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BA7104 Human Resource Management MBA 2014 - 2015

UNIT I
Part A
1. Define HRM. (April/May 2011)
HRM can be defined as managing(planning, organizing, directing and controlling the functions
of employing, developing and compensating human resources resulting in the creating and
development of human relations with a view to contribute proportionately(due to them) to the
organizational, individual and social goals
2. Define Personnel Management.
Personnel Management is defined by the Institute of Personnel Management (UK) as, Personnel
Management is a responsibility of all those who manage people as well as being a description of
the work of those who are employed as specialists. It is that part of management which is
concerned with people at work and with their relationships within an enterprise. It applies not
only to industry and commerce but to all fields of employment. PM is a responsibility of all
managers in an organization and it is a staff function. PM is a part of management concerned
with the people and their relationship. This applies to all organizations in the universe.
3. Difference between HRM and Personnel Management.
Personnel Management Human Resource Management 4.
1. Personnel means persons employed. Human resource management is the
Personnel Management is the management management of employees/ skills,
of people employed. knowledge, abilities, talents, aptitudes,
2. Employee in personnel management is creative abilities etc.
mostly treated as an economic man as his Employee in human resource management
services are exchanged for wage/salary. is treated not only as economic man but also
3. Employee is viewed as a commodity or as social and psychological man. Thus, the
tool or equipment which can be purchased complete man is viewed under the approach
and used. Employee is treated as a resource.
4. Employees are treated as cost center and Employees are treated as a profit center and
therefore management controls the cost of therefore, invests capital for human resource
labour. development and future utility.
5. Employees are used mostly for Employees are used for the multiple mutual
organizational benefit. benefits of the organization, employees and
their family members.
6. Personnel function is treated as only an Human resource management is a strategic
auxiliary. management function.
What are the important functions of HRM?
The functions of HRM can be classified into two categories, Managerial functions include
Planning, Organizing, Directing and Controlling, Operative functions include specific activities
of personnel management. They are Employment, Job Analysis, HR Planning, Recruitment,
Selection, Placement, Induction and Orientation, HR Development, Performance Appraisal,
Training, Management Development ,Career Planning and Development, Organization
development, Compensation, Job Evaluation, Wage and Salary Administration, Incentives,
Bonus, Fringe Benefits, Social Security Measures, Human Relations
5. Write about the importance of human factor. (April/ May 2014)
Most of the problems in organizational sections are human and social. Human factor is a very
important factor in HRM as it aims to predict and control human behaviour. If a company is
economically successful, it means, the management has been able to manage human resources
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effectively. The human resources are the active force of industrialization, and strategies for
development should concentrate particularly on their enhancement.
6. What are the objectives of HRM? (May 2011)
The objectives of HRM are as follows: To create and utilize an able and motivated workforce,
to accomplish the basic organizational goals, To establish and maintain sound organizational
structure and desirable working relationships among all the members of the organization,
acceptable and efficient leadership, To provide facilities and conditions of work and creation of
favorable atmosphere for maintaining stability of employment.
7. State the need for HR Policies.
Every organization should have personnel policies in order to accomplish the objectives of the
personnel as well as the organization. Further organization needs personnel policies in order to
a). Consider the favoritism and discrimination in treating the employees. b). ensure that the
action will be continued though the managers in key jobs.
8. What are the important roles of HR Manager? (May 2011)
1)Primary roles: Leader to lead the whole team or even organization. Supervisor to
supervise or assist the subordinates when any problem arises. Director- to direct the organization
towards the corporate goal. 2) Secondary roles: Administrator, Negotiator(with clients),
Facilitator (during conflicts), Advisor, Welfare Officer, Public relation officer
9. What are the functions involved in Acquisition?
Planning, find the demand from HR Inventory & supplying the demand.
Planning about HR requirements in an organization: Estimation, Demand & Supply, Sources of
HR, Selection process, Recruitment.
10. What are the functional areas of Management? (Nov/December 2013)
Marketing, Finance, HR, Production are the functional areas of Management in an
organization.
11. Define Quality Working Life.
The Quality Working Life can be as follows: Good environment to work, Good work culture,
Encouraging employer, High pay with perks, Good team to work with, Autonomy, Recognition,
Sense of belongingness, Caller prospects and self developments, Rewards and benefits.
12. What are the skills a manager should possess? (Nov/December 2013)
Four types of skill that a manager should possess are as follows: Technical Skill, Human
relations Skill, Conceptual Skill, Decision making skill, Leadership skill
13. Explain conceptual skill in two lines.
Conceptual thinking about the future. So the conceptual skill is a skill needed for any
mangers to think about the future, to forecast about the challenges, opportunities that lie ahead
on future and to plan about tem now itself. That type of skill is called as conceptual skill.
14. What is HR policy?
HR policies are systems of codified decisions, established by an organization, to support
administrative personnel functions, performance management, employee relations
and resource planning
15. What are the advantages of HRM Policies?
The advantages of HRM Policies are as follows: Delegation, Uniformity, Better Control,
Standards of efficiency, Confidence, Speedy decision, Coordinating devices.
16. What are the issues in business strategy affecting HRM?
Total Quality management, Mergers and Acquisitions, Reengineering, International
expansion, Downsizing, Outsourcing
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17. What are the five broad categories based on which generally HRIS was formulated?
Duties and responsibilities of every job in the organization. Skills possessed by every employee.
Future human resource needs of the organization. Current productivity of human resources.
Identification of training needs.
18. What are the new technologies influencing HRM?
1. Internet portal: This combines data from several sources into a single site; Lets user
customize data without programming skills. E.g A company manager can track labour cost by
work group. 2. Shared service centre: Consolidate different HR functions into a single location;
eliminate redundancy and reduce administrative costs; process all HR transactions at one time.
E.g. Allied signal combined more than 75 functions, including finance and HR, into a shared
service centre. 3. Application service provider: Lets companies rent space on a remote computer
system and use the systems software to manage its HR activities, including security and
upgrades. E.g. KPMG Consulting uses an ASP to host the companys computerized learning
programme. 4. Business Intelligence: Provides insight into business trends and patterns and helps
businesses improve decisions. E.g. Manages use the system to analyse labour costs and
productivity among different employee group.
19. What is e-HRM? (April/May 2014)
The processing and transmission of digitalized HR information, especially using computer
networking and the internet.
20. What are the barriers for the effective selection of the candidates for the organization?
While considering human resources planning the following external factors are kept in mind.
They are: 1.Economic 2.Political 3.Legal 4.Cultural 5.Technological 6. Cultural 7.Trade union
movement.

Part B
1. Specify the roles of Human resources manager. (April/ May 2013)
The role of Human Resources Management in an organization is multi dimensional. The HR
department has got 4 major roles Viz 1. Managerial role 2. Operational role 3. Staff role 4. Advisory
role: This consists of. Planning, organizing, directing and controlling function. Planning
function involves in determining in advance of a personnel programme that were contribute to the
goals established for the enterprise. Organising: Designing the structure of relationship among the
jobs and physical factors.-Directing: This deals with directing people to go to work willingly and
effectively through motivation, creating interest in the job or use command to complete the job.
Controlling: Regulating the activities in accordance with the personnel plan, which is in term was
formulated on the basis of an analysis of fundamental organizational goal.

As such we can bring the HR Managers role in to: Operational Roles, Administrative
Role, Fire fighting Role, Management of Services and Contemporary Role.
Operational role: Advising management for effective use of HR. Strategic Human
Resources Planning, Recruitment, selection, Training and Development, assessment of
Individual and group role-Job analysis, Job description and Job evaluation-Performance
appraisal, Merit rating, compensation and benefits-Organization Development and Planning
and Research in HR problems, policies and survey. Administrative Role: Time Keeping,
Salary and Wage administration, Maintenance of records, Human Engineering-
Man/Machine relationship and HR information and assessment system. Fire fighting Role:
Grievance Handling, Settlement of Disputes and Union Management negotiations,
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Disciplinary Procedure, Collective Bargaining, Joint council and Workers participation in


Management, Industrial relation issues and Separation. Management of Services:
Management of Canteen, co-operative stores, Transport, Crche, Hospital and first aid,
Health care and safety, Communication, Group Dynamics, Individual and group
counselling, motivation, Leadership development and Statutory compliance like PF, ESI,
Gratuity. Contemporary role: Performance management Systems, Talent acquisition,
Measuring HR performance, Leadership Development, Potential assessment, Induction of
new entrants, Integrating Human Resources, Managing information Systems, Retaining
strategies, Multi skill development and Knowledge management

2. Explain the evolution of human resource management. (May 2011)

Human Resource Management: Human Resource Management in its simplest definition means
management of organizations manpower or workforce or human resources.

Evolution of HRM
The evolution of the concept of Human Resource Management is presented below:

Period before industrial revolution The society was primarily an agriculture economy with
limited production. Number of specialized crafts was limited and was usually carried out within
a village or community with apprentices assisting the master craftsmen. Communication channel
were limited.

Period of industrial revolution (1750 to 1850) Industrial revolution marked the conversion of
economy from agriculture based to industry based. Modernization and increased means if
communication gave way to industrial setup. A department was set up to look into workers
wages, welfare and other related issues. This led to emergence of personnel management with
the major task as
- Workers wages and salaries
- Workers record maintenance
- Workers housing facilities and health care

An important event in industrial revolution was growth of Labour Union (1790) The works
working in the industries or factories were subjected to long working hours and very less wages.
With growing unrest , workers across the world started protest and this led to the establishment
of Labour unions. To deal with labour issues at one end and management at the other Personnel
Management department had to be capable of politics and diplomacy , thus the industrial
relation department emerged.

Post Industrial revolution The term Human resource Management saw a major evolution
after 1850. Various studies were released and many experiments were conducted during this
period which gave HRM altogether a new meaning and importance.

A brief overview of major theories release during this period is presented below:

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Frederick W. Taylor gave principles of scientific management (1857 o 1911) led to the evolution
of scientific human resource management approach which was involved in
- Workers training
- Maintaining wage uniformity
- Focus on attaining better productivity.

Hawthorne studies, conducted by Elton Mayo & Fritz Roethlisberger (1927 to 1940).
Observations and findings of Hawthrone experiment shifted the focus of Human resource from
increasing workers productivity to increasing workers efficiency through greater work
satisfaction.

Douglas McGregor Theory X and Theory Y (1960) and Abraham Maslows Hierarchy of needs
( 1954) These studies and observations led to the transition from the administrative and
passive Personnel Management approach to a more dynamic Human Resource
Management approach which considered workers as a valuable resource.

As a result of these principles and studies , Human resource management became increasingly
line management function , linked to core business operations. Some of the major activities of
HR department are listed as-
Recruitment and selection of skilled workforce.
Motivation and employee benefits
Training and development of workforce
Performance related salaries and appraisals.

Strategic Human Resource Management Approach


With increase in technology and knowledge base industries and as a result of global competition
Human Resource Management is assuming more critical role today . Its major accomplishment is
aligning individual goals and objectives with corporate goals and objectives. Strategic HRM
focuses on actions that differentiate the organization from its competitors and aims to make long
term impact on the success of organization.

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3. Elucidate the attributes and characteristics required for a HR manager in the


changing environment.

Knowledge and expertise in Human Resources: HR Managers should possess


foundation on the functions of human resources. And not only this, successful HR
Managers have a zeal to update their knowledge on latest practices and trends in human
resources. With their knowledge and expertise, they deal with the daily challenges that
arise in the organization.

Communicator: Communication plays a vital role in any organization and HR takes a


major role in this. HR managers play a major role in this. One of the quality of a good
communicator is to have good listening skills. Employees come to HR managers on
various issues. Listening to employees with full attention is one of good quality of a
successful HR Manager.

Presenter: Great presenters attract their audiences attention, keep them engaged and
deliver the message in a positive manner. Presentations skills are important quality of
successful HR Managers as they handle several trainings and present the information to
management.

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Innovation: Not every issue has a same or easy or ready solution. Successful HR
Managers think out of the box and deliver the best solution to their employees and the
organization.

Approachable: HR handles various aspects of employees. Successful HR Managers have


an open door policy and are approachable to their employees.

Time Management and Self Discipline: Successful HR Managers are good at managing
their time. They plan their day not just to complete their day-to-day activities but also
cater time for sudden issues.

Delegator: Its not possible to do all the work by one person. And this is understood by
successful HR Managers. HR Managers delegate work to their team members so that they
get learned and grow as a professional.

Decision maker: Successful HR Managers are strategic planners and take decisions
which are apt and considering all the facts. They are not afraid to make the hard decisions
for the benefit of the organization.

Business Acumen: Business acumen is keenness and quickness in understanding and


dealing with a business situation in a manner that is likely to lead to a good outcome.
Successful HR managers possess good knowledge and understanding of the financial,
accounting, marketing and operational functions of an organization.

Trust Advisor: Employees will open to someone they trust and seek advice on various
areas. This may not be limited to their career but also can be from their personal life.
Successful HR Managers advice employees by creating an environment of trust.
Successful HR Managers build trust through straight forward communications and
interactions.

Motivator: Every employee has different goals and objectives to achieve. Successful HR
Managers are committed to motivate. Successful HR Managers know and understand
what motivates employees and strive to give it to them.

Leader: A leader is one who visualizes big picture, focus on people, progress and
achievements, does the right thing and encouraging a rewarding culture. And this is what
the successful HR Managers possess.
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Metric Oriented: Successful HR Managers have a flair for metrics as these are useful in
improvising various process in the organization.

4. Define HR policy. What are the characteristics of good HR policy?

Human Resource policies are systems of codified decisions, established by an


organization, to support administrative personnel functions, performance management,
employee relations and resource planning.

Each company has a different set of circumstances, and so develops an individual set of
human resource policies.

Purposes

The establishment of policies can help an organization demonstrate, both internally and
externally, that it meets requirements for diversity, ethics and training as well as its commitments
in relation to regulation and corporate governance of its employees. For example, in order to
dismiss an employee in accordance with employment law requirements, amongst other
considerations, it will normally be necessary to meet provisions within employment contracts
and collective bargaining agreements. The establishment of an HR Policy which sets out
obligations, standards of behavior and document disciplinary procedures, is now the standard
approach to meeting these obligations.

HR policies can also be very effective at supporting and building the desired organizational
culture. For example recruitment and retention policies might outline the way the organization
values a flexible workforce, compensation policies might support this by offering a 48/52 pay
option where employees can take an extra four weeks holidays per year and receive less pay
across the year.

Characteristics
1. The HR policy should present the principle that will guide the organisations actions and
reflect a faith in the ethical values of employees.

As Peter Drucker has observed, The policies of an enterprise have to be balanced with the kind
of reputation an enterprise wants to build up with special reference to the social and human
needs, objectives and values.

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It should be consistent with the overall philosophy and objectives of the organisation, as well as
with labour laws and public policy.

2 The HR policy should be formulated after considering the long range plans and needs of the
organisation.

The policy should be definite, positive, clear and easily understood by everyone in the
organisation so that what it proposes to achieve in the long term is evident. Only a clear policy
statement can serve as a guide to thinking and decision-making.

3. The HR policy must be reasonably stable but not rigid. It should be flexible to cover a normal
range of activities. Change in a policy should be made only when it is essential and at fairly long
intervals.

4. The HR policy should be formulated with due regard for the interests of all the concerned
parties the employers, the employees and the public community.

It should be stated in the broadest possible terms so as to serve as a guide in practice now and in
the future.

5. The HR policy must be developed with the active participation and support of the management
and the co-operation of employees at the shop floor level and in the office. It should be
formulated with active participation of the trade unions as well.

6. The HR policy should be definite so that it is easy to understand. It should be stated in clear,
definite and easily understood terms so that what it proposes to achieve is evident.

7. The HR policy must provide a two-way communication system between the management and
the employees. It should be communicated in writing so as to remove any confusion. This is
necessary to prevent misunderstanding and to ensure uniformity of application.

8. The HR policy should be consistent with public policy. A good HR policy should recognise
individual differences and respect human dignity. It should be based on consistency in treatment
to all employees without any favouritism or discrimination.

5. Explain the types of HR policies.

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Attendance: Company policies regarding attendance go beyond simply mandating that you
show up on time. Talk to your supervisor about how you need to notify management when
youre ill and cant make it in, let your boss know youll need to take a personal day and how to
request vacation time. Management might expect you to answer emails during the evening or
weekends without extra pay; talk to your co-workers about attitudes toward extra unpaid work,
which might be different from department manager to department manager. If you travel as part
of your job, ask what the procedures are regarding travel days and if you receive compensation
for any weekend travel.

Behavior: Employees sometimes sue companies based on the behavior of nonmanagement staff
members, even when company management isnt aware of offensive behavior. Managers have
different levels of legal responsibility and culpability based on discrimination and harassment
laws. Learn not only your companys specific policies for avoiding and reporting inappropriate
behaviors, but visit credible employment websites that provide advice for avoiding harassment
and discrimination. Gossip about co-workers and discussing your pay or other employees
compensation might be grounds for termination. Ask if your company has any dating policies, if
you can do so without sending up any red flags.

Requests: Some companies have formal procedures for purchase, travel, expense reimbursement
and personal time-off requests. Get copies of any forms youll need to use for future requests and
review them to see if you understand them or need to clarify any items before youre on
deadline. Find out what receipts you need to turn in with expense reports or if you can use credit
card statements. Learn the typical turnaround time necessary to get requests approved so you
avoid asking superiors to rush requests, which can make you look unorganized.

Safety: To maximize the security of their employees, customers and assets, businesses often
institute safety and security policies. These cover areas such as fire prevention and response,
medical emergencies, storing materials, giving out information over the phone, protecting
computer data, limiting facility access and responding to an intruder.

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Dress Codes: Policies on dress codes are common in the HR world because, according to
Harvard Business School, the way people dress can have a direct impact on how professional
they appear and how successful they are at what they do. HR dress code policies have different
standards depending on the company. For instance, dress code policies for construction workers
are different than dress code policies for people who work at a bank. Office environments
typically require employees to wear business formal or business casual attire. This includes
slacks and dress shirts for the guys and skirts, dresses, slacks or blouses for the ladies. HR dress
code policies will list attire that is not suitable for the workplace, such as jeans with holes, shirts
that have fowl language written on them, strapless tops and flip flops.
Drug-Free Work Environment: According to the U.S. Department of Labor, employers must
maintain a drug-free work environment. The Virginia Department of Human Resource
Management explains that the use or possession of drugs and alcohol at work can have a
negative impact on the work environment. For instance, mood altering substances can cause
workplace conflicts amongst employees, prevent employees from performing at an optimal level,
decrease productivity and create a health and safety risk for the whole environment. For this
reason, human resource departments issue policies about maintaining a drug-free work
environment. These policies will explain the consequences for being found under the influence
of substances or having substances in an employee's possession while at work.

Zero Tolerance Policy for Harassment: There are many different kinds of harassment from
sexual innuendos to religious discrimination; however, all forms of harassment present an
element of risk in the office, so businesses institute HR policies for maintaining a zero tolerance
of harassment in the workplace. HR policies on harassment encourage employees to report
incidents immediately, so the issues can be addressed and resolved timely by the HR department.
The U.S. Equal Employment Opportunity Commission states that employees should not feel
threatened or harassed in the workplace. Because harassment is considered a safety issue, HR
policies on harassment will most likely contain language about the repercussions involved in
being found guilty of harassing others at the office. Zero tolerance policies for harassment are
put into place to protect employees and to maintain a safe and comfortable work environment.

Other types of Human Resources Policies:1. Policy on hiring of employees. 2. Policy on Human
resources planning. 3. Policy on training and development. 4. Policy on terms and conditions of
employment. 5. Policy on Industrial relations.6.Policy on communication and 7. Policy on Transfer
and Promotion.

6. How a HR Manager integrates brands and people and brings required culture in the
organization?

Its important to emphasize that the people aspects of integration cannot be dealt with in a silo
thats separate and disconnected from the rest of the effort. Instead, issues related to human
capital and performance are inherent inand critical toevery work stream. Those issues
involve responding to questions such as: Have people from both sides accepted the rationale for
the deal? Do they possess the skills necessary for the integrated organization to prosper over the
longer term? Is the right talent being deployed in the right positions and will people be required

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to learn new systems, processes, and skills to do their jobs? Unquestionably, effective merger
integration involves detailed planning and efficient execution across a wide range of HR-related
work streams, including:

HR confirmatory due diligence: Collecting the people-related, policies, plans and data needed
to integrate the HR operations of the organizations.
Leadership assessment: Assessing the qualifications and competencies, of top leaders at both
companies, to determine their role in the new combined organization.
Employee retention: determining the skills, knowledge and abilities, critical for future
success, identifying, the people in both organizations who possess those competencies, and
developing a retention plan to persuade them to stay

Culture: Analyzing the cultural, compatibilities and differences, between both companies,
understanding the cultural, attributes critical to shared success, aligning existing cultural
attributes, with future need, and creating a roadmap to quick wins and longer term and culture
building

7. Explain the HR information system in detail.

A Human Resources Management System (HRMS) or Human Resources Information


System (HRIS), refers to the systems and processes at the intersection between human resource
management (HRM) and information technology.[1] It merges HRM as a discipline and in
particular its basic HR activities and processes with the information technology field, whereas
the programming of data processing systems evolved into standardized routines and packages
of enterprise resource planning (ERP) software. On the whole, these ERP systems have their
origin from software that integrates information from different applications into one universal
database. The linkage of its financial and human resource modules through one database is the
most important distinction to the individually and proprietary developed predecessors, which
makes this software application both rigid and flexible.

A Human Capital Management Solution, Human Resources Management System (HRMS) or


Human Resources Information System (HRIS), as it is commonly called is the crossing of HR
systems and processes with information technology. The wave of technological advancement has
revolutionized each and every space of life today, and HR in its entirety was not left untouched
by it. What started off with a simple software to help improve the payroll processing of an
organization, or a software to track the employee work timings has grown to become the Human
Resources systems that helps improve the process efficiency, reduces the cost and time spent on
mundane tasks and at the same time improved the overall experience of the employees and the
HR professionals. In short, as the role of Human Resources function evolved, HR technology
systems also changed the role they were playing.[2]

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The function of human resources (HR) departments is administrative and common to all
organizations. Organizations may have formalized selection, evaluation, and payroll processes.
Management of "human capital" progressed to an imperative and complex process. The HR
function consists of tracking existing employee data which traditionally includes personal
histories, skills, capabilities, accomplishments and salary. To reduce the manual workload of
these administrative activities, organizations began to electronically automate many of these
processes by introducing specialized human resource management systems. HR executives rely
on internal or external IT professionals to develop and maintain an integrated HRMS.
[3]
Before clientserver architectures evolved in the late 1980s, many HR automation processes
were relegated to mainframe computers that could handle large amounts of data transactions. In
consequence of the high capital investment necessary to buy or program proprietary software,
these internally developed HRMS were limited to organizations that possessed a large amount of
capital. The advent of clientserver, application service provider, and software as a
service (SaaS) or human resource management systems enabled higher administrative control of
such systems. Currently human resource management systems encompass:

1. Payroll

2. Time and attendance

3. Performance appraisal

4. Benefits administration

5. HR management information system

6. Recruiting/Learning management

7. Performance record

8. Employee self-service

9. Scheduling

10.Absence management

11.Analytics

The payroll module automates the pay process by gathering data on employee time and
attendance, calculating various deductions and taxes, and generating periodic pay cheques and
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employee tax reports. Data is generally fed from the human resources and time keeping modules
to calculate automatic deposit and manual cheque writing capabilities. This module can
encompass all employee-related transactions as well as integrate with existing financial
management systems.

The time and attendance module gathers standardized time and work related efforts. The most
advanced modules provide broad flexibility in data collection methods, labor distribution
capabilities and data analysis features. Cost analysis and efficiency metrics are the primary
functions.

