1.

What is Basic Salary

Ans. Basic salary is the fixed amount of money an employee receives before any extras like
bonuses, allowances, or benefits are added. It forms the core part of the salary and is usually
determined based on the employee's role, experience, and industry standards.

2. Bonus
Ans. A bonus is additional compensation given to employees on top of their regular salary, often
based on performance, company profits, or special occasions. Bonuses can be annual,
performance-based, or festival-based.

3. Allowance
Ans. An allowance is a fixed amount paid to employees to cover specific expenses related to their
job, such as house rent (HRA), travel (TA), medical, or dearness allowance (DA).

4. Incentives
Ans. Incentives are rewards given to employees to motivate them to perform better and meet
specific business goals. They can be in the form of cash, stock options, or other benefits.

5. Commission
Ans. A commission is a payment based on the completion of a task or achieving a target, often
used in sales jobs. It is calculated as a percentage of the value of sales made..

7. Fair Wage
Ans. A fair wage is higher than the minimum wage but lower than the living wage. It reflects the
productivity of the worker and the employer’s ability to pay while ensuring a reasonable standard
of living.

8. Living Wage
Ans. A living wage is the income needed for an employee to meet their basic needs, such as
housing, food, education, and healthcare. It ensures a decent quality of life.

9. Fixed Pay
Ans. Fixed pay is the guaranteed part of an employee’s salary, which includes basic salary and
any fixed allowances. It does not vary based on performance or company profits

10. Variable Pay

Ans. Variable pay is the part of an employee’s salary that depends on performance, such as
bonuses, commissions, or incentives. It is linked to individual or company performance.

11. What is Hay Job Evaluation Technique in Compensation Management

● Ans. The Hay Job Evaluation Technique is a method used to evaluate jobs based on three
main factors:
● Know-how – The knowledge and skills required for the job.
● Problem-solving – The complexity of the problems handled in the job.
● Accountability – The responsibility for outcomes and results.
● It helps organizations determine the relative value of different jobs and set fair pay
structures.

12. Advantages & Disadvantages of Hay Job Evaluation Method

Advantages:
● Provides a consistent and fair evaluation of jobs.
● Helps in designing a clear pay structure.
● Enhances internal equity and external competitiveness.
Disadvantages:
● Time-consuming and complex.
 ● Requires expertise to implement correctly.
● May not fully capture the value of creative or unique roles.

13. What is Industrial Relation

Ans. Industrial relations refer to the relationship between employers, employees, and trade unions.
It involves the management of workplace issues, resolving conflicts, and ensuring a harmonious
work environment.

14. What are the Key Parties in Industrial Relations Include

● Employers – Provide work and define the terms of employment.
● Employees – Perform work and expect fair treatment and compensation.
● Trade Unions – Represent employee interests and negotiate with employers.
● Government – Regulates labor laws and ensures fair practices.

15. What is the Code on Wages 2019

● Ans. The Code on Wages, 2019 consolidates and simplifies labor laws related to wages,
including:
● Minimum wages
● Payment of wages
● Equal remuneration
● Bonus payments

16. Code on Industrial Relations 2020

● Ans. This code merges and simplifies three laws related to industrial relations:
● Trade Unions Act
● Industrial Employment Act
● Industrial Disputes Act
● It regulates labor strikes, layoffs, and dispute resolution processes.

17. Code on Social Security 2020

● Ans. This code consolidates laws on social security and benefits such as:
● Employee Provident Fund (EPF)
● Employee State Insurance (ESI)
● Maternity benefits
● Gratuity
● Disability insurance

18. The Occupational Safety, Health, and Working Condition Code 2020
● Ans. This code regulates worker safety and working conditions, including:
● Health and safety standards
● Work hours and overtime
● Working environment

20. Relationship Between Individual’s, Department’s, and Organization’s Performance

● Individual performance contributes to the success of the department.
● Department performance affects overall organizational performance.
● Strong individual and departmental performance drive business growth and success.

21. What is Key Result Area (KRA) / functions

Ans. KRAs are the specific areas where an employee’s performance directly affects business
outcomes. They help employees focus on their key responsibilities and measure their
effectiveness.
● ans. Define employee roles and responsibilities.
● Align individual goals with organizational objectives.
● Measure and evaluate employee performance.
● Improve accountability and motivation.
23. Phenomenon of the Bell Curve
Ans. The bell curve is a method of performance appraisal where employee performance is divided
into three categories:
High performers (top 20%)
Average performers (middle 70%)
Low performers (bottom 10%)
It helps in identifying top and low performers for rewards or improvement plans.

