THE QUAIDE MILLETH COLLEGE FOR MEN SHIFT – II DEPARTMENT OF COMMERCE B.COM G

EVEN SEMESTER BVZ6B

HUMAN RESORCE MANAGEMENT – 2 Marks

1. What is Interview?

An Interview is a face-to-face oral examination of a candidate by an

employer.

Interview may be held at two stages – Preliminary stage and Final

stage. The Final Interview enables the employer to examine the

candidate thoroughly.

2. What is Placement?

Placement is a process of assigning a specific job to each of the

selected candidates.

It involves assigning a specific rank and responsibility to the candidates

by keeping in their qualifications.

3. What is meant by Demotion?

Demotion is the opposite of Promotion where an employee who has

been in a higher position will be moved or demoted to a lower position.

Such measure is adopted when he is found to be incapable of

discharging his duties in the present job.

4. What is Job Analysis?

The process of determining the nature and contents of a particular job

is known as Job Analysis.

It brings out the following:

The tasks to be performed in a given job.

He conditions under which the job has to be

performed.

The skills and capabilities required for the job.

5. What is Time Wage system?

Here the workers will be paid on the basis of the time spent by them on

the job irrespective of the quantum of work done by them.

It ignores the differences in the level of output of different workers. It is

a conventional method of wage system.

6. What do you mean by Employee Welfare?

Employee is a comprehensive term which includes various services,

facilities and amenities provided to the employees for their betterment.

Employee Welfare measures, also known as Fringe benefits and

services, may be voluntary and statutory.

7. What is Collective Bargaining?

Collective bargaining is the process of negotiating the terms of

employment between an employer and a group of workers.

The terms of employment are likely to include items such as conditions

of employment, working conditions and other workplace rules, overtime

pay, work hours, sick leave, and other terms.

8. Write a note on Worker’s participation in management:-

Worker’s participation in management refers to the active mental and

emotional involvement of the workers in the management of the

enterprise.

It is also called as ‘Labour participation’ or ‘Employee participation’ in

management.

9. What is Audit Report?

Audit report refers to a written opinion regarding a firm by the auditor.

An auditor's report provides an opinion on the validity and reliability of a

company’s financial statements after being thoroughly checked by the

auditor.

10. What is Planning?

Planning is deciding in advance what should be done and how it should

be done to eliminate random working.

Planning involves determination of objectives, policies, procedures,

rules, strategies, programmes and budgets.

11. What are the components of Social Security?

The main components of Social Security are as follows:-

Public assistance

Unemployment compensation

Old-age insurance

12. What is Trade Union?

A Trade Union is essentially an association of employees of a

particular trade or industry.

It is formed to safeguard the interests of its employees or members

against certain vindictive management actions.

13. Define Human Resource Management.

“ Human Resource or Man-power Management describes the effective

process of planning and directing the application development and

utilization of Human Resource in employment.”

14. What do you mean by Selection?

Selection is the process of choosing or selecting the most suitable

candidate for the vacant position in the organisation.

The selection of the suitable candidate will be made from a pool of

various applicants of a particular position.

15. What do you mean by Employee Placement?

Employee Placement involves the Selection and placement of the right

employee or employees by matching their qualifications with that of the

position.

By this process the company attempts to create an effective working

environment.

16. What is Operative Training?

It refers to the training given to an employee in the place where he is

employed. It is also called as ‘On-the-job’training.

Work and learn is the philosophy of Operative training concept.

17. What is meant by Performance Appraisal?

It is the process of making assessment of the performance and

progress of the employees of an organisation.

After an employee is recruited into the company, he is given necessary

training and is assessed whether he is efficient or not.

18. Mention the different types of Promotion:-

There are 3 types of promotions. They are:-

Vertical Promotion

Horizontal Promotion or Upgradation

Dry Promotion.

19. Define the term Motivation.

“ Motivation means a process of stimulating people to action to

accomplish desired goals.” – W.G. Scott.

“ Something that moves the person to action and continues him in the

course of action already initiated.” – Robert Dubin.

