobs
takes place as new employee to an
and individuals and
employees attempt to organization,and the
placement occurs when a
learn inculcate norms and organization to the
job is assigned to an
values.therefore, it is an employee by providing him
individual.
adaptive process,required the relevant information.

15. Types of tests in interview?

Main tests Common tests No.of tests
Numerical reasoning
Ability test Ability test
tests.
Verbal reasoning
Personality tesy Achievement test
tests
Intrest test Intray exercises. Apptitude test
Diagrammatic tests. Personality test
Situational judgement Thematic test
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 tests
Inductive reasoning Myers-briggs type
tests. indicator
Cognitive ability tests. Intrest test
Mechanical reasoning
tests
Watson Glaser tests.
Abstract reasoning
tests.
Spatial awareness
tests.
Error checking tests.

5marks/10marks:

1.Importance of human resource planning

Defining future human resource need
Future human resource need
Recruiting and developing human resources
Coping with changes
Every organisation is trying to coplete on the basis of technology
and managerial talents which have resulted in global talent war.
Providing base for developing talents
(I) Increasing emphasis on knowledge
Forcing top management to involve in HRM
(I) Active involvement of top management in the preparation of
human resource plans,it is expected to appreciate the real value of
human resources in achieving organisational effectiveness.

2. Techniques for forecasting human resource needs:

Managerial judgement method

Delphi technique
Work study technique
Ratio trend analysis
Statistical and mathematical models

Unit II Page 5
3. The process of human
n reso
resource planning

Organ
rganizational objectives,plans,and policies

Human resource planning

Forecasting needs for human Forecas ting

ing supply of human
resources resources
res

Identification of human resource gap

Surplus human resources Shortage of human

hu resources

Action plans for bridging gap

4. Barriers to effective human

uman resource planning

Improper linkage between

tween hr planning and corporate sratergy
ergy
Inadequate appreciation
ation o
of hr planning
Rigidity in attitudes
Environmental uncertainty
rtainty
Unit II Page 6
 Conflict between long-term and short-term HR planning
Inappropriate HR planning

5. Purpose and importance of recruitment

Recruitment determines the present and future human resource requirements

of the organization in conjunction with human resource planning activities and
job analysis activities.
It helps to increase the pool of potential personnel and the organization has
number of options to choose from
It helps in increasing the success rate of the section process by filtering the
numer of underqualified or overqualified job applicants
It reduces the porobability that applicants,once selected and made available to
the organization,leave it after a short period of time
It helps In evaluating the effectiveness of various recruitmenttechniques and
sources of recruitment.
It helps to meet the organization’s legal and social obligations regarding
composition of its workers.

6. Factors affecting recruitment programme

Factors affecting recruitment

programme

Internal factors External factors

Orgsanisational image Nature of competition

Size of organization Legal factors
Type of personnel to be recruited Socio-cultural factors
Past practices External influence

7. Methods of recruiting

Intrernet recruitment
Walk-in
Campus recruitment
Job fairs

Unit II Page 7
 Consultancy firms
Personel contacts
Poaching and raiding

Methods by operative

Public employement exchanges

Labour unions
Employee referrels
Gate hiring
Labour contractors
Application pool

8. Recruitment process

To
Recruitment Sources of Contacting Application selection
planning recruitment sources pool process

9. Importance of socialization

Company culture/corporate culture

Motivation
Team-building activities
Employment situation
Rules and policies
Compensation and benefits
Dealing with change

10. Process of socialization Outcomes

Commitment
PRE-ARRIVAL Encounter Metamorphosis

Productivity

Unit II Page 8
11. Steps involved in selection process

Application pool from

the recruitment process

Screening of
application form Estimate those not meeting initial criteria

Selection tests
Estimate those below cut off points

Selection interviews Estimate those not meeting job and

organizational requirements

Checking of references
Estimate those with adverse remarks

Physical examination
Estimates those not meeting physical standards

Approval by appropriate
authority Adopt objectivity

Congratulate
Final selection

Employment
control Inform about all possible terms and conditions

Evaluation
Check the reliability and validity

Unit II Page 9
 UNIT-3
TRAINING
2 marks:

1.What is training?

Training is a short- term educational process and utilising a systematic

and organised procedure by which employees learn technical knowledge and
skills for a definite purpose.

2.Definition of training?

According to Dale S.Beach, The training as “the organised procedure by

which people learn knowledge and /or skill for a definite purpose”.

3.What is assessment of training needs?

Training needs are identified on the basis of organisational analysis, job

analysis and manpower analysis. Training needs are those aspects necessary to
perform the job in an organization in which employee is lacking attitude/
aptitude ,knowledge and skill.

4. What is on-the job training ?

It has the advantage of givingfirst hand knowledge and experience un

der the actual working conditions. It includes job rotation, coaching, job
instruction or training through step – by-step and committee assignments.

5.What is job rotation?

This type of training involves the movement of the trainee from one job to
another. The trainee receives job knowledge and gains experience from his
supervisor or trainer in each of the different job assignments.

6.What is coaching?

The trainee is placed under a particular supervisor who function as a

coach in training the individual. The supervisor provides feedback to trainee on
his performance and offers him some suggestions from improvement.

Unit III Page 1

7.What is Job Instruction?

This method is also known as training through step by step. Under this method,
the trainer explains to the trainee the way of doing the jobs, job knowledge and
skills and allows him to do the job.

8.What is Committee Assigments?

Under the committee assignment a group of trainees are given and asked
to solve an actual organisational problem

9.What is Internship?

Internship is one of the on-the-job training methods. Individuals entering

industry in skilled trades like machinist, electrician and laboratory technician
are provided with through instruction though theoretical and practical aspects.
For example, BHEL.

10.Characteristics of Instructors?

In-depth Knowledge
Adaptability
Sincerity
Sense of humour
Interest
Clear instructions
Individual assistance
Enthusiasm

11.Evalution of training programme?

It is defined as any attempt to obtain information on the effort of training

performance and to assess the value of training in the light of that information.

12.What is Learning?

Training programme, trainer’s ability and trainee ability are evaluated

on the basis of quantity of content learned and time in which it is learner’s
ability to use or apply the content he learned.

Unit III Page 2

13.What is Job Behaviour?

This evaluation includes the manner and extent to which the trainee has
applied his learning to his job.

14.What is Employee Self Initiative?

Employees have realized that change is the order of the day and they
have started playing the role of an change agent. Consequently, employees
identify their own training needs, select appropriate training programmes
organized by various organisations and undergo the training programmes.

15. What is On-Line Training?

Companies started providing on-line training. Trainees can undergo

training by staying at the place of their work. Participants complete course
work from wherever they have access to computer and internet. Different types
of media are used for on-line training.

16.What is Orientation Training?

Orientation training is also called induction training. Orientation

training is to orient the employee to the new job, organisation, superiors,
subordinates, customers and colleagues.

17. What is Diversity Training?

The number of employees from varied ethnic groups as well as diverse

backgrounds bring varied knowledge that helps the organisation in making
accurate and efficient decisions.

18.What is Management Development?

Management development is a systematic process of growth and

development by which the managers develop their abilities to manage. So, it is
the result of not only participation in formal courses of instruction but also of
actual job experience.

19. What is Under Study?

“An under study is a person who is in training to assume at a future time,

the full responsibility of the position currently held by his superior”.

Unit III Page 3

20. What is Multiple Management?

Multiple Management is a system in which permanent advisory

committees of managers study problems of the company and makes
recommendations to the higher management. It is also called junior-board of
executives system.

21.What is The Case Study?

Cases are prepared on the basis of actual business situations that

happened in various organisations. The trainees are given cases for discussing
and deciding upon the case. Then they are asked to identify the apparent and
hidden problems which they have to suggest solutions.

22. What is Role Playing?

A problem situation is simulated by asking the participants to assume the

role of a particular person in the situation. The participant interacts with other
participants assuming different roles. The mental set of the role is described
but no dialogue is provided.

23.What is Sensitivity Training?

Increased openness with others

Greater concern for others
Increased tolerance of individual differences
Less ethnic prejudice
Understanding of group processes
Enhanced listening skills
Increased trust and support

24.What is Conferences?

A conference is a meeting of several people to discuss the subject of

common interest. But contribution from members can be expected as each one
builds upon ideas of other participants. This method is best suited when a
problem has to be analysed and examined from different viewpoints.

Unit III Page 4

25. What is Behaviour Modelling?

It is an approach that demonstrates desired behaviour and provides

trainees the chance to practice and role play/imitate those behaviours and
receive feedback.

26.What is Evaluation of Management Development Programmes?

It should be evaluated in order to find out whether the objectives of the

programmes are achieved or not. The development programmes would be
effectives, if they contribute to the organisational group and individual goals.

27.What is team training?

Organisations, today, mostly rely on team work and team management to

achieve goals. Team work is more prevalent in all kinds of activities including
production, marketing, customer relationship, supply chain and finance.
Teamwork results in synergy and produces greater efficiency for organisational
success.

5 & 10 Marks:-

1.Need for Training?

To match the Employee Specifications with the Job Requirements and

Organisational Needs
Organisational Viability and the Transformation Process
Technological Advances
Organisational Complexity
Human Relations
Change in the Job Assignment

2.Training Objectives?

To prepare the employee, both new and old to meet the present as
well as the changing requirements of the job and the
organisation.
To prevent obsolescence.

Unit III Page 5

 To impart the new entrants the basic knowledge and skills they
need for an intelligent performance of a definite job.
To prepare employees for higher level tasks.
To build up a second line of competent officers and prepare them
to occupy more responsible positions.
To develop the potentialities of people for the next level job.
To ensure smooth and efficient working of a department.
To ensure economical output of required quality.
To promote individual and collective morale, a sense of
responsibility, co-operative attitudes and good relationships.

