Human Resource Management Solved Question Paper 2021, Gauhati University B.Com 4th Sem

Human Resource Management Solved Question Paper 2021

Gauhati University B.Com 4th Sem


COMMERCE 2021 (Honours)

Paper: COM-HC-4036 (Human Resource Management)

Full Marks: 80

Time: Three hours

The figures in the margin indicate full marks for the questions.

1. Choose the correct answer:                   1×6=6

a) Who introduced “Ten C” principle in HRM?

1. Edwin B. Flippo.

2. Rensis Likert.

3. Alan Price.

4. French Wendell.

Ans: 3. Alan Price.

b) Which one of the following is not the external source of recruitment?

1. Employment Exchange.

2. Campus Recruitment.

3. Advertising.

4. Previous Applicant.

Ans: 4. Previous Applicant.

c) The training techniques that allows trainees to solve problem and work in different departments is called

1. Job rotation.

2. Action learning.

3. Lifelong learning.

4. Management development.

Ans: 2. Action learning.

d) The multiple-input approach feedback is called _______ degree assessment.

1. 90.

2. 180.

3. 270.

4. 360.

Ans: 4. 360.

e) Which of the following is not a non-financial incentive?

1. Status.

2. Co-partnership.

3. Job security.

4. Organisational climate.

Ans: 1. Status.

f) Ensuring the safety, health and welfare of the employees is the primary purpose of the

1. Factories Act, 1948.

2. Payment of Wages Act, 1936.

3. Equal Remuneration Act, 1976.

4. Industrial Dispute Act, 1947.

Ans: 1. Factories Act, 1948.

2. Write very short answers: (within 30 words each)       2×5=10

a) What do you mean by Human Capital?

Ans: The economic value of worker’s experience and skills is termed as human capital. Human capital includes qualities like education, health, punctuality, communication skills, problem-solving, people management etc.

b) What is personality test?

Ans: Personality Test: These are pen and paper tests used to judge the psychological makeup of a person. These probes deeply to discover clues to an individual’s value system, emotional reactions and maturity, and his characteristic mood.

c) What is career planning?

Ans: Career Planning is the systematic process by which one selects career goals and the path to these goals. From the organisation’s viewpoint it means helping the employees to plan their career in terms of their capacities within the context of organisation’s needs.

d) State the objective of Job evaluation.

Ans: The objectives of job evaluation are as follows:

– To determine equitable wage differentials between different jobs in the organisation;

– To eliminate wage inequities;

– To develop a consistent wage policy;

– To establish a rational basis for incentive and bonus schemes;

e) State the essentials of a good incentive plan.

Ans: To be successful, a wage incentive plan must satisfy the following requirements:

– Proper Climate: Management must develop sound industrial relations before introducing the plan.

– Workers’ Participation: A wage incentive plan should be installed in consultation with workers and their union.

– Scientific Standards: The standards of performance for payment of incentives should be established through scientific work study free from bias and favoritisms.

– Guaranteed Minimum Wage: A minimum wage should be guaranteed to every worker irrespective of his performance.

– Economical: The plan should not be very costly in operation.

– Flexibility: There should be scope for making changes in the scheme to rectify errors and to take care of changes in technology, market demand, etc.

3. Write short answer of the following within 100 words each:  6×4=24

a) State the functions of HRM.

Ans: Functions of HRM: Management of human resources consists of several inter-related functions. These functions are common to all organisations though every organisation may have its own human resource management programme. These functions of human resource management may broadly be classified into two categories, viz.,

(1) managerial functions, and

(2) operating functions.

(1) Managerial Functions:

Planning: Planning is a predetermined course of actions. It is a process of determining the organisational goals and formulation of policies and programmes for achieving them.

Organising: Organising is a process by which the structure and allocation of jobs are determined.

Staffing: It is a process by which managers select, train, promote and retire their subordinates.

Directing/Leading: Directing is the process of activating group efforts to achieve the desired goals.

Controlling: It is the process of setting standards for performance, checking to see how actual performance compares with these set standards, and taking corrective actions as needed.

(2) Operative Functions: The operative, also called, service functions are those which are relevant to specific department. These functions vary from department to department depending on the nature of the department Viewed from this standpoint, the operative functions of HRM relate to ensuring right people for right jobs at right times. These functions include procurement, development, compensation, and maintenance functions of HRM.

