question bank with solution

8/8/2019 Question Bank With Solution

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Question Bank with solution (T.Y.B.M.S)

Subject : Human Resource Management

Q 1. Describe the HRP process? Or What do you understand by manpower planning?

Explain the steps in manpower planning?

The objectives of HR plan must be derived from organizational objectives. Specific

requirements in terms of number and characteristics of employees should be derived fromthe organizational objectives.

Organizational objectives are defined by the top management and the role of HRP is to

sub serve the overall objectives by ensuring availability and utilization of human

resources.



Once the organizational objectives are defined by the top management and the role of

HRP is to sub serve the overall objectives by ensuring availability and utilization of

human resources.

Once the organizational objectives are specified, communicated and understood by all

concerned, the HR department must specify its objectives with regard to HR utilization in

the organization.

HR Demand Forecast

Demand forecasting is the process of estimating the future quantity and quality of people

required. The basis of forecast must be annual budget and long-term corporate plan,

translated into activity levels for each function and department.

There are several good reasons to conduct demand forecasting

- Quantify the jobs necessary for producing a given number of goods- Determine what staff-mix is required.

- Asses appropriate staffing levels in different parts of the organization

- Prevent shortages of people- Monitor compliance with legal requirements with regard to reservation of jobs



HR Supply Forecast

Personnel demand analysis provides the manager with the means of estimating the

number and kind of employees that will be required. The next logical step for the

management is to determine whether it will be able to procure the required number of

personnel and the sources for such procurement. This information is provided by supply

forecasting. Supply forecasting measures the number of people likely to be available

from within and outside an organization, after making allowance for absenteeism,

internal movements and promotions, wastage and changes in hours, and other conditions

of work. reasons for supply forecast are

- Helps quantify number of people and positions expected to be available

- Helps clarify staff mixes that will exist in the futur - Assess existing staffing levels in different parts of the organization

- Prevents shortage of people

- Monitors expected future compliance with legal requirements of job reservations

HR PROGRAMMING

Once an organization’s personnel and supply are forecast, the two must be reconciled or

balanced in order that vacancies can be filled by the right employees at the right time.

HR PLAN IMPLEMENTATION

Implementation requires converting an HR plan into action. A series of action programmes are initiated as apart of HR plan implementation.

- Recruitment, Selection and Placement – after the job vacancies are known, efforts must

be made to identify sources and search for suitable candidates. The selection programme should be professionally designed.

- Training and Development – The training and development programme should

cover the number of trainees required and programmes necessary for existing staff

- Retraining and Redeployment – new skills are to be imparted to existing staff when technology changes

- Retention Plan – retention plan covers actions which would help reduce avoidable

separations of employees.- Downsizing – where there is surplus employee, trimming of labour force will be

necessary



CONTROL AND EVALUATION

Control and evaluation represents the fifth and the final phase in the HRP process. The Hr

plan should include budgets, targets and standards. It should also clarify responsibilities

for implementation and control, and establish reporting procedures, which will enable

achievements to be monitored against the plan.



Q 2. What is personnel manual and how is it designed?

MEANING AND DEFINITIONS OF PERSONNEL POLICIES:

Personnel policies are the principles and rules of conduct which "formulate, redefine,

break into details and decide a number of actions" that govern the relationship with

employees in the attainment of the organization objectives. The scope of personnel

policies is vast arid employees from all departments are covered by personnel policies.

(1) According. to Edwin B. Flippo, "A policy is a man-made rule: or pre-determined

course of action that is established to guide the performance of work toward the

organization objectives. It is a type of standing plan that serves to guide subordinates in

the execution of their tasks."

(2) According to Calhoon, "Personnel policies constitute guides to action. They furnish

the general standards or bases on which decisions are reached. Their genesis lies in anorganization’s values, philosophy, concepts and principles."

HOW TO PREPARE A PERSONNEL POLICY MANUAL?

Preparation of personnel policy manual is a lengthy, costly and time-consuming activity. Itinvolves lot of administrative work. Many persons are involved in this joint/collective

activity.

