Madhu.T.

K, Kannur
MCQs on Industrial and Labour Laws

1. Appointment of Welfare Officer under Factories Act, 1948 is compulsory

where_______ employees are employed.
( (a) 50 (b) 500 (c) 1000 (d) 100)
2. Crèche is mandatory under the Factories Act where ______________ workers are
employed
(a) 30 women (b) 100 (c) 50 women (d) 250)
3. A canteen for use of workers providing subsidized food is statutory under the
Factories Act where _____________ workers are employed.
( (a) 250 (b) 1000 (c) 100 (d) 150)
4. Under Factories Act, appointment of a Safety Officer is mandatory where the no.
of employees exceeds ________
( (a) 1000 (b) 500 (c) 100 (d) 50)
5. Under Plantation Labour Act, 1951 a Welfare Officer is required to be appointed
where the no. of workers is __________
( (a) 100 (b) 300 (c) 500 (d) 1000)
6. Under Plantation Labour Act, crèche is to be set up where ______________
women workers are employed or the no. of children of women workers exceeds
________
( (a) 50 and 20 (b) 30 and 20 (c) 50 and 30 (d) 30 and 5)
7. Under Plantation Labour Act, canteen is compulsory where ________ workers are
working
( (a) 100 (b) 250 (c) 500 (d) 150)
8. An adult worker under the Factories Act is eligible for leave with wages @ I day
for every________ days worked during the preceding year
( (a) 50 (b) 20 (c) 15 (d) 240)
9. Under the Factories Act no worker is permitted to work for more than _____
hours in a day
( (a) 8 (b) 9 (c) 10 (d) 24)
10. Under the Factories Act, white washing of the factory building should be carried
out in every _________ months
( (a) 12 (b) 24 (c) 26 (d) 14)
11. Repainting or re varnishing under the Factories Act is required to be carried out in
every ________ years
( (a) 5 (b) 10 (c) 3 (d) 1)
12. Certification of Standing Orders under the Industrial Employment (Standing
Orders) Act, 1946 is mandatory where ________ workers are employed
( (a) 500 (b) 1000 (c) 250 (d) 100)
13. In order to be eligible for maternity benefit under the Maternity Benefit Act, 1961,
a woman worker should have worked for not less than_________ days in the 12
months immediately preceding the date of delivery
( (a) 80 (b) 240 (c) 30 (d) 150)
14. Under the Maternity Benefit Act, a woman worker is eligible for ______ weeks
leave with wages
( (a) 6 (b) 24 (c) 15 (d) 12)
 Madhu.T.K, Kannur
15. In case of miscarriage, a woman worker shall be allowed______ weeks leave with
wages
( (a) 12 (b) 6 (c) 4 (d) 24)
16. Under the Payment of Wages Act, 1936 payment of wages of establishments
employing not more than 1000 employees shall be paid within _______ of the
wage month
( (a) 10th day (b) 7th day (c) 2nd day (d) 15th day)
17. Under the Payment of Wages Act, payment of wages of establishments employing
not less than 1000 employees shall be paid within __________ of the wage month
( (a) 7th day (b) 15th day (c) 2nd day (d) 10th day)
18. An employee is eligible to get bonus under the Payment of Bonus Act, 1965 if he
had worked for not less than ________ days in the preceding year
( (a) 30 (b) 240 (c) 160 (d) 190 )
19. An employee whose salary does not exceed ____________ is eligible for Bonus
under the Payment of Bonus Act.
( (a) Rs 3500 (b) Rs 2500 (c) Rs 6500 (d) Rs 21000 )
20. The statutory minimum bonus is ________
( (a) 8.33% (b) 10% (c) 24% (d) 20%)
21. Maximum bonus under the Payment of Bonus Act is _______
( (a) 8.33% (b) 10% (c) 24% (d) 20% )
22. In order to be eligible for Gratuity under the Payment of Gratuity Act, 1972, an
employee should have a minimum continuous service of __________
( (a) 10 years (b) 5 years (c) 7 years (d) 3 years)
23. Under the Payment of Gratuity Act, the rate of gratuity is _________ salary for
every completed year of service
( (a) 20 days (b) 30 days (c) 15 days (d) 2 months)
24. A news paper employee is eligible for gratuity if he has ______ years continuous
years of service
( (a) 10 (b) 5 (c) 7 (d) 3 )
25. Employees who are drawing salary not more than __________ are covered under
the Employees State Insurance Act, 1948.
( (a) Rs 15000 (b) Rs 7500 (c) Rs 6500 (d) Rs 3500)
26. Employees’ share of contribution under the ESI Act is ________
( (a) 12% (b) 8.33% (c) 1.75 % (d) 4.75% )
27. The employer’s share of contribution under the ESI Act is _____
( (a) 12 % (b) 8.33 % (c) 1.75 % (d) 4.75 % )
28. Employees who are getting a daily average wages up to ________ are exempted
from contributing employees’ share of ESI contribution.
( (a) Rs 70 (b) Rs 50 (c) Rs 100 (b) Rs 384.60 )
29. Employees Provident Fund and Miscellaneous Provisions Act, 1952 is applied to
establishments employing not less than _______
( (a) 10 employees (b) 20 employees (c) 50 employees (d) 100 employees )
30. An employee whose salary at the time of joining does not exceed _________ shall
become a member of the provident fund under the Act.
( (a) Rs 10000 (b) Rs 7500 (c) Rs 15000 (d) Rs 5000 )
31. Employees’ share of provident fund contribution is __________
( (a) 12 % (b) 8.33% (c) 1.75 % (d) 4.75% )
32. Employer’s share of contribution to the provident fund is ________
 Madhu.T.K, Kannur
( (a) 8.33% (b) 12% (c) 3.67 % (d) 4.75 % )
33. Employer’s contribution to Employees Pension Scheme is _______
( (a) 8.33% (b) 12% (c) 3.67 % (d) 4.75 % )
34. Employer’s contribution to Employees’ Deposit Linked Insurance is __________
( (a) 3.67 % (b) 1.1 % (c) 0.5 % (d) 0.05 % )
35. Prior intimation to the appropriate Govt to lay off, retrench or close down an
establishment is required under the Industrial Disputes Act, 1947 where there are
________ workers
( (a) 100 (b) 1000 (c) 50 (d) 500 )
36. Prior permission from the appropriate Govt to lay off, retrench or close down an
establishment is required under the Industrial Disputes Act where there are
________ workers
( (a) 100 (b) 1000 (c) 50 (d) 500 )
37. Forming of a Works Committee under the Industrial Disputes Act, is mandatory
where the no. employees is _________
( (a) 1000 (b) 100 (c) 500 (d) 250 )
38. Lay off compensation is to be paid @ _________ of average wages
( (a) 15 days (b) 50% (c) 60% (d) 75 % )
39. The minimum no. of workers required to register a Trade Union under the Trade
Unions Act, 1926 is _________
( (a) 10% (b) 50% (c) 33 % (d) 10% or 100 whichever is less )
40. Continuous Service under major labour legislations means _______________
( (a) work of 240 days if work is above the ground and 190 days if work is
below the ground (b) work of 240 days (c) work of 180 days ( d) work of 160
days )
41. _______________________prohibits discrimination in fixing salary to men and
women engaged in the work of similar nature
( (a) Minimum Wages Act, 1948, (b) Payment of Wages Act, 1936, (c) Payment
of Subsistence Allowance Act (d) Equal Remuneration Act, 1976 )
42. Subsistence Allowance @ __________ shall be paid if suspension extends to a
period beyond 90 days
( (a) 50% (b) 75% (c) 90% (d) 100% )
43. The wages under the Minimum Wages Act, 1948 shall include ______________ (
(a) CTC (b) a basic rate of wages and dearness allowance variable according
to cost of living (c) basic rate of wages, DA, HRA and CCA (d) A consolidated
amount decided by the employer )
44. ______________ absolves the employer’s liability under the Maternity Benefit
Act and Workmen’s Compensation Act.
( (a) Employees Provident Fund Act (b) Industrial Employment (Standing Order )
Act (c) Employees State Insurance Act (d) Industrial Disputes Act
45. Any amount due from an employer under settlement or award can be recovered
following the procedures laid down in ______________
( (a) The Standing Orders (b) section 15 of the Payment of Wages Act (c)
Minimum Wages Act (d) section 33 (C) of the Industrial Disputes Act.
 Madhu.T.K, Kannur