1.   Procurement Function: It is concerned with securing and employing the right kind and proper number of people required to accomplish the organisational objectives.+

2.   Development Function: Human resource development is the process of improving the knowledge, skills, aptitudes and values of employees so that they can perform the present and future jobs more effectively.

3.   Compensation Function: It refers to providing equitable and fair remuneration to employees for their contribution to the attainment of organisational objectives. It consists of the following activities:

(a)  Job Evaluation: It is the process of determining the relative worth of a job.

(b) Wage and Salary Administration: It implies developing and operating a suitable wage and salary programme.

(c)  Bonus: It involves payment of bonus under the Payment of Bonus Act, 1965 as well as non-statutory bonus and other incentives.

4.   Integration Function: It is the process of reconciling the goals of the organisation with those of its members.

5.  Maintenance Function: It is concerned with protecting and promoting the physical and mental health of employees.

b) Write the essentials of a sound HR policy.

Ans: Essentials of Sound Human Resource Policies

The main requirements of a good human resource policy are as follows:

1. A human resource policy should contribute to human resource objectives and objectives of the organisation as a whole. It should be based on the philosophy that human beings are the most valuable asset of any organisation.

2. It should be stated in clear, definite and easily understood terms so that what it proposes to achieve is evident. Only a clear policy statement can serve as a guide to thinking and decision-making.

3. It should be in writing as far as possible. This is necessary to preserve the policy against loss, to prevent misunderstanding and to ensure uniformity of application.

4. It should be reasonably stable and long lasting. Changes in a policy should be made only when essential and at fairly large intervals.

5. It should be flexible so at to take care for individual differences and situational relates. Therefore, a policy should be stated in broad terms and it should be reviewed and revised periodically.

6. A policy should give due regard to interests of all the parties – the employer, employees and the general public.

c) What are the essentials of good selection policy?

Ans: Essentials of a good selection policy

a) Detailed job descriptions and job specifications needs to be prepared in advance and also endorsed by personnel and line management.

b) Training of selectors is also necessary.

c) Determine in advance essentials aids to be used in selection process.

d) Recruitment consultant’s competence must also be checked before retention.

e) Help the appointed candidate to succeed by training and management development.

f) Involvement of line managers at all stage of selection is also necessary.

d) What is Voluntary Retirement Scheme (VRS)? State the benefits of VRS.

Ans: Voluntary retirement scheme is a method used by companies to reduce surplus staff. This mode has come about in India as labour laws do not permit direct retrenchment of unionized employees.

VRS applies to an employee who has completed 10 years of service or is above 40 years of age. It should apply to all employees (by whatever name called), including workers and executives of a company or of an authority or of a co-operative society, excepting directors of a company or a co-operative society.

It has to result in an overall reduction in the existing strength of employees. The vacancy caused by voluntary retirement is not to be filled up. The retiring employee shall not be employed in another company or concern belonging to the same management. The amount receivable on account of voluntary retirement of the employee does not exceed the amount equivalent to three months’ salary for each completed year of service, or salary at the time of retirement multiplied by the balance months of service left before the date of retirement on superannuation of the employee. It is the last salary drawn which is to form the basis for computing the amount of payment.

VRS is beneficial for both employer and employee:

a) VRS is most humane way to reduce surplus employees from the organisation because it does not affect reputation of the employer.

b) Since it is voluntary in nature, labour union normally do not oppose it.

c) VRS helps employer to reduce their monthly payroll cost.

d) Payment of heavy voluntary retirement compensation to retiring employees prevents resentment on their part.

4. Answer any four of the following questions: (Each within 300 words) 10×4=40

a) Describe the procedure involved in developing and implementing Human Resource Information System (HRIS).

Ans: HRIS (Human Resource Information System)

A human resource information system (HRIS) is software that provides a centralized repository of employee master data that the human resource management (HRM) group needs for completing core human resource (core HR) processes.

An HRIS stores, processes and manages employee data, such as names, addresses, national IDs or Social Security numbers, visa or work permit information, and information about dependents. It typically also provides HR functions such as recruiting, applicant tracking, time and attendance management, performance appraisals and benefits administration. It may also feature employee self-service functions, and perhaps even accounting functions.

In some ways, an HRIS can be considered a smart database of employee information. The interaction of the data, the processes that can be performed and the reporting capabilities make the data stored in the system more accessible and usable.

