Master of Business Administration- MBA Semester 1

MB0043 – Human Resource Management

Assignment Set- 1 (60 Marks)

Q.1 Trace the phases of evolution of human resource management.

Answer:

The historical background to the management techniques of human resources are in vogue since ancient
times. It’s only in the past 100 odd years that the techniques and study of human behavior at work has
become formal and structured with certain basic practices established as core and a host of other
practices left to each organization to design and implement as per their individual business driven
practices.

As per Fisher, Schonfeldt and Shaw, in their book titled Human Resources Management, they have
characterized the history of HRM as having evolved through four broad phases, the Craft system, the
scientific system, the human relations approach and the prevalent organizational science-human
resources approach.

The Craft system refers to early trends noticed in Egypt and Babylon, where skills based training was
provided to people to ensure a steady flow of craftsmen required to build huge monuments. By the 13th
century, subsequently the trend was noticed in Europe and later craft guilds evolved to ensure not only
the skill acquisition but regulate the conditions of employment, level of skill and improved production
techniques. Most relevant in the domestic industry where generations of skilled workers trained and
became experts in a particular skill. The Scientific Management approach was a key part of the industrial
revolution typical of the nineteenth and early twentieth century. It was instilled in the principles of mass
production and organization of work – simple work skills and supervisory/managerial skills. This rapidly
emerged as the assembly line approach to managing workflow, which later Fredrick Taylor (1856-1915)
pioneered based on the philosophy that employees wanted to be used efficiently and money being the
primary motivator.

Over a period of time this was proved wrong as employee dissent grew and union issues surfaced. It was
during this phase that employee welfare as a key HR practice emerged which redressed employee issues
like recreational facilities, medical program and employee grievance systems. The Human Relations
approach was an outcome of the famous studies undertaken by US social scientist Elton Mayo and Fritz
Roethlisberger at the Western Electric’s Hawthorne plant in Chicago. The Hawthorne Studies: As
described in virtually every book written about management, the human relations or behavioral school of
management began in 1927 with a group of studies conducted at the Hawthorne plant of Western
Electric, an AT&T subsidiary. Curiously, these studies were prompted by an experiment carried out by the
company’s engineers between 1924 and 1932.

Following the scientific management tradition, these engineers were applying research methods to
answer job-related problems. Two groups were studied to determine the effects of different levels of
illumination on worker performance. One group received increased illumination, while the other did not. A
preliminary finding was that, when illumination was increased, the level of performance also increased.
Surprisingly to the engineers, productivity also increased when the level of illumination was decreased
almost to moonlight levels. One interpretation made of these results was that the employees involved in
the experiment enjoyed being the centre of attention; they reacted positively because management cared
about them.

The reason for the increase in the production was not the physical but the psychological impact of the
employee’s attitude towards the job and towards the company. Such a phenomenon taking place in any
research setting is now called the Hawthorne effect. As a result of these preliminary investigations, a team
of researchers headed by Elton Mayo and F.J. Roethlisberger from Harvard conducted a lengthy series of
experiments extending over a six year period. The conclusions they reached served as the bedrock of
later developments in the human relations approach to management. Among their key findings were the
following:

• Economic incentives are less potent than generally believed in influencing employees to achieve
high levels of output.

• Leadership practices and work-group pressures profoundly influence employee satisfaction and
performance.

• Any factor influencing employee behavior is embedded in a social system. For instance, to
understand the impact of pay on performance, you also have to understand the climate that exists
in the work group and the leadership style of the superior. Leadership Style and Practices: As a
consequence of the Hawthorne Studies, worker attitudes, morale, and group influences became a
concern of researchers. A notable development of the nature occurred shortly after World War II
at the University of Michigan. A group of social scientists formed an organization, later to be
called the Institute for Social Research, to study those principles of leadership that were
associated with highest productivity.

