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Ans1. The success ofHR plans depends on the accuracy of the HR Forecastthat
are needed to implement the organisational strategies .These forecasting involve
estimating the future requirements of the organisation in terms of the nature and
the number of people. An organisation may use one or more of the forecasting
techniques available to access the future HR requirements. In fact the accuracy
of HR Forecasting largely depends on the ability of the forecasting techniques
in rightly projecting the future.
Following are few HR Forecasting techniques:
a) Index/Trend Analysis
b) Expert Forecasting/Delphi technique
c) Nominal Group technique
d) HR Budgets:
Staffing/Manning tables
e) Envelope and Scenario Forecasting
f) Regression Analysis
g) Productivity Ratio
h) Personal Ratio
i) Time Series
Briefly Index/Trend Analysis and Expert Forecasting/Delphitechnique
are given below:
1. Index/Trend Analysis : Index/Trend Analysis forecasts the Requirement
for additional manpower by projecting trends of the past, present and the
future. It makes use of operational indices for this:
Historical relationship between the operational index and the
demand for labour
Operational indices used are:
Sales
Number of units produced
Number of clients serviced
Production/Direct labour hours
Trend Analysis can be used for Forecasting overall Organisation, Aub-
Units or Indirect (Staff) and Direct (Line) Manpower requirements. The
Index/Trend Analysis involves the following steps:
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a) Selectthe appropriate business/operationalindex-Select a readily
business index, sales level that is known to have direct influence on the
Organisational demand for labour.
b) Track the index overtime-Once the index has been selected, it is
necessary to go back in time for at least 4 or 5 mostrecent years.
c) Track the workforce size overtime-Record the Historical figures of the
total number of employees.
d) Calculate the average (ormost recent) ratio of the business index to
the workforcesize (Employee Requirement ratio)-In this step, the ratio
of number of employees required for each thousand rupees of sales is
obtained by dividing each year’s number of employees by the level of
sales.
e) Calculate the forecastedHR demand-Multiply the annual forecasting
for the business index times the average employee requirement ratio for
each future year to arrive at forecasted annual demand for labour.
2. Expert Forecasting/Delphitechnique: This method is essentially a
group process to achieve a consensus forecast. This method calls for
selection of a panel of experts either from within or outside of the
organisation. A series of questions is prepared from the responses
received from a prior set of questions in sequencing manner.
The procedureof Delphi technique involves the following steps:
1. To start with it requires selection of a coordinator and a panel of
experts from bothwith and outside of an organisation
2. The coordinatorthen circulates questions in writing to each expert
3. The experts then write their observations
4. The coordinator then edits those observations and summaries
without however disclosing the majority opinion in his summary
5. On the basis of his summary the coordinator develops a new set of
questionnaires and circulates them among the experts
6. Experts then answer those set of questions
7. The coordinators repeats the process till such time he is able to
synthesise from the opinion of the experts
Ans2. The various types of selection tests are as follows:
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a) Intelligence test: This is a standardized and mostwidely used test
developed by psychologists. It measures the mental ability of an
individual.
b) Aptitude test: It measures an individual’s ability to learn a given job
when give enough or adequate training.
c) Achievement test: It measures an individual’s knowledge related to job
proficiency.
d) Situational test: In this test the candidates have to go through simulated
business situations and their responseare recorded and evaluated.
e) Personalitytest: This test helps to evaluate an individual’s value system,
emotion, maturity and other personal characteristics.
f) Polygraph Test: This test method is used to check the validity and
truthfulness of an individual by monitoring the physical changes in the
bodyas he answers a series of questions. This test is done normally for
screening of applicants for defence and higher profile security jobs.
g) Graphology: Examines an individual’s handwriting to evaluate his or her
personality.
Interview
Most organisations use interview as an essential step in the selection
process.aninterview helps in evaluating the applicants profile and comparing it
with the job profile for suitability.
Some applicants may provide some false information in their applications just
to gain employment.
Interview process:The interview process involves preparation, conducting
and closing the interview.
Preparation: Interviewer should follow these steps when preparing for an
interview.
Determine the objectives
Read the application
Determine the mode of evaluation
Time
Without any prejudice and bias
Setting: Interviewers should make the candidates fell comfortable and relaxed.
Conduct interview: While co ducting the interview the interviewer should:
Demonstrate a basic liking and respect for people
Preferably ask open ended questions
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Not invalid the privacy of the candidate
Be an attentive listener
Note or mark the relevant points
Closing an interview: It is an important part of an interview. It should be
carries out in a smooth way. Interviewer should make an overt sign to indicate
the end of an interview.