You never know what you will be asked on an interview. The following management interview question list
will help you prepare. You need to be able to answer all questions truthfully and professionally. Here are
the tough interview questions and answers:
Q. Why are you considering leaving your present job?

A. Regardless of the reason, do not bad mouth your current employer. Negativism will always hurt you.
Good answers include: “There is no room for growth at my current employer. I am looking for a company
with long term growth opportunities”. “Due to a company restructuring, my entire department is relocating
to Florida. I was give the option of moving, but do not wish to relocate”. “My current company is not doing
well, and has been laying off employees. There is no job security there, and more layoffs are expected”.

Q. What are your goals for the future?

A. “My long term goals are to find a company where I can grow, continue to learn, take on increasing
responsibilities, and be a positive contributor”.

Q. How do you handle stress and pressure?

A. “I find that I work better under pressure, and I enjoy working in an environment that is challenging.” “I
am the type of person that diffuses stress. I am used to working in a demanding environment with
deadlines, and enjoy the challenges.”

Q. What do you know about our company?

A. This question is used to see if you have prepared for the interview. Candidates that have researched the
company are more appealing. Companies like prepared, organized candidates.

Q. We have met several candidates. Why are you the one we should hire?

A. Give definite examples of your skills and accomplishments. Be positive, and emphasize how your
background matches the job description.

Q. What are your greatest strengths?

A. Be positive and honest. “My greatest strength is maximizing the efficiency of my staff. I have
successfully lead numerous teams on difficult projects. I have an excellent ability to identify and maximize
each of my staffs strengths.” Give examples.

Q. Tell me about your greatest weakness?

A. It is very important to give a strength that compensates for your weakness. Make your weakness into a
positive. “I consider myself a 'big picture' person. I sometimes skip the small details. For this reason, I
always have someone on my team that is very detail oriented.” Another good answer: “Sometimes, I get so
excited and caught up in my work that I forget that my family life should be my number one priority.”

Hopefully these interview questions and answers will help you. It is important to customize the answers for
your specific background and experience.

Now that we have gone over the tough interview questions and answers, you need to be aware
of important resources that can make your job search easier and more thorough.
 Madhu.T.K, Kannur
Responsible for rolling out effective HR strategy, policies and procedures by supporting business
needs and ensure productivity management of employees through effective and focused
implementation of all key people processes like PMS and L&D in a complex and ambiguous
environment To lead change and drive a culture of sensitivity and Customer delight at every level in
a highly complex & rapidly changing environment with large volume technical but customer facing
workforce Lead employee relations matters and ensure compliance with labour and company laws

Lead employee life cycle management of associate manpower

HR Strategy Development & Deployment

Understand business priorities and deploy appropriate HR strategies to achieve the desired
objectives

Works with business leadership to understand the mergent business needs and define the impact
of strategic business objectives on people

Organizational Design and Effectiveness

Uses existing frameworks and tools to assess the efficiency of the organizations structure, people,
capabilities and consult with key stakeholders on improving organizational effectiveness

Sets productivity norms, benchmarks and continuously monitors and benchmarks

Facilitate and lead Change

Understands various change processes currently being driven as a part of the organizations

Subscribes to the overall organizations agenda and takes ownership for driving change within ones
sphere of influence

Proactively communicate the change initiative- its rationale, expected results and way forward to
impacted parties. Anticipates concern/ resistance factors and takes proactive measures to address
the same to gain employee- buy in

Talent Acquisition

Understand business requirement to build talent pipeline and accordingly plan talent strategies in
coordination with the team

Review organization structure on regular intervals to ensure higher productivity and assist
functional heads in all aspects of the recruitment and selection by participating in selection panels
as necessary

Ensuring adherence to joining formalities for all new hires and assimilation of them into the
organization

Performance Management:

Leading performance management cycle (PMS) for circles - KRA setting, performance and
leadership

competency review, normalization and increment and promotion cycle

Effective tracking of PMS to ensure KRAs &business expectations are communicated & understood
as desired

