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ANS: 1

ORGANISATIONAL CULTURE:
All organizations have their own culture. Organizational culture is the product of all the organization’s features
– its people, its successes, and its failures. This culture is the true reflection of the past of the organization and
what lies in future. The key to success for any organization is developing the best possible organizational
culture. In every organization, a few core values or beliefs shape its culture. In India, today, a number of
companies have successfully achieved a very positive organizational culture. The TATA group, L&T, Reliance,
Infosys, Wipro are some very good examples.

ESSENTIAL ELEMENTS OF ORGANISATIONAL CULTURE:

Following are the essential elements of organizational culture.

a) Vision, Mission and Values:

The vision, mission and core values of the organization must not only be clearly written down, displayed
prominently but also be integrated as key statements of purpose and philosophy into the recruitment and
orientation programs, internal company communications, training and development schemes, methods of
appraisal, recognition and reward. It must be ensured that each and every employee of the organization is aware
of the vision, mission and values of the organization and is able to relate to it from his own sphere of activities.

b) New Staff Recruitment:

All new recruitments must be done keeping the organization’s values and mission central. Aspiring employees
must be given adequate time to get to know these aspects before they come and join as members of the team.
All prospective employees must be screened with tools like profiling available in the market today.

c) New Staff Orientation:

The new employees joining the organization must be actively helped in settling down and given confidence of a
long and productive career. Studies show that employees who get thorough and thoughtful orientations will stay
longer and contribute more throughout their careers.

d) Training & Development Programs:

Investing in training and staff development programs is good. But many companies engage a wide assortment
of trainers and programs, making little effort to ensure a smooth and beneficial integration. It must be ensured
that all the trainers, be it outside or in-house, are clearly aware of the organization’s vision, mission and values.
They must be able to describe the issues and major challenges facing their company today.

e) Annual Appraisals:
Annual appraisals must be a stamp of quality. If talent has to be retained, then the assessment must be on the
range, depth and volume of the employees’ ideas. If the organization encourages open culture, the appraisals
must also be on an open format. If, however, a cross-functional and non-hierarchical communication is desired,
a 360-degree appraisal process must be employed. No amount of broadcasting company values will matter if
people are measured by other standards.

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f) Rewards & Recognition Programs:

The old adage is true: what gets rewarded gets done. But not all rewards are monetary. They may be public,
private, formal, informal, planned, unexpected, elegant, simple and unique. The most motivating rewards may
be public celebrations of the people and actions that exemplify the organization’s highest values. The practices
of rewards and recognition must be highly inspiring, must be applied frequently and consistently. People thrive
on appreciation, recognition and reward and the company culture must provide enough of this.

g) Company Social Events:

Too many social gatherings are expensive undertakings that provide an outlet for stress but do little to enhance
communication or commitment to the business. It doesn’t have to be this way. Memorable social events can
deliver enjoyment for the staff and build enthusiasm for your company’s goals, achievements and values.
Ideally a cross-functional team must be put in charge of design and delivery at a social event, given time and
budget, provided with professional and management support, parameters and guidelines for linkage to the
business and the organization set. Such a team will actually will enhance communication and commitment.
Lavish praise for an event well done is extremely essential for building a tradition of interaction that deepens
and strengthens as it grows.

h) Suggestion Schemes:
Managers want feedback and suggestions for improvement from staff. But very few organizations can point
with pride to widely respected and frequently used suggestion schemes. Making the suggestion scheme program
more than just a box on the wall requires rapid response from management, immediate implementation of good
ideas, and generous recognition for contributions. Some companies have instituted novel schemes like giving
gift coupons / incentives every month for the best new suggestion. Once people realize there is a prize given out
every month, you’ll find the suggestion box brimming with input by the month’s end.

i) Management and Staff Interaction:

Management and staff will work better together if they have abundant opportunities to interact. Frequent team
meetings must be scheduled. Secure opportunities for staff to speak up without fear of reprisal or retribution
must be provided. Panel discussions may be created where all sides can ask questions and receive candid (not
defensive) replies.

j) Rites and Rituals:

Companies with strong culture evolve rites or rituals that are memorable and unique. Such rituals must be such
that employees look forward for these and enhance their performance to compete for recognition. For example,
at one multinational, significant sales are honored by the key salesperson ringing a huge Chinese gong at the
beginning of the monthly sales meeting. The message rings loud and clear: Successful sales are good reason for
public celebrations. At the Service Quality Training Centre of an organization, new trainers are thrown fully
clothed into the water at their first company retreat. The message: “We’re all in this together. Welcome aboard.”

k) Internal Communications:
Internal communication must be clear, unambiguous and follow laid down channels rather than “leaking”.
Memos must be clear, crisp and avoid being unnecessarily exhaustive. Bulletin Boards must be devoid of old
announcements, faded backgrounds and ancient pieces of tape. The organization’s Newsletter must focus on
current customers, real issues and difficult but significant achievements and must be seen as an open forum
rather than sanitized propaganda from Head Office. In case of an e-mail environment, the access must be open
and response encouraged.

