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Human Resource Management Question Answer Bank MBA-203

Q
...

Scott, Clothier and Spriegel have defined Human Resource Management as that
branch of management which is responsible on a staff basis for concentrating on
those aspects of operations which are primarily concerned with the relationship of
management to employees and employees to employees and with the development of
the individual and the group
...
It is also concerned with development of individuals and
achieving integration of goals of the organization and those of the individuals
...

According to Edwin B
...
This definition
reveals that human resource (HR) management is that aspect of management, which
deals with the planning, organizing, directing and controlling the personnel functions
of the enterprise
...
2 What is the nature of Human Resource Management?
The emergence of human resource management can be attributed to the writings
of the human relation thinkers who attached great significance to the human factor
...

The nature of the human resource management has been highlighted in its
following features :
1
...
This function is performed by all the managers
throughout the organization rather that by the personnel department only
...

2
...
It is performed by all managers at various levels in the organization
...
However,
he may secure advice and help in managing people from experts who have special
competence in personnel management and industrial relations
...
Basic to all Functional Areas : Human Resource Management permeates
all the functional area of management such as production management, financial
management, and marketing management
...

4
...
It is concerned with all categories of personnel
from top to the bottom of the organization
...
e
...
) and white-collar workers (i
...

clerical employees), (ii) Managerial and non-managerial personnel, (iii) Professionals
(such as Chartered Accountant, Company Secretary, Lawyer, etc
...

5
...
It includes
manpower planning, employment, placement, training, appraisal and compensation of
employees
...

6
...
It must be performed continuously if the organizational objectives are to be
achieved smoothly
...
Based on Human Relations : Human Resource Management is concerned
with the motivation of human resources in the organization
...
Every person has different needs,
perceptions and expectations
...
They require human relations skills to deal with the people at work
...

Personnel Management VS Human Resource Management :
Contemporary Human Resource Management, as a part and parcel of
management function, underscores strategic approach to management in areas of
acquisition, motivation, and management of people at work
...
3 What are the objectives of HRM?
According to Scott, Clothier and Spriegal, ―The objectives of
Human Resource Management, in an organization, is to obtain maximum individual
development, desirable working relationships between employers and employees and
employees and employees, and to affect the moulding of human resources as
contrasted with physical resources‖
...
However, the specific objectives of human
resource management are as follows :
(i) To ensure effective utilisation of human resources, all other organizational
resources will be efficiently utilised by the human resources
...

(iii) To generate maximum development of human resources within the organization
by offering opportunities for advancement to employees through training and
education
...

(v) To ensure reconciliation of individual/group goals with those of the organization
in such a manner that the personnel feel a sense of commitment and loyalty
towards it
...

In order to achieve the above objectives, human resource management undertakes the
following activities :
(i) Human Resource Planning, i
...
, determining the number and kinds of personnel
required to fill various positions in the organization
...
e
...

(iii) Training and development of employees for their efficient performance and
growth
...

(v) Motivation of workforce by providing financial incentives and avenues of
promotion
...
The employees must be given sufficient wages and
fringe benefits to achieve higher standard of living and to motivate them to show
higher productivity
...


Q
...

The main functions of human resource management are classified into two categories:
(a) Managerial Functions and (b) Operative Functions
(a) Managerial Functions
Following are the managerial functions of Human Resources Management
...
Planning : The planning function of human resource department pertains to
the steps taken in determining in advance personnel requirements, personnel
programmes, policies etc
...

2
...
In this way a personnel manager performs
following functions :
(a) preparation of task force;
(b) allocation of work to individuals;
(c) integration of the efforts of the task force;
(d) coordination of work of individual with that of the department
...
Directing : Directing is concerned with initiation of organised action and
stimulating the people to work
...
A personnel manager
guides and motivates the staff of the organization to follow the path laid down in
advance
...
Controlling : It provides basic data for establishing standards, makes job
analysis and performance appraisal, etc
...

