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National Institute of Business Management

Chennai - 020
FIRST SEMESTER EMBA/ MBA
Subject: Human Resources Management
Enrollment No - MBA1/OCT15N/93171446117645F
Attend any 4 questions. Each question carries 25
marks
(Each answer should be of minimum 2 pages / of 300
words)
_______________________________________________________________
3. What are the benefits of an MBO Programme?
Explain.
MBO can be defined as a set of targets or objectives set by mutual
agreement between supervisors and employees or between employer
and employees with a course of action, timeline and measuring and
monitoring techniques to achieve the objective.
According to John Humble, MBO is "a dynamic system which seeks to
integrate the company's needs to clarify and achieve its profits and
growth goals with the manager's need to contribute and develop
himself. It is a demanding and rewarding style of managing a
business."
MBO is a participative and democratic style of management. In short,
MBO is both a philosophy and approach to management

Steps in MBO programme


Goal setting: The first phase in the MBO process is to define the
organizational objectives. Once these goals are established, they
should be made known to all the members.
Manager-Subordinate involvement: After the organizational goals
are defined, the subordinates work with the managers to determine
their individual goals. In this way, everyone gets involved in the goal
setting.
Matching goals and resources: Management must ensure that the
subordinates are provided with necessary tools and materials to
achieve these goals. Allocation of resources should also be done in
consultation with the subordinates.
Implementation of plan: After objectives are established and
resources are allocated, the subordinates can implement the plan. If
any guidance or clarification is required, they can contact their
superiors.
Review and appraisal of performance: This step involves periodic
review of progress between manager and the subordinates. Such
reviews would determine if the progress is satisfactory or the
subordinate is facing some problems
Benefits of MBO programme
Improvement of managing with its result-oriented philosophy:
MBO is a result-oriented philosophy. It provides opportunities and

motivation to staff to develop and make positive contribution in


achieving the goals of an organization.
Clarification of the organization: MBO produces goals that identify
desired/expected results. Goals are made verifiable and measurable
which encourage high level of performance. They highlight problem
areas and are limited in number. The meeting is of minds between the
superior and the subordinates. Participation encourages commitment.
This facilitates rapid progress of an organization. In brief, formulation
of realistic objectives is main benefit of MBO.
Encourages the personal commitment by facilitating objective
appraisal:

MBO

provides

basis

for

evaluating

person's

performance since goals are jointly set by superior and subordinates.


The individual is given adequate freedom to appraise his own
activities. Management by self-control replaces management by
domination in the MBO process. Appraisal becomes more objective and
impartial.
Raises employee morale: Participative decision-making and two-way
communication encourages the subordinate to communicate freely and
honestly. Participation, clearer goals and improved communication will
leads in improving morale of employees.
Facilitates effective planning: MBO programs sharpen the planning
process

in

an

organization.

Developing action

plans,

providing

resources for goal attainment and discussing and removing obstacles


requires careful planning. In brief, MBO provides better management
and better results.

Acts as motivational force: MBO gives an individual or group,


opportunity to use imagination and creativity to accomplish the
mission. Managers devote time for planning results. Both appraiser and
appraise are committed to the same objective. Since MBO aims at
providing clear targets and their order of priority, employees are
motivated.
Facilitates effective control: Continuous monitoring is an essential
feature of MBO. This is useful for achieving better results. Actual
performance can be measured against the standards laid down for
measurement of performance and deviations are corrected in time. A
clear set of verifiable goals provides an outstanding guarantee for
exercising better control.
Facilitates personal leadership: MBO helps individual manager to
develop personal leadership and skills useful for efficient management
of activities of a business unit. Such a manager enjoys better chances
to climb promotional ladder than a non-MBO type.
Limitations of Management by Objectives MBO
Time-consuming: MBO is time-consuming process. The formal,
periodic progress and final review sessions also consume time.
Reward-punishment

approach:

MBO

is

pressure-oriented

programme. It is based on reward-punishment psychology.


