THE QUIDE MILLETH COLLEGE FOR MEN

HUMAN RESOURCE MANAGEMENT

QUESTION BANK

UNIT-I

SEC – A (2 MARKS)
1) Define Human Resource Management.

“HRM is the planning, organizing, directing and controlling of the development,

compensation, maintenance and separation of human resources to the end that individual,
organizational and social objectives are accomplished”

2) Give the meaning for HRM?

Human resources are differing in personality, perception, emotions, values, attitudes, motive
and thoughts.

3) What is Human Resource Planning?

Human Resource Planning is a process by which an organisation determines how it should

acquire its desired manpower to achieve the organizational goals. This is called Human Resource
Planning.

4) What do you understand by the term Planning?

Planning is a process of determining the organizational goals and formulation of policies

and programmes for achieving them.

5) What is Procurement?

Right kind of people in appropriate number to be placed in the organization. It consists of

manpower planning, recruitment, selection, placement of new employees. This is known as
Procurement.

6) What is Delphi Technique?

It is a judgmental methods of forecasting human resource needs and also a more complex
and time consuming technique which does not allow group members to meet face to face. This is
called as delphi technique.
7) Give the meaning for Recruitment.

Recruitment is the generating of applications for specific positions to be filled up in the

organisation.

8) Define Recruitment.

“Recruitment is the process of locating, identifying and attracting capable applicants”

9) What is Ratio Trend Analysis?

Under this method, forecasting for future human resource requirements is made on the
basis of time series data.

10) What is Mathematical Models?

Mathematical Models express relationship between independent variables and dependent

variables.

𝑬𝒏 = 𝑳𝒂𝒈𝒈𝒏 + 𝑮 𝟏% /𝒀

11) What do you understand by the term Selection?

It refers to the process of offering jobs to one or more candidates from the applications
received through recruitment.

12) Define Selection.

“Selection is the process by which candidates for employment are divided into class
those who will be offered employment and those who will not”

13) What are Personality Tests?

These tests are designed to measure the dimensions of personality. These tests are also
known as personality inventories.

14) Write short notes on Depth and Stress Interview.

Depth Interview - It tries to portray the interviewee in depth and detail.

Stress Interview – Interviews are conducted for the jobs which are to be performed under
stressful conditions.
15) What is Internal and External Environment?

Internal Environment – Internal forces have profound influence on HR functions. The internal
environment of HRM consists of unions, organizational culture and conflict.

External Environment - External forces like economic, political, technological, demographic

etc considerable influence on HRM.

16) Can you explain recruitment planning?

The first step involved in the recruitment process is planning; it involves to draft a
comprehensive job specification for the vacant position.

17) What is Screening?

Screening as the starting point of selection and the process starts only after the
applications have been screened and shortlisted.

18) What is Staffing?

This is a process by which managers select, train, promote and retire their sub-
ordinates and it involves deciding what type of people should be hired, recruiting prospective
employees, selecting employees, setting performance standard, compensating employees, evaluating
performance, counseling employees, training and developing employees.

19) What are Aptitude Tests?

Aptitude tests measure ability and skills of the testee, these tests measure and
indicate how will people would be able to perform after training and what they has done.

20) What is Intelligence Tests?

Intelligence tests measure general ability for intellectual performance.

IQ = Mental Age/Actual Age × 100

SEC – B ( 5 MARKS)

1) Explain the Objectives of HRM.

 To help the organization to attain its good effectively and efficiently by providing competent and
motivated employees.
 To utilize the available human resources effectively.
 To increase the employees job satisfaction.
 To develop the quality of work life.
 To help maintain policies and behaviour inside and outside the organization.
 To establish and maintain relations between employees and management.
 To accept individual or group goal with organizational goals.

2) What are the need for HRP?

 Despite growing unemployment, there has been shortage of human resources with required skills,
qualification and capabilities to carry on works.
 Human resource planning ensures smooth supply of workers without interruption.
 HRP is also essential in the marked in work force turnover which is unavoidable and even
beneficial.
 Technological changes in the method of products and distribution of production and services in
management techniques.
 HRP is also needed in order to meet the needs of expansion and diversification programmes of an
organisation.

3) Explain the types of interviews.

(a) Preliminary Interview

 Interviews conducted to screen the applicants to decide further detailed interview will be required
are called preliminary interviews.
 Candidate is given freedom by giving job details during the interview to decide whether the job
will suit.

(b) Depth Interview

 It tries to portray the interviewee in depth and detail.
 It involves more time and money in conducting it.
(c) Stress Interview
 Interviews are conducted for the jobs which are to be performed under stressful conditions.
(d) Patterned Interview
 It is decided in advance.
 Interview is to be conducted and time is to be allotted to work out in advance.
 This type of interviews are called standardized interviews.

4) Explain the advantages and disadvantages of external sources in recruitment.

Advantages

 Open Process – It is likely to attract large number of applications.

b) Availability of talented candidates

 It becomes possible for the organizations to have talented candidates from outside.
 It introduces new blood in the organization

c) Opportunity to select the best candidates

 With large number of applicants the selection process become more competitive.
 This increases prospects for selecting the best candidates.

d) Provides healthy competition

 External members are supposed to be more trained and sufficient.

 This type of background should work with positive attitude.
 This helps to create healthy competition.

Disadvantages

a) Expensive and Time Consuming – There is no guarantee that organisation will get good and
suitable candidates.
b) Unfamiliarity with the organization – Candidates from outside the organization are not familiar
with the tasks and job nature.
c) Discourages the existing employees - This type of employees are not sure to get promotion and it
discourages them to work hard.
 It also leads to decrease the productivity of the organization.

5) What are the objectives of HRP?

 Ensure adequate supply of manpower when required.

 Ensure proper use of existing human resources in the organization.
 Forecast future requirements of human resources with different levels of skills.
 Human resources available over a specified period of time.
 Impact of technology on jobs and requirements for human resources.
 Provide lead time available to select and train the required additional human resource over a
specified time period.
6) What are the methods of recruitment?

a) Direct Method

 Representative of the organization are sent to the potential candidates in the training institutes.
 They establish contacts with the candidates for job seeking jobs.
b) Indirect Method
 It include advertisements in newspapers, on the radio and television.
 This method is useful when organization does not find suitable candidates to be promoted to fill
up the higher posts.
 When organization wants to fill up specific posts.
c) Third Party Method – This type of method is to establish contact with job seekers.

7) Explain the advantages of testing.

a) Predicts future performance

 A test can predict the future performance of an individual.

 Test can be used for higher positions.
b) Diagnoses the situation and behaviour
 It requires a particular situation that cause behaviour.
 Well planned tests will help to understand the situation.
c) Offers benefits of economy of scale
 Conducting tests on the whole cost effective as it offers the benefits of economy of scale.
 This is because tests when administered to a group will save on both time and cost.

d) Uncover what not covered by other devices - Advantage of conducting tests is that they
uncover qualifications and talents of the testee that cannot be detected by application blanks and
interviews.

e) Serve as unbiased tools - Based on reliability and norms tests do also serve as unbiased tools of
selection process.

f) Quantity the tests results – Valid job related tests will also pay off in increasing ability to
identity in advance those employees who will perform most effectively in the organization.
8) Distinguish between Personnel Management and Human Resource Management.
SEC – C ( 10 MARKS)
1) Explain the functions of HRM.
(1) Managerial Functions
a) Planning
 It is a process of determining the organizational goals and formulation of policies for achieving
them.
 Planning is future oriented.
 Functions of managers depend on planning function.
b) Organizing
 It is a process by which the structure and allocation of jobs are determined.
 It involves giving each sub-ordinate a specific task, establishing departments, delegating authority
to sub-ordinates.
c) Staffing
 This is a process by which managers select, train, promote and retire their sub-ordinates.
 This involves deciding what type of people should be hired, recruiting employees, performance,
counseling employees, training and developing employees.
 It is a process of activating group efforts to achieve the desired goals.
 It includes activities like getting sub-ordinates to get the job done, maintaining morale, motivating
sub-ordinates.
(2) Operating Functions
a) Procurement – It involves the right kind of people in appropriate number to be placed. in the
organization.
b) Development
 It meant to improve the knowledge, skills, aptitudes and values of employees so as to enable them
to perform their jobs in a better manner in future.
 It fit between organizational climate or culture and employees.
c) Compensation
 It involves determination of wages and salaries matching with contribution made by employees to
organizational goals.
 It consists of activities such as job evaluation, wage and salary administration, bonus, incentives
etc.
d) Maintenance
 It is concerned with protecting and promoting employees while at work.
 For this purpose various benefits are provided to the employees.