3.Methods used in training needs assessment:-

METHODS USED IN TRAINING NEEDS ASSESSMENT

Group or Organisational analysis Individual analysis
Organisational goals & objectives Performance appraisal
Personnel/skills inventories Work sampling
Organisational climate indices Interviews
Efficiency indices Questionnaires
Exit interviews Attitude survey
Work planning system Training progress
Quality circles Rating scales
Customer survey data Observation of behaviour
Consideration of current and projected
changes
Individual Group Organizational
Training TrainingTraining
needs needsneeds

Training needs = Job and organisational requirement – Employee’s

specifications.

4. Training methods:-

Training methods

Unit III Page 6

ON-THE-JOB TRAINING OFF-THE-TRAINING

- Job rotation - vestibule training

- Coaching - role playing
- Job instruction - lecture methods
- Training through step-by-step - conference or
discussion

- Committee assignments - programmed

instructions
- Internships

5. Advantages of Training:-
1. Increased Productivity:
An increase in skill usually results in an increment in both quality and
quantity of output. However, the increasingly technical nature of modern
jobs demands systematic training to make possible even minimum levels of
accomplishment.
2. Heightened Morale:
Possession of needed skills help to meet such basic human needs as
security and ego satisfaction. Collaborate personnel and human relations
programmes can make a contribution towards morale, but they are hollow
shells if there is no solid core of meaningful work down with knowledge, skill
and pride.
3. Reduced Supervision:
The trained employee is one who can perform with limited
supervision. Both the employee and supervision want less supervision, but
greater independence is not possible unless the employee is adequately trained.
4. Reduced Accidents:
More accidents are caused by deficiencies in people than by
deficiencies in equipment and working conditions. Proper training in both job
skills and safety attitudes should contribute towards a reduction in the accident
rate.
5. Increased Organisational Stability:
The outcomes of training help for organizational stability by
enhancing organizations human capital. The ability of an organisation to
sustain its effectiveness despite the loss of key personnel can be developed only
through creation of a reservoir of employees. Flexibility, the ability to adjust to
short-run variations in the volume of work requires personnel with multiple
skills to permit their transfer to jobs where the demand is highest.

Unit III Page 7

6. Various Methods of Training Evaluation:-
Immediate assessment of trainee’sreaction to the programme.
Trainee’sobservation during the training programme.
Knowing trainee’sexpectations before the training programme and
collecting their views regarding the attainment of the expectations
after training.
Seeking opinion of the trainee’s superior regarding his/her job
performance and behaviour before and after training.
Evaluation of trainee’s skill level before and after the training
programme.
Measurement of improvement in trainees on the job behaviour.
Examination of the testing system before and after sometime of the
training programme.
Measurement of trainee’s attitudes after the training programme.
Cost-benefit analysis of the training programme.
Seeking opinion of trainee’s colleagues regarding his/her job
performance and behaviour.
Measurement of levels in absenteeism, turnover, wastage/scrap,
accidents, breakage of the machinery during pre and post period of
the training programme.
Seeking opinions of trainee’s subordinates regarding his/her job
performance and behaviour.

7. Team Training:-

Team Training

Process Skills behaviour Skills

Meeting Member communications

Problem solving Conflict resolution
Brain storming Building trust
Decision-making Establishing norms
Negotiating Handling difficult members
Goal setting Diversity awareness
Presentation Team development stages
Process analysis Team issues/concerns
Task evaluation Team benefits
Customer vendor analysis Features of good teams

Unit III Page 8

 Project planning Negotiations
Information management
Creativity

8. Characteristics of Effective Diversity Training Programme:-

Link the diversity training to organisational strategies.

Engage qualified and experienced trainer.
Training programme should reflect organisational goals.
Use appropriate trainingmethodology based on organisation and groups
needs of various diversified groups.
Document individual and organisational benefits
Committee for training should reflect all levels and groups.
Managers should be accountable for achieving the goals of the training.

9. Objectives of Management Development:-

To overhaul the management machinery.

To improve the performance of the managers.
To give the specialists on overall view of the functions of an organisation
and equip them to co-ordinate each other’s efforts effectively.
To identify persons with the required potential and prepare them for
senior positions.
To increase morale of the members of the management group.
To increase versatility of the management group.
To keep the executives abreast with the changes and developments in
their respective fields.
To create the management succession that can take over in case of
contingencies.
To improve thought process and analytical ability.
To broaden the outlook of the executive regarding his role position and
responsibilities.

10. Need for Management Development Programme:-

Techno-managers like basic chemical engineers, mechanical

engineers,information/systems engineers need to be developed in the
areas of managerial skills, knowledge and abilities.
Efficient functioning of public utilities, transport, communications etc.,
depend on professionalization of management in the sectors.

Unit III Page 9

 Professionalization of management at all levels particularly in service
organisations need the development of managerial skills and knowledge
particularly at lower and middle levels.
Transmission of communist/socialistic societies into capitalistic
economies changed the structure of the principle of business. These
changes along with liberalisation, privatisation and globalisation of
business changed the principle. Hence, the development of the present
managers in these new principles/areas is highly necessary.
Human resources development of the managers in multiple areas
necessitates the executive development programme.
The need for management development arises due to providing technical
skills and conceptual skills to non-technical managers and managerial
skills and conceptual skills to technical managers.
The intensive competition and consequently upon employment of various
grand strategies by various business organisations necessitates the
development of managers.
The emergence of new concepts in management like Total Quality
Management, Enterprise Resources Planning, Business Process Re-
engineering Empowerment etc., necessitates the management to offer
developmental programmes.
Entry of multinational and transnational corporations brought new
trends and strategies for the domestic companies also. These factors
necessitated the domestic companies to undertake developmental
programmes.

11. Principle of Management Development:-

The management should assess the development needs of its managers at

different levels through performance analysis and development methods.
Management should decentralise the responsibility of developing the
managers of different departments/units and make the head of the
department unit responsible for it.
Management should integrate career planning and development of the
organisation with the management development programmes.
Every manager to the organisation should be motivated and empowered
to take up developmental programmes.
Management development programme is a continuous process.
Management should encourage the manager to take up programmes on
their own in addition to the company sponsored programmes.

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 Management should make use of the management development
programmes organised by outside agencies like IIMs, XLRI etc.
The content of the programme should be need based for the individual
manager and the organisation.
The physical, social and psychological climate for the programmes
should be conducive.
All managers should be encouraged to undergo development programmes
in order to avoid executive obsolescence.
Management development programmes should concentrate on the latest
management concepts and principles.

12. Method of Management Development:-

Important methods of Management Development

On-the-job Techniques Off-the-job Techniques

Coaching job Under Multiple

Rotation Study Management

The Case Incident Role In Basket Business Sensitivity

Method Method Playing Method Game Training

Simulation Grid Conferences Lectures

Training

13.Benefits of executive development:-

Self-awareness (personal development begins with self – awareness
A sense of direction
Improved focus and effectiveness
More motivation
Greater resilience
More fulfilling relationships.

Unit III Page 11

14. Suitability of Various Techniques of Management Development:-

SUITABILITY OF VARIOUS TECHNIQUES OF MANAGEMENT

DEVELOPMENT
Technique Suitability

1. Job Rotation This is particularly useful in the development

of diversified skills and to give executives a
broader outlook, which are very important to
the upper management levels.

2. Understudy An understudy is normally chosen with a

forethought of making available to the
organisation a subordinate who is equal to his
superior in the event of retirement, illness or
death of superior. The subordinate will be able
to take over his position and manager as
effectively as his boss could.

3. Multiple Management This technique is mainly useful in bringing

the managers out of their narrow shells and
help them gain a broader outlook and
knowledge in different functional areas.

4. Case Study In the development of executive and

analytical and decision-making skills, this
technique is particularly useful.

5. IncidentMethod This technique improves one’s intellectual

ability, practical judgment and social
awareness.

6. Role Playing Role playing helps executives in

understanding people better by giving them
vicarious experiences.

7. In Basket Situational judgment and social sensitivity

are the two important qualities that can be
developed with the help of this method.

8. Business Games This technique may be used in order to

develop organisational ability, quickness of

Unit III Page 12

 thinking and leadership.

9. Sensitivity Training This helps one know more about himself

and the impact of his behaviour on others,
which are important to manage people better.

10. Simulation Problem solving through decision-making

can be developed quite well with the help
of simulation.

11. Managerial Grid To develop leadership qualities in

executives
over a long period of time, this technique
is adopted.

12. Conferences The most difficult thing for any one is to

change his own attitude. This technique
develops the ability of the executives to
modify their attitudes, when needed in the
interest of the organisation.

13. Lectures This is the best technique to give more

Knowledge in a short period of time to a
large number of participants.

15.Common practices of executive development:-

Several key themes and trends emerged consistently throughout the
literature review andbenchmarking interviews of agencies and top
organizations. The conclusions from the study listed below are hallmarks of
successful executive development efforts and can be used as a basis of
comparison to evaluate your agency’s program:

 Assessments add value. Agencies that offer a variety of assessments are able
to demonstrate their executives receive a tangible value, irrespective of whether
the assessments relate to work, personality, leadership style, or other areas.
Agencies thatprovide such assessments generate a great deal of interest and
positive feedback fromtheir executives, and executives gain a deeper level of

Unit III Page 13

self-awareness from assessments. Notably, the private sector consistently uses
assessments as the foundation for executives’ development.

 Experiential learning is key. Traditional classroom settings have given way

to a much more hands-on, action-oriented approach to development. Executives
derive more My developmental needs are not being met because of…
Strongly Agree/Agree
Inability to take time away from the job 70%
Lack of funding 66%
Lack of support from superiors 46%
Appropriate training not offered 42%
Other 18% value out of this type of learning by directly applying knowledge to
real problems and situations. This facilitates more effective learning and a
greater return on investment by solving actual organizational problems.

