HRM

Q. 9 What is a grievance? Why do grievances arise? Explain in brief the procedure handling grievances in business world

Ans :Grievance is a sign of employee's discontent with job and its nature. It is caused the

difference between employee expectation and management practice. Beach defines, "any

dissatisfaction or feeling of injustice in connection with one’s employment situation that is

brought to the management."

Jucius defines, "any discontent or dissatisfaction, whether exposed or not, ether valid or

not, arising out of anything connected with the company which an employee thinks,

believes or even feels to be unfair, unjust or inequitable.

According to Kieth Davis, Grievance is any real or imagined feeling of personal injustice which

an employee has concerning his employment relationship.

The International Labour Organisation (ILO) defines a grievance as "a complaint of one or more

workers in respect of wages, allowances, conditions of work and interpretation of service

stipulations, covering such areas as overtime, leave, transfer, promotion, seniority, job

assignment and termination of service".

From the above-mentioned definition following features can be derived:-

(a) A grievance refers to any form of discontent or dissatisfaction with any aspect of the

organization.

(b) The dissatisfaction must arise out of employment and not from personal or family problems.

(c) The dissatisfaction may be expressed or implied.

(d) The discontent may be valid, legitimate and rational or untrue and irrational or completely

ludicrous.

(e) A grievance is traceable to perceived non-fulfilment of one's expectations from the

organization.

(f) A grievance arises only when an employee feels that injustice has been done to him.

(g) Grievances, if not redressed in time, tend to lower morale and ·productivity of employees. -

Nature and Causes of Grievances :

If a problem is related to all or majority of employees or if the trade union submits a

problem as a general claim, it falls outside the scope of grievance procedure and falls

under the purview of collective bargaining. Thus, an issue is wider in scope, it will be outside

the grievance machinery.

Causes of grievances relate to interpretation of all personnel policies and areas like placement,

transfer, promotion. Causes of grievances are classified as :-

(A) Grievance resulting from working conditions:

Improper matching of the worker with the job

Changes in schedules or procedures

Non-availability of proper tools, machines and equipment

Tight production standards

Bad work place conditions

Failure to maintain proper discipline

Poor relationship with the supervisor

(B) Grievance resulting from management policy:

Wage payment and job rates

Leave

Overtime

Seniority

Transfer

. Promotion. demotion and discharges

Lack of career planning

Hostility toward a labour union.

(C) Grievance resulting from alleged violation of:

The collective bargaining agreement

Central or State laws

Past practices

Company rules

Management's responsibility

(D) Grievance resulting from personal maladjustment:

Over-ambition

Excessive self-esteem

Impractical attitude to life

Grievance Handling Procedure

Grievance handling is a formal process which is preliminary to an arbitration which enables the

parties involved to attempt to resolve their differences The HR manager should help the top

management and line managers in the formulation and implementation of the policies,

programmes and procedures which would best enable them to handle employee grievance. In

India, there is a Model Grievance Procedure, which was adopted by Indian Labour Conference

in 1958. At present, Indian industries are adopting the Model Grievance Procedure or

procedure formulated by themselves with modifications.

The steps are as follows:

Step I

The aggrieved employee verbally explains his grievance to his immediate supervisor or in a

conference or a discussion specifically arranged for the purpose. The employee seeks

satisfaction from his supervisor. The supervisor must give his answer within forty-eight hours of

the presentation of the complaint.

Step II

The second step begins when the grievance is not settled by the supervisor. The employee does not

receive an answer within the stipulated time or if he is not satisfied with the answer, he shall

either in person or with his departmental representative present has grievance to the head of the

department designated for this purpose.

Step III

If the employee is not satisfied with the answer, he can approach the Grievance Committee

which shall evaluate the case and make its recommendations to management within seven

days of presentation of the case. The Grievance Committee is composed of some fellow

employees, the shop steward or a combination of union and management representatives. The

committee may suggest possible solutions

Step V

If the employee is unsatisfied with the management's decision, union and management may

refer the grievance to voluntary arbitration within a week of the receipt of management's

decision by the aggrieved employee. The parties may agree beforehand that the arbitrator's

award will be final and binding on both the parties.