2) Explain the Human Resource Planning Process.

a) Analyzing Organizational Plans and Objectives

 The process of human resource planning begins with analyzing the overall plans and objectives of
organization.
 It plans into sub-sectional and functional plans such as technology, production, finance,
marketing, expansion provides for assessing the human resource requirements for each section
and department.
b) Analyzing objectives of human resource planning
 Human resource planning is matching employees abilities to enterprise requirements on future
instead of present arrangements.
 Managers need to specify the objectives of human resource planning with regard to the utilization
of human resources in the organization.
c) Forecasting demand for human resources
 It depends upon both external and internal factors.
 External factors include competition, economic, political climate, technological changes,
government political policy etc.
 Internal factors include growth and expansion, design and structural changes, change in leadership
style etc.
 Future demand for human resources in the organization, these factors need to be taken into
consideration.
(i) Management Judgement
 This technique is very simple and time-saving.
 Under this technique either a bottom-up or a top-down approach is employed for forecasting
future human resource requirement of an organization.
 Bottom-up approach, prepare departmental requirements for human resource and submit it to the
top managers for review.
 Top-down approach, top managers prepare the departmental forecasts which are reviewed.
(ii) Work Study Method – This method can be used when it is possible to measure work and set
standards and where job methods do not change frequently.
(iii) Ratio – Trend Analysis
 It is made on the basis of time series data.
 This technique involves studying past ratios and also based on future ratio.
 While calculating future ratios allowances can be made for expected changes in organisation,
methods and jobs.
(iv) Delphi Technique
 It is more complex and time consuming technique which does not allow group members to meet
face to face.
 It does not require the physical presence of the group members.
(v) Flow Models
 Determine time period which will cover under forecast.
 Establishment of employees categories called “States”
 Movement from one category to another which is based on past trends.
(vi) Mathematical Models
 It is a relationship between independent variables and dependent variables.
En = (Laggn + G)1%/Y
En = Estimated number of workers required in number of years
Laggn = Overall Value
G = Overall Growth
Y = Average improvement in productivity
d) Forecasting Supply of Human Resources
 It gives the quantity and quality of people available from internal and external sources of
manpower supply.
 It begins with the current human resource inventory also called human resource audit.
 It contains information about present human resources in the organisation.
 It can indicate the supply of human resources is less than its demand or more than its demand.
e) Matching Demand and Supply
 Once demand for and supply of human resources of an organisation is forecast the two need.
 Action plans will be prepared to meet the situation.
f) Monitoring and Control
 Once the action plans are implemented these need to be reviewed, regulated and monitored
against the set standards.
 Control the implementation of action plans in the right direction.
3) Discuss the various types of tests.
a) Ability Tests
(i) Aptitude Test
 It measures ability and skills of the testee.
 They are used to predict the future of a person.
(ii) Achievement Tests
 It measures a person’s potential in a job.
 They are usually used for admission to specific courses in the institutions.
(iii) Intelligence Tests
 It measures general ability for intellectual performance.
 This concept involve in intelligence test is mental age and also physical age will grow.
IQ = Mental Age/Actual Age × 100

(iv) Judgement Tests – These tests are designed to know the ability to apply knowledge in solving a
problem.
b) Personality Tests
(i) Interest Tests - These tests are designed to discover a person’s area of interest and to identify the
kind of work that will satisfy him.
(ii) Personality Tests – These tests are designed to measure the dimensions of personality.
(iii) Projective Tests
 These tests are based on pictures or incomplete items.
 Testee is asked to narrate on these.
 Testee responds reflects their own values, motives, attitude, personality etc.
 These tests are called projective.
(iv) Attitude Tests
 These tests are designed to know the testee tendencies towards favouring to people, situations,
actions and other things.
 Attitudes are known from the responses of testee because emotional overtones which make it
difficult to observe.
3) What are the various sources of recruitment?
a) Internal Sources
(i) Present Employees
 Promotions and transfers from among the present employees can be good source of recruitment.
 Promotion of an employee carrying higher status, pay and responsibilities.
 Promotion among present employees also reduces the requirement for job training.
 Promotion from present employees creates frustration among those not promoted.
 Transfer refers to shift an employee from one job to another without any change in the position,
status and responsibilities.
(ii) Former Employees
 It is another source of applicants for vacancies to be filled up in the organisation.
 Retired employees may be interested to come back.
 Some former employees who left the organisation may again be interested to come back to work.
(iii) Employee Referrals
 The existing employees refer their family members, friends and relatives to the company as
potential candidates for the vacancies to be filled up in the organisation.
 Effective methods of recruiting people in the organisation because employees refer to those
potential candidates who meet the company requirements known to them from their own
experience.
(iv) Previous Applicants – Applications from the potential candidates are lying with the
organisation.
b) External Sources
(i) Employment Exchanges – Employment exchanges are particularly useful in recruiting blue-
colour, white-colour and technical workers.
(ii) Employment Agencies – There are a number of private employment agencies who register
candidates for employment and furnish a list of suitable candidates from their data bank as and
when sought by the employers.
(iii) Advertisement – The higher position in the organisation is the more specialized were more
dispersed the advertisements.
(iv) Professional Associations
 Recruitment for certain professional and technical positions is made through professional
associations also called “Head Hunter”
 It is useful for attracting highly skilled and professional personnel.
(v) Campus Recruitment
 The method of campus recruitment offers certain advantages to the employer organisations.
 The most of the candidates are available.
 Interviews are arranged at short notice.
 Teaching faculty is also met.
 It gives them opportunity to sell the organisation to a large people.
(vi) Deputation
 Sending an employee to another organisation for a short duration of 2 to 3 years.
 It is useful because it provides ready expertise and the organisation does not have to incur the
initial cost of induction and training.
 It is not long enough for the deputed employee to prove their mettle and develop commitment
with the organisation to part of it on the other.
(vii) Word-of-Mouth
 Employees working in another organisation are offered an attractive offer by the rival
organisations.
 This method is economic, both in terms of time and money.
(viii) Raiding
 It is method of recruitment whereby the rival firms by offering better terms and conditions try to
attract qualified employees to join them, this raiding is a common feature in the organisations.
4) Discuss the environment of HRM in India.
a) Internal Environment
 These are the forces internal to an organisation.
 Internal forces have profound influence on HR functions.
 The internal environment of HR consists of unions, organisational culture and conflict,
professional bodies, organisational objectives, policies etc.
(i) Unions
 They are formed to safeguard the interest of its members or workers.
 HR activities like recruitment, selection, training, compensation, industrial relations and
separations are carried out in consultation.
(ii) Organizational Culture and Conflict
 As individuals have personality, organisations have cultures.
 Each organization has its own culture that distinguishes one organization from the another.
 Culture may be understood as sharing of some values or beliefs by the members of the
organisation.
 There is often conflict between organizational culture and employee’s attitude.
 Conflicts have their bearings on HR activities in an organization.
(iii) Professional Bodies
 HR professional body regulates the functions of HR practitioners in India.
 Professional bodies also influence HR functions of an organization.
b) External Environment - These includes forces like economic, political, technology,
demographic etc these considerable influence on HRM.
(i) Economic
 These forces have significant influence on wage and salary levels.
 Growing unemployment and reservation in employment also affect the choice for recruitment and
selection of employees in organizations.
(ii) Political
 It covers the impact of political institutions on HRM practices.
 It increases the expectations of workers for their well being.
(iii) Technological
 It is a systematic application of organized knowledge to practical tests.
 Technology makes the job more upgraded.
 It renders workers dislocated if they do not equip themselves to the job.
 Job becomes challenging for the employees with requirements of technology.
 Technology reduces human interaction at the work place.
 Job holders become highly knowledgeable in the job they perform.
(iv) Demographic
 Workers are called knowledge workers and the organizations wherein they workers and the
organizations wherein they work are knowledge organizations.
 Employees are demanding in remuneration and responsibility among various categories and level.
5) Discuss the selection process.
a) Preliminary Interview
 The purpose of the preliminary interview is to eliminate unsuitable candidates from the selection
process.
 In screening unqualified candidates are eliminated on the basis of information given in the
application form whereas it rejects misfits for reasons, which did not appear in the application
forms.
 It should be conducted by someone who inspires confidence, who is interested in people and
whose judgement in the adjudging of applicants reliable.
 It is also courtesy interview.
b) Application Blank
 It is the commonest device for getting information from a candidate.
 All organisations require job seekers to fill up an application.
 This serves as a personal record of the candidate bearing personal history profile, detailed
personal activities skills and accomplishments.
c) Selection Tests
 In order to select a right person for the job, individual differences in terms of abilities and skills
need to be adequately and accurately measured for comparison.
 Selection test is a device that uncovers the information about the candidate which are not known
through application blank and interview.
d) Selection Interview
 Interview is the widely used selection method.
 It is a face-to-face interaction between interviewee and interviewer.
 It can be a powerful technique in having accurate information of the interviewee.
e) Reference Checks
 Selection process used for the purpose of verifying information and also obtaining feedback on an
application
 The candidate is asked to supply two three names of persons.
f) Physical Examination – The main purpose of conducting physical examination to have proper
matching of job requirement with the physical ability of the candidate.
g) Final Selection – The candidates who have cleared all the above hurdles are finally selected and a
letter of job offer is issued to them.
6) Bring out the factors that influence recruitment.
a) Internal Factors – The factors are the factors within the organization that affect recruiting
personnel in the organization.
(i) Size of the organization
 It affects the recruitment process.
 Larger organizations find recruitment less problematic than organizations with smaller in size.
(ii) Recruiting Policy
 Recruiting from internal sources and from external sources also affects recruitment process.
 Internal sources in preferred because own employees know the organization.
(iii) Image of Organization – Good image of the organization earned by a number of overt and
covert actions by management helps attract potential and competent candidates.
(iv) Image of Job
 Better remuneration and working conditions are considered the characteristics of good image of a
job.
 A promotion and career development policies of organization also attract potential candidates.
b) External Factors – There are some factors external to organization which have their influence on
recruitment process.
(i) Demographic Factors
 Intimately related to human beings.
 Employees have profound influence on recruitment process.
 UNIT – II
SECTION – A (2 Marks )
1) Define Training.
“Training is any process by which the attitudes, skills and abilities of employees to perform
specific jobs are improved”

2) What do you understand by the term Training?