Steps involved in Designing a Human Resource Information System

The type and range of HRIS depends on the nature and size of the organisation, preferences of top management, need for governmental regulations, availability of software packages, etc. the steps involved in the development of a sound HRIS are given below:

1. Preliminary Systems Analysis. It involves definition of the problem, specification of objectives and operational needs, constraints affecting the system, making feasibility study and submission of the report.

2. Systems Design. At this stage the problem is described in detail. Alternatives to meet the objectives are described and evaluated. Broad engineering requirements of the chosen alternative are specified and its effects on people are estimated.

3. Systems Engineering. In this step, a detailed study of engineering components and their cost effectiveness is made. Recommendations about the system are then made to the top management.

4. Systems Testing and Implementation. The total HRIS, its sub-systems and running of the system are tested and installed.

5. Systems Monitoring and Evaluation. It involves measuring the performance of the system its continuous evaluation and modification. It is necessary to solve properly the human problems in system design and control. For this purpose, the organisation should determine the potential contribution the HRIS can make to the strategic need and competitive posture of the company. It is necessary to make the people throughout the organisation aware of the advantages of the Human Resource Information System.

b) Discuss the status and qualities of a Human Resource Manager with reference to plantation industry. Ans:

Competencies of Human Resource Manager (HR Manager)

1. Communication: An HR manager must be able to communicate with everyone in the workplace — from line staff to executive leadership. In addition, communication skills are important for HR managers to interact effectively with outsourcing providers, union leaders, public officials and employees, prospective employees and colleagues. They need to know when to adapt their communication skills to the audience and the situation. For example, HR managers must be able to convey the importance of fair employment practices to the company’s executive team with the same genuineness and passion as they would to hourly employees.

2. Analytical and Critical Thinking: Analytical and critical thinking skills are a must for HR leaders. An HR manager has to exercise sound judgment and engage in high-impact decision-making in a number of areas. The ability to analyse situations and view the implications of certain decisions from a critical perspective is particularly useful for HR leaders. For example, the decision whether to outsource one or several HR functions isn’t something that happens without considering the impact outsourcing has on individual employees as well as the organization overall. HR managers also are involved in representing the company in matters involving employment litigation, which requires that they be able to justify the company’s actions related to employment decisions such as hiring and firing.

3. Relationship-Building: Creating a cohesive HR department that works collaboratively to achieve the goals of the department as well as help the organization reach its goals related to workforce development is a competency that HR managers must have. Relationship-building and interpersonal relationship skills are fundamental to an HR manager’s success. One of the challenges HR faces is establishing credibility with employees — many employees equate their HR departments with the school principal’s office, which suggests a level of intimidation and trepidation associated with their view of HR’s purpose. That being said, an HR manager must have the ability to establish credibility and trust as well as balance the obligation to be an advocate for both the organization and its employees.

4. Leadership: Leadership skills are an essential competency for HR managers. HR managers are responsible for creating strategic plans for the HR department as well as the overall workforce. Therefore, leadership skills are critical, particularly in the process of justifying the functional elements of a strategic plan to the company’s management team. In addition, HR managers have to direct the activities of the HR department, and in doing so, they need the type of leadership skills that influence HR generalists’ and HR specialists’ commitment to the HR department goals.

5. Educational Qualifications: A Human Resource Manager should possess the following qualifications:

a) Degree of recognised university.

b) Postgraduate degree/diploma in sociology or social work or human resource management/industrial relations/labour welfare/labour law, or MBA with specialisation in HRM.

c) Degree in law will be an additional/desirable Qualification.

6. Training and Experience: Training in industrial psychology, labour legislation and industrial relations is very useful for a human resource manager. Experience in an organisation helps him to create a pertinent approach. To some extent, HRM is an art where practice makes one a successful manager.

7. Professional Attitudes: HRM is emerging as a profession. A professional approach to the management of human resources is required in the global environment.

Status of Human Resource Manager

Over the years, the position of human resource manager has changed significantly. In the yearly days of industrialisation, he was considered a second class officer in his organisation. But today human resource manager is treated as a philosopher and specialised practitioner. A brief description of the evolving status of human resource manager is given below:

1.   The Policeman: The earliest position that the human resource manager occupied was that of a policeman. Management believed that workers dislike work and avoid responsibility. Therefore, they need to be directed, controlled and coerced. The human resource manager was used as a watchdog to enforce prescribed regulations. When the employees agitated, shouted slogans and held gate meetings, a man was needed to discipline and control them. The human resource manager was required to handle law and order problems within the industry.

