MBA Semester III MB0050 – Research Methodology Assignment Set – I

MB0050

Q 1. Why should a manger know about research when the job entails managing people,
products, events, environments, and the like? The manager, while managing people,
products, events, and environments will invariably face problems, big and small,
and will have to seek ways to find long lasting effective solutions. This can be
achieved only through knowledge of research even if consultants are engaged to
solve problems. The primary purpose for applied research (as opposed to basic
research) is discovering, interpreting, and the development of methods and systems
for the advancement of human knowledge on a wide variety of scientific matters of
our world and the universe. Research can use the scientific method, but need not do
so. The goal of the research process is to produce new knowledge, which takes three
main forms (although, the boundaries between them may be fuzzy): Exploratory
research, which structures and identifies new problems Constructive research, which
develops solutions to a problem Empirical research, which tests the feasibility of
a solution using empirical evidence. The research room at the New York Public
Library, an example of secondary research in progress. Research can also fall into
two distinct types: Primary research Secondary research In social sciences and
later in other disciplines, the following two research methods can be applied,
depending on the properties of the subject matter and on the objective of the
research: Qualitative research Quantitative research Research is often conducted
using the hourglass model Structure of Research. The hourglass model starts with a
broad spectrum for research, focusing in on the required information through the
methodology of the project (like the neck of the hourglass), then expands the
research in the form of discussion and results. Research and development is
nowadays of great importance in business as the level of competition, production
processes and methods are rapidly increasing. It is of special importance in the
field of marketing where companies keep an eagle eye on competitors and customers
in order to keep pace with modern trends and analyze the needs, demands and desires
of their customers.
MBA Semester III

MB0050

Unfortunately, research and development are very difficult to manage, since the
defining feature of research is that the researchers do not know in advance exactly
how to accomplish the desired result. As a result, higher R&D spending does not
guarantee “more creativity, higher profit or a greater market share.

Q2. a. How do you evolve research design for exploratory research? Briefly analyze.
b. Briefly explain Independent dependent and extraneous variables in a research
design. Answer: a. Research design in case of exploratory research studies
Exploratory research studies are also termed as formulative research studies. The
main purpose of such studies is that of formulating a problem for more precise
investigation or of developing the working hypothesis from an operational point of
view. The major emphasis in such studies is on the discovery of ideas and insights.
As such the research design appropriate for such studies must be flexible enough to
provide opportunity for considering different aspects of a problem under study.
Inbuilt flexibility in research design is needed because the research problem,
broadly defined initially, is transformed into one with more precise meaning in
exploratory studies, which fact may necessitate changes in the research procedure
for gathering relevant data. Generally, the following three methods in the context
of research design for such studies are talked about: 1. The survey of concerning
literature happens to be the most simple and fruitful method of formulating
precisely the research problem or developing hypothesis. Hypothesis stated by
earlier workers may be reviewed and their usefulness be evaluated as a basis for
further research. It may also be considered whether the already stated hypothesis
suggests new hypothesis. In this way the researcher should review and build upon
the work already done by others, but in cases where hypothesis have not yet been
formulated, his task is to review the available material for deriving the relevant
hypothesis from it. Besides, the bibliographical survey of studies, already made in
one‟s area of interest may as well as made by the researcher for precisely
formulating the problem. He should also make an attempt to apply concepts and
theories developed in different research contexts to the area in which he is
himself working. Sometimes the works of creative writers also provide a fertile
ground for hypothesis formulation as such may be looked into by the researcher. 2.
Experience survey means the survey of people who have had practical experience with
the problem to be studied. The object of such a survey is to obtain insight into
the relationships between variables and new ideas relating to the research problem.
For such a survey, people who are competent and can contribute new ideas may be
carefully selected as respondents to ensure a representation of different types of
experience. The respondents so selected may then be interviewed by the
investigator. The researcher must prepare an interview schedule for the systematic
questioning of informants. But the interview must ensure flexibility in the sense
that the respondents should be allowed to raise issues and questions which the
investigator has not previously considered. Generally, the experience of
MBA Semester III

MB0050

collecting interview is likely to be long and may last for few hours. Hence, it is
often considered desirable to send a copy of the questions to be discussed to the
respondents well in advance. This will also give an opportunity to the respondents
for doing some advance thinking over the various issues involved so that, at the
time of interview, they may be able to contribute effectively. Thus, an experience
survey may enable the researcher to define the problem more concisely and help in
the formulation of the research hypothesis. This, survey may as well provide
information about the practical possibilities for doing different types of
research. 3. Analyses of ‘insight-stimulating’ examples are also a fruitful method
for suggesting hypothesis for research. It is particularly suitable in areas where
there is little experience to serve as a guide. This method consists of the
intensive study of selected instance of the phenomenon in which one is interested.
For this purpose the existing records, if nay, may be examined, the unstructured
interviewing may take place, or some other approach may be adopted. Attitude of the
investigator, the intensity of the study and the ability of the researcher to draw
together diverse information into a unified interpretation are the main features
which make this method an appropriate procedure for evoking insights. Now, what
sorts of examples are to be selected and studied? There is no clear cut answer to
it. Experience indicates that for particular problems certain types of instances
are more appropriate than others. One can mention few examples of „insight-
stimulating‟ cases such as the reactions of strangers, the reactions of marginal
individuals, the study of individuals who are in transition from one stage to
another, the reactions of individuals from different social strata and the like. In
general, cases that provide sharp contrasts or have striking features are
considered relatively more useful while adopting this method of hypothesis
formulation. Thus, in an exploratory of formulative research study which merely
leads to insights or hypothesis, whatever method or research design outlined above
is adopted, the only thing essential is that it must continue to remain flexible so
that many different facets of a problem may be considered as and when they arise
and come to the notice of the researcher.

b. Dependent and Independent variables: A magnitude that varies is known as a

variable. The concept may assume different quantitative values, like height,
weight, income, etc. Qualitative variables are not quantifiable in the strictest
sense of objectivity. However, the qualitative phenomena may also be quantified in
terms of the presence or absence of the attribute considered. Phenomena that assume
different values quantitatively even in decimal points are known as „continuous
variables‟. But, all variables need not be continuous. Values that can be expressed
only in integer values are called „non-continuous variables‟. In statistical term,
they are also known as „discrete variable‟. For example, age is a continuous
variable; where as the number of children is a non-continuous variable. When
changes in one variable depends upon the changes in one or more other variables, it
is known as a dependent or endogenous variable, and the variables that cause the
changes in the dependent variable are known as the independent or explanatory or
exogenous variables. For example, if demand depends upon price, then demand is a
dependent variable, while price is the independent variable.
MBA Semester III

MB0050

And if, more variables determine demand, like income and prices of substitute
commodity, then demand also depends upon them in addition to the own price. Then,
demand is a dependent variable which is determined by the independent variables
like own price, income and price of substitute. 2. Extraneous variable: The
independent variables which are not directly related to the purpose of the study
but affect the dependent variable are known as extraneous variables. For instance,
assume that a researcher wants to test the hypothesis that there is relationship
between children‟s school performance and their self-concepts, in which case the
latter is an independent variable and the former, the dependent variable. In this
context, intelligence may also influence the school performance. However, since it
is not directly related to the purpose of the study undertaken by the researcher,
it would be known as an extraneous variable. The influence caused by the extraneous
variable on the dependent variable is technically called as an „experimental
error‟. Therefore, a research study should always be framed in such a manner that
the dependent variable completely influences the change in the independent variable
and any other extraneous variable or variables.

Q3. A. Differentiate between ‘Census survey’ and ‘ Sample Survey’. b. Analyze

multi-stage and sequential sampling. Answer: Surveys are done all over the world to
collect information from the populace to arrive at conclusions that help in
improving the products or services of a company. There are many techniques of
survey out of which sample survey and census survey are very popular. Though there
are many similarities between these two methods, there are many differences in
features and also the results obtained. It depends upon time available and other
circumstances to engage in either of the two types of surveys. This article will
discuss the features of two types of surveys to clear the doubts in the minds of
the readers. Before we begin to differentiate, it is pertinent to note that sample
is a portion of the population whereas census takes into consideration everyone in
the population. This obviously means that a census survey is a much bigger exercise
in nature and procedures than a sample survey. Census survey also is a very time
consuming exercise as information needs to be collected from each and every
individual from the population. On the other hand, sample survey is easier as a
representative sample is taken from the population and the results obtained are
extrapolated to fit the entire population. There are times and requirements where
governments have to indulge in census survey even if it is time consuming and very
expensive as it needs to formulate policies and welfare programs for the
population. For example, when a government has to count heads of the population, it
cannot conduct a sample survey to count the number of people in the country. But
when government is planning on a welfare program for cancer patients, it can
conduct a sample survey of some of the cancer patients and then extrapolate the
results on the section of the population that is undergoing treatment for cancer.
MBA Semester III

MB0050

There are errors in sampling in case of sample survey which can be minimized but
never eliminated. Therefore the results of a sample survey always have a margin for
error whereas census survey is always accurate. However, many times, it is not
possible to carry out census survey which is when sample survey is undertaken.

b. In multi-stage sampling method, sampling is carried out in two or more stages.

The population is regarded as being composed of a number of second stage units and
so forth. That is, at each stage, a sampling unit is a cluster of the sampling
units of the subsequent stage. First, a sample of the first stage sampling units is
drawn, then from each of the selected first stage sampling unit, a sample of the
second stage sampling units is drawn. The procedure continues down to the final
sampling units or population elements. Appropriate random sampling method is
adopted at each stage. It is appropriate where the population is scattered over a
wider geographical area and no frame or list is available for sampling. It is also
useful when a survey has to be made within a limited time and cost budget. The
major disadvantage is that the procedure of estimating sampling error and cost
advantage is complicated. Double sampling refers to the subsection of the final
sample form a pre-selected larger sample that provided information for improving
the final selection. When the procedure is extended to more than two phases of
selection, it is then, called multi-phase sampling. This is also known as
sequential sampling, as sub-sampling is done from a main sample in phases. Double
sampling or multiphase sampling is a compromise solution for a dilemma posed by
undesirable extremes. “The statistics based on the sample of ‘n’ can be improved by
using ancillary information from a wide base: but this is too costly to obtain from
the entire population of N elements. Instead, information is obtained from a larger
preliminary sample nil which includes the final sample n.

Q 4. List down various measures of central tendency and explain the difference
between them? Answer: Measures of Central Tendency Analysis of data involves
understanding of the characteristics of the data. The following are the important
characteristics of a statistical data:  Central tendency  Dispersion  Skew ness
 Kurtosis In a data distribution, the individual items may have a tendency to come
to a central position or an average value. For instance, in a mark distribution,
the individual students may score marks between zero and hundred. In this
distribution, many students may score marks, which are near to the average marks,
i.e. 50. Such a tendency of the data to concentrate to
MBA Semester III

MB0050

the central position of the distribution is called central tendency. Central

tendency of the data is measured by statistical averages. Averages are classified
into two groups. 1. Mathematical averages 2. Positional averages

Arithmetic mean, geometric mean and harmonic mean are mathematical averages. Median
and mode are positional averages. These statistical measures try to understand how
individual values in a distribution concentrate to a central value like average. If
the values of distribution approximately come near to the average value, we
conclude that the distribution has central tendency. Arithmetic Mean Arithmetic
mean is the most commonly used statistical average. It is the value obtained by
dividing the sum of the item by the number of items in a series. Symbolically we
say Arithmetic mean = ∑X/n Where ∑X = the sum of the item N = the number of items
in the series. If x1 x2 x3… xn are the values of a series, then arithmetic mean of
the series obtained by (x1 + x2 + x3… +xn) / n. If put (x1 + x2 + x3… +xn) = ∑X,
then arithmetic mean = ∑X/n When frequencies are also given with the values, to
calculate arithmetic mean, the values are first multiplied with the corresponding
frequency. Then their sum is divided by the number of frequency. Thus in a discrete
series, arithmetic mean is calculated by the following formula. Arithmetic mean =
∑fx/ ∑f Where,∑fx = sum the values multiplied by the corresponding frequency. ∑f =
sum of the frequency If x1 x2 x3… xn are the values of a series, and f1 f2 f3… fn
are their corresponding frequencies,
MBA Semester III Arithmetic mean is calculated by (f1 x1 + f2 x2 + f3x3… + fn xn) /
(f1 + f2 + f3… + fn) or Arithmetic mean = ∑fx / ∑f

MB0050

Geometric Mean Geometric mean is defined as the nth root of the product of N items
of a series. If there are two items in the data, we take the square root; if there
are three items we take the cube root, and so on. Symbolically,

Where x1, x2. ..xn are the items of the given series. To simplify calculations,
logarithms are used. Accordingly, GM = Anti log of (∑log x /n) In discrete series
GM = Anti log of ∑ f . log x / ∑ f

Harmonic Mean In individual series HM = N / ∑ (1/x) In discrete series HM = N / ∑f

(1/m) N = Total frequency M = Mi values of the class Median Median is the
middlemost item of a given series. In individual series, we arrange the given data
according to ascending or descending order and take the middlemost item as the
median. When two values occur in the middle, we take the average of these two
values as median. Since median is the central value of an ordered distribution,
there occur equal number of values to the left and right of the median.

Individual series Median = (N+ 1 / 2) th item Median for Discrete Series

MBA Semester III

MB0050

To find the median of a grouped series, we first of all, cumulate the frequencies.
Locate median at the size of (N+ 1) / 2 th cumulative frequency. N is the
cumulative frequency taken. Steps 1. Arrange the values of the data in ascending
order of magnitude. 2. Find out cumulative frequencies 3. Apply the formula (N+
1) / 2 th item 4. Look at the cumulative frequency column and find the value of the
variable corresponding to the above. Median for Continuous Series To find the
median of a grouped series, with class interval, we first of all, cumulate the
frequencies. Locate median at the size of (N) / 2 th cumulative frequency. Apply
the interpolation formula to obtain the median Median = L1 + (N/2 – m) / f X C L1 =
Lower limit of the median Class N/2 = Cumulative frequency/ 2 m = Cumulative
frequency of the class preceding the median class f = frequency of the median class
C = Class interval Merits of Median 1. Median is easy to calculate and simple to
understand. 2. When the data is very large median is the most convenient measure of
central tendency. 3. Median is useful finding average for data with open-ended
classes. 4. The median distributes the values of the data equally to either side of
the median. 5. Median is not influenced by the extreme values present in the data.
6. Value of the median can be graphically determined. Demerits of Median  To
calculate median, data should be arranged according to ascending order. This is
tedious when the number of items in a series is numerous.  Since the value of
median is determined by observation, it is not a true representative of all the
values.  Median is not amenable to further algebraic treatment.  The value of
median is affected by sampling fluctuation. Mode
MBA Semester III

MB0050

Mode is the most repeating value of a distribution. When one item repeats more
number of times than other or when two items repeat equal number of times, mode is
ill defined. Under such case, mode is calculated by the formula (3 median – 2
mean). Mode is a widely used measure of central tendency in business. We speak of
model wage which is the wage earned by most of the workers. Model shoe size is the
mostly demanded shoe. Merits of Mode     Mode is the most typical and
frequented value of the distribution. It is not affected by extreme values. Mode
can be determined even for series with open-ended classes. Mode can be graphically
determined.

Demerits of Mode 1. It is difficult to calculate mode when one item repeats more
number of times than others. 2. Mode is not capable of further algebraic treatment.
3. Mode is not based on all the items of the series.

Q.5. Select any topic for research and explain how you will use both secondary and
primary sources to gather the required information. Answer: Primary sources are
original sources from which the researcher directly collects data that have not
been previously collected e.g., collection of data directly by the researcher on
brand awareness, brand preference, brand loyalty and other aspects of consumer
behaviour from a sample of consumers by interviewing them. Primary data are first
hand information collected through various methods such as observation,
interviewing, mailing etc. Advantage of Primary Data     It is original source
of data It is possible to capture the changes occurring in the course of time. It
flexible to the advantage of researcher. Extensive research study is based of
primary data

Disadvantage of Primary Data 1. Primary data is expensive to obtain 2. It is time

consuming 3. It requires extensive research personnel who are skilled. 4. It is
difficult to administer.
MBA Semester III

MB0050

Methods of Collecting Primary Data Primary data are directly collected by the
researcher from their original sources. In this case, the researcher can collect
the required date precisely according to his research needs, he can collect them
when he wants them and in the form he needs them. But the collection of primary
data is costly and time consuming. Yet, for several types of social science
research required data are not available from secondary sources and they have to be
directly gathered from the primary sources. In such cases where the available data
are inappropriate, inadequate or obsolete, primary data have to be gathered. They
include: socio economic surveys, social anthropological studies of rural
communities and tribal communities, sociological studies of social problems and
social institutions. Marketing research, leadership studies, opinion polls,
attitudinal surveys, readership, radio listening and T.V. viewing surveys,
knowledge-awareness practice (KAP) studies, farm managements studies, business
management studies etc. There are various methods of data collection. A ‘Method’ is
different from a ‘Tool’ while a method refers to the way or mode of gathering data,
a tool is an instruments used for the method. For example, a schedule is used for
interviewing. The important methods are (a) observation, (b) interviewing, (c) mail
survey, (d) experimentation, (e) simulation and (f) projective technique. These are
sources containing data which have been collected and compiled for another purpose.
The secondary sources consists of readily compendia and already compiled
statistical statements and reports whose data may be used by researchers for their
studies e.g., census reports , annual reports and financial statements of
companies, Statistical statement, Reports of Government Departments, Annual reports
of currency and finance published by the Reserve Bank of India, Statistical
statements relating to Co-operatives and Regional Banks, published by the NABARD,
Reports of the National sample survey Organization, Reports of trade associations,
publications of international organizations such as UNO, IMF, World Bank, ILO, WHO,
etc., Trade and Financial journals newspapers etc. Secondary sources consist of not
only published records and reports, but also unpublished records. The latter
category includes various records and registers maintained by the firms and
organizations, e.g., accounting and financial records, personnel records, register
of members, minutes of meetings, inventory records etc. Features of Secondary
Sources Though secondary sources are diverse and consist of all sorts of materials,
they have certain common characteristics. First, they are readymade and readily
available, and do not require the trouble of constructing tools and administering
them. Second, they consist of data which a researcher has no original control over
collection and classification. Both the form and the content of secondary sources
are shaped by others. Clearly, this is a feature which can limit the research value
of secondary sources.
MBA Semester III

MB0050

Finally, secondary sources are not limited in time and space. That is, the
researcher using them need not have been present when and where they were gathered.
Use of Secondary Data The second data may be used in three ways by a researcher.
First, some specific information from secondary sources may be used for reference
purpose. For example, the general statistical information in the number of co-
operative credit societies in the country, their coverage of villages, their
capital structure, volume of business etc., may be taken from published reports and
quoted as background information in a study on the evaluation of performance of
cooperative credit societies in a selected district/state. Second, secondary data
may be used as bench marks against which the findings of research may be tested,
e.g., the findings of a local or regional survey may be compared with the national
averages; the performance indicators of a particular bank may be tested against the
corresponding indicators of the banking industry as a whole; and so on. Finally,
secondary data may be used as the sole source of information for a research
project. Such studies as securities Market Behaviour, Financial Analysis of
companies, Trade in credit allocation in commercial banks, sociological studies on
crimes, historical studies, and the like, depend primarily on secondary data. Year
books, statistical reports of government departments, report of public
organizations of Bureau of Public Enterprises, Censes Reports etc, serve as major
data sources for such research studies.

Q 6. a. Explain the role of Graphs and Diagrams? b. What are the Types and General
rules for graphical representation of data? Answer: In presenting the data of
frequency distributions and statistical computations, it is often desirable to use
appropriate forms of graphic presentations. In additions to tabular forms, graphic
presentation involves use of graphics, charts and other pictorial devices such as
diagrams. These forms and devices reduce large masses of statistical data to a form
that can be quickly understood at the glance. The meaning of figures in tabular
form may be difficult for the mind to grasp or retain. “Properly constructed graphs
and charts relieve the mind of burdensome details by portraying facts concisely,
logically and simply.” They, by emphasizing new and significant relationship, are
also useful in discovering new facts and in developing hypothesis. The device of
graphic presentation is particularly useful when the prospective readers are non-
technical people or general public. It is useful to even technical people for
dramatizing certain points about data; for important points can be more effectively
captured in pictures than in tables. However, graphic forms are not substitutes for
tables, but are additional tools for the researcher to emphasize the research
findings.
MBA Semester III

MB0050

Graphic presentation must be planned with utmost care and diligence. Graphic forms
used should be simple, clear and accurate and also be appropriate to the data. In
planning this work, the following questions must be considered. (a) What is the
purpose of the diagram? (b) What facts are to be emphasized? (c) What is the
educational level of the audience? (d) How much time is available for the
preparation of the diagram? (e) What kind of chart will portray the data most
clearly and accurately? b. Types of Graphs and General Rules The most commonly used
graphic forms may be grouped into the following categories: a) Line Graphs or
Charts b) Bar Charts c) Segmental presentations. d) Scatter plots e) Bubble charts
f) Stock plots g) Pictographs h) Chesnokov Faces The general rules to be followed
in graphic representations are: 1. The chart should have a title placed directly
above the chart. 2. The title should be clear, concise and simple and should
describe the nature of the data presented. 3. Numerical data upon which the chart
is based should be presented in an accompanying table. 4. The horizontal line
measures time or independent variable and the vertical line the measured variable.
5. Measurements proceed from left to right on the horizontal line and from bottom
to top on the vertical. 6. Each curve or bar on the chart should be labelled. 7. If
there are more than one curves or bar, they should be clearly differentiated from
one another by distinct patterns or colours. 8. The zero point should always be
represented and the scale intervals should be equal. 9. Graphic forms should be
used sparingly. Too many forms detract rather than illuminating the presentation.
10. Graphic forms should follow and not precede the related textual discussion.
******
MBA Semester III MB0050 – Research Methodology Assignment Set- 2

MB0050

Q 1. What is questionnaire? Discuss the main points that you will take into account
while drafting a questionnaire? Answer: Understanding how to phrase questions.
Being sensitive to questionnaire length. There are some basic differences in how
the questionnaire should be constructed if it is to be filled out personally by the
respondent or if an interviewer is going to administer it. These are: Self-
administered questionnaires should be simple, straightforward and logical It has
been estimated that as many as 50% of respondents who start a self-administered
questionnaire will not complete it because they become irritated and annoyed at the
way it is constructed. When writing a self-administered questionnaire, then, every
care must be taken to ensure that it is easy to complete In that it almost answers
itself. Self-administered questionnaires should be written with an eighth grade
mentality in mind while interviewer-administered questionnaire can be quite
complex. Because inter viewers are trained in the flow of the questionnaires they
administer and will conduct a number of practice interviews prior to confronting a
respondent, developing a complex questionnaire that is interviewer-administered
does not present a problem for the respondent. Keep the respondent in one mind-set
at a time. If at all possible, complete all your questions about on e topic before
moving on to the next. For example, don’t ask about favorite place to shop, then
about brands used and then go back to additional questioning on favorite place to
shop. Save sensitive questions for the end. Again, this might not always be
possible, but when it doesn’t matter, be aware that sensitive questions such as
race or income can alienate respondents and turn them off to the entire interview
process. If asked at the end, respondents are more likely to answer as they are
wholly invested in the questionnaire. Biased question: What do you like about the
last airline flight you took? Assumption here is that respondent liked something
and the question tends to push for a positive response. Unbiased question. What, if
anything, do you like the last airline flight you took? By simply using if anything
as part of the question phrasing, the respondent is not put on the spot to find
something to like When conducting telephone interviews, it’s relatively easy to
keep respondents on the phone and Answering questions for 15, 20 or 25 minutes if
the questionnaire has a good flow and is
MBA Semester III

MB0050

thoughtfully written. But try keeping a respondent on the phone for 3 minutes with
a questionnaire that is the least bit confusing, seems redundant or is insensitive
to sensitive issues.

Q 2. What do you mean by primary data? What are the various methods of collecting
primary data? Answer: Primary sources are original sources from which the
researcher directly collects data that have not been previously collected e.g.,
collection of data directly by the researcher on brand awareness, brand preference,
brand loyalty and other aspects of consumer behaviour from a sample of consumers by
interviewing them. Primary data are first hand information collected through
various methods such as observation, interviewing, mailing etc. Advantage of
Primary Data     It is original source of data It is possible to capture the
changes occurring in the course of time. It flexible to the advantage of
researcher. Extensive research study is based of primary data

Disadvantage of Primary Data 1. Primary data is expensive to obtain 2. It is time

consuming 3. It requires extensive research personnel who are skilled. 4. It is
difficult to administer. Methods of Collecting Primary Data Primary data are
directly collected by the researcher from their original sources. In this case, the
researcher can collect the required date precisely according to his research needs,
he can collect them when he wants them and in the form he needs them. But the
collection of primary data is costly and time consuming. Yet, for several types of
social science research required data are not available from secondary sources and
they have to be directly gathered from the primary sources. In such cases where the
available data are inappropriate, inadequate or obsolete, primary data have to be
gathered. They include: socio economic surveys, social anthropological studies of
rural communities and tribal communities, sociological studies of social problems
and social institutions. Marketing research, leadership studies, opinion polls,
attitudinal surveys, readership, radio listening and T.V. viewing surveys,
knowledge-awareness practice (KAP) studies, farm managements studies, business
management studies etc.
MBA Semester III

MB0050

There are various methods of data collection. A ‘Method’ is different from a ‘Tool’
while a method refers to the way or mode of gathering data, a tool is an
instruments used for the method. For example, a schedule is used for interviewing.
The important methods are (a) observation, (b) interviewing, (c) mail survey, (d)
experimentation, (e) simulation and (f) projective technique.