Training refers to the teaching and learning activities carried on for the purpose of helping
members of an organisation to acquire and also to apply the required knowledge, skill and attitudes
to perform their jobs effectively.
3) What is Induction?
It is welcoming a new employee to the organisation. In other words it is a well event to
socialize the new entrant with the people and the work environment in a particular organisation.
4) Define Induction.
“Induction is the process of welcoming, socialisation of new employee to their job and
organisation”.
5) Give the meaning for Performance Appraisal?
It is a systematic way of judging the relative worth of an employee in performing their task.
6) What is On-the-Job Training?
The new employee is placed on a job and taught the skills necessary to perform it, since
trainee learns by observing and handling the job this method is termed as observing.
7. What is Transactional Analysis?
It is a tool of improving human relations and interactions and of promoting rationale and
mature behaviour.
8. What is Taylor’s Differential Piece Rate Plan?
Under this plan taylor prescribed two piece work rates, one is a higher wage rate for those
who reach the standard work and second is a lower wage rate whose performance is below the
standard.
9) What is Vroom’s Expectancy Theory?
People will be motivated to a high level of effort when they believe the relationships
between the effort put for the performance they achieve and the rewards they receive.
10) What is Promotion?
It refers to the upward movement of an employee from one job to another higher one with
increase in salary, status and responsibilities. This is known as Promotion.
11) What is Management Games?
Trainees are divided into groups who represent the management of competing companies.
12) What is Horizontal Promotion?
When an employee is shifted in the same category it is called horizontal promotion.
13) What is Dismissal?
Dismissal is termination of service of an employee as a punitive measure, this may occur
either on account of unsatisfactory performance or misconduct.
14) What is Group Incentive Schemes?
Group incentive schemes are appropriate where jobs are interdependent, and it is difficult to
measure individual performance and group pressures affect the performance of the members of the
group.
15) What is High Morale?
Training not only improves the ability and skill of employees but also changes employee
toward positive.
16) What is Self-Actualisation Needs?
Self- Actualisation is the person’s motivation to transform perception of self into reality.
17) What do you understand by the term Transfer?
A transfer refers to the movement of employees within the same grade from one job to
another.
18) What is Organisational Climate Analysis ?
It is a reflection of its member’s attitudes towards various aspects of work, supervision,
company procedure.
19) What is Job Rotation?
A trainee moves from one job to another and from one department to another, this type of
training method is more appropriate for developing overall perspective of the trainee.
20) What is Gatt Task and Bonus Plan?
A worker who cannot complete standard work within standard time is paid only the
minimum guaranteed wage. A worker performing upto the standard level of work, gets time wage
plus a bonus @20% of normal time wage. If the worker exceeds the standard they paid a higher
piece rate but there is no bonus.
SECTION – B (5 Marks )
1) Explain the areas of Training.
a) Knowledge
 Training aimed at importing knowledge to employees provides for facts, information and
principles related to their job.
 Knowledge area considers 3 aspects they are job content and quality of work.
(b) Technical Skills
 Training area aims at teaching the employees like operating a machine, working with a
computer, using mathematical tools to take decisions.
 It is like Induction Training.
(c) Social Skills
 Training aims at the development of individuals and team work.
 Training is to help to improve interpersonal relationship, better team work and effective
leadership.
(d Techniques - In this teaching employees how to apply knowledge and skills to situations,
(e) Experience - It is gained by putting knowledge, skills, techniques and attitudes into use over a
period of time in different work situations.
2) Discuss the Types of Promotion.
(a) Horizontal Promotion
 When an employee is shifted in the same category it is called horizontal promotion.
 It is important to note that promotion may take place when an employee shifts within the
same department from one department to other.
(b) Vertical Promotion – When an employee is promoted from a lower category to higher
category involving increase in salary, status, authority and responsibility.
(c) Dry Promotion
 When promotion is made without increase in salary it is called dry promotion.
 Promotion is made fund in the organisation.
3) Explain the importance of Motivation.
 Managers cannot afford to avoid a concern with human behaviour at work.
 This is because the motivated employees are more productive and quality.
 Motivation affects the organisational factors.
 It enables managers to understand why people behave as they behave.
 Motivation helps the managers how to motivate their employees.
 Organisations need to have employees with required capability and willingness to use the
technology to achieve the organisational goal.
 Organisations will run in more complex in future which increase to develop employees as future
resources.
 This facilitates the managers to draw upon them as and when organisations grow and develop.
4) Explain the need for making Transfer.
(a) To meet organisational needs - Necessitate an organisation to reassign jobs among employees
so that right employees are placed on the right job.
(b) To satisfy employee needs - Employees may request for transfer in order to satisfy their desire
to work in a particular department, and place.
(c) To Better Utilize employee - When an employee is not performing satisfactorily on one job and
management thinks that their capabilities would be utilized better they may be transferred to other
job.
(d) To make the employee more versatile
 Employees after working on a job for specified period are transferred to other job with a view to
widen their knowledge and skill.
 This is also called job Rotation.
e) To adjust the workforce - Work force can be transferred from the departments where there is
less work to the departments where is more work.
f) To Provide Relief - Transfers may be made to give relief to the employees who are
overburdened work for long period.
(a) To Punish Employee -
 Management may use transfer as an instrument to penalize employees who are involved in
wrong activities.
 Employees are transferred to remote or far areas.
4) How to make Performance Appraisal more effective?
a) Standard Appraisal Scheme
 It is also known as result oriented schemes, it implies a more positive approach for performance
appraisal.
 It is based on MBO (Management By Objective)
 Performance Appraisal should be shifted from appraisal to analysis.
b) Performance Reviews
 The basic purpose of performance review is to analyse what a person has done and is doing their
job in order to help their performance better by developing their strength and weaknesses.
 It is always better to review employee performance with employee.
 Managers should acquire the necessary skills through proper training.
c) Multiple Appraisals
 Performance appraisals being judgemental in nature.
 Multiple appraisals provides an indication of overall performance and also potential for
employee development.
d) Trained Appraisers
 Formal training is the most effective way to prepare managers and supervisors to conduct
successful employee appraisal .
4) What are the major problems that affect performance appraisal?
(a) Judgemental Bias
 Appraisal method involve rater judgment.
 There are some ratser who rate on recently observed performance, while others tend to rate on
potential performance.
 In such case appraisal results of the two rater which becomes high incomparable.
(b) Faulty Managerial Assumptions
 Managers which to appraise their subordinates on a fair and accurate basis.
 Employees really want to know where they do stand often which turns to be a myth (not a
reality)
(a) Criterion Problem
 Performance appraisal vary from organisation to organisation.
 Results of performance appraisal based on different criteria are hardly comparable.
4) Discuss the various areas involved in Training.
(a) Knowledge
 Training aimed at imparting knowledge to employees provides facts, information and principles
which related to their job.
 There are 3 aspects namely job context, job content and quality of work.
(b) Technical skills
 Training aims at teaching the employees by the way how to operate machine, working with a
computer, using mathematical tools to take decisions.
 It is like induction training.
(c) Social Skills
 Training aims at the development of individuals and team work.
 Training help to improve inter-personal relationship, better team work and effective leadership.
(d) Techniques -Teaching employees how to apply knowledge and skills to a particular situations.
(e) Attitudes
 Help to change the employee’s attitudes towards organisational goals.
 Employee attitudes support a completion of company activities.
(f) Experience
 It cannot be taught.
 It is gained by putting knowledge, skills, techniques and attitudes into a period of time in
different work situations.
4) Discuss about the important of training.
(a) Better Performance
 Training improves employees ability and skills in turn improves employees performance both in
quantity and quality.
 Employee performance leads to increase productivity.
 Improvements in employee performance.
(b) Improved Quality
 Uniformity in work performance helps to improve the quality of work.
 Trained workers are less to make mistakes.
(c) Less Supervision
 Organized training programme reduces the time in learning.
 Training enables to avoid waste of time.
d) High Morale - Training not only improves the ability and skill of employees but also changes
the employee’s attitude towards positive.
(e) Personal Growth
 Training improves employee’s ability, knowledge and skills.
 This makes employees growth oriented.
(d) Favourable Organisational Climate - Improved and favourable organisational climate is
characterized by better industrial relations.
4) What are the contents of Induction Programme?
a) Informal Induction
 This is an unplanned induction programme.
 Introduction to the new entrant about the job and organisation.
 It is generally carried out by the medium and small scale units.
(i) Supervisory System
 Job supervisor conducts the induction programme for the new entrant or new comer.
 Supervisor explains the new comer about the new job, department which are related to the job.
(ii) Buddy System
 Supervisor assign the responsibility of induction of the new employee to an old employees
 The old employee arrange the meeting in order to introduce the new comer to the organisation.
b) Formal Induction
 This is usually carried out by the large size organisation.
 It covers the aspects from mission, vision, rules and regulations of the organisation to job.
5) How to make an Induction Programme Effective?
a) Receiving new employees
 New employees need to be received by the organisation.
 This increase the feeling in the new entrants is required in the organisation.
 Feeling serves as to be interest to integrate into the organisation.
b) Determining the new employees need for information
 New employees are given information which are not immediately required but the required one
is not given, such information will make confuse about the job and the organisation.
 It is important to decide the information a new entrant needs to receive on their joining the
organisation.
c) Determining how to present the information
 To decide what information employees wants.
 Required information needs to be presented to the new employees in the right form and so as to
have maximum impact on the employees.
d) Delivering Induction Training by the right instructor
 Induction programme depends on who conducts the induction training.
 Induction training cannot be given by anyone but by the right instructor only.
 Required skill, knowledge and attitude are considered to be the right instructor
e) Evaluating the Induction Programme
 Induction programme is effective which is determined by evaluating the programme.
 This is necessary to decide whether to continue the programme in future also or whether the
programme needs any improvement in future.