Finally the Organizational Sciences approach to human resources management has brought the focus to
the scientific process within organizations that can impact employee experience, and less on just the
individual. Today’s organizations focus on building their processes and policies and compete to emerge
as ‘preferred employers’ (best employer). It is not uncommon for competing organizations to woo the
employees through advertising more and better employee-friendly initiatives like work-from-home jobs,
careers for married couples, global work assignments and internal job postings and world class workplace
infrastructures from in-campus cricket grounds to gymnasiums for employee wellbeing. This is the HR that
we now see around us.
Q2. Explain the various techniques and methods used in selecting employees.

Answer:

There is no shortcut to fair and accurate evaluation of a candidate. As mentioned earlier, the hiring
procedures are therefore, generally long and multiple. Organizations are constantly evaluating the
selections tools they use to hire and keep innovating to ensure they hire quality candidates.

The following are popular methods commonly used:

1. Initial or preliminary interview

2. Application blank or blanks.
3. Check of references.
4. Skill / Psychological tests.
5. Employment interview
6. Approval by the manager.
7. Medical examination.
8. Induction or orientation.

1. Preliminary Interview:

The more non-selective the recruitment program, the more likely it is that
a preliminary interview will be required. This initial interview is usually quite short and has as its
object the elimination of the obviously unqualified. In many instances it is a over-telephone / short
face-to-face interview conducted at a desk. The facts and impressions collected are of the type
generally obtained in an initial interview. Many firms do not bother to initiate any paperwork at this
early stage. If the applicant appears to have some chance of qualifying for existing job openings,
he or she is given the application blank to complete.

2 Application Blank:

An application blank is a traditional, widely accepted template for getting information from a
prospective applicant. This enables the recruiter to qualify the candidate to the next level in the
selection process and is used extensively subsequently during the selection process. The blank
aids in the interview by indicating areas of interest and discussion. It is a good means of quickly
collecting verifiable basic historical data from the candidate. It also is a excellent document to
share with the manager and with the interviewers and is a useful device for storing information
for, later reference. These templates generally carry information on biographical data, educational
attainment, work experience, salary, personal items, and other items such as names and
addresses of previous employers, references etc.

3 Check of References:

The use of references is common in most selection procedures. It involves minimum of effort and
time/money. The objective is to obtain evaluation of prior employers and professional colleagues,
 who have known the candidate in a professional capacity. Checks on references are made by
mail or telephone, and occasionally in person, and by using a reference form.

4 Skill & Psychological Tests:

The next step in the procedures outlined above is that of testing. The use of tests is common and
most popular in the lower levels in an organization. It serves as a excellent qualifying criteria and
in jobs that are dependent on a skill or a specific competency it is very useful. The objectivity of
the test results make it especially popular and a fair assessment of the individual.
Most organizations do not use psychological tests. However, there is a direct relationship
between the size and firm and the use of such tests in hiring. Most of the larger companies that
can afford to have a more detailed and accurate selection procedure do utilize some form of
employment testing. It is the smaller company that frequently does not bother with tests, but
places greater reliance upon the interview.

5 Interviewing:

Interviewing is probably the most widely used single method of selection. A substantial amount of
subjectivity, and therefore, unreliability, is to be expected from interviewing when used as a tool of
evaluation. The interview consists of interaction between interviewer and applicant. If handled
properly, it can be a powerful technique in achieving accurate information and getting access to
material otherwise unavailable. Organizations aware of the challenges of using interviews have
come up with a variety of ways to overcome the subjectivity. The use of multiple rounds
of interview (even upto 8-10 rounds) and use of panel interviews are some common work-around.
Four kinds of interviews for selection have been identified. These are:

