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BBA FOURTH YEAR SEVEN SEMESTER EXAMINATION, 2012

Human Resource Management
Part A-Short Question

1. “Human Resource Management is becoming more challenging task for an

organization.”- Explain, why ?
2. Briefly explain the human resources activities. Among these which one do you think
most important? Why?
3. Show the differences between Recruitment and Selection.
4. (a)What is interview and what are its various administration methods?
(b). Explain any five pitfalls of interview that distort the purpose of interviewing.
5. How can you design benefit structure for your workforce? Discuss the process.
6. What factors will you consider in establishing a sound pay administration in your
organization?
7. What is human resource planning? State the human resource planning process in
nutshell.

Part B-Broad Question

8. (a) Define Job analysis by explaining its multifaceted natures.

(b). Explain the steps of job analysis in detail by giving an example.
9. (a). “Where requirement ends selection starts”-explain?
(b). Explain different sources of requirement.
10. (a) What do you understand by career?
(b) Explain different traditional career stage.
11. (a) What is employee training? Discuss various methods og performance?
(b) Explain different off the job training.
12. (a) What is performance appraisal? Discuss the methods of performance appraisal.
(b) What are the distortions generally occurred in the phase of performance
appraisal?- explain.
13. (a) Discuss the importance of wage and salary administration in human resource
management.
(b) Discuss various methods of setting pay.
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1.“Human Resource Management is becoming more challenging task for

an organization.”- Explain, why ?

Challenges of problems of HRM of Bangladesh : There are three types of HRM of

Bangladesh .These are follows –

External Challenges: Common sources of external challenge to the human resource

department include –

1. Workplace diversity: The diversity of national origins there is an even wider

diversity of culture, religions, languages and dialects, educational attainment,
skill, values, ages, races, genders, and other differentiating variables.
(a) Culture and attitudinal diversity;
(b) Diversity through immigration and migration;
(c) Diversity and professional .
2. Technological challenges: Technological challenges is the capabilities of artificial
intelligence give people and machines greater problem-solving powers, jobs and
skills they require will change dramatically, affecting the employment , training,
development, compensation, and employee relation activities of the HRM.
3. Economic challenges: Economic challenges become more intense because of
robots, artificial intelligence, or foreign competition, HR professionals will need
to find more innovative ways to help line managers increase productivity through
people.
4. Government Challenges: Government involvement in the employment
relationship is meant to achieve societal objectives – usually the elimination of
practices that are considered contrary to public policy.

Internal challenges: Managers and HR departments are faced with several in internal
challenges from –

1. Unions: In companies with unions , the employer and the union sign a labor
agreement that species compensation ( wages and benefits), hours , and working
conditions.
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2. Information system: Managers and departments require large amount of detailed

information. Increasingly, the quality of HR decisions depends on the quality of
information.
3. Organizational Culture and conflicts: Organizational Culture is the product of all
the organization’s features: it’s people , it’s successes, and it’s failures.
Organizational Culture reflects the past and shapes the future.

Professional challenges: Professionalism is another challenge to HR management. MRM

skills are too important to organizations and society to be ignored. External and internal
challenges require practitioners who are at least minimally qualified.
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2. Briefly explain the human resources activities. Among these which one
do you think most important? Why?

The core roles of a human resources professional are grouped into four broad roles whose
duties must be carried out: a strategic partner to the organization, an administrative expert, a
change agent, and an employee champion.

Strategic Partner: As a strategic partner, the HR professional must be able to partner

with the organization in developing plans that will align the firm’s human resources
with its long term corporate goals and vision. He or she should be able to contribute to
business strategy development by aligning HR jobs with strategic goals, and provide
tools and create an enabling environment or actualize these goals.

Administrative Expert: As an administrative expert, the HR professional is expected

to carry out administrative duties like providing the tools needed for the organization
to operate successfully. He or she should be able to manage the overall labor costs in
the organization and plan for administrative budgets.

Change Agent: As a change agent, the HR professional should be able to find new
ways of doing things that can move the company forward. He or she should be able to
convince management of the need for the change and address employees about
changes. He or she should coordinate and facilitate the change process, and provide
the tools and structures needed during the change period.

