ASSIGNMENTS - MBA - I SEMESTER

MB0027

SET 1

Human Resource Management

1 Write a short note on Hawthorne Studies.

Ans. The Hawthorne effect describes a temporary change to behavior or performance in

response to a change in the environmental conditions, with the response being typically an
improvement. The term was coined in 1955 by Henry A. Landsberger when analyzing older
experiments from 1924-1932 at the Hawthorne Works (outside Chicago). Landsberger
defined the Hawthorne effect as a short-term improvement caused by observing worker
performance

Earlier researchers had concluded the short-term improvement was caused by teamwork
when workers saw themselves as part of a study group or team. Others have broadened the
definition to mean that people's behavior and performance change following any new or
increased attention. Hence, the term Hawthorne effect no longer has a specific definition

The Hawthorne studies have had a dramatic effect on management in

organizations and how people react to different situations. Although illumination research of
workplace lighting formed the basis of the Hawthorne effect, other changes such as
maintaining clean work stations, clearing floors of obstacles, and even relocating
workstations resulted in increased productivity for short periods of time. Thus the term is
used to identify any type of short-lived increase in productivity. In short, people will be
more productive when appreciated or when watched.[

The term Hawthorne effect has been linked with numerous other terms, including:

Epistemic feedback, systemic bias, implicit social cognition, and continuous improvement.

Some more definitions of the Hawthorne effect, showing how differently it can be defined:

 An experimental effect in the direction expected but not for the reason
expected; i.e., a significant positive effect that turns out to have no causal basis in the
theoretical motivation for the intervention, but is apparently due to the effect on the
participants of knowing themselves to be studied in connection with the outcomes
measured.
 The Hawthorne Effect is the confounding that occurs if experimenters fail to realize
how the consequences of subjects' performance affect what subjects do
 People singled out for a study of any kind may improve their performance or behavior,
not because of any specific condition being tested, but simply because of all the
attention they receive
 People will respond positively to any novel change in work environment

In the light of the various critiques, we can see the Hawthorne effect at several levels:
At the top level, it seems clear that in some cases there is a large effect that experimenters
did not anticipate, that is due to participants' reactions to the experiment itself.

At a middle level the most important (though not the only) aspect of this is how the
participants interpret the situation. Interviewing them
(after the "experiment" part) would be the way to investigate this.
This is important because factory workers, students, and most experimental
participants are doing things at the request of the experimenter.

At the lowest level is the question of what the direct causal factors might be.

These could include:

Material ones that are intended by the experimenter.
Feedback that an experiment might make available to the participants.
Changes to goals, motivation, and beliefs about action effects induced by the experimental
situation

2 .Trace the growth of Trade Union Movement from Factories Act 1881 to Factories
Act 1948.
Ans.

Trade unions are unique organisations whose role is variously interpreted and understood
by different interest groups in the society. Traditionally trade unions role has been to
protect jobs and real earnings, secure better conditions of work and life and fight against
exploitation and arbitrariness to ensure fairness and equity in employment contexts. In the
wake of a long history of union movement and accumulated benefits under collective
agreements, a plethora of legislations and industrial jurisprudence, growing literacy and
awareness among the employees and the spread of a variety of social institutions including
consumer and public interest groups the protective role must have undergone, a qualitative
change. It can be said that the protective role of trade unions remains in form, but varies in
substance.

There is a considerable debate on the purposes and role of trade unions. The predominant
view, however, is that the concerns of trade unions extend beyond 'bread and butter'
issues. Trade unions through industrial action (such as protests and strikes) and political
action (influencing Government policy) establish minimum economic and legal conditions
and restrain abuse of labour wherever the labour is organised. Trade unions are also seen
as moral institutions, which will uplift the weak and downtrodden and render them the
place, the dignity and justice they deserve.