24. Advantages & Disadvantages of Using Bell Curve

Advantages:
● Provides a structured approach to performance evaluation.
● Helps in identifying and rewarding top talent.
● Encourages competitive performance.
Disadvantages:
● Can create unhealthy competition among employees.
● May unfairly label average performers as low performers.
● Demotivating for those in the lower end of the curve.

1. Explain the objectives and functions of HRM in detail.

Objectives of HRM:
• Employee Welfare: Ensuring the well-being of employees through fair compensation,
benefits, and creating a safe working environment.
• Optimal Utilization of Resources: Efficiently utilizing the skills and talents of employees for
maximum productivity.
• Employee Development: Focusing on the growth and development of employees through
training, career progression, and skill-building.
• Legal Compliance: Ensuring that the organization complies with labor laws and regulations.
• Performance Management: Ensuring that employee performance aligns with organizational
goals.
Functions of HRM:
• Recruitment and Selection: Identifying job openings, attracting candidates, and selecting
the best talent.
• Training and Development: Equipping employees with the skills necessary for their roles
and future advancement.
• Compensation and Benefits: Developing salary structures and benefits packages to ensure
fairness and competitiveness.
• Employee Relations: Maintaining positive relationships between employees and
management.
• Performance Appraisal: Assessing employee performance to ensure they meet
organizational goals and personal development.

2. Compare and contrast Personnel Management and HRM with examples.

Personnel Management:
• Focuses primarily on administrative tasks such as payroll, compliance with labor laws, and
maintaining personnel records.
• Reactive approach to solving employee issues.
• Example: A company that mainly focuses on paying employees and handling grievances
with minimal attention to strategic planning.
HRM:
• A more proactive, strategic approach that focuses on aligning human resources with
organizational goals.
• Involves development, employee engagement, and talent management.
• Example: A company that not only hires and compensates employees but also invests in
their growth through training, leadership development, and career path planning.
3. Discuss the Talent Management process and its significance in an organization.
Talent Management Process:
• Attraction: Identifying and attracting top talent to the organization through employer
branding and recruitment strategies.
• Selection: Evaluating candidates and choosing the right people for the roles.
• Onboarding: Integrating new employees into the company culture and processes.
• Development: Providing ongoing training and development opportunities to enhance skills
and prepare employees for future roles.
• Retention: Developing strategies to retain top performers, including career advancement,
competitive compensation, and work-life balance.
Significance:
• Talent management ensures that the organization has the right people in the right roles.
• It helps in improving employee engagement, satisfaction, and productivity.
• A strong talent management strategy can reduce turnover and help the organization
achieve long-term success.

4. Describe the Recruitment Process and the difference between internal and external
recruitment.
Recruitment Process:
• Job Analysis: Understanding the requirements and responsibilities of the position.
• Attraction: Creating job advertisements and promoting the vacancy.
• Screening: Reviewing applications and resumes.
• Interviewing: Conducting interviews to assess candidates' fit.
• Selection: Choosing the best candidate based on interviews and assessments.
• Offer and Onboarding: Extending an offer and integrating the new hire into the company.
Internal Recruitment:
• Promoting or transferring employees from within the organization to fill vacancies.
• Advantages: Cost-effective, quicker, and employees are already familiar with the
organizational culture.
• Disadvantages: Limited pool of candidates and may cause stagnation or resentment among
non-promoted employees.
External Recruitment:
• Sourcing candidates from outside the organization through job boards, agencies, and
networking.
• Advantages: A wider pool of candidates with diverse skills and perspectives.
• Disadvantages: Can be more costly and time-consuming.

5. Explain Performance Appraisal in detail. Discuss any five methods used for performance
evaluation.
Performance Appraisal:
• Performance appraisal is the systematic evaluation of an employee's performance,
strengths, weaknesses, and potential for development. It helps in making decisions
regarding promotions, compensation, and training needs.
Five Methods of Performance Appraisal:
1. Rating Scales: Employees are rated on various traits (e.g., communication, leadership) on a
numerical scale.
2. 360-Degree Feedback: Collecting feedback from peers, subordinates, and supervisors to
get a comprehensive view of an employee’s performance.
3. Self-Assessment: Employees evaluate their own performance, often used in combination
with other methods.

