HUMANRESOURCEMANAGEMENT

ENDTERMEXAMINATION(MAIN)
MBABATCH20142016.

Answerthefollowingquestions.Eachquestioncarries10marks.

1. A clerk is reported to have misused Rs.100, 000/ belonging to the company. You are the
disciplinaryauthority.Describethestepsyouwilltake.(1&1/2pages)
SuggestedAnswers
Thisisaseriousmisconduct.Hence,thefollowingstepsaretobetaken.

ISSUEOFCHARGESHEET

Achargesheetwillbeissuedtotheclerk.Thechargesheetwillcontaineverydetailregardingthe
misconduct in concrete terms without any ambiguity. The clerk will be asked to submit his
explanationwithinastipulatedperioddependingonrulesapplicable.

CONSIDERATIONOFTHEEXPLANATION

On receipt of the explanation, the same should be considered. If the explanation is found not
satisfactory or if no explanation is received after the expiry of the stipulated period, an Enquiry
Officershouldbeappointedtoinquireintothecharges.

APPOINTMENTOFENQUIRYOFFICER

TheEnquiryOfficershouldbewellversedintheconductofdomesticenquiriesinaccordancewith
principlesofnaturaljustice.

CONSIDERATIONOFTHEREPORTOFTHEENQUIRYOFFICER

OnreceiptofthereportoftheEnquiryOfficeralongwiththeproceeding,thedisciplinaryauthority
willconsiderthesameandeitheragreewiththefindingoftheEnquiryOfficerordisagreewithhim
withreasonsrecordedinwriting.Thefollowingpointswillbeconsideredinthisprocess:

Whetherreasonableopportunityhasbeengiventotheclerktodefendhimself.

WhetherthefindingsoftheEnquiryOfficerisbasedonmaterialsonrecord.

Incasetheclerkisfoundguiltybeyondallreasonabledoubts,thisbeingaseriousmisconduct,the
punishmentofdismissalwillbeproposed.

ISSUEOFSECONDSHOWCAUSENOTICE

Asecondshowcausenoticewillbeservedontheclerktogivehimanopportunitytoexplainwhy
thepunishmentofdismissalshouldnotbeconfirmed.Thereagainshouldbeastipulatedperiodof
timetoreplyasperrulesapplicable.

ISSUEOFFINALORDER

If the clerk replies to the second show cause, his explanation should be considered and decision
taken.Ifitisdecidedtodismisshim,appropriateletterwillbeissued.

2. Mr.ShroffisatalentedandwellexperiencedhumanresourcesmanagerofBritestarCompany.
HeundertakeshisroleofHRmanagerbybeinganadministrativeexpertandachangeagent.He
has always been an inspiration for his subordinates and the employees whose performance is
measuredandappraisedbyhim.ItisbecauseofMr.Shroffs15yearsofexperienceofworking
inHRdepartmentshelpedhimtogetacquaintedwithvariousPerformanceAppraisalmethods
forevaluatingtheperformanceofhisemployeesinabetterwayeverytime.Currentlyhewants
tocombineGraphicratingscaleandcriticalincidentmethodinhisnewAppraisalSystem.What
is this new method called and how would this new method work ? Explain in detail. (1&1/2
pages)


SuggestedAnswer
Behaviorally anchored rating scales:Also known as the behavioral expectations scale, this
method represents the latest innovation in performance appraisal.It is a combination of the
rating scale and critical incident techniques of employee performance evaluation. The critical
incidentsserveasanchorstatementsonascaleandtheratingformusuallycontainssixtoeight
specificallydefinedperformancedimensions.
How to construct BARS?Developing a BARS follows a general format which combines techniques
employedinthecriticalincidentmethodandweightedchecklistratingsscales.Emphasisispinpointedon
poolingthethinkingofpeoplewhowillusethescalesasbothevaluatorsandevaluees.

Step1:Collectcriticalincidents:Peoplewithknowledgeofthejobtobeprobed,suchasjobholdersand
supervisors,describespecificexamplesofeffectiveandineffectivebehaviorrelatedtojobperformance.

Step 2:Identify performance dimensions:The people assigned the task of developing the instrument
cluster the incidents into a small set of key performance dimensions. Generally between five and ten
dimensionsaccountformostoftheperformance.Examplesofperformancedimensionsincludetechnical
competence, relationships with customers, handling of paper work and meeting daytoday deadlines.
While developing varying levels of performance for each dimension (anchors), specific examples of
behavior should be used, which could later be scaled in terms of good, average or below average
performance.