20. List out the various Incentive methods:-

I. Individual Incentive Plans:-

1. Time – based Plans:-

Halsey’s Plan

Rowan’s Plan

Emerson’s Plan

Bedeaux’s Plan

2. Output – based Plans:-

Taylor’s Differential Piece Rate Plan

Merrick’s Multiple Piece Rate Plan

Gnatt’s Task Plan

II. Group Incentive Plans:-

Priestman’s Plan

Scanlon’s Plan

21. Define Trade Union.

“ A trade union is a continuing, long term association of employees,

formed and maintained for the specific purpose of advancing and

protecting the interests of members in their working relationships.” –

Dale Yoder.

22. Write short notes on Human Resource Audit:-

Human Resource Audit is concerned with the examination and

evaluation of the policies, procedures and practices with reference to

the human resource of the organisation.

It is a periodic review of to measure the efficiency and effectiveness of

human resource management.

23. What do you mean by Employer Training?

Training is concerned with increasing the knowledge and skills of

employees for doing specific jobs.

In other words, training provides the workers with facility to gain

technical knowledge and to learn new skills to do specific jobs. Training

is equally important for the existing as well as the new employees.

24. What do you mean by Remuneration?

Remuneration refers to the payment or compensation received for

services or employment.

This includes the base salary and any bonuses or other economic

benefits that an employee or executive receives during employment.

25. State any two benefits of Incentives:-

Higher output: Incentives to employees to induce them to work better

which in turn leads to higher output.

Greater profits: As the workers provide with higher output,

consequently it results in greater increase in profits of the firm.

26. What is meant by Labour Relation?

Labour relations refers to the practices and rules that structure

relations between employees within a company.

It specifies or depicts the relationship between the labour force with

that of the management.

27. What is Participation in management?

It is the practice of empowering members of a group such as

employees or workers of a company to participate in the organisational

decision making.

It facilitates effective and efficient performance and progress of the

workers or employees.

28. What do you understand by Transfer?

Transfer means shifting of an employee from one section to another or

one department to another or one branch to another or even to another

country.

Transfer may take place due to many reasons such as vacancy,

promotion transfer, compulsory transfer etc,.

29. What is Induction Training?

Induction Training also known as ‘Orientation Training’, is required for

new employees.

A person or employee who has just been inducted into a company

must be informed of his duties and nature of work to be performed.

30. What is performance review?

Performance review is a method by which the job or work performance

of an employee is documented and evaluated.

It is done to ensure and determine the degree to which the stated

objectives and expectations have been reached.

31. What is meant by Broadbanding?

Broadbanding is a job grading structure that falls between using spot

salaries vs. many job grades to determine what to pay to particular

positions.

Hence, Broadbanding is a more flexible pay system.

32. What is Empowerment?

Empowerment refers to giving employees skills, resources, authority,

opportunity, and holding them responsible and accountable for

outcomes of their actions.

It motivates and encourages such persons or employees to work with

best interest and due responsibility.

33. Define HR Accounting.

The American Association of Accountants (AAA) defines HRA as “HRA

is a process of identifying and measuring data about human resources

and communicating this information to interested parties”.

34. Write short notes on recruitment.

Recruitment process of finding and hiring the best-qualified candidate

(from within or outside of an organization) for a job opening, in a timely

and costeffective manner.

It is a core function of Human Resource Management.

35. Name any four Training Techniques:-

Induction Training

Refresher Training

Job Rotation

Case Study

Management Games

Role Playing

36. What is Career Development?

Career Development is a series of on-going or lifelong activities or

process of developing one’s career.

It involves training on new skills, moving to higher job responsibilities,

making a career change within the same organization or moving to a

different organization.

37. What are Incentives?

‘Incentive’ may be defined as any reward or benefit given to employees

over and above the wage or salary with a view to motivate them to

excel in the work.

Incentives include both monetary as well as non-monetary rewards.

38. What are Fringe Benefits?

Fringe benefits are benefits provided by an employer to an employee,

independent contractor or partner, some of which are tax-exempt when

certain conditions are met.

Recipients of taxable fringe benefits have to include the fair market

value of the benefit in their taxable income for the year.

39. What is Promotion?

Promotion means an upward movement of an employee’s position in

the enterprise.

An employee who has been promoted moves to a higher level job that

gives higher salary, greater authority and accountability as well.

40. What do you mean by Welfare measures?

Welfare measures refers to the setting up of minimum desirable

standards of the provision of facilities like health, housing, medical

assistance, education, job security, recreation etc.

