Subject Wise Exam Handout

Subject Name : Human Resource Management

Faculty Name : Dr.R.Durga Prasad
M. Vijaya Lakshmi
Ms.Swetha
Academic Year : 2019-2020
Year/Semester : I/II
Section : A,B and C
Faculty Sign : ____________________________________
HOD Sign : ____________________________________
 Unit-1

1. Define HRM. Explain various functions of a HR Manager.

Introduction An organization is made up of 4 resources Men –Living, Material,

Money and Machinery. It is the human that makes use of non -human
resources.

Definition  Process of making the efficient and effective use of Human

The field of Resources so that the set goals are achieved”.
management which  “Personnel management or say HRM is the planning,
has to do with organizing, directing or controlling of the procurement,
planning, organizing, development, compensation, integration, maintenance &
directing, and separation of HR to the end that individual, organizational &
controlling the social objectives are achieved.” Flippo
functions of
procuring,
developing,
maintaining and
utilizing a labor
force” [procure,
develop and
maintain].
Job Analysis
Functions
 Process of Collecting and Studying information relating to the
 Job Analysis
operations and responsibilities of a specific job.
 Manpower
 Determination Of Tasks which comprise the job and of skills,
Planning
knowledge, abilities and responsibilities required of the
 Recruitment
worker for a successful performance and which differentiates
and Selection
one job from all others.
 Training and
 Products Of Job Analysis are Job Description & Job
Development
Specification
 Performance
 Determining the duties/ positions and the characteristics of
appraisal
people to hire for them.
 Compensation
management
 Managing
Industrial
Relations
 Human resource Planning
Human resource
Planning HRP is a process by which an organisation ensures that it has the
right number & kind of people at the right place and at the right time,
 The process of capable of effectively and efficiently completing those tasks that help
Deciding what positions the organisation achieve its overall objectives.
the firm will and how to
fill them.  The process of forecasting the supply and demand for human
resources within an organisation and developing action plans for
aligning the two.

Recruitment and Selection

.Recruitment and
Selection Recruitment can be defined as searching for and obtaining a pool of
potential candidates with the desired knowledge, skills and
Recruitment can be experience to allow an organisation to select the most appropriate
defined as searching for people to fill job vacancies against defined position descriptions and
and obtaining a pool of specifications.
potential candidates with
the desired knowledge, The purpose of the recruitment process is to find the widest pool of
skills and experience to applicants to provide the greatest opportunity to select the best people
allow an organisation to for the required roles in an organisation.
select the most
Acquiring the best applicants for a role can be a competitive
appropriate people to fill
advantage for an organisation whereas ineffective recruitment and
job vacancies against
selection can result in enormous disruption, reduced productivity,
defined position
interpersonal difficulties and interruptions to operations, customer
descriptions and
service and long term costs.
specifications.
Selection
Selection
Once a pool of candidates has been identified through the recruitment
The purpose of the
process the most appropriate candidate, or candidates are identified
selection process is to
through a selection process including but not limited to interviewing,
ensure that the best
reference checking and testing.  .
person or people are
appointed to the role or
roles using effective,
fair and equitable
assessment activities.
Training Training
It is the act of It is an attempt to improve current or future employee performance by
increasing the increasing an employee’s ability to perform through learning, usually
knowledge and skill of by changing the employee’s attitude or increasing his or her skills and
an employeefor doing a knowledge.
particular job.

Performance Performance appraisal

appraisal Performance Appraisal (PA) refers to all those procedures that are
It is a method of used to evaluate the
evaluating the behavior  Personality
of employees in the
workspot  Performance

 Potential of its group members.

Compensation Compensation management
management
Providing monetary value to employees in exchange for work
performed.May achieve several purposes like assisting in recruitment,
A systematic approach job performance, and job satisfaction.
to providing value to
employees in exchange
for work performance.

Managing Industrial relations

Managing Industrial
relations Industrial relations encompasses ‘the processes of regulation and
control over workplace relations, the organisation of tasks, and the
relations between employers and their representatives, and employees
and their representatives, and is the sum of economic, social and
political interactions in workplaces where employees provide manual
and mental labour in exchange for rewards allotted by employers, as
well as the institutions established for the purpose of governing
workplace relations’

2.What is Job analysis? What are the various methods used for
collecting data in job analysis?
 Job Analysis
Definition  Determination Of Tasks which comprise the job and of skills,
Process of Collecting knowledge, abilities and responsibilities required of the
and Studying worker for a successful performance and which differentiates
information relating to one job from all others.
the operations and  Products Of Job Analysis are Job Description & Job
responsibilities of a Specification
specific job.  Determining the duties/ positions and the characteristics of
people to hire for them.

Job Analysis Process:

Process

Sources of Gathering Information

1. Interviews

2. Questionnaires

3. Observations

4. Diary Logs

Interview Guidelines:

1. The Job Analyst & Supervisor should work together to

identify which employees know their job best.
 2. Establish rapport with interviewee.

3. Follow a structured Guidelines or Checklist that lists

questions and leaves space for answers.

4. When duties are not performed in a regular manner, ask

employee to list his duties in order of importance.

5. Review and verify the data after the interview.

Collection of Data:

Who Collects- On-the-job Employees, Supervisors, Consultants /

Trade Job Analyst

What to Collect - Physical & Mental activity involved

- Each task essential to achieve overall result

- Skill / Educational factor needed for the job

How to Collect -- Checklist, Interview, Observation, Participation,

Technical Conference, Diary Method, Quantitative techniques

Areas in which information may be gathered:

 Job title
 Alternative title
 Work performed
 Equipment, Tools & Materials used
 Reports & records made
 Relation of the job to other jobs
 Education & experience required
 Physical, Mental& Visual effort required
 Responsibility (for equipment, reports, performance) &
duties
 Supervision given & received
 Hazards, Discomfort & Safety.