(1) Lengthy procedure involved: The steps to be taken for the preparation of personnel

policy manual depend on the material on policy manual already available. If personnel

policies on various aspects of personnel management have already been written, the

task consists of gathering the policies together, arranging them in a logical order and

writing them according to some acceptable format. Each policy needs to be placed

properly so that the manager using the manual will understand all aspects (objectives,

application, etc.) of the policy easily, quickly and correctly.



(2) Firm decision to prepare policy manual: The decision to prepare a manual is to be

taken by the top management of the company. It also has to decide who is going to be

in charge of its preparation. It is desirable to make one person responsible for the

drafting of the manual.

(3) Giving suitable authority to In charge, Personnel Policy Manual: The person

appointed for the preparation of the manual should be given authority to set up a small

committee which will assist in gathering the data necessary for the preparation of

complete and comprehensive manual. The major sources of information should also be

decided. In some cases, manual preparation is the revision and updating of the old

manual or preparation of new manual.

(4) Appointing of a small committee for manual preparation: The committee set up for

the preparation of manual should be small and functional. The initial task of the

committee is to collect data from individual departments. There should be time limit

for the preparation of final draft of the manual.

(5) Interviewing supervisors for information collection: The supervisors are mainly

responsible for administering company policies and practices. The supervisors should

be interviewed for understanding what is going on in the company at present. They

(supervisors) will be useful in finding out whether the present policies (written or

unwritten) are working and where they are not working. Association of supervisors is

important as it gives them opportunity to participate in the preparation or in the

revision of the personnel manual.

(6) Preparing first draft of policy manual: After collecting the required data, views of

supervisors, etc, the first draft of personnel policy manual should be prepared. The

language of the draft should be clear. The first draft of the manual should be flexible

and open to additions and changes.



(7) Circulating first draft for review and recommendations: Copies of the first draft

should be taken and circulated among the supervisors and others directly concerned

with the use of the manual. Their opinions should be collected for the preparation of

final draft of the manual.

(8) Final printing of manual: The manual maybe large in the case of a large organization

manufacturing and marketing wide product line.. A manual should have printed pages

with proper binding so as to make it available in a book form. Sometimes, it is

prepared in a loose-leaf form. A printed manual in book form can be used for a longer

period of three to five years. Thereafter, new updated and revised manual can be

introduced by discarding the old one.

(9) Periodical revision and updating of the manual: Periodical revision and updating of personnel policy manual is necessary due to organizational and other changes. The

jobs of manual preparation are never finished as conditions inevitably and

continuously change.

A personnel manager /HR manager or a manual coordinator should be appointed for this

job Here, he can draft the manual by using the steps noted above. The steps serve as

guidelines for manual drafting.



Q 3. Why and how does job rotation take place? (Concept question)

Job rotation implies movement of employees from one job to another.With job rotation, a given employee performs different jobs, but more or less of the same

nature. When an activity is no longer challenging, the employee would be rotated to

another job at the same level that has similar skill requirements.

Advantages of Job Rotation-

• Job rotation is a way to overcome boredom and monotony.• It is likely to increase intrinsic reward potential of a job because of different skills

and abilities needed to perform it.

• Workers become competent in several jobs rather than only one, which in turn

benefits the organization.• Knowing a variety of jobs improve the worker’s self-image, provides personal

growth and makes the worker more valuable to the organization.

• Periodic job changing can also improve interdepartmental co-operation, employees

become more understanding of each other’s problems.

Disadvantages of Job Rotation

• An employee does not gain a particular specialization.

• Moving from one job to another also gets irritating because the normal routine of an

employee is disturbed and also time is wasted in adjusting to the new job. The employee

may feel alienated when he/she is rotated from job to job.• Training costs are increased



Q 4. Why and how does a transfer take place?

Firstly what is a transfer? A transfer involves a change in the job (accompanied by a

change in the place of the job) of an employee without a change in responsibilities or remuneration. A transfer differs from a promotion in that the latter involves a change in

which a significant increase in responsibility, status and income occurs, but all theseelements are stagnant in case of a transfer. Another difference is that transfers are regular

and frequent, as in banks and other government establishments, but promotions areinfrequent.