Growth of Indian trade union movement can be divided into three phases:

The first phase falls between 1850 and 1900 during which the inception of trade unions
took place. During this period of the growth of Indian Capitalist enterprises, the working and
living conditions of the labour were poor and their working hours were long. Capitalists were
only interested in their productivity and profitability. In addition to long working hours, their
wages were low and general economic conditions were poor in industries. In order to
regulate the working hours and other service conditions of the
Indian textile labourers, the Indian Factories Act was enacted in 1881. As a result,
employment of child labour was prohibited. Mr. N M Lokhande organized people like
rickshawalas etc., prepared a study report on their working conditions and submitted it to
the Factory Labour Commission. The Indian Factory Act of 1881 was amended in 1891 due
to his efforts. Guided by educated philanthropists and social workers like Mr.Lokhande, the
growth of trade union movement was slow in this phase. Many strikes took place in the two
decades following 1880 in all industrial cities. These strikes taught
workers to understand the power of united action even though there was no union in real
terms. Small associations like Bombay Mill-Hands Association came up.

The second phase of The Indian trade union movement falls between 1900 and 1947.This
phase was characterized by the development of organized trade unions and political
movements of the working class. It also witnessed the emergence of militant trade
unionism. The First World War (1914-1918) and the Russian revolution of 1917 gave a new
turn to the Indian trade union movement and organized efforts on part of the workers to
form trade unions. In 1918, B P Wadia organized trade union movements with Textile mills
in Madras. He served strike notice to them and workers appealed to Madras High Court
because under ‘Common Law’, strike is a breach of law. In 1919, Mahatma Gandhi
suggested to let individual struggle be a Mass movement. In 1920, the First National Trade
union organization (The All India Trade Union Congress (AITUC)) was established. Many of
the leaders of this organization were leaders of the national Movement. In 1926, Trade
union law came up with the efforts of Mr. N N Joshi that became operative from 1927.

The third phase began with the emergence of independent India (in 1947), and the
Government sought the cooperation of the unions for planned economic development. The
working class movement was also politicized along the lines of political parties. For instance
Indian national trade Union Congress (INTUC) is the trade union arm of the Congress Party.
The AITUC is the trade union arm of the Communist Party of India. Besides workers, white-
collar employees, supervisors and managers are also organized
by the trade unions, as for example in the Banking, Insurance and Petroleum industries.

Chronology of imp. events:

• According to the Factory Act of 1881, the workers employed in the factories were
allowed a week-off and provisions were also made for inspection as well as limiting
the hours of work for women workers to eleven per day.
• In 1890, the first labour organization designated as Bombay Mill Hands
Association were established. Subsequently,
• in 1905, the printer's union at Calcutta and
• in 1907, the Postal Union at Bombay were established.
• In 1981,the Madras Labour Union
• In 1922, the Indentured Labour System and Central Labour Board and All Trade
Union Congress
• In 1926, the Indian Trade Union Act( a landmark in history of industrial relations)
• During Second World War, rapid growth in Trade Unionism
• Between 1939-40 and 1944-45 the no of registered trade unions increased from
666 to 865
• After second world war especially after the independence large scale of expansion
of the trade union movement
• During 1947-1960, employment rose by 2.8 times
• During 1960, 45 percent of the total industrial workforce was claimed to be
unionized
• Explicitly, during post-independence period, the activities of Personnel
Department in different public and private sectors have multiplied
• According to the provisions of section 49 of the Factories Act 1948,it become
obligatory for the-employers to employee a Welfare Officer in a factory employing
500 or more workers
 3. Elaborate the HR planning System

Ans.

Human resource or manpower planning is defined as 'the process by which a management

determines how an organization should move from its current manpower position to its
desired manpower position. Through HR planning, a management strives to have the right
number and the right kind of people at the right places, at the right time, to do things which
result in both the organization and the individual receiving the maximum long range
benefit".

Human resource Planning consists of a the following activities:.

a. Forecasting future manpower requirements.
b. Making an inventory
c. Anticipating manpower problems
d. Planning the necessary programmes of requirement.
Manpower planning consists in projecting future manpower requirements and developing
manpower plans for the implementation of the projections.

Human Resource Planning System

A Human Resource System takes into consideration the following.
1. Objectives of Human Resource Planning: Human Resource Planning
fulfils individual, organizational and national goals. Its purpose is to relate
future human resources to future enterprise needs, so as to maximise the
future return on investment in human resources. The main purpose is one of
matching or fitting employee abilities to enterprise requirements, with an
emphasis on future instead of present arrangements.

