Human Resource Management Unit 1 Introduction

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Human Resource Management Unit 1 Introduction

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Human Resource Management Unit 1 Introduction Notes cover all the exercise questions in UGC Syllabus. Human Resource Management Unit 1 Introduction provided here ensures a smooth and easy understanding of all the concepts. Understand the concepts behind every Unit and score well in the board exams.

Introduction

HUMAN RESOURCE MANAGEMENT

1. What is Management?

Ans: Management is guiding human and physical resources into dynamic organization units which attain their objectives to the satisfaction of those served and with a high degree of morale and sense of attainment on the part of those rendering service.

2. What is Personnel?

Ans: The term ‘personnel’ means staff of an organization i.e., people engaged in particular service, profession etc.

3. What do you mean by Personnel Management?

Ans: Personnel management may be defined as the art of procuring, developing and maintaining competent workforce to achieve organizational goals efficiently.

4. Mention two operative functions of Human Resource Management.

Ans: Two operative functions of human resource management are:

(a) Procurement of personnel.

(b) Development and training of personnel.

5. Mention two important changes which takes place in the field of Human Resource Management?

Ans: The two important changes in the field of human resource management are:

(a) Increase in the size of workforce.

(b) Changing composition of workforce.

6. Mention any two general objectives of Human Resource Management. 

Ans: Two general objectives of human resource management are:

(a) Working relationship between employer and employees.

(b) Effective moulding of human resources.

7. State any four specific objectives of Human Resource Management?

Ans: The four specific objectives of human resource management are:

(a) Selection.

(b) Orientation.

(c) Training.

(d) Better working conditions.

8. What do you mean by Human Resource Development?

Ans: HRD is a system and process involving organized series of learning activities design to produce behavioural changes in human beings in such a way that they acquired desired level of competent for present and future role.

9. Mention two functions of HRM.

Ans: Two HRM functions are:

(i) Recruitment and Selection: Recruitment of candidates is the function preceding the selection, which brings the pool of prospective candidates for the organization so that the management can select the right candidate from this pool.

(ii) Job Analysis and Design – Job analysis is the process of describing the nature of a job and specifying the human requirements like qualification, skills, and work experience to perform that job. Job design aims at outlining and organizing tasks, duties, and responsibilities into a single unit of work for the achievement of certain objectives.

10. Write any two important uses of Human Resource Information System”.

Ans: The two important uses of human resource information system are:

(i) Human Resource Planning and Analysis.

(ii) Human Resource Development.

11. State the features of HRD.

Ans: The following are the features of HRD:

(i) Planned and systematic approach.

(ii) Continuous process.

(iii) Interdisciplinary approach.

(iv) Both micro and macro aspects.

12. Mention the two levels of HRD.

Ans: The two levels of HRD are:

(i) Micro level.

(ii) Macro level.

13. Mention some of the instruments or mechanisms of HRD.

Ans: The instruments or mechanism of HRD are:

(i) Performance and potential appraisal.

(ii) Counselling and monitoring.

(iii) Quality of working life.

(iv) Quality circle.

(v) Development of team work.

(vi) Training.

14. Write any two qualities of a good HR manager?

Ans: The two qualities of a good personnel manager are:

(a) Sense of social responsibility.

(b) Capacity of leadership.

15. What is Human Resource Policies?

Ans: A policy may be defined as a statement or general understanding which provides as guidance to decision-making to members of an organization in respect of any course of action. Personnel policies are well recognised intentions of the management with respect to manpower management in the organization. Personnel policies indicate the objectives or the established course of action to establish management’s relationship with the employees of the organization.

16. Write any two principles of Personnel Policy.

Ans: Two principles of personnel policies are:

(a) Principle of common interest.

(b) Principle of recognition of work.

17. Mention two objectives of Personnel Policy.

Ans: The two objectives of personnel policies are:

(a) Maximum individual development and satisfaction.

(b) Maximum use of resources.

18. What is Human Capital?

Ans: Human capital is the stock of habits, knowledge, social and personality attributes (including creativity) embodied in the ability to perform labour so as to produce economic value.

19. What is Human Resource Information system?

Ans: Human resource information system (HRIS) is a system designed to supply information to the human resource management, to help them in managing the people effectively and efficiently. This system can be built around electronic computers in case of big organizations.

20. Mention the approaches or methods of valuation of Human Resource?

Ans: The methods of valuation of Human Resource are: 

(i) Management by objective. 

(ii) Ratio Analysis.

(iii) Personnel Productivity.

(iv) Personnel Reports and Budget.

1. State the type of information generated by HRIS. 

Ans: There are five types of human resources information system:

(i) Operational HRIS: The operational HRIS category includes tools that assist HR staff and people managers with hiring, promotions, transfers, and other talent management needs. Operational HRIS solutions focus on improving existing systems by making them more efficient and impactful. 

(ii) Strategic HRIS: Modules and functions within strategic HRIS systems help with analysis, decision-making, and goal-setting in relation to human capital management. Strategic HRIS solutions often help companies plan for growth and expansion by finding and retaining the right talent.

(iii) Tactical HRIS: The tactical HRIS category targets efficiency and compliance for internal workforce management. The tools and functionalities that fall in this category help HR leaders make decisions on how to best use existing resources for functions such as compensation, recruiting, training, and benefits.

(iv) Comprehensive HRIS: As the name implies, a comprehensive HR information system functions as a one-stop shop for storing any information needed to perform nearly all HR management functions. It serves as a central repository for a wider range of data that supports operational, strategic, and tactical HR functions combined.These three functions don’t operate in a vacuum, rather, they influence each other in different ways.

(v) Limited-scope or specialized HRIS: In contrast to a comprehensive HRIS, a limited-function HRIS focuses on one or a few core information systems. They typically support a narrow list of HR functions, such as payroll and benefits administrations and are a better investment for businesses’ with specific tactical needs that can’t be addressed by an all-in-one solution. No matter what HR function(s) a company focuses on with a limited-function HRIS, an employee information system is essential to the HR software.

2. “Managers are not born but made”. Elucidate.

Ans: There is a traditional concept that managers are born like poets artists and not made. Till the origin of management as a science, management was regarded as a sole quality or inherited quality of the successor. No other person, how so ever intelligent he was, considered to be the successful manager except the person who was next in the hierarchy. Today, this view is out of date. 

Now a days, management has become a profession. Hence managers are made not born. There are certain principles of management which every manager is supposed to follow. For a manager, it is very necessary to be acquainted with the principle of management and their application. Today, persons can be trained to meet the challenges of the difficult task of management. Training can be imparted to such persons who are to be appointed in managerial positions. Theoretical knowledge of the principles of management can be imparted at the school level. Practical knowledge may be given on the job where he has an opportunity to apply, ratify and develop these principles by practice. Experience can train the man but it is a slow and wasteful process.

With the help of the above discussion, it can be concluded that the successful managers are not born but made by imparting them good training.

3. Mention five essential principles of a good HR manager. Discuss the duties of a HR Manager. 

Ans: Normally, a personnel department enjoys both “line” and “staff” positions in an organization. Personnel manager should follow the following principles in drawing his organization:

(i) The organization should be kept as simple as possible so that it can be easily understood by the workers.

(ii) There should be unity of command i.e., each subordinate should have one superior whose command he has to obey.

(iii) Responsibility and authority of each supervisor should be clearly defined in writing.

(iv) Responsibility should always be coupled with corresponding authority.

(v) The organization should be flexible, so that it can be adjusted to changing conditions.

The duties of a personnel Manager are:

(i)  Supervision: A personnel manager supervises the employees in the following matters.

(a) Setting disputes

(b) Ensuring housing and recreational facilities.

(c) Granting leave with wages.

(d) Implementing safety, health and welfare programmes.

(ii) Favourable attitude towards the employees: He should cope up with the employees and call for their active participation in the decision making.

(iii) Ability to take decisions: He should have the ability to take quick decisions as and when required.

(iv) Imparting adequate training: He should undertake necessary steps to impart professional training to the employees. A sound training leads to a sense of security and job satisfaction among the employees.

(v) Compliance with law: The manager must assure that the provisions framed in these acts have been properly complied with.

4. Highlight the characteristics of HR policy. Why should HR policies be in writing?

Ans: Following are the characteristics of personnel policies:

(i) A personnel policy is formulated in the context of organizational objectives.

(ii) A policy may be in writing or it has to be interpreted from the behaviour of organization members particularly people at the top.

(iii) Policy is formulated through the various steps in the decision making process.

(iv) A policy provides guidelines to the members in organisation for choosing a course of action. Thus policy restricts their freedom in choosing their action.

(v) Policy formulation is a function of all managers. However, top management has important role in policy-making.

(vi) Policy statement should be positive, clear and easily understood by everyone in the organization so that what management wants is clear.

One of the important guidelines for formulating personnel policies is that policies should be in writing.Following are the advantages of a written policy:

(i) It ensures uniformity and consistency of administration.

(ii) It ensures continuity.

(iii) It promotes effective delegation of authority.

(iv) It promotes management by exception.

(v) It promotes planning.

(vi) It promotes team work.

(vii) It promotes clarity and understanding.

(viii) It is a source of training and orientation.

(ix) It can be used as a yardstick for control.

5. Elucidate the arguments against putting policies in writing?

Ans: Following are the arguments or disadvantages of a written policy:

(i) Policy manuals cost too much to produce.

(ii) Policy manuals are not frequently revised and kept-up-to-date. Many policies tend to remain in them long after they are absolete.

(iii) Policy manuals lead to rigidity in administration, curb creative thinking and interfere with executive development by preventing experimentation at lower levels of management.

Thus, personnel policy must be in writing. Arguments put forth against putting the policy in writing are not strong.

6. What are the various types of HR policies? Write down the needs of HR policies.

Ans: Policies may be classified as under:

(a) On the basis of sources of policy: Following are the types of policies. The basis of sources of policy.

(i) Originated policy.

(ii) Appealed policy.

(iii) Implied policy.

(iv) Imposed policy.

(b) On the basis of scope of policies: Following are the types of policies on the basis of scope of policies:

(i) General policies.

(ii) Specific policies.

(c) Another classification of policy is major and minor policies:

(i) Major policies.

(ii) Minor policies.

The following are the needs of personnel policies: 

(i) To achieve the objectives of the organization.

(ii) It will lead to uniformity in decision.

(iii) Delegation of authority.

(iv) Better control.

(v) Confidence.

(vi) Motivation.

(vii) Guide to management: Personnel policy provides guidance to management in relation to personnel problems.

7. Write the essential characteristics of HRD. Mention five essential features of Human Resource Management.

Ans: The essential characteristics of HRD may be identified as:

(i) Planned and Systematic Approach: HRD is a planned and systematic approach to the development of people. HRD is a system consisting of several interdependent and interrelated subsystems e.g performance appraisal, training, job enrichment etc.

(ii) Continuous Process: HRD is a continuous and dynamic process which believes in the need for continuous development of personnel to face the innumerable challenges in the functioning of an organization.