Employee Champion: As an employee champion, the HR professional should be

able to manage the staff selection, recruitment, training; development, career
planning, performance management, succession planning, and retention exercises. He
or she is responsible for determining the firm’s long-term human resources needs,
assessing current resources, and determining areas where change is needed.
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3. Show the differences between Recruitment and Selection.

Differences between Recruitment and Selection: There are some points of distinction
between recruitment and selection. Through these points we can have clear knowledge about
real meaning and their area of operations. These points of distinction are shown in the
following table –

Recruitment Selection
1. It is the process of finding and 1. It is the process of short-listing
attracting qualified applicants for candidates, assembling and their
the job. final hiring decisions.
2. It is the initial process. 2. It is the final process.

3. It begins when new recruits are 3. It begins after the applicants are
sought and ends when their received and ends when hiring
applicants are received. decision is made.
4. Generally, lower levels managers’ 4. Mid and top level managers’ deals
deals with recruitment process. with selection process.
5. This process invites the applicants 5. This process tells ‘bye’ to most of
by saying “come”. the applicants.

6. The process of the Recruitment is 6. The process of selection is a

positive approach. negative approach.

4.(a)What is interview and what are its various administration methods?

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Interview: Interview is somewhat formal discussion between a hirer and an applicant or

candidate, typically in person, in which information is exchanged, with the intention of
establishing the applicant’s suitability for a position. It is a private meeting between people
when questions are asked and answered. The person who answers the questions of an
interview is called the interviewer. The person who asks the questions of our interview is
called an interviewer.

According to Gary Dessler, “An interview is a procedure designed to obtain

information of person’s oral response to oral inquiries.”

According to Thill and Bovee, “An Interview is any planned conversation with a
specific purpose involving two or more people.”

According to Dr. S.M. Amunuzzaman, “Interview is a very systematic method by

which a person enters deeply into the life of even a stranger and can bring out
needed.”

Administration methods: followings are the administration methods of interview:

1. Unstructured interviews: An unstructured interview allows employment

specialists to develop questions as the interview proceeds. The interviewer goes
into topic areas as they arise, trying to simulate a friendly conversation.
2. Structured interviews: Structured, or directive, interviews relay on a
predetermined set of question. The questions are developed before the interview
begins and are asked of every applicant, as in the computerized approach used by
bankers.
3. Mixed interviews: Interviewers typically use a blend of structured and
unstructured questions. The structured questions provide a base of information
that allows comparisons between candidates; the unstructured questions make the
interview more conversational and permit greater insights into the unique
difference between applicants.
4. Behavioral interviewing: Behavioral interviewing focuses on a problem or a
hypothetical situation that the applicant is asked to solve. Often those are
hypothetical situations, and the applicant is asked what should be done. Both the
answer and the approach are evaluated.
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5. Stress interviews: Stress interviews attempt to learn how the applicant will
respond to job pressures. Originally developed World War II to see how selected
recruits might react under stress behind enemy lines, these interviews have useful
applications in civilian employment.
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(b) Explain any five pitfalls of interview that distort the purpose of
interviewing.

The five biggest interview Pitfalls:

1. Asking hokey questions about ridiculous topics: ‘’ Which color would you be if
you were an M&M? And why?” might feel creative and even deep to some, but the
odds of you learning something that will help you to determine whether this candidate
is likely to grow in their job, reach and exceed their goals, and consistently replicate
their success over time are pretty slim. Don’t waste their time or yours with questions
like that.

2. Failing to spend time preparing for the interview: Even with the best intentions
most hiring managers don’t take enough time to get ready for their interviews.
Especially if their short-handed and balancing more on their plate than they normally
do! Instead they pull out the resume right before the candidate arrives and proceed to
fly by the seat of their pants, asking questions about resume items that look
interesting.

3. Personal preferences: As humans we tend to like people who share our personal
preferences and interest, such as music, sports, television shows, lifestyle choices and
other behavior the aren’t relevant to the job.