Enable people managers to effectively manage the performance of their team members through
timely communication on the process

Creates systems and processes that encourage a meaningful performance and development
dialogue between the reporting manager and the employee

100% adherence to timelines, guidelines &processes during mid year & annual appraisals
 Madhu.T.K, Kannur
Handling grievances / queries raised by employees with respect to PMS and getting it redressed
through the Manager

Talent Management& Development

To work with line managers in developing suitable retention strategies, including succession
planning

Ensure succession planning for key leadership through an optimum blend of internal and external
talent by encouraging rotation through IJPs within the organization

Execute the capability development agenda for all the employees, both functional and competency
based

Setting and managing employee expectations and queries in terms of career advancement, role
enhancement and growth path clarity

Employee Engagement

Design & implement circle level engagement initiatives within allocated budgets and leverage all
people processes to connect with the employees

Build culture of Reward and Recognition in circles, with adequate controls in place. Follow
guidelines and use novel practices for assimilation of AIR values in the organization

Drive leadership team in resolving employee concerns/ issues through formal & Informal
communication and ensuring that HR matters are effectively dealt with

To manage the introduction of new or revised policy and process issues at circles, including
delivery of local workshops, ensuring that line managers are appropriately equipped and ongoing
supported in introducing and managing such changes

To conduct exit interviews and share the insight with the concerned leaders

To plan and implement corrective actions with Functional Heads

Statutory& Legal Compliance

Ensure all relevant legal & statutory compliance related to employment.

Work with relevant stakeholders to ensure closure of all compliance related matters

Creating positive external relationships with a view to further benefits to the organization

Contents
Leadership Theory....................................................................................................................................3
Types of leadership styles...................................................................................................................3
bureaucratic leader...........................................................................................................................3
charismatic leader.............................................................................................................................3
autocratic leader................................................................................................................................3
democratic leader.............................................................................................................................3
laissez-faire........................................................................................................................................3
 Madhu.T.K, Kannur
people-oriented leader.....................................................................................................................4
task-oriented leader..........................................................................................................................4
servant leader....................................................................................................................................4
transaction leader.............................................................................................................................4
transformation leader.......................................................................................................................4
environment leader...........................................................................................................................4
Difference between HRD & HRM...........................................................................................................4
OD Interventions.......................................................................................................................................5
HRD Interventions....................................................................................................................................5
Motivational Theory..................................................................................................................................5
Theory X & Theory Y............................................................................................................................5
Maslow's hierarchy...............................................................................................................................5
Deficiency needs...................................................................................................................................6
Growth needs........................................................................................................................................8
Criticisms................................................................................................................................................8
Herzberg Motivation Theory................................................................................................................8
Provident Fund Act...................................................................................................................................9
Employee State Insurance Scheme.....................................................................................................10
Difference between Wage and salary..................................................................................................11
Human Resource Management............................................................................................................12
Workforce planning.............................................................................................................................12
Recruitment.........................................................................................................................................12
Skills management.............................................................................................................................13
Training and development.................................................................................................................13
Personnel administration...................................................................................................................13
Compensation in wage or salary......................................................................................................13
Time management..............................................................................................................................13
Travel management (sometimes assigned to accounting rather than HRM)..............................14
Payroll (sometimes assigned to accounting rather than HRM)....................................................14
Employee benefits administration.....................................................................................................14
Personnel cost planning.....................................................................................................................14
Performance appraisal.......................................................................................................................14
Management by objectives (MBO)...............................................................................................15
 Madhu.T.K, Kannur
360 degree appraisal......................................................................................................................15
Behavioral Observation Scale (BOS)...........................................................................................15
Behaviorally Anchored Rating Scale (BARS)..............................................................................15
Retention Strategies...................................................................................................................................16
Customer Acquisition and Talent Acquisition............................................................................................16
CONSUMER PRICE INDEX (CPI)..................................................................................................................17
Gratuity......................................................................................................................................................17
Bonus Act..................................................................................................................................................18
Minimum Wages Act.................................................................................................................................18
Johari window...........................................................................................................................................18
Provident Fund Full notes..........................................................................................................................19
ESI: Employees’ State Insurance Act, 1948................................................................................................23
 Madhu.T.K, Kannur

Leadership Theory

The word leadership can refer to:

1. Those entities that perform one or more acts of leading.

2. The ability to affect human behavior so as to accomplish a mission.
3. Influencing a group of people to move towards its goal setting or goal
achievement. (Stogdill 1950: 3)

A leader is simply someone who has followers.

Types of leadership styles

bureaucratic leader

The bureaucratic leader (Weber, 1905)[1] is very structured and follows the
procedures as they have been established.

charismatic leader

The charismatic leader (Weber, 1905) leads by infusing energy and eagerness
into heir team members

autocratic leader

The autocratic leader is given the power to make decisions alone, having total
authority.

democratic leader

The democratic leader listens to the team's ideas and studies them,.

laissez-faire

The laissez-faire ("let do") leader gives no continuous feedback or supervision

because the employees are highly experienced and need little supervision to
obtain the expected outcome.
 Madhu.T.K, Kannur
people-oriented leader

The people-oriented leader is the one that, in order to comply with

effectiveness and efficiency, supports, trains and develops his personnel,
increasing job satisfaction and genuine interest to do a good job.

task-oriented leader

The task-oriented leader focus on the job, and concentrate on the specific
tasks assigned to each employee to reach goal accomplishment.

servant leader

The servant leader facilitates goal accomplishment by giving its team members
what they need in order to be productive

transaction leader

The transaction leader is given power to perform certain tasks and reward or
punish for the team’s performance.

transformation leader

The transformation leader motivates its team to be effective and efficient.

environment leader

The environment leader is the one who nurtures group or organisational

environment to affect the emotional and psychological perception of an
individual’s place in that group or organisation.