2.   The Law Man: With the establishment of Welfare State, laws and regulations were enacted to protect and promote the interests of employees. Employers felt the need to study and interpret labour laws to assess their legal obligations, and to represent them before the law enforcing agencies. In the legal battle with workers, human resource manager become an employer’s advocate. He was required to issue charge sheets and hold inquires against workers.

3.   The Liaison Man: With the passage of time trade unions became powerful. Employers required someone to deal and negotiate with the union. The human resource manager was asked to take over the job. He also became a shock absorber and a scapegoat. He was now and then misunderstood, ridiculed but again recalled.

4.   The Catering Man: Some enlightened employers began to provide welfare facilities like canteen, crèche, etc. to workers in addition to their legal obligations. The human resource manager began to administer these services.

5.   The Welfare Man: Under Section 49 of the Factories Act, a welfare officer has to be appointed in specific factories. He is expected to handle labour aspects like recruitment, welfare aspect like housing and industrial relations aspect like collective bargaining.

6.   The Productivity Man: Today, human resource manager is considered as expert in human relations. He is expected to improve productivity by fulfilling the economic, social and psychological needs and aspirations of employees. In the years to come, human resource manager will have to meet the challenge of a fast changing post-industrial society.

c) What is Human ResourcePlanning? Briefly discuss the Human Resource planning process. 

Ans: Human resource planning can be defined as the process of identifying the number of people required by an organization in terms of quantity and quality. All human resource management activities start with human resource planning. So we can say that human resource planning is the principle/primary activity of human resource management.

According to Gordon Mc Beath, “HRP is concerned with two things: Planning of manpower requirements and Planning of Manpower supplies”.

According to Beach, “HRP is a process of determining and assuming that the organization will have an adequate number of qualified persons, available at proper times, performing jobs which meet the needs of the enterprise and which provides satisfaction for the individuals involved”

Simply HRP can be understood as the process of forecasting an organization’s future demands for and supply of the right type of people in the right number. In other words, HRP is the process of determining manpower needs and formulating plans to meet these needs.

Process/Steps in HRP

HRP is done by the HRD manager. He is supported by the HRD department. He takes following Steps in the process of Human Resource Planning HRP.

1. Review of Organisation’s Objectives: The HRD Manager first studies the objectives of the organisation. Then he prepares a list of all the activities (jobs) that are required to achieve the objectives. He also does Job’s analysis.

2. Estimation of Manpower Requirements: The HRD manager then estimates the manpower requirement of the organisation. That is, he finds out how many people (manager and employers) will be required to do all the jobs in the organisation. Estimation of manpower requirements must be made in terms of quantity and quality.

3. Estimation of Manpower Supply: The HRD manager then estimates the manpower supply. That is, he finds out how many managers, and employers are available in the organisation.

4. Comparison of Manpower: The HRD manager then compares the manpower requirements and manpower supply.

5. In case of no difference: If there is no difference between the manpower requirements and the manpower supply, then the HRD manager does not take any action. This is because manpower requirements are equal to the manpower supply.

6. In case of difference: If there is a difference between the manpower requirements and the manpower supply the HRD manager takes the following actions:

a. Manpower Surplus: If the manpower requirements are less than the manpower supply then there is a surplus. During manpower surplus, the HRD manager takes the following actions: Termination i.e. removal of staff, Lay-off, Voluntary retirement.

b. Manpower Shortage: If the manpower requirements are greater than the manpower supply then there is manpower shortage. During manpower shortage, the HRD manager takes the following actions: Promotions, Overtime, Training to improve quality, Hire staff from outside, etc.

7. Motivation of Manpower: HRP also motivates the employers and managers by providing, financial and non-financial incentives.

8. Monitoring Manpower Requirements: The HRD manager must continuously monitor the manpower requirements. This is because many employees and managers leave the organisation by resignation, retirement, etc. and new work force must take their place fill the manpower gap. This helps in uninterruptible functioning of the organisation.

d) Critically evaluate the need of training and development as a source of competitive advantages.

Ans: Training refers to the imparting of specific skill, abilities and knowledge to employee. System and practices get outdated due to new discoveries in technology, including technical, managerial and behavioral aspects. In this context training enhances the knowledge, skills and attitudes of employees to increase efficiency and effectiveness on the prsent job as well
as expected future job.