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l) External Communications:
How the organization communicates with the outside world reflects back upon the internal staff. It must be such
that the employees take pride in advertising and public relations your company sponsors. The corporate image
must be fresh.

m) Management Role Modeling:

The most powerful action for building company “culture” is management members leading by their own
example. What is advertised must be practiced.

ANS: 2

DISCIPLINE:
Discipline is said to be the bedrock of any successful activity. A sound state of discipline is a sure recipe for
success and high productivity and excellent quality. A disciplined organization is a happy organization. A
disciplined work force can meet the challenge of competition and can achieve organizational objectives in a
better way. Discipline improves moral and labor relations and promotes co-operation among employees. Acts of
indiscipline cannot be totally avoided. Disciplinary proceedings may be necessitated under certain
circumstances.

TYPES OF DISCIPLINE:
Discipline is classified as either positive or negative. The characteristics of both are as under:

(a) Positive Discipline:

i) It implies a sense of duty to observe the rules regulations and is also called self-discipline.
ii) It involves creation of a favorable atmosphere in the organization whereby employees willingly conform to
the established rules and regulations.
iii) Positive discipline can be achieved through rewards and effective leadership.
iv) It is more effective than negative discipline.
v) Positive discipline promotes co-operation and co-ordination with a minimum of formal organization and
reduces the need for personal supervision required to maintain standards.
vi) According to Spriegel, “Positive discipline does not replace reason but applies reason to the achievement of
a common objective. Positive discipline does not restrict the individual but enables him to have a greater
freedom in that he enjoys a greater degree of self-expression in striving to achieve the objective, which he
identifies as his own.”

(b) Negative Discipline:

It is also known as punitive or corrective discipline. It involves imposition of penalties or punishment to force
workers to obey rules and regulations. The objective is to ensure that employees do not violate the rules and
regulations. Negative disciplinary action involves such techniques as fines, reprimand, demotion, layoff,
transfer, etc. Negative discipline does not eliminate undesirable behavior; it merely oppresses it. It requires
regular monitoring causing wastage of valuable time. Punishment also causes resentment and hostility. While
exercising negative discipline, management should proceed in a sequential manner, viz., an oral reprimand, a
written reprimand, a warning, temporary suspension and dismissal or discharge.

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ANS: 3

Employee Relations Managers or HR managers, as they are commonly called, have to function in more than
one ways. They are required to perform mainly three different types of roles, while meeting the requirement of
employees and customers, namely strategic, operational and administrative.

THE OPERATIONAL ROLE OF MANAGER:

These roles include recruiting, training and developing employees, coordinating HR activities with the actions
of managers and supervisors throughout the organization and resolving differences between employees.

i) Recruiter (Talent Acquisition):

HR managers have to use their experience to good effect while laying down lucrative career paths to new
recruits without, increasing the financial burden to the company and selection of an appropriate candidate
possessing requisite knowledge, skills and experience

ii) Trainer, Developer, Motivator:

HR managers have to find skill deficiencies from time to time, offer meaningful training opportunities, and
bring out the latent potential of people through intrinsic and extrinsic rewards, which are valued by employees.

iii) Coordinator:
The HR manager is often deputed to act as a link between various divisions/departments of an organization. The
whole exercise is meant to develop good relations with divisional heads, using PR and communication skills of
HR executives to the maximum possible extent.

iv) Mediator:
The Personnel Manager acts as a mediator in case of friction between two employees, groups of employees,
superiors and subordinates and employees and management with the sole objective of maintaining industrial
harmony.

iv) Employee Champion:

Liberalization, privatization and globalization pressures now require HR professionals to move closer to the
hearts of employees in their own self-interest. To deliver results they are involved in:
• Placing right people on the right job
• Charting a suitable career path for each employee
• Rewarding creditable performance
• Resolving differences between employees and groups smoothly
• Adopting family-friendly policies
• Ensuring fair and equitable treatment to all people regardless of their background
• Striking a happy balance between the employee’s personal/professional as also the larger organizational
needs
• Representing workers’ issues, problems and concerns to the management in order to deliver effective
results

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ANS: 1

COMMUNICATION:
The real meaning of communication is getting the receiver and the sender tuned together for a particular
message. Communication takes place when one person transfers some understandable data to another person. It
also includes the exchange of thoughts, opinions, sentiments, facts, and information between two or more
persons. Feedback is very important as it assures that your message should be properly conveyed to the
receiver.

