National Institute of Business Management

Chennai - 020
FIRST SEMESTER EMBA/ MBA
Subject : Human Resources Management
Attend any 4 questions. Each question carries 25 marks
(Each answer should be of minimum 2 pages / of 300 words)

1. How best one can utilize available training resources in order to achieve
organizational objectives?

2. Describe the different forms of Worker Involvement in Quality Circle.

Quality circles have amuch more limited and utilitarian scope.Unlike the
autonomous work groups, Quality Circle rarely, if ever, involve themselves in
work redesign. As the name suggests, the focus is on improving quality and cutting
costs of specific products or methods. Although these circles are generally
management inspired, worker membership is voluntary. In these circle Manager
and workersoof a particular shop or department together identity, study and
provide solutions to specific problems. Here too, workers do participate in a wide
range of issue affecting their task performance. Since both these forums limit
themselves to their work stations, they do not involve themselves beyond the realm
of their own shop. Neither of these forum deal with issues going beyond
production or product quality. It is therefore best to call the autonomous work
groups and quality circle as employees involvement programme rather than as
structures allowing worker's participation in management.
Quality circle is not a forum fir wage negotiations, grievance settlement or
discussion of welfare measures. They should initially concerns about matters like
wastage of materials, house keeping problems, space shortage, cleanliness
problem, delays, hold-ups, inadequate training, quality, productivity etc.

Objective of Quality circles:

The main objectives of Quality circle are as under:

To improve quality, productivity, safety and cost reduction
To offer opportunities to the employees to use their wisdom and creativity
To develop team spirit, cohesive culture among different levels and section of the
workers.
To improve self and mutual development including leadership quality
To fulfill the self esteem and motivational needs of the employees
To improve the life of the employees.

Benefits of Quality circle

Cost reduction
Increased productivity
Improve quality
Better communication
Better house keeping
Increased team work
Smooth team work
Better Mutual trust
Greater sense of belonging
Increased safety
Better human relations

Features of Quality Circle

To make Quality circle a voluntary work

To promote cohesive work group
To choose those projects for which necessary expertise is available
Working of quality circle needs constant valuation for improved performance
For the operation of quality circle regular education and training are essential
The gains of quality circle are to be published
Quality circle gains should be taken as reward rather than expecting financial
rewards
To ensure the involvement up to middle level

3. What are the benefits of an MBO Programme? Explain.

4. Explain the areas of activity of Human Resources Planning.

The various activities involved in the process of human resource planning are now
explain below:
1. Analysing organisational plans and objectives:
The process of human resource Planning begins with analysing the overall plans
and objectives of organisation. 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 organisational objectives also

provides for human resources required by an organisation. For example, if the

objective of the organisation 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 organisational plans and
objectives.
2. Analysing 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 maximise 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 organisation 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 organisation, 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 organisation.

How to forecast requirement for human resources in the future? There are various
techniques varying from simple to sophisticated ones employed in human resource
forecasting. These include:
1. Management Judgment
2. Work-Study Method
3. Ratio-Trend Analysis
4. Delphi Technique
5. Flow Models
6. Mathematical Models.

These are described one by one:

a. Management Judgment:

This technique is very simple and time-saving. Under this technique, either a
bottom-up or a top-down approach is employed for forecasting future human
resource requirement of an organisation. In case of bottom-up approach, lime
managers prepare departmental requirements for human resource and submit it to
the top managers for their review and consideration.In the top-down approach,
the top managers prepare the departmental forecasts which are reviewed with the
departmental heads or managers. However, neither of these approaches is accurate.
Forecasts based on these approaches suffer from subjectivity. This technique is
suitable only for small firms or in those organisations where sufficient data- base is
not readily available.

b. Work-Study Method:

