Drive-Summer 2015

Program-MBA/MBADS / MBAHCSN3 / MBAN2 / PGDBAN2 / MBAFLEX

Semester-1
Subject code & name-MB0043 Human Resource Management
Q1. The success of HR plans depends on the accuracy of HR forecasts. What is the meaning of this HR
forecasting? Describe the following HR forecasting techniques: (a) Index/ Trend analysis and (b) Expert
forecasting. (Meaning of HR forecasting, Index/ Trend analysis, Expert forecasting) 2, 4, 4
Answer:
Meaning of this HR forecasting
The success of HR plans depends on the accuracy of the HR forecasts that are needed to implement the organizational
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 assess 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 of the HR forecasting techniques:
a) Index/Trend Analysis
b) Expert Forecasts/Delphi technique
c) Nominal Group Technique
d) HR Budgets: Staffing/Manning Tables
e) Envelope and Scenario Forecasting
f) Regression Analysis, etc.
g) Productivity Ration
h) Personal Ratio
i) Time Series
Index/Trend analysis
Trend analysis forecasts the requirement for additional manpower by projecting trends of the past and present to the
future. It makes use of operational indices for this.
Historical relationship between the operational index and the Demand for Labor.
Operational indices used are:
Sales
Number of units produced
Number of clients serviced
Production/Direct Labor Hours
Trend analysis can be used for forecasting overall Organization, Aub-units, or Indirect (Staff) and Direct (Line)
Manpower requirements. The Index/Trend analysis involves the following steps:
1. Select the appropriate business/operational index Select a readily available business index, sales level that is
known to have direct influence on the organizational demand for labor.
2. Track the index over time Once the index has been selected, it is necessary to go back in time for at least four or
five most recent years.
3. Track the workforce size over time Record the historical figures of the total number of employees.
4. Calculate the average (or most recent) ratio of the business index
to the workforce size (Employee Requirement Ratio) In this step, the ratio of number of employees required for
each thousand rupees of sales is obtained by dividing each years number of employees by the level of sales.

5. Calculate the forecasted HR 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 labor.
Expert forecasting or Delphi technique
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 the organization. A series of questions is prepared from the responses received
from a prior set of questions in sequencing manner. The procedure of Delphi technique involves the following steps:
1. To start with, it requires selection of a coordinator and a panel of experts from both within and outside the
organisation.
2. The coordinator then circulates questions in writing to each such expert.
3. The experts then write their observations.
4. The coordinator then edits those observations and summarizes, without however disclosing the majority opinion in
his summary.
5. On the basis of his summary, the coordinator develops a new set of questionnaire and circulates those among the
experts.
6. Experts then answer such set of questions.
7. The coordinator repeats the process till such time he is able to synthesize from the opinion of the experts. Figure
depicts the procedure involved in Delphi technique.

Q2. Write a brief note on: (i) Selection test and (ii) Interviews [(i) Various selection tests conducted by
organizations, (ii) Interview process and Types of interviews] 5, 5
Answer:
Selection Test
Following are a few of the selection tests conducted by organizations:

Intelligence test Measures the general mental ability of individuals. This is the first standardized and most widely
used test developed by psychologists.
Aptitude test Measures the ability to learn a given job, when given adequate training.
Achievement test Measures the job related proficiency and knowledge of the applicants.
Situational test The candidates are exposed to simulated business situations and their responses are recorded and
evaluated.
Interest test If an individual has a genuine interest in a job, he is likely to perform well in the given task.
Personality test Helps in assessing an individuals value system, emotions, maturity and other personal
characteristics.
Polygraph test Used to check the validity and truthfulness of an applicant by monitoring the physical changes in his
body as he answers a series of questions. Normally used for screening applicants for defence and high profile security
jobs where it is essential that the candidate is completely trustworthy.
Graphology Examines an individuals handwriting to assess his or her personality.
Interviews
Most organizations use interviews as an essential step in the selection process. An interview helps in assessing 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, conductingand 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 candidate feel comfortable and relaxed.
Conduct interview
While conducting the interview the interviewer should:
Demonstrate a basic liking and respect for people.
Preferably ask open ended questions.
Not invade the privacy of the candidate.
Be an attentive listener.
Note or mark the relevant points.
Closing an interview:
Closing an interview is an important part of the interview. It should be carried out in a smooth manner. Interviewer
should make an overt sign to indicate the end of the interview.
There are several types of interviews which are as follows:
Preliminary interview
Preliminary interviews are brief, first round interviews that aim to eliminate the applicants who are obviously
unqualified for the job.
Selection interview
A selection or core interview is normally the interaction between the job applicant and the line manager and/or
experts, where the applicant's knowledge, skills, talent, etc. are evaluated and ascertained. The selection interview can
be of the following types:

