HRM NOVEMBER 2009

Section I Q. 1) Explain the concepts in brief:- (10 marks)

a) Industrial Relations

Ans. According to ILO, industrial relations comprise relationships between the State on the one

hand and the employers’ and employees’ organizations on the other hand and the relationship

among the occupational organizations themselves.

The basic objective about industrial relations is to bring about good and healthy relations

between the employers and employees. The other objectives include – i) Avoiding industrial

conflicts and developing harmonious labour management relations ii) safeguarding the interests

of labour and management through mutual understanding and goodwill among all sections

connected with production process. Iii) introducing the concept of industrial democracy at the

level of industrial unit.

b) Personnel Manual

Ans. “A document/booklet which contains the details of an organization is called personnel

policy manual”.

It is a comprehensive document which serves as a guide to employee supervisor’s manager’s etc.

They can refer to it as & when required dealing with personnel problems or else.

A personnel policy manual is a companion volume to the employee handbook. The personnel

policy manual is written primarily for the information & guidance of managers. They are

supposed to know the personnel policy & administrative decisions relating to such policies.

c) Assessment Centre

Ans. This method of appraising was first applied in the German Army in 1930. Later, business

and industrial houses started using this method. This is not a technique of performance appraisal

by itself. In fact it is a system or organisation, where assessment of several individuals is done by

various experts by using various techniques. It includes techniques like in basket, role playing,

case studies, stimulation exercises, structured in sight, transactional analysis etc.

d) Downsizing

Ans. Downsizing necessarily means reducing work force to an optimal level depending upon the

business conditions and organizational needs. It is said that an organization should be rightly

staffed ie. It should not be overstaffed and or understaffed. There are broadly following methods

used to downsize the workforce as mentioned below.

i) Retrenchment, ii) Layoffs, iii) VRS

e) ESOPs

Ans. Under the scheme of Employee Stock Option, employees including managers of a company

are offered an option to buy shares (stock) of the company at concessional rates. The amount of

stock an employee can buy is limited and is dependent upon his pay / wage level. Generally

employees are restricted from selling the stock for some time. This restriction period is called as

lock-in-period. The cost of shares is wholly deducted from the pay. Stock option plans are useful

for both the employees and the company because:

(1) Employees have an extra financial interest in the success of the company. Employees will

gain when the company performs well and the stock market price of its shares goes up.

(2) Employees have to invest some of their money to buy stock options.

(3) Employees can build up a sizeable capital for themselves through regular purchase of stock

options.

Section II

Q. 3) What is Human Resource Management? What are its objectives? – (10 marks)

Ans. Definition 1 – Integration

―HRM is a series of integrated decisions that form the employment relationships; their quality

contributes to the ability of the organizations and the employees to achieve their objectives.‖

Definition 2 – Influencing

―HRM is concerned with the people dimensions in management. Since every organization is

made up of people, acquiring their services, developing their skills, motivating them to higher

levels of performance and ensuring that they continue to maintain their commitment to the

organization are essential to achieving organizational objectives. This is true, regardless of the

type of the organization – government, business, education, health, recreational, or social

action.‖

Definition 3 – Applicability

―HRM planning, organizing, directing and controlling of the procurement, development,

compensation, integration, maintenance and separation of human resources to the end that

individual, organizational and social objectives are accomplished.‖

MEANING OF HRM: -

HRM is management function that helps managers to recruit, select, train and develop members

for an organization. Obviously HRM is concerned with the people’s dimensions in organizations.

HRM refers to set of programs, functions, and activities designed and carried out

Core elements of HRM

People: Organizations mean people. It is the people who staff and manage organizations.

Management: HRM involves application of management functions and principles for

acquisitioning, developing, maintaining and remunerating employees in organizations.

Integration & Consistency: Decisions regarding people must be integrated and

consistent.

Influence: Decisions must influence the effectiveness of organization resulting into

betterment of services to customers in the form of high quality products supplied at

reasonable cost.

Applicability: HRM principles are applicable to business as well as non-business

organizations too, such as education, health, recreation and the like.

OBJECTIVES OF HRM: -

1. Societal Objectives: To be ethically and socially responsible to the needs and challenges

of the society while minimizing the negative impact of such demands upon the

organization.

2. Organizational Objectives: To recognize the role of HRM in bringing about

organizational effectiveness. HRM is only means to achieve to assist the organization

with its primary objectives.

3. Functional Objectives: To maintain department’s contribution and level of services at a

level appropriate to the organization’s needs.

4. Personal Objectives: To assist employees in achieving their personal goals, at least in so

far as these goals enhance the individual’s contribution to the organization. This is

necessary to maintain employee performance and satisfaction for the purpose of

maintaining, retaining and motivating the employees in the organization.

