Assignment 19 – MD of Triple-A Ltd.

Says that HRP is a waste since

everything is changing fast. How would you as an HR manager convince the
MD about the usefulness of HRP?

Human resource is the most important asset of an organization . Human resources

planning are the important managerial function. It ensures the right type of people,
in the right number, at the right time and place, who are trained and motivated to
do the right kind of work at the right time, there is generally a shortage of suitable
persons.
I. Assessing Future Personnel Needs:
Whether it is surplus labour or labour shortage, it gives a picture of defective
planning or absence of planning in an organization. A number of organizations,
especially public sector units (PSUs) in India are facing the problem of surplus
labour.
It is the result of surplus labour that the companies later on offer schemes like
Voluntary Retirement Scheme (VRS) to eliminate surplus staff. Thus, it is better to
plan well about employees in advance. Through HRP, one can ensure the
employment of proper number and type of personnel.
II. Foundation for Other HRM Functions:
HRP is the first step in all HRM functions. So, HRP provides the essential
information needed for the other HRM functions like recruitment, selection,
training and development, promotion, etc.
III. Coping with Change:
Changes in the business environment like competition, technology, government
guidelines, global market, etc. bring changes in the nature of the job. This means
changes in the demand of personnel, content of job, qualification and experience
needed. HRP helps the organization in adjusting to new changes.
IV. Investment Perspective:
As a result of change in the mindset of management, investment in human
resources is viewed as a better concept in the long run success of the enterprise.
Human assets can increase in value as opposed to physical assets. Thus, HRP is
considered important for the proper planning of future employees.
V. Expansion and Diversification Plans:
During the expansion and diversification drives, more employees at various levels
are needed. Through proper HRP, an organization comes to know about the exact
requirement of personnel in future plans.
VI. Employee Turnover:
Every organization suffers from the small turnover of labour, sometime or the
other. This is high among young graduates in the private sector. This necessitates
again doing manpower planning for further recruiting and hiring.
VII. Conformity with Government Guidelines:
In order to protect the weaker sections of the society, the Indian Government has
prescribed some norms for organizations to follow. For example, reservations for
SC/ST, BC, physically handicapped, ex-servicemen, etc. in the jobs. While
planning for fresh candidates, HR manager takes into consideration all the
Government guidelines.
VIII. International Expansion Strategies:
International expansion strategies of an organization depend upon HRP. Under
International Human Resource Management (IHRM), HRP becomes more
challenging. An organization may want to fill the foreign subsidiary’s key
positions from its home country employees or from host-country or from a third
country. All this demands very effective HRP.
IX. Having Highly Talented Manpower Inventory:
Due to changing business environment, jobs have become more challenging and
there is an increasing need for dynamic and ambitious employees to fill the
positions. Efficient HRP is needed for attracting and retaining well qualified,
highly skilled and talented employees.

Assignment 26 – Think of 5 firms you want to submit a job application. List of

all factors which attract you towards the company.

Google

1. Google has everything that an employee would expect from one of the
largest companies in the United States in terms of market capitalization:
Bicycles and electric cars to get staff to meetings, gaming centers, organic
gardens, and eco-friendly furnishings. Google wants to make its employees'
lives easier, and it's constantly searching for ways to improve the health,
well-being, and morale of its Googlers. Google offers on-site physicians,
nurses, medical services and health care coverage to keep its employees
happy and healthy. Googlers can travel without worries; employees are
covered with travel insurance and emergency assistance on both personal
and work-related vacations.
2. Google also offers some of the best paid parental leave for new parents. Its
employees have paid leave up to 18 weeks if the father is the primary
caregiver. Mothers are still entitled to 22 weeks of maternity leave. Google
cares so much about new parents that it offers parents one-on-one
consultations to figure out their scheduling for daycare options, $500 to
 spend on baby bonding time and well as four child care centers on one of its
campuses.
3. Google even offers death benefits to deceased employees' families. If a
Google employee passes away, his or her domestic partner or spouse
receives a check for 50% of the employee's salary every year for 10 years. In
addition, surviving spouses see all of the deceased employee's stock option
immediately vested. Children of a deceased employee receive $1,000 per
month from Google until they reach the age of 19, or 23 if they are full-time
students.
4. Google also offers a Global Education Leave program, which enables
employees to take a leave of absence to pursue further education. All of this
education is covered by Google.
5. Since Google is one of the most well-known technology companies in the
world, it offers employees better job prospects should they decide to leave
the Googleplex. It also offers growth within the company, whether it be for
middle management or higher-level management opportunities.
6. Working at Google provides employees with a sense of contributing to the
worldwide population. Google employees positively impact society with the
applications and technology on which they are working. These technologies
would surely benefit the human race; for example, self-driving cars could
enable its passengers to catch up on sleep during their commutes. Its
accident rate is uncanny, with just a handful of accidents in 1.7 million miles
driven, many of which were determined to be caused by human error.
Google is developing new wearable technology—contact lenses with
technology that could read the user's blood glucose level, which is highly
beneficial to diabetics.
7. Google only looks for the best and brightest minds, and employees are
always exposed to other amazing employees and intelligent thinkers. Being
around other intelligent thinkers allows for a creative work environment,
collaboration and disruptive innovation.
8. Google offers its employees one of the most innovative work environment
cultures. Google cares so much about innovation that it has set forth nine
principles of innovation. One of the principles encourages Google
employees to spend 20% of their time pursuing innovative ideas about
which they are passionate about. Products and applications, such as Google
News, Google Alerts and Google Maps Street View, have been born from
this principle.
9. To help with morale, employees are free to bring their pets to work. Some
Googlers describe that being able to bring their pets to work keeps their
energy levels up, as well as bringing joy to other employees.
Ernst & Young
Ernst & Young has successfully created a Great Place to Work FOR
ALL their employees as they have excelled on the 5 dimensions that are a
hallmark of a High-Trust, High-Performance Culture™ – Credibility,
Respect, Fairness, Pride and Camaraderie. Ernst & Young have commendable
programs that aid employees in professional growth and development. Work-
life balance is promoted through outstanding flexibility and wellness
programs. Employees take pride in being associated with the organization.
Immense focus on employee safety and well-being makes it a Great Place to
Work!

American express
Paid Sick Leave, Paid Holidays / Vacation, Life Insurance/Disability, Flex-Time /
Flexible Schedule, Gym / Health Club / Fitness Membership ,Stock Bonus

Marriott
Paid Holidays / Vacation. ,Paid Sick Leave., Cell Phone.., Life
Insurance/Disability ,Food/Meals On Duty ,Food/Meal Discounts ,Hotel
Discounts.

Infosys
India’s second largest company with best infrastructure to their employees, air
conditioned dormitory well organized transport system, Employee recreation
center

Assignment 39 – you are requested to fill up a feedback sheet at the end of a

meal in a restaurant. How honest is your feedback? Is it a good technique to
assess effectiveness?

Feedback of the customer is a good technique to judge the performance of the

restaurant and satisfaction level of the customer. In today’s world the customer
satisfaction is the most important thing to run a business. Different customers have
different experience and from this the customer satisfaction level changes. So to
analyse the satisfaction of the customer one of the most commonly technique is to
conduct a survey throw filling up the forms. The process of communication and
service is not completed without taking feedback. So it’s the most important in
every process. The taking of feedback sometimes is every difficult as the customer
have no interest to give the feedback. In a restaurant feedback is essential to
analyse the customer will come again or not. The honesty of the feedback is
depend upon the mood of the customer. I will give the feedback honestly as after
eating the meal the customer get satisfied and will give the feedback accordingly to
the food. The feedback should be simple so that it is easily understandable by the
customer. It should not be too long that the customer get bored and will not give
the right information. Yes its a good technique to asses effectiveness as the
restaurant can know the area which they are lacking in and improve them through
the feedback they get from the customer which will help them to work effectively.