• Preliminary interview:
These interviews are preliminary screening of applicants to decide
whether a more detailed interview will be worthwhile. The applicant is
given job details during the interview to afford him freedom to decide
whether the job will suit him. This method saves the company’s time and
money.
• Stress interview:
Stress interviews are deliberate attempts to create pressure to observe
how an applicant performs under stress. Methods used to induce stress
range from frequent interruptions and criticism of an applicant’s opinion,
to keeping silent for an extended period of time. The most important
advantage of the stress interview is that helps to demonstrate important
personality characteristics which would be difficult to observe in tension-
free situations. However, stress-inducing must be done carefully by
trained and skilled interviewers.
• Depth interview:
Depth interviews cover the complete life history of the applicant and
include such areas as the candidate’s work experience, academic
qualifications, health interest, and hobbies. It is an excellent method for
executive selection, performed by qualified human resources.
• Patterned interview:
 Patterned interviews are a combination of direct and indirect questioning
of the applicant. The interviewer has certain clues and guidelines to
areas which should be probed deeply and the interview also
encourages the candidate to express the relevant information freely.
After the patterned interview is complete, the interviewer should evaluate the candidate on the basis of
practical experience. According to R.N. McCurry and others, certain factors lead to accurate predictions
of the candidate’s suitability for a particular position.

The factors are:

(1) Basic character traits,
(2) Motivation, and
(3) Emotional maturity.

One advantage of a patterned interview is that systematic and chronological information is obtained, and
hence this yields to statistical analysis.

6. Approval by the Manager:

Following the outlined procedure, we should now be of the opinion that a candidate who has
successfully completed all steps so far should be hired. In executing the recruitment unit
screening functions, the emphasis tends to be more on formal qualifications and general
suitability. When the manager takes over, the emphasis tends to switch toward more specifically
job oriented worker characteristics such as training and relevant past experience.

7. Medical Examination:

The medical examination is an employment step found in most businesses. It can vary from a
very comprehensive examination and matching of an applicant’s physical capabilities to job
requirements to a simple check of general physical appearance and well-being. In the selection
procedure the physical examination has at least three basic objectives. First, it serves to ascertain
the applicant’s physical capabilities. The second objective of the examination is to protect the
company against unwarranted claims under workers’ compensation laws, or against lawsuits for
damages. And the final objective is to prevent communicable diseases from entering the
organization.

8.Induction:

Induction is concerned with introducing or orienting a new employee to the

organization. Organizations could have induction programs of duration of 1-3 days and even up to
1/3/6 months. Common objectives of an Induction program can be listed as covering:

1.Overview of the organization, its history, its hero’s and important stories in the life of the firm so
far like mergers, acquisitions, JV’s, expansion in new countries etc…

2. Organization Vision / Mission and Objectives statement, its structure, hierarchy of the top and
the senior management, structure of the teams/divisions, focus on the division the employee/s
is/are joining.
 3. Overview of the HR policies and processes and introduction to the Facilities team, IT team and
other relevant teams per the location of joining.

4. Handover to the manager and induction at a team level on specificities related to the job and its
responsibilities. Organizations also build processes by which the new employee provides
feedback on the on boarding experience and use this information to improve the Induction
process. In as much as various firms report that over half of their voluntary resignations occur
within the first 6 months, proper orientation can do much to reduce this problem and its
accompanying costs.

Q3. A company is being set up by a group of 3 professionals. The business objective is to sell
mobile phones of a Chinese company which has come up with an inexpensive range of handset
ranging from Rs.1200 to Rs.7000. They need to submit a human resource plan to their investors.
Explain the process of Human Resource planning system for this company, which covers all
important steps needed for HRP.

Answer:

Process of Human Resource Planning

The process of Human Resource Planning is one of the most crucial, complex and continuing
managerial functions which, according to the Tata Electrical Locomotive Company, "embraces
organization development, management development, career planning and succession planning".
It may be rightly regarded as a multi-step process, including various issues, such as:

1. Deciding goals or objectives;

2. Estimating future organizational structure and manpower requirements;
3. Auditing Human resources both internally and externally
4. Planning job requirements and job descriptions/person specifications; and
5. Building a plan