(b) Operative Functions : The following are the Operative Functions of Human
Resource Management
1
...
It deals
specifically with such subjects as the determination of manpower requirements, their
recruitment, selecting, placement and orientation, etc
...
Development of Personnel : Development has to do with the increase
through training, skill that is necessary for proper job performance
...
Framing a sound
promotion policy, determination of the basis of promotion and making performance
appraisal are the elements of personnel development function
...
Compensation to Personnel : Compensation means determination of
adequate and equitable remuneration of personnel for their contribution to
organization objectives
...
A
number of decisions are taken into the function, viz
...
It also
assists the organization for adopting the suitable wages and salaries, policy and
payment of wages and salaries in right time
...
Maintaining Good Industrial Relation : Human Resource Management
covers a wide field
...
It the personnel manager is
unable to make harmonious relations between management and labour industrial
unrest will take place and millions of man-days will be lost
...
Hence, the personnel
manager must create harmonious relations with the help of sufficient communication
system and co-partnership
...
Record Keeping : In record-keeping the personnel manager collects and
maintains information concerned with the staff of the organization
...

6
...

Q
...

Human Resource Management has a place of great importance
...
Drucker, ―The proper or improper use of the different factors of
production depend on the wishes of the human resources
...
Human resources can increase
cooperation but it needs proper and efficient management to guide it‖
...
Because of the following reasons human resource management holds a

place of importance
...

2
...

4
...

6
...

8
...

It supplies skilled workers through scientific selection process
...

It prepares workers according to the changing needs of industry and
environment
...

Through innovation and experimentation in the fields of personnel, it helps in
reducing casts and helps in increasing productivity
...

It establishes mechanism for the administration of personnel services that are
delegated to the personnel department
...
It
is the key to the whole organization and related to all other activities of the
management i
...
, marketing, production, finance etc
...
It involves a system to
be followed in business firm to recruit, select, hire, train and develop human assets
...
The attainment of
organizational objectives depends, to a great extent, on the way in which people are
recruited, developed and utilized by the management
...


Q
...
The human resource managers of today may
find themselves obsolete in the future due to changes in environment if they do not
update themselves some of the important challenges which might be faced by the
managers in the management of people in business and industry are discussed below :
1
...
A
large number of multinational organizations have grown over the years
...
The management of
increased workforce might create new problems and challenges as the workers are

becoming more conscious of their rights
...
Increase in Education Level : The governments of various countries are
taking steps to eradicate illiteracy and increase the education level of their citizens
...

3
...
There is a
general apprehension of immediate unemployment
...
The problem, of
unemployment resulting from modernization will be solved by properly assessing
manpower needs and training of redundant employees in alternate skills
...
Changes in Political Environment : There may be greater
Government‘s interference in business to safeguard the interests of workers,
consumers and the public at large
...
The Government
may restrict the scope of private sector in certain areas in public interest
...
In fact, there will be more and more joint sector enterprises
...
Increasing Aspirations of Employees : Considerable changes have been
noted in the worker of today in comparison to his counterpart of 1950s
...

6
...
In the traditional bureaucratic model, the organizations were designed
to achieve technical functions with a little consideration given to the psychosocial
system
...

7
...
More recently, there has been and in the future there will
be the impact of revolutionary computerised information system on management
...

8
...
One interesting fact will be an increase in the mobility of various

managerial and professional personnel between organizations
...

9
...
It is the duty of the human resource or personnel executive to be aware
of these changes and to bring about necessary adjustments within the organizations so
that greater utilisation of human resources can be achieved
...

10
...
Though a large number of factors are responsible for
industrial unrest but a very significant cause is the growth of multiunions in industrial
complexes having different political affiliations
...

Management of human relations in the future will be more complicated than it is
today
...
This will be in part the result of a change in value systems
coupled with rising educational levels
...

Unquestioning acceptance of rules and regulations will be less likely
...
Many traditional practices have been thrown out
...
It means a great deal of specialisation and skills
...

The new role of human resource management is much more strategic than
before
...
A Facilitator of Change : To carry people through upheaval requires the true
management of human resources
...
An Integrated Approach to Management : Rather than being an isolated
function, human resource is regarded as a core activity, one which shapes a
company‘s values
...


3
...

These changes, which are taking place, involve more commitment of the
organization to the development of people by improving performance and cutting
costs
...
The future creative careers, will require more
involved approach to career development, which will include :
(i)

Share employees with strategic partner organizations (customers of suppliers) in
lieu of internal moves
...


(iii) Fund-groups of employees to set-up as suppliers outside the organization
...

(v)

Encourage employees to develop customers outside the organization
...

