MS 02 by pinkkimanohar


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									                                                  MS 02
1)Explain the changing role of HRM. Discuss the challenges associated in the HRM in present
business scenario citing examples from the organizations you are familiar with. Briefly describe the
organization you are referring to.

Solution: 1) The Human Resource Management [HRM] function has undergone tremendous change over
the past 25 years. Organizations looked to the "Personnel Department," mostly to manage the paperwork
around hiring people. Human Resource Management has become a strategic function in the success of
contemporary organizations. A primary function of workforce management is to develop internal talent
while reaching out for new skills (Creelman, 2005). Current market trends, politics, technology, skill level,
and future growth potential are internal and external factors H.R. addresses in creating an adaptive and
flexible workforce while improving and maintaining human capital. This paper will describe the changing
role of Human Resource (HR) management in response to trends in globalization, technology, diversity, e-

Diversity Management is a recent term used to address the growing need to incorporate diverse
representation in today's workforce. Corporations and business professions seek diversity as a goal. They
recognize both the need and the benefit. of multiplicity in a successful organization. A more diverse
organization more closely reflects its marketplace and public in its decisions and in its services (Dorsey,
2005). David L. Dubois, former chair of the Appraisal Institute's Diversity Committee once stated that "the
pursuit of diversity is to harness the strengths of our individual differences for the common good. An
organization should reflect the communities we serve. Within diversity there's a fundamental belief that
inclusion, respect and fair treatment contribute toincreasedproductivity."

HR deals with the moral implications of decisions on a daily basis. A Code of Ethics is advocates
professional value and enhances credibility in service and performance. Implementing a code of ethics...

2)Discuss the importance of job analysis. Describe the methods of job analysis being
followed in an organization you are acquainted with. Briefly describe the organization you
are referring to.

Solution : 2) Job analysis helps in analyzing the resources and establishing the strategies to
accomplish the business goals and strategic objectives. Effectively developed, employee job
descriptions are communication tools that are significant in an organization's success. The main
purpose of conducting job analysis is to prepare job description and job specification which helps to
hire right quality of workforce. Job Analysis can be used in training to identify or develop, training
content, and assessment tests to measure effectiveness of training, equipment to be used in
delivering the training and methods of training.

Job Analysis can be used in compensation to identify or determine: skill levels, compensable job
factors, work environment, responsibilities and required level of education.

Job Analysis can be used in selection procedures to identify or develop job duties that should be
included in advertisements of vacant positions, appropriate salary level for the position to help
determine what salary should be offered to a candidate, minimum requirements for screening
applicants, interview questions, selection tests/instruments (e.g., written tests; oral tests; job
simulations), applicant appraisal forms and orientation materials for new hires

Job Analysis can be used in performance review to identify or develop goals and objectives,
performance standards, evaluation criteria, length of probationary periods, and duties to be

An ideal job analysis should include

Duties and Tasks: The basic unit of a job is the performance of specific tasks and duties. This
segment should include frequency, duration, effort, skill, complexity, equipment, standards, etc.
Environment: This segment identifies the working environment of a particular job. This may have
a significant impact on the physical requirements to be able to perform a job.

Tools and Equipment: Some duties and tasks are performed using specific equipment and tools.
These items need to be specified in a Job Analysis.

Relationships: The hierarchy of the organization must be clearly laid out. The employees should
know who is under them and who they have to report to.

Requirements: The knowledge, skills, and abilities required to perform the job should be clearly

There are several ways to conduct a job analysis, including: interviews with incumbents and
supervisors, questionnaires (structured, open-ended, or both), observation, critical incident
investigations, and gathering background information such as duty statements or classification

It is important for organizations to hire the right candidates who suit their work environment and
requirements otherwise they will end up stagnating. It also important for the job seekers to pick up
a job that suits their personality and interest as the first step will play a deciding role in shaping
their career and position in life. This can be possible only when job seekers and organizations are
able to communicate their requirements to each other., the world’s leading
International job portal which offers an interactive medium to job seekers and providers in the
domain of plastic industry worldwide.

3)Explain the performance appraisal process. Describe the performance appraisal method
and its merits & demerits in an organization you are familiar with. Briefly describe the
organization you are referring to.

Solution: 3)

The first step in the process of performance appraisal is the setting up of the standards which will
be used to as the base to compare the actual performance of the employees. This step requires
setting the criteria to judge the performance of the employees as successful or unsuccessful and the
degrees of their contribution to the organizational goals and objectives. The standards set should be
clear, easily understandable and in measurable terms. In case the performance of the employee
cannot be measured, great care should be taken to describe the standards.

Once set, it is the responsibility of the management to communicate the standards to all the
employees of the organization.

The employees should be informed and the standards should be clearly explained to the. This will
help them to understand their roles and to know what exactly is expected from them. The standards
should also be communicated to the appraisers or the evaluators and if required, the standards can
also be modified at this stage itself according to the relevant

The most difficult part of the Performance appraisal process is measuring the actual performance of
the employees that is the work done by the employees during the specified period of time. It is a
continuous process which involves monitoring the performance throughout the year. This stage
requires the careful selection of the appropriate techniques of measurement, taking care that
personal bias does not affect the outcome of the process and providing assistance rather than
interfering in an employees work.


The actual performance is compared with the desired or the standard performance. The comparison
tells the deviations in the performance of the employees from the standards set. The result can
show the actual performance being more than the desired performance or, the actual performance
being less than the desired performance depicting a negative deviation in the organizational
performance. It includes recalling, evaluating and analysis of data related to the employees’


The result of the appraisal is communicated and discussed with the employees on one-to-one basis.
The focus of this discussion is on communication and listening. The results, the problems and the
possible solutions are discussed with the aim of problem solving and reaching consensus. The
feedback should be given with a positive attitude as this can have an effect on the employees’
future performance. The purpose of the meeting should be to solve the problems faced and
motivate the employees to perform better.


The last step of the process is to take decisions which can be taken either to improve the
performance of the employees, take the required corrective actions, or the related HR decisions like
rewards, promotions, demotions, transfers etc.

Merits of Performance Appraisal
If appraisal is to be effective, staff must see the process attempting to meet their needs, otherwise
the system will not work. This means Heads of Department do need to form an overview of the
issues raised by their staff and if appropriate feed these into the planning process. Appraisal should
result in:

Benefits for the individual:
• Gaining a better understanding of their role
• Understanding more clearly how and where they fit in within the wider picture
• A better understanding of how performance is assessed and monitored
• Getting an insight into how their performance is perceived
• Improving understanding of their strengths and weaknesses and developmental needs
• Identifying ways in which they can improve performance
• Providing an opportunity to discuss and clarify developmental and training needs
• Understanding and agreeing their objectives for the next year.
• An opportunity to discuss career direction and prospects.

Benefits to the line manager/supervisor/team leader:
• Opportunities to hear and exchange views and opinions away from the normal pressure of work
• An opportunity to identify any potential difficulties or weaknesses
• An improved understanding of the resources available
• An opportunity to plan for and set objectives for the next period
• An opportunity to think about and clarify their own role
• An opportunity to plan for achieving improved performance
• An opportunity to plan for further delegation and coaching
• An opportunity to motivate members of the team.

Benefits to the organisation:
• A structured means of identifying and assessing potential
• Up-to-date information regarding the expectations and aspirations of employees
• Information on which to base decisions about promotions and motivation
• An opportunity to review succession planning
• Information about training needs which can act as a basis for developing training plans
• Updating of employee records (achievements, new competencies etc)
• Career counselling
• Communication of information
4)What is performance coaching? Discuss the phases of performance coaching and its
importance in organizations.

Solution 4) Performance coaching is:

* A series of conversations that are designed and conducted to enhance someone's well being or

* A process that both parties enter into willingly with clear expectations and agreements on how the
process will work.

* A relationship, or partnership, that allows anything to be asked, said or considered.

* Based on the premise that performance in any field can be enhanced by creating a partnership
and setting aside time to explore in conversation how performance might be taken to a new level.

Performance coaching can be described as a series of guided conversations that enable the
“coachee” to discover and implement personal solutions to challenging issues or areas of
performance. These solutions, because they are intrinsic to the “coachee,” are more likely to
succeed and endure than solutions imposed externally

Performance coaching and its importance in organizations.
• improving their performance
• successfully integrating coaching with their own leadership style
• transitioning successfully, into new more demanding roles and responsibilities
• evaluating long term direction and immediate next steps for personal development
• managing challenging times
• work more effectively as a team
• create an action plan for the short and long term development of the team
• create conditions for sustained high performance
• develop a performance culture which leads to better performance and greater profits better use of
people, skills and resources
• get the most out of people in a tough, competitive, ever-changing environment

5. Discuss the compensation function and objectives. Describe the components of wage
structure of your own organization or any organization you are familiar with. Briefly
describe the organization you are referring to

Solution 5) Today there is a lot of talk about compensation, its cost to the organization and the
company's return on its compensation investment. As a result, a variety of new pay systems have
been developed, each with its own objectives, benefits and risks. Some companies have already
installed new pay plans, and many more are considering it.

Strategic compensation planning allows an organization to focus on its strategic objectives and
develop a comprehensive plan, considering base pay, short- and long-term incentives, benefits and
growth opportunities. This kind of planning helps ensure that the compensation system will support
the organization's long-and short-term objectives without overlap, which would have more than one
pay plan driving the same objectives.
An organization's compensation program focuses on two major objectives. First, it must identify the
right pay programs to recognize and reward desired behaviors. Second, it must decide how to
organize work procedures to make the best use of available resources

Basic wages/Salaries:-

These refers to the cash component of the wage structure based on which other elements of
compensation may be structured. It is normally a fixed amount which is subject to changes based
on annual increments or subject to periodical pay hikes. It is structured based on the position of an
individual in the organization and differs from grades to grades.

Dearness allowance:-

The payment of dearness allowance facilitates employees and workers to face the price increase or
inflation of prices of goods and services consumed by him. The onslaught of price increase has a
major bearing on the living conditions of the labour. The increasing prices reduce the compensation
to nothing and the money's worth is coming down based on the level of inflation.

The payment of dearness allowance, which may be a fixed percentage on the basic wage, enables
the employees to face the increasing prices.


The bonus can be paid in different ways. It can be fixed percentage on the basic wage paid annually
or in proportion to the profitability. The Government also prescribes a minimum statutory bonus for
all employees and workers.

There is also a bonus plan which compensates the Managers and employees based on the sales
revenue or Profit margin achieved. Bonus plans can also be based on piece wages but depends upon
the productivity of labour.


Commission to Managers and employees may be based on the sales revenue or profits of the
company. It is always a fixed percentage on the target achieved. For taxation purposes, commission
is again a taxable component of compensation.

The payment of commission as a component of commission is practised heavily on target based
sales. Depending upon the targets achieved, companies may pay a commission on a monthly or
periodical basis.

Mixed plans:-

Companies may also pay employees and others a combination of pay as well as commissions. This
plan is called combination or mixed plan. Apart from the salaries paid, the employees may be
eligible for a fixed percentage of commission upon achievement of fixed target of sales or profits or
Performance objectives.

Nowadays, most of the corporate sector is following this practice. This is also termed as variable
component of compensation.

Piece rate wages:-

Piece rate wages are prevalent in the manufacturing wages. The laborers are paid wages for each of
the Quantity produced by them. The gross earnings of the labour would be equivalent to number of
goods produced by them.

Piece rate wages improves productivity and is an absolute measurement of productivity to wage
structure. The fairness of compensation is totally based on the productivity and not by other
qualitative factors.

The GANTT productivity planning and Taylor's plan of wages are examples of piece rate wages and
the related consequences.

Sign on Bonuses:-

The latest trend in the compensation planning is the lump sum bonus for the incoming employee. A
person who accepts the offer, is paid a lump sum as a bonus.

Even though this practice is not prevelant in most of the industries, Equity research and investment
banking companies are paying this to attract the scarce talent.

Profit sharing payments:-

Profit sharing is again a novel concept nowadays. This can be paid through payment of cash or
through ESOPS. The structuring of wages may be done in such a way that, it attracts
competitiveness and improved productivity.

Profit sharing can also be in the form of deferred compensation at the time of retirement. At the
time of retirement the employees may be paid a lump sum or retiral benefits.

Fringe benefits:-

The provision of fringe benefits does not attract any explanation. These includes.,

a) Company cars
b) Paid vacations
c) Membership of social/cultural clubs
d) Entertainment tickets/allowances.
e) Discounted travel tickets.
f) Family vacation packages.


Employees, depending upon their gradations in the organization may get reimbursements based on
the Expenses incurred and substantiated. Certain expenses are also paid based on expenses
incurred during the course of business.

In many cases, employers provides advances to the employees for incurring certain expenses that
are incurred during the course of the business.

Some examples are.,

a) Travel expenses.
b) Entertainment expenses
c) Out of pocket expenses
d) Refreshments expenses during office routine outside office premises.

Sickness benefits/pregnancy:-

The increasing social consciousness of corporates had resulted in the payment of sickness benefit to
the Employees of companies. This also includes payments during pregnancy of women employees.

The expenses incurred due to injury or illness are compensated or reimbursed to the employees. In
certain companies, the death of an employee is compensated financially.

Companies are also providing supporting financial benefits to the family of the bereaved employees.
However, companies covering these cost through appropriate insurance policies like, Medical and
life insurance.

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