Types of interview:
Preliminary interview: Preliminary interview are brief, first round interviews
that aim to eliminate the applicants who are unqualified for the Job. These
interviews are generally informal and unstructured and conducted even before
the candidates fill in the application blanks.
Selectioninterview: a selection or core interview is normally the interaction
between the job applicants and the line manager or expert, where the applicant’s
knowledge, skills, talent, etc. are evaluated and ascertained. The selection
interview can be of the following types:-
Formal and structured -A structured interview is very rigid in its structure and
contents.it is based on a thorough job analysis. The interviewer selects the
questions to be asked and plans the interview in advance.
Unstructured interview: An unstructured interview has no pre-determined
framework and questions and takes its own course depending on the responses
of the candidates and the interest of the interviewer.an unstructured interview
contains more open ended questions.
Stress interview: The objective of a stress interview is to test the applicant’s
ability to perform and deliver under stress. Interviewers put the interviewee
under stress by repeatedly interrupting him, criticising his answers, as him u
relates questions or keeping quiet for long periods after the interviewee has
finishes speaking.
Group interview: In the group interview all candidates or a group of candidates
are interview by a panel of interviewers or a single interviewer.
This method I restored to when the number of applicants is high and time
available for interviewing is short.
Panelinterview method: In today’s organisations where all functions are
interdependent and every job involves cross-functional interactions it is
imperative that people from different functions interview a candidate.
In-depth interview: In-depth interviews are more suitable for selection of
candidates for high end technology and high skills job. Experts in the relevant
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area test the candidate’s knowledge and understanding of the subject and
evaluate his expertise.
Decisionmaking interview: after the applicants knowledge in the corearea of
the Job is evaluated by the experts including line manager in the organisation,
the applicants are finally interviewed by the departmental heads and the HR
function.
These interviewed are generally informal decisions.
Ans3.Management Development is related to the development and growth of
the employees in an organisation through a systematic process. This
development is future-oriented and prepares managers for a carrier of valuable
contribution to the organisation. It is concerned with the learning and
development of the employees. It helps in the development of the intellectual,
managerial and people management skills of managers. It trains managers to
understand and analyse different situations and to arrive at and implement the
correct solutions.
Objectives of ManagementDevelopmentAre:
The main objectives of Management Development are:
To improve the performance of the managers
To enable the senior manager to have an overall perspective about the
organisation and also equipping them with the necessary skills to handle
various situations.
Following are the managementdevelopment methods:
1. On-the-job development method
2. Off-the-job development method
A. On-the-job development method: The different On-the-job methods are
as follows:
i. Coaching: It involves one manager playing an active role in guiding
another manager. The coachor trainer teaches the trainee what to do, how
to do it and rectifies any mistake committed by the trainee
ii. Job rotation: It plays an important role in developing the skills set of a
manager
iii. Understudy assignments: In this method of development ,a senior
manager selects and trains a trainee manager from among his/her
Subordinates, who at a future time will be capable of handling the senior
managers responsibilities
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iv. Multiple management : This technique enables junior managers to
participate in board and committee meetings which are normally attended
only by senior and top level managers.
B. Off-the-job development method: The different types of Off-the-job
development methods are as follows:
i. Simulation exercise:The popularly used Simulation exercises are-
a) Case study: Case studies are prepared based on actual experiences of the
organisation. Trainees study, analyse and discus the case, identify the
hidden problems and try to get an appropriate solution.
b) Business games:In this method the trainee are divided into different groups
and teams. They play the role of competing firms in a simulated market.
c) Role Play: In this method the participants enact role to solve problems that
are common in real life. They react to situation and to one another, in the
same way as they would do in their managerial jobs.
d) Incidental methods: This method aims to develop the intellectual ability,
practical judgement and social awareness of the employees. Each employee
is given a written incident which he analysis, identifies the problem and the
probable causes and suggests a solution
e) In basketmethod: This is a method of development that simulates the
aspects of a manager’s job. The trainee receives documents similar to the
items normally found in managers in basket, such as memos, letters, reports
etc.
ii. Sensitivity training: Sensitivity training or Laboratory training is a method
which helps to change the behaviour through unstructured group interaction.
Training groups that seek to change behaviour through unstructured group
actions
Provides increased awareness of others and self
Increases empathy with others, listening skills, openness and tolerance for
others
iii. Transactionalanalysis:This is a theory of personality development which
provides an approachfor defining and analysing the interaction between
people. The basic theory behind transactional analysis is that an individual’s
personality comprises three ego stages namely, the parent, the child and the
Adult ego stage.
The parent ego stage:is characterised by a feeling of superiority and
authority. A personin the parent ego stage is dominating and authoritative.