(vii) Identify skilled individuals in other organizations who can contribute on a
temporary project basis or part-time
...

(ix) Balance external recruitment at all levels against internal promotion to
encourage open competition, ―competitive tendering‖ for jobs to discourage
seeing positions as someone‘s territory which causes self-protective conformity
...


(xi) Eliminate the culture of valuing positions as career goals in favour of portraying
a career as a succession of bigger projects, achievements and new skills learned
...
Positions
are out
...

(xii) Abandon top-down performance appraisal in favour of self-appraisal based on
internal customer satisfaction surveys and assessing people as you would
suppliers
...

Functions of a Human Resource Manager
A human resource manager, charged with fulfilling the objectives of an
organization, should be a leader with high intellectual powers, a visionary and a
philosopher who provides the initiative to shape the future in terms of leading the
human beings in an organization towards more prosperous and progressive policies
...
Human Resource Man as an Intellectual : The basic skill in the human
resource field as compared to technologists or financial experts is the skill to
communicate, articulate, understand and above all, to be an expert when it comes to
putting policies and agreements in black and white
...
A personnel man has to deal with employees and he
must possess the skills of conducting fruitful and systematic discussions and of
communicating effectively
...
This means that he would require the
mental ability to deal with his people in an intelligent manner as well as to understand
what they are trying to say
...
Human Resource Man as an Educator : It is not enough that a human
resource man has command-over the language, which, however, remains his primary
tool
...

Basically, human beings like to grow and realise their full potential
...
A
personnel man who simply pushes files and attends labour courts for conciliation
purposes and other rituals of legal procedure for the settlement of industrial disputes
is not a personnel administrator of the future
...
Human Resource Man as a Discriminator : A human resource
administrator must have the capacity to discriminate

between right and wrong, between that which is just and unjust and merit and nonmerit
...

4
...
He has to streamline the office, tone up the administration and set
standards of performance
...
He must ask
relevant questions and not be merely involved in the office routine whereby the status
quo is maintained
...

5
...
He, by setting his own example and by
working towards the objectives of sound personnel management practices, must
inspire his people and motivate them towards better performance
...

6
...
He has to deal with people who toil at various
levels and partake of their joys and sorrows
...

7
...
He should be a thinker who sets the pace for policy-making in an
organization in the area of human relations and should gradually work out new
patterns of human relations management consistent with the needs of the organization
and the society
...
He should be in close touch

with socio-economic changes in the country
...

Role and Challenges of Human Resource Manager
Human Resource (HR) Department is established in every organization under the charge of
an executive known as Human Resource Manager
...
The human resource department gives assistance
and provides service to all other departments on personnel matters
...
The human resource manager performs
managerial functions like planning, organizing, directing and controlling to manage his
department
...
, which the other line managers may entrust to him
...
The status of Human Resource
Manager in an organization depends upon the type of organization structure
...
The human resource manager
performs managerial as well as operative functions
...
He has also to perform certain operative functions of recruitment, selection, training,
placement, etc
...

The role of human resource management in industry is underlined by the complex and
dynamic nature of environment under which the modern large-scale industries function
...
The task
has also been facilitated by the greater recognition of the value of human resources in industry
and application of human resource development (HRD) techniques by the enlightened managers
in modern organizations
...
7 What do you mean by HRP?

Ans
...
It, thus, focuses on
the basic economic concept of demand and supply in context to the human resource capacity of
the organization
...
8 What is the process of HRP?
Ans
...
Further, it is only after proper analysis of
the HR requirements can the process of recruitment and selection be initiated by the
management
...
In fact, with the element of strategies and long term objectives of the organization
being widely associated with human resource planning these days, HR Planning has now became
Strategic HR Planning
...
HR Planning, thus, help the organization in many ways as follows:








HR managers are in a stage of anticipating the workforce requirements rather than getting
surprised by the change of events
Prevent the business from falling into the trap of shifting workforce market, a common
concern among all industries and sectors
Work proactively as the expansion in the workforce market is not always in conjunction
with the workforce requirement of the organization in terms of professional experience,
talent needs, skills, etc
...


It is, therefore, suitable on the part of the organization to opt for HR Planning to prevent any
unnecessary hurdles in its workforce needs
...