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Q. 1 Describe the essentials of performance appraisal. Discuss various conventional and

modern methods of performance appraisal.

Ans Performance appraisal is the systematic evaluation of the individual with respect to his

or her performance on the job and his or her potential for development. Major

comprehensive definition is as follows:

Performance Appraisal is a formal structured system of measuring and evaluating an

employee's job related behaviors and outcomes to discover how why the employee is

presently performing on the job and how the employee can perform more effectively in the

future so that the employee, organization and society all benefit.

Essentials of performance appraisal

A sound appraisal system should comply with the following

(a) Reliability and Validity

The system should be both valid and reliable.. Appraisal system should provide

consistent, reliable information and data which can be used defend the organization-even

in legal challenges.

(b) Job Relatedness

The evaluators should focus on job-related behaviour and performance of employees. It

is also necessary to prepare a checklist so as obtain and review job performance related

information. Ratings should be tied up with actual performance.

(c) Standardization

Well-defined performance factors and criteria should be developed. Appraisal forms,

procedures, techniques, ratings etc., should be standardized. It will help to ensure

uniformity.

(d) Practical Viability

The techniques should be practically viable to administer, possible to implement economical

to undertake.

(e) Training to Appraisers

The evaluators or appraiser should be provided adequate training in evaluating the performance

of the employees without any bias. Evaluators should also be given training in philosophy and

techniques of appraisal. They should be provided with knowledge and skills

(f) Open Communication

The system should be open and participative. Not only should it provide feedback to the

employees on their performance, it should also involve them in the goal setting process.

(g) Employee Access to Results

Employees should receive adequate feedback on their performance. If the result of appraisal is

negative and goes against the employee, it should, be immediately communicated to him so

that he may improve his performance.

(h) Clear Objectives

The appraisal system should be objective oriented. It should fulfil the desired objectives The

objectives should be relevant, timely and open. The appraisal system should be fair so that it is

beneficial to both the individual employee and the organization.

(i) Post Appraisal Interview

After appraisal, an interview with the employee should be arranged. It is necessary to supply

feedback,

j) Periodic Review

The system should be periodically evaluated to be sure that it is meeting its goals as there is

the danger that the system may become rigid in a tangle of rules and procedures many of

which may no longer be useful.

(k) Not Vindictive Nature

It should be noted by the executives of the organizations that the aim of performance appraisal

is to improve performance, organizational effectiveness and to accomplish organizational

objectives and not to harass the employees and workers of the organizations who are the vital

human resource.

Conventional and modern methods of performance appraisal:

A number of different performance appraisal methods or techniques are available for

evaluating the performance of the employees. These methods try to explain how management

can establish standards of performance. There is no fool proof method of evaluating the

performance of employees. Every method suffers from certain drawbacks in spite of some

merits. The methods can broadly be divided into traditional and modem methods.

1. Rating scale: The typical rating scale system consists of several numerical scales,

each representing a job-related performance criterion such as dependability,

initiative, output, attendance, attitude, cooperation etc., each scale ranges from

excellent to poor the number of points attached to the scale may be linked to salary

increase.

2. Checklists: Under this method, a checklist of statements on statements on the traits

of the employee and his or her job is prepared in two columns - 'YES' column and

'NO' column. The rater is to do is to tick the 'YES' if the answer is positive and tick

'NO' if the answer is 'NO'. The HR dept. gives point for every "YES' when points are

allotted the technique becomes a weighted checklist.

3. Forced choice method: The rater is given a series of statement about the employee

these are arranged in the blocks of two or more, and the rater indicates which

statement is most or least descriptive of the employee. For example

( a) Learns fast ---------------------------------------works hard.

(b) Absent often------------------------------------others usually tardy.

The HR department does actual assessment.

4. Critical Incident method: It focuses on certain critical behaviours of an employee that

make all the difference between effective and non-effective performance of a job.

Such incidents are recorded by the superiors. as and when they occur.

5. Annual confidential report: ACR is mostly used in government departments like

military organizations etc. It has 14 items, twelve of these are filled on a four-point scale.