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The Child ego stage:includes all those impulses that are common in an
infant. A person in the child ego stage is either obedient or manipulative,
charming at one point of time and repulsive at another
The adult ego stage:is objective and rational. In the adult ego stage actions
such as processing’s ofdata, estimation of probabilities or alternatives and
making decisions are done systematically and logically.
iv. Conferences:A meeting of people to discuss a topic of common interest is
referred to as a conference.
v. Lecture: A lecture is the simplest technique of presenting and explaining a
series of facts, principles and concepts.
Ans4. The Various carrier programs are as follows:
Work-Family programmes: Focus on supporting employee manages
their personal as well as work related challenges in a balanced manner.
Increasing use of flexible work schedules, work from home option,
opening of more on-site or company sponsored child care centres, and
greater use of paid leave for fathers and adoptive parents are some
common practices in this area.
Relocationassistance andhiring practices:These practices redress the
challenges associated with employee relocation on accountof a career
move. The supportprovided by firms in assisting spouseof employees
with opportunities within the company, linking them with job placement
consultants as well as sponsoring the costof re-training or picking up a
new skill.
Work life balance seminars and flexible HR practices:Through these
practises organisations design programs to help employees manage their
work family conflicts and coping strategies. Especially prevalent in the
business process outsourcingorganisations were the work life balance is a
concern.
Flexible work schedules:Are being increasingly instituted at the
workplace. These include flexitime, job sharing, part time work, working
from home etc. Such programs enable employees to address their work
and family concerns and reduce their potential stress or conflicts between
their various life roles.
Outplacement programmes:During retrenchment and downsizing is a
professionally managed process in most organisations. The objective over
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here id to assist the affected employees in making the transition to new
employment. It could involve re-skilling for new, more relevant skills per
training institutes and provide the skill training.
Specialprogrammes for women, minorities and employees with
disabilities: With organisations increasingly tapping into this critical
talent pool, more employees in this special category are entering the
workforce. This calls for special focuses on the importance of assisting
these employees with their carrier needs.
Fasttrack employees: Are now being increasingly identified as stars
with high potential for bright future in the organisation. The identification
and development of these employees requires organisations to exert
efforts to build and monitor special programmes that cater to this
initiative helps on retaining the critical talent.
Ans5. Performance review is a systematic activity through which an
organisation determines the extent to which the employee is delivering as per
agreed objectives that is aligned to business results. Generally speaking the HR
specialists design and implement the performance management system (PMS).
They work with the line managers to review the employee’s performance and
maintain their records. Apart from focusing on performance, todays
organisation are emphasising the need for employee development focus in
implementing an effective PMS. The line manger uses the system to review
employee performance and the normal steps include:
Defining performance goals/objectives
Measuring performance
Feedbackand coaching
Every individual in an organisation need to be appraised. The appraisal system
should be able to take care of this and it should also meet the needs and
objectives of an organisation. This type of appraisal helps to evaluate the
performance of an individual in achieving the organisations objectives.
Following are the types of appraisal methods:
1. Trait basedappraisal: This method is used to assess personality or
personal characteristics such as loyalty, communication skills, level of
initiative, decision making etc. This is common in companies that are in
the business of services and customer satisfaction. This evaluates what
the person is than what the person does on the job.
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2. Behaviour basedappraisal: This method focuses on the appraisal of
what an employee does on the job. It evaluates the behaviour and
measures what an employee should do differently. This is common in
NGO’s and hospitality.
3. Results basedappraisal: This method measures the work results
objectively. The focus is on the outcome from the job that alone serves as
the measure for success.It is not possible to use this method in jobs
depending on team work or where the job is service or supportbased.
Individual evaluationmethods:
There are five ways to evaluate employee individuals. Here the employee
is evaluated one at a time without directly comparing him/her with other
employees.
a) Graphic Rating Scale:the most widely used performance rating
technique is graphic rating scale.in this technique the evaluated is present
with a list of assessmentcharacteristics and asked to assign a number
rating to the employee on each of the characteristics listed. The number
of characteristics might vary from a few to several dozen.it aims to
measure the quality of performance and ability to do the present Job.
The ratings are in a continuous scale. Typically these ratings are then
assigned points. For e.g. excellent may be rated 5 and unsatisfactory may
be 0.the total scores are then computed.
b) ForcedChoice:in this method the evaluator must choosefrom a set of
descriptive statement of the employee. The two or three statements items
are grouped in a way that the evaluator cannot easily judge which
statement apply to the most effective employee.