An HR Planning process simply involves the following four broad steps:




Current HR Supply: Assessment of the current human resource availability in the
organization is the foremost step in HR Planning
...
At this stage, the consultants may conduct extensive
interviews with the managers to understand the critical HR issues they face and
workforce capabilities they consider basic or crucial for various business processes
...
All the known HR variables like attrition, lay-offs,





foreseeable vacancies, retirements, promotions, pre-set transfers, etc
...
Further, certain unknown workforce
variables like competitive factors, resignations, abrupt transfers or dismissals are also
included in the scope of analysis
...
Here, it is also essential to understand the business
strategy and objectives in the long run so that the workforce demand forecast is such that
it is aligned to the organizational goals
...
This may include conducting communication programs
with employees, relocation, talent acquisition, recruitment and outsourcing, talent
management, training and coaching, and revision of policies
...
Here, it is important to note that all the regulatory and legal
compliances are being followed by the consultants to prevent any untoward situation
coming from the employees
...

Q
...
Effect recruitment is the next big process after human resource planning is to develop
applicant polling called recruiting
...
If only two candidates apply for two openings , you can use techniques like
interviews and tests to screen out all but the best
...
In the company knows it needs 50 new entry-level accountants next year then
they use this recruitment yield pyramid
...
Therefore for getting the 50 recruits the firm must generate 1,200
leads to be able to invite 200 viable candidates to its offices for interviews
...
Of those 100
offers , about 50 will accept
...
Recruitment
practices vary from organization to organization , some follow centralized way such as
commercial banks and others such as railways follow decentralized process for various grade of
jobs
...
10 What is the process of recruitment?
Ans
...
11Discuss the different types of selection tests
...


Types of selection test
Different selection test are adopted by different organization depending upon their requirements
...

I
...
It enables to find out
whether the candidate is suitable for the job
...

The different types of aptitude test areas are:
a
...
It judges the decision making abilities
...
Mechanical aptitude test :This test deals with the ability of the candidate to do mechanical work
...
It is used for technical and
maintenance staff
...
Psycho motor test:This test judges the motor skills the hand and eye co- ordination and evaluates the ability to do
jobs lie packing, quality testing, quality inspection etc
...
Intelligence test:This test measures the numerical skills and reasoning abilities of the candidates
...
The test consists of logical reasoning ability, data
interpretation, comprehension skills and basic language skills
...
Personality test :In this test the emotional ability or the emotional quotient is tested
...
This test is becoming very popular now days
...
Performance test :This test judges and evaluates the acquired knowledge and experience of the knowledge and
experience of the individual and his speed and accuracy in performing a job
...


Q
...
This allows HR activities and processes to occur electronically
...
A HRIS allows a company to plan its HR costs more
effectively, as well as to manage them and control them without needing to allocate too many
resources toward them
...
The decisions made should also increase in quality—and as a result, the
productivity of both employees and managers should increase and become more effective
...
13 What is the importance of HRIS Systems?
There are a number of solutions offered to a company that adopts a HRIS
...
The majority of quality HRIS
systems include flexible designs that feature databases that are integrated with a wide range of
features available
...

Through the efficiency advantages conferred by HRIS systems, a HR administrator can obtain
many hours of his or her day back instead of spending these hours dealing with non-strategic,
mundane tasks required to run the administrative-side of HR
...
This location is designed to be centralized and accessed easily from
anywhere within the company, which also serves to reduce redundancy within the organization
...
As a
result, less paperwork occurs and approvals, when deigned, may be appropriated more efficiently
and in less time
...
Beyond
these software solutions, companies also invest in HRIS modules that help them put the full
productivity of their workforce to use, including the varied experiences, talents, and skills of all
staff within the enterprise
...

In conclusion, it is important to choose the right HRIS
...
It will be necessary to customize any HRIS to the unique needs of a
company so the system will remain flexible and relevant throughout the life of the company or
enterprise
...
14 What is strategic HRM?
Ans Strategic human resource management is a complex process which is constantly evolving
and being studied and discussed by academics and commentators
...
Definitions range from 'a human resource system that is tailored to the demands of the
business strategy' (Miles and Snow 1984) to 'the pattern of planned human resource activities
intended to enable an organization to achieve its goals' (Wright and McMahan 1992)
...

