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Question bank HRM
- Hrm and personal management difference
- Function of HRM
- Explain the significane of successive planning
1. Difference Between HRM and Personnel Management
Human Resource Management (HRM) : HRM is a modern approach to managing people in an organization. It focuses on developing the workforce and aligning employee goals with organizational goals. HRM is strategic, focusing on long-term people development, including training, performance management, and talent management. Personnel Management : Personnel management is a more traditional approach that focuses on the administrative tasks related to managing employees, such as hiring, payroll, and compliance with labor laws. It is more concerned with routine operational activities and less with strategic development. Key Differences: Focus : HRM is strategic and development-oriented, while Personnel Management is more operational and administrative. Approach : HRM integrates employees as part of the organization's strategy, while Personnel Management treats employees as a resource to be managed. Scope : HRM covers broader aspects like organizational development, culture, and change management. Personnel Management is narrower, focusing on employee welfare and administrative functions.
2. Functions of HRM
Human Resource Management performs several key functions: Recruitment and Selection : Finding and hiring the right talent for the organization. Training and Development : Providing employees with the skills and knowledge they need to perform their roles effectively. Performance Management : Monitoring and managing employee performance to ensure alignment with organizational goals. Compensation and Benefits : Designing and managing pay structures and benefits programs. Employee Relations : Managing the relationship between the organization and its employees, including handling grievances and fostering a positive work environment. Compliance : Ensuring that the organization adheres to labor laws and regulations. Succession Planning : Preparing for future leadership needs by identifying and developing potential leaders within the organization. Health and Safety : Ensuring a safe and healthy work environment for employees.
3. Significance of Succession Planning
Succession planning is the process of identifying and developing internal employees who have the potential to fill key leadership positions in the organization. The significance of succession planning includes: Continuity : Ensures that key roles are filled quickly with qualified candidates, minimizing disruption to the organization. Talent Retention : Helps retain top talent by providing clear career progression paths. Leadership Development : Encourages the growth and development of future leaders within the organization. Risk Management : Reduces the risk associated with unexpected vacancies in critical positions. Organizational Stability : Maintains stability and continuity by preparing for leadership transitions, ensuring that the organization remains strong even during periods of change. Succession planning is crucial for long-term success, ensuring that the organization can continue to thrive even as leadership evolves.
6. (a) Discuss the important objectives of compensation management.
Compensation management aims to: Attract and Retain Talent : Offering competitive salaries and benefits helps to attract skilled employees and retain them in the organization. Motivate Performance : Compensation tied to performance can incentivize employees to work harder and achieve organizational goals. Ensure Equity : Fair compensation ensures that employees are paid fairly for their work, considering factors like job role, experience, and performance. Compliance with Legal Standards : Compensation management ensures that the organization adheres to wage laws and regulations. Cost Management : Balancing employee compensation with the organization's budget to ensure financial sustainability.
6. (b) What is a halo effect? Explain the halo effect in performance appraisal
and potential appraisal.
The Halo Effect is a cognitive bias where an overall impression of a person influences how we perceive their specific traits. In performance appraisals, if an employee excels in one area, the appraiser might rate them higher in other unrelated areas, regardless of their actual performance. This can lead to inaccurate appraisals and may affect decisions about promotions or salary increases.
7. (a) What is the MBO method of appraisal?
Management by Objectives (MBO) is a performance appraisal method where managers and employees collaborate to set, monitor, and achieve specific objectives within a set timeframe. The key aspect is that the objectives are agreed upon by both parties, which helps in aligning individual performance with organizational goals.
performance. It combines the benefits of qualitative and quantitative data by providing specific examples of performance levels for various job-related behaviors. Actors in Industrial Relations : Key actors in industrial relations include employers, employees, and the government. Employers and employees engage in negotiations to determine work conditions, while the government ensures compliance with labor laws. Merits and Demerits of External Sources of Recruitment : o Merits : Brings fresh talent and new ideas to the organization, offers a larger pool of candidates, and reduces internal politics. o Demerits : Higher cost, longer process, and may affect the morale of current employees who might feel overlooked. These are concise answers to the questions on the exam paper. Let me know if you need further explanation or additional information!
Evolution of HRM
The evolution of Human Resource Management (HRM) can be broadly categorized into several stages:
- Industrial Revolution (Late 18th to Early 19th Century): o Emergence of large-scale production and factories. o Initial focus on administrative tasks like payroll, welfare, and record-keeping. o Personnel management focused on improving labor productivity and reducing labor costs.
- Early 20th Century - Scientific Management Era: o Influenced by Frederick Taylor's principles of scientific management. o Focus on optimizing worker efficiency through task specialization and standardization. o Emergence of welfare and labor relations as key functions of personnel management.