Difference between HRD & HRM

Human resource management is the art of managing human workforce in an

organization in an optimum manner which is beneficial to the employee as well
as the organization in achieving the organizational goal.

human resource development is a part of human resource management. it deals

with the all round development of an employee within an organization, his career
development, training, counseling, updating him with the latest technology,
helping him explore his potential and develop his skills which would prove
beneficial to both the employee and the organization in achieving the
organization goals. it also means allocation of resources for the development of
the employee

Yahoo describes
 Madhu.T.K, Kannur

Human resource development, is the process of changing an organization, its

employees, its stakeholders, and groups of people within it, using planned and
unplanned learning, in order to achieve and maintain a competitive advantage for
the organization.

Human resource management (HRM) is the strategic and coherent approach to

the management of an organization's most valued assets - the people working
there who individually and collectively contribute to the achievement of the
objectives of the business

OD Interventions

HRD Interventions

Motivational Theory

Theory X & Theory Y

Theory X and theory Y are theories of human motivation created and developed
by Douglas McGregor.

In this theory, management assumes employees are inherently lazy and will
avoid work if they can. Because of this, workers need to be closely supervised
and comprehensive systems of controls developed. A hierarchical structure is
needed with narrow span of control at each level. According to this theory,
employees will show little ambition without an enticing incentive program and will
avoid responsibility whenever they can.

In this theory management assumes employees may be ambitious, self-

motivated, anxious to accept greater responsibility, and exercise self-control, self-
direction, autonomy and empowerment. It is believed that employees enjoy their
mental and physical work duties. It is also believed that if given the chance
employees have the desire to be creative and forward thinking in the workplace.
There is a chance for greater productivity by giving employees the freedom to
perform at the best of their abilities without being bogged down by rules.

Maslow's hierarchy
 Madhu.T.K, Kannur
Maslow's hierarchy of needs is a theory in psychology, proposed by Abraham
Maslow
Self-Actualization – Acceptance of facts, problem solving, creativity, morality
Esteem – Self-esteem, confidence, achievement, respect of others, respect by
others
Love/Belonging – Friendship, family , sexual intimacy
Safety - security of employment, of family, of resources, of morality, of health
Physiological – breathing, food, water, sex, sleep, excretion

Deficiency needs

The first four layers the pyramid are what Maslow called "deficiency needs" or
"D-needs": if they are not met, the body gives no indication of it physically, but the
individual feels anxious and tense. The deficiency needs are: survival needs,
safety and security, love and belonging, and esteem.

Physiological needs

These are the basic human needs for such things as food, warmth, water, and
other bodily needs. If a person is hungry or thirsty or their body is chemically
unbalanced, all of their energies turn toward remedying these deficiencies and
other needs remain inactive. Maslow explains that "Anyone who attempts to
make an emergency picture into a typical one and who will measure all of man's
goals and desires by his[her] behavior during extreme physiological deprivation,
is certainly blind to many things. It is quite true that man lives by bread alone —
when there is no bread".[1]

The physiological needs of the organism (those enabling homeostasis) take first
precedence. These consist mainly of (in order of importance):

 Breathing
 Drinking
 Eating
 Excretion
 Sex

If some needs are not fulfilled, a person's physiological needs take the highest
priority. Physiological needs can control thoughts and behaviors and can cause
people to feel sickness, pain, and discomfort.

Safety needs

With their physical needs relatively satisfied, the individual's safety needs take
over and dominate their behavior. These needs have to do with people's yearning
for a predictable, orderly world in which injustice and inconsistency are under
control, the familiar frequent and the unfamiliar rare. In the world of work, these
safety needs manifest themselves in such things as a preference for job security,
 Madhu.T.K, Kannur
grievance procedures for protecting the individual from unilateral authority,
savings accounts, insurance policies, and the like.

For the most part, physiological and safety needs are reasonably well satisfied in
the "First World". The obvious exceptions, of course, are people outside the
mainstream — the poor and the disadvantaged. If frustration has not led to
apathy and weakness, such people still struggle to satisfy the basic physiological
and safety needs. They are primarily concerned with survival: obtaining adequate
food, clothing, shelter, and seeking justice from the dominant societal groups.

Safety and Security needs include:

 Personal security from crime

 Financial security
 Health and well-being
 Safety net against accidents/illness and the adverse impacts

Social needs

After physiological and safety needs are fulfilled, the third layer of human needs
is social. This psychological aspect of Maslow's hierarchy involves emotionally-
based relationships in general, such as:

 friendship
 intimacy
 having a supportive and communicative family

Humans need to feel a sense of belonging and acceptance, whether it comes

from a large social group, such as clubs, office culture, religious groups,
professional organizations, sports teams, gangs ("Safety in numbers"), or small
social connections (family members, intimate partners, mentors, close
colleagues, confidants). They need to love and be loved (sexually and non-
sexually) by others. In the absence of these elements, many people become
susceptible to loneliness, social anxiety, and Clinical depression. This need for
belonging can often overcome the physiological and security needs, depending
on the strength of the peer pressure; an anorexic, for example, ignores the need
to eat and the security of health for a feeling of control and belonging.

Esteem needs

All humans have a need to be respected, to have self-esteem, self-respect, and

to respect others. People need to engage themselves to gain recognition and
have an activity or activities that give the person a sense of contribution, to feel
accepted and self-valued, be it in a profession or hobby. Imbalances at this level
can result in low self-esteem or inferiority complexes. People with low self-
esteem need respect from others. They may seek fame or glory, which again
depends on others. It may be noted, however, that many people with low self-
esteem will not be able to improve their view of themselves simply by receiving
 Madhu.T.K, Kannur
fame, respect, and glory externally, but must first accept themselves internally.
Psychological imbalances such as depression can also prevent one from
obtaining self-esteem on both levels.

Growth needs

Though the deficiency needs may be seen as "basic", and can be met and
neutralized (i.e. they stop being motivators in one's life), self-actualization and
transcendence are "being" or "growth" needs (also termed "B-needs"); i.e. they
are enduring motivations or drivers of behavior.

Aesthetic needs

Based on Maslow's beliefs, it is stated in the hierarchy humans need beautiful

imagery or something new and aesthetically pleasing to continue towards Self-
Actualization. Humans need to refresh themselves in the presence and beauty of
nature while carefully absorbing and observing their surroundings to extract the
beauty the world has to offer.