SHRM integrates human resource considerations with other physical, financial, and
technological resources in the setting of goals and solving complex organizational problems
(Legnick-Hall & Legnick-Hall, 1988) SHRM also emphasizes the implementation of a set of
policies and practices that will build employee pool of skills, knowledge, and abilities (Jackon
and Schulerm 1995) that are relevant to organizational goals
...

Strategic Human Resource Management (SHRM) is an area that continues to evoke a lot of
debate as to what it actually embraces
...
Although the difference between these two seems subtle, the
implications of the difference are considerable
...
1999)
...
It is concerned with longer-term people issues and macro-concerns about structure, quality,
culture, values, commitment and matching resources to future need
...
(SCHULER, R
...
, 1992)
The pattern of planned human resource deployments and activities intended to enable the forms
to achieve its goals
...
M
...
C
...
15 What are the approaches of the SHRM?
o
o

attempts to link Human Resource activities with competency based performance
measures
attempts to link Human Resource activities with business surpluses or profit

These to approaches indicate two factors in an organizational setting
...
An approach of
people concern is based on the belief that human resources are uniquely important in sustained
business success
...
Integration of the
business surplus to the human competency and performance required adequate strategies
...
The way in which people are managed, motivated and
deployed, and the availability of skills and knowledge will all shape the business strategy
...

Q 16 Discuss the Benefits and barriers to SHRM
1
...

2
...

3
...

4
...

5
...

6
...

7
...

8
...

9
...

10
...
The main reason is a lack of growth
strategy or failure to implement one
...
Inducing the vision and mission of the change effort
...
High resistance due to lack of cooperation from the bottom line
...
Interdepartmental conflict
...
The commitment of the entire senior management team
...
Plans that integrate internal resource with external requirements
...
Limited time, money and the resources
...
The statusquo approach of employees
...
Fear of incomopetency of senior level managers to take up strategic steps
...
Diverse work-force with competitive skill sets
...
Fear towards victimisation in the wake of failtures
...
Improper strategic assignments and leadership conflict over authority
...
Ramifications for power relations
...
Vulnerability to legislative changes
...
Resistance that comes through the legitimate labour institutions
...
Presence of an active labour union
...
Rapid structural changes
...
Economic and market pressures influenced the adoption of strategic HRM
...
More diverse, outward looking approach
...
17 What is the concept of performance appraisal?
Performance appraisal
Ans
...

Performance appraisal may be conducted once in every 6 months or once in a year
...

Identify areas where improvement is required so that training can be provided
...

Q
...

Companies use different methods of appraisal for identifying and appraising the skills and
qualities of their employees
...

Methods of performance appraisal
Traditional method Modern method
1
...
Confidential report
3
...
Ranking method
5
...
Narrated essay
7
...
A
common feature of these methods is they are all relatively simple and involve appraisal by one
senior
...
Check list method :In this method the senior, the boss is given a list of questions about the junior
...
The superior has to put a tick mark in any one of the boxes
This method can be explained with the following eg
...
A questioner containing questions is given to the senior
...
The same set of questioners can
be given foe every employee so that there is uniformity in selecting employee
...
Confidential report :This method is very popular in government departments to appraise IAS officers and other high
level officials
...
The +ve and – ve traits, responsibilities
handled on the job and recommendations for future incentives or promotions
...

3
...
Both +ve and –ve incidents
are mentioned
...

4
...
There are different
methods of ranking employees
...
Simple ranking method :Simple ranking method refers to ranks in serial order from the best employee eg
...

ii
...
The best employee
is given rank 1 and then we move to the worst employee and give him rank 10 again to 2nd best
employee and give him rank 2 and so on
...
Paired comparison :In this method each and every person is the group, department or team is compared with every
other person in the team/group/department
...
This method is superior because it compares each and every person on
certain qualities and provides a ranking on that basis
...
Graphic rating scale :Graphic rating scale refers to using specific factors to appraise people
...
The chart contains certain columns which indicate qualities

which are being appraised and other columns which specify the rank to be given
...
Employee A
Quality of work Quantity of work Intelligence
Excellent
Very good
good
satisfactory
poor
The senior has to put a tick mark for a particular quality along with the ranking
...
According to the department in which they work
...

6
...
He may describe the employees strength and weakness, analytical abilities
etc
...