 Link learning and development opportunities to the organization’s

mission and strategic goals.
This may be the number one practice for ensuring the success of
development efforts. The skill sets of leaders must align with and support the
values and strategic challenges of the agency to build and maintain an effective
and efficient organization.
 Link learning and development opportunities to performance plans.
Manysuccessful organizations show commitment to development by linking it
closely to theperformance review process. This helps to identify and close skill
gaps and to empower employees to take responsibility for their development.

 Executive sponsorship is vital. Executive endorsement provides credibility

to development efforts and helps to build a culture in which employees value
learning anddevelopment.

 Support during transitions is crucial. The transition to a new leadership

role often involves a significant shift and increase in responsibilities, which can
create uniquechallenges for the leader. Many organizations offer individualized
training to close competency gaps that emerge when executives transition to
roles with a new and larger scope of leadership. Agencies are strongly urged to
provide a coach and/or mentor to executives who transition to roles with a
higher level of leadership or to new roles.

 A blended approach is helpful. A blended approach to learning involves the

use ofmultiple learning strategies and delivery methods to best meet the needs
of the learner. Private organizations tend to offer blended, multifaceted
learning programs thatcombine technology-based and traditional instructional
methods. This blended approach can enhance learning outcomes and minimize

Unit III Page 14

costs. When faced with budget limitations, organizations may still offer strong
executive developmental programs by leveraging technology and identifying
diverse and creative ways to provide learning opportunities

16.Training procedure:-

Job and Evaluate Identify Design the Prepare Design

organizatio the the training cost budget training
nal analysis Trainee (s) training needs and foresee content,
benefit teaching
have cost method
benefit s and
analysis media

Prepare Preparate Get ready Implement Present Gain the

the the to leach the training the accepta
instructor trainee programme operations nce of
the
program
me

Try out the Evaluate Update the

trainee’s the result programme
performance

Unit III Page 15

 UNIT 4
SUSTAINING EMPLOYEE INTEREST
2MARKS:
1] Meaning of reward?
A reward can be defined as any form of gratification that an employee gains from his
or her employment with an employer.
2] Definition of reward?
According to MILLER AND STEINBERG “A reward can be defined as any
positively perceived physical, economic or social consequence”.
3] Definition of wage?
According to P.M. STOCHANK,” wage is that Labour’s remuneration which
creates the utility”.
4] Definition of incentives?
According to BURRACK & SMITH,“An incentive scheme is a plan or Programmes
to motivate individual for good performance. An incentive is most frequently built on
monetary rewards but may also include a variety of non-monetary rewards or prizes”.
5] Definition of Employee benefits?
According to HENDERSON,” Employee benefit is defined as indirect payments
employees receive in addition to their direct wages or salaries”.
6] Definition of Motivation?
According to S.P. ROBBINS,” Motivation is the willingness to exert high levels of
effort toward organisational goals, conditioned by the effort and ability to satisfy some
individual need”.
7] Definition of Career?
According to HALL,”A career can be defined as the individually perceived sequence
of work-related experiences and activities over the span of the person’s life”.
8] Definition of Career Management?
According to ARNOLD,” Career Management is an attempt made to influence the
career development of one of more people”.
9] Definition of career planning?
According to SCHERMERHORN,” Career planning is a process of systematic
matching career goals and individual capabilities with opportunities for their fulfilment”.

Unit IV Page 1
10] Definition of Mentoring?
According to COLLIN,”Mentoring is a one-to-one relationship between a more
experienced person and an inexperienced person, until the latter reaches maturity”.
11] Definition of career development?
According to PIETROFESA AND SPLETE,” Career development is an on-going
process that occurs over the life span: includes home, school, and community experiences”.
12]Meaning Of Proteges relationship?
The mentor and the protégé are the two participants in mentoring relationships but in
the context of workplace, the organisation involves itself as a third entity. It is called the
proteges relationship.

5,10. MARKS

1]Types of rewards?
Intrinsic vs extrinsic rewards
Financial vs non-financial rewards
Performance vs membership rewards
2]Importance of rewards?
1. Acts as source of organisational effectiveness.
2. Serves as medium between organisation and employees.
3. Motivates employees for better performance.
4. Encourages healthy competition and collaboration.
5. Helps to differentiate between good and poor performers.
6. Stimulates employee involvement.
7. Reward as source of innovation.
8. Strengthens organisational competitiveness.
9. Maintains organisational harmony.
3]Classification of wages?
Minimum wage
Living wage
Fair wage
Real wage
4]Types of incentives?
Individual incentives
Group incentives
Enterprise incentives

Unit IV Page 2
5]Importance of incentives?
Increases productivity.
Improves safety.
Increases morale.
Increases company loyalty.
Increases objective achievement.
Reduces company costs.
Reduces absenteeism.
Promotes teamwork.
6]Nature of motivation?
Motivation is a psychological concept.
Motivation is a continuous process.
Motivation is dynamic and situational.
Motivation is not easily observed phenomenon.
Motivation is a goal-oriented process.
7]Types of motivation?
1. Positive Vs Negative Motivation
2. Rational Vs Emotional motivation
3. Primary Motivation Vs Secondary Motivation
4. Intrinsic Vs extrinsic Motivation
5. Financial Vs Non-Financial Motivation
8]Process of Motivation?
Motive
Behaviour
Goal
Tension Reduction
9]Application of theories of Motivation?
1) Rewards
2) Job rotation
3) Employee involvement programmes
4) Management by objectives
5) Employee recognition programmes
10]Career stages?
I. Exploration stage
II. Establishment stage
III. Mid-career stage
IV. Late career stage
V. Decline stage

Unit IV Page 3
12]Principles of Effective Career Management?
Consistency
Pro-activity
Collaboration
Dynamism
13]Importance of Career Management?
It helps in developing good management and leadership skills
It helps to gain confidence
It opens doors of opportunity
It gives chance to show capability
14]Characteristics of career planning?
1. Participative process
2. Involves survey of employee’s abilities and attitudes
3. Developmental process
4. Continuous process
5. Pervasive process
15]Process of Mentoring?
Needs assessment
Programme design
Training
Pairing
Facilitation
Evaluation
16]Classification of Mentoring Programmes?
Procedural classifications
I. Formal mentoring
II. Informal mentoring
Purposiveclassifications
I. Career mentoring
II. Psycho-social mentoring
Other classification
I. One-to-one mentoring
II. Group mentoring
III. Team mentoring
IV. Peer mentoring
V. E-mentoring

Unit IV Page 4
17]Functions of Mentoring?
Career-related or career support function
I. Sponsorship
II. Exposure and visibility
III. Coaching
IV. Protection
V. Challenging assignments
Psycho-social or Emotional support functions
I. Role modelling
II. Acceptance and confirmation
III. Counselling
IV. Friendship
18]Importance of Mentoring?
1. Helps Mentee “Learn the Ropes”
2. Helps in career advancement
3. Makes Job Interesting and Motivation
4. Promotes Learning and Development
5. Builds Networking relationships
6. Brings sense of achievement

Unit IV Page 5
 HUMAN RESOURCE MANAGEMENT

UNIT-V

Two mark Questions

1. What is Performance evaluation?

Performance evaluation is a system of review and measurement of an individual or group work

completed the compare with task assigned.

2. What do you mean by Promotion?

According to Edwin flippo “promotion involves a change from one job to another that is better in terms
of status and responsibilities”.

3. Define Transfer

Transfer is defined as movement of individual from one position to another without involved any changes
in status, power, and responsibilities.

4. What is Separation (labour turn over)?

Separation refers to termination of employment due to death, accident, long illness or ending of the
contract of an employee.

5. Define Demotion:

According to Ali Balci “Demotion is defined as shifting an employee down to lower levels of position
which involve decrease in salary, status, and privilege.

6. Define Controlling:

According to H.Koontz and O’Donnell “Controlling is the measuring and correcting of activities of
subordinates to ensure that events conform to plans.

7. What do you mean by Grievances?

Grievances is a complaint of one or more employee in organization about wages, allowances, and
working condition, leave, transfer, promotion etc.

8. What are the Types of Promotion?

Horizontal promotion
Vertical promotion
Dry promotion
Open and closed promotion

Unit – V Page 1
9. What is performance feedback?

Performance feedback is the ongoing process between employee and manager where information is
exchanged concerning the performance expected and the performance exhibited .

10. Define job change

Job change is defined as a move to a different job (different job code and job title) in the same or lower
grade which may result in a pay change.

11. Short note on 360 degree performance appraisal

360 degree appraisal can be defined as the systematic collection and feedback of performance data on
an individual or group derived from a number of stakeholders in the performance.

Five and Ten mark Questions

1. Methods of performance evaluation

Methods of performance evaluation

Traditional/ Past-oriented Modern/future- oriented

methods methods

1.Graphic rating scales 1.Assessment centres

2.Straight ranking method 2.360-degree performance appraisal

3.Paired comparision method 3. Behaviourally anchored rating

Scales(BARS)

4.Critical incident method 4.Management by objectives(MBO)

5.Confidential reports 5.Psychological appraisals

6.Group appraisal method 6.Balanced scorecard

7.other traditional method 7. Human resources accounting.

2. Types of performance feedback

Formal feed back
Informal feedback
Positive feedback
Negative feedback.