Training is defined by Wayne Cascio as “training consists of planed programs undertaken to improve employee knowledge, skills, attitude, and social behavior so that the performance of the organization improves considerably.”

Training is normally viewed as a short process. It is applied to technical staff, lower, middle, senior level management. When applied to lower and middle management staff it is called as training and for senior level it is called managerial development program/executive development program/development program.

Objectives/purpose/goals/Needs of training and development

Defining training objectives in both qualitative and quantitative terms helps in evaluating and monitoring the effectiveness of training. Involvement of top management is necessary in order to integrate training objective with organizational objectives. Employees will definitely learn best when objectives of the training program were clearly stated to them,
objective means the purpose and expected outcome of training activities.

1.       To impart basic knowledge and skill to new entrants required for intelligent performance of definite task in order to induct them without much loss of time.

2.       To assist employees to function more effectively by exposure of latest concepts information and techniques and development of skills required in specific fields including production, purchase, marketing, logistics, information technology etc.

3.       To broaden minds of supervisors. Sometimes, narrowness of outlook may arise in supervisors because of specialization. In order to correct this narrowness, they are provided with opportunities and interchange of experience.

4.       To build second line of competent employees and enable them to occupy more responsible positions as situation emerge.

5.       To prepare employees to undertake different jobs in order to enable redeployment and maintain flexibility in workforce so that ever changing environment of market can be met and downturns can be managed without losing experienced employees.

6.       To provide employees job satisfaction, training enables an employee to use their skill, knowledge and ability to fullest extent and thus experience job satisfaction and gain
monetary benefits from enhanced productivity.

7.       To improve knowledge, skills, efficiency of employees to obtain maximum individual development.

8.       To fulfill goals of organization by securing optimum co-operation and contribution from the employees.

e) What is Performance appraisal? Discuss the modern methods of performance appraisal.

Ans: Performance Appraisal is a systematic way of judging the relative worth of an employee while carrying out his work in an organization. It also helps recognize those employees who are performing their tasks well and also- who are not performing their tasks properly and the reasons for such (poor) performance.

According to Flippo, a prominent personality in the field of Human resources, “performance appraisal is the systematic, periodic and an impartial rating of an employee’s excellence in the matters pertaining to his present job and his potential for a better job.”

In the words of Yoder, “Performance appraisal refers to all formal procedures used in working organizations to evaluate personalities and contributions and potential of group members.” Thus performance appraisal is a formal programme in an organization which is concerned with not only the contributions of the members who form part of the organization, but also aims at spotting the potential of the people.”

According to International Labour Organization, “A regular and continuous evaluation of the quality, quantity and style of the performance along with the assessment of the factors influencing the performance and behaviour of an individual is called as performance appraisal.”

In short, we can say that performance appraisal is expected to result in an assessment of: development potential of the employees, training needs for the employees; capabilities of employees being placed in higher posts, behavior and obedience of the employees; and the need of the organization to evolve a control mechanism.

Traditional and Modern Methods of Performance Appraisal

Performance appraisal methods are categorized in two ways traditional and modern methods. Each organization adopts a different method of performance appraisal according to the need of organization. In small organization, it may be on an informal basis where personal opinion of a superior about his subordinates may consider for appraisal.

Traditional Methods

1. Ranking Method: It is the oldest and simplest method of performance appraisal in which employees are ranked on certain criteria such as trait or characteristic. The employee is ranked from highest to lowest or from worst to best in an organization. Thus if there are seven employees to be ranked then there will be seven ranks from 1 to 7.

2. Paired Comparison: In method is comparatively simpler as compared to ranking method. In this method, the evaluator ranks employees by comparing one employee with all other employees in the group. The rater is given slips where, each slip has a pair of names, the rater puts a tick mark next those employees whom he considers to be the better of the two. This employee is compared number of times so as to determine the final ranking.

3. Grading Method: In this method, certain categories are defined well in advance and employees are put in particular category depending on their traits and characteristics. Such categories may be defined as outstanding, good, average, poor, very poor, or may be in terms of alphabet like A, B, C, D, etc. where A may indicate the best and D indicating the worst.
This type of grading method is applied during Semester pattern of examinations. One of the major limitations of this method is that the rater may rate many employees on the better side of their performance.