Q 3.a. Analyze the case study and descriptive approach to research. [5 marks]. b.
Distinguish between research methods & research Methodology Answer: Case study is a
method of exploring and analyzing the life of a social unit or entity, be it a
person, a family, an institution or a community. The aim of case study method is to
locate or identify the factors that account for the behaviour patterns of a given
unit, and its relationship with the environment. The case data are always gathered
with a view to attracting the natural history of the social unit, and its
relationship with the social factors and forces operative and involved in this
surrounding milieu. In short, the social researcher tries, by means of the case
study method, to understand the complex of factors that are working within a social
unit as an integrated totality. Looked at from another angle, the case study serves
the purpose similar to the clue-providing function of expert opinion. It is most
appropriate when one is trying to find clues and ideas for further research. The
major credit for introducing case study method into social investigation goes to
Frederick Leplay. Herbert Spencer was the first social philosopher who used case
study in comparative studies of different cultures. William Healey used case study
in his study of juvenile delinquency. Anthropologists and ethnologists have
liberally utilized cast study in the systematic description of primitive cultures.
Historians have used this method for portraying some historical character or
particular historical period and describing the developments within a national
community. Research design in case of descriptive research studies : Descriptive
research studies are those studies which are concerned with describing the
characteristics of a particular individual, or of a group, where as diagnostic
research studies determine the frequency with which something occurs or its
association with something else. The studies concerning whether certain variables
are associated are the example of diagnostic research studies. As against this,
studies concerned with specific predictions, with narration of facts and
characteristics concerning individual group of situation are all examples of
descriptive research studies. Most of the social research comes under this
category. From the point of view of the research design, the descriptive as well as
diagnostic studies share common requirements and as such we may group together
these two types of research studies. In descriptive as well as in diagnostic
studies, the researcher must be able to define clearly, what he wants to measure
and must find adequate methods for measuring it along with a clear cut definition
of population he wants to study. Since the aim is to obtain complete and accurate
information in the said studies, the procedure to be used must be carefully
planned. The research design must make enough provision for protection against
MBA Semester III

MB0050

bias and must maximize reliability. With due concern for the economical completion
of the research study, the design in such studies must be rigid and not flexible
and must focus attention on the following: 1. Formulating the objective of the
study 2. Designing the methods of data collection 3. Selecting the sample 4.
Collecting the data 5. Processing and analyzing the data 6. Reporting the findings.

b. Distinguish between research methods & research Methodology Research Methods and
Research Methodology are two terms that are often confused as one and the same.
Strictly speaking they are not so and they show differences between them. One of
the primary differences between them is that research methods are the methods by
which you conduct research into a subject or a topic. On the other hand research
methodology explains the methods by which you may proceed with your research.
Research methods involve conduct of experiments, tests, surveys and the like. On
the other hand research methodology involves the learning of the various techniques
that can be used in the conduct of research and in the conduct of tests,
experiments, surveys and critical studies. This is the technical difference between
the two terms, namely, research methods and research methodology. In short it can
be said that research methods aim at finding solutions to research problems. On the
other hand research methodology aims at the employment of the correct procedures to
find out solutions. It is thus interesting to note that research methodology paves
the way for research methods to be conducted properly. Research methodology is the
beginning whereas research methods are the end of any scientific or non-scientific
research. Let us take for example a subject or a topic, namely, ‘employment of
figures of speech in English literature’. In this topic if we are to conduct
research, then the research methods that are involved are study of various works of
the different poets and the understanding of the employment of figures of speech in
their works. On the other hand research methodology pertaining to the topic
mentioned above involves the study about the tools of research, collation of
various manuscripts related to the topic, techniques involved in the critical
edition of these manuscripts and the like. If the subject into which you conduct a
research is a scientific subject or topic then the research methods include
experiments, tests, study of various other results of different experiments
performed earlier in relation to the topic or the subject and the like.
MBA Semester III

MB0050

On the other hand research methodology pertaining to the scientific topic involves
the techniques regarding how to go about conducting the research, the tools of
research, advanced techniques that can be used in the conduct of the experiments
and the like. Any student or research candidate is supposed to be good at both
research methods and research methodology if he or she is to succeed in his or her
attempt at conducting research into a subject.

Q 4. Explain the important concepts in Research design? Answer: Meaning of Research

Design The research designer understandably cannot hold all his decisions in his
head. Even if he could, he would have difficulty in understanding how these are
inter-related. Therefore, he records his decisions on paper or record disc by using
relevant symbols or concepts. Such a symbolic construction may be called the
research design or model. A research design is a logical and systematic plan
prepared for directing a research study. It specifies the objectives of the study,
the methodology and techniques to be adopted for achieving the objectives. It
constitutes the blue print for the collection, measurement and analysis of data. It
is the plan, structure and strategy of investigation conceived so as to obtain
answers to research questions. The plan is the overall scheme or program of
research. A research design is the program that guides the investigator in the
process of collecting, analyzing and interpreting observations. It provides a
systematic plan of procedure for the researcher to follow elltiz, Jahoda and
Destsch and Cook describe, “A research design is the arrangement of conditions for
collection and analysis of data in a manner that aims to combine relevance to the
research purpose with economy in procedure.”

It is important to be familiar with the important concepts relating to research

design. They are: 1. Dependent and Independent variables: A magnitude that varies
is known as a variable. The concept may assume different quantitative values, like
height, weight, income, etc. Qualitative variables are not quantifiable in the
strictest sense of objectivity. However, the qualitative phenomena may also be
quantified in terms of the presence or absence of the attribute considered.
Phenomena that assume different values quantitatively even in decimal points are
known as „continuous variables‟. But, all variables need not be continuous. Values
that can be expressed only in integer values are called „non-continuous variables‟.
In statistical term, they are also known as „discrete variable‟. For example, age
is a continuous variable; where as the number of children is a non-continuous
variable. When changes in one variable depends upon the changes in one or more
other variables, it is known as a dependent or endogenous variable,
MBA Semester III

MB0050

and the variables that cause the changes in the dependent variable are known as the
independent or explanatory or exogenous variables. For example, if demand depends
upon price, then demand is a dependent variable, while price is the independent
variable. And if, more variables determine demand, like income and prices of
substitute commodity, then demand also depends upon them in addition to the own
price. Then, demand is a dependent variable which is determined by the independent
variables like own price, income and price of substitute. 2. Extraneous variable:
The independent variables which are not directly related to the purpose of the
study but affect the dependent variable are known as extraneous variables. For
instance, assume that a researcher wants to test the hypothesis that there is
relationship between children‟s school performance and their self-concepts, in
which case the latter is an independent variable and the former, the dependent
variable. In this context, intelligence may also influence the school performance.
However, since it is not directly related to the purpose of the study undertaken by
the researcher, it would be known as an extraneous variable. The influence caused
by the extraneous variable on the dependent variable is technically called as an
„experimental error‟. Therefore, a research study should always be framed in such a
manner that the dependent variable completely influences the change in the
independent variable and any other extraneous variable or variables. 3. Control:
One of the most important features of a good research design is to minimize the
effect of extraneous variable. Technically, the term control is used when a
researcher designs the study in such a manner that it minimizes the effects of
extraneous independent variables. The term control is used in experimental research
to reflect the restrain in experimental conditions.

4. Confounded relationship: The relationship between dependent and independent

variables is said to be confounded by an extraneous variable, when the dependent
variable is not free from its effects. Research hypothesis: When a prediction or a
hypothesized relationship is tested by adopting scientific methods, it is known as
research hypothesis. The research hypothesis is a predictive statement which
relates a dependent variable and an independent variable. Generally, a research
hypothesis must consist of at least one dependent variable and one independent
variable. Whereas, the relationships that are assumed but not be tested are
predictive statements that are not to be objectively verified are not classified as
research hypothesis. Experimental and control groups:
MBA Semester III

MB0050

When a group is exposed to usual conditions in an experimental hypothesis-testing

research, it is known as „control group‟. On the other hand, when the group is
exposed to certain new or special condition, it is known as an „experimental
group‟. In the aforementioned example, the Group A can be called a control group
and the Group B an experimental one. If both the groups A and B are exposed to some
special feature, then both the groups may be called as „experimental groups‟. A
research design may include only the experimental group or the both experimental
and control groups together. Treatments: Treatments are referred to the different
conditions to which the experimental and control groups are subject to. In the
example considered, the two treatments are the parents with regular earnings and
those with no regular earnings. Likewise, if a research study attempts to examine
through an experiment regarding the comparative impacts of three different types of
fertilizers on the yield of rice crop, then the three types of fertilizers would be
treated as the three treatments. Experiment: An experiment refers to the process of
verifying the truth of a statistical hypothesis relating to a given research
problem. For instance, experiment may be conducted to examine the yield of a
certain new variety of rice crop developed. Further, Experiments may be categorized
into two types namely, absolute experiment and comparative experiment. If a
researcher wishes to determine the impact of a chemical fertilizer on the yield of
a particular variety of rice crop, then it is known as absolute experiment.
Meanwhile, if the researcher wishes to determine the impact of chemical fertilizer
as compared to the impact of bio-fertilizer, then the experiment is known as a
comparative experiment. Experiment unit: Experimental units refer to the
predetermined plots, characteristics or the blocks, to which the different
treatments are applied. It is worth mentioning here that such experimental units
must be selected with great caution.

Q 5. What are the differences between observation and interviewing as methods of

data collection? Give two specific examples of situations where either observation
or interviewing would be more appropriate Answer: Collection of data is the most
crucial part of any research project as the success or failure of the project is
dependent upon the accuracy of the data. Use of wrong methods of data collection or
any inaccuracy in collecting data can have significant impact on the results of a
study and may lead to results that are not valid. There are many techniques of data
collection along a continuum and observation and interviewing are two of the
popular methods on this continuum that has quantitative methods at one end while
qualitative methods at the other end. Though there are many similarities in these
two methods and they serve the same basic purpose, there are differences that will
be highlighted in this article.
MBA Semester III

MB0050

Observation Observation, as the name implies refers to situations where

participants are observed from a safe distance and their activities are recorded
minutely. It is a time consuming method of data collection as you may not get the
desired conditions that are required for your research and you may have to wait
till participants are in the situation you want them to be in. Classic examples of
observation are wild life researchers who wait for the animals of birds to be in a
natural habitat and behave in situations that they want to focus upon. As a method
of data collection, observation has limitations but produces accurate results as
participants are unaware of being closely inspected and behave naturally.
Interviewing Interviewing is another great technique of data collection and it
involves asking questions to get direct answers. These interviews could be either
one to one, in the form of questionnaires, or the more recent form of asking
opinions through internet. However, there are limitations of interviewing as
participants may not come up with true or honest answers depending upon privacy
level of the questions. Though they try to be honest, there is an element of lie in
answers that can distort results of the project. Though both observation and
interviewing are great techniques of data collection, they have their own strengths
and weaknesses. It is important to keep in mind which one of the two will produce
desired results before finalizing.

Q 6.Strictly speaking, would case studies be considered as scientific research? Why

or why not? Answer: The case study is the most flexible of all research designs,
allowing the researcher to retain the holistic characteristics of real-life events
while investigating empirical events. In general, a case study is an empirical
inquiry which: Investigates a contemporary phenomenon within its real-life context:
when the boundaries between phenomenon and context are not clearly evident; and in
which multiple sources of evidence are used. Case studies are only one of many ways
of doing social science research, with experimentation, observation, surveys and
archival information (as mentioned above) each suited to a certain type of research
problem, degree of experimenter control over events and historical/contemporary
perspective and focus. What are case studies? By design, case studies usually take
as their principal subject selected examples of a social entity within its normal
context. At the simplest level, the case study provides descriptive accounts of one
or more cases, yet can also be used in an intellectually rigorous manner to achieve
experimental isolation of one or more selected social factors within a real-life
context. Robert Yin tried to define a case study, as part of his defense of the
method, as an attempt to examine: (a) a contemporary phenomenon in its real life
context, especially when; (b) the boundaries between phenomenon and context are not
clearly evident.
MBA Semester III

MB0050

Despite the popular misconception that case studies are limited to qualitative
analysis they can use both qualitative and/or quantitative information. In this
section we will compare the use of case studies and other research methods, look at
the different types of case studies, and the different types of case information
used. Earlier (in the early to mid 20th century) research"with an n of one"
(meaning one subject in the test) was common. Then social science got into numbers
and percentages and such, and the case study fell away as not useful enough to
learn from. However, especially in the "soft" sciences (psychology, sociology,
anthropology, ethology, etc.) that have to do with people rather than formulas or
numbers or the like, case studies can be helpful and important, especially if they
are well-constructed, or longitudinal, or are in depth on their topic. A carefully
controlled case study would generally be considered research, even careful
research, but not generally scientific research. One of the reasons is that the
subjects are not randomly assigned to conditions. Many case studies are post hoc.
Many case studies are dependent on subject reporting of experiences. It is very
difficult to do statistical analysis on case studies, which usually do not have
many subjects involved.
MBA Semester III

MB0051

MB0051: Legal Aspects of Business Assignment Set – I Q.1 Distinguish between fraud
and misrepresentation. Answer: Fraud : A false representation of a matter of fact -
whether by words or by conduct, by false or misleading allegations, or by
concealment of what should have been disclosed - that deceives and is intended to
deceive another so that the individual will act upon it to her or his legal injury.
Fraud is commonly understood as dishonesty calculated for advantage. A person who
is dishonest may be called a fraud. In the U.S. legal system, fraud is a specific
offense with certain features. In criminal law, a fraud is an intentional deception
made for personal gain or to damage another individual; the related adjective is
fraudulent. The specific legal definition varies by legal jurisdiction. Fraud is a
crime, and also a civil law violation. Defrauding people or entities of money or
valuables is a common purpose of fraud, but there have also been fraudulent
"discoveries", e.g., in science, to gain prestige rather than immediate monetary
gain. Fraud means and includes any of the following acts committed by a party to a
contract with intent to deceive the other party thereto or to induce him to enter
into a contract: (i) The suggestion as a fact of that which is not true by one who
does not believe it to be true; (ii) Active concealment of a fact by one having
knowledge or belief of the fact; (iii) Promise made without any intention of
performing it; (iv) Any other act fitted to deceive; (v) Any such act or omission
as the law specifically declares to be fraudulent. Misrepresentation
Misrepresentation is also known as simple misrepresentation whereas fraud is known
as fraudulent misrepresentation. Like fraud, misrepresentation is an incorrect or
false statement but the falsity or inaccuracy is not due to any desire to deceive
or defraud the other party. Such a statement is made innocently. The party making
it believes it to be true. In this way, fraud is different from misrepresentation.
In the broadest sense, a fraud is an intentional deception made for personal gain
or to damage another individual. The specific legal definition varies by legal
jurisdiction. Fraud is a crime, and is also a civil law violation. Fraud for profit
involves industry professionals. There are generally multiple loan transactions
with several financial institutions involved. These frauds include numerous gross
misrepresentations including: income is overstated, assets are overstated,
collateral is
MBA Semester III

MB0051

overstated, the length of employment is overstated or fictitious employment is

reported, and employment is backstopped by conspirators. The borrower's debts are
not fully disclosed, nor is the borrower's credit history, which is often altered.
Often, the borrower assumes the identity of another person (straw buyer). The
borrower states he intends to use the property for occupancy when he/she intends to
use the property for rental income, or is purchasing the property for another party
(nominee). Appraisals almost always list the property as owner-occupied. Down
payments do not exist or are borrowed and disguised with a fraudulent gift letter.
The property value is inflated (faulty appraisal) to increase the sales value to
make up for no down payment and to generate cash proceeds in fraud for profit.
Misrepresentation is a contract law concept. It means a false statement of fact
made by one party to another party, which has the effect of inducing that party
into the contract. For example, under certain circumstances, false statements or
promises made by a seller of goods regarding the quality or nature of the product
that the seller has may constitute misrepresentation. A finding of
misrepresentation allows for a remedy of rescission and sometimes damages depending
on the type of misrepresentation.

Q.2 What are the remedies for breach of contract. Answer: When someone breaches a
contract, the other party is no longer obligated to keep its end of the bargain.
From there, that party may proceed in several ways: (i) The other party may urge
the breaching party to reconsider the breach; (ii) If it is a contract with a
merchant, the other party may get help from consumers’ associations; (iii) The
other party may bring the breaching party to an agency for alternative dispute
resolution; (iv) The other party may sue for damages; or (v) The other party may
sue for other remedies. Rescission of the contract: When a breach of contract is
committed by one party, the other party may treat the contract as rescinded. In
such a case the aggrieved party is freed from all his obligations under the
contract. Damages: Another relief or remedy available to the promisee in the event
of a breach of promise by the promisor is to claim damages or loss arising to him
there from. Damages under Sec.75 are awarded according to certain rules as laid
down in Secs.73-74. Sec.73 contains three important rules: (i) Compensation as
general damages will be awarded only for those losses that directly and naturally
result from the breach of the contract. (ii) Compensation for losses indirectly
caused by breach may be paid as special damages if the party in breach had
knowledge that such losses would also follow from such act of breach. (iii) The
aggrieved party is required to take reasonable steps to keep his losses to the
minimum.
MBA Semester III

MB0051

The most common remedy for breach of contracts: The usual remedy for breach of
contracts is suit for damages. The main kind of damages awarded in a contract suit
are ordinary damages. This is the amount of money it would take to put the
aggrieved party in as good a position as if there had not been a breach of
contract. The idea is to compensate the aggrieved party for the loss he has
suffered as a result of the breach of the contract. In addition to the rights of a
seller against goods provided in Secs.47 to 54, the seller has the following
remedies against the buyer personally. (i) suit for price (Sec.55); (ii) damages
for non-acceptance of goods (Sec.56); (iii) suit for interest (Sec.56). Suit for
price Where under a contract of sale the property in the goods has passed to the
buyer and the buyer wrongfully neglects or refuses to pay the price, the seller can
sue the buyer for the price of the goods. Where the property in goods has not
passed to the buyer, as a rule, the seller cannot file a suit for the price; his
only remedy is to claim damages. Suit for damages for non-acceptance Where the
buyer wrongfully neglects or refuses to accept and pay for the goods, the seller
may sue him for damages for non-acceptance. Where the property in the goods has not
passed to the buyer and the price was not payable without passing of property, the
seller can only sue for damages and not for the price. The amount of damages is to
be determined in accordance with the provisions laid down in Sec.73 of the Indian
Contract Act, 1872. Thus, where there is an available market for the goods prima
facie, the difference between the market price and the contract price can be
recovered. Suit for interest When under a contract of sale, the seller tenders the
goods to the buyer and the buyer wrongfully refuses or neglects to accept and pay
the price, the seller has a further right to claim interest on the amount of the
price. In the absence of a contract to the contrary, the court may award interest
at such rate as it thinks fit on the amount of the price. The interest may be
calculated from the date of the tender of the goods or from the date on which the
price was payable. It is obvious that the unpaid seller can claim interest only
when he can recover the price, i.e., if the seller’s remedy is to claim damages
only, then he cannot claim interest. Buyer’s remedies against seller The buyer has
the following rights against the seller for breach of contract: (i) damages for
non-delivery (Sec.57); (ii) right of recovery of the price; (iii) specific
performance (Sec.58); (iv) suit for breach of condition; (v) suit for breach of
warranty (Sec.59); (vi) anticipatory breach (Sec.60);
MBA Semester III

MB0051

(vii)

recovery of interest (Sec.61).

Q.3 Distinguish between indemnity and guarantee. Answer: Indemnity and guarantee
are two important ways to safeguard ones interests when entering into a contract.
There are many similarities between the two concepts though they differ a lot also.
Distinction between a contract of guarantee and a contract of indemnity: L.C.
Mather in his book ‘Securities Acceptable to the Lending Banker’ has brought out
the distinction between indemnity and guarantee by the following illustration. A
contract in which A says to B, “If you lend Rs. 1 Lac to C, I will see that your
money comes back” is an indemnity. On the other hand undertaking in these words,
“If you lend 1 Lac to C and he does not pay you, I will pay” is a guarantee. Thus,
in a contract of indemnity, there are only two parties, indemnifier and
indemnified. In case of a guarantee, on the other hand, there are three parties,
the ‘principal debtor’, the ‘creditor’ and the ‘surety’. A guarantee is a promise
to someone that a third party will meet its obligation to them. “If they do not pay
you, I will pay you”. An indemnity is a promise to be responsible for another
person’s loss and to agree to compensate them for any loss or damage on mutually
agreed terms. For example, one agrees to pay the difference of repairs if they
exceed a certain limit. Other points of difference are: Indemnity Comprise only two
parties- the indemnifier and the indemnity holder. Guarantee There are three
parties namely the surety, principal debtor and the creditor. The liability of the
surety is secondary. The surety is liable only if the principal debtor makes a
default. The primary liability being that of the principal debtor. The surety give
guarantee only at the request of the principal debtor There is an existing debt or
duty’ the performance of which is guarantee by the surety. After discharging the
debt, the surety is entitled to proceed against the principal debtor in his own
name.

Liability of the indemnifier is primary.

The indemnifier need not necessarily act at the request of the indemnified. The
possibility of any loss happening is the only contingency against which the
indemnifier undertakes to indemnify. The indemnifier cannot proceed against third
parties in his own name, unless there is an assignment in his favour.
MBA Semester III

MB0051

Q.4 What is the distinction between cheque and bill of exchange. Answer: Bill of
exchange A ‘bill of exchange’ is defined by Sec.5 as ‘an instrument in writing,
containing an unconditional order, signed by the maker, directing a certain person
to pay a certain sum of money only to or to the order of, a certain person, or to
the bearer of the instrument’. Cheques A cheque is the usual method of withdrawing
money from a current account with a banker. Savings bank accounts are also
permitted to be operated by cheques provided certain minimum balance is maintained.
A cheque, in essence, is an order by the customer of the bank directing his banker
to pay on demand, the specified amount, to or to the order of the person named
therein or to the bearer. Sec.6 defines a cheque. The Amendment Act 2002 has
substituted new section for Sec.6. It provides that a ‘cheque’ is a bill of
exchange drawn on a specified banker and not expressed to be payable otherwise than
on demand and it includes the electronic image of a truncated cheque and a cheque
in the electronic from. Check It is drawn on a banker It has three parties - the
drawer, the drawee, and payee. It is seldom drawn in sets It does not require
acceptance by the drawee. Days of grace are not allowed to a banker No stamp duty
is payable on checks It is usually drawn on the printed Bill of Exchange It may be
drawn on any party or individual. There are three parties - the drawer, the drawee,
and the payee. Foreign bills are drawn in sets It must be accepted by the drawee
before he can be made liable to pay the bill Three days of grace are always allowed
to the drawee. Stamp duty has to be paid on bill of exchange. It may be drawn in
any paper and need not necessarily be printed.

Q.5 Distinguish between companies limited by shares and companies limited by

guarantee. Answer: Companies Limited by Shares: When the liability of the members
of a company is limited up to the unpaid value of their shares, it is called a
limited liability company or a company limited by shares. This liability or unpaid
amount may be called up at any time during the life time of the company or at the
time of its winding up. Such a company must have share capital since the extent of
liability is determined on the basis of the face value of shares. This company may
be a public company or a private company.
MBA Semester III

MB0051

Companies Limited by Guarantee: The liability of a member in these companies is

limited to the amount undertaken to be contributed by him at the time of winding up
of the company. The amount of guarantee is mentioned in the memorandum of
association. Such companies are formed for non-trading purposes such as charity,
promotion of sports, science, art, culture etc. These companies may or may not have
any share capital. If these companies do not have any share capital, the members
can be required to pay the amount of guarantee undertaken by them and that too in
the event of liquidation. But if these companies have any share capital, the
members are liable to pay the amount which remains unpaid on their shares together
with the amount payable under the guarantee. A company limited by guarantee and
having a share capital may be a public company or a private company.

Q.6 What is the definition of cyber crime. Answer: Cyber crime refers to all the
activities done with criminal intent in cyberspace or using the medium of Internet.
These could be either the criminal activities in the conventional sense or
activities, newly evolved with the growth of the new medium. Any activity, which
basically offends human sensibilities, can be included in the ambit of Cyber
crimes. Because of the anonymous nature of Internet, it is possible to engage in a
variety of criminal activities with impunity, and people with intelligence, have
been grossly misusing this aspect of the Internet to commit criminal activities in
cyberspace. The field of cyber crime is just emerging and new forms of criminal
activities in cyberspace are coming to the forefront each day. For example, child
pornography on Internet constitutes one serious cyber crime. Similarly, online
pedophiles, using Internet to induce minor children into sex, are as much cyber
crimes as any others. Categories of cyber crimes: Cyber crimes can be basically
divided in to three major categories: 1. Cyber crimes against persons; 2. Cyber
crimes against property; and 3. Cyber crimes against government. 1. Cyber crimes
against persons: Cyber crimes committed against persons include various crimes like
transmission of childpornography, harassment of any one with the use of a computer
and cyber stalking. The trafficking, distribution, posting, and dissemination of
obscene material including pornography, indecent exposure, and child pornography
constitute the most important cyber crimes known today. These threaten to undermine
the growth of the younger generation and also leave irreparable scars on the minds
of the younger generation, if not controlled. Similarly, cyber harassment is a
distinct cyber crime. Various kinds of harassments can and do occur in cyberspace,
or through the use of cyberspace. Harassment can be sexual,
MBA Semester III

MB0051

racial, religious, or of any other nature. Cyber harassment as a crime also brings
us to another related area of violation of privacy of citizens. Violation of
privacy of online citizens is a cyber crime of a grave nature. Cyber stalking: The
Internet is a wonderful place to work, play and study. The net is merely a mirror
of the real world, and that means it also contains electronic versions of real life
problems. Stalking and harassment are problems that many persons especially women,
are familiar within real life. These problems also occur on the Internet, in the
form of “cyber stalking” or “online harassment”. 2. Cyber crimes against property:
The second category of Cyber crimes is Cyber crimes against all forms of property.
These crimes include unauthorized computer trespassing through cyberspace, computer
vandalism, and transmission of harmful programs and unauthorized possession of
computerized information. 3. Cyber crimes against Government: The third category of
Cyber crimes is Cyber crimes against Government. Cyber Terrorism is one distinct
kind of crime in this category. The growth of Internet has shown that the medium of
cyberspace is being used by individuals and groups to threaten international
governments as also to terrorize the citizens of a country. This crime manifests
itself into Cyber Terrorism when an individual “cracks” into a government or
military maintained website, for the purpose of perpetuating terror. Since Cyber
crime is a newly emerging field, a great deal of development as to take place in
terms of putting into place the relevant legal mechanism for controlling and
preventing cyber crime. The courts in United States of America have already begun
taking cognizance of various kinds of fraud and cyber crimes being perpetrated in
cyberspace. However, much work has to be done in this field. Just as the human mind
is ingenious enough to devise new ways for perpetrating crime, similarly, human
ingenuity needs to be canalized into developing effective legal and regulatory
mechanisms to control and prevent cyber crimes. A criminal mind can assume very
powerful manifestations if it is used on a network, given the reachability and size
of the network. Legal recognition granted to Electronic Records and Digital
Signatures would certainly boost E – Commerce in the country. It will help in
conclusion of contracts and creation of rights and obligations through electronic
medium. In order to guard against the misuse and fraudulent activities over the
electronic medium, punitive measures are provided in the Act. The Act has
recognized certain offences, which are punishable. They are: Tampering with
computer source documents (Sec 65) Any person, who knowingly or intentionally
conceals, destroys or alters or intentionally or knowingly causes another person to
conceal, destroy or alter any a. Computer source code when the computer source code
is required to be kept by law for
MBA Semester III

MB0051

The time being in force, b. Computer programme, c. Computer system and d. Computer
network. - is punishable with imprisonment up to three years, or with fine which
may extend up to two lakh rupees or with both. Hacking with computer system (Sec
66): Hacking with computer system is a punishable offence under the Act. It means
any person intentionally or knowingly causes wrongful loss or damage to the public
or destroys or deletes or alters any information residing in the computer resources
or diminishes its value or utility or affects it injuriously by any means, commits
hacking. Such offenses will be punished with three years imprisonment or with fine
of two lakh rupees or with both. Publishing of information which is obscene in
electronic form (Sec 67): Whoever publishes or transmits or causes to be published
in the electronic form, any material which is lascivious or appeals to prurient
interest or if its effect is such as to tend to deprave and corrupt persons who are
likely, having regard to all relevant circumstances, to read, see or hear the
matter contained or embodied in it shall be punished on first conviction with
imprisonment for a term extending up to 5 years and with fine which may extend to
one lakh rupees. In case of second and subsequent conviction imprisonment may
extend to ten years and also with fine which may extend up to two lakh rupees.
Failure to comply with orders of the controller by a Certifying Authority or any
employee of such authority (Sec 68): Failure to comply with orders of the
Controller by any Certifying Authority or by any employees of Certifying Authority
is a punishable offence. Such persons are liable to imprisonment for a term not
exceeding three years or to a fine not exceeding two lakh rupees or to both. Fails
to assist any agency of the Government to decrypt the information (Sec 69): If any
subscriber or any person-in-charge of the computer fails to assist or to extend any
facilities and technical assistance to any Government agency to decrypt the
information on the orders of the Controller in the interest of the sovereignty and
integrity of India etc. is a punishable offence under the Act. Such persons are
liable for imprisonment for a term, which may extend to seven years. Unauthorized
access to a protected system (Sec 70): Any person who secures access or attempts to
secure access to a protected system in contravention of the provisions is
punishable with imprisonment for a term which may extend to ten years and also
liable to fine.
MBA Semester III

MB0051

Misrepresentation before authorities (Sec 71): Any person who obtains Digital
Signature Certificate by misrepresentation or suppressing any material fact from
the Controller or Certifying Authority as the case may be punished with
imprisonment for a term which may extend two years or with fine up to one lakh
rupees or with both. Breach of confidentiality and privacy (Sec 72): Any person in
pursuant of the powers conferred under the act, unauthorisedly secures access, to
any electronic record, books, register, correspondence, information, document or
other material without the consent of the person concerned discloses such materials
to any other person shall be punished with imprisonment for a term which may extend
to two years, or with fine up to one lakh rupees or with both. Publishing false
particulars in Digital Signature Certificate (Sec 73): No person can publish a
Digital Signature Certificate or otherwise make it available to any other person
with the knowledge that: a. the Certifying Authority listed in the certificate has
not issued it; or b. the subscriber listed in the certificate has not accepted it;
or c. the certificate has been revoked or suspended unless such publication is for
the purpose of verifying a digital signature created prior to such suspension or
revocation. Any person who contravenes the provisions shall be punishable with
imprisonment for a term, which may extend to two years or with fine up to rupees
one lakh or with both. Publication of Digital Signature Certificate for fraudulent
purpose (Sec 74): Any person knowingly creates, publishes or otherwise makes
available a Digital Signature Certificate for any fraudulent or unlawful purpose
shall be punished with imprisonment for a term which may extend to two years or
with fine up to one lakh rupees or with both. ******
MBA Semester III MB0051: Legal Aspects of Business Assignment Set – II Q.1 What are
the situations which cannot be referred to arbitration. Answer: Matters that cannot
be referred to arbitration.             A claim for custody of wife,
petition for restitution of conjugal rights, divorce, etc; Insolvency proceedings;
Claims arising out of illegal transactions; Questions relating to public charities
and charitable trusts; Cases relating to public nuisance; Execution proceedings;
Proceedings relating to the appointment of a guardian to a minor; Questions
relating to offences affecting public at large; Lunacy proceedings; Questions
relating to the genuineness of a will; Matters of a criminal nature.