Unit – V Page 2
 3. Process of performance feedback
I. Scheduling performance
II. Preparing for a feedback session
III. Conducting the feedback session
a) Tell –and-sell Approach
b) Tell-and-listen approach
c) Problem-solving approach

4. Guidelines for Effective performance feedback

Make it helpful
Be specific
Be descriptive
Be timely
Be flexible
Give positive as well as negative feedback
Avoid blame or embarrassment
Provide constructive feedback
5. Types of job change
a) Internal job change
Vertical
Horizontal

B) External job change

6. Implication and effects of job change

1. Effects of promotion
2. Effects of demotion
3. Effects of transfer
4. Effects of separation
Downsizing
Lay off
Retrenchment
Resignation

Unit – V Page 3
 7. Process of controlling

Setting Establishing Measuring Comparison of actual

Objective standards performance performance with

Standards

Correcting Deviations

8. Importance of controlling

Helps in achieving objectives

Efficient use of resources
Facilitates decision making
Improves employee morale
Helps in achieving better co-ordination
Helps in better planning
9. Methods of controlling

Methods of
controlling

Traditional methods Modern methods

1. Personal observation 1. Return on investment

2. Statistical analysis 2. Responsibility accounting
3. Special reports and analysis 3. PERT
4. Operational audit 4. CPM
5. Break event analysis 5. Management information system
6. Budget and budgetary control 6. Management audit
7. Total quality management
8. Six-sigma

Unit – V Page 4
 10. Requirements of effective control system

Feedback
Objective and measurable
Suitable
Prompt reporting
Forward looking
Pointing out expectation
Intelligible
Motivation
Understandable & economical
Control by functions & factors
Strategic points control
Flexible
Indicative as well as
Correct action at correct time

11. What are the Causes of grievances?

Complaints about wages, salary & incentives schemes

Complaints about job designation or position
Complaints about superior and co-workers
Promotion, transfer
Disciplinary action
Non- availability material in time
Safety and health issues

12. Implication/effects of grievances

Production
i. Low quality of production
ii. Low quality of productivity
iii. High wastage of material
iv. High rate of defective, breakage and scrap
v. Increase in the cost of production per unit

Employees
i. Lack of interest in work

Unit – V Page 5
 ii. Low work commitment
iii. Poor morale and motivation
iv. High rate of absenteeism
v. Increased rate of accidents
vi. Increase to labour turnovrer

Superior/ managers/ management

i. Poor relationship between workers and superior resulting in conflict
ii. Increase in cases of indiscipline
iii. Increasing in employee unrest

13. Methods of identifying grievances

Personal observation
Complaint boxes
Open door policies
Exit interview
Obedient survey

14. Types of transfer

Types of Transfer

On the basis of purpose On the basis of unit

1. Production transfer 1. Sectional transfer

2. Replacement transfer 2. Departmental transfer
3. Shift transfer 3.inter – plan transfer
4. Remedial transfer
5. Versatility transfer
6. precautionary transfer

Unit – V Page 6
 15. Types/ methods of separation

Types of separation

Voluntary In voluntary

1. Resignation 1. Lay off

2. Retirement 2. Dismissal or discharge
3. Retrenchment
4. Voluntary retirement scheme
5. rightsizing/downsizing

16. Reasons for demotion

Unsuitability of employee to higher level job

Adverse business conditions
New technology and new methods of operation demand new and higher level skills
Employees are demoted on disciplinary grounds
Deteriorating health and capacity
Life style preference

17. Grievances redressed methods

Collective bargaining
Mediation
Concialidation
Arbitration
adjudication

Unit – V Page 7
Human Resource Management Question Answer Bank MBA-203

Q.1 What is Human Resource Management

Human Resource Management is a process, which consists of four main activities,
namely, acquisition, development, motivation, as well as maintenance of human
resources.

Scott, Clothier and Spriegel have defined Human Resource Management as that
branch of management which is responsible on a staff basis for concentrating on
those aspects of operations which are primarily concerned with the relationship of
management to employees and employees to employees and with the development of
the individual and the group.

Human Resource Management is responsible for maintaining good human

relations in the organization. It is also concerned with development of individuals and
achieving integration of goals of the organization and those of the individuals.

French Wendell, defines ―Human resource management as the recruitment,

selection, development, utilization, compensation and motivation of human resources
by the organization‖.

According to Edwin B. Flippo, ―Human resource management is the planning,

organizing, directing and controlling of the procurement, development, resources to
the end that individual and societal objectives are accomplished‖. This definition
reveals that human resource (HR) management is that aspect of management, which
deals with the planning, organizing, directing and controlling the personnel functions
of the enterprise.

Q.2 What is the nature of Human Resource Management?

The emergence of human resource management can be attributed to the writings

of the human relation thinkers who attached great significance to the human factor.
Lawrence Appley remarked,
the personnel department in discharging this responsibility.

The nature of the human resource management has been highlighted in its
following features :

1. Inherent Part of Management : Human resource management is inherent

in the process of management. This function is performed by all the managers
throughout the organization rather that by the personnel department only. If a
manager is to get the best of his people, he must undertake the basic responsibility of
selecting people who will work under him.

2. Pervasive Function : Human Resource Management is a pervasive function of

management. It is performed by all managers at various levels in the organization. It
is not a responsibility that a manager can leave completely to someone else. However,
he may secure advice and help in managing people from experts who have special
competence in personnel management and industrial relations.

3. Basic to all Functional Areas : Human Resource Management permeates

all the functional area of management such as production management, financial
management, and marketing management. That is every manager from top to bottom,
working in any department has to perform the personnel functions.

4. People Centered : Human Resource Management is people centered and is

relevant in all types of organizations. It is concerned with all categories of personnel
from top to the bottom of the organization. The broad classification of personnel in an
industrial enterprise may be as follows : (i) Blue-collar workers (i.e. those working on
machines and engaged in loading, unloading etc.) and white-collar workers (i.e.
clerical employees), (ii) Managerial and non-managerial personnel, (iii) Professionals
(such as Chartered Accountant, Company Secretary, Lawyer, etc.) and non-
professional personnel.

5. Personnel Activities or Functions : Human Resource Management involves

several functions concerned with the management of people at work. It includes
manpower planning, employment, placement, training, appraisal and compensation of
employees. For the performance of these activities efficiently, a separate department
known as Personnel Department is created in most of the organizations.

6. Continuous Process : Human Resource Management is not a ‗one shot‘

function. It must be performed continuously if the organizational objectives are to be
achieved smoothly.

7. Based on Human Relations : Human Resource Management is concerned

with the motivation of human resources in the organization. The human beings can‘t
be dealt with like physical factors of production. Every person has different needs,
perceptions and expectations. The managers should give due attention to these
factors. They require human relations skills to deal with the people at work. Human
relations skills are also required in training performance appraisal, transfer and
promotion of subordinates.

Personnel Management VS Human Resource Management :

Contemporary Human Resource Management, as a part and parcel of
management function, underscores strategic approach to management in areas of
acquisition, motivation, and management of people at work.
Q. 3 What are the objectives of HRM?

According to Scott, Clothier and Spriegal, ―The objectives of

Human Resource Management, in an organization, is to obtain maximum individual
development, desirable working relationships between employers and employees and
employees and employees, and to affect the moulding of human resources as
contrasted with physical resources‖.

The basic objective of human resource management is to contribute to the

realisation of the organizational goals. However, the specific objectives of human
resource management are as follows :
(i) To ensure effective utilisation of human resources, all other organizational
resources will be efficiently utilised by the human resources.
(ii) To establish and maintain an adequate organizational structure of relationship
among all the members of an organization by dividing of organization tasks into
functions, positions and jobs, and by defining clearly the responsibility,
accountability, authority for each job and its relation with other jobs in the
organization.
(iii) To generate maximum development of human resources within the organization
by offering opportunities for advancement to employees through training and
education.
(iv) To ensure respect for human beings by providing various services and welfare
facilities to the personnel.
(v) To ensure reconciliation of individual/group goals with those of the organization
in such a manner that the personnel feel a sense of commitment and loyalty
towards it.
(vi) To identify and satisfy the needs of individuals by offering various monetary and
non-monetary rewards.

In order to achieve the above objectives, human resource management undertakes the
following activities :
(i) Human Resource Planning, i.e., determining the number and kinds of personnel
required to fill various positions in the organization.
(ii) Recruitment, selection and placement of personnel, i.e., employment function.
(iii) Training and development of employees for their efficient performance and
growth.
(iv) Appraisal of performance of employees and taking corrective steps such as
transfer from one job to another.
(v) Motivation of workforce by providing financial incentives and avenues of
promotion.
(vi) Remuneration of employees. The employees must be given sufficient wages and
fringe benefits to achieve higher standard of living and to motivate them to show
higher productivity.
(vii) Social security and welfare of employees.

Q.4 Discuss the functions of human Resource Management with relevant

examples?.

The main functions of human resource management are classified into two categories:
(a) Managerial Functions and (b) Operative Functions

(a) Managerial Functions

Following are the managerial functions of Human Resources Management.

1. Planning : The planning function of human resource department pertains to

the steps taken in determining in advance personnel requirements, personnel
programmes, policies etc. After determining how many and what type of people are
required, a personnel manager has to devise ways and means to motivate them.

2. Organization : Under organization, the human resource manager has to

organise the operative functions by designing structure of relationship among jobs,
personnel and physical factors in such a way so as to have maximum contribution
towards organizational objectives. In this way a personnel manager performs
following functions :

(a) preparation of task force;

(b) allocation of work to individuals;
(c) integration of the efforts of the task force;
(d) coordination of work of individual with that of the department.

3. Directing : Directing is concerned with initiation of organised action and

stimulating the people to work. The personnel manager directs the activities of people
of the organization to get its function performed properly. A personnel manager
guides and motivates the staff of the organization to follow the path laid down in
advance.

4. Controlling : It provides basic data for establishing standards, makes job

analysis and performance appraisal, etc. All these techniques assist in effective
control of the qualities, time and efforts of workers.

(b) Operative Functions : The following are the Operative Functions of Human
Resource Management

1. Procurement of Personnel : It is concerned with the obtaining of the proper

kind and number of personnel necessary to accomplish organization goals. It deals
specifically with such subjects as the determination of manpower requirements, their
recruitment, selecting, placement and orientation, etc.
 2. Development of Personnel : Development has to do with the increase
through training, skill that is necessary for proper job performance. In this process
various techniques of training are used to develop the employees. Framing a sound
promotion policy, determination of the basis of promotion and making performance
appraisal are the elements of personnel development function.

