Master of Business Administration- MBA Semester 1

MB0043 Human Resource Management - 4 Credits

(Book ID: B1626)
Assignment (60 Marks)

Q1. Explain the scope of and functions of human resource management?
Scope of HRM
1. Human Resources Planning
Human resource planning or HRP refers to a process by which the company to identify
the number of jobs vacant, whether the company has excess staff or shortage of staff and
to deal with this excess or shortage.
2. Job Analysis Design
Another important area of HRM is job analysis. Job analysis gives a detailed explanation
about each and every job in the company. Based on this job analysis the company
prepares advertisements.
3. Recruitment and Selection
Based on information collected from job analysis the company prepares advertisements
and publishes them in the news papers. This is recruitment. A number of applications
are received after the advertisement is published, interviews are conducted and the right
employee is selected thus recruitment and selection are yet another important area of
HRM.
4. Orientation and Induction
Once the employees have been selected an induction or orientation program is
conducted. This is another important area of HRM. The employees are informed about
the background of the company, explain about the organizational culture and values and
work ethics and introduce to the other employees.
5. Training and Development
Every employee goes under training program which helps him to put up a better
performance on the job. Training program is also conducted for existing staff that have a
lot of experience. This is called refresher training. Training and development is one area
were the company spends a huge amount.
6. Performance Appraisal
Once the employee has put in around 1 year of service, performance appraisal is
conducted that is the HR department checks the performance of the employee. Based on
these appraisal future promotions, incentives, increments in salary are decided.
Function of Human Resource Management
The human resources management team suggests to the management team how to
strategically manage people as business resources. This includes managing recruiting
and hiring employees, coordinating employee benefits and suggesting employee training
and development strategies. In this way, HR professionals are consultants, not workers
in an isolated business function; they advise managers on many issues related to
employees and how they help the organization achieve its goals.

Collaboration
At all levels of the organization, managers and HR professionals work together to
develop employees' skills. For example, HR professionals advise managers and
supervisors how to assign employees to different roles in the organization, thereby
helping the organization adapt successfully to its environment. In a flexible
organization, employees are shifted around to different business functions based on
business priorities and employee preferences.

Commitment Building
HR professionals also suggest strategies for increasing employee commitment to the
organization. This begins with using the recruiting process or matching employees with
the right positions according to their qualifications. Once hired, employees must be
committed to their jobs and feel challenged throughout the year by their manager.

Building Capacity
An HRM team helps a business develop a competitive advantage, which involves
building the capacity of the company so it can offer a unique set of goods or services to
its customers. To build the an effective human resources, private companies compete
with each other in a "war for talent." It's not just about hiring talent; this game is about
keeping people and helping them grow and stay committed over the long term.




Q2. Define wage and salary? What are the factors for effective wage
administration?
Ans:- The Payment of Wages Act, 1936 Sec 2 (vi) "wages" means all
remuneration (whether by way of salary allowances or otherwise) expressed in terms of
money or capable of being so expressed which would if the terms of employment express
or implied were fulfilled by payable to a person employed in respect of his employment
or of work done in such employment and includes -

(a) any remuneration payable under any award or settlement between the parties or
order of a court;
(b) any remuneration to which the person employed is entitled in respect of overtime
work or holidays or any leave period;
(c) any additional remuneration payable under the terms of employment (whether
called a bonus or by any other name);
(d) any sum which by reason of the termination of employment of the person employed
is payable under any law contract or instrument which provides for the payment of such
sum whether with or without deductions but does not provide for the time within which
the payment is to be made;
(e) any sum to which the person employed is entitled under any scheme framed under
any law for the time being in force, but does not include
(1) any bonus (whether under a scheme of profit sharing or otherwise) which does not
form part of the remuneration payable under the terms of employment or which is not
payable under any award or settlement between the parties or order of a court;
(2) the value of any house-accommodation or of the supply of light water medical
attendance or other amenity or of any service excluded from the computation of wages
by a general or special order of the State Government;
(3) any contribution paid by the employer to any pension or provident fund and the
interest which may have accrued thereon;
(4) any travelling allowance or the value of any travelling concession;
(5) any sum paid to the employed person to defray special expenses entailed on him by
the nature of his employment; or
(6) any gratuity payable on the termination of employment in cases other than those
specified in sub-clause (d).
Factors for effective wage administration
To establish a fair and equitable compensation offering similar pay for similar work.
To attract competent and qualified personnel.
To retain the present employees by keeping wage levels in tune with competitive units.
To keep labor and administrative costs in line with the ability of the organization to pay.
To improve motivation and morale of employees and to improve union management
relations.
To project a good image of the company and to comply with legal needs relating to
wages and salaries.
To establish job sequences and lines of promotion wherever applicable.
To minimize the chances of favoritism while assigning the wage rates.