The benefits administration module provides a system for organizations to administer and
track employee participation in benefits programs. These typically encompass insurance,
compensation, profit sharing and retirement.

The HR management module is a component covering many other HR aspects from application
to retirement. The system records basic demographic and address data, selection, training and
development, capabilities and skills management, compensation planning records and other
related activities. Leading edge systems provide the ability to "read" applications and enter
relevant data to applicable database fields, notify employers and provide position management
and position control. Human resource management function involves the recruitment, placement,
evaluation, compensation and development of the employees of an organization. Initially,
businesses used computer based information systems to:

produce pay checks and payroll reports;

maintain personnel records;

pursue talent management.

Online recruiting has become one of the primary methods employed by HR departments to
garner potential candidates for available positions within an organization. Talent management
systems typically encompass:

analyzing personnel usage within an organization;

identifying potential applicants;

recruiting through company-facing listings;

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recruiting through online recruiting sites or publications that market to both recruiters and
applicants.

The significant cost incurred in maintaining an organized recruitment effort, cross-posting within
and across general or industry-specific job boards and maintaining a competitive exposure of
availabilities has given rise to the development of a dedicated applicant tracking system, or
'ATS', module.

The training module provides a system for organizations to administer and track employee
training and development efforts. The system, normally called a "learning management system"
(LMS) if a standalone product, allows HR to track education, qualifications and skills of the
employees, as well as outlining what training courses, books, CDs, web based learning or
materials are available to develop which skills. Courses can then be offered in date specific
sessions, with delegates and training resources being mapped and managed within the same
system. Sophisticated LMS allow managers to approve training, budgets and calendars alongside
performance management and appraisal metrics.

The employee self-service module allows employees to query HR related data and perform
some HR transactions over the system. Employees may query their attendance record from the
system without asking the information from HR personnel. The module also lets supervisors
approve O.T. requests from their subordinates through the system without overloading the task
on HR department.

Many organizations have gone beyond the traditional functions and developed human resource
management information systems, which support recruitment, selection, hiring, job placement,
performance appraisals, employee benefit analysis, health, safety and security, while others
integrate an outsourced applicant tracking system that encompasses a subset of the above.

Assigning Responsibilities Communication between the Employees.

The Analytics module enables organizations to extend the value of an HRMS implementation by
extracting HR related data for use with other business intelligence platforms. For example,
organizations combine HR metrics with other business data to identify trends and anomalies in
headcount in order to better predict the impact of employee turnover on future output.

There are now many types of Human Resources Management System (HRMS) or Human
Resources Information System (HRIS) some of which are typically local-machine based
software packages the other main type is an online cloud-based system which can be accessed
via a web browser.
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The Staff Training Module enables organizations the ability to enter, track and manage
employee and staff training. Each type of activity can be recorded together with the additional
data. The performance of each employee or staff member is then stored and can be accessed via
the Analytics module.

8. How would you evaluate HR function in industries? (Nov/December 2010)

Human Resource Management can be very efficient and effective. Its efficiency and
effectiveness can be evaluated in reference to the following 4C;
commitment,
congruency,
competency and
cost effectiveness.

The 4Cs of Evaluation of Human Resource Function

Commitment
This is the first C in the evaluation of Human Resource Function. Commitment means testing the
employees personal motivation and loyalty to the organization. If the employee works hard
enough for the good of the company and his main aim is for the company to gain competitive
advantage over its rivals then he is very committed to the company thus the human resource
department is very effective.
Competency
Competency is the second C in the evaluation of Human Resource Function in an organization.
In this area one tests the employees skills and abilities to perform his tasks well. Hiring and
maintaining employees with very good skills proves that the human resource docket in that
company is very efficient.
Congruency
This is the third C in the evaluation of Human Resource Function. Congruency focuses on
management and employees. It seeks to test and prove that the management and employees share
the same vision of the organization goals and work together to attain them.
Cost Effectiveness
The last C in the evaluation of Human Resource Function is cost effectiveness. It is concerned
with operational efficiency. The Human Resource Function in the organization should be used to
the best advantage.

Techniques of Evaluation of Human Resource Function


There are four ways to evaluate if the Human Resource Function in an organization is effective
after implementing it
Achievement of Specified Goals
Service Overall Evaluation (SLA
Subjective Overall Evaluation
Bench Marking
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Achievement of Specified Goals


This is one way of evaluating Human Resource Function. In this case one measures the
achievement against agreed objectives.
Service Overall Evaluation (SLA)
This is an agreement between the provider of services and the customers.
Subjective Overall Evaluation
This is another method of evaluation of Human Resource Function. One measures the
satisfaction index where concerns on whether an employee is happy and satisfied working in the
organization and the Human Resource policies and practices as they affect them.
Bench Marking
In this evaluation of Human Resource Function one compares data from a competing firm and
the data in your organization. This provides information on where to improve in the business
strategies.
Conclusion on Evaluation of Human Resource Function
As seen above one can successfully evaluate to find out if the Human Resource Function of an
organization. Competency, congruency, commitment and cost effectiveness are the four Cs one
needs to implement.

9. Elucidate the transition of personnel management into human resources management


and explain human resources management functions.

The evolution of human resource management as a distinct profession dates back to the industrial
revolution when factories established personnel departments to look into wages and welfare of
workers.

To understand the evolution of Human Resource Management, one must first understand its
basis. The origins of workforce management lies in the arrangements made for the welfare of
apprentices working with the master craftsmen in the putting out system that prevailed during the
medieval ages. The industrial revolution that led to the establishment of factories displaced the
putting out system.

The workers in the early factories faced long hours of works under extremely unhygienic
conditions, and mostly lived in slums. This soon resulted in several labor riots, the most famous
being Ludds riots of 1811 in Nottingham, England, precipitated by reduced wages. The
government soon intervened to provide basic rights and protections for workers, and the need to
comply with such statutory regulations forced factory owners to set up a formal mechanism to
look into workers wages and welfare, and redress other issues concerning labor. This led to the
emergence of Personnel Management as a distinct profession.

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Personnel Management Approach

The Personnel Management approach that remained in vogue for much of the 20th Century
remained administrative in nature. Arising out of the need to enforce statutory compliance, it
concerned itself primarily with

employee record keeping


adherence to the stated policies while implementing functions such as
recruitment, training and wage administration
taking welfare oriented measures such as providing medical care, vaccinations,
housing facilities and the like
attempting to increase productivity through wage increases and training, and
enforcement of standards derived from work studies influenced by the scientific management
approach promulgated by Frederick Taylor and the like
dealing with trade unions and trying to solve industrial disputes through collective
bargaining and other industrial relations approaches.
conducting performance appraisals or report card of past performance to
determine pay and promotions

The Personnel Management approach tried to convince workers of the business interests, and
convince management of workers interest and social obligations. It rarely had a direct say in the
companys strategy and did not involved itself with operations aspects, remaining a purely staff
function.

The Traditional Human Resource Approach

The latter decades of the twentieth century saw the winds of change starting to affect the
personnel management profession. Elton Mayos Hawthorne Studies had debunked Taylors
Scientific Management approach toward productivity increase, and established that the major
drivers of productivity and motivation were non-monetary factors. A host of new theories
emerged based on this new behavioral perspective. Some of the popular theories that struck
ground was Douglas McGregors Theory X and Theory Y, Abraham Maslows hierarchy of needs
theory that recognized the concept of individuals aspiring to reach a state of self actualization,
Victor Vrooms Expectation Theory, Alderfers ERG Theory, and more. Government
interventions led to the enactment of new legislations that guaranteed workers more rights.

All these changed soon led to the transition from the administrative and passive Personnel
Management approach to a more dynamic Human Resource Management approach. This new
approach considered workers as valuable resources, a marked improvement from the earlier
approach of considering them as mere cogs.

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While Personnel Management was a strictly staff function, Human Resource management began
to become an increasingly line management function, directly interlinked to the core business
operations.

The major changes in approach from Personnel Management vs Human Resource


Management manifested in many ways.

The recruitment and skill enhancement of the workforce having a direct bearing
on organizational profitability, efforts began to increase workers commitment and loyalty.
Motivation took the shape of challenging work environment, free holidays,
creating an active social community within the workforce, fringe benefits and the like,
besides monetary incentives.
Training acquired a new Training and Development dimension with the focus
on behavioral training to change attitudes and develop basic skills rather than remaining
limited to inculcating work-related skills.
Wage and Salary Administration became more complex with the introduction of
performance related pay, employee stock options and the like
The report-card based performance appraisal systems become more proactive
with new techniques such as Management by Objectives, 360 degree appraisals and the like
emphasis on leadership instead of managing

The Strategic Human Resource Approach

The evolution of Human Resource Management took a new turn at the end of the century.
Increased free market competition at global level and the proliferation of technology and
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knowledge based industries raised the importance of human resources, and from an obscure role
a century ago, human resource management rose to become the most critical function of an
enterprise.

The workforce, hitherto considered as resources now became assets and a valuable source of
competitive advantage. The thrust of human resource management now lies in trying to align
individual goals and objectives with corporate goals and objectives, and rather than enforce rules
or dictate terms, act as a facilitator and promotes a participative approach.

These changes influenced Human Resources functions in many ways.

Increased reliance on performance based short term contracts instead of long term
employment
Direct linkage of compensation to the profitability of the enterprise and the
employees contribution towards such profitability
New dimensions for training and development function by encouraging and
facilitating innovation and creativity
Motivation through enriching the work experience
Performance and Talent Management displacing performance appraisals

Strategic Human Resource Management blurs the distinction between a specialized Human
Resource Management function and core operational activity, and very often, Human Resource
Management drives interventions such as Total Quality Management and the like.

Functions of HR
Recruitment

The success of recruiters and employment specialists generally is measured by the number of
positions they fill and the time it takes to fill those positions. Recruiters who work in-house -- as
opposed to companies that provide recruiting and staffing services -- play a key role in
developing the employer's workforce. They advertise job postings, source candidates, screen
applicants, conduct preliminary interviews and coordinate hiring efforts with managers
responsible for making the final selection of candidates.

Safety

Workplace safety is an important factor. Under the Occupational Safety and Health Act of 1970,
employers have an obligation to provide a safe working environment for employees. One of the
main functions of HR is to support workplace safety training and maintain federally mandated
logs for workplace injury and fatality reporting. In addition, HR safety and risk specialists often
work closely with HR benefits specialists to manage the company's workers compensation
issues.

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In a unionized work environment, the employee and labor relations functions of HR may be
combined and handled by one specialist or be entirely separate functions managed by two HR
specialists with specific expertise in each area. Employee relations is the HR discipline
concerned with strengthening the employer-employee relationship through measuring job
satisfaction, employee engagement and resolving workplace conflict. Labor relations functions
may include developing management response to union organizing campaigns, negotiating
collective bargaining agreements and rendering interpretations of labor union contract issues.

Compensation and Benefits

Like employee and labor relations, the compensation and benefits functions of HR often can be
handled by one HR specialist with dual expertise. On the compensation side, the HR functions
include setting compensation structures and evaluating competitive pay practices. A comp and
benefits specialist also may negotiate group health coverage rates with insurers and coordinate
activities with the retirement savings fund administrator. Payroll can be a component of the
compensation and benefits section of HR; however, in many cases, employers outsource such
administrative functions as payroll.

Compliance

Compliance with labor and employment laws is a critical HR function. Noncompliance can result
in workplace complaints based on unfair employment practices, unsafe working conditions and
general dissatisfaction with working conditions that can affect productivity and ultimately,
profitability. HR staff must be aware of federal and state employment laws such as Title VII of
the Civil Rights Act, the Fair Labor Standards Act, the National Labor Relations Act and many
other rules and regulations.

Training and Development

Employers must provide employees with the tools necessary for their success which, in many
cases, means giving new employees extensive orientation training to help them transition into a
new organizational culture. Many HR departments also provide leadership training and
professional development. Leadership training may be required of newly hired and promoted
supervisors and managers on topics such as performance management and how to handle
employee relations matters at the department level. Professional development opportunities are
for employees looking for promotional opportunities or employees who want to achieve personal
goals such as finishing a college degree. Programs such as tuition assistance and tuition
reimbursement programs often are within the purview of the HR training and development area.

10. Specify the role of computer in HRM. (Nov/December 2013)

COMPUTERS AND HUMAN RESOURCES MANAGEMENT


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In a people-oriented business such as hospitality, computers can allow managers to become more
people oriented. Though guest service is something that only your people can do, automation
gives you more time to focus on the heart of your business: the guest! Recall that in the first
chapter we said that sound human resources skills and tools would allow you to maintain your
commitment to high-quality products and excellent service. Computers should be thought of as
simply another human resources management tool, like your development program, your
placement process, or EAP, which when used properly, can help you maximize the quality of the
products and services you offer.

The ultimate purpose of the computer for hospitality managers is to improve the quality of the
service. It achieves its purpose by freeing you from time-consuming paperwork and giving you
more time to interact with your guests. The speed at which information can be processed and
reported expedites decision making. The advances in desktop publishing serve to improve
communications throughout the hospitality organization. E-mail and improved accessibility to
the World Wide Web (WWW) for information make the human resources arena function even
more effectively. The "Information Age" surrounds us and in the twenty-first century is an
integral part of our everyday lives as managers with human resources responsibilities in the
hospitality industry.

With the use of multimedia PCs, many organizations have a structure that allows the employee
the ability to handle many of the routine administrative tasks that were once handled by human
resources. These self-service applications allow employees to conduct a wide range of human
resources functions from a simple change of address to benefits enrollment to development
through an online training program . When companies design information systems that allow
employees to perform more HR functions for themselves, the managers with human resources
responsibilities have more time to focus on the more strategic components of their jobs such as
planning, coaching, and counseling, ultimately making them a more effective partner in
management decision making.

Computers, with their enormous capacity for storing, maintaining, and retrieving information in
a usable format have helped human resources departments in becoming the information center
for hospitality organizations. What could be more important to management decision making
than information about the hospitality organization's most critical resource, its people? Which
department is responsible for information on people? The human resource department, division,
office, manager: wherever and whoever in your hospitality organization assumes the human
resources responsibilities.

The computer is not a substitute for managerial expertise and experience, but it does have the
capability of providing valuable analytical data and decision-support information to improve
your effectiveness when carrying out human resources responsibilities.

What the Computer Can Do

Computers support you as a manager as you carry out your human resources responsibilities by
performing a variety of time-consuming tasks. For example, much of the work in the human
resources office is clerical in nature. Many of the routine tasks can be automated, reducing the
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number of individuals required for these tasks. Think back upon the human resources functions
that we have discussed. Select any one of those functions and think through the amount of
information gathering and paperwork that goes into the successful completion of that particular
human resources function. Perhaps, if your hospitality organization is very small, the amount of
time spent in clerical tasks will not seem too overwhelming. The larger the hospitality
organization, however, the greater the complexity of the data gathered and, more importantly, the
greater the chance for error.

In large corporations, one of the biggest problems is the maintenance of a current data file on all
of your people. If there is a backlog in information gathering, or even in the recording of the
information, inappropriate decisions could be made. For example, budgeting and the control of
expenses are vital to the financial success of each department within a hospitality operation.
Though it is senior management's responsibility to prepare the departmental budgets, it is the
manager with human resources responsibilities who should be preparing each department
manager within the operation to control those budgets through the use of the computer.

The technology exists today to actually make an office paperless. That means no post-notes, no
notepads, no phone rolodex, no day planner. Human resources functions such as recruitment,
hiring, performance appraisals, compensation, and benefits administration and training can all be
done without paper. Though no paper might sound somewhat intimidating at first, there are
several benefits you might want to consider before rejecting this idea:

* Increased storage efficiency

* More cost-effective

* Saves time

* Improves the accuracy of data

* Maintains the security of data

* Improves workplace communication

11. Describe the functions of Human resources accounting and HR audit (April/May 2012)

Human Resource Accounting:


Human Resource Accounting Human Resource Accounting is defined as The process of
identifying and measuring data about human resources and communicating this information to
interested parties.

Purpose of Human Resource Accounting:


Purpose of Human Resource Accounting It furnishes cost/value information for making
management decisions about: - acquiring, allocating, developing & maintaining human resources
in order to attain cost-effectiveness It allows management personnel to monitor effectively the
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use of human resources It provides a sound and effective basis of human asset control It helps in
developing management principles by classifying financial consequences of various practices

Objectives of HRA:
Objectives of HRA To inform general public how far enterprises are successful in fulfilling the
human contributions To facilitates effective and efficient management of human resources. To
provide information of changes in the structure of manpower to the management. To provide
qualitative, relevant and timely information on human resources. To know whether the human
resources are properly utilized and allocated. To evaluate the return on investment on human
capital.

Measurement in HRA :
Measurement in HRA Two main approaches are employed for measurement: 1. Cost Approach
which involves methods based on costs incurred by the company, with regard to an employee 2.
Economic Value Approach which includes methods based on: the economic value of human
resources and their contribution to the companys gains This approach looks at human resources
as assets & tries to identify the stream of benefits flowing from the asset

Return on Investment Approach:


Return on Investment Approach HR ROI = Results (actual performance or expectations) Salary +
human resource development investment The concept of HR ROI is expressed with the above
equation. The denominator of the HR ROI is essentially the total amount of compensation for a
targeted individual employee. This total compensation includes salary, benefit packages and
investment in human resource development. The fixed HR ROI rule aims at encouraging more
high-performance employees - to improve their skills and knowledge through a training and self
enhancement program.

Human Resource Audit

Purposes of HR Audit :
Purposes of HR Audit To get a clear judgment about the overall status of the organisation To find
out whether certain systems put in place are yielding any results To figure out any gaps or lapses
and the reason for the same To identify and address HR-related problems To seek out HR-related
opportunities To conduct due diligence for mergers and acquisitions To support initial public
offerings

HR Audit Process :
HR Audit Process HR audit process is conducted in different phases Each phase is designed to
build upon the preceding phase These phases are: Pre-Audit Information Pre-Audit Self-
Assessment On-site Review Records Review Audit Report

Preparation for an Audit :


Preparation for an Audit Auditor engagement : If using internal resource it is better: to appoint
them formally with clarity on scope and to select persons who are non political or those who are
not high on hierarchy also must be training for the persons in auditing Data gathering :
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Completion of a self-assessment questionnaire significantly expedites the audit process and


Allows for better audit planning On-site access: On-site portion of the audit is the most critical.

Approaches to HR Audit :
Approaches to HR Audit There are five approaches to HR Audit: Comparative approach Outside
authority Statistical Compliance approach and Management By Objectives(MBO) The audit is
made up of four main steps: Define desired HR practices for your organization Assess current
practices against the criterion that you have established Analyze the results Establish
improvement goals and take action

Benefits of HR Audit :
Benefits of HR Audit It helps to find out the proper contribution of the HR department towards
the organization. Development of the professional image of the HR department of the
organization. Reduce the HR cost. Motivation of the HR personnel. Find out the problems and
solve them smoothly. Provides timely legal requirement. Sound Performance Appraisal Systems.
Systematic job analysis. Smooth adoption of the changing mindset.

Methodology and Instruments of HR Audit :


Methodology and Instruments of HR Audit In audit to evaluate the HRD structure, system,
culture, competency & other aspects, the following multiple methods are used: Interviews Group
Discussions and workshops Observation Analysis of records and documents Questionnaires

HR Audit Report :
HR Audit Report HR audit report may be clean or qualified. Clean report indicates the
appreciation of the department's function, Qualified report represents the gaps in performance &
therefore contains remarks and remedial measures. HR Audit is very much helpful to face the
challenges and to increase the potentiality of the HR personnel in the organization.

Unit II
Part A
1. Define Human Resource Planning? (May 2011)
E.W Vetter viewed HRP as a process by which an organization should move from its current
manpower position to its desired manpower position. Though planning management strives to
have the right number and right kind of people at right place at right time, doing things which
result in both the organization and the individual receiving maximum long-run benefit. Human
Resource Planning process ensure that, Right number of people, Right Kind of people, Right
places, Right Time, Capable of effectively and efficiently completing the task.
2. Write about importance of Human Resource Planning?
Human Resources Planning (HRP) anticipates not only the required number of employees but
also determines the action plan for all functions of personnel management. HRP is very
important function in an organization due to the following: It checks the corporate plan of the
organization. It provides scope for achievement of organization strategies by making required
people available in the right time for implementation of strategies. It facilitates the control of all
functions, operations, Contribution and cost of human resource.
3. What are the internal sources of Recruitment? (April/May 2012)

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Employee referrals, Developing own employees, Casual or unsolicited applicants, Present


Temporary or casual Employees, Retrenched or Retried Employees.
4. What are the external sources of Recruitment?
Advertisement, Recommendation, Employment Agencies, Temporary Help Services, Schools,
Colleges and universities, Professional organization
5. Define Recruitment? (April/May 2013)
Recruitment used to discover potential candidates for actual or anticipated Organization
vacancies
Edwin B. Flippo defined recruitment as the process of searching for prospective employees and
stimulating them to apply for jobs in the organization
6. What are the important steps in Selection Process? (Nov/December 2013)
Initial Screening Interview, Completion of the application form, Employment Test,
Comprehensive Interview, Background Investigation, Physical examination, Final employment
decision
7. What are advantages of internal sources of recruitment?
High morale, encouragement to good individuals who are embitters, Probability to good
selection is more as the information about them is available, Cost factor and they can be used for
training others
8. What are the disadvantages of internal sources of recruitment?
Using inferior internal sources, No new innovations can occur as only inbreed is done, May
head to nepotism, Recommended may confuse friendship and job competence
9. What are advantages of external sources of recruitment?
The suitable candidates with skill, knowledge, talent etc. are generally available. Candidates
can be selected without any pre-conceived notion or reservations. Cost of employees can be
minimized because employees selected from this source are generally placed in the minimum
pay scale. Expertise, excellence and experience in other organizations can be easily brought into
the organization. Latest knowledge, skill, innovative or creative talent can also be followed in the
organization.
10. What are the different methods of the Forecasting HR?
The different methods are: Managerial Judgment, Statistical technique, Work-study techniques
How can you perform ratio trend analysis?
Ratio-trend analysis can be done by analyzing the past and present of statistical techniques.
11. What are the objectives of HRM? (May 2011)
Objectives of HRM are Social objectives, Organizational objectives, Functional objectives,
Individual objectives.
12. Define HR inventory? (April/May 2014)
The data relating to present HR inventory in terms of human resource components, number,
designation-wise and department-wise should be obtained.
13. Define Labour turnover?
Labour turnover is defined as number of persons going out of organization according to their
voluntary resignation.
14. Define attrition?
Attrition is the process whereby as incumbents leave their job for various reasons, those jobs will
be kept vacant or unfilled. Attrition, hiring freezes or ban on employment can be implemented
organization-wise, department-wise or job-wise. Indian Railways, other public Sector units and