Human Resource Planning is not only done by organizations and corporate bodies. It is a prevalent
practice at different levels:

i) At the country’s national level, it is generally done by the Government and covers items like population
projections, programme for economic development, basic and advanced educational infrastructure and
opportunities, occupational distribution across urban and rural areas, industrial and geographical mobility
of employable people.
ii) At the state level, it may be done by the state government and would include manpower planning for
the needs of the agricultural, industrial and service sector.
iii) At the specific industry level, it would include manpower needs forecast for specific industries, such as
engineering, heavy industries, consumer goods industries, public utility industries, etc.
iv) At the level of the individual organization/ unit, it would relate to the planning of manpower needs for
each department and for various types of personnel.

Human Resource Planning System

The steps in the HRP process is a systematic set of activities carried out in a chronological manner. Each
step needs to be evaluated and debated with all possible information gathered from the external as well
as internal environment. Table 3.1 highlights the steps in the process.

We will attempt to discuss in details the critical steps that are part of the above system.

A. Purpose of Human Resource Planning: Human Resource Planning fulfils individual as well as
organizational goals. What it essentially amounts to is “striking a balance” between the future human
resources needs and the future enterprise needs. And this is done with the clear objective of maximizing
the future return on investment in human resources. And this objective may be laid down for a short-term
(i.e. for one year).

B. Estimating/Forecasting the future Manpower Requirements: the first step in the process is to arrive at
the desired organizational structure at a given point in time. Mapping this structure with the existing
structure helps in identifying the gap in resources requirement. The number and type of employees
needed have to be determined. In addition to the structure there are a number of external factors that
affect this determination. They include business forecasts, competitor strategy, expansion plans,
product/skills mix changes, profit/revenue growth projections, in addition to management philosophy and
government policies. This step also includes an analysis of the external labour/talent environment, its
demographics, demand/supply of the required talent, and cost considerations.

Forecasting provides the basic premises on which manpower planning is done. Forecasting is necessary
for various reasons, such as:
 a) The challenges of the general economic business cycles have an influence on the short-range
and long-run plans of all organizations. These are inflation, wages, prices, costs and raw material
supplies.

b) An expansion / growth initiative might need the business to use additional machinery and
personnel, and a re-allocation of facilities, all of which call for adequate advance planning of
human resources.

c) Changes in management philosophies and top management leadership styles.

d) The use of new technology (such as the introduction of automatic controls, or the mechanization
of materials handling functions) requiring a change in the skills of workers, as well as a change in
the number of employees needed.

e) Very often, changes in the quantity or quality of products or services require a change in the
organization structure. Plans have to be made for this purpose as well.

C. Auditing Human Resources: Once the future human resource needs are estimated, the next step is to
determine the present supply of manpower resources. This is done through what is called "Skills
Inventory". A skills inventory contains data about each employee’s skills, abilities, work preferences and
other items of information which indicate his worth to the company. Skills inventory are also referred to as
competency dictionaries. This information is usually retained as part of the performance management
system with the HR department. This step in the HRP system helps identify the existing profile of the
manpower and its efficiency. It helps highlight where the organization is vs. where it ought to be. The step
concludes with identifying clear gaps in the skills / manpower mix required to meet the upcoming business
objectives.

D. Job Analysis: After having decided how many persons would be needed, it is necessary to prepare a
job analysis. The recorded details of training, skills, qualification, abilities, experience and responsibilities,
etc. as needed for a job are studied. Job analysis includes the preparation of job descriptions and job
specifications.

E. Developing a Human Resource Plan: This step refers to the development and implementation of the
human resource plan, which consists in finding out the sources of labour supply with a view to making an
effective use of these sources. Some important considerations at this point are:

· Specific roles/disciplines being hired for, of them which roles are pivotal for the business
• Competencies and capabilities needed
• Manager vs. employee hiring
• Hire internally vs. External sourcing
 • Planning for new skills through training existing staff vs. hiring new teams
• In case of surpluses, planning for redeployment / reduction in workforce as required
• Succession planning for key positions in the company

Q4. Explain Thayer and McGhee ‘Assessment of training requirement’ model.

