Q.1. Define Strategy.

Describe the different strategy levels in an organization

Ans. Johnson and Scholes define strategy as The direction and scope of an organisation over
the long-term; which achieves advantages for the organisation through its configuration of
resources within a changing environment, to meet the needs of markets and to fulfil
stakeholders expectations.1 The main levels of strategy of an organisation are:
goals.
-unit level strategy: It specifies the methods the organization uses to compete in
particular markets.
departments and divisions
like finance, marketing, etc.
resources.
Different Strategy Levels in an Organisation
Organisations have different levels of strategic decision making. Although these levels are
inter-related, each one of them has its own scope and reach. The different levels of strategy in
an organisation are at the corporate level, business-unit level, functional level and people
level. Let us now examine each level of strategy that exists in an organisation in detail.
1 Corporate level strategy
Corporate level strategy is usually devised at the board level. It defines the following for an
organisation:






to be made


2 Business-unit level strategy
Business-unit level strategy is mainly concerned with how the organization gains advantage
over its competitors. It deals with the following:
tion uses to compete in particular markets


For example, the business-unit strategy of a
furniture manufacturer is decided by the following factors:
furniture, office
furniture, etc.)

ants to market (solid wood,
plywood)
Student Name- Nidhi Rai

Course-MBA III Semester (HR)
Reg. N0-1302002558 LC Code-03377
Subject Code-MU0012 Subject Name-Employee Relations Management
corporate,
educational institutions).
According to Porter (1985), the three basic factors that influence the decision-making process
are:
eadership: It aims to offer lower costs than the competitors without lowering
quality.
-wide recognition that the different
products and services of the company are superior in quality when compared to that of the
competitors.
Having understood the
business-unit level strategy, let us now discuss the functional level strategy of an
organisation.

3 Functional level strategy
Functional level strategy is concerned with how different units of the business (marketing,
finance, manufacturing, personnel) transform corporate and business level strategies into
operational goals. According to Johnson and Scholes, functional strategy describes how the
component parts of an organisation in terms of resources, processes, people and their skills
are pulled together to form a strategic architecture, which will effectively define the avenue.
2
Functional units help in framing the business and corporate strategies by providing input on
resources and capabilities. Once the higher level strategies are framed, action plans are
framed for each department, in order to accomplish the higher level strategies. For example,
when the corporate strategy of a business is to become the lead player in a specific market,
the functional strategies of each division would be as follows:

workforce.


4 People strategy
People strategy aims to match the activities of an organisation with its human resources. An
effective strategy for people management is vital to the success of an organisation. Research
carried out by the Institute of Work Psychology and the Centre for Economic Performance
shows a clear link between the adoption of good human resource business practices and
improved performance. The research proves that focussing on key people management issues
will improve productivity and profitability. People strategy aims to:
environment, rewards
and career prospects.
them to move beyond contractual
obligations to emotional commitment. This develops a strong sense of loyalty to the
organisation and its customers.
aspects of the
organisation.

Q.2. Define Organizational Culture. Discuss the dimensions of organizational culture.
Explain Charles Handys classification of organizational culture
Ans. Organisational Culture
Organisational culture describes the psychology, attitude, experiences, beliefs and values of
an organisation. According to Hill and Gareth (2001), organisational culture is defined as the
specific collection of values and norms that are shared by people and groups in an
organisation and that control the way they interact with each other and with stakeholders
outside the organisation.4 An organisation is said to have a strong culture if its employees
are aligned with the organisational values. Organisations that have a strong culture function
efficiently. On the other hand, in organisations that have a weak culture, the employees are
not aligned with the organisational values and control has to be exercised through extensive
procedures and rules.
In organisations with a strong culture, Groupthink can develop. Groupthink is a state
wherein people do not challenge organisational thinking even if they have different ideas.
Innovative thinking gets discouraged in such situations. Innovative organisations need people
who are willing to change the status quo, and to implement new ideas and procedures.
Dimensions of organisational culture
National, religious and cultural groupings affect the organisational cultures. The different
dimensions of organisational culture are as follows:
here are differences in levels of power. A
high degree indicates that some individuals have more power than others. A low score shows
that people have more or less equal rights.
risks.
which people
stand up for themselves. Collectivism refers to the interdependence of individuals in a group.
female values. For
example, male values include competitiveness, assertiveness and ambition.
- versus short-term orientation: Perseverance is emphasised in long-term orientation
while immediate profits are emphasised in shortterm orientation.
Charles Handys classification: Charles Handy (1972) classified organisational culture as
follows:
little bureaucracy
are present, but decisions are quickly taken.
y defined hierarchical structure is present. The position decides the
power wielded.
person decides the
power of the individual. Such organisations have a matrix structure.
culture: Every individual believes that they are superior to the organisation. Such
organisations cannot succeed.

