2016 – Solved Question Paper | Human Resource Management | Final Year – Masters of Commerce (M.Com) | Dibrugarh University

2016 – Solved Question Paper | Human Resource Management | Final Year – Masters of Commerce (M.Com) | Dibrugarh University




PAPER- 204

1(a) Discuss the role of Human Resource Management in the management of a large manufacturing enterprise. (16)

-> HRM ensures the smooth functioning of an organization. The process starts with formulating the right policies for the job requirements and ends with ensuring a successful business growth of the company. Therefore, HRM is an invisible agent that binds all the aspects of the organization to ensure smooth progress.

In this modern era, organizations have become more people-centric than ever — especially since this approach pays great dividends in terms of enhanced employee performance and lower attrition rates. Human Resource Management or HRM plays a key role in allowing employers and organizations to reach their objective.

The functions of HRM hold great significance in the growth and overall development of the organizations. After all, when the employees grow and develop their skills, the organization will automatically experience growth and expansion. Some of the primary functions of HRM include job design and job analysis, recruitment/ hiring and selection, training and development, compensation and benefits, performance management, managerial relations and labor relations.

Every HR department develops along with the development and growth of the organization. The HRM evolves through 3 distinct stages where it begins as a Business Function, turns into a Business Partner and afterwards a Strategic Partner.

In every one of these cases, the job and responsibilities of the HR division evolve to be more strategic. At more elevated levels of maturity, the HR department can increase the value of the leadership potential, top talent, company goals, employee retention rate and long haul manageability of the association.

At each stage, the credits and worth added by the Human Resources department change and the mediums required for this will change. At any rate, HR in an association should be liable for overseeing employee information, finance, time management, and setting up organization strategies. The HR department handles the effectiveness of human resource strategies and should be incorporated into every decision making process in the organization.

As a business partner, HR’s job is to meet the “current business needs” with the goal that the association can develop at a quantifiable rate. At this stage, HR moves to competency-based recruitment, pay grades, sudden turn of events, correspondence and organization plan.

HR helps in formalizing the organization hierarchy (who does what and reports to whom). That done, it recognizes the skills essential for each work job. Further, it helps in characterizing programs that are essential for building up these abilities, recruitment strategies to assess the expertise levels and benchmarking the abilities against industry norms and contenders etc.

All out salary (finance and advantages) likewise turns into a centre territory where the HR assists the association with drawing in and holding talented employees by turning into a pioneer in paying the employees.

Utilizing the expertise database and the company structure, the HR work develops pay hikes, improves the preparation capacity and makes the recruitment work more receptive to the abilities required by the association.

Organizations that see their HR as a strategic business partner have faith in giving the full maturity of their HR work. Such organizations are centered on accomplishing leadership roles instead of a year-on-year development.

So, let us find out more about each of these seven functions of HRM.

1. Job design and job analysis

One of the foremost functions of HRM is job design and job analysis. Job design involves the process of describing duties, responsibilities and operations of the job. To hire the right employees based on rationality and research, it is imperative to identify the traits of an ideal candidate who would be suitable for the job. This can be accomplished by describing the skills and character traits of your top-performing employee. Doing so will help you determine the kind of candidate you want for the job. You will be able to identify your key minimum requirements in the candidate to qualify for the job.

Job analysis involves describing the job requirements, such as skills, qualification and work experience. The vital day-to-day functions need to be identified and described in detail, as they will decide the future course of action while recruiting.

2. Employee hiring and selection

Recruitment is one of the primary functions of human resource management. HRM aims to obtain and retain qualified and efficient employees to achieve the goals and objectives of the company. All this starts with hiring the right employees out of the list of applicants and favorable candidates.

An HRM helps to source and identify the ideal candidates for interview and selection. The candidates are then subjected to a comprehensive screening process to filter out the most suitable candidates from the pool of applicants. The screened candidates are then taken through different interview rounds to test and analyse their skills, knowledge and work experience required for the job position.

Once the primary functions of HRM in recruitment are completed, and the candidate gets selected after rounds of interviews, they are then provided with the job offer in the respective job positions. This process is important because these selected employees will, after all, help the company realise its goals and objectives.

3. Employee training & development

Imparting proper training and ensuring the right development of the selected candidates is a crucial function of HR. After all, the success of the organisation depends on how well the employees are trained for the job and what are their growth and development opportunities within the organisation.

The role of HR should be to ensure that the new employees acquire the company-specific knowledge and skills to perform their task efficiently. It boosts the overall efficiency and productivity of the workforce, which ultimately results in better business for the company.

HRM plays a very crucial role in preparing employees for bigger tasks and responsibilities, which leads to the holistic development of employees at work. And an organization which provides ample growth and development opportunities to its employees is considered to be a healthy organization.

4. Compensation and Benefits

Benefits and compensation form the major crux of the total cost expenditure of an organization. It is a must to plug the expenses, and at the same time, it is also necessary to pay the employees well. Therefore, the role of human resource management is to formulate attractive yet efficient benefits and compensation packages to attract more employees into the workplace without disturbing the finances of the company.

The primary objective of the benefits and compensation is to establish equitable and fair remuneration for everyone. Plus, HR can use benefits and compensation as a leverage to boost employee productivity as well as establish a good public image of the business.

Therefore, one of the core HR department functions is to lay down clear policies and guidelines about employee compensation and their available benefits. One of the functions of HR manager is to ensure the effective implementation of these policies and guidelines. This creates equality and builds transparency among the employees and the management within the organisation. After all, the level of employee satisfaction at work is directly proportional to the compensation and benefits they receive.

5. Employee performance management

The next activity on HR functions list is effective employee performance management. Effective performance management ensures that the output of the employees meets the goals and objective of the organisation. Performance management doesn’t just focus on the performance of the employee. It also focuses on the performance of the team, the department, and the organisation as a whole.

The list of HR functions for performance management includes:

· Initiating an appropriate selection process to hire the right candidates for the job positions

· Providing the right training and education needed to enhance the performance of the employees

· Enabling real-time feedback and coaching employees to boost efficiency among them

· Conducting performance reviews monthly or quarterly to discuss the positives and the improvement areas of employees

· Formulating a proper exit interview process to understand why experienced employees choose to leave the company

· Designing a proper appraisal and compensation system that recognises and rewards the workforce for their effort and hard work

6. Managerial relations

Relationships in employment are normally divided into two parts — managerial relations and labor relations. While labor relations are mainly about the relationship between the workforce and the company, managerial relations deals with the relationship between the various processes in an organisation.

Managerial relations determine the amount of work that needs to be done in a given day and how to mobilize the workforce to accomplish the objective. It is about giving the appropriate project to the right group of employees to ensure efficient completion of the project. At the same time, it also entails managing the work schedules of employees to ensure continued productivity. It is essential that HR handles such relations effectively to maintain the efficiency and productivity of the company.