Increases paper-work: MBO programs introduce loads of paper-work
such

as

training

manuals,

newsletters,

instruction

booklets,

questionnaires, performance data and report into the organization

Creates organizational problems: Often MBO creates more


problems than it can solve. The subordinates try to set the lowest
possible targets and superior the highest.
Develops conflicting objectives: Sometimes, an individual's goal
may come in conflict with those of another e.g., marketing manager's
goal for high sales turnover may find no support from the production
manager's goal for production with least cost.
Problem

of

co-ordination:

Considerable

difficulties

may

be

encountered while coordinating objectives of the organization with


those of the individual and the department.
Lacks durability: The first few go-around of MBO are motivating.
Later it tends to become routine.
Problems related to goal-setting: MBO can function successfully
provided measurable objectives are jointly set and it is agreed upon by
all.
Lack of appreciation: Lack of appreciation of MBO is observed at
different levels of the Organization. This creates new difficulties in the
execution of MBO program.
________________________________________________________________________

4. Explain the areas of activity of Human Resources


Planning.

Human Resources planning is a process by which management


determine how the organization should move from its current
manpower

position

to

its

desired

manpower

position.

Through

planning, management strives to have the right number and the right
kinds of people, at the right place, at the right time, doing things,
which result in both organization and the individual receiving
maximum long-run benefits.
The

objectives

of

human

resource

planning

may

be

summarized as below
The objectives of HRP is to maintain and improve the organizational
capacity to reach its goals by developing appropriate strategies that
will result in the maximum contribution of HR. HR planning should
involve in the following areas:

They should collect, maintain, improve and interpret the relevant


information regarding human resources.

They should report periodically human resource objective and


requirements, existing employees, and allied features of human
resources.

They should develop procedures and techniques to determine the


requirements of different types of human resources over period of
time from the standpoint of organizational goals.

They

should

develop

the

measures

of

HR

utilization

as

components of forecast of human resources requirements along


with independent validation.

They should employ suitable techniques leading to effective


allocation of work with a view to improving human resources
utilization.

They should conduct research to determine the factors hampering


the contribution of the individuals groups to the organization with
a view to modifying or removing these handicaps.

They

should

develop

and

employ

methods

of

economic

assessment of human resources to reflect its features as income


generator and cost and accordingly improve the quality of
decisions affecting the human resources.

They should evaluate the procurement, promotion, and retention


of the effective human resources.

They should analysis the dynamic process of recruitment,


promotion, and the loss to the organization and control these
processes with a view to maximizing the individual and the group
performances without involving high cost.

Human Resource planning process


HR planning has a critical role to play in delivering improved services
and is an important issue for an organization. At its simplest, HR
Planning is a planning process and analytical capability to measure and
compare the current workforce with the future workforce. This planning
process provides insight into the best policies and initiative needed to
improve the overall human resources system. It has a critical role in
developing personnel requirements/data elements, which should be
linked to strategic organizational planning, budgeting processes and all

recurring recruitment needs, training recruitments and planning


activities.
Five Phases for Human Resources Planning
1. Analyzing: What are the key human resources information needed?
2. Forecasting: Demand versus supply analysis.
3. Planning: Identification of strategy
4. Implementing: Implementing the new strategy
5. Evaluating: Feedback on effective of outcomes.
The various activities involved in the process of human resource
planning are:
1. Analyzing organizational plans and objectives:
The process of human resource Planning begins with analyzing the
overall plans and objectives of organization. The reason being the
human resource plans stem from business plans. Analysis of business
plans into sub-sectional and functional plans such as technology,
production, finance, marketing, expansion diversification provides for
assessing the human resource requirements for each activity in each
section and department.
Similarly the analysis of organizational objectives also provides for
human resources required by an organization. For example, if the
objective of the organization is rapid growth and expansion it would
require more human resources for its all functional areas. Thus, it is
evident the human resource planning needs to be made in accordance
to the overall organizational plans and objectives.

2. Analyzing objectives of Human Resource Planning:


The main purpose of human resource planning is matching employees
abilities to enterprise requirements, with an emphasis on future
instead of present arrangements. According to Sikula, the ultimate
mission or purpose of human resource planning is to relate future
human resources to future enterprise need so as to maximize the
future return on investment in human resources. For this, managers
need to specify the objectives of human resource planning with regard
to the utilization of human resources in the organization.
3. Forecasting Demand for Human Resources:
The demand for human resources in an organization is subject to vary
from time to time, depending upon both external and internal factors
External factors include competition, economic and political climate,
technological changes, government policy, etc.
Among the internal factors include growth and expansion, design and
structural changes, management philosophy, change in leadership
style, employees resignation retirement, termination, death, etc.
Therefore, while forecasting future demand for human resources in the
organization, these factors need to be taken into consideration.
Forecasting demand for human resources is good for several reasons
because it can help:
(i) Quantify the number of jobs required at a given time for producing a
given number of goods or offering a given amount of services,
(ii) Ascertain a staff-mix needed at different points of time in the future
and

