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Commerce Question Bank – 30 Short Questions With Answers on “Human Resources Management”

1. Name the job evaluation methods used to determine the internal wage structure.

There are four job evaluation systems as mentioned below:

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(a) Ranking Method

(b) Job Classification Method

(c) Factor Comparison Method

(d) Point Method

(Analytical and better for large organisation differ in unit of measurement)

2. How many types of wage differentials are distinguished in structural dimensions of wage?

In structural dimensions of wage, there are three types of differentials as mentioned below:

(a) Occupational i.e., internal wage structure.

(b) Industrial

(c) Regional (i. e., External wage structure)

3. What do the occupational wage differentials refer to?

Occupational wage differentials refer to the wage differences arising due to the varying levels of skill, seniority, education of individual job holders within an enterprise. Skill, Education and training predominantly contribute but employment opportunities affect the local labour market.

4. What are industrial wage differentials?

Industrial wage differentials relate to the differences in the average wage rates across the industries arising due to productivity of labour and investment of capital.

5. What do you mean by regional wage differentials?

Regional wage differentials reflect the average differences among various regions of an economy which arise due to the preponderance of high wage occupations and industries in one region compared to another.

6. What is the definition of “fringe benefits” given by ILO?

“Wages are often augmented by special cash benefits, by the provider or medical or other services, or by payment in kind that forms part of the wages for expenditure on the goods and services. In addition, workers commonly receive such benefits as holiday with pay, low cost bills, low rent housing, etc. Such additions to the wage proper are sometimes referred to as fringe benefits”.

7. Define performance appraisal.

Performance appraisal is defined as “a systematic, periodic and so far as humanly possible and impartial rating of an employee’s excellence in matters pertaining to his present job and his potential for a future job in the organisation”.

It is systematic in that it evaluates all performances in the same manner utilising the same approach so that rating obtained of separate personnel are comparable. It is undertaken periodically according to the plan. Such personnel or merit (or efficiency) ratings are generally used for ascertaining an employee’s eligibility for promotion or appraisal of the relative worth to the enterprise of an employee’s services on his job

8. Write the objectives of performance appraisal.

The objectives of performance appraisal include:

(a) To identify areas for further training needs

(b) To help determine promotions and transfers

(c) To reduce grievances.

(d) To improve job performance.

9. What is the traditional approach of performance appraisal?

The traditional approach is highly systematic and takes into account the measurement of employee’s characteristics and/or their contribution or both. In this system all employees are rated in the same manner utilising the same approach so that the rating of separate personnel can be compared.

10. What is the casual approach of performance appraisal?

The causal approach is an unsystematic use and often haphazard appraisal system which was’ commonly used in the past, but now it has given a place to more formal method, the main basis being seniority or quantitative measures of quantity and quality of output for rank and file personnel.

11. On what factors is the behavioural or modern approach of performance appraisal based?

The behavioural or modern approach is based upon mutual goal setting and appraisal of progress by both appraiser and appraise. This lays emphasis on behavioural values of fundamental trust in goodness, capability and responsibility of human beings.

12. What is ethics of appraisal suggested by Ms Kellong?

Ethics of appraisal in the form of do’s and don’t suggest by Ms Kellong are as follows:

(a) Don’t appraise without knowing why it is needed.

(b) Appraise on the basis of representative information.

(c) Appraise on the basis of sufficient information.

(d) Appraise on the basis of relevant information.

(e) Be honest in your assessment of all the facts you have obtained.

(f) Don’t write one thing and say other.

(g) Make it plan that is your personal opinion of the facts as you see them.

(h) Pass an appraisal information only to those who have good reasons to want it.

(i) Don’t imply the existence of appraisal that has not been made.

(j) Don’t accept another’s appraisal without knowing the basis on which it has been made.

13. In how many categories have Strauss and Sayles classified performance appraisal methods?

Strauss and Sayles have classified performance appraisal methods into two categories, i.e.,

(a) Traditional methods which lay emphasis on rating of an individual’s personality traits such as initiatives, dependability, drive, responsibility, creativity, integrity, leadership potentials, intelligence, judgement, etc.

(b) Modern or newer methods place more emphasis on the evaluation of work results-job achievement than on personality traits.

14. Mention some traditional methods of performance appraisal.

Traditional methods are:

(a) Straight ranking method

(b) Man to man comparison method

(c) Grading method

(d) Graphic rating scales

(e) Forced choice description method

(f) Check lists method

(g) Free form essay method

(h) Critical incident method

(i) Group appraisal

(j) Field review method

15. Mention the modern methods of performance appraisal.

Modern methods are:

(a) Assessment centre

(b) Appraisal by results or MBO

(c) Human asset accounting method

(d) Behaviourally anchored rating scales.

16. What is straight ranking method of performance appraisal?

Straight ranking method is the oldest and simplest method of performance appraisal. This yields a ranking from best to worst of all individuals comprising the group. The rater simply picks out the individual he considers best, the one he thinks next best, etc., and ranks them in order on the basis of work. The ranks assigned by rater are then averaged and then relative ranking of each individual in the group are assigned/determined.

17. Give a brief description of grading method of performance appraisal.

Under this system, the rater considers certain features and marks them according to the scale. Certain categories of worth are carefully established and defined. The selected features may be analytical ability, cooperativeness, dependability, self experience, job knowledge, judgement, leadership and organising ability, etc. These may be rated: (a) outstanding, {b) very good, (c) good/average, (d) fair,
(e) poor or any other scale The actual performance of an employee is then compared with these grade definitions and he is allotted the grade which best describes his performance.