MB0051

Q2. What is the role of a Conciliator. Answer: In conciliation proceedings, there

is no agreement for arbitration. In fact, conciliation can be done even if there is
arbitration agreement. The conciliator only brings parties together and tries to
solve the dispute using his good offices. The conciliator has no authority to give
any award. He only helps parties in arriving at a mutually accepted settlement.
After such agreement they may draw and sign a written settlement agreement. It will
be signed by the conciliator. However after the settlement agreement is signed by
both the parties and the conciliator, it has the same status and effect as if it is
an arbitral award. Conciliation is the amicable settlement of disputes between the
parties, with the help of a conciliator. Conciliation is a less frequently used
form of ADR, and can be described as similar to mediation. The Conciliator's role
is to guide the parties to a settlement. The parties must decide in advance whether
they will be bound by the Conciliator's recommendations for settlement. The parties
generally share equally in the cost of the conciliation. Offer for Conciliation:
The conciliation proceedings can start when one of the parties makes a written
request to other to conciliate, briefly identifying the dispute. The conciliation
MBA Semester III

MB0051

can start only if other party accepts in writing the invitation to conciliate.
Unless there is written acceptance, conciliation cannot commence. If the other
party does not reply within 30 days, the offer for conciliation can be treated as
rejected [Section 62]. All matters of a civil nature or breach of contract or
disputes of movable or immovable property can be referred to conciliation. However,
matters of criminal nature, illegal transactions, matrimonial matters like divorce
suit etc. cannot be referred to conciliation. The new Act has added new Chapter
containing sections from 61 to 81 which deal with Conciliation proceedings to
resolve the disputes. The New Act provides a detailed statutory framework for the
conduct of independent conciliation proceedings outside the court. It also
encourages the arbitral tribunals to use mediation, conciliation or other
Alternative Dispute Resolution (ADR) procedure during the arbitral proceedings to
encourage settlement of disputes. It is based on the Conciliation Rules adopted by
the UNCITRAL in 1980, which were conceived primarily in the context of dispute
resolution in international commercial relations. Conciliation is an informal
process in which the conciliator (the third party) tries to bring the disputants to
agreement. He does this by lowering tensions, improving communications, exploring
potential solutions and bringing about a negotiated settlement. Conciliation is a
philanthropic concept of resolving disputes through mediation and cannot be reduced
to any specific definition. The dispute should arise within legal relationship
whether contractual or not and to all proceedings relating thereto, but excludes
all those disputes which are not required to be submitted to conciliation by virtue
of any other law for the time being in enforce. The difference between conciliation
and arbitration is that in conciliation the attitude is “winwin” as against the
attitude of “win-lose” in case of arbitration. Conciliator tries to bring the
parties together so that they can discuss their disputes and resolve and hence
there is no award as such from the conciliator, whereas in the case of arbitrator,
parties are required to give their own logic and arguments and after hearing both
the parties the arbitrator gives the award. Role of the conciliator is difficult
than that of arbitrators and hence the conciliator should be a man of integrity,
trust, confidence and above board so that parties should have total confidence in
his impartiality. Conciliation is optional at present in the Act. But incase
parties have agreed to resolve the disputes through Conciliation, they have to
follow the mandatory provisions contained in sections 61 to 81. These sections
provide application and scope, commencement of conciliation proceedings, number of
conciliators and their appointment, procedures for conducting the conciliation
proceedings, roles of the conciliators, etc

Q3. What are the unfair trade practices under the MRTP Act. Unfair Trade Practices
The Consumer Protection Act has adopted the definition of ‘Unfair Trade Practices’
as given in the MRTP Act. Section 36-A of the Monopolies and Restrictive Trade
Practices Act, 1969, amended in 1993 explains what ‘unfair trade practice’ means.
Unfair trade practice methods
MBA Semester III

MB0051

are listed in section 36-A. Where the methods listed in section 36-A are adopted
for the purpose of promoting the sale, use or supply of any goods, or for the
provision of any services and thereby some loss or injury is caused to the
consumers of such goods or services, it is an unfair trade practice. The practices
mentioned in section 36-A are grouped into the following five categories. 1.
Misleading Advertisement and False Representation: These include: (a) Falsely
representing that the goods are of a particular standard, quality, quantity, grade,
composition, style or model. (b) Falsely representing that the services are of a
particular standard, quality or grade (c) Falsely representing that the re-built,
second-hand, renovated, reconditioned or old goods as new goods. (d) Representing
that the goods or services have sponsorship, approval, performance, characteristic,
accessories, uses or benefits which such goods or services do not have. (e)
Representing that the seller or the supplier has a sponsorship or approval or
affiliation which he does not have. (f) Making a false or misleading representation
concerning the need, for, or the usefulness of any goods or services. (g) Giving to
the public any warranty or guarantee of the performance or length of life of a
product which is not based on adequate test. (h) Making a materially misleading
representation to the public concerning the price at which a product or like
products of goods have been or are ordinarily sold. (i) Giving false or misleading
facts disparaging the goods, services or trade of another person. The mode of
representation or statement to the public may be by any method. It will be enough
if the statement comes to the knowledge of the buyer of those goods etc. The
representation may appear on the article or on its wrapper or container or on
anything on which the article is mounted. 2. Sale offer of bargain price: This
includes advertising for supply, at a bargain price, goods or services that are not
intended to be offered for supply at the price for a reasonable period or
reasonable quantities. 3. Schemes offering Gifts or Prizes: This category includes:
(a) offering gifts or prizes or other items with the intention of not providing
them and conducting promotional contests; (b) the conduct of any contest, lottery
or game of chances, etc. 4. Non-compliance of prescribed Standards: This category
includes cases where goods are sold for use by consumers knowing or having reason
to believe that they do not comply with the standards prescribed by some competent
authority. The prescribed standard may relate to performance, composition,
contents, design, construction, finishing or packing as are necessary to prevent or
reduce the risk of injury to the person using the goods. 5. Hoarding, destruction
or refusal: The fifty and last category of unfair trade practices includes cases of
hoarding, destruction of goods or refusal to sell goods or services so as to raise
the cost of those or similar goods. Ingredients of Unfair Trade practices:
MBA Semester III

MB0051

(a) The trade practices must consist of any of the practices listed as above. (b)
The purpose of such trade practice must be to promote the sale, use or supply of
any goods or provision of any services. (c) The trade practices must have caused
loss or injury to the consumer whether by Eliminating or restricting competition.

Q4. What are essentials of a valid offer. Answer: Essentials of a Valid Offer: a)
An offer may be general or specific: According to Sec. 2 (a) an offer must be made
to a specific person. An offer may be made to the world at large. But the contract
is made only with the person who accepts and fulfills the conditions of the
proposal. In the words of Anson, ‘An offer need not be made to an ascertained
person, but no contract can arise until it has been accepted by an ascertained
person’. In Carlill Vs Carbolic Smoke Ball Co. (1893), a Company offered by
advertisement to pay £100 to anyone who contacts the increasing epidemic influenza,
cold or any disease caused by taking cold after having used the ball as per printed
directions. It was added that ‘£1000 is deposited with the Alliance Bank showing
our sincerity in the matter’. The plaintiff used the smoke mokeball as per the
directions but subsequently suffered from influenza. She was held entitled to
recover the promised reward. b) An offer should be made with an intention of
creating legal obligation: This principle of English law though not incorporated
specifically under Section 10, is generally accepted as vital to form a legal
agreement. Social, moral or religious agreements are not legally enforceable. For
example, Mr. A invites Mr. B to dinner. Mr. B fails to attend. Mr. A cannot sue Mr.
B for unconsumed food. Whether the offeror intended to enter into legal obligations
or not could be known from the nature of the agreement and the surrounding
circumstances. The court has to ascertain the intention of the parties. The test of
contractual intention is objective and not subjective. What is considered is not
what the parties had in mind but what a reasonable person would think in the
circumstances their intentions to be. c) An offer must be definite and certain: The
terms of an offer should not be uncertain and ambiguous. Anson expressed ‘The law
requires the parties to make their own contract, it will not make a contract for
them out of terms which are indefinite or illusory ’. This is so because the courts
cannot say what the parties to the contract are to do and whether there is
violation of the contract. However, all the terms of an offer need not be
expressed. If some of the essential terms of a bargain may
MBA Semester III

MB0051

not be specified but are capable of being determined by some method other than by a
future agreement there will be a good contract between the parties. d) A statement
of intention and an invitation to offer are not offers: Preliminary negotiations
are likely to take place before entering into an agreement. In the course of such
negotiations one party may make some declarations regarding his intention of doing
something. Such a declaration by itself does not become an offer. e.g., A tells B
‘I want to sell my car’. This is not an offer. An invitation to offer is not an
offer. An advertisement for tenders for sale of goods by auction, an announcement
about the stock of goods for sale, display of goods in shop windows, prospectus of
a company, catalogue, price-lists, loudspeaker announcements etc. are merely
invitations to offer or offers. e) An offer must be communicated to the offeree: An
offer becomes operative only when it has been communicated to the person to whom
the offer is made. Communication is necessary whether the offer is specific or
general. Under Section 4 ‘the communication of a proposal is complete when it comes
to the knowledge of the person to whom it is made’. However, mere knowledge of a
proposal does not amount to communication unless the offeree acquires it with
express or implied intention of the offeror. f) The terms and conditions of offer
should also be communicated: An agreement is a two-sided bargain based on freedom
of contract. However, in modern times the buyer of an article is in an unfavourable
position. Freedom of contract becomes one-sided in the case of agreements with
common carriers, dry cleaners, tailors, insurance companies, landlords, public
utilities etc. It is also difficult to draw up a separate agreement with each
individual. Therefore, printed forms of agreements known as ‘standard form
contracts’ are used. Such forms contain large number of terms and conditions very
often small in print absolving the dominant party of all liability. The
economically weaker party has to accept all such terms and conditions irrespective
of whether he likes them or not. The Court too finds it difficult at times to
protect the interest of the weaker party. Therefore the courts have evolved certain
methods. When the offer contains special terms and conditions the offeror must
communicate all the terms and conditions either before or at the time of
contracting in order to bind the acceptor. On the other hand if the acceptor knew
that there was writing and knew or believed that the writing contained conditions
he is then bound by the conditions even though he did not read them. It is enough
if the offeror has done all that can be considered necessary to give notice to the
acceptor. g) Two identical offers do not make a contract: An offer made by a person
may cross a similar one made by another person of course in the course of transit.
They are just two identical or cross offers, though there seems to be identity of
mind. h) An offer should not contain any term the non-compliance of which amounts
to acceptance: There may be any number of terms and conditions in an offer. The
acceptor can accept or reject them. While the offeror can prescribe mode of
acceptance, he can’t prescribe the form or time of refusal so as to fix a contract
upon the acceptor. He can’t say ,
MBA Semester III

MB0051

for example, that if the offeree does not communicate before a given time, he is
deemed to have accepted the offer.

Q5. Find out a case where a person appealed under the Consumer protection Act and
won. Answer: Consumer, not only means merely one who hires services for
consideration, but also includes a person who is a beneficiary of such services.
For example, the user of a telephone, even though he is not himself the subscriber
is a consumer under the Act. Services include all kinds of professional services,
be it the routine services of a barber or the technical services of a highly
qualified person. For example, supply of electricity has been held to be a service
and not sale of goods. The services must be of commercial nature in the sense that
they must be on payment. The payments may be in cash or kind. It may be made either
at once, or partly at once, or partly on credit. The services may be rendered
wholly or partly on credit. However, free services or personal service under a
contract have been excluded from the protective spell of the Consumer Protection
Act. Union of India Vs. Mrs. S. Prakash: It was held that the subscriber of
telephone is a consumer as the rental charges paid to the Central Government is the
consideration for the services rendered by the Tele- Communication Department,
District Manager, Telephones, Patna Vs. Lalith Kumar Bajla (1989). Few other cases:
Mumbai Grahak Panchayat, Vs. Andhra Pradesh Scooters Ltd. The complainant made an
advance deposit of Rs.500 with the A.P. Scooters Ltd., booking a scooter. The
complaint was not given the refund of the deposit when he demanded the same as per
his contract with the opposite party. It was held that the complainant was a
consumer, and was entitled to relief asked by him. Ganapathi Vs. Postmaster,
Karnataka State: In this case, the remitter of T.M.O.,was held to be a consumer and
was awarded a compensation. Cosmopolitan Hospitals Vs. Smt. V.P. Nair’s: The
National Commission held, that a patient is a consumer and the medical assistance
was a service. The Medical Officer’s service was not a personal service so as to
constitute an exception to the application of the Consumer Protection Act.

Q6. What does the Information Technology Act enable. Answer: Information Technology
Act enables:  Enables Legal recognition to Electronic Transaction / Record 
Facilitates Electronic Communication by means of reliable electronic record 
Provides for acceptance of contract expressed by electronic means
MBA Semester III

MB0051

 Facilitates Electronic Commerce and Electronic Data interchange.  Facilitates

Electronic Governance.  Facilitates electronic filing of documents.  Enables
retention of documents in electronic form.  Where the law requires the signature,
digital signature satisfies the requirement.  Ensures uniformity of rules,
regulations and standards regarding the authentication and integrity of electronic
records or documents.  Facilitates Publication of Official Gazette in the
electronic form.  Enables interception of any message transmitted in the
electronic or encrypted form.  Prevents Computer Crime, forged electronic records,
international alteration of electronic records fraud, forgery or falsification in
Electronic Commerce and electronic transaction. Digital Signature: Any subscriber
may authenticate an electronic record by affixing his digital signature. [section
3(1)]. “Subscriber" means a person in whose name the Digital Signature Certificate
is issued. [section 2(1)(zg)]. "Digital Signature Certificate" means a Digital
Signature Certificate issued under section 35(4) [section 2(1)(q)]. "Digital
signature" means authentication of any electronic record by a subscriber by means
of an electronic method or procedure in accordance with the provisions of section
3. [section 2(1)(p)]. "Affixing digital signature" with its grammatical variations
and cognate expressions means adoption of any methodology or procedure by a person
for the purpose of authenticating an electronic record by means of digital
signature. [section 2(1)(d)]. Authentication of records: The authentication of the
electronic record shall be effected by the use of asymmetric crypto system and hash
function which envelop and transform the initial electronic record into another
electronic record. [section 3(2)]. Verification of digital signature: Any person by
the use of a public key of the subscriber can verify the electronic record.
[section 3(3)]. The private key and the public key are unique to the subscriber and
constitute a functioning key pair. [section 3(4)]. The idea is similar to locker
key in a bank. You have your ‘private key’ while bank manager has ‘public key’. The
locker does not open unless both the keys come together match. Electronic records
are acceptable unless specific provision to the contrary: Where any law provides
that information or any other matter shall be in writing or in the typewritten or
printed form, then, notwithstanding anything contained in such law, such
requirement shall be deemed to have been satisfied if such information or matter is
- (a) rendered or made available in an electronic form; and (b) accessible so as to
be usable for a subsequent reference. [section 4]. - - Unless there is specific
provision in law to contrary, electric record or electronic return is acceptable. -
- Soon, it will be possible to submit applications, income tax returns and other
returns through internet. Department or Ministry cannot be Compelled to Accept
Electronic Record - Section 8 makes it clear that no department or ministry can be
compelled to accept application, return or any communication in electronic form.
MBA Semester III

MB0051

Legal recognition of digital signatures: Where any law provides that information or
any other matter shall be authenticated by affixing the signature or any document
shall be signed or bear the signature of any person then, notwithstanding anything
contained in such law, such requirement shall be deemed to have been satisfied, if
such information or matter is authenticated by means of digital signature affixed
in such manner as may be prescribed by the Central Government. - - "Signed", with
its grammatical variations and cognate expressions, shall, with reference to a
person, mean affixing of his hand written signature or any mark on any document and
the expression "signature" shall be construed accordingly. [section 5]. Secure
digital signature: If, by application of a security procedure agreed to by the
parties concerned, it can be verified that a digital signature, at the time it was
affixed, was - (a) unique to the subscriber affixing it (b) capable of identifying
such subscriber (c) created in a manner or using a means under the exclusive
control of the subscriber and is linked to the electronic record to which it
relates in such a manner that if the electronic record was altered the digital
signature would be invalidated, - - then such digital signature shall be deemed to
be a secure digital signature. [section 15]. Certifying digital signature: The
digital signature will be certified by ‘Certifying Authority’. The ‘certified
authority’ will be licensed, supervised and controlled by ‘Controller of Certifying
Authorities’.
MBA Semester III MU0010 –Manpower Planning and Resourcing Assignment Set- 1 Q1.
What are the benefits of manpower demand forecasting? Benefits of Forecasting

MU0010

Answer: Forecasting is valuable for two reasons: • The end-result if accurate is

very valuable. An accurate forecast may improve likely hood of achieving all
organizational goals for the year. It can help identify risks, clarify what needs
to be done and sets fair expectations. • The process of forecasting makes managers
sensitive to change and helps them to curtail their flamboyant decision making on
the manpower expenditure side is and helps focus on achieving the business goals.
It also enables them to understand the impact of their actions on the organizations
and their own future and helps build consensus. Sometimes consensus is critical.
The fact that everybody has agreed on a forecast may be more essential than its
accuracy, particularly if the consensus involves many firms and organizations
crossing organizational and cultural barriers. Consensus works both ways. An agreed
forecast can be self-fulfilling. Some of the other benefits of forecasting are: 1.
It does not put stress on the system. 2. Lower stress on the system means lower
manpower turnover. 3. Lower stress on the system means lower costs, and no need to
do any unplanned expenditure. 4. Lower stress on the system means work gets
delivered on time every time to the client. 5. Lower stress on the system means
work gets delivery as per the quality standards every time to the client. 6. Lower
stress on the system means that client does not make any escalations against
employees and does not threaten to withdraw the business on concerns of quality or
timeliness. 7. Lower stress on the system means lesser procedures and interference
from the quality team or the management team. 8. Lower stress on the system means
more freedom of control to resolve issues in the budding stages, than letting them
reach a point where escalations arise. 9. Lower stress on the system means the
employees have a stress free life and greater work-life balance. 10. Lower stress
means the employees get enough time to spend with family and their presence can
help resolve concerns or issues which if unresolved can grow exponentially and
cause life changing events to occur. 11. Lower stress means the employees are able
to learn more and add more value to the business and contribute more in terms of
productivity. 12. Lower stress can be extrapolated to mean world peace (though some
may not agree). Hence better demand forecasting, means happiness for all concerned.
13. Lower stress levels do not kill employees through massive heart attacks. But
poor
MBA Semester III

MU0010

demand forecasting leading to higher stress levels can be harmful to the employee’s
individual health.

Q2. Distinguish between internal and external sources of recruitment. Answer: Many
organizations use a combination of both internal and external sourcing alternatives
to deliver business support services. Sourcing the candidate from within the
organization is known as internal source of recruitment and sourcing candidates
from other sources is known as external source of recruitment.  Internal Sourcing
 External Sourcing Proficient planning and execution of these “multi-sourcing”
strategies requires efficient control and change management. The sourcing strategy
must accomplish a proper balance between business drivers such as cost, quality of
services, transformation, business agility and control. Organizations should focus
on aligning these solutions with short-term and longterm business goal, as well as
the strategic and planned initiatives across their business units. The success of
sourcing alternatives depends on the strategic alignment of sourcing internally. 1.
Internal Sourcing When you hire staff or contract staff who is working or was
working with your organization earlier, then it is called as internal sourcing. An
internal source is considered for: Promotions Availability of competent resources
within the organization are given first preference and considered for filling the
vacancies at higher levels by way of promotions. Transfers In case of excess hiring
or businesses slowing due to various reasons in one branch of an organization and
shortage of employees in another branch, organizations consider transferring
surplus employees to meet the shortage of staff in the other branch rather than
sourcing externally. Temporary Staff Many organizations appoint temporary staff for
short projects. At the end of such projects organization often try to retain
efficient resources by deploying them to available positions in other roles.
Retired Employees Sometimes organizations prefer to re-employ their retired
employees due their immense experience and knowledge and lack of suitably skilled
and efficient candidate matching their requirement for the job opening.
MBA Semester III

MU0010

Advantages of Internal Sourcing The advantages of internal sourcing are:  Reduces

cost of recruitment.  Reduces cost of training, induction and orientation.  The
time to transfer to the new role may be shorter.  The past performance track
record of the employee is known.  Motivates employees and provides experienced
competent people for the job role.  Stability of employment can be ensured for the
candidate. Disadvantages of Internal Sourcing  Limits the options for selection. 
Lack of new ideas and approaches from outside the business.  Creates another
vacancy by moving the candidate from current job.  May discourage the candidates
not appointed. 2. External Sourcing When you hire staff or contract staff who has
never worked with your organization earlier, then it is called as external
recruitment. Examples are: Advertisements in Media Advertisements of the job
openings in newspaper and journals magazines are generally used as a source of
external recruitment. Campus Selections in Institutions Various colleges and
institutions are a good source of recruiting well qualified executives, engineers,
medical staff etc. Employee Referrals Organizations encourage internal employees by
providing benefits for referring friends and relatives for some position in their
organization. Consultants They identify candidates matching the job profile and
charge a fee for providing candidates till you find the right candidate who accepts
the offer. Data Banks Organizations collect CVs of candidates from different
sources like employment exchange, training institutes etc. and screen and shortlist
the candidates. When the business grows and if the business is manpower intensive,
then additional resources are required. Therefore external recruitment is done.
This is the only way to scale up the business. Also it brings in a freshness of
thought and perspective. Capable people from the world’s best organizations bring
best practices with them. They bring the culture of performance and meritocracy.
External recruitment has many advantages. If the job role requires tremendous
experience (e.g. 15 years), it is better to hire someone externally than to wait
for people in your own organization with 4 years experience to gain 11 more years
of experience.
MBA Semester III

MU0010

Q3. Explain the different levels of talent engagement. Answer: Talent engagement is
the concept which explains the degree to which a talent (employee) is emotionally
bonded to his/her organization and passionate about his work. Talent engagement is
the level of commitment and involvement a person has towards his organization and
its values. An engaged talent (employee) is well aware of the organizations
business context, and how to work with colleagues to improve performance in his/her
job and hence benefit the organization. Talent engagement forms a critical
ingredient for an individual as well as the organizations success. Talent
engagement is strongly influenced by the depth of the leadership and its qualities,
and organizations culture. Talent engagement is creating an atmosphere for
employees to go beyond job responsibilities to delight customers and promote
business. Talent engagement is a powerful retention strategy. The definition of a
fully engaged talent might be any of the following:  One who is intellectually &
emotionally bonded with an organization  One who gives hundred percent  One who
feels passionately about achieving organizations goals  One who lives the values
of the organization Engagement Levels Studies revealed that there are 3 levels of
engagement: 1. Engaged Talent Engaged talent performs consistently at high levels.
Engaged talent is always ready to find out expectations from them or their role so
that, they can meet and exceed them. They are more curious about their company and
their position in it. They work whole heartedly using their talent and strengths at
workplace every day for the betterment of their organization. They work towards
driving innovation in the organization and for moving it forward. 2. Not Engaged
Talent This is a kind of talent that tends to concentrate more on the tasks
allotted to them rather than the goals and outcomes expected. They have to be told
their responsibilities, so that they can complete their work. Consequently the
focus shifts from accomplishing tasks rather than achieving an outcome. Employees
who are not engaged tend to feel their contributions are being overlooked, and
their potential is not being tapped. The reason behind them feeling like this is
that they do not have productive relationships with their managers or colleagues.
And they do not produce any positive results for the organization also. 3. Actively
Disengaged Employee These employees are consistently against almost everything.
Apart from being unhappy at work they are far busier demonstrating their
unhappiness. Actively disengaged employees undermine what their engaged colleagues
accomplish. Actively disengaged workers cause great damage to the organization in
general. It is better to retrench such employees.
MBA Semester III