Assignment 5 – It is a general belief that recommendations form politicians

and corporates can help people to secure jobs. Is this true in today’s changing
corporate environment? Does it the same for both public and private sector
organizations? If you are an HR manager how would you handle such
situations?

The belief that recommendations from politicians and corporates can help people
to secure jobs is not true at this point of time. The company needs the efficient
workers not the lethargic one. Job can be taken by the recommendation of any one
but it is important to work hard and smart as the new disciplines are being used by
the organization and to cope up with that is the responsibility of the employee. No
one can do anything on this except the employee. Organization do not need the
employees who are not an assets to the company so they just fire the employee
after one or two warnings. The need of the organization are changed as the change
in the technology. In the private sector no job security is given to the people so
they prefer to work in public sector as the job security is available there. Now-a-
days the public sector also need the employees who is working in the effective and
efficient manner. The knowledge of the employees are the main criteria that is used
for the jobs. As the technology is advancing so the need of the human in the
organization is needed less. So to save the job of the human resource they need to
advance the skills. The public and private sectors are not same as the job security
in the public sector is more. The recommendation is not useful in the public sector
as they have to give exam before entering and interview. There are norms to fire or
hire people in public sector. But in the private sector recommendation can be used
for retaining of the employees. If I am the HR manager the job given to the person
should be advisable and recommendation from any higher authority are should not
be entertained.
Assignment 35 – You were subject to an orientation on the first day of your
entry into the college. What was your experience? Did the college provide all
the necessary details required?
The experience was good. The orientation was organized by the students and the
faculty members. They divided the students according to their mentors assigned to
them. They provide all the information about the faculty members and the course.
The dean and the faculty members also interacted with us. They told us about the
university and placements. There was no sign of ragging in the college. The
atmosphere was very healthy. There were speeches by the faculty members to
show us the path. We introduce ourselves to all the students and the faculty. All the
necessary information is provided to us by the college.

Assignment 33 – If you were the chairman of your company, what

considerations would guide your judgment on the following employment
issues:
 The hiring of relatives of employees
 Promotion from within vs selecting the best from outside
 Hiring SCs, STs, and candidates belonging to minority communities’

If am the chairman of my company then the hiring of relatives of the employees

are depend on the capability and from the proper interview without this no one can
enter into the organization. The relatives can enter but without the recommendation
of the employees they can have the job by their own. The reference can be used of
them. The hiring of relatives of the employee if they directly come to the interview
 Promotion from within the organization are needed to give employee motivation
and morale from this the employee will give their work more effort as they will
new they will get promoted. But this process should be done in a systematic way
but taking care of the talent needed by the company from outside. But if we select
from outside only the employees get demotivated so their should be balance
between the promotion and hiring we need both of them. To people get work hard
and they will get self esteem and recognition in the company. They will take their
work more seriously. The best from the outside is the technic where we can have
the best employees in the company.
 Hiring SCs, STs, and candidates belonging to minority communities’ is
important as there are rules and regulation made by the government on this and if
they work well in the organization they have equal right to work among others.
They will be no caste based discrimination among the employees.

Assignment 42 – Which training techniques do you recommend for each of the

following occupations? Why?: 1. A clerk in an office
2. A welder
3. An assembly-line worker
4. An inexperienced supervisor

Training constitutes a basic concept in human resource development. It is

concerned with developing a particular skill to a desired standard by instruction
and practice. Training is a highly useful tool that can bring an employee into a
position where they can do their job correctly, effectively, and conscientiously.
Training is the act of increasing the knowledge and skill of an employee for doing
a particular job. Training has specific goals of improving one’s capability,
capacity, and performance. Training is crucial for organizational development and
success.

The benefits of training can be summed up as:

 Improves morale of employees

 Less supervision
 Fewer accidents
 Chances of promotion
 Increased productivity

Training techniques recommended for the following occupations:

CLERK IN AN OFFICE
A clerk is who engaged in the work like keeping of records, filing, maintaining
accounts, etc.
The training given to the clerk should be on-the-job as he need to handle the daily
function of the office. Office clerks are responsible for executing a wide range of
administrative tasks associated with the daily functions of an office. Job instruction
training is the method to train these type of employees. Fill areas of gaps with
knowledge and skills, and change all negative attitudes to positive attitude.
A WELDER
Welders typically have to have good dexterity and attention to detail, as well as
some technical knowledge about the materials being joined and best practices in
the field.
Apprenticeship training is method which is used to train carpenters and plumbers.
They help to learn work place safety, using machine correctly. The on-the-job
training is best for the workers. It is usually combines job training with classroom
instruction in trade school, colleges or universities. The best method for perfecting
welding skills is through repeated practice, this method makes sure that employees
have easy and frequent access to up-to-date gas and arc welding equipment.
AN ASSEMBLY LINE WORKER
Assembly line workers are responsible for performing one task or a set of tasks in
an assembly process. Assembly lines are found in various factories where products
being manufactured consist of a number of components assembled to form a
complete unit.
The technique can be used for training is:
Apprenticeship training as it is useful to handle the machinery. Assembly line
worker need to handle the machinery.
Job instruction training can also be used here as the supervision is important in this
field by the supervisor.
AN INEXPERIENCED SUPERVISOR
Supervision means overseeing the subordinates at work at the factory level. The
supervisor is a part of the management team and he holds the designation of first
line managers. He is a person who has to perform many functions which helps in
achieving productivity. Therefore, supervisor can be called as the only manager
who has an important role at execution level.
In this we can use on-the-job training to help the supervisor. It can be use
technique of mentoring which the manager can help to understand the duties of the
supervisor. The duties can be clarify by the mentor. The off-the-job training can be
used programme instruction is used for handling the supervision as to describe the
duties of the supervisor.

Assignment 16 – Take 10 positions of any organization of your choice and

make a comprehensive list of skills required for different positions.
S.N Positions Skills Required
o.
1 CEO Building relationships
Listening skills
leadership
Understanding
Realistic optimism
Ability to learn from the past
Strong communication skills
Willingness to take calculated
risks
Reading people and adapting
to necessary management
styles

2 MD Presentation skills
Visionary leadership.
Ability to motivate a
workforce
Understanding of a multi-
faceted business operation
Effective management and
delegation
Communication and
negotiation
 Strong financial acumen
Planning and forecasting

3 MANGERS Planning
Delegation
Communication skills
Motivating
Decision-making
Problem-solving

4 SALES Customer service.

REPRESENTAT Meeting sales goals.
IVE
Territory management
Prospecting skills
Negotiation
Self-confidence
Product knowledge

5 ACCOUNTANT Self-motivation
Communication and
interpersonal skills of financial
decisions
Integrity
Ability to reflect on one's
own work as well as the wider
consequences
Teamworking ability.
Business acumen and interest
Organisational skills and
ability to manage deadlines.
Proficiency in IT

6 LAWYER Oral Communication

 Written Communication
Technology Skills
Client Service
Analytical and Logical
Reasoning
Legal Research
Time Management
Knowledge of
Substantive Law and Legal Pro
cedure

7 Software Computer programming and

Engineer coding
Problem solving and logical
thinking Software development
Teamwork
Object-oriented design (OOD)
Software testing and
debugging
Written and verbal
communication