4. Allowing glare to interfere with objectivity: If the candidate attended your alma
matter, shares an interest in one of your hobbies, or just return from your favorite
vacation spot, it is much more difficult to get an unbiased read of their potential.

5. Trying to cover too much ground during one interview : In an effort to get to know
the candidate better, hiring managers often toss a wide variety of questions at them in
one sitting. They ask questions about skills, experience, goals, personality,
preferences, resume highlights and past failures instead of taking the narrow at deep
approach that would have provided great inside. They may leave with lots of notes,
but little of value.
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5.How can you design benefit structure for your workforce? Discuss the
process.

Benefit structure for workforce can be designed in following ways:

i. Guaranteed pay: The basic element of guaranteed pay is the basic salary, paid
based on hourly, daily, weekly, by weekly or monthly rate.
Many countries decade the minimum base salary by stipulating a minimum wage.
Individual skills and the level of experience of employees give rise to
differentiation in income levels within the job-based pay structure.

ii. Variable pay: Variable pay is contingent in discretion, employee performance or

results achieved. There are different types of variable-pay plans, such as bonus
schemes, sales incentives and overtime pay.

iii. Benefits: There is a wide variety of employee benefits, such as paid time off,
different types of insurance, pension plans and company car. Many countries
dictate different minimum benefits, such as minimum paid time off, employer’s
pension contribution, and sick pay.

iv. Equity-based compensation: Equity-based compensation is a compensation plan

that uses the employer’s shares as employee compensation. The most common
form of is stock options.
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6.What factors will you consider in establishing a sound pay administration

in your organization?

The following factors should be taken into consideration in determining wage and salary
structure of workers:

1. Ability to Pay: The ability of an industry to pay will influence wage rate to be
paid, if the concern is running into losses, then it may not be able to pay higher
wage rates. A profitable enterprise may pay more to attract good workers. During
the period of prosperity, workers are paid higher wages because management
wants to share the profits with labor.

2. Demand and Supply: The labor market conditions or demand and supply forces
to operate at the national and local levels and determine the wage rates. When the
demand for a particular type of skilled labor is more and supply is less than the
wages will be more. One the other hand, if supply is more demand on the other
hand, is less then persons will be available at lower wage rates also. According to
Mescon,” the supply and demand compensation criterion is very closely related to
the prevailing pay comparable wage and on-going wage concepts since, in essence
to all these remuneration standards are determined by immediate market forces
and factors.

3. Prevailing Market Rates: No enterprise can ignore prevailing wage rates. The
wage rates paid in the industry or other concerns at the same place will form a
base for fixing wage rates. If a unit or concern pays low rates then workers leave
their jobs whenever they get a job somewhere else. It will not be possible to retain
good workers for long periods.

4. Cost of Living: In many industries wages are linked to enterprise cost of living
which ensures a fair wage to workers. The wage rates are directly influenced by
cost of living of a place. The workers will accept a wage which may ensure them a
minimum standard of living. Wages will also be adjusted according to price index
number. The increase in price index will erode the purchasing power of workers
and they will demand higher wages. When the prices are stable, then frequent
wage increases may not be required.

5. Bargaining of Trade Unions: The wage rates are also influenced by the
bargaining power of trade unions. Stronger the trade union, higher will be the
wage rates. The strength of a trade union is judged by its membership, financial
position and type of leadership.
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6. Productivity: Productivity is the contribution of the workers in order to increase

output. It also measures the contribution of other factors of production like
machines, materials, and management. Wage increase is sometimes associated
with increase in productivity. Workers may also be offered additional bonus, etc.,
if productivity increases beyond a certain level. It is common practice to issue
productivity bonus in industrial units.

7. Government legislation: To improve the working conditions of workers,

government may pass a legislation for fixing minimum wages of workers. This
may ensure them, a minimum level of living. In under developed countries
bargaining power of labor is weak and employers try to exploit workers by paying
them low wages. In India, Minimum Wages Act, 1948 was passed empower
government to fix minimum wages of workers. Similarly, many other important
legislations passed by government help to improve the wage structure.