SECTION – C ( 10 Marks )
1) Explain the steps in Training programmes.
a) Identification of Training Needs
 Identifying training needs is a process which involves the areas where employees lack skills,
knowledge and ability in effectively performing their jobs.
 Training needs to be related in terms of organisation demand and individual employees.
(i) Organisational Analysis
 Analysis of organisation in terms of objectives, resources, culture and environment.
 Long run objectives are broke down into specific objectives for each department and short run
objectives are constantly adapt to the changing environment in both external and internal.
 Focus should be on the contribution of human resources in meeting the goals of organisation.
(ii) Task Analysis
 It will indicate the skills and training required to perform the job at the required standard.
 Job performed at the desired level of output.
(iii) Man Analysis
 It focus on individual employee, skill, ability, knowledge and attitude.
 Difficulties in assessing human contribution.
(b) Setting Training Objectives
 Induction to new employees is the basic knowledge and skills required for efficient performance
of the particular tasks.
 Employees are updated with latest concept, information, techniques and develop the skills.
 Higher positions with more responsibilities for future.
 To develop competency among the employees in new areas.
(c) Designing Training Methods
 Training Methods are means of attained desired objectives set for a training programme.
 The choice of training methods would depend on a variety of factors such as level of trainees,
competence of trainees, cost etc.,
(1) On The Job Oriented Training Methods (OJT )
a) On the job training
 New employee is placed on a job and taught the skills to perform.
 Trainee learns by observing and handling the job.
b) Job Instruction Training (JIT) - Trainer gives instructions to an employee how to perform
the job.
(a) Preparation - Existing skills, service, interest and attention.
(b) Presentation - Job operations as a model to copy.
(c) Performance - Trainee need trainers instruction.
(d) Follow up - Trainee does job independently without supervision and get feedback.
c) Coaching
 Superior teaches the new employee about the knowledge and skills of a job.
 Mistakes committed by the new employee will be pointed by superior.
d) Job Rotation
 Trainee move from one job to another.
 This type of training method is more to develop multi-skills.
b) Simulation Methods
(i) Role pay
 Trainees are required to defined role on the basis of oral or written of a particular situation.
 It develop interpersonal interactions among the employees.
(ii) Case Method
 Trainees are asked to analyse the event with an objective to identify the problem, to solve it.
 It is also called decision making under uncertainty.
 This method is to develop decision making skill among the top and senior level managers.
(iii) Management Games
 Trainees are divided into groups who represent the management.
 Decisions made by the groups are evaluated.
(iv) In-Basket Exercise - Trainee is presented with a pack of papers in a tray which contain
administrative problems are asked to take decisions on a specified time limit.
(v) Vestibule Training
 Training is used for training personnel.
 Duration of training ranges from a few days to a few weeks.
c) Knowledge- Based Methods
(1) Lectures - Information is required to be shared to a large number of audience and does not
require more participation from the audience.
(2) Conferences - Trainer delivers a lecture on a particular subject which is followed by
discussions.
(3) Programmed Instructions - Trainer monitors trainees independent progress through the
programme.
d) Experiential Methods
(a) Sensitivity Training - It seeks to accomplish its aim of increasing interpersonal, increased
tolerance for individual differences and increased trust and support.
(b) Transactional Analysis - It is a tool of improving human relations and interactions and
promoting mature behaviour.
2) What are the methods of Performance Appraisal?
a) Traditional Methods
(i) Ranking Method
 Performance Appraisal in which one employee is compared with all others for placing them in a
simple rank.
 Employees are ranked from highest to the lowest.
(ii) Paired Comparison
 Each employee is compared with other employees.
 It is usually based on one trait only.
 Number with others determines their final ranking.
(iii) Grading Method
 Employee performance is compared with grade.
 Employee is allocated to the grade describes their performance.
(iv) Forced Distribution Method
 This method assume employees performance level confirms to a normal statistical distribution.
 This is useful for rating a large number of employees.
 It is simple to understand and easy to apply in appraising the performance of employees in
organisations.
(v) Forced Choice Method - It contains a series of groups of statements and rate a statement
which describes individual being evaluated.
(vi) Check list Method - Basic Purpose of utilizing check list is presented to the rater to tick the
answer.
(vii) Critical Incidents Methods
 The difference between performing a job in a effectively manner.
 The list of noteworthy (Good or Bad ) of specific incidents is prepared.
 Group of experts assign weightage.
 Check list indicating incidents that describe workers as good or bad is constructed.
(viii) Graphic Rating Scale Method
 It is also known as linear rating scale.
 It is Used to appraise each employee.
 Rating is done on the basis of points.
(ix) Essay Method
 The rater writes a narrative description on an employee’s strengths, weaknesses, past
performance, potential for improvement.
 Essays are descriptive which provide only qualitative information about the employee.
 It is also beneficial with other methods.
b) Modern Methods
(i) Management by objectives (MBO)
 MBO requires the manager to get specific measurable goals with each employee and then
periodically discuss their progress toward these goals.
 MBO is not only a method of performance evaluation and it is also viewed by practicing.
 MBO programme consists of four main steps they are goal, setting, performance standard,
comparison and periodic review.
(ii) Behaviourally Anchored Rating Scale (BARS)
 BARS are descriptions of various design of behaviour with regard to a specific performance
dimension.
 BARS claim offers better and more equitable appraisals than do the other techniques of
performance appraisal.
(iii) Assessment Centres
 It is mainly used for evaluating potential.
 Assessment centre is a central location where managers come together to participate in the
exercises.
(iv) 360 Degrees Appraisal
 An Employee is appraised by his supervisor, sub-ordinates, peers, and customers with whom he
interacts in the course of their job performance.
3) What is Promotion? And Explain it Purposes, Policy and Types.
Promotion is vertical movement of an employee within the organisation, depend upon the
needs of the organisation.
Purposes
 To recognize an employee’s skill and knowledge.
 To reward and motivate employees to higher productivity.
 To develop competitive among the employees to acquire skill and knowledge.
 To promote employees satisfaction.
 To build loyalty among the employees toward organisation.
 To promote good human relations.
 To increase belongingness.
 To retain skilled and talented people.
 To attract trained, competent and hardworking people.
 To Opportunities are available to them.
Policy
 It must provide equal opportunities for promotion across the jobs, departments and regions.
 It must be applied to all employees.
 It must be fair and impartial.
 Promotion must be clearly specified.
 It must be correlated.
 Authority must be entrusted with the task of making final decision.
 Progress of the employee must be monitored.
 Promotions made from both inside and outside the organisation.
 Promotion can be made on various bases .
 Seniority
 Merit
 Educational and technical qualification
 Potential for better performance.
 Succession plan.
 Vacancies based on organisational chart.
 Job Enlargement.
 Training.
Types
a) Horizontal promotion -When an employee is shifted in the same category. It is called
horizontal promotion.
b) Vertical Promotion - Promoted firm a lower category to higher category involving increase in
salary, status, authority, and responsibility.
c) Dry Promotion
 When promotion is made without increase in salary , it is called dry promotion.
 Give the meaning for transfer and explain its Need, policy and types.
 Transfer refers to lateral movement of employees within the same grade from one job to another.
Need
a) To meet organisational needs - An organisation to reassign jobs among employees so that right
employee is placed on the right job.
b) To satisfy employee needs - Employees may request for transfer in order to satisfy their desire
to work.
c) To better utilize employee
 When an employee is not performing satisfactorily on the job and management.
 To make the employee more versatile:-
 Employees after working on a job for a specified period are transferred to other job with a view
to widen their knowledge.
 To Adjust the workforce :-
 Work force can transferred from the departments were there is less work to the departments
where is more work.
d) To Provide Relief - Transfers may be made to give relief to the employees who are
overburdened for long period.
e) To punish employee - Employees are transferred to remote areas .
Policy
 Transfers should be in writing and it should be communicated to the employees.
 Transfer will be made on the basis of seniority.
 Decide the authority which would handle transfers.
 Intimate the fact to transfer to the person.
 Specify the jobs to transfers will be made.
 Transfer is permanent.
 Transfer can be made within a department.
 Not to be made frequent.
Types
a) Production Transfer
 Transfers are made when labour requirements in one divisions.
 Transfers help to avoid lay off.
b) Remedial Transfer
 Transfers are affected to correct the wrong selection and placement of employees.
 Wrongly placed employee is transferred to more suitable job.
 Transfers protect the interest of the employee.
c) Replacement Transfer
 Replacement transfers are similar to production transfers.
 This transfer affect when labour requirements and decline.
 Transfer is to retain long service employees in the organisation.
d) Versatility Transfer
 Transfers, employees are made move from one job to another to gain work.
 It benefits both the employee and organisation.
e) Shift Transfer - Employees are transferred from one shift to another on the basis of mutual
convenience.
f) Penalty Transfer - Penalise employees involved in undesirable activities in the organisation.
4) Explain the Career Stages.
a) Exploratory Stage
 It is a Stage in which a person explores career options for oneself.
 Experience suggests several factors.
 It has least relevance for the organisation.
b) Establishment Stage
 Choosing a job for oneself.
 This stage is marked by the first experiences on the job, acceptance and evaluation by peer
groups.
 In this stage one tries to make or commits mistakes, learns from mistakes and gradually increase
responsibilities.
c) Mid-Career Stage
 This is a stage marked by improved performance.
 This stage is no longer seen as a learner.
 Mistakes committed are viewed seriously.
d) Late Career Stage
 It is based on good performance during the earlier stage.
 During this stage people do not have to learn but to suggest.
d) Decline Stage
 Decline Stage is less painful for modest performers.
 Frustrated associated with work is left behind.
 Planning for retirement can ensure smooth transition from working life to retired life.
 Many organisations have to conduct training programmes for their retiring employees.
 UNIT -III
SEC – A ( 2 MARKS)

1) What is Compensation?