7. Labor relations

Cordial labor relations are essential to maintain harmonious relationships between employees at the workplace. At the workplace, many employees work together towards a single objective. However, individually, everyone is different from the other in characteristics. Hence, it is natural to observe a communication gap between two employees. If left unattended, such behaviors can spoil labor relations in the company.

Therefore, it is crucial for an HR to provide proper rules, regulations and policies about labor relations. This way, the employees have a proper framework within which they need to operate. Therefore, every employee will be aware of the policies which will create a cordial and harmonious work environment.

Such a structured and calm work atmosphere also helps with improving performance and aching higher targets.

8. Employee engagement and communication

Employee engagement is a crucial part of every organization. Higher levels of engagement guarantee better productivity and greater employee satisfaction. Efficiently managing employee engagement activities will help in improving the employee retention rates too. HRM is the right agent who can manage the employee engagement seamlessly. Proper communication and engagement will do wonders for the employees as well as the organization. The more engaged the employees are, more committed and motivated they will be.

Human resource teams know the ‘humans’ of the organization better than anyone else. This gives them an upper hand in planning engagement activities. Although such activities might not fall under the direct functions of HRM, they are indeed required for the organizational welfare and employer branding.

9. Health and safety regulations

Every employer should mandatorily follow the health and safety regulations laid out by the authorities. Our labor laws insist every employer to provide whatever training, supplies, PPE, and essential information to ensure the safety and health of the employees. Integrating the health and safety regulations with company procedures or culture is the right way to ensure the safety of the employees. Making these safety regulations part of the company activities is one of the important functions of HRM.

10. Personal support for employees

HRM assists employees when they run into personal problems which may interfere with the workflow. Along with discharging administrative responsibilities, HR departments also help employees in need. Since the pandemic, the need for employee support and assistance has substantially increased. For example, many employees needed extra time off and medical assistance during the peak period of the pandemic. For those who reached out for help, whether it may be in the form of insurance assistance or extra leaves, companies provided help through HR teams.

11. Succession Planning

Succession planning is a core function of HRMs. It aims at planning, monitoring, and managing the growth path of the employees from within the organizations.

What usually happens is that promising and bright employees within the organization who have excelled in their roles are handpicked by their supervisors and HRs, and their growth paths are developed.

This, of course, becomes quintessential as those employees who recognize the fact that the company is investing in their growth and development, and therefore, will stay loyal in the long run. However, while developing such employees towards a higher role, companies must keep in mind several aspects, such as improving employee engagement, assigning challenging tasks and activities.

An employee leaving the organisation can prove to be disruptive and expensive. Therefore, succession planning is a savior of some sorts, as it helps identify the next person who is just right to replace the outgoing individual.

12. Industrial Relations

It’s usually the production lines and manufacturing units where this HR function is mostly used. Unions exist in factories and manufacturing units. And their responsibility is towards the goodwill about the workers — in fact, they’re always vocal and upfront about.

Now, for a company, especially into manufacturing and production, the HRs must have ongoing Industrial Relations practices. They must also continuously engage with the Unions in a friendly and positive manner to maintain amicable relations.

The true motive of Industrial Relation touches on a lot of issues within the company. For instance, Industrial Relations may be in place to meet wage standards, reduce instances that call for strikes and protests, improve working and safety conditions for employees, and reduce resource wastage and production time and so on.

Industrial Relations are extremely important because, if handled properly, it can circumvent protests, violence, walkouts, lawsuits, loss of funds and production time. IR is a sensitive yet critical function of the HR department; naturally, it requires personnel with vast experience.

HRM plays a major role in the smooth functioning of the organisation. The process starts with formulating the right policies for the job requirements and ends with ensuring a successful business growth of the company. Therefore, HRM works as an invisible agent that binds together all the aspects of the organisation to ensure smooth progress.

(b) Analyze the environment of human resource management in India. (16)

-> Within HR scenario, the business environment has focused some new aspects and avenues with some changing values. Presently the people become the most valuable asset of the industry and there is required to get new talented and technological based persons. The entire social as well as business environment duly effect to the HR concepts, practices and performance in a wide range of operations. Comprehensively the social environment has a wide scope to influence and direct to HR scenario within economic and industrial areas.

The Human Resource Environment is a part of social environment which includes the concept, viewpoints, work culture, attitudes, efficiency, skills, productivity, nature and behavior of HR, employees’ demand and supply, motivational aspects, compensation methods and industrial relation concerning of HR practices.

With the growing and integrated role and perception of social and human resource environmental factors, there is a transformation process was emerged for the last two decades. The shift from manual process to machinery process, from unskilled employees to the skilled employees, from manufacturing economy to a service economy, from machine age to the autocratic age have been accompanied by many transformations.

The aspects as well as factors to be responsible to study the human resource environment are as given here:

1. In order to create and develop intellectual capabilities among employees, there is need to develop the learning and knowledge attitudes among employees;

2. In order to determine and prepare social values, ethical norms and several codes of conducts within the purview of employees;

3. In order to analyze and implement effectively and perceptively the business and labor laws and provisions;

4. For strengthen and develop the work plan for productive and constructive activities by the employees;

5. In order to make congenial and harmonious work-culture at work places, there is need to analyze all the relevant aspects as arising out of environmental studies;

6. In order to solve and overcome different societal issues, evils and conflicts, there is need to analyze the social environment;

7. For managing and organizing the mechanical and technological advancement as well as new and innovative methods at the work place;

8. In order to take sound, rational and comprehensive decision making invariably relating to HR practices;

9. In order to determine long term strategies for different internal and external aspects of HRM as well as to develop HR efficacies; and

10. In order to study, analyze and develop the personal skills and efficiency, there is a need to study HR environment.

Two major factors affecting: External and Internal Forces:-

Environment is an important element in the HRM model and therefore, it is necessary know what the environment is and how it influences HR functions in an organization. Environment consists of all those factors which have their bearing on the functioning of the HR department.

These forces are divided into external factors and internal factors. External factor include political and legal, technological, economic and cultural whereas internal factors include unions, organizational culture and conflicts and professional bodies. Analysis of the environment is essential for the HR manager and his/her team in order to be proactive to the environment and not reactive to the environment.

Following are the factors affecting human resource environment:

A. External Forces:

These factors exist outside the organization and the organization has least control over these factors.

The external forces mainly include:

1. Political and Legal Environment:

The environment includes the impact of the political institutions on the HRM department.

In a democratic set up like India which together constitute the total political environment:

(a) Legislature – It is also called Parliament at the central level and advisory at the state level. It is basically a law making body. The various labor laws are enacted by this institution.

(b) Executive – It is also known as the government and it is a law implementing body. It acts according to the decisions of the legislature.

(c) Judiciary – It plays the role of watchdog and ensures that both legislature and executive work in the interest of public.

Political environment affect the labor through the labor laws. There are many labor laws which are related to terms and conditions of employment, work conditions, payment of wages, industrial disputes, health, safety and welfare of the labor.

Effect of Political Environment on HRM:

All HR activities are affected in one way or other by the political environment.