(iii) Inter Disciplinary Approach: HRD is an inter disciplinary approach. It uses knowledge drawn from psychology, sociology, anthropology, economics and political science for planning and implementing various programmes for the development of individuals, groups and organisation.

(iv) Both Micro and Macro Aspects: HRD has both micro and macro aspects. At the macro level, HRD is described as the core of all development activities in the sense of improvement of quality of life of people of a nation. At the micro level, HRD involves the improvement in the quality of managers and workers so as to achieve greater quality and higher levels of productivity.

The five essential features of personnel management are as follows:

(i) It is a management of human resources of the enterprise.

(ii) It is concerned with the effective utilization of human resources.

(iii) It is a staff activity requiring special knowledge and skill in human psychology, law and industrial relations.

(iv) It is concerned with the achievement of common goals.

(v) The principles and functions of general management are applicable to this area of management also.

8. What do you mean by human resources management? Give the differences between Human Resource Management and Human Resource Development.

Ans: Human Resources management can be defined as the set of programs, functions and activities designed and performed in order to maximize both employee as well as organizational effectiveness. It is a management function that helps organizations in recruiting, selecting, and training developing and managing its members. HRM is concerned with the management of people in the organization from recruitment to retirement. 

According to Invancevich and Glueck, “HRM is concerned with the most effective use of people to achieve organizational and individual goals. It is the way of managing people at work, so that they give their rest to the organization.

The difference between Human Resource Management and Human Resource Development are as follows:

9. Explain the various significance or importance of HRD. Highlight the points why HRD is essential?

Ans: HRD plays a vital role in the success and growth of an organization in the following ways:

(i) HRD improves team work. Employees become more open towards each other and they also trust each other. In this way the organizational climate also improves a lot.

(ii) HRD promotes organizational effectiveness. Appropriate employee centered policies help the organization achieve its goal more efficiently.

(iii) Performance related rewards help employees realise the importance of utilising their skills fully in the service of organizational goals. The organization’s health and self renewing capabilities improve quite significantly.

(iv) HRD helps the organization in procuring the right people at the right time and in making their effective use.

(v) HRD generates a lot of useful data which facilitates human resource planning and control.

(vi) HRD improves the capabilities of the people by making them better aware of the skills required for job performance and by improving clarity about performance standards.

While introducing HRD is any organization the following requirements must be fulfilled:

(i) An urge and desire on the part of human resource in the organization to find better methods of work.

(ii) Requisite skill, attitudes and ability in the persons engaged in HRD.

(iii) Proper support between the HRD team/department and the key persons in the organization.

(iv) Removal of hurdles and irritants from the organization affecting productivity of the employees.

(v) Involvement of the employees of the organization to get a lot of unwritten information for understanding the dynamics of the organization for developing a HRD programme.

(vi) The need for suggesting the introduction of only such indigenous methods which can be implemented by the HRD section without much cost and resistance. Besides, the need for technical consideration may also be kept in mind.

(vii) Strengthening of human resource information system to keep continuous track of every employee and use performance appraisal, training etc. to inject change in the desired direction.

(viii) HRD to be successful needs revolution in the total concept of management and not merely sporadic and piece meal attempts.

10. What are the two models of HR? What are the various objectives of HRD?

Ans: Two HR models are:

(i) The hard and soft HRM models: Storey distinguished between the ‘hard’ and ‘soft’ versions of HRM. He wrote that: ‘The hard one emphasizes the quantitative, calculative and business-strategic aspects of managing human resources in as “rational” a way as for any other economic factor. By contrast, the soft version traces its roots to the human-relations school; it emphasizes communication, motivation and leadership.’ However, it was pointed out by Keenoy that ‘hard and soft HRM are complementary rather than mutually exclusive practices’. Research in eight UK organizations by Truss indicated that the distinction between hard and soft HRM was not as precise as some commentators have implied. Their conclusions were as follows.

(ii) Contextual model of HRM: The contextual model of HRM emphasizes the importance of environmental factors by including variables such as the influence of social, institutional and political forces that have been underestimated in other models. The latter, at best, consider the context as a contingency variable. The contextual approach is broader, integrating the human resource management system in the environment in which it is developed. According to Martin-Alcázar: ‘Context both conditions and is conditioned by the HRM strategy.”

A broader set of stakeholders is involved in the formulation and implementation of human resource strategies that is referred to by Schuler and Jackson as a ‘multiple stakeholder framework’. These stakeholders may be external as well as internal and both influence and are influenced by strategic decisions.

The various objectives of HRD are:

(i) To provide a comprehensive framework for the overall development of people in the organization.

(ii) To develop the constructive mind and overall personality of each and every person in the organization.

(iii) To develop the capability of each individual in relation to his present and expected future roles.

(iv) To develop and maintain high levels of motivation of employees.

(v) To develop dynamic relationship between each employee and his supervisor.

(vi) The develop the overall health and self renewing capabilities of the total organization.

(vii) To develop the sense of team sprite, team work and inter team collaboration in the organization.

(viii) To generate systematic information about human resources for the purpose of manpower planning, placement, succession planning and the like.

11. What is Human Capital? What is Human Capital Management?

Ans: Human capital is an intangible asset or quality not listed on a company’s balance sheet. It can be classified as the economic value of a worker’s experience and skills. This includes assets like education, training, intelligence, skills, health, and other things employers value such as loyalty and punctuality. The concept of human capital recognizes that not all labour is equal. But employers can improve the quality of that capital by investing in employees- the education, experience, and abilities of employees all have economic value for employers and for the economy as a whole. Human capital is important because it is perceived to increase productivity and thus profitability. So the more a company invests in its employees (i.e., in their education and training), the more productive and profitable it could be.

Human capital management is a practice organizations use to attract, recruit, train, develop and retain the best employees to achieve short-and long-term objectives. The system allows companies to invest in their employees to allow them to contribute at the highest level to the achievement of business goals. Human capital management sees employees as valuable resources that must be harnessed to fulfill their potential. Organizations that depend on employees to achieve most of their objectives allocate resources to grow and develop the core skills and competencies their staff needs to deliver results. Human capital management helps them to identify gaps in their capabilities and focus recruitment efforts towards meeting those needs. This provides more job fulfillment for employees because they get to work in positions that allow them to use their strengths. For the organization, human capital management creates a loyal workforce that helps it accomplish its goals.

12. What does Human Capital Management involve?

Ans: Human capital management focuses on adding value to an organization’s people resources so they can deliver the best results. It covers human resources functions, compensation, performance and other key areas vital to the tactical and strategic vision and mission of a company. Human capital management provides a process for optimizing the performance and efficiency of a company’s staff. It provides an overall strategy to guide talent attraction, recruitment, on-boarding, employee training and development, performance appraisal and feedback.

This system creates an environment that allows individual employees to excel by identifying each person’s skills and competencies and matches employees with a position that allows them to maximize their potential. This allows the company to derive a high return on investment in staff training and improves employee job satisfaction.

Human capital management can create a strong organizational culture that promotes employee development, honest feedback and commitment to company goals. It can give employees more control over their careers and encourage them to dedicate their skills and talent to the employer for the long term.

13. What are the various essential reason for Downsizing Plan? State the role of Human Resource in Downsizing Plan.

Ans: The downsizing plan may be essential for the following reasons:

(i) An organization may suffer from overstaffing due to faulty human resource planning.

(ii) Technological development may make the labour force redundant.

(iii) An organization may start outsourcing some of its functions. As a result people employed in these functions, become surplus.

HR department will have to perform several functions for successful implementation of downsizing. The downsizing plan shall include: 

(i) HR managers have to decide who to be made redundant, where and when.

(ii) They must have programmes to assist the laid off employees.

(iii) Steps should be taken to help the laid off employees in finding new jobs.

(iv) Policies have to be prepared for declaring the redundancies and making redundancy premium.

(v) HR manager have to convince the trade unions and win their support for downsizing.

(vi) HR managers must ensure proper communication to minimize the negative effects of rumours.

14. What are the adverse effects that may lead to downsizing in an organization? In this context, mention three essentials of Downsizing. What are the two disadvantages of downsizing?

Ans. Downsizing may lead to the following adverse effects in the organization.

(i) Downsizing may gradually destroy the skill base when adequately qualified employees have to leave the organization.

(ii) Downsizing may create a feeling of insecurity among people working in the organization. The employees will have to low morale, as a result.

(iii) Job insecurity will adversely affect the performance levels in the organization.

The downsizing may be essential due to the following reasons:

(i) An organization may start outsourcing some of its functions. As a result people employed in these functions, become excess.

(ii) An organization may suffer from overstaffing due to faulty human resource planning.

(iii) Technological development may make the labour force redundant.

Following are the disadvantages of downsizing:

(i) Retains talent: It’s a fact that downsizing cuts down manpower wherein the management needs to pay more attention to the low performing employees so that they could be targeted first. This cannot be achieved in short span of time but needs to be taken care of during the performing time itself.

(ii) Saving business: Whatever be disadvantages, one way of downsizing would in fact help the company to bring the business on track. The unnecessary activities that were redundant would be done with. Besides the financial stability could be restored as there would be cost cuts to additional expenses.

15. What are the main objectives of Human Resource Accounting?

Ans: The main objectives of HRA are:

(i) Provide cost value information about acquisition, development, allocation and maintenance of HR so as to achieve organizational goals in an effective manner.

(ii) Enable management of the organization to effectively monitor the use of human resources.

(iii) Ascertain, whether human assets are conserved, appreciated or depreciated during a given period of time.

(iv) Assist in the development of effective management practices by classifying the financial consequences of various practices followed by the organization.

16. What are the problems of Human Resource Management in relations to multinational companies? Discuss the evolution and growth of HRM in India.

Ans: The following are the problems:

(i) Danger for Domestic Industries: The domestic industry is in capable of facing the challenge of the multinational companies because they possess huge financial resources. Some weak companies have simply to wind up their business.

(ii) Repartriation of profits: These companies earn huge profits. They carry these profits to their country. This adversely affects the Foreign Exchange Reserve of the host country. It means a large amount of foreign exchange goes out of the country.

(iii) Intervention in Local Parties: The multinational companies establish their supremacy on the under-developed countries simply because of their immensely favourable position. First of all these companies help the government in a number of ways and gradually start interfering in the process of government decision making. Such a situation is never comfortable for any country.

(iv) Exploitation of Natural Resources: The multinational companies use the natural resources of the host country very carelessly. This improper use of the valuable natural resources of the country is harmful.

(v) No Benefit to poor people: These companies are generally set up in the under-developed or developing countries. The people of these countries are mostly poor, but these companies produce only those things which are used by the rich. These products include cosmetics, soft drinks, Chocolates, etc. Therefore, the majority of the people in the country do not get any benefit from these companies.

Modern personnel management has emerged through many stages, which may be explained as follows:

(i) The Commodity Concept: Before the industrial revolutions GUILD SYSTEM was in operation, which was the beginning of personnel management. Industrial revolution, gave rise to the factory system, as a result, the place of work shifted from residence to factory and the management became separate from ownership. The close relationships between employees and owners were broken. Labour began to be considered as a commodity to be bought and sold. Govt. did very little to protect the workers.

