Q.

3 Smart Invest is a financial company which has been functioning for

past 15 years. The company decides to has computerized the office 7
years ago. Now it has decided to use the application of information system
in HRM.
Suggest that how and in what all activities they could are the information system.
Ans: Smart invest financial company could information system in following
operation of human resource management
The system of applications of Information Technology (IT) in HRM is referred to
as Human Resource Module. HRIS merges some of HRM functions with the IT
field, wherein the planning and programming of data processing systems have
evolved into standardized routines and packages of Enterprise Resource Planning
(ERP) software
HRIS is developed around six main areas of human resource management viz., e-
recruitment/applicant tracking, e-training, e- payroll,
e-benefits, e-self service and e-time and labour management
E-recruitment / Applicant Tracking
E-recruitment manages job descriptions and job vacancies, search for candidates
and the interview process. It is also referred to as an applicant-tracking system; this
is a web-based application that enables the electronic handling of organizational
employment needs. These activities include posting job advertisement on web sites
to stimulate and attract candidates, known as job boards. Job boards allow
candidates to apply on-line and the candidates’ data are stored on a database that
allows searching, screening and filtering of applications. The application tracking
system shortlists the candidates and arranges for interview and recruitment-related
activities.
E-recruitment maintains profiles, searches for and refers jobs to colleagues and
follows the recruitment process. It integrates resume extraction capabilities using
the Magnaware / Mohomine extraction engine to search for potential candidates. It
uses event-driven applicant tracking and manages positions on multiple external
websites. E-recruitment/applicant tracking system reduce administrative tasks, cost
and time required to perform recruitment activities.
E-training
E-training provides a complete, scalable and open infrastructure that allows
organizations to manage, deliver, and track employee training participation in on-
line or classroom-based environments. Trainees interact with content and/or
trainers at their own pace. Managers set the business flow from order processing to
delivery and performance management to training output automatically. E-training
systems deploy content to global learners; make use of mixed media and multiple
discrete sites on a single instances of the application, define competencies attained
by trainees, and update the trainees’ competency profiles. It aims to ensure that
HRM provides the right resources, competent and experienced trainers, and
consolidate training initiatives on a scalable and cost effective basis. In addition, it
aims to measure training effectiveness.
E-training, provides learning opportunities not only to employees, but to customer
and all other stakeholders by providing one-stop administration, automated
catalogue distribution and enrollment and collaborative sites with other strategic
partners.
E-payroll
E-payroll models automatically collect data regarding employee attendance and
work record for the purpose of evaluating work performance, they calculate
various deductions including tax, and generate periodic pay cheques and tax
reports. Payroll modules in turn send data and accounting information to the
general ledger for posting and subsequent operations and they frequently integrate
e-payroll with e-finance management.
Payroll systems can define standard rules for automatically assigning and changing
employee salary by using simple formulae. They are able to control processing
rules and calculations using fast formula and use logic for complex cases. They can
manage global compensation with one application by implementing a core payroll
engine and installing local extensions to add the necessary functionality, reporting
and process for individual countries.
E-payroll is able to process from data, simultaneously, fully reconciled results and
multiple employee groups. By preparing paperless online pay slips, the system is
able to reduce administrative costs and time for the total operations. Employees too
can view their exclusive data and get personalized reports.
E-benefits
E-benefits administration models enable HR professionals to track and administer
diverse and complex benefit plans, employee benefit programs which may involve
transpiration medical and health care, insurance, pension, profit-sharing, and stock
option benefits. Such modules, through internet-based automation, can enable HR
to improve benefits support and analysis whilst reducing time and costs involved in
the administration, while increasing the consistency decisions on compliance
issues at various levels across the organization.
E-self service human resource
E-self service HR modules collect, process and manage all other kinds of data and
information. For example, employees’ demography profiles and addresses,
recruitment, selection training, development, promotions, capabilities, skill
mapping and compensation planning. Such a module would allow individual
employees to update and use employee-specific information, personalized to an
individual’s role, experience, work content, language and information needs. Thus,
individual employee and managers are empowered to update information in order
to streamline business processes, reduce costs and errors, increase speed, and
enhance service.
This module helps employees in managing everything from profiles including
skills, resumes, contact details, self-appraisal data, bank data, learning, benefits
and payroll. It empowers managers to operate transfers, employee training
enrollment, performance appraisals, competency mapping, career planning and
development and terminations.
E-time and labour
E-time and labour automates entire time and attendance records keeping process
and operations through an automatically generated virtual time card. It provides an
intuitive, web-based interface. The time and labour management module, by
interacting with information technology, collects and evaluates time and work
information. This module provides broad flexibility in data collection methods,
human resource distribution capabilities and data analysis, and helps in
establishing organizational cost accounting capabilities.
This module allows entering time via web browser, mobile device and time card. It
defines rotation plans based on shifts and work plans and employee mobility
among departments or units. It supports policies for holidays, over-time, and
rounding. It improves reporting, extracting, and processing with a single database
of employee time-related information. This module is integrated automatically
with other modules of human resource management like payroll and benefits.