Such facilities enable the worker and his family to lead a good working

life, family life and social life.

41. What do you mean by Worker’s Committee?

A Workers' Committee is essentially a committee created and elected

by the workers in a company to represent themselves in discussions or

negotiations with the members of the management.

Therefore, this committee entirely consists of workers or employees

and doesn’t include representatives of the management.

42. What do you understand by Industrial Relations?

Industrial Relations explains the relationship between employees and

management which stems directly or indirectly from union-employer

relationship.

The Industrial Relations between the employer-employee only exists

within an organisation.

43. What are the Benefits of Trade Unions?

To ensure job security and right pay for the members.

To ventilate the grievances of employees to the management.

To have better bargaining power.

To secure better conditions of service.

44. List out the various benefits of HR Audit.

It ensures that the policies and procedures of the company in respect

of HR management, are sound.

It pinpoints any deviations from established procedures.

It reveals whether the company has made optimum use of human

resource.

It is possible to know whether the company has a contended and

satisfied workforce.

45. What is meant by Personnel Research?

Personnel research refers to a systematic investigation into the matters

of employees with an objective to solve their problems.

The basic purpose of personnel research is to seek answers to

problems through the application of scientific methodology.

5 Marks

1. Distinguish between Human Resource Management and Personnel Management.

Personnel Management

Human Resource Management

It is routine and maintenance oriented

administrative function.

It is a function aimed at continuous

development of people at work.

It is mainly re-active and responsive to

the demand of the organisation.

It is a pro-active function. It is not only

concerned with ascertaining present

organisational needs but also

concerned with future needs and act.

It is viewed as an independent function

without regard to organisational

strategy and process.

It is viewed as sub-system of

organisation. It has close linkage and

interface with other functions of

2. Explain the Sources of Recruitment.

There are two sources of recruitment. They are: (i) Internal Source and (ii)

External Source.

(i) Internal Source: In case of internal source, the selection of candidates for

the jobs will be done from among the existing employees of the organisation.

Preference may also be given to the family members, relatives or friends of

the existing employees. The following are some internal sources:

Transfer

Promotion and

Recommendation by existing employees.

(ii) External Source: It consists of various outside sources from which an

employer can find candidates eligible for the various posts in his organisation.

The various outside sources are:

Advertisements

Employee exchanges

Private Employment Consultants

Campus Interviews

Rival Firms

organisation.

The scope of personnel management is

narrow. It focuses mainly on the

recruitment and training functions.

While HRM’s scope is wide in that it

now only focus on improving efficiency

of people at work but also carving

proper organisational culture to utilise

the efficiency of the employees.

It is aimed at motivating the personnel,

economic reward and traditional job

design method.

HRM is motivation of people at work by

satisfying their higher order needs like

management challenging work, reward,

autonomous work and group etc,.

It considers that job satisfaction and

result and effect of improved

performance.

It operates on that the better

performance drive up job satisfaction

and moral of the employees.

Unsolicited Applicants.

3. Explain the need for training employees.

To enable the new recruits to understand work.

To enable existing employees to update skill and knowledge.

To enable an employee who has been promoted to understand his

responsibilities.

To enable an employee to become versatile.

To enable the employees to adapt to change in work methods.

4. Functions of Trade Union.

Safeguarding the interests of employees.

Ensuring better working and living conditions.

Securing promotion and training opportunities.

Collective bargaining.

Participation in management decisions.

Recreation

Financial assistance.

5. Explain Individual and Group Incentive Plans.

Incentive plans fall under two categories: (i) Individual incentive plans and

(ii) Group incentive plans.

(i) Individual incentive plans:-

A. Time – based plans:

1. Halsey’s plan.

2. Rowan’s plan.

3. Emerson’s plan.

4. Bedeaux’s plan.

B. Output – based plans:

1. Taylor’s Differential Piece Rate plan.

2. Merrick’s Multiple Piece Rate plan.

3. Gnatt’s Task plan.

(ii) Group incentive plans:-

A. Priestman’s plan.

B. Scanlon’s plan.

6. Essentials of successful collective bargaining.

The leaders of the union should not think that their only task is to

secure higher pay, shorter working hours and better working conditions

for their members. They must remember to assist the management in

improving the quality and quantity of output and in eliminating waste.