Reasons for transfers

The reasons for transfers vary from organization to organization and from individual to

individual within an organization. Broadly speaking, the following are the reasons for transfers:

There is a shortage of employees in one department or plant because of a heavydemand, which necessitates a requirement of more employees. In another department or

plant, employees may be surplus because of slackened demand for the productsmanufactured by the company. This will lead to workers being idle and wastage of

manpower. Workers are thus transferred from the surplus department to another

department or plant where there is shortage of staff. Incompatibilities between the worker and his or her boss or between one worker and

another worker.

Correction of a wrong initial placement of an employee.

A change has taken place in the interests and capacities of an individual, compellinghim to transfer to a different job.

Over a period of time, the productivity of an employee may decline because of themonotony of his or her job. To break this monotony, the employee is transferred.

The climate may be unsatisfactory for an employee’s health. He or she may request

a transfer to a different place where his or her health will not be affected by the climate.

Family related issues cause transfers, especially among female employees like whenthey get married and want to join their husbands.

Types of transfers

1)Production transfers – as mentioned earlier, a shortage or surplus of the labour force is

common in different departments in a plant or several plants in an organization. Surplus

employees in a department have to be laid off, unless they are transferred to another department. Transfers effected to avoid such imminent lay-offs are called production

transfers.

2)Replacement transfers – replacement transfers are too intended to avoid imminent lay-offs, especially of senior employees. A junior employee may be replaced by a senior

employee to avoid laying off the senior one. A replacement transfer usually takes place

when all the operations are declining and it is carried out to retain long-service employeesas long as possible.



3)Versatility transfers – versatility transfers are done to make employees versatile and

competent in more than one skill. Clerical employees in banks, for example are

transferred from one section to another sthat they acquire the necessary skills to attend tothe various activities of the bank. Versatile transfers may be used as a preparation for

production or replacement transfers.

4)Shift transfers – generally speaking, industrial establishments operate more than one

shift. Transfers between shifts are common, such transfers being made mostly on a

rotation basis. Transfers may also be effected on special requests from employees. Somerequest a transfer to the second shift or the night shift in order to avail the free time

during the day to take up part time jobs.

5) Remedial transfers – remedial transfers are effected at the request of employees andare therefore called personal transfers. Remedial transfers take place in instances like:

• The initial placement of an employee may have been faulty or

• The worker may not get along with his or her supervisor or with other

workers in the department• He or she may be getting too old to continue in his or her regular job or

• The type of job or working conditions may not be well adapted to his or her personal health

• If the job is repetitive, the worker may stagnate and in all such instances

the employee would benefit by transfer to a different kind of work.



Q 2. Difference between: personnel management and HRM

1] PERSONNEL MANAGEMENT

DEFINITIONS OF PERSONNEL MANAGEMENT/ HRM

The term personnel management is defined in different ways. The following definitions

are worth noting:

(1) According to Edwin Flippo" Personnel management is the planning, organizing,directing, and controlling of the procurement, development, compensation, integration,

maintenance, and separation of human resources to the end that individual, organizational

and societal objectives are accomplished".

(2) According to George R. Terry, "Personnel management is concerned with theobtaining and maintaining of a satisfactory and satisfied, work force".

(3) According to Walter D. Scott, "Personnel management is concerned with the attaining

of maximum individual development; desirable working relationship between employer and employees, and an effective moulding of human resources as contrasted with

physical resources".

(4) According to British Institute of Personnel Management, London, "Personnel

Management is that part of management which is concerned with the people at work and

with their relationship within an enterprise".

OBJECTIVES/PURPOSES OF PERSONNEL MANAGEMENT / HUMAN

RESOURCE MANAGEMENT:

The objectives of HRM are derived from the basic objectives of an organization. In order

to achieve organizational objectives, integration of employer's interest and employeeinterests is necessary.

The objectives of personnel management/HRM in any industrial organization can be

summarized as under.

(1) To attain maximum individual development (self-development) of the members of anorganization and also to utilize available human resources (with the organization) fully

and effectively.

(2) To mould effectively the human resources.

(3) To establish desirable working relationships between employer and employees and between groups of employees.