8. Cost of Training: In determining, the wages of the workers, in different

occupations, allowances must be made for all the exercises incurred on training
and time devoted for it.
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7. What is human resource planning? State the human resource planning

process in nutshell.

Human Resource Planning: The Human Resource Planning is a process of forecasting the

organization’s demand for and supply of manpower needs in the near future.

Human Resource Planning Process:

Determining the Objectives of Human Resource Planning: The foremost step in every
process is the determination of the objectives for which the process is to be carried on. The
objective for which the manpower planning is to be done should be defined precisely, so as to
ensure that a right number of people for the right kind of job are selected. The objectives can
vary across the several departments in the organization such as the personnel demand may
differ in marketing, finance, production, HR department, based on their roles or functions.

Analyzing Current Manpower Inventory: The next step is to analyze the current

manpower supply in the organization through the stored information about the employees in
terms of their experience, proficiency, skills, etc. required to perform a particular job. Also,
the future vacancies can be estimated, so as to plan for the manpower from both the internal
(within the current employees) and the external (hiring candidates from outside) sources.
Thus, it is to be ensured that reservoir of talent is maintained to meet any vacancy arising in
the near future.

Forecasting Demand and Supply of Human Resources: Once the inventory of talented

manpower is maintained; the next step is to match the demand for the manpower arising in
the future with the supply or available resources with the organization. Here, the required
skills of personnel for a particular job are matched with the job description and specification.

Analyzing the Manpower Gaps: After forecasting the demand and supply, the manpower
gaps can be easily evaluated. In case the demand is more than the supply of human resources,
that means there is a deficit, and thus, new candidates are to be hired.

Whereas, if the Demand is less than supply, there arises a surplus in the human resources, and
hence, the employees have to be removed either in the form of termination, retirement, layoff,
transfer, etc.

Employment Plan/Action Plan: Once the manpower gaps are evaluated, the action plan is to
be formulated accordingly. In a case of a deficit, the firm may go either for recruitment,
training, interdepartmental transfer plans whereas in the case of a surplus, the voluntary
retirement schemes, redeployment, transfer, layoff, could be followed.

Training and Development: The training is not only for the new joiners but also for the
existing employees who are required to update their skills from time to time. After the
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employment plan, the training programs are conducted to equip the new employees as well as
the old ones with the requisite skills to be performed on a particular job.

Appraisal of Manpower Planning: Finally, the effectiveness of the manpower planning

process is to be evaluated. Here the human resource plan is compared with its actual
implementation to ensure the availability of a number of employees for several jobs. At this
stage, the firm has to decide the success of the plan and control the deficiencies, if any. Thus,
human resource planning is a continuous process that begins with the objectives of Human
Resource planning and ends with the appraisal or feedback and control of the planning
process.
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8.(a) Define Job analysis by explaining its multifaceted natures.

A job analysis is the process used to collect information about duties, responsibilities,
necessary skills, outcomes, and work environment of a particular job. You need as much data
as possible to put together a job description, which is the frequent outcome of the job
analysis. Job analysis is a family of procedures to identify the content of a job in terms of
activities involved and attributes or job requirements needed to perform the activities. Job
analysis provides information to organizations which helps to determine which employees are
best fit for specific jobs. Through job analysis, the analyst needs to understand what the
important tasks of the job are, how they are carried out, and the necessary human qualities
needed to complete the job successfully.

The job analysis may include these activities:

1. Reviewing the job responsibilities of current employees,

2. Doing Internet research and viewing sample job descriptions online and offline
highlighting similar jobs,
3. Analyzing the work duties, tasks, and responsibilities that need to be accomplished by
the employee filling the position,
4. Researching and sharing with other companies that have similar jobs, and
5. Articulation of the most important outcomes or contributions needed from the
position.