Q.3 Due to the recent recession FinPlus , finance company has to downsize the
current employees. In this scenario what are the responsibility of HR professional.
What kind of plan they can prepare
Ans: Manpower costs are important elements of operating costs in many industries.
Companies that are able to control manpower expenses through various steps have
a much needed competitive advantage. Therefore, monitoring and controlling
manpower costs have assumed great importance in the modern era of global
competition. Some of the widely used approaches to analyze and control
manpower costs are as follows
Management by Objectives (MBO): In human resource management, measurement
has been the weakest area due to most of the variables being qualitative.
Ratio Analysis: In this approach, some important performance indicators
concerning the personnel function are used
Personnel Productivity: Analysis and control of human resource costs is not
enough. It is necessary to monitor and improve the productivity of human
resources. If the percentage increase in personnel productivity is higher than
percentage increase in personnel costs, per unit cost of personnel may be reduced.
Human resources have a tremendous potential to improve productivity. Firms can
achieve significant productivity gains and control manpower costs through O and
M studies, work simplification, quality circles, productivity linked rewards and
proper utilization of manpower at various levels
Employee Relations Index: This is a quantitative technique of measuring the
overall effectiveness of the total personnel programme. This composite index
consists of several strategic items such as absenteeism, separations, occupational
health, suggestion, formal grievance, work stoppages etc. Weights are assigned to
each item according to its relative importance.