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Universities have been following this technique to reduce the problem of over staffing. A person
going out of organization due to less pay is referred as attrition.
15. Define Layoffs? (Nov/ December 2013)
Layoffs can be temporary or permanent. Temporary layoffs are due to the slackness in business,
machinery breakage, power failure etc. Workers are called back as soon as work resumes to the
normal position. Permanent layoff is due to liquidation of the company. Proper human resource
planning and leaving the workforce .At proper level can help to reduce this effect. Organization
takes out the employees according to its wish is known as layoff.
16. What are the factors influencing HR forecasting?
Time, Horizon, Economic factors, Social factors, Technological factors , Growth and
expansion of business, Type of management, Innovative management
17. Define Job analysis? (May 2011)
It is the detailed descriptions of the job task determining the relationship of the job to technology,
examining the knowledge, qualifications or employment standards and incumbent requirements.
18. Define Job description? (April/ May 2010)
It is the written statement of what the job-holder does, How it is done? Why it is done?
19. Define Job specification? (April/May 2014)
It states that the minimum acceptable qualification that the incumbent must possess to perform
the job successfully.
20. What are the different methods of Job analysis?
Observation method, Individual interview method, Group interview method, structural quest
nary method, Technical conference method, Dairy method
21. Define Induction. (Nov/ December 2010)
Induction is a technique by which a new employee is rehabilitated into the changed surroundings
and introduced to the practices and policies and purposes of the organization.
22. What are the involved in induction programme?
General orientation by the staff of the personnel department. Specific orientation by the job
supervisor, or his representative. Follow up orientation by either the personnel department or the
supervisor.
23. What is job design? (April/ May 2012)
The process of defining how work will be performed and what tasks will be required in a given
job.
24. Define job enlargement. (April/May 2014)
Job enlargement refers to broadening the types of tasks performed in a job. The objective of job
enlargement is to make job- less repetitive and more interesting.
25. Explain job extension.
Enlarging jobs by combining several relatively simple jobs to form a job with a wider range of
tasks. An example might be combining the jobs of receptionist, typist, and file clerk.
26. What is job enrichment? (April/ May 2013)
Empowering workers by decision making authority to jobs. For a salesperson in a store, job
enrichment might involve the authority to resolve customer problems, including the authority to
decide whether to issue refunds or replace merchandise.
27. What are the merits of internal source of recruitment?
Merits of internal source of recruitment: Stimulating preparation for possible transfer or
promotion, Increasing the general level of morale, We know very well the past performance of
the candidate
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Part B
1. Discuss some of the man power forecasting techniques adopted in an organization.
(April/May 2013)

Forecasting is the process of estimating the future quantity and quality of people required. This is
depend upon: Annual budget, long term corporate plan which translated in to activity levels for
each function and departments. Then man hours will be estimated and converted in to number of
man power required in terms of skill, knowledge and competency levels. Techniques used:

In order to forecast the man power requirements the company uses four methods. They are:
Managerial judgment, Statistical techniques: 1. Ratio trend analysis, 2. Econometrics
model, 3. Regression Analysis, Work study techniques, Delphi technique and Mathematical
model.
Managerial judgment: Management judgment is done based on Bottom up
approach: Here the line managers are advised to submit their departmental proposals to
the top management, who will prepare the forecasting list of various categories of man
power required for the company. Top down approach: Top managers prepare the
overall company and departmental requirements. These forecasts reviewed with
departmental heads and agreed upon.
Ratio trend analysis: Ratios are calculated for the past data relating to number of
employees of each category and production level, sales level, activity level, work load
level and direct employees and indirect employees. Based on the above man power is
estimated (with an allowance for changes) in organization. Eg., Present level of
production(1-1-2010) 1500 units, Supervisory requirements3(@ 500 units per
supervisor) Ratio is 1:3, Estimated production(1-1-2011) is 2500 units, Foreman
Required is 5 (1:3)
Econometric models: This is done by analyzing the past statistical data and by bringing
the relationship among variables ( which has impact on man power requirements) like
investments, sales, work load and so on
Regression analysis: Though this is similar to ratio trend analysis, HR forecast is done
based on relationship between sales volume and employee size. However, regression
analysis is more statistically sophisticated. The firm first draws a diagram depicting the
relationship between sales and work force size. It then calculates the regression line- a
line that cuts right through the centre of points on the diagram. By observing the
regression line, one can find out employees required at each volume of sales.
Work study techniques: Planned man power requirements: 1,60,000 units (In the year
2011)
Standard man hour needed to perform each unit in the year 2010: 0.25 hours
Planned man hour needed for the year = 40,000
Work ability per employee in man hours in the year 2010= 2000hours
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Number of employees required in the year=40000/2000-20 persons


Delphi Technique: It describes about forecasting personnel needs.It solicits of man
power needs from a group of experts, usually managers. The HRP experts act as
intermediaries, summaries the various responses and report the findings back to the
experts. The experts are surveyed again after they receive the feedback. Summaries and
surveys are repeated until the experts opinions begin to agree. The agreement reached is
the forecast of HR man power needs
Mathematical model:
Here forecasting is done based on a mathematical formula:
En = (Lagg + Gn) 1/x
y
Where En is the estimated level of personnel demand in n planning periods(e.g.years).
Lagg is the overall or aggregate level of current business activity in rupees. Gn is the total
growth in business activity anticipated through period in n in todays rupees

2. Write about the tests in the selection process. (Dec 2010)

The following are the type of tests taken:

1). Ability tests:

Assist in determining how well an individual can perform tasks related to the job. An excellent
illustration of this is the typing tests given to a prospective employer for secretarial job. Also
called as ACHEIVEMENT TESTS. It is concerned with what one has accomplished. When
applicant claims to know something, an achievement test is taken to measure how well they
know it. Trade tests are the most common type of achievement test given. Questions have been
prepared and tested for such trades as asbestos worker, punch-press operators, electricians and
machinists. There are, of course, many unstandardised achievement tests given in industries,
such as typing or dictation tests for an applicant for a stenographic position.

2). Aptitude test:

Aptitude tests measure whether an individuals has the capacity or latent ability to learn a given
job if given adequate training. The use of aptitude test is advisable when an applicant has had
little or no experience along the line of the job opening. Aptitudes tests help determine a persons
potential to learn in a given area. An example of such test is the general management aptitude
tests (GMAT), which many business students take prior to gaining admission to a graduate
business school programme.

Aptitude test indicates the ability or fitness of an individual to engage successfully in any
number of specialized activities. They cover such areas clerical aptitude, numerical aptitude,
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mechanical aptitude, motor co-ordination, finger dexterity and manual dexterity. These tests help
to detect positive negative points in a persons sensory or intellectual ability. They focus attention
on a particular type of talent such as learning or reasoning in respect of a particular field of work.

Forms of aptitude test:

Mental or intelligence tests: They measure the overall intellectual ability of a person
and enable to know whether the person has the mental ability to deal with certain problems.
Mechanical aptitude tests: They measure the ability of a person to learn a particular
type of mechanical work. These tests helps to measure specialized technical knowledge and
problem solving abilities if the candidate. They are useful in selection of mechanics,
maintenance workers, etc.
Psychomotor or skills tests: They are those, which measure a persons ability to do a
specific job. Such tests are conducted in respect of semi- skilled and repetitive jobs such as
packing, testing and inspection, etc.

3). Intelligence test:

This test helps to evaluate traits of intelligence. Mental ability, presence of mind (alertness),
numerical ability, memory and such other aspects can be measured. The intelligence is probably
the most widely administered standardized test in industry. It is taken to judge numerical, skills,
reasoning, memory and such other abilities.

4). Interest Test:

This is conducted to find out likes and dislikes of candidates towards occupations, hobbies, etc.
such tests indicate which occupations are more in line with a persons interest. Such tests also
enable the company to provide vocational guidance to the selected candidates and even to the
existing employees. These tests are used to measure an individuals activity preferences. These
tests are particularly useful for students considering many careers or employees deciding upon
career changes.

5). Personality Test:

The importance of personality to job success is undeniable. Often an individual who possesses
the intelligence, aptitude and experience for certain has failed because of inability to get along
with and motivate other people. It is conducted to judge maturity, social or interpersonal skills,
behavior under stress and strain, etc. this test is very much essential on case of selection of sales
force, public relation staff, etc. where personality plays an important role. Personality tests are
similar to interest tests in that they, also, involve a serious problem of obtaining an honest
answer.

6). Projective Test:


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This test requires interpretation of problems or situations. For example, a photograph or a picture
can be shown to the candidates and they are asked to give their views, and opinions about the
picture.

7). General knowledge Test:

Now days G.K. Tests are very common to find general awareness of the candidates in the field of
sports, politics, world affairs, current affairs.

8). Perception Test:

At times perception tests can be conducted to find out beliefs, attitudes, and mental
sharpness.etc.

9). Graphology Test:

It is designed to analyze the handwriting of individual. It has been said that an individuals
handwriting can suggest the degree of energy, inhibition and spontaneity, as well as disclose the
idiosyncrasies and elements of balance and control. For example, big letters and emphasis on
capital letters indicate a tendency towards domination and competitiveness. A slant to the right,
moderate pressure and good legibility show leadership potential.

10). Polygraph Test:

Polygraph is a lie detector, which is designed to ensure accuracy of the information given in the
applications. Department store, banks, treasury offices and jewellery shops, that is, those highly
vulnerable to theft or swindling may find polygraph tests useful.

11). Medical Test:

It reveals physical fitness of a candidate. With the development of technology, medical tests have
become diversified. Medical servicing helps measure and monitor a candidates physical
resilience upon exposure to hazardous chemicals.

3. Enumerate the sources of recruitment practice followed in the industries in the changing
environment. What are the advantages and disadvantages?
4. Elucidate internal and external sources of recruitment. (Dec 2010)

Sources of Recruitment of Employees: Internal and External Sources (with its Advantages
and Disadvantages)!
The searching of suitable candidates and informing them about the openings in the enterprise is
the most important aspect of recruitment process.

The candidates may be available inside or outside the organisation. Basically, there are two
sources of recruitment i.e., internal and external sources.
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(A) Internal Sources:


Best employees can be found within the organisation When a vacancy arises in the
organisation, it may be given to an employee who is already on the pay-roll. Internal sources
include promotion, transfer and in certain cases demotion. When a higher post is given to a
deserving employee, it motivates all other employees of the organisation to work hard. The
employees can be informed of such a vacancy by internal advertisement.

Methods of Internal Sources:

The Internal Sources Are Given Below:


1. Transfers:
Transfer involves shifting of persons from present jobs to other similar jobs. These do not
involve any change in rank, responsibility or prestige. The numbers of persons do not increase
with transfers.

2. Promotions:
Promotions refer to shifting of persons to positions carrying better prestige, higher
responsibilities and more pay. The higher positions falling vacant may be filled up from within
the organisation. A promotion does not increase the number of persons in the organisation.

A person going to get a higher position will vacate his present position. Promotion will motivate
employees to improve their performance so that they can also get promotion.

3. Present Employees:
The present employees of a concern are informed about likely vacant positions. The employees
recommend their relations or persons intimately known to them. Management is relieved of
looking out prospective candidates.

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The persons recommended by the employees may be generally suitable for the jobs because they
know the requirements of various positions. The existing employees take full responsibility of
those recommended by them and also ensure of their proper behaviour and performance.

Advantages of Internal Sources:

The Following are The Advantages of Internal Sources:


1. Improves morale:
When an employee from inside the organisation is given the higher post, it helps in increasing
the morale of all employees. Generally every employee expects promotion to a higher post
carrying more status and pay (if he fulfills the other requirements).

2. No Error in Selection:
When an employee is selected from inside, there is a least possibility of errors in selection since
every company maintains complete record of its employees and can judge them in a better
manner.

3. Promotes Loyalty:
It promotes loyalty among the employees as they feel secured on account of chances of
advancement.

4. No Hasty Decision:
The chances of hasty decisions are completely eliminated as the existing employees are well
tried and can be relied upon.

5. Economy in Training Costs:


The existing employees are fully aware of the operating procedures and policies of the
organisation. The existing employees require little training and it brings economy in training
costs.

6. Self-Development:
It encourages self-development among the employees as they can look forward to occupy higher
posts.

Disadvantages of Internal Sources:


(i) It discourages capable persons from outside to join the concern.

(ii) It is possible that the requisite number of persons possessing qualifications for the vacant
posts may not be available in the organisation.

(iii) For posts requiring innovations and creative thinking, this method of recruitment cannot be
followed.

(iv) If only seniority is the criterion for promotion, then the person filling the vacant post may
not be really capable.
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Inspite of the disadvantages, it is frequently used as a source of recruitment for lower positions.
It may lead to nepotism and favouritism. The employees may be employed on the basis of their
recommendation and not suitability.

(B) External Sources:


All organisations have to use external sources for recruitment to higher positions when existing
employees are not suitable. More persons are needed when expansions are undertaken.

The external sources are discussed below:

Methods of External Sources:


1. Advertisement:
It is a method of recruitment frequently used for skilled workers, clerical and higher staff.
Advertisement can be given in newspapers and professional journals. These advertisements
attract applicants in large number of highly variable quality.

Preparing good advertisement is a specialised task. If a company wants to conceal its name, a
blind advertisement may be given asking the applicants to apply to Post Bag or Box Number or
to some advertising agency.

2. Employment Exchanges:
Employment exchanges in India are run by the Government. For unskilled, semi-skilled, skilled,
clerical posts etc., it is often used as a source of recruitment. In certain cases it has been made
obligatory for the business concerns to notify their vacancies to the employment exchange. In the
past, employers used to turn to these agencies only as a last resort. The job-seekers and job-
givers are brought into contact by the employment exchanges.

3. Schools, Colleges and Universities:


Direct recruitment from educational institutions for certain jobs (i.e. placement) which require
technical or professional qualification has become a common practice. A close liaison between
the company and educational institutions helps in getting suitable candidates. The students are
spotted during the course of their studies. Junior level executives or managerial trainees may be
recruited in this way.

4. Recommendation of Existing Employees:


The present employees know both the company and the candidate being recommended. Hence
some companies encourage their existing employees to assist them in getting applications from
persons who are known to them.

In certain cases rewards may also be given if candidates recommended by them are actually
selected by the company. If recommendation leads to favouritism, it will impair the morale of
employees.

5. Factory Gates:
Certain workers present themselves at the factory gate every day for employment. This method
of recruitment is very popular in India for unskilled or semi-skilled labour. The desirable
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candidates are selected by the first line supervisors. The major disadvantage of this system is that
the person selected may not be suitable for the vacancy.

6. Casual Callers:
Those personnel who casually come to the company for employment may also be considered for
the vacant post. It is most economical method of recruitment. In the advanced countries, this
method of recruitment is very popular.

7. Central Application File:


A file of past applicants who were not selected earlier may be maintained. In order to keep the
file alive, applications in the files must be checked at periodical intervals.

8. Labour Unions:
In certain occupations like construction, hotels, maritime industry etc., (i.e., industries where
there is instability of employment) all recruits usually come from unions. It is advantageous from
the management point of view because it saves expenses of recruitment. However, in other
industries, unions may be asked to recommend candidates either as a goodwill gesture or as a
courtesy towards the union.

9. Labour Contractors:
This method of recruitment is still prevalent in India for hiring unskilled and semi-skilled
workers in brick klin industry. The contractors keep themselves in touch with the labour and
bring the workers at the places where they are required. They get commission for the number of
persons supplied by them.

10. Former Employees:


In case employees have been laid off or have left the factory at their own, they may be taken
back if they are interested in joining the concern (provided their record is good).

11. Other Sources:


Apart from these major sources of external recruitment, there are certain other sources which are
exploited by companies from time to time. These include special lectures delivered by recruiter
in different institutions, though apparently these lectures do not pertain to recruitment directly.

Then there are video films which are sent to various concerns and institutions so as to show the
history and development of the company. These films present the story of company to various
audiences, thus creating interest in them.

Various firms organise trade shows which attract many prospective employees. Many a time
advertisements may be made for a special class of work force (say married ladies) who worked
prior to their marriage.

These ladies can also prove to be very good source of work force. Similarly there is the labour
market consisting of physically handicapped. Visits to other companies also help in finding new
sources of recruitment.

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Merits of External Sources:


1. Availability of Suitable Persons:
Internal sources, sometimes, may not be able to supply suitable persons from within. External
sources do give a wide choice to the management. A large number of applicants may be willing
to join the organisation. They will also be suitable as per the requirements of skill, training and
education.

2. Brings New Ideas:


The selection of persons from outside sources will have the benefit of new ideas. The persons
having experience in other concerns will be able to suggest new things and methods. This will
keep the organisation in a competitive position.

3. Economical:
This method of recruitment can prove to be economical because new employees are already
trained and experienced and do not require much training for the jobs.

Demerits of External Sources:

1. Demoralisation:
When new persons from outside join the organisation then present employees feel demoralised
because these positions should have gone to them. There can be a heart burning among old
employees. Some employees may even leave the enterprise and go for better avenues in other
concerns.

2. Lack of Co-Operation:
The old staff may not co-operate with the new employees because they feel that their right has
been snatched away by them. This problem will be acute especially when persons for higher
positions are recruited from outside.

3. Expensive:
The process of recruiting from outside is very expensive. It starts with inserting costly
advertisements in the media and then arranging written tests and conducting interviews. In spite
of all this if suitable persons are not available, then the whole process will have to be repeated.

4. Problem of Maladjustment:
There may be a possibility that the new entrants have not been able to adjust in the new
environment. They may not temperamentally adjust with the new persons. In such cases either
the persons may leave themselves or management may have to replace them. These things have
adverse effect on the working of the organisation.

Suitability of External Sources of Recruitment:


External Sources of Recruitment are Suitable for The Following Reasons:
(i) The required qualities such as will, skill, talent, knowledge etc., are available from external
sources.

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(ii) It can help in bringing new ideas, better techniques and improved methods to the
organisation.
(iii) The selection of candidates will be without preconceived notions or reservations.
(iv) The cost of employees will be minimum because candidates selected in this method will be
placed in the minimum pay scale.
(v) The entry of new persons with varied experience and talent will help in human resource mix.
(vi) The existing employees will also broaden their personality.
(vii) The entry of qualitative persons from outside will be in the long-run interest of the
organisation.

5. Discuss the importance of HR planning at corporate level. (May 2011)


6. Define HR planning? How do you link business strategy and HR planning? (April/ May
2014)
7. Describe Short term and Long term HR planning with examples. (April/ May 2014)

Resource Planning Process Or Steps Of HR Planning


Human resource planning is a process through which the company anticipates future business
and environmental forces. Human resources planning assess the manpower requirement for
future period of time. It attempts to provide sufficient manpower required to perform
organizational activities. HR planning is a continuous process which starts with identification of
HR objectives, move through analysis of manpower resources and ends at appraisal of HR
planning. Following are the major steps involved in human resource planning:

1. Assessing Human Resources


The assessment of HR begins with environmental analysis, under which the external (PEST) and
internal (objectives, resources and structure) are analyzed to assess the currentlyavailable HR
inventory level. After the analysis of external and internal forces of the organization, it will be
easier for HR manager to find out the internal strengths as well as weakness of the organization
in one hand and opportunities and threats on the other. Moreover, it includes an inventory of the
workers and skills already available within the organization and a comprehensive job analysis.

2. Demand Forecasting
HR forecasting is the process of estimating demand for and supply of HR in an organization.
Demand forecasting is a process of determining future needs for HR in terms of quantity and
quality. It is done to meet the future personnel requirements of the organization to achievethe
desired level of output. Future human resource need can be estimated with the help of the
organization's current human resource situation and analysis of organizational plans an
procedures. It will be necessary to perform a year-by-year analysis for every significant level and
type.

3. Supply Forecasting
Supply is another side of human resource assessment. It is concerned with the estimation of
supply of manpower given the analysis of current resource and future availability of human
resource in the organization. It estimates the future sources of HR that are likely to
beavailable from within an outside the organization. Internal source includes promotion, transfer,

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job enlargement and enrichment, whereas external source includes recruitment of fresh
candidates who are capable of performing well in the organization.

4. Matching Demand And Supply


It is another step of human resource planning. It is concerned with bringing the forecast of future
demand and supply of HR.The matching process refers to bring demand and supply in an
equilibrium position so that shortages and over staffing position will be solved. In case of
shortages an organization has to hire more required number of employees. Conversely, in the
case of over staffing it has to reduce the level of existing employment. Hence, it is concluded that
this matching process gives knowledge about requirements and sources of HR.

5. Action Plan
It is the last phase of human resource planning which is concerned with surplus and shortages
of human resource. Under it, the HR plan is executed through the designation of different HR
activities. The major activities which are required to execute the HR plan are recruitment,
selection, placement, training and development, socialization etc. Finally, this step is followed by
control and evaluation of performance of HR to check whether the HR planning matches the HR
objectives and policies. This action plan should be updated according to change in time ans
conditions.

Short Term and Long Term Manpower Planning

1. Short Term Manpower Planning:


It is concerned with the process of matching the existing employees with their present jobs so
that they perform efficiently.

There should be perfect correlation between the jobs and individuals. In the short run, it is the
duty of the management to adjust employees with the jobs.

It is very difficult to retrench the employees due to legal constraints and social obligations on the
part of the employer. Some adjustments in the jobs should be made in the short run to
accommodate the employees.

Following steps may be taken for successful implementation of short term


manpower planning:

(A) When employee is less qualified as compared to job specifications, qualifications etc.
Following steps may be undertaken:
(i) Employees are given training for improvement in performance.

(ii) If the job is not liked by the employee, it may be changed.

(iii) Transfer and demotion also helps in adjustment of employees.

(iv) In case of responsible jobs, assistants may be provided for help.

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(b) Sometimes the employee is more qualified than the requirements of a job:
Under such circumstances the abilities and skills of the employee are not utilised to the
fullest extent. Following steps may be taken for making adjustments:
(i) Job enlargement may be undertaken i.e. scope of the job undertaken by the employee may be
widened.

(ii) If there are vacant positions at the higher levels, promotion may be given to the employees.

(iii) Advice and counselling may be sought from the employer.

(iv) The employee may be given additional temporary assignments.

2. Long-Term Manpower Planning:


Under long term planning, management has ample time to make required adjustments by taking
necessary steps. Long term manpower planning covers a longer period say 15 to 20 years or so,
for meeting manpower requirements of a concern.

Following steps are suggested in case of long term manpower planning:

(i) Projecting Manpower needs:


The first important step in long- run manpower planning is to develop that organisational
structure that will meet future manpower requirements in the best possible manner. The basic aim
is to keep pace with the changes in future. Due to rapid technological advancement at present, it
is not an easy task to predict accurately future jobs needed for the organisation.

That some firms claim that executive manpower needs are too intangible to forecast, that
management cannot be defined or planned for in any constructive manner. Edwin. B. Flippo

It may be pointed out that if the process of manpower planning is systematically undertaken, it
brings about the desired results.

An analysis of the under mentioned problems in the process of manpower planning may be
helpful in projecting the future manpower need of an organisation.

(a) Rate of loss of manpower due to retirement, separation, resignation and retrenchment must be
predicted and need for replacement must be kept in mind.

(b) Need of new manpower requirements over and above the replacements should be predicted.

(c) Job specifications i.e. qualifications and abilities needed for different types of jobs must be
clearly laid down.

(ii) Inventory and Analysis of Manpower:


Manpower inventory and analysis involves the appraising of personnel by cataloguing their
characteristics by incorporating their educational and professional qualifications. The personnel
inventorying includes the counting of number of persons available at present.
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It does not include counting of employees only but extends to the determination of personnel to
be inventoried, systematic and detailed appraisal of those individuals (after catloguing them) and
a detailed study of those who possess good potential for development.

It can be concluded that manpower inventory and analysis provides valuable information
pertaining to present and future employees in the organisation. The information may not be
completely accurate but is valuable and provides basis for the recruitment, selection and training
processes to be followed in the organisation in the days to come.

(iii) Recruitment and Selection:


Long term manpower planning establishes the processes of recruitment and selection on proper
lines. It brings about scientific recruitment and selection methods, which in turn helps in
appointing the best type of employee in the organisation.

(iv) Development and Training of the Employees:


Manpower planning is concerned with development and training of employees to take up new
and challenging tasks and responsibilities. Well trained employees are invaluable assets for the
organisation.