Step3:Reclassificationofincidents:Anothergroupofparticipantswhoareknowledgeableaboutthejob
is instructed to retranslate or reclassify the critical incidents generated (in Step II) previously. They are
giventhedefinitionofjobdimensionandtoldtoassigneachcriticalincidenttothedimensionthatitbest
describes.Atthisstage,incidentsforwhichthereisnot75percentagreementarediscardedasbeingtoo
subjective.

Step4:Assigningscalevaluestotheincidents:Eachincidentisthenratedonaonetosevenoroneto
ninescalewithrespectofhowwellitrepresentsperformanceontheappropriatedimension.Aratingof
one represents ineffective performance; the top scale value indicates very effective performance. The
secondgroupofparticipantsusuallyassignsthescalevalues.Meansandstandarddeviationsarethen
calculated for the scale values assigned to each incident. Typically incidents that have standard
deviationsof1.50orless(ona7pointscale)areretained.

Step5:Producingthefinalinstrument:Aboutsixorsevenincidentsforeachperformancedimensionall
havingmetboththeretranslatingandstandarddeviationcriteriawillbeusedasbehavioralanchors.
The final BARS instrument consists of a series of vertical scales (one for each dimension) anchored (or
measured)bythefinalincidents.Eachincidentispositionedonthescaleaccordingtoitsmeanvalue.

3. Anumberofquantitativeandqualitativetechniquesforforecastinghumanresourcesdemand
werediscussedinthischapter.Identifywhichstrategieswouldbemostappropriatefor(a)small
versuslargecompanies,(b)businesses/industriesinwhichthereareseasonalvariations
SuggestedAnswer:

Inlargeorganizations,needsforecastingisprimarilyquantitativeinnatureandisthe
responsibilityofhighlytrainedspecialists.Quantitativetechniquesfordetermininghumanresources
requirementsincludetrendanalysis,ratioanalysis,scatterplotanalysis,andregressionanalysis.These

areoftenviewedasnumericallyormathematicallygrounded,andthereforemoreobjectiveinnature.
Qualitative
approachestoforecastingrangefromsophisticatedanalyticalmodelstoinformalexpertopinionsabout
futureneeds,ofteninvolvingsubjectiveinterpretationsorestimates,suchasthenominalgroup
techniqueortheDelphitechnique.Whilethecostsofdevelopingtheseforecastingmethodsusedtobe
quitehigh,advancesintechnologyandcomputersoftwarehavemaderathersophisticatedforecasting
moreaffordabletoevensmallbusinesses.
1. B.)businesses/industriesinwhichthereareseasonalvariations

(a)atrendcouldbeagradualandregularincreasingordecreasinglevelofemployment,
probably over some years; (b) cyclical effects which could be a gradual and repeated upward and
downwardmovementoveraperiod.Thismaywellbeassociatedwithsomeeventssuchas
economicactivityinthecountry;(c)seasonality,whichmayoccuronewhenmorethanonetime
pointperannum,isrecorded.Itrecordsthedifferentlevelsofactivitybetweensaysummerand
winter;(d)astepisasuddenchangeinthelevelofemploymentwhichwillprobablyaccompany
someidentifiablechangeintheenvironment,suchasdecrease/increaseinsalesorintroductionofnew
machinery;and(e)randomfluctuationsinaseriesofchangesinlevelsofemploymentthatdonotfollow
any obvious pattern. In this case "moving average" will help to highlight the trend and suggest the
amountofpossibleerrorintheforecast".