The following activities are mainly affected by the constitutional provisions:

(a) HR Planning

(b) Recruitment

(c) Selection

(d) Placement

(e) Training and development

(f) Employee Relations

(g) Separations

2. Economic Environment:

Economic environment refers to all the economic factors which directly or indirectly affect the HRM.

The following are the components of economic environment:

(a) Suppliers:

Under HRM, the suppliers are the agencies or parties who make available the human resources to the organization.

These agencies are as follows:

(i) Employment Exchanges

(ii) Universities

(iii) Colleges

(iv) Training Institutes

(v) Casual Labor Contractors

(vi) Consulting firms

The type of employees received by the organization depends on the suppliers to a large extent.

(b) Competitors:

Some of the HR functions or activities are influenced by the competitors. This is because the number of organizations is competing for the human resources, which increases the importance of staffing function and its appraisal and compensation activities.

Now the individual is offered job by many organizations and the organization which provides him best terms and conditions wins the competition. Therefore, when the employees from outside become difficult to obtain, the organizations have to groom its own employees with help of HR activities.

(c) Customers:

The Company’s personnel function is also influenced by the customers. It is well known that customers want high quality products at the reasonable prices and therefore, everybody in the organization should strive to offer such products which provide desired satisfaction to the customer.

(d) Industrial Labour:

Many changes have been taken place in the industrial labour especially in the organized sector.

Some of these changes are:

(i) Level of Commitment:

Now the labor is committed to the industrial setting which leads to the stabilization of the work force. The worker who joins the job in an urban undertaking though linked with his village but it is unlikely that he will go back. Therefore, the present generation of young workers has accepted the industrial employment as a way of life. But the true picture is that though the labour is committed to industry but it is not committed to the work which leads to the low productivity of our industrial labor.

(ii) Protective Legislation:

So many legislations have been enacted by the government from time to time for protecting the interest of the workers. This has resulted into 51 central acts spread over 2030 pages, and 103 state laws covering approximately 2970 pages adding a total of 5000 pages of labour laws. So the working conditions, job security, compensation, health and safety have been improved considerably over the years.

(iii) Economic and Social Status:

The economic and social status of today’s workers has vastly improved. Improved skill contents, matching educational and training inputs, and increased emoluments have made the industrial employment as the first attraction of the young job seekers.

3. Globalization:

India’s economy is gradually getting integrated with the global economy.

Globalization has considerable influence on the HR function which can explained as follows:

(a) Employee hiring, training, motivation, compensation, and retaining are guided by the global perspective.

(b) The department can become the source of competitive advantage for the company by discharging the HR functions effectively and by helping the best qualified people execute the company’s strategy on the global scale.

(c) A work force that is knowledgeable and skilled at doing complex things keeps the company competitive and attracts foreign investment.

(d) The benefits between globalization and workers are mutual.

(e) Every advanced nation is increasingly becoming globalized, skills and cumulative learning of its work force becomes its competitive assets.

4. Technological:

Technology affects the HR function in the following ways:

(a) With the advancement in technology jobs tend to become more intellectual or upgraded. Now the jobs require the skills of educated and knowledgeable workers.

(b) The introduction of new technology dislocates workers unless they become well equipped to work on new machines which makes obligatory on the part of HRM to train workers and to rehabilitate those who are displaced or cannot be trained.

(c) Those employees who pick up and acquaint themselves with new technology, the job will be challenging and rewarding.

(d) Technology also has its impact on human relations as technology lays down the requirements for much of the human interactions in the organizations.

5. Cultural Forces:

Culture includes knowledge, belief, art, morals, laws, customs, and other capabilities and habits acquired by an individual as a member of a society.

Culture influences the HR function as follows:

(a) The attitude of the worker towards his work depends upon his cultural background. Our workers are known to have a deep seated apathy towards work. Tasks are performed without any interest, dedication, or pride. Further, there is indiscipline at all levels and poor superior subordinate relationships.

(b) Culture trains people along particular lines, tending to put personality stamp on them. When people with different cultural backgrounds promote, own and manage organizations, they themselves tend to acquire distinct culture.

(c) Time dimension which affects the HRM has its basis in culture. Time orientation refers to the people’s orientation – past, present, and future. HRM focuses on present and care more for employees on the rolls. Employees are hired and maintained as long as they are useful to the organization and dispensed as they cease to be so.

(d) Work ethics, effort reward expectations, and achievement needs which are significant inputs determining the employee behavior at work are the results of the culture.

B. Internal Forces:

The HR activities are also influenced by the internal forces.

Prominent internal forces are:

1. Unions:

The firm’s personnel activities are influenced by its own union as well as the unions of the other firms. A trade union is an association of workers or management formed to protect their own individual interests. The role of a union is too well known. All HR activities – recruitment, selection, training, compensation, IR and separations are carried out in consultation with the trade unions.

Few organizations are lucky to have one union. Encouraged by ideological rifts and personal ambitions of leaders the organized labor unions are splitting and there are multiple unions. The Bokaro Steel Plant has for example 68 unions, and Calcutta Corporation has 100 of them.

2. Organisational Culture and Conflict:

Every organization has its own culture. Organizational culture is the result of all the organization’s features – its people, successes, and its failures. Organizational culture shapes the future by reflecting the past. Therefore, it becomes necessary for the HR specialists to adjust proactively to the culture of the organization. The organizational culture is shaped by its core values and beliefs.

For example the following cultures were adopted by different organizations:

TATA – Get Best People and Set them free

L&T – Professional Approach

Reliance Industries – Competitive Spirit

IBM – Service

GM – Product Innovation

There is often conflict between organizational culture and employees’ attitude.

Following dualities are the reasons for conflicts:

(a) Personal Goal vs. Organizational Goals

(b) Personal Ethics vs. Organizational Ethics

(c) Rights vs. Duties

(d) Discipline vs. Autonomy

(e) Self Confidence vs. Arrogance

(f) Short Term vs. Long Term

(g) Leadership vs. Follower ship

(h) Delegation vs. Abdication

(i) Participation vs. Anarchy

(j) Doing vs. Becoming

(k) Feedback vs. Abuse

(l) Cleverness vs. Wisdom

HR department are required to develop and enforce policies in these areas as these are not the hypothetical conflicts and they occur daily in organizations.

3. Professional Bodies:

The impact of the apex body, National Institute of Personnel Management (NIPM), on HR experts is minimal. The body has not been able to prescribe its accreditation for the HR manager. Infact the minimum professional qualification for HR professional is also not defined by it. In spite of all this the role of NIPM in providing the insights to the HR manager cannot be ignored. For the benefit of HR experts the NIPM organizes the periodic training programmers, seminars, and conferences.

The code of ethics is also formulated by NIPM and it also offers the post graduate diploma in personnel management. The code on ethics reminds HR people about their ethical obligations towards the employees, organization, government, profession, and society.