The union leaders and member must be sincere and loyal to the

management that has given them employment.

The union leaders should not try to politicise the workers’ problems.

They must not involve political parties at all in resolving industrial

disputes.

The union leaders and members should not resort to strike to solve

even pretty problems in workplace. Strike causes hardships not only to

management but to workers as well.

The union leaders must be honest and fair in their dealings with the

management representatives.

The union leaders and members must realise that the existence of

many trade unions within the same industry reduces the bargaining

power.

7. Benefits of Human Resource Audit.

It ensures that the policies and procedures of the organisation, in

respect of HR management, are sound.

It pinpoints deviations, if any, from established procedures and

practices.

HR audit indicates whether the investment in human resource is

adequate considering the size of the organisation and the scale of its

operations.

It reveals whether the organisation has made an optimum use of its

human resource.

It is possible to know whether the organisation has a contended and

satisfied workforce.

8. Scope of Human Resource Management.

The scope of HRM setting general and specific management policy for

promoting sound organisational relationship and establishing and

maintaining a climate in the organisation for promoting leadership and co-

operation among the employees.

Collective bargaining, contract workers administration.

Staffing the organisation, finding, getting and holding types of employees.

Self-development of employees at all levels by providing for their growth

and development and skills.

Developing and motivation of the work force by providing incentives of

various types.

Reviewing and auditing of man-power management in organisation.

Promoting industrial relation, research study to find out and explain

employee behaviour and effecting improvement in man-power

management.

9. Explain the types of Tests.

The various types of tests are:

Aptitude test

Intelligence test

Proficiency test

Interest test and

Personality test.

10. What are the advantages of Promotion?

Determining and promoting by seniority is quite simple. As he length

of service decides seniority, the employer can find out who is the senior

most employee.

The seniority criterion does justice to all the employees of the firm.

Even a junior employee of today will become senior in course of time.

As due weightage is given for experience, it will motivate the

employees to stick on to their jobs.

The enterprise can attract talented and meritorious persons under

Merit-based promotion.

There will be maximum efficiency as only meritorious persons are

promoted to higher positions in merit-based promotions.

It encourages healthy competitions among the employees.

11. Modern methods of Performance Appraisal.

The following are the important methods of appraising the performance of

employees:

Ranking method

Graphic scale rating method

Forced choice method

Essay appraisal method

Paired comparison method

Field review method

Critical incidents method

12. What are the significance of providing welfare facilities to workers?

The following are significance of labour welfare:-

(i) Benefits to employees:

Providing physical and mental health to workers and keeping them

happy.

Keeping the employees contended by providing housing facilities,

medical facilities, education and recreation facilities.

Bringing about improvements in material, intellectual and cultural

conditions of employees.

Weaning the employees from drug and drinking addiction through

counselling.

Heightening the morale of employees.

(ii) Benefits to employers:

Enhancing the productivity and efficiency of employees by improving

their physical and mental health.

Enhancing the employer branding in the market.

Improving industrial peace.

Checking or containing, the turnover of employees.

Controlling absenteeism in the facility.

Improving job satisfaction of employees.

(iii) Benefits to society:

Labour welfare is also in the interest of the larger society, because the

health, efficiency and happiness of each individual represents the

general well -being of all.

13. Scope of HR Audit.

1) Policies and procedure:

The scope of HR auditor compasses HR policies and procedure.

Mission statement pertaining to HRM.

2) HR planning:

Period of HR plan.

Examining forces determining HR plan.

3) Recruitment, selection and placement:

Extent of observance of HR policies in recruitment.

Procedures followed in placement.

4) Training:

Probing the modalities of ascertaining training needs.

Cost benefit analysis of training.

5) Promotion and transfer:

Adherence to promotion policies.

Observing rules prescribed for transfer.

6) Performance management:

Examining method of merit rating.

Methods of motivation of high performing employees.

7) Compensation administration:

Verifying any irregularity in pay fixation.

Authorised deductions.

8) Communication system:

Proper flow of communication in all directions.

Measure in place to update the knowledge of employees.

9) Motivation and morale:

Monetary and non-monetary motivations practised.

Measurement of level of morale.