Q
...
Modern methods of appraisal are being increasingly used by companies
...
These methods are
as follows
1
...

These role set members identify key result areas (KRA 2 marks) (areas where you want
improvement are called KRA) which have to be achieved by the employee
...
The appraisal depends upon what role set members have to say about the
employee
...
Assessment centers :Assessment centers (AC) are places where the employee’s are assessed on certain qualities
talents and skills which they possess
...

The people who attend assessment centers are given management games, psychological test,
puzzles, questioners about different management related situations etc
...

3
...
It was intended to be a method of group
decision making
...
In this method all members of the

of the department starting from the lowest level employee to the highest level employee together
discus, fix target goals to be achieved, plan for achieving these goals and work together to
achieve them
...
based on this appraisal is
done
...
Behavioral anchored rating scale :In this method the appraisal is done to test the attitude of the employee towards his job
...

5
...
A feedback is given to the employee and areas of improvement are identified
...
Human resource audit/accounting :In this method the expenditure on the employee is compared with the income received due to the
efforts of the employee
...
The appraisal informs the employee about his contribution to the company and
what is expected in future
...
360* appraisal :In this method of appraisal and all round approach is adopted
...
Based on all these observations an
appraisal is made and feedback is given
...

Process of performance appraisal
Performance appraisal is defined by Wayne Cascio as “the systematic description of employee’s
job relevant, strength, weakness
...
A general
procedure is explained below with the help of a diagram
...
20 Discuss the process of performance appraisal?
Ans The process consists various steps:
Setting performance standards
Communicating standards set to the employee
Measuring performance
Comparing performance with standard
Discussing result
Collective action
Implementation and review
1
...
e
...
Sometimes certain marking scheme may be adopted eg
...
And so on
...
Communication standard set to the employee :Standards of performance appraisal decided in 1st step are now conveyed to the
employee so that the employee will know what is expected from him and will be able to
improve his performance
...
Measuring performance :The performance of the employee is now measure by the HR department, different
methods can be used to measure performance i
...
traditional and modern method
...

4
...
To understand the
score achieved by him
...
e
...

5
...
A feedback is given to the employee asking him
to change certain aspects of his performance and improve them
...
Collective action :The employee is given a chance or opportunity to improve himself in the areas specified
by the HR department
...

7
...
A review must
be done from time to time to check whether any change in policy is required
...

Q
...

The following are the limitations of performance appraisal
1
...
The negative
traits are not considered
...
And
in some cases employees who do not deserve promotions may get it
...
Horn effect :In this case only the negative qualities of the employee are considered and based on this
appraisal is done
...

3
...
This prevents a really
talented employee from getting promotions he deserves and some employees who do not deserve
any thing may get promotion
...
Leniency and strictness :Some bosses are lenient in grading their employees while some are very strict
...

5
...
Therefore although the employee may have improved performance, he may still
not get the benefit
...
Fear of loosing subordinates and spoiling relations :Many bosses do not wish to spoil their relations with their subordinates
...
This is a n
injustice to really deserving employees
...
Goodwill and techniques to be used :Sometimes a very strict appraisal may affect the goodwill between senior and junior
...

8
...
Due to this the work load of HR department increases
...

Q
...
Performance appraisal is defined by Wayne Cascio as “the systematic description of
employee’s job relevant, strength, weakness
...
Feedback to the employee :Performance appraisal is beneficial because it provides feedback to the employee about his
performance
...

2
...


3
...
Based on this report future
promotions are decided, incentives, salary increase is decided
...
Validation of selection process :Through performance appraisal the HR department can identify whether any changes are
required in the selection process of the company normally a sound selection process results in
better performance and positive appraisal
...
Deciding transfers and lay off of the worker :Employee with specific talent can be transferred to places where their talents are utilized
properly; similarly decisions regarding termination of employees depend upon performance
appraisal reports
...
Human resource planning and career development:Companies can plan for future vacancies at higher levels based on performance appraisal reports
...


References:
1
...

3
...


ASWATHAPA, K
...
Human Resource Management
...

DESSLER, Gary
...
Human Resource Management
...

FRENCH, WENDELL
...
2006
...
Houghton Mifflin,2006
SUBBA RAO, P
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Personnel and Human Resource Management
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