Job Specifications

A statement showing human traits and experience are required to

do this job well.It shows what kind of person to recruit and for
what qualities that person should be tested.
 Job Description

There is no standard format for writing a job description.

However, most descriptions contain sections that cover:

1. Job Identification

2. Job's Purpose

3. Responsibilities and Duties

4. Job Specifications

Purpose / Use of Job Analysis

 Organisation & Manpower planning

 Recruitment & Selection

 Job Evaluation & Wage, Salary administration

 Job Re-engineering

 Employee Training & Managerial Development

 Performance Appraisal

 Health & Safety

Unit-2

1. What are the various steps involved in selection process?

In typical cases, the selection process starts with the

preliminary interview after which the applications for the
employment are filled by the candidates. The candidates
pass through a number of selection tests, interviews of
employment and background check & references. The
candidates that are successful in all the previous steps get
physical examination test by the company and if the results
are satisfactory, they are selected. There are several internal
& external forces that influence the selection process &
therefore the managers must consider these factors before
making a final decision of selection.

The selection is the process of choosing the most suitable

candidate for the vacant position in the organization. In
other words, selection means weeding out unsuitable
applicants and selecting those individuals with prerequisite
qualifications and capabilities to fill the jobs in the
organization.

Steps in selection process

Following are the standardized steps of the selection process

but some organizations may alter some of these steps in
their selection process.

1. Initial Screening
2. Application blank

3. Pre-employment Testing

4. Interview

5. Background Checks

6. Conditional Job Offer

7. Drug Test/Medical Exam

8. Final Selection Decision

Now each step is discussed one by one.

1. Initial Screening:

Generally the Selection and the Recruitment Process starts

with the initial screening of applicants so that the
unqualified ones are drop out at the initial stage. Initial
screening is helpful to save the time, cost & effort of the
selection committee in the following steps of the selection
process. In this step certain general questions are asked from
the applicants. There are chances that the some applicants
would be unqualified for the job but some of them would be
qualified. So the main purpose of screening of applicants is
to reduce the number of applicants available in the selection
process.

Sources used in the Screening Effort

The main source of initial screening is the curriculum vitae

of the applicant along with the job application. Following
information is included in the above mentioned documents.

 Education & employment History

 Evaluation of character

 Evaluation of job performance

Screening Interviews

Screening interviews are employed to

 To verify the accuracy & validity of the information

given in the curriculum vitae of the applicant.
 The duration of these interviews is quite short.

Advantages of Successful Screening

When the initial screening step become successful, the

removing applicants don not proceed to the next step of the
selection process because they do not meet the minimum
requirements. Secondly the selection costs of the
organization are much reduced through proper screening of
the applicants.

2. Application Blank

The person’s application for employment is formally

recorded in the shape of application blank. In the next step
of the selection process, an application form for the
employment is completed by the prospective applicant. The
information contained in the application blank differ from
one organization to another organization and in job posts, it
may vary even within the same organization. But generally
the informational needs and the requirements of EEO are
covered in the application blank. The historical data from
the candidate can be quickly collected through the
application blanks so that further verification about the
accuracy of the data is carried out.

3. Pre-employment Test

The physical & mental abilities, knowledge, skills, personal

characteristics & other aspects of behavior can be
effectively measured through the pre-employment tests. For
this purpose there are hundreds of test that can measure the
different aspects of human behavior. With the passage of
time, the application of pre-employment test is growing at a
fast rate in the selection process because they can explain
the qualities & skills of applicant clearly. These tests are
more used in the large & public sector organizations.

The advantage of application of tests in the selection process

is that it can ensure the potential & qualified candidate
selection from a pool of applicants for a job.

Characteristics of Well Designed Test

A well designed selection test has the following

characteristics.

 Standardization
 Objectivity

 Norms

 Reliability

 Validity
Kinds of Pre-employment Tests:

As individuals varies on the basis of cognitive abilities, job

knowledge, vocational interests, psycho-motor abilities &
personality etc. So, all these factors are measured through a
set of different pre-employment tests which are as follow.

1.Cognitive Aptitude tests

In this test the ability to learn & perform a job by an

individual is judged. The abilities related to job are as
follow.

 Verbal
 Reasoning

 Numerical

 Perceptual Speed

 Spatial

2.Psycho – motor Abilities Test

In this test, the coordination, strength & dexterity of an

individual is judged. Other abilities related to routine office
jobs & production jobs can also be measured through these
tests.

3.Job knowledge Tests

This test is used to measure the knowledge of the person

about the duties of a particular job.

4.Work Sample Tests

A set of tasks that represent a job are identified in this test

through which the productivity level, ability to face adverse
conditions by the applicants are judged.

5.Vocational Interest test

This test identifies the occupations that are preferred by the
candidate & that can provide him maximum satisfaction.

6.Personality Tests

These tests are not considered to be so reliable & valid as

compared to other pre-employment tests because these tests
require external psychologist who interprets the results of
the tests subjectively.

7. Drug & Alcohol Tests

For the security, productivity & safety of the workplace

drug testing programs are used as pre-employment tests.

4. Job Interviews

In the interview, the interviewer & applicant exchange

information in order to achieve a goal through conversation.
The employment interviews are conducted during the
selection process through proper planning. The pleasant
location of the interviewing place is selected and the
interviewer has the good personality with empathy & ability
to communicate & listen effectively. A job profile must be
prepared on the basis of job description before conducting
interview.

Contents of the Interview

Although the contents of the employment interview varies

from one organization to another & also according to the
nature of job but still following are the essential contents of
the interview.