Workers render their services for wages and salary called compensation, in other words
workers exchange their work for compensation. It comprises cash payments to wages and salary
includes pension, bonus and shared profits.

2) Give the meaning for Straight Piece Work?

In this system employee is paid a flat price for each unit or piece completed for time allowed
to complete the particular task. This is known as straight piece work.

3) Define Incentives.

“A wage incentive scheme is method of a payment for work of an acceptable quality

produced over and above a specified quantity or standard”

4) What is Taylor’s Differential Schemes?

Under this plan, Taylor prescribed two piece work, one is higher rate for those who reach the
standard work and another one is lower wage rate whose performance is below the standard.

5) Define Motivation?

“Process that starts with physiological deficiency or need that activates behaviour or a drive
that is aimed at a goal or incentive”

6) What is Vroom’s Expectancy Theory?

The theory is founded on the basic motions that people will be motivated to a high level of
effort when they believe there are relationships between the effort they put forward, the performance
they achieve and the rewards they reserve.

7) Give the meaning for Goal Setting.

Goal setting refers to setting of attainable goal for an organisation as well as for an
employee.
8) What is Management by Objectives?

It can simply be defined as a programme that encompasses specific goals, participatively

set, for an explicit time period, with feedback on goal progress.

9) What is Quality at Work Life?

It refers to the favourableness or unfavourableness of a total job environment for people.

10) What is Fair Wage?

The lower limit of the fair wage is the minimum wage, the upper limit is set by the capacity
of the industry to pay. This is known as Fair Wage.

11) Write short notes a) Rowan Premium Plan b) Gantt Task and Bonus Plan.

a) Rowan Premium Plan – Fixed percentage in case of Halsey plan, it considers premium on the
basis of the proportion which the time saved bears to the standard time.

b) Gantt Task and Bonus Plan - A worker performance upto the standard level of work, gets time
wage plus a bonus @ 20% of normal time wage, if the worker exceeds the standard, he is paid a
higher piece rate but there is no bonus.

12) What is Scanlon Plan?

The plan is essentially a suggestion scheme designed to involve the workers in making
suggestions for reducing cost ot operation and improving working methods and sharing in the gains
of increased productivity.

13) What is Profit Sharing?

Profit to be shared by employees and mechanism for its distribution are determined in
advance and also made know to the employees. This is known as profit sharing.

14) Write a short note on Social Security?

Social Security refers to protection provided by the society to its members against a person
who has no control. The state shall make itself responsible for ensuring a minimum standard material
welfare to all its citizen on basis of the life.
 SEC – B (5 MARKS)

1) What are the Advantages and Disadvantages of MBO?

Advantages

 Suggestions for improvement are obtained from all levels of management.

 All managers have a clear idea of the important areas of their work and of the standards required.
 The performance of staff can be assumed.
 Participation may improve morale and communication.
 It makes individuals more aware of organisational goal.
Disadvantages
 It makes a few years to be effective.
 Some companies always tend to raise goals, if these are too high employees become frustrated.
 Appraisals are made on personality rather than on performance.
 Some employees do not want to be held responsible and goals forced upon them may lead to feel
ill.
2) Explain the Types of Social Security.
a) Social Assistance
 It refers to the assistance rendered by the Government to the needy persons without asking them
to make contributions to be entitled to get such assistance.
 It includes those benefits which are provided by the Government without any contribution from
workers and employers.
 Workmen compensation, maternity benefits, old age pensions etc are the examples of social
assistance.
b) Social Insurance
 It refers to a scheme of maintaining fund from the contributions made by the employees and
employer, with a subsidy from the Government.
 To provide benefits as of right for persons of small earnings , in amounts which combine the
contributive efforts of the insured with subsidies from the employer and the Government.
 Examples pf social insurance are provident fund and group insurance.
 These two types of social security measures may. be the integral parts of a social security system.
3) Explain the importance of motivation.
 Organisation are run by people, hence managers cannot afford to avoid a concern with human
behaviour at work.
 The motivated employees are more productive and quality.
 It enables managers to understand why people behave as they behave.
 An appreciation of motivation helps the managers how to motivate their employees.
 Machines become necessary in case of complex technology.
 These remain inefficient vehicles of effective and efficient operations without man to operate
them.
 Organisations need to have employees with required capability and willingness to use the
advanced complex technology to achieve the organisational goal.
 That organisations will run in more complex in future, an increasing attention has been given to
develop employees as future resources.
 This facilitates the managers to draw upon them as and when organisations grow and develop.
4) Discuss the Goal Setting?
Goal setting refers to setting of attainable goal for an organisation as well as for an
employee.
a) Goal Acceptance
 Effective goals need to be not only understood but also accepted.
 Accepted goals arrived at through participation seem preferable to assigned goals.
 Evidence suggests that people who set their goals through participation and who won their goals.
b) Specific Goals
 Goal need to be as specific, clear and measurable as possible.
 Specific goals are always better vague.
c) Challenging Goal – Most employees work harder when they have difficult goals to attain rather
than easy one.
d) Monitoring and Feedback
 Besides setting well defined and challenging goals the two closely related elements that is
monitoring and feedback are also important to complete the process of goal-setting.
 Monitoring needs to be followed by performance feedback to enable employee to have an idea.
5) Explain Quality of Work Life.
Quality of Work Life refers to the favourableness or unfavourableness of a total job
environment for people.
a) Job Involvement
 It indicates the extent a worker identifies them with the work.
 Workers involved in their jobs spent more time on their jobs.
 People with high need for achievement and high work ethic are also found to be involved with
their jobs.
b) Job Satisfaction
 It refers to one’s good or positive feeling toward their job.
 It improves work performance and reduces employee turnover.
c) Sense of Competence
 Job involvement ultimately results in sense of competence.
 It denotes the feelings of confidence that one has in one’s own ability, skill or competence.
 High sense of competence and job involvement combinedly produce high levels of job satisfaction
and productivity.
d) Job Performance and Productivity – The three factors job involvement, job satisfaction and
sense of competence are down to improve job performance and productivity of employees.

SECTION – C (10 MARKS)

1) What are the components of wage and salary?
a) Determination of Wages and Salary
i) Cost of Living
 Workers need to be paid compensation adequate to maintain an acceptable level of living.
 Fixed once becomes inadequate to maintain the required level due to increase in the cost of
living.
 Cost of living calls for fixation of compensation.
ii) Productivity
 It can be expressed as production in relation to time unit.
 It increases production and decreases cost.
 In order to attract and retain workers in the organisations, wage rates are fixed as per the
prevailing rate in the region.
 This is also called the “Going Wage Rate” which is the most widely used of wage fixation.
iv) Ability to Pay
 Organisations do also fix wages what they can afford to pay.
 It is mainly the ability to pay, organisations which earn high profits pay higher wages as
compared to those whose profits are low.
v) Attraction and Retention of Employees
 The quantity and quality of employees an organisation need to employ and also determine the
levels of wages and salary fixed.
 If the availability of jobs are scare, the wages and salary levels will be low.
b) Methods of Wage Payment
i) Minimum Wage
 Minimum wage is a compensation to be paid by an employer to his workers.
 It must provide some measures of education, medical requirements and amenities.
ii) Living Wage
 Living wage is one which should enable the earner to provide for them.
 It represents a standard of living.
 A living wage is fixed considering the general economic conditions of the country.