(4) To ensure satisfaction to the workers so that they are freely ready to work.



(5) To improve the service rendered by the enterprise to the society through better

employee morale, which leads to more efficient individual and group performance.

(6) To establish and maintain a productive and self respecting relationship among all the

members of an organization.

(7) To ensure the availability of a competent and willing workforce to the organization

for its progress and prosperity.(8) To help organization to achieve its goals by providing well trained, efficient and

properly motivated employees.

(9) To maintain high morale and good human relations within the organization for the

benefit of employer and employees.(10) To secure the integration of all the individuals and groups with the organization by

reconciling individual/group goals with those of an organization

2] HUMAN RESOURCE MANAGEMENT

MEANING AND DEFINITION

Personnel refers to the employees working in an organization at different levels.

Personnel management (also called human resource management) is that aspect of total business management, which deals with human relationships within an organization.

Personnel represent human resource, which is different from material resources.

Human resource is the most productive and most versatile. In addition, the manpower in

an organization needs human treatment. Employees have a capacity to feel, think and

even to react. Management has to deal with the employees in a careful and tactful

manner. Material resources such as land, machines, raw materials, equipment, etc. are

easy to manage. This is because they have no capacity to feel or think or react. This is not

the case with human resource i.e. manpower. Man and machines are not on par and must

not be treated in the same manner. This is because of all the resources manpower is the

only resource, which does not depreciate, with the passage of time. According to Peter F.

Druckert UtIle prosperity, if not the survival of any business depend on the performance



a team of efficient and capable employees for the benefits of the organization. Even

promotions and transfers are covered by this broad personnel function.

(2) Development of manpower: Development of manpower (human resource

development) means planning and execution of the training programmes for all

categories of employees in order to develop new skills and qualities required for working

at the higher level. Manpower development is possible through training and career

development programmes and not simply by offering attractive wages to workers.

Executive development programmes are introduced for the benefit of higher-level

managers Similarly; future manpower requirement will be, met internally through HRD

programmes. It aims at educating and training employees for the improvement of overall performance of an organization. HRD (HumanResource Development) programmes are

for education, training and development of existing manpower in an organization. This is

for facing new problems and challenges likely to develop in the near future.

(3) Compensation payment to manpower employed: One function of HRM is to pay

compensation (in monetary form) to employees for the services rendered. For this, a fair

system of remuneration payment (wages and salaries) needs to be introduced.

Remuneration to employees should be attractive so that the labour force will be satisfied

and disputes, etc. will be minimized. Fair wage payment acts as a motivating factor.

(4) Integration of interests of manpower and the organization: Manpower is interested in

wage payment while organization is interested in higher profits, consumer loyalty, market

reputation and so on. HRM has to reconcile the interests of the individual members of the

organization with those of the organization.

(5) Maintenance of manpower: This manpower function relating to maintaining satisfied

manpower in the organization through the provision of welfare facilities. For this,

attention needs to be given to health and safety measures, maintenance of proper working

conditions at the work place, provision of welfare facilities and other non-monetary



benefits so as to create efficient and satisfied labour force with high morale. Even

collective bargaining and workers participation come within this broad personnel

function.

(6) Provision of welfare facilities: Employees are offered various welfare facilities.

They include medical, educational, recreation, housing, transport and so on.

(7) Misc. functions: Misc functions under HRM include maintenance of service records

of employees (which are used for promotions/transfers performance appraisal, etc.),

promotions and transfers of employees, maintaining cordial industrial relations,

introduction of rational grievance procedure, performance

evaluation of employees, career planning of employees, maintenance of discipline,

administering the policies with regard to disciplinary action and compliance of various

labour laws.



I.

1) What are the challenges facing HRM? / Explain the changing role of HRM?

The 1990s have brought a revolutionary change in our business. Post- liberalisation is

marked by a shift from command economy to market driven economy; from sheltered

market to competitive market; from monopoly to competition; and from domestic trade toglobal trade. Such a shift calls for a different approach to HR activities. During the pre-

economic liberalization, the HR managers had aopted a reactive strategies to people’s

problems. The need of the hour is proactive approach, a strategy which helps HR

managers foresee events and take appropriate actions before the events occur.