2. Estimating the Future Organizational Structure or Forecasting the

Manpower Requirements: The management must estimate the structure of the
organization at a given point in time. For this estimate, the number and type of employees
needed have to be determined. Many environmental
factors affect this determination. They include business forecasts, expansion
and growth, design and structural changes, management philosophy,
government policy, product and human skills mix, and competition.

Forecasting is necessary for various reasons, such as:

1. The eventualities and contingencies of general economic business cycles
(such as inflation, wages, prices, costs and raw material supplies) have an
influence on the short-range and long-run plans of all organizations.
2. An expansion following enlargement and growth in business involves the
use of additional machinery and personnel, and a reallocation of facilities,
all of which call for advance planning of human resources.
3. Changes in management philosophies and leadership styles.
4. The use of mechanical technology (such as the introduction of automatic
controls, or the mechanization of materials handling functions)
necessitates changes in the skills of workers, as well as a change in the
number of employees needed.
5. Very often, changes in the quantity or quality of products or services
require a change in the organization structure. Plans have to be made for
this purpose as well.
3. Auditing Human Resources: Determination of present supply of manpower resources
is done through "Skills Inventory". A skills inventory contains data about each employee's
skills, abilities, work preferences and other items of information which indicate his overall
value to the company.
4. Job Analysis: records details of training, skills, qualification, abilities,
experience and responsibilities, etc., which are needed for a job. Job analysis
includes the preparation of job descriptions and job specifications. It is useful
in job analysis
5. Developing a Human Resource Plan: This step refers to the development and
implementation of the human resource plan, which consists in finding out the sources of
labour supply with a view to making an effective use of these sources.

4.Discuss the Multiple Person Evaluation Methods.

Ans.

Multiple person Evaluation techniques are used for evaluating one employee in
comparison to another. Three such frequently used methods in organization are – ranking,
paired comparison and forced distribution.

Ranking method

This is a relatively easy method of performance evaluation. Under this method, the ranking
of an employee in a work group is done against that of another employee. The relative
position of each employee is tested in terms of his numerical rank. It may also be done by
ranking a person on his job performance against another member of the competitive group.
The quintessence of this method is that employees are ranked according to their levels of
performance. While using this method, the evaluator is asked to rate employees from
highest to lowest on some overall criterion. Though it is relatively easier to rank the best
and the worst employees, it is very difficult to rank the average employees. Generally,
evaluators pick the top and bottom employees first and then select the next highest and
next lowest and move towards the average (middle) employees. The longstanding
limitations of this method are:

 The ‘whole man’ is compared with another ‘whole man’ in this method. In practice, it
is very difficult to compare individuals possessing varied behavioral traits.
 This method speaks only of the position where an employee stands in his group. It
does not tell anything about how much better or how much worse an employee is
when compared to another employee.
 When a large number of employees are working, ranking of individuals becomes a
toxicating issue.
 There is no systematic procedure for ranking individuals in the organization. The
ranking system does not eliminate the possibility of snap judgments.

Paired comparison method

Ranking becomes more reliable and easier under the paired comparison method. Each
worker is compared with all other employees in the group; for every trait the worker is
compared with all other employees.
For several individual traits, paired comparisons are made, tabulated and then rank is
assigned to each worker. Though this method seems to be logical, it is not applicable when
a group is large. When the group becomes too large, the number of comparisons to be
made may become frighteningly excessive.

Forced distribution method

Under this system, the rater is asked to appraise the employee according to a
predetermined distribution scale. The rater’s bias is sought to be eliminated here because
workers are not placed at a higher or lower end of the scale. Normally, the two criteria used
here for rating are the job performance and promotability. Further, a five point performance
scale is used without any mention of descriptive statements. Workers are placed between
the two extremes of ‘good’ and ‘bad’ performances.