FUNCTIONS OF HRM ALONG WITH OBJECTIVES

HRM Objectives Supporting HRM Functions

Social Objectives - Legal Compliance

Benefits

Union Management Relations

Organizational Objectives - Human Resource Planning

Employee Relations

Recruitment & Selection

Training & Development

Performance Appraisals

Placement & Orientation

Employee Assessment

Functional Objectives- Performance Appraisals

Placement & Orientation

Employee Assessment

Personal Objectives - Training & Development

Performance Appraisals

Placement & Orientation

Compensation

Employee Assessment

Managerial Functions of HRM

1. Planning: Plan and research about wage trends, labor market conditions, union demands

and other personnel benefits. Forecasting manpower needs etc.

2. Organizing: Organizing manpower and material resources by creating authorities and

responsibilities for the achievement of organizational goals and objectives.

3. Staffing: Recruitment & Selection

4. Directing: Issuance of orders and instructions, providing guidance and motivation of

employees to follow the path laid-down.

5. Controlling: Regulating personnel activities and policies according to plans.

Observations and comparisons of deviations

Operational Functions of HRM

1. Procurement: Planning, Recruitment and Selection, Induction and Placement

2. Development: Training, Development, Career planning and counseling.

3. Compensation: Wage and Salary determination and administration

4. Integration: Integration of human resources with organization.

5. Maintenance: Sustaining and improving working conditions, retentions, employee

communication

6. Separations: Managing separations caused by resignations, terminations, lay offs, death,

medical sickness etc.

SCOPE OF HRM: -

From Entry to the Exit of an employee in the organization

Scope of HRM can be described based on the following activities of HRM. Based on these

activities we can summarize the scope of HRM into 7 different categories as mentioned below

after the activities. Lets check out both of them.

HRM Activities –

1. HR Planning

2. Job Analysis

3. Job Design

4. Recruitment & Selection

5. Orientation & Placement

6. Training & Development

7. Performance Appraisals

8. Job Evaluation

9. Employee and Executive Remuneration

10. Motivation

11. Communication

12. Welfare

13. Safety & Health

14. Industrial Relations

7 Categories of Scope of HRM

1. Introduction to HRM

2. Employee Hiring

3. Employee and Executive Remuneration

4. Employee Motivation

5. Employee Maintenance

6. Industrial Relations

7. Prospects of HRM

ROLE OF HRM

1. Advisory Role: HRM advises management on the solutions to any problems affecting

people, personnel policies and procedures. a.Personnel Policies: Organization Structure,

Social Responsibility, Employment Terms & Conditions, Compensation, Career &

Promotion, Training & Development and Industrial Relations.b.Personnel Procedures:

Relating to manpower planning procedures, recruitment and selection procedures, and

employment procedures, training procedures, management development procedures,

performance appraisal procedures, compensation procedures, industrial relations

procedures and health and safety procedures.

2. Functional Role: The personnel function interprets and helps to communicate personnel

policies. It provides guidance to managers, which will ensure that agreed policies are

implemented.

3.Service Role: Personnel function provides services that need to be carried out by full time

specialists. These services constitute the main activities carried out by personnel departments and

involve the implementation of the policies and procedures described above.

Q. 4) Define the term ‘Job Evaluation’. Explain the process of Job evaluation. – (10 marks)

Ans. Job evaluation deals with money and work. It determines the relative worth or money value

of jobs. The International Labour Organisation defined job evaluation as ―an attempt to

determine and compare demands which the normal performance of a particular job makes on

normal workers without taking into account the individual abilities or performance of the

workers concerned‖. Wendell L. French defined job evaluation as ―a process of determining the

relative worth of the various job within the organisation, so that different wages may be paid to

jobs of different worth‖. Job evaluation is defined as ―the overall activity of involving an

orderly, systematic method and procedure of ranking, grading and weighing of jobs to determine

the value of a specific job in relation to other jobs‖. British Institute of Management (1970)

defined job evaluation as, ―the process of analysing and assessing the content of jobs, in order to

place them in an acceptable rank order which can then be used as a basis for a remuneration

system. Job evaluation, therefore, is simply a technique designed to assist in the development of

new pay structures by defining relatives between jobs on a consistent and systematic basis‖.

Thus, job evaluation may be defined as a process of determining the relative worth of jobs,

ranking and grading them by comparing the duties, responsibilities like skill, knowledge of a job

with other jobs with a view to fix compensation payable to the concerned job holder.