Answer:

Organizational analysis determines where training emphasis should be placed within the organization and
is based on the objectives of an organization. Concerning what one should do in analyzing an
organization, McGhee and Thayer (1961) suggest four steps:

1. Stating the goals and objectives of an organization

2. Analyzing the human resources

3. Analyzing efficiency indices

4. Analyzing the organizational climate

The results of these analyses are then compared with the objectives of the organization. These
comparisons point to specific areas in which training is needed. Individual analysis aims at identifying
specific training needs for an individual or group of employees so that training can be tailored to their
needs. This analysis centers on individuals and their specific needs concerning the skills, knowledge, or
attitudes they must develop to perform their assigned tasks. The possible methods or techniques for
individual analysis include performance appraisal, interviews, questionnaires, tests, analysis of behavior,
informal talks, checklist, counseling, critical incidents, recording, surveys, and observations. Group
analysis includes a number of techniques in which a group of well-informed employees discuss different
aspects of the organization, the employees, and the tasks to identify the major discrepancies in achieving
predetermined targets for each of them with a view to assessing training needs as distinguished from
other necessary changes for removing these discrepancies. The major techniques which are used in this
approach are brainstorming, buzzing, card sorts, advisory committee, conferences, problem clinic, role
playing, simulation, task forces, workshops, and so forth.
Many problems exist in an organization, but some problems cannot be solved by training. After a
preliminary needs analysis, which gives probable causes and solutions, the result’s should be verified with
the concerned personnel of the organization to determine whether training is an appropriate action to
solve that problem.

Curriculum Development. This is the most important part in a training programme after a need for training
has been identified. The curriculum specifies what will be taught and how it will be taught. It provides the
framework and foundation of training. The first phase of curriculum development determines what will be
taught, that is, the training content.
Once training needs have been identified and training activities have been decided as part of the solution,
a needs analysis should be done to determine knowledge, skills, and attitude requirements and
performance deficiencies. The needs analysis procedure involves breaking down the "training problem"
into its basic parts in different successive phases to identify and understand the important components in
each phase. Ultimately it leads to identifying and understanding the training content. The training needs
analysis process can be divided into three distinct analytical phases: job analysis, task analysis, and
knowledge and skill-gap analysis

A. Job analysis:
Job analysis is a method of determining major areas of tasks where training may be
needed (see JA Worksheet). It involves the dissecting of a job into its component events
or parts. This analysis allows a trainer to better understand what an employee does in an
organization. Job analysis involves the "task identification" of a particular job
(Wentling,1992). The techniques used in task identification include job questionnaire,
interview, participant observation, work sampling, job audit, and small-group discussion.
The following steps may provide a guide for completion of job analysis:

i. Identify the job that is to be the subject of the analysis. This involves defining the
focal point for the job analysis. It may include the entire job of a group of
employees or only a specific segment of their job.
ii. Prepare a list of tasks which can be done following different approaches and
methods. Four approaches can be used to identify job tasks:
1. Experts identify and list critical tasks,
2. Observations and interviews are conducted with employees,
3. Meetings are held with group representatives, and
4. A tentative list of task is reviewed by employees and their supervisors.
iii. Verify the tasks. The draft list of tasks should be verified by experts, workers, and
supervisors in the analysis process. This can be done through expert review,
small-group discussions, and inter views. When the tasks are verified, a final list
of job tasks is prepared.
iv. Determine the frequency. The workers and super visors can fill in a form
indicating how frequently each task in a job is performed. Different scales such as
"seldom," "occasionally,""weekly to monthly," "daily to weekly," and "daily" can be
used to quantify the intensity of a task accomplished.
v. Determine the importance. Not all tasks are equally important to a job. An
occasionally performed task may be very important. Therefore, a relative
importance rating is useful along with frequency rating. A scale such as
"marginally important," "moderately important," and "extremely important" may be
used to determine the relative importance of the job tasks.
vi. Estimate the learning difficulty. An estimate of learning difficulty is another
dimension of the job-task analysis. It shows the trainer the employees' perception
of difficulty, which maybe different from the trainer's own perception. A scale such
as "easy," "moderately difficult,""very difficult," and "extremely difficult" may be
used to determine the difficulty indices of job tasks.
vii. Calculate the total score. This can be done by simply adding the scores for
frequency, importance, and learning difficulty for each task. The column for total
score in a worksheet indicates the priority tasks for training if these are training
problems.
 viii. Review the findings. The results of the job-task analysis should be discussed with
significant people in the training system, including government leaders,
programme directors, and others interested in related training.