Q3. What are the different types of on-the-job and off-the-job training?
Ans- Off the job training

Off the job training refers to workplace training which occurs through a process of
teaching employees what is expected of them when they are ready and able to take on
their new position through a variety of different training methods that do not require
the employee to directly participate in their new job, such as what occurs during on the
job training. Examples of off the job training include instructional videos given to
employees for viewing; instructional pamphlets or booklets which contain information
about working for a company, such as policies or general goals of the company; tests or
examinations after off the job training may also occur, as these are test which may test
how well the individual knows certain policies or how they may behave in certain
situations that might occur during the course of their employment based on what they
have learned through their other training.
Off the job training is especially beneficial to employees who need to be taught overall
concepts about a business, such as their policies or general mission statement regarding
their customers. Off the job training allows for the absorption of facts and policies,
making it easier for an employee to react accordingly should they experience this
incident while working.


On the job training

On the job training refers to workplace training which occurs through a process of
showing an employee what is expected of them when they are able to fully take on their
new position. On the job training often includes more physical, hands-on experiences;
for example, many new employees are often labeled "employee in training" and required
to shadow or follow a current employee as they go about their workday. Employees who
tend to learn visually will benefit more from on the job training than off the job training
as well. This type of training allows the employee to see what is expected of them in
action. However, on the job training is not always so straightforward or hands-off. On
the job training may also include simply learning how to do a job as it happens, rather
than being taught through a current employee or relying on background information--
for example, a college degree. Today, however, most clinics and hospitals would prefer
to hire someone with a degree rather than someone without, as the degree indicates that
the medical assistant will not need as much on the job training as someone without any
experience whatsoever.

On the job training is considered to be more beneficial for jobs which may require a
noticeable amount of hands-on work, such as nursing, farming, engineers, and so on.
On the job training allows for those with this type of job the ability to see their soon-to-
be required duties or typical workday in action. Sometimes, people who are currently
going through on the job training may be required to work normally on a probation
period, to ensure that, if they are unable to fulfill their work related duties, they may be
fired or at least reprimanded.
Q4. What is the need for performance reviews? What are the benefits of
carrying out performance appraisal in organisations?.
Ans:- Need for Performance Appraisal

Performance appraisal is needed in order to:
(1) Provide information about the performance ranks basing on which decision
regarding salary fixation, confirmation, promotion, transfer and demotion
are taken.
(2) Provide feedback information about the level of achievement and behavior
of subordinate. This information helps to review the performance of the
subordinate, rectifying performance deficiencies and to set new standards
of work, if necessary.
(3) Provide information which helps to counsel the subordinate.
(4) Provide information to diagnose deficiency in employee regarding skill,
knowledge, determine training and development needs and to prescribe the
means for employee growth provides information for correcting placement.
(5) To prevent grievances and in disciplinary activities.
The performance appraisal is an essential part of the human resources department's
contribution to an organization. An effective appraisal may not only eliminate behavior
and work-quality problems, it can motivate an employee to contribute more.
Improving Communication
All too often, employees and managers don't get along and can't understand why.
Problems that stem from a lack of communication can sometimes be resolved with a
performance appraisal. If the appraisal is used as an opportunity to describe the criteria
on which performance is judged -- using meaningful and relevant examples -- then the
employee will walk away from the meeting with a better understanding of how to best
perform his job.