Q.3. Define Disciplinary procedure. Explain the various factors to be considered while
analyzing a disciplinary problem
Ans. Disciplinary Procedure
Disciplinary procedure is a step-by-step process which an organization follows while dealing
with indiscipline of any kind. It is a good practice for organisations to establish a proper
disciplinary procedure in order to ensure just decisions. A disciplinary procedure includes a
formal system of documented warnings and hearings, with rights of representation and appeal
at each stage. Disciplinary procedures have to be fair and transparent in order to avoid legal
complications. Caution has to be taken as disciplinary procedures have to be directed against
the employees behaviour rather than the employee themselves.
Factors to consider when disciplining
All disciplinary actions have to be fair and impartial. The nature and the impact of the
misconduct have to be analysed before any disciplinary action is taken. The following factors
have to be considered while analysing a disciplinary problem:
Seriousness of the problem: Consider the severity of the problem. Insubordination is
more severe than reporting late to work.
Duration of the problem: Analyse if there have been any past violations and the period
over which it is happening. First-time violations are dealt with in a different manner
compared to violations which have been repeated for the third time.
Frequency of the problem: Examine if the current problem is a part of a pattern of
disciplinary infractions. Continual violations require more severe punishments.
Extenuating circumstances: Examine if there are any external factors which are leading
to the indiscipline. Reporting late to work due to the illness of a family member has to be
dealt with more leniently than reporting late to work because of oversleeping.
Degree of familiarisation: Find if the employee causing the problem has been
familiarised with the rules and procedures of the organisation. Consider if the violator knows
the organisational standards of acceptable behaviour. Organisations that have formalised
written disciplinary rules are more justified in enforcing discipline than organisations that
only have informal and unwritten rules.
History of the organisations disciplining practices: Find how similar misconducts
have been dealt with in the past. Find out if the organisation has consistent disciplining
practices. Impartial treatment of violations requires certain benchmarks.
Management backing: Ensure that the higher authorities back the disciplinary process.
Disciplinary actions are not effective if they are over-ridden by the upper levels of the
management.

Q.4. What do you mean by Human Resource I nformation System (HRI S)? Describe the
various modules of HRIS. Discuss some of the HRI S software.
Ans. Human Resource Information Systems (HRIS) is a software application that caters to
the human resource information needs of an organisation like monitoring employee
attendance, payroll and benefits administration, career development, employee information,
performance management, and training. HRIS is a collection of components which work
together to gather, process and store information that the HR department can use to make
decisions, to coordinate and to plan its activities. HRIS facilitates easy access and
management of employee-related information. For example, Terasen Pipelines, a Canadian
company was using a manual system to maintain its records. But when its workforce
increased, it began to use HRIS to maintain accurate employee records. Initially, mainframe
computers were used by organisations to manage human resource management functions. A
large amount of capital was needed to operate these systems. The advent of client-server
architectures and Software as a Service (SaaS) models has lowered the maintenance costs of
HRIS. HRIS comprises the following modules:
Payroll: This module of HRIS keeps track of the pay grades and positions of the
employees. Pay raise details are also recorded. This module gathers information on employee
time and attendance. It calculates the deductions and taxes and generates pay slips and tax
reports. Cheques get automatically deposited in the employee bank accounts. Inputs for this
module are obtained from HR and time-keeping modules. This module integrates with the
current financial systems of the organisation.
Benefits administration: This module tracks and administers employee benefit
programmes. The benefit programmes include insurance, reimbursements, profit sharing and
pension programmes.
HR management: This module covers many HR aspects, ranging from employee
recruitment to retirement. It records employee details like addresses, training programmes
undergone, skills, position and so on. The functions addressed by this module are
recruitment, placement, evaluation and career development of the employees. Job sites on the
Internet are increasingly being used for recruitment. This module tracks job applications.
Interviews and selection details are also maintained.
Training: This module administers and tracks employee training and development
programmes. Records of employee education, qualification, and skills are maintained. It also
outlines the training courses and training materials (CDs, books, web-based learning
programmes, etc), which help employees develop their skills. Courses can be planned and
scheduled using the data stored. Managers can approve training and budgets.
Performance appraisal: This module evaluates the job performance of employees in
terms of quality, time and cost. This helps in analysis of employee strengths and weaknesses
and suitability for promotions. It gives feedback to employees on performances and identifies
employee training needs. It also documents criteria which can be used for organisational
rewards.
Examples of Human Resource Information Systems
There are many HRIS software available in the market today. Some of them are listed below:
Sage Abra HRIS: It has modules for benefits enrollment, benefits messenger,
recruitment, employee self-service, payroll, HR features and training features. It simplifies
routine employee management tasks, ensures compliance with government regulations, keeps
track of employee attendance, makes recruitment more effective, automates employee
training and updates employees on benefit programmes.
Oracle HRMS: This has different modules for HR, payroll, training administration and
time management. Oracle HRMS supports application processing, employee profiling, career
development, and management of compensation and benefit plans.
SAP HR: This has modules for personnel administration, recruitment, training, time
management, payroll, compensation management, budget management, travel management
and personnel development.