6. What is an HR Scorecard? How does it help in strategic HR planning?

HR Scorecard:
An HR Scorecard is a tool that measures the performance of HR activities in alignment with an
organization's strategic objectives. It includes key performance indicators (KPIs) such as
employee turnover, training effectiveness, and recruitment metrics.
Strategic HR Planning:
• It helps HR departments understand how their activities contribute to overall organizational
goals.
• Allows HR managers to track the effectiveness of HR initiatives.
• Provides data that can inform decision-making and improvements in HR strategies

7. Discuss the MBO process in detail with its benefits and limitations.
MBO Process:
• Goal Setting: Employees and managers collaboratively set specific, measurable, and time-
bound objectives.
• Action Plans: Employees outline the steps to achieve the objectives.
• Monitoring Progress: Regular meetings to assess progress toward the goals.
• Performance Appraisal: Employees are evaluated based on goal achievement.
Benefits:
• Clear, measurable objectives improve focus and performance.
• Increases employee involvement and accountability.
• Aligns individual goals with organizational objectives.

8. Describe the 360-Degree Appraisal Method and how it differs from Self-Appraisal.
360-Degree Appraisal:
• Involves feedback from a variety of sources: managers, peers, subordinates, and
sometimes customers.
• Provides a comprehensive view of an employee’s performance and behavior from multiple
perspectives.
Self-Appraisal:
• Employees evaluate their own performance, identifying strengths and areas for
improvement.
• It is typically used as part of the overall appraisal process, with the employee’s self-
assessment serving as a basis for discussion with their manager.
Differences:
• Scope: 360-degree feedback is more comprehensive, involving multiple stakeholders, while
self-appraisal is focused on the individual.
• Objectivity: 360-degree feedback can provide more objective insights, whereas self-
appraisal might be biased.

9. How does Performance Appraisal contribute to employee development? Give suitable

examples.
• Performance appraisals provide employees with constructive feedback, helping them
understand their strengths and areas for improvement.
• Example: An employee receives feedback on leadership skills, leading to the identification
of training opportunities and a development plan for further growth.
• Appraisals also help set clear goals, which guide employees in improving performance and
career development

10. Explain the role of HR Analytics in Performance Appraisal and how it improves
decision-making.
HR Analytics:
• HR analytics involves the use of data to assess and improve HR functions, including
performance appraisal.
• It allows HR managers to identify trends, such as performance patterns, training needs, and
employee turnover risks.
Improvement in Decision-Making:
• By using data, HR managers can make more objective, data-driven decisions regarding
promotions, training, and compensation.
• Predictive analytics can also identify potential performance issues before they become
significant problems, allowing for proactive solutions.

13. discuss how HR as a factor of competitive advantages.

Ans Human Resources (HR) can give a company a big advantage over others by hiring the right
people, training them well, and keeping them motivated. Skilled and happy employees work better,
solve problems faster, and treat customers well. When a company has a strong HR team, it can
create a positive work culture, reduce employee turnover, and improve performance. HR also
helps build strong teams, develops future leaders, and ensures everyone works towards the
company’s goals. For example, companies like Google or Infosys are successful not just because
of their products, but also because of their talented and motivated employees

15. Environmental factor influencing HRM.

Ans External Factors (outside the company):
• 1. Economic Conditions:
When the economy is good, companies hire more people. During a slowdown or recession,
hiring may stop, and HR may have to manage layoffs.
• 2. Technological Changes:
New technologies require employees to learn new skills. HR has to arrange training and hire
tech-savvy workers.
• 3. Legal & Political Environment:
HR must follow labour laws, such as minimum wages, working hours, safety rules, and anti-
discrimination policies.
• 4. Social & Cultural Factors:
HR must respect different values, traditions, and work habits of people from different
backgrounds. This is especially important in global companies.
• 5. Competition:
Companies compete to hire the best talent. HR needs to offer better salaries, work culture, and
growth opportunities to attract and keep good employees.
Internal Factors (inside the company):
• 1. Company Culture:
The values and style of working in a company affect how HR manages employees.
• 2. Organizational Goals:
HR activities are planned based on the company’s goals – for example, hiring more people if
the company wants to expand.
• 3. Employees:
The needs, skills, and attitudes of current employees also influence HR decisions like
promotions, transfers, and training.