The major challenges are:

Globalisation

Globalisation is increasingly viewed as a growth strategy by several companies. Growing

internalisation of business has its impact on HRM functions. The HR department is

required to cope with the problems of unfamiliar laws, languages, practices,

competitions, attitudes, management styles, work ethics and more. HR managers are

required to know that international operations have:

More functions, such as taxation and co-ordination of departments.

More heterogenous functions, such as co-ordination of multiple salary currenciesMore involvement in the employee’s personal life, such as housing, health, education and

recreation.

HR functions such as planning, staffing, remuneration and the like, therefore, will be

affected by globalisation. Corporate Reorganisations

The past three to four years brought us news about corporate mergers, takeovers and

massive reorganizations to fend off hostile take-over bids. It is difficult to imagine

circumstances that pose a greater challenge for HRM than reorganization resulting from

acquisition, merger, divestiture or a take-over threat.

The reorganization will have impact on organizational levels and employees. The

employees of both the ‘taking over’ as well as the ‘taken over’ companies will haveanxious moments because of:

1. Fear of loss of jobs

2. Job changes, including new roles and assignments3. Transfers to new geographic location4. Changes in remuneration

5. Changes in career possibilities

6. Changes in organisational power, status, an prestige,7. Staff changes, including new peers, supervisors, and subordinates, and

8. Changes in corporate culture and loss of identity in the company.



There is little indication that the pace of mergers and acquisitions will slacken in the

future. But an important key to the success of almost any merger or acquisition is the

management of HR.

New organisational forms

The practice of HRM is shaped by the organisational forms in which people areemployed. But the employment potential of these giant corporations is declining. Large

production units have become increasingly a thing of the past, and large companies now

tend to consist of business units managed relatively independently.

The consequence has been a higher profile of medium size and small sized firms as

employers. A majority of the population are employed in units with fewer than 200

employees.

This trend affects HRM in various ways

Smaller firms and establishments means a more personalised style- not necessarily more

progressive, but more fsce-to –face.

Smaller units may require less complex and sophisticated systems of personnel

management, but may also be less able to sustain them in areas like management

development.

Smaller unit are less able to sustain a specialist personnel management function.

On the other hand, the business and human challenges of operating in this kind of

environment are becoming greater. The contribution of HRM will then be in facilitating

the processes, which support the development of the enterprise, rather than, as traditional

personnel management has one, in administering systems for controlling people.

The basic challenge to HRM an enterprise management comes from the changing

character of competition. Competition in many sectors is no longer between individual

firms, large or small, but between constellation of firms.

Changing demographics of workforce

The major challenge that has resulted from changing workforce demographics concerns

dual career couples, couples where both partners are actively pursuing professional

careers. Organizations have been accustomed to using job moves and physical relocationas an important means of developing talent. The increasing number of dual career

professionals limits individual flexibility in accepting such assignments.

Another change in the workforce demographics relates to the growing number of

employees who are young. Dormitories, gymnasium, breakfast, these are the kind of

facilities that need to be provided to the workforce which has more of young employees.



Changed employee expectations

With changes in work-force demographics, employee expectations and attitudes also

have shifted. Traditional allurements such as job security, attractive

remuneration,housing and the like do not attract and motivate today’s workforce.

Employees demand empowerment and expect quality with the management. Previousnotions about managerial authority are giving way to employee influence and

involvement along with mechanisms for upward communication and due process.

Another expectation by the employee is that the electronic and telecommunication

revolution will improve the quality of work life. Innovations in communication and

computer technology will accelerate the pace of change, and as a result, lead to many

innovations in HRM. Also, today’s average worker demands better treatment,

challenging jobs and career advancement.

The HR manager must, therefore, redraw the profile of the worker and discover new

methods of hiring, training, remunerating and motivating employees.

Proactive industrial relations strategy

There is almost a metamorphosis at the industrial relations front. Strikes, lockouts and

loss of mandays are declining considerably. This transformation is the result of socio-

economic and political reasons.