8 Watchman Sobriety
Knowledge of the duties and
responsibilities
Ability to think and act quickly
in Courage
emergencies
Integrity
Ability to write accurate
reports of incidents
Willingness to work nights or
on unusual shifts
Reliability
Good vision
 9 Sweepers Ability to work both alone and
in a team
A reasonable level of fitness
Awareness of health and safety
procedures
Punctual, reliable and
trustworthy
Able to manage time
effectively

10 Marketing Good teamwork skills

manager Communication skills and
networking ability
Adaptability
Creativity and writing skills
Commercial awareness
Strong attention to detail
Good organisation and
planning skills
Numerical skills

Assignment 14 – Paul, the subordinate to James, the production head, is

always asking when he is getting promoted, but James feels, Paul is not fit for
promotion. What can James do to prevent Paul from pestering and leaving
the company?
Human resource planning is the process of determining and ensuring that the
organization will have an adequate number of qualified persons, available at the
proper times, performing jobs which meet the needs of enterprise and which
provide satisfaction for the individuals involved.
One of the objective of HRP is to manage employee turnover and optimum use of
human resources currently employed.
As in this case where Paul, the subordinates to James, the production head wants
promotion but James feels he didn’t fit for promotion. So, to stop Paul from
pestering and leaving the company, James must follow these measures-
 Give more praise and recognition.
 Set clear objectives and goals.
 Seek inputs and ideas.
 Be future driven.
 Give continual feedback.
 Don’t be too negative.
 Discuss employee growth and development plan in a separate meeting.

So these are some measures follow to prevent him from leaving. Other than that
the head must be honest with him and tell him that he is not ready for the
promotion.
 Focus on improving skills.
 Help them to find a path to promotion.
 Schedule separate meeting to discuss his development and career
progression.
 Praise and validate him.

So, in this way it helps James to prevent Paul from leaving the company.

Assignment 7 – Technology robs jobs. What are your views on this? How true
is it in Indian Context? Write down 10 practical examples of workforce
layoffs due to technological advancement.
Technology robs jobs. What are your views on this? How true is it in Indian
Context? Write down 10 practical examples of workforce layoffs due to
technological advancement.
Technological unemployment is the loss of jobs caused by technological change. It
is a key type of structural unemployment. Technological change typically includes
the introduction of labor-saving "mechanical-muscle" machines or more efficient
"mechanical-mind" processes (automation). Just as horses employed as prime
movers were gradually made obsolete by the automobile, humans' jobs have also
been affected throughout modern history.
Some of the views on technology robs jobs are:
 Industries across the globe are adopting new technologies for higher
efficiency and performance, lower manufacturing. Machines can reduce risk
and increase effectiveness. This could lead to elimination of a vast number
of semi or unskilled jobs, who make a substantial portion of the workforce in
manufacturing and agriculture sector.
 Automation isn’t just for blue-collar workers anymore. Computers are now
taking over tasks performed by professional workers, raising fears of
massive unemployment.
 Researchers at MIT foresee dismal prospects for many types of jobs as these
powerful new technologies are increasingly adopted not only in
manufacturing, clerical, and retail work but in professions such as law,
financial services, education, and medicine.
 “Jobs Lost, Jobs Gained: workforce transition in a time of automation”; a
research report by McKinney Global Institute, provides states that: By 2030,
75 million to 375 million workers (3 to 14 percent of the global workforce)
will need to switch occupational categories. Moreover, all workers will need
to adapt, as their occupations evolve alongside increasingly capable
machines.
 The pace of modern technological change is so rapid that many workers,
unable to adjust, will simply become obsolete.
 According to Joel Mokyr, a leading economic historian at Northwestern
University, “The current disruptions are faster and more intensive.” Mokyr
says “It is nothing like what we have seen in the past, and the issue is
whether the system can adapt as it did in the past.”
Examples of workforce layoffs due to technological advancement are:
Boxed, the bulk grocery superstore in a mobile app, decided to commit to its
employees displaced by robots after automating a fulfillment center. It was
founded in 2013 in Edison, N.J., and replaced three-quarters of the
warehouse jobs by Robots in April 2017.
 Infosys released its 11,000 employees due to automation in June 2017 in
India.
E-commerce firm Snapdeal confirmed in February 2017 that it would layoff
over 600 people across its e-commerce, logistics and payment units.
In 2017, Chinese smartphone maker LeEco laid off 85 per cent of its
employees as a part of its business strategy. The company, which was
launched in India in 2016, has decided to cut back its operations in the
country.
Cognizant laid off 6,000 employees in 2017. The technology major also said
that employees were removed for non-performance or to be believed due to
automation.
India’s largest engineering firm, Larsen and Toubro (L&T), announced in
2016 that it had sacked 14,000 employees in six months between April and
September, to cut the staff strength to required size.
Zomato, laid off 540 employees at the head office in Gurugram across its
customer, merchant and delivery partner support teams. The job cuts became
necessary as tech adoption made a few roles redundant.
India’s biggest private lender HDFC Bank reduced its staff by 6,096 (7 per
cent) employees March 2017. The staff cut is highest in a quarter since the
bank is now looking into ways to improve productivity and reduce costs.
Wipro, India’s third largest software services company, reportedly sacked
600 employees, and the reason could be technological advancement.

QUESTION 1 Write Short Notes on the following:-

I.BASE COMPENSATION AND SUPPLEMENTARY COMPENSATION
BASE COMPENSATION
 Base compensation entails monetary benefit to the employee in the form of
wages and salaries.
 It's giving the remuneration to the workers for doing the work. Base
compensation, therefore, involves payment to the workers for their work. In
base compensation, payment is in cash.
 Base compensation is determined by job evaluation, demand, and supply of
labour, organizations, and capacity to pay.
SUPPLEMENTARY COMPENSATION
 Supplementary compensation is also known as a fringe benefit as well as
hidden payroll. Supplementary, therefore, compensation denotes benefits
over and above their wages/salaries.
 Supplementary compensation is paid to increase their efficiency and retain
them while Base compensation wages and salaries are paid to compensate
for their services.
 Supplementary compensation is determined by the history of the
organization, the capacity of the organization to pay, and the need to retain
talented employees.

II. Difference on HRM and Strategic Man

 The governance of the workforce of the organization in a thorough and
structured manner is called Human Resource Management or HRM. A
managerial function which means framing of HR strategies in such a way to
direct employees, efforts towards the goals of an organization is known as
SHRM.
 In human resource management, the responsibility of the workforce lies with
the staff specialists, while in strategic human resource management, the task
of managing the workforce, is attired in the line managers.
 Human resource management emphasizes on employee relations, ensure
employees motivation, and also the firm complies to the necessary
employment laws. Conversely, SHRM centres on a partnership with internal
and external constituent groups.
 If we talk about responsibility, a conventional HRM is a cost centre. In
contrast with a strategic HRM which is an investment centre.
 HRM follows a fragmented approach, which stresses on applying
management principles while managing people in an organization. As
against this, SHRM tracks an integrated approach, which includes lining up
of business strategy with the company’s HR practices.
 HRM upholds short-term business goals and outcomes, but SHRM upholds
long-term goals and results of a business.
  The basic element in HRM is the capital and products, but people and their
knowledge are the construction blocks of SHRM
 In human resource management, strict control over employees exercised. On
the contrary, in strategic human resource management, no such control is
required, rather the rules for managing workforce is lenient.