This method can be used when it is possible to measure work and set standards and
where job methods do not change frequently. In this method as used by Fredrick
Winslow Taylor in his Scientific Management time and motion study are used to
ascertain standard time for doing a standard work. Based on this, the number of
workers required to do standard work is worked out. The following example
illustrates this method.Supposing, the span of control is ten, then, there will be
requirement for five (50/10) supervisors also to supervise the work of 50 workers
as forecast just above.
c. Ratio- Trend Analysis:
This is one of the quickest forecasting techniques. Under this method, forecasting
for future human resource requirements is made on the basis of time series data. In
other words, this technique involves studying past ratios (e.g., total output/ number
volume/ number of sales persons, direct workers is made for indirect workers) and,
based on these forecasting is made for future ratios. While calculating future ratios,
allowances can be made for expected changes in organization, methods and jobs.
The demand for human resources is calculated on the basis of established ratios
between two variables. Go through the following illustration. It will help you
understand how Ratio-Trend Analysis is used for forecasting human resources
requirement of an organization. In case, there is change in the employees mental
and physical health in 2000-2001, the above estimates need to be revised
accordingly in order to estimate appropriate requirement for human resources in
2000-2001.
d. Delphi Technique:
Delphi technique is named after the ancient Greek oracle at the city of Delphi This
is one of the judgmental methods of forecasting human resource needs. It is a more
complex and time-consuming technique which does not allow group members to
meet face-to-face. Therefore, it does not require the physical presence of the group
members.
The following steps characterize the Delphi technique:
1. The members are asked to provide their estimates of human resource
requirements through a series of carefully designed questionnaires.

2. Each member anonymously and independently completes the first questionnaire.

3. Results of the first questionnaire are compiled at a central location, transcribed,
and copied.
4. Each member receives the copy of the result.
5. After viewing the results, members are again asked to review their estimates.
The initial results typically trigger ne w estimates or cause changes in the original
position.
6. Steps 4 and 5 are repeated as often as necessary until a consensus is reached.
The Delphi technique insulates group members from the undue influence of others.
Also, since it does not require the physical presence of group members, even a
global company could use this technique with members/managers stationed in
different countries. As the technique is extremely time consuming, it is frequently
not appropriate when a speedy decision is necessary Further, the technique might
not develop the rich pool of alternatives that interacting or nominal groups do. The
ideas that might arise from the heat of face-to-face interaction might never come
up.
e. Flow Models:
Among the flow models, the simplest one is called the Markov model.
This model involves the following:
(i) Determination of time period that will be covered under forecast.
(ii) Establishment of employees categories also called states. There should not be
overlapping among the various categories.
(iii) Enumeration of annual flows among various categories ox states for several
time periods.
(iv) Estimation of probability of flows or movements from one category to another
based on past trends in this regard.

However, the Markovian model suffers from disadvantages like heavy reliance on
past data, which may not be accurate in abnormal situations like periods of
turbulant change, and individual accuracy in forecast is sacrificed at the cost of
group accuracy
f. Mathematical Models:
Mathematical models express relationship between independent variables (e.g.,
production, sales, etc.) and dependent variable (e.g., number of workers required).
The following is one' such widely used mathematical model for forecasting
employees need:
Where, En = (Laggn + G) 1/% / Y
En is the estimated number of workers required in n number of years. Lagg refers
to the overall value (in rupee terms) of current business operations. G denotes the
overall growth in business activity over n years at current value terms i.e. in
rupees. Y implies average improvement in productivity estimated during n number
of years. Y is level of business activity per worker. Following above formula,
estimates for manpower requirements in future are made. Due allowance can also
be made for expected changes in business strategy in future.
4. Forecasting Supply of Human Resources:
Having forecast human resource demand, the next task involved in human resource
planning is to forecast human resource supply Forecast of human resource supply
gives the quantity and quality of people available from internal and external
sources of manpower supply, after making due allowances for absenteeism,
transfers promotions, changes in work hours, and other conditions of works.
Forecasting of human resources begins with the current human resource inventory,
also called human resource audit. Human resource audit is separately discussed, in
detail, later in chanter 29. In brief, human resource inventory contains information
about present human resources in the organization. It reveals what is available in
the stock of manpower and what can be expected in future. Thus, it can indicate
whether the supply of human resources is less than its demand or more than its
demand. Whatever be the situation, the same will be made good accordingly.
5. Matching Demand and Supply:

Once demand for and supply of human resources of an organisation is forecast, the
two need to be reconciled. Such reconciliation will reveal either shortage or surplus
of human resources in future. Accordingly, action plans will be prepared to meet
the situation, i.e., to strike a balance between the two. In the case of shortage of
human resources, this will be met through recruitment, transfer, promotion,
training and development, retention, etc.On the contrary, in case of surplus human
resources, it can be made good through schemes like redeployment, retrenchment;
voluntary retirement scheme (VRS) through golden handshake etc. will be
recommended and implemented. Yes, downsizing should be done in consultation
with the employees union. This will help avoid employees resistance for change in
job.
6. Monitoring and Control:
The sixth and final step involved in human resource planning is monitoring and
control. Once the action plans are implemented, these need to be reviewed,
regulated and monitored against the set standards. Monitoring of action plans and
programmes help reveal deficiencies, if any Corrective measures help remove
deficiency and, thus, control the implementation of action plans in the right
direction. In case of changes in business environment, the action plans formulated
earlier need to be modified in the light of changing needs of organisation in the
changed environment.