Q.3 Mr Sen wants to conduct an HR Audit in his organization. He wants to

specifically audit the Employment Practices and Employee involvement in
particular. Suggest what all aspects you may cover in the questionnaire for the
audit. Prepare a questionnaire with at least 15 statements.
Ans: In conducting your human resources audit, an employment policy or practice
includes, but is not limited to-
 recruitment procedures, advertising and selection criteria;
• appointments and the appointment process;
 • job classification and grading;
• remuneration, employment benefits and terms and conditions of
employment;
• job assignments;
• the working environment and facilities;
• training and development;
• performance evaluation systems;
• promotion;
• transfer;
• demotion;
• disciplinary measures other than dismissal; and
dismissal
B. Hiring: Non-Discrimination
Does your Company unfairly discriminate, directly or indirectly,
against an employee, in any employment policy or practice, on
one or more grounds, including:
• race,
• gender,
• sex,
• pregnancy,
• marital status,
• family responsibility,
• ethnic or social origin,
• conscience,
• belief,
 • political opinion,
• colour,
• sexual orientation,
• age,
• disability,
• religion,
• HIV status,
• culture,
• Trade Union membership
• language and
• birth
• Does your Company employment practices prohibit the harassment of an
employee on any of the grounds mentioned above?
• Do your employment policies distinguish, exclude or prefer any person on
the basis of an inherent requirement of a job. If so, are such inherent
requirements legitimate, objective and easily ascertainable to a third party,
such as a Commissioner or Arbitrator?
C. Hiring: Medical testing
Does your Company have requirements for medical testing of employees, and if
so,
• Is it permitted in terms of any legislation; or
• is it justifiable in the light of medical facts, employment conditions, social
policy, the fair distribution of employee benefits or the inherent
requirements of a job?
D. Hiring: Psychological testing and other similar assessments
• Does your Company implement psychological testing and other similar
assessments of an employee, and if so, have such tests or assessments being
 used-
• shown to be scientifically valid and reliable;
• applied fairly to all employees; and
• not biased against any employee or group?
E. Hiring: Written particulars of employment
• Do or have you supplied your employee, when the employee commences
employment, with the following particulars in writing-
• your full name and address;
• the name and occupation of the employee, or a brief description of the work
for which the employee is employed;
• the place of work, and, where the employee is required or permitted to work
at various places, an indication of this;
• the date on which the employment began;
• the employee’s ordinary hours of work and days of work;
• the employee’s wage or the rate and method of calculating wages;
• the rate of pay for overtime work;
• any other cash payments that the employee is entitled to;
• any payment in kind that the employee is entitled to and the value of the
payment in kind;
• how frequently remuneration will be paid;
• any deductions to be made from the employee’s remuneration;
• the leave to which the employee is entitled;
• the period of notice required to terminate employment, or if employment is
for a specified period, the date when employment is to terminate;
• a description of any council or sectoral determination (Wage Determination)
which covers the employer’s business;
 • any period of employment with a previous employer that counts towards the
employee’s period of employment;
• a list of any other documents that form part of the contract of employment,
indicating a place that is reasonably accessible to the employee where a copy
of each may be obtained.
• When any term or condition of employment of an employee changes do you
change the written particulars to reflect the change; and supply the employee
with a copy of the document reflecting the change.
• If an employee is not able to understand the written particulars, do you
ensure that they are explained to the employee in a language and in a manner
that the employee understands.
• Have you made provision for keeping written particulars of employment of
your employees for a period of three years after the termination of
employment.
F. Informing employees of their rights
• Do you display at the workplace where it can be read by employees a
summary in the prescribed form of the employee’s rights in terms of the
Labour Relations Act, Basic Conditions of Employment Act, Occupational
Health and Safety Act, etc in the official languages which are spoken in the
workplace.
G. Keeping of records
• Do you keep a record of your employees (personnel files)
• information-
• your employees name and occupation;
• the time worked by each employee;
• the remuneration paid to each employee;
• the date of birth of any employee under 18 years of age.
• Are such records kept for a period of three years from the date of the last
entry in the record.
H. Payment of remuneration
Do you pay your employees any remuneration that is paid in money
• in South African currency; daily, weekly, fortnightly or monthly; and in
cash, by cheque or by direct deposit into an account designated by the
employee.
• at the workplace or at a place agreed to by the employee; during the
employee’s working hours or within 15 minutes of the commencement or
conclusion of those hours; and in a sealed envelope which becomes the
property of the employee.
• no later than seven days after the completion of the period for which the
remuneration is payable; or the termination of the contract of employment?
I. Information about remuneration
Do you provide your employees with the following information in writing on each
day the employee is paid?
• your name and address;
• your employees name and occupation;
• the period for which the payment is made;
• your employees remuneration in money;
• the amount and purpose of any deduction made from the remuneration;
• the actual amount paid to your employees; and
• if relevant to the calculation of any employee’s remuneration-
• the employee’s rate of remuneration and overtime rate;
• the number of ordinary and overtime hours worked by the employee during
the period for which the payment is made;
• the number of hours worked by the employee on a Sunday or public holiday
during that period; and
• if an agreement to average working time has been concluded in terms of
section 12 of the Basic Conditions of Employment Act, the total number of
 ordinary and overtime hours worked by the employee in the period of
averaging.
• Is such written information given to each employee at the workplace or at a
place agreed to by the employee; and during the employee’s ordinary
working hours or within 15 minutes of the commencement or conclusion of
those hours.
J. Job Descriptions
• Do they avoid generalities, vague terms, and professional jargon?
• Are there physical requirements that don’t have a direct correlation to the
job you’re describing?
• Is there any language that could be considered sexist?
• Do they consolidate job responsibilities and list the most important ones
first?
• Is there any language that discriminates against older employees?
• Are unessential requirements listed that could block the hiring of a person
with a disability?
• Do they describe what is to be accomplished, rather than the method for
performing the job?
• Are undesirable working conditions, such as worksite temperatures, noise
levels, gases, fumes, or hazardous materials, and space restrictions listed?
• Are required interpersonal skills explained?
K. Application Forms
• Do you have a written policy explaining how long applications will be
considered active, and when and how applicants can update them?
• Do you purge your files on a regular basis in accordance with your policy?