Job Evaluation involves determination of relative worth of each job for the purpose of

establishing wage and salary differentials. Relative worth is determined mainly on the basis of

job description and job specification only. Job Evaluation helps to determine wages and salary

grades for all jobs. Employees need to be compensated depending on the grades of jobs which

they occupy. Remuneration also involves fringe benefits, bonus and other benefits. Clearly

remuneration must be based on the relative worth of each job. Ignoring this basic principle

results in inequitable compensation. A perception of inequity is a sure way of de-motivating an

employee.

Job evaluation is a process of analyzing and assessing the various jobs systematically to ascertain

their relative worth in an organization.

Jobs are evaluated on the basis of content, placed in order of importance. This establishes Job

Hierarchies, which is a purpose of fixation of satisfactory wage differentials among various jobs.

Jobs are ranked (not jobholders)

Objectives of Job Evaluation-

The objective of job evaluation is

1.to provide a standard procedure for fixing salary

job evaluation aims to provide a standard procedure for fixing salary of employees

doing a particular job and belonging to a particular level in the organization . This

is required so that the employee is remunerated according to his capabilities and

therefore feels satisfied on the job

2. to determine the rate of pay:

Job evaluation determines how much to pay the employee according to his efforts in

the organization . the rate of pay is decided by looking into various factors on the

job .

3. to ensure that wages and salaries are paid according to the qualification and work

Job evaluation recognizes the importance of qualification of the employee and the

efforts put in by him on the job and decides the salary based on these factors. This

ensures that the employees are judged on similar factors and there is no bias.

4. to decide salary using scientific methods of evaluation:

The job evaluation methods are scientific in nature, i.e they have been decided after

looking into the issues concerned with a scientific approach. Thus it is obvious that

the results too will be very much appropriate. Job evaluation is not based on

personal bias or personal choice.

5. Involves a fair study of the job factors to avoid ambiguity

Job evaluation studies the job factors in a fair and just manner so that ambiguity

can be avoided and the factors for judging the job are very clear and accurate. This

gives more credibility to the entire job evaluation processScope of Job Evaluation

The job evaluation is done for the purpose of wage and salary differentials, demand for and

supply of labor, ability to pay, industrial parity, collective bargaining and the like.

Process of Job Evaluation: 1. Defining objectives of job evaluation

a. Identify jobs to be evaluated (Benchmark jobs or all jobs)

b. Who should evaluate job?

c. What training do the evaluators need?

d. How much time involved?

e. What are the criteria for evaluation?

f. Methods of evaluation to be used

2. Wage Survey

3. Employee Classification

4. Establishing wage and salary differentials.

Methods of Job Evaluation

Analytical Methods

• Point Ranking Methods: Different factors are selected for different jobs with accompanying

differences in degrees and points.

• Factor Comparison Method: The important factors are selected which can be assumed to be

common to all jobs. Each of these factors are then ranked with other jobs. The worth of the job is

then taken by adding together all the point values.

Non-Analytical Methods

• Ranking Method: Jobs are ranked on the basis of its title or contents. Job is not broken down

into factors etc.

• Job Grading Method: It is based on the job as a whole and the differentiation is made on the

basis of job classes and grades. In this method it is important to form a grade description to cover

discernible differences in skills, responsibilities and other characteristics.

Pitfalls of Job Evaluation:

• Encourages employees on how to advance in position when there may be limited opportunities

for enhancement as a result of downsizing.

• It promotes internal focus instead of customer orientation

• Not suitable for forward looking organizations, which has trimmed multiple job titles into two

or three broad jobs.

Q. 5) What is the meaning of ‘Induction’? Explain the steps in Induction Programme. – (10

marks)

Ans. Meaning-

Induction or orientation is the task of introducing the new employees to the organisation and its

policies, procedures and rules. At FMC and its subsidiaries, all the new employees are given

induction training program so that they will become familiar to their working conditions and also

the employees in the particular unit. This is given by the respective departments. All the queries

of the new employees are answered during this induction program.

The induction programme consists of the following:

• Organisation

1. Company’s history

2. Employee’s title and department

3. Executives of the company

4. Probationary period

5. Policy and rules

6. Codes of conduct

7. Safety measures

• Employee benefits

1. Salary

2. Holidays (festival and national)

3. Training

4. Counselling

5. Insurance, retirement policies and other benefits

• About the job

1. Tasks

2. Job location

3. Safety measures

4. Job objectives

5. Shifts

• Introductions

1. To department head

2. To co- workers

3. To trainers

Orientation/ Induction Programme-

A firm needs to make four strategic choices before designing its orientation programme. They

are-

i) Formal or informal

ii) Individual or collective

iii) Serial or disjunctive

iv) Investiture or divestiture

i) Formal ---- Informal

ii) Individual -- Collective

iii) Serial --- Disjunctive

iv) Investiture -- Divestiture

i) Formal or Informal –

In informal orientation, new hires are directly put on the jobs and they are expected to

acclimatize themselves with the work and the organization. In contrast, orientation can be formal

too. In formal orientation, the management has a structured programme which is executed when

new employees join the organization.