 Occupational Experience
 Academic Achievement

 Interpersonal Skills

 Personal Qualities
  Organizational Fit

Types of Interviews

The interviews are generally categorized into the following

three types.

1. Unstructured Interview

In unstructured interviews open ended questions are asked

from the applicant in order to perform probing. It is
generally non-directive in nature and applicant is
encouraged to give lengthy answers.

1. Structured Interview

In structured interview, a list of job related questions

associated to particular job are asked from each applicant in
a consistent manner. It is directive or patterned in nature and
includes the following four kinds of questions.

 Situational Questions
 Job Knowledge Questions

 Job-sample simulation Questions

 Worker Requirement Questions

1. Mixed Interview

It is a special kind of structured interview in which specially

designed questions are asked from the applicant to probe his
past behavior in specific situations. It does not include the
self-evaluative & hypothetical questions & inhibits to judge
the personality of the applicant. The candidates are rated on
the basis of their responses in the light of the bench-marked
answer of successful employees.

Methods of Interviewing

Following are the main ways of conducting interviews.

a. One-on-One Interview
 b. Group Interview

c. Board Interview

d. Stress Interview

5. Back Ground Checks

The accuracy of the application form of the candidate is

verified through references & former employer. The
educational, criminal record & legal status to work are
verified. Personal references of applicant are contacted to
confirm the validity & accuracy of the provided
information. Effort is made to know the past behavior of the
employees to that the future behavior can be predicted from
it. Background checks assist the selection committee in
dropping the applicants that have past insubordination
issues, attendance problem, theft or special behavioral
problems. The level of responsibility of the new job directs
the intensity of the background investigation.

6. Conditional Job Offer

After going through all the previous steps of selection

process, there comes the most important step of the selection
process in which the decision of hiring is made. The
applicant that best meets the requirements of the job is
selected. At start conditional job letter is issued which must
be followed by medical exam.

7. Medical Exam

When the conditional job letter is issued the next step of the
selection process starts in which the physical/medical
examination of the selected candidate is conducted. The
medical exam of the candidate is essential to check either he
takes the drugs or not. If he passes the exam, he would be
finally selected for the job.

8. Final Selection Decision

After passing the medical exam by the candidate, the final

 offer for the job is made to the candidate by the relative
department.

2.Explain about different types of tests and interviews used in the selection process.

Introduction The physical & mental abilities, knowledge, skills, personal

characteristics & other aspects of behavior can be
effectively measured through the pre-employment tests. For
this purpose there are hundreds of test that can measure the
different aspects of human behavior. With the passage of
time, the application of pre-employment test is growing at a
fast rate in the selection process because they can explain
the qualities & skills of applicant clearly. These tests are
more used in the large & public sector organizations.

Purpose of tests The advantage of application of tests in the selection process

is that it can ensure the potential & qualified candidate
To ensure the potential & selection from a pool of applicants for a job.
qualified candidate selection from
a pool of applicants for a job.

Characteristics of Well Designed Test

A well designed selection test has the following

characteristics.

 Standardization
 Objectivity

 Norms

 Reliability
Kinds of Pre-employment Tests
 Validity

Kinds of Pre-employment Tests:

 As individuals varies on the basis of cognitive abilities, job
 Cognitive Aptitude tests knowledge, vocational interests, psycho-motor abilities &
personality etc. So, all these factors are measured through a
set of different pre-employment tests which are as follow.

1.Cognitive Aptitude tests

In this test the ability to learn & perform a job by an

individual is judged. The abilities related to job are as
follow.

 Verbal
 Psycho – motor Abilities  Reasoning
Test  Numerical

 Perceptual Speed
 Job knowledge Tests  Spatial

2.Psycho – motor Abilities Test

In this test, the coordination, strength & dexterity of an

 Work Sample Tests individual is judged. Other abilities related to routine office
jobs & production jobs can also be measured through these
tests.

3.Job knowledge Tests

This test is used to measure the knowledge of the person

 Vocational Interest test
about the duties of a particular job.

4.Work Sample Tests

A set of tasks that represent a job are identified in this test

 Personality Tests
through which the productivity level, ability to face adverse
conditions by the applicants are judged.

5.Vocational Interest test

This test identifies the occupations that are preferred by the

  Drug & Alcohol Tests
candidate & that can provide him maximum satisfaction.

6.Personality Tests

These tests are not considered to be so reliable & valid as

compared to other pre-employment tests because these tests
require external psychologist who interprets the results of
the tests subjectively.

Job Interviews
7. Drug & Alcohol Tests

For the security, productivity & safety of the workplace

drug testing programs are used as pre-employment tests.

Job Interviews

In the interview, the interviewer & applicant exchange

information in order to achieve a goal through conversation.
The employment interviews are conducted during the
selection process through proper planning. The pleasant
Purpose of interview location of the interviewing place is selected and the
interviewer has the good personality with empathy & ability
The key purpose of a recruitment to communicate & listen effectively. A job profile must be
interview is to assess the skills, prepared on the basis of job description before conducting
experience and general background interview.
of job applicants in order to make a
decision on which candidate is the Purpose of interview
most suitable person for a
particular role. The key purpose of a recruitment interview is to assess the
skills, experience and general background of job applicants in
order to make a decision on which candidate is the most
suitable person for a particular role.
 Contents of the Interview

Although the contents of the employment interview varies

from one organization to another & also according to the
nature of job but still following are the essential contents of
the interview.
Types of Interviews
 Occupational Experience
 Academic Achievement

 Unstructured Interview  Interpersonal Skills

 Personal Qualities

 Organizational Fit

Types of Interviews

The interviews are generally categorized into the following

three types.
 Structured Interview
1.Unstructured Interview

In unstructured interviews open ended questions are asked

from the applicant in order to perform probing. It is
generally non-directive in nature and applicant is
encouraged to give lengthy answers.