Stress interview
The objective of a stress interview is to test the applicants ability to perform and deliver under stress. Interviewers put
the interviewee under stress by repeatedly interrupting him, criticizing his answers, asking him unrelated questions or
keeping quiet for long periods after the interviewee has finished speaking.
Group interview
In a group interview all candidates or a group of candidates are interviewed by a panel of interviewers or a single
interviewer.
This method is resorted to when the number of applicants is high and time available for interviewing is short.
Decision making interview
After the applicants knowledge in the core areas of the job is evaluated by experts including line managers in the
organisation, the applicants are finally interviewed by the departmental heads and the HR function.These interviews
are generally informal discussions.
Q3. What do you mean by management development? What are its objectives and methods? [Meaning of
management development, Objectives, Explanation of Methods of management development (i) On-the-job
and (ii) Off-the-job development methods ] 2, 2, 6
Answer:
Management Development
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 career 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 management development
The main objectives of management development programs are:

Improving the performance of the managers.

Enabling the senior managers to have an overall perspective about the organisation and also equipping them
with the necessary skills to handle various situations.

Management Development Methods

Following are a few management development methods:
On-the-job development methods
Off the job development methods
1. On-the-job development methods
The different on-the-job development methods are:
a) Coaching: Coaching involves one manager playing an active role in guiding another manager.
The coach/trainer teaches the trainee what to do, how to do it, and rectifies any mistakes committed by the trainee.
b) Job rotation: Job rotations play an important role in developing the skill set of a manager.
c) 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.

d) 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.
2. Off the job development methods
The different types of off the job development methods are:
(i) Simulation exercises: The popularly used simulation exercises are:
a) Case study
b) Business games
c) Role play
d) Incidental method
e) In basket method
(ii) Sensitivity training: Sensitivity training or Laboratory training is a method which helps to change the behavior
through unstructured group interaction.
Training groups (T-groups) that seek to change behavior through unstructured group interaction.
Provides increased awareness of others and self.
Increases empathy with others, listening skills, openness, and tolerance for others.
(iii) Transactional analysis: This is a theory of personality development which provides an approach for defining and
analyzing the interaction between people. The basic theory behind transactional analysis is that an individuals
personality comprises three ego states, namely, the parent, the child and the adult ego states.
(iv) Conferences: A meeting of people to discuss a topic of common interest is referred to as a conference.
(v) Lectures: A lecture is the simplest technique of presenting and explaining a series of facts, principles and
concepts.
Q4. Suppose you have joined as HR executive in a software company. The first task you have been assigned is
to work on Career planning. What are the various career programs will you consider? (Listing of various
career programs, Explanation of each of the career programs) 1, 9
Answer:
Career Programs

Work-family program
Relocation assistance and hiring practices
Work life balance seminars and flexible HR practices
Flexible work schedules
Outplacement programmer
Special programmer for women, minorities and employees withdisabilities
Fast track employees

Work-family program 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 options, opening of more on-site or
company-sponsored child-care centers, and greater use of paid leave for fathers and adoptive parents are some
common practicesmin this area. There are also more focused programs that focus on managing gender diversity at the
workplace and set goals for advancing women into senior management positions.
Relocation assistance and hiring practices These practices redress the challenges associated with employee
relocation on account of a career move. The support provided by firms in assisting spouse of employees with
opportunities within the company, linking them with job placement consultants as well as sponsoring the cost of retraining or picking up a new skill. The amount and nature of support could vary from company to company. Some

