National Institute of Business Management

Chennai - 020

FIRST SEMESTER EMBA/ MBA

Subject : Human Resources Management

Attend any 4 questions. Each question carries 25 marks

(Each answer should be of minimum 2 pages / of 300 words)

1. Explain the three main categories of IHuman Resource

Management Functions.
Answer- Human Resource Management Functions can be divided
into the following three main categories:
A. Personnel Administration
Recruitment and Selection – assessing the referrals and hiring the personnel
and knowledge of source employ supply. Physical tests, trade and aptitude
tests. Selection criteria of employees. Job analysis and job description.
Induction – Introduction to the supervisors and explaining company policies
and introduction to work place and colleagues, Service conditions.
Compensation – Wage scale, provident fund, ESIC and working hours.
Information about the incentives or over time. Profit sharing and yearly
bonuses and holiday information.
Discipline – Instances of misconduct and disciplinary actions. Feedback
loop policies.
Transfer and promotion – Internal transfer and rolling out an Internal job
postings on basis of requirements.
Evaluation of employees – counselling and assessment.
People administration – Absenteeism, Late coming and loitering.
Statutory compliance - Apprentice act, Employment exchange, Wage act,
EPF.
 B. Employee welfare
Conditions of work environment - Sanitation and cleanliness, Welfare
amenities.Employees health services – Industry health services (free medical
checkups, treatments of accidents), Recreational activities, Workers
educations, Economic services, Welfare acts.

C. Functional Areas
Organizational planning and development, Staffing and employment,
Training and development, Wage and salary administration, Motivation and
incentives, Employee services and benefits, Employee records, Labor or
industrial relations, Personal research and Personnel audit.

2. What are the Behavioral sciences input/ contribution to WPM?

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3. Explain the salient features of Quality circle,

Answer – a group of employees who meet regularly to consider ways of resolving
problems and improving production in their organization.
a. A people-building Philosophy: It inculcates group or team work. Companies
with selfish interest and vertical ambitions cannot benefit from quality circles. In quality
circles people get to know each other and there is a feeling of 'togetherness' to combat
growing competition, inflationary and other problems of the company.
b. Voluntary in Nature: Management usually fined this difficult to grasp and digest,
and are unable to deal with it. The voluntary nature in itself is sufficient proof that is
mainly for the benefit of members whether to take advantage of it or not.
c. Everyone Participates: Quality circle is a participative programme. The leader
has to bring forward the more dormant member and make him participate locally as well
as physically. This promotes job involvement and motivation and develops pride in good
wor4kmanship. It becomes the duty of each member to look out for the development and
growth of others.
d. Creativity is encouraged: A -non-threatening environment is created for
individual ideas. Normally, a person says from putting forward an idea if he fears chance
of being ridiculed or rejected. Quality Circle infuses among its member's confidence, a
problem preventing and problem solving attitude.
e. Projects are Circle Efforts: The circle, as a whole team, receives recognition for
any achievement, it has accomplishes. No individual, whether the management or the
shop-floor workers, can individually claim any success of a project.
f. Training is a Must for Members: It is imperative to impart some sort of
training to members. It may be formal or informal. Members need to know the effective
techniques in finding solutions or they may become frustrated and disillusioned at their
ineptitude.Management, likewise, have to undertake training for their supportive role
rather than one domination. Through eight to ten hours training, members become
familiar with problem solving techniques such as pare to diagrams, Cause and Effect
analysis, Check sheets, etc.
g. Projects are Work-related:Individuals or other departmental problems are not
dealt with. Problems have to be related to member's own department of work area,
though advice may be sought from other quality circles. It is based on the assumption that
members are experts in their own field at what they do, but not at what other people do.
h. To Obtain Management Support:Quality circles cannot flourish unless there is
encouragement from the management in the form of advice and commitment. In fact,
experience has shown that the initiative for formation of quality circles primarily came
from the management rather than shop-floor workers. This further brings flexibility in
otherwise water-tight departments.
i. Development of Quality Consciousness:Quality circle inculcates cost
consciousness and infuses safety awareness. In Japan it is referred to as 'value analysis'
More than 20% of circle activities there, are involved in correcting quality errors. This
becomes a continuous process. Consumer's satisfaction not quality services are best
reflected in the increased demand for Japanese products.
j. Mental Awareness Regarding 'We' and 'they':Quality circle encourages
leadership quality and personal development within a group. It facilitates effective use of
channels of communication thereby assuring improved interpersonal relations and bonds
of brotherhood. It urges people to receive ideas with an open mind and to participate
positively.
k. Absenteeism and Grievances are reduced:Members have realised that
quality circle programmes have helped them to enjoy work, a feeling of belongingness
which has made them attend offices enthusiastically rather than abstaining for minor
reasons. Grievances, too automatically get reduced since most of the work area problems
are solved by the members themselves.
l. Optimum Utilisation of Human Resources:Better organisation,
specialization, maximum out-put-all can be obtained from one important resource - that
of human resource. Each worker contributes his best, towards reducing costs, wastes and
anomalies.
m. Work-Ethic, Discipline and Trust:These lead to success of quality circles.
Trust is a corner-stone of organisations in Japan where it is considered fundamental to
success. Self-discipline, Ethics and intangible, unquantifiable trust among all result in
incalculable benefits for the organisations.
 4. The demands of workplace functioning have prompted
Organisations to experiment with other forms of
participation.Explain.
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5. What are the benefits and drawbacks of MBO programs?

Explain.
Answer - Management by Objectives (MBO):
MBO helps in implementing goal oriented management. It can be applied in various areas

of organisation such as performance appraisal, organisational development, long range

planning, integration of individual and organisational objectives and so on.