(iii) Ensure adequate availability of people with varying qualifications


and skills as and when required in the organization.
________________________________________________________________________

5. What makes Career planning a success? Explain.


The career planning is a process of synthesize and harmonies the need
of the organization with the aspirations of the employees so that
individual can realize self-fulfillment and the organization effectiveness
can be improved.
Career planning may be defined as the planning for progress work life.
Career planning assists the employees to achieve a better match
between personal goals and the opportunities that are available in the
organization. By the help of successful career planning employees
achieve their own goals and objectives with the organizational goals
and objectives. Employees get job satisfaction within the organization
by which higher productivity and profitability become possible in the
organization which leads to the success of the company.
Career planning goes through a process as follows
1.) Identifying individual aspiration, needs: - The first stage in the
field of career planning process is to find out and identifying individual
aspiration, and need.

2.) Gathering information stage: - The second stage in the process


of career planning is to gather information regarding choosing of
career from the world or from the job market. An employee will begin
to identify potential career by gather essential information pertaining
to it as follows: (a) Learning skills and experience required.
(b) Panning for academic and career alternatives.
(c) Investigating regarding education and training required.
(d) Investigating job market requirement.
e) Learning job market trend.
(f) Learning above careers of ones interests.
g) Learning career entrance requirements.
3.)

Analyzing

career

opportunities:

Analyzing

career

opportunities is the third stage of career planning process. An


employee or individual gather information from the world or the
current job market and the exact next stage is to analyze this all
informations and job or career alternatives from one to another.
Career path shows how will be progression of an individual in future for
each alternative.
4.) Career Goal setting: - Career goal setting is the fourth stage of
career planning process. It comes exactly after analyzing the career
opportunities. In this stage individual evaluate occupational choice and
gain practical experience. Goal setting can be done with the help of
career counselor or human resource manager of the company.
5.) Exploring career: - Exploring the career is fifth stage in the
process of career planning. This stage continues when an individual

takes up a new job and start his career in an organization or a


company.
6.) Maintenance stage: - The maintenance stage is the sixth stage in
the process of career planning. This is also called the stage of stability.
7.) Decline stage: - Decline stage is the last stage in the career
planning when an employee spends his so many year in the current
company and in the old age.
Benefits of career planning for an organization and employees
1.) Full use of employees potential and strength: - Every
employee has a desire to grow and obtain an apex height in his work
place or the company. If there are enough opportunity to grow and
achievement, he pursues career goals and uses his full potential in the
company. Career planning helps an employee know the career
opportunities available in an organization.
2.) Reduce employee turnover: - An organization that make career
planning for its employees, create a great goodwill in front of
employees. In the organizational career planning individual goals are
involved in the plan, so welfare of employees become possible within
the organization. By this effort from the organization or company the
labour absenteeism and labour turn over reduce from the company.
They become happy with the company and work dedicatedly.
3.) Enhanced motivation of employees: - Career planning is a way
where the organization always takes care of employees. Every
employees have their personal goals and objectives when their
objectives and goals accomplish with the goals and objectives of

organization, the employees motivation and encouragement enhance.


Employees feel highly motivated when the organization shows them a
clear path as to how they can meet their personal ambitions while
trying to realize corporate goals.
4.) Availability of competent employees: - Career planning assists
the organization to train and develop. The organizations are able to
develop the employees so that when the time comes; there will be
adequate supply of the right types of skills and abilities needed to
enable the organization to achieve its objectives and goals.
5.) Employees growth: - With the help of best career planning the
growth of employees become possible. They work with their full
potential and strength to fulfill their personal as well as organizational
goals and objectives.
6.) Achieving goals and objectives: - A great career planner is a
planner, whether he is human resource manager for his employees or
he plans for himself, who achieve his personal as well as organizational
goals and objectives. His career planning is very powerful and has
potential to achieve common and personal goals.
7.) Helpful in job change: - The best career planning comprises all
the factors of job change. Career planning can help the organization
prepare certain categories of employees for more important jobs and
thus contribute to succession planning for the organization.
8.) Higher productivity: - With the help of better career planning of
employees in the organization the dream of higher productivity of top
level managers become possible.