Providing a Career Path
The performance appraisal is the perfect opportunity to address long-term goals that
may not be on the everyday to-do list. Not only does this provide the employee with an
opportunity to be of greater use to an organization, the employee feels pleased and
valued. Lighting the way toward a successful career path inspires loyalty and stability
and can improve the bottom line, especially when the employee's first concern is the
health of the business, and subsequently, her career.

Encouraging Good Work and Improvement
Celebrating a job well-done is the easy part of the performance appraisal. Noting areas
of improvement is not so easy. Even the most valuable employee could benefit from
additional training, while those who are on the cusp of dismissal need the heads-up. Be
specific by providing examples and clearly explain what needs to occur to turn things
around. Showing an employee that you care enough about them by taking the time to
work with them may make even the most hardened employee feel better

Improving Decision-Making Ability
When a company has detailed information on employee performance, business
decisions become easier. Filling open positions with existing staff strengthens the
organization and promotes loyalty. Knowing which employees display what strengths
improves the speed with which projects can be assigned. Appraisals also provide a
framework when making decisions about compensation -- and layoffs.

Q5. Explain the impact of globalisation on HRM.
Ans:- A consensus has emerged among scholars and practitioners alike that the
business environment has become more competitive than in the past because of
globalisation. In order to survive in this new era, businesses have to focus even harder
on their competitive strengths so as to develop appropriate long-term strategies. Old
practices and systems that have evolved over time are no longer appropriate.
Indeed development is achieved through people. Beardwell and Holden (1997) support
this assertion by giving an example of Japan's success despite its lacking natural
resources. These lessons are important for us if we have to move forward in terms of
economic development.
Armstrong outlines three most important factors in achieving competitive advantage as
Innovative, Quality and Cost Leadership, but all these depend on the quality of an
organisation's human resources. What this entails is that the starting point should be
with the human resource. Scholars have argued that the human resource satisfies four
conditions necessary to achieve sustainable competitive advantage: human resource is
valuable, rare, and imperfectly imitable and has no substitutes. Competitors can easily
duplicate competitive advantage obtained via better technology and products, but it is
hard to duplicate competitive advantage gained through better management of people.
The creation of these core competencies can be achieved through effective provision of
the traditional services of the human resource management and dealing effectively with
macro concerns such as corporate culture and management development.
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?
Ans:- The important principles that she had to be observed in the maintenance of
discipline is to keep the maintenance of harmonious human relations in an organization
depends upon the promotion and maintenance of employee discipline. No organization
can prosper without employee discipline. Discipline has been a matter of utmost
concern for all organizations. Maintenance of effective discipline in an organization
ensures the most economical and optimum utilization of various resources including
human resources. Thus, the objective of discipline in an organization is to increase and
maintain business efficiency. Effective discipline is a sign of sound human and
industrial relations and organizational health.

The different approaches to employee discipline include,(i) human relations approach,
(ii) human resources approach, (iii) group discipline approach, (iv) the leadership
approach, and (v) judicial approach.
The employee is treated as human being and his acts of indiscipline will be dealt from
the viewpoint of values, aspirations, problems, needs, goals behavior etc. Under human
relations approach the employee is helped to correct his deviations. The employee is
treated as a resource and the acts of indiscipline are dealt by considering the failure in
the areas of development, maintenance and utilization of human resources under the
human resources approach. The group as a whole, sets the standards of discipline, and
punishments for the deviations. The individual employees are awarded punishment for
their violation under the group discipline approach. Every superior administer the rules
of discipline and guides, trains and controls the subordinates regarding disciplinary
rules under the leadership approach. In Judicial approach, indisciplinary cases are dealt
on the basis of legislation and court decisions. The Industrial Employment (Standing
Orders) Act, 1946, to a certain extent, prescribed the correct procedure that should be
followed before awarding punishment to an employee in India. No other enactment
prescribed any procedure for dealing with disciplinary problems. But over a period of
time, a number of principles regarding the basic formalities to be observed in
disciplinary procedures emerged, gradually resulting from the awards of several
Industrial Tribunals, High Courts and the Supreme Court.