2018 – Solved Question Paper | Human Resource Management | Final Year – Masters of Commerce (M.Com) | Dibrugarh University

HUMAN RESOURCE MANAGEMENT

COMMERCE

2018

PAPER- 204

1(a) Explain the importance of Human resources in an industrial enterprise. What are the prospects for career in Human Resource management? (8+8=16)

-> The human resources are the precious possessions of any organization or so to say industrial enterprise. It is, therefore, necessary to take utmost care for their survival and growth. The prosperity and growth of an industrial enterprise depends on them. Hence ignorance of human resources is curse. The human resource development must be made a part and parcel of any organization. Human Resource Development programme should be constantly undertaken by the industrial enterprises realizing their importance.

Truly speaking human resource development is the centre point of human resource management. Now in the new millennium human resource development must be given top priority for it rewards handsomely else prepare to face punishment of severe nature for ignoring it. The punishment may be in the form of low quality, low productivity, human resources unrest and what not. It pushes you back. Human resource development keeps organizations ahead with people systems. There should be manpower restructuring in the enterprise and motivating the employees and boosting up their morale and human behavioral aspects must be given top priority.

The human resources differ in their capabilities, knowledge, skills and ability to acquire knowledge. So they are like the pieces of jigsaw, they should be put up at their proper places to give a resounding shape to the organization. It is up to the manager who should be competent enough to realize the importance of every personnel working under him. An effective system of performance appraisal and salary and wage structure will increase the efficiency Human resource management approach, philosophy and policy brings about a basic change in the outlook of the management of the enterprise towards its workforce. They should be treated as resources and efforts on the part of the management for their career planning should grow to the maximum extent.

For effective utilization of human resources there must be integration of personal objectives with those of organizational objectives and well knit HRD programmes. It is the people who run the organization therefore there must be a bridge between the storehouse of knowledge and people for effective management of the industrial enterprise. It must be borne in mind that it is the people who are responsible for growth and prosperity of the industrial enterprise therefore they must be treated with care and exploit their potentialities to the maximum in the interest of the enterprise.

Proper training and development programmes prepare them for accepting any change introduced for the development of the industrial enterprise. Enterprise objectives are changing rapidly. To cope up with this change, the human resources need to be trained and developed in such a way that they should be able to perform the tasks efficiently with self-motivation, teamwork, creativity and self-leadership. The plans of the enterprises can be implemented successfully with the help of motivated people. In India we provide employment for life. With the changing technology the people with old techniques and knowledge are becoming out-dated. This increases the financial burden in the form of their salaries.

To avoid this senior employees be provided training to run modern machines and to adopt modern techniques to remain with the industrial enterprise contributing their maximum to it. For providing novel and quality product to their customers, the industrial enterprises are undertaking innovations. The success of innovative activities requires people with creative mind and an atmosphere for honouring personal excellence. Here again the human resource development play an important role in new skill building and making people creative.

Human resource planning plays an important role in industrial enterprise. To make quality products available at reasonable prices to the customers, we need careful and proper human resource planning. Only the required number and quality people should be procured. It would enable the enterprise to keep its wage bill low which is in array with cost cut technology of present day. This helps in having a proper pricing strategy. The industrial and business enterprises are after delighting the customers. They, therefore, need right kind of human resources with lot of talents, skills and initiative.

In modern times enterprises need the people with different mind-set to cope up with the changing global environment. There is a need to reengineer the HRM processes. There should be well defined career planning for employees. Management must also encourage employees’ involvement in decision-making. Adopting decentralization of authority and power helps immensely. After all proper people are the power of industrial enterprises.

(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) “Recruitment is generating application, while selection is choosing some of them”- Discuss. (16)

-> Recruitment helps in creating a pool of suitable and interested job applicants, out of which few are chosen for the further selection process. Hence, it forms a base for selection process. If the recruitment process is carried out properly, it will help in employing workforce that suits the organizational requirements.

Selection of candidates begins where their recruitment ends. In other words, it is only after an adequate number of applications have been secured through different sources of recruitment – internal or external that the process of selection begins.

The enterprise has to choose the best and the most promising persons from among the applicants. In this sense, it may be said that while recruitment is a positive function in that it seeks to induce as many persons as possible to apply for a job in the enterprise. Selection is negative function because it aims at eliminating those applicants who are not found suitable in one respect or the other.

Recruitment & selection is one of the important aspects of human resource planning. Human resource planning ensures that right kind and right quality of employees are employed so as to achieve the organizational goals.

According to Edward Flippo, “Recruitment is a process of searching prospective employees and stimulating them to apply for jobs.”