9.) Job satisfaction of employees: - In the best career planning of


the employees of the organization, the emphasis of the top level
management always on job satisfaction of employees. They make a
clear cut career path and an enriched best career graph of success for
the employees where they get success and high job satisfaction
10.) Reduce cost of production: - Best career planning enhances
the job satisfaction within the employees and generates intrinsic
motivation and inspiration in the employees by which employees hard
work for the betterment of the organization. They work with there full
strength, they reduce the wastage by which reduction of cost become
possible in the organization.
________________________________________________________________________

6. Explain the various functions of Human Resources


Management
The definition of human resource management states as 'the strategic
approach

to

manpower

management

in

an

organization'.

This

specialized study and application has come in the wake of realization


that the employees of an organization, individually and collectively, are
the main contributors to the achievement of business objectives. The
management of people hired by an organization involves employing
people,

designing

and

developing

related

resources

and

most

importantly, utilizing and compensating their services to optimize


business profitability via employee performance. Managing human

resources

within

company

calls

for

liaison

between

the

organization's management personnel and the administration of the


executive rungs. It thrives on the strength of the relationship between
the management and workers of the company.
Significance of human resources management
The Human Resources (HR) function provides significant support and
advice

to

line

management.

The

attraction,

preservation

and

development of high caliber people are a source of competitive


advantage for our business, and are the responsibility of HR.
Functions of Human Resource Management
In order to achieve the above objectives, Human Resource
Management undertakes the following activities:
1. Human resource or manpower planning.
2. Recruitment, selection and placement of personnel.
3. Training and development of employees.
4. Appraisal of performance of employees.
5. Taking corrective steps such as transfer from one job to another.
6. Remuneration of employees.
7. Social security and welfare of employees.
8. Setting general and specific management policy for organizational
relationship.
9. Collective bargaining, contract negotiation and grievance handling.
10. Staffing the organization.
11. Aiding in the self-development of employees at all levels.

12. Developing and maintaining motivation for workers by providing


incentives.
13. Reviewing and auditing manpower management in the
organization
14. Potential Appraisal. Feedback Counseling.
15. Role Analysis for job occupants.
16. Job Rotation.
17. Quality Circle, Organization development and Quality of Working
Life.
Human Resource Management involves the development of a perfect
blend between traditional administrative functions and the well-being
of all employees within an organization. Employee retention ratio is
directly proportionate to the manner in which the employees are
treated, in return for their imparted skills and experience. A Human
Resource Manager ideally empowers inter-departmental employee
relationships

and

nurtures

scope

for

down-the-rung

employee

communication at various levels. The field is a derivative of System


Theory and Organizational Psychology. Human resources have earned a
number of related interpretations in time, but continue to defend the
need to ensure employee well-being. Every organization now has an
exclusive Human Resource Management Department to interact with
representatives of all factors of production. The department is
responsible for the development and application of ongoing research
on strategic advances while hiring, terminating and training staff.

The Human Resource Management Department is responsible


for

Understanding and relating to employees as individuals, thus


identifying individual needs and career goals.

Developing positive interactions between workers, to ensure


collated

and

constructive

enterprise

productivity

and

development of a uniform organizational culture.

Identify areas that suffer lack of knowledge and insufficient


training, and accordingly provide remedial measures in the form
of workshops and seminars.

Generate a rostrum for all employees to express their goals and


provide the necessary resources to accomplish professional and
personal agendas, essentially in that order.

Innovate new operating practices to minimize risk and generate


an overall sense of belonging and accountability.

Recruiting the required workforce and making provisions for


expressed and promised payroll and benefits.

Implementing resource strategies to subsequently create and


sustain competitive advantage.

Empowerment of the organization, to successfully meet strategic


goals by managing staff effectively.

Ideally, a Human Resource Management Department is responsible for


an interdisciplinary examination of all staff members in the workplace.
This

strategy

calls

for

applications

from

diverse

fields

such

as psychology, paralegal studies, industrial engineering, sociology, and

a critical understanding of theories pertaining to post-modernism and


industrial structuralism. The department bears the onus of converting
the available task-force or hired individuals into strategic business
partners. This is achieved via dedicated Change Management and
focused Employee Administration. The HR functions with the sole goal
of motivating and encouraging the employees to prove their mettle
and

add

value

to

various management
recruitment,

induction

the

company.

processes
and

like

orientation

This

is

workforce
of

hired

employee training, administration and appraisals.

achieved

via

planning

and

task-force

and