(ii) The Factor of Production Concept: Under the factor of production concept, employees were considered a factor of production just like land, materials and machines. The employees were considered as mere operators of machines. However, this concept was an improvement over the commodity concept in so far as employees gained better working condition and earnings.

(iii) The Paternalistic Approach: The paternalistic approach was based on the belief that management must assume a fatherly and protective attitude towards employees. Paternalism does not mean merely providing benefits but it means satisfying various needs of the employees as parents meet the requirements of the children. Employers began to provide welfare schemes to workers e.g. health facilities, pension plans, group insurance schemes etc. In this stage both employers and employees both began to realise that they cannot survive and prosper without each other.

(iv) The Humanitarian Concept: The humanitarian concept is based on the belief that employees had certain inalienable rights as human beings and it was the duty of the employers to protect these rights. To improve productivity, physical, social and psychological needs of the employees must be met. This approach is known as human relations concept.

(v) The Behavioural Human Resource Concept: The human resource concept was based on the belief that employees are the most valuable assets of an organization. Efforts should be made to integrate employees with the organization so that organizational goals and employees aspiration could be achieved simultaneously.

(vi) The Emerging Concept: The emerging concept aims at creating a feeling among workers that the organization is their own. Employees should be accepted as partners in the progress of the organization. To this end, management must offer better quality of working life and offer opportunities to people to exploit their potential fully.

Thus, personnel management started from a stage where employees were considered problems. Procedures and costs reached a stage where employees are looked upon as a resource, an asset and an opportunity.

17. How can a Human Resource system be designed? State the objectives of Human Resource Information System.

Ans: Human resource information system links all the decision making centres in an organization. It should be a very well thought out process. The steps involved in the development of an effective human resource information system are given below:

(i) System Analysis: This step involves the description in generalized terms of the course of action and the limitations within which the system has to be designed. Systems analysis involves definition of the problem, specification of objectives, constraints affecting the system, making feasibility study and submission of the report.

(ii) Systems Design: At this stage, the systems of the organization need to be designed by the top management. The system designer has to take the decision in respect of the number of files to be maintained, the equipment for designing the system so that he can process and store the information required on an extra ordinary occasion.

(iii) Systems Engineering: This is the third step deals with the fitting of human resource management into the organizational structure. Here, the top management is responsible for making recommendations about the new system. Thus, in this stage, a detailed study of the engineering components and their cost effectiveness is made.

(iv) Systems Testing and Implementation: In this stage, actual installation of the equipments are to be used and support facilities are developed. For operating the system, the personal need to be appointed and trained. In this stage, total HRIS, its subsystems and running of the system are tested and implemented.

(v) Systems Monitoring and Evaluation: After testing and implementation, the next step is to measure the performance of the system. The system should also be continuously reviewed in the light of changes in the environment both within the organization and outside the organization. Hence, necessary steps will have to be taken to modify the system in the light of these changes.

Following are the objectives of Human Resource Information System:

(i) To make the required information available at reasonable cost.

(ii) To provide necessary security and secrecy for important and confidential information.

(iii) To make the desired human resource information available in the right form to the right person and at the right time.

(iv) To process the information i.e. data by using most efficient methods.

(v) To keep the data’s upto date.

18. Write a brief note on evaluation and development of Human Resource Management. 

Ans: Human Resource Management (HRM) refers to an organization’s function responsible for managing the workforce. The evolution of HRM can be traced back to the early 20th century when the focus was on maintaining records and ensuring compliance with labor laws. Over time, the role of HRM has evolved to become more strategic and proactive in aligning human capital with the organization’s goals and objectives.

The evolution of HRM can be divided into several eras, each characterized by different approaches to managing the workforce. These eras include the pre-industrial revolution era, the industrial revolution era, the emergence of personnel management, the human relations era, the rise of strategic human resource management, and the contemporary era. During the Industrial Revolution, the focus was on maximizing productivity and efficiency, and HRM practices were designed to achieve these goals. Job specialization emerged as a key feature of HRM, with workers being trained to perform specific tasks more efficiently. The assembly line, which was introduced during this period, also contributed to the emphasis on job specialization.

(i) Early Personnel Management: In the early 20th century, HRM was in its infancy and was primarily referred to as personnel management. During this era, HRM’s role was predominantly administrative in nature. The primary focus revolved around executing basic tasks like payroll management, record-keeping, and addressing labor relations.

(ii) Transition to Human Resource Management: The 1980s marked a significant turning point in the evolution of HRM. During this era, HRM underwent a remarkable transformation and emerged as a distinct field of study and practice. Organizations began to realize the strategic importance of effective human resource management. 

(iii) The Strategic HRM Era: As we moved into the late 20th century and the early 21st century, HRM entered what can be termed as the Strategic Human Resource Management era. During this phase, HRM evolved into a strategic partner within organizations. It shifted its focus from being an auxiliary department to becoming a vital contributor to the overall business strategy.

19. Write two Advantages of computerized HRMS.

Ans: The benefits of a computerized human resource management system are:

(a) increased access to HR data.

(b) streamlined and standardized processes.

(c) more consistent and accurate data.

(d) a higher internal profile for HR.

20. Discuss the scope of Human Resource Management. Write in brief the future challenges of Human Resource Management.

Ans: Personnel management may be taken to mean the task of managing the personnel of an organization. The subject matter of personnel management is main and therefore all such functions, duties and responsibilities and powers are included in the scope of personnel management which help the management in getting the work done with the help of people. The scope of personnel management is extremely wide.

It may be clearly pointed out that the scope of personnel management varies from one organization to another and from one country to another. Different authorities on management include different functions in the scope of personnel management.

We can summarize them as follows:

(i) Procurement: Procurement includes recruitment and selection of right kinds of personnel to occupy the various posts in the organization. It includes: 

(a) determination of manpower requirements.

(b) job analysis. 

(c) nature and scope of recruitment.

(d) employee selection. and 

(e) placement of employees.

(ii) Training and Development: It is mandatory to prepare the worker gaining proficiency in the methods and techniques of work assigned to them. Efforts may be made to involve the employees in actual management situations. Employees participation in committees and board meetings may also contribute towards their development.

(iii) Job Analysis and Job Description: Job analysis and job description involves the studies of job requirements of the enterprise and assignment of well defined functions to jobs so that qualified employees may be hired. It also forms the basis of wage determination.

(iv) Remuneration: Provision of adequate remuneration for the work done by an employee involves job analysis and job evaluation. It includes determining wage rates, incentive systems of wage payment, merit rating and performance appraisal.

(v) Personnel Records: The function of personnel records includes collection of bio-data of all employees pertaining to their work, e.g., training, job performance, aptitude payment records etc.

(vi) Welfare and Industrial Relations: It includes health and safety programme, sanitary facilities, recreational facilities, group insurance, employee associations etc.

The future challenges of human resource management are divided into three categories:

(a) Organisation Level Challenges:

They includes:

(i) Integration of manpower plans with corporate plans.

(ii) Task of motivating executives due to reduced promotional opportunities.

(iii) Integration of change techniques.

(iv) Task of keeping the organization young and productive.

(v) Development of an organizational structure.

(b) Challenges at Personnel Management Departments Level:

They includes:

(i) Developing personnel policies.

(ii) Research orientation.

(iii) Process orientation.

(iv) Evolving a participative approach and maintaining a high level of reputation.

(c) Challenges at Work Place Level:

They includes:

(i) Task of adapting work place to rapid technological changes.

(ii) Problem of non-performers.

(iii) Problem of grievance management.

(iv) Emergence of socio-psychological needs.

21. Why is Human Resource Management important in an organization? Discuss briefly.

Ans: The main purpose of human resource management is to accomplish the organizational goals. Therefore, the resources are mobilized to achieve such goals.

Some importance and objectives of human resource management are as follows:

(a) Effective Utilization of Resources: Human resource management ensures the effective utilization of resources. HRM teaches how to utilize human and non-human resources so that the goals can be achieved. Organization aiming to utilize their resources efficiently invites the HR department to formulate required objectives and policies.

(b) Development of Human Resources: Human resource management provides favourable environment for employees so that people working in an organisation can work creatively. This ultimately helps them to develop their creative knowledge, ability and skill. To develop personality of employees, human resource management organization training and development campaigns which provides an opportunity for employees to enhance their caliber to work.

(c) Goal Harmony: Human resource management bridges the gap between individual goal and organizational goal-thereby resulting into a good harmony. If goal difference occurs, the employees will not be willing to perform well. Hence, a proper match between individual goal and organizational goal should be there in order to utilize organizational resources effectively and efficiently.

(d) Employee Satisfaction: Human resource management provides a series of facilities and opportunities to employees for their career development. This leads to job satisfaction and commitment. When the employees are provided with every kind of facilities and opportunities, they will be satisfied with their work performance.

(e) Employee Discipline and Moral: Human resource management tries to promote employee discipline and moral through performance based incentives. It creates a healthy and friendly working environment through appropriate work design and assignment of jobs.

22. What is the importance of Human Resource Management in industrial undertaking?

Ans: Importance of personnel management is in reality the importance of labour functions of personnel department which are indispensable to the management activity itself. Because of the following reasons personnel management holds a place of importance.

(a) It helps management in the preparation, adoption and continuing evolution of personnel programmes and policies.

(b) It supplies skilled workers through scientific selection process.

(c) It ensures maximum benefit out of the expenditure on training and development and appreciates the human asset.

(d) It prepares workers according to the changing needs of industry and environment.

(e) It motivates workers and upgrades them so as to enable them to accomplish the organizational goals.

(f) Through innovation and experimentation in the field of personnel, it helps in reducing costs and helps in increasing productivity.

(g) It contributes a lot in restoring the industrial harmony and healthy employer-employee relations.

(h) It establishes mechanism and the administration of personnel services that are delegated to the personnel department.

23. Define Personnel Management. What are its characteristics? Explain in brief the main principles of Human Resource Management.

Or

Explain the meaning and nature of personnel management. Explain in brief the main principles of Human Resource Management.

Ans: There is no standard definition of the term ‘Personnel Management’. Different writers have given different definitions of the term.

A few definitions are as follows:

(i) According to Dale Yoder, “Personnel management effectively describes the processes of planning and directing the application, development and utilization of human resources in employment.”

(ii) Prof. E.F.L. Brech defined the term ‘Personnel Management’ in the following words-“Personnel Management is that part of management process which is primarily concerned with the human constitution of an organization.

(iii) Indian Institution of Personnel Management define Personnel Management as follows, “Personnel management is that part of management function which is primarily concerned with the human relationship within the organization.”

Nature or Characteristics of Human Resource Management: From the various definitions of personnel management, we may list following characteristics of personnel management:

(a) A specialized branch of general management: Personnel management is a part of the general management and therefore all the principles of management are applicable to this also. Personnel management is a central and pervasive subsystem of all organizations.

(b) Management of human resources: Personnel management is management of personnel ie., human resources. Personnel management includes the functions of employment, training and development, welfare and compensation. These functions are usually performed by the personnel department in consultation with the officials of other departments.