It is the detailed examination of the (1) tasks (performance elements) that make up a
job(employee role), (2) conditions under which they are performed, and (3) what the jobs
requires in terms of, attitudes, knowledge, skills, and physical condition of the employee. It
objectives include (a) determination of the most efficient methods of doing a job, (b)
enhancement of the employee’s job satisfaction, (c) improvement in training methods, (d)
development of performance measurement systems, and (e) matching of job- specification
with the person- specifications in employee selection. Comprehensive job analysis begins
with the study of the organization itself: its purpose, design and structure, inputs and outputs,
internal and external environments, and resource constraints. It is the first step in a thorough
understanding of the job and forms the basis of job description which leads to job
specification. Also called human resource audit, job study or occupational analysis. See also
activity analysis, performance analysis, and task analysis.
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(b) Explain the steps of job analysis in detail by giving an example.

Steps of job analysis can be classified into six types. These are the follows –

01. Determine the purpose

↓

02. Identify the jobs to be analyzed

↓

03. Explain the process

↓

04. Process the job

↓

05. Determine the data collection method

↓

06. Review and update frequently

Determining the purpose: The first decision human resource managers typically make is the
purpose for conducting a job, has the company been experiencing rapid growth or downsizing
and, thus, found the need to add to, delete from or change the current job in any why? Has a
manager take place?

Identify the job: the second task managers typically undertake is deciding with jobs to be
analyzed. If a formal job analysis has never been performed, then this task is easy to analyze
all of the jobs.

Explain the process: They should be informed of who will be conducting the analysis, why
the job analysis is needed.

Determine data collection method: Manager must decide which method or combination of
method will be used and how to collect the information.

Process of information: once the job analysis information has been collected, It is important
to place it into a form will be useful to managers and human resource departments.

Review and update frequently: Managers and personnel specialists need to review job
description and specifications frequently.
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9.(a) “Where requirement ends selection starts”-explain?

Requirement begins with sourcing potential applicants. The hiring manager human,
department or recruiter may use job brand, college recruitment programs, job fairs and,
networking social media to create interest in available positions with the company,
prescreening interviews, skills testing, background and reference checks are part of the
recruitment process.

Selection; selection is the process in which the candidates pool in narrowed and an applicant
is chosen. The selection process may involve a serious of interviews, personality assessment
and criminal background checks. Negotiations of salary, benefits and job duties are the final
stages of the selection process.

Recruitment Selection
1 .it is an activity of establishing 1. It is a process of picking up
contact between employees and more competent and suitable
applicants. employees.
2. It is a sample process. 2. It is complicated process.

3. It is an economical method. 3. It is an expensive method.

4. It is a positive approach. 4. It is a negative approach.

5. Less time is required. 5. More time is required.

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(b) Explain different sources of requirement.

Sources of requirement: There are two source of recruitment, which are given below;

A. Internal sources: Mangers are is usually interested to recruit knows the experience
employees from within the organization .Mangers knows the performance level, skill and
efficiently, sincerity and commitment and the like of internal employees. In the following
ways recruitment from the internal sources-

Promotional: It refers to shifting of person to position carrying better prestige, higher

responsibility and more pay.

Transfer: Transfer involves shifting of person from present job to other similar jobs. These
do not involve any chance in rank.

Present employment: Temporary assignment

Additional assignment

External source: These are the external source given bellow;

Advertisement: Advertisement can be given in newspaper and professional journals.

Employment Exchange: Employment exchange in India are run by government .For

unskilled, semi- skilled etc. It is often used as a source of requirement.

Labor Contractors: This method of requirement is still prevalent in India for hiring
unskilled workers.
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12.(a) What is performance appraisal? Discuss the methods of performance

appraisal.

Performance appraisal: performance appraisal means evaluating and employee’s current

and/or past performance relative to his or her performance standards. - Gary Dessler.

Performance appraisal is the process by which organization evaluate individual job

performance. – Keith davis and William B. werther.

Methods of performance appraisal: the methods of performance appraisal are given in

below-

1. Checklists methods: In its simplest form, the checklist is a list of descriptive

statements and adjectives describing job related behavior. If the evaluator perceives
the employee as possessing a particular trait, the item is checked.

2. Weighted checklist: The checklist described above evenly weighted each item.
When this type of weighting scheme is no appropriate, a weighted checklist can be
used.