The choice between formal and informal orientation will depend on the management’s goals.

The more formal the programme, the greater the likelihood that the new hire will acquire a

known set of standards. That is, the new member is more likely to think and act like an

executive, a management trainee, or a management professor. But an informal programme is

desirable to maintain an individual differences. Innovative ideas to solve organizational problems

and healthy questioning of the status quo are likely to be generated by a person who has been

inducted informally.

ii) Individual or Collective-

Another choice to be made by the management is whether the new hires should be inducted

individually or in groups. The individual approach is likely to develop far less homogeneous

views than collective orientation. Individual orientation is more likely to preserve individual

differences and perspectives. Orienting each person separately is an expensive and time-

consuming process.

Collective orientation of the new hires solves the problems stated above. Most large

organizations tend to have the collective orientation approach. But small firms, which have fewer

new appointees to socialize, frequently use the individual approach. Individual socialization is

popular even with large firms when they hire executives whose number is small.

iii) Serial or Disjunctive-

Orientation becomes serial when an experienced employee inducts a new hire. The experienced

employee acts as a tutor and model for the new hire. When new hires do not have predecessors

available to guide them or to model their behavior upon, the orientation becomes disjunctive.

Each option has its own advantages and pitfall. Serial orientation maintains traditions and

customs. Consistent use of this strategy will ensure a minimum amount of change within the firm

over time. Further, if the experienced employee is frustrated and apathetic towards work and the

organization, it is likely that he or she would pass on the same to the new hire.

iv) Investiture or Divestiture-

Investiture orientation seeks to ratify the usefulness of the characteristics that the person brings

to the new job. Most high-level appointments follow this approach.

The final strategic choice relates to the need for maintaining or dismantling of the new hire’s

identity. Investiture orientation seeks to ratify the usefulness of the characteristics that the person

brings to the new job. Most high-level appointments follow this approach, because a person is

appointed as an executive on the basis of what he or she can bring to the organization. The new

hires are given freedom to select their office furnishings and subordinates and to make other

decisions that will reflect on their performance.

Q. 6)”Participative management results in improved performance”. Justify. – (10 marks)

Ans. The concept of Workers Participation Management is considered as a mechanism where

Workers have a say in the decision making process of an enterprise. The concept crystallizes the

Concept of industrial democracy and indicates an attempt on the part of an employer to build his

Employees into a team which works towards the realization of a common objective. It is a

mental and

Emotional involvement of a person in a group situation which encourages him to contribute to

goals

and share responsibilities in them.

The main objective of WPM in management include

- To promote increased productivity for the advantage of the organization, workers and

society at large.

- To provide a better understanding to employees about their role and place in the process of

attainment of organizational goals.

- To satisfy the workers social and esteem needs

- To strengthen labour management co-operation and thus maintaining industrial peace and

harmony.

- To develop social education for effective solidarity among the working community and for

tapping latent human resources.

- An ideological point of view to develop self management in industry

- To build the most dynamic human resource

- To build the nation through entrepreneurship and economic development.

Forms of WPM include works committees, Joint Management councils, Joint Councils and Shop

Councils.

Importance:

Unique motivational power and a great psychological value.

Peace and harmony between workers and management.

Workers get to see how their actions would contribute to the overall growth of the company.

They tend to view the decisions as `their own’ and are more enthusiastic in their

implementation.

Participation makes them more responsible.

o They become more willing to take initiative and come out with cost-saving suggestions and

growth-oriented ideas.

Scope and ways of participation:

One view is that workers or the trade unions should, as equal partners, sit with the

management and make joint managerial decisions.

The other view is that workers should only be given an opportunity, through their

representatives, to influence managerial decisions at various levels.

In practice, the participation of workers can take place by one or all the methods listed below:

o Board level participation

o Ownership participation

o Complete control

o Staff or work councils

o Joint councils and committees

o Collective Bargaining

o Job enlargement and enrichment

o Suggestion schemes

o Quality circles

o Empowered teams

o TQM

o Financial participation

Participation at the Board level:

This would be the highest form of industrial democracy.

The workers’ representative on the Board can play a useful role in safeguarding the interests of

workers.