Benefits of MBO:
1. Better Managing:

MBO results in improved and better managing. Better managing requires setting goals for

each and every activity and individual and ensuring that these are achieved. MBO not

only helps in setting objectives but also ensures balancing of objectives and resources.

For establishing objectives there is a need for better and result oriented planning.

Management by objectives forces managers to think about planning for results, rather

than merely planning activities or work. Managers will devise ways and means for

achieving objectives. The objectives also act as controls and performance standards. So

MBO is helpful in improving management.

2. Clarifying Organisation:
MBO helps in clarifying organisational roles and structures. Responsibility and authority

are assigned as per the requirements of the tasks assigned. There is no use of fixing

objectives without delegating requisite authority. The positions should be built around the

key results expected of people occupying them. Implementation of MBO will help in

spotting the deficiencies in the organisation.

3. Encouraging Personal Commitment:

The main benefit of MBO is that it encourages personnel to commit themselves for the
achievement of specified objectives. In a normal course people are just doing the work
assigned to them. They follow the instructions given by the superiors and undertake their
work as a routine matter. In MBO the purpose of every person is clearly defined with his
or her own consent. People in the organisation have an opportunity to put their own ideas
before superiors, discuss the pros and cons of various suggestions and participate in
setting the final objectives. When a person is a party for setting objectives then he will
make honest endeavor to achieve them. He will feel committed to reach the goals decided
with his consent. A feeling of commitment brings enthusiasm and helps in reaching the
goals.
4. Developing Controls:

MBO mechanism helps in devising effective controls. The need for setting controls is the

setting of standards and then finding out deviations if any. In MBO, verifiable goals are

set and the actual performance will help in finding out the deficiencies in results. Every
person is clear about what is expected from him and these standards act as clear cut

controls. So controls can easily be devised when MBO is followed.

Weaknesses of Management by Objectives:

Despite of its acceptability in recent times, MBO technique has not yet acquired a final

shape.

This system suffers from a number of weaknesses which are discussed as under:
1. Failure to Teach MBO Philosophy:

The success of MBO will depend upon its proper understanding by managers. When

managers are clear about this concept only then they can explain to subordinates how it

works, why it is being done, what will be the expected results, how it will benefit

participants, etc. This philosophy is based on self direction and self control and aims to

make managers professionals.

2. Failure to Give Guidelines to Goal setters:

If the goal setters are not given proper guidelines for deciding their objectives then MBO

will not be a success. The managers who will guide in goal setting should themselves

understand the major policies of the company and the role to be played by their activity.

They should also know planning premises and assumptions for the future. Failure to

understand these vital aspects will prove fatal for this system.

3. Difficulty in Setting Goals:

The main emphasis in MBO technique is on set ting objectives. The setting of objectives

is not a simple thing. It requires lot of information for arriving at the conclusions. The

objectives should be verifiable so that performance may be evaluated. Some objectives

may not be verifiable, precaution should be taken in defining such objectives. The

objectives should not be set casually otherwise MBO may prove liability for the business.

4. Emphasis on Short Term Objectives:

In most of the MBO programs there is a tendency to set short-term objectives. Managers

are inclined to set goals for a year or less and their thrust is to give undue importance to

short term goals at the cost of long term goals. They should achieve short term goals in

such a way that they help in the achievement of long term goals also. There may be a
possibility that short term and long term objectives may be incompatible because of

specific problems. So proper emphasis should be given to both short term and long term

objectives.

5. Danger of Inflexibility:

There is a tendency to strict to the objectives even if there is a need for modification.

Normally objectives will cease to be meaningful if they are often changed, it will also be

foolish to strive for goals which have become obsolete due to revised corporate

objectives or modified policies.

6. Explain the Characteristics of a good Training Programme

Answer - Training helps the organization to achieve the goal of the
organization. Training improves the performance of the employees by filling
the gap what is expected from them and what they achieved. A good training
programme must possess following characteristics:

 An effective training programme should be flexible and It should be able to

prepare the trainees’ mentally before they impart any knowledge. It should
emphasize on both theory and practical training.

 It should be given by qualified and trained trainer and An effective training

programme should be supported by top management.The content of the training
programme should be prepared before identifying the training needs as they
should be according to the job requirement.

Thus, all the above stated points are necessary for a good training programme.

(i) Training programme should be designed so as to achieve the predetermined objectives,

goals and needs of the organisation. It should be less expensive.

(ii) Training programme should be leopardess for all, in the organisation and not for a
particular group.

(iii) Training programme should pre-planed and well organised taking in view, the
objectives of training programme. For this purpose the whole task should be divided in
various sub-activities an such sub-activities should be arranged in a systematic order.

(iv) Training programme should be designed according to size, nature and financial
position of the concern. A small scale enterprise cannot afford much to the training
programme.

(v) Training programme must be flexible enough.

(vi) The programme must be conducted by senior and experienced officer of the concern.
In large scale enterprises, training is conducted by the training director who is incharge of
the training section under personnel department. Such training director is well trained and
experienced in the art training.

(vii) Theoretical and practical aspects of training must be given due considerations while
preparing a training programme.

(viii) It should be designed in such a fashion as to incorporate the recent trends developed
in the industrial field. Psychological researches may guide the conducting of a
programme. The main purpose of the training programme should be to enable the
employee to pick-up the work as soon as he completes the training.

(ix) Training programme should be designed taking in view the interests of both
employer and the employees. Their group interests should not be suffered.

(x) It is not essential to follow a single method of training for all employees. The purpose
of training is to develop the men and not the methods, therefore, more than one method
maybe followed side by side for different groups.

(xi) The main purpose of the training programme should be to motivate the workers to
learn something to improve is job performance and therefore, a reward must be to
expected at the concussions of the learning process such as promotion or a better job.

25 x 4=100 marks