3. Compensation to Personnel : Compensation means determination of

adequate and equitable remuneration of personnel for their contribution to
organization objectives. To determine the monetary compensation for various jobs is
one of the most difficult and important function of the personnel management. A
number of decisions are taken into the function, viz., job-evaluation, remuneration,
policy, inventive and premium plans, bonus policy and co-partnership, etc. It also
assists the organization for adopting the suitable wages and salaries, policy and
payment of wages and salaries in right time.

4. Maintaining Good Industrial Relation : Human Resource Management

covers a wide field. It is intended to reduce strifies, promote industrial peace, provide
fair deal to workers and establish industrial democracy. It the personnel manager is
unable to make harmonious relations between management and labour industrial
unrest will take place and millions of man-days will be lost. If labour management
relations are not good the moral and physical condition of the employee will suffer,
and it will be a loss to an organization vis-a-visa nation. Hence, the personnel
manager must create harmonious relations with the help of sufficient communication
system and co-partnership.

5. Record Keeping : In record-keeping the personnel manager collects and

maintains information concerned with the staff of the organization. It is essential for
every organization because it assists the management in decision making such as in
promotions.

6. Personnel Planning and Evaluation : Under this system different type of

activities are evaluated such as evaluation of performance, personnel policy of an
organization and its practices, personnel audit, morale, survey and performance
appraisal, etc.

Q.5 Describe the importance of HRM.

Human Resource Management has a place of great importance. According to

Peter F. Drucker, ―The proper or improper use of the different factors of
production depend on the wishes of the human resources. Hence, besides other
resources human resources need more development. Human resources can increase
cooperation but it needs proper and efficient management to guide it‖.

Importance of personnel management is in reality the importance of labour

functions of personnel department which are indispensable to the management
activity itself. Because of the following reasons human resource management holds a
place of importance.

1. It helps management in the preparation adoption and continuing evolution of

personnel programmes and policies.
2. It supplies skilled workers through scientific selection process.
3. It ensures maximum benefit out of the expenditure on training and development
and appreciates the human assets.
4. It prepares workers according to the changing needs of industry and
environment.
5. It motivates workers and upgrades them so as to enable them to accomplish the
organization goals.
6. Through innovation and experimentation in the fields of personnel, it helps in
reducing casts and helps in increasing productivity.
7. It contributes a lot in restoring the industrial harmony and healthy employer-
employee relations.
8. It establishes mechanism for the administration of personnel services that are
delegated to the personnel department.

Thus, the role of human resource management is very important in an

organization and it should not be undermined especially in large scale enterprises. It
is the key to the whole organization and related to all other activities of the
management i.e., marketing, production, finance etc.

Human Resource Management is concerned with the managing people as an

organizational resources rather than as factors of production. It involves a system to
be followed in business firm to recruit, select, hire, train and develop human assets. It
is concerned with the people dimension of an organization. The attainment of
organizational objectives depends, to a great extent, on the way in which people are
recruited, developed and utilized by the management. Therefore, proper co-ordination
of human efforts and effective utilization of human and others material resources is
necessary.

Q.6 What are the future Challenges before managers?

Because of continuous changing socio-economic, technological and political

conditions, the human resource managers of the future shall have to face more
problems in the management of labor. The human resource managers of today may
find themselves obsolete in the future due to changes in environment if they do not
update themselves some of the important challenges which might be faced by the
managers in the management of people in business and industry are discussed below :

1. Increasing Size of Workforce : The size of organizations is increasing. A

large number of multinational organizations have grown over the years. The number
of people working in the organization has also increased. The management of
increased workforce might create new problems and challenges as the workers are
becoming more conscious of their rights.

2. Increase in Education Level : The governments of various countries are

taking steps to eradicate illiteracy and increase the education level of their citizens.
Educated consumers and workers will create very tough task for the future managers.

3. Technological Advances : With the changes coming in the wake of advanced

technology, new jobs are created and many old jobs become redundant. There is a
general apprehension of immediate unemployment. In the competitive world of today,
industry cannot hope to survive for long with old technology. The problem, of
unemployment resulting from modernization will be solved by properly assessing
manpower needs and training of redundant employees in alternate skills.

4. Changes in Political Environment : There may be greater

Government‘s interference in business to safeguard the interests of workers,
consumers and the public at large. Government‘s participation in trade, commerce
and industry will also pose many challenges before management. The Government
may restrict the scope of private sector in certain areas in public interest. It does not
mean chances of co-operation between the Government and private sector are ruled
out. In fact, there will be more and more joint sector enterprises.

5. Increasing Aspirations of Employees : Considerable changes have been

noted in the worker of today in comparison to his counterpart of 1950s. The workers
are becoming more aware of their higher level needs and this awareness would
intensify further in the future workers.

6. Changing Psychosocial System : In future, organizations will be required to

make use of advanced technology in accomplishing their goals while satisfying
human needs. In the traditional bureaucratic model, the organizations were designed
to achieve technical functions with a little consideration given to the psychosocial
system. But future management would be required to ensure effective participation of
lower levels in the management of the organization system.

7. Computerized Information System : In the past, the automation of

manufacturing processes had a major effect upon the systems of production, storage,
handling and packaging, etc. More recently, there has been and in the future there will
be the impact of revolutionary computerised information system on management.
This revolutionary development would cover two primary areas of personnel
management which are as follows :

(a) The use of electronic computers for the collection and processing of data, and
(b) The direct application of computers in the managerial decision making process.

8. Mobility of Professional Personnel : Organizations will expand the use of

―boundary agents‖ whose primary function will be achieving coordination with the
environment. One interesting fact will be an increase in the mobility of various
managerial and professional personnel between organizations. As individuals develop
greater technical and professional expertise, their services will be in greater demand
by other organizations in the environment.

9. Changes in Legal Environment : Many changes are taking place in the legal
framework within which the industrial relations systems in the country are now
functioning. It is the duty of the human resource or personnel executive to be aware
of these changes and to bring about necessary adjustments within the organizations so
that greater utilisation of human resources can be achieved. This, indeed, is and
would remain a major challenge for the personnel executive.

10. Management of Human Relations : On the ‗industrial relations‘ front,

things are not showing much improvement even after so many efforts by the
government in this direction. Though a large number of factors are responsible for
industrial unrest but a very significant cause is the growth of multiunions in industrial
complexes having different political affiliations. Under the present conditions, it
appears that inter-union rivalries would grow more in the coming years and might
create more problems in the industry.

Management of human relations in the future will be more complicated than it is

today. Many of the new generation of employees will be more difficult to motivate
than their predecessors. This will be in part the result of a change in value systems
coupled with rising educational levels. Greater skepticism concerning large
organizations and less reverence for authority figures will be more common.
Unquestioning acceptance of rules and regulations will be less likely.

New Role of Human Resource Management

Human Resource Management in the ‗New Millenium‘ has undergone a great
revolution by questioning the accepted practices and re-inventing the organizations as
well as structures. Many traditional practices have been thrown out. As an example, it
can be seen that hierarchies are vanishing and there is greater emphasis on flat
organizations. It means a great deal of specialisation and skills. It also means
upgrading the norms and standards of work as well as performance.

The new role of human resource management is much more strategic than
before. Some of the new directions of the role of HRM can be summed up as follows
:

1. A Facilitator of Change : To carry people through upheaval requires the true

management of human resources.

2. An Integrated Approach to Management : Rather than being an isolated

function, human resource is regarded as a core activity, one which shapes a
company‘s values. In particular, this can have an impact on customer service.
 3. A Mediator : Establishing and balancing the new and emerging aspirations
and requirements of the company and the individual.

These changes, which are taking place, involve more commitment of the
organization to the development of people by improving performance and cutting
costs. As a result of this, the duration of tenure, which was traditionally long standing,
is now limited, future is becoming less certain, management opportunities are self-
determined and motivational factors are more concerned with enhancing future
employability rather than loyalty to the company and, at the same time, the rewards
are going up in terms of higher salaries. The future creative careers, will require more
involved approach to career development, which will include :

(i) Share employees with strategic partner organizations (customers of suppliers) in

lieu of internal moves.

(ii) Encourage independence : Employees may go elsewhere for career

development, possibly to return in a few years.

(iii) Fund-groups of employees to set-up as suppliers outside the organization.

(iv) Encourage employees to think of themselves as a business and of the

organization‘s various departments as customers.

(v) Encourage employees to develop customers outside the organization.

(vi) Help employees develop self-marketing, networking and consultancy skills to

enable them to search out, recognize or create new opportunities for both
themselves and the organization.

(vii) Identify skilled individuals in other organizations who can contribute on a

temporary project basis or part-time.

(viii) Regularly expose employees to new people and ideas to stimulate innovation.

(ix) Balance external recruitment at all levels against internal promotion to

encourage open competition, ―competitive tendering‖ for jobs to discourage
seeing positions as someone‘s territory which causes self-protective conformity.

(x) Foster more cross-functional teamwork for self-development.

(xi) Eliminate the culture of valuing positions as career goals in favour of portraying
a career as a succession of bigger projects, achievements and new skills learned.
The concept of
―position‖ is part of the outside static concept of the organization. Positions
are out. Processes and projects are in.

(xii) Abandon top-down performance appraisal in favour of self-appraisal based on

internal customer satisfaction surveys and assessing people as you would
suppliers.

(xiii) Replace top-down assessment processes with self-assessment techniques and

measure performance in term of results.

Functions of a Human Resource Manager

A human resource manager, charged with fulfilling the objectives of an
organization, should be a leader with high intellectual powers, a visionary and a
philosopher who provides the initiative to shape the future in terms of leading the
human beings in an organization towards more prosperous and progressive policies.