One strong positive point in favor of the forced distribution method is that by forcing the
distribution according to predetermined percentages, the problem of making use of different
raters with different scales is avoided. Further, this method is appreciated on the ground
that it tends to eliminate rater bias. The limitation of using this method in salary
administration however, is that it may result in low morale, low productivity and high
absenteeism. Employees who feel that they are productive, but find themselves placed in a
lower grade (than expected) feel frustrated and exhibit, over a period of time, reluctance to
work.

Other methods of appraising performance include: Group Appraisal, Human Resource

Accounting, Assessment Centre, Field Review, etc.

Group appraisal

In this method, an employee is appraised by a group of appraisers. This group consists of

the immediate supervisor of the employee, other supervisors who have close contact with
the employee’s work, manager or head of the department and consultants. The head of the
department or manager may be the Chairman of the group and the immediate supervisor
may act as the Coordinator for the group activities. This group uses any one of multiple
techniques discussed earlier.
This method eliminates ‘personal bias’ to a large extent, as performance is evaluated by
multiple rates. But it is a very time consuming process.

Human resource accounting

HRA is a sophisticated way to measure (in financial terms) the effectiveness of personnel
management activities and the use of people in an organization. It is the process of
accounting for people as an organizational resource. It tries to place a value on
organizational human resources as assets and not as expenses. The HRA process shows the
investment the organization makes in its people and how the value of these people changes
over time. In this method, employee performance is evaluated in terms of costs and
contributions of employees. Human resource costs include expenditure incurred by the
company in hiring, training, compensating and developing people. The contributions of
human resources is the money value of labour productivity
This technique has not developed fully and is still in the transitionary stage.

Assessment centre
This method of appraising was first applied in German Army in 1930. Later business and
industrial houses started using this method. This is not a technique of performance
appraisal by itself. In fact it is a system or organization, where assessment of several
individuals is done by various experts using various techniques. These techniques include
the methods discussed before in addition to in-basket, role playing, case studies, simulation
exercises, structured in sight, transactional analysis, etc.

Field Review Method

Where subjective performance measures are used, there is scope for biases influencing the
evaluation process. To avoid this, some employees use the field review method. In this
method a trained, skilled representative of the HR department goes into the ‘field’ and
assists line supervisors with their ratings of their respective subordinates. The HR specialist
requests from the immediate supervisor specific information about the employees
performance. Based on this information, the expert prepares a report which is sent to the
supervisor for review, changes, approval and discussion with the employee who is being
rated. The ratings are done on standardized forms.

5.Write a note on different theories for Managing Compensation

Ans.

Managing a compensation program initially requires an understanding of technical skills

used by HR professionals: Job Analysis, Job Evaluation, assessing pay grades, salary
surveys, etc. These skills will be developed over the term of this course. However, far more
than a quantitative study or a major expense to a bottom line, compensation management
also requires that professionals make difficult strategic-level choices that can have
tremendous impact on the livelihood of employees, a company’s culture or its
financial future.

Different theories of managing compensation are:

Subsistence theory: This theory, also known as ‘Iron Law of Wages’, was propounded by
David Ricardo (1772-1823). According to this theory, wages tend to settle at a level just
sufficient to maintain the workers and his family at minimum subsistence levels. The theory
applies only to backward countries where labourers are extremely poor and are unable to
get their share from the employers.
Standard of living theory: This theory is a modified form of subsistence theory. According
to this theory, wages are determined not by subsistence level but also by the standard of
living to which a class of labourers become habituated.
Residual claimant theory: Francis A. Walker(1840-1897) propounded this theory.
According to him, there were four factors of production/ business activity viz., land, labour,
capital and entrepreneurship. Wages represent the amount of value created in the
production which remains after payment has been made for all these factors of production.
In other words, labour is the residual claimant.
The wage fund theory: According to this theory, after rent and raw materials are paid for,
a definite amount remains for labour. The total wage fund and the number of workers
determine the average worker’s share in the form of wages.
Demand and supply theory: According to this theory, wages depend upon the demand
and supply of labour.
Marginal productivity theory: This is an improved form of demand and supply theory.
Wages are determined by the value of the net product of the marginal unit of labour
employed.
Purchasing power theory: According to this theory the prosperity, productivity and
progress of industry depend on there being sufficient demand to ensure the sale of its
products and pocketing of reasonable profits. A large pact of the products of industry is
consumed by workers and their families and if wages are high m demand will be good.
However, if wages and the purchasing power of the workers are low, some of the goods will
remain unsold; output will go down which will result in unemployment.
The bargaining theory of wages: John Davidson propounded this theory. According to
him, wages are determined by the relative bargaining power of workers or trade unions and
of employers, When a trade union is involved, basic wages, fringe benefits, job differentials
and individual differences tend to be determined by the relative strength of the organization
and the trade union.