Significance Or Importance Of Human Resource Planning

Human resource planning aims at fulfilling the objectives of manpower requirement. It helps to
mobilize the recruited resources for the productive activities. The human resource planning is
and important process aiming to link business strategy and its operation. The importance of
human resource planning are as follows:

1. Future Manpower Needs


Human resource planning ensures that people are available to provide the continued smooth
operation of an organization. It means, human resource planning is regarded as a tool to assure
the future availability of manpower to carry on the organizational activities. It determines the
future needs of manpower in terms of number and kind.

2. Coping With Change


Human resource planning is important to cope with the change associated with the external
environmental factors. It helps assess the current human resources through HR inventory and
adapts it to changing technological, political, socio-cultural, and economic forces.

3. Recruitment Of Talented Personnel


Another purpose of HR planning is to recruit and select the most capable personnel to fill job
vacancies.It determines human resource needs, assesses the available HR inventory level and
finally recruit the personnel needed to perform the job.

4. Development Of Human Resources


Human resource planning identifies the skill requirements for various levels of jobs. Then it
organizes various training and development campaigns to impart the required skill and ability in
employees to perform the task efficiently and effectively.
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5. Proper Utilization Of Human Resources


Human resource planning measures that the organization acquires and utilizes the manpower
effectively to achieve objectives. Human resource planning helps in assessing and recruiting
skilled human resource. It focuses on the optimum utilization of human resource to minimize the
overall cost of production.

6. Uncertainty Reduction
This is associated with reducing the impact of uncertainty which are brought by unsudden
changes in processes and procedures of human resource management in the organization

8. Define supply forecasting? Explain in detail how internal and external supply is
managed?

Human Resource supply forecasting is the process of estimating availability of human resource
followed after demand for testing of human resource. For forecasting supply of human resource
we need to consider internal and external supply. Internal supply of human resource available by
way of transfers, promotions, retired employees & recall of laid-off employees, etc. Source of
external supply of human resource is availability of labour force in the market and new
recruitment.

external supply of human resource depends on some factors mentioned below.

Supply and demand of jobs.

literacy rate of nation.

rate of population

industry and expected growth rate and levels

technological development.

compensation system based on education, experience, skill and age.

EXTERNAL SUPPLY
The external supply of potential employees available to the organization needs to be estimated.
Extensive use of government labor force population estimates, trends in the industry, and many
more complex and interrelated factors must be considered. Here are some of the factors that may
be considered:

-Net migration into and out of the area


-Individuals entering and leaving the workforce
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-Individuals graduating from schools and colleges


-Changing workforce composition and patterns
-Economic forecasts for the next few years
-Technological developments and shifts
-Actions of competing employers
-Government regulations and pressures
-Factors affecting persons entering and leaving the workforce

INTERNAL SUPPLY

Estimating internal supply considers that employees move from their current jobs into others
through promotions, lateral moves, and terminations. Also, it considers that the internal supply is
influenced by training and development programs, transfer and promotion policies, and
retirement policies, among other factors. Internally, succession analysis is one method used to
forecast the supply of people for certain positions. It relies on replacement charts,which are
succession plans developed to identify potential personnel changes, select backup candidates,
promote individuals, and keep track of attribution (resignations, retirements) for each department
in an organization.

Supply forecasting is projecting the firms future supply of labour in assessing its current
supply of labour. Supply forecasting ha s two dimensions: External supply of personnel
and internal supply. Supply forecasting techniques are: Markov Analysis, Simulation,
Renewed analysis and Goal programming.
Markova Analysis: This method is used on the basis of historical information on the
movement of personnel that takes place during a typical plan period. Data are collected and
reviewed for a number of years in order to estimate the likelihood that a person in a particular
job will remain in that job or to be transferred, promoted, terminated or retired. Those
historical flows of personnel (transactions) through the organizations are represented by
probabilities. The probabilities are arranged in a transition matrix and future personnel flows
are estimated on the matrix.
Simulation: This is based on the Markova analysis, the simulation techniques considers
alternative flows which are examined for effects on future man power supplies. Alternative
flows reflect the anticipated results of policy or programme changes concerning voluntary or
in voluntary turnover and retirement and promotions and so on.
Renewed analysis: This technique estimates future flows and supplies of man power by
calculating, (i) vacancies created by the organization and (ii) the results of decision rules
governing the filling of vacancies, Alternative models may assess the effects of changes in
growth estimates, turnover etc.
Goal programming: It is an operational research technique under which the planner tends to
optimize goal. In this case, the goal to optimize is the desired staffing pattern subject to a set
of constraints concerning such factors as

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The upper limit flows, the percentage of new recruits permitted and The total compensation
budget.

9. State and explain the various kinds of interviews. (Nov/December 2013)

Interview is formal, in-depth conversation conducted to evaluate the applicants acceptability. It


is considered to be excellent selection device. It is face-to-face exchange of view, ideas and
opinion between the candidates and interviewers. Basically, interview is nothing but an oral
examination of candidates. Interview can be adapted to unskilled, skilled, managerial and
profession employees.

Objectives of interview:

Interview has at least three objectives and they are a follows:

Helps obtain additional information from the applicants


Facilitates giving general information to the applicants such as company policies, job,
products manufactured and the like
Helps build the companys image among the applicants.

Types of interview:

Following are the various types of interview used in the employee selection process:

1) Informal Interview:

An informal interview is an oral interview and may take place anywhere. The employee or the
manager or the personnel manager may ask a few almost inconsequential questions like name,
place of birth, names of relatives etc. either in their respective offices or anywhere outside the
plant of company. It id not planned and nobody prepares for it. This is used widely when the
labour market is tight and when you need workers badly.

2) Formal Interview:

Formal interviews may be held in the employment office by he employment office in a more
formal atmosphere, with the help of well structured questions, the time and place of the interview
will be stipulated by the employment office.

3) Non-directive Interview:

Non-directive interview or unstructured interview is designed to let the interviewee speak his
mind freely. The interviewer has no formal or directive questions, but his all attention is to the
candidate. He encourages the candidate to talk by a little prodding whenever he is silent e.g. Mr.
Ray, please tell us about yourself after your graduated from high school.

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The idea is o give the candidate complete freedom to sell himself, without the encumbrances
of the interviewers question. But the interviewer must be of higher caliber and must guide and
relate the information given by the applicant to the objective of the interview.

4) Depth Interview:

It is designed to intensely examine the candidates background and thinking and to go into
considerable detail on particular subjects of an important nature and of special interest to the
candidates. For example, if the candidate says that he is interested in tennis, a series of questions
may be asked to test the depth of understanding and interest of the candidate. These probing
questions must be asked with tact and through exhaustive analysis; it is possible to get a good
picture of the candidate.

5) Stress Interview:

It is designed to test the candidate and his conduct and behavior by him under conditions of
stress and strain. The interviewer may start with Mr. Joseph, we do not think your qualifications
and experience are adequate for this position, and watch the reaction of the candidates. A good
candidates will not yield, on the contrary he may substantiate why he is qualified to handle the
job.

This type of interview is borrowed from the Military organisation and this is very useful to test
behaviour of individuals when they are faced with disagreeable and trying situations.

6) Group Interview:

It is designed to save busy executives time and to see how the candidates may be brought
together in the employment office and they may be interviewed.

7) Panel Interview:

A panel or interviewing board or selection committee may interview the candidate, usually in the
case of supervisory and managerial positions. This type of interview pools the collective
judgment and wisdom of the panel in the assessment of the candidate and also in questioning the
faculties of the candidate.

8) Sequential Interview:

The sequential interview takes the one-to-one a step further and involves a series of interview,
usually utilizing the strength and knowledgebase of each interviewer, so that each interviewer
can ask questions in relation to his or her subject area of each candidate, as the candidate moves
from room to room.

9) Structures Interview:

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In a structured interview, the interviewer uses preset standardized questions, which are put to all
the interviewees. This interview is also called as Guided or Patterned interview. It is useful for
valid results, especially when dealing with the large number of applicants.

10) Unstructured Interview:

It is also known as Unpatterned interview, the interview is largely unplanned and the
interviewee does most of the talking. Unguided interview is advantageous in as much as it leads
to a friendly conversation between the interviewer and the interviewee and in the process, the
later reveals more of his or her desire and problems. But the Unpatterned interview lacks
uniformity and worse, this approach may overlook key areas of the applicants skills or
background. It is useful when the interviewer tries to probe personal details of the candidate it
analyse why they are not right for the job.

11) Mixed Interview:

In practice, the interviewer while interviewing the job seekers uses a blend of structured and
structured and unstructured questions. This approach is called the Mixed Interview. The
structured questions provide a base of interview more conventional and permit greater insights
into the unique differences between applicants.

12) Impromptu Interviews:

This interview commonly occurs when employers are approached directly and tends to be very
informal and unstructured. Applicants should be prepared at all times for on-the-spot interviews,
especially in situations such as a job fair or a cold call. It is an ideal time for employers to ask the
candidate some basic questions to determine whether he/she may be interested in formally
interviewing the candidate.

13) Dinner Interviews:

These interviews may be structured, informal, or socially situated, such as in a restaurant. Decide
what to eat quickly, some interviewers will ask you to order first (do not appear indecisive).
Avoid potentially messy foods, such as spaghetti. Be prepared for the conversation to abruptly
change from friendly chat to direct interview questions, however, do not underestimate the value
of casual discussion, some employers place a great value on it. Be prepared to switch gears
rapidly, from fun talk to business talk.

14) Telephone Interviews:

Have a copy of your resume and any points you want to remember to say nearby. If you are on
your home telephone, make sure that all roommates or family members are aware of the
interview (no loud stereos, barking dogs etc.). Speak a bit slower than usual. It is crucial that you
convey your enthusiasm verbally, since the interviewer cannot see your face. If there are pauses,
do not worry; the interviewer is likely just taking some notes.

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15) Second Interviews:

Job seekers are invited back after they have passed the first initial interview. Middle or senior
management generally conducts the second interview, together or separately. Applicants can
expect more in-depth questions, and the employer will be expecting a greater level of preparation
on the part of the candidates. Applicants should continue to research the employer following the
first interview, and be prepared to use any information gained through the previous interview to
their advantage.

11. What are the different methods of selection? Explain the selection process for a
Business Human Research firm depending on the skill set with which they expect their
employees to be. (May 2011)

1. Job Analysis : The first step in selection process is analyzing the job. Job analysis consists of
two parts :

(a) Job Description, and

(b) Job Specification.

Proper job analysis helps to advertise the job properly. Accordingly, the right candidates may
apply for the job, thus saving a lot of time and effort of the selectors.

2. Advertising the Job : The next step is to advertise the job. The job can be advertised
through various media. The right details about the job and the candidate must be given in the
advertisement.

3. Initial Screening : The initial screening can be done of the applications and of the
applicant. Usually, a junior executive does the screening work. At this stage, the executive may
check on the general personality, age, qualifications, family background of the candidate.
Application Blank : It is a prescribed form of the company which helps to obtain information
about candidate in respect of social, biographic, academic, work experience, references, etc.

The application blank helps to

It provides input for the interview.


It provides basis to reject candidates if they do not meet eligibility criteria, such as
experience, qualifications, etc.

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5. Tests : Various tests are conducted to judge the ability and efficiency of the candidates. The
type of tests depends upon the nature of job. An important advantage of testing is that it can be
administered to a large group of candidates at a time and saves time and cost.

The various tests are : (a) Personality test, (b) Intelligence test, (c) Performance test, (d) Stress
test, etc.

6. Interview : It is face to face exchange of views, ideas and opinions between the candidate
and interviewer(s). There are various types of interviews such as : (a) Panel Interview, (b)
Individual Interview, (c) Group Interview, (d) Stress Interview, (e) Exit Interview.

7. Reference Check : A candidate may be asked to provide references from those who are
willing to supply or confirm about the applicants past life, character and experience.

Reference check helps to know the personal character and family background of the
candidate.
It helps to guard against possible false information supplied by candidate.

8. Medical Check : Medical examination of the candidates is undertaken before they join the
firm in order to

Find out whether the candidate is physically fit to carry out duties and responsibilities
effectively,
Ensure the health and safety of other employees,
Find out whether the candidate is sensitive to certain work place such as in a chemical
factory.

9. Final Interview : Before making a job offer, the candidates may be subjected to one more
oral interview to find out their interest in the job and their expectations. At this stage, salary and
other perks may be negotiated.

10. Job Offer : This is the most crucial and final step in selection process. A wrong selection
of a candidate may make the company to suffer for a good number of years and the loss is
incalculable. Company should make a very important decision to offerright job to the right
person.

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Unit-III
Part A
1. Define training. (April/ May 2012)
Training is a learning experience in that it seeks a relatively permanent change in as individual
that will improve his or her ability to perform on the job.
2. Define development.
Development improves the job performance and the growth of the personality, realization and
actualization of their potential capacities.
3. Define Education. (April/ May 2010)
Education is the understanding and interpretation of knowledge.
4. State the basic purpose of training.
To increase productivity. To improve quality. To help a company fulfill its future personnel
needs.To improve organizational climate. To improve health and safety. Obsolescence
prevention. Personal growth.
5. Write the process in social learning theory.
Attention process, retention process, motor reproduction processes and reinforcement process.
6. What are the factors to be considered in training?
Inadequate job performance, Drop in productivity, A rise in accident rates, Changes that are
imposed on the worker.
7. Explain need assessment in training. (Nov/Dcember 2013)
It is the process of evaluating the organization, individual employees and employees tasks to
determine what kinds of training, if any, are necessary. Organization- What is the context in
which training will occur? Person- Who needs training? Task- What subjects should the training
cover?
8. What are the methods for determining training needs?
Observation and analysis of job performance, Management & staff conference and
recommendations, Analysis of job requirements, Consideration of current and projected changes,
Surveys, reports and inventories, Interviews.
9. What are the different types training methods? (April/ May 2014)
On the job training methods and Off the job training methods. Apprenticeship programme, Job
instruction training, Job rotation. Class room lecturers. Films-motion pictures. Demonstration,
Case studies, Simulation exercise, Vestibule training, Computer modeling, Experiential
exercises, Business games , Behaviour modeling, Team learning, Action learning
10. What are the different on-the-job training methods?
Apprenticeship programme, Job instruction training, Job rotation.
11. What are the off-the-job training methods?
Class room lecturers(Films-motion picture), Demonstration (Case studies), Simulation
exercise(Vestibule training), Computer modeling (Experiential exercises), Business games
(Behaviour modeling), Team learning (Action learning).
12. What are the factors influencing change? (April/ May 2012)
People, Technology, Information processing and communication, Competition, Social
changes.
13. What are the important stages in change process?
Unfreezing,, Changing, Refreezing.
14. Define Knowledge development. (May 2011)
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The task of developing and exploiting organization tangible and intangible knowledge
resources
15. What are the types of knowledge?
The two types of knowledge are tacit and explicit knowledge.
16. Why resistance evolves when a change is introduced in an organization?
The resistance evolves because of the employees fear that they may lose the job because of
the introduction of new technology in the organization.
17. Define Knowledge map.
Knowledge map is something that tells you where to go and what to find.
18. Define knowledge gap.
The difference between what the enterprise requires and what it is currently has is what is
called as knowledge gap.
19. Define self control. (Nov/ December 2011)
Self control refers to the behaviour that an individual deliberately undertakes to achieve self-
selected outcomes .the individual employees selects the goals and implements the procedures to
achieve these goals.
20. What are the advantages of on-the-job training methods?
Less costly to operate, Places the employees in actual work situation and makes them
productive.
21. Explain the behaviour influencing training.
Behaviour influencing training strategy focused on Discrimination, concepts, chaining,
principles and problem solving areas.
22. What is mean by chaining?
Many jobs require trainees to perform tasks in a fixed sequence or a set of sequence, using
behaviour previously learnt and supplemented by contents of position. This is called chaining.
23. Define behaviour modification. (Nov/December 2010)
Managers identify performance related employee behaviour and then implement an
intervention strategy to strengthen desirable performance behaviour.

Part B
1. Explain various steps involved in training process. (April/ May 2014)

1. Identifying Training Needs: Training need is a difference between standard performance and
actual performance. Hence, it tries to bridge the gap between standard performance and actual
performance. The gap clearly underlines the need for training of employees. Hence, under this
phase, the gap is identified in order to assess the training needs.

2. Establish Specific Objectives: After the identification of training needs, the most crucial task
is to determine the objectives of training. Hence, the primary purpose of training should focus to
bridge the gap between standard performance and actual performance. This can be done
through setting training objectives. Thus, basic objective of training is to bring proper match
between man and the job.

3. Select Appropriate Methods: Training methods are desired means of attaining training
objectives. After the determination of training needs and specification of objectives, an
appropriate training method is to be identified and selected to achieve the stated objectives.
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There are number of training methods available but their suitability is judged as per the need of
organizational training needs.

4. Implement Programs: After the selection of an appropriate method, the actual functioning
takes place. Under this step, the prepared plans and programs are implemented to get the desired
output. Under it,employees are trained to develop for better performance of organizational
activities.

5. Evaluate Program: It consists of an evaluation of various aspects of training in order to know


whether the training program was effective. In other words, it refers to the training utility in
terms of effect of training on employees' performance.

6. Feedback: Finally, a feedback mechanism is created in order to identify the weak areas in the
training program and improve the same in future. For this purpose, information relating to class
room, food, lodging etc. are obtained from participants. The obtained information, then,
tabulated, evaluated, and analyzed in order to mark weak areas of training programs and for
future improvements.

2. Discuss the objectives of evaluating a training programme.

Determining business impact, the cost-benefit ratio, and the ROI for the program: What
was the shift in the identified business metric? What part of the shift was attributable to the
learning experience? Was the benefit to the organisation worth the cost of providing the learning
experience? What is the bottom-line value of the courses impact on the organisation?
Improving the design of the learning experience: Evaluation can help verify the needs
assessment, learning objectives, instructional strategies, target audience, delivery method, and
quality of delivery and course content.
Determining whether the objectives of the learning experience were met and to what
extent: The objectives are stated in measurable and specific terms. Evaluation determines
whether each stated objective was met. Nevertheless, knowing only whether objectives were met
isnt enough; a trainer must know the extent to which were met. This knowledge help focus
future efforts for the content reinforcement and improvement.
Assessing the effectiveness and appropriateness of instructional strategies: case studies,
tests, exercises, and other instructional strategies must be relevant to the job and reinforce course
content. Does the instructional strategy link to a course objective and the course content? Is it the
right instructional strategy to drive the desired learning or practice? Was there enough instruction
and feedback? Does the strategy fit with the organisations culture? Instructional strategies, when
used as part of evaluation, measure the knowledge, skills and attitudes the learning experience
offers.
Reinforcing learning: Some evaluation methods can reinforce learning. For example, a test or
similar performance assessment can focus on content to measure and evaluate content retention.
The measurement process itself causes learners to reflect on the content, select the appropriate
content area, and use it in the evaluation process.
Providing feedback to the trainer: Did the trainer know the content? Did the trainer stay on
topic? Did the trainer provide added depth and value based on personal experience? Was the
trainer credible? Will the evaluation information be used to improve the trainers skills?
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Determining the appropriate pace and sequence: Does the trainer need to schedule more or
less time for the total learning experience or certain parts of the learning? Were some parts of the
learning experience covered too fast or too slowly? Does the flow of the content make sense?
Does the sequence follow a building-block approach?
Providing feedback to participants about their learning? Are participants learning the course
content? Which parts are they not learning? Was there a shift in knowledge and skills? To what
extent can participants demonstrate the desired skills or behavior?
Identifying which participants are experiencing success in the learning program: Evaluation
can identify which participants are grasping the new knowledge and skills and which are
struggling. Likewise, evaluation can identify participants who are excelling at understanding the
content and using on the job.
Identifying the learning being used on the job: What parts of the learning experience are being
used on the job? To what extent are they being used?
Assessing the on-the-job environment to support learning: What environmental factors
support or inhibit the use of the new knowledge, skills, attitudes, and behaviors on the job? These
factors could be management support, tools and equipment, recognition and reward, and so on.

3. Discuss the role of institutions in executive development programme.

4. Elucidate various training methods used in industries to enhance the skill of the people.
(May 2011) (or)
5. List out and explain on- the- job and off- the- job training. (May 2011) (Dec 2010) (April/
May 2014) (or)
6. Explain the types of Executive development programme. (May 2011) (or)
7. Explain the various techniques followed in Executive development programme

A. On-the-job Training Methods:


1. Coaching
2. Mentoring
3. Job Rotation
4. Job Instruction Technology
5. Apprenticeship
6. Understudy

B. Off-the-Job Training Methods:


1. Lectures and Conferences
2. Vestibule Training
3. Simulation Exercises
4. Sensitivity Training
5. Transactional Training

A. On-the-job training Methods:


Under these methods new or inexperienced employees learn through observing peers or
managers performing the job and trying to imitate their behaviour. These methods do not cost
much and are less disruptive as employees are always on the job, training is given on the same

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machines and experience would be on already approved standards, and above all the trainee is
learning while earning. Some of the commonly used methods are:

1. Coaching:
Coaching is a one-to-one training. It helps in quickly identifying the weak areas and tries to
focus on them. It also offers the benefit of transferring theory learning to practice. The biggest
problem is that it perpetrates the existing practices and styles. In India most of the scooter
mechanics are trained only through this method.

2. Mentoring:
The focus in this training is on the development of attitude. It is used for managerial employees.
Mentoring is always done by a senior inside person. It is also one-to- one interaction, like
coaching.

3. Job Rotation:
It is the process of training employees by rotating them through a series of related jobs. Rotation
not only makes a person well acquainted with different jobs, but it also alleviates boredom and
allows to develop rapport with a number of people. Rotation must be logical.

4. Job Instructional Technique (JIT):


It is a Step by step (structured) on the job training method in which a suitable trainer (a) prepares
a trainee with an overview of the job, its purpose, and the results desired, (b) demonstrates the
task or the skill to the trainee, (c) allows the trainee to show the demonstration on his or her own,
and (d) follows up to provide feedback and help. The trainees are presented the learning material
in written or by learning machines through a series called frames. This method is a valuable
tool for all educators (teachers and trainers). It helps us:

a. To deliver step-by-step instruction


b. To know when the learner has learned
c. To be due diligent (in many work-place environments)

5. Apprenticeship:
Apprenticeship is a system of training a new generation of practitioners of a skill. This method of
training is in vogue in those trades, crafts and technical fields in which a long period is required
for gaining proficiency. The trainees serve as apprentices to experts for long periods. They have
to work in direct association with and also under the direct supervision of their masters.
The object of such training is to make the trainees all-round craftsmen. It is an expensive method
of training. Also, there is no guarantee that the trained worker will continue to work in the same
organisation after securing training. The apprentices are paid remuneration according the
apprenticeship agreements.

6. Understudy:
In this method, a superior gives training to a subordinate as his understudy like an assistant to a
manager or director (in a film). The subordinate learns through experience and observation by
participating in handling day to day problems. Basic purpose is to prepare subordinate for
assuming the full responsibilities and duties.
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B. Off-the-job Training Methods:


Off-the-job training methods are conducted in separate from the job environment, study material
is supplied, there is full concentration on learning rather than performing, and there is freedom of
expression. Important methods include:

1. Lectures and Conferences:


Lectures and conferences are the traditional and direct method of instruction. Every training
programme starts with lecture and conference. Its a verbal presentation for a large audience.
However, the lectures have to be motivating and creating interest among trainees. The speaker
must have considerable depth in the subject. In the colleges and universities, lectures and
seminars are the most common methods used for training.

2. Vestibule Training:
Vestibule Training is a term for near-the-job training, as it offers access to something new
(learning). In vestibule training, the workers are trained in a prototype environment on specific
jobs in a special part of the plant.
An attempt is made to create working condition similar to the actual workshop conditions. After
training workers in such condition, the trained workers may be put on similar jobs in the actual
workshop.
This enables the workers to secure training in the best methods to work and to get rid of initial
nervousness. During the Second World War II, this method was used to train a large number of
workers in a short period of time. It may also be used as a preliminary to on-the job training.
Duration ranges from few days to few weeks. It prevents trainees to commit costly mistakes on
the actual machines.