1. Human Resource Man as an Intellectual : The basic skill in the human

resource field as compared to technologists or financial experts is the skill to
communicate, articulate, understand and above all, to be an expert when it comes to
putting policies and agreements in black and white. The personnel man‘s skill lies in
his command over the language. A personnel man has to deal with employees and he
must possess the skills of conducting fruitful and systematic discussions and of
communicating effectively. He should also be in a position to formulate principles
and foresee the problems of the organization. This means that he would require the
mental ability to deal with his people in an intelligent manner as well as to understand
what they are trying to say..

2. Human Resource Man as an Educator : It is not enough that a human

resource man has command-over the language, which, however, remains his primary
tool. He should be deeply interested in learning and also in achieving growth.
Basically, human beings like to grow and realise their full potential. In order to
harmonise the growth of individuals with that of the organization, a personnel
administrator must not only provide opportunities for his employees to learn, get the
required training and assimilate new ideas but also he himself should be a teacher. A
personnel man who simply pushes files and attends labour courts for conciliation
purposes and other rituals of legal procedure for the settlement of industrial disputes
is not a personnel administrator of the future.

3. Human Resource Man as a Discriminator : A human resource

administrator must have the capacity to discriminate
between right and wrong, between that which is just and unjust and merit and non-
merit. In other words, he should be a good judge when he sits on a selection board, a
fair person when he advises on disciplinary matters and a good observer of right
conduct in an organization.

4. Human Resource Man as an Executive : The human resource man must

execute the decisions of the management and its policies with speed, accuracy and
objectivity. He has to streamline the office, tone up the administration and set
standards of performance. He has to coordinate the control functions in relation to the
various other divisions and, in doing so he should be in a position to bring unity of
purpose and direction in the activities of the personnel department. He must ask
relevant questions and not be merely involved in the office routine whereby the status
quo is maintained. He should have the inquisitiveness to find out causes of delay,
tardy work and wasteful practices, and should be keen to eliminate those activities
from the personnel functions which have either outlived their utility or are not
consistent with the objectives and purposes of the organization.

5. Human Resource Man as a Leader : Being basically concerned with

people or groups of people, and being placed in the group dynamics of various
political and social functions of an organization, a Human resource man must not
shirk the role of leadership in an organization. He, by setting his own example and by
working towards the objectives of sound personnel management practices, must
inspire his people and motivate them towards better performance. He should resolve
the conflicts of different groups and build up teamwork in the organization.

6. Human Resource Man as a Humanist : Deep faith in human values and

empathy with human problems, especially in less developed countries, are the sine
qua non for a Human resource man. He has to deal with people who toil at various
levels and partake of their joys and sorrows. He must perform his functions with
sensitivity and feeling.

7. Human Resource Man as a Visionary : While every leading function of an

organization must evolve its vision of the future, the primary responsibility for
developing the social organization towards purposive and progressive action fall on
the personnel man. He should be a thinker who sets the pace for policy-making in an
organization in the area of human relations and should gradually work out new
patterns of human relations management consistent with the needs of the organization
and the society. He must ponder on the social obligations of the enterprise, especially
if it is in the public sector, where one has to work within the framework of social
accountability. He should be in close touch
with socio-economic changes in the country. He should be able to reasonably forecast future
events and should constantly strive to meet the coming challenges.

Role and Challenges of Human Resource Manager

Human Resource (HR) Department is established in every organization under the charge of
an executive known as Human Resource Manager. This department plays an important role in
the efficient management of human resources. The human resource department gives assistance
and provides service to all other departments on personnel matters. Though personnel or human
resource manager is a staff officer in relation to other departments of the enterprise, he has a line
authority to get orders executed within his department. The human resource manager performs
managerial functions like planning, organizing, directing and controlling to manage his
department. He has also to perform certain operative functions like recruitment, selection,
training, placement, etc., which the other line managers may entrust to him. He is basically a
manager whatever may be the nature of his operative functions. The status of Human Resource
Manager in an organization depends upon the type of organization structure.

Role of Human Resource Manager in an Organization

In most of the big enterprises, human resource department is set up under the leadership of
personnel manager who has specialized knowledge and skills. The human resource manager
performs managerial as well as operative functions. Since he is a manager, he performs the basic
functions of management like planning, organizing, directing and controlling to manage his
department. He has also to perform certain operative functions of recruitment, selection, training,
placement, etc., which the problems to management, the human resource managers attach highest
priority to the settlement of industrial disputes than anything else.

The role of human resource management in industry is underlined by the complex and
dynamic nature of environment under which the modern large-scale industries function. The
impact of technology on organization structure, politicization of workers‘ unions, and the
growing consciousness of industrial employees about their rights and privileges, have made the
role of personnel management increasingly more important in industrial undertakings. The task
has also been facilitated by the greater recognition of the value of human resources in industry
and application of human resource development (HRD) techniques by the enlightened managers
in modern organizations.

Q.7 What do you mean by HRP?

Ans. Human Resource Planning (HRP)

Human Resource Planning (HRP) is the process of forecasting the future human resource
requirements of the organization and determining as to how the existing human resource
capacity of the organization can be utilized to fulfill these requirements. It, thus, focuses on
the basic economic concept of demand and supply in context to the human resource capacity of
the organization.
Q.8 What is the process of HRP?

Ans. It is the HRP process which helps the management of the organization in meeting the future
demand of human resource in the organization with the supply of the appropriate people in
appropriate numbers at the appropriate time and place. Further, it is only after proper analysis of
the HR requirements can the process of recruitment and selection be initiated by the
management. Also, HRP is essential in successfully achieving the strategies and objectives of
organization. In fact, with the element of strategies and long term objectives of the organization
being widely associated with human resource planning these days, HR Planning has now became
Strategic HR Planning.

Though, HR Planning may sound quite simple a process of managing the numbers in terms of
human resource requirement of the organization, yet, the actual activity may involve the HR
manager to face many roadblocks owing to the effect of the current workforce in the
organization, pressure to meet the business objectives and prevailing workforce market
condition. HR Planning, thus, help the organization in many ways as follows:

 HR managers are in a stage of anticipating the workforce requirements rather than getting
surprised by the change of events
 Prevent the business from falling into the trap of shifting workforce market, a common
concern among all industries and sectors
 Work proactively as the expansion in the workforce market is not always in conjunction
with the workforce requirement of the organization in terms of professional experience,
talent needs, skills, etc.
 Organizations in growth phase may face the challenge of meeting the need for critical set
of skills, competencies and talent to meet their strategic objectives so they can stand well-
prepared to meet the HR needs
 Considering the organizational goals, HR Planning allows the identification, selection
and development of required talent or competency within the organization.

It is, therefore, suitable on the part of the organization to opt for HR Planning to prevent any
unnecessary hurdles in its workforce needs. An HR Consulting Firm can provide the
organization with a comprehensive HR assessment and planning to meet its future requirements
in the most cost-effective and timely manner.

An HR Planning process simply involves the following four broad steps:

 Current HR Supply: Assessment of the current human resource availability in the

organization is the foremost step in HR Planning. It includes a comprehensive study of
the human resource strength of the organization in terms of numbers, skills, talents,
competencies, qualifications, experience, age, tenures, performance ratings, designations,
grades, compensations, benefits, etc. At this stage, the consultants may conduct extensive
interviews with the managers to understand the critical HR issues they face and
workforce capabilities they consider basic or crucial for various business processes.
 Future HR Demand: Analysis of the future workforce requirements of the business is
the second step in HR Planning. All the known HR variables like attrition, lay-offs,
 foreseeable vacancies, retirements, promotions, pre-set transfers, etc. are taken into
consideration while determining future HR demand. Further, certain unknown workforce
variables like competitive factors, resignations, abrupt transfers or dismissals are also
included in the scope of analysis.
 Demand Forecast: Next step is to match the current supply with the future demand of
HR, and create a demand forecast. Here, it is also essential to understand the business
strategy and objectives in the long run so that the workforce demand forecast is such that
it is aligned to the organizational goals.
 HR Sourcing Strategy and Implementation: After reviewing the gaps in the HR supply
and demand, the HR Consulting Firm develops plans to meet these gaps as per the
demand forecast created by them. This may include conducting communication programs
with employees, relocation, talent acquisition, recruitment and outsourcing, talent
management, training and coaching, and revision of policies. The plans are, then,
implemented taking into confidence the mangers so as to make the process of execution
smooth and efficient. Here, it is important to note that all the regulatory and legal
compliances are being followed by the consultants to prevent any untoward situation
coming from the employees.

Hence, a properly conducted process of HR Planning by an HR Consulting Firm helps the

organization in meeting its goals and objectives in timely manner with the right HR strength in
action.

Q.9 What is the concept of Recruitment?

Ans. Effect recruitment is the next big process after human resource planning is to develop
applicant polling called recruiting. The more application you have , the more selective you can
be in your hiring. If only two candidates apply for two openings , you can use techniques like
interviews and tests to screen out all but the best. Some employees use a recruiting yield
pyramid to calculate the number of applicants they must generate to hire the required number of
new employees. In the company knows it needs 50 new entry-level accountants next year then
they use this recruitment yield pyramid. It is a historical arithmetic relationships between
recruitment leads and invitees , invitees and interviews , interviews and offers made , and offers
made and offers accepted. Therefore for getting the 50 recruits the firm must generate 1,200
leads to be able to invite 200 viable candidates to its offices for interviews. The firm will then get
to interview about 150 of those invited and from these it will make 100 offers. Of those 100
offers , about 50 will accept. A effective recruitment is carried out by something called
recruitment policy which is derived from personnel policy of the same organization. Recruitment
practices vary from organization to organization , some follow centralized way such as
commercial banks and others such as railways follow decentralized process for various grade of
jobs.

Q. 10 What is the process of recruitment?

Ans. The recruitment process consists various steps:

Q. 11Discuss the different types of selection tests.

Selection can be defined as process of choosing the right person for the right job.

Types of selection test

Different selection test are adopted by different organization depending upon their requirements.
These tests are specialized test which have been scientifically tested and hence they are also
known as scientific test.

