Q1.

Explain the scope and functions of Human Resource Management (HRM) Answer: Human resources can be defined as the sum of total of the knowledge, skills, creative abilities, talents and aptitudes. Similarly, from the viewpoint of organization, it represents the sum total of inherent abilities, acquired knowledge and skills, talent and aptitudes of its employees. Scope of HRM: This scope of HRM springs up from the problems which have many different causes and perspectives. Halloran stated these as: Every person brings a unique set of talents, ambitions and work experience to a job. These personal attributes change over time, often as a result of the degree of success or failure the person experiences in the work world. Matching so many unique sets of personal qualities to a standardized technology can create problems. The organizational aspects of a company, such as its size, geographic location, economic health, and degree of automation, define the scope of work and activity in each work division. Innovations in technology and production methods generally require the restructuring of jobs roles and responsibilities. Radical changes in basic organizational structure can cause severe strains between employees and management and create problems in human relations. Promotion of individuals to positions of greater responsibility and authority generally creates a need for changed behavior patterns between the new supervisors and their former peers, which in time, can create human relations problems. Inexperienced employees may not be able to perform their roles or tasks in work groups in a competent manner. The time they take to adjust can not only create problems with production schedules, but can also create particular kinds of human relations problems between them and their employees and supervisors. HRM Functions: I.Human Resource Planning Estimating the need for resources in order to archive the desired business results. HR plans can be both short term/immediate as well as long term / strategic. The HR team partners with the line managers to understand the business goals and targets for the year and then together plan the HR needs in order to meet the goals. II.Acquisition of human resourcesStaffing the organizations with the right mix of skills and competencies at the right time. It also includes the HR initiatives like promotions and internal job posting to fulfill his requirement for human resources. Staffing teams in organizations are usually a separate group of specialists who work closely with the line managers to understand the skills and competencies needed for the job and engage together to select the best talent for the open positions.

III.Training and employee developmentFocuses on managing training activities to upgrade skills and knowledge as well as soft skills like team building and leadership. The training team is again a group of HR specialists who propose the training program and consult with the line managers to ensure that the program achieves the desired outcomes. IV.Building performance management systemsFocuses on the right processes to set goals for performance as individuals /teams and related measurement methods. This is a core HR activity and is supported by the HR generalist. V.Reward systemsEstablishing appropriate compensation systems and reward mechanisms that would reward the desired outcome and results in accordance with the corporate values. This again forms a part of the HR generalists tasks. How employees progress in a organization how they are paid w.r.t. internal and external market factors, what employees benefits are offered, are some aspect that this function redresses. VI.Human Resources Information Systems that would take care of the operational transactions from the time an employee joins till the time the employee exits, like personnel files, compensation administration, payroll, benefits administration and issuing letters and testimonials. This task is supported by as separate HR operations team who acts as a HR helpdesk and provides information to the employees/ managers.

Q2. Define Wage and Salary. What are the factors for effective wage administration? Answer: The main purpose of wage and salary administration is to establish and maintain equitable wage and salary programs. The secondary objective is to design and implement an equitable labour-cost structure. Wage Wages are commonly understood as price of labour. In ordinary parlance any remuneration paid for services is etymological wage. Benham defines wage as a sum of money paid under contract by an employer to a worker for services rendered. Labour was always looked upon as a commodity governed by the law of supply and demand. Certain theories were propounded for determination of wages but these could not stand the test of time. A few theories are discussed below: Subsistence theory: This theory, also known as iron law of wages, was propounded by David Ricardo (1772-1823). According to this theory, wages tend to settle at a level just sufficient to maintain the workers and his family at minimum subsistence levels. The theory applies only to backward countries where laboures are extremely poor and are unable to get their share from the employers. Standard of living theory: This theory is a modified form of subsistence theory. According to this theory, wages are determined not by subsistence level but also by standard of living to which a class of labourers becomes habituated.