Professionals who design and implement comprehensive direct and indirect pay programs
are often required to balance conflicting variables. These variables include internal
pressures for cost containment, the financial interests of employees, external competition
for talented employees, executives’ roles in shaping organizational cultures, ethical
considerations, the role of government, and the influence of long-range business plans.

6.Advantages and limitations of Job Evaluation Method.

Ans.

There are four basic methods of job evaluation: ranking method, job
grading method, point method and factor comparison method. Out of these,
first two methods are non-quantitative and also known as traditional, non analytical or
summary methods. The last two methods are quantitative, also known as analytical
methods, and use various quantitative techniques in evaluating a job.

Ranking Method
In the ranking method, a whole job is compared with others and rank is
provided on the basis of this comparison.
Advantages:
Ranking method has certain facial merits. Some of these merits are as
follows:
1. The method is comparatively simple, easily understandable, and mostly
acceptable by labour unions. It is suitable for comparatively smaller
organisations which may not like to undertake more laborious exercises.
2. The method is less costly to undertake and maintain as compared to other
systems.

Limitations:
Since ranking method of job evaluation is qualitative and non-analytical.
it suffers from the following limitations:
1. Ranking method is judgmental and, therefore, it is affected by personal
preferences of job evaluators.
2. This method ranks various jobs in order of their relative worth. It does not
specify the real difference between two jobs.. For example, the exact
difference between job ranked at first and the job ranked at second cannot
be specified.

Grading Method
Job grading method also known as job classification method establishes
various grades for different categories of jobs
Advantages:
Grading system of job evaluation particularly in government jobs. is
quite popular as this has certain merits over the ranking method. These are
as follows:
1. It is quite simple to operate and understand as the relevant information
is provided by job analysis which serves other purposes too.
2. Job evaluation done on grading method makes wage and salary
determination easier as these are fixed in terms of various grades of
jobs.
Limitations:
This system of job evaluation suffers with the following limitations:
1. Job grade description is vague and personal biases may distort job
grading as the method is not based on any scientific analysis.
2. There are chances of employees' resistance when new clusters of jobs
are prepared. This is evident by the fad that government employees
agitate when recommendations of a new pay commission come.

Point Method
Point method of job evaluation is widely used in business organisations.
It is an analytical and quantitative method which determines the relative
Worth of a job on the basis of points allotted to each specific factor of a job.

Factor Comparison Method

This method, also known as key job method, was originally developed at
the Philadelphia Rapid Transit Company, USA by Eugene J.Benge in 1926 to
overcome two major problems faced in point method of job evaluation. viz.
determining the relative importance of factors and describing their degrees.
In this method, each factor of a job is compared with the same factor of the
Other jobs or the key job either defined or existing one.
Advantages:
The factor comparison method is more systematic and analytical as
compared to any other method and offers following merits:
1. It provides more accurate information about the relative worth of a job as
different comparable factors are compared with key jobs.
2. Since only limited number of factors relevant for the effective job
performance are compared, there are reduced chances of overlapping.
3. Since the evaluation is more systematic and analytical, its logic can be
accepted by trade unions and workers.
Limitations:
However, factor rating method has its own operational problems:
1. This method is quite costly and time consuming to install and difficult to
understand by those not fully conversant with job evaluation process.
2. If wage rates are adopted for making comparison. the system may
Become obsolete very soon as there may not be proportionate increase in
wages for all jobs.
3. This system considers only limited factors of job for comparison. This may
be a positive point so far as avoidance of duplication and simplicity of
procedure are concerned, but may ignore other factors which may be
important for the performance of the job.
 ASSIGNMENTS - MBA - I SEMESTER

MB0027

SET 2

Human Resource Management

1 Mention and briefly explain different sources of recruitment

Ans. Every organization has the option of choosing the candidates for its recruitment
processes from two kinds of sources: internal and external sources. The sources within the
organization itself (like transfer of employees from one department to other, promotions) to
fill a position are known as the internal sources of recruitment. Recruitment candidates from
all the other sources (like outsourcing agencies etc.) are known as the external sources of
recruitment.