6. Field review method: This is an appraisal by someone outside the assessee's own

department. Two disadvantage of this are: (a) An outsider is not familiar with

conditions in an employee's work environment. (b) He does not have an opportunity to

observe employee behaviour of performance over a period of time.

7. Performance test: With a limited number of jobs, employee assessment may be

based upon a test of knowledge and skills. The test may be paper & pencil or an actual

demonstration of skills the test must be reliable & validated to be useful.

8. Behaviorally anchored rating scales: In this the scale represents a range of

descriptive statements of behaviour varying from the least to the most effective. A rater

must indicate which behaviour on each scale best describes an employee's

performance.

9. MBO Technique : The MBO are based on the concrete performance targets. which

are

usually established by superior and subordinates jointly. Peter Drucker (1954) described

MBO in 1954 in the Practice of Management. Drucker pointed to the importance of

managers having clear objectives that support the purposes of those in higher positions in

the organization.

10 . 360 Degree Appraisal

It is a method of appraisal in which employees receive their performance feedback from their

boss. colleagues. customers. peers and their own subordinates in the organisation. This form

of performance evaluation can be very beneficial to managers because it typically gives them a

much wider range of performance-related feedback than a traditional evaluation.

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Q7 Discuss the need of Human Resource Planning. Give steps involved in HRP.

ANS.

Human resource planning is the process by which a management determines how an

organization should move from its current manpower position to its desired manpower

position. Through planning, a management strives to have the right number and the right

kinds of people at the right places, at the right time to do things for receiving the maximum

long-range benefits. Coleman has defined human resource or manpower planning as, "the

process of determination of manpower requirements and means of meeting those

requirements in order to carry out the integrated plan of the organization".

Need For Human Resource Planning

Human resource planning is practically useful at different levels.

At the national level: It is generally done by the government and covers items like

population projections, programme of economic development, educational facilities, and

geographical mobility of personnel.

1. At the sector level: It may be done by the government - central or state - and may

cover manpower needs of agricultural, industrial and service sector.

2. At the industry level: It may cover manpower forecast for the specific industries,

such a cement, engineering, heavy industries, consumer goods and public utility

industries etc.

3. At the level of Individual unit: It may relate to its manpower needs for various

departments.

Human resource planning is deemed necessary for all organizations for one or the other

of the following reasons:

1. HR planning is needed to identify areas of surplus personnel or areas in which there

is shortage of personnel.

2. To meet the challenges of a new and changing technology and new techniques of

production, existing employees need to be trained or new people to be brought to the

organization.

3. To carry on its work, each organization needs personnel with necessary

qualifications, skills, knowledge, work experience and aptitude for work. These are

provided through effective manpower planning.

4. Human resource planning is necessary for meeting frequent labour turnover which is

unavoidable.

5. In order to meet the demands for expansion programmes, there will be larger

requirement of human resources in the organization.

Steps in HRP

1. Forecasting

HR planning requires data on the organizational goals objectives. One should understand

where the organization wants to go and how it wants to get to that point. The needs of the

employees are derived from the corporate objectives of the organization.

2. Inventory

After knowing what human resources are required in the organization, the next step is to

take stock of the current employees in the organization. The HR inventory should not only

relate to data concerning numbers, ages, and locations, but also an analysis of individuals

and skills. Skills inventory provides valid information on professional and technical skills

and other qualifications provided in the firm. It reveals what skills are immediately

available when compared to the forecasted HR requirements.

3. Audit

HR inventory calls for collection of data, the HR audit requires systematic examination

and analysis of this data. The audit looks at what had occurred in the past and at present

in terms of labour turnover, age and sex groupings, training costs and absence. Based on

this information, one can then be able to predict what will happen to HR in the future.

HR Resource Plan

People are the greatest assets in any organization. The organization is at liberty to

develop its staff at full pace in the way ideally suited to their individual capacities. The

main reason is that the organization's objectives should be aligned as near as possible, or

matched, in order to give optimum scope for the developing potential of its employees.

Therefore, career planning or succession planning is must.