10) Job satisfaction:

Measuring the level of job satisfaction.

Initiatives taken to heighten job satisfaction.

11) Stress management:

Analysing factors causing stress.

Initiatives taken to identify stress.

12) Attrition:

Measuring level of attrition.

Steps to control attrition.

14. Nature of HRM.

It is universal relevant.

It is goal-oriented.

It adapts a systematic approach in handling the man-power resource.

It is an on-going activity.

It focuses on development of Man-power resource.

It is a dynamic field of activity.

It is a science as well as an art.

It is relatively new.

15. Why Induction is important for a new employee?

Induction training is also known as ‘Orientation training’. It is required for new

employees. A person who has just been inducted into the organisation must be

informed of his duties. The nature of his work must be clearly explained to him.

A new employee must also be informed of the policies, rules and regulations

of the organisation pertaining to signing attendance, availing leave, transfer,

promotion and so on. The policies of different organisations pertaining to these

differ. Only then he will be able to comply with it.

The new employee must also be taken to various departments and divisions of

the enterprise and introduced to the people working there. The new employee may

also be on his own, met and introduce himself to other employees.

The need for induction training arises in view of the above reasons. The head

of the department where the new entrant has been appointed can provide induction

training.

16. Merits and Demerits of Performance Appraisal.

Merits of Performance Appraisal:-

It helps to ensure that the right man has been inducted into the

organisation.

It helps to know whether the training given to an employee has

been really effective.

It also provides a basis for promotion, transfer or even removal

of employee from service.

Performance appraisal is basically necessary to enable the

employee himself to know where he stands in relation to other

employees.

Demerits of Performance Appraisal:-

There is no consensus among the assessors on the factors that

should be given priority in evaluating the performance of the

subordinates.

The personal likes and dislikes of the superior also affect

employee appraisal.

There is always scope for favouritism and nepotism.

The number of methods available for appraising performance

have their plus and minus points that affects the ratings.

17. Importance of Collective Bargaining.

It provides bargaining power not only to the management but to the

workers as well.

It is a practical approach to regulating the terms and conditions of

employment of the workers.

It safeguards or protects the interests of both the management and the

employees.

It eliminates unilateral decision on the part of the management as the

employees are free to express their views.

It promotes better labour – management relationships.

It ensures industrial democracy.

It ensures that management is conducted by rules and not by arbitrary

decisions.

It helps to secure prompt and fair redressal of grievances.

18. Importance of HR Audit.

The human resource of an organisation is considered as important as, is

not, even more important than, the other resources, namely, materials,

machines and money. Therefore, every organisation is interested in HR

audit.

The feedback information available from HR audit is necessary to

improve the performance of human resource of the enterprise.

The rising labour cost is another reason why HR audit is necessary as it

guides the firm to adopt certain measures to bring down the cost of

labour.

HR audit helps to meet the challenges posed by the trade union.

The HR audit information available with the organisation is also useful

in case it has to face any enquiry in future.

19. What are the various methods of Training.

The various methods of training may be grouped under 2 categories:

1. On – the job training and

2. Off – the job training.

1. On – the job training: It refers to the training given to an employee in the

place where he is employed. The following are some of the important

methods:

Induction training

Apprenticeship training

Refresher training

Job rotation

Placement as assistants

Vestibule training.

2. Off – the job training;It refers to the training given to staff at a place

away from the actual work place. Some important methods are as follows:

Lectures and Conferences

Role playing

Case study

Management games

Brain storming

Sensitivity training.

20. What are the factors determining Labour relations.

21. Main principles of HRM.

22. Explain the various approaches in HR Audit.

The following are the methodologies or approaches adopted in HR audit:

Interview method.

Questionnaire method.

Observation method.

Desk research method.

Workshop method.

Task force method.

23. Explain the requisites for successful incentive plan.

A good incentive plan must fulfil the following requirements:

Trust and confidence.

Consensus required.

Assured minimum wage.

No scope for bias or favouritism.

Simple to operate

Beneficial to both the workers and the management.

Sound system of evaluation.

Redressing grievances.

Review.

24. Principles of sound recruitment policy.

10 Marks

1. Explain the functions of HRM.

Functions of HRM are classified into: (i) Managerial (ii) Operative functions.