5. What makes Career Planning a success? Explain.

Some of the factors which can contribute towards the success in career planning
are:
a)Expanding business enterprise for which long term projections of the
requirements of the technical, managerial & personnel can be made suitably; career
planning will be a success.
b)An organization must have clear corporate goal for the ensuing five, ten &
fifteen years & on the basis of its corporate plan it should conduct analysis
periodically to determine the types of changes its functions, activities, procedures,
technology & materials; if this is not done, an organization cannot develop the
manpower development system, thus reducing the need for career planning.
c)Interested, goal-directed, motivated & hardworking employees are essential for
making career planning programme effective. An organization can create an
environment & show genuine concern for the development of the employees, but
the employees must be willing to make use of the resources & opportunities
available. Employees should be interested in further developing themselves by
making use of training & developing facilities provided by the organisation to
make the career planning success.
D )Selection of right man for the right job is an essential pre-requisite for career
planning. The right man should not only be qualified & have necessary experience
for the job allocated, but he should also have enough potential & urge to develop
himself & grow further in the organisation.
e) Maintenance of proper age balance is also required for making career planning a
success. It is necessary to avoid rapid promotions & promotion blocks caused by
an age structure which is over balanced either on the side of aged or that of the
youth. Such blocks will not only create problems & difficulties for the smooth
working of career plan but also may affect the growth & effective functioning of
the organisation. Later it may have both the process of continuity & renewal in the
management function & the personnel.

i.
ii.
iii.
iv.
v.
vi.

Career planning seeks to meet the following objective:

Attract and retain talent by offering careers, not jobs.
Use Human resources effectively and achieve greater productivity.
Reduce employee turnover
Improve employee morale and motivation
Meet the immediate and future human resources needs to the organization on
a timely basis.

6. Explain the various functions of Human Resources Management.

Human Resource or Personnel Department is established in most of the
organisations, under the charge of an executive known as Human
Resource/Personnel Manager. This department plays an important role in the
efficient management of human resources. The personnel department gives
assistance and provides service to all other departments on personnel matters.
Though personnel or human resource manager is a staff officer in relation to other
departments of the enterprise, he has a line authority to get orders executed within
his department.
(i) Managerial,
(ii) Operative and
(iii) Advisory functions.
1. Managerial Functions:
The Human Resource Manager is a part of the organisational management. So he
must perform the basic managerial functions of planning, organising, directing and
controlling in relation to his department. There functions are briefly discussed
below:
1. Planning:
To get things done through the subordinates, a manager must plan ahead. Planning
is necessary to determine the goals of the organisation and lay down policies and
procedures to reach the goals. For a human resource manager, planning means the
determination of personnel programs that will contribute to the goals of the

enterprise, i.e., anticipating vacancies, planning job requirements, job descriptions

and determination of the sources of recruitment. The process of personnel planning
involves three essential steps. Firstly, a supply and demand forecast for each job
category is made. This step requires knowledge to both labour market conditions
and the strategic posture and goals of the organisation. Secondly, net shortage and
excess of personnel by job category are projected for a specific time horizon.
Finally, plans are developed to eliminate the forecast shortages and excess of
particular categories of human resources.
2. Organizing: Once the human resource manager has established objectives and
developed plans and programs to reach them, he must design and develop
organisation structure to carry out the various operations.The organisation structure
basically includes the following:
(i) Grouping of personnel activity logically into functions or positions;
(ii) Assignment of different functions to different individuals;
(iii) Delegation of authority according to the tasks assigned and responsibilities
involved;
(iv) Co-ordination of activities of different individuals.
3. Directing:
The plans are to be pure into effect by people. But how smoothly the plans are
implemented depends on the motivation of people. The direction function of the
personnel manager involves encouraging people to work willingly and effectively
for the goals of the enterprise. In other words, the direction function is meant to
guide and motivate the people to accomplish the personnel programs. The
personnel manager can motivate the employees in an organisation through career
planning, salary administration, ensuring employee morale, developing cordial
relationships and provision of safety requirements and welfare of employees. The
motivational function poses a great challenge for any manager. The personnel
manager must have the ability to identify the needs of employees and the means
and methods of satisfy those needs. Motivation is a continuous process as new
needs and expectations emerge among employees when old ones are satisfied.