4. Forced Distribution Method: This method was evolved to abolish the trend of rating most of the employees at a higher end of the scale. The fundamental assumption in this method is that employees’ performance level conforms to a normal statistical distribution. For example, 10 per cent employees may be rated as excellent, 40 per cent as above average,
20 per cent as average, 10 per cent below average, and 20 per cent as poor. It eliminates or minimizes the favoritism of rating many employees on a higher side. It is simple and easy method to appraise employees. It becomes difficult when the rater has to explain why an employee is placed in a particular
grouping as compared to others.

5. Forced-choice Method: The forced-choice rating method contains a sequence of question in a statement form with which the rater checks how effectively the statement describes each individual being evaluated in the organization. There may be some variations in the methods and statements used, but the most common method of forced choice contains two statements both of which may be positive or negative. It may be both the statement describes the characteristics of an employee, but the rater is forced to tick only one i.e. the most appropriate statement which may be more descriptive of the employee.

6. Check-list Method: The main reason for using this method is to reduce the burden of evaluator. In this method of evaluation, the evaluator is provided with the appraisal report which consist of series of questions which is related to the appraise. Such questions are prepared in a manner that reflects the behavior of the concerned appraise.

7. Critical Incidents Method: This method is very useful for finding out those employees who have the highest potential to work in a critical situation. Such an incidence is very important for organization as they get a sense, how a supervisor has handled a situation in the case of sudden trouble in an organization, which gives an idea about his leadership qualities and handling of situation. It is also said to be a continuous appraisal method where employees are appraised continuously by keeping in mind the critical situation. In this method, only the case of sudden trouble and behavior associated with these incidents or trouble are taken for evaluation.

8. Graphic Scale Method: It is one of the simplest and most popular techniques for appraising performances of employee. It is also known as linear rating scale. In graphic rating scale the printed appraisal form is used to appraise each employee.

9. Essay Method: In this method, the rater writes a detailed description on an employee’s characteristics and behavior, Knowledge about organizational policies, procedures and rules, Knowledge about the job, Training and development needs of the employee, strengths, weakness, past performance, potential and suggestions for improvement. It is said to be the encouraging and simple method to use. It does not need difficult formats and specific training to complete it.

Modern Methods

1. Management by Objectives (MB0): The concept of ‘Management by Objectives’ (MBO) was coined by Peter Drucker in 1954. It is a process where the employees and the superiors come together to identify some goals which are common to them, the employees set their own goals to be achieved, the benchmark is taken as the criteria for measuring their performances and their involvement is there in deciding the course of action to be followed.

The basic nature of MBO is participative, setting their goals, selecting a course of actions to achieve goals and then taking decision. The most important aspect of MBO is measuring the actual performances of the employee with the standards set by them. It is also said to be a process that integrates organizational objectives into individual objectives.

2. Behaviorally Anchored Rating Scales: This method is a combination of traditional rating scales and critical incidents methods. It consists of preset critical areas of job performance or sets of behavioral statements which describes the important job performance qualities as good or bad (for e.g. the qualities like inter personal relationships, flexibility and consistency, job knowledge etc.). These statements are developed from critical incidents.

These behavioral examples are then again translated into appropriate performance dimensions. Those that are selected into the dimension are retained. The final groups of behavior incidents are then scaled numerically to a level of performance that is perceived to represent. A rater must indicate which behavior on each scale best describes an employee’s
performance. The results of the above processes are behavioral descriptions, such as anticipate, plan, executes, solves immediate problems, carries out orders,
and handles urgent situation situations.

3. Assessment Centers: It is a method which was first implemented in German Army in 1930. With the passage of time industrial houses and business started using this method. This is a system of assessment where individual employee is assessed by many experts by using different technique of performance appraisal. The techniques which may be used are role playing, case studies, simulation exercises, transactional analysis etc.

In this method employees from different departments are brought together for an assignment which they are supposed to perform in a group, as if they are working for a higher post or promoted. Each employee is ranked by the observer on the basis of merit. The basic purpose behind assessment is to recognize whether a particular employee can be promoted, or is there any need for training or development.

4. 360 Degree Performance Appraisals: This method is also known as ‘multi-rater feedback’, it is the appraisal in a wider perspective where the comment about the employees’ performance comes from all the possible sources that are directly or indirectly related with the employee on his job. In 360-degree performance appraisal an employee can be appraised by his peers, managers (i.e. superior), subordinates, team members, customers, suppliers/ vendors – anyone who comes into direct or indirect contact with the employee and can provide necessary information or feedback regarding performance of the employee the “on-the-job”.