III. HUMAN CAPITAL

Human capital is the stock of habits, knowledge, social and personality attributes
(including creativity) embodied in the ability to perform labour so as to produce
economic value.
Human capital is unique and differs from any other capital. It is needed for
companies to achieve goals, develop and remain innovative. Companies can invest
in human capital for example through education and training enabling improved
levels of quality and production. Human capital theory is closely associated with
the study of human resources management as found in the practice of business
administration and macroeconomics.
Human capital is the stock of habits, knowledge, social and personality attributes
(including creativity) embodied in the ability to perform labour so as to produce
economic value.
MEASURMENT OF HUMAN CAPITAL
 Since 2012 the World Economic Forum has annually published its Global
Human Capital Report, which includes the Global Human Capital Index
(GHCI).
 In October 2018, the World Bank published the Human Capital Index (HCI)
as a measurement of economic success. The Index ranks countries according
to how much is invested in education and health care for young people.

IV.POACHING
DEFINITION : The term employee poaching is used to describe practices that
involve companies hiring employees from their competitors. Employee poaching
oftentimes occurs in high-growth industries that rely on employees with
specialized skills.
Also known as employee raiding, employee poaching is the practice of
aggressively recruiting talented employees from competitors. The term gained
notoriety in 2010 when it was revealed that a number of companies attempted to
suppress the recruitment of their high-tech employees. Some of the better-known
parties to the High-Tech Employee Antitrust Litigation include Apple, Google,
Intel, and eBay. These companies subsequently agreed to no longer engage in no-
poaching agreements.
When an employer loses employees to competitors, they incur a number of
expenses; this includes recruiting, retraining, as well as sign-on bonuses.
Companies can attempt to legally suppress employee poaching in a number of
ways:
 Non-Compete Agreements: a contract between the employer and employee
stating the employee agrees not to work for competitors for a certain period
of time after resigning from the company. Unfortunately, non-compete
agreements are frequently found to be unenforceable in a court of law.
 Long-Term Incentive Plans: provides employees with compensation that is
tied to the future success and performance of the company. Not only do
these plans afford employees with a monetary incentive to remain with their
employer, they also make the employee feel they play a vital role in the
success of their business.
 Employee Engagement: a measure of the emotional connection an
employee has with their company. Employers will oftentimes sponsor
programs or develop annual initiatives aimed at increasing employee morale
and engagement.

V.POTENTIAL APPRASIAL
Potential appraisal is a future-oriented appraisal whose main objective is to identify
and evaluate the potential of the employees to assume higher positions and
responsibilities in the organizational hierarchy.
Many organizations consider and use potential appraisal as a part of the
performance appraisal processes. Potential appraising is different from appraising
performance.
The purpose of potential appraisal:
  To inform employees of their future prospects
 To enable the organisation to draft a management succession programme.
 To update training and recruitment activities.
 To advise employees about the work to be done to enhance their career
opportunities.
STEPS OF POTENTIAL APPRASIAL
a) Role Description
b) Qualities Required
c) Indicators of Quality
d) Indicators of Quality
e) Organising the System
f) Feedback

VI. Process of job evaluation

A job evaluation is a systematic way of determining the value/worth of a job in
relation to other jobs in an organization. It tries to make a systematic comparison
between jobs to assess their relative worth for the purpose of establishing a rational
pay structure.
Job evaluation begins with job analysis and ends at that point where the worth of a
job is ascertained for achieving pay equity between jobs and different roles.
The process of job evaluation involves the following steps:
Gaining acceptance: Before undertaking job evaluation, top management
must explain the aims and uses of the programme to managers, emphasizing
the benefits. Employees and unions may be consulted, depending on the
legal and employee relations environment and company culture. To
elaborate the program further, presentations could be made to explain the
inputs, process and outputs/benefits of job evaluation.
 Creating job evaluation committee: It is not possible for a single person to
evaluate all the key jobs in an organization. Often a job evaluation
committee consisting of experienced employees, union representatives and
HR experts is created to set the ball rolling.
Finding the jobs to be evaluated: Every job need not be evaluated. This may
be too taxing and costly. Certain key jobs in each department may be
identified. While picking up the jobs, care must be taken to ensure that they
represent the type of work performed in that department, at various levels.
Analysing and preparing job description: This requires the preparation of a
job description and also an analysis of job specifications for successful
performance. See job analysis.
Selecting the method of evaluation: The method of evaluating jobs must be
identified, keeping the job factors as well as organisational demands in
mind. Selecting a method also involves consideration of company culture,
and the capacity of the compensation and benefits function or job evaluation
committee.
Evaluating jobs: The relative worth of various jobs in an organisation may
be determined by applying the job evaluation method. The method may
consider the "whole job" by ranking a set of jobs, or by comparing each job
to a general level description. Factor-based methods require consideration of
the level of various compensable factors (criteria) such as level and breadth
of responsibility, knowledge and skill required, complexity, impact,
accountability, working conditions, etc. These factor comparisons can be
one with or without numerical scoring. If there is numerical scoring, weights
can be assigned to each such factor and scores are associated with different
levels of each factor, so that a total score is determined for the job. All
methods result in an assigned grade level.

VII. DIFFERENT TYPE OF SEPARATION

1. Retirement:
Retirement is the major cause of separation of employees from the organisation. It
can be defined as the termination of service of an employee on reaching the age of
superannuation. For example, at present the superannuation age for the teachers
working in the Central Universities is 62 years and in case of some state
government employees, it is 58 years. Some people characterize retirement as ‘role
less role’.

Retirement may be of two types:

(i) Compulsory Retirement:
This is the retirement when employees retire compulsorily from service on
attaining the age of superannuation. Some organisations like Universities may have
a policy to reappoint professionals and others who possess rare skills and expertise
for a limited time even after attaining superannuation.

(ii) Voluntary Retirement:

When organisations give option to its employees to retire even before
superannuation, it is called ‘voluntary retirement’. This scheme is termed as,
‘voluntary retirement scheme (VRS)’. Of late, in their efforts to downsize the
employees, organisations by providing certain incentives, are trying to encourage
their employees to opt for voluntary retirement. Employees in return of voluntary
retirement are given lumpsum payment. This type of retirement is also called
‘Golden Hand Shake’.

Retirement from service is a significant milestone in the life of an employee. Post-

retirement life requires a great deal of adjustment on the part of (retired) employee.
Here, organisation has a major role in facilitating smooth transition from job state
to jobless stage.

Against this background, some organisations like Citi Bank and Bank of America
organise counseling sessions and also offer investment related services. Some
organisations also extend medical and insurance benefits to the retirees.
2. Resignation:
Resignation is termination of service by an employee by serving a notice, called
‘resignation’ on the employer. Resignation may be voluntary or involuntary. A
voluntary resignation is when an employee himself/herself decides to resign on the
grounds of ill health, marriage, better job prospects in other organisations, etc.

Resignation is considered involuntary or compulsory when the employer directs

the employee to resign on grounds of duty and indiscipline or face the disciplinary
action. However, in case of involuntary resignation, a domestic enquiry should be
conducted before asking the employee to resign. This is because otherwise the
affected employee can go to the union or court of law and complain that he was
asked to resign under duress.

While some resignations may be advisable and beneficial for the organisation to
rectify the mistakes committed in hiring the employees, excessive turnover may be
alarming as well. In such case, it is appropriate for the organisation to trace out the
reasons behind resignations by conducting ‘exit interviews’ with the employees
who are leaving the organisation. Exit interviews may enable the organisation to
curb the employee turnover before it reaches to the proportion of exodus.

3. Layoff:
Layoff implies denial of employment to the employees for reasons beyond the
control of employer. Breakdown of machinery, seasonal fluctuations in demand,
shortage of power, raw materials, etc. are the examples of reasons leading to
layoff.