He or she can serve as a guide and a control element.

o He or she can prevail upon top management not to take measures that would be unpopular with

the employees.

o He or she can guide the Board members on matters of investment in employee benefit schemes

like housing, and so forth.

The Government of India took the initiative and appointed workers’ representatives on the

Board of Hindustan Antibiotics (Pune), HMT (Bangalore), and even nationalized banks.

The Tatas, DCM, and a few others have adopted this practice.

Problems associated with this method:

o Focus of workers’ representatives is different from the focus of the remaining members of the

Board.

o Communication and subsequently relations between the workers’ representative and the

workers suffers after the former assumes directorship.

He or she tends to become alienated from the workers.

o As a result, he or she may be less effective with the other members of the Board in dealing

with employee matters.

o Because of the differences in the cultural and educational backgrounds, and differences in

behaviour and manners, such an employees’ representative may feel inferior to the other

members, and he or she may feel suffocated. Hence, his or her role as a director may not be

satisfying for either the workers or the management.

o Such representatives of workers’ on the Board, places them in a minority. And the decisions of

the Board are arrived at on the basis of the majority vote.

Participation through ownership:

This involves making the workers’ shareholders of the company by inducing them to buy

equity shares.

o In many cases, advances and financial assistance in the form of easy repayment options are

extended to enable employees to buy equity shares.

Examples of this method are available in the manufacturing as well as the service sector.

Advantage:

o Makes the workers committed to the job and to the organization.

Drawback:

o Effect on participation is limited because ownership and management are two different things.

Participation through complete control:

Workers acquire complete control of the management through elected boards.

The system of self-management in Yugoslavia is based on this concept.

Self-management gives complete control to workers to manage directly all aspects of

industries through their representatives.

Advantages:

o Ensures identification of the workers with their organization.

o Industrial disputes disappear when workers develop loyalty to the organization.

o Trade unions welcome this type of participation.

Conclusion: Complete control by workers is not an answer to the problem of participation

because the workers do not evince interest in management decisions.

Participation through Staff and Works Councils:

Staff councils or works councils are bodies on which the representation is entirely of the

employees.

There may be one council for the entire organization or a hierarchy of councils.

The employees of the respective sections elect the members of the councils.

Such councils play a varied role.

o Their role ranges from seeking information on the management’s intentions to a full share in

decision-making.

Such councils have not enjoyed too much of success because trade union leaders fear the

erosion of their power and prestige if such workers’ bodies were to prevail.

Participation through Joint Councils and Committees:

Joint councils are bodies comprising representatives of employers and employees.

o This method sees a very loose form of participation, as these councils are mostly consultative

bodies.

Work committees are a legal requirement in industrial establishments employing 100 or more

workers.

o Such committees discuss a wide range of topics connected to labour welfare.

o Examples of such committees are welfare committee, safety committee, etc.

o Such committees have not proven to be too effective in promoting industrial democracy,

increasing productivity and reducing labour unrest.

Participation through Collective Bargaining:

Through the process of CB, management and workers may reach collective agreement

regarding rules for the formulation and termination of the contract of employment, as well as

conditions of service in an establishment.

Even though these agreements are not legally binding, they do have some force.

For CB to work, the workers’ and the employers’ representatives need to bargain in the right

spirit.

But in practice, while bargaining, each party tries to take advantage of the other.

This process of CB cannot be called WPM in its strongest sense as in reality; CB is based on

the crude concept of exercising power for the benefit of one party.

o WPM, on the other hand, brings both the parties together and develops appropriate mutual

understanding and brings about a mature responsible relationship.

Participation through Job Enlargement and Job Enrichment:

Excessive job specialization that is seen as a by-product of mass production in industries, leads

to boredom and associated problems in employees.

Two methods of job designing – job enlargement and job enrichment– are seen as methods of

addressing the problems.

o Job enlargement means expanding the job content – adding task elements horizontally.

o Job enrichment means adding `motivators’ to the job to make it more rewarding.

This is WPM in that it offers freedom and scope to the workers to use their judgment.

But this form of participation is very basic as it provides only limited freedom to a worker

concerning the method of performing his/her job.

The worker has no say in other vital issues of concern to him – issues such as job and income

security, welfare schemes and other policy decisions.

Participation through Suggestion Schemes:

Employees’ views are invited and reward is given for the best suggestion.

With this scheme, the employees’ interest in the problems of the organization is aroused and

maintained.

Progressive managements increasingly use the suggestion schemes.

Suggestions can come from various levels.

The ideas could range from changes in inspection procedures to design changes, process

simplification, paper-work reduction and the like.

o Out of various suggestions, those accepted could provide marginal to substantial benefits to the

company.