INTERNAL SOURCES:
1. TRANSFERS
The employees are transferred from one department to another according to their efficiency
and experience.
2. PROMOTIONS
The employees are promoted from one department to another with more benefits and
greater responsibility based on efficiency and experience.
3. Others are Upgrading and Demotion of present employees according to their
performance.
4. Retired and Retrenched employees may also be recruited once again in case of shortage
of qualified personnel or increase in load of work. Recruitment such people save time and
costs of the organizations as the people are already aware of the organizational culture and
the policies and procedures.
5. The dependents and relatives of Deceased employees and disabled employees are also
done by many companies so that the members of the family do not become dependent on
the mercy of others.

EXTERNAL SOURCES:

1. PRESS ADVERTISEMENTS: Advertisements of the vacancy in newspapers and journals

are a widely used source of recruitment. The main advantage of this method is that it has a
wide reach.
2. EDUCATIONAL INSTITUTES: Various management institutes, engineering colleges,
medical Colleges etc. are a good source of recruiting well qualified executives, engineers,
medical staff etc. They provide facilities for campus interviews and placements. This source
is known as Campus Recruitment.
3. PLACEMENT AGENCIES: Several private consultancy firms perform recruitment functions
on behalf of client companies by charging a fee. These agencies are particularly suitable for
recruitment of executives and specialists. It is also known as RPO (Recruitment Process
Outsourcing)
4. EMPLOYMENT EXCHANGES: Government establishes public employment exchanges
throughout the country. These exchanges provide job information to job seekers and help
employers in identifying suitable candidates.
5. LABOUR CONTRACTORS: Manual workers can be recruited through contractors who
maintain close contacts with the sources of such workers. This source is used to recruit
labor for construction jobs.
6. UNSOLICITED APPLICANTS: Many job seekers visit the office of well-known companies on
their own. Such callers are considered nuisance to the daily work routine of the enterprise.
But can help in creating the talent pool or the database of the probable candidates for the
organization.
7. EMPLOYEE REFERRALS / RECOMMENDATIONS: Many organizations have structured
system where the current employees of the organization can refer their friends and relatives
for some position in their organization. Also, the office bearers of trade unions are often
aware of the suitability of candidates.
8. RECRUITMENT AT FACTORY GATE: Unskilled workers may be recruited at the factory gate
these may be employed whenever a permanent worker is absent. More efficient among
these may be recruited to fill permanent vacancies.

2 Write a note on guided and unguided interview

Ans.
Morale can be measured by assessing attitudes and job satisfaction. As it is intangible and
subjective concept, it cannot be directly measured or evaluated.

The most commonly used methods for measuring morale are:

1. The guided interview.

2. The unguided interview.

The Guided Interview:

 The guided interview is based on the hypothesis that employees answers to certain
questions will reveal their attitudes. The questions selected are presumed to be the ones
that will call forth a true picture of how the employees feel. This series of questions is
usually rather large. The interviewer seeks to direct the interview in such a manner as to
secure the answers that will reveal the desired information. The guided interview is a useful
method of investigating the morale of supervisors or other groups that are small in
comparison with the employees as a whole.
The Unguided Interview:
This technique for measuring morale is predicated upon the theory that, if employees are
placed in a position to talk freely, they will reveal a true situation not so much by the exact
thing complained of or discussed as by the interviewer’s ability to relate what is said to
basic causes. It is also assumed that, if the employee himself is permitted to talk through a
given problem or work situation without special prompting or questioning by the
interviewer, he usually will become aware of the logic or lack of logic in the situation and
choose for himself the appropriate line of action. The method of employee-attitude analysis
is designed both to correct an unfavourable situation and to secure information regarding
the status of morale within the group. Though it is an expensive method of measurement
than the questionnaire method, it not only provides a means of interpreting morale but at
the same time is used to build morale.
Combination on the Guided and Unguided Interview:

To combines the two methods, the interviewer may start with the guided interview, which
should be not too long or cover too much territory. The interviewer is then invited to discuss
any subject that he may like to talk about. During the guided interview some persons tend
to bring in material that has no special significance in relation to the information sought.
The interviewer should observe such instances and encourage the interviewee should
observe such instances and encourage the interviewee to follow up these leads during the
unguided position of the interview. As a matter of fact, few guided interviews are strictly
kept on the detailed subjects laid out in the formal programme and a conscious effort has to
be put forth to get the most out of the unguided phases of the interview.

3 Discuss the techniques to motivate employees.

Ans.
Motivated employees make fewer mistakes, have higher productivity, and tend to remain
with a company. Motivating employees is an element of performance management. It is
accomplished through several important performance management strategies:

Motivation techniques can be summarized are as follows:

• Providing the information and tools employees need to do their jobs

successfully:
Make sure employees are oriented to the organization, the
department, and their jobs. Make sure they know how to access information
and resources they need.
• Providing regular feedback:
Feedback should be constructive and timely. Constructive feedback refers to a specific
incident or to specific outcomes.
• Recognizing employees:
 Ask employees what motivates them. Customize rewards and recognition based on an
employee’s needs and interests. When recognizing an employee, make sure you refer to a
specific incident.
• Sharing your expectations for employees:
Clarify the role each employee plays in the department. Make sure you outline your
expectations for success.
• Making it easy for employees to openly communicate with you:
Create an environment in meetings in which employees feel comfortable expressing their
needs. Make yourself accessible and visible to all employees.
• Being truthful with employees:
Give them good and bad information in a straightforward manner. If you do not, they may
view your communication as unauthentic.
• Involving employees in decisions that affect their jobs:
Provide them with opportunities to share what they need in order to be successful at their
jobs. Whenever possible, include a representative staff member in major planning projects
or initiatives. Encourage employees to fill out the employee opinion survey and then discuss
the summary results with employees to solicit ideas for improvement.

4 Explain in detail the disciplinary –Action Penalties.

Ans.
The determination of which penalty to impose in a particular situation requires the
application of responsible judgment. Disciplinary action taken
is based on the conclusions that there is sufficient evidence available to support the
reason(s) for action and that the disciplinary action is warranted and reasonable in terms of
the circumstances which prompted it.

There are varying penalties for first, second, and third offences of the same rule. Among the
penalties available in business are:
1. Oral reprimand
2. Written reprimand
3. Loss of privileges
4. Fines
5. Lay off
6. Demotion
7. Discharge
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
"chewing out" may be necessary in order to get attention and co-operation; 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. Since a written reprimand is more permanent than
an oral one, it is considered a more severe penalty.
For such offences as tardiness or leaving work without permission, fines or loss of various
privileges can be used. The fines usually have some relationship to the work time actually
lost. The loss of privileges includes such items as good job assignments, right to select
machine or other equipment, and freedom of movement about the workplace or company.
The more severe penalties of layoff, demotion, and discharge are usually outside the grant
of authority to the immediate supervisor. Disciplinary layoffs can vary in severity from one
to several days' loss of work without pay. The use of demotions as a penalty is highly
questionable. If the employee is properly qualified for the present assignment, he or she will
be improperly placed on a lower job. Discharge is the most severe penalty that a business
organization can give and constitutes "industrial capital punishment".
5.Explain the importance of grievance handling
Ans.
At one or other stage of the grievance procedure, the dispute must be handled by some
member of management. In the solution of a problem, the greater burden rests on
management. The clearest opportunity for settlement is found at the first stage, before the
grievance has left the jurisdiction of the supervisor. For this reason, many firms have
specifically trained their supervisors as to how to handle a grievance or complaint properly.
The
dispute or grievance constitutes a managerial problem and the scientific method is usually
most productive in arriving at a satisfactory solution.