2.Structured Interview

 Mixed Interview In structured interview, a list of job related questions

associated to particular job are asked from each applicant in
a consistent manner. It is directive or patterned in nature and
includes the following four kinds of questions.

 Situational Questions
 Job Knowledge Questions

 Job-sample simulation Questions

 Worker Requirement Questions

 3.Mixed Interview

It is a special kind of structured interview in which specially

designed questions are asked from the applicant to probe his
past behavior in specific situations. It does not include the
self-evaluative & hypothetical questions & inhibits to judge
the personality of the applicant. The candidates are rated on
the basis of their responses in the light of the bench-marked
answer of successful employees.

Unit-3

1.What are the different traditional and modern methods used in the performance appraisal?

Performance appraisal Performance appraisal

A performance appraisal is a A performance appraisal is a systematic, general and periodic

systematic, general and process that assesses an individual employee's job performance
periodic process that and productivity in relation to certain pre-established criteria and
assesses an individual organizational objectives
employee's job performance
and productivity in relation
to certain pre-established
criteria and organizational
objectives

Traditional methods Traditional methods

 Rating Scale 1.Rating Scale : It consists of several numerical scales, each

representing a job related performance criterion such as
dependability, initiative, output,attendance, attitude, co-operation
and the like.

 Confidential 2.Confidential Report: Descriptive report prepared by the

Report employee’s immediate supervisor. The report highlights the
strengths and weaknesses of employees. It is prepared in
Government organizations. Does not offer any feedback to the
employee
 Essay Evaluation 3. Essay Evaluation Method : The rater is asked to express the
Method strong as well as weak points of employee’s Behavior.

The Rater considers the Employee’s:

 Job knowledge and potential

 Understanding of company’s programs, policies,

objectives etc

 Relation with co-workers and supervisors

 Planning, organizing and controlling ability

 Attitude and perception

Essay Evaluation method has the following limitations:

 Highly subjective

 Supervisor may write biased essay

 Difficult to find effective writers

 A busy appraiser may write the essay hurriedly without

assessing properly the actual performance of the worker

 If the appraiser takes a long time it becomes uneconomical

from the view point of the firm

 Critical incident
technique 4.Critical incident technique
Manager prepares very effective and ineffective behavior of an
employee.

 They represent the outstanding or poor behavior of the

employees.

 Periodically records critical incidents of employee’s

behavior,e.g.,

• June 21 - Sales clerk patiently attended to the

customers complaint. He is polite, prompt,
enthusiastic in solving the customers’ problem

• June 21 - The sales assistant stayed 45 minutes

 beyond his break during the busiest part of the
day. He failed to answer store manager’s call
thrice. He is lazy, negligent, stubborn and
uninterested in work.

Ex: A fire, sudden breakdown, accident

Workers Reaction Scale

A Informed the supervisor immediately 4

B Become anxious on loss of output 3

C Tried to repair the machine 2

D. Complained for poor maintenance 1

Critical Incident Technique –Negative Points

 Negative incidents may be more noticeable than positive

incidents.

 Results in very close supervision which may not be liked

by the employee.

 The recording of incidents is a chore for the supervisor

concerned who may be too busy or forget to do it.

5. Checklist method: List of statements-on Job Performance Of

Employees.
 Checklist method
 Is employee regular Y/N

 Is employee respected by subordinate Y/N

 Is employee helpful Y/N

 Does he follow instruction Y/N

 Does he keep the equipment in order Y/N

6. Behaviorally Anchored Rating Scale(BARS)

 BARS represent a range of descriptive statements of

 Behaviorally behavior varying from the least to the most effective
Anchored Rating
 Rater indicates which behavior on each scale best
Scale(BARS)
 describes an employee’s performance

Performance Points Behavior

Extremely good 7 Can expect trainee to make valuable suggestions for

increased sales and to have positive relationships with
customers all over the country.

Good 6 Can expect to initiate creative ideas for improved sales.

Above average 5 Can expect to keep in touch with the customers

throughout the year.

Average 4 Can manage, with difficulty, to deliver the goods in

time.

Below average 3 Can expect to unload the trucks when asked by the
supervisor.

Poor 2 Can expect to inform only a part of the customers.

Extremely poor 1 Can expect to take extended coffee breaks and roam
around purposelessly.

7. Forced Choice Method

 Rater is forced to select statements which are readymade

 Forced Choice  Asked to indicate which of the phrases is the most and
Method least descriptive of a particular worker

 Favorable qualities earn plus credit and unfavorable ones

 earn the reverse

Criteria Rating

1. Regularity on the job Most

Least

 Always regular

 Inform in advance for delay

 Never regular

 Remain absent

 Neither regular nor irregular

8. Paired Comparison Method

 For several traits paired comparisons are made, tabulated

 Paired Comparison and then rank is assigned to each worker
Method
 No. of comparisons is calculated by the formula: N(N-1)/2

 This method is not applicable when the group is large

9. Ranking Method

The evaluator rates the employee from highest to lowest on

 Ranking Method some overall criteria. In this “how” and “why” are not questioned
nor answered

Employee Rank

A 2

B 1

C 3

D 5

 Field Review E 4
Method 10. Field Review Method

 Appraiser goes to the field and obtains the information.

 By questioning the individual, his peer group, and his

 superiors.

Modern/Current methods Modern/Current methods

1. Management By Objectives (MBO)

 Management By  Setting goals that are tangible, verifiable, and measurable.

Objectives (MBO)
 Setting the performance standard for the subordinates.

 Actual is compared with the goals agreed upon.