4. Controlling: Controlling is concerned with the regulation of activities in

accordance with the plans, which in turn have been formulated on the basis of the
objectives of the organisation. Thus, controlling completes the cycle and leads
back to planning. It involves the observation and comparison of results with the
standards and correction of deviations that may occur. Controlling helps the
personnel manager to evaluate the control the performance of the personnel
department in terms of various operative functions. It involves performance
appraisal, critical examination of personnel records and statistics and personnel
audit.
2. Operative Functions: The operative functions are those tasks or duties which are
specifically entrusted to the human resource or personnel department. These are
concerned with employment, development, compensation, integration and
maintenance of personnel of the organisation. The operative functions of human
resource or personnel department are discussed below:
1. Employment: The first operative function of the human resource of personnel
department is the employment of proper kind and number of persons necessary to
achieve the objectives of the organisation. This involves recruitment, selection,
placement, etc. of the personnel. Before these processes are performed, it is better
to determine the manpower requirements both in terms of number and quality of
the personnel. Recruitment and selection cover the sources of supply of labour and
the devices designed to select the right type of people for various jobs. Induction
and placement of personnel for their better performance also come under the
employment or procurement function.
2. Development: Training and development of personnel is a follow up of the
employment function. It is a duty of management to train each employee property
to develop technical skills for the job for which he has been employed and also to
develop him for the higher jobs in the organisation. Proper development of
personnel is necessary to increase their skills in doing their jobs and in satisfying
their growth need. For this purpose, the personnel departments will device
appropriate training programs. There are several on- the-job and off-the-job
methods available for training purposes. A good training program should include a
mixture of both types of methods. It is important to point out that personnel

department arranges for training not only of new employees but also of old
employees to update their knowledge in the use of latest techniques.
3. Compensation:
This function is concerned with the determination of adequate and equitable
remuneration of the employees in the organisation of their contribution to the
organisational goals. The personnel can be compensated both in terms of monetary
as well as non-monetary rewards. Factors which must be borne in mind while
fixing the remuneration of personnel are their basic needs, requirements of jobs,
legal provisions regarding minimum wages, capacity of the organisation to pay,
wage level afforded by competitors etc. For fixing the wage levels, the personnel
department can make use of certain techniques like job evaluation and performance
appraisal.
4. Maintenance (Working Conditions and Welfare):
Merely appointment and training of people is not sufficient; they must be provided
with good working, conditions so that they may like their work and workplace and
maintain their efficiency. Working conditions certainly influence the motivation
and morale of the employees. These include measures taken for health, safety, and
comfort of the workforce. The personnel department also provides for various
welfare services which relate to the physical and social well-being of the
employees. These may include provision of cafeteria, rest rooms, counseling,
group insurance, education for children of employees, recreational facilities, etc.
5. Motivation:
Employees work in the organisation for the satisfaction of their needs. In many of
the cases, it is found that they do not contribute towards the organisational goals as
much as they can. This happens because employees are not adequately motivated.
The human resource manager helps the various departmental managers to design a
system of financial and non-financial rewards to motivate the employees.
6. Personnel Records:
The human resource or personnel department maintains the records of the
employees working in the enterprise. It keeps full records of their training,

achievements, transfer, promotion, etc. It also preserves many other records

relating to the behaviour of personnel like absenteeism and labour turnover and the
personnel programs and policies of the organisation.
7. Industrial Relations:
These days, the responsibility of maintaining good industrial relations is mainly
discharged by the human resource manager. The human resource manager can help
in collective bargaining, joint consultation and settlement of disputes, if the need
arises. This is because of the fact that he is in possession of full information
relating to personnel and has the working knowledge of various labour enactments.
The human resource manager can do a great deal in maintaining industrial peace in
the organisation as he is deeply associated with various committees on discipline,
labour welfare, safety, grievance, etc. He helps in laying down the grievance
procedure to redress the grievances of the employees. He also gives authentic
information to the trade union leaders and conveys their views on various labour
problems to the top management.
8. Separation: Since the first function of human resource management is to
procure the employees, it is logical that the last should be the separation and return
of that person to society. Most people do not die on the job. The organisation is
responsible for meeting certain requirements of due process in separation, as well
as assuring that the returned person is in as good shape as possible. The personnel
manager has to ensure the release of retirement benefits to the retiring personnel in
time.
3. Advisory Functions:
Human resource manager has specialised education and training in managing
human resources. He is an expert in his area and so can give advice on matters
relating to human resources of the organization. He offers his advice to:
1. Advised to Top Management:
2. Advised to Departmental Heads: