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1. The Indian Institute of Business Management and Studies
Sub: Personnel Management Max. Marks: 100
CASE I
What motivates a person to perform is the focus of this chapter. Motivation in
the context of organization refers to the willingness of an employee to respond to
organizational requirements. All the significant content theories of motivation
(Maslaw’s Need Hierarchy Theory, McGregors Theory X and Theory Y and Herzberg’s
Motivation—Hygiene Theory) as well as process theories of motivation (McClellands
Need Theories, Goal Setting Theory, Expectancy Theory and Equity Theory) are
reviewed. Some of the recent attempts in motivating employees like job enrichment,
quality circles, work redesign, flexitime and work democratization are discussed. The
chapter raises some issues concerning money as motivator and takes a closer look at
motivation—productivity linkage.
Questions:
1. Briefly discuss the importance of motivation to organizations.
2. Study an organization, unit, or an individual employee and suggest ways and
means to motivate him to perform more effectively.

2. The Indian Institute of Business Management and Studies
Sub: Personnel Management Max. Marks: 100
CASE II
1. Manpower Planning: The manpower requirement on the generation side is
determined by the design of the plant and the operating requirements. Therefore, as
and when new plants are due for commissioning, the requirement of staff is worked
out in consultation with the A & P Department. Past experience and redeployment of
existing staff is taken care of as a part of this exercise. The requirement of staff on
the distribution and customers side is determined similarly from time to time. For the
sanction of additional manpower and also in some cases for justifying the existing
manpower, the services of the industrial engineers are used. There are 2 industrial
engineers who form the O & M (Organization & Method) Cell in the Corporate A & P
Department.
2. Recruitment and Selection: Some of the job titles in the Company are by practice
classified as recruitment posts. Recruitment to such categories is done through open
advertisements in the newspapers, from the apprentices of the company or through
the employment exchange. Written and oral tests are conducted in the selection
procedure. For all technical positions, practical tests are also conducted. Candidates
who pass all the three tests are considered successful. Marginal relaxation is made in
the requirement of qualifications (only percentage of marks) and age is given to the
children of ex-employees if no other child of the said employee is in employment
with the company. Special cases of recruitment arise in case of the premature
retirement of employees on medical grounds or death of an employee while in
service with the company or an employee meeting with a fatal accident while on the
job.
The induction of any new employee in the company is a part of the
responsibility of the unit’s Personnel Officer jointly with the Line Officer, in whose
section the new employee has been appointed. In case of Management Trainees, the
respective corporate departments take care of their induction. As part of this
induction, the Management trainees are taken to each department of the Company

3. The Indian Institute of Business Management and Studies
Sub: Personnel Management Max. Marks: 100
where they are introduced to the officers concerned and briefed about the functions
of each respective department.
Promotions are based on the criteria of seniority and merit. Promotions are
department-wise. As and when a promotional vacancy occurs in any department, the
said post is notified on the notice boards of the respective department after approval
of the corporate A&P Department and applications from eligible employees are
invited. The eligible employees are then tested. The test consists of written, practical
and oral tests and the employee must pass all the three tests in order to qualify for
promotion. The seniormost among the employees who pass is then promoted.
In almost all the technical as well as administrative categories vacancies exist
from the very basic level right up to the highest category among the employees.
There are seven levels among the unionized categories of the employees A, B, C, D,
E, F1 and F2. Very few positions beyond Scale D are filled in by direct recruitment.
Again, Also to the recruitment positions employees within the Company, if they
qualify, are given an opportunity and suitably promoted if they pass the tests. Even
among the lowest unskilled categories, e.g., labourers, peons, safai kamdars, at
least one opening in the higher scale exists. Therefore, it is possible that an
employee joining the company at the lowest level as a laborer could acquire
additional qualifications or suitable experience and be recruited or taken in Scale D
after which he has ample opportunity for further promotions. To help such
employees who are not successful in the promotion process, the Company also has a
policy of elevating the employees. Employees who have completed 12 years in a
particular scale or 9 years in the scale and have also reached the ceiling of the scale
are, given an opportunity for rising to the next higher scale. Such an opportunity is
given only once during the entire career of the employee. An employee on rising
thus, will become eligible for a higher salary without any change in his job
responsibilities and designation.
3. Human Resource Development (1) Recruitment at lowest level and thereafter
career growth from within. An ITI qualified candidate recruited as a skilled employee
can rise up to supervisory level. A candidate recruited as a Supervisor can become
an Officer and a candidate recruited as a first Level Officer can rise to the position of