 Establishing new goals and possibly new strategies for

goals not previously achieved.

2. 360o Feedback Method

 Systematic collection and feedback of performance data

on an individual or group, derived from a number of
 360o Feedback stakeholders.
Method
 Data is gathered and fed back to the individual participant
in a clear way designed to promote understanding,
acceptance and ultimately behavior

 It makes the employee feel much more accountable.

3. Psychological Appraisals

 Psychological  Focuses on the future potential of an employee

Appraisals  Past performance or the actual performance is not taken
into consideration
  Evaluation is based on employee’s intellectual, emotional,
motivational and other related characteristics

4. Assessment centre

It is a central location where managers may come together to have

 Assessment centre their participation in job related exercises evaluated by trained
observers.

2.What are the various on-the-job and off- the-job training techniques used in the organization?

Training meaning Training

Organized activity aimed at Organized activity aimed at imparting information and/or

imparting information instructions to improve the recipient's performance or to help him
and/or instructions to or her attain a required level of knowledge or skill.
improve the recipient's
performance or to help him
or her attain a required level
of knowledge or skill.

On-the-job training
techniques On-the-job training techniques

 In this training real On the job training is very important since real learning takes
learning takes place place only when one practices what they have studied. This is the
only when one most common method of training in which a trainee is placed on a
practices what they specific job and taught the skills and knowledge necessary to
have studied. Here perform it.
trainee is placed on a
specific job and
taught the skills and
knowledge necessary
to perform it
1. Job rotation:
 Job rotation This training method involves movement of trainee from one job
to another gain knowledge and experience from different job
 assignments. This method helps the trainee understand the
problems of other employees.

2. Coaching:
Under this method, the trainee is placed under a particular
supervisor who functions as a coach in training and provides
feedback to the trainee. Sometimes the trainee may not get an
opportunity to express his ideas.
 Coaching
3.Job instruction training

Also known as step-by-step training in which the trainer explains

the way of doing the jobs to the trainee and in case of mistakes,
corrects the trainee.

4. Committee assignments:
A group of trainees are asked to solve a given organizational
 Job instruction problem by discussing the problem. This helps to improve team
training work.

5. Internship training:
Under this method, instructions through theoretical and practical
aspects are provided to the trainees. Usually, students from the
engineering and commerce colleges receive this type of training
for a small stipend.
 Committee
assignments Off-the-job Methods:
On the job training methods have their own limitations, and in
order to have the overall development of employee’s off-the-job
training can also be imparted. The methods of training which are
adopted for the development of employees away from the field of
the job are known as off-the-job methods.
 Internship training

Off-the-job Methods:
These methods are adopted
for the development of
employees away from the
field of the job are known as
off-the-job methods.
 Case study method
1. Case study method:
Usually case study deals with any problem confronted by a
business which can be solved by an employee. The trainee is
given an opportunity to analyse the case and come out with all
possible solutions. This method can enhance analytic and critical
thinking of an employee.
 Incident method
2. Incident method:
Incidents are prepared on the basis of actual situations which
happened in different organizations and each employee in the
training group is asked to make decisions as if it is a real-life
situation. Later on, the entire group discusses the incident and
takes decisions related to the incident on the basis of individual
 Role play
and group decisions.

3. Role play:
In this case also a problem situation is simulated asking the
employee to assume the role of a particular person in the
situation. The participant interacts with other participants
assuming different roles. The whole play will be recorded and
trainee gets an opportunity to examine their own performance.
 In-basket method
4. In-basket method:
The employees are given information about an imaginary
company, its activities and products, HR employed and all data
related to the firm. The trainee (employee under training) has to
make notes, delegate tasks and prepare schedules within a
specified time. This can develop situational judgments and quick
decision making skills of employees.
 Business games
5. Business games:
According to this method the trainees are divided into groups and
each group has to discuss about various activities and functions of
an imaginary organization. They will discuss and decide about
various subjects like production, promotion, pricing etc. This
gives result in co-operative decision making process.
 Grid training
 6. Grid training:
It is a continuous and phased programme lasting for six years. It
includes phases of planning development, implementation and
evaluation. The grid takes into consideration parameters like
concern for people and concern for people.
 Lectures
7. Lectures:
This will be a suitable method when the numbers of trainees are
quite large. Lectures can be very much helpful in explaining the
concepts and principles very clearly, and face to face interaction
is very much possible.
 Simulation
8. Simulation:
Under this method an imaginary situation is created and trainees
are asked to act on it. For e.g., assuming the role of a marketing
manager solving the marketing problems or creating a new
strategy etc.

 Management 9. Management education:

education At present universities and management institutes gives great
emphasis on management education. For e.g., Mumbai University
has started bachelors and postgraduate degree in Management.
Many management Institutes provide not only degrees but also
hands on experience having collaboration with business concerns.

 Conferences 10. Conferences:

A meeting of several people to discuss any subject is called
conference. Each participant contributes by analyzing and
discussing various issues related to the topic. Everyone can
express their own view point.
 Unit-4
1.Explain the objectives of Compensation management. What are the various
components of Compensation?

Definition

A systematic approach to providing value to A systematic approach to providing value to

employees in exchange for work employees in exchange for work
performance. performance.

It helps in

 Providing monetary value to

employees in exchange for work
performed.

Objectives of Compensation Management  Achieving several purposes like

assisting in recruitment, job
performance, and job satisfaction.

Objectives

 To recruit & retain qualified

employees.

Types of Compensation  To increase or maintain morale.

1.Direct Compensation  To determine basic wage & salary.

2.Indirect Compensation  To reward for job performance.