- Mid 20th Century - Human Relations Movement: o Emphasis on the psychological and social aspects of work, influenced by Elton Mayo’s Hawthorne Studies. o Recognition of the importance of employee motivation, satisfaction, and leadership. o Shift from mere administrative functions to considering employee welfare and motivation.
- 1970s-1980s - Emergence of Strategic HRM: o HRM began to be recognized as a strategic function. o Focus on aligning HR practices with organizational goals. o Introduction of concepts like talent management, performance management, and employee engagement.
- 1990s-Present - Modern HRM: o HRM as a central strategic partner in organizational success. o Increased focus on talent acquisition, development, retention, and company culture. o Technological advancements led to the rise of HR analytics, digital HRM, and e-HRM systems.
o Emphasis on diversity and inclusion, global HRM, and employee well-being.
Difference Between Selection and Recruitment
Recruitment : o Definition : Recruitment is the process of identifying, attracting, and encouraging potential candidates to apply for job vacancies in an organization. o Purpose : The main purpose is to create a pool of candidates from which suitable ones can be selected. o Process : It involves advertising the job, receiving applications, and screening candidates based on basic criteria. o Outcome : The result of recruitment is a list of candidates who are interested in and eligible for the job. Selection : o Definition : Selection is the process of choosing the most suitable candidate from the pool of applicants who have applied for the job. o Purpose : The main purpose is to identify and hire the best candidate who meets the job requirements. o Process : It involves various steps like interviews, tests, assessments, and reference checks. o Outcome : The result of selection is the hiring of the best candidate for the job.
Steps in Selection
The selection process typically involves the following steps:
- Preliminary Screening : Initial review of applications to eliminate candidates who do not meet the basic requirements.
- Application Form : Candidates fill out a detailed application form providing personal, educational, and professional information.
- Written Tests : These may include aptitude tests, skill tests, or psychometric tests to assess the candidate's abilities.
- Interviews : Various types of interviews (structured, unstructured, panel, or technical) are conducted to assess the candidate's suitability for the role.
- Background Checks : Verification of the candidate's qualifications, work experience, and other credentials.
- Medical Examination : Some organizations require candidates to undergo a health check to ensure they are fit for the job.
- Final Selection : The candidate who performs best in all the stages is selected.
- Job Offer : A formal job offer is made to the selected candidate, including details of salary, benefits, and other terms of employment.
- Onboarding : Once the offer is accepted, the candidate goes through an onboarding process to integrate into the organization.
Discuss How Effectively Training Programs Can Be Evaluated
Training programs can be effectively evaluated using the Kirkpatrick Model , which assesses training effectiveness on four levels:
communication skills. The ratings are typically numerical, providing a quantitative measure of performance. Modern Method : 360-Degree Feedback - This method involves collecting feedback about an employee's performance from multiple sources including supervisors, peers, subordinates, and even customers. This comprehensive approach gives a well-rounded view of the employee’s performance.
6. (a) Discuss any four determinants of compensation.
- Job Complexity : The more complex and demanding the job, the higher the compensation to attract and retain qualified employees.
- Market Pay Rates : Compensation is influenced by what other organizations are paying for similar roles in the industry and geographic area.
- Employee Performance : High performers often receive higher compensation in the form of merit increases, bonuses, or promotions.
- Company's Financial Position : The organization's ability to pay, based on its financial health and profitability, directly affects compensation levels.
6. (b) Explain the Factor-Comparison technique of job evaluation.
The Factor-Comparison Technique is a job evaluation method where jobs are ranked based on several key factors, such as skills, responsibilities, effort, and working conditions. Each factor is assigned a monetary value, and the total of these values provides the job's overall worth. This method ensures that compensation is aligned with the job's demands and responsibilities.
7. (a) Define Industrial Relations.
Industrial Relations refers to the relationship between employers, employees, and the government, and the institutions and associations through which such relationships are mediated. It involves the management of work-related roles, conditions, and rights, and the resolution of conflicts that arise from employment relations.
7. (b) State any three causes of industrial dispute.
- Wage Demands : Disputes often arise when employees feel that their wages or benefits are inadequate or unfair.
- Working Conditions : Poor or unsafe working conditions can lead to industrial disputes as employees demand improvements.
- Management Policies : Disagreements over company policies, such as work hours, job security, or disciplinary actions, can lead to disputes.
7. (c) Distinguish between a strike and a lock-out.
Strike : A strike is an action taken by employees where they stop working to press for their demands, such as better pay or working conditions. Lock-out : A lock-out is an action taken by the employer where they prevent employees from working, typically as a response to a strike or to force employees to accept certain terms and conditions.
7. (d) What is Works Committee? Discuss its duty.
A Works Committee is a group of representatives from both the management and the workers, established in industrial organizations to promote cooperation between both parties. Its primary duties include discussing and resolving issues related to working conditions, employee welfare, and other day-to-day work-related matters to prevent industrial disputes.