According to Section 2 (KKK) of the Industrial Disputes Act, 1947, lay off is
defined as “the failure, refusal or inability of an employer, on account of shortage
of coal, power or raw materials or accumulation of stocks or breakdown of
machinery or by any other reason, to give employment to a workman whose name
appears on the muster rolls of his industrial establishment and who has not been
retrenched”.

However, the worker needs to satisfy the following conditions to be entitled to

the compensation:
(i) Should not be casual worker

(ii) His name should appear in the muster roll of the establishment.

(iii) Have completed not less than one year of continuous service.

4. Retrenchment:
Retrenchment means permanent termination of an employee’s services for
economic reasons. Retrenchment occurs on account of surplus staff, poor demand
for products, general economic slowdown, etc. It’s worth noticing that termination
of services on account of retirement, winding up of a business, illness or on
disciplinary grounds does not constitute retrenchment.

Retrenchment is mainly seen in plantations, agricultural services, forestry and

logging, food products, manufacture of machinery and cotton textile. The reasons
pointed out behind retrenchment were mainly financial stringency and lack of
demand for their products.

The Industrial Disputes Act, 1947 makes it obligatory for organisations employing
100 or more employees to give three months’ notice to the employee to be
retrenched and also seek prior approval of the Government.

In other organisations, employee must be served one month’s prior notice in

writing indicating the reasons for retrenchment. He/she should be paid
compensation equal to 15 days’ wages for every completed year of service. As and
when there is need for employing people in future, the retrenched employee must
be given preference.

5. Dismissal:
Dismissal is termination of service of an employee as a punitive measure. This
may occur either on account of unsatisfactory performance or misconduct.
Persistent failure on the part of employee to perform up to the expectations or
specified standard is considered as unsatisfactory performance. Wilful violation of
rules and regulation by the employee is treated as misconduct. Dismissal is a
drastic step seriously impairing the earnings and image of the employee.

Therefore, dismissal as a measure should be resorted to with great care and

caution. It must be justified and duly supported by the just and sufficient cause.
Before an employee is dismissed, he must be served advance notice to explain his
position. The reasons for dismissal must be clearly made known to the employee.

Q2. “In the light of the ever changing environment, management of human
resources has become a challenge for the HR professionals”. Analyze the
above statement by discussing the emerging challenges in the field of HRM.

“In the light of the ever changing environment, management of human

resources has become a challenge for the HR professionals”

From the above statement, we come to the point that we stay in an ever changing,
complex environment and with introduction of tighter labor markets; economic
uncertainty and globalization are reasons sufficient enough to make us anxious.

Here are few challenges of human resource management:

 1. Retaining your best talent – Make it your top priority

Gone are the days where recruiting good talent was enough, retaining that good
talent is also imperative. Especially those employees who possess greater
professional and technical knowledge are much in demand in the job market as
such employees have the ability to keep their company ahead in the race. Such
employees are invaluable assets for any company. Employee development and
engagement, health and safety, recognition, flexible work timings, work-life
balance are some examples of novel approaches that you could use to retain your
employees.

2. Ensuring better employee productivity to maximise your profits

Maximizing profit and minimizing cost is the core of every business. Higher the
productivity level, more successful you will be. So ensuring that productivity
levels of your employees are always high should be your top priority. However
despite continuous effort, you might sometimes get unsatisfactory results. In such
case, you should thoroughly analyze the situations and make proper conclusions
whether it is the result of inefficient employee or inadequate resources.

In case it is due to inefficient employee, training the employee, or even recruiting

new staff could be a solution or finding alternative resources for sufficient input if
inadequate resources are the case. HRM should manage on-site as well as off-site
job trainings for employees. Providing training and support to employees not only
benefits the company but also helps the employees who take this route to feel like
they are a vital part of the business.

3. Managing a diverse workforce: Unity in diversity is the new business

mantra

Composition of workforce is getting diverse at present situation. Diversity is not

only created by age, gender, educational background and religion but also by the
nature, personality and background of workers. However, with a more diverse
workforce, some usual issues such as harassment or discrimination may arise. To
control such instances, a company must formulate and implement strict rules and
regulations.

4. Dealing with the “new normal” – Globalization

We live in a global world today. In fact, mergers, acquisitions, collaborations,

takeovers are a common phenomenon. While internationalization of firms is
obviously a sign of success, it is also a challenge as with globalisation, you also
have to deal with several challenges related to different languages, work culture,
management approach, culture and tradition. You are also required to handle
various functions such as scheduling meetings, managing holidays and outsourcing
of talent to overcome these challenges.

5. Resistance to change-What if I am replaced by a machine in the future?

This is a common fear which plagues the mind of many employees. Especially the
ones who consider change to be a threat and think that their roles within the
company will be replaced by a machine or computer that can do the job cheaper or
faster.

As with any change in the workplace, changes in technology could cause anxiety
or even resistance among your employees. The role of the human resource
manager would be to develop strategies to combat this resistance to change which
begins by assuring employees of their worth for the business. They must be able to
perceive the technology as an aid not an obstacle to their work.

6. Maintaining privacy and managing vital business information

As the technology within an organization advances, so do the privacy and security

concerns connected with those technical changes. Ensuring that your employees
are well trained in securing data and hence preventing privacy breaches Providing
employee training on how to secure data and preventing any breach of privacy thus
ensuring the safety of sensitive business information is a key challenge for human
resources. Communicating with technology vendors and keeping up-to-date with
the technical aspects of the company are some more ways for human resources
managers to recognize and confront this challenge.

7. Maintaining discipline and ensuring successful achievement of business

goals

Discipline is one of the key issues, lack of which can cause various problems
impacting the productivity of the company. For instance, if discipline is not
maintained; employees may neglect their tasks and duties or even procrastinate
their tasks and misbehave with co-workers. The ultimate result of these activities is
decreased productivity of your company.

You need to make your policies clear and inform every employee about your
disciplinary procedures as well as let them know who they can appeal to. You must
follow different processes depending on the severity of the employee’s actions.
There is a need to ascertain whether discipline is due to employee performance
issue or if it is misconduct.

8. Embrace technology or get extinct.

Any company must consider technological changes as the present day

world demands every firm to move with the change, or else be left
behind .Technological changes influence the overall nature of work and businesses
need to find employees that are able to adjust with the change.

During this process, unemployment as well as employment opportunities arise,

creating new challenges for HRM. With new developments in technology as well
as with the use of new tools, such as talent networks and internal social networks,
there is the promise of increased flexibility and productivity.

9. Leadership Development and Succession Planning

Leadership development is one of the biggest challenges for human resource

management. It needs to be a critical strategic initiative. HR professionals are
expected to provide the essential structure, processes and tools to select the
best and develop the future leaders of the organization.

Most such initiatives can also be successfully conducted with the use of a scientific
approach through customised assessments. With online assessments on identifying
the best talent, predicting success at your workplace as well as building the next
set of leaders by evaluating them through this approach can be the best next steps.

Q3. “Human Resources planning is a prerequisite for effective management of

HR” In the light of this statement, analyze the significance of human resource
planning

Human Resource Planning is a systematic process of forecasting both the

prospective demand for and supply of manpower, and employment of skills with
the objectives of the organization. It can also be termed as the method of reviewing
the manpower necessities to ensure that right kind of skills is made available to the
organization. The human resource planning is and important process aiming to link
business strategy and its operation. The importance of human resource planning
are as follows:
1. Future Manpower Needs

Human resource planning ensures that people are available to provide the
continued smooth operation of an organization. It means, human resource planning
is regarded as a tool to assure the future availability of manpower to carry on the
organizational activities. It determines the future needs of manpower in terms of
number and kind.