(c) A pervasive function: Personnel management is a pervasive function of management. Personnel management is performed by all managers at various levels in the organization. As Fredrick R. Kappel observed, “Personnel management is not something you turnover a personnel department staff. Since all decisions in an organization are made by human beings and are put into consideration or operation by human beings, all activities have a human aspect and therefore a personnel aspect.” Personnel management is not a function of personnel department alone, it is a function of all departments of the organization.

(d) Employees as individual and group: Personnel management is concerned with employees both as individuals and also as a group. It establishes relationship between 

(i) employer and employees and also between.

(ii) employees and employees. 

The term employees includes all types of employees whether at lower level or top level e.g. workmen, craftsmen, operators (low level), departmental managers (middle management) or general manager or chief executive (top level) etc.

(e) Development of employees: Personnel managements concerned with helping employees to develop their potential abilities fully. Personnel management consider the development of individuals at work, as an individual and as a member of the group. Personnel policies, are designed in the manner so that intrinsic abilities of the employees may be developed to the best use of the organization.

(f) A technique of thinking: Personnel management is an approach, a point of view, a technique of thinking and a philosophy of management. The whole philosophy of personnel management is that labour is a human being, an humanly treatment should be given to them.

(g) Based on principles: Management of workforce is a difficult job. Here, the subject matter consists of human beings whose attitudes and behaviour do not confirm to any set pattern. Each individual worker has his own attitudes, beliefs and temperament make up. Personnel management is based on certain well-defined principles which have been evolved after a great deal of research and experimentation.

(h) A never-ending process: Personnel management as a function needs to be performed on a continuous basis. It involves the delicate function of management of human relations. Moreover, it is to be continuously attended to and nurtured like a delicate plant.

Different experts and scholars have presented the principles of personnel management in different forms. But the following are the widely accepted principles of personnel management:

(a) Principle of effective utilization of human resources: The personnel management has been evolved to utilize the available human resources in the best manner possible so as to achieve the organization objectives effectively. Personnel management is an art to get the work done by the people, to get the desired result. For this purpose, workers should be given humanly treatment in the organization.

(b) Principle of team spirit: According to this principle, the workers should have team spirit among themselves i.e, workers should feel their joint responsibility. Efforts should be made to let the workers feel that their work as a team can only accomplish the goals of the organization. For this employees should be educated so that they may extend their co- operation to the organization.

(c) Principle of dignity of labour: According to this principle, labour should be given due regard in the organization. His work must be duly recognised so that his ego may be satisfied. For this purpose non-monetary incentives should be provided along with monetary incentives.

(d) Principle of fair reward: According to this principle, the workers should get fair reward for their work. This is necessary to maintain better industrial relations and to increase the worker’s efficiency. For this purpose, performance appraisal should be the basis for wage determination.

(e) Principle of contribution to national prosperity: Personnel management should ensure that employees contribute to the prosperity of the organization and of the country also. For this purpose personnel management should develop the sense of patriotism in labour and educate them so as to make them realize that their efforts alone can contribute to the prosperity of the organization and of the country.

24. What are the various functions of Human Resource Management?

Or

Explain the functions of Personnel Management.

Ans: The functions of personnel management may be divided into two parts. Managerial functions and operative functions.

These are as follows:

(a) Managerial functions: General management and personnel management are one and the same. Basic managerial functions– planning, organizing, directing and controlling– are common to all managers including personnel managers and are performed by all of them.

Following are the managerial functions of personnel management:

(i) Planning: It is the main function of management. It is concerned with manpower planning, studying labour turnover rate, forecasting the future requirements of personnel and planning for selection and training procedures, etc. After determining how many and what type of people are required, a personnel manager has to devise ways and means to motivate them.

(ii) Organising: It involves the establishment of inter-relationships within organisation. By identifying the various sub-groups headed by individuals in managerial jobs as well as operative jobs, it provides a structure for the company.

(iii) Directing: Directing is concerned with initiation of organized action and stimulating the people to work. It includes issuing instruction to the workers, developing communication network, interpreting various industrial laws and integrating workers. The personnel manager directs the activities of people of the organization to get its function performed properly.

(iv) Controlling: Controlling is concerned with the regulation of the activities in accordance with the plans. Controlling completes the managerial cycle and leads back to planning. It provides basic data for establishing standards, makes job analysis and performance appraisal etc. All these techniques assist ineffective control of the qualities, time and efforts of workers. Controlling also helps the personnel manager to evaluate the performance of the personnel department in doing various operative functions.

(b) Operative functions: Operative functions are those functions which are entrusted to the personnel department Such functions are of the routine nature. These are concerned with procurement, development, compensation, integration and maintenance of the personnel of the organization. Following are the important operative functions of personnel department.

(i) Procurement of personnel: It is the first operative function of personnel management. It is concerned with the obtaining of the proper kind and number of personnel necessary to accomplish organizational goals.

It deals specifically with such subjects as:

(a) Determination of manpower requirements.

(b) Job analysis and job-grading.

(c) Determining the nature and sources of recruitment.

(d) Selecting/selection of employees.

(e) Placement and orientation.

(ii) Training and development of personnel: After the placement of employees on various jobs the next function of the personnel management is to give them training. In this process various techniques of training are used to develop the employees. Framing a sound promotion policy, determination of the basis of promotion and making performance appraisal are the elements of personnel development function.

(iii) Compensation to personnel: Compensation means determination of adequate and equitable remuneration of personnel for their contribution to organization objectives. To determine the monetary compensation for various jobs is one of the most difficult and important function of the personnel management. A number of decisions are taken into the function viz. job evaluation, remuneration policy, incentive (motive), and premium plans, bonus policy and co-partnership etc. It also assists the organization for adopting the suitable wages and salaries policy and payment of wages and salaries in right time.

(iv) Integration or human relations: The maintenance and promotion of harmonious relations between employees working in different departments and between the employees and management is a function of personnel department. The personnel department has to ensure a reasonable reconciliation of the interest of the personnel with that of organisation. The personnel manager must provide an efficient system of communication. He should be in touch with the grievances of the people at work and try to remove them. In all circumstances, he should try to maintain proper discipline in the organization.

(v) Maintenance of personnel: Maintenance of personnel means to keep the workers engaged on the work with full loyalty to their jobs and to the organization. This functions involves provisions of better working conditions and labour welfare activities such as medical benefits, housing facilities, canteens, recreational facilities, rest rooms etc.

25. Explain the limitations of HRM.

Ans: The following are some basic limitations of HRM:

(i) Uncertainty of future: The future of all business organizations largely remains uncertain. This is because many social, political, technological and financial factors can affect their functioning. These factors end up affecting HRM as well because they dictate employment.

(ii) It is for regular employees and not for the contractual workforce: The human resource management system is designed around the regular workforce and has little accommodation for the requirements of the contractual workforce. In most industries, contractual workers make up a significant part of the workforce, and no dedicated provisions for them are one of the considerable limitations of HRM.

(iii) Problems of surplus staffing: Whenever an organization is over-staffed, HRM provides solutions like termination of excess employees, VRS, etc. This, in turn, negatively affects existing employees as the threat of job termination looms on them all the time. Such negative psychological pressures can generally make employees inefficient.

(iv) Time to train to use it: HRM should be implemented only after assessing the training and the development requirements of the employees. As such, an implementation causes a significant shift in responsibilities, and the aspirations and needs of the workers should be considered before creating human resource policies.

(v) Time-consuming: HRM generally requires managers to collect all sorts of information from employees with respect to their functioning. Collecting all this data from all departments can be highly time-consuming.

(vi) Conservative attitudes of top-level management: The top-level management of many organizations often possesses a conservative attitude in functioning. It can be reluctant in changing its own ideas and beliefs to accommodate the quirks of employees. 

(vii) Cost of setting it up and installation: HRM systems have a huge setup cost. If you are a small business, installing an HRM system can cost you thousands of dollars. Several expenses are involved in its setup, such as training staff to use it, software costs, consulting, and intensive time commitment to install and get the system running.

(viii) Expensive: In order to facilitate an organization in functioning effectively, HRM suggests solutions like training, VRS, bonus, perks, etc. Therefore, implementing HRM solutions can be highly expensive too.

26. “Personnel management involves two types of objectives, general and specific.” Describe these objectives in detail. 

Ans: The objectives of personnel management may be classified into two groups.

(a) General objectives.

(b) Specific objectives.

(a) General objectives: General objectives express the basic philosophy of top management towards the labour force engaged in the work. The basic objectives should include the following as the most important objectives.

They are as follows as under:

(i) Maximum individual management: The employer should develop the personality of each individual. Employees should always be regarded as partners of the organization and given a due importance in the organization. The management should recognise his individual ability and make use of such ability in an effective manner.

(ii) Working relationship between employer and employees: One of the main objective of personnel management is to have a desirable working relationship between the employer and employees so that they may cooperate with the management. This is possible only when there is complete mental revolution.

(iii) Effective moulding of human resources: Man is the only active agent of production who engages the other factors of production to work. Therefore, management should emphasize the effective utilization of human resources other factors of production will be ineffective.

(b) Specific objectives: These generally refer to various activities of personnel department such as the following:

(i) Selection: Selection of right type of number of persons required to the organization.

(ii) Orientation: Proper orientation and introduction of new employees in an organization.

(iii) Training: Organisation of suitable training facilities for better job performance and to prepare a man to accept the challenge of higher job.

(iv) Better working conditions: Provision of better working condition and other facilities such as medical facilities, leave with pay, provident fund, gratuity, etc.

(v) Incentives: Provision of fair and effective wages administration and other incentives.

(vi) Retirement: A full and fair consideration should be given to an employee when his services are terminated or he leaves the organization.

(vii) Trade unions: Trade unions play an important role in individual life and therefore good relations should be maintained with the representatives of trade union.

(viii) Personnel research: Provision of continuous personnel research which keeps the management equipped with the recent developments and trends to take sound decisions without any further delay.

27. Explain the qualities of a Human Resource manager for making an efficient personnel department. How can the efficiency of the personnel department be judged?

Ans: Personnel manager is one of the many specialist who has been appointed in the organization as a result of the growth of the organization. He is assigned the personnel functions like recruitment, selection, wage and salary administration, promotion etc.

For a personnel manager the qualities of character and personality are more important than knowledge. It is difficult to state the elements which should be there in personality of a successful personnel manager. However, some of the important qualities required in any successful personnel manager are as follows:

(i) Sense of vocation: The jobs of the personnel manager are so heavy that they cannot be carried out without some sense of vocation. The personnel manager must have faith in humanity and also in the possibility of creating a better social and industrial order.

(ii) Sense of social responsibility: Industry is a part of the society. Its success depends upon the effective cooperation of the people working in the organization. The personnel manager must appreciate people of the organization as social groups and social units. He must deal with them in the social background of the business.

(iii) Capacity of leadership: The personnel manager has a dual role, to advise the management on human problems and to exercise leadership in many matters affecting the workers. He should be ready to face opposition and to speak without fear from any level of management and to any group of workers.