iii) Payment by Time

 In this method, the employee is paid on the basis of time worked such as per day, per week
and per month rather than output.
 The wage rate is predetermined by reference to local rates.
 This method is useful when a worker has to do unstandardized job.
iv) Payment by Results – An employee is paid on the basis of the number of items an
employees produces in the organisation rather than considering the job done by the employee
at a given time.
(a) Straight Piece Work
 Wage payment is made to employees at a uniform rate per unit of production.
 Employee is paid a flat price for each payment is more appropriate where production is of
repetitive character and can easily be divided into similar units of production.
(b) Differential Piece Work System
 The rate of wages per unit of production decreases with increase in production.
 Wage rate per hour still increases not in proportion to the increased output.
 Work is standardized, repetitive and measurable.
v) Balance Method
 This method is a combination of time wage and piece wage methods.
 A worker is paid a fixed wage based on the time rate with a provision of piece wage method.
2) Explain the types of incentives schemes.
a) Individual Incentive Schemes
i) Taylor’s Differential Piece Rate Plan
 Under this plan, Taylor prescribed two piece work rates.
 A Higher wage rate for those who reach the standard work.
 A Lower wage rate whose performance is below the standard.
 The standard work is determined on the basis of time.
ii) Halsey Premium Plan
 Under this plan a guaranteed wage based on past experience is determined.
 If a worker saves time, he gets 50% of wages for time saved in addition to normal wages.
 This plan also provides incentive to efficient workers.
iii) Rowan Premium Plan
 This plan is similar to Halsey Premium Plan.
 Fixed percentage in case of Halsey plan, it considers premium on the basis of the proportion
which the time saved to the standard time.
iv) Emersson Efficiency
 Under this scheme both standard work and day wage are fixed.
 The rate of bonus goes on increasing till he achieves 100% efficiency.
 After 100% efficiency bonus will be 20% of the basic rate plus 1% for each.
 At 120% efficiency, a worker receives a bonus of 40%
 At 140% efficiency, a worker gets 60% of the day wage as bonus.
v) Gantt Task and Bonus Plan
 A worker who cannot complete standard work within standard time is paid only the minimum
guaranteed wage.
 A worker performing upto the standard level of work gets time wage plus a bonus @ 20% of
normal time wage.
 If the worker exceeds the standard, he is paid a higher piece rate but there is no bonus.
b) Group Incentive Schemes
i) Profit Sharing
 Profit to be shared by employees and mechanism for its distribution are determined in advance
and also made known to the employees.
 In order to eligible to participate in profit sharing.
 Employees receive their share in the organisational profit in the form of bonus.
 The employee bonus is governed by the Payment of Bonus Act, 1965.
ii) Co-partnership
 It is an improvement over profit sharing.
 Employees also participate in the equity capital of a company.
 Employees become shareholders also by having company shares.
 Now employees participate in both profits and management of the company.
 This would develop a sense among the employees and encourage them to contribute their best for
the development of the organisation.
iii) Scalon Plan
 The plan is essentially a suggestion scheme designed to involve the workers in making
suggestions for reducing the cost of operation and improving working methods and sharing in the
gains of increased productivity.
 The plan in characterized by two basic features.
 Both employees and managers can participate in the plan by submitting their suggestions for
cost-cutting methods.
 Increase in efficiency on account of cost-cutting is shared by the employees of the unit.

3) Discuss about the Job Design?

Job Design provides worker not only a living, but also helps in achieving their other goals
such as economic, social, political and cultural.

a) Job Enlargment

 It consists of making a job larger in scope by combining additional task activities into each job
through expansion.
 This is called Horizontal Loading.
 It focuses on enlarging jobs by increasing tasks and responsibilities.
b) Job Enrichment
 It refers to the vertical enlargement of a job by adding responsibility and opportunity for personal
growth.
 Job enrichment concerned with designing jobs that includes greater variety of work content
which require a high level of knowledge and skill which provide opportunity for personal
growth.
 Additionally giving more challenge.
c) Job Simplification
 A job is broken down to the extent possible into smaller parts is done in assembly line operations.
 Doing the repetitive task is that job may produce bore to the workers.
 This type of job may be suitable for workers having low levels of skills and knowledge.
d) Job Rotation
 A worker moves from one job to another at the same level that has similar skill requirements.
 It reduces through changing employee’s activities.
 This has almost the similar effects as the job enlargement has.
e) Quality of Work Life
 It refers to the favourableness or unfavourableness of a total job environment for people.
 The elements included in a QWL programme like open communication, reward system,
employees job satisfaction and employee skill etc make job environment favourable.
Factors
i) Job Involvement
 It indicates the worker identifies them with the work.
 Workers involved in their jobs spent more time on their jobs.
 People with need for achievement are found to be involved with their jobs.
ii) Job Satisfaction
 It refers to one’s good positive feeling toward their job.
 It improves work performance and reduces employee turnover.
iii) Sense of Competence
 Job involvement results in sense of competence.
 It denotes the feelings of confidence that one has in one’s own ability, skill or competence.
 High sense of competence and job involvement combinedly produce high levels of job
satisfaction and productivity.
iv) Job Performance and Productivity – These 3 factors boil down to improve job performance
and productivity of employees.
5) Explain the Theories of Motivation.
a) Maslow’s Need Hierarchy Theory
 It based on the human needs.
 Hierarchical manner from the lower to the higher order.
 Level of need is satisfied.
i) Physiological Needs – These needs are basic to human life and hence include food, clothing,
shelter, air, water and necessities of life.
ii) Safety Needs – These needs find expression in such desires as economic security and protection
from physical dangers.
iii) Social Needs – Interested in social interaction, companionship, belongingness etc.
iv) Esteem Needs
 These needs refer to self-esteem and self-respect.
 They include such needs which indicate self-confidence, achievement, competence, knowledge
and independence.
v) Self-Actualisation Needs – The lower, intermediate and higher needs of human beings.
b) Herzberg’s Motivation Hygiene Theory
 Herzberg labeled the job satisfiers motivators and he called job dissatisfiers hygiene.
 According to Herzberg the opposite of satisfaction is not dissatisfaction.
 The reason is that removal of dissatisfying characteristics from a job does not make job
satisfying.
 Opposite of satisfaction is no satisfaction and the opposite of dissatisfaction is no dissatisfaction.

c) Mc Clelland’s Need Theory

 This theory is closely associated with learning theory because they believed that needs are
learned by the kinds of events people experienced in their environment and culture.
 People who acquire a particular need behave differently from those who do not have.
 Theory focuses on three needs they are achievement, power and affiliation.
Need for Achievment
 High need achievers have a strong desire for performing a task for finding a solution to a
problem.
 High need achievers tend to set difficult goals and risks.
 High need achievers have a strong desire for performance feedback.
Need for Power
 Influence and direct somebody else.
 Desire to exercise control over others.
 Maintaining leader-follower relations.
Need for Affiliation
 Strong desire for acceptance and approval from others.
 Wishes of those people whose friendship and companionship they value.
 Value the feelings of others.
d) McGregor’s Participation Theory
The first basically negative, labeled Theory X, and the other basically positive, labeled
Theory Y.
Theory X
 Nature indolent.
 Ambition, dislike responsibility and prefer to be directed by others.
 Self-centered and indifferent to organisational needs and goals.
 Generally were not sharp.
Theory Y
 Assume responsibility.
 Organisation to succeed.
 Directing their own behaviour.
 Need for achievement.
e) Urwick’s Theory Z
 Strong bond between Organisation and Employees.
 Employee Participation and Involvement.
 No formal Organisation Structure.
 Human Resource Development.
f) Argyris’s Theory
 This theory is based on proposition how management practices affect the individual behaviour
and growth.
 Immaturity exists in individuals mainly because of organisational setting and management
practices such as chain of command, unity of direction and span of management.
g) Vroom’s Expectancy Theory - The theory is founded on the basic notions that people will be
motivated to exert a high level of effort when they believe there are relationships between the
effort they put, the performance they achieve and the rewards they receive.
h) Porter and Lawler’s Expectancy Theory
 The motivation does not equal satisfaction or performance.
 Effort refers to the amount of energy an employee exerts on a given task.
 Effort does not lead directly to performance.
 The amount of performance is determined by the amount of labour and the ability of the
employee.
 Mediated by abilities, traits and by role perceptions.
 Performance leads to satisfaction.
 The level of satisfaction depends upon the amount of rewards one achieves.
 If the amount of actual rewards meet equitable rewards, the employee will feel satisfied.
 UNIT – IV

SEC-A ( 2 MARKS)

1) Define Workers Participation.

“Workers participation refers to the mental and emotional involvement of a person in a

group situation which encourages them to contribute to group goals and share in responsibility of
achieving them”.

2) What do you understand by the term Job Security?

Employees need to have a sense of job security and want to be sure that management will
not make unfair and decisions about their employment. This is called as job security.

3) Define Industrial Disputes.

“Any dispute between employers and workmen, which is connected with the employment
or non-employment or the terms of employment and conditions of employment of any person”

4) Write short note on Labour Court.

The labour court consists of one independent person who is presiding officer for not less
than 3 years or has been presiding officer of a labour court for not less than 5 years.

5) What is Trade Union?

An association of workers cutting across many companies and industries, it is called a

horizontal union in the sense that its members belong to a related group of occupations.

6) What is Work Committee?

The main purpose behind constituting work committees is to evolve ways and means
for maintaining cordial and harmonies relations between the employees and the management. This
is called work committee.

7) What is Employee Association?

An employee association also known as fraternal order is generally composed of white-

collar such as teachers, police officers, administrative, technical and health care.
8) Write short note on Grievance?

Grievance arise out of existing agreements or contracts between the employees and the
management, they relate either to individual worker or group of workers in the same group. This
dispute is also called individual disputes.

9) What do you understand by the term Joint Management Council?

These councils were set up to enable workers to participate in management and co-
operation between the workers and management.

10) What is Fair and Just Supervision?

People oriented to ensure that the managers treat their employees fairly, justly and
respectfully. This is known as Fair and Just Supervision.