The challenge to the labour movement comes not so much from any destructive potential

intrinsic in HRM but from its capacity to co-opt and integrate workers into the enterprise

by building a relationship with them.

Not having to compete with the management for worker’s loyalty, trade unions behave

towards their members exactly as any monopolistic organisation would. HRM comes as a

threat to this cosy arrangement, for management is not only seeking to get back to the

neglected employee, but doing so in an environment where there own unions had taken

them for granted.

The need now is to adopt a proactive strategy towards industrial relations, an approach

which should enable HR specialists to look into the challenges unfolding in the future and

to be prepared to convert them into opportunities.

Contribution to the success of the Organization

The biggest challenge to an HR manager is to make all employees contribute to the

success of the organization in an ethical and socially responsible way. The society’s well

being, to a large extent depends on its organisations, particularly business organisations.

It must be the endeavour of everybody to ensure success and stability of organizations.



Responsibility is more on the HR manager as it is he who co-ordinates people’s activities

and it is the people who make or mar organizations.

Need for attitudinal change in PSUs

While success of organizations in general is vital for society’s well being, public sector undertakings tell a different story. It may be asserted that although most PSUs are strong

in manpower, R&D, systems, manuals, principles, and procedures, they fail to use it and

incur losses.

Behind this phenomenon is the role of the personnel. Employees of loss making units

have wrong attitudes towards their work and their organizations. Consequences are low

productivity, absenteeism, militancy and other similar evils.

These issues must be addressed by the HR manager.

Renewed focus on people

The good news for HR managers is that there is renewed focus on people in

organizations. For too long, managers believed in structures, strategies and systems. But

over the last decade, technological, competitive and market changes have eroded its

effectiveness.

The top management must therefore nurture the ideas of the frontline engineers and sales

representatives, encourage interpersonal relationship and self monitoring and develop

personal communications with key people.

The role of HR manager in the unfolding scenario is clear. He or she must make the focuson people justifiable and sustainable.

Managing the mangers

Managing the managers is another challenge before the HR manager. Mangers believe

they are a class apart and expect remuneration which may be unreasonable and highly

expensive.

Managers instead of managing their allotted functions, assume the role of the employer and fire those whom they feel are too smart.

Yet, managers are the individuals who run the show and an organisation cannot do

without them Protect the interests of weaker sections

Another important challenge for HRM is to protect the interest of weaker sections of the

society. The dramatic increase of women, minorities and other backward communities in

the workforce has resulted in the need for organisations to re-examine their policies,

practices and values.



2) What is the role of Strategic HRM?

The role of HRM in formulating and implementing strategies is crucial. It is the people

who formulate and implement strategies and the people are supplied by HRM. Role in Strategy Formulation :

HRM is in a unique position to supply competitive intelligence that may beuseful in strategy formulation. Details regarding advanced incentive plans used by

competitors, opinion survey data from employees that give information about customer

complaints and information about pending legislation like labour laws or mandatory

health insurance are some examples.

The strengths and weaknesses of a company’s human resources can have a

determining effect on the viability of a company’s strategic options. A company may

build its new strategy around a competitive advantage stemming from its human

resource.

Role in Strategy Implementation:

HRM supplies the company with a competent and willing workforce, which is

responsible for executing strategies. HRM supports strategy implementation in other

ways too. For example, human resource today is heavily involved in the execution of the

company’s downsizing and restructuring strategies, through out placing employees,

instituting performance-linked pay plans, reducing health-care costs and retraining

employees. And, in an increasingly competitive global market place, instituting HR

practices that build employee commitment can help improve an organisation’s

responsiveness.

A well-designed strategy can fail if sufficient attention is not paid to the HR dimension. HR problems that arise when executing strategies may be traced to one of

the following 3 causes:

a. Disruption of social and political structures

b. Failure to match individuals’ aptitudes with implementation tasks; and

c. Inadequate top-management support for implementation activities.

Strategic implementation poses a threat to many managers and employees in an

organisation. Guidelines which help ensure that human relationships facilitate but not

disrupt strategy implementation include open communication, co-opting as manymanagers and employees in the strategic management process and matching managers

with strategies through transfers, promotions, job enlargement and job enrichment.

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