2. Coping With Change

Human resource planning is important to cope with the change associated with the
external environmental factors. It helps assess the current human resources through
HR inventory and adapts it to changing technological, political, socio-cultural, and
economic forces.

3. Recruitment Of Talented Personnel

Another purpose of HR planning is to recruit and select the most capable personnel
to fill job vacancies. It determines human resource needs, assesses the available
HR inventory level and finally recruit the personnel needed to perform the job.
4. Development Of Human Resources

Human resource planning identifies the skill requirements for various levels of
jobs. Then it organizes various training and development campaigns to impart the
required skill and ability in employees to perform the task efficiently and
effectively.

5. Proper Utilization Of Human Resources

Human resource planning measures that the organization acquires and utilizes the
manpower effectively to achieve objectives. Human resource planning helps in
assessing and recruiting skilled human resource. It focuses on the optimum
utilization of human resource to minimize the overall cost of production.

6. Uncertainty Reduction

This is associated with reducing the impact of uncertainty which are brought by
unsudden changes in processes and procedures of human resource management in
the organization.
Q4. Explain the process of selection of employees in an organization? Describe
any three types of employment test commonly used in Industry?

Selection is a long and tedious process. Every candidate has to pass through
several hurdles before he/she can get selected for job. The whole exercise might be
called a rejection exercise but it has a positive outcome in terms of the appropriate
personnel selected.

Selection process involves the following steps:

Step 1. Preliminary Interview:

It is the first step in selection. Initial screening is done in this step and all the
undesirable applicants are weeded out. This interview is generally conducted by
lower level executives. It is a very important step as it shifts out all the unqualified,
not desirable applicants and the HR manager can then concentrate on the other
applicants without wasting time. The candidates are generally told about job
specifications and the skills required for it. This process screens the most obvious
misfits.

Step 2. Screening of Applicants:

These days application forms of almost all organizations can be downloaded from
the website or may even be provided on request. The form asks for basic things
like educational qualifications, experience, age etc.

Once the filled application is brought to the screening committee, it checks the
details and calls the candidate for selection test. The purpose of this screening test
is also to read out the hot suitable candidates as spending time on them means
waste of money.

Step 3. Employment Tests:

Employment tests are device to check the areal knowledge of candidates for the
respective jobs. These tests are very specific as they enable the management to
bring out right type of people for the jobs.
Step 4. Selection Interview:

Interview is an examination of the candidate where he sits face to face with the
selection body and answers to their information given by the candidate about his
abilities and the requirements of the jobs.

Step 5. Checking of References:

Once the candidates interview is over, the reference he had mentioned are checked
by the personnel department. His old employers may be asked some quick
questions on phone about the candidate’s behavior with co-workers, management
etc. Further his/her regularity at work and his character can also be inquired about
from other references.

Step 6. Medical Examination:

After a candidate has been approved for the job, his physical fitness is examined
through medical specialists of the company. If the report says that he or she is
medically fit for the job they are then finally selected. In case there is a problem
with the fitness, the candidates are given reasons for rejection.

Step 7. Final Selection/Hiring:

The line managers are then asked to give final decision after all technical and
medical tests are cleared by the candidate. A true understanding between the line
manager and the HR manager facilitates good selection. Therefore, the two
together take final decision and intimate it to the candidate. The HR department
may immediately send appointment letter to the selected person or after some time
as the time schedule says.

Three types of employment test commonly used in Industry are as follows:

(i) Aptitude Tests:

Aptitude means the potential which an individual has for learning the skills
required to do a job efficiently. Aptitude tests measures an applicant’s capacity and
his ability to learn a given job if given adequate training. These tests are the most
promising indices for predicting employee’s success. Aptitude tests can be divided
into general and mental ability or intelligence tests and specific aptitude tests such
as mechanical aptitude tests, clerical aptitude tests, etc.
(ii) Achievement Tests:

The candidate’s achievement in his career is tested regarding his knowledge about
the job and actual work experience. These tests are more useful to measure the
value of specific achievement when an organization wishes to employ experienced
candidates.

(vi) Personality Tests:

Personality tests are aimed at finding out emotional balance, maturity,

temperament, etc., of the candidate. It is very difficult to design and use these tests
as they are concerned with discovering clues to an individual’s emotional
reactions, maturity, etc. Personality tests have disadvantage in the sense that they
can be faked by sophisticated candidates and most candidates give socially
acceptable answers. Further, personality tests may not successfully predict job
success.

Q5. “Assessing training and development needs is one of the most important
aspects in effective training and development system.” Examine the statement
and suggest steps for assessing training and development needs

“Assessing training and development needs is one of the most important aspects in
effective training and development system.”

In the light of above statement,we can say that there are many reasons why
organizations need to plan a training program – to update employees on process
improvements, the roll-out of new equipment or technology, to address changes in
laws or industry regulations, the realignment of job functions due to restructuring,
or to close the performance gaps demonstrated by particular employees.

However, some companies may want to skip this step, thinking a needs assessment
is a waste of valuable time and resources. Here are 5 good reasons to perform a
training needs assessment prior to implementing a new program.

1. Ensure the training is addressing the actual business need

The manager or project leader may think the training they have identified is the
right course of action, but once the trainer begins to ask questions about the
requirements they may uncover a different issue. To ensure the program meets the
needs of the business, the training plan may have to change. The training needs
assessment asks and answers the basic questions of who, why, what, when and
how.

2. Improve learning and retention

When creating a corporate training program, identify who will require the training
and customize the course content to the specific department or role. The more
relevant the information is to the group, the better the learning and retention, and
more successful the training. Also, depending on the target audience, the trainer
may explore different delivery methods to enhance the learning process.

3. Achieve a greater return on the time investment

From the project leader who identifies a training need, to the trainer or facilitator
who builds the program and delivers the session, to the employees who participate,
there is often significant time spent by everyone involved. Conducting a training
needs assessment will deliver a higher return on that investment.

4. Benefit the bottom line

Successful corporate training programs will provide employees with the skills they
need to improve job performance and lead to greater productivity, positively
impacting the company’s bottom line.

5. Save time and money

While some project leaders may think a needs assessment is an unnecessary waste
of valuable resources, it can actually save time and money by ensuring the right
training program is developed, implemented and delivered, and the employees gain
the appropriate knowledge and skills to perform their jobs.

Six Steps to Conduct Training Needs Analysis

 Set the desired outcomes

Before you begin a Training Needs Analysis, you need to know the training goal.
That should be in line with the business goals. You can determine the training goal
specific to a particular job role, department, or the whole organization. Defining
the training goals keeps the TNA on track. Examples of training goals:
Improve the order taking capabilities of employees by a certain percent

Improve sales deal closures by sales reps to certain extent

 Prioritize competencies

In this step, you need to identify the desired competencies, the Knowledge, Skills,
and Abilities (KSAs) of your employees linked to the desired business outcomes.
You can do it by collecting data from Subject Matter Experts (SMEs) through
surveys, interviews, questionnaires, tests, SWOT analysis, and other methods.

The collected data should reveal the relative importance of each competency in
achieving the set business goals. You can measure the importance of each
competency on a scale of 1 to 5, i.e. Not Important to Extremely Important. You
can shortlist competencies critical to achieve the desired business outcomes. Then
you can include them in the TNA.

 Evaluate desired competencies

After shortlisting the important competencies, you have to evaluate them to train
your employees. You can list the expected and trainable competencies based on the
research done with the collected data. You can also assess the desired
competencies by conducting online tests or performance evaluation surveys of
employees.

If you are evaluating the competencies of employees in various roles, you can use
multiple rater surveys or 360 degree surveys. You can also conduct tailor-made
tests to assess specialized knowledge related to their work segments. These can be
done through customized Multiple Choice Questions (MCQs), role-play exercises,
and other methods.