Mostly HR specialists /consultants prepare the items for the form and
managers or other HR specialists rate the items for applicability, which is
what they determine which statement describe effective and ineffective
behaviour. The manager then evaluated the employee. The HR
department then adds the number of statements in each category and they
are summed into an effectiveness index.
c) Essayevaluation: in this technique the evaluator is ask to describe the
strong and weak aspects of the employees behaviour in the form of an
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essay.in a very few organisations the essay technique is the only one
used, in other organisations the other techniques is combined with
another form such as graph is rating scale. The essay elaborates on some
or all of the ratings or discusses added dimensions which are not captured
by the scale. Whenever it is used the essay is open ended or as in most
case there are guidelines on the topics to be covered, the purposeof the
essay.
d) Managementby objectives (MBO): this method is one of the most
popular methods of performance appraisal for individuals.in this system
the manager and the employee to be evaluated jointly set
objectives/targets in advance for the employee to achieve during a
specific period and usually the objectives framed are of quantitative
nature. These objectives are popularly called:
1. KRA key result areas
2. KPA key performance areas
3. Targets
4. Commitments.
MBO is the most effective method for performance review because it is
identified at the beginning of the review period and is regularly reviewed
for achievements and modified again in consensus between the employee
and the manager.
e) Critical incident technique: in this technique the performance is
assessed oncritical incidence, the performance incidence that is
particularly effective or ineffective. The HR specialists combine these
statements into category's which vary with the job once the category is
developed the statement of effective and ineffective behaviour are
provided to the managers. The manager maintains log for each of the
employee right through the evaluation period. This log is used to evaluate
the employee at the end of the period .this technique is generally used by
superiors than in peer or subordinate evaluations.
f) Checklists andweighted checklists:this is another type of individual
evaluation method. Checklist is a set of objectives or statements of job
deleted characteristics or behaviour. If the manager believes that the
employee possesses the traits listed, the manager checks the items, if not
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it is left blank. The number of items selected from the list of the
statements about effective and ineffective behaviour on job, similarly to
critical incident process. Ratters rate the selected items on the scale from
excellent to poor(0-9).the managers or ratters receive the checklist
without the scores and they check the items that apply and assign their
scoreon the item. The employee’s evaluation is the average of sum of the
scoreon the item checked by all the ratters.
g) Behaviourally anchoredrating scale (BARS):is the most prevalent
technique which is a variation of the critical incident approach. This
technique is also called behaviourally expectation scale (BES).
The development of BARS is more costly and time consuming process. A
group of knowledgeable employees identify and detail the important
dimensions that make up for effective performance. A second group
illustrates the list of critical incidents to illustrate the differences in the
dimension
Ans6. Disciplinary actions-penalties:There are various penalties for first,
second and third offences of the same rule. Following are the commonly
practised actions in business organisations:
1. Oral reprimand
2. Written warning
3. Denial of increments, promotions and pay hikes
4. Pay reductions and disciplinary demotions
5. Suspension
6. Discharge or dismissal
I. Oral reprimand: The penalties are listed in the general order of severity,
from mile to severe. For most cases an oral reprimand is sufficient to
achieve the desired result. The supervisor should know his or her personnel
in determining how to give a reprimand. For one person a sessionmay be
necessary in order to get attention and corporation, another personmay
require only a casual mention of a deficiency. If the offence is more serious
the reprimand may be put in written form.
II. Written warning: When an oral warning or counselling to the employee
does not producethe desire result, the manager may issue a written warning
to the employee. The employee is normally asked to acknowledge the
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receipt of written reprimand irrespective of whatever he agrees with the
content of the letter or not.
Since a written reprimand is more permanent than an oral one, it is
considered a more severe offence and the penalty levied accordingly.
III. Denial of increment, promotion and pay hikes: On some incidents the
management may refuse promotions, increments or pay hikes by
blacklisting the employee for a specific period of time. This is usually
treated as a punishment for a certain period of time.
IV. Pay reduction and disciplinary demotion: This is usually more severe
than the denial of pay hikes and promotion becausethe employee loses part
of existing benefits and privileges received by him from the organisation.
In the case of demotion the employee loses social status.
V. Suspension:A few offences normally require the direct suspension of the
employee without any prior warning, depending upon the nature of the
misconduct committed by the employee. The decision regarding the
suspension is generally made by the higher authority.
VI. Discharge ordismissal:This is the severest punishment of all. Both
discharge and dismissal culminates in the termination of the employee.
When the conductof the employee is deemed to be mismatched with the
faithful discharge of his duties and undesirable or against the interest of the
employer to continue him in employment, dismissal will be justified.
In case of discharge, an employer terminates the employment of an aberrant
employee either by giving agree advance notice or by paying money in lieu
of such notice.