Salary Salaried often implies a status distinction, because those who are on salary are generally white collar, administrative, professional, and executive employees, whereas wage-earners are designated as hourly, non-supervisory, or blue-collar. Wage-earners in some organizations do receive full wage if they are absent for such reasons as sickness, whereas salaried employees, especially at the lower levels, often receive overtime pay when they over the standard work week. The word salary is defined in the Oxford dictionary as fixed periodical payment to a person doing other than manual or mechanical work. The payment towards manual or mechanical work is referred to as wages. The word Pay refers to the payment for services done which would include salary as well as wages. Factors effecting wage administration: 1. Bargaining: Collective bargaining is still in the initial stage in management and labour, it cannot be imposed upon either side by compulsion and should evolve naturally from within. 2. Voluntary Arbitration: In voluntary arbitration, both parties agree to refer their dispute to mutually agreed arbitrator and his award becomes binding on the parties. 3. Wage Legislation: Wages are fixed according to law in some industries. The central government and state governments may fix minimum wages under the Minimum Wages Act of 1948 for industries in which workers are exploited or too unorganized to protect their own interests. . 4. Conciliation: The industrial Disputes Act, 1947, provides for consideration in case of disputes between employers and workers. If an agreement is reached in the course of conciliation proceedings, it becomes binding on the parties and takes effect from the date agreed upon or from the date on which it is signed by the two parties. 5. Adjudication: Labour courts and Industrial Tribunals are set up under the industrial Disputes Act, 1947. On studying the awards one gets the impression that the adjudicators are attempting to justifying their decision in social and ethical terms. At the same time, there is a desire to satisfy both parties to the dispute , and therefore, economic factors such as capacity to pay, unemployment, profits, condition of the economy or welfare of the industry concerned, are given due prominence. Wage Boards: The boards are appointed by the Government and usually consist of seven members two representatives of management, two of labour, two independent members and a chairman. The board is expected to Collective take into account the need of the specific industry in a developing economy, the special features if the industry, the requirements of social justice, and the necessary for adjusting wage differential in such a manner as to provide incentives to workers for advancing their skill. Wages are influenced by both social and economic factors. In one case, economic factors may play a major role, whereas in another, social factors may be predominant. Thus, wages are product of both social and economic factors.

Q3. What are different types of on-the-job and off- the-job training? Answer Training is an important investment an organization makes for making its employees more effective and productive. Training is a practical and vital necessity because; it enables employees to develop and build careers within organization, and increase their skill levels and market worth, earning power and enhanced job security. Training methods have a number of overlapping objectives. The main objectives of individual training methods could be: demonstration of value, developing interest and finally appeal to senses. Depending on the learning outcome, and the process by which it is attained, it is possible to categorize the various methods into several groups. On-the-job training Methods: Job Rotation:This is where members of staff rotate roles and tasks so that they gain experience of a full range of jobs. Coaching:An experienced member of staff will help trainees learn skills and processes through providing instructions or demonstrations (or both). Mentoring:Each trainee is allocated to an established member of staff who acts as a guide and helper. A mentor usually offers more personal support than a coach, although the terms mentor and coach are often used interchangeably. Apprenticeship:Apprentice training can be traced back to medieval times when those intended on learning trade skill bound themselves to a master craftsman to learn by doing the work under his guidance. In the earlier periods, apprenticeship was not restricted to artisans, but was used in training for the professionals, including medicine, law, dentistry, and teaching.

Off- the-job training Methods: Vestibule / Classroom Training:This method attempts to duplicate on the job training situations in a company classroom. It is a classroom training which is often imparted with the help of the equipment and machines which are identical with those in use in the place of work. Knowledge-based Methods:In this method of training, an effort is made to expose participants to concepts and theories, basic principles, and pure and applied knowledge in any subject area. Basically it is aimed at creating an awareness of the knowledge of fundamentals. Work simulation Methods:Simulation is a technique which duplicates, as nearly as possible, the actual conditions encountered on a job. Generally, simulation techniques have been most widely used in the aeronautical industry. Conferences:This is also an old method, but still a favorite training method. In order to escape limitations of straight lecturing many organizations have adopted guided-discussion type of conferences in their training programs

Q4. What is need for Performance reviews? What are the benefits of carrying out performance appraisal in organizations? Answer: Need of Performance Review Performance evaluation is systematic activity by means of which the organization determines the extent to which the employee is delivering per agreed objectives and this is aligned to business results. Generally speaking, the HR specialists design and implement the performance management system (PMS), and then train the line managers in the use the systems, and maintain the records. The line managers use the system to review employee performance and normal steps include: 1. Defining performance: includes setting performance targets and goals (usually for the span of a year) split into monthly or quarterly targets. These should ideally conform to the SMART principle of being Specific, Measurable, achievable, realistic and Time-bound. These are agreed to mutually by the manager as well as the employee at the beginning of the performance period. Most PMS require the employee and manager to enter it into a prescribed performance appraisal template and signed off by both prior to the commencement of the performance period or at the start of it.