 Find the performance gaps

You can check the performance gaps in individual employees based on the
competencies evaluation. Then it becomes easy to recognize how many employees
need to improve in specific competencies. Setting a standard will help you identify
how many employees are above and below that set norm. Those below the
standard need training.

 Select the training methods

In this step, you need to select the right training method for each of the expected
competencies. For this, you can enlist the help of learning and development
professionals who are well versed in adult learning principles and organizational
training.

Here are some popular training methods:

Instructor-led training

On-the-Job training (OJT)

E-learning

Video conferences

So, you need to understand which training method is important based on the
content, learning styles, and also retention.

Consider the costs and benefits

In this step, you can consider the costs for each training method and the extent to
which performance gaps can be addressed.

Q6. Describe the concept of job evaluation. Classify the quantitative methods
of job evaluation with example.
Describe the concept of job evaluation. Classify the quantitative methods of
job evaluation.
A job evaluation is a systematic way of determining the value/worth of a job in
relation to other jobs in an organization. It tries to make a systematic comparison
between jobs to assess their relative worth for the purpose of establishing a rational
pay structure. Job evaluation needs to be differentiated from job analysis. Job
analysis is a systematic way of gathering information about a job. Every job
evaluation method requires at least some basic job analysis in order to provide
factual information about the jobs concerned. Thus, job evaluation begins with job
analysis and ends at that point where the worth of a job is ascertained for achieving
pay equity between jobs and different roles.
METHOD
There are primarily three methods of job evaluation: (1) ranking, (2) classification,
(3) Factor comparison method or Point method. While many variations of these
methods exist in practice, the three basic approaches are described here.
Ranking method
Perhaps the simplest method of job evaluation is the ranking method. According to
this method, jobs are arranged from highest to lowest, in order of their value or
merit to the organization. Jobs can also be arranged according to the relative
difficulty in performing them. The jobs are examined as a whole rather than on the
basis of important factors in the job; the job at the top of the list has the highest
value and obviously the job at the bottom of the list will have the lowest value.
Jobs are usually ranked in each department and then the department rankings are
combined to develop an organizational ranking. The variation in payment of
salaries depends on the variation of the nature of the job performed by the
employees. The ranking method is simple to understand and practice and it is best
suited for a small organization. Its simplicity however works to its disadvantage in
big organizations because rankings are difficult to develop in a large, complex
organization. Moreover, this kind of ranking is highly subjective in nature and may
offend many employees. Therefore, a more scientific and fruitful way of job
evaluation is called for.
Classification method (Grading method)
According to this method, a predetermined number of job groups or job classes are
established and jobs are assigned to these classifications. This method places
groups of jobs into job classes or job grades. Separate classes may include office,
clerical, managerial, personnel, etc. Following is a brief
description of such a classification in an office.
Class I - Executives: Further classification under this category may be Office
Manager, Deputy office manager, Office superintendent, Departmental supervisor,
etc.
Class II - Skilled workers: Under this category may come the Purchasing assistant,
Cashier, Receipts clerk, etc.
Class III - Semiskilled workers: Under this category may come Steno typists,
Machine-operators, Switchboard operator etc.
Class IV - Unskilled workers: This category may comprise peons, messengers,
housekeeping staff, Daftars [clarification needed], File clerks, Office boys, etc.
The job grading method is less subjective when compared to the earlier ranking
method. The system is very easy to understand and acceptable to almost all
employees without hesitation. One strong point in favour of the method is that it
takes into account all the factors that a job comprises. This system can be
effectively used for a variety of jobs.
The weaknesses of the Grading method are:

 Even when the requirements of different jobs differ, they may be combined
into a single category, depending on the status a job carries.
 It is difficult to write all-inclusive descriptions of a grade.
 The method oversimplifies sharp differences between different jobs and
different grades.
 When individual job descriptions and grade descriptions do not match well,
the evaluators have the tendency to classify the job using their subjective
judgements.
Factor comparison method or Point method
This method is widely used and is considered to be one of the reliable and
systematic approach for job evaluation in mid and large size organisations. Most
consulting firms adopt this method, which was pioneered by Edward Hay in 1943.
Here, jobs are expressed in terms of key factors. Points are assigned to each factor
after prioritizing each factor in order of importance. The points are summed up to
determine the wage rate for the job. Jobs with similar point totals are placed in
similar pay grades. The procedure involved may be explained thus:
1) Select key jobs. Identify the factors common to all the identified jobs such as
skill, effort, responsibility, etc.
2) Divide each major factor into a number of sub factors. Each sub factor is
defined and expressed clearly in the order of importance, preferably along a
scale. The most frequent factors employed in point systems are:
a. Skill (key factor): Education and training required, Breadth/depth of
experience required, Social skills required, Problem-solving skills,
Degree of discretion/use of judgment, Creative thinking
 b. Responsibility/Accountability: Breadth of responsibility, Specialized
responsibility, Complexity of the work, Degree of freedom to act,
Number and nature of subordinate staff, Extent of accountability for
equipment/plant, Extent of accountability for product/materials;
c. Effort: Mental demands of a job, Physical demands of a job, Degree
of potential stress. The educational requirements (sub factor) under
the skill (key factor) may be expressed thus in the order of
importance.

d. Find the maximum number of points assigned to each job (after

adding up the point values of all sub-factors of such a job).
e. This would help in finding the relative worth of a job. For instance,
the maximum points assigned to an officer's job in a bank come to
540. The manager's job, after adding up key factors + sub factors
points, may be getting a point value of say 650 from the job
evaluation committee. This job is now priced at a higher level.
3) Once the worth of a job in terms of total points is expressed, the points are
converted into money values keeping in view the hourly/daily wage rates. A
wage survey is usually undertaken to collect wage rates of certain key jobs
in the organization.

Q7. Explain the steps of the performance appraisal process. Outline the
limitation of traditional methods of performance appraisal.
Performance appraisal process-
1. Establishing performance standard- The first step in the process of
performance appraisal is the setting up of the standards which will be used to
as the base to compare the actual performance of the employees. This step
requires setting the criteria to judge the performance of the employees as
successful or unsuccessful and the degrees of their contribution to the
 organizational goals and objectives. The standards set should be clear, easily
understandable and in measurable terms.
2. Communicating the standards- Once set, it is the responsibility of the
management to communicate the standards to all the employees of the
organization. The employees should be informed and the standards should
be clearly explained to the employees. The standards should also be
communicated to the appraisers or the evaluators and if required, also be
modified according to the relevant feedback from the employees or the
evaluators.
3. Measure the actual performance- The most difficult part of the Performance
appraisal process is measuring the actual performance of the employees that
is the work done by the employees during the specified period of time. It is a
continuous process which involves monitoring the performance throughout
the year. This stage requires the careful selection of the appropriate
techniques of measurement, taking care that personal bias does not affect the
outcome of the process and providing assistance rather than interfering in an
employees work.
4. Comparing actual performance with desired performance- The actual
performance is compared with the standard performance to tell the
deviations in the performance of the employees from the standards set. If the
actual performance being more than the desired performance or, the actual
performance being less than the desired performance depicting a negative
deviation in the organizational performance. It includes recalling, evaluating
and analysis of data related to the employees’ performance.
5. Discussing results (feedback)- The result of the appraisal is communicated
and discussed with the employees on one-to-one basis. The feedback should
be given with a positive attitude as this can have an effect on the employees’
future performance. Performance appraisal feedback by managers should be
in such way helpful to correct mistakes done by the employees and help
them to motivate for better performance but not to demotivate.
6. Decision making- The purpose of conducting employee performance
appraisal is for making decisions about employees without any bias by the
HR manager. Decision-making by HR managers about employees
rewarding, promotions, demotions, transfers and sometimes
 suspensions/dismissal of employees are depended upon the employee
performance appraisal.