2(a) What are the factors to be considered for Manpower Planning Programmed? (16)

-> Manpower Planning which is also called as Human Resource Planning consists of putting right number of people, right kind of people at the right place, right time, doing the right things for which they are suited for the achievement of goals of the organization. Human Resource Planning has got an important place in the arena of industrialization. Human Resource Planning has to be a systems approach and is carried out in a set procedure. The procedure is as follows:

1. Analyzing the current manpower inventory

2. Making future manpower forecasts

3. Developing employment programmers

4. Design training programmers

Importance of Manpower Planning

1. Key to managerial functions- The four managerial functions, i.e., planning, organizing, directing and controlling are based upon the manpower. Human resources help in the implementation of all these managerial activities. Therefore, staffing becomes a key to all managerial functions.

2. Efficient utilization- Efficient management of personnels becomes an important function in the industrialization world of today. Seting of large scale enterprises require management of large scale manpower. It can be effectively done through staffing function.

3. Motivation- Staffing function not only includes putting right men on right job, but it also comprises of motivational programmers, i.e., incentive plans to be framed for further participation and employment of employees in a concern. Therefore, all types of incentive plans become an integral part of staffing function.

4. Better human relations- A concern can stabilize itself if human relations develop and are strong. Human relations become strong trough effective control, clear communication, effective supervision and leadership in a concern. Staffing function also looks after training and development of the work force which leads to co-operation and better human relations.

5. Higher productivity- Productivity level increases when resources are utilized in best possible manner. Higher productivity is a result of minimum wastage of time, money, efforts and energies. This is possible through the staffing and its related activities (Performance appraisal, training and development, remuneration).

Factors Affecting Manpower Planning:

The following are the factors affecting manpower planning which constitute the basis of manpower planning:

1. Exciting Stock of Manpower:

This is the first basis of manpower planning and it is the starting point of all planning processes. By studying the position of total stock of manpower, by dividing it into groups on the basis of function, occupation, level of skill or qualification, we can analyze the existing stock of manpower.

2. Wastage:

The second basis of manpower planning is wastage. For a good planning, appropriate adjustment in the existing stock of manpower should be made for the possible wastage of manpower caused by any foreseeable changes in the organization. Labor turnover rate, labor stability rate and the period of active management can be studied to analyze the wastage of manpower. All these factors should be taken into consideration to make necessary adjustments in the requirement of personnel to plan the manpower.

3. Future Manpower Requirement:

We can easily measure the future requirements of manpower, after assessing the existing stock of manpower and analyzing the several factors of wastage.

To analyze the future manpower requirements, the following factors should be considered:

Future plans of the company:

a. Government plans and programmers.

b. Employment policy.

c. Demand and supply.

d. Manpower in future.

e. Labor productivity.

f. Other factors of production and replacement needs

Future manpower requirements:

a. Direct and indirect labor cost

b. Administrative cost

c. Overtime allowance is payable to worker.

d. Maintenance and repair charge.

e. Wages can be paid according to time rate or price rate system.

f. Worker’s requirement during peak and sluggish period.

4. Future Withdrawal of Workers:

Effective manpower requires that the human resource manager should take into consideration decrease in the working force in future due to retirement demotion.

5. Future availability of people dismissal and resignation.

6. Expected changes in the composition of labour force.

7. Workers cost benefit analysis.

(b) Distinguish between Employee Training and Development. Exhibit the training technique mostly used for employees in the Indian organization. (16)

-> Training-

Training is a process in which the trainees get an opportunity to learn the key skills which are required to do the job. Learning with earning is known as training. It helps the employees to understand the complete job requirements.

Nowadays, many organizations organize a training program for the new recruits just after their selection and induction, to let them know about the rules, policies and procedures for directing their behavior and attitude as per the organizational needs. Training also helps the employees to change the conduct towards their superior, subordinates and colleagues. It helps to groom them for their prospective jobs.


The training for the top level employees is considered as development, also known as management or executive development. It is an on-going systematic procedure in which managerial staff learns to enhance their conceptual, theoretical knowledge. It helps the individual to bring efficiency and effectiveness in their work performances.

Development is not only limited to a particular task, but it aims to improve their personality and attitude for their all round growth which will help them to face future challenges. It changes the mindset of the employees and makes them more challenging or competing.

The major differences between training and development are as under:

1. Training is a learning process for new employees in which they get to know about the key skills required for the job. Development is the training process for the existing employees for their all round development.

2. Training is a short-term process i.e. 3 to 6 months, but development is a continuous process, and so it is for the long term.

3. Training focuses on developing skill and knowledge for the current job. Unlike, the development which focuses on the building knowledge, understanding and competencies for overcoming with future challenges.

4. Training has a limited scope; it is specific job oriented. On the other hand, development is career oriented and hence its scope is comparatively wider than training.

5. In training, the trainees get a trainer who instructs them at the time of training. In contrast to development, in which the manager self-directs himself for the future assignments.

6. Many individuals collectively attend the training program. Development is a self-assessment procedure, and hence, one person himself is responsible for one’s development.

The training technique mostly used for employees in the Indian organization:-

(1) On The Job Training:

Under this method an employee is instructed by some experienced employee, who may be a special instructor or supervisor. The success of this type of training mainly depends on the trainer. Usually training in crafts, trades, technical areas etc., is given by keeping the unskilled or semi-skilled worker under the guidance of skilled workers.

The increasing labor costs in industry have made it essential that even a simplest job should be carried out in the most economical manner. Therefore, training in improved methods can be given to the new employees.

On the job training may be in the form of coaching, job rotation and special assignments. Under coaching method, the employee is trained by his immediate supervisor. Such training is generally provided to managerial personnel.

The skills requiring long periods of practice are provided in this method. In job rotation the trainee is moved from job to job at certain intervals, the jobs vary in content. Special assignments are the other methods used to provide lower-level executives with firsthand experience in working on actual problems. The trainees work on problems and find out solutions for them.


(1) The workers learn the job in actual conditions rather than the artificial conditions. It motivates employees to learn.

(2) It is less expensive and consumes less time.

(3) The training is under the supervision of supervisors who take keen interest in the training programmed.

(4) The production does not suffer under this method.

(5) The trainee learns rules and regulations while learning the job.

(6) It takes less time as skill can be acquired in a short period.


(i) The training is highly disorganized and haphazard.

(ii) The supervisor may not be in a position to devote time and hence faulty training may take place.

(iii) The experienced trainers may not be available.

(iv) There is a lack of motivation on the part of the trainee to receive training.

(2) Off-The-Job-Training:

Under this method, a trainee has to leave his place of work and devote his entire time for training purposes. He does not contribute anything towards production during training. This type of training may be arranged in the enterprise or may be acquired from specialized institutes imparting such training.

Generally, large enterprises may have separate training institutes or departments but small concerns cannot bear such casts. The enterprises like Hindustan Lever, TISCO, ITC, Larsen and Turbo, State Trading Corporation, Steel Authority of India, Vardhman Textiles and have their own training institutes.