3. Simulation Exercises:
Simulation is any artificial environment exactly similar to the actual situation. There are four
basic simulation techniques used for imparting training: management games, case study, role
playing, and in-basket training.

(a) Management Games:


Properly designed games help to ingrain thinking habits, analytical, logical and reasoning
capabilities, importance of team work, time management, to make decisions lacking complete
information, communication and leadership capabilities. Use of management games can
encourage novel, innovative mechanisms for coping with stress.
Management games orient a candidate with practical applicability of the subject. These games
help to appreciate management concepts in a practical way. Different games are used for training
general managers and the middle management and functional heads executive Games and
functional heads.

(b) Case Study:


Case studies are complex examples which give an insight into the context of a problem as well as
illustrating the main point. Case Studies are trainee centered activities based on topics that
demonstrate theoretical concepts in an applied setting.

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A case study allows the application of theoretical concepts to be demonstrated, thus bridging the
gap between theory and practice, encourage active learning, provides an opportunity for the
development of key skills such as communication, group working and problem solving, and
increases the trainees enjoyment of the topic and hence their desire to learn.

(c) Role Playing:


Each trainee takes the role of a person affected by an issue and studies the impacts of the issues
on human life and/or the effects of human activities on the world around us from the perspective
of that person.
It emphasizes the real- world side of science and challenges students to deal with complex
problems with no single right answer and to use a variety of skills beyond those employed in a
typical research project.
In particular, role-playing presents the student a valuable opportunity to learn not just the course
content, but other perspectives on it. The steps involved in role playing include defining
objectives, choose context & roles, introducing the exercise, trainee preparation/research, the
role-play, concluding discussion, and assessment. Types of role play may be multiple role play,
single role play, role rotation, and spontaneous role play.

(d) In-basket training:


In-basket exercise, also known as in-tray training, consists of a set of business papers which may
include e-mail SMSs, reports, memos, and other items. Now the trainer is asked to prioritise the
decisions to be made immediately and the ones that can be delayed.

4. Sensitivity Training:
Sensitivity training is also known as laboratory or T-group training. This training is about making
people understand about themselves and others reasonably, which is done by developing in them
social sensitivity and behavioral flexibility. It is ability of an individual to sense what others feel
and think from their own point of view.

It reveals information about his or her own personal qualities, concerns, emotional issues, and
things that he or she has in common with other members of the group. It is the ability to behave
suitably in light of understanding.

A groups trainer refrains from acting as a group leader or lecturer, attempting instead to clarify
the group processes using incidents as examples to clarify general points or provide feedback.
The group action, overall, is the goal as well as the process.
Sensitivity training Program comprises three steps (see Figure 18.7)

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5. Transactional Analysis:
It provides trainees with a realistic and useful method for analyzing and understanding the
behavior of others. In every social interaction, there is a motivation provided by one person and a
reaction to that motivation given by another person.
This motivation reaction relationship between two persons is known as a transaction.
Transactional analysis can be done by the ego (system of feelings accompanied by a related set
of behaviors states of an individual).

Child:
It is a collection of recordings in the brain of an individual of behaviors, attitudes, and impulses
which come to him/her naturally from his/her own understanding as a child. The characteristics
of this ego are to be spontaneous, intense, unconfident, reliant, probing, anxious, etc. Verbal
clues that a person is operating from its child state are the use of words like I guess, I
suppose, etc. and non verbal clues like, giggling, coyness, silent, attention seeking etc.

Parent:
It is a collection of recordings in the brain of an individual of behaviors, attitudes, and impulses
imposed on her in her childhood from various sources such as, social, parents, friends, etc.
The characteristics of this ego are to be overprotective, isolated, rigid, bossy, etc. Verbal clues
that a person is operating from its parent states are the use of words like, always, should, never,
etc and non-verbal clues such as, raising eyebrows, pointing an accusing finger at somebody, etc.

Adult:
It is a collection of reality testing, rational behaviour, decision making, etc. A person in this ego
state verifies, updates the reaction which she has received from the other two states. It is a shift
from the taught and felt concepts to tested concepts.

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All of us show behaviour from one ego state which is responded to by the other person from any
of these three states.

8. Describe the phases of Knowledge Management. Why knowledge management is


important to an organization? (Dec 2010) (Nov/ December 2013)
Many organizations leap into a knowledge management solution (e.g. document management,
data mining, blogging, and community forums) without first considering the purpose or
objectives they wish to fulfill or how the organization will adopt and follow best practices for
managing its knowledge assets long term.

A successful knowledge management program will consider more than just technology. An
organization should also consider:

People. They represent how you increase the ability of individuals within the organization to
influence others with their knowledge.

Processes. They involve how you establish best practices and governance for the efficient
and accurate identification, management, and dissemination of knowledge.
Technology. It addresses how you choose, configure, and utilize tools and automation to
enable knowledge management.
Structure. It directs how you transform organizational structures to facilitate and
encourage cross-discipline awareness and expertise.
Culture. It embodies how you establish and cultivate a knowledge-sharing, knowledge-
driven culture.
8 Steps to Implementation

Implementing a knowledge management program is no easy feat. You will encounter many
challenges along the way including many of the following:

Inability to recognize or articulate knowledge; turning tacit knowledge into explicit knowledge.
Geographical distance and/or language barriers in an international company.
Limitations of information and communication technologies.
Loosely defined areas of expertise.
Internal conflicts (e.g. professional territoriality).
Lack of incentives or performance management goals.
Poor training or mentoring programs.
Cultural barriers (e.g. this is how we've always done it mentality).
The following eight-step approach will enable you to identify these challenges so you can plan
for them, thus minimizing the risks and maximizing the rewards. This approach was developed
based on logical, tried-and-true activities for implementing any new organizational program. The
early steps involve strategy, planning, and requirements gathering while the later steps focus on
execution and continual improvement.

Step 1: Establish Knowledge Management Program Objectives

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Before selecting a tool, defining a process, and developing workflows, you should envision and
articulate the end state. In order to establish the appropriate program objectives, identify and
document the business problems that need resolution and the business drivers that will provide
momentum and justification for the endeavor.

Provide both short-term and long-term objectives that address the business problems and support
the business drivers. Short-term objectives should seek to provide validation that the program is
on the right path while long-term objectives will help to create and communicate the big picture.

Step 2: Prepare for Change

Knowledge management is more than just an application of technology. It involves cultural


changes in the way employees perceive and share knowledge they develop or possess. One
common cultural hurdle to increasing the sharing of knowledge is that companies primarily
reward individual performance. This practice promotes a "knowledge is power" behavior that
contradicts the desired knowledge-sharing, knowledge-driven culture end state you are after.

Successfully implementing a new knowledge management program may require changes within
the organization's norms and shared values; changes that some people might resist or even
attempt to quash. To minimize the negative impact of such changes, it's wise to follow an
established approach for managing cultural change.

Step 3: Define High-Level Process

To facilitate the effective management of your organization's knowledge assets, you should begin
by laying out a high-level knowledge management process. The process can be progressively
developed with detailed procedures and work instructions throughout steps four, five, and six.
However, it should be finalized and approved prior to step seven (implementation).

Organizations that overlook or loosely define the knowledge management process will not
realize the full potential of their knowledge management objectives. How knowledge is
identified, captured, categorized, and disseminated will be ad hoc at best. There are a number of
knowledge management best practices, all of which comprise similar activities. In general, these
activities include knowledge strategy, creation, identification, classification, capture, validation,
transfer, maintenance, archival, measurement, and reporting.

Step 4: Determine and Prioritize Technology Needs

Depending on the program objectives established in step one and the process controls and criteria
defined in step three, you can begin to determine and prioritize your knowledge management
technology needs. With such a variety of knowledge management solutions, it is imperative to
understand the cost and benefit of each type of technology and the primary technology providers
in the marketplace. Don't be too quick to purchase a new technology without first determining if
your existing technologies can meet your needs. You can also wait to make costly technology
decisions after the knowledge management program is well underway if there is broad support
and a need for enhanced computing and automation.
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Step 5: Assess Current State

Now that you've established your program objectives to solve your business problem, prepared
for change to address cultural issues, defined a high-level process to enable the effective
management of your knowledge assets, and determined and prioritized your technology needs
that will enhance and automate knowledge management related activities, you are in a position to
assess the current state of knowledge management within your organization.

The knowledge management assessment should cover all five core knowledge management
components: people, processes, technology, structure, and culture. A typical assessment should
provide an overview of the assessment, the gaps between current and desired states, and the
recommendations for attenuating identified gaps. The recommendations will become the
foundation for the roadmap in step six.

Step 6: Build a Knowledge Management Implementation Roadmap

With the current-state assessment in hand, it is time to build the implementation roadmap for
your knowledge management program. But before going too far, you should re-confirm senior
leadership's support and commitment, as well as the funding to implement and maintain the
knowledge management program. Without these prerequisites, your efforts will be futile. Having
solid evidence of your organizations shortcomings, via the assessment, should drive the urgency
rate up.

Having a strategy on how to overcome the shortcomings will be critical in gaining leadership's
support and getting the funding you will need. This strategy can be presented as a roadmap of
related projects, each addressing specific gaps identified by the assessment. The roadmap can
span months and years and illustrate key milestones and dependencies. A good roadmap will
yield some short-term wins in the first step of projects, which will bolster support for subsequent
steps.

As time progresses, continue to review and evolve the roadmap based upon the changing
economic conditions and business drivers. You will undoubtedly gain additional insight through
the lessons learned from earlier projects that can be applied to future projects as well.

Step 7: Implementation

Implementing a knowledge management program and maturing the overall effectiveness of your
organization will require significant personnel resources and funding. Be prepared for the long
haul, but at the same time, ensure that incremental advances are made and publicized. As long as
there are recognized value and benefits, especially in light of ongoing successes, there should be
little resistance to continued knowledge management investments.

With that said, it's time for the rubber to meet the road. You know what the objectives are. You
have properly mitigated all cultural issues. Youve got the processes and technologies that will
enable and launch your knowledge management program. You know what the gaps are and have
a roadmap to tell you how to address them.
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As you advance through each step of the roadmap, make sure you are realizing your short-term
wins. Without them, your program may lose momentum and the support of key stakeholders.

Step 8: Measure and Improve the Knowledge Management Program

How will you know your knowledge management investments are working? You will need a way
of measuring your actual effectiveness and comparing that to anticipated results. If possible,
establish some baseline measurements in order to capture the before shot of the organizations
performance prior to implementing the knowledge management program. Then, after
implementation, trend and compare the new results to the old results to see how performance has
improved.

Dont be disillusioned if the delta is not as large as you would have anticipated. It will take time
for the organization to become proficient with the new processes and improvements. Over time,
the results should follow suit.

When deciding upon the appropriate metrics to measure your organizations progress, establish a
balanced scorecard that provides metrics in the areas of performance, quality, compliance, and
value. The key point behind establishing a knowledge management balanced scorecard is that it
provides valuable insight into what's working and what's not. You can then take the necessary
actions to mitigate compliance, performance, quality, and value gaps, thus improving overall
efficacy of the knowledge management program.

The Power of Knowledge Management

Implementing a complete knowledge management takes time and money, however, the results
can be impressive and risks can be minimized by taking a phased approach that gives beneficial
returns at each step. Organizations that have made this kind of investment in knowledge
management realize tangible results quickly. They add to their top and bottom lines through
faster cycle times, enhanced efficiency, better decision making and greater use of tested solutions
across the enterprise.

Importance of knowledge management


Produce : Apply the right combination of knowledge and systems so that you produce a
knowledge based environment.
Respond : Constantly monitor and respond to the marketplace through an empowered workforce
within a decentralized structure.
Anticipate : Become pro-active by anticipating events and issues based on this new decentralized
knowledge based system.
Attract : Attract people who have a thirst for knowledge, people who clearly demonstrate that
they love to learn and share their knowledge opening with others. These so-called knowledge
professionals are one of the most significant components of your intellectual capital.
Create : Provide a strong learning environment for the thirsty knowledge worker. Allow everyone
to learn through experiences with customers, competition, etc.
Last : Secure long-term commitments from knowledge professionals. These people are key
drivers behind your organization. If they leave, there goes the knowledge.
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Knowledge professionals will become the dominant force behind the new economy, not unlike
the farmer was once the key player behind the agricultural age. By the year 2010, one-third of
the workforce in the United States will be comprised of knowledge professionals. It is incumbent
upon all organizations to embrace this need for managing knowledge. Just take a look at those
organizations that seem to create value against the competition. You will invariably find a strong
emphasis on knowledge management.

.
9. Explain the common forms of training using examples. How is training used to reward
good performance?
Many methods of training are available- each has certain advantages and disadvantages. Here we
list the different methods of training...you can comment on the pros and cons and make the
examples concrete by imagining how they could be applied in training truck drivers.

1. Technology-Based Learning
Common methods of learning via technology include:
Basic PC-based programs
Interactive multimedia - using a PC-based CD-ROM
Interactive video - using a computer in conjunction with a VCR
Web-based training programs
The forms of training with technology are almost unlimited. A trainer also gets more of the
learner''s involvement than in any other environment and trainees have the benefit of learning at
their own pace.
Example: In the trucking industry one can imagine interactive multimedia training on tractor-
trailers followed by a proficiency test to see how well the employee knows the truck.

2. Simulators
Simulators are used to imitate real work experiences.
Most simulators are very expensive but for certain jobs, like learning to fly a 747, they are
indispensable. Astronauts also train extensively using simulators to imitate the challenges and
micro-gravity experienced on a space mission. The military also uses video games (similar to the
"shoot-em-up" ones your 14-year old plays) to train soldiers.
Example: Truck drivers could use simulators to practice responding to dangerous driving
situations.

3. On-The-Job Training
Jumping right into work from day one can sometimes be the most effective type of training.
Here are a few examples of on-the-job training:
Read the manual - a rather boring, but thorough way of gaining knowledge of about a task.
A combination of observation, explanation and practice.
Trainers go through the job description to explain duties and answer questions.
Use the intranet so trainees can post questions concerning their jobs and experts within the
company can answer them.

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On-the-job training gives employees motivation to start the job. Some reports indicate that
people learn more efficiently if they learn hands-on, rather than listening to an instructor.
However, this method might not be for everyone, as it could be very stressful.
Example: New trucking employees could ride with experienced drivers. They could ask
questions about truck weigh stations, proper highway speeds, picking up hitchhikers, or any
other issues that may arise.

4. Coaching/Mentoring
Coaching/mentoring gives employees a chance to receive training one-on-one from an
experienced professional. This usually takes place after another more formal process has taken
place to expand on what trainees have already learned.
Here are three examples of coaching/mentoring:
Hire professional coaches for managers (see our HR.com article on Understanding Executive
Coaching)
Set up a formal mentoring program between senior and junior managers
Implement less formal coaching/mentoring to encourage the more experienced employees to
coach the less experienced.
Coaching/mentoring gives trainees the chance to ask questions and receive thorough and honest
answers - something they might not receive in a classroom with a group of people.
Example: Again, truck drivers could gain valuable knowledge from more experienced drivers
using this method.

5. Lectures
Lectures usually take place in a classroom-format.
It seems the only advantage to a lecture is the ability to get a huge amount of information to a lot
of people in a short amount of time. It has been said to be the least effective of all training
methods. In many cases, lectures contain no form of interaction from the trainer to the trainee
and can be quite boring. Studies show that people only retain 20 percent of what they are taught
in a lecture.
Example: Truck drivers could receive lectures on issues such as company policies and safety.

6. Group Discussions & Tutorials


These most likely take place in a classroom where a group of people discuss issues.
For example, if an unfamiliar program is to be implemented, a group discussion on the new
program would allow employees to ask questions and provide ideas on how the program would
work best.
A better form of training than lectures, it allows all trainees to discuss issues concerning the new
program. It also enables every attendee to voice different ideas and bounce them off one another.
Example: Truck drivers could have group discussions and tutorials on safety issues they face on
the road. This is a good way to gain feedback and suggestions from other drivers.

7. Role Playing
Role playing allows employees to act out issues that could occur in the workplace. Key skills
often touched upon are negotiating and teamwork.

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A role play could take place between two people simulating an issue that could arise in the
workplace. This could occur with a group of people split into pairs, or whereby two people role
play in front of the classroom.
Role playing can be effective in connecting theory and practice, but may not be popular with
people who dont feel comfortable performing in front of a group of people.
Example: Truck drivers could role play an issue such as a large line-up of trucks is found at the
weighing station and one driver tells another that he might as well go ahead and skip the whole
thing. Or role play a driver who gets pulled over by a police officer and doesnt agree with the
speeding charge.

8. Management Games
Management games simulate real-life issues faced in the workplace. They attract all types of
trainees including active, practical and reflective employees.
Some examples of management games could include:
Computer simulations of business situations that managers play.
Board games that simulate a business situation.
Games surrounding thought and creativity - to help managers find creative ways to solve
problems in the workplace, or to implement innovative ideas.
Example: In a trucking business, managers could create games that teach truckers the impact of
late deliveries, poor customer service or unsafe driving.

9. Outdoor Training
A nice break from regular classroom or computer-based training, the usual purpose of outdoor
training is to develop teamwork skills.
Some examples include:
Wilderness or adventure training - participants live outdoors and engage in activities like
whitewater rafting, sailing, and mountain climbing.
Low-impact programming - equipment can include simple props or a permanently installed "low
ropes" course.
High-impact programming - Could include navigating a 40-foot "high ropes" course, rock
climbing, or rappelling.
Outgoing and active participants may get the most out of this form of training. One risk trainers
might encounter is distraction, or people who dont like outdoor activities.
Example: As truck drivers are often on the road alone, they could participate in a nature-training
course along with depot personnel to build esprit de corps.

10. Films & Videos


Films and videos can be used on their own or in conjunction with other training methods.
To be truly effective, training films and videos should be geared towards a specific objective.
Only if they are produced effectively, will they keep the trainees attention. They are also
effective in stimulating discussion on specific issues after the film or video is finished.
Films and videos are good training tools, but have some of the same disadvantages as a lecture -
i.e., no interaction from the trainees.
A few risks to think about - showing a film or video from an outside source may not touch on
issues directly affecting a specific company. Trainees may find the information very interesting
but irrelevant to their position in the company.
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Some trainers like to show videos as a break from another training method, i.e. as a break from a
lecture instead of a coffee break.
This is not a good idea for two reasons. One: after a long lecture, trainees will usually want a
break from any training material, so a training film wouldnt be too popular. Two: using films
and videos solely for the purpose of a break could get expensive.
Example: Videos for truckers could show the proper way to interact with customers or illustrate
preventive maintenance techniques.

11. Case Studies


Case studies provide trainees with a chance to analyze and discuss real workplace issues. They
develop analytical and problem-solving skills, and provide practical illustrations of principle or
theory. They can also build a strong sense of teamwork as teams struggle together to make sense
of a case.
All types of issues could be covered - i.e. how to handle a new product launch.
Example: Truck drivers could use case studies to learn what issues have been faced in the
trucking industry in the past and what they could do if a similar situation were to occur.

12. Planned Reading


Basically planned reading is pre-stage preparation to more formal methods of training. Some
trainees need to grasp specific issues before heading into the classroom or the team-building
session.
Planned reading will provide employees with a better idea of what the issues are, giving them a
chance to think of any questions beforehand.
Example: Here we may be stretching if we think that truckers are going to read through a lot of
material the training department sends them.

10. What are the different ways of evaluating training effectiveness? (April/ May 2013)

How to measure training effectiveness


Each year globally many millions of dollars are spent on training. It would seem reasonable to
establish just how effective this training has been if only to help justify the budget. Evaluation
techniques are not new, indeed the most influential early work on evaluation was performed in
the USA during the 1940s by Tyler. Probably the most important aspect of Ralph W Tylers work
was the realisation of the importance of objectives in designing an effective school curriculum.
This early methodology can be defined as the scientific/experimental approach.

The model emphasised the importance of knowing the educational standards of the individuals in
the control group before the new education initiative took place and then determining the change
that had taken place by measuring the difference in attainment after the educational intervention
was completed. In other words the aim was to determine the effectiveness of the training by
scientific means on the level of performance of the individual. Although there have been some
critics of this methodology it has proved to be valuable in that organisations have been able to
quantify the relationship between their corporate objectives (often expressed as key performance
indicators (KPIs) today) and the training aims and objectives.

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The main criticism of the scientific/experimental approach is that the methodology is unable to
take into account the unexpected or unintentional learning that can take place within a dynamic
and changing learning environment. Those readers who can remember reading about the original,
and now famous Hawthorne experiments to determine the effects of illumination levels on
production held at the Western Electric plant in Cicero, Illinois in the 1920s and the later
experiments also conducted by the National Research Council showed that human behaviour is
indeed difficult to quantify exactly. Nevertheless the greater attention that was given to training
methodology and in particular the effectiveness of management development during the 1960s
and 1970s has led to much better understanding and the emergence of systems evaluation
methodology.

As we will see this approach can be divided into two main schools; the narrow focused approach
being attributed to Donald L Kirkpatrick in the early 1960s and the somewhat broader model
advocated by P. Warr et al (The Evaluation of Management Training) known as the CIRO model.
The CIRO model looked at context evaluation, input evaluation, reaction evaluation and outcome
evaluation.

Donald L Kirkpatricks "Four steps to measuring training effectiveness

This model uses four separate stages for the evaluation of the effectiveness of a training program.

The four stages are:-


Reaction
Learning
Behaviour
Results
Level 1

The first stage is about the reaction of the trainee to the training. This sort of measurement is
concerned with how the trainees "feel about the course. The usual course feedback sheets are an
example of the Kirkpatrick level 1 evaluation. Most organisations do not do any more than this
type of measurement and analysis. The drawback is that we do not really know if the trainee has
actually learnt anything. What really seems to be being asked of the trainee was how "happy
were you with the course; hence the somewhat derogatory description that is often applied to the
"happy sheets! We will now look at the next level of evaluation concerned with Learning.

Level 2

Things can be improved by using a pre-test and post-test and comparing the results. The
questions need to be objective and closely related to the course objectives (more about that later).
In this way we can determine if the training actually delivered knowledge and this was
understood by the trainees at the time. An organisation that does this can be confident that the
trainee has actually learnt something at that time. Why do I make the point that we have to make
the measurement and consider the learning at a certain time? Well because we do not know if the
learning has had time to be internalised and become "concrete. All too often trainees (and
delegates at conferences for example) will have difficulty remembering what was in the course
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or seminar they attended a few days later let alone months later. There are various techniques that
we can employ to improve the level of recall but basically "if we dont use it we will lose it!

Level 3

This is concerned with "behaviour. By that we mean the measurable change in an individual as
a result of their attendance on the training course. This is, in my opinion, the least we should be
expecting from any training program. After all what is the point of spending money and using
resources if the training does not effect some measurable change in the behaviour of the trainee?

Level 4

Kirkpatrick is now concerned with the training to determine if it has actually been translated into
tangible benefits to the organisation. Quite simply has productivity and or quality been
improved? Have the number of accidents or incidents been reduced? Has plant availability and or
plant utilisation been improved? Has the morale of the workforce changed for the better? These
are metrics which really have an impact on the "bottom line and for that reason feature in the
companies balance sheets and KPIs. We have to ask ourselves is this not the real reason for
training? Training has to make a real difference in performance and effectiveness; this is tied
closely to competence. Training has be proven to deliver results and be cost effective. It might
sound simple but it is not for most organisations. The reason is that most do not have in place
any system for measuring the improvement in competence of the individual; let alone a
systematic approach to identifying the most effective means of assisting the individual to
becoming competent.