• Does your application have the following disclaimers?

• Falsification or omission of information can lead to refusal to hire or to
 discharge.
• Applicant gives employer consent to check references, verify information,
and obtain reports from consumer reporting agencies.
• Does your applications ask for any of the following information that may be
considered discriminatory?
• Applicant’s sex, or sexual preference, practices, or orientation.
• Applicant’s weight or height, unless a bona fide occupational qualification
exists.
• Whether the applicant is single, married, or divorced.
• Whether the applicant is pregnant, has children, or must make arrangements
for child care.
• Applicant’s age, other than to determine that the applicant meets minimum
state requirements.
• Dates applicant attended high school.
• Applicant’s military status, unless military status is related to his/her ability
to perform the work.
• Applicant’s memberships.
• General questions about arrest records.
• Applicant’s religious affiliation.
• Applicant’s general state of health.
• If the applicant is a citizen of another country.
• Applicant’s attitude about trade union organizations.
L. Employment Contracts
• Does your employee handbook contain a general disclaimer?
• Does your handbook contain a statement indicating that it is intended to
provide information only, is not a contract, and can be modified at any time?
 • Do you have employees sign acknowledgement forms recognizing that they
have received the handbook and understand it?
• Are your disclaimers printed in large type and placed in prominent
positions?
• Does your handbook indicate that serious offenses can circumvent your
progressive discipline policy and result in immediate termination?
• Does your handbook contains statements promising a promotion-from-
within policy?
M. References
• Does your application state that references will be checked carefully and will
influence the hiring decision?
• Do you avoid recording discriminatory information even if it is given in a
reference check?
• Does the person who is conducting the reference check understand the job
requirements?
• Do you keep written documentation on every reference check?
• Do you ask applicants to sign a release absolving previous employers from
liability for the information they provide?
• Do you understand the restrictions on gathering medical information on
applicants?
• Do you apply the results of your reference checks consistently to all
applicants?
• Do you ask employees who are resigning or being terminated to sign a
reference request form?
• Do you authorize only a few individuals to respond to reference requests?
• Do you refuse to give oral references?
• Do you require prospective employers to furnish consent forms before
giving out references?
• Do you screen prospective employers by taking a telephone number and
 calling back?
Are your references based on both positive and negative facto

Q.3 Mr. Sunil is the General Manager of a textile company. He has to

participate in the meeting with the board of directors of the company. He is
expected to conduct the SWOT Analysis of the company. Help him in
preparing the question checklist to attain the required information about the
company’s Strength Weakness Opportunity and threat.
[10 Marks]
Ans: Following are the checklist, Mr. Sunil has listed after conducting
SWOT Analysis of his company
1) Strengths:
Following are the list of strengths that company should have
i. Valuable competencies or know-how
ii. Valuable physical assets
iii. Valuable human assets
iv. Valuable organizational assets
v. Valuable intangible assets
vi. Important competitive capabilities
2) Weakness is something a firm lacks, does poorly, or a condition placing it at a
disadvantage. Resource weaknesses relate to inferior or unproven skills, expertise,
or intellectual capital and Lack of important physical, organizational, or intangible
assets.
3) Opportunities: Opportunities are those which match with its financial and
organizational resources, can generate profits for long term and become strength in
future.
4) Identifying External Threats
i. Improved technology
ii. Improved products by competitors
iii. Dumping of materials
iv. Unfavorable political situation
v. Potential of a hostile takeover
vi. Change in the demography