(i) Managerial Functions:-

a) Planning:It is deciding in advance what should be done. It helps

to work in a systematic manner and eliminate the need for

working at random. Planning involves the determination of

objectives, procedure, rules, strategic program and budget.

b) Organising:1. Division of work among employees.

2. Delegation of authority.

3. Creation of accountability.

c) Directing:Directing the human resource does not mean the

process of issuing order and instruction to subordinate staffs. The

process of supervising guide and motivating the employees.

d) Controlling: 1. If planning is to look ahead, controlling is looking

backward.

2. The object of control function is to ensure that what has been

planned has been successfully achieved.

(ii) Operative Functions:-

a) Procurement: 1. Job analysis

2. Human Resource Planning

3. Recruitment

4. Selection

5. Placement

6. Transfer

7. Promotion.

b) Development:1. Performance appraisal

2. Training

3. Executive development

4. Career planning and development

5. Organisational development.

c) Compensation: 1. Job evaluation

2. Wages and salary administration

3. Incentives

4. Bonus

5. Benefits

6. Social security scheme.

d) Integration:1. Motivating employees to work better

2. Boosting the morale of the staff

3. Providing scope for collective bargaining

4. Improving quality of work-life of employees.

e) Maintenance:1. Providing job satisfaction among employees

2. The problem of labour turnover

3. Human Resource Accounting, Audit and

Research.

2. Steps involved in Performance Appraisal process.

The following are some common steps involved in the process of performance

appraisal:

Establishment of performance expectation.

Communication of performance expectation to employees.

Measurement of actual performance.

Comparison of actuals with standards.

Discussion of appraisal with the employees.

Initiation of corrective action.

3. Explain different theories of Motivation.

The important theories of Motivation are as follows:

Maslow’s Need Hierarchy Theory.

McGregor’s X and Y Theories.

Ouchi’s Z Theory.

Herzberg’s Two – Factor Theory.

McClelland’s Need Theory.

Vroom’s Expectancy Theory.

4. Analyse the environment of HRM and discuss its impact.

The environment refers to the aggregate of conditions, events and influences

that surround and affect HRM. Some of the factors are internal while some are

external. The factors are as follows:-

(i) External factors:

Economic factors.

Technological factors.

Social factors.

Demographic factors.

Cultural factors.

Political and legal factors.

Professional.

Unions.

(ii) Internal factors:

Mission.

Policies.

Organisational culture.

Organisational structure.

HR system.

5.Difference between Promotion and Transfer.

6. Explain Employees State Insurance Act.

7. What are the causes of Industrial Disputes? How to prevent it?

Causes of Industrial Disputes:-

Changes in work patterns.

Differences in perceptions.

Differences in values.

Availability of options.

Allocation of limited resources.

Inter – dependence.

Unequal work – load.

Biased assessment of subordinates.

Unattainable targets.

Lack of trust and confidence.

Threat to status quo.

Prevention of disputes: The five different strategies to resolve conflicts or

disputes in any workplace are:

Avoidance

Smoothing

Forcing

Compromising and

Confronting

8. Discuss essential conditions for successful working of workers participation in

management.

The following are the conditions to make workers’ participation in

management successful:

Removing misconceptions.

Orientation training.

Educating the benefits of workers’ participation in management.

Implementation of workable suggestions.

Demarcation of areas of workers’ participation in management.

Power delegation to all concerned.

Allowing participation in areas familiar to workers.

Suggestion schemes.

System to reward good suggestions.

Sharing gains of participation.

9. What are the components of Remuneration? What are the requisites for successful

remuneration?

10. Essentials of good incentive plan of wage payment.

The essentials of a sound system of wage payment may be stated as follows:

No ambiguity.

Should ensure internal equity.

Conformity with the pay structure of rival firms.

Built – in incentive.

Easy computation.

Should avoid undue delay in payment.

Should lay emphasis on quantity as well as quality.

Should provide for yearly increment.

Should ensure stable income.

11. Importance of good employee relation.

12. Outline the Selection procedure.

The process of selection of candidates for he jobs involves the following

stages:

Receiving Application Forms.

Scrutiny.

Preliminary Interview.

Final Interview.

Checking References.

Medical Examination.

Appointment.

Probation.

Confirmation of Service.