4. The Indian Institute of Business Management and Studies
Sub: Personnel Management Max. Marks: 100
the General Manager. Some of the General Managers in the Company today were
initially recruited as Graduate Trainees. Also candidates recruit ed as peons can rise
up to semi-supervisory or supervisory jobs.
(2) Lifetime employment and nil employee turnovers: The A & P Department, at the
corporate level sets down the policies and rules in all personnel matters. Most of
these administrative activities are therefore decentralized at the personnel unit in
departments. The corporate department is approached only if there are specific
queries or clarification. All recruitment is centralized, which is very important
function that is looked after in the Corporate A & P Department. Also, all matters
which go in for litigations are centrally attended to by the Corporate A & P
Department.
The nature of relationship between the Personnel Department at the
corporate level and those in all the different departments is of a ‘team approach’,
where the Corporate A&P Department frames policies based on feedback and
requirement. The corporate A&P Department also functions as a guide. Very
important, the unit personnel officers also liaison between the Corporate A&P
Department and the respective units of their posting in all functions attached to the
A&P Department. (Source: Company documents.)
Questions:
1. The number of consumers is projected to increase by 2000 every month.
What would be the requirement for the following categories:
1. bill distributors;
2. meter readers;
3. estimators; and
4. inspectors?
2. Given urbanization, leading to houses and buildings like apartments for
consumers, with personalized transport like two wheelers for meter readers,
can you refix the norms for the Categories in 1 above taking into account an
increase in productivity. What other factors need to be balanced against this

5. The Indian Institute of Business Management and Studies
Sub: Personnel Management Max. Marks: 100
increase in productivity? (Specify your group productivity increase and other
factors.)
3. Propose a revised organization structure at the zonal office, where the
company feels that with existing manpower more consumers have to be
serviced (the Naranpura area is in a high population growth zone).

6. The Indian Institute of Business Management and Studies
Sub: Personnel Management Max. Marks: 100
CASE III
Welfare implies providing better work conditions, reasonable amenities (such
as drinking water, toilet, rest rooms and rest pauses etc) and services beyond job
such as recreation, housing, education etc.). In India the concept of welfare can be
divided into statutory welfare (that which is required by law) and non, statutory
welfare (that which is undertaken voluntarily by the employees). Because of union
pushfulness as well paternalistic altitude of management, a large number of non
statutory facilities are available to workers. Management has provided them with the
hope that these would lead to satisfaction with the organization which in turn would
help in improving productivity. However it is debated whether such a linkage really
works in reality.
The Personnel Manager of Roshans Limited has received an application for the
introduction of company conveyance for employees staying in town. Although
Roshans Limited has provided living facilities to its employees, about 60 per cent of
its 1,000 employees still have to commute an average of 10 km to come to work.
The union and some of the employees living on campus have supported the demand.
Though the management might favour such a move some section of the workforce
are concerned that the introduction of company conveyance facility may cut down
their wages. The company under disguise of compensation allowance pays Rs. 20 per
month for traveling to employees staying more than 8 km away from company
premises.
1. What factors would you take into account in evaluating this demand from the
workers?
2. Provide the rationale for implementing or not implementing this demand.

7. The Indian Institute of Business Management and Studies
Sub: Personnel Management Max. Marks: 100
CASE IV
Personnel research is an important activity of personnel manager. It helps in
reviewing existing personnel policies and developing more effective systems. It also
helps in anticipating personnel problems and building up existing body of knowledge.
Research has the advantage of being systematic, objective and purposive. Personnel
manager can conduct research by using a number of methods. He/She can choose
from such methods as case studies, historical studies, survey research, exploratory
studies, experimental studies etc., depending upon the objective of the research. No
matter what methods is chosen the process of research involves statements of
purpose, problem, methods and procedures results and implications.
1. Identify a personnel problem that has to be solved. This can be done by
discussions with the personnel manager of an organization. Write a detailed
proposal of how you would carry out the research to find the answer.

8. The Indian Institute of Business Management and Studies
Sub: Personnel Management Max. Marks: 100
CASE V
The present day business corporation functions in an environment where
demands on it emanate from several groups. This has, to a considerable extent,
resulted from a changed social environment and value system in the community. The
realization of the social responsibility of business has spread down to the retail level
today.
Profits are a useful index to measure the efficiency of an enterprise. Internal
social responsibilities do not consist merely of the provision of a job and the
attendant welfare measures as deemed by legislation. India has a very
comprehensive set of labor legislations which take into account a wide range of
factors—the various types and kinds of industries, the capacities of these units to
incur welfare expenditure and the basic needs of the workforce given their socio-
economic background. Legislations provide the foundation and the base, but in many
cases, employers do not even adhere to this level. Of course, legislations do not
cover workers in the disorganized sector. Wages and discipline are but a part of the
employee’s life in an organization. The employer has centain responsibilities towards
his employee. In turn, the employee is also equally responsible for behaving in a
responsible and concerned manner.
Questions:
1. Discuss the concept of social responsibility. Why should and enterprise be
concerned with it?
2. How have some firms in India gone about discharging their social
responsibilities? What other approaches can be tried? Give reasons.