Criticisms

While Maslow's theory was regarded as an improvement over previous theories

of personality and motivation, it had its detractors. For example, in their extensive
review of research which is dependent on Maslow's theory, Wahba and
Bridgewell[5] found little evidence for the ranking of needs Maslow described, or
even for the existence of a definite hierarchy at all. A study conducted in 2002
forwards this thought, claiming: "the hierarchy of needs is nothing more than a
fool's daydream; there is no possible way to classify ever-changing needs as
society changes"[6]. Chilean economist and philosopher Manfred Max Neef has
also argued fundamental human needs are non-hierarchical, and are
ontologically universal and invariant in nature - part of the condition of being
human; poverty, he argues, is the result of any one of these needs being
frustrated, denied or unfulfilled.

Frederick Irving Herzberg (1923 - 2000) was a noted psychologist who became
one of the most influential names in business management. He is most famous
for introducing job enrichment and the Motivator-Hygiene theory.

Herzberg Motivation Theory

Herzberg proposed the Motivation-Hygiene Theory, also known as the Two factor
theory (1959) of job satisfaction. According to his theory, people are influenced
by two factors:
 Madhu.T.K, Kannur
 Satisfaction, which is primarily the result of the motivator factors. These
factors help increase satisfaction but have little effect on dissatisfaction.
 Dissatisfaction is primarily the result of hygiene factors. These factors, if
absent or inadequate, cause dissatisfaction, but their presence has little
effect on long-term satisfaction

Motivator Factors

 Achievement
 Recognition
 Work Itself
 Responsibility
 Promotion
 Growth

Hygiene Factors

 Pay and Benefits

 Company Policy and Administration
 Relationships with co-workers
 Physical Environment
 Supervision
 Status
 Job Security

Provident Fund Act

Provident Fund Act 1952

12% from Employee &
12% from employer – In this 12% for pension scheme (Pension Scheme Act
1995) it is 8.33% & employee 3.67%
Admin Charges 1.10% + Employee Deposit Linked Insurance Scheme (EDLI)
(PF Act 1976) + 0.50% and Admin Charges +.01%
Statutory Forms
Provident Fund:-
 Form 5: Employees qualifying for PF for first time (Month Wise)
 Form 10 : Employees leaving the service (Month Wise)
 Form 12A: Statement of contribution (Monthly)
 Form 3A: Contribution card for specific currency period
(Employee wise)
 Form 6A: Annual Statement of contribution (Company Wise)
 Declaration: By the employee
 Form 2: Nomination and Declaration
 Form 19: To be used by a major member of employees
 Madhu.T.K, Kannur
 Form 13: PF Transfer
 Form 10C: Claiming withdrawal Benefit/Scheme certificate

Employee State Insurance Scheme

SI - ESI Act 1948

6.50 – Employee – 4.75 ; Employer – 1.75
Workers, covered under the ESI Act, are required to pay contribution towards the
scheme on a monthly basis contribution period means a six-month time span
from 1 April to 30 October and 1
November to 31 March. Thus, in a financial year there are two contribution
periods of six months duration. Cash benefits under the scheme are generally
linked with contribution paid. The benefit period starts their months after the
closure of a contribution period,
1 April to 30 September 1 January to 30 June of the following year
1 October to 31 march 18 July to 31 December
Contribution period corresponding benefit period
1 April to 30 September 1 January to 30 June of the following year
1 October to 31 march 18 July to 31 December

Medical Benefits-

Complete medical care for the employee and family members are available from
day one of entering into insurable employment.

Old Age Medical Care-

If a worker remains covered under the scheme for five years immediately before
his retirement, he and his spouse is entitled to medical care from ESI Institutions
on payment of rupees 120/ year. This facility is also available to those workers
who leave the organisation because of permanent disability.

Sickness Benefits (Cash)-

If a worker falls sick and needs absence from work, he is provided sickness
benefit in cash equivalent to 60% of his wage for the period of absence, as
certified by an authorised medical officer. This benefit is provided, subject to his
paid contribution for at least 78 days in a contribution period of 6 months.

Provision for women workers in pregnancy-

Maternity benefit in cash equivalent to full wage of 12 weeks in case of

confinement and 6 weeks in case of miscarriage is provided. This is extendable
by further one month in case of sickness arising out of pregnancy. To avail this
benefit the insured woman should have paid contribution for atleast 70 days in
preceding two contribution periods of one year.
 Madhu.T.K, Kannur

Disablement Benefit (Cash)-

In case of an accident while on duty, the insured worker suffering from any
temporary disablement are provided temporary disablement benefit@ about 75%
of wage till the injury heals. If it turns to be a permanent disability then it is paid in
cash depending upon the extent of loss of their earning capacity. This benefit is
available from day one of the employment

Dependants Benefit-

If a worker dies due to any accident/occupational disease sustained in the course

of his employment, his/her dependents are provided dependents benefit @ about
75% of wages of the deceased worker.

Difference between Wage and salary

Wage is a compensation workers receive for their labor. Wage is paid on hourly
basis
Salary is a form of periodic payment from employer to employee

Human Resource Management

1. Planning & Budgeting

2. Selection / Recruiting
3. Training and Development
4. Performance Evaluation and Management
5. Retention / Redundancy
6. Industrial and Employee Relations
7. Record keeping of all personal data.
8. Compensation, pensions, bonuses etc in liaison with Payroll
9. Confidential advice to internal 'customers' in relation to problems at work &
10. Career development /Organization Development (OD)

Workforce planning
Strategic Workforce Planning involves analyzing and forecasting the talent
that companies need to execute their business strategy, proactively rather
than reactively, it is a critical strategic activity, enabling the organization to
identify, develop and sustain the workforce skills it needs to successfully
accomplish its strategic intent whilst balancing career and lifestyle goals of
its employees.
 Madhu.T.K, Kannur
Strategic Workforce Planning is a relatively new management process that
is being used increasingly to help control labour costs, assess talent
needs, make informed business decisions, and assess talent market risks
as part of overall enterprise risk management. Strategic workforce
planning is aimed at helping companies make sure they have the right
people in the right place at the right time and at the right price

Through Strategic Workforce Planning organizations gain insight into what

people the organization will need, and what people will be available to
meet those needs. In creating this understanding of the gaps between an
organization’s demand and the available workforce supply, organizations
will be able to create and target programmes, approaches and develop
strategies to close the gaps.