18. Write a short note on check list method of performance appraisal.

Under this system, the rater does not evaluate an employee’s performance. He supplies report information about it and the final rating is done by the personnel department.

A series of questions are presented concerning an employee to his behaviour. The rater then checks to indicate if the to question about an employee is positive or negative. The value of each question may be valued/weighed equally or certain questions may be weighed heavily than others

This method suffers from bias on the part of rater because he can distinguish positive and negative question Secondly, a separate check list must be developed for different classes of jobs which is a time consuming and expensive process. Thirdly, it is difficult to assemble, analyse and weigh a number or statements about employee’s characteristics and contributions.

19. What is group appraisal method?

Under this method, employees are rated by an appraisal group, consisting of their supervisors and three or four other supervisors who have some knowledge of employee’s performance. The supervisor explains to the group the nature of his subordinate’s job, the actual performance of job holder, the causes of their particular level of performance and offers suggestions for future improvement

20. Give a brief description of field review method of performance appraisal.

Under this method, a trained employee from personnel department interviews the line supervisor to evaluate their respective subordinates. The appraiser is fully equipped with definite test questions, usually memorised in advance, which he puts to supervisors.

The supervisor is required to give his opinion about the progress of his subordinates, the level of performance of each subordinate, his weaknesses, his good points, outstanding ability, promotability and possible plans of action in cases requiring further consideration. The appraiser takes detailed notes of the answers, which are then approved by the supervisors and placed in employee’s personal file.

21. What is meant by MBO (management by objectives)? What are the basic foundations of MBO?

It is a system and management philosophy that stress on GOALS-RATHER THAN METHOD. It provides responsibility and accountability and recognises that employees have needs for achievement and self fulfillment. These needs are met by providing opportunities for participation in goal setting process. Subordinates become involved in planning their own careers. There are three basic foundations of MBO:

(a) Goal setting

(b) Feed back

(c) Participation

22. Briefly describe the concept of assessment centre method.

Assessment centre concept was initially applied to Military situations in German Army in 1930s and British Army in 1960s. Under this method many evaluators join together to judge employee’s performance in several situations with the use of a variety of criteria.

The assessments are made/done with the help of couple of employees and involve a paper and pencil test, interviews and situational exercises such as in basket exercise, business game, a role playing incident and leaderless group discussions.

Evaluators are experienced managers with proven ability to evaluate the employees, both individually and collectively. A summary report is prepared and feed back is given on a face to face basis to all employees who ask for it.

23. What is human assets accounting method?

Human assets accounting method refers to the activity devoted to attaching money estimates to the value of a firm’s internal human organisation and its external customer goodwill. If able and well trained personnel leave the firm, the human organisation is worthless, if they join it, its human assets increase. If distrust and conflict prevails the human enterprise is devalued If team work and high morale prevails, the human organisation is a very valuable asset. This method is not very popular and not being used

24. What do you understand by behaviourally anchored rating scales?

Behaviourally Anchored Rating Scales (BARS) is a new appraisal method which has been recently developed. The supporters of this method claim that this method provides better, more equitable appraisal as compared to others. The procedure for BARS is usually five stepped.

(a) Generate critical incidents,

(b) Develop performance dimensions

(c) Reallocate incidents,

(d) Scale of incidents,

(e) Develop final instrument.

25. (a) What do you mean by gate hiring regarding recruitment of human resources? (b) What is position rotation method of training?

(a) The concept of gate hiring is to select people who approach on their own for employment in the organisation. This happens mostly in the case of unskilled and semi-skilled workers.

(b) In position rotation, a person is given jobs in various departments of the organisation. He can learn the working of various sections and departments of the organisation which helps in devel­oping an integrated view of the organisational functioning.

26. What is the grading method of performance appraisal?

In this method, certain categories of abilities or performance are defined well in advance and persons are put in particular category depending on their traits and characteristics. Such categories may be like good, average, poor, etc.

27. Define labour welfare. What are the two important legislative enactments in India for the provi­sion of social security?

It is defined as such services, facilities and amenities as adequate canteens, rest and recreation facilities, arrangement for travel to and from work and other facilities which improve the conditions under which workers are employed.

Two important legislative enactments in India for the provision of social security are:

(a) Acts that provide security in cases of employment injury, maternity and sickness

(b) Acts that cove: the risks of old age and unemployment.

28. What do you mean by industrial relations?

Industrial relations can be defined as the various aspects of interactions between employer and employees, employees and employers, employers and employers and between the state, employers and employees

29. What are the objectives of workers’ participation in management? What do you mean by collec­tive bargaining?

(a) To promote industrial peace (b) To promote industrial democracy (c) To give due recognition to the personality of the workers, (d) To safeguard the interest of workers, (e) To regulate the self-centered actions of the capitalists.

Collective bargaining constitutes the negotiations between the management and the union with the ultimate objective of agreeing on a written contract covering the terms and conditions of settlement of the disputed issues

30. What do you mean by wages?

Wages include all remunerations (salary + allowances, etc.) payable to an employee in respect of his employment. Wages also include over-time remuneration, bonus, gratuity, pension, provident fund, contribution by the employer, etc.

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