3. Graphic rating scale: One of the most widely used performance evaluation formats
is the graphic rating scale. First graphic rating scales are easy to use. Evaluators can
rate a large number of individuals in a short amount of time.

4. Mixed standard scale: One variation of the graphic rating scale is the mixed
standard scale. Instead of rating a behavior, such as attendance, the evaluator is
given three conceptually.

5. Forced-choice scale: The forced-choice scale was designed to increase objectively

and decrease subjectivity in ratings by camouflaging the “best” responses. It make
padding ratings more difficult.

6. Critical incident methods: To use the critical incident method to appraisal an

individual’s performance, the evaluator keeps a journal of critical incident for each
individual being evaluated.

7. Ranking: To use this method, the evaluator places the employee in a specified
group in order from the “best” performer to the “worst” performer.

8. Management by objective (MBO): A frequently used performance appraisal

method is management by objective (MBO). management by objective (MBO). Has
been around for over 30 years and is usually credited to peter drucker.
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(b) What are the distortions generally occurred in the phase of

performance appraisal?- explain.

The distortions generally occurred in the phase of performance appraisal they are as follows:

1. Leniency error: Relative to the true or actual performance an individual exhibits,

some evaluator’s marks high, while others mark low. The former is referred to as
positive leniency error, and the latter as negative leniency error.

2. Halo error: The halo error of effect is a tendency to rate high or low on all factors
due to the impression of a high or low rating on some specific factor.

3. Similarity error: When evaluators rate other people in the some way that the
evaluators perceive themselves, they are making a similarity error.

4. Low appraisal motivation: The evaluator may be reluctant to give realistic

appraisal. The tendency is more harmful then other pitfalls.

5. Central tendency: It is possible that regardless of whom the appraiser evaluates and
what traits are used, the patter of evaluation remains the same.

6. Inappropriate substitutes for performance: It is the usual job where the definition
of performance is absolutely clear and direst measures are available for appraising
the incumbent.

7. Attribution theory: According to this theory, employee evaluations are directly

affected by a supervisor’s perceptions of who is believed to be in control of the
employee’s performance- the employer or the manager.
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13.(a) Discuss the importance of wage and salary administration in human

resource management.

Wage and salary administration is important for following reasons:

1. Attract and retain the employees: If an organization possesses good wage and
salary structure, it will attract and retain suitable, qualified and experienced
personnel.

2. Builds high morale: The wage rates established for various categories of jobs
should be internally consistent; it will motivate the employees of the organization.

3. Satisfied employees: A good wage and salary structure will keep the employees
satisfied.

4. Labor cost equitable: A good wage and salary structure will maintain two types of
equitabilities viz. (a) labor cost equitable and (b) equitable wage and salary
structure. Pay according to the work performed by an employee. If an employee is
performing hazardous work pay him more.

5. No favoritism/ Bias: If an organization has definite wage and salary structure,

favoritism/ bias can be avoided.

6. Clearly drawn line of promotion: If a company has good wage and salary
structure, it can have a definite sequence of jobs and clearly drawn line of
promotion.

7. Image of progressive employer: A good and definite wage and salary structure
would enable the company to project in the public an image of a progressive
employer.

8. Harmonious industrial relations: A good wage and salary structure will serve as a
sound basis for collective bargaining and enable the maintenance of satisfactory
union- management and employee- management relations.

9. Ensure minimum wages: A good wage and salary structure should also conform to
the minimum wage laws.
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(b) Discuss various methods of setting pay.

Setting pay needs some methods to follow. In different books, there may be different methods
of setting pay discussed. By consulting a number of books, we have collected these methods
as follows:

1. Time rate method

2. Price rate method
3. Increase price rate method
4. Measured day work method
5. Time saving method
6. Emoson’s efficiency method
7. Group plan method
8. Halsey plan
9. Rowan plan
10. Bedaux plan
11. Differential price rate system
12. Gantt’s task plan
13. Multiple price rate system
14. Scanlon plan
15. Share of production plan
16. Profit sharing plan
17. Sliding plan
18. Employee stock ownership plans (ESOP)
19. Modern incime security plans
20. Suggestions system