Q.5 Write short notes on:

• Succession Planning
• Career Planning(6.3 and 6.5)

Answer:

Succession Planning

Succession planning involves having senior executives periodically review their top executives and those
in the next-lower level to determine several backups for each senior or key position in the firm. It takes
years of grooming to develop effective senior managers and this is a talent challenge that all
organizations face today. Traditionally succession planning was restricted to senior-level management
positions and this was either an informal or formal process.

Over the years succession planning has established itself as a key HR activity in most organizations with
formal processes that ensure it is reviewed regularly and scientifically. In smaller organizations it is yet an
informal succession planning process where the individual manager identifies and grooms his or her own
successor.

Succession planning involves an examination of strategic (long-range) plans and HR forecasts for all
identified key positions in an organizations. It includes positions that are critical for the business and for its
continuity and not just the senior level positions. It includes a review of the data on all potential candidates
who might be able to move to these positions either right-away or in the near future. The objective is to
identify employees with potential and increase managerial depth as well as promoting from within the
company. This is usually an exercise undertaken one a year and usually runs parallel to the performance
appraisal process. This exercise is carried out by the senior management team of the unit/subsidiary and
facilitated by the HR team. Usually, committees of top managers’ work together to identify high potential
candidates within their team and then out-line developmental activities for them. They may also include a
formal assessment of the performance and potential of candidates and written individual development
plans for candidates.

All member’s voice opinions about the potential candidates that are proposed and disagreements are
openly debated, before the final document is signed off. The succession planning process includes
determining and clarifying the requirements of the managerial position and development plans for how
these potential candidates can be groomed to occupy these positions in the eventuality they fall vacant.
These development plans then translate into the individual’s development plan and HR along with the
immediate manager work with the individual to execute the same.
A succession planning exercise concludes with an organization chart of all key positions with listing of
possible potential candidates and the readiness rating for each potential candidate. For example a
position that can immediately be filled is rated higher than a position which does not have a ready-now
candidate. Other components include performance appraisal of these employees, and individual
development plans and management development programs. Additionally, the factors rated as most
important in selecting specific internal/external potential candidates for grooming includes: past job
performance, past positions or prior employment, perceived credibility, area of expertise and career paths
and values and attitudes.

Benefits: There are many benefits of having a formal Succession Planning System:

a) Provides a clear context to strategic business planning as the key positions for the business’s
success are what are being planned for.
b) Provides a more systematic basis to judge the risk of making particular succession and
developmental moves.
c) Bring focus to systematized succession a plan that scientifically identifies potential candidates to
ensure business continuity.
d) Enables the identification of high potential and future leaders, whereby the thereafter the
manager/HR can engage with them for leadership development initiatives.
e) Reduces randomness of managerial movements.
f) Helps anticipate problems before they get started – and thereby avoid dysfunctional situations.
g) Provides scientific approach for arriving at succession decisions as part of the overall human
resource planning exercise – connecting formats (data, timing) with process (judgement,
discussions, analyses)
h) Helps plan for internal promotion opportunity
i) Provides early warning if succession does not exist for a position allowing for lateral hiring from
the market.

Regardless of what type of succession planning program is used (formal or informal); most successful
programs obtain the support of top management.