firms have altered their policy to allow for hiring both spouses while they may not be allowed to work in the same
department/team.
Work life balance seminars and flexible HR practices Through these practices, organizations design program to
help employees manage their work-family conflicts and coping strategies. Especially prevalent in the business process
outsourcing organizations where the work-life balance is a concern. This practice is now part of most organizations
where the increasing work pressure is driving companies to help employees cope with personal pressure. Various
stress management workshops and stretch exercise schedules are practiced to help employees cope with stress.
Flexible work schedules Are being increasingly instituted at the workplace. These include flextime, job sharing,
part time work, working from home, compressed workweeks, temporary workweeks, etc. Such program enable
employees to address their work and family concerns and reduce their potential stress or conflicts between their
various life roles. Telecommuting has become very popular.
Outplacement programmer During retrenchment and downsizing is a professionally managed process in most
organizations. The objective here is to assist the affected employees in making the transition to new employment. It
could involve re-skilling for new, more relevant skills per market demand, so finding a new job is easier.
Special programmer for women, minorities and employees withdisabilities With organizations increasingly
tapping into this critical talent pool, more employees in these special categories are entering the workforce. This calls
for special focus on the importance of assisting these employees with their career needs.
Fast track employees Are now being increasingly identified as stars with high potential for bright future in the
organization. The identification and development of these employees requires organizations to exert efforts to build
and monitor special programmers that cater to this special audience. These employees are identified in a formal
process and are placed on a fast track programmed.
Q5. Define performance review. What are the types of appraisal methods? Describe the ways to evaluate an
employee individually. (Definition of performance review, Types of appraisal methods, Explanation of
individual evaluation methods) 2, 4, 4
Answer:
Performance Reviews
Performance review is a systematic activity through which the organization 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 employees performance and maintain the records. Apart from focusing on performance, todays
organizations are emphasizing the need for employee development focus in implementing an effective PMS.
Types of Appraisal Methods
Following are the types of appraisal methods:

Trait-based appraisal This method is used to assess personality or personal characteristics such as loyalty,
communication skills, level of initiative, decision making, etc. This assesses what the person is than what the
person does on the job. This is common in companies that are in the business of service and customer
satisfaction. Since it is difficult to define the criteria for a trait accurately, rater/manager bias is high and
providing feedback is a challenge as the focus is on personal attributes.

Behavior-based appraisal This method focuses on the appraisal of what an employee does on the job. It
evaluates the behavior and measures what an employee should do differently. This is common in
organizations that have high customer interface such as hospitality/NGO. As the focus is on the assessment of
behavior, rater/manager bias remains a challenge here as well.
Results-based appraisal This method measures the work results objectively. The focus is on the
outcome/deliverables from the job that alone serves as the measure for success. It is not possible to use this
method in jobs that depend on team work or where the job is service/support based. Most organizations use a

combination of trait, behavior and results in their appraisal systems as all three are important. It provides a
holistic and fair assessment of the individual.
Individual evaluation methods
There exists five ways to evaluate an employee individually. 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 a graphic rating scale (e.g., 3, 4 or 5
or even 10 point rating scale). In this technique, the evaluator is presented with a list of assessment characteristics 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.
b) Forced choice: In forced choice method, the evaluator must choose from a set of descriptive statements about the
employee. The two-, three- or four-statement items are grouped in a way that the evaluator cannot easily judge which
statements apply to the most effective employee.
c) Essay evaluation: In the essay technique of evaluation, the evaluator is asked to describe the strong and weak
aspects of the employee's behavior in the form of an essay. In very few organizations, the essay technique is the only
one used, in others the essay is combined with another form, such as a graphic rating scale. The essay summarizes and
elaborates on some or all of the ratings or discusses added dimensions which are not captured by the scale.
Q6. Many organizations maintain a disciplinary policy or system to regulate the behavior of the employees and
deal with acts of indiscipline. Describe such various disciplinary action penalties in business organizations.
(Listing the commonly practiced disciplinary actions, Explanation of each of these actions) 1, 9
Answer:
Disciplinary Action Penalties
There are varying penalties for first, second, and third offences of the same rule.
Following are the commonly practiced actions in business organizations:
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
Oral reprimand: The penalties are listed in the general order of severity, from mild to severe. For most cases, an oral
reprimand is sufficient to achieve the desired result. The supervisor must know his or her personnel in determining
how to give a reprimand. For one person, a severe "session" may be necessary in order to get attention and
cooperation; another person may require only a casual mention of a deficiency. If the offence is more serious, the
reprimand may be put in written form.
Written warning: When an oral warning or counseling to the employee does not produce the desired result, the
manager may issue a written warning to the employee. The employee is normally asked to acknowledge the receipt of
written reprimand, irrespective of whether 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.
Denial of increments, promotions and pay hikes: On some incidents the management may refuse promotions,
increments or pay hike by blacklisting the employee for a specific period of time. This is usually treated as a
punishment for a certain period of time.
Pay reductions and disciplinary demotion: This is usually more severe than the denial of pay hikes and promotions
because the employee loses part of existing benefits and privileges received by him from the organization.

In the case of demotion, an employee loses social status.

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 suspension is generally made by higher
authorities.
Discharge or dismissal:
This is the severest punishment of all. Both discharge and dismissal culminate in termination of employment. When
the conduct of an 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 agreed advance notice or by paying
money in lieu of such notice.