(iv) Personal integrity: Personnel manager must be a man who can be trusted completely so that all people of the organization may come to him with the worries and problems. He is concerned with human relations problems more than anybody else in the organization. So, he should be a man of great integrity.

(v) Capacity for persuasion: This is the intellectual side of leadership. The personnel manager has to persuade his fellow managers. In negotiations, the personnel manager should not make any hesitation. He should have the patience to persuade the employes in the desired direction.

(vi) Dynamic personality: Besides above mentioned qualities, the personnel manager should possess a dynamic personality with following characteristics:

(a) Spontaneity of speech: Readiness and fluency combined with a good knowledge of words are essential for a personnel manager. Ability to express oneself in accurate terms avoid misunderstanding.

(b) Public speech: It is often a necessity in the working life of a personnel manager.

(c) Face expression: Mobility of facial expression is also important for a personnel manager because it will help him in dealing with the people more efficiently.

(d) Courtesy and social awareness: The personnel manager is actually the human relations manager. He has to speak to people of all grades and ranks, trade union leaders, members of the Board of Directors. For all these occasions he is better equipped if he possesses a sense of courtesy and social awareness.

(e) Personal dignity: A personnel manager should be able to mix with the people and yet not to be one of them. His job is bigger than himself and this fact must be the measure of his action.

In the ultimate analysis, the socio-cultural background of the personnel manager, his own philosophy of life, his aspirations, his personality and character would have a crucial bearing on his role and functioning in the organization.

28. Explain the benefits of Human Capital Management. Discuss the functions of Human Capital Management. 

Ans: The biggest benefit of human capital management is that it allows organizations to get maximum value from their employees. It simplifies human resource duties and offers several other benefits.

Here are the benefits of human capital management:

(a) Improve human capital management: The main advantage of human capital management is that it provides a process for managing a company’s people resources. It creates an overall system the human resource department can use to deliver the best talents and train them to achieve organizational goals.

(b) Enhance the recruitment process: Effective human capital management makes it easier to attract the best candidates to your organization. It offers hiring managers a database of candidates with the best job-specific skills and experiences. Human capital management allows interviewers and the company’s public relations team to position the organization as an ideal employer, attracting candidates that can deliver results. This system also improves the onboarding process and helps new candidates fit into the organization easily.

(c) Identify capability gaps: A vital role of human capital management is to identify gaps in the capabilities of the workforce. This helps the human resource department adjust the recruitment criteria to fill positions that will improve the organization’s ability to achieve its objectives.

(d) Improve organic growth: Since human capital management can identify the competencies of individual employees, it is a powerful tool for organic growth. It achieves this by helping the organization optimize internal resources to improve productivity and boost revenue. This is possible because human capital management invests in the growth and development of employees, equipping them with the capabilities to deliver positive results.

(e) Match positions with employee capabilities: Human capital management can help organizations match employees with positions where they can use their skills and talents. This is because the system has processes that can identify the individual strengths and competencies of employees. By pairing people with positions that allow them to use their skills, employees derive more satisfaction at work and the company enjoys greater productivity, efficiency and loyalty.

(f) Improve productivity and efficiency: Human capital management is all about making the best use of available human resources for maximum returns. By investing in training that develops specific capabilities the organization needs to accomplish its goals, human capital management helps boost productivity. It also improves efficiency because the system places employees in roles where they can perform at their best.

(g) Improve performance reviews: Human capital management promotes excellence by improving the effectiveness of performance reviews. It provides different levels of employee appraisal including self- reviews, peer reviews and manager reviews. This provides employees with actionable feedback on their contributions to the organization and motivates them to do more.

(h) Allows better career planning: Human capital management gives employees more control over their careers. It identifies capability gaps through training, surveys, performance reviews and other sources of feedback. This helps employees to know areas where they need to improve to deliver better results in personal and company goals.

The primary function of human capital management is to increase the value of people’s resources so that they can contribute meaningfully to the organization. Here are the roles of human capital management in a company:

(a) Hire talent: One of the most important functions of human capital management is to attract and hire talent that helps the organization achieve its goals. It provides all the tools the human resources department needs to position the organization as an ideal workplace to the best candidates and make the recruitment process hitch-free.

(b) Orientation: Managing human capital requires the effective and efficient onboarding of new employees. It introduces them to the company culture, job requirements and expectations and creates an enabling environment that helps them fit into their roles.

(c) Employee training and development: Another function of human capital management is to provide adequate training to help employees deliver the best performance for the organization. It creates an enabling environment that encourages growth and development to help people gain new skills and capabilities to deliver better results and advance their careers.

(d) Employee retention: Human capital management aims to increase employee job satisfaction by giving them the opportunity to use their skills and knowledge to contribute to organizational objectives. This gives people a sense of belonging while making them feel valued and committed to their employer.

(e) Effective performance appraisal and feedback: Human capital management creates multiple systems for measuring performance to improve productivity and efficiency. Through a variety of employee reviews and surveys, this practice can help management identify gaps in training, resources, job satisfaction and other things that can affect the effectiveness of the workforce. The company can then use this information to provide feedback to help all parties to improve for better results.

(f) Provides access to data: Human capital management provides a database of actionable insights that can help management add more value to their employees. Data from performance reviews, employee benefits claims, skills, turnover rate and other vital statistics can help the organization adjust its strategies and practices to improve the work environment and achieve objectives.

29. How to improve Human Capital Management? Explain the types of Human Capital.

Ans: Organizations that depend on their employees for much of their success must always find better ways to manage their human capital.

Here are ways to improve human capital management:

(a) Invest in existing staff: Many organizations dedicate resources to attracting and hiring new talent to the detriment of existing employees. This can prevent the organization from maximizing the potential of existing staff. By investing in the growth and development of current employees, organizations can achieve greater organic growth with reduced training costs. This can improve job satisfaction and increase employee retention rates.

(b) Personalize human capital management: To achieve more success, have a personalized approach to managing your human capital. Individuals are different and the way each employee will process information and guidelines will differ. Rather than apply the same solution to everybody, try to know the strengths and weaknesses of individuals and provide an environment that will encourage everyone to upgrade their skills and knowledge.

(c) Leverage technology: Technological solutions can boost the success of human capital management. Mobile apps can improve training, increase communication and collaboration and reduce time and location barriers. It can also help you automate several business processes, cut running costs and reduce the time employees need to access and share data or provide feedback.

(d) Align human capital management with business goals: A great way to improve your human capital management is to match it with business objectives. By aligning human capital management with your business strategy, the company can identify the capabilities it needs to solve specific business problems. For example, the company may need to train its IT department on the use of a new software application to meet client expectations.

(e) Improve communication: Communication is a critical success factor for managing a company’s human capital. Improved communication can boost employee engagement and provide a better understanding of the human capital management processes. This will allow employees to know the company’s expectations and what they will get.

Types of Human Capital are explained below:

(i) Health: The health of individuals influences their productivity. As such, a society with a healthy lifestyle, high quality of life and good healthcare system may be more productive.

(ii) Know How: Practical knowledge that is applicable to creating value.

(iii) Tacit Knowledge: Knowledge that you can’t obtain from reading a book such as how to play the violin or hit a baseball.

(iv) Situational Knowledge: Knowledge that is highly contextual. For example, a farmer who knows that a particular field has an unusual good terroir for grapes.

(v) Systems Thinking: Systems thinking is the ability to identify and analyze broad end-to-end impacts of actions.

(vi) Design: The ability to create new things both tangible and intangible that are useful.

(vii) Social Status: The social standing of an individual in a group. For example, an accomplished professional athlete who is viewed with respect and admiration by fans. 

(viii) Cultural Capital: Cultural capital is the ability to influence within the context of a culture.

(ix) Relational Capital: Relationships between organizations and people. For example, a sales person who knows everyone in your industry.

(x) Leadership: The ability to influence and motivate groups to achieve common goals. 

30. Describe the role and status of Human Resource managers in Indian business houses.

Ans: Till recently, personnel managers were considered to be of a lower status than other management executives. Their role was not appreciated by the top management of industrial concerns due to the restrictive functional scope of their duties and activities.

Their lower status was due to following reasons:

(i) Disrespect for personnel managers: Personnel managers have been viewed as contributing little to the functioning of an organization. They were entrusted with such tasks as did not offer challenges while the other executives were involved in such challenging tasks as financing and looking after complex production schedules. This lack of involvement on the part of personnel managers often led to frustration. The personnel function itself was placed at a lower level in the organizational structure and untrained persons, who were not needed anywhere else, were employed on personnel jobs. This resulted in low status and prestige of the personnel manager and his department.

(ii) Low position in the organization: The personnel function was given a low status in the organizational structure as a result of which line manager were discouraged from seeking help from the personnel department mainly because personnel executives were contacted for the solution of a single problem. Personnel functions are not too well coordinated.

(iii) Lack of expertise: Frequently a mediocre line manager was required to perform personnel functions. As a result, he did not command the respect of his subordinate or the line personnel. Moreover incompetent managers could not anticipate the problems of an organization. Some did not even have sufficient knowledge of, or interest in broader organizational matter.

(iv) A poor self image: Since personnel managers felt that they held low level positions, or were not fairly treated by other executives, they did not take any lively interest in their work and often performed a static role. But the situation has now changed and top executives have begun to realize that to meet the changing needs, there should be personnel experts, well versed in personnel management. These experts are competent and committed personnel specialists who are capable of making meaningful contributions to their organization and utilizing personnel departments very effectively. The personnel manager today serves as a key member of the top management team. He has the ultimate responsibility for all personnel and labour policies. He also assists in decision-making, organizational planning, executive development and community relations policy.

31. What is meant by HR policies? Describe the factors involved in formulating a HR policy. Explain the objectives of HR policies.

Ans: Policy is a pre-determined and accepted course of thoughts and actions established as a guide towards accepted goals and objectives. In other words, we can say that policies are the statements of the organization’s overall purpose.

Personnel policy is one of the policies in the organization which lays down the decision making criteria in the area of manpower management.

According to Richard P. Calhoon, “Personnel policies constitute guide to action. They furnish the general standard for bases on which decisions are reached.”

Thus, personnel policy provides guidance to the management in its relation to employees. If we analysis the various definitions and statements, we get the following features about personnel policies.

(a) This is a policy for the guidance of management in its relation with employees.

(b) It is a predetermined course of action or rules.

(c) Policies guide the performance of objectives.

(d) Policies provide the standards or bases for the decision.

Factors influencing/affecting personnel policy or considerations in formulating personnel policy: The following factors should be undertaken into consideration while formulating personnel policies of an organization:

(i) Law of the country: The various laws and labour legislations govern the various aspects of personnel matters. Policy should be in conformity with the laws of the country. For example, In India, Factories Act, Industrial Employment Act, Payment of Wages Act, Workmen Compensation Act etc. exert great influence in formulating personnel policies.

(ii) Social values of customs: These are codes of behaviour of any community. They should be taken into account in framing personnel policies.

(iii) Management philosophy: Management cannot work together for any length of time without clear and broad philosophy. The philosophy of management influences their actions on matters concerning the work force.