Recruitment (sometimes separated into attraction and selection)

Recruitment refers to the process of sourcing, screening, and selecting people
for a job or vacancy within
 Induction and Orientation

Skills management
Skills Management is the practice of understanding, developing and
deploying people and their skills. Well-implemented skills management
should identify the skills that job roles require, the skills of individual
employees, and any gap between the two.

Training and development

In organizational development, the related field of training and
development (T & D) deals with the design and delivery of learning to
improve performance, skills, or knowledge within organizations.

In some organizations the term Learning and Development is used instead

of Training and Development in order to emphasise the importance of
learning for the individual and the organization. In other organizations, the
term Human Resource Development is used.

Organization development is the process through which an organization

develops the internal capacity to most efficiently and effectively provide its
mission work and to sustain itself over the long term. This definition
highlights the explicit connection between organizational development
work and the achievement of organizational mission. This connection is
the rationale for doing OD work. Organization development, according to
Richard Beckhard, is defined as: a planned effort, organization-wide,
 Madhu.T.K, Kannur
managed from the top, to increase organization effectiveness and health,
through planned interventions in the organization's 'processes', using
behavioural science knowledge.

According to Warren Bennis, organization development (OD) is a complex

strategy intended to change the beliefs, attitudes, values, and structure of
organizations so that they can better adapt to new technologies, markets,
and challenges.

Personnel administration
Compensation in wage or salary
Time management
Travel management (sometimes assigned to
accounting rather than HRM)
Payroll (sometimes assigned to accounting rather
than HRM)
payroll is the sum of all financial records of salaries, wages, bonuses, and
deductions

Employee benefits administration

Employee benefits and (especially in British English) benefits in kind (also
called fringe benefits, perquisites, perqs or perks) are various non-wage
compensations provided to employees in addition to their normal wages or
salaries. Where an employee exchanges (cash) wages for some other form of
benefit, this is generally referred to as a 'salary sacrifice' arrangement. In most
countries, most kinds of employee benefits are taxable to at least some degree.

Fringe benefits can include, but are not limited to: (employer-provided or
employer-paid) housing, group insurance (health, dental, life etc.), disability
income protection, retirement benefits, daycare, tuition reimbursement, sick
leave, vacation (paid and non-paid), social security, profit sharing, funding of
education, and other specialized benefits.

The purpose of the benefits is to increase the economic security of employees.

The term perqs or perks is often used colloquially to refer to those benefits of a
more discretionary nature. Often, perks are given to employees who are doing
notably well and/or have seniority. Common perks are company cars, hotel stays,
 Madhu.T.K, Kannur
free refreshments, leisure activities on work time (golf, etc.), stationery,
allowances for lunch, and—when multiple choices exist—first choice of such
things as job assignments and vacation scheduling. They may also be given first
chance at job promotions when vacancies exist.

Personnel cost planning

Performance appraisal
Performance appraisal, also known as employee appraisal, is a method by
which the job performance of an employee is evaluated (generally in terms of
quality, quantity, cost and time). Performance appraisal is a part of career
development.

Performance appraisals are a regular review of employee performance within

organizations.

Generally, the aims of a scheme are:

 Give feedback on performance to employees.

 Identify employee training needs.
 Document criteria used to allocate organizational rewards.
 Form a basis for personnel decisions: salary increases, promotions,
disciplinary actions, etc.
 Provide the opportunity for organizational diagnosis and development.
 Facilitate communication between employee and administrator.
 Validate selection techniques and human resource policies to meet federal
Equal Employment Opportunity requirements.

A common approach to assessing performance is to use a numerical or scalar

rating system whereby managers are asked to score an individual against a
number of objectives/attributes. In some companies, employees receive
assessments from their manager, peers, subordinates and customers while also
performing a self assessment. This is known as 360° appraisal.

The most popular methods that are being used as performance appraisal
process are:

Management by objectives (MBO)

Management by Objectives (MBO) is a process of agreeing upon

objectives within an organization so that management and employees
agree to the objectives and understand what they are in the organization.
 Madhu.T.K, Kannur
MBO introduced the SMART criteria: Objectives for MBO must be SMART
(Specific, Measurable, Achievable, Relevant, and Time-Specific).

360 degree appraisal

360-degree feedback, also known as 'multi-rater feedback', 'multisource
feedback', or 'multisource assessment', is employee development feedback that
comes from all around the employee. "360" refers to the 360 degrees in a circle.
The feedback would come from subordinates, peers, and managers in the
organizational hierarchy, as well as self-assessment, and in some cases external
sources such as customers and suppliers or other interested stakeholders. It may
be contrasted with upward feedback, where managers are given feedback by
their direct reports, or a traditional performance appraisal, where the employees
are most often reviewed only by their manager.
Behavioral Observation Scale (BOS)

Behaviorally Anchored Rating Scale (BARS)

Retention Strategies
1. Communications - Getting your people to care
2. Set Clear expectations
3. Proper rewarding
4. The quality of the supervision an employee receives is critical to employee
retention. People leave managers and supervisors more often than they leave
companies or jobs
5. The ability of the employee to speak his or her mind freely within the organization
– feedback
6. Talent and skill utilization is another environmental factor your key employees
seek in your workplace
7. The perception of fairness and equitable treatment is important in employee
retention
8. A career-oriented, valued employee must experience growth opportunities
within your organization.
9. Take time to meet with new employees to learn about their talents, abilities
and skills. Meet with each employee periodically.
10. No matter what the circumstances are but never, never, ever threaten an
employee's job or income

Customer Acquisition and Talent Acquisition

Recruitment is the very first step in HRM.
Recruitment is a positive action which results in receiving lots of applications for a single job.
Selection is the end result of recruitment. If we follow the process of recruitment thoroughly,
then we are sure to achieve the end result of “selecting the right candidate” at the right time
and at the right cost.
 Madhu.T.K, Kannur
After completing my MBA (in HR), I tried hard enough to find a job in core HRM, but I was
only getting called for recruitment jobs. I had no choice other than to take up the role of
recruiter with Artech Information Systems (formerly known as Softek India Pvt. Ltd).