The following directions help in handling grievance:

1.Receive and define the nature of the dissatisfaction:
The manner and attitude with which the supervisor receives the
complaint of grievance is important. As a principle applicable to this step, the supervisor
should assume that the employee is fair in presenting the complaint or grievance.
Statements should not be prejudged on the basis of past experience with this or other
employees. The supervisor should not be too busy to listen and should not give an
impression of condescension in doing so. Thus supervisors who were nearly task oriented,
as contrasted with
people oriented, tended to experience a significantly greater number of grievances being
filed in their units.

2. Get the facts:

In gathering facts, one quickly becomes aware of the importance of keeping proper records
such as performance ratings, job ratings, attending records, and suggestions. In addition,
with the increasingly legalistic bent that is characteristic of modern labour management
relations, the supervisor is wise to keep records on each particular grievance. It is also
important
that the supervisor possesses and exercise some skill in interview
conference, and discussion.

3. Analyze and divide:

With the problem defined and the facts in hand, the manager must now analyze and
evaluate them, and them come to some decision. There is usually more than one possible
solution. The manager must also be aware that the decision may constitute a precedent
within the department as
well as the company.

4. Apply the answer:

Though the solution decided upon by the superior is adverse to the employee, some answer
is better than none. Employees dislike supervisors who will take no stand, good or bad. In
the event of an appeal beyond this stage of the procedure, the manager must have the
decision and the reasons
for his decisions should be properly recorded.

5. Follow up:
The objective of the grievance procedure is to resolve a disagreement between an employee
and the organization. Discussion and conference are important to this process. The purpose
of its follow up phase is to determine whether the clash of interest has been resolved. If
follow up reveals that the case has been handled unsatisfactorily or that the wrong
grievance has been processed, then redefinition of the problem, further fact finding,
analysis,
solution and follow up are required.

Among the common errors of management encountered in the processing of grievances

are:
1. Stopping too soon in the search of facts.
2. Expressing a management opinion prior to the time when all pertinent facts have been
discovered.
3. Failing to maintain proper records.
4. Resorting to executive fiat or orders instead of discussion and conference to change
minds.
5. Setting the wrong grievance mistake which may in turn produce a second new grievance.
Follow up is the step in the procedure that tells us when a mistake in handling has been
made.

6 Explain Managerial grid in detail.

Ans.

The managerial grid model (1964) is a behavioral leadership model developed by Robert
Blake and Jane Mouton. This model originally identified five different leadership styles based
on the concern for people and the concern for production. The optimal leadership style in
this model is based on Theory Y.

The grid theory has continued to evolve and develop. Robert Blake updated it.The theory
was updated with two additional leadership styles and with a new element, resilience.

The Managerial grid

Blake and Mouton developed a two – dimensional matrix of leadership styles.
The model consists of nine rows and columns.
The rows represent the leader’s concern for production, while the columns represent the
concern for people.
The model is represented as a grid with concern for production as the X-axis and concern
for people as the Y-axis; each axis ranges from 1 (Low) to 9 (High).
With nine possible positions on each side, leaders can be located at one of a total of 81
position on this grid. Blake and Mouton found five intersection points in this model – 1,9;
1,1; 9,1; 5,5 and 9,9. People whose behavior falls into the 1,1 cell on the grid, called the
impoverished style of
leadership, exhibit no concern for people or for work. Hence, they often fail as leaders.
People who follow the 1,9 style of leadership have high
concern for people but low concern for production. This is referred to as the country club
style of leadership. People who exhibit the 9,1 style of leadership have high concern for
production and low concern for people
This is referred to as authoritarian style of leadership. People whose leadership style fall into
the 9,9 cell show high concern for both people and
production. This position on the grid is referred to as team management style of leadership.

Blake and Mouton suggested that managers who practice a 9.9 style (team management) of
leadership are more effective compared to the 9.1
style (authoritarian), or the 1,9 style (country club type). Leaders whose behavior falls into
the 5,5 style are also considered to be fairly effective.