MU0010

Q4. How does Human Resource Accounting help the organization in its effort for
development of employees? Answer: According to, The American Accounting
Association’s committee (1973), human resource accounting is “the process of
identifying and measuring data about human resources and communicating this
information to interested parties”. So apart from calculating the costs and
investments in processes like recruitment, hiring, placement and training, HRA also
quantifies the value of employees in an organization. According to Flamholtz (1971)
HRA is defined as “the measurement and reporting of the cost and value of people in
organizational resources”. Featuring HRA related information is not a statutory
requirement as per the Companies Act (1956). The Institute of Chartered Accountants
of India has not defined any standard or measurement to report HRA. This does not
make HRA a superficial analysis. There are a few organizations like BHEL and SAIL
which understand the importance of HRA and emphasize on furnishing related
information in their annual reports. 1. Need for HRA The need for Human Resource
accounting comes from a simple belief that anything that needs to be improved needs
to be measured first. Once organizations realized the value of Human Resource and
its contribution to the effectiveness of the business, they felt the need of
sustaining and increasing this value. In order to identify whether or not they are
moving in this direction, it was imperative to measure value of people in the
organization. In order to measure this a few methods were developed and employed.
These methods or processes form Human Resource Accounting. 2. Significance of HRA
In any organization, management takes decisions on various business aspects. These
decisions have both long term and short term implications. Human Resource
Accounting helps the management take well informed decisions for the betterment of
the organization. In absence of HRA there could be decisions which are seemingly
profitable in the short term but may have adverse effects in the long run. For
instance an organization hiked the sales incentives to spruce up sales for a
particular month. The desired targets were achieved for that month. However, in the
next few months the performance deteriorated drastically as the organization could
not offer the same hiked incentives due to pressures on the bottom line. HRA
provides vital information to the management and assists in effective human
resource management. It also adds value to critical HR processes – Hiring,
Training, Developing, Retaining, Rewarding etc.
MBA Semester III

MU0010

Q5. Describe knowledge management. Answer: Knowledge Management In knowledge

management an enterprise consciously and comprehensively gathers, organizes,
shares, and analyzes its knowledge in terms of resources, documents, and people
skills. Advances in technology and the way we access and share information has
changed how knowledge management is done. Organizations today have some kind of
knowledge management framework in place. Knowledge is intangible, dynamic, and
difficult to measure, but without it no organization can survive. There are two
types of knowledge. They are: · Tacit: or unarticulated knowledge is more personal,
experiential, context specific, and hard to formalize; is difficult to communicate
or share with others; and is generally in the heads of individuals and teams. ·
Explicit: explicit knowledge can easily be written down and codified. How can we
transfer tacit knowledge? We can transfer tacit knowledge through mechanisms of
socialization, mentorships, apprenticeships and face-to-face communication. Since
knowledge may be an organization’s only sustainable competitive advantage, it is
very important to capture tacit knowledge. Intranets and e-mail help knowledge flow
through an organization. Tacit knowledge often moves laterally through informal
channels of communication (communities of practice). For example, those groups that
hang around the coffee machine – they are exchanging knowledge, just as the smokers
huddled near the entrance to the building at break time. The information that is
passed in this way is very important because it is useful for helping people to get
their work done more effectively, in part, because nobody is willing to question or
think about it very much. Communities of practice must have their place in a
comprehensive knowledge management effort. Keep in mind that flows of knowledge are
an organization’s capacity to learn. They are all you really have. The move from an
industrially-based economy to knowledge or information-based one in the 21st
Century demands a top-notch knowledge management system to secure a competitive
edge and a capacity for learning. Knowledge Management (KM) Facts & Predictions 
The KM context Fortune 500 companies will lose US$31.5bn by 2003 through KM
inefficiency (IDC).  Employees spend 6 weeks p.a. searching for experts to
complete work (Northrop Grumman).  7-20% of time is spent duplicating the work of
others (Delphi Group)  Information professionals spend 15 hours+ searching for
information on the Internet. Their searches are only 44% effective (IRN Services).
The new source of wealth is knowledge, and not labor, land, or financial capital.
It is the intangible, intellectual assets that must be managed. The knowledge
economy rests on three pillars:  The role that knowledge plays in transactions: it
is what is being bought and sold; both the raw materials and the finished goods 
The concurrent rise in importance of knowledge assets, which transform and add
MBA Semester III

MU0010

 

    

value to knowledge products The emergence of ways to manage these materials and
assets, or KM An accepted definition of knowledge management does not yet exist,
although perspectives on knowledge abound, but there are three important points to
keep in mind: Knowledge today is a necessary and sustainable source of competitive
advantage. In an era characterized by rapid change and uncertainty, it is claimed
that successful organizations are those that consistently create new knowledge,
disseminate it through the organization, and embody it in technologies, products,
and services. Indeed, several sectors - for example, the financial services,
consulting, and software industries — depend on knowledge as their principal way to
create value. Thus knowledge is displacing capital, natural resources, and labor as
the basic economic resource. Governments know this all too well. There is general
recognition that companies are not good at managing knowledge. They may undervalue
the creation and capture of knowledge, they may lose or give away what they
possess, they may deter or inhibit knowledge sharing, and they may under-invest in
both using and reusing the knowledge they have. Above all, they often do not know
what they know. This is probably true of explicit or articulated knowledge: that
which can be expressed in words and numbers and can be easily communicated and
shared in hard form, as scientific formulas, codified procedures, or universal
principles. It is undoubtedly true of tacit or unarticulated knowledge: that which
is more personal, experiential, context specific, and hard to formalize; is
difficult to communicate or share with others; and is generally in the heads of
individuals and teams. Recognizing the potential of knowledge in value creation and
the failure to fully exploit it, some corporations have embarked on knowledge
management programs. Organizations are making explicit attempts to manage knowledge
as a resource, in particular: Designing and installing techniques and processes to
create, protect, and use known knowledge. Designing and creating environments and
activities to discover and release knowledge that is not known. Articulating the
purpose and nature of managing knowledge as a resource and embodying it in other
initiatives and programs.

Importance of Organizational Knowledge  Knowledge can be embedded in processes,

products, systems, and controls  Knowledge can be accessed as it is needed from
sources inside or outside the firm  It is versatile and can be transferred
formally, through training, or informally, by way of workplace socialization  It
is the essence of the competitive edge! For successful knowledge management focus
on five tasks:  Generating knowledge  Accessing knowledge  Representing and
embedding knowledge
MBA Semester III  

MU0010

Facilitating knowledge Transferring knowledge

It is a process of instilling the culture and helping people find ways to share and
utilize their collective knowledge. In summary, knowledge management is enabling an
organization to harness its knowledge and competencies and transferring them to
others. There are three key process steps. First step is converting tacit knowledge
into explicit knowledge. Second step is harness the knowledge of organizations/
departments present in decisions taken in a given context, process changes made,
documenting learning from projects, process improvement initiatives, inputs during
client feedback/ interaction and how not to repeat mistakes ever again. The third
and last step is developing the ability to share knowledge with employees/partners
of the organization. Knowledge Transfer The key part of knowledge management is
transferring knowledge. A company intranet may be a way of transferring knowledge.
Presentations made by employees to other colleagues could be part of the knowledge
transfer process. An end of project report can be part of a knowledge transfer
process. If knowledge transfer fails the entire effort is wasted. Making
information accessible helps knowledge transfer. Indexing information, making a
bibliography makes knowledge transfer easy.

Q6. Ms. Lalita Singh has joined Triumphant India Private Limited. As an HR Manager,
how would you prepare an induction programme for her? Answer: Company Induction We
will prepare an induction programme for Ms. Lalita as follows : HR Department The
Human Resource department handles all the details of recruitment and gives the
official start date as a new employee of staff. The HR Department also issues the
staff identification card, keeps your record and will issue you with some
information when you collect your staff ID card/number. Department The department
where new employees will work and the management team will welcome new employee and
ensure that he/she becomes familiar with the work area, colleagues, important
policies and procedures, health and safety issues and most importantly a new
employees’ immediate work needs. Finance Department This will take care of the new
employees’ salary and pension arrangement plans.
MBA Semester III

MU0010

Employee Training and Development HR department co-ordinate the welcome, induction

and orientation process information and formal induction events. Employee training
and development will provide details of training courses, dates and financial
assistance for training and development for all new employees. Information is
generally available in hardcopy format or on the company website. Information
Technology This will provide new employees with IT support, online access login
details and e-mail account etc. As a new employee joining this large organisation
it will take time to settle in and fit in, find out what you need to know. In all
cases the HR manager or other experienced employees should help new employees with
any immediate questions you may have. Other key staff contacts are ready to help
and welcome new colleagues.  Formal Induction  Informal Induction 1. Informal
Induction In this the new employees are instructed to report to the HR department
for an explanation of organization policies before being referred to the manager
for on the job briefing on specific work process. In informal orientation, new
employees are put directly on the job and are expected to adjust themselves on the
new job and organization. Informal orientation tends to be brief; may last for an
hour or may be less than an hour. Example: A sales person is asked to go along with
a tenured high performing sales person or his manager to make sales calls and learn
about the product and the selling skills during the calls. 2. Formal Induction Here
the management has a structured programme which is executed when new employees join
the firm. Formal induction is more elaborate and is spread over a couple of weeks
or months. Most formal induction programmes consist of three stages:  General
introduction to the organization often given by the HR department.  Specific
orientation to the job and the department, typically given by the supervisor or
manager.  Follow up meeting to verify that the important issues have been
addressed and employee questions have been answered. This follow up meeting usually
takes place after a week of joining between the new employee and the manager. A
formal induction programme is shared by the HR specialists and managers. The HR
manager covers areas as:  Introduction: to supervisors, trainers and colleagues. 
Organization issues: organization history, history of the employer, names and
titles of important executives, departments, layout of physical facilities,
probationary period, product line, production procedure, organization policies and
procedures, disciplinary regulations, safety procedures.  Employee benefits: pay
scale, pay days, vacation and holidays, rest breaks, training and education
benefits, counselling, insurance benefits, retirement programme etc.
MBA Semester III 

MU0010

Supervisors outline the main job duties: job location, task and overview of job,
safety requirements and relationship to other jobs.

The choice between formal and informal induction will depend mainly on the goals
and objectives of the organization. The more formal the programme the more the new
employee will acquire a set of standards. Many organizations prepare certain
induction manual and induction powerpoint presentations which they keep on the
intranet . These can be aceesed only by the company employees. It is helpful when
employees join in small numbers at different point of time, when a separate
induction programme cannot be held. This is also helpful to clarify any doubts an
employee may have regarding certain organizational practices. In an informal
programme individual differences are maintained.
MBA Semester III MU0010 –Manpower Planning and Resourcing Assignment Set- 2 Q1.
What are the steps involved in manpower planning?

MU0010

Answer: Steps in Manpower Planning Manpower planning requires that an estimate of

the present and future needs of the organization should be compared with the
available manpower and future predicted manpower. Appropriate steps are then taken
to bring demand and supply into balance. The outcome of this planning is a well
‘thought out’ and logical manpower demand plan for varying dates in the future
which can then be compared with the crude manpower supply schedules. The
comparisons will then indicate what steps should be taken to achieve a balance. The
5 steps in the manpower planning process are:  Evaluate present manpower inventory
 Manpower forecasting  Develop a manpower sourcing plan or retrenchment plan 
Manpower allocation  Building requisite competencies 1. Evaluate Present Manpower
Inventory It is very important to evaluate the present manpower status before
making a forecast for future manpower planning. To evaluate the present manpower
status a department by department analysis and a job-role by job-role analysis is
conducted to arrive at the required manpower versus the available manpower. This is
accumulated across the organization at different levels and departments. The final
report will consolidate and state the required manpower versus the available
manpower in terms of the quantitative analysis. Another analysis on the qualitative
side conducted similarly shows the competencies required versus competencies
available for each of the job roles. This provides the present manpower inventory.
There may be excess or deficit or in extremely few cases just the right number
quantitatively. The report on the qualitative front may rarely have a 100% match
between required competencies versus available competencies. 2. Manpower
Forecasting Manpower planning is done based on the manpower forecasts. The common
manpower forecasting techniques are: (i) Expert Forecasts: This includes formal
expert surveys, informal decisions and the Delphi technique. (ii) Trend Analysis:
Manpower needs can be seen through the past practice of the firm or organization
keeping the principle year as a basis and a central tendency of measure (iii) Work
Load Evaluation: This depends on the nature of the work load in a branch,
department, or a division in a firm or organization. (iv) Work Force Evaluation: As
production and the time duration are to be kept in mind, allotments have to be made
for getting the total manpower requirements. (v) Other Methods: A few mathematical
models with the help of computers are also used to
MBA Semester III

MU0010

forecast manpower needs. 3. Develop a Manpower Sourcing Plan or Retrenchment Plan

Once the current inventory is compared with the future manpower forecasts then the
manpower sourcing or retrenchment plan is drawn. The sourcing plan includes
recruitment, selection, placement, hiring temporary staff and outsourcing. You will
learn more about the sourcing plan in unit 6. The retrenchment plan involves
sending show-cause notices to bottom performers called bottom scraping, asking
people to leave the organization by providing the requisite severance allowance,
allowing employees to go on a sabbatical and finally out-placing employees in other
organizations to reduce the manpower. It is harder to retrench manpower. The need
for retrenchment could also be minimized by very objectively approving any
additional manpower. 4. Manpower Allocation & Retention Manpower allocation helps
in managing the impact of deficits and excess in manpower supply through
promotions, transfers and job-rotations. Enhancing manpower utilization requires
managing the dynamics of leadership and motivation. Manpower retention would mean
taking necessary steps to ensure that the organization provides a conducive-
atmosphere to the employees to perform and keeps each employee engaged. 5. Building
Requisite Competencies Once the future manpower forecasts are compared to the
current inventory, there may be some gaps in competencies amongst the available
internal resources for them to qualify for the future manpower forecasts. In such
cases organizations may choose to develop resources through training programs. A
training calendar is designed to ensure competencies of existing staff are enhanced
to meet the future manpower forecasts. Additional training programs may be designed
when organizations are diversifying or expanding. Training programs may be designed
to train existing resources on the latest improvements and advancements in
technology or the related business subject. Training is provided to improve the
knowledge, skill and capability of the employee.

Q2. What are the major hindrances that one encounters while carrying out manpower
planning? Answer: Hindrances in Manpower Planning The major hindrances in manpower
planning are as follows: Non Optimal Utilization of Manpower The biggest obstacle
for manpower planning is the fact that organizations cannot optimally use their
manpower once manpower planning begins. During manpower planning, the number of
resources required for a job is decided based on the total work load, the process
to be followed and the criticality of the job. Once the analysis is done, it is
decided that one
MBA Semester III

MU0010

person can only handle a certain portion of the workload and hence for any
additional workload, additional resources need to be hired proportionately. Over a
period of time, the total workload may change, the processes may change, the
criticality of the job may change and new technological innovations may make the
job far easier to accomplish. However when the same employees are asked to step up
the productivity, they resist accepting any additional workload and resist even
deployment of new technology, hence making it hard for the management to maximize
the use of their manpower. This makes the organizational processes ineffective or
inefficient and hence the organization as a whole becomes ineffective or
inefficient and loses out to competition which may be able to remain lean in terms
of number of resources and highly effective and efficient. Absenteeism Every
organization has witnessed an increase in absenteeism. This has lead to errors
creeping in the manpower planning exercise. If the plan stated that 4 employees are
required to manage the total workload, increased degree of absenteeism leads to the
partial failure of the manpower planning exercise. Lack of Employable Labor People
are not employable. The slow pace of acquiring business required competencies by
people at large also result in low employee productivity. All manpower planning is
done basis a certain productivity level considered as a benchmark. And low
productivity has negative implications for manpower planning. Modern Manpower
Control and Review Processes  Any increase in manpower is to be approved by the
top most levels of the management today.  Manpower budgets created on the basis of
manpower planning act as control mechanisms to keep the manpower cost and headcount
under certain defined limits.  Usually the productivity of any organization is
calculated using the formula: Productivity = Output / Input.  Example: 5 products
are sold during the day/ 8 hours of effort put in during the day. i.e., the sales
productivity of the employee is 5 products per day.  But a rough guide of employee
productivity used today is: Employee Productivity = Total Production / Total no. of
employees  Example: 50 products are sold during the day/12 employees were
responsible for selling 50 products during the day. i.e., the sales productivity of
each employee is 4.17 products per day.  The rate of manpower turnover, exit
interviews and absenteeism are sources of measuring dissatisfaction level of
manpower. To eliminate employee dissatisfaction and to ensure better utilization of
resources a study of the reasons causing the dissatisfaction level is required. 
Overtime is paid to employees due to real shortage of manpower, inefficient
management or improper utilization of manpower. Manpower planning requires a study
of the overtime statistics.  The current pace at which business is done today is
very fast. Many organizations
MBA Semester III

MU0010

either do not have data or are overwhelmed with data. Non availability and non
utilization of the data are also reasons for complicating the situation. In some
organization even the existing technologies available for manpower planning are not
optimally used. This also creates obstacles in manpower planning. Example: Business
Scenario for Obstacles in Manpower Planning (Lack of employable labor) The entire
BPO industry is suffering with this scenario of lack of employable labor. In a
dynamic business scenario, manpower planning is critical to organizational growth
and stability. It is integral to recruiting, retaining, retraining and redeployment
of talent. Linked to business needs of the organization, the process of manpower
planning is much more complicated than it seems. Manpower planning involves
developing skills and competencies of existing employees to meet market demands
which can change with time. Manpower planning also requires having a contingent
plan in place in case of any eventuality (talent shortage). Out of every 100
candidates interviewed only 10 of them are employable. Majority of them are
unemployable by the BPO industry. It’s a known fact in the BPO industry. The
manpower planning exercise requires BPO companies to budget for travel to the
interiors of the state, travel to other states. It also needs to budget for
providing new joiners with relocation allowance. It has to make provision for some
joining bonuses as well when the hiring by all companies was at its peak. It
decided to lower the level of hiring and spend additional time on training
candidates. It needed to engage external organizations to evaluate the voice and
accent capability or the potential of the candidate in order to validate its own
findings with that of an independent agency, so that no potential candidate was
rejected and no candidate who was not trainable was hired. The manpower planning
required inclusion of non standard practices to ensure that the hiring targets were
met so as to ensure that migration of client business processes from other
countries to India was as per committed timelines. In fact some of the BPO’s in
India also have operations in countries like Philippines. Due to the inability of
the India BPOs to hire in some cases, work is split up between India and
Philippines.

Q3. Describe the different types of selection interviews. Answer: Selection

Interviews An interview is an interaction between the candidate, the hiring manager
and the HR representative. This interaction is for the sole purpose of evaluating
the job knowledge, skills, talent, motivation-level, attitude, competencies and
experience of the candidate. There are different kinds of interviews that are
conducted to evaluate the candidate.
MBA Semester III

MU0010

1. Unstructured Interviews In unstructured interviews, the interviewer may not have

a standard list of questions to ask or evaluate the candidate. The interviewer may
ask questions based on his or her experience and on the areas that he or she finds
appropriate to ask. In this process different questions may be asked to different
applicants. 2. Situational Interview In this type of interviews, candidates are
asked what actions they would take in different jobrelated situations. The job-
related situations are usually identified using the job analysis technique. The
interviews are then scored using a scoring guideline prepared by job experts. In
this type of interview we ask the candidate what action they would take in the
future. 3. Behavior Description Interviews This type of interview is focused on
asking candidates questions about their past behavior in different situations that
they might have encountered. These situations may be similar to the situations that
they might experience in the new role for which they are being evaluated. Again the
interviews are then scored using a scoring guideline prepared by job experts. The
logic here is that no person has two different personalities. The behaviors they
have demonstrated in the past are the behaviors they are likely to demonstrate in
the future. 4. Comprehensive Structured Interviews Questions are asked on how the
candidate would handle job-related situations, what the level of job knowledge the
candidate possesses is and how the candidate would perform in different job
situations, sometimes in a simulated environment. These are standard questions, if
there are 2 interviewers, the areas on which they will ask questions are planned
earlier. The focus is to evaluate the tacit knowledge apart from the explicit
knowledge. The focus is also to evaluate the practical intelligence the person is
able to demonstrate with respect to the job or the situation. 5. Structured
Behavioral Interview In this interview type, all interviewees are asked
standardized questions on how they handled past situations that were similar to
situations they may encounter on the job in future. Probing questions may be asked
by the interviewer for further details. The interviewer carefully assesses the
interviewee’s behavior in the situation and the outcome of the situation. Scoring
is based on a predefined rating scales based on behaviors. 6. Chronological
Interviews In these interviews all the time is accounted for from your childhood to
date. This type of interview is conducted on the basis of the CV or bio-data. The
benefit is that if a candidate has not accounted for sometime on their CV or bio-
data then questions are asked to explain what the candidate did during such a
period and why was the time period not reflected in the CV or bio-data. Sometimes
it reveals a side of the individual that the interviewer may not usually find. 7.
Competency Based Interviews Competencies are the abilities that a person has based
on his/her knowledge levels, skill
MBA Semester III

MU0010

levels, behavior and attitude. The competencies required are listed on the job
description in detail. Assessments may be conducted to identify the true competency
level and interviews are conducted to identify the true competency level of the
candidate. For example, a company may require a data entry operator with a
proficiency level 5 on Microsoft word. This may be evaluated initially by
conducting a competency based test followed by an interview to truly assess the
competency level on Microsoft word. 8. Technical Interviews In IT jobs or other
technical jobs, the interview process involves a technical interview round. In this
subject matter expert on the technical subject interviews the candidate to evaluate
his/her technical abilities to perform the job.

Q4. What benefits does an organization get out by setting up an academy? Setting up
an Academy Answer: Organizations set up training academies where they provide a
training course with/without certification in the area of their specialization to
fresher candidates. Sometimes candidates with lesser experience are also
considered. The candidates are charged fees for this course and are hired on
successful completion of the course. The setting up of the academy involves
answering the below mentioned questions:  Why set up an academy?  Who will do the
training?  Where will the training be conducted?  How will it be conducted?
Benefits of setting up a Training Academy By setting up an academy, an organization
can get following benefits:  Reduced Hiring Costs – As lesser number of employees
will be hired by using consultants and more number of students will be hired from
the training academy, the hiring cost is reduced. Also the organization generates
revenue on every candidate trained.  Reduced Training Cost – During the training
period the candidates are not paid salary, so the cost of salaries paid during the
training period is saved. The cost of salaries is a big component of training
costs. For a BPO offering an average salary of INR 10,000 per month and a training
duration of 2 months. Salary costs are INR 20,000 per employee during training. It
may have hired 1000 employees last year and trained them and borne the cost of 2
Crores towards salaries during training. But by setting up an academy it saves on 2
crores in terms of salary costs.  Reduced Training Period – Train to Hire process
completely concentrates on training the new candidates, only the selected
candidates are paid at the end of the training. As a large chunk of the training is
conducted by the academy, the training period of the company reduces substantially.
Their go-live time is the shortest.  Improved Bench Strength – The organization
has ready replacements available in case of employee turnover or any additional
manpower required for expansion. The
MBA Semester III

MU0010

academy always has excess people than what the organization requires. This gives
the organization the flexibility to backfill at short notice and expands the
business in the shortest possible time. The candidates ready in waiting to join the
organization is called the bench strength.  Now let us discuss the ‘Who’ and
‘Where’ part of the questions asked earlier. ‘Academy’ is the centre where the
training would take place. The organization has to first decide whether the
training will be conducted by the in-house trainers or it will be outsourced to
vendors who have expertise in the required training subject. Once this is decided,
the organization identifies a place for the Training Academy where the training
would take place. Training Academy is either situated in the existing part of the
organization’s premises or a low cost area where the cost of land is relatively
cheap. Organizations set up the Training Academy in the existing premises because
it saves them any additional cost and makes it easier to make resources available
to the candidates. Sometimes, the organization is reluctant to use its office space
to avoid any administrative issues, maintain safety, and avoid information leakage
about their products or schemes etc. These issues may arise due to having
candidates inside the premise, who are yet not the organization’s employees.
Therefore, the Training Academy is set up outside the company premises. Other
reasons for different premises are:  Not enough space in the company premises 
Organization reluctant to have the Academy in their premises  Training outsourced
to a vendor When the academy is to be set up in another location, then a low cost
area is identified where the cost of land is relatively cheap. When the Train to
Hire process is outsourced – fully or partly to a vendor, the centre could be
provided or arranged for by the vendor. This saves the organization any
administrative burdens. The other reason could be that the organization is looking
at the academy as a separate business venture.

Q5. Describe the major approaches of talent development. Answer: Approaches to

Talent Development If we take a closer look at the practice of leadership
development and the importance which global companies attach to it, we’ll find that
there is a huge array of effective approaches and programs that are taken by the
globally renowned companies. Over five hundred companies have taken part in this
research. Every company completed an exhaustive questionnaire, which was analyzed
and compared to other companies by the researchers. Research reveals that the
approaches can be jotted down as bellow: Strategy – What successful organizations
do is a close examination of the programs and interventions needed to realize their
company’s strategies, since there is a clear link between the strategy of the
company and the strategy of leadership development. Involvement – Talent
development is paramount importance to the organization, and top
MBA Semester III

MU0010

management is also actively involved in the development of future management. The

managers also engage themselves frequently in active mentoring, coaching or
training, and also share their own experiences with workers. Often the CEO plays a
prominent, active role in training or action learning. Ongoing Processes – The
companies always give a thought about the ongoing, and recurring developmental
processes instead of one-time initiatives. Undoubtedly talent management has a high
priority in these organizations. A lot of attention is given towards identifying
high potentials in the organization, determination of specific career paths for
these high potentials, and coaching them. Behavior – The behavior expected from
workers in these organizations is a significant thing. This is true in all aspects
of the organization: performance management, promotion decisions, recruitment and
selection and communication from the top of the organization. Talent Pipeline –
Talent development is the most critical mission in a company among other company
processes. The best performing companies always see that the talent pipeline of the
organization is always full. Critical Objective – High potential talent present in
any organization can prove as a strategic advantage and hence much stress is given
on the development of this talent. The development of a robust talent pipeline is a
critical objective for the organization’s top management. Implementation – What
most of the companies do for distinguishing themselves from others is making talent
management a regular part of operational management. Managing talent is a task for
which all the leaders of the company are responsible within the organization. This
infrastructure is embedded in the daily leadership culture and Also, they are
responsible for continuing the implementation of talent management in the
organization managers develop the necessary competencies to be able execute talent
management effectively. Leadership Programs – Leadership programs which have high
added value for talent development are organized. Programs whose content is linked
with organizational needs are chosen. These programs are fully integrated with
other human resources processes namely, performance management, promotion policy,
training and development, reward, succession and career planning. Model for
Achieving Excellence in Talent Development Structure – Functional profiles,
competency models, and describing paths for growth are the things companies should
implement. Other than these a yearly performance management cycle with some
achievable targets should be set and incentive structures, career- and succession
planning are some things which form an integral part of the talent management
system. Selective Development – Most of the successful organizations carry on a
close examination of which are the talent programs and interventions that will be
necessary to
MBA Semester III

MU0010

realize the company strategy. Process – The total infrastructure for talent
development should be such that it is a part of the day-to-day leadership culture.
Coaching and training skills are to be developed by the managers who have an
experience to execute talent management effectively.