SEC – B (5 MARKS)

1) Explain the Types of Trade Unions.

a) Industrial Union

 It is a union composed primarily of semi-skilled blue collar employees in the manufacturing

industries.
 The industrial union is often referred to vertical union.
 It is a vertical in the sense that includes all workers in a particular company or industry of their
occupation
 It is a mix of skills.
b) Trade Union
 A trade union also called craft union, is an association of workers cutting across many
companies and industries.
 In the sense the members belong to one craft or a closely related group of occupations.
 Examples of this type of unions are ones that have organized by carpenters, electrician and
mechanists.
c) Employee Association
 It is also known as fraternal order.
 It generally composed of white collar such as teachers, police officers, administrative, technical
and health care.
2) Discuss the forms of workers participation in management.
a) Suggestion Scheme
 It consists of equal number of members from management and workers.
 Workers are invited and encouraged to put their suggestions for improving working of the
organisation into suggestion box.
 The suggestion committee periodically scrutinizes the suggestions given by the workers.
b) Workers Committee – The main purpose behind constituting works committees is to evolve
ways and means for maintaining cordial and harmonious relations between the employees and
the management.
c) Joint Management Councils – The responsibility of JMC is relating to matters such as
working conditions, training, safety, accident prevention and preparation of holiday schemes
etc.
d) Board Representation
 Under this scheme one or two representatives of workers are nominated on the Board of
Directors.
 Board of Directors is to safeguard the workers interest and good relations between the workers
and management.
 This is the highest form of workers participation in management.
e) Co – partnership
 It means employees participation in the share capital of their own company.
 Workers are induced to buy equity shares of the company.
 Workers may be allowed to make payments in installments, advanced loans give financial
assistance to enable workers to buy equity shares.
f) Workers Complete Ownership
 Workers acquire complete control of management of their enterprise through an elected board
and workers council.
 This system of participation is also called self-management.
3) Why do workers join a trade union?
a) Job Security
 Employees need to have a sense of job security and want to be sure that management will not
make unfair and decisions about their employment.
 They look unions to ensure that their jobs are duly protected against lay off, recall and
promotion etc.

b) Wages and Benefits – The employees may think that the union with its strength will ensure
fair wages at par with those of other workers in the community benefits such as medical facility,
pensions, paid sick leave, and vacations.

c) Working Conditions

 Employees like to work in a healthy and safe environment.

 Provisions for providing employees a safe work environment.
 Employees feel more secured knowing that trade union is directly involved in safety and health
issues relating to them.
d) Fair and Just Supervision
 People oriented to ensure that the managers treat their employees fairly, justly and respectfully.
 Employees can only be disciplined for just cause.
 In case of mistreatment from the employer, the employee may file a written grievance against
the employer.
 The complaint will be heard and resolved through a formal grievance procedure involving
collective discussion by both union and management representatives.
e) Powerlessness
 Employees individually often feel powerless to bring about changes that will benefits them.
 It is union that provides them a powerful, collective voice to communicate to management their
dissatisfaction and frustration.
f) Need to Belong
 It is strong in both personal and work lives.
 It provides mechanism for bringing people together not only to promote common job-related
interests but also to organize programmes, functions and social events from time to time, to
create a strong bond among the union members.
4) Discuss the forms of Industrial Disputes?
a) Strikes
 It is a continuous withdrawal of labour from production.
 Work by a group of persons employed in any industry, acting in combination or a refusal under
a common understanding of any number of persons who are been so employed to continue to
work.
(i) Primary Strikes
 These strikes are generally aimed against the employers with whom the dispute exists.
 They may include the form of a stay-away strike, stay in or protest strike.
(ii) Secondary Strikes
 These strikes are also called the “sympathy strikes”.
 In this form of strike, the pressure is applied not against the employer with whom the workmen
have a dispute but against the third person who has good trade relations with the employer.
 These relations are severed and the employer incurs losses.
b) Lock-Outs
 It is the counter part of strikes.
 While a strike is an organized withdrawal of supply of labour, withholding demand for it.
 Lock-out is the weapon available to the employer to shut down the place of work till the
workers agree to resume work on the conditions laid down by the employer.
c) Gherao
 It means to surround.
 This can happen outside the organisational premises too.
 The managers who are not allowed to move for a long time.
 The confinements are cruel and inhuman like confinement in a small place without lights and
for long periods without food and water.
 The persons confined are humiliated with abuses and are not allowed.
5) Discuss the Types of Industrial Disputes?
a) Interest Disputes
 These disputes are also called “Economic Disputes”
 Such types of disputes arise out of terms and conditions of employment out of the claims made
by the employees or offers given by the employers.
 Demands are generally made with a view to arrive at collective agreement.
b) Grievance Disputes
 It arise out of application of existing agreements or contracts between the employees and the
management.
 They relate to individual worker or a group of workers in the same group.
 Such disputes are also called “individual disputes”
 Grievances are not settled as per the procedure laid down for this purpose, these then results in
betterment of the working relationship and a climate for industrial strife and unrest.
 Such grievances are often settled through laid down standard procedures like the provisions of
the collective agreement, employment contract, works rule in this regard.
SECTION –C (10 MARKS)
1) Explain the Causes of Industrial Dispute.
a) Economic Causes
 The demand for wages has never been fully met because of continuously rising inflation and
high cost of living.
 Wage differential among industrial sectors, regional levels and geographical levels.
 These include wages, bonus, allowances, benefits, incentives and working conditions.
b) Management Practices
 Managements threat of use in exercising the rights of workers to organize themselves in the
form of union as per the legal provisions.
 The management’s unwillingness to recognize a particular trade union and verifying the
representative character of the trade union.
 Its unwillingness to talk over any dispute with the employees, even when trade unions want it
to do so.
 Forcing workers either to join a particular trade union from joining a trade union.
 To dismiss workers by way of discrimination or any other subjective ground.
 The management’s for consulting workers in the matters of recruitment, promotion, transfer,
merit awards etc.
 The benefits offered by the management to workers are far from satisfactory.
 Violation of norms by the management such as code of discipline, grievance procedures, and
agreements entered into between workers and management etc.
c) Trade Union Practices
 Each union tries to show it’s greater for the worker’s cause so as to attract more and more
workers to its folds.
 The settlement arrived at between one union and management is opposed by other union.
 Dispute between the workers and the management.
 Trade unions oppose settlements and the dispute remains unresolved.
d) Legal and Political Factors
 These factors also cause industrial disputes.
 Most of the labour laws enacted long back have by now outlived their relevance to a great
extent in the changed industrial environment.
 Trade unions are erupted very much in the country.
 Political parties divide unions on party lines.
 The political party which is in power invariably favours a trade union which is used it.
 The outcome is predictable.
2) What the measures to strengthen the trade union movement in India?
a) Maintaining Unity - Past experiences indicate that unions, political fight, disunity among the
ranks of workers etc have been responsible for union can be striken and maintained in many ways
they are
 (i) All workers should join hands to form a single union to represent all their demands.
(ii) All unions with different political influence should have one policy, one programme, one
objective and one method for the labour movement.
b) Free from Political Influence
 To strengthen the trade union movement is the provision of leaders from the ranks of the
workers themselves.
 These union leaders should be full time paid officers of the unions having qualities such as
literate, organizing capacity, hardworking, cool in temper and patience.
 Leadership qualities among the workers can also be developed through education and training.
c) Workers Education
 Trade union has confined their attention to its member’s demands only.
 It is now high time for trade unions to assume the responsibility of inculcating in the workers
sense of discipline and responsibility to perform their jobs satisfactorily.
 The workers need to be made understand fully first their duties and responsibilities and then
their rights.
d) Adequacy of Funds
 Small sized firms suffer from their weak financial position.
 On account of poor financial resources, the workers did not prolong and ended in failure.
 The maintenance of strike funds by the union is a necessity.
 This strike fund would be used to help workers during strikes.
 This will not only strengthen the bargaining position of the unions but they will also get the
loyalty of the workers.
e) Welfare Activities for Workers
 Efforts to improve the financial status, the trade unions may effectively start activities such as
provisions of day schools for children, reading rooms, libraries, co-operative stores etc.
 These efforts help make workers loyal to their unions.
 UNIT– V
SECTION – A ( 2 MARKS)
1) Define HR Audit.
“HR audit evaluates the HR activities in an organisation with a view to their
effectiveness and efficiency”
2) Give the meaning for Audit?
An audit is a review and verification of completed transactions to see whether they
represent a true state of affairs of the business. Thus an audit is an examination and verification of
accounts and records.
3) What is Observation Method?
HR auditor should also observe the employees in their natural environment such as at
workplace, canteen, training centres etc to assess the extent to which a human resource
development conducive and supportive exists in the organisation.

4) Write short on Outside Authority Approach?