UNIT IV
Part A
1. Define total compensation. (April/ May 2013)
The package of quantifiable rewards an employee receives for his or her labors.
2. What are the 3 components of total compensation?
Base compensation. Pay incentives indirect compensation and benefits.
3. Define compensation. (May 2011)
The fixed pay an employee receives on a regular basis, either in the form of a salary or as an
hourly wage.
4. Define pay incentive.
A program designed to reward employees for good performance.
5. Define internal equity. (April/ May 2012)
The perceived fairness of the pay structure within a firm.
6. Define external equity.
The perceived fairness in pay relative to what other employers are paying for the same type of
labor.
7. Define knowledgebased pay.
A pay system in which employees are paid on the basis of the jobs they can do or talents they
have that can be successfully applied to variety of tasks and situations.
8. Define egalitarian pay system.
A pay plan in which most employees are part of the same compensation system.
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9. Define elitist pay system.


A pay plan in which different compensation systems are established for employees or groups at
different organizational levels.
10. Define job evaluation. (April/May 2014)
The process of evaluating the relative value or contribution of different jobs to an organization.
11. Define credibility gap.
Employees often do not believe that pay-for-performance programs are fair or that they truly
reward performance, a phenomenon called the credibility gap.
12. Define psychological contract. (Nov/Dcember 2013)
Is a set of expectations based on prior experience, and it is very resistant to change.
13. Define Motivation. (May 2011)
The willingness to do something and is conditioned by this actions ability to satisfy some
need for the individual.
14. What are the five needs mentioned in Maslows hierarchy of needs.
The needs are: physiological, safety, love, esteem and self actualization.
15. What are the two factors mentioned in Herzbergs motivation hygiene theory? (Dec
2010)
The two factors mentioned in the theory are Motivational factors and hygiene factors.
16. What are the four personality types? (Nov/ December 2012)
The four personality types are dominant, influencing, steady and careful.
17. Who is the developing mentor in an organization?
The senior person in the organization who by his experience and his knowledge going to guide
the juniors in the organization.
18. Who is called as protg?
The junior persons or the protg who is going to get guidance from the senior in the
organizations is called as the protg in the organization.
19. What are the stages in career? (April/ May 2010)
Exploration, Establishment, Mid-career, Late-career, Decline.
20. Define Career. (Nov/ Decemebr 2013)
Career represents a sequence of positions, jobs or occupation that a person has over his or her
working life.

Part B

1. What are the factors considered before fixing the compensation level? (April/ May
2013)
The following factors should be taken into consideration in determining wage and salary
structure of workers:

(i) Labour Unions: The labour unions attempt to work and influence the wages primarily by
regulating or affecting the supply of labour. The unions exert their influence for a higher wage
and allowances through collective bargaining with the representatives of the management.
If they fail in their attempt to raise the wage and other allowances through collective bargaining,
they resort to strike and other methods where by the supply of labour is restricted. This exerts a
kind of influence on the employees to concerned test partially the demands of the labour unions.

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(ii) Personal perception of wage: Whether the wage is adequate and equitable depends not only
upon the amount that is paid but also upon the perceptions and the views of the recipients of the
wage. Even though the wage is above the going wage rate in the community if it is lower than
that of fellow worker deemed inferior, it will be regarded as inequitable in the eyes of the
recipients of the wage. A mans perception of the equity of his wage will undoubtedly affect his
behaviour in joining and continuing in the organisation.

(iii) Cost of living: Another important factor affecting the wage is the cost of living adjustments
of wages. This approach tends to vary money wage depending upon the variations in the cost of
living index following rise or fall in the general price level and consumer price index. It is an
essential ingredient of long term labour contracts unless provision is made to reopen the wage
clause periodically.
There are measurement problems both in ascertaining productivity and cost of living increases.
This problem may lead to lack of understanding and unanimity on the part of the management
and the workers.

(iv) Government legislation: The laws passed and the labour policies formed by the
Government have an important influence on wages and salaries paid by the employees. Wages
and salaries cant be fixed below the level prescribed by the government. The laws on minimum
wages, hours of work, equal pay for equal work, payment of dearness and other allowances,
payment of bonus, etc. have been enacted and enforced to bring about a measure of fairness in
compensating the working class.

(v) Ability to pay: Labour unions have often demanded an increase in wages on the basis that
the firm is prosperous and able to pay. However, the fundamental determinants of the wage rate
for the individual firm emanate for supply and demand. If the firm is marginal and cannot afford
to pay competitive rates, its employees will generally leave it for better paying jobs. However,
this adjustment is neither immediate nor perfect because of problems of labour immobility and
lack of perfect knowledge of alternatives. If the firm is highly successful, there is little need to
pay for more than the competitive rates to obtain personnel.

(vi) Supply and demand: As stated earlier, the wage is a price for the services rendered by a
worker or employee. The firm desires these services, and it must pay a price that will bring forth
the supply, which is controlled by the individual worker or by a group of workers acting together
through their unions. The practical result of the operation of this law of supply and demand is the
creation of going- wage rate.
It is not practicable to draw demand and supply curves for each job in an organisation even
though, theoretically, a separate curve exists for each job. But, in general, if anything works to
decrease the supply of labour such as restriction by a particular labour union, there will be a
tendency to increase the wage. The reverse of each situation is likely to result in a decrease in
employee wage, provided other factors, such is those discussed below, do not intervene.

(vii) Productivity: Increasingly there is a trend towards gearing wage increases to productivity
increases. Productivity is the key factor in the operations of a company. High wages and low
costs are possible only when productivity increases appreciably. The above factors exercise a

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kind of general influence on wage rates. In addition, there are several factors which do affect the
individual difference in wage rates.

The most important factors which affect the individual differences in wage rates are:
(a) Workers capacity and age;
(b) Educational qualifications;

(c) Worker experience;


(d) Hazards involved in work;
(e) Promotion possibilities;
(f) The prevailing wage in the community;
(g) Stability of employment;
(h) Demand for the product; and
(i) Profits or surplus earned by the organisation.

2. Explain compensation plans based on earnings varying proportionately less than


output. (or)
3. Explain compensation plan based on earnings differing at different level of output?
The most common definition of performance, and in many ways the best, is the intended output
of the job. In some situations this can be made an explicitly measurable item, such as the number
of electronic assemblies produced. In many jobs in organizations, however, it is hard either to
define exactly the output desired or to measure that output. A variable pay plan is not well suited
to these unquantifiable circumstances.

The most common variable plan that uses an output measure is piecework. In this plan, a set
reward value is attached to each unit of output; the employee's pay is that value times the number
of units produced. This plan clearly connects performance and reward and allows the employees
to know at all times exactly how much reward they will be receiving. Since the piecework
system emphasizes quantity, quality can be a problem unless it is also built into the determination
of units produced.

Straight piecework can intimidate employees because it places them under considerable pressure
to produce, which they may have difficulty doing consistently. Also, since failure to meet the
standard may cause the employee to earn below the minimum wage, most piecework plans
establish a minimum standard for a set wage and pay a premium for units produced above that
minimum. Employees who regularly do not make the standard should be reviewed to see if they
are properly placed.

Performance-Reward Ratio. Basic to the performance-reward connection is the ratio of reward


to performance. This ratio can take a number of forms. The most common is the straight-
proportional ratio. This is the type used in piecework and standard-hour plans. It provides a one-
for-one proportion between performance and reward. A second possibility is the geared ratio. In
this case the ratio of reward to performance units varies at different levels of production. The
proportional change may be less or more than the proportional change in output.

4. Explain the stages in career development. (April/ May 2014)


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The proper way to analyze and discuss careers is to look at them as made up of stages. We can
identify five career stages that most people will go through during their adult years, regardless of
the type of work they do. These stages are exploration, establishment, mid-career, late career and
decline.

1. Exploration

Many of the critical choices individuals make about their careers are made prior to entering the
workforce on a paid basis. Very early in our lives, our parents and teachers begin to narrow our
alternatives and lead us in certain directions.

The careers of our parents, their aspirations for their children and their financial sources are
crucial factors in determining our perception of what careers are open to us.

The exploration period ends for most of us in our mid-twenties as we make the transition from
college to work. From an organisational standpoint this stage has little relevance since it occurs
prior to employment.

However, this period is not irrelevant because it is a time when a number of expectations about
ones career are developed, many of which are unrealistic. Such expectations may lie dormant for
years and then pop up later to frustrate both the employee and the employer.

2. Establishment

The establishment period begins with the search for work and includes our First job, being
accepted by our peers, learning the job and gaining the first tangible evidence of success or
failure in the real world. It is a time which begins with uncertainties, anxieties and risks.

It is also marked by making mistakes and learning from these mistakes and the gradual
assumption of increased responsibilities. However, the individual in this stage has yet to reach
his peak productivity and rarely gets the job that carries great power or high status.

3. Mid-career

Most people do not face their first severe dilemmas until they reach their mid-career stage. This
is a time when individuals may continue their prior improvements in performance or begin to
deteriorate. At this point in a career, one is expected to have moved beyond apprenticeship to
worker-status.

Those who make a successful transition assume greater responsibilities and get rewards. For
others, it may be a time for reassessment, job changes, adjustment of priorities or the pursuit of
alternative lifestyles.

4. Late career

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For those who continue to grow through the mid- career stage, the late career usually is a
pleasant time when one is allowed the luxury to relax a bit. It is the time when one can enjoy the
respect given to him by younger employees. During the late career, individuals are no longer
learning, they teach others on the basis of the knowledge they have gained.

To those who have stagnated during the previous stage, the late career brings the reality that they
cannot change the world as they had once thought.

It is a time when individuals have decreased work mobility and may be locked into their current
job. One starts looking forward to retirement and the opportunities of doing something different.

5. Decline

The final stage in ones career is difficult for everyone but it is hardest for those who have had
continued successes in the earlier stages. After several decades of continuous achievements and
high levels of performance, the time has come for retirement.

Managers should be more concerned with the match for new employees and those just beginning
their employment careers. Successful placement at this stage should provide significant
advantages to both the organisation and the individual.

Many employees lack proper information about career options. As managers identify career-
paths that successful employees follow within the organisation, they should publish this
information. To provide information to all employees about job openings, managers can use job
posting.

Job posting provides a channel by which the organisation lets employees know what jobs are
available and what requirements they will have to fulfill to achieve the promotions to which they
may aspire.

One of the most logical parts of a career development programme is career counseling. This can
be made part of an individuals annual performance review. The career counseling process
should contain the following elements:

(a) The employees goals, aspirations and expectations with regard to his own career for the next
five or six years;

(b) The managers view of the opportunities available and the degree to which the employees
aspirations are realistic and match with the opportunities available;

(c) Identification of what the employee would have to do in the way of further self-development
to qualify for new opportunities;

(d) New job assignments that would prepare the employee for further career growth.

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Training and educational development activities reduce the possibilities that employees will find
themselves with obsolete skills. When these development activities are properly aligned with an
individuals aspirations and organisational needs, they become an essential element in an
employees career growth.

In addition to encouraging employees to continue their education and training so as to prevent


obsolescence and stimulate career growth, managers should be aware that periodic job changes
can achieve similar ends.

Job changes can take the form of vertical promotions, lateral transfers or assignments organised
around new tasks.

Available evidence suggests that employees who receive challenging job assignments early in
their careers do better on their jobs. The degree of stimulation and challenge in a persons initial
job assignment tends to be significantly related to later career success and retention in the
organisation.

Initial challenges, if they are successfully met, stimulate a person to perform well in later years.
There are definite benefits for managers who correctly fill positions with individuals who have
the ability and interest to satisfy the jobs demands.

5. Explain the mentor-protg relationship? (May 2011)

Mentorship is a personal developmental relationship in which a more experienced or more


knowledgeable person helps to guide a less experienced or less knowledgeable person. The
mentor may be older or younger, but have a certain area of expertise. It is a learning and
development partnership between someone with vast experience and someone who wants to
learn. [1]

The person in receipt of mentorship may be referred to as a protg (male), a protge (female),
an apprentice or, in recent years, a mentee.

"Mentoring" is a process that always involves communication and is relationship based, but its
precise definition is elusive. One definition of the many that have been proposed, is

Mentoring is a process for the informal transmission of knowledge, social capital, and the
psychosocial support perceived by the recipient as relevant to work, career, or professional
development; mentoring entails informal communication, usually face-to-face and during a
sustained period of time, between a person who is perceived to have greater relevant knowledge,
wisdom, or experience (the mentor) and a person who is perceived to have less

6. Define career management. Discuss the role of management and employees for
effective career development in an organization. (Dec 2010)

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Career Management is the combination of structured planning and the


active management choice of one's own professional career. The outcome of successful career
management should include personal fulfillment, work/life balance, goal achievement and
financial security.

One very important responsibility of a supervisor or manager is to help your staff with their
professional and career development. You can do this by providing opportunities for them to
develop the knowledge, skills, abilities, tools, resources, and opportunities to be successful in
their job and career. Examples include providing on-the-job training and coaching, giving them
performance goals and feedback, asking about and supporting their development goals, and
helping them write an individual development plan (IDP) .

Although the primary responsibility for an individuals development rests with the individual, the
supervisor/manager has an important role in:

Encouraging
Supporting
Removing obstacles
Providing resources for their development
In the IDP process, the individual staff member should initiate the process and do most of the
writing of the plan themselves. As a supervisor or manager, you should:

Meet with them to discuss their plan


Provide feedback on their goals
Provide suggestions for development activities
Help them set realistic timeframes
Help them troubleshoot potential obstacles
Schedule periodic (quarterly or semi-annually) meetings to monitor their progress
Make revisions to their plan as appropriate, and acknowledge results
Supporting the growth and development of your staff is vitally important in helping them be as
productive and successful as possible in their current role, encouraging motivation and retention,
and setting them up for career opportunities. It is your job to help your staff be the best they can
be.

7. How do you design compensation policy?

Step 1: Establish a pay philosophy


The first step in designing an employee compensation plan is deciding what your pay philosophy
will be. In this step you should ask yourself questions such as:

Do I want to pay more or less than those companies that compete with me for
talent? Keep in mind here that just because someone does not compete with you
in the marketplace, does not mean that they do not compete with you for talent.
Do I want to give a lot of other benefits besides pay, or less benefits so I can pay
more.
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How do I want to incentivize performance?


Will owners adhere to the same compensation plan as employees?
Throughout each stage of developing your total compensation plan; you should test yourself by
asking if the plan meets the needs of all three of the primary stakeholders in the company which
are:

Employees
Clients
Owners
When thinking about the fairness of their compensation, employees are going to focus their
attention in two areas. The first is how much they are being paid in relation to similar positions
at other firms. The second is how much they are being paid relative to other positions with in
your firm. With this in mind the next step is:

Step 2: Find out how much the competition is paying.


If you have not done so already, you will need to put together a job description for each of the
positions in your company so you can compare what you are paying with the competition. When
putting together your job description think about:

What is the scope and major responsibilities of the job.


How complex is it and what is its impact on the company.
What are the knowledge, skills and competencies required to perform the job.
What are the education levels and experience required
Once you have an outline of the duties and responsibility level of each position then you can go
out and find out what others that compete for the same talent are paying. There are three primary
ways to do this:

Talk to people within your industry and ask them what they are paying. Make sure you describe
the duties and responsibilities of the position so you can compare apples to apples.
Use indeed.coms salary calculator and the advanced search feature at Careerbuilder.com.
Look for salary surveys online by searching Your Industry + Salary Survey on Google.
Once you have your data set, write down a range compensation levels that are being paid for
those positions.

Step 3: Set the salary level or per hour rate


As we discussed in step 1, competitive compensation is necessary for an employee to not be
unhappy, but it is not a motivator for higher performance. With this in mind we generally
recommend paying salaries that are in line with the competition.

Exceptions to this rule would be if you feel a role is particularly valuable to your firm and
warrants paying above the competition, or that it is not that important and therefore you can pay
less.

You must also keep in mind how this salary will be viewed internally. It needs to be fair in the
context of the responsibilities and experience required to do this job versus others.
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Step 4: Set your pay for performance components.


Much of the management literature out there will advise adding a pay for performance
component to all types of jobs. The thinking goes that paying a bonus when particular goal or
set of goals are reached is a great way to align workers interests with that of the companies.

I would caution you to be careful with this approach however, as research has shown over and
over again that performance based pay often has the opposite of its intended effect. This has
shown to be especially true with knowledge workers, who are not performing a pre-defined set
of tasks, and where creativity is a large part of their jobs. For these types of workers providing
them with autonomy, mastery (learning opportunities), and purpose have proved much superior
motivators to performance based pay.

8. How do you build up an effective career plan for management graduates in a


FMCG organization? Explain with examples.

FMCG CAREER PATHS


By now you should be getting the idea of just what's on offer in FMCG: fast-paced, challenging
and rewarding careers. The speed that you can move from entry level to senior executive in this
sector is second to none.

Below we've included a brief overview of what you can expect at each level. But you don't just
have to take our word for it. Have a read through what people at RB, one of the top FMCG
companies, have to say too.

Entry Level Professional


This stage includes graduates. Expect to take on at least two roles at this level as you gain
experience across your function.

Typical roles include: finance analyst, sales representative, assistant brand manager,
manufacturing supervisor, HR advisor, system analyst, R&D assistant.

Manager
Expect to gain more senior level experience in at least two roles covering different areas. You'll
also begin to build up strong people management experience.

Typical roles include: key account manager, brand manager, finance accountant, purchasing
manager, senior HR advisor, senior business analyst, R&D associate.

Middle Manager
At this level you'll also need experience across roles. Cross-functional and international
experience can be important here.

Typical roles include: trade marketing head, senior category manager, finance manager, senior
manufacturing manager, HR manager, IT manager, business integration leader.

Director
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You'll need an impressive regional and functional track record, as well as significant people
management experience. International mobility is usually essential at this level.

Typical roles include: sales director, global brand marketing manager, finance controller, plant
manager, regional HR director, regional IS director, product director.

Senior Director
You'll now have a wealth of experience and knowledge of the business. At this level you'll be
expected to make an impact on a larger stage and will almost certainly have experience of at least
two markets in your career.

Typical roles include: global sales director, general manager (country), global category director,
regional finance director, supply director, specialist global HR director, area IS director, category
group director R&D.

Senior Executive
At this senior level the career path is fluid and reflects the level of business impact you could
have anywhere in the world.

9. What are the components of a compensation plan? What are the new trends in
compensation management?
What are the components of a compensation system?
Compensation will be perceived by employees as fair if based on systematic components.
Various compensation systems have developed to determine the value of positions. These
systems utilize many similar components including job descriptions, salary ranges/structures,
and written procedures.
The components of a compensation system include

Job Descriptions A critical component of both compensation and selection systems, job
descriptions define in writing the responsibilities, requirements, functions, duties,
location, environment, conditions, and other aspects of jobs. Descriptions may be
developed for jobs individually or for entire job families.

Job Analysis The process of analyzing jobs from which job descriptions are developed.
Job analysis techniques include the use of interviews, questionnaires, and observation.

Job Evaluation A system for comparing jobs for the purpose of determining appropriate
compensation levels for individual jobs or job elements. There are four main
techniques: Ranking, Classification, Factor Comparison, and Point Method.

Pay Structures Useful for standardizing compensation practices. Most pay structures
include several grades with each grade containing a minimum salary/wage and either step
increments or grade range. Step increments are common with union positions where the
pay for each job is pre-determined through collective bargaining.

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Salary Surveys Collections of salary and market data. May include average salaries,
inflation indicators, cost of living indicators, salary budget averages. Companies may
purchase results of surveys conducted by survey vendors or may conduct their own salary
surveys. When purchasing the results of salary surveys conducted by other vendors, note
that surveys may be conducted within a specific industry or across industries as well as
within one geographical region or across different geographical regions. Know which
industry or geographic location the salary results pertain to before comparing the results
to your company.

Policies and Regulations

Compensation will be perceived as fair if it is comprised of a system of components


developed to maintain internal and external equity.

Current Trends

It is interesting to track the changessome quite radicalin the Indian compensation scene. The
following are true of most organizations today:

Compensation is now viewed as the total cost to company, (CTC) rather than an
employees net pay alone. As the environment gets competitive, such an approach helps
organizations take a holistic view of what could be the costs and the operating margins.
Variable pay based on individual performance is the norm, and a larger percentage of the
Indian salary is based on performance.
Organization performance also is factored in while structuring salary increases.
Some organizations also have implemented highly evolved systems, such as the
economic value added (EVA) framework, ensuring a performance-oriented culture
throughout the organization applicable to all employees.
Basic, guaranteed pay has seen a gradual reduction.
Benchmarking against organizations, both nationally and internationally, has become
common.
Employee stock options (ESOPs) that were, a few years back, considered as valuable
compensation components have ceased to be so given the erratic nature of the stock
market and the lock-in periods.
Non-taxable benefits, which increased the net take-home of an employee, are now
subject to the Fringe Benefits Tax (FBT), and so organizations are forced to take second
looks at these components.
Retirement benefits are left to what is mandated by the government. Organizations that
were contributing to a superannuation fund for the employee now have to pay the FBT.
Pension benefits and other similar social security benefits are not on the radar screen of
compensation experts in India today, but this component could be under significant
discussion and speculation in the coming years.

10. Explain the motivation theories in detail. (April/ May 2013) (Nov/ December 2013)

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A Classification of Motivation Theories (Content vs. Process)

Motivation theories can be classified broadly into two different perspectives: Content and
Process theories. Content Theories deal with what motivates people and it is concerned with
individual needs and goals. Maslow, Alderfer, Herzberg and McCelland studied motivation from
a content perspective. Process Theories deal with the process of motivation and is concerned
with how motivation occurs. Vroom, Porter & Lawler, Adams and Locke studied motivation
from a process perspective.

1. Content Theories about Motivation

Abraham Maslows Hierarchy of Needs

When motivation theory is being considered the first theory that is being recalled is Maslows
hierarchy of needs which he has introduced in his 1943 article named as A Theory of Human
Motivation. According to this theory, individual strives to seek a higher need when lower needs
are fulfilled. Once a lower-level need is satisfied, it no longer serves as a source of motivation.
Needs are motivators only when they are unsatisfied.

In the first level, physiological needs exist which include the most basic needs for
humans to survive, such as air, water and food.
In the second level, safety needs exist which include personal security, health, well-being
and safety against accidents remain.
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In the third level, belonging needs exit. This is where people need to feel a sense of
belonging and acceptance. It is about relationships, families and friendship. Organizations
fulfill this need for people.
In the fourth level, self-esteem needs remain. This is where people looks to be respected
and to have self-respect. Achievement needs, respect of others are in this level.
In the top-level, self-actualization needs exist. This level of need pertains to realising the
persons full potential.

Alderfers ERG Theory

In 1969, Clayton P. Alderfer, simplified Maslows theory by categorizing hierarchy of needs into
three categories:

Physiological and Safety needs are merged in Existence Needs,


Belonging needs is named asRelatedness Needs,
Self-esteem and Self-actualization needs are merged in Growth Needs

Herzbergs Two Factor Theory

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Frederick Herzberg, introduced his Two Factor Theory in 1959. He suggested that there are two
kinds of factors affect motivation, and they do it in different ways:

1) Hygiene factors: A series of hygiene factors create dissatisfaction if individuals perceive


them as inadequate or inequitable, yet individuals will not be significantly motivated if these
factors are viewed as adequate or good. Hygiene factors are extrinsic and include factors such as
salary or remuneration, job security and working conditions.

2) Motivators: They are intrinsic factors such as sense of achievement, recognition,


responsibility, and personal growth.