Q.5. As an HR of a Company, you are asked to focus on the causes of Grievance and the
Grievance handling procedure. What according to you are the reasons of Grievance?
Explain the pre-requisites you will consider while addressing Grievance handling
procedure
Ans. Reasons for grievances
There are a number of causes of employee grievances. Some of the reasons are as follows:
Economic: Issues related to wages like wage calculation, overtime, and bonus. Employees
often feel that they earn less than what they deserve.
Working environment: Issues related to the employees work environment like poor
working conditions, defective equipment and machinery, tools, materials.
Supervision: Issues like behaviour of the boss towards the employee, perceived ideas of
partiality, discrimination, preferential treatment, prejudice.
Work group: Issues with co-workers like stressed peer relations or inaptness with peers.
Work organisation: Issues related to the organisation like rigid and unfair rules and lack of
recognition. It is not always the case that the organisation is at fault. There are times when the
grievances are due to the employees. Some of the instances where grievances of management
are against its employees are the following:





-slow tactics
ted by the trade unions in dealing with management

supervisors or
management
Essential Pre-requisites of Grievance Redressal Procedure-
Conformity with statutory provisions: Due thought must be given to the laws of the
land while formulating the grievance handling procedure.
Clarity: Every aspect of the grievance handling procedure has to be clear and definite.
All employees have to know whom to approach first when they have a grievance, whether the
grievance is to be written or oral, and the maximum time in which the redressal is guaranteed.
The redressing spokesperson also has to know the limits within which the employee can take
the required action.
Simplicity: The grievance handling procedure has to be simple and short. If the
procedure is complex it may discourage employees and they may fail to make use of it in a
proper manner.
Promptness: The grievance of the employee has to be quickly handled and essential
action must be taken at once. This is good for both the employee and the management
because if action is delayed or deferred, it may affect the confidence of other employees as
well.
Training: The manager and the union representatives need appropriate training in all
matters of grievance handling so that no complications arise during the grievance handling
process.
Follow-up: The personnel department needs to keep track of the efficiency and the
performance of the grievance handling process and make necessary changes to improve it
with time.

Q.6. Write a brief note on the following:
a) Trait theory
b)ERG theory

Ans. (A). The Trait Theory: This theory uses traits (characteristics) to distinguish between
leaders and non-leaders. The traits that indicate strong leadership are as follows:
Intelligence: This refers to the mental ability of a person and is only a moderate predictor
of leadership. The Intelligence Quotient (IQ) of a person can be used as a qualifier for high
management jobs, but once the high position is attained, an effective leader also displays
good levels of Emotional Intelligence (EI). EI helps a leader to empathise with the emotions
of others. Many people feel that Carly Fiorina, the ousted leader of Hewlett-Packard, had a
high IQ, but a low empathy for the people around her and ignored the human aspects of her
decisions.
Extraversion: Extraverts have higher social and interpersonal skills. They are more
energetic, assertive and self-confident. As extraverts are more dominant, they emerge as
natural leaders. For example, Steve Ballmer, the CEO of Microsoft, is an extraverted
leader.
Conscientiousness: Conscientious people are organised, dependable, systematic,
punctual and achievement oriented. They take initiative and are persistent in all they do.
Openness: People who are open to new ideas and try new things become effective
leaders.
Self-esteem: People with good self-esteem assess their worth and capabilities in a more
positive manner. Leaders with high self-esteem are more supportive to their subordinates.
People with higher selfesteem are more confident and have greater charisma.
Integrity: Effective leaders display honesty and integrity. Such leaders are more
trustworthy.

(B). ERG Theory
To bring Maslows need hierarchy theory of motivation in synchronization with empirical
research, Clayton Alderfer redefined it in his own terms. His theory is called the ERG theory
of motivation. He re-categorised Maslows hierarchy of needs into three simpler and broader
classes of needs:
Existence needs: These include need for basic material necessities. In short, it includes
an individuals physiological and physical safety needs.
Relatedness needs: These include the aspirations individuals have for maintaining
significant interpersonal relationships (be it with family, peers or superiors), getting public
fame and recognition. Maslows social needs and external component of esteem needs fall
under this class of need.
Growth needs: These include need for self-development and personal growth and
advancement. Maslows self-actualisation needs and intrinsic component of esteem needs fall
under this category of need.