THE CHARACTERISTICS OF COMMUNICATION:

a) Communication is perception:
The essence of communication is getting across what you exactly want to. If the other person fails to perceive
what is intended in the message, no communication takes place. The effectiveness of communication thus is
limited to the range of perception of the recipient.

b) Communication is expectation:
People perceive only what they expect to – depending upon their own needs, values, motives, background or
even the situational context. The unexpected is ignored or misunderstood. For example, two persons, in a park
may observe entirely different things while looking at the same object. It is because they looked for or saw in
the light of their needs, values, etc.

c) Communication makes demands:

Communicational demands are in terms of emotional selection, preference or rejection, on part of the receiver
from all that is being sent to him. Communication also demands of the receiver to do or believe something or
for that matter become somebody.

d) Communication differs from information:

Communication is highly personal and has a large component of emotions, values and needs of individuals. At
the same time, communication and information are interdependent.

e) Channels of Communication:

The following table depicts the different forms of channels, one or more of which can be used to convey a
message.
Mode Vocal Non-Vocal

Verbal / Written words, Facial Expression, Posture,

Spoken words, Sigh,
Non- Gesture (body language) Spatial
Grunt, Inflection
verbal relationship

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ANS: 2

INDUSTRIAL DISPUTES:
Industrial disputes are organized protests against existing terms and conditions of employment. The Industrial
Disputes Act, 1947 defines an industrial dispute as “any dispute or difference between employees and
employers or between workmen, which is connected with the employment or with the condition of the labor of
any workmen. It has no political or communal significance.”

THE CAUSES OF INDUSTRIAL DISPUTES:

The causes of industrial disputes can be broadly classified into two categories: economic and non-economic
causes. The economic causes will include issues relating to compensation like wages, bonus, allowances, and
conditions for work, working hours, leave and holidays without pay, unjust layoffs and retrenchments. The non
economic factors will include victimization of workers, ill treatment by staff members, sympathetic strikes,
political factors, indiscipline etc.

Wages and allowances:

Since the cost of living index is increasing, workers generally bargain for higher wages to meet the rising cost
of living index and to increase their standards of living. In 2002, 21.4% of disputes were caused by demand of
higher wages and allowances. This percentage was 20.4% during 2003 and during 2004 increased up to 26.2%.
In 2005, wages and allowances accounted for 21.8% of disputes.

Personnel and retrenchment:

The personnel and retrenchment have also been an important factor which accounted for disputes. During the
year 2002, disputes caused by personnel were 14.1% while those caused by retrenchment and layoffs were 2.2%
and 0.4% respectively. In 2003, a similar trend could be seen, wherein 11.2% of the disputes were caused by
personnel, while 2.4% and 0.6% of disputes were caused by retrenchment and layoffs. In year 2005, only 9.6%
of the disputes were caused by personnel, and only 0.4% were caused by retrenchment.

Indiscipline and violence:

From the given table, it is evident that the number of disputes caused by indiscipline has shown an increasing
trend. In 2002, 29.9% of disputes were caused because of indiscipline, which rose up to 36.9% in 2003.
Similarly in 2004 and 2005, 40.4% and 41.6% of disputes were caused due to indiscipline respectively. During
the year 2003, indiscipline accounted for the highest percentage (36.9%) of the total time-loss of all disputes,
followed by cause-groups wage and allowance and personnel with 20.4% and11.2% respectively. A similar
trend was observed in 2004 where indiscipline accounted for 40.4% of disputes.

Bonus:
Bonus has always been an important factor in industrial disputes. 6.7% of the disputes were because of bonus in
2002 and 2003 as compared to 3.5% and 3.6% in 2004 and 2005 respectively.

Leave and working hours:

Leaves and working hours have not been so important causes of industrial disputes. During 2002, 0.5% of the
disputes were because of leave and hours of work while this percentage increased to 1% in 2003. During 2004,
only 0.4% of the disputes were because of leaves and working hours.

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Miscellaneous:
The miscellaneous factors include
- Inter/Intra Union Rivalry
- Charter of Demands
- Work Load
- Standing orders/rules/service conditions/safety measures
- Non-implementation of agreements and awards etc.

ANS: 3

GLOBALIZATION IN HRM:
With the advent of globalization and liberalization, businesses across the globe are emerging into a unified
global arena with the removal of trade barriers and communication becoming faster and cheaper. The world, in
fact, has become a global village. Firms from across the globe are entering new markets, facing new challenges
head on and forming global alliances with other firms – to compete more effectively and succeed. Under these
circumstances, it is worthwhile to study the impact of globalization on international human resources
management.

THE IMPACT OF GLOBALIZATION ON HRM:

Globalization has wide-ranging effects on different aspects of human resource management.

a) Impact on Employment:
Entry of multinationals and expansion of Indian firms since 1991 has led to increase in employment
opportunities. At the same time, closure of several firms, which, could not survive in a highly competitive
market, has resulted in loss of employment. The Government of India has created a National Renewal Fund to
compensate workers thrown out of jobs.

b) Impact on Human Resource Development:

Under global competition, more qualified staff is required to satisfy and delight customers. Therefore,
globalization and liberalization have positive impact on HRD. Proactive and continuous learning has become
necessary. Along with competency-building, building of positive attitude and values are being stressed upon.

c) Impact of Compensation:
Globalization has resulted in higher salary benefits for highly skilled and committed employees but low wages
for the unskilled and indifferent.

d) Impact on Trade Unions:

Initially, trade unions in India resisted the policy of economic liberalization, globalization and privatization. But
gradually, they have accepted the realities. In some cases, unions are co-operating with management to ensure
the survival of their organizations, which is at stake in a competitive environment.

e) Other Effects:
Globalization has improved professional human resource practices such as employee empowerment, quality
circles, employee counseling, and flexitime.