Difference between Traditional Recruitment “Vanilla

recruitment” and Talent Acquisition -Downloaded from cite hr
The biggest constraint to pursuing growth anywhere is lack of talent availability.
Getting the talent and retaining them is a major challenge for all organizations
today. It is almost equivalent to acquiring a customer and retaining the customer
throughout. It is becoming intensely competitive.

Customer acquisition describes overall strategic process around identifying market

segments, market sectors, targeting client prospects, running direct campaigns,
selling and receiving the order. Talent acquisition involves all the sub processes
around finding, attracting and engaging highly talented individuals into your
organization.

How is this different from “plain vanilla” recruitment?

Talent acquisition is part of a broader strategic approach in the quest to gain and
sustain a competitive advantage. Other aspects include talent development and
retention which are primarily inward facing, whilst the former is outward looking.

Traditional recruitment or “vanilla recruitment” occurs when a vacancy arises when

an individual resigns or retires or promoted. Panic sets in, if no suitable internal
candidate is found. The organizations recruit under pressure. Compromised are made
“under the bus syndrome”
Talent acquisition is to get away from the “fill in the box” thinking to one that is more
pro-active and much closer to building the skill sets required to achieve success.

Traditional recruitment is filling open positions.

Talent acquisition takes a long term view of not only filling positions of today, but
also identify talents for future openings

These future positions may be identifiable by looking at the succession management

plan or by analyzing the attrition.

In highly advanced talent acquisition process, organizations recruit today for

positions that do not even exist today

CONSUMER PRICE INDEX (CPI)

A consumer price index (CPI) is a measure of the average price of consumer goods and
services purchased by households. It is one of several price indices calculated by national
statistical agencies. The percent change in the CPI is a measure of inflation. The CPI can
be used to index (i.e., adjust for the effects of inflation) wages, salaries, pensions, or
regulated or contracted prices.

Gratuity
PAYMENT OF GRATUITY ACT, 1972
 Madhu.T.K, Kannur
Gratuity = (Basic/26 *15)*No. of years
15 DAYS SALARY FOR 1 YEAR
MONTH IS COMPRISED OF 26 WORKING DAYS NOT 30 DAYS
IT MEANS 57.69 % OF MONTHLY BASIC IS PAYABLE (15*100/26)
OR
0.58 MONTHS BASIC FOR 1 YEAR
OR
0.58*5 MONTHS BASIC FOR 5 YEARS
OR
2.9 MONTHS BASIC FOR 60 MONTHS (12 X 5)

NOW 2.9 IS HOW MUCH %AGE OF 60 ?

2.9 X 100/ 60 = 4.83 %

HENCE GRATUITY SHOULD BE CALCULATED @ 4.83% AND NOT 4.16%

Bonus Act
PAYMENT OF BONUS ACT, 1965
The minimum bonus which an employer is required to pay even if he suffers losses
during the accounting year or there is no allocable surplus is 8.33 % of the salary
during the accounting year
Every employee receiving salary or wages upto RS. 3,500 p.m. and engaged in any kind
of work whether skilled, unskilled, managerial, supervisory etc. is entitled to bonus for
every accounting year if he has worked for at least 30 working days in that year.
The bonus should be paid in cash within 8 months from the close of the accounting year

Minimum Wages Act

Minimum Wages Act 1948

Johari window
Johari window divides personal awareness into 4 quadrants.
1. Open quadrant- Known to self and known to others.
2. Blind quadrant- Known to others but not known to self
3. Hidden quadrant- Known to self but not known to others.
4. Unknown quadrant- Not known to self nor to others.
 Madhu.T.K, Kannur
Provident Fund Full notes

1. The Employees Provident Fund Scheme, 1952

2. The Employees Family Pension Scheme, 1971
3. The Employees Deposit-Linked Insurance Scheme, 1976

Calculations: P.F from Basic

Employee: 12% (P.F)

Employer: 3.67% Provident Fund (A/c 1) + 8.33% Pension (A/c 10) + 1.10%
Admin Charges on PF (A/c 2) + 0.50% EDLI (A/c 21) + 0.01% Admin Charges
on EDLI (A/c 22)=>13.61% on basic

* Pension (8.33% or 541/- which ever less)

Regular activities:

1. Time of joining: Form 2: Employee should fill, at the time of joining,

nomination & Declaration form.
Form 2, includes the following

· Name of the employee

· Parent/spouse name
· Date of Birth
· Sex
· Marital Status
· AC No
· Address
· Names, address, relation, Share for each etc
Also for changing nominee names Form 2 is used. His eligibility begins on
the date of joining the firm. Submitted along with form-5.

2. Withdrawers/Dead : Form 10c (pension) & 19 PF

Form 19 is used for withdrawing PF amount. Employee and parent/spouse

name, name of the establishment, Ac no, Reasons for leaving service,
Contribution for current financial year etc. Form 10 is used for pension
withdrawal.

Form 19: Employee should fill, all information like Bank a/c, name, DOJ…
with signature and then
Employer like present year contributions, DOR…for PF Fund – Due date:
After 60 Days
of Resignation)
 Madhu.T.K, Kannur
Form 10C: Employee should fill, all information like Bank a/c, name, DOJ…
with signature and
then employer like present year contributions, DOR…for Pension Due date:
After 60 Days of Resignation

3. Transfer : Form 13

Form 13 is used for transferring an employee AC from one company to

another. Both employer and employee have to specify his name, PF AC no,
Position etc and submitted with a covering letter (consolidated list of
employees). Photocopy of the above is kept in PF file for transfer.

4. Employee register 3A, 6

5. For advance : Form 31

6. In case of employee expired / dead :

Process details

Form 10 D (For claiming benefits under Pension)

Employee should fill like Expired/late employee name, nomination name,

details, Nomination Bank a/c…for monthly Pension

Form 20 (For Claiming EPF Contributions)

Employee should fill like Expired/late employee name, nomination name,

details,
Nomination Bank a/c…for withdrawal of PF Fund (Incase of Death of a
member

Form 5 IF (For Claiming EDLI benefits, nominee will get benefit)

EDLI for death case, nominee will get benefit.