The Methods Employed for off-The-Training are Explained Below:

(i) Lectures or Class Room Method:

In lecture method one person explains different aspects of a programme. The technical or special information can be given in a simple way through lecture system. The audio-visual aids can be used to make the lecture simple and interesting to the trainees. This method is advantageous when a large number of trainees are to be trained at a time.

(ii) The Conference Method:

A conference is a formal meeting conducted in accordance with an organized plan, in which the organizers seek to develop knowledge and understanding by obtaining considerable participation of trainees. A subject matter is deliberated by the participants.

The trainees explain the facts, principles or concepts and discussion takes place. The trainees pool their knowledge and try to find solution to the problem or develop new ideas as per the inference of the discussion.

This method is suitable for analyzing problems and issues and examining them from different viewpoints. It is sound method for the development of conceptual knowledge and finding solutions to specific problems.

(iii) Seminar or Team Discussion:

In seminar method the trainees may be asked to write papers on specific topics. The papers are read in the seminar and then a critical discussion is held where all the trainees participate. The chairman of the session will sum up the views expressed by various participants. The trainees pressers in the seminar listen to views expressed in papers and the discussion held later am clear their doubts, if any.

(iv) Programmed Instructions:

In this method, knowledge is imparted with the use of a text book or a teaching machine. It involves breaking information down into meaningful units and then arranging these in a proper way to form a logical ant sequential learning programme or packages.

The programme involves presentation questions, factors or problems to the trainee and the trainer receives feedback or the basis of the accuracy of his answers.

(3) Apprenticeship Training:

In many industries such as metal, printing and building construction, etc., this method of training is widely in use. The apprenticeship training may go on for four to five years. The worker is usually absorbed by the concerned industry after training period is over.

They get practical knowledge while working on the job and theoretical knowledge in the class room lecture. The workers get some stipend during their training period. It is the oldest and traditional method of training in crafts, trades and technical areas.

The standards fixed in apprentice training are rigid. The mechanical apprentice programme in an organization, for example, may take four years. Progress reports are periodically submitted. Like other employees, an apprentice is also entitled to bonus, vacation and other facilities.


(a) Trainees receive some stipend during training.

(b) The trainees get valuable skill which carries good demand in the market.

(c) From employer’s point of view, it is cheap source of labor and in addition a skilled work force is maintained.

(d) It reduces labor cost and production cost as rate of labor turnover is very low.

(e) The loyalty of the employees is ensured.


1. The training period is very long and the trainee requires regular supervision which may not be possible in a large scale concern.

2. Rigid standards make this method unsatisfactory.

3. If a worker fails to learn after long period of training he may not be absorbed. This may create labor problem for the firm.

4. It is an expensive method.

(4) Vestibule Training (Training Centre Training):

Vestibule means a passage or room between the outer door and the interior of a building, in order to reach the inner of a house, one must pass from vestibule. Under vestibule training, workers are trained on special machines in a separate location i.e., classrooms.

The vestibule school is run by the Personnel Department. Training is given in artificial conditions which are just like the real conditions. The theoretical training is given in the classroom.

The supervisor is relieved of training the new employees. He can concentrate on his other important assignments such as quality and quantity of output. This method is followed when the number of persons to be trained is very large. It is often used to train machine operators, computer operators, typists etc. It is a useful when theoretical concepts are to be taught along with the problem solving abilities.


(a) The trainer is a specialist and possesses specialization in training,

(b) Since the training is given off the job, trainees can concentrate on learning.

(c) The instructor can give individual attention as he has no other work assigned to him.

(d) The employee learns the job in a short time.


However this method suffers from certain limitations explained below:

(a) Training is given under artificial conditions; hence the worker may not be in position to adjust on the machines when he is put on the actual job.

(b) It is expensive method as duplicate equipment is required. Small concerns cannot afford this type of training method.

(c) If demand for workers is uneven, vestibule school may remain unused for a considerable time.

(d) Splitting of responsibilities may lead to organizational problems.

(5) Internship Training:

In this method of training students get practical training while they study. A proper liaison is established between the technical institutions and business houses where students are sent during their vacations. Thus, there is a balance between theory and practice and students get practical Knowledge while studying.

The chief drawbacks of this method are:

(a) It can be used for training only of skilled and technical workers.

(b) The time taken is usually long.

(6) Learner Training:

Learners are those persons who are selected for semi-skilled jobs and lack even the basic knowledge of industrial engineering. These learners are first given education in vocational schools where they get knowledge of arithmetic, workshop mathematics and learn the operation of machines. They can be assigned regular jobs after training.

3(a) Critically discuss the importance of a “good” wage system. Mention the guidelines of a sound wage policy. (6+10=16)

(b) “Accurate appraisal of performance is very difficult.” In light of this statement, discuss the problems in performance appraisal. (16)

-> Performance appraisal is the systematic, periodic and an impartial rating of an employee’s excellence in matters pertaining to his present job and his potential for a better job. It is designed primarily to cover rank and file personnel on the other hand; performance appraisal mainly focuses on the performance and future potential of their employee.

Performance appraisals, although vary widely used, have well-recognized shortcomings and deficiencies. Measuring performance is a difficult-task. Giving someone else an honest candid evaluation based on that measurement is a stressful experience for most evaluators. Defensive behavior on the part of the person being evaluated is common.

This is especially true if salary, promotion, or just keeping one’s job is at stake. In turn, this can lead to defensive behavior on the part of the evaluator if the rating must be defended.

The major ones are discussed below:

Problem 1- Differences among Raters:

Differences among raters in their evaluations of performance lead to several errors. One is dissimilarity in perception. Two raters observe an employee disagreeing with a supervisor. One perceives this negatively as insubordination. The other perceives it positively as a willingness to stand up for what one believes.

Different value systems can also play a part in how raters can disagree. One rater may feel that honest and ethical behavior is paramount, no matter what the effect on profits. Another may have a bottom-line orientation that says any behavior including the blatantly dishonest is permissible so long as it shows a profit.

Another kind of rater difference error is created if raters observe different aspects of behavior. One rater sees the employee on the job where the individual feels comfortable and functions effectively. Another may see the individual only at the staff meetings where the employee is uncomfortable and does not show to best advantage.

Problem 2- Confusing Performance and Potential:

Many rating systems that are supposed to be evaluating performance fall into the trap of measuring potential as well. This is a serious mistake that can unfairly penalize employees as well as give credit where it is not deserved. Measurement of potential is often an important aspect of any appraisal system, but the organization and the raters and the ratees involved need to be absolutely clear on the difference.

Problem 3- Rating Game:

Performance appraisal methods either compare employees against one another, or compare employees against a standard. Within these two types there are numerous methods of appraisal. Some are simple such as straight ranking. Others are more complex, such as behavioral scales attempting to establish a success criterion by defining performance behaviors. Whatever may be the method, the rating procedure may become something like a game or contest.

Again, these methods lay emphasis on alikeness and conformity of human performance and ignore measurement of human values.

The barriers which have impact on the appraisal programmes are:

1. Faulty Assumptions,

2. Psychological Blocks, and

3. Technical Pitfalls.

1. Faulty Assumptions:

Faulty assumptions of the parties concerned like supervisor and his subordinate in appraisal system does not work properly.

These assumptions work against an appraisal system in the following manner:

(a) The assumption that managers will make fair and accurate appraisals of subordinates is untenable. McFarland feels that both supervisors and subordinates show tendencies to avoid formal appraisal processes.

(b) Another faulty assumption is that managers take a particular system as perfect and feel that once they have been launched should continue and should be utilised in every project. They expect too much from it, and rely too much on it or blame for their faults. It should be remembered that, such system can provide perfect, absolutely defensible appraisals devoid of subjectively.

(c) Managers sometimes assume that personnel opinion is better than appraisal and they find little use of systematic appraisal and review procedure. However, the “management by instinct” assumption is not valid and leads to bias, subjectivity and distorted decisions based on partial or inaccurate evidence.

(d) Manager’s assumptions that the employees want to know frankly where they do stand and what their superiors think about them are not correct and valid. In fact, subordinates resist to be appraised and their reaction against appraisal has often been intense.

2. Psychological Blocks:

It is an acceptable fact that the value of any tool, including performance appraisal, lies largely on skills of the users. Therefore, the utility of performance appraisal depends upon the psychological characteristics of managers, no matter what method is being used. There are several psychological blocks which work against the effectiveness of an appraisal system.

These are manager’s feeling of insecurity, appraisal, as an extra burden, their being excessively modest or skeptical, their feeling to treat their subordinate’s failure as their deficiency, disliking of communicating poor performance to subordinates and so on. Because of these psychological barriers, managers do not tend to become impartial or objective in evaluating their subordinates, thereby the basic purpose of appraisal.

3. Technical Pitfalls:

The design of performance appraisal forms has received detailed attention from psychologist, but the problem of adequate criteria still exists. There are two main technical difficulties which fall under Technical pitfalls.

They are:

(i) The criteria problem and

(ii) The distortions

that reduce the validity of results.

(i) Criterion Problem:

A criterion is the standard of performance the manager desires of his subordinates and against which he compares their actual performance. This is the weakest point in appraisal procedure. Criteria are hard to define in measurable terms.

Ambiguity, vagueness and generality of criteria are difficult hurdles for any process to overcome. Traits too present ambiguity. A particular trait is hard to define and variations of interpretation easily occur among different manager’s using them.

(ii) Distortions:

Distortions occur in the form of biases and errors in making the evaluation. Such distortions may be introduced by an evaluator consciously or unconsciously.

The following are the possible distortions:

(a) Halo Effect:

In which the rater is influenced by rater’s one or two outstandingly good or bad performance and he evaluates the entire performance accordingly.

(b) Central Tendency:

This error occurs when the rater marks all or almost all his personnel as average. He fails to discriminate between superior and inferior persons.

(c) Constant Errors:

Some errors are constant. Similarly, there are easy raters and tough raters, in all phase of life. Some raters rate everyone high, others tend to rate low. Some rate on potential rather than on recently observed performance. In such a situation the result of two raters are hardly comparable.

4(a) Distinguish between motivation and morale. How is morale related to productivity? (8+8=16)

-> Key Differences between Motivation and Morale

1. Motivation refers to an internal process, which improves, encourages and stimulates the employees resulting in goal-oriented behavior. On the other hand, morale is the psychological state of an individual, which is reflected in his mood, confidence, discipline, enthusiasm, cooperation and loyalty towards the work and organization.

2. Motivation is nothing but the inner psychological impulse, which induces the employee to behave in a particular manner. As against, morale is a social-emotional association.

3. Motivation is given priority over morale in every organization because when an employee is highly motivated, the productivity will also be higher.

4. Motivation is an individual concept, as it considers the individual differences between employees. As against, morale is a group concept, as it takes into account those factors which have an impact on the entire work environment and the people working in that environment.

5. The factor that affects the motivation of an employee is related to the individual’s performance, say pay, promotion, achievement or non-achievement of goals etc. In contrast, the factors influencing employee’s morale are concerned with the overall work environment, including the supervision, reward and recognition, job satisfaction, work climate, etc.

6. Motivation supplements i.e. complete or enhance the morale of an employee. Conversely, morale is one of the determinants of motivation, i.e. a factor which affects the motivation of an employee.

Combination of Morale and Productivity:-

1. High Morale – High Productivity:

This is the ideal combination of morale and productivity and occurs when right motivational policies are adopted by managers. Workers know their jobs, they are trained to manage various aspects of the job and feel committed towards the organizational goals.

2. High Morale – Low Productivity:

In this situation, though workers are satisfied with the jobs, they are not committed to the work. This may be because of the nature of task, the nature of superiors, kind of technology used, work methods or inadequate training facilities that restrict efforts to perform their jobs well. People work for their individual/group goals rather than organizational goals.

3. Low Morale – Low Productivity:

It represents the other extreme of morale- productivity continuum. Lack of motivation, unclear jobs and lack of harmonious superior – subordinate relationships reflect low morale and, therefore, frustrations, tensions, discontentment and grievances develop against managers which results in low productivity.

4. Low Morale – High Productivity:

Low morale results in high productivity when negative motivation is used by managers. Punishments, threats and penalties for non-conformity to organizational plans and policies direct workers towards high productivity. Such a situation does not last for long as negative motivation can increase production only for a short span of time.

Workers’ behavior will soon be reverted to low job performance and low output. Behavioral management, thus, requires that work environment should be able to achieve high morale- high productivity combination. Though morale and productivity are not perfectly related, a positive correlation between them creates a healthy work environment.

(b) Write short notes on: (8+8=16)

i) Communication Process

-> The communication process refers to a series of actions or steps taken in order to successfully communicate. It involves several components such as the sender of the communication, the actual message being sent, the encoding of the message, the receiver and the decoding of the message. There are also various channels of communication to consider within the communication process. This refers to the way a message is sent. This can be through various mediums such as voice, audio, video, writing email, fax or body language. The overall goal of the communication process is to present an individual or party with information and have them understand it. The sender must choose the most appropriate medium in order for the communication process to have worked successfully.

The communication process has several components that enable the transmission of a message. Here are the various parts:

1. Sender: This is the person that is delivering a message to a recipient.

2. Message: This refers to the information that the sender is relaying to the receiver.

3. Channel of communication: This is the transmission or method of delivering the message.

4. Decoding: This is the interpretation of the message. Decoding is performed by the receiver.

5. Receiver: The receiver is the person who is getting or receiving the message.

6. Feedback: In some instances, the receiver might have feedback or a response for the sender. This starts an interaction.

In order to successfully communicate, it’s important to understand how the process works. Here are the seven steps in the communication process:

1. The sender develops an idea to be sent.

2. The sender encodes the message.

3. The sender selects the channel of communication that will be used.

4. The message travels over the channel of communication.

5. The message is received by the receiver.

6. The receiver decodes the message.

7. The receiver provides feedback, if applicable.

1. The sender develops an idea to be sent

The beginning of the communication process involves the sender creating an idea that they plan to send to another person or group of people. Essentially, they’re planning the overall subject matter or information they want to transmit.

2. The sender encodes the message

Once the sender develops an idea, they translate it into a form that can be transmitted to someone else. This means they transform the thoughts of the information they want to send into a certain format. For example, if you are writing a letter, you’ll translate your idea into words. The message can also be nonverbal, oral or symbolic.

3. The sender selects the channel of communication that will be used

Next, the sender decides how the message will be sent. This involves selecting the most suitable medium for the message they’re relaying. Some communication mediums include speaking, writing, electronic transmission or nonverbal communication. If you’re communicating at work, make sure to select the proper and most professional channel of communication.

4. The message travels over the channel of communication

After the medium is chosen, the message then begins the process of transmission. The exact process of this will depend on the selected medium. In order for the message to be properly sent, the sender should have selected the appropriate medium.

5. The message is received by the receiver

Next, the message is received by the recipient. This step in the communication process is done by hearing the message, seeing it, feeling it or another form of reception.

6. The receiver decodes the message

The receiver then decodes the sender’s message. In other words, they interpret it and convert it into a thought. After they’ve done this, they analyze the message and attempt to understand it. The communication process is performed effectively when the sender and receiver have the same meaning for the transmitted message.

7. The receiver provides feedback, if applicable

Lastly, unless it’s a one-way communication, the receiver will provide feedback in the form of a reply to the original sender of the message. Feedback provides the recipient with the ability to ensure the sender that their message was properly received and interpreted. Between two people, this is two-way communication.

Tips for improving the communication process

Here are some tips to consider improving your communication skills and the communication process overall:

  • Simplify your message: In order to ensure your message is properly understood, you should keep your language simple and to the point.
  • Know your audience: It’s also important to consider the audience that will receive your message as well as their needs and interests.
  • Be a good listener: As a communicator, it’s important to actively listen to what those around you are saying. This will ensure that you’re sending the right message.
  • Ask questions: It’s also important to ask good questions to keep the communication flowing. Make sure your questions are insightful and engaging.
  • Take the time to respond: When communicating, it’s important to consider how you might reply to a person to ensure you know what you want to say.
  • Consider your body language: If you’re communicating through a different medium, it’s important to be mindful of your body language. In addition, be aware of the body language of the person you’re communicating with, as well.
  • Maintain eye contact: It’s also important to make contact with the person or group you’re communicating with. This will show that you’re actively listening to who you’re communicating with.
  • Clarify your message if needed: If the recipient of your message is unclear about what you’re trying to say, it’s important to clarify your message. This will help them to better understand you.

5. Write short notes on ant two: (2*8=16)

(a) HR Audit Report

-> The term audit is normally associated with financial accounting and refers to the official examination and verification of a company’s financial and accounting records. HR audit is a similar concept in the field of Human Resource Management.

HR audit involves examining and reviewing the organization’s existing policies, procedures and practices regarding recruitment and selection, orientation and placement, training and development, job analysis and design, job evaluation, compensation, morale and motivation, employee health and safety, social welfare, industrial relations, etc.

The audit also helps to check that the company complies with the legal requirements and regulations regarding employees as lay down by the government of the country. By means of an audit, the company can determine its strengths and weaknesses in the area of HRM and plan accordingly to improve its processes and procedures related to the human resource function.

Human Resource Audit also called Personnel Management Audit is well practised in Western developed countries. In India, there is no lull audit like financial audit of the personnel or Human Resource activities in an organisation. Audit is evaluation, examination, review and verification of completed activities, to see whether they represent a true state of affairs of the activities in the department audited.

Human Resource audit refers to an examination and evaluation of policies, practices, procedures to determine the effectiveness and efficiency of the Human resource management and to verify whether the mission, objectives, policies, procedures, programmes have been followed, and expected results achieved. The audit also makes suggestions for future improvement as a result of the measurement of past activities.

It helps essentially in evaluating the various HR practices and processes in an organization against the set standards. ‘An HR audit involves devoting time and resources to taking an intensely objective look at the company’s HR policies, practices, procedures and strategies to protect the company, establish best practices and identify opportunities for improvement'(SHRM, India).

‘A Human Resources Audit is a comprehensive method (or means) to review current human resources policies, procedures, documentation and systems to identify needs for improvement and enhancement of the HR function as well as to ensure compliance with ever-changing rules and regulations’ (Strategic HR Inc.).

The major objectives of HR audit are as follows:

1. To conduct an independent, objective, systematic and critical examination of HR functions of an organization.

2. To assess the general environment and performance efficiency in HR department.

3. To check for any deviations from standards and devise appropriate strategies and corrective actions in HR related areas.

4. To check for alignment of HR functions and organization’s overall practices and procedures.

5. To measure statutory compliances of HR activities as per law and other relevant agencies.

6. To explore the areas for saving personnel costs and expenses.

7. To provide feedback on better areas of performance and areas that needs improvement.

8. To identify HR areas that requires research and development inputs.

9. To recognize better performance of HR personnel through rewards.

The nature of Human Resource Audit has been discuss in the followings:

(i) Human Resource Audit, generally, gives feedback about HR functions not only to operating mangers, but also to HR department.

(ii) Basically, audit is an overall quality control and checks the HR activities in a public organization.

(iii) Human Resource Audit also helps clarify organizational and management goals.

(iv) It is used as a tool for review of the effectiveness of human resource practices.

(v) It also helps the management of the organization to evaluate how well its policies are going and identifies trouble areas that require particular attention.

Importance of HR Audit:-

a. A change in managerial philosophy and theory, as a result of which a management now feels that employees’ participation in the activities of an organisation, and their identification with it, have a tremendous influence on the working of that organization.

b. The changing role of the government, which intervenes more often and more extensively now, to control manpower management by an organization with a view to protecting the interests of the employees, providing them with better working conditions and ensuring their economic security.

c. The increasing role played by trade unions and their strength, as a result of which they often question managerial competence in industrial relations.

d. The rising wages, changes in the skills of technical and professional workers, and the increasing expenditure incurred on the industrial relations department — these are the factors which have influenced and encouraged the trend in favor of a personnel audit.

Process of HR Audit:-

1. Determining the Scope and Type of Audit:

Since HR is a very wide field, the company may either choose to conduct a comprehensive review of all HR functions or it may decide to review a few specific areas as it deems necessary. For example, a company may choose to review only the policies and procedures related to recruitment, selection and orientation policies.

2. Determining the Audit Method:

HR audits are usually conducted by using a questionnaire that elicits information about the relevant HR areas. The audit may also be conducted by interviewing managers and employees of the HR department to analyze how well they have understood the company’s policies and how efficiently these policies are being implemented. When using a questionnaire, care should be taken to design it in such a way that it elicits all necessary information regarding the areas to be audited.

3. Data Collection:

This step includes the actual process of collecting data about the organization and its HR practices. Information is collected by using the questionnaire and by interviewing relevant HR personnel about the HR procedures and policies being used in the company.

4. Setting the Standards:

To assess the efficiency of HR functions, the information collected has to be compared with some pre-determined standards. These standards have to be pre-set and any acceptable level of discrepancies should be specified clearly. Comparing the actual results with the standards will give an idea about the efficiency with which the HR functions are being performed.

5. Feedback about the Results:

After collecting information and comparing the results, the audit team summarises the findings and provides feedback to the company’s HR personnel and senior management in the form of an audit report.

The results of the audit should be discussed with the employees of the HR department so that they are made aware of the present condition of the HR functions in the company. Discussion with employees will also throw up new ideas for improving the policies and procedures in future.

6. Develop Action Plans:

Once the results of the audit are out, this information should be used for improving the working of the HR department. The findings of the audit should be categorized according to order of importance: high, medium and low. The organization should examine the areas of weaknesses as revealed by the audit and find ways to overcome them. Conducting HR audit would serve no practical purpose if no actions are taken.

(c) Procedure for Personnel Research

-> In order to make personnel research a systematic and scientific one, the researcher needs to follow a certain process or procedure while conducting personnel research. All research, including personnel research, can broadly be classified into applied and pure.

Applied research is one that is carried out to understand and solve a specific problem of the organization and the results of research lead to specific action plan. From this point of view, all industrial research is applied one.

On the other hand, pure research, also called theoretical research, is carried out to establish relationship between two sets of variables, i.e., how independent variable affects dependent variables, controlling other variables. The findings of pure research may not lead to specific action plans but can be used to develop certain concepts and hypotheses.

Be it an applied or pure research, the following steps must be followed while carrying out personnel research:

1. Statement of Purpose:

In simple words, statement of purpose is a statement to justify the present research. In other words, the researcher has to state what he/she actually proposes to study and why. It also needs to be pointed out that given the problem, the present research is the most parsimonious way of seeking answers to the problem.

2. Statement of Problem:

Research, including personnel research, is carried out to solve problem faced by an organization/individual. Therefore, the foremost step involved in carrying out personnel re­search is to state the problem to be studied clearly and concretely. Better the problem is stated, better will be possibility of realistic research.

Problem can be identified by going through the existing literature, discussion with knowledgeable persons in the subject and getting first-hand information and observation on the matter. The problem so identified should be reduced to manageable size. Once the problem is clearly identified, the next step is to develop the hypoth­eses, also called ‘suggested answers’.

3. Statement of Method:

Method refers to the manner followed to collect data / information for the study. Yes, the method will differ across researches depending upon the nature of research problems and hypotheses set for them. An important aspect of methodology is the identification and selection of study group. In case of large universe, it may be difficult to contact each unit/individual of the universe.

Hence, either random or purposive sample can be selected for the study. What are the dependent and independent variables of the study should be clarified. Dependent variables are the responses, reactions and behavior, whereas independent variables are ones that affect dependent variables. Method of data collection with its justification must also be clearly decided.

4. Statement of Results:

Results, based on information gathered, refer to the relationship between dependent and inde­pendent variables of the study. They may support or reject the hypotheses set in the beginning of the study. The results can be found out by applying statistical tools and, then, can be presented in the form of tables, graphs, charts, bar diagrams, etc.

5. Statement of Analysis and Implications:

No doubt, results of the research can be utilized to solve the specific problem. Besides, the concern of a personnel research is also to visualize the implications of the results and also utilize them for policy formulation and decision-making.

(d) Personnel Policy.

-> A personnel policy is a plan of action, a set of proposals and actions that act as a reference point for managers in their dealings with employees. Personnel policies constitute guides to action. They furnish the general standards or bases on which decisions are reached. Their genesis lies in an organization’s values, philosophy, concepts and principles”. Personnel guide the course of action intended to accomplish personnel objectives. A policy is a guideline for making wise decisions. It brings about stability in making decisions. A policy is a stance, often a choice made between two or more alternatives, such as the choice between promoting employees on that basis of merit versus promoting them on the basis of seniority.


1. It should be in written form.

2. It should be clear, positive and early understood by each and every employee of the organization.

3. It should be in the line of corporate objectives.

4. It should be in local language also.

5. It should be generally known to all interested parties.

6. It should be reasonably stable but not rigid.

7. It should be built on the basis of facts and sound judgment.

8. It should provide two way communication systems between the management and the employees of the organization.

9. It should be fair and equitable to internal as well as external groups.

10. It should be consistent with public policy.

11. It should support management as well as establish cooperation of employees at the shop floor level and in the office.

The principal aims and objectives of personnel policies may be listed thus:

(i) To enable an organization to fulfill or carry out the main objectives which have been laid down as the desirable minima of general employment policy;

(ii) To ensure that its employees are informed of these items of policy and to secure their co­operation for their attainment;

(iii) To provide such conditions of employment and procedures as will enable all the employees to develop a sincere sense of unity with the enterprise and to carry out their duties in the most willing and effective manner;

(iv) To provide an adequate, competent and trained personnel for all levels and types of management; and motivate them;

(v) To protect the common interests of all the parties and recognize the role of trade unions in the organizations;

(vi) To provide for a consultative participation by employees in the management of an organization and the framing of conditions for this participation, this, however, shall not take place in technical, financial or trading policy;

(vii) To provide an efficient consultative service – this aims at creating mutual faith among those who work in the enterprise-

(a) By developing management leadership which is bold and imaginative and guided by moral values;

(b) By effectively delegating the human relations aspects of personnel functions to line managers;

(c) By enforcing discipline on the basis of co-operative understanding and a humane application of rules and regulations; and

(d) By providing for a happy relationship at all levels;

(viii) To establish the conditions for mutual confidence and avoid confusion and misunderstanding between the management and the workers, by developing suggestion plans, joint management councils, work committees, etc., and by performance appraisal discussions;

(ix) To provide security of employment to workers so that they may not be distracted by the uncertainties of their future;

(x) To provide an opportunity for growth within the organization to persons who are willing to learn and undergo training to improve their future prospects;

(xi) To provide for the payment of fair and adequate wages and salary to workers so that their healthy co-operation may be ensured for an efficient working of the undertaking;

(xii) To recognize the work and accomplishments of the employees, by offering non-monetary incentives rewards;

(xiii) To create a sense of responsibility, on the part of those in authority, for the claims of employees as human beings, who should be guaranteed protection of their fundamental rights and offered enough scope for developing their potential.

In brief, personnel policies should respect human dignity and personal integrity, ensure fair treatment for all, irrespective of caste, creed, or color, and offer reasonable social and economic security to employees.

They should be so designed as to ensure that work and accomplishment are properly recognized, that safety and health conditions of work are created, that common interests are promoted and employee participation is encouraged, that the role of trade unions is recognized and their functions and responsibilities are respected, and that the employees’ satisfaction and motivation and their development as individuals are properly looked after.

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