8. (a) What do you mean by a career?
A Career refers to the series of jobs or positions an individual holds over their working life, typically within a particular field or industry. It includes the growth, development, and changes in roles or responsibilities as the individual progresses through various stages of employment.
8. (b) What do you understand by career anchor? Discuss the different types
of career anchors.
A Career Anchor is a concept introduced by Edgar Schein, which refers to the core values, needs, and motives that guide an individual's career decisions and define their self-concept in their professional life. The different types of career anchors include: Technical/Functional Competence : Preference for jobs that require specialized skills. Managerial Competence : Desire for leadership and management roles. Autonomy/Independence : Preference for roles with high autonomy and freedom. Security/Stability : Preference for jobs that offer job security and stability. Entrepreneurial Creativity : Desire to create and develop new ventures. Service/Dedication to a Cause : Preference for roles that align with personal values and a desire to help others. Pure Challenge : Desire for roles that involve overcoming difficult challenges. Lifestyle : Preference for roles that allow for a balance between work and personal life.
8. (c) State the different stages of career development cycle.
The stages of the Career Development Cycle typically include:
- Exploration : Early career stage where individuals explore different career options and identify their interests.
- Establishment : The stage where individuals secure jobs and start developing skills and advancing in their careers.
- Mid-Career : A stage where individuals may reassess their career paths, seek promotions, or consider changes in their career trajectory.
- Late Career : Involves consolidation of skills, mentoring others, and preparing for retirement.
- Decline/Disengagement : Gradual disengagement from active work life as retirement approaches.
9. (a) What is HRD?
Supply Forecasting is the process of estimating the availability of human resources within an organization or in the external labor market over a specific period. It involves predicting the number of employees who will be available to meet the organization's future demands, considering factors such as retirement, turnover, promotions, and availability of external talent. Supply forecasting ensures that an organization has the right number of employees with the necessary skills to meet its future needs. This forecasting helps organizations plan for hiring, training, and development to maintain an adequate workforce, aligning with business objectives and strategies.
4. (b) Explain the Management by Objective (MBO) method of appraisal.
Management by Objective (MBO) is a performance appraisal method where employees and managers collaboratively set specific, measurable objectives. The performance of the employee is then evaluated based on the achievement of these objectives. The steps involved in the MBO process are:
- Goal Setting : Both the manager and employee agree on specific, achievable objectives.
- Action Planning : Employees outline the actions they will take to achieve the goals.
- Implementation : Employees work towards the agreed objectives.
- Review and Feedback : Regular meetings are held to monitor progress, and adjustments are made as needed.
- Final Evaluation : At the end of the appraisal period, the employee's performance is evaluated based on the achievement of the objectives.
6. (a) Discuss any four determinants of compensation.
- Job Evaluation : The process of determining the worth of a job in comparison to other jobs within the organization. This helps in setting a fair salary structure.
- Market Rates : Compensation is influenced by the prevailing wage rates in the market for similar jobs. Organizations often benchmark their salaries against the market to stay competitive.
- Cost of Living : Compensation may be adjusted according to the cost of living in a particular region, ensuring that employees can maintain a certain standard of living.
- Employee Performance : High-performing employees may receive higher compensation through bonuses, raises, or promotions as a reward for their contributions to the organization.
6. (b) State and explain the point technique of job evaluation.
The Point Method of job evaluation is a systematic approach where jobs are broken down into various compensable factors such as skills, responsibilities, effort, and working conditions. Each factor is assigned a specific number of points based on its relative importance. The total number of points for a job determines its position in the job hierarchy and, consequently, its salary level. The steps include:
- Identifying Compensable Factors : Key elements of a job that are deemed valuable to the organization.
- Assigning Points to Factors : Points are allocated to each factor based on its significance.
- Evaluating Jobs : Jobs are assessed and scored according to the points assigned to their respective factors.
- Ranking Jobs : Jobs are ranked based on their total points, helping to determine the appropriate compensation level.
7. (a) State and discuss the Dunlop’s model of industrial relations.
Dunlop’s Model of industrial relations views the workplace as a system comprising three main actors: employers, employees (and their representatives, like unions), and the government. These actors operate within an environment influenced by economic, social, and political factors. The model emphasizes the importance of rules and regulations governing workplace behavior, which are created through the interaction of these three actors. The model suggests that industrial relations are a result of the negotiation and agreement on these rules.
8. (a) Discuss the different types of career anchors.
Career Anchors are a concept introduced by Edgar Schein, referring to the self-concept that an individual holds about their career. These anchors guide career decisions and include:
- Technical/Functional Competence : Desire to excel in a particular technical or functional area.
- Managerial Competence : Aspiration to manage and lead others, with a focus on influencing organizational goals.
- Autonomy/Independence : Preference for work that allows for independence and freedom from organizational constraints.