7. Form 9 (Register of employers - Application for review filed under)

Monthly Remittance / Challans:

1. Challans every month before 15th (4 copies/ quadruplicate)

2. All A/c (A/c Nos-1,2,10,21&22)
 Madhu.T.K, Kannur
3. To Bank
4. both employer & employee contribution

· Account group no eg Ma mu 1246 (state-first two alphabets /city/acc no:

of the company)
· Month
· Total number of subscribers
· Total wages due for each account (wages on which calculations are done)
· Each accounts totals (consolidated amount with employer and employee
share)
· Name of the establishment and address
· Name and signature of the depositor
· Name of the bank, mode and date of remittance etc
Challan is submitted tp PF office along with form-12A every month.

Monthly returns:

1. Form 12 A, with all information and employees list of contribution before

25th
2. With Form 5 (new joiners list) , form 10 (resigned employees list),
challans copy
3. Information about last month employees, new & resigned employees &
this month staff.

Form 5

· Name of the establishment and address

· Month
· Code no: of the factory
· A c no:
· Name of new employees
· Fathers or Husband name in case of married women
· Date of birth
· Sex
· Date of joining the fund
· Total period of pervious services as on the date of joining the fund

Form 10

· Name of the establishment and address

· Month
· Code no: of the establishment
· A c no:
· Name of member who is leaving
· Fathers or Husband name in case of married women
 Madhu.T.K, Kannur
· Date of leaving service
· Reasons for leaving service
· Signature of authorized officer and stamp of the establishment
Cross checking the above is done with the salary statement which includes
the number and name all current employees.

Form 12 A:

· Name of the establishment and address

· Currency period and month (April yr to march yr)
· Statutory rate of contribution (12%)
· Group code (NA for unexampled establishment. Establishment having more
than 1000 have to keep a PF trust and have to specify the group code)
· Total wages due for each account (wages on which calculations are done)
· Amount of contribution and amount remitted (consolidated amount with
employer and employee share)
· Date of remittance
· Total number of subscribers for the current month.
· Name and address of the bank in which the amount is remitted.
· Details of subscribers for E.P.F, PF, EDLI
--No of subscribers as per last month
--No of new subscribers (vide Form 5)
--No of subscribers left service (vide Form 10)
--Total no of subscribers (After adding and subtracting the new and retired
employees with,
the number should tally with monthly list of employees)

Cross checking the above is done with the salary statement.

Annul returns:

1. Form 3 A (Individual Computation sheet)

2. Form 6 A (Consolidated Annual Contribution Statement)
3. before 30th April every year

Form 6A:

· Currency period and month (April yr to march yr)

· Name of the establishment and address
· Code no: of the establishment
· No: of member voluntary contributing at a higher rate
· AC No of each employee followed by their name, annual salary, annual
contribution, employer contribution, refund of advance, rate of voluntary
contribution.
· This grand total should tally with all form 12 A and challans totals.
 Madhu.T.K, Kannur
Form 3A: Register

This form is filled up for each employee stating his each monthly salary,
contribution, Employer share, Refund of advance, No of days/period of non
contributing service, if any (eg. unauthorised leave). If the employee is
resigned during that financial year then the date of leaving service and
reasons for leaving service should be specified in this form. Using Form 3A,
form 6 A is filled up and crosschecking is done with all challans and 12 A
forms.

* Muster Roll * Wage Register * Inspection Book * Cash Book, Voucher &
Ledger * PF work sheet

Forms:

Form 3: Contribution Cards - Individual Computation sheet contains all PF

amts month-wise.
Form 3 A: Contribution Cards – Form
Form 4: Contribution card for employees other than monthly paid
employees - Form
Form 5 A: Return of Ownership to be sent to the Regional Commissioner -
Form
Form 6: Return of the Contribution Cards sent to the Commissioner on the
expiry of the period
of currency – Form
Form 6 A: Consolidated Annual Contribution Statement - Consolidated
Computation Sheet,
contains total employees list, there total half yearly information. Form 6 is
top sheet
and 6A is attachments.
Form 9: Register of employees - Application for review filed under.

Register 3: Individual Computation, there Gross salary, Basic, DA,

attendance, PF, Pension
Information maintains month-wise. Form 3 is top sheet and 3A is
attachments.

ESI: Employees’ State Insurance Act, 1948

Calculations: ESI from Gross

Employee: 1.75%
Employer: 4.75%
 Madhu.T.K, Kannur

Coverage: All the employees Drawing wages up to Rs.10, 000/- per month
engaged either directly or thru’ contractor.

Regular activities:

1. Time of joining/at any time:

Form 01 : Employer Registration Form

Form 1 : Employee should fill, at the time of joining, Declaration form with
postcard size
Photograph – due date with in 10 days after the employees joins.
Form 1 A : Family Declaration Form, family details
Form 1 B : Changes in family declamation form, like family members…
Form 3 : Return of declaration form (Covering Letter) 3A continuation
sheet/card,
Employer should fill. Male and female separately
Form 37 : Employer should fill Certificate of Re-Employment / Continuing
employment. With Contribution period begin and end dates.
Form 105 : Employer should fill, Certificate of Entitlement.
Form 72 : Employee should fill, Application /form for changes in particular
of insured
Person. Like local office, Dispensary/Address changes.

Register 7 : Individual Computation, there Gross salary, Days, ESI amt.

Information maintains month-wise.

Cards: Temporary & Permanent Cards.

Monthly Remittance / Challans:

1. Challans every month before 21st (3 copies/ quadruplicate)

2. Submit to Bank
3. Both employer & employee contribution
4. Cheq details.

Half year returns:

Contribution period:
1st April to 30th September.
1st October to 31st March

***42 days after closing Contn. Period (before Nov 11th. And next before
May 12th)
 Madhu.T.K, Kannur

1. Form 7 (Register of Employees)

2. Form 6A: Consolidated Computation Sheet, contains total employees list,
there total half
Yearly Information. Form 6 is top sheet and 6A is attachments. (Statement
of
Advance Payment of Contributions)
2. In Oct & April
3. With all paid challans

Need to maintain:

* Muster Roll * Wage Register * Inspection Book * Accident Register * Cash

Books, Vouchers & Ledgers * Paid Challans, RDF and Declarations
* Returns copies