The rewards given to the employees are in line with the benefits derived from the suggestions.

Participation through Quality Circles:

Concept originated in Japan in the early 1960s and has now spread all over the world.

A QC consists of seven to ten people from the same work area who meet regularly to define,

analyze, and solve quality and related problems in their area.

Training in problem-solving techniques is provided to the members.

QCs are said to provide quick, concrete, and impressive results when correctly implemented.

Advantages:

o Employees become involved in decision-making, acquire communication and analytical skills

and improve efficiency of the work place.

o Organization gets to enjoy higher savings-to-cost ratios.

o Chances of QC members to get promotions are enhanced.

The Indian Scenario:

o Tried by BHEL, Mahindra and Mahindra, Godrej and Boyce among others.

o Experienced mixed results:

M&M (jeep division) with 76 QCs has experienced favourable results.

• Technical problems got solved.

• Workers got to get out of their daily routine and do something challenging.

Trade unions look at it as:

• A way of overburdening workers, and

• An attempt to undermine their role.

These circles require a lot of time and commitment on the part of members for regular

meetings, analysis, brainstorming, etc.

Most QCs have a definite life cycle – one to three years.

o Few circles survive beyond this limit either because they loose steam or they face simple

problems.

QCs can be an excellent bridge between participative and non-participative approaches.

For QCs to succeed in the long run, the management needs to show its commitment by

implementing some of the suggestions of the groups and providing feedback on the disposition

of all suggestions.

Q. 7) Write short notes on- (Any two) – (10 marks)

a) Job enlargement

Ans. It means expanding the number of tasks, or duties assigned to a given job. Job enlargement

is naturally opposite to work simplification. Adding more tasks or duties to a job does not mean

that new skills and abilities are needed. There is only horizontal expansion. It is with same skills

taking additional responsibilities like extending working hours etc. Job enlargement may involve

breaking up of the existing work system and redesigning a new work system. For this employees

also need to be trained to adjust to the new system. Job enlargement is said to contribute to

employee motivation but the claim is not validated in practice.

Benefits of Job Enlargement: 1. Task Variety

2. Meaningful Work Modules

3. Full Ability Utilization

4. Worker Paced Control

5. Meaningful Performance Feedback

Disadvantages of Job Enlargement 1. High Training Costs

2. Redesigning existing work system required

3. Productivity may not increase necessarily

4. Workload increases

5. Unions demand pay–hike

6. Jobs may still remain boring and routine

Thus, Job Enlargement like job simplification and Job Rotation is also an incentive for

motivation which has been adopted also as a means for motivating people in an organisation. As

against Enrichment, Job Enlargement involves performing a variety of jobs or operations at the

same time., it involves horizontal job loading as compared to a vertical one. Argyris feels that

job enlargement avoids monotony which is a result of high degree of specialisation and division

of labour. A person performs a variety of jobs, as such it removes the dullness associated with

the jobs, thus he remains interested in this variety, however Herzberg feels that merely by giving

an individual a variety of jobs is not enough because the job inherently remains the same, as such

its not motivating, therefore there should be an upgradation of authority and responsibility.

b) Promotion

Ans. A promotion is the appointment of a member to another position, within the same

department or elsewhere in the organization, involving duties and responsibilities of a more

complex or demanding nature and are recognized by a higher pay grade and salary.

A transfer is the appointment of a member to another position within the same department or

elsewhere in the organization, involving duties and responsibilities of a comparable nature and

having a similar pay grade and salary. In certain circumstances, the transfer

may be at a lesser pay grade or salary

A promotion is a move up the organizational ladder; job rotation and transfers are lateral moves;

demotions are downward moves; and layoffs move employees out. Layoffs, in contrast to

dismissals are terminations, sometimes temporary, required for business needs

unrelated to worker behavior or performance. All of these changes bring about shifts in status,

and often in pay, of the employees involved.

Seniority vs. Merit in Promotions

Seniority is an employee’s length of service in a position, job grouping, or farm operation. An

individual who has worked on a farm for three years has more seniority than one who has

worked for two.Merit, in contrast, refers to "worth" or "excellence." Merit is more difficult to

measure than seniority. In the context of promotion, it relates to relevant qualifications as well as

effectiveness of past

performance.

Promotion by seniority

In a straight seniority system—where the only factor in allocating jobs is length of service—a

worker would enter the organization at the lowest possible level and advance to higher positions

as vacancies occur. All prospective farm supervisors and managers would work their way up

through the ranks.. In a seniority system, length of

service is the chief criteria for moving up the ladder.