(iv) State of development: All changes such as size of operations, technology, inaugurations, changes in composition of labour, financial structure, decentralization of authority etc. influence the formulation of personnel policy.

(v) Financial position of the firm: The personnel policies cost money. Hence, different policies concerning labour welfare cannot be formulated without considering the financial strength of the firm.

(vi) Union objectives and practices: The objectives and practices of trade unions in an organization are also responsible to policy formulation. 

The following questions need to be considered carefully.

(a) How well the employees are organized?

(b) What is their bargaining capacity?

(c) What are their pressure technique?

(vii) Type of workforce: An assessment must be made of the characteristics of workforce in formulation of effective personnel policy. A policy that ignores these factors is hardly worth implementation.

Personnel policies are formulated with the following objectives:

(i) Maximum individual development: The main objective-of personnel policy is the maximum individual development. It should be designed in such a way that effective cooperation among workers may be promoted and better results may be achieved.

(ii) Maximum use of human resources: Personnel policies aim at the best and the maximum use of available human resources. There should be a direct relationship between men and his job. Right man should be placed on the right job.

(iii) Good industrial relations: Personnel policy aims at good employer-employee relations. The promotion of good industrial relations requires cooperation between the management and workers. Nothing is possible unless there are good industrial relations.

(iv) Individual satisfaction: Personnel policies also aim at individual satisfaction. Individual satisfaction is linked to the monetary and nos-monetary incentives. This ensures good wage and salary administration. Due recognition given to the work will promote cooperation and loyalty.

(v) Protection of workers interest: Personnel policies should protect the interest of workers and recognise the trade union activities.

(vi) Opportunities: Personnel policy provides the opportunities for internal mobility i.e., promotion and transfer to workers within the organization.

(vii) Motivation: Another aim of personnel policy is the motivation of workforce. Personnel policy seek to motivate the people at work and increase their morale.

(viii) Job security: Every employee in an organization desires that his job is secure. Personnel policies seek to provide security to job.

(ix) Loyalty: Personnel policies promote and develop among the workers a sense of loyalty to the organization.

(x) Responsibility: Finally, personnel policy is developed a sense of responsibility in executives.

32. What are the contents of a HR policy? Discuss the principles of HR policies.

Ans: The contents of a personnel policy may vary according to the needs of the organization but following items should be contained in the personnel policy of a large organization.

(i) Name of the company along with development of the company and details regarding management personnel.

(ii) Procedures and techniques of selection including sources of recruitment and methods of recruitment.

(iii) Working conditions such as working hours, authority levels, channels for promotions, transfer, rules regarding suspension, retirement, holidays, leave etc.

(iv) Training programmes i.e. full details regarding planning objectives and methods of training for new and existing employees.

(v) Procedures for handling grievances to whom employees should contact and when, where and how.

(vi) Rules and regulations regarding accidents, unfair terminations, discipline and standing orders.

(vii) Joint consultation its methods and procedures.

(viii) Lien of authority relationships and line of communication.

(ix) Collective bargaining full particular regarding representation in collective bargaining.

(x) Industrial relations details regarding maintenance of industrial relations i.e., notice period for the strikes and lock outs, rules for declaring strikes and lock outs illegal.

(xi) Labour welfare and service activities such as education, entertainment, canteen facilities, financial assistance, profit sharing, provident fund, compensation for accidents etc.

Personnel policies should be designed on the basis of following principles:

(i) Principle of common interest : Policies must give due regard to the interest of all parties i.e, owners, employees, consumers and the public at large. Employees should have a chance to use their abilities for a better life. Employer should be able to get maximum returns from the employees. A business should also care the interests of the government as well as of the public.

(ii) Principle of development: Employees should be provided ample opportunities for the growth. Personnel policies should clearly outline the opportunities for development to those who are willing to contribute something to the prosperity of the organization through their efforts.

(iii) Principle of recognition of work: Employees’ performance should be recognised by ensuring them sufficient wages and incentives. There should be a direct relationship between work and wages. The personnel policies should take into consideration the employee’s expectations e.g. job security, reasonable security against old age, sickness and accident etc.

(iv) Principle of recognition of trade unions: Management should give adequate recognition to trade unions. Personnel policies should have a clause for amicable settlement of disputes, with the trade unions through negotiations and collective bargaining.

(v) Principle of participation: Employees should be given representation in decision-making bodies of the organization. Participation by employees would ensure that policies are realistic and acceptable. This would also result in better employees’ satisfaction and high morale.

(vi) Principle of change: Business world is too dynamic. Change is the law of the nature. But employees may resist the changes because of loss of income, loss of status, reassignment, broken friendship etc. Employees, therefore should be prepared by the management well in advance to face the change as and when necessary. Management view point in this regard should be reflected in personnel policies.

33. How can be the effectiveness of HR policies maintained? 

Ans: A personnel policy is very effective today may be ineffective at certain points of time. The changing business environment and change organisational structure also demand change in personnel policies unless which the policy is bound to be ineffective.

The following steps may be helpful in maintaining the effectiveness of personnel policies:

(i) Flexibility: The personnel policy should be flexible enough to adjust and adapt any change in economy, social, legal and technological factors from time to time.

(ii) Stability: It should be a long-term policy. Frequent changes should not be allowed as it would lead to eonfusion.

(iii) Uniformity: Uniformity of the policy is very essential for its effectiveness. It should be applicable to all members and all units of the enterprise.

(iv) Acceptability: An effective policy must possess acceptability among the people for whom it has been formulated.

(v) Proper communication: Effectiveness of personnel policy also depends on its proper communication to all those for whom it is intended so that all employees could know their rights, liabilities and duties.

(vi) Integrity: The personnel policy must be able to integrate the characteristics of all people. It must fully consider the differences in their capacities, capabilities, interest, aspirations, beliefs and temperament.

34. How a HR policy is developed? Explain the various instruments of HRD.

Or

What are the various steps or methods in policy formulation and administration? Explain the various instruments of HRD.

Ans: Formulation of policy is a top management decision. In certain organisation, the personnel manager may be totally responsible for the entire process. In other organisation the groups of line managers assemble to formulate policies with the personnel staffs.

The methods for formulation of personnel policy involves employees participation. Representatives from all levels and from various departments sit together to consider the policies to be adopted. Some organisations also consult the representatives of other firms from similar industry.The top management constitute a committee to find facts and make recommendations.

The committee will proceed through the following steps:

(i) Fact finding: The committee collect data from inside and outside the organisation through interviews and conferences. The facts should be dependable.

(ii) Reporting of policy: Policy formulation committee shall report to the top management its opinion. The personnel manager plays a key role in this matter. He may be the principle spokesman of the committee.

(iii) Written policy: Policy should always be in writing because

(a) A policy will be vague unless it is written now.

(b) If a policy is in writing, it will show what the management exactly means.

(iv) Discussing the proposed policy: A proposed policy should always be discussed with the participation of those who use the result it gives. The discussion offers an opportunity to know the thoughts of the employees.

(v) Adopting and launching the policies: Adopting and launching policy rest on the top management. Generally, management hesitate to release the policy accepted by them for fear of making commitment. Such a situation will create confusion among employees.

(vi) Communication of policies: The personnel policy manual or handbook should be maintained by the personnel department on all policies. Booklets giving important points of interest to employees should be issued.

(vii) Appraising the policy: Policy formulation committee should appraise its effectiveness and usefulness. The new and revised policy should be reported to the top management.

A well designed HRD programme should have the following subsystems:

(i) Performance Appraisal: The objective of performance appraisal is to determine the present state of efficiency of an employee in order to establish the actual need for training. The process of performance appraisal consists of setting standards for performance, communicating the standards to the employees, measuring the performance and comparing the actual performance with the standards set.

(ii) Potential Appraisal: Potential appraisal is used for providing necessary data which helps in preparing career plans  for individuals. This technique aims at development of latent abilities of individuals. This is a process of developing in the employees, capacities to perform new roles and responsibilities. 

(iii) Counseling and Monitoring: Counselling is a two way process in which a counsellor, usually a superior provides advice and assistance to his subordinates.

The main purpose of counselling and monitoring is to help the employees scientifically to be sensitized to their potential, their strengths and weaknesses.

(iv) Training: Training is an investment in the HRD process which gives dividends both in short and long run. The ultimate goal of training is improving competence of the employees for raising the standards of organisational performance.

(v) Building Morale and Motivation among the Employees of an Organisation: The organisation must give constant evidence to the belief that human resources in the organisation are the key to development This requires proper motivation of the employees which provides a base for the management functions of planning and organising.

(vi) Development of Team Work: The HRD section must try to develop a habit of team work among the human resources. Team work requires among other things, that the members have an image of their own team mates, which coincides as precisely as possible with reality.

(vii) Creating Effective HRD Environment: HRD climate is one of the pre-requisites of effective HRD process implementation. It is an integral part of organisational climate. HRD climate creates growth opportunities and recognition.

(viii) Quality Circle: The quality circles are generally, autonomous units. Usually led by a supervisor or a senior worker and organised as work units. The workers who have a shared area of responsibility meet periodically to discuss, analyses and propose solutions to ongoing problems.

35. Describe an ideal HR policy.

Ans: There is no rigid standard to prescribe an ideal or a sound personnel policy because it is based on circumstances peculiar to an organisation. However, following are some characteristics of an ideal personnel policy which are universally applicable:

(i) Relationship to objectives: The personnel policy should facilitate the attainment of organisational objectives and plans. Policy should reflect the intention of management.

(ii) Clarity: The personnel policy should be clear, definite and explicit leaving no scope for misinterpretation. Policy should minimise the number of problems where decisions are based on personal judgement.

(iii) Written: The policy should be written. A written policy generally becomes more clear and definite and its communication is very easy. Besides, it speeds up administration by reducing repetition to routine and brings consistency in organisation.

(iv) Consistency: The personnel policy must be consistent that is the functions and the activities in the policy must be in agreement. Further, the policies must result instability over a considerable period of time.

(v) Flexibility: A personnel policy should be flexible i.e., policy must be revised from to time to meet the new situation without disturbing present norms and trends.

(vi) Communication: A personnel policy must be clearly communicated in the organisation so that individuals who have to take decisions in the framework of the policy statement understand it clearly.

(vii) Participation of subordinates: The responsibility of laying down policies though lies, with top management, the lower levels must be consulted and due weightage should be given to their advice.

(viii) Control: The policy to be effective,  must be controlled which requires its periodical review being up-to-date, reflecting organisational objectives and plans in changing situations, consistency, flexibility and applicability.

(ix) Acceptability: The policy must be acceptable to all those for whom it has been formulated. It will reduce disputes and help in maintaining discipline in the organisation.

(x) Compromise with overall policies: Personnel policy must not be against any other policy of the organisation. Thus, it should be within the framework of overall policy of the organisation.

(x) Integration: As all people are different in nature and character, the personnel policy must integrate characteristics of all people at work. It must take into account the differing capabilities, capacities, interests, aspirations, beliefs and temperament make up of the people.

(xii) Uniformity: Personnel policy must be uniform throughout the organization subject to variations according to local conditions.Thus, personnel policy must possess the above characteristics but before evolving such a policy. Trade unions and other concerned departmental heads must also be consulted.