Actioning of Plan

There are three fundamentals necessary for this first step:

Forecasting InventoryActioning of

PlanAudit HR Resource

Plan

1. Know where organisation is going.

2. There must be acceptance and backing from top management for the planning.

3. There must be knowledge of the available resources

Once in action, the HR plans become corporate plans. Having been made and concurred

with top management, the plans become a part of the company's long range plan. Failure

to achieve the HR plans due to cost, or lack of knowledge, may be a serious constraint on

the long-range plan.

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Q. 10 Write short note on any three

Q.10 (5). Line and Staff Organisation: Organizational structure involves the designation of

jobs within an organization and the relationships among those jobs. There are numerous ways

to structure jobs within an organization, but two of the most basic forms include simple line

structures and line-and-staff structures. In a line organization, top management has complete

control, and the chain of command is clear and simple. Examples of line organizations are small

businesses in which the top manager, often the owner, is positioned at the top of the

organizational structure and has clear lines of distinction between him and his subordinates.

The line-and-staff organization combines the line organization with staff departments that

support and advise line departments. Most medium and large-sized firms exhibit line-and-staff

organizational structures. The distinguishing characteristic between simple line organizations

and line-and-staff organizations is the multiple layers of management within line-and-staff

organizations.

Advantages and Disadvantages : Several advantages and disadvantages are present within a

line-and-staff organization. An advantage of a line-and-staff organization is the availability of

technical specialists. Staff experts in specific areas are incorporated into the formal chain of

command. A disadvantage of a line-and-staff organization is conflict between line and staff

personnel.

Q.10 (4). Leadership Styles: There are many ways to lead and every leader has his or her

own style. Some of the more common styles include autocratic, bureaucratic, democratic, and

laissez-faire.

1. Autocratic Leadership Style : This is considered the classical approach. It is one in

which the manager retains as much power and decision-making authority as possible. The

manager does not consult employees, nor are they allowed to give any input. Employees are

expected to obey orders without receiving any explanations. The motivation environment is

produced by creating a structured set of rewards and punishments. Gen X employees are

highly resistant to this management style. These studies say that autocratic leaders:

2. Bureaucratic Leadership Style : Bureaucratic leadership is where the manager

manages by the book. Everything must be done according to procedure or policy. If it is not

covered by the book, the manager refers to the next level above him or her. This manager is

really more of a police officer than a leader. This style can be effective when: a) Employees are

performing routine tasks over and over b) Employees need to understand certain standards or

procedures c) Employees are working with dangerous or delicate equipment that requires a

definite set of procedures to operate.

3. Democratic Leadership Style : The democratic leadership style is also called the

participative style as it encourages employees to be a part of the decision making. The

democratic manager keeps his or her employees informed about everything that affects their

work and shares decision making and problem solving responsibilities. This style requires the

leader to be a coach who has the final say, but gathers information from staff members before

making a decision. Democratic leadership can produce high quality and high quantity work for

long periods of time. The democratic style is not always appropriate. It is most successful when

used with highly skilled or experienced employees or when implementing operational changes

or resolving individual or group problems.

4. Laissez-Faire Leadership Style : The laissez-faire leadership style is also known as

the “hands-off¨ style is one in which the manager provides little or no direction and gives

employees as much freedom as possible. All authority or power is given to the employees and

they must determine goals, make decisions, and resolve problems on their own. This is an

effective style to use when a) Employees are highly skilled, experienced, and educated b)

Employees have pride in their work and the drive to do it successfully on their own.

Q.10 (2). Maslow's theory

Abraham Maslow developed a hierarchic theory of needs. All of basic needs are instinct or

equivalent of instincts in animals. Humans start with a very weak disposition that is then

fashioned fully as the person grows. If the environment is right, people will grow straight and

beautiful, actualizing the potentials they have inherited. Maslow set up a hierarchy of five levels

of basic needs. Beyond these needs, higher levels of needs exist. In the levels of the five basic

needs, the person does not feel the second need until the demands of the first have been

satisfied, nor the third until the second has been satisfied, and so on. Maslow's basic needs are

as follows

1. Physiological Needs

These are biological needs. They consist of needs for oxygen, food, water, and a

relatively constant body temperature. They are the strongest needs because if a person

were deprived of all needs, the physiological ones would come first in the person's

search for satisfaction.