Types of Compensation

1. Direct Compensation
  Monetary benefits offered and
provided to employees in return of the
services.

 Basic salary, HRA, Conveyance,

LTC, Medical reimbursements,
special allowances, Bonus,
PF/Gratuity etc

 Given at regular intervals at a definite

time.

2. Indirect Compensation

 Non-monetary benefits offered.

 Car / transportation, Medical Aids

Constituents of Compensation
and assistance, Insurance (for self and
1. Wage and Salary family), Retirement Benefits, Holiday
Homes.
2. Incentives
Constituents of Compensation
3. Fringe benefits
1.Wage and Salary:
4. Perquisites
 Most important component of
compensation.
 Essential irrespective of the type of
organization
 Administered individually
 Provides employee stabile income.

2.Incentives:

 Additional payment to employees.

 Often these are linked with
productivity.
 Can be administered individually and
for groups
 Additional compensation having
immediate effect and no future
liability.

3.Fringe Benefits:
  Benefits provided to the employees
either having-
 Long-term impact like PF, Gratuity,
Pension; or
 Occurrence of certain events like
medical benefits, accident relief,
health and life insurance; or
Facilitation in performance of job like
uniforms, Canteens, recreation, etc.
 Administered for a group mostly.

4.Perquisites:

 Normally provided to Managerial

personnel either to facilitate their job
performance or to retain them in the
organization.
 Include company car, club
membership, free residential
accommodation, paid holiday trips,
stock options, etc.
 Administered individually mostly

2.What is Job evaluation? Explain the various methods of Job evaluation.

Definition British Institute of Management (1970)

defined job evaluation as, “the process of
Job evaluation deals with money and work. It analyzing and assessing the content of jobs,
determines the relative worth or money value in order to place them in an acceptable rank
of jobs. 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 relativities between
jobs on a consistent and systematic basis”
Objectives of Job Evaluation:
Objectives of Job Evaluation:
 1. To gather data and information
relating to job description, job
specification and employees
specifications of various jobs in an
organization.
2. To compare the duties,
responsibilities and demands of a
job with that of other jobs.
3. To determine the hierarchy and
place of various jobs in an
organization.

Procedure of Job Evaluation

1. Analyse and Prepare Job
description:
2. Select and Prepare a Job evaluation
Plan
Job Evaluation 3. Classify jobs:
Methods/Techniques 4. Install the programme
1. Ranking Method 5. Maintain the Program me

Job Evaluation Methods/Techniques

1.Ranking Method
a) Simple Ranking: This is the simplest and
administratively the most easiest technique.
The evaluator compares one job with other
jobs based on duties, responsibilities and
demands made by the jobs n the job
incumbent and the degree of importance of
the job to the organization and ranks all the
jobs from the most important to the least
important.
b) Ranking the key jobs: ranking all the jobs
at a stretch under simple ranking method is
difficult. The evaluator, in order to minimize
this problem, has to identify the key or
representative jobs at the first stage, rank the
key jobs at the second stage ,identify and
rank all other jobs at the third stage.
c) Paired Comparison: Another problem of
 the ranking method is that each job cannot be
compared with all other jobs for the purpose
of ranking.
d) Single Factor Ranking Method: Another
Problem in the ranking method is difficulty
2. Job Classification and Grading Methods of operation of the method if ranking has to
be done on the basis of number of factors.
2. Job Classification and Grading Methods
Class and grade are used differently in this
method .A grade is a group of different jobs
of similar difficulty or requiring similar
knowledge and skill to perform.
Several steps:
1) Determine the shape and size of
organizational structure, i.e., tall or flat
organization, geographic or functional
organization etc.
2) Preparation of job description
3) Preparation of grade description based on
various components
4) Establishment of a number of job grades
and division of the organization into various
grades like Grade-1, Grade-II …Grade-IV.
5) Discussion and negotiation with trade
union representatives regarding the number
of grades descriptions, getting their
consent ,finalizing the number of grades and
grade description and recording them.
6) Selection of key jobs and grading them
7) Grading the entire jobs
8) Assigning the money value to the key
grades first and then to all other grades.

3. Point Rating Method: This method was

introduced by Merrill.R.Lott.
This was one of the earliest approaches for
evaluating jobs based on quantitative values.
This method is analytical in the sense that
jobs are broken into components for purpose
3. Point Rating Method: of comparison.
 This method is quantitative as each
component of the job is assigned a numerical
value. The characteristics or factors
considered to have a bearing on all jobs in the
program me like skill, knowledge,
responsibility, working conditions etc are
selected under this method. Each factor is
divided into degrees or levels and point value
is assigned to each level.
1.Selecting and defining those factors which
are related to all jobs and are considered to be
most critical in determining the relative
degrees of difficulty and responsibility
between jobs
2.Skill: Education ,training ,judgment
analysis ,mental complexity
3.Effort: Physical demand, visual effort,
concentration mental effort alertness etc.
4. Responsibility: For Preventing monetary
loss,machines,materials,safety ,policy, etc
5.Job Conditions: Working conditions
hazards.
4. Factor Comparison Method:
This method is based both on the principles
of points rating and principle of ranking .
This method is analytical as jobs are broken
into sub-factors and components. Under this
method, first the components and sub –
factors are ranked under various factor
headings. The next step is assigning the
monetary values to the components or sub –
factors of each job. Thus, each job is ranked a
number of times (i.e., number of
compensable component or sub-factors)
4. Factor Comparison Method:
 Unit-5
1. Discuss the causes of Grievances. Explain the procedure involved in Grievance redressal.

Introduction To understand what a grievance is, it is

A grievance is any dissatisfaction or feeling necessary to distinguish between
of injustice having connection with one’s dissatisfaction, complaint, and grievance.
employment situation which is brought to the
attention of management. 1. Dissatisfaction is anything that disturbs an
employee, whether or not the unrest is
expressed in words.