The results of their organisation are compared with those of the Model Company, often
the auditors are standards set by an outside consultant as benchmark for comparison of own
results. This approach is called the outside authority approach.
5) What is External Audit?
The External Audit is conducted by outsiders specifically employed for this purpose.
The advantage of the external audit is to get an unbiased evaluation by competent people of the
manpower management function.
6) What do you by the term Employee Turnover?
Employee Turnover refers to the process of employees leaving an organisation and
requiring to be replaced. High turnover involves increased costs on recruitment, selection and
training. In addition, high turnover may lead to disruption of production, problems in quality
control and difficulty in building teamwork and morale.
7) What is Fostering Strategic Business Plans?
HR audit compels top management to think about such plans. Since the employees cannot
participate in an HR audit without some sharing og these plans, the audit forces the top
management to share their plans, which increases employee involvement and commitment to the
achievement of the strategic business objectives of the organisation. This is known as Fostering
Strategic Business Plans.
8) Give the meaning for Interview Method?
Top management and senior management of the organisation are interviewed by the HR
auditor to solicit information, thinking and perspectives on the future growth plans and goals of
the organisation.
SECTION – B ( 5 MARKS)
1) Explain the Nature of HR Audit.
 An HR audit is an independent, objective and critical examination of the HR functions of an
organisation.
 It gathers data about the people, process, structure and policies of an organisation as part of
investigation.
 It establishes a benchmark for measuring the actual performance of the HR department so as to
identify the performance and efficiency gaps.
 It detects non-compliance by the HR department on matters concerning statutory provisions,
corporate goals and HR policies while performing HR functions.
 An HR audit is done by the internal employees or the external consultants with expertise in HR
management and basic knowledge in law and auditing.
 The HR audit is normally carried-out at regular intervals in the organisation. It may be
conducted once in a year.
 The HR audit report is normally sent to the senior management for necessary action in order to
ensure better regulative and other compliances by the HR department.
2) Discuss the Objectives of Audit?
 To identify the degree of efficiency in the performance of the HR department in implementing
the HR policies and practices of the organisation.
 To determine whether HR functions are performed according to the established practices and
procedure of the organisation.
 To measure the HR department’s record of compliance with statutory provisions regarding
hiring, compensation, safety and settlement etc.
 To discover the areas where saving of cost could be achieved in HR activities like recruitment,
development, retention and separation of human resource.
 To have an improved control and check on all internal operations of the organisation.
 To create a sense of discipline among the employees by investigating their past actions
periodically.
 To provide feedback to the employees about the areas of good performance and areas where
improvements are required.
 To convert HR management from an abstract concept into a measurable and quantifiable
activity.
 To determine the HR areas and functions which require further research and development
 To recognize the good work done by the HR people and reward them appropriately.
 To prepare the organisation for countering the possible legal actions form the employees
effectively.
3) Discuss the Approaches to HR Audit?
a) Comparative Approach
 In the comparative approach the auditors identify another company as model.
 The results of their organisation are compared with that of the company.
b) Outside Authority Approach - The results of their organisation are compared with those of
the company, often the auditors use standards set by an outside consultant as benchmark for
comparison of own results. This approach is called outside authority approach.
c) Statistical Approach
 Statistical measures of performance are developed, based on the company’s existing
information.
 Examples of such measures are absenteeism and turnover rates.
 These data help auditors to assess the performance.
d) Compliance Approach
 In the compliance approach, auditors review past actions to determine if those activities comply
with legal requirements and company policies and procedures.
 A final approach is for specialists and operating managers to set objectives in their areas of
responsibility.
e) Management by Objectives
 The MBO approach creates specific goals against which performance can be measured.
 Then the audit team reaches actual performance and compares it with the objectives.
4) What are the Methods of Collecting Information for HR Audit?
a) Interview Method
 Top management and senior management of the organisation are interviewed by the HR auditor
to solicit information, thinking and perspectives on the future growth plans and goals of the
organisation.
 It involves understanding of the organisational culture, working style and work planning system
of the organisation.
 Human resource development strategies to pursue future organisational goals is also analyzed.
b) Questionnaire Method
 The questionnaire should be carefully constructed and must be in compensate with the
objectives of the HR audit.
 The questionnaire should be given to a representative sample of the employees and its size
should be as large as time, cost and resources permit for greater dependability of the data
collection.
c) Observation Method – HR auditor should observe the employees in their place to assess the
extent in which a human resource development conductive and supportive environment which
exists in the organisation.
d) Analysis of Records and Secondary Data Method – Various secondary sources of human
resource development data can provide the much needed insight into the organisations human
resource development assets and liabilities.
e) Workshop Method
 Large scale interactive process can be utilized to asses human resource development systems
such as performance appraisal, potential appraisal, counseling, coaching and mentoring
program.
 Each group is then required to make a presentation on their theme and a representative presents
it before all the groups for suggestions and discussions.
f) Task Forces Method
 A task force can be constituted to identify, evaluate and recommend an appropriate solution to
the identified human resource development issues, problems, strategies and concerns.
 HR auditor can work on this for further development and insight.
SECTION – C (10 MARKS)
1) Discuss the Benefits of HR Audit?
a) Fostering Strategic Business Plans
 HR audit compels top management to think about such plans.
 Since the employees cannot participate in an HR audit without some sharing of these plans, the
audit forces the top management to share their plans, which increases employee involvement and
commitment to the achievement of the strategic business objectives of the organisation.
b) Clarity of Role of HR Function
 HR audit draws the attention of employees at various levels to the important role of the human
resource development department, current as well as the future.
 Clarity of human resource development function increases understanding of line managers
about their human resource development role and increases their managerial and strategic support
to the function.
 Activities more aligned to the business priorities of the organisation.
c) Organisational Competency Analysis
 HR audit identifies the strengths and weakness in some of the management systems existing in
the organisation.
 Absence of systems that can enhance human productivity and utilization of the existing
competency which may have an effect on the work procedures, delegation of powers,
clarification of roles and responsibilities, developing of financial and accounting procedures
and systems, strengthening the information systems and sharing of information.
d) HR Systems Analysis – The HR audit has helped most of the organisations in taking stock of
the effectiveness of their human resource development systems and in designing or re-
designing the human resource development systems.
e) ROI Analysis
 An HR audit examines the return on investment on various human resource development
programs and strategies.
 As direct investments are made in training, any cost-benefit analysis draws the attention of the
top management and HR managers to review the training function with relative ease.
f) Increased Focus on Human Resources and Human Competencies
 HR audit is to focus on new knowledge, attitudes and skills required by the employees in the
organisation.
 This differentiation has been found to help organisations identify and focus sharply on the
competency requirements and gaps.
 The audit establishes a system of role clarity and fixing accountabilities.
 This can take place through separate role clarity exercises or through the development of an
appropriate performance appropriate system.
g) Strengthening Performance Improvement Mechanism
 HR audit can give significant inputs about the existing employees.
 This gets assessed through performance appraisals as well as through the work culture and
other culture dimensions.
 A number of organisations have introduced systems of performance planning, sharing of
expectations and documenting the accountabilities of employees.
2) Explain the Scope of HR Audit.
a) Audit of
 Determine the objective of each activity.
 Identify who is responsible for its performance.
 Review the performance.
 Develop an action plan to correct deviations.
 Follow up the action plan.
b) Audit of Managerial Compliance
 This involves audit managerial compliance of personnel policies, procedures and legal
provisions.
 Compliance with the legal provisions is particularly important as any violation makes the
management guilty of an offence.
c) Audit of Human Resource Climate
 The HRM climate has an impact on employee motivation, morale and job satisfaction.
 The quality of this climate can be measured by examining employee turnover, absenteeism,
safety records and attitude surveys.
(i) Employee Turnover
 It refers to the process of employees leaving an organisation and requiring to be replaced.
 High turnover involves increased costs on recruitment, selection and training.
 High turnover may lead to disruption of production, problems in quality control, difficulty in
building teamwork and morale.
(ii) Absenteeism
 It refers to the failure on the part of employees to report to work, they are scheduled to work.
 Unauthorized absence constitutes absenteeism.
 It is computed and expressed in terms of percentages.
 Absenteeism costs money to the organisation, reflecting employee dissatisfaction with the
company.
(iii) Safety Records
 Organisations maintain records relating to accidents.
 Accidents do cost money to the organisation.
 They also reflect the prevailing organisational climate.
 The management must have a safety plan and evaluate its effectiveness.
(iv) Attitude Surveys
 Attitude surveys are the most powerful indicators of organisational climate.
 Attitudes determine an employee’s feeling towards the organisation, supervisor, peers and
activities.
 Attitude surveys may be conducted through face-to-face interviews but are usually done
through questionnaires.
 The resulting information from the survey provides an invaluable what employees are feeling
and thinking.
(v) Audit of Corporate Strategy
 HR professionals do not set corporate strategy determines its success.
 Corporate strategy helps the organisation gain competitive advantage.
 By assessing the company’s internal strengths and weaknesses and its external threats and
opportunities, the senior management devises ways of gaining an advantage.
3) Discuss the Process of HR Audit?
a) Determining the Objectives of HR Audit
 The HR audit may attempt to know the efficacy of the HR policies, procedures and practices
and practices, the regulatory compliance by the HR department between the corporate strategy
and the HR strategy.
 HR auditor focused and helps him to choose relevant information from the reports and personal
files.
 The organisation decides whether to entrust the task of HR audit to internal HR specialists.
b) Developing a Rough Audit Plan and its Process
 The HR auditor prepares a rough sketch about where they should begin, how they should
proceed, which areas must be focused on and which sources must be used.
 The auditor can also identify the sources to be tapped for gathering relevant information.
c) Gathering Background Data
 The auditor gathers general information about external and internal factors.
 Regarding the external environment, the HR auditor may seek information on the competitive
positions of the organisation, an industry overview and the regulatory environment within which
the organisation normally functions.
 The auditor may also gather specific information about the present competitive strategy of the
organisation, labour market conditions and opportunities for the industry.
 The organisation also finalizes the instruments of data collection like the interview schedule,
questionnaire, document reviews, focus groups and observation.
 Depending upon the nature, intensity and size of the data required the auditor may choose a
single or multiple tools for effective data collection.
e) Finalizing the Audit Plan
 The HR auditor may make final changes in the rough audit plan.
 This may include changes in the audit goals, sources of data and techniques of data collection.
 The final audit plan must have complete clarity on the audit objectives, the timeframe for
auditing, the target departments and the people, the type of data needed, the data collection
technique to be used for each source and the cost of the exercise.
f) Gathering Complete Audit Data
 The HR auditor must compile all relevant information from different sources.
 The data collection process is influenced by the scope and focus of audit, the end user
requirements and the ultimate applications of results.
 The HR auditor may conduct interviews with the senior management to gather the relevant
information.
 The HR auditor may use questionnaires for gathering necessary data from the employees of HR
and other departments.
g) Developing an Audit Report
 The audit report usually covers all the key areas of HR operation like hiring, training,
compensation, performance, evaluation and industrial relations.
 It may also deal with other HR related factors like regulatory environment, global HR strategy,
functional utilization of HR, strategic HR planning and management, work environment, legal
environment, socio-technical integration, job designs, internal and external relations, decision-
making style, communication style, the degree of decentralization and the Human Resource
Information System (HRIS).