4. ZenithaGlobalbrandinCosmeticswantstosetupitsbaseinIndia.IthashiredexperiencedHR
professionals to frame its new compensation policies.. What are the various factors which
influence can a firm when framing its compensation policy which the HR professionals should
keep in mind? Also briefly mention some of the focal issues in modern day compensation
management.(1&1/2pages)

Factorsaffectingcompensationmanagement
Business&HRstrategies
Culture,Climate&managementpractices
Typeofpeopleemployed
History&presentarrangementforreward
Marketconsiderations
Governmentregulations/Legalconsiderations
Trends
GoldenHellos

Recruitmentbonus/upfrontbonustoenticesoughtafterindividualstojointhecompany
GoldenHandshakes

Essentiallyterminationpaymentstoensurethatemployeesleavewithafinancialcushion
GoldenParachute

Ensuresprovisionofcompensationorlucrativebenefitsforthelossofjobfollowingachangeof
control.
CafeteriaBenefitplan

Customizedbenefitplangivingemployeesachoicetoselectmostsuitablebenefitscheme.
Broadbanding
VariablePay
ExecutiveCompensation

5. ArunSharma,arecentrecruitfromareputedmanagementinstituteinPune,hasjustjoinedthe
sales office of a large computer hardware firm at Hyderabad as a new sales trainee. Rajesh
Adhikari,theZonalSalesManagerwastheretogreethim.Rajesh'sjobconsistedofoverseeing
theworkofsalesofficers,fieldexecutivesandtraineesalespersonsnumberingover50ofthree
areasnamelyHyderabad,Bangalore&Cochin.Thesalesgrowthofcomputers,partsandother
office equipment in his area was highly satisfactory, especially in recent years thanks to the
developmental initiatives taken by respective State Governments in spreading computer
education in offices, schools, colleges, banks and other institutions. Rajesh collected several
salesreports,catalogues&pamphletsdescribingindetailthetypesofofficeequipmentsoldby
thecompany.Afterapleasantchatabouttheirbackgrounds,RajeshgaveArunthematerialand
showed him to his assigned desk. Thereafter Rajesh excused himself and did not return. Arun
spent the whole day scanning the material and at 5.00 p.m. he picked up his things and left.
WhatdoyouthinkaboutRajesh'strainingprogram?Whatmethodoftrainingwouldhavebeen
bestunderthecircumstances?Whichmethodwouldyouconsider&why?(1&1/2pages)

SuggestedAnswer
ConsideringthefactthatArunisafreshrecruitstraightoutfromcollege,thetraininggivenbyRajesh
does not seem appropriate. Under the given circumstances the ideally the immediate superior
should first spend some time with the employee familiarizing him with the company culture and
working environment. Proper induction involving a brief outlook of the company background,
policies an introduction of employee to his colleagues and other officers with whom he needs to
dealwithshouldbethefirststepintheprocess.
As per the circumstances an Onthejob training method appears to be the most suitable one.
Rajesh being a Zonal Sales Manager is heading around 50 sales personnel distributed over three
majorareas,maynotbeabletopersonallyguideArun.Insuchcondition,Aruncouldbeassignedto
anyoftheseniorsalesofficer,whocouldhaveactedasacoachandamentorforArun.

6. TheTradeUnionActof1926waslastamendedin1982andwasmainlyenactedtoprovideforthe
registrationoftradeunionsandverificationoftheirmembershipsoastohelpthemacquirea
legalandcorporatestatus.Whatarethemainprovisionsofthisact?
(10marks)(1&1/2pages)

SuggestedAnswer:

ThemainprovisionsoftheActare:
Registrationofthetradeunions
Cancellationoftheregistrationofthetradeunionsandappeals
Reregistrationofthetradeunions
Dutiesandliabilitiesofaregisteredtradeunion
Rightsandprivilegesofaregisteredtradeunion
Amalgamationanddissolutionofatradeunion
Submissionofreturns
Powertomakeregulations
Penaltiesandprocedures

7. There was a training program conducted few months ago for the Managers of Finance
DepartmentofalargeMNC.TheHRManagercurrentlyneedstoassesstheutilityofthetraining

program. She has the feedback form of the participants. Is that data sufficient ? Justify your
answer.(1&1/2pages)

Questionsthatshouldbeansweredintheevaluationprocess
a. Didchangeoccur?
b. Isthechangeduetotraining?
c. Ischangepositivelyrelatedtoachievingorganizationalgoals?
d. Willnewparticipantsintrainingexperiencesimilarchanges?
Reaction
Howdoparticipantsfeelaboutthetraining?
Learning
Haveparticipantslearnedwhatwastaught?
Behavior
Haveonthejobchangesoccurred?
Results
Havebottomlineoutcomesresulted?