16. what is the need of human resource planning HRP and its stages
Ans. HRP means planning in advance to make sure the organization has the right number of
people, with the right skills, at the right time. It helps in hiring, training, and managing employees
according to future needs.
Need for Human Resource Planning
1. Right People at the Right Time:
HRP helps avoid having too many or too few employees by planning for future needs.
2. Fills Skill Gaps:
It identifies what skills are missing and helps plan training or hiring to fill those gaps.
3. Reduces Hiring Delays:
Planning ahead helps avoid last-minute rushes in recruitment.
4. Helps During Business Growth:
If a company wants to grow or expand, HRP ensures enough people are available to
handle extra work.
 5. Manages Employee Turnover:
It prepares for people leaving the company (retirement, resignation) by planning
replacements in advance.
6. Cost Control:
Avoids unnecessary hiring, saving money on salaries and training.
Stages of Human Resource Planning (HRP):
1. Analysing Organizational Goals:
o Understand the company's future plans (expansion, new projects, etc.)
o HR needs to align its planning with these goals.
2. Forecasting Demand for Human Resources:
o Estimate how many employees and what kind of skills will be needed in the future.
o Example: If a new branch is opening, HR must plan for extra staff.
3. Analyzing Current Human Resources (Supply):
o Check how many employees the company currently has and what skills they possess.
o Identify gaps or extra staff.
4. Identifying Gaps (Demand vs. Supply):
o Compare the future needs (demand) with the current workforce (supply).
o Find out if there is a shortage or surplus of employees.
5. Action Plan (HR Strategies):
o If there is a shortage: plan recruitment or training.
o If there is a surplus: plan transfers, retraining, or voluntary retirement.

17. Explain the concept of succession planning

Ans Succession Planning is the process of preparing future leaders in a company. It means
identifying and training employees so that when important people (like managers or team leaders)
leave or retire, someone else is ready to take their place without affecting the business.
Why is it important?
• To avoid disruption if a key employee leaves suddenly
• To save time and cost on hiring from outside
• To motivate employees by showing them growth opportunities
• To ensure the company always has skilled leaders available

18. Discuss HR demand forecasting techniques with examples

Ans. HR demand forecasting is the process of predicting how many employees and what skills
the organization will need in the future. There are several techniques to do this, each with its own
way of estimating the required workforce.
1. Expert Opinion Method: HR managers or other company experts predict future HR needs
based on their experience and knowledge about the company’s growth plans and industry trends.
Example: A senior manager might estimate that the company will need 20 more salespeople next
year based on their understanding of the market and upcoming product launches.
2. Trend Analysis: This technique looks at past data to predict future demand. It uses historical
data on the number of employees needed in previous years to make predictions for the future.
Example: If a company has consistently hired 10 new customer service employees every year for
the past five years, it can predict that they will need about 10 more in the next year as well
3. Ratio Analysis:This technique involves calculating the ratio of employees needed per unit of
business activity (e.g., sales, production). It helps estimate how many people will be needed as
the business grows .eg - A retail store might calculate that it needs 2 employees per 100
customers served. If the number of customers is expected to increase, they can use this ratio to
forecast how many employees they will need.
5. Delphi Technique:This is a group-based approach where a panel of experts provides their
forecasts, and then the forecasts are discussed, refined, and adjusted until a consensus is
reached.Example:A group of managers might provide their individual forecasts for HR needs, and
after rounds of discussion, the group agrees on the final demand forecast.

19. Discuss the major types of managerial training and development

Ans. 1. On-the-Job Training: Managers learn by performing tasks and taking on responsibilities
in their actual work environment. They receive hands-on training while working on real projects.
Example: A new manager might be assigned a project with guidance from a senior manager.
They learn by handling the tasks themselves but with support when needed.
2. Off-the-Job Training: Managers attend external training programs, workshops, or seminars to
gain new skills and knowledge. These can be in-person or online courses, and are conducted
away from their usual work environment .Example: A manager might attend a leadership
workshop or an online course about project management to improve their skills.
3. Management Development Programs (MDPs): These are structured programs designed to
provide comprehensive learning experiences to develop leadership and managerial skills over a
longer period. It might involve a combination of training, job rotations, mentorship, and
assignments. Example: A company might offer an 18-month program where new managers rotate
through different departments and undergo training in key management areas like decision-
making, budgeting, and team leadership.
4. Simulation and Case Studies: Managers participate in simulations or analyze case studies to
practice decision-making and problem-solving in a safe, controlled environment. These methods
help managers think critically and apply theoretical knowledge to real-life situations.
Example: Managers might participate in a simulated business game where they make decisions
about managing resources, pricing, and market expansion, seeing the results of their choices in
real-time.