2. Measuring performance: while it largely involves the assessment of the performance against the targets at the end of the assessment period/performance period. The focus is here ongoing review of the employees performance by the manager throughout the year. This allows for the following. I. Review progress and ascertain help/support the employee might need to complete the task per agreed standards. II. Recommend training or other on-the-job / off-the-job assistance that the employee might need to meet the deadlines. III. Review the targets and commitments and make changes if required usually influenced by external factors that are impacting performance and review the targets upwards or even downwards. 3. Feedback and coaching: Focuses on the development needs of the employee which the manager might need to take care to enable the employee to successfully complete the job in the best possible manner. Benefits of Performance Appraisal: When an employee works well, the employee naturally wants it to be praised and recognized by his/her boss and fellow-workers. Praise seems to have its greatest value when given and received as recognition, and is not perceived by either party as an attempt to control the behavior of the recipient. In todays highly competitive workplace individual seek status and are anxious to excel at what they do and to achieve their personal aspirations and dreams. The PMS affords a fair process that allows the employee to benchmark themselves and calibrate performance vs. Relevant others in the team / organization. The use of incentives reinforces peoples actions to use their skills and ability to achieve important longer-run goals. Rewards should be regarded as a pay off for performance. Recognition satisfies the basic human need for self-esteem and self-worth. This recognition may be a simple pat on the back of the employee or a recommendation for a pay raise, promotion, or assignment of more interesting tasks. Awards may be given in the form of articles, banquets honoring certain individuals, certificates and plaques, too, may be given, or the employees name may be entered on the Honors Board. A promotion may defined as an upward advancement of an employee in an organization to another job, which commands better pay/wages, better status/prestige, and higher opportunities/challenges, responsibility, and authority, better working environment hours of work and facilities, and a higher rank. Promotions are usually given: I. To put the worker in a position where he will be of greater value to the company and where he may derive increased personal satisfaction and income from his work. II. To recognize an individuals performance and reward him for his work so that he may have an incentive to forge ahead. Employees will have little motivation if better jobs are reserved for lateral hires: III. To increase an employees organizational effectiveness: IV. To build up morale, loyalty, and a sense of belonging on the part of the employees when it is brought home to them that they would be promoted if they exhibit the potential; V. To attract suitable and competent workers for the organization;

Q5. Explain the impact of globalization on HRM. Globalization is a process that is drawing people together from all nations of the world into a single community linked by the vast network of communication technologies. This aspect of globalization has also affected the HRM in the business world today. HR managers today not need to rely in a small limited market to find the right employees needed to meet the global challenge, but today they can recruit the employees from around the world. Besides that the effective data based which is being used globally today also has made HRM a simple but effective task. Thus due to globalization to some extent HRM has become more efficient and effective, but relatively a simple task. The most important factor that these organizations are made up of people, and since HRM is the set of activities which deals with the people factor present in any organization, this change has affected the Human Resources Management itself a lot. Human resources manager of today must ensure that the appropropriate mix of employees in terms of knowledge, skills and culture. The following are the challenges are being faced by HR managers in terms of globalization: Managing diversity of workforce. Managing pressures for more labor rights in third world countries. Managing outsourcing of employees. More part-time and temporary work. Managing productivity and quality. Downsizing the workforce. Coping with flexible working hours.

Globalization makes for a larger labor pool from which to choose, but it also increases the possibility of language and cultural barriers in the recruitment process. If the company does not address such barriers, it can make the recruitment process increasingly time-consuming and difficult. Human resource managers must adapt to the different customs and cultures when hiring employees in different countries. Language barriers also may necessitate hiring bilingual employees and adapting employee documents, such as employee manuals and training materials, into different languages. Q6. Ms. Swapna is the HR Manager of ABC Pvt Ltd. She wants to ensure that employee discipline is well maintained. What are the important principles that have to be observed in the maintenance of discipline?

Since, disciplinary measures have serious implications for employees; they often are based on the principles of being fair, just and acceptable to employees and, where applicable, the union as well. It cannot be enforced or imposed on employees, as history has proved, it never benefits anyone. So one of the most significant transformations that have impacted the workplace in the past few years is the reinstatement of discipline in a positive and employee-supported environment. The way it is practiced in todays organizations is extremely well communicated and adopts a discretionary approach.

The most important principles to be observed in the maintenance of discipline have been outlined by Yoder. Heneman, Turnball and Harold done are: As far as possible, all the rules should be framed in co-operation and collaboration with the representatives of employees. If the latter have a share in formulating them, will be much more likely to observe them. 1. All the rules should be appraised at frequent and regular intervals to ensure that they are and continue to be, appropriate sensible and useful. 2. Rules should vary with changes in the working conditions of employees. Those framed for office employees, for example, may very well be different from those that are formulated for workers in an industrial concern. 3. Rules should be uniformly enforced if they are to be effective, they must be applied without exception and without bending them or ignoring them in favor of any one worker. 4. Penalties for any violation of any rule should be clearly stated in advance. Employees have the right to know what to expect in the event of any infringement of a rule or regulation. For this purpose, it is better to publish them in the employees handbook. 5. A disciplinary policy should have as its objective the prevention of any infringement rather than the simple administration of penalties, however just: it should be preventive rather than punitive. 6. Extreme caution should be exercised to ensure that infringements are not encouraged. This should be done as a matter of policy. 7. If violations of a particular rule are fairly frequent, the circumstances surrounding them should be carefully investigated and studied in order to discover the cause or causes of such violations. 8. Recidivism must be expected. Some offenders would almost certainly violate rules more often than others. These cases should be carefully considered so that their causes may be discovered.