I. Aptitude test:-
Aptitude tests are test which assess the potential and ability of a candidate. It enables to find out
whether the candidate is suitable for the job. The job may be managerial technical or clerical.
The different types of aptitude test areas are:

a. Mental ability/mental intelligence test:-

This test is used to measure the overall intelligence and intellectual ability of the candidate to
deal with problems. It judges the decision making abilities.
b. Mechanical aptitude test :-
This test deals with the ability of the candidate to do mechanical work. It is used to judge and
measure the specialized knowledge and problem solving ability. It is used for technical and
maintenance staff.

c. Psycho motor test:-

This test judges the motor skills the hand and eye co- ordination and evaluates the ability to do
jobs lie packing, quality testing, quality inspection etc.

II. Intelligence test:-

This test measures the numerical skills and reasoning abilities of the candidates. Such abilities
become important in decision making. The test consists of logical reasoning ability, data
interpretation, comprehension skills and basic language skills.

III. Personality test :-

In this test the emotional ability or the emotional quotient is tested. This test judges the ability to
work in a group, inter personal skills, ability to understand and handle conflicts and judge
motivation levels. This test is becoming very popular now days.

IV. Performance test :-

This test judges and evaluates the acquired knowledge and experience of the knowledge and
experience of the individual and his speed and accuracy in performing a job. It is used to test
performance of typist, data entry operators etc.
Q. 12 What is HRIS?

Ans HRIS, which is also known as a human resource information system or human resource
management system (HRMS), is basically an intersection of human resources and information
technology through HR software. This allows HR activities and processes to occur electronically.

To put it another way, a HRIS may be viewed as a way, through software, for businesses big and
small to take care of a number of activities, including those related to human resources,
accounting, management, and payroll. A HRIS allows a company to plan its HR costs more
effectively, as well as to manage them and control them without needing to allocate too many
resources toward them.

In most situations, a HRIS will also lead to increases in efficiency when it comes to making
decisions in HR. The decisions made should also increase in quality—and as a result, the
productivity of both employees and managers should increase and become more effective.
Q. 13 What is the importance of HRIS Systems?

There are a number of solutions offered to a company that adopts a HRIS. Some of these include
solutions in training, payroll, HR, compliance, and recruiting. The majority of quality HRIS
systems include flexible designs that feature databases that are integrated with a wide range of
features available. Ideally, they will also include the ability to create reports and analyze
information quickly and accurately, in order to make the workforce easier to manage.

Through the efficiency advantages conferred by HRIS systems, a HR administrator can obtain
many hours of his or her day back instead of spending these hours dealing with non-strategic,
mundane tasks required to run the administrative-side of HR.

Similarly, a HRIS allows employees to exchange information with greater ease and without the
need for paper through the provision of a single location for announcements, external web links,
and company policies. This location is designed to be centralized and accessed easily from
anywhere within the company, which also serves to reduce redundancy within the organization.

For example, when employees wish to complete frequently recurring activities such as requests
for time off or electronic pay stubs and changes in W-4 forms—such procedures can be taken
care of in an automated fashion without the need for human supervision or intervention. As a
result, less paperwork occurs and approvals, when deigned, may be appropriated more efficiently
and in less time.

HR and Payroll Factors

When a company invests in an affordable HRIS, it suddenly becomes capable of handling its
workforce by looking at two of the primary components: that of payroll and that of HR. Beyond
these software solutions, companies also invest in HRIS modules that help them put the full
productivity of their workforce to use, including the varied experiences, talents, and skills of all
staff within the enterprise.

HRIS Popular Modules

A range of popular modules are available, including those for recruiting, such as resume and
applicant management, attendance, email alerts, employee self-service, organizational charts, the
administration of benefits, succession planning, rapid report production, and tracking of
employee training.

In conclusion, it is important to choose the right HRIS. A company that takes the time to invest
in a HRIS that fits their goals, objectives, mission, and values, is a company that is investing in
its future and in its success. It will be necessary to customize any HRIS to the unique needs of a
company so the system will remain flexible and relevant throughout the life of the company or
enterprise.
Q. 14 What is strategic HRM?

Ans Strategic human resource management is a complex process which is constantly evolving
and being studied and discussed by academics and commentators. Strategic Human Resource
Management (SHRM) is an area that continues to evoke a lot of debate as to what it actually
embraces. Definitions range from 'a human resource system that is tailored to the demands of the
business strategy' (Miles and Snow 1984) to 'the pattern of planned human resource activities
intended to enable an organization to achieve its goals' (Wright and McMahan 1992).

Strategic human resource management (SHRM) is a concept that integrates traditional human
resource management activities within a firm's overall strategic planning and implementation.
SHRM integrates human resource considerations with other physical, financial, and
technological resources in the setting of goals and solving complex organizational problems
(Legnick-Hall & Legnick-Hall, 1988) SHRM also emphasizes the implementation of a set of
policies and practices that will build employee pool of skills, knowledge, and abilities (Jackon
and Schulerm 1995) that are relevant to organizational goals. Thus a larger variety and more
complete set of solutions for solving organizational problems are provided and the likelihood
that business goals of the organization will be attained is increased (Mechelin, 1996).

Strategic Human Resource Management (SHRM) is an area that continues to evoke a lot of
debate as to what it actually embraces. Definitions range from 'a human resource system that is
tailored to the demands of the business strategy' (Miles and Snow 1984) to 'the pattern of
planned human resource activities intended to enable an organization to achieve its goals'
(Wright and McMahan 1992). Although the difference between these two seems subtle, the
implications of the difference are considerable. Where in the first definition human resource
management is a 'reactive' management field in which human resource management becomes a
tool to implement strategy, in the latter definition it has a proactive function in which human
resource activities actually create and shape the business strategy (Sanz-Valle et al. 1999).

Strategic HRM can be regarded as a general approach to the strategic management of human
resources in accordance with the intentions of the organization on the future direction it wants to
take. It is concerned with longer-term people issues and macro-concerns about structure, quality,
culture, values, commitment and matching resources to future need. It has been defined as:

All those activities affecting the behavior of individuals in their efforts to formulate and
implement the strategic needs of business. (SCHULER, R.S., 1992)

The pattern of planned human resource deployments and activities intended to enable the forms
to achieve its goals. (WRIGHT, P.M. and MCMAHAN, G.C. (1992)

Q. 15 What are the approaches of the SHRM?

o attempts to link Human Resource activities with competency based performance

measures
o attempts to link Human Resource activities with business surpluses or profit
These to approaches indicate two factors in an organizational setting. The first one is the human
factor, their performance and competency and the later is the business surplus. An approach of
people concern is based on the belief that human resources are uniquely important in sustained
business success. An organization gains competitive advantage by using its people effectively,
drawing on their expertise and ingenuity to meet clearly defined objectives. Integration of the
business surplus to the human competency and performance required adequate strategies. Here
the role of strategy comes into picture. The way in which people are managed, motivated and
deployed, and the availability of skills and knowledge will all shape the business strategy. The
strategic orinetation of the business then requires the effective orinetation of human resource to
competency and performance excellance.

Q 16 Discuss the Benefits and barriers to SHRM

1. Identifying and analyzing external opportunities and threats that may be crucial to the
company's success.
2. Provides a clear business strategy and vision for the future.
3. To supply competitive intelligence that may be useful in the strategic planning process.
4. To recruit, retain and motivate people.
5. To develop and retain of highly competent people.
6. To ensure that people development issues are addressed systematically.
7. To supply information regarding the company's internal strengths and weaknesses.
8. To meet the expectations of the customers effectively.
9. To ensure high productivity.
10. To ensure business surplus thorough comopetency

Barriers of SHRM

Barriers to successful SHRM implementation are complex. The main reason is a lack of growth
strategy or failure to implement one. Other major barriers are summarized as follows:

1. Inducing the vision and mission of the change effort.

2. High resistance due to lack of cooperation from the bottom line.
3. Interdepartmental conflict.
4. The commitment of the entire senior management team.
5. Plans that integrate internal resource with external requirements.
6. Limited time, money and the resources.
7. The statusquo approach of employees.
8. Fear of incomopetency of senior level managers to take up strategic steps.
9. Diverse work-force with competitive skill sets.
10. Fear towards victimisation in the wake of failtures.
11. Improper strategic assignments and leadership conflict over authority.
12. Ramifications for power relations.
13. Vulnerability to legislative changes.
14. Resistance that comes through the legitimate labour institutions.
15. Presence of an active labour union.
16. Rapid structural changes.
17. Economic and market pressures influenced the adoption of strategic HRM.
18. More diverse, outward looking approach.

Q. 17 What is the concept of performance appraisal?

Performance appraisal

Ans. Performance appraisal is defined by Wayne Cascio as “the systematic description of

employee’s job relevant, strength, weakness.
Performance appraisal may be conducted once in every 6 months or once in a year. The basic
idea of the appraisal is to evaluate the performance of the employee, giving him a feed back.
Identify areas where improvement is required so that training can be provided. Give incentives
and bonus to encourage employees etc.

Q. 18 Discuss the Traditional methods of performance appraisal in detail?

Ans Performance appraisal is defined by Wayne Cascio as “the systematic description of

employee’s job relevant, strength, weakness.
Companies use different methods of appraisal for identifying and appraising the skills and
qualities of their employees. The different methods used can be explained with the help of
following diagram.

Methods of performance appraisal

Traditional method Modern method

1. Check list method
2. Confidential report
3. Critical incident method
4. Ranking method
5. Graphic rating scale
6. Narrated essay
7. 360* Appraisal

Traditional method
Traditional method of performance appraisal has been used by companies for very long time. A
common feature of these methods is they are all relatively simple and involve appraisal by one
senior.

1. Check list method :-

In this method the senior, the boss is given a list of questions about the junior. These questions
are followed by check boxes. The superior has to put a tick mark in any one of the boxes
This method can be explained with the following eg.