More typically, seniority counts only within specified job groups. Some groups might contain

only one job classification, others several. All managers, for instance, would have once worked

as foremen. The benefits and disadvantages of using seniority in promotion decisions are

summarized in the following Figure . The most obvious

strength is its undisputed objectivity. Growers may deviate from a system based purely on

seniority in order to avoid some of its inherent limitations. Seniority systems tend to reward

loyalty and promote cooperation—albeit not excellence.

Promotion by merit

Promotions based on merit advance workers who are best qualified for the position, rather than

those with the greatest seniority. When present employees are applying for a position, a worker’s

past performance is also considered. Effective performance appraisal helps build trust in the

system

Merit is not easy to define and measure—it often requires difficult subjective evaluations. At

some point, someone has to make a judgment about an employee’s relative merit. Employees

may find it difficult to make a distinction between merit—because it is so hard to measure in an

objective way—and favoritism.

Seniority-based promotions

Advantages

Employees get to experience many jobs on the way up the

promotional ladder, provided that they stay long enough and openings develop. Jobs can be

grouped into different ladders such that experience on one job constitutes good training for the

next. Cooperation between workers is generally not hindered by competition for subjectively

determined promotions. Workers need not seek to gain favor with supervisors (through

nonproductive means) to obtain advancement. If, for example, a supervisor’s direction violates

the interests or policy of the ranch,

employees would have less fear of reprisal for not following it.

Disadvantages

Some employees may not be able or want to do certain jobs into which a strict seniority system

would propel them. (Not all tractor drivers would make good foremen, or would like to be

foremen.)

Employees should be able to opt not to accept an opportunity for promotion. Ambitious workers

may not be willing to "wait their turn" for higher level jobs that they want. Employee motivation

to work as well as possible is not reinforced. Immigrant or ethnic groups new to agriculture, and

women, would be underrepresented in higher levels for a long time (since they are the last hired

and have least seniority). Employers would tend to hire overskilled people at entry level, so they

have the capacity for promotion.

Merit-based promotions

Advantages

Employee job-related abilities can be better matched with jobs to be filled. Motivated and

ambitious employees can be rewarded for outstanding performance.

Performance is fostered. People can be hired for a specific job, rather than for ability to be

promotable.

Disadvantages

Merit and ability are difficult to measure in an objective, impartial way. Supervisors may reward

their favorites, rather than the best employees, with high merit ratings.

Disruptive conflict may result from worker competition for merit ratings. Unlawful

discrimination may enter into merit evaluations.

c) Transfer

Ans.

Meaning:

In business organizations, employees are shifted from one post to the other or from one

department to other or one unit/ branch/ plant of the company to the other. This is called as job

transfer of transfer of employees. Such transfers are quite common in case of Banks, government

department, manufacturing companies and other business organizations.

A transfer is defined as, “a change in job where the new job is substantially equal to the old

in term of pay, status and responsibilities.”

Transfers of employees do cerate some resentment from concerned employees. This is

natural as transfers may create certain personal and family problems. In addition, an employee

has to adjust with new situation. Finally it may be pointed out that transfer is neither promotion

nor demotion but merely a horizontal or lateral movement of an employee from one job, to

another at same other place where the salary, status and responsibilities are more or less the

same.

Reasons of Job Transfer

1. Variation in the volume of work: Transfers are necessary due to variation in the volume

of work in different department/ sections. Shortage of employees or increase in the work

load in one department leads to transfer of employees.

2. Providing training to employee: Transfers are made for providing opportunities to

employees for training and development.

3. Rectification of poor placement: Transfers are necessary for the rectification of poor

placement made in the initial period. Similarly, transfers are necessary in order to utilize

the service of an employee in the best possible manner.

4. Satisfied the personal need of employee: Transfers are necessary satisfy the personal

needs (Personal Difficulties) of the employees. They include family problems, sickness,

and education of children and so on. Such transfers take place especially among female

employees.

5. Meeting mutual need of employees: Transfers are, sometimes, made in order to meet

the mutual needs of to employees. It is a type of mutual exchange and is usually accepted

by the management.

6. Meeting Organizational needs: transfers are necessary to meet the organizational needs

developed out of expansion programmes or fluctuation in work requirements or changes

in the organizational structure or dropping of existing product lines. For example,

experienced workers and supervisors are transfer to new plants/ factories in order to

manage the work smoothly.

7. Solution to poor performance: transfers are, sometimes, made when the worker fail to

perform his job efficiently. He is transferred to and new place or post and is given an

opportunity to improve his performance at a new place. Here, transfer is treated as a deter

alternative to outright dismissal.