36. Explain the procedure for implementation of HRD. Explain the qualities of a HRD manager for making an efficient development programme.

Ans: Implementation of HRD involves the following aspects of management:

(i) Commitment of the Management and Staff to HRD: HRD can be successfully implemented only when personnel in an organisation, both at the top and lower levels, have understood the implications of HRD and desire its introduction for better performance. Such understanding on the part of management and staff would result in commitment.

(ii) Specific Action Plan Strategy: For the implementation of HRD a time bound plan should be developed by the management. Techniques like PERT/CPM may be used in this context. The strategy should be designed in terms of goals and objectives.

(iii) Building Morale and Motivation Among the Members of an Organisation: Management of an organisation must have belief that personnel in an organisation are the key to development. This requires proper motivation of the employees which provides a base for the management functions of planning and organising. A climate of creativity must be developed and maintained by the managements.

(iv) Counselling and Mentoring: The management must provide proper counselling and mentoring to its employees. The main purposes of this exercise is to help the employees scientifically to be sensitized to then potential, their strengths and weaknesses.

(v) Developing Team Work: Developing team work is another essential for the implementation of HRD. Team work requires among other things, that the members have an image of their own team mates, which coincides as precisely as possible with reality.

(vi) Creating Effective HRD Climate: HRD climate creates interest and motivation among the employees to stay long in an organisation. It creates growth opportunities and recognition. Its success is vitally based on top management’s confidence in employees which will propel them to take initiative and meet challenging responsibilities for the organisation.

(vii) Developing Emotional Intelligence: A large number of surveys have shown that emotions of the employees play a significant role in determining their output. Actions that spring from the emotional mind carry a particularly strong sense of certainty that cannot be justified or explained by the rational mind. Therefore, HRD should focus on enhancing the emotional intelligence of the organisation.

(viii) Imparting need based and on going training: The ultimate goal of training is improving work ethics of employees for raising the standards of organisational performance. Training is an investment in the HRD process which gives dividends both in short run and long run. An organisation can do better if it invests in technology development and improvement of human systems. Training is essential for both of them.

(ix) Emphasis on Excellence: HRD must lay emphasis on excellence. Excellence is a state of mind which prepares the employees to perform their duties with dedication. It also creates self reliance and helps them to have a vision and an urge to do better and better.

(x) Replacing Rigidity with Flexibility: HRD machinery must be flexible and be able to respond quickly and effectively to a changing environment, as rigid and inflexible systems will not be able to deal with changing situations.

Some qualities and qualification which will be applicable in general are as described below:

(a) Personal Attributes: The personal function gives us some idea of the qualities, which a successful HRD manager must possesses. Some of these qualities are as follows:

(i) Decisiveness: The HRD manager should have analytical, ability, sound judgement, foresight etc.

(ii) Intelligence: Like any other manager, a HRD manager must be intelligent.

(iii) Communicative Skills: The HRD manager should have command over language, ability to express correctly, ability to explain etc.

(iv) Educational Skills: HRD manager should possesses learning and teaching skills as he has to learn and teach employees about the organisational development, need etc.

(v) Executing Skills: HRD manager should have adequate executing skills which refer to ability to implement policies and programmes speedily and accurately.

(b) Experienced and Training: Training in industrial psychology, labour legislation and industrial relations is very useful for a HRD manager. Previous experience in an advantage provided the experience was in an appropriate environment and in the same area.

(c) Professional Attitudes: Keeping the diversity and elasticity of the HRD manager’s job in mind, the following educational qualifications may be necessary to achieve success, in addition to the qualities already discussed:

(i) Degree from a recognised university.

(ii) Post graduate degree/diploma in HRM/HRD/Labour/Welfare/Social work/Psychology/Industrial relations/MBA with specialisation in HRM.

(iii) Degree in law (desirable/additional qualification).

(iv) Knowledge of local language.

37. Comment on the emerging issues in the Human Resource Management.

Ans: Human resource managers have to face more problems in the management of labour because of the changing business environment. All the elements of business environment viz; socio-cultural, economic, technological, and political are continuously changing, as a result the nature and scope of human resource management is also changing. In the initial stages of development, it was known as labour relations, then it became personnel management and most recently it has changed to human resource management. The human resource managers may find themselves obsolete in future if they do not update themselves. The human resource managers are acquiring status and power, particularly in large organisations. There was a time, when personnel function was considered as a dumping ground for executive misfits, but now the position of personal manager is considered next to the chief executive.

Some of the important changes which are taking place in the field of human resource management are as follows:

(i) Increase in the size of workforce.

(ii) Changing composition of workforce.

(iii) Increase in education levels.

(iv) Technological advancement

(v) Changes in political environment.

(vi) Changes in legal environment.

(vii) Changes in psycho-social system.

(viii) Computerised information system.

(ix) Mobility of professional and technical workforce.

(x) Organisational development.

(xi) New work ethics.

(xii) New personnel policies.

(xiii) Development planning

(xiv) Industrial relations.

Management of human relations in the future will have to face new challenges and take, up new responsibilities. Thus, the job of human resource managers will be even more complicated in future. The managers will have to treat human resources as vital instruments in achieving the goals of the organisations. Instead of autocratic leadership there will be participative leadership. Human relations approach will be used to deal with employees and trade unions. Emphasis will shift from legal and rule bound approach to open and humanitarian approach. Money will no longer be the sole motivating force for majority of the workers. Non-financial incentives will also play an important role in motivating the workforce. In short, human resources will be treated as assets in future and like other assets they will also appear in the balance sheets of the business organisations.

38. Explain the impact of globalization on Human Resource Management?

Ans: Globalization in India since 1991, is having a major impact on the human resource management, with the globalization of business, national labour markets are becoming increasing interdependent. Maintaining the employment and improving its quality in a particular country requires that its human resource markets must be responsible not only to changes related to development and growth within the country but also to changing conditions world wide. At the same time, globalisation creates scope for MNCs and TNCs to play a role in generating and upgrading of employment and development of human resources in host countries. A global business must procure, motivate, retain and effectively utilise services of people both at the corporate office in the home country and at branches and plants in the countries.

Globalisation poses the following challenges for the human resource managers:

(i) All the companies have to put emphasis on the upgradation of managerial and professional skills.

(ii) To restructure the organisations an important human resource strategy to be implemented.

(iii) Middle level managers are fast becoming participative and result oriented.

(iv) Career planning and career growth for employees is receiving considerable significance.

(v) The compensation of the employee is to be connected with performance through bench marking, business process re-engineering etc.

(vi) To create a responsive, goal oriented and competitive organisation, networking is being adopted by the organisation itself.

(vii) An important challenge before the human resource managers is to prepare the employees for foreign work assignments.

The training technique may differ from devising documentary programmes that merely expose people to a new culture through material covering the country’s socio-political history, geography, economics, language and cultural institutions, to intense inter-personal experience training, in which individual can participate in role playing exercise, simulated social settings and similar experiences in order to feel the differences in a new culture.

39. What are the challenges faced by HR Manger in Present business environment.

Ans: The challenges faced by HR Manger in Present business environment are: 

(i) Change Management: Change management represents a particular challenge for personnel management. The WFPMA finds that “This may also be the reason why it is cited as the foremost issue as HR continues to attempt to help businesses move forward. An intensified focus on training may be needed to develop added competencies to deal with change management.”

(ii) Diversity Management: Diverse culture is highly appreciated in the business market. However, the ideological differences it brings to the organizations add to the challenges of HRM. Cultural biases, differences in opinions, and identity clashes are among the many human resources issues the HR department faces due to increased diversity.

(iii) Leadership Development: As the second of the biggest challenges for human resource management, leadership development needs to be a critical strategic initiative. HR professionals are faced with being expected to provide the essential structures, processes, tools, and points of view to make the best selection and develop the future leaders of the organization. 

(iv) Employee Retention: Consequently, HRM faces a serious challenge in retaining employees. Employee development initiatives, in particular, can help the organization enhance employee engagement while also earning their trust, loyalty, and retention.

(v) HR Effectiveness Measurement: “Utilizing metrics to determine effectiveness is the beginning of a shift from perceiving HR’s role as purely an administrative function to viewing the HR team as a true strategic partner within the organization,” the WFPMA says. “In fact, the next section reports that survey participants believe a critical future issue for HR will be organizational effectiveness, again supporting HR’s critical role as a strategic partner to management.”

40. Discuss the perspective of International Human Resource Management?

Ans: Perspective influences practices. The perspective of international human resource management will differ from the indigenous one, the delineation of the former seems in the fitness of the context. The major factors that form perspective for international human resource management and, in turn, influence human resource management practices are scanned as cultural, economic, political, labour cost and industrial relations.

These are discussed as follows:

(i) Cultural Factors: Culture means shared beliefs, values, norms, and moral by the people. Organisational culture means a pervasive underlying set of beliefs, assumptions, values, shared feelings and perceptions, which influence the behaviour of people in the organisation. The same distinguishes one organisation from another. Similarly, at macro level too, wide ranging cultural differences exist across the nations/ countries. This is the first and foremost factor that form perspective for international business.

(ii) Economic conditions/Factors: Like cultural differences, there abound economic differences among nations/countries. Differences in economic conditions or systems cause intercountry differences in human resource practices.

(iii) Labour Cost Factors: Human resource practices are also influenced by differences in labour costs existed in different countries. If the labour cost is high, it can require more focus on labour efficiency which, in turn, can influence human resource practice to shift toward improving labour performance. Labour may get remuneration as per performance i.e., pay-for-performance, Evidences are available to mention the intercountry differences in labour costs. Labour cost is quite more United Kingdom than in India.

(iv) Labour relations factors: Labour relations or industrial relations i.e., relationship between employees, employers and the government that vary from country to country and have an enormous bearing on affecting human resource practices. For example, in Germany, co-determination is the rule. Here, the employees enjoy legal right to have their voice in the matters of their company. On the other hand, in India and many countries, the states has its role to play in the relations between employees and employers. As seen above, wide inter-country differences in culture, economic systems, labour costs, and industrial relations systems affect human resource practices, Hence, human resource managers need to consider these impacts and evolve human resource practices for business operations conducted globally. The subsequent section deals with the same.

41. Discuss the various definitions on workforce diversity. Explain the new challenges of Human Resource Management with respect to Workforce Diversity. 

Ans: Workforce diversity means the heterogeneous composition of employees of an organization in terms of age, gender, language, ethnic origin, education, marital status, etc. Managing such diversity is really a challenge to HRM professionals.

According to Moorhead and Griffin- “Workforce diversity is concerned with the similarities and differences in such characteristics as age, gender, ethnic heritage, physical abilities and disabilities, race, and sexual orientation, among the employees of organisations.”

Workforce diversity has significant implications for the management. The managers will be required to shift their approach from treating each group of workers alike to recognizing differences among them and following such policies so as to encourage creativity, improve productivity, redue labour turnover and avoid any sort of discrimination.

When workforce diversity is managed properly, there would be better communication, better human relations and congenial work culture in the organisation.