Does the employee have leadership qualities?

YN
Is the employee capable of group efforts?
YN
As seen in the above eg. A questioner containing questions is given to the senior. This method is
an extremely simple method and does not involve a lot of time. The same set of questioners can
be given foe every employee so that there is uniformity in selecting employee.

2. Confidential report :-
This method is very popular in government departments to appraise IAS officers and other high
level officials. In this method the senior or the boss writes a report about the junior giving him
details about the performance about the employee. The +ve and – ve traits, responsibilities
handled on the job and recommendations for future incentives or promotions. The report is kept
highly confidential and access to the report is limited.

3. Critical incident method :-

In this method critical or important incidents which have taken place on this job are noted down
along with employee’s behavior and reaction in all these situations. Both +ve and –ve incidents
are mentioned. This is followed by an analysis of the person, his abilities and talent,
recommendations for the future incentives and promotions.

4. Ranking method :-
In this method ranks are given to employees based on their performance. There are different
methods of ranking employees.

Simple ranking method

Alternate ranking method
Paired comparison method

i. Simple ranking method :-

Simple ranking method refers to ranks in serial order from the best employee eg. If we have to
rank 10 best employees we start with the first best employee and give him the first rank this is
followed by the 2nd best and so on until all 10 have been given ranks.

ii. Alternate ranking :-

In this method the serial alternates between the best and the worst employee. The best employee
is given rank 1 and then we move to the worst employee and give him rank 10 again to 2nd best
employee and give him rank 2 and so on.

iii. Paired comparison :-

In this method each and every person is the group, department or team is compared with every
other person in the team/group/department. The comparison is made on certain criteria and
finally ranks are given. This method is superior because it compares each and every person on
certain qualities and provides a ranking on that basis.

5. Graphic rating scale :-

Graphic rating scale refers to using specific factors to appraise people. The entire appraisal is
presented in the form of a chart. The chart contains certain columns which indicate qualities
which are being appraised and other columns which specify the rank to be given.

Eg. Employee A
Quality of work Quantity of work Intelligence
Excellent
Very good
good
satisfactory
poor

The senior has to put a tick mark for a particular quality along with the ranking. Such charts are
prepared for every employee. According to the department in which they work. Sometimes the
qualities which are judged may change depending upon the department.

6. Narrated essay :-
In this method the senior or the boss is supposed to write a narrative essay describing the
qualities of his junior. He may describe the employees strength and weakness, analytical abilities
etc. the narrative essay ends with a recommendation for future promotion or for future
incentives.

Q. 19 What are various Modern methods of performance appraisal?

Ans. Modern methods of appraisal are being increasingly used by companies. Now days one of
the striving feature that appraisal involves is, the opinion of many people about the employee and
in some cases psychological test are used to analyze the ability of employee. These methods are
as follows

1. Role analysis :-
In this method of appraisal the person who is being apprised is called the focal point and the
members of his group who are appraising him are called role set members.
These role set members identify key result areas (KRA 2 marks) (areas where you want
improvement are called KRA) which have to be achieved by the employee. The KRA and their
improvement will determine the amount of incentives and benefits which the employee will
receive in future. The appraisal depends upon what role set members have to say about the
employee.

2. Assessment centers :-
Assessment centers (AC) are places where the employee’s are assessed on certain qualities
talents and skills which they possess. This method is used for selection as well as for appraisal.
The people who attend assessment centers are given management games, psychological test,
puzzles, questioners about different management related situations etc. based on their
performance in these test an games appraisal is done.

3. Management by objective :-
This method was given by Petter Druckard in 1974. It was intended to be a method of group
decision making. It can be use for performance appraisal also. In this method all members of the
of the department starting from the lowest level employee to the highest level employee together
discus, fix target goals to be achieved, plan for achieving these goals and work together to
achieve them. The seniors in the department get an opportunity to observe their junior- group
efforts, communication skills, knowledge levels, interest levels etc. based on this appraisal is
done.

4. Behavioral anchored rating scale :-

In this method the appraisal is done to test the attitude of the employee towards his job. Normally
people with +ve approach or attitude view and perform their job differently as compared to
people with a –ve approach.

5. Psychological testing :-
In this method clinically approved psychological test are conducted to identify and appraise the
employee. A feedback is given to the employee and areas of improvement are identified.

6. Human resource audit/accounting :-

In this method the expenditure on the employee is compared with the income received due to the
efforts of the employee. A comparison is made to find out the utility of the employee to the
organization. The appraisal informs the employee about his contribution to the company and
what is expected in future.

7. 360* appraisal :-
In this method of appraisal and all round approach is adopted. Feedback about the employee is
taken from the employee himself, his superiors, his juniors, his colleagues, customers he deals
with, financial institutions and other people he deals with etc. Based on all these observations an
appraisal is made and feedback is given. This is one of the most popular methods.

Process of performance appraisal

Performance appraisal is defined by Wayne Cascio as “the systematic description of employee’s
job relevant, strength, weakness.
Process of performance appraisal followed by different companies is different. A general
procedure is explained below with the help of a diagram.

Q. 20 Discuss the process of performance appraisal?

Ans The process consists various steps:

Setting performance standards

Communicating standards set to the employee
Measuring performance
Comparing performance with standard
Discussing result
Collective action
Implementation and review

1. Setting performance standards :-

 In this very first step in performance appraisal the HR department decides the standards
of performance i.e. they decide what exactly is expected from the employee for each and
every job. Sometimes certain marking scheme may be adopted eg. A score 90/100 =
excellent performance, a score os 80/100 = good. And so on.

2. Communication standard set to the employee :-

Standards of performance appraisal decided in 1st step are now conveyed to the
employee so that the employee will know what is expected from him and will be able to
improve his performance.

3. Measuring performance :-
The performance of the employee is now measure by the HR department, different
methods can be used to measure performance i.e. traditional and modern method. The
method used depends upon the company’s convenience.

4. Comparing performance with standard :-

The performance of the employee is now judged against the standard. To understand the
score achieved by him. Accordingly we come to know which category of performance
the employee falls into i.e. excellent, very good, good, satisfactory etc.

5. Discussing result :-
The results obtained by the employee after performance appraisal are informed or
conveyed to him by the HR department. A feedback is given to the employee asking him
to change certain aspects of his performance and improve them.

6. Collective action :-
The employee is given a chance or opportunity to improve himself in the areas specified
by the HR department. The HR department constantly receives or keeps a check on the
employee’s performance and notes down improvements in performance.

7. Implementation and review :-

The performance appraisal policy is to be implemented on a regular basis. A review must
be done from time to time to check whether any change in policy is required. Necessary
changes are made from time to time.

Q. 21 Narrate various limitations of performance appraisal system?

Ans Performance appraisal is defined by Wayne Cascio as “the systematic description of

employee’s job relevant, strength, weakness.
The following are the limitations of performance appraisal

1. Halo effect :-
In this case the superior appraises the person on certain positive qualities only. The negative
traits are not considered. Such an appraisal will no give a true picture about the employee. And
in some cases employees who do not deserve promotions may get it.
2. Horn effect :-
In this case only the negative qualities of the employee are considered and based on this
appraisal is done. This again will not help the organization because such appraisal may not
present a true picture about the employee.

3. Central tendency :-
In this case the superior gives an appraisal by giving central values. This prevents a really
talented employee from getting promotions he deserves and some employees who do not deserve
any thing may get promotion.

4. Leniency and strictness :-

Some bosses are lenient in grading their employees while some are very strict. Employee who
really deserves promotions may loose the opportunity due to strict bosses while those who may
not deserve may get benefits due to lenient boss.

5. Spill over effect :-

In this case the employee is judged +vely or –vely by the boss depending upon the past
performance. Therefore although the employee may have improved performance, he may still
not get the benefit.

6. Fear of loosing subordinates and spoiling relations :-

Many bosses do not wish to spoil their relations with their subordinates. Therefore when they
appraise the employee they may end up giving higher grades which are not required. This is a n
injustice to really deserving employees.

7. Goodwill and techniques to be used :-

Sometimes a very strict appraisal may affect the goodwill between senior and junior. Similarly
when different departments in the same company use different methods of appraisal it becomes
very difficult to compare employees.

8. Paper work and personal biased :-

Appraisal involves a lot of paper work. Due to this the work load of HR department increases.
Personal bias and prejudice result in bosses favoring certain people and not favoring others.

Q. 22 What is the importance of performance appraisal system?

Ans. Performance appraisal is defined by Wayne Cascio as “the systematic description of

employee’s job relevant, strength, weakness.

1. Feedback to the employee :-

Performance appraisal is beneficial because it provides feedback to the employee about his
performance. It identifies the areas for improvement so that employee can improve itself.

2. Training and development :-

Due to performance appraisal it is easy to understand what type of training is required for each
employee to improve himself accordingly training programs can be arranged.
3. Helps to decide promotion :-
Performance appraisal provides a report about the employee. Based on this report future
promotions are decided, incentives, salary increase is decided.

4. Validation of selection process :-

Through performance appraisal the HR department can identify whether any changes are
required in the selection process of the company normally a sound selection process results in
better performance and positive appraisal.

5. Deciding transfers and lay off of the worker :-

Employee with specific talent can be transferred to places where their talents are utilized
properly; similarly decisions regarding termination of employees depend upon performance
appraisal reports.

6. Human resource planning and career development:-

Companies can plan for future vacancies at higher levels based on performance appraisal reports.
Similarly career planning can be done for the employee on the performance appraisal report.

References:
1. ASWATHAPA, K. 2013. Human Resource Management. Tata McGraw Hill, 2013.
2. DESSLER, Gary. 2004. Human Resource Management. Prentice Hall,2004.
3. FRENCH, WENDELL. L. 2006. Human Resource Management. Houghton Mifflin,2006
4. SUBBA RAO, P. 2009. Personnel and Human Resource Management. Himalaya
Publishing House, 2009.