20. what are the importance and objectives of performance appraisal.

Ans. Importance of Performance Appraisal:
• Improves Employee Performance: Performance appraisals help identify areas where
employees are excelling and areas where they need improvement. By providing feedback, it
motivates employees to perform better.
• Helps in Career Development: Performance reviews allow managers to suggest training, skill
development, or promotions based on an employee’s performance. This helps employees grow
in their careers.
• Supports Decision Making: Appraisals provide important data for making decisions about
promotions, salary increases, and bonuses. They ensure decisions are based on objective
performance metrics.
• Aligns Individual and Organizational Goals: Regular appraisals help ensure that employees'
goals are aligned with the company’s objectives. This drives overall organizational success.
• Boosts Communication: Performance appraisals create a platform for open and honest
communication between employees and managers, helping both parties understand
expectations and feedback.

Objectives of Performance Appraisal:

• Assess Job Performance: The primary goal is to assess how well employees are performing
their jobs, based on set criteria like quality of work, productivity, and teamwork.
• Provide Feedback: Appraisals offer a chance to give employees constructive feedback on
their strengths and areas for improvement.
• Set Goals for Future Performance: It helps in setting new goals and expectations for the
future, creating a clear path for improvement and growth.
• Determine Compensation and Rewards: Performance appraisals help in determining
promotions, salary increases, bonuses, and other incentives based on performance.
• Identify Potential for Career Growth: The appraisal process identifies high-performing
employees who are potential candidates for leadership roles, promotions, or special projects.

21.short notes on Principles of Wage and Salary administration & Fringe Benefits
Ans. Principles of Wage and Salary Administration:
• Fairness and Equity: Employees doing similar work should get similar pay. Pay should also
match the effort, skills, and responsibility of the job.
• Internal Consistency: Wages should be based on the value of the job within the organization.
More responsible jobs should be paid more.
• External Competitiveness: Salaries should be competitive with what other companies in the
same industry are paying.
• Ability to Pay: The company should pay wages based on what it can afford, depending on its
financial health.
• Compliance with Laws: Wage policies must follow labor laws like minimum wages, overtime,
etc.
Fringe Benefits
Fringe benefits are extra rewards given to employees in addition to their regular salary. These
are meant to improve job satisfaction and well-being.
Common Examples:
• Health insurance
• Paid holidays and sick leave
• Retirement benefits (like PF, pension)
• Bonuses and incentives
• Free meals, transport, or accommodation
• Educational assistance for employees or their children

22. short notes of collective bargaining

Ans. Collective bargaining is the process where employers and a group of employees (usually
represented by a union) come together to negotiate and agree on working conditions.
• It is used to decide on wages, working hours, benefits, job safety, and other employment
terms.
• The goal is to reach a mutual agreement (called a collective agreement) that benefits both
workers and management.
• It helps prevent disputes and maintain peace in the workplace

23. Explain Grievance handling / steps

Ans. Grievance handling is the process of listening to and resolving employee complaints or
problems related to their job, workplace, or management. A grievance could be about working
conditions, pay, behavior of supervisors, unfair treatment, or company policies.
Steps in Grievance Handling Procedure:
• Receive the Grievance:The employee shares their complaint either verbally or in writing.
• Acknowledge and Record:The grievance is accepted respectfully and recorded for follow-up.
• Investigate the Issue:Gather facts, speak to everyone involved, and understand the root cause
of the problem.
• Find a Solution:Based on the investigation, management offers a fair and practical solution.
• Communicate the Decision:The solution is shared with the employee and discussed clearly.
• Follow-Up:Check if the problem has been resolved and ensure it doesn’t happen again.

24.what is misconduct
Ans. Misconduct means bad or improper behavior by an employee at the workplace that goes
against company rules, policies, or professional standards.
Types of Misconduct:
• Minor Misconduct: Small issues like coming late, careless work, or not wearing uniform.
• Major Misconduct: Serious issues like theft, violence, fraud, or harassment, which may lead to
suspension or termination.

25. what is strategic HRM

Ans. Strategic Human Resource Management (Strategic HRM) means connecting HR activities
with the overall goals of the company to improve performance and gain a competitive advantage.
Instead of just hiring, training, and paying people, Strategic HRM focuses on long-term planning —
making sure the right people are in the right roles, with the right skills, to help the company
succeed in the future