MODEL ANSWER Code: AS M.Com., IV Semester Subject: Human Resource Management

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1 MODEL ANSWER Code: AS M.Com., IV Semester Subject: Human Resource Management 1. Short Answers: i. Organization of Human Resource: Organization of HR means arranging the available human resource and establishing authority and responsibility relationship among them to accomplish any goal. Thus, organization of human resource involves identification and grouping the activities to be performed and dividing them among the individuals and creating authority and responsibility relationships among them. ii. 1. Human Capital Value: Human resources expert on staff can increase the understanding of how important human capital is to the company's bottom line. With a smaller workforce, if just one person leaves, it leaves the company with a huge gap to fill and a potential threat to the company's profitability. 2. Budget Control: Human resources curbs excessive spending through developing methods for trimming workforce management costs, which includes negotiating better rates for benefits such as health care coverage. iii. Job Analysis: Job analysis is a detailed and systematic study of jobs to know the nature and characteristics of people to be employed for each job. It provides the analysis with basic data pertaining to specific jobs in terms of duties, responsibilities, skills, knowledge, degree of risk, etc. Thus, it is the analysis, measurement, control and redesign of a set of activities related with a job. iv. 1. To provide information about the organization it structure, products, rules and regulations, etc. to the new employee. 2. To ensure that new employee may not form false impression regarding the new place of work because first impression is the last impression. v. Types of Training On-the-job Training 1. Position Rotation 2. Understudy 3. Coaching, etc. Rotation Vestibule Training 1. Concurrent 2. Situational, etc. Off-the-job Training 1. Conference 2. Case-Study 3. Lecture, etc. 1

2 vi. Formula of Paired Comparison (Rank Order) = If there are 23 employees, they may be compared = = = =253Ways vii. Types of Incentives Financial Incentives: Salary, Wages, Bonus, etc. Non-Financial incentives Moral incentives Natural Incentives Coercive incentives viii. 1. Morale represents a composite feelings, attitudes and sentiments that contribute to general feelings of satisfaction. It is a state of mind and spirit affecting willingness to work, which in turn, affects organizational and individual objectives. 2. Morale is the degree of enthusiasm and willingness with which the members of a group work to perform their assignments. ix. Up-ward Communication: Upward Communication is the process of information flowing from the lower levels of a hierarchy to the upper levels. Upward communication helps employees to express their requirements, ideas, and feelings. Down-ward Communication: Down-ward Communication is the process of information flowing from the upper levels of a hierarchy to the lower levels. Downward communication helps to communicate instructions and orders, related with job. x. Human Resource Statistics: Human resource statistics (collection of facts/records) contains a variety of information about the employees working in the organization. Thus, it contains the information related with human resource about recruitment and selection, results of physical examinations, training and development, transfers, promotions, lay-offs, disciplinary actions, discharge or dismissals, wages/salaries, pensions, etc. Long Answers: 2. Write Meaning, two definitions of authors, a definition in your own words. Nature of HRM: All the following mentioned points need to be explained along with background and conclusion. i. Inherent Part of Management ii. Pervasive Function 2

3 iii. Basic to all Functional Areas iv. People Centred v. Personnel Activities or Functions vi. Continuous Process vii. Based on Human Relations. 3. Labour Policy: Labour policy in India has been evolving in response to the specific needs of the situation in relation to industry and the working class and has to suit the requirements of a planned economy. A body of principles and practices has grown up as a product of joint consultation in which representatives of Government, the working class and employers have been participating at various levels. The legislation and other measures adopted by Government in this field represents the consensus of opinion of the parties vitally concerned and thus acquire the strength and character of a National Labour Policy, operating on a voluntary basis. Joint committees have been set up to assist in the formulation of labour policies as well as their implementation. At the apex of this tripartite machinery is the Indian Labour Conference. The following points are needed to be explained in short followed by conclusion: 1. Types of Policies 2. Need and Benefits of the Policies 3. Recent Developments 4. Approach and Outlook 5. Industrial Relation 6. Wages and Social Security 7. Working Conditions, Safety and Welfare 8. Employment and Training Schemes 9. Productivity 4. Training is essential for both for organization as well as employees. Training is essential for employees because it gives greater job security and opportunity for advancement. Skill acquired through training is an asset for the organization as well as for the employee. The main objectives and importance of the training are as follows- 1. To up-date with the technological advancement 2. To satisfy customers with customization and customerisation. 3. To increase productivity 4. To reduce cost 5. To stabilize workforce 6. To develop high morale among employees 7. To aware to the human resource about safety and security 8. To enhance management 9. To enhance quality of work 10. To reduce working period All the above mentioned points need to be explained along with conclusion. 3