Q6. Mr. Aravind works at K&D Company. Recently two fellow team members were shifted
to another team and their work was handed over to him. This affected his
performance and also left him dissatisfied. Finally, he forwarded his resignation
letter to the HR Department. The HR Manager decided to conduct an exit interview
with Mr. Aravind. What questions do you think that the HR manager would want to ask
Mr.Aravind? Answer: Possible Exit Interview Questions  Tell me about how you
decided to leave the organization?  What could have been done early on to prevent
this situation developing or lend a basis for you to stay with us?  How do you
feel about this organization?  What extra responsibility or position would you
have welcomed that you were not given?  How could the organization have enabled
you to make fuller use of your competency and potential?  What training would you
have liked or required that you did not get, and what effect did this have?  How
well do think your training and development requirements were evaluated and met? 
What do you say about communications within the organization and your department? 
What changes would you make towards the environment or “feel” of the organization?
 What changes or improvement could be made to the way that you were inducted for
your role?  What will you say about the way your performance was measured, and the
feedback given for your performance results?  What will you say about how you were
motivated, and how that can be improved?  Can you provide any unreasonable
examples of policy, rules or instructions you have encountered here?  What
particularly is it about the other organization that makes you want to join them? 
What are they offering that we are not?  (If appropriate) Can you be persuaded to
renegotiate or discuss the possibility of staying?  A proper closure in the exit
interview, for both the organization and departing employee encourages positive and
professional ties between the two.
MBA Semester III MU0011 –Management and Organizational Development Assignment Set-
1

MU0011

Q1. State the characteristics of organizational culture. There are seven primary
characteristics that every organization should cultivate in it. Let us look at each
of them in detail. 1. Outcome Orientation There are some organizations which pay
more importance to results rather than processes. The business model of any
business is one which decides whether thrust should be on the outcome or on the
processes. This defines the outcome orientation of the business. 2. Innovation and
Risk Taking Risk and returns are two things which always go hand in hand. It often
happens that when you calculated risk somewhere, the chances of returns are higher.
Same goes for innovation. You could either be a follower or a pioneer. Though
pioneering brings risk with it, but at times it can also have a breakthrough
outcome for the organization. Therefore innovation and risk taking are one of the
main characteristics of organizational culture. 3. People Orientation How much
should the management focus on the people? Some organizations are famous for being
employee oriented as they focus more on creating a better work environment for the
employees while others treat employees no better than work machines. 4.
Aggressiveness When there is a fierce competition, only then aggressiveness is
visible among the employees of an organization. For example, companies like Apple
are known for their aggression and market dominating strategies. 5. Attention to
Detail The degree of attention of the employees to work is the key to the success
of any business. Attention to detail defines the amount of importance a company
allots to accuracy and details in the workplace. The management defines the degree
of attention to be given to details. 6. Stability Organizations that have to deal
with stabilizing operations and other needs are more focused on making themselves
and their operations stable. The managements of these organizations are more
inclined to ensuring stability of the company rather than looking at indiscriminate
growth. 7. Team Orientation Quite often, the nature of business also requires an
organization to be team oriented. Synergistic teams help give better results as
compared to individual efforts. So, they lay more emphasis on synergy between
different teams and in forming a well balanced team for
MBA Semester III

MU0011

producing effective output.

Q2. Explain the life cycle of resistance to organizational change in detail.

Answer: Resistance to Change Adopting new innovations or new ideas and techniques
involves altering human behavior, and the acceptance of change. There is a natural
resistance to change for several reasons. The reasons are as follows: People Resist
change:  When the change threatens to modify established patterns of working
relationships between people.  When communication about the change–timetables,
personnel, monies, etc. – has not been sufficient.  When the benefits and rewards
for making the change are not seen as adequate for the trouble involved.  When the
change threatens jobs, power or status in an organization.  When the reason for
the change is unclear. When there is ambiguity, whether it is about costs,
equipment, jobs, it can trigger negative reactions among users.  When the proposed
users have not been consulted about the change, and it is offered to them as an
accomplished fact. People like to know what’s going on, especially if their jobs
may be affected. Informed workers tend to have higher levels of job satisfaction
than uninformed workers. On the other hand, if the innovation is introduced
gradually so that people can adjust to the resulting then decision makers are more
responsive to changes:  If the innovation requires marginal rather than major
changes in their views or lives.  If they have a demonstrated need for the
innovation.  If the information presented coincides with their current values,
beliefs, and attitudes  If they perceive that the change will benefit them more
than it will cost them. 1. Factors in Resistance to Change People tend to evaluate
the effect of change individually but they express it through group in collective
form. Therefore, the reasons underlying resistance to change may be identified at
these two levels: Individual Resistance There are many factors operating at the
individual level which are responsible for resistance. Degree of force in
resistance depends on how people feel about change. These feeling may be based
either on reality or there may be emotional feeling towards the change. These
feelings, either real or emotional, may be seen in the context of three types of
factors: economic, psychological and social. Economic Factors People feel attached
to the organization for satisfying their needs and economic needs-
MBA Semester III

MU0011

physiological, job security etc. precede over other needs. People may perceive that
they will be adversely affected by the change in terms of their needs satisfaction
in the following ways: 1. Skill Obsolescence: A change is generally meant for
better methods of working which may involve new techniques, technology, etc.,
whenever people sense that new machinery (change) poses a threat of replacing or
degrading them, they simply resist such a change. When computer was introduced in
the business sector in India, it attracted a lot of resistance because of this
reason. 2. Fear of Economic Loss: A change may create fear of economic loss in the
sense that it may affect economic compensation adversely, reduce job options, and
turn into technological unemployment. This feeling is created because people feel
that those who can match the new requirements will be better off than those who
cannot match. 3. Reduced Opportunities for Incentives: Employees are generally
offered incentives linked to their output in the form of incentive schemes, bonus,
etc. All these are wellestablished in the old system. Whenever there is change,
people may feel that in the new system, they will have lower opportunity to earn
incentives and bonus as the new system requires additional skills. Psychological
Factors Psychological factors are based on people’s emotions, sentiments and
attitudes towards change. These are qualitative and, therefore, may be logical from
people’s point of view but may be illogical from the change agent’s point of view.
Major psychological factors responsible for resistance are: ego defensiveness,
status quo, lack of trust in change agent, low tolerance for change, and fear of
unknown. Ego Defensiveness: A change may affect the ego of the people affected by
the change and in order to defend their ego, people resist change. A change in
itself suggests that everything is not right at a particular level. Thus, the
change may be perceived as an instrument for exposing the weakness of the people.
Status Quo: People want status quo i.e. they do not want any disturbance in their
existing equilibrium of life and work pattern. The change initiated by the
organization disturbs such equilibrium and people have to obtain another
equilibrium which is a painful exercise. Therefore, everyone tries to avoid it. Low
Tolerance for Change: In the context of maintaining status quo, people may differ.
Some people have very low level of tolerance for change and ambiguity as compared
to others. Therefore, these people resist any new idea. Lack of Trust in Change
Agent: The effect of change is perceived in the context of change agent, that is,
the person who initiates change. If people have low degree of confidence in the
change agent, they show resistance to change efforts. This is the reason why labor
union resists changes initiated by management because of the feeling that labor and
management are two different interest groups in the organization.
MBA Semester III

MU0011

Fear of Unknown: A change may be perceived as entering into unchartered area which
is unknown. The change will bring results in future, which is always uncertain.
This lack of certainty creates anxiety and stress in the minds of people and they
want to avoid it. The lack of adequate information about the likely impact of
change further complicates the problems. Social Factors People derive need
satisfaction, particularly social needs, through their mutual compatible
interactions. They form their own social groups at the work place for the
satisfaction of their social needs. To the extent the satisfaction of these needs
is affected by a change, people resist it. The major factors causing resistance to
change are: desire to retain existing social interaction and feeling of outside
interference. Desire to Maintain Existing Social Interaction: People desire to
maintain existing social interaction since it is a satisfying one. When there is
any change, their existing social interactions are likely to be changed, which
people do not want. Therefore, they resist change. Feeling of Outside Interference:
A change brought about by the change agent is considered to be interference in the
working of people. This phenomenon is heightened if the change agent belongs to
another social class, e.g., change initiated by managers affecting workers. The
latter my feel that managers try to make workers an instrument for higher
productivity but the outcome of this productivity will be retained by them. 2.
Organizational Resistance to Change Not only individuals and groups within an
organization resist change, even the organization itself resists many changes
because of certain reasons. Many organizations are designed to be innovation-
resisting. Many powerful organizations of the past have failed to change and they
have developed into routines This statement suggests that organizations tend to
stabilize at a particular level and if the change efforts are not brought, these
organizations start falling. The major reasons for organizational failure to change
are: counting past successes, stability of systems, resource limitations, sunk
cost, and inter-organizational agreement. Some of these reasons are basic while
others are by-products of those. For example, first two reasons are basic and
others are by-products of the first two. Counting Past Successes: A major problem
before the organizations which have past success stories is how to face challenges
of the changing environment. Since these organizations have achieved success by
following a particular set of management practices, they become too rigid to change
and they hide their failure to change in the guise of past successes. This is the
reason why many old industrial houses are languishing far behind and their places
are being taken away by newer organizations. · Stability of Systems: The
organization may design a system through which it may derive many benefits. The
system is stabilized and any change may be perceived as a threat by the
organization itself. For example, a bureaucratic organization has certain fixed
rules, prescribes rigid authority relationships, and institutes reward and
punishment system. All
MBA Semester III

MU0011

these work in some circumstances. It a change is required in these aspects, the

organization may not bring it easily because it is accustomed to a particular
system. · Resource Limitations: No doubt, an organization has to adapt to its
environment but the adaptation has its own cost. If the organization is not fully
equipped for meeting such demands, it may not be possible for the organization to
bring necessary change. For example, if new technology is adopted, it will require
resources to procure machine, building and training for its personnel, and
commensurate expenses on other items also. · Sunk Cost: Most of the organizations
have sunk cost involved in various assets. Once the assets are acquired, these can
be used for specific period. Now, if the change is required, what will happen to
these assets? Naturally, the organization will like to make a comparison between
the outcomes of changed program and continuing with old program in the light of
this sunk cost. Sunk cost cannot be only in terms of various physical things. This
can be in the form of people also. It an individual is not making commensurate
contribution, it is not necessary that his services are done away with. In such a
case, organization has to pay for his services though these may not be as useful.
3. Causes for Resistance to Change Resistance to change doesn’t necessarily surface
in standardized ways. Resistance can be overt, implicit, immediate, or deferred. It
is easiest for management to deal with resistance when it is overt and immediate.
For instance, a change is proposed and employees quickly respond by voicing
complaints, engaging in a work showdown, threatening to go on strike, or the like.
Let’s look at the sources of resistance. For analytical purpose, we’ve categorized
them by individual and organizational sources. Habit: As human beings, we’re
creatures of habit. Life is complex enough; we don’t need to consider the full
range of options for the hundreds of decisions we have to make every day. To cope
with this complexity, we all rely on habits, or programmed responses. When we are
confronted with change, this tendency to respond in our accustomed ways becomes a
source of resistance. So when your department is moved to a new office building
across town, it means you’re likely to have to change many habits: waking up 10
minutes earlier, taking a new set of streets to work, finding a new parking place,
adjusting to the new office layout, developing a new lunchtime routine, and so on.
Security: People who have a high need for security are likely to resist change
because it threatens their feeling of safety. When Boeing announces its laying off
10,000 people or Ford introduces new robotic equipment, many employees at these
firms may fear that their jobs are in jeopardy. Economic Factors: Another source of
individual resistance is concern that changes will lower one’s income. Changes in
job tasks or established work routines also can arouse economic fear if people are
concerned they won’t be able to perform the new tasks or routines to their previous
standards, especially when pay is closely tied to productivity. Fear of the
Unknown: Change substitute ambiguity and uncertainty for the known. And people in
general don’t like the unknown. The same applies to employee. If for example, the
introduction of a quality management program requires that production workers learn
statistical process control techniques, some may fear they’ll be unable to do so.
They may, therefore, develop a negative attitude towards quality management or
behave dysfunctional
MBA Semester III

MU0011

if required to use statistical techniques.

Q3. What are the three levels of work groups? Answer: Three Levels of Work Groups
These levels are defined based on functionality. They are: Level 1: Dependent-Level
Work Groups Dependent-level work groups are considered as the most traditional work
unit. It has a supervisor who plays the role of a boss. Almost everyone has
experience with this work group, especially in their first job. In this work group
each person is assigned a job and is closely supervised by a boss. The boss is in
charge and tells the do’s and don’ts in their jobs. The boss approves if one can
help another. Boss or supervisor does most of the problem solving, work assignment
and decision making. This work group performs well only in short term. It is
uncommon to see the work group creating improvements, increasing productivity or
leveraging resources to support one another. Level 2: Independent-Level Work Groups
Most businesses use this type of work group. Each person is responsible for their
own main area. The manager here does not function like a controlling boss. Staff
members work on assigned jobs with minimal supervision. Examples: Sales
representatives, research scientists, accountants, lawyers, police officers,
librarians, and teachers. People come together in one department because they serve
a common overall function but almost everyone in the group works fairly
independently. Level 3: Interdependent-Level Work Groups In this work group people
need to rely on each other to get the work done. At times members of this work
group have their own roles and at other times they share other responsibilities.
But in either of the cases, they have to coordinate with one another in order to
produce a final product or outcome. We can only expect to have a team if this
interdependence exists.

Q4. What are the goals of sensitivity training? Answer: Goals of Sensitivity
Training i) Teaching effective work practices Sensitivity training was designed as
a method to teach more effective work practices within groups. Three important
elements of sensitivity training are providing immediate feedback, here-and-now
orientation and focusing on the group process. It is believed that the number of
fixed reactions that occur toward others can be decreased and greater social
sensitivity can be achieved. Therefore people stop taking die-hard positions with
regards to situations and people. Sensitivity training focuses on being sensitive
and aware of feelings of others.
MBA Semester III

MU0011

This enables one to be supportive of the individual instead of being provocative or

offensive. ii) Putting emphasis on personal relationships A branch of sensitivity
training places emphasis on personal relationships and remarks. Before training
commences participants decide whether the training will focus on group
relationships or personal growth. Most individuals who volunteer to participate
seek more personal growth and interpersonal effectiveness. Those who represent a
company, community service program, or some other organization are more likely
ready to improve their functioning within a group and/or the organization
sponsoring the activity. iii) Revealing information about oneself and others
Sharing ones’ perceptions of everyone else present by each member of the group is a
part of sensitivity training. Therefore everyone gets to know other perceptions
about them individually. The facilitator attempts to clarify the group processes
using incidents as examples to clarify general points or provide feedback. The
group action, overall, is the goal as well as the process.

Q5. Suppose a cement industry wants to form a Quality Circle. What would be the
criteria that you would set to form it? What are the benefits that you see in
forming a quality circle? Answer: Quality Circles Quality Circle is a small
volunteer group of six to twelve employees doing similar kind of work. They
voluntarily meet together on a regular basis to carry out frequent checks in their
respective work areas for improvements. They use certain proven techniques for
analyzing and solving work related problems coming in the way of achieving and
sustaining excellence so that they can bring about a mutual upliftment of employees
as well as the organization. So basically a volunteer group is composed of workers,
under the leadership of their supervisor who are trained to identify, analyze and
solve work-related problems are collectively called Quality circle. They present
their solutions to management for the improvement of organizational performance.
Tue quality circles become self-managing after gaining management confidence. If
anything could battle the dehumanizing concept of division of labor, it is Quality
circle. It has brought back the concept of craftsmanship, which doesn’t work well
on an individual basis because it is uneconomic, but it proves a boon when used in
group form. The prime motto of QC is improving occupational safety and health,
improving product design, and improvement in the workplace and manufacturing
processes. 1. Key Features of Quality Circle: · They are formal groups. · They hold
meetings at least once a week on company time and are trained by competent persons
who may be personnel and industrial relations specialists. · Quality circles are
generally free to select any topic they wish, but they cannot select salary related
topics or other topics related to terms and conditions of work, because these
issues
MBA Semester III

MU0011

are dealt with via other channels. 2. The Concept The concept of Quality Circle
primarily focuses on a worker’s value recognition as a human being, as someone who
willingly takes on his job, his wisdom, intelligence, experience, attitude and
feelings. It is just another part of human resource management considered as one of
the key factors in the improvement of product quality & productivity. Quality
Circle concept has three major attributes:    Quality Circle is a human resource
development technique. Quality Circle is a problem solving technique. Quality
Circle is a form of participation management.

3. Objective of QC There multi-faced objectives of Quality Circles: · Change in

Attitude. · Self Development · Development of Team Spirit · Improved Organizational
Culture Benefits of Quality Circles The quality control concept did not get an easy
acceptance in India. It took two decades to get acceptance in India, after its
introduction in Japan. The reason might be differences in the industrial context in
the two countries. Japan needed it for its survival in a competitive market. India
had a reasonably protected, sellers market, with consequent lethargy towards
efforts to improve quality and productivity. However, with the policy of
liberalization of economy and privatization of infrastructure development, contexts
changed. The concept now needs to be looked upon as a necessity because it benefits
in the following ways: Team Work: It helps to eradicate inter-team conflicts and
clashes and enhance the concept of team spirit. • Positive Attitude: Employees
start working with a positive attitude towards work, assuming it as their own work.
They develop a “Can Do” and “I care” attitude. • Personality advancement: Quality
circle practice helps to learn new skills and also br ings out the hidden potential
of employees. • Positive working environment: It improves the organizational
working environment and involves employees in every process, right from a small
decision to a big deal. • Increased productivity: It helps in increasing overall
productivity of organization by improvement of work processes and reduction of
excessive costs. They increase operational efficiency, improve quality, and promote
innovation.
MBA Semester III

MU0011

Q6. What is the role of power and politics in the practice of OD? Answer: Role of
Power and Politics in the practice of OD Virtually, all OD interventions promote
problem-solving, not politics, as a preferred way to get things accomplished. OD
interventions increase problem-solving, collaboration, cooperation, fact-finding,
and effective pursuit of goals while decreasing reliance on the negative faces of
power and politics. We know of no OD interventions designed to increase coercion or
unilateral power. For example, OD interventions typically generate valid, public
data about the organization’s culture, processes, strengths, and weaknesses. Valid,
public data are indispensable-for problem solving but anathema for organizational
politics. OD interventions do not deny or attempt to abolish the reality of power
in organizations; rather, they enhance the positive face of power, thereby making
the negative face of power less prevalent and/or necessary. Not only is
organization development not a power/political intervention strategy, it is instead
a rational problem-solving approach that is incompatible with extreme power-
oriented situations. The values of Organizational Development are consistent with
the positive face of power, but not with the negative face of power. Values such as
trust, openness, collaboration, individual dignity, and promoting individual and
organizational competence are part of the foundation of organization development.
These values are congruent with rational problem solving and incongruent with
extremely political modes of operating. "Power equalization" has long been
described as one of the values of organization development. Emphasis on power
equalization stems from two beliefs: first, problem solving is usually superior to
power coercion as a way to find solutions to problematic situations; second, power
equalization, being one aspect of the positive face of power, increases the amount
of power available to organization members, and by so doing adds power to the
organization. An OD practitioner’s role is limited to that of a facilitator,
catalyst, problem solver, and educator. The practitioner is not a political
activist or power broker. The practitioner works to strengthen skills and knowledge
in the organization. But organization members are free to accept or reject the
practitioner, his or her program, and his or her values, methods, and expertise.
The OD consultant, like all consultants, provides a service that the organization
is free to "buy" or "not buy." The facilitator or educator role is incompatible
with a political activist role because cooperation requires one set of behaviors
and competition requires a different set of behaviors. Cobb and Margulies caution
that OD practitioners can get into trouble if they move from a facilitator role to
a political role. OD values are consistent with the positive face of power, but not
with the negative face of power. Values such as trust, openness, collaboration,
individual dignity, and promoting individual and organizational competence are part
of the foundation of organization development. These values are congruent with
rational problem solving and incongruent with extremely political modes of
operating. "Power equalization" has long been described as one of the values of
organization development. Emphasis on power equalization stems from two beliefs:
first, problem solving is usually superior to power coercion as a way to find
solutions to problematic situations; second, power equalization, being one aspect
of the positive face of power, increases the amount of power available to
organization members, and by so doing adds power to the organization.
MBA Semester III MU0011 –Management and Organizational Development Assignment Set-
2 Q1. Distinguish between management and administration.

MU0011

Answer: Administration and Management According to Theo Haimann, “Administration

means overall determination of policies, setting of major objectives, the
identification of general purposes and laying down of broad programs and projects”.
It refers to the activities of higher level. Administration lays down the basic
principles of the organization. According to Newman, “Administration means
guidance, leadership & control of the efforts of the groups towards some common
goals”. Management involves conceiving, initiating and bringing together the
various elements; coordinating, actuating, integrating the diverse organizational
components while sustaining the viability of the organization towards some pre-
determined goals. In other words, it is an art of getting things done through &
with people assigned to formally organized teams. Management and administration
differences can be categorized on the basis of functions and on the basis of
usage / applicability. On the Basis of Functions: Table 1.

On the Basis of Usage:

MBA Semester III

MU0011

Basically there is no difference between management & administration. Every manager

is concerned with both administrative management function and operative management
function as shown in the figure below. However, managers higher up in the hierarchy
spend more time on administrative function & the lower level spend more time on
directing and controlling worker’s performance i.e. management.

Fig. : Degree of Administration and Management

Q2. What are the characteristics of organizational development? Answer:

Characteristics of Organization Development There are seven characteristics of
organization development. They are: Humanistic Values: Positive beliefs about the
potential of employees (according to McGregor’s Theory Y). Systems Orientation: All
parts of the organization i.e., the organization structure, technology deployed,
and people employed must be able to work together as a system to create a valuable
organization. Experiential Learning: Learning best happens when the learner
experiences. In the training environment focus should be on simulating the human
problems encountered in real life work scenarios. Training should NOT be all theory
and lecture. Problem Solving: Problems are identified, data is gathered, corrective
action is taken, progress is assessed, and adjustments in the problem solving
process are made as needed. This process is known as Action Research. Contingency
Orientation: Actions are selected and adapted to fit the need. Always have a few
more back up plans because if something may go wrong. Change Agent: Stimulate,
facilitate, and coordinate change. OD motivates everyone to see
MBA Semester III

MU0011

the benefits of change. Levels of Interventions: Problems can occur at one or more
level in the organization so the strategy will require one or more interventions.
There is no quick fix standard solution to any problem. Each situation is different
and hence the treatment needs to be customized.

Q3. Explain team building interventions. Answer: Team Building Interventions Let us
understand what Team building interventions imply. It can be defined as a process
of getting either a new or poor performing group on track. Let us have a look at
the possible examples of a team building intervention. There are lots and they can
be well categorized within two extremes of ‘fun’ and ‘developmental’. At the ‘fun’
end, there are the icebreakers, ropes courses, camping trips, etc which are
generally used to bond together new teams or revive an already established team. At
the "developmental" end, there are workshops and intensive team-building exercises
that are all goal-specific and typically suited to a group of professionals already
focused on addressing certain issues. 1. Stages of Team Development What can be
expected out of team building is an evident question and for that it is prudent to
explore a few team building models. Though the models vary from each other, they
usually agree on two basic pretexts. First, that there are quite a number of
predictable stages that every team has to go through for becoming a highly
productive and efficient team, and second is that leaders and team members who are
already aware of these stages can work towards improving the quality of their
team’s interactions during each stage. Bruce Tiuckman proposed an easy to remember
model which designates four stages of team development. I) Stage 1 – Forming The
members of a team are quite uncertain when the team first gets together. So people
try to explore and dabble something. During the forming period everyone tries their
best to look ahead and think about all the things that need to be done. Leader must
set the focus. II) Stage 2 – Storming Under the pressures of work and other
conflicting perspectives, the process inevitable begins to heat up. Even patient
and impatient people clash. Trust is tested, and confusions around goals and roles
begin to surface. Under heavy deadlines, this stage can be quite tense. III) Stage
3 – Norming As people slowly get comfortable and get to know each other better,
they reconcile and agree on certain things like decision-making processes,
resources, timing, and quality standards. A "norm" is usually defined as something
which everyone understands. Norms are the formal and informal rules that make up
the operating system of productive work.
MBA Semester III

MU0011

IV) Stage 4 – Performing This is the final stage of team development and it
involves using all the experience and understanding with each other to get results
for each other and the organization. 2.Goals of Team Building Interventions Goals
of team building interventions are listed as below: · Effectiveness of a group
should be increased by allowing the members of the group to work together to
achieve any result. · The work unit should be engaged in a continuous process of
self-examination · Providing an opportunity to the group to analyze its
functioning, performance, strengths, and weaknesses · Identifying the areas of
problem for team members and taking corrective measures for the same. · Developing
a model of team effectiveness specifically designed to help the work unit.

Q4. What are the major types of changes in an organization? Answer: Types of Change
Types of organization changes vary from planned versus unplanned to organization-
wide versus change primarily to one part of the organization to incremental versus
transformational, etc. Knowing which types of change you are doing helps all
participants to retain scope and perspective during the many complexities and
frequent frustrations during change.

The major types of changes in an organization are listed below: I) Organization-

wide Versus Subsystem Change Organization-wide change includes major restructuring,
collaboration or rightsizing. When organization need to evolve to a different level
in their life cycle, for example, going from a highly reactive, entrepreneurial
organization to one that has a more stable and planned development, then is the
time when they should switch to organization-wide changes. Experts assert that
successful organizational change requires a change in culture – cultural change is
another example of organization-wide change. Addition or removal of a product or
service, reorganization of a certain department, or implementation of a new process
to deliver products or services is examples of these kinds of changes. II)
Transformational Versus Incremental Change Changing an Organization’s structure and
culture from the traditional top-down, hierarchical structure to a large amount of
self-directing teams are examples that form transformational changes. Examples of
incremental change might include continuous improvement as a quality management
process or implementation of new computer system to increase efficiencies. Many
times, organizations experience incremental change and its leaders do not recognize
MBA Semester III

MU0011

the change as such. III) Unplanned Versus Planned Change A sudden, major surprise
to the organization, which causes its members to respond in a highly reactive and
disorganized fashion usually, causes an unplanned change. As the name suggests, in
an unplanned change nothing happens in a planned way or in order. Examples of such
change are when the Chief Executive Officer suddenly leaves the organization,
significant public relations problems occur, poor product performance quickly
results in loss of customers, or other disruptive situations arise. Planned change
occurs when leaders in the organization recognize the need for a major change and
proactively organize a plan to accomplish the change. Planned change occurs with
successful implementation of a Strategic Plan, plan for reorganization, or other
implementation of a change of this magnitude. Note that planned change, even though
based on a proactive and well-done plan, often does not occur in a highly organized
fashion. Instead, planned change tends to occur in more of a chaotic and disruptive
fashion than expected by participants. IV) Remedial Versus Developmental Change
Remedial changes are changes that can bring remedy to current organizational
situations. Improving the poor performance of a product or the entire organization,
reduce burnout in the workplace, help the organization to become much more
proactive and less reactive, or address large budget deficits. So these form
examples of remedial changes. More focus of these projects is to solve a problem on
an urgent basis because they are addressing a current, major problem. Change can
also be developmental – to make a successful situation even more successful, for
example, expand the amount of customers served, or duplicate successful products or
services. Developmental projects can seem more general and vague than remedial,
depending on how specific goals are and how important it is for members of the
organization to achieve those goals. Some people might have different perceptions
of what is a remedial change versus a developmental change. They might see that if
developmental changes are not made soon, there will be need for remedial changes.

Q5. What are the five different types of OD practitioner styles? Answer: OD
Practitioner Styles Change begins with the intervention of practitioner in the
system to be changed. Intervention refers to the practitioner’s entry into the
client system and includes several different roles and activities. The degree of
styles is based on two dimensions: Effectiveness: Degree of emphasis on Goal
accomplishment. Morale: Degree of emphasis on relationships and participant
satisfaction.
MBA Semester III

MU0011

There are five different types of practitioner styles or roles. They are as
follows: 1. The Stabilizer style. 2. The Cheerleader Style 3. The Analyzer style.
4. The persuader style. 5. The Pathfinder style. Let’s see learn about each style
in a little detail: 1. The Stabilizer Style: The Goal of the Stabilizer style is
neither effectiveness nor participant satisfaction. The practitioner is trying to
keep from rocking the boat and maintain a low profile. The style is usually forced
upon the practitioner by organizational pressure. So the practitioner usually has
to learn to suppress and conform any other situation. 2. The Cheerleader style:
This style places emphasis on the satisfaction of the organization members and is
chiefly concerned with motivation and morale. The cheerleader style strongly
minimizes differences and maintains harmony. 3. The Analyzer style: The Analyzer
style places great emphasis on efficiency and gives little emphasis to member
satisfaction. The analyzer feels most comfortable with a rational assessment of
problems and assumes that the facts will lead to a solution. The practitioner may
be more confrontational relying on the authority to resolve conflicts and on
rational problem solving process. 4. The Persuader style: It focuses on dimensions,
effectiveness and morale, yet optimizes neither. Such a style provides a relatively
low risk strategy and avoids direct confrontation with others. 5. The Pathfinder
Style: This style seeks a high degree of member satisfaction believing that greater
effectiveness is possible when all members are involved and problem solving is done
through team work.

Q6. Suppose you are an OD practitioner. What are the challenges that you have be
prepared for while carrying out organization development? Answer: The following are
Challenges of OD for which I would be prepared while carrying out organizational
development : Meeting goals and objectives of an organization by the support and
execution of defined strategies.  Maintaining and addressing organizational
culture during implementation of the change management efforts.  Applying change
management concepts to organization and well as products or services provided. 
Enhancing productivity and profitability of an organization by effective change
management.
MBA Semester III           

MU0011

Aligning performance of individuals and teams with organizational goals and

objectives. Communicating change management objectives and processes to
participants. Motivate the workforce to implement and accept the organizational
changes Attracting and retaining employees and their talent while implementing
change management efforts. Effective usage of IT to attain organizational goals
while managing change effectively. Using IT for KM, innovation, competitive
advantage, and business strategies. Ensuring business objectives are attained by
following organizational values and ethics. Building leadership and capable
management workforce for today and future. Improving the problem solving process by
managing change. During and after implementation of change efforts, maintaining
same relationship with the business partners, customers, and vendors. Reducing the
six gaps – communication gap, cultural gap, confidence gap, skills gap, information
gap, and timing gap.
MBA Semester III MU0012 –Employee Relations Management Assignment Set- 1

MU0012

Q1. What are the different leadership styles that are adopted by managers as per
the Managerial Grid Model? Answer: Managerial Grid Model Robert Blake, an eminent
behavioural scientist differentiated the leaders on the basis of their concern to
people and concern to task. He along with Jane Mouton conducted study on 5000
managers. He puts it on a grid called Managerial Grid as follows:

Figure : Managerial Grid: Blake and Mouton Source: Debra L Nelson and James C
Quick, Organizational Behaviour Pg 397 The Managerial Grid Model (1964) is a
behavioural leadership model developed by Robert Blake and Jane Mouton. This model
identifies five different leadership styles based on the concern for people and the
concern for production. As shown in the figure, the model is represented as a grid
with concern for production as the X-axis and concern for people as the Y-axis;
each axis ranges from 1 (Low) to 9 (High). The five resulting leadership styles are
as follows: 1. The impoverished style (1, 1). The indifferent Leader (Evade &
Elude) In this style, managers have low concern for both people and production.
Managers use this style to avoid getting into trouble. The main concern for the
manager is not to be held responsible for any mistakes, which results in less
innovative decisions. A leader uses a "delegate and disappear" management style.
Since they are not committed to either task accomplishment or maintenance; they
essentially allow their team to do whatever they consider important and appropriate
and prefer to detach themselves from the team process by allowing the team to
suffer from a series of power struggles. Features 1. Does only enough to preserve
job and job seniority. 2. Gives little and enjoys little.
MBA Semester III

MU0012

3. Protects himself by not being noticed by others. Implications 1. Tries to stay

in the same post for a long time. Examples of Leader speak: “I distance myself from
taking active responsibility for results to avoid getting entangled in problems.”
“If forced, I take a passive or supportive position.” 2. The country club style (1,
9). The accommodating Leader (Yield & Comply) This style has a high concern for
people and a low concern for production. Managers using this style pay more
attention to the security and comfort of the employees, in hopes that this would
increase performance. The resulting atmosphere is usually friendly, but not
necessarily that productive. This person uses predominantly reward power to
maintain discipline and to encourage the team to accomplish its goals. Conversely,
they are almost incapable of employing the more punitive coercive and legitimate
powers. This inability results from fear that using such powers could jeopardize
relationships with the other team members. Examples of Leader speak: “I support
results that establish and reinforce harmony.” “I generate enthusiasm by focusing
on positive and pleasing aspects of work.” 3. The produce or perish style (9, 1).
The Controlling Leader (Direct & Dominate) With a high concern for production, and
a low concern for people, managers using this style find employee needs
unimportant; they provide their employees with money and expect performance back.
Managers using this style also pressure their employees through rules and
punishments to achieve the company goals. This dictatorial style is based on Theory
X of Douglas McGregor, and is commonly applied by companies on the edge of real or
perceived failure. This is used in case of crisis management. People who get this
rating are very much task-oriented and are hard on their workers (autocratic).
There is little or no allowance for co-operation or collaboration. Heavily
taskoriented people display these characteristics: they are very strong on
schedules; they expect people to do what they are told without question or debate;
when something goes wrong they tend to focus on who is to blame rather than
concentrate on exactly what is wrong and how to prevent it; they are intolerant of
what they see as dissent (it may just be someone’s creativity), so it is difficult
for their subordinates to contribute or develop. Examples of Leader speak: “I
expect results and take control by clearly stating a course of action.” “I enforce
rules that sustain high results and do not permit deviation.” 4. The middle-of-the-
road style (5, 5). The Status –Quo Leader. (Balance & Compromise) Managers using
this style try to balance between company goals and workers’ needs. By giving some
concern to both people and production, managers who use this style hope to achieve
acceptable performance. Examples of Leader speak:
MBA Semester III

MU0012

“I endorse results that are popular but caution against taking unnecessary risk.”
“I test my opinions with others involved to assure ongoing acceptability.” 5. The
team style (9, 9). The Sound / Team Leader (Contribute & Commit) In this style,
high concern is paid both to people and production. As suggested by the
propositions of Theory Y, managers choosing to use this style encourage teamwork
and commitment among employees. This method relies heavily on making employees feel
as a constructive part of the company. This type of person leads by positive
example and endeavours to foster a team environment in which all team members can
reach their highest potential, both as team members and as people. They encourage
the team to reach team goals as effectively as possible, while also working
tirelessly to strengthen the bonds among the various members. They normally form
and lead some of the most productive teams. Examples of Leader speak: “I initiate
team action in a way that invites involvement and commitment.” “I explore all facts
and alternative views to reach a shared understanding of the best solution.” Grid
Relationship Skills The Grid theory translates into practical use through Grid
style relationship skills that people experience day in and day out when they work
together. These relationship skills depict the typical and vital behaviours for
each style that make relationships effective or ineffective. Some behaviour
strengthens and motivates teams while others obstruct progress. · Critique –
Learning from experience by anticipating and examining how behaviour and actions
affect results. · Initiative – Taking action to exercise shared effort, drive, and
support for specific activities. · Inquiry – Questioning, seeking information, and
testing for understanding. · Advocacy – Expressing attitudes, opinions, ideas, and
convictions. · Decision-making – Evaluating resources, criteria, and consequences
to reach a decision. · Conflict Resolution – Confronting and working through
disagreements with others toward resolution. · Resilience – Reacting to problems,
setbacks, and failure, and understanding how these factors influence the ability to
move forward. Grid theory makes behaviours as tangible and objective as any other
corporate commodity. By studying each of the seven Leadership Grid styles and the
resulting relationship skill behaviours, teams can examine, in objective terms, how
behaviours help or hurt them. They can explore types of critique that work best for
them and why. They can openly discuss how to improve decision-making and conflict
resolution skills. These and other subjects usually considered "off limits" in
terms of productivity are the very subjects that usually impede productivity. The
Grid approach makes these subjects not only "discussable" but measurable in
objective terms that generate empathy, motivation to improve, and creativity. The
most desirable place for a leader to be along the two axes at most times would be a
9 on task and a 9 on people – the Team Leader. However, do not entirely dismiss the
other three. Certain situations might call for one of the other three to be used at
times. For example, by playing the Impoverished Leader, you allow your team to gain
self-reliance. Be an Authoritarian Leader to instil a sense of discipline in an
unmotivated worker. By carefully studying the situation and the forces affecting
it, you will know at what points along the axis you need to be in order to achieve
the desired result.
MBA Semester III

MU0012

Q2. Every organisation faces disciplinary problems from employees. Explain the
major types of disciplinary problems faced in organisations. Types of Disciplinary
Problems Answer: Discipline is essential for organisations to regulate employee
behaviour and to channel employee efforts in realising organisational goals.
Management deals with all acts of indiscipline or misconduct according to the
organisational rules and policies and the nature of the indiscipline. Indiscipline
can be classified as minor or major on the basis of the impact they have on the
functioning of the organisation. Minor acts of indiscipline include absenteeism,
late coming, negligence at work, failure to be present when required, inefficiency
and acts of omission. Management correct minor indiscipline with written or oral
warnings. Major acts of indiscipline have to be dealt seriously and they include
theft, fraud, breach of contract, accepting or giving bribes or gifts, drunkenness,
violent or disorderly behaviour, insubordination, sleeping while on duty,
disclosing confidential information, sabotage or misuse of company equipment,
inciting other employees to act against the interests of the company, absence
without leave for a period of more than a month, and committing any offence
punishable by the law of the land Let us now analyse these disciplinary problems
that managers have to deal with in their line of work. The main types of
disciplinary problems are explained as follows: · Excessive Absenteeism:
Absenteeism occurs when an employee does not report to work due to time off,
illness or any other reason. Excessive absenteeism results in loss of productivity.
Absenteeism is corrected by employing progressive discipline. Employees need to be
aware of the absenteeism policy of the company. They also have to be aware of the
fact that the company monitors employee absence. Employees need to take
responsibility for their absenteeism and substantiate their absenteeism with valid
records like medical certificates in case of health related absences. · Poor
Timekeeping: Reporting late to work, leaving early, indulging in extended tea or
lunch breaks, doing personal work during office hours, and other time-wasting
practices reduce the time spent doing productive work. Poor timekeeping disrupts
business and creates a bad atmosphere. These habits have to be curbed and employees
need to know that it is mandatory for them to spend certain fixed hours at their
workstations or premises doing productive tasks. · Improper Personal Appearance:
Dress codes are enforced in organisations to project a professional appearance or
for safety reasons. Employees are to be made aware of the consequences of their
inappropriate attire. For example, synthetic clothes can catch fire easily. Company
policy also needs to describe situations where the employee has to dress formally.
· Substance Abuse: Alcohol and drug abuse can lower employee concentration and
decrease performance. Substance abuse also results in absenteeism, accidents at
workplace and inappropriate behaviour. Organisational policies on substance abuse
need to be communicated with the staff. Employees who are addicted to alcohol or
drugs have to be counselled or helped in other ways like therapy and detoxification
programmes. · Defective Performance: Defective performance results when a task is
not completed on time, or is of sub-standard quality, or the task is not done
according to requirements. An
MBA Semester III

MU0012

employee may perform poorly either due to lack of interest or due to lack of
capability. Managers need to assess poor performances individually, determine the
constraints and take corrective actions. · Poor Attitudes: Sleeping on the job,
being careless while working, fighting with coworkers, gambling in the work place,
insulting supervisors, being rude to customers and colleagues, and such practices
reflect poor attitudes. These actions can adversely affect other employees. Thus,
these attitudes have to be corrected to maintain a good and productive work
atmosphere. · Violation of Health and Safety Rules: Smoking in unauthorised places,
failure to use safety devices, not following safety rules regarding fire safety,
dealing with hazardous chemicals, electrical and mechanical equipment and radiation
protection are serious violations and have to be dealt with immediately and
effectively. · Insubordination: Insubordination can take the form of refusing to
perform a legitimate task that has been assigned, ignoring the instructions of
managers, criticising or challenging the orders of a superior, using abusive
language or making disrespectful gestures like rolling the eyes. Insubordination
can affect the morale of the entire team. Organisations need to spell out their
policies on insubordination. Managers have to be equipped with proper procedures to
deal with insubordination. · Workplace Violence: Companies need to have training
programmes to its security personnel so that they recognise warning signs and know
how to deal with violent behaviour of employees. Employee handbooks need to clearly
state that violent behaviour will not be tolerated and will result in termination.
· Harassment: This behaviour causes discomfort to the co-workers and reduces
employee morale. Making crude and sexual remarks or forcing another co-worker to do
certain nonlegitimate tasks constitutes harassment. For example, a manager may
repeatedly ask an unwilling subordinate for a date. Companies need to have in place
a clear sexual harassment policy and employees have to be trained on what
constitutes harassment. · Theft and Sabotage: Sometimes employees steal money,
equipment, supplies or confidential information belonging to the company. Some
aggressive employees may damage or destroy organisational equipment and facilities.
Some employees may falsify records and accept bribes and indulge in actions that
are detrimental to the organisation. Organisations have to strictly deal with such
problems.

Q3. How are trade unions classified? Answer: Types of Trade Unions Purpose of a
trade union is to represent people at work. Trade unions are differentiated based
on the type of people they represent. There are four types of trade union as given
below:  Craft of Skills Union: These unions represent skilled workers like
Musicians Union (MU)  Industrial Unions: These unions represent members of one
particular industry such
MBA Semester III

MU0012

as Fire Brigades Union (FBU)  General Unions: These unions represent workers from
all types of industries and with any level or range of skills. For example, Amicus
– the Manufacturing Science and Finance Union (MSF) White-Collar Unions: These
unions represent office workers, such as National Union of Teachers (NUT)

Craft of Skills Union Craft union is an arrangement of labour unions that joins
workers within the same part of a craft or a skill. Some examples are typographical
unions, unions for carpenters, stoneworkers, iron molders, boilermakers, railway
engineers and so on. These craft unions have substantial power in the workplace and
generally resist others controlling their work processes and standards of training
as their members have essential knowledge and physical and theoretical skills.
Industrial Unions Industrial unionism is a labour union organising method through
which all workers in the same industry are grouped into the same union, regardless
of skill or trade. This gives workers in all industries more leverage in bargaining
or when workers go on strikes. Advocates of industrial unionism value its
contributions in promoting unity. They describe the solidarity of these unions with
slogans like, ‘an injury to one is an injury to all’ and ’the longer the picket
line, the shorter the strike’. An example for an industrial union is a union for
oil workers. Members of such an industrial union would include people who are
involved in exploration, extraction, refining, transport and all the other areas
associated with the oil and gas industry. General Unions A general union is a type
of trade union that represents workers from all industries. Unlike craft unions or
industrial unions where just a particular sector forms a union, general union, as
its name suggests, is for any worker irrespective of organisation or sector.
General unions declare that their broader variety of members allows more
opportunities for harmony action and better management in general strikes.
Detractors claim that the broader dispatch means they tend to be more technical and
respond less effectively to events in a single industry. An example of a general
union in Australia is the Australian Workers Union. White-Collar Unions White-
collar worker refers to a salaried person, who either works as an educated worker
who performs semi-professional office, administrative or sales coordination tasks,
or works in any service industry like a teacher, a software engineer or a customer
care executive. Whitecollar workers, as opposed to blue-collar workers, perform no
manual labour. White-collar union is a type of union that represents white-collar
workers.
MBA Semester III

MU0012

Q4. What are the provisions of the Factories Act 1948 that ensure social security
measures of workmen in a factory? Answer: Factories Act – 1948 :- Provisions that
ensure social security measures of workmen in a factory The Factories Act regulates
labour employed in factories. It applies to the whole of India. This act applies to
all factories which use power and employ 10 or more workers, and applies to
factories not using power and employing 20 or more workers, on any day of the
preceding 12 months. According to this act, every factory has to be registered and
needs to obtain a licence for working which has to be renewed at periodical
intervals. The plans, designs and specifications of any proposed construction or
extensions to the factory have to receive the prior approval of the state
government. The main provisions of this act are as follows: o Facilities: It
specifies the minimum requirements regarding health (cleanliness, ventilation and
temperature, lighting and control of glare, etc.) safety (protection of eyes,
handling of explosive and inflammable materials, etc.), and general welfare of
workers (first-aid, canteens, shelter rooms, crèches, urinals, drinking water
etc.). o Safety: Fencing of machinery needs to be done. Adequate fire-fighting
facilities must be provided. Hoist and lifts have to be in good working condition.
Stairs and passages have to be free from obstruction. Safety appliances to protect
the eyes from dangerous dusts, gases, and fumes have to be provided. Pressure
plants have to be regularly checked. Working Hours: The working hours cannot be
greater than 48 hours in a week. Weekly holiday is mandatory. Compensatory holidays
have to be given if the worker works on weekly holidays. A worker cannot be made to
work for more than nine hours in a day. Half an hour rest is to be provided after
five hours of work. Overlapping of shifts is not allowed. Overtime Wages: A worker
has to be paid overtime wages at double the rate of regular wages if the worker
works beyond 9 hours a day or 48 hours a week. Leave: A worker is permitted a leave
of one day for every 20 days of work performed in the previous calendar year
provided that the worker had worked for 240 days or more in the previous calendar
year. Child Employment: Children below age of 14 cannot be employed. Children
between 14 and 15 years of age can be employed only for 4.5 hours per day or during
the night. Adolescents cannot work between 7 pm and 6 am. Obligation regarding
Hazardous Processes and Substances: Provide Information about hazardous substances
and processes and the dangers and health hazards involved. Ensure safety measures
and make emergency plans. Appoint safety committees.

o o

o
MBA Semester III

MU0012

Q5. Describe the different systems in an organisation that use Employee Relation
Management tools. Answer: Employee Relationship Management Tools Technology can be
used to help manage employee relationships. Automated employee relationship
management tools help employees to do their tasks in a better way. The following
are the different applications existing in organisations which use tools based on
different technologies: HR Systems: Human Resource Information System (HRIS) is
used to manage all employee information, all leave details and to administer
benefits. HRIS handles payroll and other company financial software and accounting
systems. These are used by companies for the following reasons: · Employees receive
timely and correct wages. · Employees apply for leave on their own. · Training
programs for employees can be automated and streamlined. Performance Management
Systems: These help to monitor the performance of employees and link it with their
salary increments and bonus payments. Managers keep track of training activities
and deadlines. Employee activity logs are used for evaluation and planning. There
are many software tools which aid performance appraisals like those from HRdirect,
Halogen software, Cornerstone Performance and so on. Work Flow Systems (WFM): These
help in scheduling, organising and co-ordinating the work of the employees.
Teleopti CCC and SAP HR are WFM software that include tools to manage, involve and
improve the workforce. Knowledge Management Systems: These help employees identify,
create, and share their knowledge. Search and retrieval tools enable easy access of
content. According to their role in the organisation, employees view content that
is relevant to their work. A single software solution cannot be used for these
systems. Knowledge management systems use document management tools, e-learning
software, knowledge repositories (databases), collaborative technologies
(groupware) and social software (wikis). Project Management Systems: These help in
managing and monitoring project activities and in scheduling resources. Project
management systems facilitate creation and approval of project estimates. They
define resources and tasks. They also create project milestones and enable easy
execution of projects. Project reports are generated easily. Gantt charts help in
scheduling projects. Critical path analysis (CPA) and Program Evaluation and Review
Technique (PERT) charts help in project planning. Log frames can be used for
project monitoring. Software tools like Microsoft Project and SourceForge help in
project management. Employee Feedback Systems: Surveys enable employees to voice
their opinion about routine tasks, management attitudes, current procedures, and
ethics. Many software tools
MBA Semester III

MU0012

are available to help in employee surveys like those from HR-Survey, and
Benchpoint. Employee Self-Service Systems: These systems enable employees to update
their personal details. Employees file their expenses, billing and time reports.
Employees raise purchase requests and keep track of their project related
activities. Employees retrieve human resource related documents, update their tax
related information and view their salary details. They can also update their bank
information to enable direct salary deposits and reimbursements. Employees can
apply for leave and view leave balances. An open forum is provided for employees to
present their views. Employees exchange ideas through e-mails and bulletin boards.
Employees create and share calendars for better functioning. Tools are provided to
employees to perform routine tasks easily and thus focus on other important tasks.
Oracle’s PeopleSoft Enterprise Employee Self -Service is an example of an employee
self-service tool. These technologies are beneficial only if they address the needs
of the employees. Clear guidelines need to be provided to use these technologies.
The benefits of ERM tools are as follows:  It strengthens corporate culture.  It
enhances communication through the use of e-mails, blogs, bulletin boards, shared
folders, and e-calendars.  It educates employees about the products, customers and
services of the company through enterprise portals.  It facilitates project
management.  It reduces training costs as employees can be provided on-line and
needs-based training.  It makes HR management work easier.  It facilitates work-
flow management and increases productivity.  It enhances performance management. 
It manages resources efficiently.  It helps retain and provide career growth to
talented employees.  It enables easy retrieval of information.  It obtains
feedback from employees and enables organisations to make appropriate corrections.
 It assures job satisfaction and helps in retaining employees.  It ensures
compliance with government requirements. Wipro is one of India’s leading software
service companies. It has developed some models to deal with the processes of
employee management. Wipro offers flexible Employee Performance Management (EPM)
solutions which are delivered either in Business Process Outsourcing (BPO) or
Software as Service (SaaS) Model. They make employee assessments easier and more
accurate. The EPM model offers the following benefits: · Goal management ·
Performance appraisals · Workflow and succession planning · Employee development
planning · Employee training
MBA Semester III

MU0012

Q6. Suppose you are the HR Manager of a software company that is facing severe
financial loss due to recession. What action would you take to keep your employees
positive and motivated? Answer: As a HR manager I would take the following actions
for motivating employees. 1. Recognition of individual differences: Employees are
not homogenous. They differ in terms of attitudes, personalities, needs, etc. The
management should therefore recognize these differences and motivate workers. 2.
Matching the people to jobs: People with high growth needs perform better on
challenging jobs. An organization will benefit if the right job is given to the
right person. Achievers do their best when the job provides opportunities to
participate in setting goals and when there is autonomy and feedback. 3. Goals:
Provision of specific goals makes employees know what he is doing and what the
management expects from him. Making people understand that they can achieve the
goals in a smooth way is very important. If the management expects resistance to
goals, they can invite people to participate in the goal setting process. 4.
Individualistic rewards: The management must use rewards selectively, keeping in
mind the individual needs of employees. What acts as a motivator for one may or may
not motivate another employee. Therefore rewards like pay, promotion, autonomy must
be used keeping the mental state of employees. 5. Linking rewards to performance:
Employees should be rewarded immediately after attaining the goals. Managers should
publicize openly the award of performance bonus, lump sum payments to employees for
showing excellence and this will go a long way in increasing the awareness of
people regarding the reward-performance link. 6. Checking the system for equity:
The inputs for each job in the form of experience, abilities, effort, special
skills must be weighed carefully before arriving at the compensation package for
employees. Employees must see equity between the rewards/recognition obtained from
the organization and the efforts put by them. Non-financial incentives: Incentives
which cannot be offered in terms of money are known as non-monetary incentives.
Very often, money alone is not the motivator. Higher level needs, like, status,
recognition, etc of employees are also to be satisfied. People working at a higher
level do not always work for money. They expect a challenging job that allows them
to use their talents fully. Organizations have developed a variety of incentives to
meet higher order needs of people. These can be classified as follows: Individual
incentives: Under this we have the following: 1. Status is the ranking of
positions, rights and duties in an organization. Middle and higher
MBA Semester III

MU0012

level employees prefer escalations in status to increment in pay. 2. Promotion is

the vertical movement of a person in an organization. Promotions are accompanies by
higher responsibilities, higher prestige and power. Promotions are generally
dependent on good performance. 3. Responsibility: People want to handle responsible
and challenging jobs. If the job is responsible, it satisfies people in more than
one way. 4. Recognition of work: Managers can motivate people by showing
appreciation when an individual does an outstanding job. Recognition and
appreciation will have a tonic effect on the psychology of employees. 5. Job
security: People want secure jobs. They want to be sure about their future income
and job continuation. Group incentives 1. Social importance of work: People want
jobs with high social status. High status jobs enhance the social status of an
individual in the society. Some people may even be willing to accept such jobs even
if the pay is less. 2. Team spirit: People prefer to work in well-knit groups.
Organizations encouraging employees to work in a team attract people automatically.
3. Healthy competition: Promoting healthy competition among employees through
carefully chosen reward schemes motivates people to work harder. Organizational
incentives 1. Participation: People prefer organizations that offer good
opportunities to participate in decision making process. Participation enables
people to offer valuable suggestions and they feel proud when these are actually
translated into action. 2. Good human relations: A positive work climate where
people are treated with respect is an important reward. It makes people to work
with enthusiasm and spirit and contribute their best. 3. Morale: Morale refers to
the atmosphere created by the attitudes of the members of the organization. Poor
morale is not in the interest of the organization. The warning signals like
absenteeism, strikes, high attrition, etc are to be viewed seriously in the initial
stages itself by the management. 4. Communication and discipline: Proper
communication and good disciplinary procedures enable people to work with
confidence and along the prescribed routes. The behaviour of the employees is
consistent with goals and the chances of meeting the goals are high.
MBA Semester III

MU0012

Motivational techniques in practice Organizations continue to experiment to evolve

different kinds of techniques to motivate people at work. The techniques are
developed by behavioural scientists giving equal importance to intrinsic and
extrinsic factors of job at work. The following are some of the best motivational
techniques in force in different organizations:  MBO: Management by Objectives
encompasses specific goals particularly set for an explicit time period with
feedback on goal progress.  Employee involvement: A participative process that is
designed to encourage increased commitments of the employees.  Participative
management: A process where subordinates share a s significant degree of decision
making power with their immediate supervisors.  Board of representatives: A form
of participation in which representatives of employees sit with the company’s
Boards of Directors and present the employees interests.  Quality circle: A work
group of employees who meet regularly to discuss their quality problems,
investigate causes, recommend solutions and take corrective actions.  Profit
sharing plans: Organizations may have programs that distribute compensation based
on some established formula designed around the company’s profitability.  Gain
sharing: An incentive plan where improvements in group productivity determine the
total amount of money that is allocated.  Flexible benefits: Employees tailor
their benefit program to meet their personal needs by choosing and picking from a
menu of benefit options.  Comparable growth: A doctrine which holds that jobs
equal in value to an organization should be equally compensated, whether or not the
work content of these jobs are similar.
MBA Semester III MU0012 –Employee Relations Management Assignment Set- 2 Q1. What
are the four strategy levels in an organization?

MU0012

Answer: Different Strategy Levels in an Organisation Organisations have different

levels of strategic decision making. Although these levels are inter-related, each
one of them has its own scope and reach. The different levels of strategy in an
organisation are corporate level, business-unit level, functional level and people
level. Let us now examine each level of strategy that exists in an organisation in
detail. 1. Corporate Level Strategy Corporate level strategy is usually devised at
the board level. It defines the following for an organisation:  The overall
mission.  The game-plan.  The management of the business portfolio.  The
priorities of each business unit regarding resource allocation.  The structuring
of the business.  The methods of financing the business.  The alliances to be
made.  The acquisitions/ mergers to be performed. Figure : depicts the factors
which influence corporate strategy.

Figure : Factors Influencing Corporate Strategy From Figure you can see that the
corporate strategy is influenced by the external environment, the people and
systems within the organisation, the organisation structure, resources within the
organisation, the current values of the organisation and the expectations and
objectives of the organisation. Corporate strategy examines internal (within the
company) and external factors (competitors, clients, customers), frames a new
vision for the organisation and aligns policies, practices and resources to achieve
that vision. It provides an overall direction to the organisation. The corporate
visions of some organisations are listed below
MBA Semester III          

MU0012

GE (General Electric): “We bring good things to Life”. Microsoft: “To enable people
and businesses throughout the world to realise their full potential”. The corporate
vision influences the business mission. A good business mission should be: Clear:
It should be stated in a language that is easily understood by most of the
employees. Achievable: The employees must feel that the organisation can achieve
the specified objectives. Challenging: Each employee should exert as much effort as
possible to contribute to the overall success of the mission. According to Johnson
and Scholes, corporate strategy can be evaluated by the following criteria:
Suitability: Is the strategy economically viable? Is it suitable to the current
corporate capabilities and environment? Feasibility: Are the resources (finance,
people, time, knowledge etc.) available to implement the strategy? Acceptability:
Will the stakeholders (shareholders, employees, customers) react favourably to the
strategy?

For example, Dell Computers is a leading PC supplier. The corporate strategy

adopted by it is to deliver innovative and cost-effective solutions which address
customer needs. Dell Computers tries to deliver this through its in-house Research
and Development division and by forming strategic partnerships with top industry
suppliers and original development manufacturers. 2. Business-Unit Level Strategy
Business-unit level strategy is mainly concerned with how the organisation gains
advantage over its competitors. It deals with the following:  The methods the
organisation uses to compete in particular markets  The new opportunities that the
organisation identifies or creates  The products or services to develop  The
customers that the organisation targets  For example, the business strategy of a
furniture manufacturer is decided by the following factors:  The type of furniture
the furniture manufacturer wants to market (home furniture, office furniture etc.)
 The competitors who market similar furniture  The quality of furniture the
furniture manufacturer wants to market (solid wood, plywood)  The customers the
furniture manufacturer targets (individual customer, corporate, educational
institutions)  According to Porter (1985), the three basic factors that influence
the decisions making process are:  Cost leadership: It aims to offer lower costs
than the competitors without lowering quality.
MBA Semester III 

MU0012

Product differentiation: It tries to achieve industry-wide recognition that the

different products and services of the company are superior in quality when
compared to that of the competitors. Specialisation by focus: It tries to establish
a niche market.

3. Functional Level Strategy Functional level strategy is concerned with how

different units of the business (marketing, finance, manufacturing, personnel)
transform corporate and business level strategies into operational goals. According
to Johnson and Scholes, functional strategy describes “how the component parts of
an organisation in terms of resources, processes, people and their skills are
pulled together to form a strategic architecture which will effectively define the
avenue”. [2] Functional units help in framing the business and corporate strategies
by providing input on resources and capabilities. Once the higher level strategies
are framed, action-plans are framed for each department, in order to accomplish the
higher level strategies. For example, when the corporate strategy of a business is
being the lead player in a specific market, the functional strategies of each
division would be as follows:  Manufacturing division: to produce good quality
goods.  Human resource division: to train staff in order to have a highly skilled
workforce.  Marketing division: to increase sales by increasing advertising.  The
different kinds of functional strategies are  Marketing strategy: It deals with
pricing, selling and distributing a product.  Production strategy: It deals with
what products to produce (issues like new products for existing markets or products
for new markets), the production chain, etc.  Finance Strategy: It aims to align
the financial management of the organisations with its mission and goals. The
decisions to be made are regarding budgets, liquidity issues, credits, cash flows,
loans, capital investments etc.  Human Resource Management (HRM) strategy: It
deals with managing an important asset of the organisation – its work force.  R &
D strategy: It deals with issues like innovation and development of new products,
and the addition of new features in existing products. It is essential that various
functional units organise themselves with care in order to achieve their aims and
synergise with the rest of the business. Let us now analyse the concepts of people
strategy. 4. People Strategy People strategy aims to match the activities of an
organisation with its human resources. An effective strategy for people management
is vital to the success of an organisation. Research carried out by the Institute
of Work Psychology and the Centre for Economic Performance shows a clear link
between the adoption of good human resource business practices and improved
performance. The research proves that focussing on key people management issues
will improve productivity and profitability. People strategy aims to:  Ensure that
the employees are satisfied with their jobs, working environment, rewards and
career prospects.  Develop employee commitment by motivating them to move beyond
contractual obligations to emotional commitment. This develops a strong sense of
loyalty to the
MBA Semester III

MU0012

organisation and its customers. Manage organisation culture by concentrating on the

important cultural aspects of the organisation. The culture of an organisation is
defined by:  The artefacts and symbols of the organisation.  The stories and
myths within the organisation about its various successes or failures.  The rites
and rituals that define employee behaviour.  The rules and procedures that set
parameters for employee behaviour and action.  The role models within the
organisation.  The beliefs, values and attitudes reflected in the daily
activities.  The ethical standards which set the boundaries of acceptable
behaviour. The five main features of people management are:  Developing a
strategic view of managing employees.  Involving employees in the business. 
Investing in communication.  Managing employee performance.  Viewing employees as
individuals.  Developing a Strategic View of Managing People An organisation must
ensure that its people are at the centre of any strategic business planning. The
key issues that an organisation must address while planning its business strategy
are: · Are the right knowledge, skills and competencies available within the
organisation? · Should people be recruited from outside? · Can the knowledge,
skills and competencies of the people be developed to explore new business
opportunities? Involving People in the Business Emphasis on team work will involve
employees in the business. Teams need: · More autonomy and freedom for self-
management. · Clear objectives and targets. · The freedom to plan and undertake
work, acquire resources and improve the processes, products and services. Investing
in Communication To be successful, an organisation must invest heavily in
communications. Businesses that show a high growth have implemented the following
in enhancing communication within the organisation: · Communicate their business
strategy to all employees · Give feedback on performance to all employees regularly
· Use a wide range of communication methods Managing Employee Performance Employees
perform well if they · Know what they have to do · Get feedback on their
performance
MBA Semester III

MU0012

· Know the areas in which they have to improve · Know how they can improve
themselves If employee expectations are not well defined, it can lead to low
morale, dissatisfaction, absenteeism and high turnover. Viewing Employees as
Individuals High performing organisations view people as individuals and use
techniques of involvement which encourage satisfaction and commitment.

Q2. What are the reasons for maintaining good industrial relations in an
organization? Importance of Industrial Relations Answer: Industrial Relations is
the process of managing individual and collective relationship between the workers
and the management in organisations so that, the needs of both the parties are met.
Healthy Industrial Relations ensure harmony and progress. Good Industrial Relations
is important not only for the employers and employees but also for the entire
society. Unhealthy Industrial Relations are harmful to the industry and the nation.
It results in wastage of resources, reduction of productive working days, and
reduction of the national output. The creation and maintenance of Industrial
Relations promotes industrial peace. It is important to ensure good Industrial
Relations for the following reasons:  Uninterrupted Production: Good Industrial
Relations ensures continuity of production. Resources are fully utilised and
production is maximised. All employees of the organisation are assured continuous
work. Uninterrupted production is very important for organisations as some products
act as inputs for other organisations; some products are exported, and some
products are very essential for consumers. Reduction in Industrial Disputes: Good
Industrial Relations help in reduction of industrial disputes. Resolution of
disputes promotes harmony and co-operation within the organisation. Enhancement of
Morale: Good Industrial Relations improve the morale of the employees. It increases
employee involvement and commitment. Workers display more interest in achieving the
organisational goals. Transformation of Attitudes: Good Industrial Relations enable
employers and employees to view themselves as partners in the industry. Employees
and employers recognise the rights and interests of the other. Reduces Wastage:
Good Industrial Relations enhances co-operation. Wastages of time, resources, and
materials are minimised. This in turn increases production.


MBA Semester III 

MU0012

Increases Profit: Good Industrial Relations maintains competitive labour costs,

increases production and thus increases profits.

Q3. What are the benefits that an organization enjoys by implementing employee
participation? Answer: Advantages of Employee Participation Employee Participation
implies that management of an organisation advocates employee involvement in
execution and improvement of various business processes. It is beneficial for the
organisation in several ways. Companies like IBM, General Foods, Texas Instruments,
Procter & Gamble, Ford, Motorola, Honeywell, 3M, and Hewlett-Packard have employee
participation programmes. Employee participation benefits both the employees and
the employers. The advantages of employee participation are as follows: o Enhanced
Employee Performance and Productivity: Employees clearly understand their tasks as
there is no ambiguity in their communications with the managers. This helps
employees to perform in a better way. Employees are better informed and are able to
identify and overcome the hurdles to productivity. Enhanced Organisational
Excellence and Efficiency: Employee participation reduces the number of
inconsistencies. Knowledge of the tasks enables employees to make intelligent
decisions and this increases the overall efficiency. Enhanced Employee Commitment:
Employees become more dedicated and work toward achieving the objectives of the
organisation. Reduced Absenteeism and Employee Turnover: When employee suggestions
are valued and rewarded, the job satisfaction level increases. This helps in
retention of employees and reduces absenteeism. Reduced Labour Conflicts: Employee
participation builds trust and mutual support. Employees align their goals with
that of the organisation, and conflicts within the organisation reduce. Improved
Communication within the Organisation: Effective communication is essential for
building employee participation. Managers develop their communication skills in
order to inform their subordinates of their intentions and perceptions. Employees
too communicate better with their superiors through suggestions and joint-meetings.
Reduced Resistance to Changes: Employee participation enables them to quickly adapt
to organisational changes as there is a clear understanding of employee
expectations. Enhanced Morale: Employees desire to be actively involved in their
work and make significant contribution to their organisations. Employee
participation satisfies many of

o
MBA Semester III

MU0012

the psychological needs of the employee and thus increases their morale. o
Increased Innovation and Creativity: Employee participation enables employees to
suggest and implement novel ideas which help in decision making and problem
solving.

Q4. Explain the challenges that international employees encounter. Problems

Associated with International Employees Answer: The specific problems faced by
international employees are: · Employee Working Overseas Problem One of the major
problems associated with employees working in overseas branches is, which law has
to be followed by the employee. The two choices are the laws of the homecountry law
or the laws of the host-country in which the employee is working. For example, when
an employee of an Indian company works in an American branch, there are chances of
confusion for the employee as to follow the Indian laws or the American laws.
Solution Judicial courts normally follow the legislation of its own country and so
do organisations. There are a few organisations that follow the laws of the home-
country. The overseas branches of this company are forced to follow the same law
irrespective of the country in which they work. However, few companies are
flexible. They follow the laws of the country in which the branch is located. ·
International Personal Information Flow, Privacy, and Security Problem Employers
have to consider the International Privacy laws while transferring the details of
employees across national borders. These laws are applicable even if the transfer
of information happens within the same company. Governments across the globe have
imposed laws and regulations to maintain privacy of employee information. Solution
The Data Privacy Directive is a solution to the above problem. It states that the
personal information of employees has to be any one of the following: · Collected
for specific, legitimate reasons · Held only if it is relevant to the reasons ·
Precise and up to date · Legally processed · Stored only until required Employee
details can be transferred across nations only if the company is authorised to do
so.
MBA Semester III

MU0012

· International Employee Assistance Programme Problem Often employees often

hesitate when assigned to work overseas,. The major reason is separation from their
families. Difference in culture, tradition, legal system, and language adds to the
stress of the employee. The consequences of these factors are: complicated health
problems, interrupted careers, worries concerning dependent elderly parents and so
on. Solution Research has suggested that support and adjustment from family members
helps solve this problem to a great extent. Besides, an organisation called Federal
Occupational Health (FOH) is working towards solving this problem. FOH provides
round the clock service. The services provided are counselling, stress management
programmes, and health and welfare seminars for the benefit of the international
employees. Apart from the aforementioned issues, there are few other issues that
affect international employees. They are as follows:  The first problem that an
employer faces is deciding which employee to select for a foreign project. The
selection depends on the skills of the employee. Employees who can adjust and adapt
to different cultures, who know about different cultures and who have the desire to
work in foreign projects are best suited.  Few organisations expect employees to
analyse and achieve things on their own. Newly relocated employees may find it
difficult to start off without guidance. In the beginning, they usually require
guidance to adapt to the new organisational as well as country culture.  The
salary package to be offered to the international employees can be an issue of
uncertainty. The currency values of countries differ from each other. For example,
consider employees from the European branch working in the Indian branch of the
same company. In Europe, the employees will be paid in Euro. The currency values of
Euro and Rupee are definitely not the same, so the questions arises whether to pay
the employees working in the Indian branch in Euro or Rupee? If the employees are
paid in Rupees, the salary would seem less. If the employees are paid in Euro, the
other employees will think the company is playing unfair by paying the European
employees more and paying less to those local employees.  The overseas branch and
the home company have to establish mentoring programmes for employees to avoid
possible pitfalls. Usually, a foreign mentor helps the employee in adjusting to the
new regime. Apart from this, a mentor keeps the employee informed all the events in
the home company like the organisation’s progress, issues and procedures.  The
assignments given to employees have to be based on their individual skills. An
employee learns new tools and techniques while working in overseas assignments.
Once the employee returns from the overseas assignment, organisations hesitate to
provide opportunities to the employees which utilises the newly developed skills.
Organisations have to entrust these employees with better opportunities and allow
them to develop these new skills.
MBA Semester III

MU0012

Q5. What are the components of a Human Resource Information System? Human Resource
Information Systems is a software application that caters to the human resource
information needs of the organisation like monitoring employee attendance, payroll
and benefits administration, career development, employee information, performance
management, and training. HRIS is a collection of components which work together to
gather, process and store information that the HR department can use to make
decisions, to coordinate and to plan its activities. HRIS facilitates easy access
and management of employee related information. For example, Terasen Pipelines, a
Canadian company was using a manual system to maintain its records. But when its
workforce increased, it began to use an HRIS to maintain accurate employee records.
Initially, mainframe computers were used by organisations to manage human resource
management functions. A large amount of capital was needed to operate these
systems. The advent of client-server architectures and Software as a Service (SaaS)
models has lowered the maintenance costs of HRIS. HRIS Components: HRIS comprises
of the following modules: · Payroll: This module of HRIS keeps track of the pay
grades and positions of the employees. Pay raise details are also recorded. This
module gathers information on employee time and attendance. It calculates the
deductions and taxes and generates pay slips and tax reports. Cheques get
automatically deposited in the employee bank accounts. Inputs for this module are
obtained from HR and time keeping modules. This module integrates with the current
financial systems of the organisation. · Benefits Administration: This module
tracks and administers employee benefits programmes. The benefits programmes
include insurance, reimbursements, profit sharing and pension programmes. · HR
Management: This module covers many HR aspects which range from employee
recruitment to retirement. It records employee details like addresses, training
programmes undergone, skills, position and so on. The functions addressed by this
module are recruitment, placement, evaluation and career development of the
employees. Job sites on the Internet are increasingly being used for recruitment.
This module tracks job applications. Interviews and selection details are also
maintained. · Training: This module administers and tracks employee training and
development programmes. Records of employee education, qualification, and skills
are maintained. It also outlines the training courses and training materials (CDs,
books, web based learning programmes) which help employees develop their skills.
Courses can be planned and scheduled using the data stored. Managers can approve
training and budgets. · Performance Appraisal: This module evaluates the job
performance of employees in terms of quality, time and cost. This helps in analysis
of employee strengths and weaknesses and suitability for promotions. It gives
feedback to employees on performances
MBA Semester III

MU0012

and identifies employee training needs. It also documents criteria which can be
used for organisational rewards. · Work Time: This module helps to track the work
done by the employees. This module merges the functions of work management and time
management across a wide range of activities that include project, tasks, requests
and deployment. This module maintains attendance and leave details of employees
which are exported in various formats for further processing. · Employee Self-
Service: This module permits employees to update their personal details, query HR
databases and perform HR transactions. Employees are allowed to apply for leave,
raise purchase requests, file expenses, view their salary details and keep track of
their project related activities. Employees use this to update their tax savings
details and bank related information.

Q6. Imagine yourself as the HR Manager of a steel company and you find that for
members of the production team in your organisation are in conflict and this has
affected the productivity of the team. What steps will you take to resolve the
conflict and improve the team productivity? Answer: 1. I will try to identify the
reasons of conflict. What is the reason of conflict among the following reasons ·
Territorial perceptions: People involved in the conflict may feel that the other
party has violated agreed or implied operating territorial boundaries. ·
Personality differences: Rivalries, jealousies, personality clashes, and power
struggles can cause conflicts between individuals. We have to keep the following
factors in mind while assessing the potential for conflicts in workplaces: · Nature
of work · Structure and division of work · Personality and objectives of
individuals · Organisational ethics, beliefs, values and expectations ·
Organisational culture · Past attitudes and approaches towards management or staff
· Present attitudes and approaches to employee relations · Future plans for
employee relations 2. Indentifying the Different Aspects of Organisational Conflict
You now know some of the causes of conflicts in an organisation. Let us look into
the different aspects of organisational conflict. There are four aspects of
organisational conflict and they are as follows: · The parties: The conflict may
involve two or more parties. The parties to the conflict and the reasons for the
conflict are clearly identified. This becomes a difficult task if there are many
MBA Semester III

MU0012

sub-groups involved each of which has its own agenda. · The issues: The issues of
the conflict are any of the following: · Disputed topics or subjects · Different
perceptions of the topics · The interests of the parties involved · The
acceptability of the proposed resolutions · The hierarchy and priority of
contentious issues · The dynamics: The following factors are considered to
understand the dynamics of the conflict: · The factors that reveal the conflict ·
The factors that fuel the conflict · The changes in the situation of the conflict ·
The length of time of the conflict · The attitudes and changes in the attitude of
the people involved · The position and influence of vested interests · The
possibility of resolution of the conflicting interests · The power and influence of
key players · The accuracy of the predictability of outcomes and developments · The
range of outcomes · The hurdles which block progress · Management of the conflict:
Conflicts are dealt with in the following ways: · Institutionalise the conflict:
Have set rules, precedents, and procedures to resolve conflicts. · Contain and
control the conflict: Isolate and tackle severe conflicts. · Remove the causes of
conflict: This can be done by improving channels of communication and using
conciliation and arbitration techniques. 3. Early Warnings of Conflict Now that you
are familiar with the factors in a conflict, you must know that it is important to
identify conflicts in its early stages. Every manager and employee needs to be able
to identify the signs of conflicts and respond to them as soon as they occur. All
staff members have to raise issues of concern immediately. This contributes to the
well-being of the organisation. The early signs of the presence of conflict are as
follows: · Declining performance: Declining performance trends of a department
indicate the presence of conflict. · Declining morale: Conflicts lower morale and
increase turnover, absence and rate of accidents. To identify a conflict, you have
to know the different types of conflicts that can arise in an organisation. 4.
Identifying the types of Organisational Conflict The different forms of conflict in
an organisation are as follows: · Personal conflict: This conflict arises due to
differences in the perceptions and personality of individuals. Professional
counsellors may be required to resolve such conflicts but managers try to
understand and resolve them. · Role conflict: People have formally defined roles in
an organisation. Apart from this they have roles outside the organisation as a
parent, child, spouse all of which affect their
MBA Semester III

MU0012

organisational role. Conflicts arise when these different roles interfere with each
other. Role conflicts also arise when an individual gets inconsistent demands. For
example, an employer demands an employee to produce superior quality work while the
team makes demands to increase the production. Such role conflicts sometimes
motivate the employee to perform better, and sometimes it causes frustration and
reduces efficiency. · Inter-Group conflicts: Conflicts arise in groups when there
is a scarcity of resources or a struggle for power and status within the group.
Inter-group conflicts also arise when rewards and recognitions are not properly
awarded. The two kinds of intergroup conflict are the following: · Horizontal
strain: This occurs when different functions like sales and production compete with
each other. · Vertical strain: This occurs when there is competition between
different hierarchical levels like foremen and shop workers. 5. Conflict resolution
Once you know the aspects and types of conflicts, you have to understand the steps
that can be taken to resolve the dispute. Conflicts are resolved by adopting the
following methods: · Counselling: If the organisations cannot have professional
counsellors on their staff, then managers can be trained to counsel employees. Just
by employing non-directive counselling (listening and understanding), managers can
help their frustrated subordinates. · Avoidance: One strategy that is employed is
not paying attention to the parties involved in the conflict. Another strategy used
is isolating partially or fully the parties involved in the conflict in order to
limit interaction. · Smoothing: This technique tries to achieve harmony between the
parties involved in the conflict. · Dominance or Power Intervention: A higher
authority tries to impose a solution to resolve the conflicts of the subordinates.
· Compromise: Conflicts can be resolved by meeting at least part of the demands of
the parties involved in the conflict. · Confrontation: The parties involved in the
conflict are brought face to face and a solution is arrived by having frank
discussions
MBA Semester III MU0013 –HR Audit Assignment Set- 1 Q1. What are the components of
human resource development audit? Answer: Components of Human Resource Development
Audit The HRD audit is divided into three components: · Organisation and
Administration of Human Resource · Information Management through Documentation ·
Computerized HRIS

MU0013

1. Organisation and administration of human resource In this you should consider

following points: · The way in which the organization’s HR office is organized ·
The operating standards and internal controls followed in the business unit. · The
ways of administrating retention rights, including notices, matrix, use of
separation incentives, and outplacement practices. · The procedure of making HR
staff up to date with the HR field. · The techniques used for communicating with
employees and appointing authorities in department. 2. Information management
through documentation You must be aware that information is managed in the business
unit through documentation of various records of the employees and factors
concerned to them. So following are some important considerations in this: · The
person with whom the personnel files currently held. · The documents are held in
personnel files. · The ways to document following in your organization : -Hiring:
Application, interviewing, and reference checks -Compensation and benefits -Leave
and overtime information -Transitions -Training -Discipline -Work history -Work
Assignments -Significant accomplishments -Emergency contact information
-Performance evaluation and performance management Termination · The duration of
holding the files. · The place at which they are stored after employees leave. · It
should be seen that whether there is training of managers and employees about
personnel files.
MBA Semester III

MU0013

· The policies and procedures for accessing files. · The person responsible for
filling the requests for information when they are made to your organization. · The
content of employee, payroll, medical, and position files. · The various internal
controls to ensure accuracy of information and control access. · The process for
purging records. · The way of maintaining employee timesheets. · The place at which
various notices are posted. · The methods to ensure timely and accurate reporting
of information to the top management. 3. Computerized Human Resource Information
System In this you need to check the System requirements, features and
capabilities. Consider the following: · Whether HRIS system is being used in the
organisation or not. · The type of HRIS system used. · To judge that system is
based on same platform as rest of the organization. · The formal training program
for employees and managers to access the HR information through the system. ·
Whether the HRIS system is comprehensive or not. · Are discreet pieces of
information captured about employees and their jobs: -Personnel data
-Recruitment/selection data -Training and development data -Compensation data
-Performance appraisal/promo ability data -Benefit Plan data
-Health/safety/accident data · The ways of translating the information into usable
forms. · The data security issues. · The individuals who are able to update and
change information controlled to enhance accuracy. · The hardware is used to
operate the system. · The local area networks that is fully compatible with the
system. · The estimated processing time to generate a standard 10-field employee
roster listing, including age, annual salary, and years of service, for 500
employee records.

Q2. Explain the audit of human resource function. Answer: The HR audit includes
areas of evaluation like what is needed before a company hires any employees all
the way through the process of recruiting new employees, bringing them aboard,
enrolling them in benefits programs, safeguarding their confidential information,
managing and supporting them, and participating in their exit from the company, if
MBA Semester III

MU0013

necessary, either voluntarily or otherwise. HR Audit is the tool by which you can
measure the effectiveness of various HR functions in any organization. It comprises
of systematic verification of following:  Job analysis and design  Recruitment
and selection  Orientation and placement  Training and development  Performance
appraisal and job evaluation  Employee and executive remuneration  Motivation and
morale  Participative management  Communication  Welfare and social security 
Safety and health  Industrial relations  Trade unionism  Disputes and their
resolution Scope of human resource audit HR Audit is very wide term and covers all
the functions and aspects of Human Resource Management. It covers the following
areas:  Audit of all the HR function.  Audit of managerial compliance of
personnel policies, procedures and legal provisions.  Audit of corporate strategy
regarding HR planning, staffing, Industrial Relations, remuneration and other HR
activities.  Audit of the HR climate on employee motivation, morale and job
satisfaction. Benefits of human resource audit To find out how the HR audit helps
the organization, read the following:  It helps to find out what is the proper
contribution of the HR department in the organization.  It helps to develop the
professional image of the HR department of the organization.  It helps to reduce
the HR cost by preventing various activities which are not necessary.  It helps to
motivate the HR personnel of the organization towards better performance by
checking the work done by them.  It helps to find out different problems and solve
them smoothly.  It helps timely legal requirement fulfillment.  It improves
Performance Appraisal Systems.  It helps to pursue systematic job analysis.
MBA Semester III

MU0013

Q3. Explain the linkages between HR Audit and business functions. Answer: Human
Resource Audit and Business Linkages The HRD audit also examines the linkages
between HRD and other systems like total quality management, personnel policies,
strategic planning etc. Suggestions are made on the basis of evaluation on the
future HRD strategies required by the company, the structure the company needs to
have for developing new competencies and the systems that need to be strengthened,
the styles and culture that has compatibility with HRD processes in the company
particularly the styles of the top management, etc. Business linkages of Human
Resource Development It indicates the extent to which HRD efforts (tools,
processes, culture etc.) are driven to achieve business goals. The business goals
include:  Business excellence including profitability and other outcomes the
organization is expected to achieve;  Internal operational efficiencies; 
Internal customer satisfaction;  External customer satisfaction;  Employee
motivation and commitment;  Cost effectiveness and cost consciousness among
employees;  Quality orientation. Role of HRD Audit in Business Improvements  HRD
audit is cost effective  It can give many insights into a company’s affairs.  It
could get the top management to think in terms of strategic and long term business
plans.  Changes in the styles of top management  Role clarity of HRD Department
and the role of line managers in HRD  Improvements in HRD systems  Increased
focus on human resources and human competencies  Better recruitment policies and
more professional staff  More planning and more cost effective training 
Strengthening accountabilities through appraisal systems and other mechanisms 
Streamlining of other management practices

Q4. What are the main objectives of Human Resource Planning? Human Resource
Planning Answer: Human resource planning is the term used to describe how companies
ensure that their staff comprise of “Right person for doing the job”. It includes
planning for staff retention, planning for candidate search, training and skills
analysis and much more.
MBA Semester III

MU0013

It is process of acquiring and utilizing Human Resource in the organization. The

main objective is to ensure that organization has right number of employees in the
right place at the right time. The main objectives of Human Resource Planning are
as follows: 1. To determine the number of employees to be employed: If organization
has more number of employees than actually required, then the workforce will
consist of underutilized staff. In contrast, if the opposite management is made,
staff may be overstretched, making it hard or impossible to meet production or
service deadlines at the quality level expected. You should ask following questions
for planning right number of employees: (a) How can output be improved through your
understanding about the interrelation between productivity, work organization and
technological development? What does this mean for staff numbers? (b) What
techniques can be used to establish workforce requirements? (c) Have more flexible
work arrangements been considered? (d) How is the staff you need to be acquired?
The principles can be applied to any exercise to define workforce requirements,
whether it be a business start-up, a relocation, or the opening of new factory or
office. 2. To retain highly skilled staff: In this competitive world it is very
important for the organization to retain its skilled staff. Thus organizations
should do following: (a) Monitor the extent of resignation (b) Discover the reasons
for it (c) Establish what it is costing the organization (d) Compare loss rates
with other similar organizations. Without understanding of above points, management
may be unaware of how many good quality workers are being lost. This will cost the
organization directly through the bill for separation, recruitment and induction,
but also through a loss of long-term capability. 3. To manage an effective
downsizing programme: This is a very common issue for managers but yet the most
difficult one. A downsizing strategy reduces the workforce for improving
profitability or reducing costs. For this you need to answer following question:
How is the workforce to be cut painlessly, while at the same time protecting the
long-term interests of the organization? This is difficult for every manager
because of business necessities and at the same time employee anxieties. Such an
analysis can be presented to senior managers so that the cost benefit of various
methods of reduction can be assessed, and the time taken to meet targets
established. Why do Firms Downsize? · Reduce layers of management to increase
decision making speed and get closer to the customer. · Sharpen focus on core
competencies of the firm, and outsource peripheral activities. · Generate positive
reactions from shareholders in order to improve valuation of stock price. ·
Increase productivity. But before downsizing effects of it should also be taken
into consideration. It has mixed
MBA Semester III

MU0013

effects on firm performance that is there may be some short-term costs savings, but
longterm profitability and valuation not strongly affected. Firm’s reputation as a
good employer suffers. Forexample, Apple Computer’s reputation as good employer
declined after several layoffs in 1990s. Downsizing forces re-thinking of
Employment Strategy i.e. Lifelong employment policies may not be credible after a
downsizing. For example, IBM abandoned lifelong policy after several layoffs in
early 1990s. 4. To find out the procedure for recruiting the upcoming managers:
Many senior managers are troubled by this issue. They have seen traditional career
paths disappear. They have had to bring in senior staff from elsewhere. But they
recognise that while this may have dealt with a short-term skills shortage, it has
not solved the longer term question of managerial supply: what sort, how many, and
where will they come from? To address these questions you need to understand: (a)
The present career system (including patterns of promotion and movement, of
recruitment and wastage) (b) The characteristics of those who currently occupy
senior positions (c) The organization’s future supply of talent. Now see Figure 1.1
which summarizes the various objectives of Human Resource Planning (HRP).

Summary of Objectives of HRP

Q5. Write a short note on employee orientation programme. Answer: Employee

orientation programs are given to new employees at a place of business. When a new
employee is hired, the employee orientation program offers a business its best
chance at shaping an employee's work practices and imprinting its corporate
business philosophy onto the new employee's mind, because a new hire is eager to
make a good impression. The programs can last from several hours to several days.
MBA Semester III

MU0013

The process of new employee orientation strengthens the new employee’s relationship
with your organisation. It fuels their enthusiasm and guides their steps into a
long term positive relationship with the organisation. Effective orientation
programs – where new employees are introduced to a company's mission and begin to
feel they are a vital part of the team – are key to sparking early productivity and
improving employee retention. "In today's labor market, new employees know they can
quit and start somewhere else tomorrow," says Mel Kleiman, author of Hire Tough,
Manage Easy – How to Find and Hire the Best Hourly Employees. Done poorly, their
new employee orientation will leave your new employees wondering why on earth they
walked through your door. "Orientation should be geared toward reinforcing new
employees' 'buying decisions.' The focus must be on convincing them they made the
right choice when they signed on." Good employee orientation programs: Make a
good first impression. Make new employees feel welcome and valued as key players
on the team. Explain the mission/purpose of the company and the job so employees
can see the big picture. Assure them they will be carefully and patiently trained
— not thrown in to "sink or swim." Familiarize employees with rules, policies and
procedures. Help employees adapt to their new surroundings, as well as learn who
all the players are and how they work together. Establish friendly relationships
among co-workers and managers. Ensure new employees have all the information and
tools they need to do their jobs. Motivate employees to succeed as an integral
part of the team. Develop the long-term commitment you want from every member of
your workforce. Tell them what's in it for them — in sum, reinforce their "buying
decision." Without a well-planned orientation, new employees end up confused. The
employer's lack of direction and disorganized approach rapidly diminishes the
employee's commitment to the company. Many new hires question their decision to
change companies by the end of their first day. Their anxieties are fueled by
mistakes that companies often make during that firstday new employee orientation
program. The common mistakes include: overwhelming the new hire with facts,
figures, names and faces packed into one eight hour day; showing boring
orientation videos; providing lengthy front-of-the-room lectures; and failing
to prepare for the new hire; providing no phone, no e-mail, no computer, and no
work. Before you completely revamp your present new employee orientation process,
ask yourself the following question: "What do we want to achieve during new
employee orientation? What first impression do we want to make?" There is no doubt
that a company’s positive first impressions can cement the deal for a newly
recruited employee.
MBA Semester III

MU0013

Q6. What are the reasons for implementing the human resource scorecard? Answer:
Understanding the Reason for Implementing the Human Resource Scorecard In this era
of tough competition it is very important for the firms to have more effective HR
management systems. It is a challenge for managers to make HR a strategic asset.
The HR scorecard is an instrument that enables them to improve the HR function in
the organization. It helps to periodically assess effectiveness of HR functions in
a wide range of areas, from recruiting to terminations, and including training and
development, communications, and legislative compliance. But implementing effective
audit systems for human resource is a difficult task and demands the existence of a
unified framework to guide the HR managers. Sometimes firms under-invest in their
people and at times invest in the wrong ways. Another difficulty is, managers
cannot prepare the projected cash flows for considering the future productivity of
present inputs as in case of financial assets but at the same time they are not
willing to take the risk. So the best way is to prepare the Balanced Scorecard with
sound measurement strategies which are able to link HR functions, activity and
investment with the overall business strategy. The HR scorecard framework was
specifically designed for following reasons:  It reinforces the distinction
between HR doables and deliverables: The good audit system must clearly
differentiate between the deliverables that influence strategy implementation and
do-ables that do not. Policy implementation is not a deliverable until it has a
positive effect on the HR architecture and creates the right employee behaviours
that drive strategy implementation. An appropriate HR measurement system will
encourage HR professionals to think both strategically as well as operationally. It
helps in controlling cost control and value creation: It is the responsibility of
HR to minimize the cost of the firm but at the same time, HR has to fulfill its
strategic goal, which is to create value. The HR scorecard helps HR professionals
balance the two and find the optimal solution. It allows HR professionals to drive
out costs where appropriate, but at the same time it helps to create value for the
firm by retaining good human resources. It measures leading indicators: There are
drivers and outcomes in the HR value chain along with leading and lagging
indicators in the overall balanced performance measurement system. It is thus
important to monitor the alignment of the HR decisions and systems that drive the
HR deliverables. Assessing this alignment provides feedback on HR’s progress
towards these deliverables and lays the foundation for effective HR strategies. It
assesses HR’s contribution to strategy implementation: The cumulative effect of the
HR Scorecard’s deliverable measures provides the answer to the question regarding
HR’s contribution to firm performance. All measur es have a credible and strategic
rationale. Managers can use these measures as solutions to business problems.


MBA Semester III 

MU0013

It lets HR managers to manage their strategic responsibilities: The scorecard

motivates the HR managers to focus on exactly how their decisions affect the
successful implementation of the firm’s strategy. This is due to the systemic
nature of the scorecard that is it works on all the aspects. Therefore it provides
a clear framework. It encourages flexibility and change: In this era of ever
changing business environment, standardized patterns in any aspects do not work
well. The changes are required even in the HR policies with the change in business
environment. The basic nature of the scorecard with its causal emphasis and
feedback loops helps fight against measurement systems getting too standardized.
Every decision needs to be taken based on the past and future scenarios. One of the
common problems of measurement systems is that managers tend to get skilled to
obtain the right numbers once they get used to a particular measurement system. The
HR scorecard provides the flexibility and change because it focuses on the firm’s
strategy implementation, which constantly demands change.


MBA Semester III MU0013 –HR Audit Assignment Set- 2 Q1. Write a short note on focus
groups.

MU0013

Answer: Focus groups: A focus group is a form of qualitative research in which a

group of employees are asked about their perceptions, opinions, beliefs and
attitudes towards the culture and policies of the organization. Focus groups are
interviews, but of 6-10 people at the same time in the same group. Questions are
asked in an interactive group setting where participants are free to talk with
other group members. Focus groups are a powerful means to evaluate services or test
new ideas. One can get a great deal of information during a focus group session.
Preparing for the session  Identification of the major objective of the meeting. 
Carefully developing five to six questions.  Planning the session.  Calling
potential members to invite them to the meeting.  About 2-3 days before the
session, call each member to remind them to attend. Planning the session
Scheduling: Plan meetings to be one to 1-1.5 hours long. Over lunch tends to be a
very good time for others to find time to attend. Ground Rules: It’s critical that
all members participate as much as possible, yet the session move along while
generating useful information. Because the session is often a one-time occurrence,
it’s useful to have a few, short ground rules that sustain participation, yet do so
with focus. Consider the following three ground rules: a) keep focused, b) maintain
momentum and c) get closure on questions. Membership: Focus groups are usually
conducted with 6-10 members who have some similar nature, e.g., similar age group,
status in a program, etc. Select members who are likely to be participative and
reflective. Attempt to select members who don’t know each other. Plan to record the
session with either an audio or audio-video recorder. Don’t count on your memory.
If this isn’t practical, involve a co-facilitator who is there to take notes.
Facilitating the session Major goal of facilitation is collecting useful
information to meet goal of meeting.  Introduce yourself and the co-facilitator,
if used.  Explain the means to record the session.  Carry out the agenda
MBA Semester III      

MU0013

Carefully word each question before that question is addressed by the group. Allow
the group a few minutes for each member to carefully record their answers. Then,
facilitate discussion around the answers to each question, one at a time. After
each question is answered, carefully reflect back a summary of what you heard.
Ensure even participation. While closing the session, tell members that they will
receive a copy of the report generated from their answers, thank them for coming,
and adjourn the meeting. Immediately after session  Verify if the tape recorder,
if used, worked throughout the session.  Make any notes on your written notes,
e.g., to clarify any scratching, ensure pages are numbered, fill out any notes that
don’t make senses, etc.  Write down any observations made during the session. For
example, where did the session occur and when, what was the nature of participation
in the group? Were there any surprises during the session?

Q2. Explain the different types of competencies with examples. Answer: 1.

Communication Skills: This does not necessarily refer to the English speaking
skill. There are various factors leading to effective communication. For details
refer to Table 1. Table 1: Communication skill as a core competency

2. Interpersonal Relationship Building Ability: This deals with how well a person
is able to socialize and make a close bond with others around him. The behavioural
aspects and elements related to interpersonal relationship building ability re
discussed in Table 2
MBA Semester III

MU0013

Table 2: Interpersonal Relationship Building Ability as a core competency

3. Negotiating Ability: The need for this skill arises when two or more parties
argue on a common issue and each party want a conclusion on it prefers. The
behavioural aspects and elements related to negotiating ability are discussed in
Table 3. Table 3: Negotiating Ability as a core competency

4. Critical Thinking Ability: The business environment is full of uncertainties and

surprises. One must have the ability to think and act under unforeseen and critical
situations. The behavioural aspects and elements related to critical thinking
ability are discussed in Table 4. Table 4: Critical Thinking Ability as a core
competency

5. Data Management Ability: The documents and files possessed by a company are of
great importance. The information has to be managed effectively. The behavioural
aspects and elements related to data management ability are discussed in Table 5.
MBA Semester III

MU0013

Table 5: Data Management Ability as a core competency

6. Forecasting Ability: As already said, the business environment is highly

uncertain. One has to possess the ability to foresee future changes and
competitions. The behavioural aspects and elements related to forecasting ability
are discussed in Table 6. Table 6: Forecasting Ability as a core competency

7. Creativity: It is not only the quality of the product that plays a role in the
market. It is also how different our products are compared to that of our
competitors, which attracts our customers. This requires creativity. This will also
bring about a huge difference in the way regular day-to-day activities are carried
out. The behavioural aspects and elements related to creativity are discussed in
Table 7. Table 7: Creativity as a core competency
Competency Creativity Behavioral aspect Ability to think differently A keen
sense of colors Ability to present differently Courage to accept and present
the ideas Elements Accepting creativity Practicing creativity Encouraging
creativity

8. Business Environment Understanding: Success is possible in business only if

proper understanding and analyses of the happenings of the business environment is
made. The behavioural aspects and elements related to business environment
understanding are discussed in Table 8.
MBA Semester III

MU0013

Table 8: Business environment understanding as a core competency

9. Coordination/Partnership Skill: Any business cannot survive if people were to

work as individuals. It requires people of one department to coordinate and work
with people of other department. Also people of the same department must be able to
coordinate among themselves and also with external environment. The behavioural
aspects and elements related to coordination/partnership skill are discussed in
Table 9. Table 9: Coordination/Partnership Skill as a core competency

10. Instruction Following Ability: However flat today’s organizations have become;
there still exists a certain amount of hierarchy. Employees must be able to receive
orders from their superior and execute the instructions correctly. The behavioural
aspects and elements related to instruction following ability are discussed in
Table 10. Table 10: Instruction Following Ability as a core competency

11. Knowledge Updating: Any employee must be in a position to update his/her

knowledge with regard to the happenings of the outside world. This is absolutely
necessary for servicing in today’s business environment. The behavioural aspects
and elements related to knowledge updating are discussed in Table 11.
MBA Semester III

MU0013

Table 11: Knowledge Updating as a core competency

12. Presentation Skill: Employees in any organization will have to present their
reports or analyses to people within the organization and also the others outside.
The behavioural aspects and elements related to presentation skill are discussed in
Table 12. Table 12: Presentation skill as a core competency

13. Analyzing/Problem Solving Ability: When faced with unexpected situations, the
employee must be able to tackle it. In case any problem arises; the employee must
be able to solve it. The behavioural aspects and elements related to analyzing/
problem solving ability are discussed in Table 13. Table 13: Analyzing/ Problem
solving ability as a core competency

14. Counseling Ability: When employees have some problem, naturally their
performance in the organization goes done. The problem could be in their personal
life or in the organization. Whatever be the case, the employees require a good
counselor who can lend their support to the employees with problems. The
behavioural aspects and elements related to counseling ability are discussed in
Table 14.
MBA Semester III

MU0013

Table 14: Counseling ability as a core competency

15. Other Competencies: Apart from these competencies, there are others that are
specific to the job done. The requirements of those competencies vary depending
upon the time and situation. Those skills are: - Financial forecasting ability -
Customs handling ability - Computer knowledge - Customer handling ability, etc.
While preparing the report of HR audit, you must always analyse first if all the
above discussed core competencies have been taken an account of or not. The
elements related to each of the competency should have been duly adhered to and the
behavioural aspects should have been properly marked.

Q3. What are the trends in HR audit seen in Indian scenario? Answer: An HR audit is
like an annual health check. It plays a vital role in instilling a sense of
confidence in the management and the HR functions of an organisation. – E J Sarma
The same way as a doctor would first diagnose the ailment and then suggest an
appropriate customised medication for all his patients, an HRD auditor should first
diagnose the opportunities and problems, identify deficiencies in the strategy,
structure, staff and systems of the HRD process in an organisation and then
recommend steps for improvement. He should base his recommendations on the future
responsibilities of the HRD department as derived from the business plans of the
company he is working for. In India, the prevalence of HR Audit has been quite
popular since 1970s. It first promulgated by BHEL (Bharat Heavy Electrical Ltd), a
leading public enterprise, during the financial year 1972-73. Later it was also
adopted by other leading public and private sector organisations in the subsequent
years. Some of them are Hindustan Machine Tools Ltd. (HMTL). Oil and Natural Gas
Corporation Ltd.(ONGC), NTPC, Cochin Refineries Ltd. (CRL), Madras Refineries Ltd.,
(MRL), Associated Cement Company Ltd.(ACC) and Infosys Technologies Ltd.(ITL).
Adaptability of various models, especially Lev and Schwartz model and Flamholtz
model and discount rate fixation and disclosure pattern i.e. either age wise, skill
wise etc., in BHEL,
MBA Semester III

MU0013

SAIL, MMTC (Minerals & Metals Trading Corporation Of India Ltd.) HMTL, NTP, etc.,
made HR auditing even more popular in the country. All said and done though, let us
mark the fact here despite this all, there has been no uniformity among Indian
enterprises regarding HRA disclosure. HRD audits of different organisations have
revealed different things. Let is make it clear at this point only that the names
of the organisations have been changed because the audit process reveals the
strengths and weaknesses of the organisation are brought to the fore and the
organisations may not like it to get their weaknesses published. It is a point to
mark that, in most of the organisations, great support was given to all HRD
activities by the top management of the organisations. Thus we can for sure make
out the success of an HRD intervention. It may be concluded that human resource
auditing clearly encompasses such elements as the:  Composition of employees
grades;  Productivity of human resources;  Programmes for employee development; 
Personnel payments to the employees and expenses on social welfare per employee; 
Human asset valuation;  Human assets vis-a-vis total assets;  Value of human
assets in an organization.

Q4. Elaborate on the need for Human Resource Audit. Answer: Human Resource Audit is
a systematic assessment of the strengths, limitations, and developmental needs of
its existing human resources in the context of organizational performance.
(Flamholtz, 1987). Human Resource Audits give an account of the skills, abilities
and limitation of its employees. The audit of non-managers are called skills
inventory while the audit of managers are called management inventories. Basically,
the audit is an inventory that catalogues each employee’s skills and abilities
which enables the planners to have an understanding of the organisation’s work
force. (William B. Werther, Jr. and Keith Davies). o o o o o To make the HR
function business-driven. Change of leadership. To take stock of things & to
improve HRD for expanding, diversifying, & entering into a fast growth phase. For
growth & diversification. For promoting professionalism among employees & to switch
over to professional Management.
MBA Semester III o o o o o o o

MU0013

To find out the reasons for low productivity & improve HRD strategies.
Dissatisfaction with a particular component. To become employer of choice. To
ensure effective utilization of human resources. To review compliance with tons of
laws and regulations. To instill a sense of confidence in the human resource
department that it is wellmanaged and prepared to meet potential challenges and
opportunities. To maintain or enhance the organization’s reputation in a community.

For example, while many other PSUs stood losing on the profitability grounds, HR
auditing at Bharat Heavy Electricals Limited (BHEL) ensured that the company
remained a profit making heavy engineering public sector company, and thus
maintained its reliability among the stakeholders.

Q5. Explain how audit of training is conducted. Answer: Audit of Training: Training
is a subsystem of an organization. It ensures that randomness is reduced and
learning or behavioral change takes place in structured format. The main objective
of training and development division is to make sure the availability of a skilled
and willing workforce to an organization. It improves the productivity of employees
and thereby increases the performance of the organisation. Audit of Training
suggests future improvements based on past activities measurement. The training
indicators are:          the procedures followed and the frequency with
which personnel training needs are analyzed; the criteria followed to list the
content of the training programs; the evaluation criteria of the efficacy of the
training programs; The procedure by which training needs are analyzed the
percentage of the HR budget dedicated to training; The situation at which training
is being conducted like Employee orientation, Skills & technical training, Coaching
and Counseling the training conducted at the orientation of the employees the
average number of hours of training per employee; the percentage of employees that
participate in training programs by work place categories.
MBA Semester III

MU0013

Q6. Elaborate on the different aspects work place policies and practices to be
considered by the employers. Answer: Workplace Policies and Practices Many smaller
companies do not like writing certain aspects of ways of conducting business. For
such companies, it is mere formality and they do not appreciate “people-oriented
culture.” Though it should be avoided because it is patently illegal because laws
require that companies should mention very clearly the policies about guaranteeing
specific protections to employees 1. Safeguarding employee information Employees’
personal information should be safeguarded. Separate files should be maintained for
personal information as contrasted with employment related information. Main
objective behind it to ensure that while deciding the employee’s career with the
company his personal information should not be considered. For example while
deciding whether to promote employee or not, instead of his personal information
like his religion, his work experience and capabilities should be considered. The
employment decision needs to be made on work/performance-related information, not
the personal information. Relevant materials in the work file include information
on the employee’s education, related work experience, and performance evaluations
in other positions within the company. An audit can clarify what information must
be segregated and the laws that govern employees’ access to and copying of their
files. Other employee information that must be safeguarded includes any materials
that contain medical information. 2. Employee performance management An audit can
review company’s job descriptions for compliance (i.e., to determine whether the
descriptions list the essential functions of the job). Various legal issues can
arise due to performance related problems of employees. Audit will help in
following improvements and reviews: · A 90-day written standard performance
evaluation form, · An annual written standard performance evaluation form, · A
performance management/performance improvement plan, · A description of the
company’s policy for both voluntary resignation and company-initiated termination,
· Wage and salary administration program, · Bonus/stock option criteria. 3. Safe
work environment Audit practices may also help the companies to know about factors
that contribute to a safe work environment. A company may choose to develop an
audit sheet tailored to a particular issue, such as the company’s zero-tolerance
policy for harassment. For example, a company may wish to review and evaluate its
practices of dealing with inappropriate harassing behaviour in its workplace.
MBA Semester III

MU0013

4 Auditing workplace behaviors that support legal compliance A safe, dignified, and
respectful work environment is not only mandated by the law, but also increases
motivation and productivity of the employees. An example of review of business
practices used to deal with allegations of harassment safe working environments
should be considered especially for the females in the offices so as to make them
feel confident and concentrate on work is shown as under:

Tailored Reviews can be added to the General Audit Review of Business Practices
used to deal with Allegations of Harassment Method of Review Area of Review Walk-
through referring to the HR audit report: Are there posters visible throughout the
company specifically prohibiting such behaviors? Review of new employee: Does
each employee receive a copy of the policy upon package hire? Review of HR files
Does the company redistribute a copy of the policy with a cover memo from a senior
manager clearly stating the company‟s expectation of appropriate and respectful
behaviors? Does the memo contain information regarding to whom/where to report
violations of the policy? Review of policy manual: Does the company have a
clearly published and posted employee handbook (both) non-retaliation policy?
Review of HR files: Are reports of harassment or other inappropriate interviews
behaviors investigated promptly by HR and handled discreetly? Review of HR files:
Is there documentation representing such investigations with the results? Review
of HR files: Is there documentation indicating various forms of sanction up to and
including termination if an investigation indicates that inappropriate behaviors
occurred? Review of files/interviews: Are managers trained on how to handle
reports of harassment? Review of files/interviews: Are employees advised of their
rights and informed on how and where to make a report of inappropriate behaviors?
Review of files/interviews: Do employees indicate a thorough understanding of the
company‟s beliefs regarding safe and respectful workplace behaviors?

------