The various processes involved are:

1. Application Form:

The application form is designed to contain detailed information about the candidates. It also helps in comparing the merits of the applicants.

The information required in the application form will include some or all of the following:

(i) Post applied for.

(ii) Personal data – name, address, telephone number, age, sex, marital status, children, nationality, next of kin.

(iii) Education – school, college and university attended, degree/ diploma passed, year of passing, subjects offered, grade or division obtained.

(iv) Professional qualification.

(v) Languages known- ability to read, write and speak.

(vi) Employment history of all jobs since leaving college/ university, dates from and to, employer’s name, address and nature of business, position and duties held, reasons for leaving.

(vii) Personal circumstances; when required, prepared to serve anywhere or not, etc.

(viii) Medical history; brief details of any serious illness, disability, major operation, etc.

(ix) Interest, hobbies, sports and other activities.

(x) Anything else which an applicant may like to add.

(xi) References

Space for the candidate’s signature, date and place and for office use is given at the end. The printed forms generally contain too much printed matter leaving little space for the applicant to fill in his particulars. There should be at least four times as much space to write in the form as is covered by the print. Some companies have forms printed in different colors for different categories of posts. This facilitates the sorting out and handling of applications by the concerned officials.

2. Interview:

An interview is the first face to face interaction between the candidate and the company representatives. It is a sine qua non for applicants who qualify in the first screening as probable ones having all the basic requirements. The objectives of selection interviews are to elicit information about the candidate’s motives and behavior, to assess personality, to check the factual information already given by him and to inform him about the job and the company.

The interview may be held either in two stages – preliminary and final – or in one stage only. A preliminary interview could help in recruiting the most probable candidates who could be called for the final interview. It must be conducted by skilled interviewers; otherwise some potential candidates may be lost.

In some cases companies organize successive interviews, i.e. the same candidate is interviewed by one or more interviewers separately one after another. The panel or the board interviews are, however, more common. The panel may consist of a small number of experts while a board may have a larger number.

The interview may be patterned or open. In a patterned interview a set of questions is already prepared. The interviewers are able to collect information about the candidate in a systematic and uniform manner. The candidate’s basic characteristics and motivations should also be probed into by the interviewers to arrive at a judgment. In a non-patterned or open interview, interviewers put such questions as they feel would make the candidate reveal his mind and his strong and weak points.

For recruiting technical and highly skilled personnel, technical interviews may be arranged to assess the competence of the candidates in their own special fields. The technical expert on the selection board should properly assess the candidate’s strengths and weaknesses. If he gives his judgment in such terms as a ‘nice chap’, or ‘got rattled easily’, or a ‘bit glib’, he does not take his job seriously.

Each candidate may be interviewed separately or a number of candidates may be interviewed in a group. Personal interview exposes the candidate only before the board, but group interview exposes him before the other applicants also. In a group interview, a candidate must get an opportunity to show his initiative and leadership qualities better than in a personal interview.

The interview aims at selecting the best out of the most probable candidates. It must be conducted in an objective manner. The interviewers should not permit their personal likes and dislikes and prejudices to come in the way of proper assessment of the candidates. They should not allow the filtering of information about the candidate through their own ‘subjective screen of views, needs and prejudices’. They are supposed to pay the same degree of attention to all the candidates on similar aspects of performance.

Process # 3. Employment Tests:

As a method of selection, the employment tests are an exception rather than the rule. They may be used to supplement the information already collected through the application forms and interviews. The future performance of the candidate in a particular field may be predicted to some extent by the tests specially designed for the purpose. The disappointment which arises from failures and dropouts in training and later on the job can be avoided by the use of the tests of ability and potential of applicants.

The five main groups of psychological tests are:

I. Intelligence tests:

Intelligence tests are particularly useful in selecting candidates for jobs which call for problem solving abilities or which involve extensive training. Different forms of intelligence tests are used for candidates of different age groups.

II. Attainment tests:

Attainment tests measure the degree to which a person has acquired knowledge or skill. Tests of knowledge have been developed for spelling, vocabulary, arithmetic, mechanical information and a range of more specialized subjects.

III. Aptitude tests:

Aptitude tests identify an individual’s innate suitability for particular types of work and can indicate whether a man would be more suited to one type of work rather than another. Tests of ‘sales aptitude’, ‘managerial aptitude’, ‘mechanical aptitude’, etc. are used to identify the candidate’s potentialities in a chosen area. The General Aptitude Test Battery identifies a candidate’s abilities in such areas as verbal comprehension, numerical ability, motor coordination, manual dexterity, general intelligence, etc.

IV. Interest tests:

Interest tests help in predicting the areas in which the candidates are most likely to settle down and be satisfied. The candidate’s preference for indoor or outdoor jobs, routine or creative work and individual or group responsibilities may be ascertained by administering interest tests.

V. Personality tests:

Personality tests are designed to measure the degree to which an individual possesses such qualities as drive/ persuasiveness, self-confidence, stability, etc. The most promising kind of test to throw light on the personality area is the situational test, e.g. the leaderless group discussion.

The psychological tests have some limitations. The predictions based upon these tests cannot be hundred percent correct. Further, the candidates brought up in poor families, and in the rural and backward regions may be put to a disadvantage as compared to those coming from affluent urban families when these tests are used as a primary measure for judging their abilities, levels of maturity, etc. The tests should be properly designed and administered by the experts. They should be used to supplement other methods.

4. References:

References should be sought, after the selection is finalized. These may be either in a written form or checked over the telephone. If references are sought before the interview, they may bias the thinking of the members of the selection board. The opinions of the previous employers and other persons referred to by the candidate are only as reliable as the judgment of the person giving them. References may help in checking certain facts given by the candidate in the application form.

5. Medical Test:

The selected candidates are medically examined by the company’s doctor or approved medical practitioners. Medical tests may vary from the comprehensive to the nominal, depending upon the nature of the job. The manual jobs may require comprehensive medical tests to prevent infection, detect ailments and complicated diseases.

6. Appointment Order:

The selected candidates are issued letters of appointment after the recommendations of the selection board are approved by competent authority in the company. Appointments at senior positions such as the chief executives, general managers, financial advisors, etc. need the approval of the board of directors. The chief executive may be the approving authority in the case of other posts.

An appointment order states the post offered, salary and perquisites, service conditions, duration of the post (permanent, temporary, contractual), reporting authority, time limit for communicating acceptance and joining the post, etc. It is duly signed by the employing authority and becomes the first basis of contractual relationship between the company and the candidate.

Personnel Research:

The objective of recruitment these days is not only to select a good person but also to retain a motivated work force as this tends to keep the conflicts low. For this purpose a personnel manager has to fall back on reliable data maintained in his own organization, researches carried out by other bodies/research institutions or appoint consultants to study a specific area and offer advice.

8. Personnel Statistics:

Depending on the size of the company, a statistical cell to collect and collate data may be helpful in analyzing many problems and decision-making processes to reduce conflicts and confrontations.

(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.

Development-

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.

Advantages:

(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.

Limitations:

(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.

Advantages:

(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 labour 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.

Limitations:

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.

Advantages:

(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.

Disadvantages:

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) “Morale and Productivity should move together like east and the west sides of the elevator.” Comment. (16)

->

(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 organization. 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 organization, 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.

(b) Need for Personnel Control

-> This controlling subsystem is defined as the organization ‘s management system for coordinating, planning and reporting. We can distinguish two types of controlling: strategic and operational. The first is associated with strategic management and deals with main objectives and their implementation, and the second deals with action plans that are created based on the objectives.

Tasks of personnel controlling

Personnel controlling is used to achieve best possible use of employees and their development to get the maximum benefit for the company . Information collection and processing of personal information is its main role, as well as monitoring of the coordination and control system. The basic features of personnel controlling are:

• Treatment of staff as a vital business asset,
• Treatment of workers as a source of competitiveness for the organization,

· Shift from the perception of staff regarded only as a source of costs,

• Merging of HR strategy with overall business strategy ,

· Active inclusion of line managers in the personnel management.

Particular areas of interest of personnel controlling are:

· The relationship between HR strategy and other strategies of organization

• Analysis of human potential of organizations
• Analysis of competences and qualifications of employees

· The impact of company’s development plans on change of the requirements for professional qualifications,

· Capacity of human resources and usefulness of used motivation techniques.

• Decisions concerning personnel policies
• Matching staff to the needs of the company,
• Response of workers to changes in the system,
• Organizational culture

Application of personnel controlling

So widely accepted range of interest means that the elements of personnel controlling will be present not only in the human resource planning and staff assessment, but also in selection, professional development, health and safety. It can also affect labor relations and measures of performance and productivity.

Depending on the management objectives for the personnel controlling subsystem, its function could be delegated to specific employee (” controller “). He could have advisory functions that allows to collect, analyze, report and prepare of a decision. He could also have management powers, which gives him a much better decision-making capabilities , and allows closer cooperation with other organizational units. The third form is the creation of the controlling committee in company’s headquarters.

(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.

Characteristics:-

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.