4 5. Learning helps the employees to develop and take the bigger challenges and responsibilities. Learning is essential to the employees success, allowing them to develop new initiatives, re-skill, develop workforce and increase the leadership capabilities of the people. Employees join training programs at different stages in their careers. Training & Development programs are designed to help the employees learning in a stimulating environment and gain knowledge in their field of expertise to become future leaders. Training and development facilities in India have been described with the following points- 1. Establishments of Institutes: There are at present more than 350 training institutes in the country imparting training in engineering and non-engineering trades. There is a National Council for training in vocational trades. Tailor-made training programmes are designed in a number of trades by the Directorate General of Employment and Training and the National Small-scale Industries Corporation. The National Institute of Bank Management in Bombay came into being in the I960 s endowed and patronized by the Association of Banks and the Reserve Bank of India. It conducts training courses for bank personnel. The Institute of Financial Management was established in Madras mainly to evolve study and offer instruction in the novel and emergent principles of development banking. In 1974, the Management Institute was established at Delhi to train human resource. 2. Apprenticeship Act: Under the Apprenticeship Act 1961, employers in specified industries are obliged to train a certain number of apprentices in designated trades according to the prescribed national standards. The proportion of apprentices to workers employed varies from trade to trade. It is 14% in most of the trades. At the end of the training the apprentices are tested by the National Council for Training in Vocation Trades and those found successful are awarded the National Apprenticeship Certificate. 3. Training in Institutes: During the 30 s the university system did not offer any teaching programmes in management except in a few subjects such as accounting, finance and economics as a part of the existing commerce curriculum. The establishment of the Indian Institute of Social Welfare and Business Management in Calcutta in 1945 marks the beginning of management training in India. The first major effort to establish management education in India started in the early 50 s, when the Govt, enlisted cooperation of the International Labour Organisation, the Ford Foundation and some American universities like Massachusetts Institute of Technology. 4. Training Centres: Following the recommendations of the ILO and the Urwick Orr Missions, the Govt of India established a productivity centre at Bombay which has since then run training courses in management techniques and related subjects. It was in the 50 s that a number of universities started part-time and full-time courses in management. However, it was with the establishment of the two Institutes of Management by the Govt, of India one in Calcutta and the other at Ahmedabad that management education in this country got a tremendous boost. Both these Institutes did pioneering work in taking 4

5 Indian management education to levels comparable to those in advanced countries. The Govt, of India established the third national management institute at Bangalore in 1972 and fourth at Lucknow. 5. Support from Financial Institutes: This is being supported by financial institutions and runs a large number of short-term courses for senior and top management personnel employed by financial institutions as well as for client companies. The nationalized banks have established their staff training institute to train their personnel. With the specified course of study, management training courses are run by the following institutes: (1) The Ahmedabad Textile and Industrial Research Association, (2) The South Indian Textile Research Association, Coimbatore, (3) Sri Ram Centre for Industrial Relations, Delhi, (4) The Institute of Social Studies, Delhi, (5) Vaikunth Mehta National Institute of Co-operative Management, Poona and (6) National Institute of Labour Management, Bombay. 6. Training by Professional Bodies: Professional bodies also offer a number of part-time management training courses e.g. Indian Institute of Industrial Engineers, the National Association of the Material Engineer, the Computer Society of India, the Institute of Production Engineers, the Operations Research Society of India and the National Institute of Personnel Management Calcutta. In-spite of these, many organizations have their own staff college. The Hindustan Aeronautics Limited at Bangalore, the Hindustan Lever Staff College at Bombay, and The Bharat Heavy Electrical Staff College at Tiruchirapally etc. deserve special mention. Conclusion: After discussing about training and development facilities in India with the above mentioned points, it cannot be ignored that human resource training and development is as yet a very much neglected aspect of management in India. The training aspect of human resource management has not taken roots in our country yet and there is not a proper appreciation of the value of training. In many cases training officers have been appointed just to maintain the image of a progressive outlook. Nevertheless the realization of the role of training as a management tool is gaining ground. 6. Sound Motivation Program: A sound motivation programs are widely considered to be vital to the success of any organization. It is known that the positive motivation inspires loyalty and drive among members of a working team. A sound motivation programs should garner more than self-interest to succeed. Generally, sound motivation program is closely aligned with the organization's overall agenda. Pre-requisites of a Sound Motivation Program: A well-planned employee s motivation program should include components that affect communication and relationships among all levels of staffs as well as components that impact both individual and group strengths. As, many employees with a superior sense of trust in their employers and co-workers, facilitated by a proactively positive working environment, feel that their hard work 5