2. Complaint is a spoken or written

dissatisfaction brought to the attention of the
supervisor or the shop steward.
Definition
3. Grievance is a complaint that has been
In short, grievance is a state of formally presented to a management
dissatisfaction, expressed or unexpressed, representative or to a union official.
written or unwritten, justified or unjustified,
having connection with employment
situation.
 According to Michael Jucious, ‘grievance is
any discontent or dissatisfaction whether
expressed or not, whether valid or not,
arising out of anything connected with the
company which an employee thinks, believes
or even feels to be unfair, unjust or
inequitable’.

Causes of Grievances:
Grievances may occur due to a number of
1. Economic reasons:

2.Work environment: 1. Economic:

3. Supervision Employees may demand for indivi dual wage

adjustments. They may feel that they are paid
4.Organizational change: less when compared to others. For example,
late bonus, payments, adjustments to
5.Employee relations:
overtime pay, perceived inequalities in
6. Miscellaneous: treatment, claims for equal pay, and appeals
against performance- related pay awards.

2. Work environment:

It may be undesirable or unsatisfactory

conditions of work. For example, light,
space, heat, or poor physical conditions of
workplace, defective tools and equipment,
poor quality of material, unfair rules, and
lack of recognition.

3. Supervision:

It may be objections to the general methods

of supervision related to the attitudes of the
supervisor towards the employee such as
perceived notions of bias, favoritism,
nepotism, caste affiliations and regional
feelings.
 4. Organizational change:

Any change in the organizational policies can

result in grievances. For example, the
implementation of revised company policies
or new working practices.

5. Employee relations:

Employees are unable to adjust with their

colleagues, suffer from feelings of neglect
and victimization and become an object of
ridicule and humiliation, or other inter-
employee disputes.

6. Miscellaneous:

These may be issues relating to certain

violations in respect of promotions,
safety methods, transfer, disciplinary rules,
fines, granting leaves, medical facilities, etc.

At any stage of the grievance machinery, the

dispute must be handled by some members of
the management. In grievance redressed,
responsibility lies largely with the
management. And, grievances should be
settled promptly at the first stage itself. The
following steps will provide a measure of
guidance to the manager dealing with
grievances.
Steps in Grievance Handling Procedure
i. Acknowledge Dissatisfaction:
i. Acknowledge Dissatisfaction
Managerial/supervisory attitude to grievances
ii. Define the Problem is important. They should focus attention on
iii. Get the Facts grievances, not turn away from them.
Ignorance is not bliss, it is the bane of
iv. Analyse and Decide industrial conflict. Condescending attitude on
the part of supervisors and managers would
v. Follow up
aggravate the problem.

ii. Define the Problem:

Instead of trying to deal with a vague feeling
of discontent, the problem should be defined
properly. Sometime the wrong complaint is
given. By effective listening, one can make
sure that a true complaint is voiced.

iii. Get the Facts:

Facts should be separated from fiction.

Though grievances result in hurt feelings, the
effort should be to get the facts behind the
feelings. There is need for a proper record of
each grievance.

iv. Analyse and Decide:

Decisions on each of the grievances will have

a precedent effect. While no time should be
lost in dealing with them, it is no excuse to
be slip-shod about it. Grievance settlements
provide opportunities for managements to
correct them, and thereby come closer to the
employees.

Horse-trading in grievance redressed due to

union pressures may temporarily bring union
leadership closer to the management, but it
will surely alienate the workforce away from
the management.

v. Follow up:

Decisions taken must be followed up

earnestly. They should be promptly
communicated to the employee concerned. If
a decision is favourable to the employee, his
immediate boss should have the privilege of
communicating the same.
2.Explain the various methods of settlement of Industrial disputes.

Industrial dispute means any dispute of difference between employees and

Definition employers or between employers and workmen or between workmen and
workmen, which is connected with the employment or non-employment of the
terms of employment or the conditions of work of any person (The industrial
Disputes Act 1947, Section 2K).

In simple sense, conciliation means reconciliation of differences between

persons. Conciliation refers to the process by which representatives of workers
and employers are brought together before a third party with a view to
persuading them to arrive at an agreement by mutual discussion between them.
Settlement The alternative name which is used for conciliation is mediation. The third party
measures may be one individual or a group of people.

1.Conciliatio In view of its objective to settle disputes as quickly as possible, conciliation is

n characterised by the following features:

2.Arbitratio (i) The conciliator or mediator tries to remove the difference between the parties.
n (ii) He/she persuades the parties to think over the matter with a problem-solving
 approach, i.e., with a give and take approach.
3.Adjudicati
on (iii) He/she only persuades the disputants to reach a solution and never imposes
his/her own viewpoint.

(iv) The conciliator may change his approach from case to case as he/she finds
Conciliation fit depending on other factors.
Officer: According to the Industrial Disputes Act 1947, the conciliation machinery in
India consists of the following:
The Industrial
Disputes Act, 1. Conciliation Officer
1947, under
its Section 4, 2. Board of Conciliation
provides for
the
appropriate `````````````````````````````````````````````````````````````````````````````````````````````````
government ``````````````````````````````````````````````````````
to appoint
such number The arbitrator does not enjoy any judicial powers. The arbitrator listens to the
of persons as view points of the conflicting parties and then gives his decision which is
it thinks fit to binding on all the parties. The judgment on the dispute is sent to the government.
be The government publishes the judgment within 30 days of its submission and the
conciliation same becomes enforceable after 30 days of its publication. In India, there are
officers. two types of arbitration: Voluntary and Compulsory.
Here, the
appropriate Voluntary Arbitration:
government
means one in In voluntary arbitration both the conflicting parties appoint a neutral third party
whose as arbitrator. The arbitrator acts only when the dispute is referred to him/her.
jurisdiction With a view to promote voluntary arbitration, the Government of India has
the disputes constituted a tripartite National Arbitration Promotion Board in July 1987,
fall. consisting of representatives of employees.