2. Safety Needs

When all physiological needs are satisfied and are no longer controlling thoughts and

behaviors, the needs for security can become active. Adults have little awareness of

their security needs except in times of emergency or periods of disorganization in the

social structure. Children often display the signs of insecurity and the need to be safe.

3. Needs of Love, Affection and Belongingness

When the needs for safety and for physiological well-being are satisfied, the next class

of needs for love, affection and belongingness can emerge. Maslow states that people

seek to overcome feelings of loneliness and alienation. This involves both giving and

receiving love, affection and the sense of belonging.

4. Needs for Esteem

When the first three classes of needs are satisfied, the needs for esteem can become

dominant. These involve needs for both self-esteem and for the esteem a person gets

from others. When these needs are satisfied, the person feels self-confident and

valuable as a person in the world. When these needs are frustrated, the person feels

inferior, weak, helpless and worthless.

5. Needs for Self-Actualization

When all of the foregoing needs are satisfied, then and only then are the needs for self-

actualization activated. Maslow describes self-actualization as a person's need to be and do

that which the person was "born to do.. An artist must paint, and a poet must write. If a

person is hungry, unsafe, not loved or accepted, or lacking self-esteem, it is very easy to

know what the person is restless about. It is not always clear what a person wants when

there is a need for self-actualization

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Q. 6 Explain briefly the concept of morale. Discuss the relationship between morale

and motivation

Concept of morale : Morale is a state of individual psychological well-being based upon a

sense of confidence and usefulness and purpose. The theory of morale comes from B Flippo.

Morale is defined as “a mental condition or attitude of individuals and groups which determines

their willingness to co-operate. Good morale is evidenced by employee enthusiasm, voluntary

conformance with regulations and orders, and a willingness to co-operate with others in the

accomplishment of an organization’s objectives. Poor morale is evinced by surliness,

insubordination, a feeling of discouragement and dislike of the job, company and associates.”

Professor Ralph C. Davis thinks about morale as good organizational morale is a condition in

which individuals and groups voluntarily make a reasonable subordination of their personnel

objectives of their organization.

Morale is whether the people in the work environment are happy. Morale is important for

realization of common objectives. Morale is also depends on the reality and material

background. It depends upon the relations between expectations and reality.

Effects of Low Morale

The most significant effects of low morale are:

(a) High Rate of Absenteeism,

(b) Tardiness,

(c) High Labour. Turnover,

(d) Strikes and Sabotage,

(e) Lack of Pride in Work,

(f) Wastage and Spoilage.

Motivation and Morale: Motivation is whether the people in the work environment have

enough incentive to do their jobs. Typically, a salary is a good motivation, and being paid well

leads to higher morale. Even in a well-paid environment there are other things that companies

can do to improve morale, including assisting employees with work-/life balance, providing good

insurance benefits, a healthy work environment, and positive feedback when jobs are well done.

Motivating employees sometimes depends on the individual or generational differences, but

typically offering food or monetary incentives for higher performance works well, or negative

things can work as well, though they typically lower morale. such as threatening a person's job if

performance isn't improved.

Things tied to general morale are usually things that are just part of the job environment, and

things tied to motivation are tied to the performance of the individual. Morale is internal feeling

and it is inspired by the environment. Motivation comes from enthusiasm, zeal, confidence in

individuals or groups that they will be able to cope with the tasks assigned to them

Motivation is defined as an urge in an individual to perform goal directed behavior. Therefore,

motivation cannot be inflicted from outside but it is an intrinsic desire in a man to achieve the

target goal through performance or activity. Motivation is a dominant intrinsic urge in an

individual. The leader of the team can introduce a team motivation or group motivation where

the individual idiosyncrasy looses importance and the group goal becomes the target. It is then

not motivation per se but a group morale - an “espirit de corps” i.e. a sense of group activity with

desire for high achievement of the group goal. An individual can comfortably ignore his personal

goals or needs. Such morale is mostly psychological in nature and not physiological