Limitations of traditional method of performance appraisal are-

1. Halo effect - A hallo error takes place when one aspect of an individual’s
performance influences the evaluation of the entire performance of
individual, just an assessment of the performance of a student in his or her
examination being influenced by the opening paragraph of every answer. In
an organization, a halo error occurs when employee who works late
constantly might be rated high on productivity and quality of output as well
as motivation. Similarly, an attractive or popular employee might be given a
high overall rating. Rating employees separately on each number of
performance measures and encouraging raters to guard against the halo
effect are the two ways to reduce the halo effect.
2. Rater effect- this includes favouritism, stereotyping and hostility.
Excessively high or low scores are given only to certain individuals or
groups based on the rater’s attitude toward the rate, not on actual outcomes
or behaviours. Sex, age, race and friendship biases are example of this type
of error.
3. Spillover effect- this refers to allowing past performance appraisal ratings to
unjustifiable influence current ratings. Past ratings, good or bad, results in
similar rating for the current period although the demonstrated behaviour
doesn’t deserve the rating, good or bad.
4. Status effect- it refers to overrating of employees in higher- level job or jobs
held in high esteem, and underrating employees in lower level job or jobs
held in low esteem.
5. Leniency and Strictness- The appraisers differ in their tendencies towards
rating. Some are quite lenient and others are stricter. These tendencies of the
evaluator shadow their evaluation of employees. The lenient evaluator
assigns high scores to the employees while stricter assigns comparatively
low scores to the employees for their performance.
6. Perpetual set- this occurs when the rater’s assessment is influenced by
previously held beliefs. If the supervisor , for example, has belief the
employees hailing from one particular region are intelligent and
 hardworking, his subsequent rating of an employee hailing from the region
tends to be favourably high.

Q8. Describe the components of employee’s compensation. What factor

determine the wage structure in an industrial enterprise?

Components of Employee Compensation

Salary and Wages

In a compensation package, these typically make up the single largest component.

This comes as no surprise since they are what potential and current employees use
as a common point of comparison. The person's experience and skills should
determine the salary, with subsequent increases in the future depending on the
employee's value, performance level, and contribution to the company.

Bonuses

Employee bonuses are one common way employers provide performance

incentives and are usually paid out annually, often at the end of the year, in a single
lump sum. A formal way of doing this is through profit-sharing plans. However,
these are often tied to the company’s success versus for rewarding and
compensating employees for their individual performances and meeting goals.

Federal/State Pay Requirements

State and federal laws are in place for protecting employees from bad employment
practices that could negatively affect the employee's paycheck. There are minimum
standards set via federal labor laws that employers are required to follow; state
laws expand this protection in some cases. Employers are required by many states
to pay the state minimum wage, which when compared to the federal wage, is a
little more per hour.

The Fair Labor Standards Act (FLSA) requires employers to pay overtime (one-
and-one-half times the hourly rate) to certain employees. Overtime is often due to
employees who work over 40 hours in a week since it is measured not by the day,
but rather by the week.

Providing a Competitive Package

Many employers offer a competitive package of employee benefits to attract and

retain employees. Along with a competitive wage or salary, additional benefits are
usually provided. Smaller companies might offer fewer components in the
package; however, the majority of larger corporations, as well as most all public
sector government employers, offer a competitive and extensive employee benefits
package.

Long-Term Incentives
Part of a competitive package could include stock grants or stock options to serve
as a long-term incentive.

Health Insurance

Health insurance is fairly standard with medium to large-size companies and some
small businesses. Health insurance offers great value to the employees and saves
them money since it is employer-sponsored. This offers employees with peace of
mind since they know they have coverage; even with existing health issues.

Life and/or Disability Insurance

This type of insurance will usually cost the employee less if purchased through the
employer and is an option.

Retirement Plan

A common practice for employers is to offer a 401(k) plan since it is less

expensive than regular pension plans and fairly easy to administer. Employees
have more control over how much they contribute and invest which is why they
like these plans. Many employers match the amount invested or at least contribute
in some way. Smaller companies will still try to have a plan in place for their
employees but might not contribute any money to them.

Time Off

Time off includes vacations, holidays, personal days, bereavement, and sick days.
For employers who are unable to offer competitive wages and salaries, they usually
seal the deal by offering more time off. Some employers might not make any
distinction between vacation, personal, or sick days which allows the employee
schedule time off when needed through the year at their discretion.
Miscellaneous Compensation

This type of compensation can include things like employee assistance programs
that may offer anything from legal assistance to psychological counseling or
company cars to company discounts.

Overall, a competitive salary, 401(k), and health insurance are standard practice for
attracting and keeping talent in a company. Companies can offer a more
competitive employee package to bring in and retain the higher caliber staff that
can add extra profit to their bottom line.

Following factors influence the determination of wage rate:

1. Ability to Pay:

The ability of an industry to pay will influence wage rate to be paid, if the concern
is running into losses, then it may not be able to pay higher wage rates. A
profitable enterprise may pay more to attract good workers. During the period of
prosperity, workers are paid higher wages because management wants to share the
profits with labour.
2. Demand and Supply:
The labour market conditions or demand and supply forces to operate at the
national and local levels and determine the wage rates. When the demand for a
particular type of skilled labour is more and supply is less than the wages will be
more. One the other hand, if supply is more demand on the other hand, is less then
persons will be available at lower wage rates also.

According to Mescon,” the supply and demand compensation criterion is very

closely related to the prevailing pay comparable wage and on-going wage concepts
since, in essence to all these remuneration standards are determined by immediate
market forces and factors.
3. Prevailing Market Rates:
No enterprise can ignore prevailing wage rates. The wage rates paid in the industry
or other concerns at the same place will form a base for fixing wage rates. If a unit
or concern pays low rates then workers leave their jobs whenever they get a job
somewhere else. It will not be possible to retain good workers for long periods.

4. Cost of Living:
In many industries wages are linked to enterprise cost of living which ensures a
fair wages to workers. The wage rates are directly influenced by cost of living of a
place. The workers will accept a wage which may ensure them a minimum
standard of living.

Wages will also be adjusted according to price index number. The increase in price
index will erode the purchasing power of workers and they will demand higher
wages. When the prices are stable, then frequent wage increases may not be
required

5. Bargaining of Trade Unions:

The wage rates are also influenced by the bargaining power of trade unions.
Stronger the trade union, higher will be the wage rates. The strength of a trade
union is judged by its membership, financial position and type of leadership.

6. Productivity:
Productivity is the contribution of the workers in order to increase output. It also
measures the contribution of other factors of production like machines, materials,
and management .Wage increase is sometimes associated with increase in
productivity. Workers may also be offered additional bonus, etc., if productivity
increases beyond a certain level. It is common practice to issue productivity bonus
in industrial units.

7. Government Regulations:
To improve the working conditions of workers, government may pass a legislation
for fixing minimum wages of workers. This may ensure them, a minimum level of
living. In under developed countries bargaining power of labour is weak and
employers try to exploit workers by paying them low wages. In India, Minimum
Wages Act, 1948 was passed empower government to fix minimum wages of
workers. Similarly, many other important legislation passed by government help to
improve the wage structure.

8. Cost of Training:
In determining, the wages of the workers, in different occupations, allowances
must be made for all the exercises incurred on training and time devoted for it.