India is a land of diversity that is caused by many factors such as multilinguist composition of the subcontinent, co-existence of people following a large number of religions, an age old and deep rooted multi-caste system and cultural invasion from the outside world that has confused the original values of the Indian mind.

Diversity based on religion, race, caste, language, gender etc. among the workforce is to be duly recognized and managed. Also, a large number of women entering the work arena is emerging as a contributory factor to diversified workforce in modern organisations. No wonder, therefore, the organisations in India have to deal with a very diverse social group of employees.

This is viewed by managers as a problem without which they would have done better. However, what many managers fail to comprehend is that workforce diversity presents an opportunity, and an advantage that can be used to compete and win in the global market place.

Workforce diversity has created new challenges for human resource management. Some of these challenges are as follows:

(i) The prerequisite to deal with diversity is the top management commitment. Leadership from all levels should be involved to accomplish diversity goals. Plans should be developed to meet diversity goals and overcome the obstacles.

(ii) HR professional should design and use new employee benefits grievance redressal mechanisms and participation plans to overcome alientation, demotivation, poor morale and other type of counter productive behaviour.

(iii) Human resource (HR) managers must try to understand the changing values of young people. Appropriate changes in human resource policies and programmes are needed to attract and retain young talent.

(iv) Awareness must be created through training, literature and consultants. These programmes should provide diversity awareness and educate employees to cope up with the changes that takes place in the organisation.

(v) Increasing number of female employees in the workforce require that the human resource managers should accommodate female employee needs such as flexible work schedules, child care facilities, maternity leaves, couple transfers, job sharing etc.

(vi) Human resource managers should ensure that there is no discrimination among the employees.

(vii) The older employees of the organisation require better health care facilities and higher pension costs.

(viii) There should be a proper communication system in the organisation which includes speeches by senior executives, inclusion of diversity brochure and inclusion of diversity as a topic in new employee orientation.

(ix) Diversity audit must be instituted to review the effectiveness of any organisation’s diversity management programmes.

(x) Organisations have to replace the centralised and uniform approach with a decentralised and plural system. Focus has to be shifted from quantity to quality of life.

42. Describe the various uses of Human Resource Information System in an organisation. Explain the information needs of Human Resource Information System?

Ans: The various uses of HRIS in an organisation can be listed as follows:

(i) Personnel Administration: It encompasses personal information of an employee. These may include name, address, date of birth, marital status and the date of joining the organisation. These information describe the employee.

(ii) Salary Administration: One of the functions of HRIS is to provide a report containing information like present salary, benefits, last pay increase and proposed increased in future.

(iii) Leave/Absence Increase: HRIS is also used to control leave/ absence of employees. This is done by maintaining a leave history of each employee.

(iv) Skill Inventory: Recording employee skills and monitoring a skill data base is yet another use of the HRIS.

(v) Medical History: The HRIS is also used to maintain occupational health data required for industrial safety purposes, accident monitoring and so on.

(vi) Performance Appraisal: In order to form a comprehensive overview about an employee, HRIS maintains performance appraisal data such as the date of the appraisal, potential for promotion, scores of each performance criteria and alike.

(vii) Manpower Planning: HRIS is used for manpower planning also It keeps information of organisational requirements in terms of positions. HRIS connects employees to the required positions in the organisation. It is also used to identify vacancies and establish employees there on.

(vill) Recruitment: HRIS helps in the recruitment process in a big way by recording the details of activities involved in employee recruitment.

(ix) Career Planning: By providing necessary information such as which employees have been earmarked for which positions, HRIS facilitates positional advancement of employees. In other words, HRIS helps in planning for succession.

(x) Collecting Bargaining: HRIS through a computer terminal can provide up-to-date relevant and required information, facts and figures and these can facilitate collective bargaining. In the same manner, HRIS can also help in maintaining better human relations in the organisation.

The need for human resource information system arises due to the following factors:

(i) In case of organisations which are geographically dispersed, every office requires timely and accurate information for manpower management.

(ii) An employer has to comply with several labour laws. A proper information system would store and retrieve data quickly and correctly enabling the employer to comply with statutory requirements.

(iii) Large organisations employ a very large numbers of people. It becomes necessary to have an effective information system to tackle the personnel problems.

(iv) Nowadays, salary packages are becoming very complex consisting of many allowances and deductions. Information system is needed to store this information.

(v) With the help of information system, employee records and files can be integrated “for fast retrieval” cross referencing and forecasting. The system should be oriented towards decision making rather than towards record keeping.

From the above, it can be concluded that planning and control of human resources need a sound information base. The human resource managers have to take various decisions at various levels of its management hierarchy. For taking these decisions information is needed. Quality of the decisions will depend upon the nature and type of information provided for taking the decisions. Therefore, for the efficient working of the human resource department effective information system is very important. This system supplies information required for the effective management of human resources in an organisation.

43. Write short notes on Data Management?

Ans: Data management is one of the process of human resource information system.

A good data management system involves the following sub functions:

(i) Processing operations: It includes: 

(a) Classification of data.

(b) Analysis of data. 

(c) Summarising the data.

(d) Editing the data.

(ii) Storage of data: It includes: 

(a) Indexing.

(b) Coding.

(c) Filing.

(iii) Retrieval of data, whenever required.

(iv) Evaluation i.e., judging the relevance and accuracy of data.

(v) Dissemination i.e., providing the required data at right time and in the right form.

The data management system design must not be rigid. An efficient system must be able to quickly respond to change in conditions.

The data management system supplies information required for the effective management of human resources in an organisation. It can be built around electronic computers in case of big organisations.

44. Discuss the evolution and development of Human Resource Management in India.

Ans: Evolution and Growth of Human Resource Management: People – The Principal Resource: The principal resource of any organization is people and managing people is the most important and challenging aspect of an organization. What we call human resource management today dates back to 1800 B.C., which is evident from the inscriptions of Babylonia code of Hammurabi and Kautilya’s Arthasashtra, which explains in detail the importance of selection, incentives, performance evaluation, quality of a manager and wage rates. So, we understand that the concept of managing people has existed even in the previous eras through ancient literature and philosophy. India, China and Greece have been the origin points of human resource management concepts.

Industrial Revolution: Till, 1930’s, there was no such department called “personnel management” that was considered necessary to cater to the needs and welfare of the labor society. The factory manager was acting as a link between the workers and the management, and most of the time he had to comply with the rules of the management to satisfy them, even if it were against the welfare of the workers. Also proper attention was not given to areas like, worker safety, security and living conditions. Industrial revolution saw mass exodus of workers to urban areas in search of jobs.

Need for employment Department: Application of science and technology in production made the rich owners even richer; the poor workers were not paid adequately and their life became miserable. Since the owners lost direct contact with the employees, managers came into the picture to take over control of production and administration. Machines ruled the industry and importance of labor got reduced. This condition existed for sometime until the advent of new and improved management concepts by people like F. W. Taylor who is considered to be the father of scientific management and B.F.Goodrich who was instrumental in forming the “employment department” which can be considered the fore runner of present human resource department.

Introduction of Scientific Management: Scientific methods were introduced to make the workers perform the job with ease and perfection. It also saved enormous time and reduced the monotony of work. Job- designs, job-specification, training and development and human relations were given due importance and the owners slowly started realizing the importance of labor. Through 1940’s to 1970’s behavioral approach was applied to professional management, the major architects being Abraham Maslow, Herzberg and Douglas McGregor. This approach suggested managers to modify their leadership styles to suit the type of followers and motivate the workers.

Consequences World War I and II: World War I and II also had profound influence on Human resource development. The concepts of role playing, improved training methods, supervision and group discussion came into the fray. The advent of labor unions also established a clear pathway for the workers to claim their rights, ably supported by the labor laws enacted by various governments. International labor organization was formed in 1919 which created sensation in the worker community all over the world. All said and done, empowerment of workers has been achieved only in developed nations where “job security” is no more a great concern because job opportunities are more. But in unorganized and small sectors, employers continue to exploit workers because “supply” is more than “demand”. The responsibility to develop and empower the employees solely lies on the shoulders of human resource department. It should try to address the problems of workers to the management and amicably settle issues relating to wages, welfare, safety and security.

45. What are the different dimensions of workforce diversity?

Ans: The characteristics that describe the workforce of an organisation may be categorized under two groups, namely, primary dimensions and secondary dimensions.

Primary dimensions such as age, gender, race, ethnicity, sexual orientation, and physical abilities represent those elements that are either inborn or exert extra influence on early socialization. These dimensions make up the essence of who we are as human beings. They define us to others, making them react towards accordingly.

These are an enduring aspect of our personality. Secondary dimensions rep-resent those elements that we learn or over which we have some control throughout our lives, such as education, marital status, religious beliefs, language, etc. Secondary dimensions add an additional layer of complexity to the way we see ourselves and others, and in some instances can exert a powerful impact on our core identities.

In an organization, people enter the workforce with a unique perspective shaped by primary and secondary dimensions. Building effective human relationships is possible only when people learn to accept and value the differences in others. Without this acceptance, both the primary and secondary dimensions of diversity can act as roadblocks to further cooperation and understanding.

(i) Primary Dimensions: These are core elements about each member of the workforce that can’t be changed such as age, race, gender, physical and mental abilities and sexual orientation. These inborn elements are interdependent and exert an important influence on individual’s behaviour throughout the life. Together they form an individual’s ‘self. image’.

Gender diversity is increasingly apparent throughout the world. Not only are more women working, but gender-based occupational segregation is also declining in many countries. Thus, within corporations men and women are more likely to be found working side-by-side. Age diversity is increasing too. Many industrialized countries are experiencing declining rates of population growth, which push employers to hire both young and older employees.

Furthermore, as organisations allow the higher education of younger employees to substitute for the job experiences that previous cohorts of employees had to accrue in order to be promoted, relatively young employees are found more often in higher level positions. Consequently, age diversity is replacing the homogeneity associated with traditional age- based stratification.

The greater the number of primary differences between people, the more difficult it is to establish trust and mutual respect. Culture clash and conflicts that occur between groups of people with different core identities can have a devastating effect on human relations in an organisation.

Few organisations are immune to the problems that result from the interaction between the genders and among the generations. When we add the secondary dimensions of diversity to the mix, effective human relations become even more difficult.

(ii) Secondary Dimensions: These constitute the elements that can be changed or at least modified. They include a person’s health habits, religious beliefs, education and training, general appearance, status relationship, ethnic customs, communication style and level of income. All these factors add an additional layer of complexity to the way we see ourselves and others and in some instances can exert a powerful impact on our core identities.

An accountant with ten years of work experience might adjust to a new position far differently from an accountant with much less experience. A male earner who loses his job may be severely affected by his loss of income as he has to cater to his familial demands whereas a married woman with no children may not be as affected by a similar loss as her husband can still meet the requirements of the family.

Even though situations like these intensify the impact of particular secondary dimensions, they do not diminish the impact of primary or core dimensions. Instead, the interaction between primary and secondary dimensions shapes a person’s values, priorities and perceptions throughout life.

46. Distinguish between Human Resource Management and Human Resource Development.

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