6 warrants recognition beyond a paycheck. Yet, a sound motivation programme should include the following points- 1. Compensation Plans 2. Compensation Packages 3. Employee Benefits 4. Employee Performance Evaluation 5. Employee Recognition 6. Gain sharing 7. Incentive Rewards 8. Bonus Incentive Programs 9. Employee Bonus Programs 10. Employee Incentive Program 11. Employee Satisfaction 12. Employee Retention Programs 13. Executive Compensation 14. Incentive Bonus Programs 15. Others From the above mentioned points, explain any of the nine points with conclusion. 7. The model (steps) for grievance procedure through which a grievance is to be processed, may be summarized as under- First Step: The grievance is to be submitted to the departmental representative of the management, i.e. supervisor of foreman. He has to give his answer within stipulated time. Second Step: If no solution is found at the first step, the aggrieved worker can take his grievance to the head of the department, who has to give his decision within stipulated days, Third Step: If the worker concerned is not satisfied with the decision of the departmental head, he can take the grievance to the Grievance Committee. Grievance Committee must make its recommendations to the manager within specified days. The final decision of the management on the report of the Grievance Committee must be communicated its decision to the appellant worker within specified days of the receipt of the report. An appeal for revision of the final decision can be made by the aggrieved worker if he is not satisfied with it. The management must communicate its decision to the appellant worker within the time duration. Fourth Step: If the grievance still remains unsettled, the case may be referred to voluntary arbitration. Note: Two points should be noted. Firstly, a time limit has been put at every stage of the procedure. This is in recognition of the fact that justice delayed is justice denied. Secondly, throughout the process of grievance, the aggrieved worker is expected not to take resort to any direct action, the order against which representation is made must be complied with and the conciliation machinery will be resorted to only after the final decision of the management fails to satisfy the aggrieved worker. 8. A. Weighted Checklist Method: Under this method, various statements are prepared in such a manner that they describe various types and level of behaviors for a particular job. 6

7 The rater is given a checklist of the descriptions of the behaviour of the employees on job. The checklist contains a list of statements on the basis of which the rater describes the on the job performance of the employees. A checklist represents, in its simplest form, a set of objectives or descriptive statements about the employee and his behavior. If the rater believes strongly that the employee possesses a particular listed trait, he checks the item; otherwise, he leaves the item blank. Under this, the value of each question may be weighted equally or certain questions may be weighted more heavily than others. The following are some of the sample questions in the checklist. B. Forced Choice Method: A rating system used by companies to evaluate their employees. The system requires the managers to evaluate each individual, and rank them typically into one of three categories (excellent, good, poor). Forced ranking is a method of performance appraisal to rank employee but in order of forced distribution. For example, the distribution requested with 10 or 20 percent in the top category, 70 or 80 percent in the middle, and 10 percent in the bottom. The top-ranked employees are considered high-potential employees and are often targeted for a more rapid career and leadership development programs. In contrast, those ranked at the bottom are denied bonuses and pay increases. They may be given a probationary period to improve their performance. 7 Jamaluddeen Assistant Professor (Ad-hoc) Department of Commerce Gugu Ghasidas Vishwavidyalaya Central University, Bilaspur Chhattisgarh, India

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