The hygiene factors determine dissatisfaction, and motivators determine satisfaction. Herzberg
theory conforms with satisfaction theories which assert that a satisfied employee tends to work
in the same organization but this satisfaction does not always result in better performance. In
other words, satisfaction does not correlate with productivity.

McClellands Achievement Need Theory

in his 1961 book named as The Achieving Society, David McClelland identified three basic
needs that people develop and acquire from their life experiences .

Needs for achievement: The person who have a high need for achievement seeks
achievement and tries to attain challenging goals. There is a strong need for feedback as to

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achievement and progress, and a need for a sense of accomplishment. The person who have a
high achievement need likes to take personal responsibility.
Needs for affiliation: The person who have a high need for affiliation needs harmonious
relationships with people and needs to be accepted by other people. (People-oriented rather
than task-oriented).
Needs for power: The person who have a need for power wants to direct and command
other people. Most managers have a high need for power.

Although these categories of needs are not exlusive, generally individuals develop a dominant
bias or emphasis towards one of the three needs. Entrepreneurs usually have high degree of
achivement needs.

Incentive Theory

Incentive theory suggests that employee will increase her/his effort to obtain a desired reward.
This is based on the general principle of reinforcement. The desired outcome is usually money.
This theory is coherent with the early economic theories where man is supposed to be rational
and forecasts are based on the principle of economic man.

2. Process Theories about Motivation

Expectancy Theory

Expectancy Theory argues that humans act according to their conscious expectations that a
particular behavior will lead to specific desirable goals.

Victor H. Vroom, developed the expectancy theory in 1964, producing a systematic explanatory
theory of workplace motivation. Theory asserts that the motivation to behave in a particular way
is determined by an individuals expectation that behaviour will lead to a particular outcome,
multiplied by the preference or valence that person has for that outcome.

Three components of Expectancy theory are:

1. Expectancy: E -> P. The belief of the person that her/his effort (E) will result in
attainment of desired performance (P) goals.
2. Instrumentality: P -> R. The belief of the person that she/he will receive a reward (R) if
the performance (P) expectation is met.
3. Valence: The value of the reward according to the person. (e.g. Is the reward attractive to
the person?)

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The equation suggests that human behaviour is directed by subjective probability.

Goal Theory

Edwin Locke proposed Goal Theory in 1968, which proposes that motivation and performance
will be high if individuals are set specific goals which are challenging, but accepted, and
where feedback is given on performance.

The two most important findings of this theory are:

1. Setting specific goals (e.g. I want to earn a million before I am 30) generates higher
levels of performance than setting general goals (e.g. I want to earn a lot of money).
2. The goals that are hard to achieve are linearly and positively connected to
performance. The harder the goal, the more a person will work to reach it.

Adams Equity Theory

Developed by John Stacey Adams in 1963, Equity Theory suggests that if the individual
perceives that the rewards received are equitable, that is, fair or just in comparison with those
received by others in similar positions in or outside the organization, then the individual feels
satisfied. Adams asserted that employees seek to maintain equity between the inputs that they
bring to a job and the outcomes that they receive from it against the perceived inputs and
outcomes of others.

Unit V
PART A
1. Define MBO.
MBO- Management by Objectives. It is a process whereby the superior and subordinate jointly
identify the targets to be attained by the subordinate against which the performance of the
subordinate will be assessed and compared for giving rewards.
2. Define promotion.
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It covers a change and calls for greater responsibilities and usually involves higher pay and
better terms and conditions of services.
3. Define Demotion. (Nov/ December 2013)
It of an individual to a job of a lower rank and pay usually involving lower level of difficulty
and responsibility.
4. Define transfer and what are the concepts behind transfer?
A lateral shift causing movement of individuals from one position to another usually without
involving any marked change in duties responsibilities, skills needed or compensation. Human
resources concept behind transfer is Not to sack or lose an employee, Every human being is an
asset to the organization, Loosing an employee by dismissing will spoil the image of the firm,
Transfer will motivate the employee
5. Define separation. (April/ May 2012)
Cessations of service of agreement with the organization for one or other reason like
resignation, discharge and dismissal, suspension and retrenchment and lay-off.
6. What are the different types of promotion? (Nov/ December 2012)
Multiple promotions, up or out promotions, dry promotions are the different types of
promotions.
7. What are the types of control systems based on managerial level and timing?
The major control systems by managerial level and timing are financial control, budgetary
control, quality control and inventory control.
8. Define responsibility centre.
A responsibility centre is a subunit headed by a manager who is responsible for achieving one
or more goals.
9. Define discretionary expense centre.
A responsibility center whose budgetary performance is based on achieving is goals by
operating within predetermined expense constraints set through managerial judgment or
discretion.
10. Define quality. (April/ May 2014)
The totality of features and characteristics of a product or service that bear on its ability to
satisfy stated or implied needs.
11. What are the eight dimensions of quality on strategic point of view?
Performance, features, reliability, conformance, durability, servicabilty, asthetic and
perceived quality are the eight dimensions of quality on strategic point of view.
12. Define TQM. (April/ May 2013)
TQM Total Quality Management. A quality control approach that emphasizes organization
wide commitment, integration of quality improvement efforts with organizational goals and
inclusion of quality as a factor in performance appraisals.
13. Define Benchmarking. (Nov/ December 2010)
Benchmarking is the process of identifying the best practices and approaches productivity in
specific areas within ones own company with the productivity of other organizations both within
and outside the industry.
14. What are the levels of control?
The different levels of control are operational control, tactic control and strategic control.
15. Define performance appraisal.

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Performance appraisal is the process of appraising or evaluating the performance of an


employee by different methods so that an organization how he is working in it so that he could
achieve the organizational goals and objectives.
16. What are the two different methods of performance appraisal?
The two different methods of performance appraisal are new or modern methods and old
methods. They are straight ranking method, man-to man comparison methods, grading methods,
graphic rating scale, forced choice methods, forced choice distribution methods. The modern
methods are assessment centers, MBO and human asset accounting methods.
17. What are the old methods of performance appraisal? (May 2011)
They are straight ranking method, man-to man comparison methods, grading methods,
graphic rating scale, forced choice methods, forced choice distribution methods .
18. What are the modern methods of performance appraisal? (May 2011)
The modern methods are assessment centers, MBO and human asset accounting methods.
19. What is the purpose of giving feedback to the employees?
Through feedback, the employee will be informed about his performance, so that he will be
correcting his behavioral and performance wise mistakes and also if he has performed well he
will also be motivated by the feedback from the top level management.
20. What is known as feed forward control? (April/ May 2010)
Whenever the control is maintained in the inputs of any process then such types of control is
called as feed forward control as the inputs are feed forwarded to all the process.
21. What are the causes or sources of grievances?
Concerning wages, Concerning supervision, Concerning individual advancement, General
working conditions, Collective bargaining., Promotions, Amenities, Continuity of service,
Compensation, Disciplinary action, Fines, increments, Leave and medical benefits, Nature of the
job, Safety appliances, Transfer, Victimization and Conditions of work.

PART B
1. Explain about 360 degree appraisal system? (April/May 2013)

The 360 evaluation feedback method was first used in the 1940s. Analogous to the multiple
points on a compass, the 360 method provides each employee the opportunity to receive
performance feedback from his or her supervisor, peers, staff members, co-workers and
customers.
360-degree feedback or multi-source feedback is an appraisal or performance assessment tool
that incorporates feedback from all who observe and are affected by the performance of a
candidate.

FOR WHICH CATEGORY OF EMPLOYEES IS THIS TOOL USED?


Usually, this tool is used for employees at middle and senior level. The complexity of their roles
enables the organisation to generate sufficient data from all stakeholders for a meaningful
assessment.

WHICH ORGANISATIONS USE THIS TO ASSESS EMPLOYEE PERFORMANCE?


Most organisations that focus on employee development use the 360-degree tool to assess
performance and potential of staff and enable the employees to map their career path based on

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the feedback. Organisations take 360-degree feedback about an employee before taking a major
decision about the professional's career.

The results from 360-degree feedback are often used by the person receiving the feedback to
plan training and development. Results are also used by some organizations in making
administrative decisions, such as pay or promotion. When this is the case, the 360 assessment is
for evaluation purposes, and is sometimes called a "360-degree review."

360 degree feedback is the most comprehensive appraisal where the feedback about the
employees performance comes from all the sources that come in contact with the employee on
his job. this method is being used in the (MARUTHI SUZUKI Motors and HCL)

WHO ARE THE STAKEHOLDERS IN DOING 360-DEGREE ASSESSMENT?


360 degree respondents for an employee can be his/her peers, managers (i.e. superior),
subordinates, team members, customers, suppliers/ vendors - anyone who comes into contact
with the employee and can provide valuable insights and information or feedback regarding the
on-the-job performance of the employee.360 degree appraisal has four integral
components:

1. Self appraisal

2. Superiors appraisal

3. Subordinates appraisal

4. Peer appraisal.

Self-appraisal gives a chance to the employee to look at his/her strengths and weaknesses, his
achievements, and judge his own performance. Superiors appraisal forms the traditional part of
the 360 degree appraisal where the employees responsibilities and actual performance is rated
by the superior.

Subordinates appraisal gives a chance to judge the employee on the parameters like
communication and motivating abilities, superiors ability to delegate the work, leadership
qualities etc. Also known as internal customers, the correct feedback given by peers can help to
find employees abilities to work in a team, co-operation and sensitivity towards others.

Self-assessment is an indispensable part of 360 degree appraisals and therefore 360 degree
Performance appraisal have h

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High employee involvement and also have the strongest impact on behavior and performance. It
provides a "360-degree review" of the employees performance and is considered to be one of the
most credible performance appraisal methods.

360 degree appraisal is also a powerful developmental tool because when conducted at regular
intervals (say yearly) it helps to keep a track of the changes others perceptions about the
employees. A 360 degree appraisal is generally found more suitable for the managers as it helps
to assess their leadership and managing styles. This technique is being effectively used across the
globe for performance appraisals. Some of the organizations following it are Wipro, Infosys, and
Reliance Industries etc.

Advantages of 360 degree appraisal

Offer a more comprehensive view towards the performance of employees.

Improve credibility of performance appraisal.

Such colleagues feedback will help strengthen self-development.

Increases responsibilities of employees to their customers.

The mix of ideas can give a more accurate assessment.

Opinions gathered from lots of staff are sure to be more persuasive.

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Not only manager should make assessments on its staff performance but other colleagues
should do, too.

People who undervalue themselves are often motivated by feedback from others.

If more staff takes part in the process of performance appraisal, the organizational culture
of the company will become more honest.

Disadvantages of 360 degree appraisal

Taking a lot of time, and being complex in administration

Extension of exchange feedback can cause troubles and tensions to several staff.

There is requirement for training and important effort in order to achieve efficient
working.

It will be very hard to figure out the results.

Feedback can be useless if it is not carefully and smoothly dealt.

Can impose an environment of suspicion if the information is not openly and honestly
managed.

Who should conduct 360 degree performance appraisal?

Subordinates.

Peers.

Managers (i.e. superior).

Team members.

Customers.

Suppliers/ vendors.

Anyone who comes into contact with the employee and can provide valuable insights and
information.

2. Explain the grievance handling procedure? (April/May 2014)

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Grievance may be any genuine or imaginary feeling of dissatisfaction or injustice which an


employee experiences about his job and its nature, about the management policies and
procedures. It must be expressed by the employee and brought to the notice of the management
and the organization. Grievances take the form of collective disputes when they are not resolved.

Also they will then lower the morale and efficiency of the employees. Unattended grievances
result in frustration, dissatisfaction, low productivity, lack of interest in work, absenteeism, etc.
In short, grievance arises when employees expectations are not fulfilled from the organization as
a result of which a feeling of discontentment and dissatisfaction arises. This dissatisfaction must
crop up from employment issues and not from personal issues.

Grievance may result from the following factors-

a. Improper working conditions such as strict production standards, unsafe workplace, bad
relation with managers, etc.

b. Irrational management policies such as overtime, transfers, demotions, inappropriate


salary structure, etc.

c. Violation of organizational rules and practices

The manager should immediately identify all grievances and must take appropriate steps to
eliminate the causes of such grievances so that the employees remain loyal and committed to
their work. Effective grievance management is an essential part of personnel management. The
managers should adopt the following approach to manage grievance effectively-

1. Quick action- As soon as the grievance arises, it should be identified and resolved.
Training must be given to the managers to effectively and timely manage a grievance.
This will lower the detrimental effects of grievance on the employees and their
performance.

2. Acknowledging grievance- The manager must acknowledge the grievance put forward
by the employee as manifestation of true and real feelings of the employees.
Acknowledgement by the manager implies that the manager is eager to look into the
complaint impartially and without any bias. This will create a conducive work
environment with instances of grievance reduced.

3. Gathering facts- The managers should gather appropriate and sufficient facts explaining
the grievances nature. A record of such facts must be maintained so that these can be
used in later stage of grievance redressal.

4. Examining the causes of grievance- The actual cause of grievance should be identified.
Accordingly remedial actions should be taken to prevent repetition of the grievance.

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5. Decisioning- After identifying the causes of grievance, alternative course of actions


should be thought of to manage the grievance. The effect of each course of action on the
existing and future management policies and procedure should be analyzed and
accordingly decision should be taken by the manager.

6. Execution and review- The manager should execute the decision quickly, ignoring the
fact, that it may or may not hurt the employees concerned. After implementing the
decision, a follow-up must be there to ensure that the grievance has been resolved
completely and adequately.

An effective grievance procedure ensures an amiable work environment because it redresses the
grievance to mutual satisfaction of both the employees and the managers. It also helps the
management to frame policies and procedures acceptable to the employees. It becomes an
effective medium for the employees to express t feelings, discontent and dissatisfaction openly
and formally.

3. Explain performance appraisal and its benefits on employer and employee perspective.

Performance Appraisal is the systematic evaluation of the performance of employees and to


understand the abilities of a person for further growth and development. Performance appraisal is
generally done in systematic ways which are as follows:

1. The supervisors measure the pay of employees and compare it with targets and plans.

2. The supervisor analyses the factors behind work performances of employees.

3. The employers are in position to guide the employees for a better performance.

Objectives of Performance Appraisal

Performance Appraisal can be done with following objectives in mind:

1. To maintain records in order to determine compensation packages, wage structure,


salaries raises, etc.

2. To identify the strengths and weaknesses of employees to place right men on right job.

3. To maintain and assess the potential present in a person for further growth and
development.

4. To provide a feedback to employees regarding their performance and related status.

5. To provide a feedback to employees regarding their performance and related status.


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6. It serves as a basis for influencing working habits of the employees.

7. To review and retain the promotional and other training programmes.

Advantages of Performance Appraisal

It is said that performance appraisal is an investment for the company which can be justified by
following advantages:

1. Promotion: Performance Appraisal helps the supervisors to chalk out the promotion
programmes for efficient employees. In this regards, inefficient workers can be dismissed
or demoted in case.

2. Compensation: Performance Appraisal helps in chalking out compensation packages for


employees. Merit rating is possible through performance appraisal. Performance
Appraisal tries to give worth to a performance. Compensation packages which includes
bonus, high salary rates, extra benefits, allowances and pre-requisites are dependent on
performance appraisal. The criteria should be merit rather than seniority.

3. Employees Development: The systematic procedure of performance appraisal helps the


supervisors to frame training policies and programmes. It helps to analyse strengths and
weaknesses of employees so that new jobs can be designed for efficient employees. It
also helps in framing future development programmes.

4. Selection Validation: Performance Appraisal helps the supervisors to understand the


validity and importance of the selection procedure. The supervisors come to know the
validity and thereby the strengths and weaknesses of selection procedure. Future changes
in selection methods can be made in this regard.

5. Communication: For an organization, effective communication between employees and


employers is very important. Through performance appraisal, communication can be
sought for in the following ways:

a. Through performance appraisal, the employers can understand and accept skills of
subordinates.

b. The subordinates can also understand and create a trust and confidence in
superiors.

c. It also helps in maintaining cordial and congenial labour management


relationship.

d. It develops the spirit of work and boosts the morale of employees.

All the above factors ensure effective communication.

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6. Motivation: Performance appraisal serves as a motivation tool. Through evaluating


performance of employees, a persons efficiency can be determined if the targets are
achieved. This very well motivates a person for better job and helps him to improve his
performance in the future.

Benefits of performance appraisal to organization


Improving Communication

All too often, employees and managers don't get along and can't understand why. Problems that
stem from a lack of communication can sometimes be resolved with a performance appraisal. If
the appraisal is used as an opportunity to describe the criteria on which performance is judged --
using meaningful and relevant examples -- then the employee will walk away from the meeting
with a better understanding of how to best perform his job. For example, "John, when I say you
need to be more customer-focused, what I really want is to see you greet the customers with a
smile when they enter the store, and ask how you can help."

Providing a Career Path

The performance appraisal is the perfect opportunity to address long-term goals that may not be
on the everyday to-do list. Not only does this provide the employee with an opportunity to be of
greater use to an organization, the employee feels pleased and valued. Lighting the way toward a
successful career path inspires loyalty and stability and can improve the bottom line, especially
when the employee's first concern is the health of the business, and subsequently, her career.

Encouraging Good Work and Improvement

Celebrating a job well-done is the easy part of the performance appraisal. Noting areas of
improvement is not so easy. Nevertheless, no one is perfect, and the performance appraisal is an
ideal time to diplomatically highlight areas that need improvement. Even the most valuable
employee could benefit from additional training, while those who are on the cusp of dismissal
need the heads-up. Be specific by providing examples and clearly explain what needs to occur to
turn things around. Showing an employee that you care enough about them by taking the time to
work with them may make even the most hardened employee feel better.

Improving Decision-Making Ability

When a company has detailed information on employee performance, business decisions become
easier. Filling open positions with existing staff strengthens the organization and promotes
loyalty. Knowing which employees display what strengths improves the speed with which
projects can be assigned. Appraisals also provide a framework when making decisions about
compensation -- and layoffs. If the organization becomes the unfortunate party to a lawsuit, the
performance appraisal can refute or support claims. As a result, the effective use of performance
appraisals helps an organization operate efficiently and with focus.

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Benefits of performance appraisal to employees

Targeting Needs

Performance appraisals can target a specific area of weakness that needs evaluation and
remediation. It can also serve as a valuable tool for establishing goals that will lead to
promotions and career advancement. Using a performance appraisal to uncover training needs
allows the company to focus efforts on narrowly defined areas.

Charting Progress

Performance appraisals can be used to chart progress. Comparing performance appraisals from
one benchmark period to another will provide both the company and the employee with
measurable marks of improvement, lack of improvement or regression in job performance areas.
These data are valuable for human resources. Salary increases, demotions, promotions and
terminations are all elements that can be tied to the progress reflected in performance appraisal
data.

Building Relationships

Performance appraisals give the employer and employee the opportunity to sit down and discuss
performance. In busy companies, where everyone is taking care of business, periodic meetings
between supervisor and employee allow them to form or strengthen a relationship. Developing
this rapport opens a line of communication for the employee to use in making future suggestions
for the company or applying for promotions.

Motivating Employees

Performance appraisals often serve as motivational tools for employees. The company may offer
a bonus or other perk to employees who are able to improve their performance appraisals from
one period to the next. It is important to offer improvement opportunities, such as training
seminars, mentorships or classes to employees desiring to improve their performance appraisals.

4. Describe various appraisal formats and draw a sample of an appraisal form of a


company.

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5. Explain in detail the effective performance feedback. (Nov/December 2011)

Feedback is Critical to Improving Performance

"You're cold! Now you're getting warmer! You're HOT!" Even children playing the popular "Hot
or Cold" game know that to perform well (find the hidden object) people need to be told how
they're doing. Without feedback, you're walking blind. At best, you'll accidentally reach your
goal. At worst, you'll wander aimlessly through the dark, never reaching your destination.

Effective and timely feedback is a critical component of a successful performance management


program and should be used in conjunction with setting performance goals. If effective feedback
is given to employees on their progress towards their goals, employee performance will improve.
People need to know in a timely manner how they're doing, what's working, and what's not.

Feedback can come from many different sources: managers and supervisors, measurement
systems, peers, and customers just to name a few. However feedback occurs, certain elements are
needed to ensure its effectiveness.

Specificity

Feedback works best when it relates to a specific goal. Establishing employee performance
expectations and goals before work begins is the key to providing tangible, objective, and
powerful feedback. Telling employees that they are doing well because they exceeded their goal
by 10% is more effective than simply saying "you're doing a good job."

Timeliness

Employees should receive information about how they're doing as timely as possible. If
improvement needs to be made in their performance, the sooner they find out about it the sooner
they can correct the problem. If employees have reached or exceeded a goal, the sooner they
receive positive feedback, the more rewarding it is to them.

Manner

Feedback should be given in a manner that will best help improve performance. Since people
respond better to information presented in a positive way, feedback should be expressed in a
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positive manner. This is not to say that information should be sugar-coated. It must be accurate,
factual, and complete. When presented, however, feedback is more effective when it reinforces
what the employee did right and then identifies what needs to be done in the future. Constant
criticism eventually will fall upon deaf ears.

Some kinds of feedback occur naturally while other kinds must be carefully planned and well-
managed. Naturally-occurring feedback can be classified into two categories. The first type is
self-evident feedback-information that employees can see for themselves as they do their work.
For instance, a team of materials handlers who are given the assignment of moving ten stacks of
supplies from one side of the warehouse to the other by the end of the day will know that if only
one of ten stacks is moved by noon, the assignment will not be completed on time. This
information is self-evident and is obtained by the employees making their own comparisons
against a specific goal.

Also falling into the first category of automatic feedback is feedback gained by having a broader
scope of work. The broader the scope of work that an employee has, the better the employee can
determine the quality of the finished product. For example, a writer/editor assigned to write a
portion of an article may have been satisfied with the section he wrote. But if he'd been
responsible for the entire article, he would have seen that his section had no relation to the rest of
the article and had to be rewritten.

The second category of feedback is carefully planned feedback that is designed to be given often
and automatically through a measurement system. Feedback can be designed into a work process
or a measurement system so that it is received automatically by the employee. For example,
many work processes have been designed to provide performance measures daily, such as a
production or printing process, i.e. so many copies printed per day as determined by machine
count. Also, total quality and reengineering programs use extensive work process measurement
methods. Employees can measure for themselves how they and their team are doing.

If effective feedback is designed into a performance management program, individual and team
performance will improve, which will make your organization more effective. With effective
feedback processes, employees won't be working blind and, hopefully, will reach their
destinations successfully.

6. Briefly explain voluntary and involuntary separation?

Voluntary separation

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1. Employees are expected to give an advance notice of at least two weeks when separating
from university employment, including retirement.

a. An employee may be required to take accrued vacation time during the notice
period.

2. See the Separation Pay policy, for a description of pay benefits an employee receives.

B. Involuntary separation (termination)

1. Prior to making a decision about terminating an employee for just cause, the
administrative authority considering the action will apply the steps contained in the
Procedure section of the Corrective Action policy.

2. Final written notices of termination must be cleared with the campus Human Resources
office before distribution to the employee.

3. An employee may be required to take accrued time off, compensatory time off, or time
off without pay when the employee is provided notice of involuntary separation from the
university or when the employee is removed from the workplace pending termination.

4. See the Separation Pay policy, for a description of pay benefits an employee receives.

C. Involuntary separations for non-disciplinary reasons

1. Employees may be separated from employment for non-disciplinary reasons, including


but not limited to:

a. can no longer meet the qualifications for performing the essential functions of the
position and not an ADA covered situation.

b. no reasonable accommodation has been found for an ADA covered situation; or

c. loss of position under the Reduction In Force policy.

d. other circumstances not covered in paragraph B. above.

2. Final written notices of termination must be cleared with the campus human resources
office before distribution to the employee.