8. Avoiding fatigue and monotony: Transfers are made of avoiding fatigue and monotony

of work. The productivity of an employee may decline due to monotony of his or her job.

To break his monotony, the employee is transferred.

9. Removing poor personal relations: the relations between the workers and his

supervisor may not be smooth and cordial. This may affect the work of department. One

method to solve the problem is to transfer the worker that department. This transfer may

be necessary for removal of the incompatibilities between the worker and his/her boss or

between one worker and the other.

10. Providing relief and to punish employees: Transfers may be made in order to give

relief to employees who are over burdened or are working under heavy risk or tension

over a long period. Similarly, transfers are made as a disciplinary action for serious

mistakes on the part of employees. This practice is widespread mainly in government

offices and police department.

d) Characteristics of today’s workforce

Ans. FUNCTIONS OF HRM

Managerial Functions Operative Functions

Planning Employment

Organising Human Resources Development

Directing Compensation

Controlling Human Relations

Industrial Relations

Recent Trends in HRM

1. Managerial Functions: Managerial functions of personnel management involve planning,

organizing, directing and controlling.

Planning: It is pre-determined course of action. Planning pertains to formulating strategies of

personnel programmes and changes in advance that will contribute to the organizational goals. It

involves planning of human resources, requirements, recruitment, selection, training etc. It also

involves forecasting of personnel needs, changing values, attitudes and behaviour of employees

and their impact on the organization.

Organising : An organization is a means to an end. It is essential to carry out the determined

course of action. An organization is a structure and a process by which a co-operative group of

human beings allocates its task among its members, identifies relationships and integrates its

activities towards a common objective. Complex relationships exist between the specialized

departments and the general departments as many top managers are seeking the advice of the

personnel manager. Thus an organization establishes relationships among the employees so that

they can collectively contribute to the attainment of company goals.

Directing : The next logical function after completing planning and organizing is the execution

of the plan. The basic function of personnel management at any level is motivating,

commanding, leading and activating people. The willing and effective co-operation of employees

for the attainment of organizational goals is possible through proper direction. Tapping the

maximum potentialities of the people is possible through motivation and command. Co-

ordination deals with the task of blending efforts in order to ensure successful attainment of an

objective.

Controlling: After planning, organizing and directing various activities of personnel

management, the performance is to be verified in order to know that the personnel functions are

performed in conformity with the plans and directions of an organization. Controlling also

involves checking, verifying and comparing of the actuals with the plans, identification of

deviations if any and standards through controls. Auditing training programmes, analyzing

labour turnover records, directing morale surveys, conducting separate interviews are some of

the means of controlling the personnel management function and making it effective.

2. Operative Functions: The operative functions of human resources management are related to

specific activities of personnel management viz, employment, development, compensation and

relations. All these functions are interacted with managerial functions.

Employment: It is the first operative function of Human Resource Management. Employment is

concerned with securing and employing the people possessing the required kind and level of

human resources necessary to achieve the organizational objectives. It covers functions such as

job analysis, human resource planning, recruitment, selection, placement, induction and internal

mobility.

Human Resource Development: It is a process of improving, molding and changing the skills,

knowledge, creative ability, aptitude, values, commitment etc., based on present and future job

and organizational requirements. It includes Performance Appraisal, Training, Management

Development, Career Planning and Development, Internal Mobility, Transfer, Promotion,

Demotion, Change and Organisational Development.

Compensation: It is a process of providing adequate, equitable and fair remuneration to the

employees. It includes job evaluation, wage administration and salary administration, incentives,

bonus, fringe benefits, social security measures etc.

Human Relations: Practicing various human resources policies and programmes like

employment, development and compensation and interaction among employees create a sense of

relationship between the individual worker and management, among workers and trade unions

and the management. It is a process of interaction among human beings. Human relations is an

rear of management in integrating people into work situations in a away that motivates them to

work together productively co-operatively and with economic, psychological and social

satisfaction. It includes:

- Understanding and applying the models of perception, personality, learning, intra and

inter personnel relations, intra and inter group relations.

- Motivating the employees

- Boosting employee morale

- Developing the communication skills

- Developing the communications skills

- Redressing employee grievances properly and in time by means of a well-formulated

grievance procedure.

- Handling disciplinary cases by means of an established disciplinary procedure.

- Counseling the employees in solving their personal, family and work problems and

releasing their stress. Strain and tensions.

- Improving quality of work life of employees through participation and other means.

Industrial Relations: Industrial relations refer to the study of relations among employees,

employer, government and trade unions. Industrial relations include:

- Indian labour market

- Trade unionism

- Collective bargaining

- Industrial conflicts

- Worker’s participation in management and

- Quality circles