- Security/Stability : Value placed on job security and stable work conditions.
- Entrepreneurial Creativity : A strong drive to create new ventures or innovate within existing organizations.
- Service/Dedication to a Cause : Commitment to work that aligns with personal values or contributes to a cause.
- Pure Challenge : Seeking out challenging tasks that test one’s abilities.
- Lifestyle : Desire to integrate personal life and career, emphasizing work-life balance.
9. (a) Discuss the important mechanisms of HRD.
Human Resource Development (HRD) mechanisms refer to the processes and practices used to develop the skills, knowledge, and capabilities of employees. Key mechanisms include:
- Training and Development : Programs designed to enhance employees' skills and knowledge.
- Career Development : Planning and managing employees' career growth within the organization.
- Performance Management : Regular evaluation of employee performance to ensure alignment with organizational goals.
- Analyzing Organizational Objectives : Understand the short-term and long-term goals of the organization. These goals determine the future demand for human resources.
- Reviewing Past Trends : Examine historical data on employee turnover, retirement rates, and past hiring patterns to predict future needs.
- Assessing the Current Workforce : Evaluate the existing workforce in terms of skills, experience, and performance to determine if current employees can meet future needs.
- Forecasting Future Demand : Based on organizational growth plans, market conditions, technological advancements, and other external factors, estimate the number and type of employees required.
- Gap Analysis : Compare the forecasted demand with the current workforce to identify any gaps in skills, numbers, or expertise.
- Developing Action Plans : Create strategies to bridge the gap between current workforce capabilities and future needs, such as hiring new employees, training existing employees, or outsourcing.
Importance of Demand Forecasting:
Resource Planning : Helps in better planning of recruitment, training, and development activities. Cost Management : Prevents overstaffing or understaffing, thereby controlling labor costs. Strategic Alignment : Ensures that the workforce is aligned with the strategic goals of the organization. Minimizing Risks : Reduces the risks associated with sudden changes in workforce needs due to market or environmental shifts. Demand forecasting is crucial for ensuring that an organization has the right number of employees with the right skills at the right time to achieve its goals.
1. Halo Effect
The halo effect occurs when a person's overall impression of someone (positive or negative) influences their thoughts and feelings about that person’s specific traits or behaviors. For instance, if someone is good-looking, they might be perceived as more intelligent or capable, even without evidence of those traits.
2. Career Anchor
A career anchor is a concept introduced by Edgar Schein, representing the core values, motives, and needs that guide an individual’s career choices. There are eight common career anchors: technical/functional competence, managerial competence, autonomy/independence, security/stability, entrepreneurial creativity, service/dedication to a cause, pure challenge, and lifestyle integration.
3. Behaviorally Anchored Rating Scales (BARS)
BARS is a method used in performance appraisals, combining elements of traditional rating scales and critical incidents methods. It involves defining specific behaviors
that represent various levels of performance for a particular job, providing a clear and objective standard for evaluation.
4. Different Forms of Strike
Strikes are a form of protest where workers refuse to work. Common types include: o Economic Strike: Workers strike for better wages or benefits. o Sympathy Strike: Workers strike in support of another group of workers. o General Strike: A widespread strike involving workers across multiple industries. o Wildcat Strike: A spontaneous strike not authorized by a union. o Sit-Down Strike: Workers occupy the workplace but do not work. o Hunger Strike: Workers refuse to eat to protest a cause.
5. Linkage Between HRD and Organizational Effectiveness
Human Resource Development (HRD) involves training, development, and career management programs designed to improve employee skills and knowledge. Effective HRD is directly linked to organizational effectiveness by enhancing productivity, fostering innovation, improving employee engagement, and aligning employee goals with organizational objectives.
6. Difference Between Performance and Potential Appraisal
Performance Appraisal: Evaluates an employee's current job performance based on specific criteria. Potential Appraisal: Assesses an employee’s potential to perform well in future roles or take on more significant responsibilities. It often focuses on the employee's ability to learn and grow.
7. 360-Degree Feedback vs. Traditional Methods of Appraisal
360-Degree Feedback: Involves gathering feedback from multiple sources, including peers, subordinates, supervisors, and even customers. It provides a more comprehensive view of an employee's performance. Traditional Appraisal: Usually involves only the supervisor's evaluation of the employee’s performance, which can be more limited and potentially biased.
8. Stages of Career Development Cycle
The career development cycle typically includes the following stages: o Self-Assessment: Identifying interests, values, skills, and preferences. o Exploration: Investigating various career options and opportunities. o Goal Setting: Defining short-term and long-term career objectives. o Skill Development: Acquiring the necessary skills and education for chosen career paths. o Implementation: Taking action to pursue career goals, such as job searching or further training. o Evaluation: Reviewing progress and making necessary adjustments.