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3. An employee involuntarily separated from the university for non-disciplinary reasons,


such as a reduction in force or for medical reasons, may be required to use accrued time
off, compensatory time off, or time off without pay during the notification period if:

a Such action is necessary to address a legitimate job related work performance or


behavior issue; and

b is approved by the campus human resource office.

2 Employees may be re-assigned during this notice period.

3 See Separation Pay, for a description of pay benefits an employee receives.

7. What do you mean by transfer? Explain the objectives and the type of transfers.

Transfer refers to the shifting of employees form one job to another within the same
organization where salary, responsibilities and category of the new job and the previous job are
almost same. Transfer of an employee can be done in other department of the same plant or
office or to the same department of plant or office located in other region/city.

Reason / Objectives for Transfer:


Transfer can be done on the request of employee due to personal reason like family
problem or health problem.
Due to HR policy which states that one employee can work in department or place for
specific time period
Transfers are common in the organizations where the work load varies timely.
If an employee is not able to do the work or job assigned effectively he can be
transferred to the other job where he can use his skills properly according to his interest
and abilities
Departmental vacancies can be filled with transfer of employees from overstaffed
department.
Employees can be transferred to the position or department with the higher priority
workload.

Types of Transfer:

Production Transfer: When the transfers are being made for filling the position in such
departments having lack of staff, from the departments having surplus manpower it is called
production transfer. It prevents the layoffs form the organization. Also it is good to adjust
existing staff rather than to hire the new one.

Remedial Transfer: Remedial transfer refers to rectification of wrong selection or placement of


employees. If the employee can adjust himself in the given job he can be transferred to the job
where he can use his skills and abilities accordingly.

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Versatility Transfer: Such transfers are done to increase the versatility in the employees so that
he can work different kind of jobs. This is done by transferring employee to different jobs closely
related in same department or process line.. This is used as a training device. It helps employee
to develop him and he is equipped for the high responsibility jobs as he is having knowledge of
the whole process.

Shift Transfer: In many multi-shifts jobs such as Call centres employees are transferred from
one shift to another due to their personal reasons like health problem or evening college for
higher studies or any family problems.

8. Explain the process of control. What are the essentials of control system?

The control process involves carefully collecting information about a system, process, person, or
group of people in order to make necessary decisions about each. Managers set up control
systems that consist of four key steps:
1. Establish standards to measure performance. Within an organization's overall strategic
plan, managers define goals for organizational departments in specific, operational terms
that include standards of performance to compare with organizational activities.
2. Measure actual performance. Most organizations prepare formal reports of
performance measurements that managers review regularly. These measurements should
be related to the standards set in the first step of the control process. For example, if sales
growth is a target, the organization should have a means of gathering and reporting sales
data.
3. Compare performance with the standards. This step compares actual activities to
performance standards. When managers read computer reports or walk through their
plants, they identify whether actual performance meets, exceeds, or falls short of
standards. Typically, performance reports simplify such comparison by placing the
performance standards for the reporting period alongside the actual performance for the
same period and by computing the variancethat is, the difference between each actual
amount and the associated standard.
4. Take corrective actions. When performance deviates from standards, managers must
determine what changes, if any, are necessary and how to apply them. In the productivity
and qualitycentered environment, workers and managers are often empowered to evaluate
their own work. After the evaluator determines the cause or causes of deviation, he or she
can take the fourth stepcorrective action. The most effective course may be prescribed
by policies or may be best left up to employees' judgment and initiative.

These steps must be repeated periodically until the organizational goal is achieved.

Essentials of effective control

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1. Suitability- the control system should be appropriate to the nature and needs of various
activities to serve the specific area or department of the organization
2. Timely and forward looking- control system in the management of the organization should
be used to evaluate the deviations timely and take corrective measures in time.
3. Simplicity- effective control system should be very simple and easy to understand by the
concerned manager and subordinates.
4. Economy- the controlling system should be very economic and less costly. The benefits
should be more than that of actual expenditure related to the common goal
5. Objectives- the control system should be objective in order to specify the expected result in
definite terms in terms of personal likes and dislikes of manager, subordinates and other
information users etc.
6. Flexibility- every organization operates business in a dynamic environment. Controlling
system should ne flexible so that it could be adjusted in every environment
7. Focus on strategic plans- controlling system should focus on critical areas where deviations
from standards are most likely to occur and they cause loss and damage. So controlling system
should concentrate on those areas where corrective action can be applied effectively
8. Coordinates with organizational workflow- the information to be used for the control must
be coordinated with the organizational work flow for two main reason:
a. Each step in the workflow may affect the entire authority
b. Control information must reach every one who needs it.
9. Prescriptive and operational- control system should be prescriptive and operational. And if it
does not prescribe remedies and help for smooth operation, it is not useful.

9. What are the methods of performance evaluation?. What are the uses of 360 degree
feedback? (Dec 2010) (May 2011)

Performance Appraisal Methods

It is a systematic evaluation of an individual with respect to performance on the job and


individuals potential for development.

Definition 2: Formal System, Reasons and Measures of future performance

It is formal, structured system of measuring, evaluating job related behaviors and outcomes to
discover reasons of performance and how to perform effectively in future so that employee,
organization and society all benefits.

Meaning of Performance Appraisals

Performance Appraisals is the assessment of individuals performance in a systematic way. It is a


developmental tool used for all round development of the employee and the organization. The
performance is measured against such factors as job knowledge, quality and quantity of output,

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initiative, leadership abilities, supervision, dependability, co-operation, judgment, versatility and


health. Assessment should be confined to past as well as potential performance also. The second
definition is more focused on behaviors as a part of assessment because behaviors do affect job
results.

Performance Appraisals and Job Analysis Relationship


Job Analysis Performance Standards Performance Appraisals
Describe the work and Translate job requirements Describe the job relevant
personnel requirement of a into levels of acceptable or strengths and weaknesses
particular job. unacceptable performance of each individual.

Objectives of Performance Appraisals

Use of Performance Appraisals

1. Promotions

2. Confirmations

3. Training and Development

4. Compensation reviews

5. Competency building

6. Improve communication

7. Evaluation of HR Programs

8. Feedback & Grievances

4 Goals of Performance Appraisals


General Goals Specific Goals
Developmental Use Individual needs

Performance feedback

Transfers and Placements

Strengths and Development needs

Administrative Decisions / Salary


Uses

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Promotion

Retention / Termination

Recognition

Lay offs

Poor Performers identification

Organizational Maintenance HR Planning

Training Needs

Organizational Goal achievements

Goal Identification

HR Systems Evaluation

Reinforcement of organizational
needs

Documentation Validation Research

For HR Decisions

Legal Requirements

Performance Appraisal Process

1. Objectives definition of appraisal

2. Job expectations establishment

3. Design an appraisal program

4. Appraise the performance

5. Performance Interviews

6. Use data for appropriate purposes

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7. Identify opportunities variables

8. Using social processes, physical processes, human and computer assistance

Difference between Traditional and Modern (Systems) approach to Appraisals


Categories Traditional Appraisals Modern, Systems
Appraisals
Guiding Values Individualistic, Control Systematic,
oriented, Documentary Developmental, Problem
solving
Leadership Styles Directional, Evaluative Facilitative, Coaching
Frequency Occasional Frequent
Formalities High Low
Rewards Individualistic Grouped, Organizational

TECHNIQUES / METHODS OF PERFORMANCE APPRAISALS

Numerous methods have been devised to measure the quantity and quality of performance
appraisals. Each of the methods is effective for some purposes for some organizations only. None
should be dismissed or accepted as appropriate except as they relate to the particular needs of the
organization or an employee.

Broadly all methods of appraisals can be divided into two different categories.

Past Oriented Methods


Future Oriented Methods

Past Oriented Methods

1. Rating Scales: Rating scales consists of several numerical scales representing job related
performance criterions such as dependability, initiative, output, attendance, attitude etc. Each
scales ranges from excellent to poor. The total numerical scores are computed and final
conclusions are derived. Advantages Adaptability, easy to use, low cost, every type of job can
be evaluated, large number of employees covered, no formal training required. Disadvantages
Raters biases

2. Checklist: Under this method, checklist of statements of traits of employee in the form of
Yes or No based questions is prepared. Here the rater only does the reporting or checking and HR
department does the actual evaluation. Advantages economy, ease of administration, limited
training required, standardization. Disadvantages Raters biases, use of improper weighs by HR,
does not allow rater to give relative ratings

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3. Forced Choice Method: The series of statements arranged in the blocks of two or more are
given and the rater indicates which statement is true or false. The rater is forced to make a
choice. HR department does actual assessment. Advantages Absence of personal biases
because of forced choice. Disadvantages Statements may be wrongly framed.

4. Forced Distribution Method: here employees are clustered around a high point on a rating
scale. Rater is compelled to distribute the employees on all points on the scale. It is assumed that
the performance is conformed to normal distribution. Advantages Eliminates Disadvantages
Assumption of normal distribution, unrealistic, errors of central tendency.

5. Critical Incidents Method: The approach is focused on certain critical behaviors of


employee that makes all the difference in the performance. Supervisors as and when they occur
record such incidents. Advantages Evaluations are based on actual job behaviors, ratings are
supported by descriptions, feedback is easy, reduces recency biases, chances of subordinate
improvement are high. Disadvantages Negative incidents can be prioritized, forgetting
incidents, overly close supervision; feedback may be too much and may appear to be
punishment.

6. Behaviorally Anchored Rating Scales: statements of effective and ineffective behaviors


determine the points. They are said to be behaviorally anchored. The rater is supposed to say,
which behavior describes the employee performance. Advantages helps overcome rating errors.
Disadvantages Suffers from distortions inherent in most rating techniques.

7. Field Review Method: This is an appraisal done by someone outside employees own
department usually from corporate or HR department. Advantages Useful for managerial level
promotions, when comparable information is needed, Disadvantages Outsider is generally not
familiar with employees work environment, Observation of actual behaviors not possible.

8. Performance Tests & Observations: This is based on the test of knowledge or skills. The
tests may be written or an actual presentation of skills. Tests must be reliable and validated to be
useful. Advantage Tests may be apt to measure potential more than actual performance.
Disadvantages Tests may suffer if costs of test development or administration are high.

9. Confidential Records: Mostly used by government departments, however its application in


industry is not ruled out. Here the report is given in the form of Annual Confidentiality Report
(ACR) and may record ratings with respect to following items; attendance, self expression, team
work, leadership, initiative, technical ability, reasoning ability, originality and resourcefulness
etc. The system is highly secretive and confidential. Feedback to the assessee is given only in
case of an adverse entry. Disadvantage is that it is highly subjective and ratings can be
manipulated because the evaluations are linked to HR actions like promotions etc.

10. Essay Method: In this method the rater writes down the employee description in detail
within a number of broad categories like, overall impression of performance, promoteability of
employee, existing capabilities and qualifications of performing jobs, strengths and weaknesses
and training needs of the employee. Advantage It is extremely useful in filing information gaps
about the employees that often occur in a better-structured checklist. Disadvantages It its
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highly dependent upon the writing skills of rater and most of them are not good writers. They
may get confused success depends on the memory power of raters.

11. Cost Accounting Method: Here performance is evaluated from the monetary returns yields
to his or her organization. Cost to keep employee, and benefit the organization derives is
ascertained. Hence it is more dependent upon cost and benefit analysis.

12. Comparative Evaluation Method (Ranking & Paired Comparisons): These are
collection of different methods that compare performance with that of other co-workers. The
usual techniques used may be ranking methods and paired comparison method.

Ranking Methods: Superior ranks his worker based on merit, from best to worst.
However how best and why best are not elaborated in this method. It is easy to administer and
explanation.
Paired Comparison Methods: In this method each employee is rated with another
employee in the form of pairs. The number of comparisons may be calculated with the help of a
formula as under.

N x (N-1) / 2

Future Oriented Methods

1. Management By Objectives: It means management by objectives and the performance is


rated against the achievement of objectives stated by the management. MBO process goes as
under.

Establish goals and desired outcomes for each subordinate


Setting performance standards
Comparison of actual goals with goals attained by the employee
Establish new goals and new strategies for goals not achieved in previous year.

Advantage It is more useful for managerial positions.

Disadvantages Not applicable to all jobs, allocation of merit pay may result in setting short-
term goals rather than important and long-term goals etc.

2. Psychological Appraisals: These appraisals are more directed to assess employees potential
for future performance rather than the past one. It is done in the form of in-depth interviews,
psychological tests, and discussion with supervisors and review of other evaluations. It is more
focused on employees emotional, intellectual, and motivational and other personal characteristics
affecting his performance. This approach is slow and costly and may be useful for bright young
members who may have considerable potential. However quality of these appraisals largely
depend upon the skills of psychologists who perform the evaluation.

3. Assessment Centers: This technique was first developed in USA and UK in 1943. An
assessment center is a central location where managers may come together to have their
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participation in job related exercises evaluated by trained observers. It is more focused on


observation of behaviors across a series of select exercises or work samples. Assessees are
requested to participate in in-basket exercises, work groups, computer simulations, role playing
and other similar activities which require same attributes for successful performance in actual
job. The characteristics assessed in assessment center can be assertiveness, persuasive ability,
communicating ability, planning and organizational ability, self confidence, resistance to stress,
energy level, decision making, sensitivity to feelings, administrative ability, creativity and mental
alertness etc. Disadvantages Costs of employees traveling and lodging, psychologists, ratings
strongly influenced by assessees inter-personal skills. Solid performers may feel suffocated in
simulated situations. Those who are not selected for this also may get affected.

Advantages well-conducted assessment center can achieve better forecasts of future


performance and progress than other methods of appraisals. Also reliability, content validity and
predictive ability are said to be high in assessment centers. The tests also make sure that the
wrong people are not hired or promoted. Finally it clearly defines the criteria for selection and
promotion.

4. 360-Degree Feedback: It is a technique which is systematic collection of performance data


on an individual group, derived from a number of stakeholders like immediate supervisors, team
members, customers, peers and self. In fact anyone who has useful information on how an
employee does a job may be one of the appraisers. This technique is highly useful in terms of
broader perspective, greater self-development and multi-source feedback is useful. 360-degree
appraisals are useful to measure inter-personal skills, customer satisfaction and team building
skills. However on the negative side, receiving feedback from multiple sources can be
intimidating, threatening etc. Multiple raters may be less adept at providing balanced and
objective feedback.

10. Elucidate different factors/errors that can distort performance appraisal. (Dec 2010)

1. Performance : Performance of an employee by default affects his appraisal. Every


organization would want to make better profits. If certain employees perform above their
caliber to help company achieve better results, the organization would appreciate their efforts
by giving them a raise in their compensation. It is a motivating factor as well for
employees who continue to contribute efficiently to the organization.
2. Attendance : A very essential part of employment is to be present at the workstation and
other team and company activities. Taking a day off once in a while is okay, but
frequent absenteeism will no doubt weigh down your appraisals. Employees who have lesser
absenteeism and are punctual can expect good appraisals.
3. Being motivated: A manager would love to see his employees work with excitement and
energy. Employees who get to work with motivation, take initiatives and show interest to
perform exceptionally are highly looked upon. Positive employees are retained, respected and
rewarded by the organization.

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4. Team work: Organizations like team players. Employees who gel well with the team and
help the team improve will surely be recognized and the efforts will be honored. This would be
one of the reasons why employees with still performance will manage to get a healthier raise in
their appraisals. Employees who spread negativity among the team might have to face a tough
time during their appraisals.
5. Service to the customers: Employees who deal with customers of the organization
should make sure that they fulfill the required complainants. This is essential as employee
client relations will be responsible for bringing revenue to the organization. Employees who do
a good job here will definitely receive a bonus.
6. Product knowledge: Employees should know in and out about the product or service
that they deal with. Product knowledge or process knowledge is an attribute by which the
employee is measured. Limited knowledge about the product or service restricts customer
experience, and also it is difficult to convince the customers about the benefits of the
product/service. This in turn shows your inefficiency which leads to poor appraisal.

11. Explain the Conflict management. Specify a conflict resolution process to know,
understand and resolve grievances with utmost control. (April/ May 2012))
The practice of recognizing and dealing with disputes in a rational, balanced and effective way.
Conflict management implemented within a business environment usually involves effective
communication, problem resolving abilities and good negotiating skills to restore the focus to
the company's overall goals.
Types of conflict

Conflict is classified into the following four types:

Interpersonal conflict refers to a conflict between two individuals. This occurs typically
due to how people are different from one another. We have varied personalities which usually
results to incompatible choices and opinions. Apparently, it is a natural occurrence which can
eventually help in personal growth or developing your relationships with others. In addition,
coming up with adjustments is necessary for managing this type of conflict. However, when
interpersonal conflict gets too destructive, calling in a mediator would help so as to have it
resolved.
Intrapersonal conflict occurs within an individual. The experience takes place in the
persons mind. Hence, it is a type of conflict that is psychological involving the individuals
thoughts, values, principles and emotions. Interpersonal conflict may come in different
scales, from the simpler mundane ones like deciding whether or not to go organic for lunch
to ones that can affect major decisions such as choosing a career path. Furthermore, this type
of conflict can be quite difficult to handle if you find it hard to decipher your inner struggles.
It leads to restlessness and uneasiness, or can even cause depression. In such occasions, it
would be best to seek a way to let go of the anxiety through communicating with other
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people. Eventually, when you find yourself out of the situation, you can become more
empowered as a person. Thus, the experience evoked a positive change which will help you
in your own personal growth.
Intragroup conflict is a type of conflict that happens among individuals within a team.
The incompatibilities and misunderstandings among these individuals lead to an intragroup
conflict. It is arises from interpersonal disagreements (e.g. team members have different
personalities which may lead to tension) or differences in views and ideas (e.g. in a
presentation, members of the team might find the notions presented by the one presiding to
be erroneous due to their differences in opinion). Within a team, conflict can be helpful in
coming up with decisions which will eventually allow them to reach their objectives as a
team. However, if the degree of conflict disrupts harmony among the members, then some
serious guidance from a different party will be needed for it to be settled.
Intergroup conflict takes place when a misunderstanding arises among different teams
within an organization. For instance, the sales department of an organization can come in
conflict with the customer support department. This is due to the varied sets of goals and
interests of these different groups. In addition, competition also contributes for intergroup
conflict to arise. There are other factors which fuel this type of conflict. Some of these
factors may include a rivalry in resources or the boundaries set by a group to others which
establishes their own identity as a team.

Conflict may seem to be a problem to some, but this isnt how conflict should be perceived. On
the other hand, it is an opportunity for growth and can be an effective means of opening up
among groups or individuals. However, when conflict begins to draws back productivity and
gives way to more conflicts, then conflict management would be needed to come up with
a resolution.

Conflict resolution process

Step 1: Identify the source of the conflict. The more information you have about the cause of
the conflict, the more easily you can help to resolve it. To get the information you need, use a
series of questions to identify the cause, like, When did you feel upset? Do you see a
relationship between that and this incident? How did this incident begin?

As a mediator, you need to give both parties the chance to share their side of the story. It will
give you a better understanding of the situation, as well as demonstrate your impartiality. As you
listen to each disputant, say, I see or uh huh to acknowledge the information and encourage
them to continue to open up to you.

Step 2: Look beyond the incident. Often, it is not the situation but the perspective on the
situation that causes anger to fester and ultimately leads to a shouting match or other visible
and disruptiveevidence of a conflict.
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The source of the conflict might be a minor problem that occurred months before, but the level of
stress has grown to the point where the two parties have begun attacking each other personally
instead of addressing the real problem. In the calm of your office, you can get them to look
beyond the triggering incident to see the real cause. Once again, probing questions will help,
like, What do you think happened here? or When do you think the problem between you first
arose?

Step 3: Request solutions. After getting each partys viewpoint on the conflict, the next step is
to get each to identify how the situation could be changed. Again, question the parties to solicit
their ideas: How can you make things better between you?

As mediator, you have to be an active listener, aware of every verbal nuance, as well as a good
reader of body language.

Just listen. You want to get the disputants to stop fighting and start cooperating, and that means
steering the discussion away from finger pointing and toward ways of resolving the conflict.

Step 4: Identify solutions both disputants can support. You are listening for the most
acceptable course of action. Point out the merits of various ideas, not only from each others
perspective, but in terms of the benefits to the organization. (For instance, you might point to the
need for greater cooperation and collaboration to effectively address team issues and
departmental problems.)

Step 5: Agreement. The mediator needs to get the two parties to shake hands and agree to one of
the alternatives identified in Step 4. Some mediators go as far as to write up a contract in which
actions and time frames are specified. However, it might be sufficient to meet with the
individuals and have them answer these questions: What action plans will you both put in place
to prevent conflicts from arising in the future? and What will you do if problems arise in the
future?

This mediation process works between groups as well as individuals.

Having conflict or dealing with conflict can be stressful. Register to attend our webinar to
learn how to be resilient to workplace stress.

12. What criteria do you think should be used to measure team performance? What
sources should be used for the appraisal? Should the individual performance still be
measured? Why or Why not? Explain. (Dec 2010)

Measuring team-related performance can be approached in at least four ways. Two of those
approaches measure performance at the individual level and two measure performance at the
team level.

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Individual Level: An Individual's Contribution to the Team

Individual Behavior: Employees can be measured on how well they work with team members.
Examples of these types of measures could include the degree to which: the employee
participates in team meetings; the employee volunteers for team projects; the employee
communicates with members in a constructive and non-threatening manner; other members find
that the employee is pleasant to work with and fosters cooperation.

Individual Results: Employee work products that contribute to the final team product or service
can be assessed and verified. Examples of these types of measures could include error rates, the
timeliness of the product, the number of suggestions made, or the accuracy of the data provided.

Team Level: Measuring the Team's Performance

The Team's Processes: The team can be measured on its internal group dynamics. These types
of measures could address: how well the team works together as a group; the effectiveness of
team meetings; the ability of the team to reach consensus; and the team's problem-solving
techniques.

The Team's Results: The team can be measured on its work results or products. These types of
measures could include: the number of cases completed; the use, acceptance, and
understandability of the team's final report; the number of customer requests for the team's
report; the subscription rate of the team's newsletter.

These types of measures can be applied with the three types of performance elements that can be
used in the performance appraisal process.

A critical element is a work assignment or responsibility of such importance that


unacceptable performance on the element would result in a determination that an
employee's overall performance is unacceptable. Because critical elements are limited to
addressing individual performance, only the individual level measures of contribution to
the team and individual results could be used as critical elements.

Non-critical elements can be a dimension or aspect of individual, team, or organizational


performance that is measured and used in assigning a summary level. In the past, "non-
critical" meant "not as important." However, programs can be designed so that non-
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critical elements have as much weight or more weight than critical elements in
determining the final summary level. Since it is only through non-critical elements that
group or team level performance can be factored into an employee's summary level
determination, using non-critical elements can be a useful tool for setting group goals,
planning group work, measuring group performance, and providing feedback on group
performance.

Additional performance elements address a dimension or aspect of individual, team, or


organizational performance that is not used in determining summary levels. Additional
elements are used for various other purposes, such as setting goals, providing feedback
on individual or group performance, and recognizing individual or group achievements.

In summary, session attendees learned about four ways of measuring team performance and
found ways to incorporate team elements and measures into performance appraisal programs.

Team-Related Measures Matrix

Contribution Behaviors/Process Results

Individual Level: An The employee: cooperates with team The number of ideas contributed by the
Employee's members, communicates ideas during employee, the turn-around time for the
Contribution to the meetings, participates in the team's decision- individual's product, the accuracy of
Team making processes. data supplied to the team.

Team Level: The The team: runs effective meetings, Customer satisfaction with the team
Team's Performance communicates well as a group, allows all product, the number of cases the team
opinions to be heard, comes to consensus on completed, the cycle time for the team's
decisions. entire work process.

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