8. Inthenewworldofwork,careersareverydifferent.Goneisthejobforlifewithitsplanned
career structure and company training scheme. Gone is the clear functional identity and
progressiveriseinincomeandsecurity.Insteadthereisaworldofcustomersandclients,adding
value,lifelonglearning,portfoliocareers,selfdevelopmentandanoverwhelmingneedtostay
employable. In the light of the above statement , compare and contrast the old and new
paradigms of career stages. How would career anchors provide assistance in such situations.
(1&1/2pages)

Traditionalcareerpaths.
Entryandestablishment:Involvesonthejobdevelopmentofrelevantskillsandabilities.
Advancement:Theindividualseeksgrowthandincreasedresponsibility.
Maintenance,withdrawal,andretirement:Individualsmayexperiencecontinued
growthofaccomplishmentsormayencountercareerstability.Atsomepoint,individuals
considerwithdrawalandultimateretirement.
Tthreefundamentalchangesinorganisationalcareerphilosophy:
1 The employeremployee relationship is not now conceived as longterm, and thus the future
timeorientationofcareersnowseemslessappropriate
2 Whilst career progression may indeed still mean moving between positions over time, it no
longernecessarilymeanshierarchicalmovement
3Fromboththeorganisationalandindividualperspectivesitisnolongerapparenthowalogical,
orderedandsequentialcareermayactuallyevolve.
Asaresultinthesechanges,newcareersaremarkedbynumeroustransitionsbetweenjobs,
organizations,orfieldsofprofessionalactivity,aswellasalackofinstitutionalisedandordered
careerpathsand/orcareerruleswithgreaterfocusontheexternallabourmarketasameans
for advancement . Under this perspective, careers and career development are better
understoodaschaoticsystems,characterisedbyvcomplexityandunpredictability,cyclicalrather
than linear progression, lateral rather than upward movement and periods of reskilling.
Therefore,thatforsomethe[career]ladderhasunexpectedlyturnedintoahamsterwheel.The
keycontrastsbetweentheoldandnewcareerare
Oldcareer
Newcareer
Structured

Unstructured

Objective

Subjective
Continuity

Discontinuity
Coherence

Irregularity
Careerdevelopment Personaldevelopment
Status,powerandauthority Psychologicalsuccess
Linear

Cyclical
Security

Employability
Bureaucracy

Network
Organisationallybounded
Boundaryless
Workfocused

Holistic
Jobs

Skills,assignmentsandprojects
Predictability

Unpredictability
Relationalpsychologicalcontract
Transactionalpsychologicalcontract
Longterm

Shortterm
Futureorientation

Presentorientation

9. Aaron Inc., a multinational company with its headquarter in France and business units in 13
countries always followed an integrated system of centralized recruitment where the
headquarters undertook all the decisions and activities of recruitment for the entire
organization and its various subsidiaries across various countries. The selection was however
localized with the divisional heads. Recently Aaron Inc. has observed that the quality of
applicants has gone down. In the last few years, the dropout from the company induction
program has risen from 2.5% to 11.3% which is much above the industry norms. The HR Vice
Presidentintheheadquarters,Mr.Smithwouldliketoovercomethisproblemwithexpanding
theapplicantpoolbase.

Questions:
a. Do you think that Aaron Inc. should maintain a centralized recruitment policy? What are the
advantagesanddisadvantagesofcentralizingtherecruitmentfunction?
b. Explain why generating large applicant pools are not always desirable for a multinational firm
likeAaronInc.Whatimplicationsexistforrecruitmentmethods?

(10 +10=20marks)
SuggestedAnswersfortheCase

9a. Centralizing makes it easier to apply the companys strategic priorities companywide. It reduces
duplicationandmakesiteasiertospreadcostsovermoredepartments.Itisadisadvantagetouse
centralizedrecruitingwhenthedivisionsareautonomousorwhenrecruitmentneedsarevaried.

9b. An employer seeks to attract qualified applicants rather than unqualified applicants. Some
recruitmentmethodsresultinlargepoolsbuttheapplicantsareunqualified.Largerpoolsraisecosts
ofcorrespondenceandscreening.Italsoextendsthetimenecessarytofillvacantpositionsbecause
oftheadditionaltimenecessarytosortthroughthelargepoolofapplicants.Theimplicationisthat
managers should evaluate different recruitment methods to determine which ones work best for
the firm. These methods should be evaluated in terms of the number of applicants produced and
thequalityofapplicants.