Compulsory Arbitration:

In compulsory arbitration, the government can force the disputing parties to go

for compulsory arbitration. In other form, both the disputing parties can request
the government to refer their dispute for arbitration. The judgment given by the
arbitrator is binding on the parties of dispute.

b.Board of
Conciliation:

The Board of
Conciliation
is not a 3. Adjudication:
permanent
institution The ultimate legal remedy for the settlement of an unresolved dispute is its
like reference to adjudication by the government. The government can refer the
conciliation dispute to adjudication with or without the consent of the disputing parties.
officer. It is When the dispute is referred to adjudication with the consent of the disputing
an adhoc parties, it is called ‘voluntary adjudication.’ When the government herself refers
body the dispute to adjudication without consulting the concerned parties, it is known
consisting of as ‘compulsory adjudication.
a chairman
The Industrial Disputes Act, 1947 provides three-tier machinery for the
and two or
adjudication of industrial disputes:
four other
members
A brief description on these follows:
nominated in
equal Labour Court:
numbers by
the parties to Under Section 7 of the Industrial Disputes Act, 1947, the appropriate
the dispute. Government by notifying in the official Gazette, may constitute Labour Court
for adjudication of the industrial disputes The labour court consists of one
independent person who is the presiding officer or has been a judge of a High
Court, or has been a district judge or additional district judge for not less than 3
years, or has been a presiding officer of a labour court for not less than 5 years.
The labour court deals with the matters specified in the second schedule of the
2. Industrial Disputes Act, 1947.
Arbitration:
These relate to:
a. Voluntary
Arbitration: 1. The property or legality of an employer to pass an order under the standing
orders.
b.Compulsor
y 2. The application and interpretation of standing orders.
Arbitration:
3. Discharge or dismissal of workers including reinstatement or grant of relief to
workmen wrongfully dismissed.
 4. Withdrawal of any statutory concession or privilege.

5. Illegality or otherwise of a strike or lockout.

6. All matters other than those reserved for industrial tribunals.

Industrial Tribunal:

Under Section 7A of the Act, the appropriate Government may constitute one or
more Industrial tribunals for the adjudication of industrial disputes. Compared to
labour court, industrial tribunals have a wider jurisdiction. An industrial tribunal
is also constituted for a limited period for a particular dispute on an adhoc basis.

The matters that come within the jurisdiction of an industrial tribunal include the
following:

1. Wages, including the period and mode of payment.

Under Section 7 of the Industrial Disputes Act, 1947, the appropriate

Government by notifying in the official Gazette, may constitute Labour Court
for adjudication of the industrial disputes The labour court consists of one
independent person who is the presiding officer or has been a judge of a High
Court, or has been a district judge or additional district judge for not less than 3
years, or has been a presiding officer of a labour court for not less than 5 years.
The labour court deals with the matters specified in the second schedule of the
Industrial Disputes Act, 1947.

These relate to:

1. The property or legality of an employer to pass an order under the standing

orders.

2. The application and interpretation of standing orders.

3. Discharge or dismissal of workers including reinstatement or grant of relief to

workmen wrongfully dismissed.

3. 4. Withdrawal of any statutory concession or privilege.

Adjudication:
5. Illegality or otherwise of a strike or lockout.
a. Labo
 ur 6. All matters other than those reserved for industrial tribunals.
Court
b. Indus Under Section 7A of the Act, the appropriate Government may constitute one or
trial more Industrial tribunals for the adjudication of industrial disputes. Compared to
Tribu labour court, industrial tribunals have a wider jurisdiction. An industrial tribunal
nal is also constituted for a limited period for a particular dispute on an adhoc basis.

c. Natio The matters that come within the jurisdiction of an industrial tribunal include the
nal following:
Tribu
nal 1. Wages, including the period and mode of payment.

2. Compensatory and other allowances.

3. Hours of work and rest periods.

4. Leave with wages and holidays.

5. Bonus, profit sharing, provident fund, and gratuity.

6. Classification by grades.

7. Rules of discipline.

8. Rationalisation.

9. Retrenchment of employees and closure of an establishment or undertaking.

10. Any other matter that can be prescribed.

3. National Tribunal:

This is the third one man adjudicatory body appointed by the Central Govern-
ment by notification in the Official Gazette for the adjudication of industrial
disputes of national importance. The central Government may, if it thinks fit,
a. Labo appoint two persons as assessors to advise the National Tribunal. When a
ur national tribunal has been referred to, no labour court or industrial tribunal shall
Court have any jurisdiction to adjudicate upon such matter.
 . Compensatory and other allowances.

3. Hours of work and rest periods.

4. Leave with wages and holidays.

5. Bonus, profit sharing, provident fund, and gratuity.

6. Classification by grades.

7. Rules of discipline.

8. Rationalisation.

9. Retrenchment of employees and closure of an establishment or undertaking.

10. Any other matter that can be prescribed.

National Tribunal:

This is the third one man adjudicatory body appointed by the Central Govern-
ment by notification in the Official Gazette for the adjudication of industrial
disputes of national importance. The central Government may, if it thinks fit,
appoint two persons as assessors to advise the National Tribunal. When a
national tribunal has been referred to, no labour court or industrial tribunal shall
b. Indus have any jurisdiction to adjudicate upon such matter.
trial
Tribu
nal:
c. Natio
nal
Tribu
nal:
ALL THE BEST
ALL THE BEST