Practice Question paper

1.Staggering increments are to be given from maximum 4 increments,

proportionate to the performance levels to 200 employees. Keeping your
discretion, draft an employee friendly Increment policy for the year 2019, and
state as to what would be the maximum budget for that year.

Solution:
Performance No. of Total value of No. of Total Budget
Category increments increment employees
Exceptional 4 Rs. 250 55 Rs. 13750
Performance
Exceeded 3 Rs. 180 105 Rs. 18900
Expectations
Strong 2 Rs. 100 25 Rs. 2500
Performance
Developing 1 Rs. 60 15 Rs. 900
Performance
Total Budget Rs 36050

Max Budget would be Rs. 40000.

2.The Marketing head in Hyderabad cannot recruit externally due to budget

constraints, but decides to go for lateral relocation for managing the 2
vacancies of the senior executives at Bangalore. (same CTC) He wants to know
the recruitment budgets and the budget for the lateral transfers.
The current payables details are: CTC 10 lacs
Conveyance allowance: 5000
Canteen Allowance: 4500
HRA: 20% of the basic salary.
For Relocation of transfers, additional allowances (CCA, ADDITIONAL
ALLOWANCE) are subject to the cost of living expenses.
Calculate the cost of laterals and Recruitment for the 2 executives.\

3. In an Organisation, 120 confirmed employees are there .The Senior

Management has decided to reduce 20% workforce. The HR requests to stall
downsizing but can reduce the equivalent costs by Employee cost cutting
measures. The average employee cost is 2 lakhs, over and above the CTC.Is it
possible for HR to achieve the targeted result? Represent your response
numerically
4.HR wants to offer an employee the take home Salary of 20000/- per
month.,What would be the CTC that the Organisation would have to bear?
(HINT: Take home should be 60%+ of the CTC)

A-B+C+
Take Home E 20000
Check 20000
CTC 30000
Componen
t
A
Basic Salary 30% of CTC 9000
HRA 3 % of CTC 900
Allowances 10% of CTC 3000
Total 12900
B
12% of
1080
PF basic
5 % of
450
Gratuity basic
Total 1530

C
Merit Linked pay 5500

D
Bonus 800
Profit sharing incentive 200
LTA 3500
Total 4500
E
Attire Allowance 2000
Entertainment Allowance 1130
Total 3130
F
Fringe benefits in kind
Total 2440

5. Prepare the Delphi Technique on the basis of the data provided.

300 employees are working in the Organisation. 150 employees are confirmed.
Attrition is 15%. Employee retirements are 5, one death, and 2 terminations. 6
employees have been called from regional offices to substitute the employees
on long term leave. If the forecasted requirement is 200 employees and
seasonal requirement is 20 then what is the status of the man power? The
current attrition is 2.

Solution:
1. No. of skilled workers required = 200
2. Seasonal requirement = 20
3. Total requirement = 200 + 20 = 220
4. No. of confirmed employees available during last financial year = 150
5. Additional during the year = 6
6. 15% attrition= (0.15 x 150) = 22
Also, retired = 5, Death = 1, Terminated = 2 Total =8
Total attrition = 22 + 8 = 30
7. Total available = 150 – 30 + 6 = 126
8. Deficit = 220 – 126 = 94
9. Current Attrition = 2
10.Total requirement if deficit = 94 + 2 = 96
Ans. Status of manpower is deficit by 94

Also expect Increment Slabs, Strategies, & Formulae.