The four major component of 360-degree performance appraisal are

1. Employees Self-Appraisal

2. Appraisal by Superior

3. Appraisal by Subordinate

4. Peer Appraisal.

5. Cost Accounting Method: In this method performance of an employee is evaluated on the basis of monetary returns the employee gives to his or her organization. A relationship is recognized between the cost included in keeping the employee in an organization and the benefit the organization gets from him or her. The evaluation is based on the
established relationship between the cost and the benefit. The following factors are considered while evaluating an employee’s performance:

1. Interpersonal relationship with others.

2. Quality of product produced or service given to the organization.

3. Wastage, damage, accidents caused by the employee.

4. Average value of production or service by an employee.

5. Overhead cost incurred

f) Highlight the various methods adopted by industries for maintaining sound employer-employee relation in India.

Ans: Various methods adopted by industries for maintaining sound employer-employee relation in India:

In order to develop and maintain healthy human relations in an organisation, management may employ the following measures:

1. Integration. The needs of individuals and the groups or the organisations should be properly integrated. When goals become congruent the interests of both the firm and its employees can be simultaneously achieved. Management should create a climate in what employees can appreciate organisational and environmental constraints. Such a supportive environment requires mutual trust and confidence.

2. Employee Participation. Supportive climate and mutual trust and confidence can be created by involving workers and their groups in the decision-making process. Management should not only permit but seek their ideas and suggestions in all the problems affecting them. Employees should be consulted regularly and joint decision-making should be used. Such involvement not only improves the quality of decisions but also leads to the satisfaction of ego needs of employees. They feel treated as responsible people with ability and their attitudes towards the organisation become positive. Joint management councils or committees consisting of equal representatives of workers and management may be constituted. Frank and fair discussions in meeting help to secure and preserve unity between workers and managers. Proper use should be made of group dynamics.

3. Congenial Work Environment. Management must create a work environment wherein workers can perform their jobs with a sense of security and fellow feeling. They should be made to feel that they are doing something important. Job security, meaningful and challenging job, scope for opportunity and advancement and satisfying interpersonal relationships are essential ingredients of congenial work environment. Responsibility and challenge provide job satisfaction and personal development leads to increase in motivation and morale.

4. Open Communication. Many of the human relations problems arise due to inadequate and distorted communication. The need to know about one’s situation, prospects, company policies and contemplated changes is one of the basic needs of employees. Lack of communication results in fear, misunderstanding and distrust. Therefore, management should maintain open channels of communication, particularly upward communication. Employee handbooks, grievance procedures, suggestion schemes, etc. enable management to understand the feelings, problems, fears and aspirations of employees. Informal communication or grapevine may be used to supplement and support the formal channels of communications. As for as possible personal contact should be maintained with employees.

5. Adaptive Leadership. Needs, values and attitudes differ from individual to individual and change over time. Therefore, no style of leadership can be successful in all situations. An effective leader is one who fully understands his people and adapts his approach to the requirements of the situation. In order to develop healthy human relations, managers should carefully understand the employees and handle them with sympathy. They should uphold the dignity of the individual. Managers should adopt a positive attitude and should issue clear instructions to employees.

6. Resolving Conflicts. Management should attempt to reduce and minimise interpersonal and intergroup conflicts. They should identify the needs of both the parties to the conflict and handle the situations so as to satisfy the interests of both. Healthy human relations can be developed through an integrative or problem-solving approach in which both the parties gain satisfaction of their respective needs in a cooperative manner and not at the expense of one another. It requires continuous interaction and communication among the parties concerned.

7. Conditioning Behaviour. Conditioning the behaviour of people is one of the effective ways of building healthy human relations at work. According to B.F. Skinner, operant conditioning shapes behaviour just as a sculpture shapes a lump of clay. Operant conditioning involves use of positive and negative reinforce. Rewards are used to reinforce the desirable behaviour while punishment is used to discourage the undesirable behaviour.

8. Personnel Counseling. The supervisor should patiently listen and help solve the problems faced by workers both inside and outside the organisation. Such counseling reduces the workers’ tension and improves their self-confidence. The employee feels at home in the four walls of the factory or office.


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